Bill Text: IL HB3502 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for employers that provide reimbursement to employees for costs associated with commuting to and from a worksite in the State. Provides that the credit shall be equal to 50% of those costs, but not to exceed $100 per employee per month. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-02-17 - Referred to Rules Committee [HB3502 Detail]
Download: Illinois-2023-HB3502-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 | |||||||||||||||||||
5 | adding Section 234 as follows:
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6 | (35 ILCS 5/234 new) | |||||||||||||||||||
7 | Sec. 234. Commuter reimbursement expenses. | |||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, | |||||||||||||||||||
9 | 2023, each employer that provides reimbursement to its | |||||||||||||||||||
10 | employees for costs associated with commuting to and from a | |||||||||||||||||||
11 | worksite in the State is entitled to a credit against the taxes | |||||||||||||||||||
12 | imposed under subsections (a) and (b) of Section 201 in an | |||||||||||||||||||
13 | amount equal to 50% of those costs. The amount of the credit | |||||||||||||||||||
14 | may not exceed $100 per employee per month. In no event may the | |||||||||||||||||||
15 | credit under this Section reduce the taxpayer's liability to | |||||||||||||||||||
16 | less than zero. The credit may not be carried forward or back. | |||||||||||||||||||
17 | (b) Costs that are eligible for reimbursement include | |||||||||||||||||||
18 | passes, tickets, fare cards, vouchers, or any other item | |||||||||||||||||||
19 | required to ride a public or private transit system, not | |||||||||||||||||||
20 | including taxi services. | |||||||||||||||||||
21 | (c) For partners, shareholders of subchapter S | |||||||||||||||||||
22 | corporations, and owners of limited liability companies, if | |||||||||||||||||||
23 | the liability company is treated as a partnership for purposes |
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1 | of federal and State income taxation, there shall be allowed a | ||||||
2 | credit under this Section to be determined in accordance with | ||||||
3 | the determination of income and distributive share of income | ||||||
4 | under Sections 702 and 704 and subchapter S of the Internal | ||||||
5 | Revenue Code. | ||||||
6 | (d) This Section is exempt from the provisions of Section | ||||||
7 | 250.
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
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