HB3498 95TH GENERAL ASSEMBLY

LRB095 08756 BDD 31822 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB3498

Introduced 2/28/2007, by Rep. Jack McGuire

SYNOPSIS AS INTRODUCED:

35 ILCS 5/218 new
35 ILCS 5/219 new

Amends the Illinois Income Tax Act. Creates a tax credit for taxpayers who, during the taxable year, employ the service of a community agency to perform services for the taxpayer's business. Provides that the amount of the credit is the lesser of (i) 5% of the amount paid to that community agency or (ii) $50,000. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Creates a tax credit for employers who, for at least 27 weeks during the taxable year, employ an individual with a disability who, during the taxable year, received services from a community agency. Provides that the amount of the credit is 50% of the amount withheld by the taxpayer under the Act with respect to that employee during the taxable year. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Defines "community agency" with respect to each of these credits. 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 Sections 218 and 219 as follows:

(35 ILCS 5/218 new)

Sec. 218. Credit for expenses paid to a community agency.

(a) For taxable years ending on or after December 31, 2007 and on or before December 30, 2012, each taxpayer who, during the taxable year, employs the service of a community agency to perform services for the taxpayer's business is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 in an amount equal to the lesser of (i) 5% of the amount paid to that community agency or (ii) $50,000.

(b) For the purposes of this Section:

"Community agency" means any public or private entity of which the primary purpose is to provide employment opportunities for individuals who have a disability, including supported employment.

"Supported employment" means competitive work in integrated work settings for those individuals with disabilities for whom competitive employment has not traditionally occurred or for whom competitive employment has been interrupted or intermittent as a result of a disability for which the individual needs on-going support services to perform such work. "Supported employment" includes transitional employment for individuals with chronic mental illness.

(c) 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, there is allowed a credit under this Section to 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.

(d) The credit under this Section may not be carried forward or back and may not reduce the taxpayer's liability to less than zero.

(e) The Department must adopt any rule necessary for this Section.

(35 ILCS 5/219 new)

Sec. 219. Credit for wages paid to individuals with a disability who receive services from a community agency.

(a) For taxable years ending on or after December 31, 2007 and ending on or before December 30, 2012, each taxpayer who, for at least 27 weeks during the taxable year, employs an individual with a disability who, during the taxable year, received services from a community agency is entitled to a credit against the tax imposed under subsection (a) and (b) of Section 201 in an amount equal to 50% of the amount withheld by the taxpayer under Article 7 of this Act with respect to that employee during the taxable year.

(b) For the purposes of this Section, "community agency" means a public or private entity that facilitates employment opportunities for individuals who have a disability by providing vocational assessments, vocational-rehabilitation services, job development, placement, and retention services, psycho-social rehabilitation, and other related employment services.

"Vocational-rehabilitation services" include education, training, counseling, therapy, placement services, and case management services.

(c) 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, there shall be allowed a credit under this Section to 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.

(d) The credit under this Section may not be carried forward or back and may not reduce the taxpayer's liability to less than zero.

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