| |||||||
| |||||||
| |||||||
1 | AN ACT concerning revenue.
| ||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Small Business Job Creation Tax Credit Act | ||||||
5 | is amended by changing Sections 10, 25, and 35 as follows: | ||||||
6 | (35 ILCS 25/10)
| ||||||
7 | Sec. 10. Definitions. In this Act: | ||||||
8 | "Applicant" means a person that is operating a business | ||||||
9 | located within the State of Illinois that is engaged in | ||||||
10 | interstate or intrastate commerce and either: | ||||||
11 | (1) has no more than 50 full-time employees, without | ||||||
12 | regard to the location of employment of such employees at | ||||||
13 | the beginning of the incentive period ; or . | ||||||
14 | (2) hired within the incentive period an employee who | ||||||
15 | had participated as worker-trainee in the Put Illinois to | ||||||
16 | Work Program during 2010. | ||||||
17 | In the case of any person that is a member of a unitary | ||||||
18 | business group within the meaning of subdivision (a)(27) of | ||||||
19 | Section 1501 of the Illinois Income Tax Act, "applicant" refers | ||||||
20 | to the unitary business group. | ||||||
21 | "Certificate" means the tax credit certificate issued by | ||||||
22 | the Department under Section 35 of this Act. | ||||||
23 | "Certificate of eligibility" means the certificate issued |
| |||||||
| |||||||
1 | by the Department under Section 20 of this Act. | ||||||
2 | "Credit" means the amount awarded by the Department to an | ||||||
3 | applicant by issuance of a certificate under Section 35 of this | ||||||
4 | Act for each new full-time equivalent employee hired or job | ||||||
5 | created. | ||||||
6 | "Department" means the Department of Commerce and Economic | ||||||
7 | Opportunity. | ||||||
8 | "Director" means the Director of the Department. | ||||||
9 | "Full-time employee" means an individual who is employed | ||||||
10 | for a basic wage for at least 35 hours each week or who renders | ||||||
11 | any other standard of service generally accepted by industry | ||||||
12 | custom or practice as full-time employment. | ||||||
13 | "Incentive period" means the period beginning July 1, 2010 | ||||||
14 | and ending on June 30, 2011. | ||||||
15 | "Basic wage" means compensation for employment that is no | ||||||
16 | less than $10 $13.75 per hour or the equivalent salary for a | ||||||
17 | new employee. | ||||||
18 | "New employee" means a full-time employee : | ||||||
19 | (1) who first became employed by an applicant with less | ||||||
20 | than 50 full-time employees within the incentive period | ||||||
21 | whose hire results in a net increase in the applicant's | ||||||
22 | full-time Illinois employees and who is receiving a basic | ||||||
23 | wage as compensation ; or . | ||||||
24 | (2) who participated as a worker-trainee in the Put | ||||||
25 | Illinois to Work Program during 2010 and who is | ||||||
26 | subsequently hired during the incentive period by an |
| |||||||
| |||||||
1 | applicant and who is receiving a basic wage as | ||||||
2 | compensation. | ||||||
3 | The term "new employee" does not include: | ||||||
4 | (1) a person who was previously employed in Illinois by | ||||||
5 | the applicant or a related member prior to the onset of the | ||||||
6 | incentive period; or | ||||||
7 | (2) any individual who has a direct or indirect | ||||||
8 | ownership interest of at least 5% in the profits, capital, | ||||||
9 | or value of the applicant or a related member. | ||||||
10 | "Noncompliance date" means, in the case of an applicant | ||||||
11 | that is not complying with the requirements of the provisions | ||||||
12 | of this Act, the day following the last date upon which the | ||||||
13 | taxpayer was in compliance with the requirements of the | ||||||
14 | provisions of this Act, as determined by the Director, pursuant | ||||||
15 | to Section 45 of this Act. | ||||||
16 | "Put Illinois to Work Program" means a worker training and | ||||||
17 | employment program that was established by the State of | ||||||
18 | Illinois with funding from the United States Department of | ||||||
19 | Health and Human Services of Emergency Temporary Assistance to | ||||||
20 | Needy Families funds authorized by the American Recovery and | ||||||
21 | Reinvestment Act of 2009 (ARRA TANF Funds). These ARRA TANF | ||||||
22 | funds were in turn used by the State of Illinois to fund the | ||||||
23 | Put Illinois to Work Program. | ||||||
24 | "Related member" means a person that, with respect to the | ||||||
25 | applicant during any portion of the incentive period, is any | ||||||
26 | one of the following, |
| |||||||
| |||||||
1 | (1) An individual, if the individual and the members of | ||||||
2 | the individual's family (as defined in Section 318 of the | ||||||
3 | Internal Revenue Code) own directly, indirectly, | ||||||
4 | beneficially, or constructively, in the aggregate, at | ||||||
5 | least 50% of the value of the outstanding profits, capital, | ||||||
6 | stock, or other ownership interest in the applicant. | ||||||
7 | (2) A partnership, estate, or trust and any partner or | ||||||
8 | beneficiary, if the partnership, estate, or trust and its | ||||||
9 | partners or beneficiaries own directly, indirectly, | ||||||
10 | beneficially, or constructively, in the aggregate, at | ||||||
