SB0216 101ST GENERAL ASSEMBLY

LRB101 07017 HLH 52051 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0216

Introduced 1/31/2019, by Sen. Jennifer Bertino-Tarrant

SYNOPSIS AS INTRODUCED:

35 ILCS 5/229 new

Amends the Illinois Income Tax Act. Creates an income tax credit for qualified education expenses incurred by employers on behalf of qualifying apprentices. 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. Apprenticeship education expense credit.

(a) For tax years ending on or after December 31, 2019, a taxpayer who is the employer of one or more qualifying apprentices shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 for qualified education expenses incurred on behalf of a qualifying apprentice. The credit shall be equal to 100% of 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. In no event shall a credit under this Section reduce the taxpayer's liability under this Act to less than zero.

If the taxpayer is a partnership or Subchapter S corporation, the credit shall be allowed to the partners 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.

(b) This Section is exempt from the provisions of Section 250 of this Act.

(c) The taxpayer shall provide the Department such information as the Department may require, including but not limited to: (i) the name, age, and taxpayer identification number of each qualifying apprentice employed by the taxpayer during the taxable year; (ii) the amount of qualified education expenses incurred with respect to each qualifying apprentice; and (iii) the name of the school at which the qualifying apprentice is enrolled and the qualified education expenses are incurred.

(d) For purposes of this Section:

"Employer" means an Illinois taxpayer who is the employer of the qualifying apprentice.

"Qualifying apprentices" means individuals who (i) are residents of the State of Illinois, (ii) are between the ages of 16 and 30 years old at the close of the school year for which a credit is sought, (iii) during the school year for which a credit is sought were full-time apprentices enrolled in an apprenticeship program which is registered with the United States Department of Labor, Office of Apprenticeship, and (iv) are employed in Illinois by the taxpayer who is the employer.

"Qualified education expense" means the amount incurred on behalf of a qualifying apprentice not to exceed $3,500 for tuition, book fees, and lab fees at the school or community college in which the apprentice is enrolled during the regular school year.

"School" means any public or nonpublic secondary school in Illinois that is: (i) an institution of higher education that provides a program that leads to an industry-recognized postsecondary credential or degree; (ii) an entity that carries out programs registered under the federal National Apprenticeship Act; or (iii) another public or private provider of a program of training services, which may include a joint labor-management organization.

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