95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0597


 
Introduced 2/5/2007, by Rep. Patricia R. Bellock
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/218 new










    Amends the Illinois Income Tax Act. For taxable years ending on or after December 31, 2008, allows small businesses that provide health care insurance for their employees to claim a tax credit in an amount equal to $100 for each employee covered, $50 for each spouse covered, and $40 for each dependent (up to 2 dependents) covered. Provides that the taxpayer may not carry the credit forward or back and that the credit may not reduce a taxpayer's liability to less than zero. Exempts the credit from the Act's sunset provisions. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB0597

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    AN ACT concerning revenue.

 
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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 adding 
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Section 218 as follows:
 
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    (35 ILCS 5/218 new)

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    Sec. 218. Health care tax credit.
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    (a) For tax years ending on or after December 31, 2008, 
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each taxpayer that is a small
business that provides health 
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care insurance for its employees  is entitled to a credit 
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against the tax imposed by subsections (a)
and (b) of Section 
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201 in an amount equal to:
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        (1) $100 for each employee who is covered by the 
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    taxpayer;
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        (2) $50 for each employee's spouse who is covered by 
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    the taxpayer; and
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        (3) $40 for each dependent, other than the employee's 
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    spouse, who is covered by the taxpayer, not to exceed 2 
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    dependents of an employee in addition to the employee's 
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    spouse.

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    (b) For the purposes of this Section, "small business" 
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means any
business entity with 50 or
fewer employees.

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    (c) If the taxpayer is a partnership or Subchapter S

 


 






HB0597
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corporation,  the  credit  is  allowed  to  the  partners  or

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shareholders in accordance with the determination  of  income
and  
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distributive  share of income under Sections 702 and 704
and  
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Subchapter  S  of  the  Internal   Revenue   Code.

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    (d) The credit may not be carried forward  or  back.   In  no

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event shall a credit under this Section reduce the taxpayer's

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liability to less than zero.
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    (e) The Section is exempt from the provisions of Section 
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250.
 

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