Bill Text: IL HB4071 | 2015-2016 | 99th General Assembly | Introduced

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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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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4071 Introduced , by Rep. Katherine Cloonen SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
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.
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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 224 as follows:
(35 ILCS 5/224 new)
Sec. 224. Recapture credit.
(a) For taxable years beginning on or after January 1, 2016
and ending prior to December 31, 2021, each small business
taxpayer is entitled to a credit against the tax imposed by
subsections (a) and (b) of Section 201 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. In no event
shall a credit under this Section reduce the taxpayer's
liability to less than zero. If the amount of the 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 tax credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits for more than one year that are
available to offset a liability, the earlier credit shall be

HB4071 - 2 - LRB099 08094 HLH 28240 b
applied first.
(b) For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, the credit under this
Section shall be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and Subchapter S of the Internal Revenue
Code.
(c) For the purposes of this Section, "small business
taxpayer" means a business employing no more than 200
employees.
Section 99. Effective date. This Act takes effect upon
becoming law.