Rep. Mark L. Walker

Filed: 3/8/2023

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1578

2    AMENDMENT NO. ______. Amend House Bill 1578 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5changing Sections 201 and 704A as follows:
 
6    (35 ILCS 5/201)
7    Sec. 201. Tax imposed.
8    (a) In general. A tax measured by net income is hereby
9imposed on every individual, corporation, trust and estate for
10each taxable year ending after July 31, 1969 on the privilege
11of earning or receiving income in or as a resident of this
12State. Such tax shall be in addition to all other occupation or
13privilege taxes imposed by this State or by any municipal
14corporation or political subdivision thereof.
15    (b) Rates. The tax imposed by subsection (a) of this
16Section shall be determined as follows, except as adjusted by

 

 

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1subsection (d-1):
2        (1) In the case of an individual, trust or estate, for
3    taxable years ending prior to July 1, 1989, an amount
4    equal to 2 1/2% of the taxpayer's net income for the
5    taxable year.
6        (2) In the case of an individual, trust or estate, for
7    taxable years beginning prior to July 1, 1989 and ending
8    after June 30, 1989, an amount equal to the sum of (i) 2
9    1/2% of the taxpayer's net income for the period prior to
10    July 1, 1989, as calculated under Section 202.3, and (ii)
11    3% of the taxpayer's net income for the period after June
12    30, 1989, as calculated under Section 202.3.
13        (3) In the case of an individual, trust or estate, for
14    taxable years beginning after June 30, 1989, and ending
15    prior to January 1, 2011, an amount equal to 3% of the
16    taxpayer's net income for the taxable year.
17        (4) In the case of an individual, trust, or estate,
18    for taxable years beginning prior to January 1, 2011, and
19    ending after December 31, 2010, an amount equal to the sum
20    of (i) 3% of the taxpayer's net income for the period prior
21    to January 1, 2011, as calculated under Section 202.5, and
22    (ii) 5% of the taxpayer's net income for the period after
23    December 31, 2010, as calculated under Section 202.5.
24        (5) In the case of an individual, trust, or estate,
25    for taxable years beginning on or after January 1, 2011,
26    and ending prior to January 1, 2015, an amount equal to 5%

 

 

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1    of the taxpayer's net income for the taxable year.
2        (5.1) In the case of an individual, trust, or estate,
3    for taxable years beginning prior to January 1, 2015, and
4    ending after December 31, 2014, an amount equal to the sum
5    of (i) 5% of the taxpayer's net income for the period prior
6    to January 1, 2015, as calculated under Section 202.5, and
7    (ii) 3.75% of the taxpayer's net income for the period
8    after December 31, 2014, as calculated under Section
9    202.5.
10        (5.2) In the case of an individual, trust, or estate,
11    for taxable years beginning on or after January 1, 2015,
12    and ending prior to July 1, 2017, an amount equal to 3.75%
13    of the taxpayer's net income for the taxable year.
14        (5.3) In the case of an individual, trust, or estate,
15    for taxable years beginning prior to July 1, 2017, and
16    ending after June 30, 2017, an amount equal to the sum of
17    (i) 3.75% of the taxpayer's net income for the period
18    prior to July 1, 2017, as calculated under Section 202.5,
19    and (ii) 4.95% of the taxpayer's net income for the period
20    after June 30, 2017, as calculated under Section 202.5.
21        (5.4) In the case of an individual, trust, or estate,
22    for taxable years beginning on or after July 1, 2017, an
23    amount equal to 4.95% of the taxpayer's net income for the
24    taxable year.
25        (6) In the case of a corporation, for taxable years
26    ending prior to July 1, 1989, an amount equal to 4% of the

 

 

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1    taxpayer's net income for the taxable year.
2        (7) In the case of a corporation, for taxable years
3    beginning prior to July 1, 1989 and ending after June 30,
4    1989, an amount equal to the sum of (i) 4% of the
5    taxpayer's net income for the period prior to July 1,
6    1989, as calculated under Section 202.3, and (ii) 4.8% of
7    the taxpayer's net income for the period after June 30,
8    1989, as calculated under Section 202.3.
9        (8) In the case of a corporation, for taxable years
10    beginning after June 30, 1989, and ending prior to January
11    1, 2011, an amount equal to 4.8% of the taxpayer's net
12    income for the taxable year.
13        (9) In the case of a corporation, for taxable years
14    beginning prior to January 1, 2011, and ending after
15    December 31, 2010, an amount equal to the sum of (i) 4.8%
16    of the taxpayer's net income for the period prior to
17    January 1, 2011, as calculated under Section 202.5, and
18    (ii) 7% of the taxpayer's net income for the period after
19    December 31, 2010, as calculated under Section 202.5.
20        (10) In the case of a corporation, for taxable years
21    beginning on or after January 1, 2011, and ending prior to
22    January 1, 2015, an amount equal to 7% of the taxpayer's
23    net income for the taxable year.
24        (11) In the case of a corporation, for taxable years
25    beginning prior to January 1, 2015, and ending after
26    December 31, 2014, an amount equal to the sum of (i) 7% of

 

 

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1    the taxpayer's net income for the period prior to January
2    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
3    of the taxpayer's net income for the period after December
4    31, 2014, as calculated under Section 202.5.
5        (12) In the case of a corporation, for taxable years
6    beginning on or after January 1, 2015, and ending prior to
7    July 1, 2017, an amount equal to 5.25% of the taxpayer's
8    net income for the taxable year.
9        (13) In the case of a corporation, for taxable years
10    beginning prior to July 1, 2017, and ending after June 30,
11    2017, an amount equal to the sum of (i) 5.25% of the
12    taxpayer's net income for the period prior to July 1,
13    2017, as calculated under Section 202.5, and (ii) 7% of
14    the taxpayer's net income for the period after June 30,
15    2017, as calculated under Section 202.5.
16        (14) In the case of a corporation, for taxable years
17    beginning on or after July 1, 2017, an amount equal to 7%
18    of the taxpayer's net income for the taxable year.
19    The rates under this subsection (b) are subject to the
20provisions of Section 201.5.
21    (b-5) Surcharge; sale or exchange of assets, properties,
22and intangibles of organization gaming licensees. For each of
23taxable years 2019 through 2027, a surcharge is imposed on all
24taxpayers on income arising from the sale or exchange of
25capital assets, depreciable business property, real property
26used in the trade or business, and Section 197 intangibles (i)

 

 

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1of an organization licensee under the Illinois Horse Racing
2Act of 1975 and (ii) of an organization gaming licensee under
3the Illinois Gambling Act. The amount of the surcharge is
4equal to the amount of federal income tax liability for the
5taxable year attributable to those sales and exchanges. The
6surcharge imposed shall not apply if:
7        (1) the organization gaming license, organization
8    license, or racetrack property is transferred as a result
9    of any of the following:
10            (A) bankruptcy, a receivership, or a debt
11        adjustment initiated by or against the initial
12        licensee or the substantial owners of the initial
13        licensee;
14            (B) cancellation, revocation, or termination of
15        any such license by the Illinois Gaming Board or the
16        Illinois Racing Board;
17            (C) a determination by the Illinois Gaming Board
18        that transfer of the license is in the best interests
19        of Illinois gaming;
20            (D) the death of an owner of the equity interest in
21        a licensee;
22            (E) the acquisition of a controlling interest in
23        the stock or substantially all of the assets of a
24        publicly traded company;
25            (F) a transfer by a parent company to a wholly
26        owned subsidiary; or

 

 

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1            (G) the transfer or sale to or by one person to
2        another person where both persons were initial owners
3        of the license when the license was issued; or
4        (2) the controlling interest in the organization
5    gaming license, organization license, or racetrack
6    property is transferred in a transaction to lineal
7    descendants in which no gain or loss is recognized or as a
8    result of a transaction in accordance with Section 351 of
9    the Internal Revenue Code in which no gain or loss is
10    recognized; or
11        (3) live horse racing was not conducted in 2010 at a
12    racetrack located within 3 miles of the Mississippi River
13    under a license issued pursuant to the Illinois Horse
14    Racing Act of 1975.
15    The transfer of an organization gaming license,
16organization license, or racetrack property by a person other
17than the initial licensee to receive the organization gaming
18license is not subject to a surcharge. The Department shall
19adopt rules necessary to implement and administer this
20subsection.
21    (c) Personal Property Tax Replacement Income Tax.
22Beginning on July 1, 1979 and thereafter, in addition to such
23income tax, there is also hereby imposed the Personal Property
24Tax Replacement Income Tax measured by net income on every
25corporation (including Subchapter S corporations), partnership
26and trust, for each taxable year ending after June 30, 1979.

