Bill Text: IL SB2316 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for any taxpayers that hire a new employee for a position as a driver for which a commercial driver's license is required and any individual taxpayers who are employed as a driver in a position in which a commercial driver's license is required. Effective immediately.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2023-03-21 - Added as Co-Sponsor Sen. Dale Fowler [SB2316 Detail]
Download: Illinois-2023-SB2316-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 | |||||||||||||||||||||
5 | adding Section 234 and by changing Section 704A as follows:
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6 | (35 ILCS 5/234 new) | |||||||||||||||||||||
7 | Sec. 234. Commercial driver's license employment tax | |||||||||||||||||||||
8 | credit. | |||||||||||||||||||||
9 | (a) For tax years beginning on or after January 1, 2024 and | |||||||||||||||||||||
10 | ending on or before December 31, 2026, any taxpayers that hire | |||||||||||||||||||||
11 | a new employee for a position as a driver for which a | |||||||||||||||||||||
12 | commercial driver's license is required under Article V of the | |||||||||||||||||||||
13 | Illinois Vehicle Code and any individual taxpayers who are | |||||||||||||||||||||
14 | employed as a driver in a position in which a commercial | |||||||||||||||||||||
15 | driver's license is required are entitled to a credit against | |||||||||||||||||||||
16 | the taxes imposed under subsections (a) and (b) of Section 201 | |||||||||||||||||||||
17 | of this Section. The amount of the credit for the employer and | |||||||||||||||||||||
18 | employee shall each be equal to 2.475% of the wages paid during | |||||||||||||||||||||
19 | the taxable year to the full-time or part-time employee. In | |||||||||||||||||||||
20 | lieu of the credit allowed under this Section against the | |||||||||||||||||||||
21 | taxes imposed pursuant to subsections (a) and (b) of Section | |||||||||||||||||||||
22 | 201 of the Illinois Income Tax Act reported on the taxpayer's | |||||||||||||||||||||
23 | annual return or the returns of partners or Subchapter S |
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1 | corporation shareholders of the taxpayer, the employing | ||||||
2 | taxpayer may elect to claim the credit against its obligation | ||||||
3 | to pay over withholding under Section 704A of the Illinois | ||||||
4 | Income Tax Act. If requested by the employee taxpayer, the | ||||||
5 | employing taxpayer shall reduce the amount of withholding | ||||||
6 | required on wages under Section 704A of the Illinois Income | ||||||
7 | Tax Act on each paycheck by taking into account the employee | ||||||
8 | tax credit. | ||||||
9 | (b) To qualify for the credit, more than 50% of the | ||||||
10 | employee's duties must involve driving a vehicle for which a | ||||||
11 | commercial driver's license is required. | ||||||
12 | (c) If the taxpayer is a partnership, a Subchapter S | ||||||
13 | corporation, or a limited liability company that has elected | ||||||
14 | partnership tax treatment, the employing taxpayer's credit | ||||||
15 | shall be allowed to the partners, shareholders, or members in | ||||||
16 | accordance with the determination of income and distributive | ||||||
17 | share of income under Sections 702 and 704 and subchapter S of | ||||||
18 | the Internal Revenue Code, as applicable. The Department, in | ||||||
19 | cooperation with the Department of Commerce and Economic | ||||||
20 | Opportunity, shall adopt rules to implement and administer | ||||||
21 | this Section. | ||||||
22 | (d) As used in this Section, "new employee" means an | ||||||
23 | employee who is hired on or after the effective date of this | ||||||
24 | amendatory Act of the 103rd General Assembly for a new or | ||||||
25 | vacant position with the employer. | ||||||
26 | (e) This Section is exempt from the provisions of Section |
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1 | 250 of this Act.