11 | least 50% of the profits, capital, stock, or other | ||||||
12 | ownership interest in the applicant. | ||||||
13 | (3) A corporation, and any party related to the | ||||||
14 | corporation in a manner that would require an attribution | ||||||
15 | of stock from the corporation under the attribution rules | ||||||
16 | of Section 318 of the Internal Revenue Code, if the | ||||||
17 | applicant and any other related member own, in the | ||||||
18 | aggregate, directly, indirectly, beneficially, or | ||||||
19 | constructively, at least 50% of the value of the | ||||||
20 | corporation's outstanding stock. | ||||||
21 | (4) A corporation and any party related to that | ||||||
22 | corporation in a manner that would require an attribution | ||||||
23 | of stock from the corporation to the party or from the | ||||||
24 | party to the corporation under the attribution rules of | ||||||
25 | Section 318 of the Internal Revenue Code, if the | ||||||
26 | corporation and all such related parties own, in the |
| |||||||
| |||||||
1 | aggregate, at least 50% of the profits, capital, stock, or | ||||||
2 | other ownership interest in the applicant. | ||||||
3 | (5) A person to or from whom there is attribution of | ||||||
4 | stock ownership in accordance with Section 1563(e) of the | ||||||
5 | Internal Revenue Code, except that for purposes of | ||||||
6 | determining whether a person is a related member under this | ||||||
7 | paragraph, "20%" shall be substituted for "5%" whenever | ||||||
8 | "5%" appears in Section 1563(e) of the Internal Revenue | ||||||
9 | Code.
| ||||||
10 | (Source: P.A. 96-888, eff. 4-13-10.) | ||||||
11 | (35 ILCS 25/25)
| ||||||
12 | Sec. 25. Tax credit. | ||||||
13 | (a) Subject to the conditions set forth in this Act, an | ||||||
14 | applicant is entitled to a credit against payment of taxes | ||||||
15 | withheld under Section 704A of the Illinois Income Tax Act : | ||||||
16 | (1) for new employees who participated as | ||||||
17 | worker-trainees in the Put Illinois to Work Program during | ||||||
18 | 2010: | ||||||
19 | (A) in the first calendar year ending on or after | ||||||
20 | the date that is 6 months after December 31, 2010, or | ||||||
21 | the date of hire, whichever is later. Under this | ||||||
22 | subparagraph, the applicant is entitled to one-half of | ||||||
23 | the credit allowable for each new employee who is | ||||||
24 | employed for at least 6 months after the date of hire; | ||||||
25 | and |
| |||||||
| |||||||
1 | (B) in the first calendar year ending on or after | ||||||
2 | the date that is 12 months after December 31, 2010, or | ||||||
3 | the date of hire, whichever is later. Under this | ||||||
4 | subparagraph, the applicant is entitled to one-half of | ||||||
5 | the credit allowable for each new employee who is | ||||||
6 | employed for at least 12 months after the date of hire; | ||||||
7 | (2) for all other new employees, in the first calendar | ||||||
8 | year years ending on or after the date that is 12 months | ||||||
9 | after the date of hire of a new employee. The credit shall | ||||||
10 | be allowed as a credit to an applicant for each full-time | ||||||
11 | employee hired during the incentive period that results in | ||||||
12 | a net increase in full-time Illinois employees, where the | ||||||
13 | net increase in the employer's full-time Illinois | ||||||
14 | employees is maintained for at least 12 months. | ||||||
15 | (b) The Department shall make credit awards under this Act | ||||||
16 | to further job creation. | ||||||
17 | (c) The credit shall be claimed for the first calendar year | ||||||
18 | ending on or after the date on which the certificate is issued | ||||||
19 | by the Department. | ||||||
20 | (d) The credit shall not exceed $2,500 per new employee | ||||||
21 | hired. | ||||||
22 | (e) The net increase in full-time Illinois employees, | ||||||
23 | measured on an annual full-time equivalent basis, shall be the | ||||||
24 | total number of full-time Illinois employees of the applicant | ||||||
25 | on June 30, 2011, minus the number of full-time Illinois | ||||||
26 | employees employed by the employer on July 1, 2010. For |
| |||||||
| |||||||
1 | purposes of the calculation, an employer that begins doing | ||||||
2 | business in this State during the incentive period, as | ||||||
3 | determined by the Director, shall be treated as having zero | ||||||
4 | Illinois employees on July 1, 2010. | ||||||
5 | (f) The net increase in the number of full-time Illinois | ||||||
6 | employees of the applicant under subsection (e) must be | ||||||
7 | sustained continuously for at least 12 months, starting with | ||||||
8 | the date of hire of a new employee during the incentive period. | ||||||
9 | Eligibility for the credit does not depend on the continuous | ||||||
10 | employment of any particular individual. For purposes of this | ||||||
11 | subsection (f), if a new employee ceases to be employed before | ||||||
12 | the completion of the 12-month period for any reason, the net | ||||||
13 | increase in the number of full-time Illinois employees shall be | ||||||
14 | treated as continuous if a different new employee is hired as a | ||||||
15 | replacement within a reasonable time for the same position.
