Bill Text: IL HB2565 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates a credit in an amount equal $500 times the number of full-time Illinois employees of a certified new business firm and its corresponding sponsor firm in each of the 3 years after the firm is certified as a new business. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB2565 Detail]

Download: Illinois-2013-HB2565-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB2565 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
Amends the Illinois Income Tax Act. Creates a credit in an amount equal $500 times the number of full-time Illinois employees of a certified new business firm and its corresponding sponsor firm in each of the 3 years after the firm is certified as a new business. 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 adding
Section 224 as follows:
(35 ILCS 5/224 new)
Sec. 224. Certified new business credit.
(a) For taxable years beginning on or after January 1,
2014, each sponsor firm and each certified new business firm is
entitled to a credit against the tax imposed by subsections (a)
and (b) of Section 201 in an amount equal $500 times the number
of full-time Illinois employees of the certified new business
firm in each of the 3 years after the firm is certified as a new
business.
(b) "Certified new business firm" or "new business firm"
means a business that is certified by the Department under this
Section. To qualify as a certified new business, the business
must:
(1) be a validly organized and existing corporation,
limited liability company, limited partnership, general
partnership, limited liability partnership, or sole
proprietorship;
(2) have been doing business for at least 3 years at

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the time it applies for the credit;
(3) have a place of business outside of the State at
the time of application;
(4) not have had a place of business within the State
for at least 3 years at the time it applies for the credit;
and
(5) not be a tenant or affiliate of the sponsor firm.
"Department" means the Department of Commerce and Economic
Opportunity.
"Sponsor firm" means a business that:
(1) is a validly organized and existing corporation,
limited liability company, limited partnership, general
partnership, limited liability partnership, or sole
proprietorship;
(2) has been doing business in Illinois for at least 3
years at the time it applies for the credit;
(3) has not entered into a rental agreement for a
commercial rental unit with the new business firm; and
(4) is not a real estate agency, real estate developer,
or landlord for the new business firm, or a bank or other
lender who provides financing for the new business firm;
and
(5) is not an affiliate of a new business firm.
(c) The certified new business firm and the sponsor firm
shall complete a joint application with the Department prior to
receiving credits under this Act. The Department may not

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approve more than $3,000,000 in credits in any State fiscal
year.
(d) The tax credit may not reduce the taxpayer's liability
to less than zero. If the amount of the tax 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 credit must be applied to
the earliest year for which there is a tax liability. If there
are credits from more than one tax year that are available to
offset a liability, then the earlier credit must be applied
first.
(e) 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, the credit under allowed
this Section shall 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.
Section 99. Effective date. This Act takes effect upon
becoming law.