 

 

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1Such taxes are imposed on the privilege of earning or
2receiving income in or as a resident of this State. The
3Personal Property Tax Replacement Income Tax shall be in
4addition to the income tax imposed by subsections (a) and (b)
5of this Section and in addition to all other occupation or
6privilege taxes imposed by this State or by any municipal
7corporation or political subdivision thereof.
8    (d) Additional Personal Property Tax Replacement Income
9Tax Rates. The personal property tax replacement income tax
10imposed by this subsection and subsection (c) of this Section
11in the case of a corporation, other than a Subchapter S
12corporation and except as adjusted by subsection (d-1), shall
13be an additional amount equal to 2.85% of such taxpayer's net
14income for the taxable year, except that beginning on January
151, 1981, and thereafter, the rate of 2.85% specified in this
16subsection shall be reduced to 2.5%, and in the case of a
17partnership, trust or a Subchapter S corporation shall be an
18additional amount equal to 1.5% of such taxpayer's net income
19for the taxable year.
20    (d-1) Rate reduction for certain foreign insurers. In the
21case of a foreign insurer, as defined by Section 35A-5 of the
22Illinois Insurance Code, whose state or country of domicile
23imposes on insurers domiciled in Illinois a retaliatory tax
24(excluding any insurer whose premiums from reinsurance assumed
25are 50% or more of its total insurance premiums as determined
26under paragraph (2) of subsection (b) of Section 304, except

 

 

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1that for purposes of this determination premiums from
2reinsurance do not include premiums from inter-affiliate
3reinsurance arrangements), beginning with taxable years ending
4on or after December 31, 1999, the sum of the rates of tax
5imposed by subsections (b) and (d) shall be reduced (but not
6increased) to the rate at which the total amount of tax imposed
7under this Act, net of all credits allowed under this Act,
8shall equal (i) the total amount of tax that would be imposed
9on the foreign insurer's net income allocable to Illinois for
10the taxable year by such foreign insurer's state or country of
11domicile if that net income were subject to all income taxes
12and taxes measured by net income imposed by such foreign
13insurer's state or country of domicile, net of all credits
14allowed or (ii) a rate of zero if no such tax is imposed on
15such income by the foreign insurer's state of domicile. For
16the purposes of this subsection (d-1), an inter-affiliate
17includes a mutual insurer under common management.
18        (1) For the purposes of subsection (d-1), in no event
19    shall the sum of the rates of tax imposed by subsections
20    (b) and (d) be reduced below the rate at which the sum of:
21            (A) the total amount of tax imposed on such
22        foreign insurer under this Act for a taxable year, net
23        of all credits allowed under this Act, plus
24            (B) the privilege tax imposed by Section 409 of
25        the Illinois Insurance Code, the fire insurance
26        company tax imposed by Section 12 of the Fire

 

 

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1        Investigation Act, and the fire department taxes
2        imposed under Section 11-10-1 of the Illinois
3        Municipal Code,
4    equals 1.25% for taxable years ending prior to December
5    31, 2003, or 1.75% for taxable years ending on or after
6    December 31, 2003, of the net taxable premiums written for
7    the taxable year, as described by subsection (1) of
8    Section 409 of the Illinois Insurance Code. This paragraph
9    will in no event increase the rates imposed under
10    subsections (b) and (d).
11        (2) Any reduction in the rates of tax imposed by this
12    subsection shall be applied first against the rates
13    imposed by subsection (b) and only after the tax imposed
14    by subsection (a) net of all credits allowed under this
15    Section other than the credit allowed under subsection (i)
16    has been reduced to zero, against the rates imposed by
17    subsection (d).
18    This subsection (d-1) is exempt from the provisions of
19Section 250.
20    (e) Investment credit. A taxpayer shall be allowed a
21credit against the Personal Property Tax Replacement Income
22Tax for investment in qualified property.
23        (1) A taxpayer shall be allowed a credit equal to .5%
24    of the basis of qualified property placed in service
25    during the taxable year, provided such property is placed
26    in service on or after July 1, 1984. There shall be allowed

 

 

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1    an additional credit equal to .5% of the basis of
2    qualified property placed in service during the taxable
3    year, provided such property is placed in service on or
4    after July 1, 1986, and the taxpayer's base employment
5    within Illinois has increased by 1% or more over the
6    preceding year as determined by the taxpayer's employment
7    records filed with the Illinois Department of Employment
8    Security. Taxpayers who are new to Illinois shall be
9    deemed to have met the 1% growth in base employment for the
10    first year in which they file employment records with the
11    Illinois Department of Employment Security. The provisions
12    added to this Section by Public Act 85-1200 (and restored
13    by Public Act 87-895) shall be construed as declaratory of
14    existing law and not as a new enactment. If, in any year,
15    the increase in base employment within Illinois over the
16    preceding year is less than 1%, the additional credit
17    shall be limited to that percentage times a fraction, the
18    numerator of which is .5% and the denominator of which is
19    1%, but shall not exceed .5%. The investment credit shall
20    not be allowed to the extent that it would reduce a
21    taxpayer's liability in any tax year below zero, nor may
22    any credit for qualified property be allowed for any year
23    other than the year in which the property was placed in
24    service in Illinois. For tax years ending on or after
25    December 31, 1987, and on or before December 31, 1988, the
26    credit shall be allowed for the tax year in which the

 

 

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1    property is placed in service, or, if the amount of the
2    credit exceeds the tax liability for that year, whether it
3    exceeds the original liability or the liability as later
4    amended, such excess may be carried forward and applied to
5    the tax liability of the 5 taxable years following the
6    excess credit years if the taxpayer (i) makes investments
7    which cause the creation of a minimum of 2,000 full-time
8    equivalent jobs in Illinois, (ii) is located in an
9    enterprise zone established pursuant to the Illinois
10    Enterprise Zone Act and (iii) is certified by the
11    Department of Commerce and Community Affairs (now
12    Department of Commerce and Economic Opportunity) as
13    complying with the requirements specified in clause (i)
14    and (ii) by July 1, 1986. The Department of Commerce and
15    Community Affairs (now Department of Commerce and Economic
16    Opportunity) shall notify the Department of Revenue of all
17    such certifications immediately. For tax years ending
18    after December 31, 1988, the credit shall be allowed for
19    the tax year in which the property is placed in service,
20    or, if the amount of the credit exceeds the tax liability
21    for that year, whether it exceeds the original liability
22    or the liability as later amended, such excess may be
23    carried forward and applied to the tax liability of the 5
24    taxable years following the excess credit years. The
25    credit shall be applied to the earliest year for which
26    there is a liability. If there is credit from more than one

 

 

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1    tax year that is available to offset a liability, earlier
2    credit shall be applied first.
3        (2) The term "qualified property" means property
4    which:
5            (A) is tangible, whether new or used, including
6        buildings and structural components of buildings and
7        signs that are real property, but not including land
8        or improvements to real property that are not a
9        structural component of a building such as
10        landscaping, sewer lines, local access roads, fencing,
11        parking lots, and other appurtenances;
12            (B) is depreciable pursuant to Section 167 of the
13        Internal Revenue Code, except that "3-year property"
14        as defined in Section 168(c)(2)(A) of that Code is not
15        eligible for the credit provided by this subsection
16        (e);
17            (C) is acquired by purchase as defined in Section
18        179(d) of the Internal Revenue Code;
19            (D) is used in Illinois by a taxpayer who is
20        primarily engaged in manufacturing, or in mining coal
21        or fluorite, or in retailing, or was placed in service
22        on or after July 1, 2006 in a River Edge Redevelopment
23        Zone established pursuant to the River Edge
24        Redevelopment Zone Act; and
25            (E) has not previously been used in Illinois in
26        such a manner and by such a person as would qualify for

 

 

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1        the credit provided by this subsection (e) or
2        subsection (f).
3        (3) For purposes of this subsection (e),
4    "manufacturing" means the material staging and production
5    of tangible personal property by procedures commonly
6    regarded as manufacturing, processing, fabrication, or
7    assembling which changes some existing material into new
8    shapes, new qualities, or new combinations. For purposes
9    of this subsection (e) the term "mining" shall have the
10    same meaning as the term "mining" in Section 613(c) of the
11    Internal Revenue Code. For purposes of this subsection
12    (e), the term "retailing" means the sale of tangible
13    personal property for use or consumption and not for
14    resale, or services rendered in conjunction with the sale
15    of tangible personal property for use or consumption and
16    not for resale. For purposes of this subsection (e),
17    "tangible personal property" has the same meaning as when
18    that term is used in the Retailers' Occupation Tax Act,
19    and, for taxable years ending after December 31, 2008,
20    does not include the generation, transmission, or
21    distribution of electricity.
22        (4) The basis of qualified property shall be the basis
23    used to compute the depreciation deduction for federal
24    income tax purposes.
25        (5) If the basis of the property for federal income
26    tax depreciation purposes is increased after it has been

 

 

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1    placed in service in Illinois by the taxpayer, the amount
2    of such increase shall be deemed property placed in
3    service on the date of such increase in basis.
4        (6) The term "placed in service" shall have the same
5    meaning as under Section 46 of the Internal Revenue Code.
6        (7) If during any taxable year, any property ceases to
7    be qualified property in the hands of the taxpayer within
8    48 months after being placed in service, or the situs of
9    any qualified property is moved outside Illinois within 48
10    months after being placed in service, the Personal
11    Property Tax Replacement Income Tax for such taxable year
12    shall be increased. Such increase shall be determined by
13    (i) recomputing the investment credit which would have
14    been allowed for the year in which credit for such
15    property was originally allowed by eliminating such
16    property from such computation and, (ii) subtracting such
17    recomputed credit from the amount of credit previously
18    allowed. For the purposes of this paragraph (7), a
19    reduction of the basis of qualified property resulting
20    from a redetermination of the purchase price shall be
21    deemed a disposition of qualified property to the extent
22    of such reduction.
23        (8) Unless the investment credit is extended by law,
24    the basis of qualified property shall not include costs
25    incurred after December 31, 2018, except for costs
26    incurred pursuant to a binding contract entered into on or

