Public Act 096-0905
 
SB3089 Enrolled LRB096 18724 HLH 34109 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
changing Section 704A as follows:
 
    (35 ILCS 5/704A)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds or
is required to deduct and withhold tax under this Act on or
after January 1, 2008 shall make those payments and returns as
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner
required by the Department, make returns with respect to taxes
withheld or required to be withheld under this Article 7 for
each quarter beginning on or after January 1, 2008, on or
before the last day of the first month following the close of
that quarter.
    (c) Payments. With respect to amounts withheld or required
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each
    employer who withheld or was required to withhold more than
    $12,000 during the one-year period ending on June 30 of the
    immediately preceding calendar year, payment must be made:
            (A) on or before each Friday of the calendar year,
        for taxes withheld or required to be withheld on the
        immediately preceding Saturday, Sunday, Monday, or
        Tuesday;
            (B) on or before each Wednesday of the calendar
        year, for taxes withheld or required to be withheld on
        the immediately preceding Wednesday, Thursday, or
        Friday.
        (2) Semi-weekly payments. Any employer who withholds
    or is required to withhold more than $12,000 in any quarter
    of a calendar year is required to make payments on the
    dates set forth under item (1) of this subsection (c) for
    each remaining quarter of that calendar year and for the
    subsequent calendar year.
        (3) Monthly payments. Each employer, other than an
    employer described in items (1) or (2) of this subsection,
    shall pay to the Department, on or before the 15th day of
    each month the taxes withheld or required to be withheld
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to
    the Department, on or before the due date for each return
    required to be filed under this Section, any tax withheld
    or required to be withheld during the period for which the
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) If the aggregate amounts required to be withheld
    under this Article 7 do not exceed $1,000 for the calendar
    year, permit employers, in lieu of the requirements of
    subsections (b) and (c), to file annual returns due on or
    before January 31 of the following year for taxes withheld
    or required to be withheld during that calendar year and to
    pay the taxes required to be shown on each such return no
    later than the due date for such return.
        (2) Provide that any payment required to be made under
    subsection (c)(1) or (c)(2) is deemed to be timely to the
    extent paid by electronic funds transfer on or before the
    due date for deposit of federal income taxes withheld from,
    or federal employment taxes due with respect to, the wages
    from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which payment
    of taxes required to be withheld under this Article 7 must
    be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which
    employers are required to make semi-weekly payments under
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts
and withholds or is required to deduct and withhold tax from a
person engaged in domestic service employment, as that term is
defined in Section 3510 of the Internal Revenue Code, may
comply with the requirements of this Section with respect to
such employees by filing an annual return and paying the taxes
required to be deducted and withheld on or before the 15th day
of the fourth month following the close of the employer's
taxable year. The Department may allow the employer's return to
be submitted with the employer's individual income tax return
or to be submitted with a return due from the employer under
Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. Any W-2 Form
that, under the Internal Revenue Code and regulations
promulgated thereunder, is required to be submitted to the
Internal Revenue Service on magnetic media or electronically
must also be submitted to the Department on magnetic media or
electronically for Illinois purposes, if required by the
Department.
    (g) For amounts deducted or withheld after December 31,
2009, a taxpayer who makes an election under subsection (f) of
Section 5-15 5-15(f) of the Economic Development for a Growing
Economy Tax Credit Act for a taxable year shall be allowed a
credit against payments due under this Section for amounts
withheld during the first calendar year beginning after the end
of that taxable year equal to the amount of the credit for the
incremental income tax attributable to full-time employees of
the taxpayer awarded to the taxpayer by the Department of
Commerce and Economic Opportunity under the Economic
Development for a Growing Economy Tax Credit Act for the
taxable year and credits not previously claimed and allowed to
be carried forward under Section 211(4) of this Act as provided
in subsection (f) of Section 5-15 of the Economic Development
for a Growing Economy Tax Credit Act. The credit or credits may
not reduce the taxpayer's obligation for any payment due under
this Section to less than zero. If the amount of the credit or
credits exceeds the total payments due under this Section with
respect to amounts withheld during the calendar year, the
excess may be carried forward and applied against the
taxpayer's liability under this Section in the 5 succeeding
calendar years as allowed to be carried forward under paragraph
(4) of Section 211 of this Act. The credit or credits 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. Each employer who deducts and withholds
or is required to deduct and withhold tax under this Act and
who retains income tax withholdings under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act must make a return with respect to such taxes
and retained amounts in the form and manner that the
Department, by rule, requires and pay to the Department or to a
depositary designated by the Department those withheld taxes
not retained by the taxpayer. For purposes of this subsection
(g), the term taxpayer shall include taxpayer and members of
the taxpayer's unitary business group as defined under
paragraph (27) of subsection (a) of Section 1501 of this Act.
This Section is exempt from the provisions of Section 250 of
this Act.
    (h) An employer may claim a credit against payments due
under this Section for amounts withheld during the first
calendar year ending after date on which a tax credit
certificate was issued under Section 35 of the Small Business
Job Creation Tax Credit Act. The credit shall be equal to the
amount shown on the certificate, but may not reduce the
taxpayer's obligation for any payment due under this Section to
less than zero. If the amount of the credit exceeds the total
payments due under this Section with respect to amounts
withheld during the calendar year, the excess may be carried
forward and applied against the taxpayer's liability under this
Section in the 5 succeeding calendar years. The credit shall be
applied to the earliest year for which there is a tax
liability. If there are credits from more than one calendar
year that are available to offset a liability, the earlier
credit shall be applied first. This Section is exempt from the
provisions of Section 250 of this Act.
(Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08; 96-834,
eff. 12-14-09; 96-888, eff. 4-13-10.)
 
