Bill Text: IL HB3144 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2014, each business that is first located in the State during the taxable year is entitled to a credit in an amount equal to 10% of the wages paid to qualified employees during the taxpayer's first year of business in the State. Provides that the term "qualified employee" means a full-time employee of the taxpayer who is a resident of the State and not more than a 5% shareholder, partner, member, or owner of the taxpayer. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2014-12-03 - Session Sine Die [HB3144 Detail]

Download: Illinois-2013-HB3144-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB3144 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2014, each business that is first located in the State during the taxable year is entitled to a credit in an amount equal to 10% of the wages paid to qualified employees during the taxpayer's first year of business in the State. Provides that the term "qualified employee" means a full-time employee of the taxpayer who is a resident of the State and not more than a 5% shareholder, partner, member, or owner of the taxpayer. 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. New business credit.
(a) For taxable years beginning on or after January 1,
2014, each business that is first located in the State during
the taxable year is entitled to a credit against the tax tax
imposed under subsections (a) and (b) of this Section in an
amount equal to 10% of the wages paid to qualified employees
during the taxpayer's first year of business in the State. For
the purposes of this Section, "qualified employee" means a
full-time employee of the taxpayer who is a resident of the
State and not more than a 5% shareholder, partner, member, or
owner of the taxpayer.
(b) 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

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are credits from more than one tax year that are available to
offset a liability, then the earlier credit must be applied
first.
(c) If the Taxpayer is a partnership or Subchapter S
corporation, the credit shall be allowed to the partners or
shareholders 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.