Bill Text: IL HB3613 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the salary or stipend paid to a qualified intern during the taxable year. Provides that, if the qualified intern is hired by the taxpayer on a full-time basis upon graduation, the employer is entitled to the credit for each of the first 2 years of the intern's full-time employment with the taxpayer. Effective immediately.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-05-21 - Added Co-Sponsor Rep. Jonathan "Yoni" Pizer [HB3613 Detail]
Download: Illinois-2019-HB3613-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. Credit for hiring a qualified intern. | ||||||||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, | ||||||||||||||||||||||||
9 | 2019, each employer that hires a qualified intern during the | ||||||||||||||||||||||||
10 | taxable year is entitled to a credit against the tax imposed by | ||||||||||||||||||||||||
11 | subsections (a) and (b) of Section 201 in an amount equal to | ||||||||||||||||||||||||
12 | 10% of the salary or stipend paid to the intern during the | ||||||||||||||||||||||||
13 | taxable year. If the qualified intern is hired by the taxpayer | ||||||||||||||||||||||||
14 | on a full-time basis upon graduation, the employer is entitled | ||||||||||||||||||||||||
15 | to a credit under this Section for each of the first 2 years of | ||||||||||||||||||||||||
16 | the intern's full-time employment with the taxpayer. | ||||||||||||||||||||||||
17 | (b) If the taxpayer is a partnership, limited liability | ||||||||||||||||||||||||
18 | partnership, limited liability company, or Subchapter S | ||||||||||||||||||||||||
19 | corporation, the tax credit award is allowed to the partners, | ||||||||||||||||||||||||
20 | unit holders, or shareholders in accordance with the | ||||||||||||||||||||||||
21 | determination of income and distributive share of income under | ||||||||||||||||||||||||
22 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||||||||||||||||||||
23 | Code. |
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1 | (c) In no event shall a credit under this Section reduce a | ||||||
2 | taxpayer's liability to less than zero. If the amount of credit | ||||||
3 | exceeds the tax liability for the year, the excess may be | ||||||
4 | carried forward and applied to the tax liability for the 5 | ||||||
5 | taxable years following the excess credit year. The tax credit | ||||||
6 | shall be applied to the earliest year for which there is a tax | ||||||
7 | liability. If there are credits for more than one year that are | ||||||
8 | available to offset liability, the earlier credit shall be | ||||||
9 | applied first. | ||||||
10 | (d) As used in this Section, "qualified intern" means a | ||||||
11 | resident of Illinois who is a full-time student at an Illinois | ||||||
12 | institution of higher education and whose employment with the | ||||||
13 | taxpayer during the internship is designed to provide the | ||||||
14 | student with professional or practical experience.
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15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
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