    Section 10. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Section 5-15 as follows:
 
    (35 ILCS 10/5-15)
    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
forth in this Act, a Taxpayer is entitled to a Credit against
or, as described in subsection (g) (f) of this Section, a
payment towards taxes imposed pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act that may be
imposed on the Taxpayer for a taxable year beginning on or
after January 1, 1999, if the Taxpayer is awarded a Credit by
the Department under this Act for that taxable year.
    (a) The Department shall make Credit awards under this Act
to foster job creation and retention in Illinois.
    (b) A person that proposes a project to create new jobs in
Illinois must enter into an Agreement with the Department for
the Credit under this Act.
    (c) The Credit shall be claimed for the taxable years
specified in the Agreement.
    (d) The Credit shall not exceed the Incremental Income Tax
attributable to the project that is the subject of the
Agreement.
    (e) Nothing herein shall prohibit a Tax Credit Award to an
Applicant that uses a PEO if all other award criteria are
satisfied.
    (f) In lieu of the Credit allowed under this Act against
the taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act for any taxable year
ending on or after December 31, 2009, the Taxpayer may elect to
claim the Credit against its obligation to pay over withholding
under Section 704A of the Illinois Income Tax Act.
        (1) The election under this subsection (f) may be made
    only by a Taxpayer that (i) is primarily engaged in one of
    the following business activities: motor vehicle metal
    stamping, automobile manufacturing, automobile and light
    duty motor vehicle manufacturing, motor vehicle
    manufacturing, light truck and utility vehicle
    manufacturing, heavy duty truck manufacturing, or motor
    vehicle body manufacturing and (ii) meets the following
    criteria:
            (A) the Taxpayer (i) had an Illinois net loss or an
        Illinois net loss deduction under Section 207 of the
        Illinois Income Tax Act for the taxable year in which
        the Credit is awarded, (ii) employed a minimum of 1,000
        full-time employees in this State during the taxable
        year in which the Credit is awarded, (iii) has an
        Agreement under this Act on December 14, 2009 (the
        effective date of Public Act 96-834) this amendatory
        Act of the 96th General Assembly, and (iv) is in
        compliance with all provisions of that Agreement; or
            (B) the Taxpayer (i) had an Illinois net loss or an
        Illinois net loss deduction under Section 207 of the
        Illinois Income Tax Act for the taxable year in which
        the Credit is awarded, (ii) employed a minimum of 1,000
        full-time employees in this State during the taxable
        year in which the Credit is awarded, and (iii) has
        applied for an Agreement within 365 180 days after
        December 14, 2009 (the effective date of Public Act
        96-834); or this amendatory Act of the 96th General
        Assembly.
            (C) the Taxpayer (i) had an Illinois net operating
        loss carryforward under Section 207 of the Illinois
        Income Tax Act in a taxable year ending during calendar
        year 2008, (ii) has applied for an Agreement within 150
        days after the effective date of this amendatory Act of
        the 96th General Assembly, (iii) creates at least 400
        new jobs in Illinois, (iv) retains at least 2,000 jobs
        in Illinois that would have been at risk of relocation
        out of Illinois over a 10-year period, and (v) makes a
        capital investment of at least $75,000,000.
        (2) An election under this subsection shall allow the
    credit to be taken against payments otherwise due under
    Section 704A of the Illinois Income Tax Act during the
    first calendar year beginning after the end of the taxable
    year in which the credit is awarded under this Act.
        (3) The election shall be made in the form and manner
    required by the Illinois Department of Revenue and, once
    made, shall be irrevocable.
        (4) If a Taxpayer who meets the requirements of
    subparagraph (A) of paragraph (1) of this subsection (f)
    elects to claim the Credit against its withholdings as
    provided in this subsection (f), then, on and after the
    date of the election, the terms of the Agreement between
    the Taxpayer and the Department may not be further amended
    during the term of the Agreement.
    (g) (f) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat
some or all of the credit awarded pursuant to this Act as a tax
payment for purposes of the Illinois Income Tax Act. The term
"tax payment" means a payment as described in Article 6 or
Article 8 of the Illinois Income Tax Act or a composite payment
made by a pass-through entity on behalf of any of its
shareholders or partners to satisfy such shareholders' or
partners' taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act. In no event shall
the amount of the award credited pursuant to this Act exceed
the Illinois income tax liability of the pass-through entity or
its shareholders or partners for the taxable year.
(Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09;
96-836, eff. 12-16-09; revised 12-21-09.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.