 

 

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1    before December 31, 2018.
2        (9) Each taxable year ending before December 31, 2000,
3    a partnership may elect to pass through to its partners
4    the credits to which the partnership is entitled under
5    this subsection (e) for the taxable year. A partner may
6    use the credit allocated to him or her under this
7    paragraph only against the tax imposed in subsections (c)
8    and (d) of this Section. If the partnership makes that
9    election, those credits shall be allocated among the
10    partners in the partnership in accordance with the rules
11    set forth in Section 704(b) of the Internal Revenue Code,
12    and the rules promulgated under that Section, and the
13    allocated amount of the credits shall be allowed to the
14    partners for that taxable year. The partnership shall make
15    this election on its Personal Property Tax Replacement
16    Income Tax return for that taxable year. The election to
17    pass through the credits shall be irrevocable.
18        For taxable years ending on or after December 31,
19    2000, a partner that qualifies its partnership for a
20    subtraction under subparagraph (I) of paragraph (2) of
21    subsection (d) of Section 203 or a shareholder that
22    qualifies a Subchapter S corporation for a subtraction
23    under subparagraph (S) of paragraph (2) of subsection (b)
24    of Section 203 shall be allowed a credit under this
25    subsection (e) equal to its share of the credit earned
26    under this subsection (e) during the taxable year by the

 

 

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1    partnership or Subchapter S corporation, determined in
2    accordance with the determination of income and
3    distributive share of income under Sections 702 and 704
4    and Subchapter S of the Internal Revenue Code. This
5    paragraph is exempt from the provisions of Section 250.
6    (f) Investment credit; Enterprise Zone; River Edge
7Redevelopment Zone.
8        (1) A taxpayer shall be allowed a credit against the
9    tax imposed by subsections (a) and (b) of this Section for
10    investment in qualified property which is placed in
11    service in an Enterprise Zone created pursuant to the
12    Illinois Enterprise Zone Act or, for property placed in
13    service on or after July 1, 2006, a River Edge
14    Redevelopment Zone established pursuant to the River Edge
15    Redevelopment Zone Act. For partners, shareholders of
16    Subchapter S corporations, and owners of limited liability
17    companies, if the liability company is treated as a
18    partnership for purposes of federal and State income
19    taxation, there shall be allowed a credit under this
20    subsection (f) to be determined in accordance with the
21    determination of income and distributive share of income
22    under Sections 702 and 704 and Subchapter S of the
23    Internal Revenue Code. The credit shall be .5% of the
24    basis for such property. The credit shall be available
25    only in the taxable year in which the property is placed in
26    service in the Enterprise Zone or River Edge Redevelopment

 

 

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1    Zone and shall not be allowed to the extent that it would
2    reduce a taxpayer's liability for the tax imposed by
3    subsections (a) and (b) of this Section to below zero. For
4    tax years ending on or after December 31, 1985, the credit
5    shall be allowed for the tax year in which the property is
6    placed in service, or, if the amount of the credit exceeds
7    the tax liability for that year, whether it exceeds the
8    original liability or the liability as later amended, such
9    excess may be carried forward and applied to the tax
10    liability of the 5 taxable years following the excess
11    credit year. The credit shall be applied to the earliest
12    year for which there is a liability. If there is credit
13    from more than one tax year that is available to offset a
14    liability, the credit accruing first in time shall be
15    applied first.
16        (2) The term qualified property means property which:
17            (A) is tangible, whether new or used, including
18        buildings and structural components of buildings;
19            (B) is depreciable pursuant to Section 167 of the
20        Internal Revenue Code, except that "3-year property"
21        as defined in Section 168(c)(2)(A) of that Code is not
22        eligible for the credit provided by this subsection
23        (f);
24            (C) is acquired by purchase as defined in Section
25        179(d) of the Internal Revenue Code;
26            (D) is used in the Enterprise Zone or River Edge

 

 

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1        Redevelopment Zone by the taxpayer; and
2            (E) has not been previously used in Illinois in
3        such a manner and by such a person as would qualify for
4        the credit provided by this subsection (f) or
5        subsection (e).
6        (3) The basis of qualified property shall be the basis
7    used to compute the depreciation deduction for federal
8    income tax purposes.
9        (4) If the basis of the property for federal income
10    tax depreciation purposes is increased after it has been
11    placed in service in the Enterprise Zone or River Edge
12    Redevelopment Zone by the taxpayer, the amount of such
13    increase shall be deemed property placed in service on the
14    date of such increase in basis.
15        (5) The term "placed in service" shall have the same
16    meaning as under Section 46 of the Internal Revenue Code.
17        (6) If during any taxable year, any property ceases to
18    be qualified property in the hands of the taxpayer within
19    48 months after being placed in service, or the situs of
20    any qualified property is moved outside the Enterprise
21    Zone or River Edge Redevelopment Zone within 48 months
22    after being placed in service, the tax imposed under
23    subsections (a) and (b) of this Section for such taxable
24    year shall be increased. Such increase shall be determined
25    by (i) recomputing the investment credit which would have
26    been allowed for the year in which credit for such

 

 

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1    property was originally allowed by eliminating such
2    property from such computation, and (ii) subtracting such
3    recomputed credit from the amount of credit previously
4    allowed. For the purposes of this paragraph (6), a
5    reduction of the basis of qualified property resulting
6    from a redetermination of the purchase price shall be
7    deemed a disposition of qualified property to the extent
8    of such reduction.
9        (7) There shall be allowed an additional credit equal
10    to 0.5% of the basis of qualified property placed in
11    service during the taxable year in a River Edge
12    Redevelopment Zone, provided such property is placed in
13    service on or after July 1, 2006, and the taxpayer's base
14    employment within Illinois has increased by 1% or more
15    over the preceding year as determined by the taxpayer's
16    employment records filed with the Illinois Department of
17    Employment Security. Taxpayers who are new to Illinois
18    shall be deemed to have met the 1% growth in base
19    employment for the first year in which they file
20    employment records with the Illinois Department of
21    Employment Security. If, in any year, the increase in base
22    employment within Illinois over the preceding year is less
23    than 1%, the additional credit shall be limited to that
24    percentage times a fraction, the numerator of which is
25    0.5% and the denominator of which is 1%, but shall not
26    exceed 0.5%.

 

 

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1        (8) For taxable years beginning on or after January 1,
2    2021, there shall be allowed an Enterprise Zone
3    construction jobs credit against the taxes imposed under
4    subsections (a) and (b) of this Section as provided in
5    Section 13 of the Illinois Enterprise Zone Act.
6        The credit or credits may not reduce the taxpayer's
7    liability to less than zero. If the amount of the credit or
8    credits exceeds the taxpayer's liability, the excess may
9    be carried forward and applied against the taxpayer's
10    liability in succeeding calendar years in the same manner
11    provided under paragraph (4) of Section 211 of this Act.
12    The credit or credits shall be applied to the earliest
13    year for which there is a tax liability. If there are
14    credits from more than one taxable year that are available
15    to offset a liability, the earlier credit shall be applied
16    first.
17        For partners, shareholders of Subchapter S
18    corporations, and owners of limited liability companies,
19    if the liability company is treated as a partnership for
20    the purposes of federal and State income taxation, there
21    shall be allowed a credit under this Section to be
22    determined in accordance with the determination of income
23    and distributive share of income under Sections 702 and
24    704 and Subchapter S of the Internal Revenue Code.
25        The total aggregate amount of credits awarded under
26    the Blue Collar Jobs Act (Article 20 of Public Act 101-9)

 

 

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1    shall not exceed $20,000,000 in any State fiscal year.
2        This paragraph (8) is exempt from the provisions of
3    Section 250.
4    (g) (Blank).
5    (h) Investment credit; High Impact Business.
6        (1) Subject to subsections (b) and (b-5) of Section
7    5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
8    be allowed a credit against the tax imposed by subsections
9    (a) and (b) of this Section for investment in qualified
10    property which is placed in service by a Department of
11    Commerce and Economic Opportunity designated High Impact
12    Business. The credit shall be .5% of the basis for such
13    property. The credit shall not be available (i) until the
14    minimum investments in qualified property set forth in
15    subdivision (a)(3)(A) of Section 5.5 of the Illinois
16    Enterprise Zone Act have been satisfied or (ii) until the
17    time authorized in subsection (b-5) of the Illinois
18    Enterprise Zone Act for entities designated as High Impact
19    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
20    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
21    Act, and shall not be allowed to the extent that it would
22    reduce a taxpayer's liability for the tax imposed by
23    subsections (a) and (b) of this Section to below zero. The
24    credit applicable to such investments shall be taken in
25    the taxable year in which such investments have been
26    completed. The credit for additional investments beyond

 

 

