93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5535


 
Introduced 2/6/2004, by Michael J. Madigan
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/210.5










    Amends the Illinois Income Tax Act.  Makes a technical change in a Section
concerning tax credits for providing child care for employees.
















LRB093 17337 SJM 43003 b

















 


 


A BILL FOR









 











HB5535

LRB093 17337 SJM 43003 b






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    AN ACT concerning taxes. 

 
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    Be it enacted by the People of the State of Illinois, 
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represented in the General Assembly: 


 
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    Section 5. The Illinois Income Tax Act is amended by 
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changing Section 210.5 as
follows:


 
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    (35 ILCS 5/210.5)

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    Sec. 210.5. Tax credit for employee child care.


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    (a) Each corporate taxpayer is entitled
to a credit against 
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the tax imposed by subsections (a) and (b) of Section 201
of 
10
this Act
in an amount equal to (i) for taxable years ending on 
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or after December 31,
2000 and on or before December 31, 2004, 
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30% of the start-up costs expended by
the corporate taxpayer to 
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provide a child care
facility for the children of its employees 
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and
(ii) for taxable years ending on or after December 31, 
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2000, 5% of the annual
amount paid
by the corporate taxpayer in 
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providing the child care facility for the children
of its 
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employees.  The provisions of Section 250 do not apply to the 5% 
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credit
under item (ii) of this subsection.  If the 5% credit 
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authorized under item
(ii) of this subsection is claimed, the 
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5% credit authorized under Section 210
cannot also be claimed.


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    To receive the tax credit under this Section a corporate 
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taxpayer may either
independently provide and operate a child 
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care facility for the children of its
employees or it may join 
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in a partnership with one or more other corporations
to jointly 
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provide and operate a child care facility for the children of

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employees of the corporations in the partnership.


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    (b) The tax credit may not reduce the taxpayer's liability 
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to less than
zero.  If the amount of the tax credit exceeds the 
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tax liability for the year,
the excess may be carried forward 
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and applied to the tax liability of the 5
taxable years 
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following the excess credit year.  The credit must be applied to

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the earliest year for which there is a tax liability.  If there 
 


 






HB5535
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LRB093 17337 SJM 43003 b




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are credits
from more than one tax year that are available to 
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offset a liability, then the
earlier credit must be applied 
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first.


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    (c) As used in this Section, "start-up costs" means 
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planning,
site-preparation, construction, renovation, or 
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acquisition of a child care
facility.  As used in this Section, 
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"child care facility" is limited to a child
care facility 
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located in Illinois.


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    (d) A corporate taxpayer claiming the credit provided by 
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this Section
shall maintain and record such information as the 
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Department may require by
rule regarding the child care 
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facility for which the credit is claimed.


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(Source: P.A. 91-930, eff. 12-15-00.)