101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1906

 

Introduced 2/15/2019, by Sen. Cristina Castro

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 20% of the gross wages paid by the taxpayer to a qualified youth in care in the course of that youth's sustained employment during the taxable year. Provides that the credit may not exceed $5,000. Provides that the credit is exempt from the Act's automatic sunset provisions. Defines "qualified youth in care". Effective immediately.


LRB101 09334 HLH 54430 b

 

 

A BILL FOR

 

SB1906LRB101 09334 HLH 54430 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 wages paid to youth in care.
8    (a) For each taxable year ending on or after December 31,
92019 each taxpayer is entitled to a credit against the tax
10imposed by subsections (a) and (b) of Section 201 in an amount
11equal to 20%, but in no event to exceed $5,000, of the gross
12wages paid by the taxpayer to a qualified youth in care in the
13course of that youth's sustained employment during the taxable
14year. For partners, shareholders of Subchapter S corporations,
15and owners of limited liability companies, if the liability
16company is treated as a partnership for the purposes of federal
17and State income taxation, there shall be allowed a credit
18under this Section to be determined in accordance with the
19determination of income and distributive share of income under
20Sections 702 and 704 and Subchapter S of the Internal Revenue
21Code.
22    (b) In no event shall a credit under this Section reduce a
23taxpayer's liability to less than zero. If the amount of credit

 

 

SB1906- 2 -LRB101 09334 HLH 54430 b

1exceeds the tax liability for the year, the excess may be
2carried forward and applied to the tax liability for the 5
3taxable years following the excess credit year. The tax credit
4shall be applied to the earliest year for which there is a tax
5liability. If there are credits for more than one year that are
6available to offset liability, the earlier credit shall be
7applied first.
8    (c) Taxpayers seeking a credit under this Section may
9request information about whether an applicant or employee is a
10qualified youth in care, but whether or not to disclose that
11status is entirely voluntary on the part of the applicant or
12employee. Any request made by the taxpayer for the applicant or
13employee's status as a qualified youth in care must clearly
14state that providing the information is voluntary and there can
15be no negative consequence for refusal to disclose youth in
16care status.
17    (d) For the purposes of this Section:
18        "Qualified youth in care" means an Illinois resident
19    who: (1) meets the definition of "youth in care" under
20    Section 4d of the Children and Family Services Act; or (2)
21    at any time previously, met the definition of "youth in
22    care" under Section 4d of the Children and Family Services
23    Act and has not yet attained the age of 27.
24        "Sustained employment" means (i) a period of
25    employment that is not less than 185 days following the
26    date of hire or (ii) in the case of a qualified youth in

 

 

SB1906- 3 -LRB101 09334 HLH 54430 b

1    care who was unemployed for an aggregate period of 6 months
2    or more during the one-year period ending on the date the
3    qualified youth in care was hired by the taxpayer, a period
4    of employment that is more than 30 days following the date
5    of hire. The period of sustained employment may be
6    completed after the end of the taxable year in which the
7    qualified youth in care is hired.
8    (e) This Section is exempt from the provisions of Section
9250.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.