Bill Text: IL HB2920 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit and a credit against insurance premium taxes for business entities for the cost of providing certain commuter benefits to employees. Provides that the credit shall be equal to 50% of the cost of providing the eligible commuter benefits, but not to exceed $100 per individual employee per month.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2920 Detail]
Download: Illinois-2019-HB2920-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||||
5 | Section 229 as follows:
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6 | (35 ILCS 5/229 new) | ||||||||||||||||||||||||||
7 | Sec. 229. Commuter benefits credit. | ||||||||||||||||||||||||||
8 | (a) As used in this Section: | ||||||||||||||||||||||||||
9 | "Business entity" means (i) A person conducting or | ||||||||||||||||||||||||||
10 | operating a trade or business in the State; or (ii) an | ||||||||||||||||||||||||||
11 | organization operating in the State that is exempt from | ||||||||||||||||||||||||||
12 | taxation under § 501(c)(3) or (4) of the Internal Revenue Code. | ||||||||||||||||||||||||||
13 | "Instrument" means a pass, token, fare-card, voucher, or | ||||||||||||||||||||||||||
14 | similar item. | ||||||||||||||||||||||||||
15 | "Ride-sharing" means for-profit driving services, taxis, | ||||||||||||||||||||||||||
16 | rental car agencies or non-commercial transportation services. | ||||||||||||||||||||||||||
17 | (b) A business entity interested in claiming the tax | ||||||||||||||||||||||||||
18 | credits for the cost of providing commuter benefits to its | ||||||||||||||||||||||||||
19 | employees must complete the Illinois Commuter Tax Credit | ||||||||||||||||||||||||||
20 | Registration Form for each tax year and submit it to the | ||||||||||||||||||||||||||
21 | Department. The registration form should be filed with the | ||||||||||||||||||||||||||
22 | Department as soon as possible after the decision is made to | ||||||||||||||||||||||||||
23 | seek qualification for the credit, but no later than the last |
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1 | day of the taxable year in which the credit will be claimed. | ||||||
2 | (c) For taxable years beginning after December 31, 2019, a | ||||||
3 | business entity may claim a credit against the tax imposed by | ||||||
4 | subsections (a) and (b) of Section 201 of this Act or the tax | ||||||
5 | imposed by subsection (c) of Section 121-2.08 of the Illinois | ||||||
6 | Insurance Code for the cost of providing either or both of the | ||||||
7 | following commuter benefits to its employees: | ||||||
8 | (1) a vanpool that meets the following criteria and is | ||||||
9 | provided for the purpose of travel between an employee's | ||||||
10 | residence and place of employment if the transportation is | ||||||
11 | to or from a location in Illinois: (A) the vehicle must | ||||||
12 | have seating capacity for at least 6 adult individuals; (B) | ||||||
13 | at least 80% of the annual mileage incurred must be between | ||||||
14 | the employees' residences and their places of employment; | ||||||
15 | and (C) the number of employees transported must be at | ||||||
16 | least one-half of that vehicle's adult seating capacity; or | ||||||
17 | (2) an instrument that entitles an employee, at no | ||||||
18 | added cost or at a reduced fare, to transportation to or | ||||||
19 | from a location in Illinois on a publicly-owned or | ||||||
20 | privately-owned mass transit system, taxi service, or | ||||||
21 | ride-sharing service. | ||||||
22 | The credit shall be equal to 50% of the cost of providing | ||||||
23 | the eligible commuter benefits. The credit allowed may not | ||||||
24 | exceed $100 per individual employee per month. The total credit | ||||||
25 | allowed may not exceed the total tax otherwise payable by the | ||||||
26 | business entity for that taxable year determined after the |
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1 | application of any other credit, and the unused amount of the | ||||||
2 | credit may not be carried over to any other taxable year. | ||||||
3 | (d) Partners, shareholders of subchapter S corporations, | ||||||
4 | and owners of limited liability companies (if the limited | ||||||
5 | liability company is treated as a partnership for purposes of | ||||||
6 | federal and State income taxation) are entitled to a credit | ||||||
7 | under this Section to be determined in accordance with the | ||||||
8 | determination of income and distributive share of income under | ||||||
9 | Sections 702 and 703 and subchapter S of the Internal Revenue | ||||||
10 | Code. | ||||||
11 | (e) This Section is exempt from the provisions of Section | ||||||
12 | 250.
