101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3613

 

Introduced , by Rep. Katie Stuart

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new

    Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the salary or stipend paid to a qualified intern during the taxable year. Provides that, if the qualified intern is hired by the taxpayer on a full-time basis upon graduation, the employer is entitled to the credit for each of the first 2 years of the intern's full-time employment with the taxpayer. Effective immediately.


LRB101 10386 HLH 55492 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3613LRB101 10386 HLH 55492 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 229 as follows:
 
6    (35 ILCS 5/229 new)
7    Sec. 229. Credit for hiring a qualified intern.
8    (a) For taxable years beginning on or after January 1,
92019, each employer that hires a qualified intern during the
10taxable year is entitled to a credit against the tax imposed by
11subsections (a) and (b) of Section 201 in an amount equal to
1210% of the salary or stipend paid to the intern during the
13taxable year. If the qualified intern is hired by the taxpayer
14on a full-time basis upon graduation, the employer is entitled
15to a credit under this Section for each of the first 2 years of
16the intern's full-time employment with the taxpayer.
17    (b) If the taxpayer is a partnership, limited liability
18partnership, limited liability company, or Subchapter S
19corporation, the tax credit award is allowed to the partners,
20unit holders, or shareholders in accordance with the
21determination of income and distributive share of income under
22Sections 702 and 704 and Subchapter S of the Internal Revenue
23Code.

 

 

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1    (c) In no event shall a credit under this Section reduce a
2taxpayer's liability to less than zero. If the amount of credit
3exceeds the tax liability for the year, the excess may be
4carried forward and applied to the tax liability for the 5
5taxable years following the excess credit year. The tax credit
6shall be applied to the earliest year for which there is a tax
7liability. If there are credits for more than one year that are
8available to offset liability, the earlier credit shall be
9applied first.
10    (d) As used in this Section, "qualified intern" means a
11resident of Illinois who is a full-time student at an Illinois
12institution of higher education and whose employment with the
13taxpayer during the internship is designed to provide the
14student with professional or practical experience.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.