102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2398
 
Introduced 2/26/2021, by Sen. Rachelle Crowe
 
SYNOPSIS AS INTRODUCED:



35 ILCS 5/232 new

 Amends the Illinois Income Tax Act. Creates an income tax credit for an Illinois business that increases its average full-time employee head count in the State for the taxable year by more than 20% over its average full-time employee head count in the State for the immediately preceding taxable year. Provides that the amount of the credit is 20% of its tax liability under this Act (other than its withholding tax liability) for the taxable year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.



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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


SB2398LRB102 17268 HLH 22740 b



1 AN ACT concerning revenue.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Income Tax Act is amended by 
5adding Section 232 as follows:

6 (35 ILCS 5/232 new)
7 Sec. 232. Credit for increasing employee head count.
8 (a) For taxable years ending on or after December 31, 
92021, if an Illinois business increases its average full-time 
10employee head count in the State for the taxable year by more 
11than 20% over its average full-time employee head count in the 
12State for the immediately preceding taxable year, then that 
13business is entitled to a credit against the taxes imposed by 
14subsections (a) and (b) of Section 201 in an amount equal to 
1520% of its tax liability under this Act (other than its 
16liability under Article 7 of this Act) for the taxable year.
17 (b) Partners, shareholders of subchapter S corporations, 
18and owners of limited liability companies (if the limited 
19liability company is treated as a partnership for purposes of 
20federal and State income taxation) are entitled to a credit 
21under this Section to be determined in accordance with the 
22determination of income and distributive share of income under 
23Sections 702 and 703 and subchapter S of the Internal Revenue 
 
 
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1Code. 
2 (c) As used in this Act, a person is considered a full-time 
3employee if the person is employed for consideration for at 
4least 35 hours each week or renders any other standard of 
5service generally accepted by industry custom or practice as 
6full-time employment. 
7 (d) This Section is exempt from the provisions of Section 
8250. 


9 Section 99. Effective date. This Act takes effect upon 
10becoming law.