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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) For each taxable year beginning on or after January 1, | ||||||
| 9 | 2007 and ending on or before December 30, 2010, each taxpayer | ||||||
| 10 | is entitled to a credit against the tax imposed by subsections | ||||||
| 11 | (a) and (b) of Section 201 of this Act in an amount equal to 5%, | ||||||
| 12 | but in no event to exceed $600, of the gross wages paid by the | ||||||
| 13 | taxpayer to a qualified veteran in the course of that veteran's | ||||||
| 14 | sustained employment during the taxable year. For each taxable | ||||||
| 15 | year beginning on or after January 1, 2010, each taxpayer is | ||||||
| 16 | entitled to a credit against the tax imposed by subsections (a) | ||||||
| 17 | and (b) of Section 201 of this Act in an amount equal to 10%, | ||||||
| 18 | but in no event to exceed $1,200, of the gross wages paid by | ||||||
| 19 | the taxpayer to a qualified veteran in the course of that | ||||||
| 20 | veteran's sustained employment during the taxable year. For | ||||||
| 21 | partners, shareholders of Subchapter S corporations, and | ||||||
| 22 | owners of limited liability companies, if the liability company | ||||||
| 23 | is treated as a partnership for purposes of federal and State | ||||||
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| 1 | income taxation, there shall be allowed a credit under this | ||||||
| 2 | Section to be determined in accordance with the determination | ||||||
| 3 | of income and distributive share of income under Sections 702 | ||||||
| 4 | and 704 and Subchapter S of the Internal Revenue Code. | ||||||
| 5 | (b) For purposes of this Section: | ||||||
| 6 | "Qualified veteran" means an Illinois resident who: (i) was | ||||||
| 7 | a member of the Armed Forces of the United States, a member of | ||||||
| 8 | the Illinois National Guard, or a member of any reserve | ||||||
| 9 | component of the Armed Forces of the United States; (ii) served | ||||||
| 10 | on active duty in connection with Operation Desert Storm, | ||||||
| 11 | Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) | ||||||
| 12 | has provided, to the taxpayer, documentation showing that he or | ||||||
| 13 | she was honorably discharged; and (iv) was initially hired by | ||||||
| 14 | the taxpayer on or after January 1, 2007. | ||||||
| 15 | "Sustained employment" means a period of employment that is | ||||||
| 16 | not less than 185 days during the taxable year. | ||||||
| 17 | (c) In no event shall a credit under this Section reduce | ||||||
| 18 | the taxpayer's liability to less than zero. If the amount of | ||||||
| 19 | the credit exceeds the tax liability for the year, the excess | ||||||
| 20 | may be carried forward and applied to the tax liability of the | ||||||
| 21 | 5 taxable years following the excess credit year. The tax | ||||||
| 22 | credit shall be applied to the earliest year for which there is | ||||||
| 23 | a tax liability. If there are credits for more than one year | ||||||
| 24 | that are available to offset a liability, the earlier credit | ||||||
| 25 | shall be applied first.
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| 26 | (Source: P.A. 94-1067, eff. 8-1-06.)
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