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1    the minimum investment by a designated high impact
2    business authorized under subdivision (a)(3)(A) of Section
3    5.5 of the Illinois Enterprise Zone Act shall be available
4    only in the taxable year in which the property is placed in
5    service and shall not be allowed to the extent that it
6    would reduce a taxpayer's liability for the tax imposed by
7    subsections (a) and (b) of this Section to below zero. For
8    tax years ending on or after December 31, 1987, the credit
9    shall be allowed for the tax year in which the property is
10    placed in service, or, if the amount of the credit exceeds
11    the tax liability for that year, whether it exceeds the
12    original liability or the liability as later amended, such
13    excess may be carried forward and applied to the tax
14    liability of the 5 taxable years following the excess
15    credit year. The credit shall be applied to the earliest
16    year for which there is a liability. If there is credit
17    from more than one tax year that is available to offset a
18    liability, the credit accruing first in time shall be
19    applied first.
20        Changes made in this subdivision (h)(1) by Public Act
21    88-670 restore changes made by Public Act 85-1182 and
22    reflect existing law.
23        (2) The term qualified property means property which:
24            (A) is tangible, whether new or used, including
25        buildings and structural components of buildings;
26            (B) is depreciable pursuant to Section 167 of the

 

 

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1        Internal Revenue Code, except that "3-year property"
2        as defined in Section 168(c)(2)(A) of that Code is not
3        eligible for the credit provided by this subsection
4        (h);
5            (C) is acquired by purchase as defined in Section
6        179(d) of the Internal Revenue Code; and
7            (D) is not eligible for the Enterprise Zone
8        Investment Credit provided by subsection (f) of this
9        Section.
10        (3) The basis of qualified property shall be the basis
11    used to compute the depreciation deduction for federal
12    income tax purposes.
13        (4) If the basis of the property for federal income
14    tax depreciation purposes is increased after it has been
15    placed in service in a federally designated Foreign Trade
16    Zone or Sub-Zone located in Illinois by the taxpayer, the
17    amount of such increase shall be deemed property placed in
18    service on the date of such increase in basis.
19        (5) The term "placed in service" shall have the same
20    meaning as under Section 46 of the Internal Revenue Code.
21        (6) If during any taxable year ending on or before
22    December 31, 1996, any property ceases to be qualified
23    property in the hands of the taxpayer within 48 months
24    after being placed in service, or the situs of any
25    qualified property is moved outside Illinois within 48
26    months after being placed in service, the tax imposed

 

 

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1    under subsections (a) and (b) of this Section for such
2    taxable year shall be increased. Such increase shall be
3    determined by (i) recomputing the investment credit which
4    would have been allowed for the year in which credit for
5    such property was originally allowed by eliminating such
6    property from such computation, and (ii) subtracting such
7    recomputed credit from the amount of credit previously
8    allowed. For the purposes of this paragraph (6), a
9    reduction of the basis of qualified property resulting
10    from a redetermination of the purchase price shall be
11    deemed a disposition of qualified property to the extent
12    of such reduction.
13        (7) Beginning with tax years ending after December 31,
14    1996, if a taxpayer qualifies for the credit under this
15    subsection (h) and thereby is granted a tax abatement and
16    the taxpayer relocates its entire facility in violation of
17    the explicit terms and length of the contract under
18    Section 18-183 of the Property Tax Code, the tax imposed
19    under subsections (a) and (b) of this Section shall be
20    increased for the taxable year in which the taxpayer
21    relocated its facility by an amount equal to the amount of
22    credit received by the taxpayer under this subsection (h).
23    (h-5) High Impact Business construction jobs credit. For
24taxable years beginning on or after January 1, 2021, there
25shall also be allowed a High Impact Business construction jobs
26credit against the tax imposed under subsections (a) and (b)

 

 

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1of this Section as provided in subsections (i) and (j) of
2Section 5.5 of the Illinois Enterprise Zone Act.
3    The credit or credits may not reduce the taxpayer's
4liability to less than zero. If the amount of the credit or
5credits exceeds the taxpayer's liability, the excess may be
6carried forward and applied against the taxpayer's liability
7in succeeding calendar years in the manner provided under
8paragraph (4) of Section 211 of this Act. The credit or credits
9shall be applied to the earliest year for which there is a tax
10liability. If there are credits from more than one taxable
11year that are available to offset a liability, the earlier
12credit shall be applied first.
13    For partners, shareholders of Subchapter S corporations,
14and owners of limited liability companies, if the liability
15company is treated as a partnership for the purposes of
16federal and State income taxation, there shall be allowed a
17credit under this Section to be determined in accordance with
18the determination of income and distributive share of income
19under Sections 702 and 704 and Subchapter S of the Internal
20Revenue Code.
21    The total aggregate amount of credits awarded under the
22Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
23exceed $20,000,000 in any State fiscal year.
24    This subsection (h-5) is exempt from the provisions of
25Section 250.
26    (i) Credit for Personal Property Tax Replacement Income

 

 

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1Tax. For tax years ending prior to December 31, 2003, a credit
2shall be allowed against the tax imposed by subsections (a)
3and (b) of this Section for the tax imposed by subsections (c)
4and (d) of this Section. This credit shall be computed by
5multiplying the tax imposed by subsections (c) and (d) of this
6Section by a fraction, the numerator of which is base income
7allocable to Illinois and the denominator of which is Illinois
8base income, and further multiplying the product by the tax
9rate imposed by subsections (a) and (b) of this Section.
10    Any credit earned on or after December 31, 1986 under this
11subsection which is unused in the year the credit is computed
12because it exceeds the tax liability imposed by subsections
13(a) and (b) for that year (whether it exceeds the original
14liability or the liability as later amended) may be carried
15forward and applied to the tax liability imposed by
16subsections (a) and (b) of the 5 taxable years following the
17excess credit year, provided that no credit may be carried
18forward to any year ending on or after December 31, 2003. This
19credit shall be applied first to the earliest year for which
20there is a liability. If there is a credit under this
21subsection from more than one tax year that is available to
22offset a liability the earliest credit arising under this
23subsection shall be applied first.
24    If, during any taxable year ending on or after December
2531, 1986, the tax imposed by subsections (c) and (d) of this
26Section for which a taxpayer has claimed a credit under this

 

 

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1subsection (i) is reduced, the amount of credit for such tax
2shall also be reduced. Such reduction shall be determined by
3recomputing the credit to take into account the reduced tax
4imposed by subsections (c) and (d). If any portion of the
5reduced amount of credit has been carried to a different
6taxable year, an amended return shall be filed for such
7taxable year to reduce the amount of credit claimed.
8    (j) Training expense credit. Beginning with tax years
9ending on or after December 31, 1986 and prior to December 31,
102003, a taxpayer shall be allowed a credit against the tax
11imposed by subsections (a) and (b) under this Section for all
12amounts paid or accrued, on behalf of all persons employed by
13the taxpayer in Illinois or Illinois residents employed
14outside of Illinois by a taxpayer, for educational or
15vocational training in semi-technical or technical fields or
16semi-skilled or skilled fields, which were deducted from gross
17income in the computation of taxable income. The credit
18against the tax imposed by subsections (a) and (b) shall be
191.6% of such training expenses. For partners, shareholders of
20subchapter S corporations, and owners of limited liability
21companies, if the liability company is treated as a
22partnership for purposes of federal and State income taxation,
23there shall be allowed a credit under this subsection (j) to be
24determined in accordance with the determination of income and
25distributive share of income under Sections 702 and 704 and
26subchapter S of the Internal Revenue Code.

 

 

10300HB1578ham001- 29 -LRB103 04639 HLH 58237 a

1    Any credit allowed under this subsection which is unused
2in the year the credit is earned may be carried forward to each
3of the 5 taxable years following the year for which the credit
4is first computed until it is used. This credit shall be
5applied first to the earliest year for which there is a
6liability. If there is a credit under this subsection from
7more than one tax year that is available to offset a liability,
8the earliest credit arising under this subsection shall be
9applied first. No carryforward credit may be claimed in any
10tax year ending on or after December 31, 2003.
11    (k) Research and development credit. For tax years ending
12after July 1, 1990 and prior to December 31, 2003, and
13beginning again for tax years ending on or after December 31,
142004, and ending prior to January 1, 2037 January 1, 2027, a
15taxpayer shall be allowed a credit against the tax imposed by
16subsections (a) and (b) of this Section for increasing
17research activities in this State. The credit allowed against
18the tax imposed by subsections (a) and (b) shall be equal to 6
191/2% of the qualifying expenditures for increasing research
20activities in this State, except that, for tax years beginning
21on or after January 1, 2024, in the case of qualifying
22expenditures specifically related to quantum information
23science, the taxpayer may apply to the Department to increase
24the amount of the credit allowed under this subsection to 13%
25of the qualifying expenditures for increasing research
26activities in this State. In no event shall a taxpayer be

 

 

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1allowed both the increased 13% credit under this Section for
2qualifying expenditures specifically related to quantum
3information science and the 6 1/2% credit under this
4subsection for the same expenditures. The total aggregate
5amount of the additional credits awarded under this subsection
6for qualifying expenditures specifically related to quantum
7information science shall not exceed $25,000,000 in any
8calendar year. For partners, shareholders of subchapter S
9corporations, and owners of limited liability companies, if
10the liability company is treated as a partnership for purposes
11of federal and State income taxation, there shall be allowed a
12credit under this subsection to be determined in accordance
13with the determination of income and distributive share of
14income under Sections 702 and 704 and subchapter S of the
15Internal Revenue Code.
16    In lieu of the credit allowed under this subsection (k)
17against taxes imposed pursuant to subsections (a) and (b) of
18this Section, for any taxable year ending after December 31,
192023, a qualified startup taxpayer may elect to claim the
20credit against its obligation to pay over withholding taxes
21under Section 704A. However, the taxpayer may not make such an
22election for a taxable year if the taxpayer has an Illinois
23income tax liability for that taxable year with respect to the
24taxes imposed pursuant to subsections (a) and (b) of Section
25201 of this Act against which the taxpayer may claim the credit
26under this subsection (k).

