Sen. Jeffrey M. Schoenberg
Filed: 1/6/2011
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1 | AMENDMENT TO HOUSE BILL 4599
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2 | AMENDMENT NO. ______. Amend House Bill 4599, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Small Business Job Creation Tax Credit Act | ||||||
6 | is amended by changing Sections 10, 25, and 35 as follows: | ||||||
7 | (35 ILCS 25/10)
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8 | Sec. 10. Definitions. In this Act: | ||||||
9 | "Applicant" means a person that is operating a business | ||||||
10 | located within the State of Illinois that is engaged in | ||||||
11 | interstate or intrastate commerce and either: | ||||||
12 | (1) has no more than 50 full-time employees, without | ||||||
13 | regard to the location of employment of such employees at | ||||||
14 | the beginning of the incentive period ; or . | ||||||
15 | (2) hired within the incentive period an employee who | ||||||
16 | had participated as worker-trainee in the Put Illinois to |
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1 | Work Program during 2010. | ||||||
2 | In the case of any person that is a member of a unitary | ||||||
3 | business group within the meaning of subdivision (a)(27) of | ||||||
4 | Section 1501 of the Illinois Income Tax Act, "applicant" refers | ||||||
5 | to the unitary business group. | ||||||
6 | "Certificate" means the tax credit certificate issued by | ||||||
7 | the Department under Section 35 of this Act. | ||||||
8 | "Certificate of eligibility" means the certificate issued | ||||||
9 | by the Department under Section 20 of this Act. | ||||||
10 | "Credit" means the amount awarded by the Department to an | ||||||
11 | applicant by issuance of a certificate under Section 35 of this | ||||||
12 | Act for each new full-time equivalent employee hired or job | ||||||
13 | created. | ||||||
14 | "Department" means the Department of Commerce and Economic | ||||||
15 | Opportunity. | ||||||
16 | "Director" means the Director of the Department. | ||||||
17 | "Full-time employee" means an individual who is employed | ||||||
18 | for a basic wage for at least 35 hours each week or who renders | ||||||
19 | any other standard of service generally accepted by industry | ||||||
20 | custom or practice as full-time employment. | ||||||
21 | "Incentive period" means the period beginning July 1, 2010 | ||||||
22 | and ending on June 30, 2011. | ||||||
23 | "Basic wage" means compensation for employment that is no | ||||||
24 | less than $10 $13.75 per hour or the equivalent salary for a | ||||||
25 | new employee. | ||||||
26 | "New employee" means a full-time employee : |
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1 | (1) who first became employed by an applicant with less | ||||||
2 | than 50 full-time employees within the incentive period | ||||||
3 | whose hire results in a net increase in the applicant's | ||||||
4 | full-time Illinois employees and who is receiving a basic | ||||||
5 | wage as compensation ; or . | ||||||
6 | (2) who participated as a worker-trainee in the Put | ||||||
7 | Illinois to Work Program during 2010 and who is | ||||||
8 | subsequently hired during the incentive period by an | ||||||
9 | applicant and who is receiving a basic wage as | ||||||
10 | compensation. | ||||||
11 | The term "new employee" does not include: | ||||||
12 | (1) a person who was previously employed in Illinois by | ||||||
13 | the applicant or a related member prior to the onset of the | ||||||
14 | incentive period; or | ||||||
15 | (2) any individual who has a direct or indirect | ||||||
16 | ownership interest of at least 5% in the profits, capital, | ||||||
17 | or value of the applicant or a related member. | ||||||
18 | "Noncompliance date" means, in the case of an applicant | ||||||
19 | that is not complying with the requirements of the provisions | ||||||
20 | of this Act, the day following the last date upon which the | ||||||
21 | taxpayer was in compliance with the requirements of the | ||||||
22 | provisions of this Act, as determined by the Director, pursuant | ||||||
23 | to Section 45 of this Act. | ||||||
24 | "Put Illinois to Work Program" means a worker training and | ||||||
25 | employment program that was established by the State of | ||||||
26 | Illinois with funding from the United States Department of |
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1 | Health and Human Services of Emergency Temporary Assistance to | ||||||
2 | Needy Families funds authorized by the American Recovery and | ||||||
3 | Reinvestment Act of 2009 (ARRA TANF Funds). These ARRA TANF | ||||||
4 | funds were in turn used by the State of Illinois to fund the | ||||||
5 | Put Illinois to Work Program. | ||||||
6 | "Related member" means a person that, with respect to the | ||||||
7 | applicant during any portion of the incentive period, is any | ||||||
8 | one of the following, | ||||||
9 | (1) An individual, if the individual and the members of | ||||||
10 | the individual's family (as defined in Section 318 of the | ||||||
11 | Internal Revenue Code) own directly, indirectly, | ||||||
12 | beneficially, or constructively, in the aggregate, at | ||||||
13 | least 50% of the value of the outstanding profits, capital, | ||||||
14 | stock, or other ownership interest in the applicant. | ||||||
15 | (2) A partnership, estate, or trust and any partner or | ||||||
16 | beneficiary, if the partnership, estate, or trust and its | ||||||
17 | partners or beneficiaries own directly, indirectly, | ||||||