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2 | (35 ILCS 5/704A) | ||||||
3 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
4 | (a) In general, every employer who deducts and withholds | ||||||
5 | or is required to deduct and withhold tax under this Act on or | ||||||
6 | after January 1, 2008 shall make those payments and returns as | ||||||
7 | provided in this Section. | ||||||
8 | (b) Returns. Every employer shall, in the form and manner | ||||||
9 | required by the Department, make returns with respect to taxes | ||||||
10 | withheld or required to be withheld under this Article 7 for | ||||||
11 | each quarter beginning on or after January 1, 2008, on or | ||||||
12 | before the last day of the first month following the close of | ||||||
13 | that quarter. | ||||||
14 | (c) Payments. With respect to amounts withheld or required | ||||||
15 | to be withheld on or after January 1, 2008: | ||||||
16 | (1) Semi-weekly payments. For each calendar year, each | ||||||
17 | employer who withheld or was required to withhold more | ||||||
18 | than $12,000 during the one-year period ending on June 30 | ||||||
19 | of the immediately preceding calendar year, payment must | ||||||
20 | be made: | ||||||
21 | (A) on or before each Friday of the calendar year, | ||||||
22 | for taxes withheld or required to be withheld on the | ||||||
23 | immediately preceding Saturday, Sunday, Monday, or | ||||||
24 | Tuesday; | ||||||
25 | (B) on or before each Wednesday of the calendar |
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1 | year, for taxes withheld or required to be withheld on | ||||||
2 | the immediately preceding Wednesday, Thursday, or | ||||||
3 | Friday. | ||||||
4 | Beginning with calendar year 2011, payments made under | ||||||
5 | this paragraph (1) of subsection (c) must be made by | ||||||
6 | electronic funds transfer. | ||||||
7 | (2) Semi-weekly payments. Any employer who withholds | ||||||
8 | or is required to withhold more than $12,000 in any | ||||||
9 | quarter of a calendar year is required to make payments on | ||||||
10 | the dates set forth under item (1) of this subsection (c) | ||||||
11 | for each remaining quarter of that calendar year and for | ||||||
12 | the subsequent calendar year.
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13 | (3) Monthly payments. Each employer, other than an | ||||||
14 | employer described in items (1) or (2) of this subsection, | ||||||
15 | shall pay to the Department, on or before the 15th day of | ||||||
16 | each month the taxes withheld or required to be withheld | ||||||
17 | during the immediately preceding month. | ||||||
18 | (4) Payments with returns. Each employer shall pay to | ||||||
19 | the Department, on or before the due date for each return | ||||||
20 | required to be filed under this Section, any tax withheld | ||||||
21 | or required to be withheld during the period for which the | ||||||
22 | return is due and not previously paid to the Department. | ||||||
23 | (d) Regulatory authority. The Department may, by rule: | ||||||
24 | (1) Permit employers, in lieu of the requirements of | ||||||
25 | subsections (b) and (c), to file annual returns due on or | ||||||
26 | before January 31 of the year for taxes withheld or |
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1 | required to be withheld during the previous calendar year | ||||||
2 | and, if the aggregate amounts required to be withheld by | ||||||
3 | the employer under this Article 7 (other than amounts | ||||||
4 | required to be withheld under Section 709.5) do not exceed | ||||||
5 | $1,000 for the previous calendar year, to pay the taxes | ||||||
6 | required to be shown on each such return no later than the | ||||||
7 | due date for such return. | ||||||
8 | (2) Provide that any payment required to be made under | ||||||
9 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
10 | extent paid by electronic funds transfer on or before the | ||||||
11 | due date for deposit of federal income taxes withheld | ||||||
12 | from, or federal employment taxes due with respect to, the | ||||||
13 | wages from which the Illinois taxes were withheld. | ||||||
14 | (3) Designate one or more depositories to which | ||||||
15 | payment of taxes required to be withheld under this | ||||||
16 | Article 7 must be paid by some or all employers. | ||||||
17 | (4) Increase the threshold dollar amounts at which | ||||||
18 | employers are required to make semi-weekly payments under | ||||||
19 | subsection (c)(1) or (c)(2). | ||||||
20 | (e) Annual return and payment. Every employer who deducts | ||||||
