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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 Sections 217 and 217.1 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 , and beginning prior | ||||||||||||||||||||||||||
16 | to January 1, 2015 , each taxpayer is entitled to a credit | ||||||||||||||||||||||||||
17 | against the tax imposed by subsections (a) and (b) of Section | ||||||||||||||||||||||||||
18 | 201 of this Act in an amount equal to 10%, but in no event to | ||||||||||||||||||||||||||
19 | exceed $1,200, of the gross wages paid by the taxpayer to a | ||||||||||||||||||||||||||
20 | qualified veteran in the course of that veteran's sustained | ||||||||||||||||||||||||||
21 | employment during the taxable year. For each taxable year | ||||||||||||||||||||||||||
22 | beginning on or after January 1, 2015, each taxpayer is | ||||||||||||||||||||||||||
23 | entitled to a credit against the tax imposed by subsections (a) |
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1 | and (b) of Section 201 of this Act in an amount equal to $1,200 | ||||||
2 | for each qualified veteran who is employed by the taxpayer on a | ||||||
3 | permanent full-time or a permanent part-time basis for at least | ||||||
4 | 30 hours per week for a period of at least 185 days during the | ||||||
5 | taxable year. For each taxable year beginning on or after | ||||||
6 | January 1, 2015, if the qualified veteran is employed by the | ||||||
7 | employer for less than 185 days, and if the qualified veteran | ||||||
8 | is employed by the taxpayer on a permanent full-time or a | ||||||
9 | permanent part-time basis for at least 30 hours per week for a | ||||||
10 | period of at least 185 days during the next taxable year, then | ||||||
11 | the amount of the credit for the taxable year in which the | ||||||
12 | qualified veteran was employed for less than 185 days shall be | ||||||
13 | prorated. The amount of the prorated credit shall equal the | ||||||
14 | maximum amount of the credit for that tax year, divided by 12, | ||||||
15 | multiplied by the number of months in the tax year during which | ||||||
16 | the qualified veteran was employed by the employer. The | ||||||
17 | prorated credit shall be rounded to the nearest dollar. If the | ||||||
18 | qualified veteran was employed by the employer during any part | ||||||
19 | of a month, then he or she shall be considered to be employed | ||||||
20 | for the entire month. | ||||||
21 | For partners, shareholders of Subchapter S corporations, | ||||||
22 | and owners of limited liability companies, if the liability | ||||||
23 | company is treated as a partnership for purposes of federal and | ||||||
24 | State income taxation, there shall be allowed a credit under | ||||||
25 | this Section to be determined in accordance with the | ||||||
26 | determination of income and distributive share of income under |
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1 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
2 | Code. | ||||||
3 | (b) For purposes of this Section: | ||||||
4 | For taxable years beginning prior to January 1, 2015, | ||||||
5 | "qualified "Qualified veteran" means an Illinois resident who: | ||||||
6 | (i) was a member of the Armed Forces of the United States, a | ||||||
7 | member of the Illinois National Guard, or a member of any | ||||||
8 | reserve component of the Armed Forces of the United States; | ||||||
9 | (ii) served on active duty in connection with Operation Desert | ||||||
10 | Storm, Operation Enduring Freedom, or Operation Iraqi Freedom; | ||||||
11 | (iii) has provided, to the taxpayer, documentation showing that | ||||||
12 | he or she was honorably discharged; and (iv) was initially | ||||||
13 | hired by the taxpayer on or after January 1, 2007. | ||||||
14 | For taxable years beginning on or after January 1, 2015, | ||||||
15 | "qualified veteran" means an Illinois resident who is a member | ||||||
16 | of the National Guard, reserve, or regular component of the | ||||||
17 | Armed Forces of the United States. | ||||||
18 | "Sustained employment" means a period of employment that is | ||||||
19 | not less than 185 days during the taxable year. | ||||||
20 | (c) In no event shall a credit under this Section reduce | ||||||
21 | the taxpayer's liability to less than zero. If the amount of | ||||||
22 | the credit exceeds the tax liability for the year, the excess | ||||||
23 | may be carried forward and applied to the tax liability of the | ||||||
24 | 5 taxable years following the excess credit year. The tax | ||||||
25 | credit shall be applied to the earliest year for which there is | ||||||
26 | a tax liability. If there are credits for more than one year |
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1 | that are available to offset a liability, the earlier credit | ||||||
2 | shall be applied first.