 

 

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1    As used in For purposes of this subsection: ,
2        "Business entity" means a corporation, association,
3    partnership, limited liability company, or other legal
4    entity.
5        "Qualified startup taxpayer" means a business entity
6    that (i) was incorporated or organized no more than 5
7    years before the first day of the taxable year for which
8    the credit is sought, (ii) has never had any Illinois
9    income tax liability, excluding any Illinois income tax
10    liability of a related member, which shall not be
11    attributed to the startup taxpayer, and (iii) otherwise
12    meets the requirements of this subsection (k).
13        "Qualifying "qualifying expenditures" means the
14    qualifying expenditures as defined for the federal credit
15    for increasing research activities which would be
16    allowable under Section 41 of the Internal Revenue Code
17    and which are conducted in this State. ,
18        "Qualifying "qualifying expenditures for increasing
19    research activities in this State" means the excess of
20    qualifying expenditures for the taxable year in which
21    incurred over qualifying expenditures for the base period.
22    ,
23        "Qualifying "qualifying expenditures for the base
24    period" means the average of the qualifying expenditures
25    for each year in the base period, and "base period" means
26    the 3 taxable years immediately preceding the taxable year

 

 

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1    for which the determination is being made.
2        "Quantum information science" has the same meaning
3    given to that term in Section 2 of the federal National
4    Quantum Initiative Act.
5        "Related member" has the meaning given to the term in
6    Section 5-5 of the Economic Development for a Growing
7    Economy Tax Credit Act.
8    Any credit in excess of the tax liability for the taxable
9year may be carried forward. A taxpayer may elect to have the
10unused credit shown on its final completed return carried over
11as a credit against the tax liability for the following 5
12taxable years or until it has been fully used, whichever
13occurs first; provided that no credit earned in a tax year
14ending prior to December 31, 2003 may be carried forward to any
15year ending on or after December 31, 2003.
16    If an unused credit is carried forward to a given year from
172 or more earlier years, that credit arising in the earliest
18year will be applied first against the tax liability for the
19given year. If a tax liability for the given year still
20remains, the credit from the next earliest year will then be
21applied, and so on, until all credits have been used or no tax
22liability for the given year remains. Any remaining unused
23credit or credits then will be carried forward to the next
24following year in which a tax liability is incurred, except
25that no credit can be carried forward to a year which is more
26than 5 years after the year in which the expense for which the

 

 

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1credit is given was incurred.
2    No inference shall be drawn from Public Act 91-644 in
3construing this Section for taxable years beginning before
4January 1, 1999.
5    It is the intent of the General Assembly that the research
6and development credit under this subsection (k) shall apply
7continuously for all tax years ending on or after December 31,
82004 and ending prior to January 1, 2027, including, but not
9limited to, the period beginning on January 1, 2016 and ending
10on July 6, 2017 (the effective date of Public Act 100-22). All
11actions taken in reliance on the continuation of the credit
12under this subsection (k) by any taxpayer are hereby
13validated.
14    (l) Environmental Remediation Tax Credit.
15        (i) For tax years ending after December 31, 1997 and
16    on or before December 31, 2001, a taxpayer shall be
17    allowed a credit against the tax imposed by subsections
18    (a) and (b) of this Section for certain amounts paid for
19    unreimbursed eligible remediation costs, as specified in
20    this subsection. For purposes of this Section,
21    "unreimbursed eligible remediation costs" means costs
22    approved by the Illinois Environmental Protection Agency
23    ("Agency") under Section 58.14 of the Environmental
24    Protection Act that were paid in performing environmental
25    remediation at a site for which a No Further Remediation
26    Letter was issued by the Agency and recorded under Section

 

 

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1    58.10 of the Environmental Protection Act. The credit must
2    be claimed for the taxable year in which Agency approval
3    of the eligible remediation costs is granted. The credit
4    is not available to any taxpayer if the taxpayer or any
5    related party caused or contributed to, in any material
6    respect, a release of regulated substances on, in, or
7    under the site that was identified and addressed by the
8    remedial action pursuant to the Site Remediation Program
9    of the Environmental Protection Act. After the Pollution
10    Control Board rules are adopted pursuant to the Illinois
11    Administrative Procedure Act for the administration and
12    enforcement of Section 58.9 of the Environmental
13    Protection Act, determinations as to credit availability
14    for purposes of this Section shall be made consistent with
15    those rules. For purposes of this Section, "taxpayer"
16    includes a person whose tax attributes the taxpayer has
17    succeeded to under Section 381 of the Internal Revenue
18    Code and "related party" includes the persons disallowed a
19    deduction for losses by paragraphs (b), (c), and (f)(1) of
20    Section 267 of the Internal Revenue Code by virtue of
21    being a related taxpayer, as well as any of its partners.
22    The credit allowed against the tax imposed by subsections
23    (a) and (b) shall be equal to 25% of the unreimbursed
24    eligible remediation costs in excess of $100,000 per site,
25    except that the $100,000 threshold shall not apply to any
26    site contained in an enterprise zone as determined by the

 

 

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1    Department of Commerce and Community Affairs (now
2    Department of Commerce and Economic Opportunity). The
3    total credit allowed shall not exceed $40,000 per year
4    with a maximum total of $150,000 per site. For partners
5    and shareholders of subchapter S corporations, there shall
6    be allowed a credit under this subsection to be determined
7    in accordance with the determination of income and
8    distributive share of income under Sections 702 and 704
9    and subchapter S of the Internal Revenue Code.
10        (ii) A credit allowed under this subsection that is
11    unused in the year the credit is earned may be carried
12    forward to each of the 5 taxable years following the year
13    for which the credit is first earned until it is used. The
14    term "unused credit" does not include any amounts of
15    unreimbursed eligible remediation costs in excess of the
16    maximum credit per site authorized under paragraph (i).
17    This credit shall be applied first to the earliest year
18    for which there is a liability. If there is a credit under
19    this subsection from more than one tax year that is
20    available to offset a liability, the earliest credit
21    arising under this subsection shall be applied first. A
22    credit allowed under this subsection may be sold to a
23    buyer as part of a sale of all or part of the remediation
24    site for which the credit was granted. The purchaser of a
25    remediation site and the tax credit shall succeed to the
26    unused credit and remaining carry-forward period of the

 

 

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1    seller. To perfect the transfer, the assignor shall record
2    the transfer in the chain of title for the site and provide
3    written notice to the Director of the Illinois Department
4    of Revenue of the assignor's intent to sell the
5    remediation site and the amount of the tax credit to be
6    transferred as a portion of the sale. In no event may a
7    credit be transferred to any taxpayer if the taxpayer or a
8    related party would not be eligible under the provisions
9    of subsection (i).
10        (iii) For purposes of this Section, the term "site"
11    shall have the same meaning as under Section 58.2 of the
12    Environmental Protection Act.
13    (m) Education expense credit. Beginning with tax years
14ending after December 31, 1999, a taxpayer who is the
15custodian of one or more qualifying pupils shall be allowed a
16credit against the tax imposed by subsections (a) and (b) of
17this Section for qualified education expenses incurred on
18behalf of the qualifying pupils. The credit shall be equal to
1925% of qualified education expenses, but in no event may the
20total credit under this subsection claimed by a family that is
21the custodian of qualifying pupils exceed (i) $500 for tax
22years ending prior to December 31, 2017, and (ii) $750 for tax
23years ending on or after December 31, 2017. In no event shall a
24credit under this subsection reduce the taxpayer's liability
25under this Act to less than zero. Notwithstanding any other
26provision of law, for taxable years beginning on or after

 

 

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1January 1, 2017, no taxpayer may claim a credit under this
2subsection (m) if the taxpayer's adjusted gross income for the
3taxable year exceeds (i) $500,000, in the case of spouses
4filing a joint federal tax return or (ii) $250,000, in the case
5of all other taxpayers. This subsection is exempt from the
6provisions of Section 250 of this Act.
7    For purposes of this subsection:
8    "Qualifying pupils" means individuals who (i) are
9residents of the State of Illinois, (ii) are under the age of
1021 at the close of the school year for which a credit is
11sought, and (iii) during the school year for which a credit is
12sought were full-time pupils enrolled in a kindergarten
13through twelfth grade education program at any school, as
14defined in this subsection.
15    "Qualified education expense" means the amount incurred on
16behalf of a qualifying pupil in excess of $250 for tuition,
17book fees, and lab fees at the school in which the pupil is
18enrolled during the regular school year.
19    "School" means any public or nonpublic elementary or
20secondary school in Illinois that is in compliance with Title
21VI of the Civil Rights Act of 1964 and attendance at which
22satisfies the requirements of Section 26-1 of the School Code,
23except that nothing shall be construed to require a child to
24attend any particular public or nonpublic school to qualify
25for the credit under this Section.
26    "Custodian" means, with respect to qualifying pupils, an

 

 