21 | and withholds or is required to deduct and withhold tax from a | ||||||
22 | person engaged in domestic service employment, as that term is | ||||||
23 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
24 | comply with the requirements of this Section with respect to | ||||||
25 | such employees by filing an annual return and paying the taxes | ||||||
26 | required to be deducted and withheld on or before the 15th day |
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1 | of the fourth month following the close of the employer's | ||||||
2 | taxable year. The Department may allow the employer's return | ||||||
3 | to be submitted with the employer's individual income tax | ||||||
4 | return or to be submitted with a return due from the employer | ||||||
5 | under Section 1400.2 of the Unemployment Insurance Act. | ||||||
6 | (f) Magnetic media and electronic filing. With respect to | ||||||
7 | taxes withheld in calendar years prior to 2017, any W-2 Form | ||||||
8 | that, under the Internal Revenue Code and regulations | ||||||
9 | promulgated thereunder, is required to be submitted to the | ||||||
10 | Internal Revenue Service on magnetic media or electronically | ||||||
11 | must also be submitted to the Department on magnetic media or | ||||||
12 | electronically for Illinois purposes, if required by the | ||||||
13 | Department. | ||||||
14 | With respect to taxes withheld in 2017 and subsequent | ||||||
15 | calendar years, the Department may, by rule, require that any | ||||||
16 | return (including any amended return) under this Section and | ||||||
17 | any W-2 Form that is required to be submitted to the Department | ||||||
18 | must be submitted on magnetic media or electronically. | ||||||
19 | The due date for submitting W-2 Forms shall be as | ||||||
20 | prescribed by the Department by rule. | ||||||
21 | (g) For amounts deducted or withheld after December 31, | ||||||
22 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
23 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
24 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
25 | against payments due under this Section for amounts withheld | ||||||
26 | during the first calendar year beginning after the end of that |
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1 | taxable year equal to the amount of the credit for the | ||||||
2 | incremental income tax attributable to full-time employees of | ||||||
3 | the taxpayer awarded to the taxpayer by the Department of | ||||||
4 | Commerce and Economic Opportunity under the Economic | ||||||
5 | Development for a Growing Economy Tax Credit Act for the | ||||||
6 | taxable year and credits not previously claimed and allowed to | ||||||
7 | be carried forward under Section 211(4) of this Act as | ||||||
8 | provided in subsection (f) of Section 5-15 of the Economic | ||||||
9 | Development for a Growing Economy Tax Credit Act. The credit | ||||||
10 | or credits may not reduce the taxpayer's obligation for any | ||||||
11 | payment due under this Section to less than zero. If the amount | ||||||
12 | of the credit or credits exceeds the total payments due under | ||||||
13 | this Section with respect to amounts withheld during the | ||||||
14 | calendar year, the excess may be carried forward and applied | ||||||
15 | against the taxpayer's liability under this Section in the | ||||||
16 | succeeding calendar years as allowed to be carried forward | ||||||
17 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
18 | credits shall be applied to the earliest year for which there | ||||||
19 | is a tax liability. If there are credits from more than one | ||||||
20 | taxable year that are available to offset a liability, the | ||||||
21 | earlier credit shall be applied first. Each employer who | ||||||
22 | deducts and withholds or is required to deduct and withhold | ||||||
23 | tax under this Act and who retains income tax withholdings | ||||||
24 | under subsection (f) of Section 5-15 of the Economic | ||||||
25 | Development for a Growing Economy Tax Credit Act must make a | ||||||
26 | return with respect to such taxes and retained amounts in the |
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1 | form and manner that the Department, by rule, requires and pay | ||||||
2 | to the Department or to a depositary designated by the | ||||||
3 | Department those withheld taxes not retained by the taxpayer. | ||||||
4 | For purposes of this subsection (g), the term taxpayer shall | ||||||
5 | include taxpayer and members of the taxpayer's unitary | ||||||
6 | business group as defined under paragraph (27) of subsection | ||||||
