HB3613 101ST GENERAL ASSEMBLY

LRB101 10386 HLH 55492 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3613

Introduced , by Rep. Katie Stuart

SYNOPSIS AS INTRODUCED:

35 ILCS 5/229 new

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the salary or stipend paid to a qualified intern during the taxable year. Provides that, if the qualified intern is hired by the taxpayer on a full-time basis upon graduation, the employer is entitled to the credit for each of the first 2 years of the intern's full-time employment with the taxpayer. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 adding Section 229 as follows:

(35 ILCS 5/229 new)

Sec. 229. Credit for hiring a qualified intern.

(a) For taxable years beginning on or after January 1, 2019, each employer that hires a qualified intern during the taxable year is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 10% of the salary or stipend paid to the intern during the taxable year. If the qualified intern is hired by the taxpayer on a full-time basis upon graduation, the employer is entitled to a credit under this Section for each of the first 2 years of the intern's full-time employment with the taxpayer.

(b) If the taxpayer is a partnership, limited liability partnership, limited liability company, or Subchapter S corporation, the tax credit award is allowed to the partners, unit holders, or shareholders 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 a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for 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 liability, the earlier credit shall be applied first.

(d) As used in this Section, "qualified intern" means a resident of Illinois who is a full-time student at an Illinois institution of higher education and whose employment with the taxpayer during the internship is designed to provide the student with professional or practical experience.

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