Section 522.80  Determination of Amount of Tax Credit

a)         The credit shall be equal to 100% of the qualified education expenses, but in no event may the total credit amount awarded to a single taxpayer in a single taxable year exceed $3,500 per qualifying apprentice. [P.A. 101-0207; 35 ILCS 5/229(b)]

b)         Underserved Area Increase. A taxpayer shall be entitled to an additional $1,500 credit (for a total credit up to $5,000 per qualifying apprentice) against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act if (i) the qualifying apprentice resides in an Underserved Area during the school year for which a credit is sought by an employer or (ii) the employer's Principal Place of Business is located in an Underserved Area. [P.A. 101-0207; 35 ILCS 5/229(b)]

c)         In no event shall a credit under this Section reduce the taxpayer's liability under this Act to less than zero. If a taxpayer received a grant for qualifying education expenses to be paid by a grantor, only the qualifying education expenses not paid for with grant funds can be claimed. [P.A. 101-0207; 35 ILCS 5/229(b)]

d)         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, there shall be allowed a credit under this Section to 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. [P.A. 101-0207; 35 ILCS 5/229(b)]

e)         The tax credit for qualified education expenses incurred must be claimed for the tax year in which the qualified education expenses are actually paid by the employer. Any part of the apprenticeship education expense credit not claimed or allowed in a given tax year shall not be carried forward or backward to any other tax year.  Likewise, where qualified education expenses are incurred in excess of the allowable education expense credit for any given tax year, the excess of qualified education expenses shall not be used in claiming the education expense credit for any other tax year.