Bill Text: IL HB3261 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates a credit for each business that is newly established in the State or that relocates to the State during the taxable year or the previous taxable year. The taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 10% of the wages paid by the business during the taxable year to full-time employees who are residents of Illinois. Creates a credit for other businesses that increase their total full-time employment head count during the taxable year by at least 10 employees in an amount equal to 10% of the wages paid by the business during the taxable year to each resident of Illinois that is first hired by the business during the taxable year.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3261 Detail]

Download: Illinois-2011-HB3261-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3261 Introduced 2/24/2011, by Rep. Patricia R. Bellock SYNOPSIS AS INTRODUCED:
35 ILCS 5/221 new
Amends the Illinois Income Tax Act. Creates a credit for each business that is newly established in the State or that relocates to the State during the taxable year or the previous taxable year. The taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 10% of the wages paid by the business during the taxable year to full-time employees who are residents of Illinois. Creates a credit for other businesses that increase their total full-time employment head count during the taxable year by at least 10 employees in an amount equal to 10% of the wages paid by the business during the taxable year to each resident of Illinois that is first hired by the business during the taxable year.
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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 221 as follows:
(35 ILCS 5/221 new)
Sec. 221. Tax credit for new businesses and new employees.
(a) For taxable years beginning on or after January 1, 2011
and ending on or before December 31, 2016, each business that
is newly established in the State or that relocates to the
State during the taxable year or the previous taxable year is
entitled to a credit against the tax imposed by subsections (a)
and (b) of Section 201 in an amount equal to 10% of the wages
paid by the business during the taxable year to full-time
employees who are residents of Illinois.
(b) In addition, for taxable years beginning on or after
January 1, 2011 and ending on or before December 31, 2016, each
business located in the State that does not qualify under
subsection (a) of this Section that increases its total
full-time employment head count during the taxable year by at
least 10 employees is entitled to a credit against the tax
imposed by subsections (a) and (b) of Section 201 in an amount
equal to 10% of the wages paid by the business during the

HB3261 - 2 - LRB097 09240 HLH 49375 b
taxable year to each resident of Illinois that is first hired
by the business during the taxable year.
(c) 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.