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3 | (d) A taxpayer who claims a credit under this Section for a | ||||||
4 | taxable year with respect to a veteran shall not be allowed a | ||||||
5 | credit under Section 217.1 of this Act with respect to the same | ||||||
6 | veteran for that taxable year. | ||||||
7 | (e) This Section is exempt from the provisions of Section | ||||||
8 | 250. | ||||||
9 | (Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.) | ||||||
10 | (35 ILCS 5/217.1) | ||||||
11 | Sec. 217.1. Credit for wages paid to qualified unemployed | ||||||
12 | veterans. | ||||||
13 | (a) For each taxable year ending on or after December 31, | ||||||
14 | 2012 and on or before December 31, 2016 , each taxpayer is | ||||||
15 | entitled to a credit against the tax imposed by subsections (a) | ||||||
16 | and (b) of Section 201 of this Act in the amount equal to | ||||||
17 | $5,000 for each qualified veteran who: (1) 20%, but in no event | ||||||
18 | to exceed $5,000, of the gross wages paid by the taxpayer to a | ||||||
19 | qualified veteran in the course of that veteran's sustained | ||||||
20 | employment during each taxable year ending on or after the date | ||||||
21 | of hire by the taxpayer if that veteran was unemployed for an | ||||||
22 | aggregate period of 4 weeks or more during the 6-week period | ||||||
23 | ending on the Saturday immediately preceding the date he or she | ||||||
24 | was hired by the taxpayer ; and (2) is employed by the taxpayer | ||||||
25 | on a permanent full-time or a permanent part-time basis for at |
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1 | least 30 hours per week for a period of at least (A) 30 days | ||||||
2 | during the taxable year in the case of a veteran who was | ||||||
3 | unemployed for an aggregate period of 6 months or more during | ||||||
4 | the one-year period ending on the date the veteran was hired by | ||||||
5 | the taxpayer and (B) 185 days during the taxable year in the | ||||||
6 | case of all other qualified unemployed veterans. For each | ||||||
7 | taxable year beginning on or after January 1, 2015, if the | ||||||
8 | qualified veteran is employed by the employer for less than 185 | ||||||
9 | days, and if the qualified veteran is employed by the taxpayer | ||||||
10 | a permanent full-time or a permanent part-time basis for at | ||||||
11 | least 30 hours per week for a period of at least 185 days | ||||||
12 | during the next taxable year, then the amount of the credit for | ||||||
13 | the taxable year in which the qualified veteran was employed | ||||||
14 | for less than 185 days shall be prorated, and the amount of the | ||||||
15 | credit shall equal the maximum amount of the credit for that | ||||||
16 | tax year, divided by 12, multiplied by the number of months in | ||||||
17 | the tax year during which the qualified veteran was employed by | ||||||
18 | the employer. The prorated credit shall be rounded to the | ||||||
19 | nearest dollar. If the qualified veteran was employed by the | ||||||
20 | employer during any part of a month, then he or she shall be | ||||||
21 | considered to be employed for the entire month . | ||||||
22 | For partners, shareholders of Subchapter S corporations, | ||||||
23 | and owners of limited liability companies, if the liability | ||||||
24 | company is treated as a partnership for the purposes of federal | ||||||
25 | and State income taxation, there shall be allowed a credit | ||||||
26 | under this Section to be determined in accordance with the |
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1 | determination of income and distributive share of income under | ||||||
2 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
3 | Code. | ||||||
4 | (b) For the purposes of this Section: | ||||||
5 | "Qualified veteran" means an Illinois resident who: (i) was | ||||||
6 | a member of the Armed Forces of the United States, a member of | ||||||
7 | the Illinois National Guard, or a member of any reserve | ||||||
8 | component of the Armed Forces of the United States; (ii) served | ||||||
9 | on active duty on or after September 11, 2001; (iii) has | ||||||
10 | provided, to the taxpayer, documentation showing that he or she | ||||||
11 | was honorably discharged; and (iv) was initially hired by the | ||||||
12 | taxpayer on or after June 1, 2012. | ||||||
13 | "Sustained employment" means (i) a period of employment | ||||||
14 | that is not less than 185 days following the date of hire or | ||||||
15 | (ii) in the case of a veteran who was unemployed for an | ||||||
16 | aggregate period of 6 months or more during the one-year period | ||||||
17 | ending on the date the veteran was hired by the taxpayer, a | ||||||
18 | period of employment that is more than 30 days following the | ||||||
19 | date of hire. The period of sustained employment may be | ||||||
20 | completed after the end of the taxable year in which the | ||||||
21 | veteran is hired. | ||||||
22 | A veteran is "unemployed" for a week if he or she (i) has | ||||||
23 | received unemployment benefits (as defined in Section 202 of | ||||||
24 | the Unemployment Insurance Act, including but not limited to | ||||||
25 | federally funded unemployment benefits) for the week, or (ii) | ||||||
26 | has not been employed since being honorably discharged. |
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1 | (c) In no event shall a credit under this Section reduce a | ||||||
2 | taxpayer's liability to less than zero. If the amount of credit | ||||||
3 | exceeds the tax liability for the year, the excess may be | ||||||
4 | carried forward and applied to the tax liability for the 5 | ||||||
5 | taxable years following the excess credit year. The tax credit | ||||||
6 | shall be applied to the earliest year for which there is a tax | ||||||
7 | liability. If there are credits for more than one year that are | ||||||
8 | available to offset liability, the earlier credit shall be | ||||||
9 | applied first. | ||||||
10 | (d) A taxpayer who claims a credit under this Section for a | ||||||
11 | taxable year with respect to a veteran shall not be allowed a | ||||||
12 | credit under Section 217 of this Act with respect to the same | ||||||
13 | veteran for that taxable year.
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14 | (e) This Section is exempt from the provisions of Section | ||||||
15 | 250. | ||||||
16 | (Source: P.A. 97-767, eff. 7-9-12.)
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17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
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