| ||||||
16 | (Source: P.A. 96-888, eff. 4-13-10.) | ||||||
17 | (35 ILCS 25/35)
| ||||||
18 | Sec. 35. Application for award of tax credit; tax credit | ||||||
19 | certificate. | ||||||
20 | (a) On or after the conclusion of the 12-month period (or | ||||||
21 | 6-month period, for purposes of subparagraph (A) of item (1) of | ||||||
22 | subsection (a) of Section 25) after a new employee has been | ||||||
23 | hired, an applicant shall file with the Department an | ||||||
24 | application for award of a credit. The application shall | ||||||
25 | include the following: |
| |||||||
| |||||||
1 | (1) The names, Social Security numbers, job | ||||||
2 | descriptions, salary or wage rates, and dates of hire of | ||||||
3 | the new employees with respect to whom the credit is being | ||||||
4 | requested , and an indication of whether each new employee | ||||||
5 | listed participated as a worker-trainee in the Put Illinois | ||||||
6 | to Work Program . | ||||||
7 | (2) A certification that each new employee listed has | ||||||
8 | been retained on the job for one year (or 6 months, for | ||||||
9 | purposes of subparagraph (A) of item (1) of subsection (a) | ||||||
10 | of Section 25) from the date of hire. | ||||||
11 | (3) The number of new employees hired by the applicant | ||||||
12 | during the incentive period. | ||||||
13 | (4) The net increase in the number of full-time | ||||||
14 | Illinois employees of the applicant (including the new | ||||||
15 | employees listed in the request) between the beginning of | ||||||
16 | the incentive period and the dates on which the new | ||||||
17 | employees listed in the request were hired. This | ||||||
18 | requirement does not apply for tax credits the applicant is | ||||||
19 | seeking because the new employee had participated as a | ||||||
20 | worker-trainee in the Put Illinois to Work Program. | ||||||
21 | (5) An agreement that the Director is authorized to | ||||||
22 | verify with the appropriate State agencies the information | ||||||
23 | contained in the request before issuing a certificate to | ||||||
24 | the applicant. | ||||||
25 | (6) Any other information the Department determines to | ||||||
26 | be appropriate. |
| |||||||
| |||||||
1 | (b) Although an application may be filed at any time after | ||||||
2 | the conclusion of the 12-month period (or 6-month period, for | ||||||
3 | purposes of subparagraph (A) of item (1) of subsection (a) of | ||||||
4 | Section 25) after a new employee was hired, an application | ||||||
5 | filed more than 90 days after the earliest date on which it | ||||||
6 | could have been filed shall not be awarded any credit if, prior | ||||||
7 | to the date it is filed, the Department has received | ||||||
8 | applications under this Section for credits totaling more than | ||||||
9 | $50,000,000. | ||||||
10 | (c) The Department shall issue a certificate to each | ||||||
11 | applicant awarded a credit under this Act. The certificate | ||||||
12 | shall include the following: | ||||||
13 | (1) The name and taxpayer identification number of the | ||||||
14 | applicant. | ||||||
15 | (2) The date on which the certificate is issued. | ||||||
16 | (3) The credit amount that will be allowed. | ||||||
17 | (4) Any other information the Department determines to | ||||||
18 | be appropriate.
| ||||||
19 | (Source: P.A. 96-888, eff. 4-13-10.)
| ||||||
20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.
|