7 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
8 | the provisions of Section 250 of this Act. No credit awarded | ||||||
9 | under the Economic Development for a Growing Economy Tax | ||||||
10 | Credit Act for agreements entered into on or after January 1, | ||||||
11 | 2015 may be credited against payments due under this Section. | ||||||
12 | (g-1) For amounts deducted or withheld after December 31, | ||||||
13 | 2024, a taxpayer who makes an election under the Reimagining | ||||||
14 | Electric Vehicles in Illinois Act shall be allowed a credit | ||||||
15 | against payments due under this Section for amounts withheld | ||||||
16 | during the first quarterly reporting period beginning after | ||||||
17 | the certificate is issued equal to the portion of the REV | ||||||
18 | Illinois Credit attributable to the incremental income tax | ||||||
19 | attributable to new employees and retained employees as | ||||||
20 | certified by the Department of Commerce and Economic | ||||||
21 | Opportunity pursuant to an agreement with the taxpayer under | ||||||
22 | the Reimagining Electric Vehicles in Illinois Act for the | ||||||
23 | taxable year. The credit or credits may not reduce the | ||||||
24 | taxpayer's obligation for any payment due under this Section | ||||||
25 | to less than zero. If the amount of the credit or credits | ||||||
26 | exceeds the total payments due under this Section with respect |
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1 | to amounts withheld during the quarterly reporting period, the | ||||||
2 | excess may be carried forward and applied against the | ||||||
3 | taxpayer's liability under this Section in the succeeding | ||||||
4 | quarterly reporting period as allowed to be carried forward | ||||||
5 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
6 | credits shall be applied to the earliest quarterly reporting | ||||||
7 | period for which there is a tax liability. If there are credits | ||||||
8 | from more than one quarterly reporting period that are | ||||||
9 | available to offset a liability, the earlier credit shall be | ||||||
10 | applied first. Each employer who deducts and withholds or is | ||||||
11 | required to deduct and withhold tax under this Act and who | ||||||
12 | retains income tax withholdings this subsection must make a | ||||||
13 | return with respect to such taxes and retained amounts in the | ||||||
14 | form and manner that the Department, by rule, requires and pay | ||||||
15 | to the Department or to a depositary designated by the | ||||||
16 | Department those withheld taxes not retained by the taxpayer. | ||||||
17 | For purposes of this subsection (g-1), the term taxpayer shall | ||||||
18 | include taxpayer and members of the taxpayer's unitary | ||||||
19 | business group as defined under paragraph (27) of subsection | ||||||
20 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
21 | the provisions of Section 250 of this Act. | ||||||
22 | (g-2) For amounts deducted or withheld after December 31, | ||||||
23 | 2024, a taxpayer who makes an election under the Manufacturing | ||||||
24 | Illinois Chips for Real Opportunity (MICRO) Act shall be | ||||||
25 | allowed a credit against payments due under this Section for | ||||||
26 | amounts withheld during the first quarterly reporting period |
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1 | beginning after the certificate is issued equal to the portion | ||||||
2 | of the MICRO Illinois Credit attributable to the incremental | ||||||
3 | income tax attributable to new employees and retained | ||||||
4 | employees as certified by the Department of Commerce and | ||||||
5 | Economic Opportunity pursuant to an agreement with the | ||||||
6 | taxpayer under the Manufacturing Illinois Chips for Real | ||||||
7 | Opportunity (MICRO) Act for the taxable year. The credit or | ||||||
8 | credits may not reduce the taxpayer's obligation for any | ||||||
9 | payment due under this Section to less than zero. If the amount | ||||||
10 | of the credit or credits exceeds the total payments due under | ||||||
11 | this Section with respect to amounts withheld during the | ||||||
12 | quarterly reporting period, the excess may be carried forward | ||||||
13 | and applied against the taxpayer's liability under this | ||||||
14 | Section in the succeeding quarterly reporting period as | ||||||
15 | allowed to be carried forward under paragraph (4) of Section | ||||||
16 | 211 of this Act. The credit or credits shall be applied to the | ||||||
17 | earliest quarterly reporting period for which there is a tax | ||||||
18 | liability. If there are credits from more than one quarterly | ||||||
