Bill Amendment: IL SB3874 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: INC TX-ENGINEERING STUDENTS
Status: 2021-01-13 - Session Sine Die [SB3874 Detail]
Download: Illinois-2019-SB3874-Senate_Amendment_001.html
Bill Title: INC TX-ENGINEERING STUDENTS
Status: 2021-01-13 - Session Sine Die [SB3874 Detail]
Download: Illinois-2019-SB3874-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 3874
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2 | AMENDMENT NO. ______. Amend Senate Bill 3874 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Department of Commerce and Economic | ||||||
5 | Opportunity Law of the
Civil Administrative Code of Illinois is | ||||||
6 | amended by adding Section 605-1045 as follows:
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7 | (20 ILCS 605/605-1045 new) | ||||||
8 | Sec. 605-1045. Retaining Illinois Students of Engineering | ||||||
9 | (RISE) income tax credit. | ||||||
10 | (a) The Department shall issue a credit certification | ||||||
11 | against the taxes imposed under subsections (a) and (b) of | ||||||
12 | Section 201 of the Illinois Income Tax Act to qualified | ||||||
13 | professional design firms in Illinois. The credits shall be | ||||||
14 | awarded as provided in subsection (b) of this Section. | ||||||
15 | (b) For taxable years beginning on or after January 1, | ||||||
16 | 2020, the Department shall award credits in the amount of (i) |
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1 | 10% of the qualified compensation paid to each qualified | ||||||
2 | employee who graduated from an accredited institution of higher | ||||||
3 | learning in the State and (ii) 5% of the qualified compensation | ||||||
4 | paid to each qualified employee who graduated from an | ||||||
5 | accredited institution of higher learning outside of the State. | ||||||
6 | The credit shall be taken against the taxes imposed under | ||||||
7 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
8 | Tax Act as provided in Section 232 of the Illinois Income Tax | ||||||
9 | Act. The credit for each taxable year may not exceed $50,000 | ||||||
10 | per qualified professional design firm. | ||||||
11 | (c) Qualified professional design firms seeking a | ||||||
12 | certificate of exemption under this Section shall apply to the | ||||||
13 | Department in the manner specified by the Department. The | ||||||
14 | Department shall determine the duration of the certificate of | ||||||
15 | exemption awarded under this Section. The Department and any | ||||||
16 | qualified professional design firm seeking the credit must | ||||||
17 | enter into a memorandum of understanding that at a minimum | ||||||
18 | provides: (1) the number of new jobs created; (2) the salary | ||||||
19 | for qualifying employees; and (3) the accredited institution | ||||||
20 | from which qualifying employees graduated. | ||||||
21 | (d) For partners, shareholders of Subchapter S | ||||||
22 | corporations, and members of limited liability companies, if | ||||||
23 | the limited liability company is treated as a partnership for | ||||||
24 | purposes of federal and State income taxation, there shall be | ||||||
25 | allowed a credit under this subsection to be determined in | ||||||
26 | accordance with the determination of income and distributive |
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1 | share of income under Sections 702 and 704 and Subchapter S of | ||||||
2 | the Internal Revenue Code. | ||||||
3 | (e) Beginning July 1, 2022, and each year thereafter, the | ||||||
4 | Department shall annually report to the Governor and the | ||||||
5 | General Assembly on the outcomes and effectiveness of the | ||||||
6 | credit awarded under this Section that shall include the | ||||||
7 | following: | ||||||
8 | (1) the city and county in which each recipient | ||||||
9 | business is located; | ||||||
10 | (2) the estimated value of the credit; and | ||||||
11 | (3) the number of new jobs. | ||||||
12 | (f) For the purposes of this Section: | ||||||
13 | "Qualified compensation" means compensation paid by a | ||||||
14 | qualified professional design firm to a qualified employee in | ||||||
15 | the State. | ||||||
16 | "Qualified employee" means an employee who (i) works in the | ||||||
17 | State for a qualified professional design firm as an architect, | ||||||
18 | an architectural associate, a structural engineer, a | ||||||
19 | structural engineer intern, a design professional, or an | ||||||
20 | engineer intern and (ii) graduated from an accredited | ||||||
21 | institution of higher learning with a Bachelor's degree within | ||||||
22 | the 2 years immediately preceding the year in which the credit | ||||||
23 | is taken. | ||||||
24 | "Qualified professional design firm" means a design firm | ||||||
25 | registered under the Illinois Architecture Practice Act of | ||||||
26 | 1989, the Illinois Professional Land Surveyor Act of 1989, the
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1 | Professional Engineering Practice Act of 1989, or the | ||||||
2 | Structural Engineering Practice Act that: | ||||||
3 | (1) is located in the State of Illinois; | ||||||
4 | (2) has hired a qualifying employee in the taxable year | ||||||
5 | in which the credit is claimed or the taxable year prior to | ||||||
6 | the taxable year in which the credit is claimed; and | ||||||
7 | (3) has paid the qualifying employee compensation in | ||||||
8 | the State during that taxable year. | ||||||
9 | (g) This Section is exempt from the provisions of Section | ||||||
10 | 250.
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11 | Section 10. The Illinois Income Tax Act is amended by | ||||||
12 | adding Section 232 as follows:
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13 | (35 ILCS 5/232 new) | ||||||
14 | Sec. 232. RISE credit. A taxpayer that has been awarded a | ||||||
15 | credit under Section 605-1045 of the Department of Commerce and | ||||||
16 | Economic Opportunity Law of the
Civil Administrative Code of | ||||||
17 | Illinois is entitled to a credit against the tax imposed under | ||||||
18 | subsections (a) and (b) of Section 201 as provided in Section | ||||||
19 | 605-1045 of the Department of Commerce and Economic Opportunity | ||||||
20 | Law of the
Civil Administrative Code of Illinois.
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.".
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