Bill Text: IL HB5778 | 2017-2018 | 100th General Assembly | Engrossed
Bill Title: Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also extends to wages paid to a qualified veteran's spouse. Effective immediately.
Spectrum: Slight Partisan Bill (Democrat 6-2)
Status: (Failed) 2019-01-08 - Session Sine Die [HB5778 Detail]
Download: Illinois-2017-HB5778-Engrossed.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 | changing Section 217 as follows:
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6 | (35 ILCS 5/217)
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7 | Sec. 217. Credit for wages paid to qualified veterans and | ||||||
8 | spouses of qualified veterans . | ||||||
9 | (a) For each taxable year beginning on or after January 1, | ||||||
10 | 2007 and ending on or before December 30, 2010, each taxpayer | ||||||
11 | is entitled to a credit against the tax imposed by subsections | ||||||
12 | (a) and (b) of Section 201 of this Act in an amount equal to 5%, | ||||||
13 | but in no event to exceed $600, of the gross wages paid by the | ||||||
14 | taxpayer to a qualified veteran in the course of that veteran's | ||||||
15 | sustained employment during the taxable year. For each taxable | ||||||
16 | year that begins beginning on or after January 1, 2010 and | ||||||
17 | begins prior to January 1, 2018 , each taxpayer is entitled to a | ||||||
18 | credit against the tax imposed by subsections (a) and (b) of | ||||||
19 | Section 201 of this Act in an amount equal to 10%, but in no | ||||||
20 | event to exceed $1,200, of the gross wages paid by the taxpayer | ||||||
21 | to a qualified veteran in the course of that veteran's | ||||||
22 | sustained employment during the taxable year. For each taxable | ||||||
23 | year that begins on or after January 1, 2018 and begins prior |
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1 | to January 1, 2022, each taxpayer is entitled to a credit | ||||||
2 | against the tax imposed by subsections (a) and (b) of Section | ||||||
3 | 201 of this Act in an amount equal to 10%, but in no event to | ||||||
4 | exceed $1,200, of the gross wages paid by the taxpayer to a | ||||||
5 | qualified veteran or the spouse of a qualified veteran in the | ||||||
6 | course of that veteran's or spouse's sustained employment | ||||||
7 | during the taxable year. For partners, shareholders of | ||||||
8 | Subchapter S corporations, and owners of limited liability | ||||||
9 | companies, if the liability company is treated as a partnership | ||||||
10 | for purposes of federal and State income taxation, there shall | ||||||
11 | be allowed a credit under this Section to be determined in | ||||||
12 | accordance with the determination of income and distributive | ||||||
13 | share of income under Sections 702 and 704 and Subchapter S of | ||||||
14 | the Internal Revenue Code. | ||||||
15 | (b) For purposes of this Section: | ||||||
16 | "Qualified veteran" means an Illinois resident who: (i) was | ||||||
17 | a member of the Armed Forces of the United States, a member of | ||||||
18 | the Illinois National Guard, or a member of any reserve | ||||||
19 | component of the Armed Forces of the United States; (ii) served | ||||||
20 | on active duty in connection with Operation Desert Storm, | ||||||
21 | Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) | ||||||
22 | has provided, to the taxpayer, documentation showing that he or | ||||||
23 | she was honorably discharged; and (iv) was initially hired by | ||||||
24 | the taxpayer on or after January 1, 2007. | ||||||
25 | "Sustained employment" means a period of employment that is | ||||||
26 | not less than 185 days during the taxable year. |
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1 | (c) In no event shall a credit under this Section reduce | ||||||
2 | the taxpayer's liability to less than zero. If the amount of | ||||||
3 | the credit exceeds the tax liability for the year, the excess | ||||||
4 | may be carried forward and applied to the tax liability of the | ||||||
5 | 5 taxable years following the excess credit year. The tax | ||||||
6 | credit shall be applied to the earliest year for which there is | ||||||
7 | a tax liability. If there are credits for more than one year | ||||||
8 | that are available to offset a liability, the earlier credit | ||||||
9 | shall be applied first.
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10 | (d) A taxpayer who claims a credit under this Section for a | ||||||
11 | taxable year with respect to a veteran shall not be allowed a | ||||||
12 | credit under Section 217.1 of this Act with respect to the same | ||||||
13 | veteran for that taxable year. | ||||||
14 | (Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.)
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15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
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