19 | reporting period that are available to offset a liability, the | ||||||
20 | earlier credit shall be applied first. Each employer who | ||||||
21 | deducts and withholds or is required to deduct and withhold | ||||||
22 | tax under this Act and who retains income tax withholdings | ||||||
23 | this subsection must make a return with respect to such taxes | ||||||
24 | and retained amounts in the form and manner that the | ||||||
25 | Department, by rule, requires and pay to the Department or to a | ||||||
26 | depositary designated by the Department those withheld taxes |
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1 | not retained by the taxpayer. For purposes of this subsection, | ||||||
2 | the term taxpayer shall include taxpayer and members of the | ||||||
3 | taxpayer's unitary business group as defined under paragraph | ||||||
4 | (27) of subsection (a) of Section 1501 of this Act. This | ||||||
5 | Section is exempt from the provisions of Section 250 of this | ||||||
6 | Act. | ||||||
7 | (h) An employer may claim a credit against payments due | ||||||
8 | under this Section for amounts withheld during the first | ||||||
9 | calendar year ending after the date on which a tax credit | ||||||
10 | certificate was issued under Section 35 of the Small Business | ||||||
11 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
12 | amount shown on the certificate, but may not reduce the | ||||||
13 | taxpayer's obligation for any payment due under this Section | ||||||
14 | to less than zero. If the amount of the credit exceeds the | ||||||
15 | total payments due under this Section with respect to amounts | ||||||
16 | withheld during the calendar year, the excess may be carried | ||||||
17 | forward and applied against the taxpayer's liability under | ||||||
18 | this Section in the 5 succeeding calendar years. The credit | ||||||
19 | shall be applied to the earliest year for which there is a tax | ||||||
20 | liability. If there are credits from more than one calendar | ||||||
21 | year that are available to offset a liability, the earlier | ||||||
22 | credit shall be applied first. This Section is exempt from the | ||||||
23 | provisions of Section 250 of this Act. | ||||||
24 | (i) Each employer with 50 or fewer full-time equivalent | ||||||
25 | employees during the reporting period may claim a credit | ||||||
26 | against the payments due under this Section for each qualified |
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1 | employee in an amount equal to the maximum credit allowable. | ||||||
2 | The credit may be taken against payments due for reporting | ||||||
3 | periods that begin on or after January 1, 2020, and end on or | ||||||
4 | before December 31, 2027. An employer may not claim a credit | ||||||
5 | for an employee who has worked fewer than 90 consecutive days | ||||||
6 | immediately preceding the reporting period; however, such | ||||||
7 | credits may accrue during that 90-day period and be claimed | ||||||
8 | against payments under this Section for future reporting | ||||||
9 | periods after the employee has worked for the employer at | ||||||
10 | least 90 consecutive days. In no event may the credit exceed | ||||||
11 | the employer's liability for the reporting period. Each | ||||||
12 | employer who deducts and withholds or is required to deduct | ||||||
13 | and withhold tax under this Act and who retains income tax | ||||||
14 | withholdings under this subsection must make a return with | ||||||
15 | respect to such taxes and retained amounts in the form and | ||||||
16 | manner that the Department, by rule, requires and pay to the | ||||||
17 | Department or to a depositary designated by the Department | ||||||
18 | those withheld taxes not retained by the employer. | ||||||
19 | For each reporting period, the employer may not claim a | ||||||
20 | credit or credits for more employees than the number of | ||||||
21 | employees making less than the minimum or reduced wage for the | ||||||
22 | current calendar year during the last reporting period of the | ||||||
23 | preceding calendar year. Notwithstanding any other provision | ||||||
24 | of this subsection, an employer shall not be eligible for | ||||||
25 | credits for a reporting period unless the average wage paid by | ||||||
26 | the employer per employee for all employees making less than |
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1 | $55,000 during the reporting period is greater than the | ||||||
2 | average wage paid by the employer per employee for all | ||||||
3 | employees making less than $55,000 during the same reporting | ||||||
