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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||
5 | changing Section 217 as follows: | ||||||||||||||||||||||||
6 | (35 ILCS 5/217)
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7 | Sec. 217. Credit for wages paid to qualified veterans. | ||||||||||||||||||||||||
8 | (a) Each For each taxable year beginning on or after | ||||||||||||||||||||||||
9 | January 1, 2007, each taxpayer who, during the taxable year, | ||||||||||||||||||||||||
10 | paid wages to a qualified veteran is entitled to a credit | ||||||||||||||||||||||||
11 | against the tax imposed by subsections (a) and (b) of Section | ||||||||||||||||||||||||
12 | 201 of this Act in the amount set forth under subsection (a-5). | ||||||||||||||||||||||||
13 | an amount equal to 5%, but in no event to exceed $600, of the | ||||||||||||||||||||||||
14 | gross wages paid by the taxpayer to a qualified veteran in the | ||||||||||||||||||||||||
15 | course of that veteran's sustained employment during the | ||||||||||||||||||||||||
16 | taxable year. For partners, shareholders of Subchapter S | ||||||||||||||||||||||||
17 | corporations, and owners of limited liability companies, if the | ||||||||||||||||||||||||
18 | liability company is treated as a partnership for purposes of | ||||||||||||||||||||||||
19 | federal and State income taxation, there shall be allowed a | ||||||||||||||||||||||||
20 | credit under this Section to be determined in accordance with | ||||||||||||||||||||||||
21 | the determination of income and distributive share of income | ||||||||||||||||||||||||
22 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||||||||||||||||||||
23 | Revenue Code. |
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1 | (a-5) For taxable years ending on or after December 31, | ||||||
2 | 2007 and ending on or before December 30, 2009, the amount of | ||||||
3 | the credit under this Section is an amount equal to 5% (but in | ||||||
4 | no event to exceed $600) of the gross wages paid by the | ||||||
5 | taxpayer to a Southwest-Asia-service veteran in the course of | ||||||
6 | that veteran's sustained employment during the taxable year. | ||||||
7 | For taxable years ending on or after December 31, 2009 and | ||||||
8 | ending on or before December 30, 2014, the amount of the credit | ||||||
9 | under this Section is: | ||||||
10 | (1) with respect to wages paid to a | ||||||
11 | Southwest-Asia-service veteran, an amount equal to 10% | ||||||
12 | (but in no event to exceed $1,200) of the gross wages paid | ||||||
13 | by the taxpayer in the course of that veteran's sustained | ||||||
14 | employment during the taxable year; and | ||||||
15 | (2) with respect to wages paid to any other qualified | ||||||
16 | veteran who was initially hired by the taxpayer on or after | ||||||
17 | January 1, 2009, an amount equal to 7.5% (but in no event | ||||||
18 | to exceed $800) of the gross wages paid by the taxpayer in | ||||||
19 | the course of that veteran's sustained employment during | ||||||
20 | the taxable year. | ||||||
21 | (b) For purposes of this Section: | ||||||
22 | "Qualified veteran" means an Illinois resident who : (i) was | ||||||
23 | a member of the Armed Forces of the United States, a member of | ||||||
24 | the Illinois National Guard, or a member of any reserve | ||||||
25 | component of the Armed Forces of the United States and who ; | ||||||
26 | (ii) served on active duty in connection with Operation Desert |
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1 | Storm, Operation Enduring Freedom, or Operation Iraqi Freedom; | ||||||
2 | (iii) has provided, to the taxpayer, documentation showing that | ||||||
3 | he or she was honorably discharged ; and (iv) was initially | ||||||
4 | hired by the taxpayer on or after January 1, 2007 . | ||||||
5 | "Southwest-Asia-service veteran" means a qualified veteran | ||||||
6 | who served on active duty in connection with Operation Desert | ||||||
7 | Storm, Operation Enduring Freedom, or Operation Iraqi Freedom | ||||||
8 | and who was initially hired by the taxpayer on or after January | ||||||
9 | 1, 2007. | ||||||
10 | "Sustained employment" means a period of employment that is | ||||||
11 | not less than 185 days during the taxable year. | ||||||
12 | (c) In no event shall a credit under this Section reduce | ||||||
13 | the taxpayer's liability to less than zero. If the amount of | ||||||
14 | the credit exceeds the tax liability for the year, the excess | ||||||
15 | may be carried forward and applied to the tax liability of the | ||||||
16 | 5 taxable years following the excess credit year. The tax | ||||||
17 | credit shall be applied to the earliest year for which there is | ||||||
18 | a tax liability. If there are credits for more than one year | ||||||
19 | that are available to offset a liability, the earlier credit | ||||||
20 | shall be applied first.
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21 | (Source: P.A. 94-1067, eff. 8-1-06.)
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