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1Illinois resident who is a parent, the parents, a legal
2guardian, or the legal guardians of the qualifying pupils.
3    (n) River Edge Redevelopment Zone site remediation tax
4credit.
5        (i) For tax years ending on or after December 31,
6    2006, a taxpayer shall be allowed a credit against the tax
7    imposed by subsections (a) and (b) of this Section for
8    certain amounts paid for unreimbursed eligible remediation
9    costs, as specified in this subsection. For purposes of
10    this Section, "unreimbursed eligible remediation costs"
11    means costs approved by the Illinois Environmental
12    Protection Agency ("Agency") under Section 58.14a of the
13    Environmental Protection Act that were paid in performing
14    environmental remediation at a site within a River Edge
15    Redevelopment Zone for which a No Further Remediation
16    Letter was issued by the Agency and recorded under Section
17    58.10 of the Environmental Protection Act. The credit must
18    be claimed for the taxable year in which Agency approval
19    of the eligible remediation costs is granted. The credit
20    is not available to any taxpayer if the taxpayer or any
21    related party caused or contributed to, in any material
22    respect, a release of regulated substances on, in, or
23    under the site that was identified and addressed by the
24    remedial action pursuant to the Site Remediation Program
25    of the Environmental Protection Act. Determinations as to
26    credit availability for purposes of this Section shall be

 

 

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1    made consistent with rules adopted by the Pollution
2    Control Board pursuant to the Illinois Administrative
3    Procedure Act for the administration and enforcement of
4    Section 58.9 of the Environmental Protection Act. For
5    purposes of this Section, "taxpayer" includes a person
6    whose tax attributes the taxpayer has succeeded to under
7    Section 381 of the Internal Revenue Code and "related
8    party" includes the persons disallowed a deduction for
9    losses by paragraphs (b), (c), and (f)(1) of Section 267
10    of the Internal Revenue Code by virtue of being a related
11    taxpayer, as well as any of its partners. The credit
12    allowed against the tax imposed by subsections (a) and (b)
13    shall be equal to 25% of the unreimbursed eligible
14    remediation costs in excess of $100,000 per site.
15        (ii) A credit allowed under this subsection that is
16    unused in the year the credit is earned may be carried
17    forward to each of the 5 taxable years following the year
18    for which the credit is first earned until it is used. This
19    credit shall be applied first to the earliest year for
20    which there is a liability. If there is a credit under this
21    subsection from more than one tax year that is available
22    to offset a liability, the earliest credit arising under
23    this subsection shall be applied first. A credit allowed
24    under this subsection may be sold to a buyer as part of a
25    sale of all or part of the remediation site for which the
26    credit was granted. The purchaser of a remediation site

 

 

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1    and the tax credit shall succeed to the unused credit and
2    remaining carry-forward period of the seller. To perfect
3    the transfer, the assignor shall record the transfer in
4    the chain of title for the site and provide written notice
5    to the Director of the Illinois Department of Revenue of
6    the assignor's intent to sell the remediation site and the
7    amount of the tax credit to be transferred as a portion of
8    the sale. In no event may a credit be transferred to any
9    taxpayer if the taxpayer or a related party would not be
10    eligible under the provisions of subsection (i).
11        (iii) For purposes of this Section, the term "site"
12    shall have the same meaning as under Section 58.2 of the
13    Environmental Protection Act.
14    (o) For each of taxable years during the Compassionate Use
15of Medical Cannabis Program, a surcharge is imposed on all
16taxpayers on income arising from the sale or exchange of
17capital assets, depreciable business property, real property
18used in the trade or business, and Section 197 intangibles of
19an organization registrant under the Compassionate Use of
20Medical Cannabis Program Act. The amount of the surcharge is
21equal to the amount of federal income tax liability for the
22taxable year attributable to those sales and exchanges. The
23surcharge imposed does not apply if:
24        (1) the medical cannabis cultivation center
25    registration, medical cannabis dispensary registration, or
26    the property of a registration is transferred as a result

 

 

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1    of any of the following:
2            (A) bankruptcy, a receivership, or a debt
3        adjustment initiated by or against the initial
4        registration or the substantial owners of the initial
5        registration;
6            (B) cancellation, revocation, or termination of
7        any registration by the Illinois Department of Public
8        Health;
9            (C) a determination by the Illinois Department of
10        Public Health that transfer of the registration is in
11        the best interests of Illinois qualifying patients as
12        defined by the Compassionate Use of Medical Cannabis
13        Program Act;
14            (D) the death of an owner of the equity interest in
15        a registrant;
16            (E) the acquisition of a controlling interest in
17        the stock or substantially all of the assets of a
18        publicly traded company;
19            (F) a transfer by a parent company to a wholly
20        owned subsidiary; or
21            (G) the transfer or sale to or by one person to
22        another person where both persons were initial owners
23        of the registration when the registration was issued;
24        or
25        (2) the cannabis cultivation center registration,
26    medical cannabis dispensary registration, or the

 

 

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1    controlling interest in a registrant's property is
2    transferred in a transaction to lineal descendants in
3    which no gain or loss is recognized or as a result of a
4    transaction in accordance with Section 351 of the Internal
5    Revenue Code in which no gain or loss is recognized.
6    (p) Pass-through entity tax.
7        (1) For taxable years ending on or after December 31,
8    2021 and beginning prior to January 1, 2026, a partnership
9    (other than a publicly traded partnership under Section
10    7704 of the Internal Revenue Code) or Subchapter S
11    corporation may elect to apply the provisions of this
12    subsection. A separate election shall be made for each
13    taxable year. Such election shall be made at such time,
14    and in such form and manner as prescribed by the
15    Department, and, once made, is irrevocable.
16        (2) Entity-level tax. A partnership or Subchapter S
17    corporation electing to apply the provisions of this
18    subsection shall be subject to a tax for the privilege of
19    earning or receiving income in this State in an amount
20    equal to 4.95% of the taxpayer's net income for the
21    taxable year.
22        (3) Net income defined.
23            (A) In general. For purposes of paragraph (2), the
24        term net income has the same meaning as defined in
25        Section 202 of this Act, except that the following
26        provisions shall not apply:

 

 

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1                (i) the standard exemption allowed under
2            Section 204;
3                (ii) the deduction for net losses allowed
4            under Section 207;
5                (iii) in the case of an S corporation, the
6            modification under Section 203(b)(2)(S); and
7                (iv) in the case of a partnership, the
8            modifications under Section 203(d)(2)(H) and
9            Section 203(d)(2)(I).
10            (B) Special rule for tiered partnerships. If a
11        taxpayer making the election under paragraph (1) is a
12        partner of another taxpayer making the election under
13        paragraph (1), net income shall be computed as
14        provided in subparagraph (A), except that the taxpayer
15        shall subtract its distributive share of the net
16        income of the electing partnership (including its
17        distributive share of the net income of the electing
18        partnership derived as a distributive share from
19        electing partnerships in which it is a partner).
20        (4) Credit for entity level tax. Each partner or
21    shareholder of a taxpayer making the election under this
22    Section shall be allowed a credit against the tax imposed
23    under subsections (a) and (b) of Section 201 of this Act
24    for the taxable year of the partnership or Subchapter S
25    corporation for which an election is in effect ending
26    within or with the taxable year of the partner or

 

 

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1    shareholder in an amount equal to 4.95% times the partner
2    or shareholder's distributive share of the net income of
3    the electing partnership or Subchapter S corporation, but
4    not to exceed the partner's or shareholder's share of the
5    tax imposed under paragraph (1) which is actually paid by
6    the partnership or Subchapter S corporation. If the
7    taxpayer is a partnership or Subchapter S corporation that
8    is itself a partner of a partnership making the election
9    under paragraph (1), the credit under this paragraph shall
10    be allowed to the taxpayer's partners or shareholders (or
11    if the partner is a partnership or Subchapter S
12    corporation then its partners or shareholders) in
13    accordance with the determination of income and
14    distributive share of income under Sections 702 and 704
15    and Subchapter S of the Internal Revenue Code. If the
16    amount of the credit allowed under this paragraph exceeds
17    the partner's or shareholder's liability for tax imposed
18    under subsections (a) and (b) of Section 201 of this Act
19    for the taxable year, such excess shall be treated as an
20    overpayment for purposes of Section 909 of this Act.
21        (5) Nonresidents. A nonresident individual who is a
22    partner or shareholder of a partnership or Subchapter S
23    corporation for a taxable year for which an election is in
24    effect under paragraph (1) shall not be required to file
25    an income tax return under this Act for such taxable year
26    if the only source of net income of the individual (or the

 

 

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1    individual and the individual's spouse in the case of a
2    joint return) is from an entity making the election under
3    paragraph (1) and the credit allowed to the partner or
4    shareholder under paragraph (4) equals or exceeds the
5    individual's liability for the tax imposed under
6    subsections (a) and (b) of Section 201 of this Act for the
7    taxable year.
8        (6) Liability for tax. Except as provided in this
9    paragraph, a partnership or Subchapter S making the
10    election under paragraph (1) is liable for the
11    entity-level tax imposed under paragraph (2). If the
12    electing partnership or corporation fails to pay the full
13    amount of tax deemed assessed under paragraph (2), the
14    partners or shareholders shall be liable to pay the tax
15    assessed (including penalties and interest). Each partner
16    or shareholder shall be liable for the unpaid assessment
17    based on the ratio of the partner's or shareholder's share
18    of the net income of the partnership over the total net
19    income of the partnership. If the partnership or
20    Subchapter S corporation fails to pay the tax assessed
21    (including penalties and interest) and thereafter an
22    amount of such tax is paid by the partners or
23    shareholders, such amount shall not be collected from the
24    partnership or corporation.
25        (7) Foreign tax. For purposes of the credit allowed
26    under Section 601(b)(3) of this Act, tax paid by a

