Bill Text: IL HB1858 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for employers that provide reimbursement to employees for costs associated with commuting to and from a worksite in the State. Provides that the credit shall be equal to 50% of those costs, but not to exceed $100 per employee per month. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB1858 Detail]

Download: Illinois-2021-HB1858-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB1858 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED:
35 ILCS 5/232 new
Amends the Illinois Income Tax Act. Creates an income tax credit for employers that provide reimbursement to employees for costs associated with commuting to and from a worksite in the State. Provides that the credit shall be equal to 50% of those costs, but not to exceed $100 per employee per month. Effective immediately.
LRB102 10674 HLH 16003 b
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
adding Section 232 as follows:
(35 ILCS 5/232 new)
Sec. 232. Commuter reimbursement expenses.
(a) For taxable years beginning on or after January 1,
2022, each employer that provides reimbursement to its
employees for costs associated with commuting to and from a
worksite in the State is entitled to a credit against the taxes
imposed under subsections (a) and (b) of Section 201 in an
amount equal to 50% of those costs. The amount of the credit
may not exceed $100 per employee per month. In no event may the
credit under this Section reduce the taxpayer's liability to
less than zero. The credit may not be carried forward or back.
(b) Costs that are eligible for reimbursement include
passes, tickets, fare cards, vouchers, or any other item
required to ride a public or private transit system, not
including taxi services.
(c) For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes

HB1858 - 2 - LRB102 10674 HLH 16003 b
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.
(d) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.