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13 | Section 10. The Illinois Insurance Code is amended by | ||||||
14 | changing Section 121-2.08 as follows:
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15 | (215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)
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16 | Sec. 121-2.08. Transactions in this State involving | ||||||
17 | contracts of
insurance independently procured directly from an | ||||||
18 | unauthorized insurer by industrial insureds. | ||||||
19 | (a) As used in this Section: | ||||||
20 | "Exempt commercial purchaser" means exempt commercial | ||||||
21 | purchaser as the term is defined in subsection (1) of Section | ||||||
22 | 445 of this Code. | ||||||
23 | "Home state" means home state as the term is defined in | ||||||
24 | subsection (1) of Section 445 of this Code. |
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1 | "Industrial insured" means an insured:
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2 | (i) that procures the insurance of any risk or risks of | ||||||
3 | the kinds specified in Classes 2 and 3 of Section 4 of this | ||||||
4 | Code by use of the services of a full-time employee who is | ||||||
5 | a qualified risk manager or the services of a regularly and
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6 | continuously retained consultant who is a qualified risk | ||||||
7 | manager;
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8 | (ii) that procures the insurance directly from an | ||||||
9 | unauthorized insurer without the services of an | ||||||
10 | intermediary insurance producer; and
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11 | (iii) that is an exempt commercial purchaser whose home | ||||||
12 | state is Illinois.
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13 | "Insurance producer" means insurance producer as the term | ||||||
14 | is defined in Section 500-10 of this Code. | ||||||
15 | "Qualified risk manager" means qualified risk manager as | ||||||
16 | the term is defined in subsection (1) of Section 445 of this | ||||||
17 | Code. | ||||||
18 | "Safety-Net Hospital" means an Illinois hospital that | ||||||
19 | qualifies as a Safety-Net Hospital under Section 5-5e.1 of the | ||||||
20 | Illinois Public Aid Code. | ||||||
21 | "Unauthorized insurer" means unauthorized insurer as the | ||||||
22 | term is defined in subsection (1) of Section 445 of this Code. | ||||||
23 | (b) For contracts of insurance effective January 1, 2015 or | ||||||
24 | later, within 90 days after the effective date of each contract | ||||||
25 | of insurance issued under this Section, the insured shall file | ||||||
26 | a report with the Director by submitting the report to the |
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1 | Surplus Line Association of Illinois in writing or in a | ||||||
2 | computer readable format and provide information as designated | ||||||
3 | by the Surplus Line Association of Illinois. The information in | ||||||
4 | the report shall be substantially similar to that required for | ||||||
5 | surplus line submissions as described in subsection (5) of | ||||||
6 | Section 445 of this Code. Where applicable, the report shall | ||||||
7 | satisfy, with respect to the subject insurance, the reporting | ||||||
8 | requirement of Section 12 of the Fire Investigation Act. | ||||||
9 | (c) For contracts of insurance effective January 1, 2015 | ||||||
10 | through December 31, 2017, within 30 days after filing the | ||||||
11 | report, the insured shall pay to the Director for the use and | ||||||
12 | benefit of the State a sum equal to the gross premium of the | ||||||
13 | contract of insurance multiplied by the surplus line tax rate, | ||||||
14 | as described in paragraph (3) of subsection (a) of Section 445 | ||||||
15 | of this Code, and shall pay the fire marshal tax that would | ||||||
16 | otherwise be due annually in March for insurance subject to tax | ||||||
17 | under Section 12 of the Fire Investigation Act. For contracts | ||||||
18 | of insurance effective January 1, 2018 or later, within 30 days | ||||||
19 | after filing the report, the insured shall pay to the Director | ||||||
20 | for the use and benefit of the State a sum equal to 0.5% of the | ||||||
21 | gross premium of the contract of insurance, and shall pay the | ||||||
22 | fire marshal tax that would otherwise be due annually in March | ||||||
23 | for insurance subject to tax under Section 12 of the Fire | ||||||
24 | Investigation Act. For contracts of insurance effective | ||||||
25 | January 1, 2015 or later, within 30 days after filing the | ||||||
26 | report, the insured shall pay to the Surplus Line Association |
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1 | of Illinois a countersigning fee that shall be assessed at the | ||||||
2 | same rate charged to members pursuant to subsection (4) of | ||||||
3 | Section 445.1 of this Code. An insured is entitled to a credit | ||||||
4 | against the tax imposed under this Section as provided in | ||||||
5 | Section 229 of the Illinois Income Tax Act. | ||||||
6 | (d) For contracts of insurance effective January 1, 2015 or | ||||||
7 | later, the insured shall withhold the amount of the taxes and | ||||||
8 | countersignature fee from the amount of premium charged by and | ||||||
9 | otherwise payable to the insurer for the insurance. If the | ||||||
10 | insured fails to withhold the tax and countersignature fee from | ||||||
11 | the premium, then the insured shall be liable for the amounts | ||||||
12 | thereof and shall pay the amounts as prescribed in subsection | ||||||
13 | (c) of this Section. | ||||||
14 | (e) Contracts of insurance with an industrial insured that | ||||||
15 | qualifies as a Safety-Net Hospital are not subject to | ||||||
16 | subsections (b) through (d) of this Section. | ||||||
17 | (Source: P.A. 100-535, eff. 9-22-17; 100-1118, eff. 11-27-18.)
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