Bill Text: IL HB3399 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that each taxpayer is allowed a credit against the tax imposed under the Act in an amount equal to a percentage of wages paid to an employee who was drawing unemployment compensation at the time of hire and who has been employed by the taxpayer as a full-time employee for a period of 12 consecutive months at any point during the taxable year.

Sponsorship: Partisan Bill (Republican 4)

Status: (Failed) 2014-12-03 - Session Sine Die [HB3399 Detail]

Download: Illinois-2013-HB3399-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB3399 Introduced , by Rep. Michael P. McAuliffe SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
Amends the Illinois Income Tax Act. Provides that each taxpayer is allowed a credit against the tax imposed under the Act in an amount equal to a percentage of wages paid to an employee who was drawing unemployment compensation at the time of hire and who has been employed by the taxpayer as a full-time employee for a period of 12 consecutive months at any point during the taxable year.
LRB098 08349 HLH 38454 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB3399 LRB098 08349 HLH 38454 b
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. Credit for wages paid to recently unemployed
persons.
(a) Each taxpayer is allowed a credit against the tax
imposed by subsections (a) and (b) of Section 201 in an amount
equal to a percentage of wages paid to an employee who, as
certified by the Illinois Department of Employment Security,
was drawing unemployment compensation, or whose unemployment
benefits had expired, at the time of hire and who has been
employed by the taxpayer as a full-time employee for a period
of 12 consecutive months at any point during the taxable year.
The credit shall be calculated as follows:
(1) fifty percent of wages paid if the employee's wages
are not less than $14 per hour at any point during the
taxable year;
(2) forty percent of wages paid if the employee's wages
are less than $14 per hour but not less than $12 per hour
at any point during the taxable year;

HB3399 - 2 - LRB098 08349 HLH 38454 b
(3) thirty-five percent of wages paid if the employee's
wages are less than $12 per hour but not less than $10 per
hour at any point during the taxable year; and
(4) zero percent of wages paid if the employee's wages
are less than $10 per hour at any point during the taxable
year.
(b) For purposes of this Section, "full-time employee"
means an employee who works no less than 37.5 hours per week.
(c) The tax credit may not reduce the taxpayer's liability
to less than zero. If the amount of the credit exceeds the
income tax liability for the applicable tax year, then the
excess credit may not be refunded to, or transferred by, the
taxpayer.
(d) The tax credit may be claimed for only one taxable
year.
(e) Partners, shareholders of subchapter S corporations,
and owners of limited liability companies (if the limited
liability company is treated as a partnership for purposes of
federal and State income taxation) are entitled to a credit
under this Section to be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 703 and subchapter S of the Internal Revenue
Code.