18 | beneficially, or constructively, in the aggregate, at | ||||||
19 | least 50% of the profits, capital, stock, or other | ||||||
20 | ownership interest in the applicant. | ||||||
21 | (3) A corporation, and any party related to the | ||||||
22 | corporation in a manner that would require an attribution | ||||||
23 | of stock from the corporation under the attribution rules | ||||||
24 | of Section 318 of the Internal Revenue Code, if the | ||||||
25 | applicant and any other related member own, in the | ||||||
26 | aggregate, directly, indirectly, beneficially, or |
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1 | constructively, at least 50% of the value of the | ||||||
2 | corporation's outstanding stock. | ||||||
3 | (4) A corporation and any party related to that | ||||||
4 | corporation in a manner that would require an attribution | ||||||
5 | of stock from the corporation to the party or from the | ||||||
6 | party to the corporation under the attribution rules of | ||||||
7 | Section 318 of the Internal Revenue Code, if the | ||||||
8 | corporation and all such related parties own, in the | ||||||
9 | aggregate, at least 50% of the profits, capital, stock, or | ||||||
10 | other ownership interest in the applicant. | ||||||
11 | (5) A person to or from whom there is attribution of | ||||||
12 | stock ownership in accordance with Section 1563(e) of the | ||||||
13 | Internal Revenue Code, except that for purposes of | ||||||
14 | determining whether a person is a related member under this | ||||||
15 | paragraph, "20%" shall be substituted for "5%" whenever | ||||||
16 | "5%" appears in Section 1563(e) of the Internal Revenue | ||||||
17 | Code.
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18 | (Source: P.A. 96-888, eff. 4-13-10.) | ||||||
19 | (35 ILCS 25/25)
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20 | Sec. 25. Tax credit. | ||||||
21 | (a) Subject to the conditions set forth in this Act, an | ||||||
22 | applicant is entitled to a credit against payment of taxes | ||||||
23 | withheld under Section 704A of the Illinois Income Tax Act : | ||||||
24 | (1) for new employees who participated as | ||||||
25 | worker-trainees in the Put Illinois to Work Program during |
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1 | 2010: | ||||||
2 | (A) in the first calendar year ending on or after | ||||||
3 | the date that is 6 months after December 31, 2010, or | ||||||
4 | the date of hire, whichever is later. Under this | ||||||
5 | subparagraph, the applicant is entitled to one-half of | ||||||
6 | the credit allowable for each new employee who is | ||||||
7 | employed for at least 6 months after the date of hire; | ||||||
8 | and | ||||||
9 | (B) in the first calendar year ending on or after | ||||||
10 | the date that is 12 months after December 31, 2010, or | ||||||
11 | the date of hire, whichever is later. Under this | ||||||
12 | subparagraph, the applicant is entitled to one-half of | ||||||
13 | the credit allowable for each new employee who is | ||||||
14 | employed for at least 12 months after the date of hire; | ||||||
15 | (2) for all other new employees, in the first calendar | ||||||
16 | year years ending on or after the date that is 12 months | ||||||
17 | after the date of hire of a new employee. The credit shall | ||||||
18 | be allowed as a credit to an applicant for each full-time | ||||||
19 | employee hired during the incentive period that results in | ||||||
20 | a net increase in full-time Illinois employees, where the | ||||||
21 | net increase in the employer's full-time Illinois | ||||||
22 | employees is maintained for at least 12 months. | ||||||
23 | (b) The Department shall make credit awards under this Act | ||||||
24 | to further job creation. | ||||||
25 | (c) The credit shall be claimed for the first calendar year | ||||||
26 | ending on or after the date on which the certificate is issued |
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1 | by the Department. | ||||||
2 | (d) The credit shall not exceed $2,500 per new employee | ||||||
3 | hired. | ||||||
4 | (e) The net increase in full-time Illinois employees, | ||||||
5 | measured on an annual full-time equivalent basis, shall be the | ||||||
6 | total number of full-time Illinois employees of the applicant | ||||||
7 | on June 30, 2011, minus the number of full-time Illinois | ||||||
8 | employees employed by the employer on July 1, 2010. For | ||||||
9 | purposes of the calculation, an employer that begins doing | ||||||
10 | business in this State during the incentive period, as | ||||||
11 | determined by the Director, shall be treated as having zero | ||||||
12 | Illinois employees on July 1, 2010. | ||||||
13 | (f) The net increase in the number of full-time Illinois | ||||||
14 | employees of the applicant under subsection (e) must be | ||||||
15 | sustained continuously for at least 12 months, starting with | ||||||
16 | the date of hire of a new employee during the incentive period. | ||||||
17 | Eligibility for the credit does not depend on the continuous | ||||||
18 | employment of any particular individual. For purposes of this | ||||||
19 | subsection (f), if a new employee ceases to be employed before | ||||||
20 | the completion of the 12-month period for any reason, the net | ||||||
21 | increase in the number of full-time Illinois employees shall be | ||||||
22 | treated as continuous if a different new employee is hired as a | ||||||
23 | replacement within a reasonable time for the same position.
