Bill Text: IL HB0621 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also extends to wages paid to a qualified veteran's spouse. Provides that active duty members of the United States Armed Forces are also considered "qualified veterans". Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB0621 Detail]

Download: Illinois-2021-HB0621-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB0621 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED:
35 ILCS 5/217
Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also extends to wages paid to a qualified veteran's spouse. Provides that active duty member of the United States Armed Forces are also considered "qualified veterans". Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
changing Section 217 as follows:
(35 ILCS 5/217)
Sec. 217. Credit for wages paid to qualified veterans and
spouses of qualified veterans.
(a) For each taxable year beginning on or after January 1,
2007 and ending on or before December 30, 2010, each taxpayer
is entitled to a credit against the tax imposed by subsections
(a) and (b) of Section 201 of this Act in an amount equal to
5%, but in no event to exceed $600, of the gross wages paid by
the taxpayer to a qualified veteran in the course of that
veteran's sustained employment during the taxable year. For
each taxable year that begins beginning on or after January 1,
2010 and begins prior to January 1, 2022, each taxpayer is
entitled to a credit against the tax imposed by subsections
(a) and (b) of Section 201 of this Act in an amount equal to
10%, but in no event to exceed $1,200, of the gross wages paid
by the taxpayer to a qualified veteran in the course of that
veteran's sustained employment during the taxable year. For
each taxable year that begins on or after January 1, 2022 and

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begins prior to January 1, 2027, each taxpayer is entitled to a
credit against the tax imposed by subsections (a) and (b) of
Section 201 of this Act in an amount equal to 10%, but in no
event to exceed $1,200, of the gross wages paid by the taxpayer
to a qualified veteran or the spouse of a qualified veteran in
the course of that veteran's or spouse's sustained employment
during the taxable year. For partners, shareholders of
Subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
there shall be allowed a credit under this Section to be
determined in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
Subchapter S of the Internal Revenue Code.
(b) For purposes of this Section:
"Active duty member of the United States Armed Forces"
means a member of the Armed Services or Reserve Forces of the
United States or a member of the Illinois National Guard who is
called to active duty pursuant to an executive order of the
President of the United States, an act of the Congress of the
United States, or an order of the Governor.
"Qualified veteran" means an Illinois resident who is an
active duty member of the United States Armed Forces or who
meets the following criteria: (i) the person was a member of
the Armed Forces of the United States, a member of the Illinois
National Guard, or a member of any reserve component of the

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Armed Forces of the United States; (ii) the person served on
active duty in connection with Operation Desert Storm,
Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
the person has provided, to the taxpayer, documentation
showing that he or she was honorably discharged; and (iv) the
person was initially hired by the taxpayer on or after January
1, 2007.
"Sustained employment" means a period of employment that
is not less than 185 days during the taxable year.
(c) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(d) A taxpayer who claims a credit under this Section for a
taxable year with respect to a veteran shall not be allowed a
credit under Section 217.1 of this Act with respect to the same
veteran for that taxable year.
(Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.