103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1410
 
Introduced 1/31/2023, by Rep. Dave Vella
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/234 new

     Amends the Illinois Income Tax Act. Creates an income tax credit for businesses with an average of 100 or fewer full-time employees during the taxable year in an amount equal to 50% of the costs incurred by the business in offering a paid family leave program to all of its full-time employees.
  


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A BILL FOR
 

  
HB1410LRB103 25800 HLH 52151 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 
5adding Section 234 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Credit for paid family leave.
8    (a) For taxable years beginning on or after January 1, 
92024, each business with an average of 100 or fewer full-time 
10employees during the taxable year is entitled to a credit 
11against the taxes imposed by subsections (a) and (b) of 
12Section 201 in an amount equal to 50% of the costs incurred by 
13the business in offering a paid family leave program to all of 
14its full-time employees. The business shall submit 
15documentation of the paid family leave program in the form and 
16manner required by the Department by rule. 
17    (b) For partners, shareholders of Subchapter S 
18corporations, and owners of limited liability companies, if 
19the liability company is treated as a partnership for purposes 
20of federal and State income taxation, there is allowed a 
21credit under this Section to be determined in accordance with 
22the determination of income and distributive share of income 
23under Sections 702 and 704 and Subchapter S of the Internal 
 
 
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1Revenue Code. 
2    (c) In no event shall a credit under this Section reduce 
3the taxpayer's liability to less than zero. If the amount of 
4the credit exceeds the tax liability for the year, the excess 
5may be carried forward and applied to the tax liability of the 
65 taxable years following the excess credit year. The tax 
7credit shall be applied to the earliest year for which there is 
8a tax liability. If there are credits for more than one year 
9that are available to offset a liability, the earlier credit 
10shall be applied first. 
11    (d) As used in this Section, "full-time employee" means an 
12individual who is employed for consideration for at least 35 
13hours each week or who renders any other standard of service 
14generally accepted by industry custom or practice as full-time 
15employment. 
16    (e) This Section is exempt from the provisions of Section 
17250.