Bill Text: IL HB4071 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates a credit for each small business taxpayer in an amount equal to 50%, but in no event to exceed $100,000, of the amount paid by the small business taxpayer during the taxable year to an insolvent debtor or a trustee as a result of a recapture under Section 547(b) of the federal Bankruptcy Code. Provides that the term "small business taxpayer" means a business employing no more than 200 employees. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB4071 Detail]
Download: Illinois-2015-HB4071-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 224 as follows:
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6 | (35 ILCS 5/224 new) | ||||||||||||||||||||||||
7 | Sec. 224. Recapture credit. | ||||||||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, 2016 | ||||||||||||||||||||||||
9 | and ending prior to December 31, 2021, each small business | ||||||||||||||||||||||||
10 | taxpayer is entitled to a credit against the tax imposed by | ||||||||||||||||||||||||
11 | subsections (a) and (b) of Section 201 in an amount equal to | ||||||||||||||||||||||||
12 | 50%, but in no event to exceed $100,000, of the amount paid by | ||||||||||||||||||||||||
13 | the small business taxpayer during the taxable year to an | ||||||||||||||||||||||||
14 | insolvent debtor or a trustee as a result of a recapture under | ||||||||||||||||||||||||
15 | Section 547(b) of the federal Bankruptcy Code. In no event | ||||||||||||||||||||||||
16 | shall a credit under this Section reduce the taxpayer's | ||||||||||||||||||||||||
17 | liability to less than zero. If the amount of the credit | ||||||||||||||||||||||||
18 | exceeds the tax liability for the year, the excess may be | ||||||||||||||||||||||||
19 | carried forward and applied to the tax liability of the 5 | ||||||||||||||||||||||||
20 | taxable years following the excess credit year. The tax credit | ||||||||||||||||||||||||
21 | shall be applied to the earliest year for which there is a tax | ||||||||||||||||||||||||
22 | liability. If there are credits for more than one year that are | ||||||||||||||||||||||||
23 | available to offset a liability, the earlier credit shall be |
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1 | applied first. | ||||||
2 | (b) For partners, shareholders of Subchapter S | ||||||
3 | corporations, and owners of limited liability companies, if the | ||||||
4 | liability company is treated as a partnership for purposes of | ||||||
5 | federal and State income taxation, the credit under this | ||||||
6 | Section shall be determined in accordance with the | ||||||
7 | determination of income and distributive share of income under | ||||||
8 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
9 | Code. | ||||||
10 | (c) For the purposes of this Section, "small business | ||||||
11 | taxpayer" means a business employing no more than 200 | ||||||
12 | employees.
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13 | Section 99. Effective date. This Act takes effect upon | ||||||
14 | becoming law.
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