Bill Text: IL HB5802 | 2015-2016 | 99th General Assembly | Introduced

---

Bill Title: Amends the Illinois Income Tax Act. Creates a credit for qualifying taxpayers who own and operate a business in an area with low long-term manufacturing job projections in the amount of $3,500 for each employee hired by the taxpayer on or after January 1, 2017 to work at job location in an area with low long-term manufacturing job projections and retained by the taxpayer at that job location for 2 years. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2016-04-08 - Rule 19(a) / Re-referred to Rules Committee [HB5802 Detail]

Download: Illinois-2015-HB5802-Introduced.html

---

99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB5802 Introduced , by Rep. Bill Mitchell SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
Amends the Illinois Income Tax Act. Creates a credit for qualifying taxpayers who own and operate a business in an area with low long-term manufacturing job projections in the amount of $3,500 for each employee hired by the taxpayer on or after January 1, 2017 to work at job location in an area with low long-term manufacturing job projections and retained by the taxpayer at that job location for 2 years. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.
LRB099 19403 HLH 43795 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB5802 LRB099 19403 HLH 43795 b
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. Manufacturing job creation credit.
(a) For taxable years beginning on or after January 1,
2017, each qualifying taxpayer who owns and operates a business
in an area with low long-term manufacturing job projections
shall be allowed a credit against the tax imposed by
subsections (a) and (b) of Section 201 of this Act in the
amount of $3,500 for each employee hired by the taxpayer on or
after January 1, 2017 to work at job location in an area with
low long-term manufacturing job projections and retained by the
taxpayer at that job location for 2 years. Of the $3,500
amount: (1) an amount equal to $2,000 is allowed as a credit
for the taxable year in which the employee is hired if the
employee remains employed by the employer at that job location
on the last day of that taxable year; (2) an amount equal to
$1,000 is allowed as a credit for the following taxable year if
the employee remains employed by the employer at that job
location on the last day of that taxable year; and (3) an

HB5802 - 2 - LRB099 19403 HLH 43795 b
amount equal to $500 is allowed for the second taxable year
after the employee is hired if the employee remains employed by
the employer at that job location on the second anniversary of
the date he or she was hired to work at that job location.
(b) For the purposes of this Section, an "area with low
long-term manufacturing job projections" means a Local
Workforce Investment Area, as defined by the North American
Industrial Classification System, that is projected to
experience an annual compound growth rate between 0 and 0.1
between the base year 2012 and projected year 2022 with regard
to total manufacturing employment, as reported by the
Department of Employment Security.
(c) A credit under this Section may not exceed the
taxpayer's Illinois income tax liability for the taxable year.
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 credit shall be applied to the earliest year for
which there is a tax liability. If there are credits from more
than one taxable year that are available to offset a liability,
the earlier credit shall be applied first. In the case of a
partnership or Subchapter S Corporation, the credit is allowed
to the partners or shareholders in accordance with the
determination of income and distributive share of income under
Section 702 and 704 and Subchapter S of the Internal Revenue
Code.

HB5802 - 3 - LRB099 19403 HLH 43795 b
(d) This Section is exempt from the provisions of Section
250 of this Act.
Section 99. Effective date. This Act takes effect upon
becoming law.