Bill Text: IL HB2827 | 2013-2014 | 98th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that each business that employs 20 or fewer employees during the taxable year is entitled to a credit in an amount equal to (i) 25% of the qualified first-year wages, not to exceed $6,000, paid to each qualified employee who worked at least 120 hours but less than 400 hours during the taxable year, and (ii) 40% of the qualified first-year wages, not to exceed $6,000, paid to each qualified employee who worked at least 400 hours during the taxable year. Provides that the term "qualified employee" means a person who (i) is a member of a targeted group, as defined under the federal Work Opportunity Tax Credit, and (ii) was employed by the taxpayer for a period of exactly 12 consecutive months at any point during the taxable year. Effective immediately.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB2827 Detail]
Download: Illinois-2013-HB2827-Introduced.html
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||
4 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||
5 | Section 224 as follows:
| ||||||||||||||||||||||||
6 | (35 ILCS 5/224 new) | ||||||||||||||||||||||||
7 | Sec. 224. Work opportunity tax credit. | ||||||||||||||||||||||||
8 | (a) For taxable years ending on or after December 31, 2013, | ||||||||||||||||||||||||
9 | each small employer in the State is entitled to a credit | ||||||||||||||||||||||||
10 | against the tax imposed under subsections (a) and (b) of | ||||||||||||||||||||||||
11 | Section 201 in an amount equal to (i) 25% of the qualified | ||||||||||||||||||||||||
12 | first-year wages, not to exceed $6,000, paid to each qualified | ||||||||||||||||||||||||
13 | employee who worked at least 120 hours but less than 400 hours | ||||||||||||||||||||||||
14 | during the taxable year, and (ii) 40% of the qualified | ||||||||||||||||||||||||
15 | first-year wages, not to exceed $6,000, paid to each qualified | ||||||||||||||||||||||||
16 | employee who worked at least 400 hours during the taxable year. | ||||||||||||||||||||||||
17 | (b) For the purposes of this Section: | ||||||||||||||||||||||||
18 | "Qualified employee" means a person who (i) is a member of | ||||||||||||||||||||||||
19 | a targeted group, as defined in subsection (d) of Section 51 of | ||||||||||||||||||||||||
20 | the Internal Revenue Code (the federal Work Opportunity Tax | ||||||||||||||||||||||||
21 | Credit), and (ii) was employed by the taxpayer for a period of | ||||||||||||||||||||||||
22 | exactly 12 consecutive months at any point during the taxable | ||||||||||||||||||||||||
23 | year. |
| |||||||
| |||||||
1 | "Qualified first-year wages" means, with respect to a | ||||||
2 | qualified employee, qualified wages attributable to services | ||||||
3 | rendered during the one-year period beginning on the date the | ||||||
4 | individual begins work for the taxpayer. | ||||||
5 | "Small employer" means a business that employs 20 or fewer | ||||||
6 | employees at a location in the State during the taxable year. | ||||||
7 | (c) The tax credit may not reduce the taxpayer's liability | ||||||
8 | to less than
zero. If the amount of the tax credit exceeds the | ||||||
9 | tax liability for the year,
the excess may be carried forward | ||||||
10 | and applied to the tax liability of the 5
taxable years | ||||||
11 | following the excess credit year. The credit must be applied to
| ||||||
12 | the earliest year for which there is a tax liability. If there | ||||||
13 | are credits
from more than one tax year that are available to | ||||||
14 | offset a liability, then the
earlier credit must be applied | ||||||
15 | first. | ||||||
16 | (d) This Section is exempt from the provisions of Section | ||||||
17 | 250.
| ||||||
18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.
|