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24 | (Source: P.A. 96-888, eff. 4-13-10.) | ||||||
25 | (35 ILCS 25/35)
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1 | Sec. 35. Application for award of tax credit; tax credit | ||||||
2 | certificate. | ||||||
3 | (a) On or after the conclusion of the 12-month period (or | ||||||
4 | 6-month period, for purposes of subparagraph (A) of item (1) of | ||||||
5 | subsection (a) of Section 25) after a new employee has been | ||||||
6 | hired, an applicant shall file with the Department an | ||||||
7 | application for award of a credit. The application shall | ||||||
8 | include the following: | ||||||
9 | (1) The names, Social Security numbers, job | ||||||
10 | descriptions, salary or wage rates, and dates of hire of | ||||||
11 | the new employees with respect to whom the credit is being | ||||||
12 | requested , and an indication of whether each new employee | ||||||
13 | listed participated as a worker-trainee in the Put Illinois | ||||||
14 | to Work Program . | ||||||
15 | (2) A certification that each new employee listed has | ||||||
16 | been retained on the job for one year (or 6 months, for | ||||||
17 | purposes of subparagraph (A) of item (1) of subsection (a) | ||||||
18 | of Section 25) from the date of hire. | ||||||
19 | (3) The number of new employees hired by the applicant | ||||||
20 | during the incentive period. | ||||||
21 | (4) The net increase in the number of full-time | ||||||
22 | Illinois employees of the applicant (including the new | ||||||
23 | employees listed in the request) between the beginning of | ||||||
24 | the incentive period and the dates on which the new | ||||||
25 | employees listed in the request were hired. This | ||||||
26 | requirement does not apply for tax credits the applicant is |
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1 | seeking because the new employee had participated as a | ||||||
2 | worker-trainee in the Put Illinois to Work Program. | ||||||
3 | (5) An agreement that the Director is authorized to | ||||||
4 | verify with the appropriate State agencies the information | ||||||
5 | contained in the request before issuing a certificate to | ||||||
6 | the applicant. | ||||||
7 | (6) Any other information the Department determines to | ||||||
8 | be appropriate. | ||||||
9 | (b) Although an application may be filed at any time after | ||||||
10 | the conclusion of the 12-month period (or 6-month period, for | ||||||
11 | purposes of subparagraph (A) of item (1) of subsection (a) of | ||||||
12 | Section 25) after a new employee was hired, an application | ||||||
13 | filed more than 90 days after the earliest date on which it | ||||||
14 | could have been filed shall not be awarded any credit if, prior | ||||||
15 | to the date it is filed, the Department has received | ||||||
16 | applications under this Section for credits totaling more than | ||||||
17 | $50,000,000. | ||||||
18 | (c) The Department shall issue a certificate to each | ||||||
19 | applicant awarded a credit under this Act. The certificate | ||||||
20 | shall include the following: | ||||||
21 | (1) The name and taxpayer identification number of the | ||||||
22 | applicant. | ||||||
23 | (2) The date on which the certificate is issued. | ||||||
24 | (3) The credit amount that will be allowed. | ||||||
25 | (4) Any other information the Department determines to | ||||||
26 | be appropriate.
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1 | (Source: P.A. 96-888, eff. 4-13-10.)
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.".
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