102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2498

 

Introduced 2/19/2021, by Rep. Martin J. Moylan

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 605/605-1048 new
35 ILCS 5/232 new

    Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity shall issue income tax credits, with certification, to qualified professional design firms in Illinois that hire qualified employees. Provides that the tax credit amount shall be (i) 10% of the qualified compensation paid to each qualified employee who graduated from an accredited institution of higher learning in the State and (ii) 5% of the qualified compensation paid to each qualified employee who graduated from an accredited institution of higher learning outside of the State. Provides that "qualified employee" means an employee working in the State for a qualified professional design firm as an architect, an architectural associate, a structural engineer, a structural engineer intern, a design professional, or an engineer intern who graduated from an accredited institution of higher learning with a Bachelor's degree within the 2 years immediately preceding the year in which the credit is taken. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2498LRB102 10659 HLH 15988 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 Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by adding Section 605-1048 as follows:
 
7    (20 ILCS 605/605-1048 new)
8    Sec. 605-1048. Retaining Illinois Students of Engineering
9(RISE) income tax credit.
10    (a) The Department shall issue a credit certification
11against the taxes imposed under subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act to qualified
13professional design firms in Illinois. The credits shall be
14awarded as provided in subsection (b) of this Section.
15    (b) For taxable years beginning on or after January 1,
162021, the Department shall award credits in the amount of (i)
1710% of the qualified compensation paid to each qualified
18employee who graduated from an accredited institution of
19higher learning in the State and (ii) 5% of the qualified
20compensation paid to each qualified employee who graduated
21from an accredited institution of higher learning outside of
22the State. The credit shall be taken against the taxes imposed
23under subsections (a) and (b) of Section 201 of the Illinois

 

 

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1Income Tax Act as provided in Section 232 of the Illinois
2Income Tax Act. The credit for each taxable year may not exceed
3$50,000 per qualified professional design firm.
4    (c) Qualified professional design firms seeking a
5certificate of exemption under this Section shall apply to the
6Department in the manner specified by the Department. The
7Department shall determine the duration of the certificate of
8exemption awarded under this Section. The Department and any
9qualified professional design firm seeking the credit must
10enter into a memorandum of understanding that at a minimum
11provides: (1) the number of new jobs created; (2) the salary
12for qualifying employees; and (3) the accredited institution
13from which qualifying employees graduated.
14    (d) For partners, shareholders of Subchapter S
15corporations, and members of limited liability companies, if
16the limited liability company is treated as a partnership for
17purposes of federal and State income taxation, there shall be
18allowed a credit under this subsection to be determined in
19accordance with the determination of income and distributive
20share of income under Sections 702 and 704 and Subchapter S of
21the Internal Revenue Code.
22    (e) Beginning July 1, 2023, and each year thereafter, the
23Department shall annually report to the Governor and the
24General Assembly on the outcomes and effectiveness of the
25credit awarded under this Section that shall include the
26following:

 

 

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1        (1) the city and county in which each recipient
2    business is located;
3        (2) the estimated value of the credit; and
4        (3) the number of new jobs.
5    (f) For the purposes of this Section:
6    "Qualified compensation" means compensation paid by a
7qualified professional design firm to a qualified employee in
8the State.
9    "Qualified employee" means an employee who (i) works in
10the State for a qualified professional design firm as an
11architect, an architectural associate, a structural engineer,
12a structural engineer intern, a design professional, or an
13engineer intern and (ii) graduated from an accredited
14institution of higher learning with a Bachelor's degree within
15the 2 years immediately preceding the year in which the credit
16is taken.
17    "Qualified professional design firm" means a design firm
18registered under the Illinois Architecture Practice Act of
191989, the Illinois Professional Land Surveyor Act of 1989, the
20Professional Engineering Practice Act of 1989, or the
21Structural Engineering Practice Act that:
22        (1) is located in the State of Illinois;
23        (2) has hired a qualifying employee in the taxable
24    year in which the credit is claimed or the taxable year
25    prior to the taxable year in which the credit is claimed;
26    and

 

 

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1        (3) has paid the qualifying employee compensation in
2    the State during that taxable year.
3    (g) This Section is exempt from the provisions of Section
4250.
 
5    Section 10. The Illinois Income Tax Act is amended by
6adding Section 232 as follows:
 
7    (35 ILCS 5/232 new)
8    Sec. 232. RISE credit. A taxpayer that has been awarded a
9credit under Section 605-1045 of the Department of Commerce
10and Economic Opportunity Law of the Civil Administrative Code
11of Illinois is entitled to a credit against the tax imposed
12under subsections (a) and (b) of Section 201 as provided in
13Section 605-1045 of the Department of Commerce and Economic
14Opportunity Law of the Civil Administrative Code of Illinois.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.