 

 

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1    partnership or Subchapter S corporation to another state
2    which, as determined by the Department, is substantially
3    similar to the tax imposed under this subsection, shall be
4    considered tax paid by the partner or shareholder to the
5    extent that the partner's or shareholder's share of the
6    income of the partnership or Subchapter S corporation
7    allocated and apportioned to such other state bears to the
8    total income of the partnership or Subchapter S
9    corporation allocated or apportioned to such other state.
10        (8) Suspension of withholding. The provisions of
11    Section 709.5 of this Act shall not apply to a partnership
12    or Subchapter S corporation for the taxable year for which
13    an election under paragraph (1) is in effect.
14        (9) Requirement to pay estimated tax. For each taxable
15    year for which an election under paragraph (1) is in
16    effect, a partnership or Subchapter S corporation is
17    required to pay estimated tax for such taxable year under
18    Sections 803 and 804 of this Act if the amount payable as
19    estimated tax can reasonably be expected to exceed $500.
20        (10) The provisions of this subsection shall apply
21    only with respect to taxable years for which the
22    limitation on individual deductions applies under Section
23    164(b)(6) of the Internal Revenue Code.
24(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
25101-207, eff. 8-2-19; 101-363, eff. 8-9-19; 102-558, eff.
268-20-21; 102-658, eff. 8-27-21.)
 

 

 

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1    (35 ILCS 5/704A)
2    Sec. 704A. Employer's return and payment of tax withheld.
3    (a) In general, every employer who deducts and withholds
4or is required to deduct and withhold tax under this Act on or
5after January 1, 2008 shall make those payments and returns as
6provided in this Section.
7    (b) Returns. Every employer shall, in the form and manner
8required by the Department, make returns with respect to taxes
9withheld or required to be withheld under this Article 7 for
10each quarter beginning on or after January 1, 2008, on or
11before the last day of the first month following the close of
12that quarter.
13    (c) Payments. With respect to amounts withheld or required
14to be withheld on or after January 1, 2008:
15        (1) Semi-weekly payments. For each calendar year, each
16    employer who withheld or was required to withhold more
17    than $12,000 during the one-year period ending on June 30
18    of the immediately preceding calendar year, payment must
19    be made:
20            (A) on or before each Friday of the calendar year,
21        for taxes withheld or required to be withheld on the
22        immediately preceding Saturday, Sunday, Monday, or
23        Tuesday;
24            (B) on or before each Wednesday of the calendar
25        year, for taxes withheld or required to be withheld on

 

 

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1        the immediately preceding Wednesday, Thursday, or
2        Friday.
3        Beginning with calendar year 2011, payments made under
4    this paragraph (1) of subsection (c) must be made by
5    electronic funds transfer.
6        (2) Semi-weekly payments. Any employer who withholds
7    or is required to withhold more than $12,000 in any
8    quarter of a calendar year is required to make payments on
9    the dates set forth under item (1) of this subsection (c)
10    for each remaining quarter of that calendar year and for
11    the subsequent calendar year.
12        (3) Monthly payments. Each employer, other than an
13    employer described in items (1) or (2) of this subsection,
14    shall pay to the Department, on or before the 15th day of
15    each month the taxes withheld or required to be withheld
16    during the immediately preceding month.
17        (4) Payments with returns. Each employer shall pay to
18    the Department, on or before the due date for each return
19    required to be filed under this Section, any tax withheld
20    or required to be withheld during the period for which the
21    return is due and not previously paid to the Department.
22    (d) Regulatory authority. The Department may, by rule:
23        (1) Permit employers, in lieu of the requirements of
24    subsections (b) and (c), to file annual returns due on or
25    before January 31 of the year for taxes withheld or
26    required to be withheld during the previous calendar year

 

 

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1    and, if the aggregate amounts required to be withheld by
2    the employer under this Article 7 (other than amounts
3    required to be withheld under Section 709.5) do not exceed
4    $1,000 for the previous calendar year, to pay the taxes
5    required to be shown on each such return no later than the
6    due date for such return.
7        (2) Provide that any payment required to be made under
8    subsection (c)(1) or (c)(2) is deemed to be timely to the
9    extent paid by electronic funds transfer on or before the
10    due date for deposit of federal income taxes withheld
11    from, or federal employment taxes due with respect to, the
12    wages from which the Illinois taxes were withheld.
13        (3) Designate one or more depositories to which
14    payment of taxes required to be withheld under this
15    Article 7 must be paid by some or all employers.
16        (4) Increase the threshold dollar amounts at which
17    employers are required to make semi-weekly payments under
18    subsection (c)(1) or (c)(2).
19    (e) Annual return and payment. Every employer who deducts
20and withholds or is required to deduct and withhold tax from a
21person engaged in domestic service employment, as that term is
22defined in Section 3510 of the Internal Revenue Code, may
23comply with the requirements of this Section with respect to
24such employees by filing an annual return and paying the taxes
25required to be deducted and withheld on or before the 15th day
26of the fourth month following the close of the employer's

 

 

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1taxable year. The Department may allow the employer's return
2to be submitted with the employer's individual income tax
3return or to be submitted with a return due from the employer
4under Section 1400.2 of the Unemployment Insurance Act.
5    (f) Magnetic media and electronic filing. With respect to
6taxes withheld in calendar years prior to 2017, any W-2 Form
7that, under the Internal Revenue Code and regulations
8promulgated thereunder, is required to be submitted to the
9Internal Revenue Service on magnetic media or electronically
10must also be submitted to the Department on magnetic media or
11electronically for Illinois purposes, if required by the
12Department.
13    With respect to taxes withheld in 2017 and subsequent
14calendar years, the Department may, by rule, require that any
15return (including any amended return) under this Section and
16any W-2 Form that is required to be submitted to the Department
17must be submitted on magnetic media or electronically.
18    The due date for submitting W-2 Forms shall be as
19prescribed by the Department by rule.
20    (g) For amounts deducted or withheld after December 31,
212009, a taxpayer who makes an election under subsection (f) of
22Section 5-15 of the Economic Development for a Growing Economy
23Tax Credit Act for a taxable year shall be allowed a credit
24against payments due under this Section for amounts withheld
25during the first calendar year beginning after the end of that
26taxable year equal to the amount of the credit for the

 

 

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1incremental income tax attributable to full-time employees of
2the taxpayer awarded to the taxpayer by the Department of
3Commerce and Economic Opportunity under the Economic
4Development for a Growing Economy Tax Credit Act for the
5taxable year and credits not previously claimed and allowed to
6be carried forward under Section 211(4) of this Act as
7provided in subsection (f) of Section 5-15 of the Economic
8Development for a Growing Economy Tax Credit Act. The credit
9or credits may not reduce the taxpayer's obligation for any
10payment due under this Section to less than zero. If the amount
11of the credit or credits exceeds the total payments due under
12this Section with respect to amounts withheld during the
13calendar year, the excess may be carried forward and applied
14against the taxpayer's liability under this Section in the
15succeeding calendar years as allowed to be carried forward
16under paragraph (4) of Section 211 of this Act. The credit or
17credits shall be applied to the earliest year for which there
18is a tax liability. If there are credits from more than one
19taxable year that are available to offset a liability, the
20earlier credit shall be applied first. Each employer who
21deducts and withholds or is required to deduct and withhold
22tax under this Act and who retains income tax withholdings
23under subsection (f) of Section 5-15 of the Economic
24Development for a Growing Economy Tax Credit Act must make a
25return with respect to such taxes and retained amounts in the
26form and manner that the Department, by rule, requires and pay

 

 

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1to the Department or to a depositary designated by the
2Department those withheld taxes not retained by the taxpayer.
3For purposes of this subsection (g), the term taxpayer shall
4include taxpayer and members of the taxpayer's unitary
5business group as defined under paragraph (27) of subsection
6(a) of Section 1501 of this Act. This Section is exempt from
7the provisions of Section 250 of this Act. No credit awarded
8under the Economic Development for a Growing Economy Tax
9Credit Act for agreements entered into on or after January 1,
102015 may be credited against payments due under this Section.
11    (g-1) For amounts deducted or withheld after December 31,
122024, a taxpayer who makes an election under the Reimagining
13Energy and Vehicles in Illinois Act shall be allowed a credit
14against payments due under this Section for amounts withheld
15during the first quarterly reporting period beginning after
16the certificate is issued equal to the portion of the REV
17Illinois Credit attributable to the incremental income tax
18attributable to new employees and retained employees as
19certified by the Department of Commerce and Economic
20Opportunity pursuant to an agreement with the taxpayer under
21the Reimagining Energy and Vehicles in Illinois Act for the
22taxable year. The credit or credits may not reduce the
23taxpayer's obligation for any payment due under this Section
24to less than zero. If the amount of the credit or credits
25exceeds the total payments due under this Section with respect
26to amounts withheld during the quarterly reporting period, the

 

 

