96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0003


 
Introduced 1/14/2009, by Rep. Mike Bost
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/217










    Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also applies to wages paid to employees who are currently a member of the Illinois National Guard or a member of any reserve component of the Armed Forces of the United States. Effective immediately.
















LRB096 02963 HLH 12977 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB0003

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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 
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changing Section 217 as follows:
 
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    (35 ILCS 5/217)

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    Sec. 217. Credit for wages paid to qualified veterans.
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    (a) For each taxable year beginning on or after January 1, 
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2007, each taxpayer is entitled to a credit against the tax 
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imposed by subsections (a) and (b) of Section 201 of this Act 
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in an amount equal to 5%, but in no event to exceed $600, of the 
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gross wages paid by the taxpayer to a qualified veteran in the 
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course of that veteran's sustained employment during the 
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taxable year. For partners, shareholders of Subchapter S 
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corporations, and owners of limited liability companies, if the 
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liability company is treated as a partnership for purposes of 
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federal and State income taxation, there shall be allowed a 
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credit under this Section to be determined in accordance with 
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the determination of income and distributive share of income 
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under Sections 702 and 704 and Subchapter S of the Internal 
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Revenue Code.
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    (b) For purposes of this Section:
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    "Qualified veteran" means an Illinois resident who was 
 


 






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initially hired by the taxpayer on or after January 1, 2007 
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and:
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        (1) who is currently a member of the Illinois National 
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    Guard or a member of any reserve component of the Armed 
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    Forces of the United States; or
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        (2) who: (i) was a member of the Armed Forces of the 
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    United States, a member of the Illinois National Guard, or 
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    a member of any reserve component of the Armed Forces of 
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    the United States; (ii) served on active duty in connection 
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    with Operation Desert Storm, Operation Enduring Freedom, 
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    or Operation Iraqi Freedom; and (iii) has provided, to the 
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    taxpayer, documentation showing that he or she was 
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    honorably discharged; and (iv) was initially hired by the 
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    taxpayer on or after January 1, 2007.
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    "Sustained employment" means a period of employment that is 
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not less than 185 days during the taxable year.
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    (c) In no event shall a credit under this Section reduce 
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the taxpayer's liability to less than zero. If the amount of 
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the credit exceeds the tax liability for the year, the excess 
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may be carried forward and applied to the tax liability of the 
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5 taxable years following the excess credit year. The tax 
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credit shall be applied to the earliest year for which there is 
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a tax liability. If there are credits for more than one year 
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that are available to offset a liability, the earlier credit 
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shall be applied first.

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(Source: P.A. 94-1067, eff. 8-1-06.)
 

 


 






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