4 | period of the prior calendar year. | ||||||
5 | For purposes of this subsection (i): | ||||||
6 | "Compensation paid in Illinois" has the meaning ascribed | ||||||
7 | to that term under Section 304(a)(2)(B) of this Act. | ||||||
8 | "Employer" and "employee" have the meaning ascribed to | ||||||
9 | those terms in the Minimum Wage Law, except that "employee" | ||||||
10 | also includes employees who work for an employer with fewer | ||||||
11 | than 4 employees. Employers that operate more than one | ||||||
12 | establishment pursuant to a franchise agreement or that | ||||||
13 | constitute members of a unitary business group shall aggregate | ||||||
14 | their employees for purposes of determining eligibility for | ||||||
15 | the credit. | ||||||
16 | "Full-time equivalent employees" means the ratio of the | ||||||
17 | number of paid hours during the reporting period and the | ||||||
18 | number of working hours in that period. | ||||||
19 | "Maximum credit" means the percentage listed below of the | ||||||
20 | difference between the amount of compensation paid in Illinois | ||||||
21 | to employees who are paid not more than the required minimum | ||||||
22 | wage reduced by the amount of compensation paid in Illinois to | ||||||
23 | employees who were paid less than the current required minimum | ||||||
24 | wage during the reporting period prior to each increase in the | ||||||
25 | required minimum wage on January 1. If an employer pays an | ||||||
26 | employee more than the required minimum wage and that employee |
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1 | previously earned less than the required minimum wage, the | ||||||
2 | employer may include the portion that does not exceed the | ||||||
3 | required minimum wage as compensation paid in Illinois to | ||||||
4 | employees who are paid not more than the required minimum | ||||||
5 | wage. | ||||||
6 | (1) 25% for reporting periods beginning on or after | ||||||
7 | January 1, 2020 and ending on or before December 31, 2020; | ||||||
8 | (2) 21% for reporting periods beginning on or after | ||||||
9 | January 1, 2021 and ending on or before December 31, 2021; | ||||||
10 | (3) 17% for reporting periods beginning on or after | ||||||
11 | January 1, 2022 and ending on or before December 31, 2022; | ||||||
12 | (4) 13% for reporting periods beginning on or after | ||||||
13 | January 1, 2023 and ending on or before December 31, 2023; | ||||||
14 | (5) 9% for reporting periods beginning on or after | ||||||
15 | January 1, 2024 and ending on or before December 31, 2024; | ||||||
16 | (6) 5% for reporting periods beginning on or after | ||||||
17 | January 1, 2025 and ending on or before December 31, 2025. | ||||||
18 | The amount computed under this subsection may continue to | ||||||
19 | be claimed for reporting periods beginning on or after January | ||||||
20 | 1, 2026 and: | ||||||
21 | (A) ending on or before December 31, 2026 for | ||||||
22 | employers with more than 5 employees; or | ||||||
23 | (B) ending on or before December 31, 2027 for | ||||||
24 | employers with no more than 5 employees. | ||||||
25 | "Qualified employee" means an employee who is paid not | ||||||
26 | more than the required minimum wage and has an average wage |
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1 | paid per hour by the employer during the reporting period | ||||||
2 | equal to or greater than his or her average wage paid per hour | ||||||
3 | by the employer during each reporting period for the | ||||||
4 | immediately preceding 12 months. A new qualified employee is | ||||||
5 | deemed to have earned the required minimum wage in the | ||||||
6 | preceding reporting period. | ||||||
7 | "Reporting period" means the quarter for which a return is | ||||||
8 | required to be filed under subsection (b) of this Section. | ||||||
9 | (j) For reporting periods beginning on or after January 1, | ||||||
10 | 2023, if a private employer grants all of its employees the | ||||||
11 | option of taking a paid leave of absence of at least 30 days | ||||||
12 | for the purpose of serving as an organ donor or bone marrow | ||||||
13 | donor, then the private employer may take a credit against the | ||||||
14 | payments due under this Section in an amount equal to the | ||||||
15 | amount withheld under this Section with respect to wages paid | ||||||
16 | while the employee is on organ donation leave, not to exceed | ||||||
17 | $1,000 in withholdings for each employee who takes organ | ||||||
18 | donation leave. To be eligible for the credit, such a leave of | ||||||
