HB3497ham001 101ST GENERAL ASSEMBLY

Rep. John Connor

Filed: 3/25/2019

10100HB3497ham001 LRB101 07563 HLH 58436 a

AMENDMENT TO HOUSE BILL 3497

AMENDMENT NO. ______. Amend House Bill 3497 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Income Tax Act is amended by adding Section 229 as follows:

(35 ILCS 5/229 new)

Sec. 229. Manufacturing, plastics, and construction apprenticeship training credit.

(a) For tax years beginning on or after January 1, 2019, a taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 for certain amounts paid by the taxpayer as wages pursuant to a qualified apprenticeship program. The credit may not exceed the lesser of (i) 50% of the wages paid by the taxpayer to each apprentice during the taxable year or (ii) $4,800 per apprentice. For taxpayers who were awarded a credit under this Section in a previous taxable year, the credit shall apply only to the number of qualified individuals employed by the employer through a qualified apprenticeship program that exceeds the apprenticeship participation average for the employer. The taxpayer shall apply with the Department of Commerce and Economic Opportunity annually for certification as a qualified apprenticeship program. The application shall be in the form and manner prescribed by the Department of Commerce and Economic Opportunity. If the taxpayer is a participant in a construction apprenticeship program, proof that the construction apprenticeship program is registered with the United States Department of Labor's Employment and Training Administration shall be sufficient for certification. The Department of Commerce and Economic Opportunity shall award credits under this Section on a first-come, first-served basis and may not award more than $50,000,000 in credits in any 5-year period. In addition to any other information required by the Department of Commerce and Economic Opportunity, the applicant must demonstrate that the applicant would not participate in a qualified apprenticeship program if not for the credit under this Section.

(b) 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, the credit under this Section shall 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.

(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. 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 tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(d) For the purposes of this Section:

"Apprenticeship participation average" means the average of the total number of qualified individuals employed by the employer through a qualified apprenticeship program for: (1) the 3 preceding taxable years; or (2) the number of taxable years in which the qualified apprenticeship program was in existence, whichever is less.

"Qualified apprenticeship program" means an apprenticeship program in manufacturing or plastics that is certified by the Department of Commerce and Economic Opportunity under this Section and is at least 3 years in duration or a joint labor-management apprenticeship program in construction that is approved by and registered with the United States Department of Labor's Employment and Training Administration and is at least 3 years in duration.

(e) This Section is exempt from the provisions of Section 250.

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