HB0399 100TH GENERAL ASSEMBLY

LRB100 03787 HLH 13792 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0399

Introduced , by Rep. David B. Reis

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Authorizes a credit to taxpayers for 10% of stipends or salaries paid to qualified college interns. Limits the credit to stipends and salaries paid to 5 interns each year, and limits total credits to $3,000 for all years combined. Defines a "qualified college intern". Provides that the credit may not reduce the taxpayer's liability to less than zero and may not be carried forward or back. Exempt from the Act's sunset provisions. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Credit for internship employment.

(a) For each taxable year ending on or after December 31, 2017, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 10% of the stipend or salary paid by the taxpayer to up to 5 qualified college interns during the taxable year, but not to exceed $3,000 in total credits under this Section for all taxable years combined. For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(b) For purposes of this Section, "qualified college intern" means an enrolled student in an institution of higher education or vocational technical education program (i) who is seeking a degree or certification of completion in a major field of study closely related to the work experience performed for the taxpayer, (ii) whose internship is taken for academic credit or counts toward the completion of a vocational technical education program, (iii) who is supervised and evaluated by the taxpayer, and (iv) whose position is located in Illinois.

(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may not be carried forward or carried back.

(d) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.