19 | absence must be taken without loss of pay, vacation time,
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20 | compensatory time, personal days, or sick time for at least | ||||||
21 | the first 30 days of the leave of absence. The private employer | ||||||
22 | shall adopt rules governing organ donation leave, including | ||||||
23 | rules that (i) establish conditions and procedures for | ||||||
24 | requesting and approving leave and (ii) require medical | ||||||
25 | documentation of the proposed organ or bone marrow donation | ||||||
26 | before leave is approved by the private employer. A private |
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1 | employer must provide, in the manner required by the | ||||||
2 | Department, documentation from the employee's medical | ||||||
3 | provider, which the private employer receives from the | ||||||
4 | employee, that verifies the employee's organ donation. The | ||||||
5 | private employer must also provide, in the manner required by | ||||||
6 | the Department, documentation that shows that a qualifying | ||||||
7 | organ donor leave policy was in place and offered to all | ||||||
8 | qualifying employees at the time the leave was taken. For the | ||||||
9 | private employer to receive the tax credit, the employee | ||||||
10 | taking organ donor leave must allow for the applicable medical | ||||||
11 | records to be disclosed to the Department. If the private | ||||||
12 | employer cannot provide the required documentation to the | ||||||
13 | Department, then the private employer is ineligible for the | ||||||
14 | credit under this Section. A private employer must also | ||||||
15 | provide, in the form required by the Department, any | ||||||
16 | additional documentation or information required by the | ||||||
17 | Department to administer the credit under this Section. The | ||||||
18 | credit under this subsection (j) shall be taken within one | ||||||
19 | year after the date upon which the organ donation leave | ||||||
20 | begins. If the leave taken spans into a second tax year, the | ||||||
21 | employer qualifies for the allowable credit in the later of | ||||||
22 | the 2 years. If the amount of credit exceeds the tax liability | ||||||
23 | for the year, the excess may be carried and applied to the tax | ||||||
24 | liability for the 3 taxable years following the excess credit | ||||||
25 | year. The tax credit shall be applied to the earliest year for | ||||||
26 | which there is a tax liability. If there are credits for more |
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1 | than one year that are available to offset liability, the | ||||||
2 | earlier credit shall be applied first. | ||||||
3 | Nothing in this subsection (j) prohibits a private | ||||||
4 | employer from providing an unpaid leave of absence to its | ||||||
5 | employees for the purpose of serving as an organ donor or bone | ||||||
6 | marrow donor; however, if the employer's policy provides for | ||||||
7 | fewer than 30 days of paid leave for organ or bone marrow | ||||||
8 | donation, then the employer shall not be eligible for the | ||||||
9 | credit under this Section. | ||||||
10 | As used in this subsection (j): | ||||||
11 | "Organ" means any biological tissue of the human body that | ||||||
12 | may be donated by a living donor, including, but not limited | ||||||
13 | to, the kidney, liver, lung, pancreas, intestine, bone, skin, | ||||||
14 | or any subpart of those organs. | ||||||
15 | "Organ donor" means a person from whose body an organ is | ||||||
16 | taken to be transferred to the body of another person. | ||||||
17 | "Private employer" means a sole proprietorship, | ||||||
18 | corporation, partnership, limited liability company, or other | ||||||
19 | entity with one or more employees. "Private employer" does not | ||||||
20 | include a municipality, county, State agency, or other public | ||||||
21 | employer. | ||||||
22 | This subsection (j) is exempt from the provisions of | ||||||
23 | Section 250 of this Act. | ||||||
24 | (k) An employer may claim a credit against payments due
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25 | under this Section as provided in Section 234. | ||||||
26 | (Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21; |
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1 | 102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700, | ||||||
2 | Article 110, Section 110-905, eff. 4-19-22; revised 6-1-22.)
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3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
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