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1excess may be carried forward and applied against the
2taxpayer's liability under this Section in the succeeding
3quarterly reporting period as allowed to be carried forward
4under paragraph (4) of Section 211 of this Act. The credit or
5credits shall be applied to the earliest quarterly reporting
6period for which there is a tax liability. If there are credits
7from more than one quarterly reporting period that are
8available to offset a liability, the earlier credit shall be
9applied first. Each employer who deducts and withholds or is
10required to deduct and withhold tax under this Act and who
11retains income tax withholdings this subsection must make a
12return with respect to such taxes and retained amounts in the
13form and manner that the Department, by rule, requires and pay
14to the Department or to a depositary designated by the
15Department those withheld taxes not retained by the taxpayer.
16For purposes of this subsection (g-1), the term taxpayer shall
17include taxpayer and members of the taxpayer's unitary
18business group as defined under paragraph (27) of subsection
19(a) of Section 1501 of this Act. This Section is exempt from
20the provisions of Section 250 of this Act.
21    (g-2) For amounts deducted or withheld after December 31,
222024, a taxpayer who makes an election under the Manufacturing
23Illinois Chips for Real Opportunity (MICRO) Act shall be
24allowed a credit against payments due under this Section for
25amounts withheld during the first quarterly reporting period
26beginning after the certificate is issued equal to the portion

 

 

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1of the MICRO Illinois Credit attributable to the incremental
2income tax attributable to new employees and retained
3employees as certified by the Department of Commerce and
4Economic Opportunity pursuant to an agreement with the
5taxpayer under the Manufacturing Illinois Chips for Real
6Opportunity (MICRO) Act for the taxable year. The credit or
7credits may not reduce the taxpayer's obligation for any
8payment due under this Section to less than zero. If the amount
9of the credit or credits exceeds the total payments due under
10this Section with respect to amounts withheld during the
11quarterly reporting period, the excess may be carried forward
12and applied against the taxpayer's liability under this
13Section in the succeeding quarterly reporting period as
14allowed to be carried forward under paragraph (4) of Section
15211 of this Act. The credit or credits shall be applied to the
16earliest quarterly reporting period for which there is a tax
17liability. If there are credits from more than one quarterly
18reporting period that are available to offset a liability, the
19earlier credit shall be applied first. Each employer who
20deducts and withholds or is required to deduct and withhold
21tax under this Act and who retains income tax withholdings
22this subsection must make a return with respect to such taxes
23and retained amounts in the form and manner that the
24Department, by rule, requires and pay to the Department or to a
25depositary designated by the Department those withheld taxes
26not retained by the taxpayer. For purposes of this subsection,

 

 

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1the term taxpayer shall include taxpayer and members of the
2taxpayer's unitary business group as defined under paragraph
3(27) of subsection (a) of Section 1501 of this Act. This
4Section is exempt from the provisions of Section 250 of this
5Act.
6    (g-3) On and after January 1, 2024, a taxpayer who makes an
7election under subsection (k) of Section 201 of this Act for a
8taxable year shall be allowed a credit against payments due
9under this Section for amounts withheld during the first
10calendar year beginning after the last day of the taxable year
11for which the election is made. The credit against withholding
12shall be equal to the amount of the credit allowed under
13subsection (k) of Section 201 of this Act. The credit or
14credits may not reduce the taxpayer's obligation for any
15payment due under this Section to less than zero. If the amount
16of the credit or credits exceeds the total payments due under
17this Section with respect to amounts withheld during the
18calendar year, the excess may be carried forward and applied
19against the taxpayer's liability under this Section in the
20succeeding calendar years as allowed to be carried forward
21under paragraph (4) of Section 211 of this Act. The credit or
22credits shall be applied to the earliest year for which there
23is a tax liability. If there are credits from more than one
24taxable year that are available to offset a liability, the
25earlier credit shall be applied first. Each employer who
26deducts and withholds or is required to deduct and withhold

 

 

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1tax under this Act and who elects to take a credit against
2taxes imposed under this Section pursuant to subsection (k) of
3Section 201 of this Act must make a return with respect to such
4taxes and retained amounts in the form and manner that the
5Department, by rule, requires and pay to the Department or to a
6depositary designated by the Department those withheld taxes
7not retained by the taxpayer.
8    (h) An employer may claim a credit against payments due
9under this Section for amounts withheld during the first
10calendar year ending after the date on which a tax credit
11certificate was issued under Section 35 of the Small Business
12Job Creation Tax Credit Act. The credit shall be equal to the
13amount shown on the certificate, but may not reduce the
14taxpayer's obligation for any payment due under this Section
15to less than zero. If the amount of the credit exceeds the
16total payments due under this Section with respect to amounts
17withheld during the calendar year, the excess may be carried
18forward and applied against the taxpayer's liability under
19this Section in the 5 succeeding calendar years. The credit
20shall be applied to the earliest year for which there is a tax
21liability. If there are credits from more than one calendar
22year that are available to offset a liability, the earlier
23credit shall be applied first. This Section is exempt from the
24provisions of Section 250 of this Act.
25    (i) Each employer with 50 or fewer full-time equivalent
26employees during the reporting period may claim a credit

 

 

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1against the payments due under this Section for each qualified
2employee in an amount equal to the maximum credit allowable.
3The credit may be taken against payments due for reporting
4periods that begin on or after January 1, 2020, and end on or
5before December 31, 2027. An employer may not claim a credit
6for an employee who has worked fewer than 90 consecutive days
7immediately preceding the reporting period; however, such
8credits may accrue during that 90-day period and be claimed
9against payments under this Section for future reporting
10periods after the employee has worked for the employer at
11least 90 consecutive days. In no event may the credit exceed
12the employer's liability for the reporting period. Each
13employer who deducts and withholds or is required to deduct
14and withhold tax under this Act and who retains income tax
15withholdings under this subsection must make a return with
16respect to such taxes and retained amounts in the form and
17manner that the Department, by rule, requires and pay to the
18Department or to a depositary designated by the Department
19those withheld taxes not retained by the employer.
20    For each reporting period, the employer may not claim a
21credit or credits for more employees than the number of
22employees making less than the minimum or reduced wage for the
23current calendar year during the last reporting period of the
24preceding calendar year. Notwithstanding any other provision
25of this subsection, an employer shall not be eligible for
26credits for a reporting period unless the average wage paid by

 

 

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1the employer per employee for all employees making less than
2$55,000 during the reporting period is greater than the
3average wage paid by the employer per employee for all
4employees making less than $55,000 during the same reporting
5period of the prior calendar year.
6    For purposes of this subsection (i):
7    "Compensation paid in Illinois" has the meaning ascribed
8to that term under Section 304(a)(2)(B) of this Act.
9    "Employer" and "employee" have the meaning ascribed to
10those terms in the Minimum Wage Law, except that "employee"
11also includes employees who work for an employer with fewer
12than 4 employees. Employers that operate more than one
13establishment pursuant to a franchise agreement or that
14constitute members of a unitary business group shall aggregate
15their employees for purposes of determining eligibility for
16the credit.
17    "Full-time equivalent employees" means the ratio of the
18number of paid hours during the reporting period and the
19number of working hours in that period.
20    "Maximum credit" means the percentage listed below of the
21difference between the amount of compensation paid in Illinois
22to employees who are paid not more than the required minimum
23wage reduced by the amount of compensation paid in Illinois to
24employees who were paid less than the current required minimum
25wage during the reporting period prior to each increase in the
26required minimum wage on January 1. If an employer pays an

 

 

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1employee more than the required minimum wage and that employee
2previously earned less than the required minimum wage, the
3employer may include the portion that does not exceed the
4required minimum wage as compensation paid in Illinois to
5employees who are paid not more than the required minimum
6wage.
7        (1) 25% for reporting periods beginning on or after
8    January 1, 2020 and ending on or before December 31, 2020;
9        (2) 21% for reporting periods beginning on or after
10    January 1, 2021 and ending on or before December 31, 2021;
11        (3) 17% for reporting periods beginning on or after
12    January 1, 2022 and ending on or before December 31, 2022;
13        (4) 13% for reporting periods beginning on or after
14    January 1, 2023 and ending on or before December 31, 2023;
15        (5) 9% for reporting periods beginning on or after
16    January 1, 2024 and ending on or before December 31, 2024;
17        (6) 5% for reporting periods beginning on or after
18    January 1, 2025 and ending on or before December 31, 2025.
19    The amount computed under this subsection may continue to
20be claimed for reporting periods beginning on or after January
211, 2026 and:
22        (A) ending on or before December 31, 2026 for
23    employers with more than 5 employees; or
24        (B) ending on or before December 31, 2027 for
25    employers with no more than 5 employees.
26    "Qualified employee" means an employee who is paid not

 

 

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1more than the required minimum wage and has an average wage
2paid per hour by the employer during the reporting period
3equal to or greater than his or her average wage paid per hour
4by the employer during each reporting period for the
5immediately preceding 12 months. A new qualified employee is
6deemed to have earned the required minimum wage in the
7preceding reporting period.
8    "Reporting period" means the quarter for which a return is
9required to be filed under subsection (b) of this Section.
10    (j) For reporting periods beginning on or after January 1,
112023, if a private employer grants all of its employees the
12option of taking a paid leave of absence of at least 30 days
13for the purpose of serving as an organ donor or bone marrow
14donor, then the private employer may take a credit against the
15payments due under this Section in an amount equal to the
16amount withheld under this Section with respect to wages paid
17while the employee is on organ donation leave, not to exceed
18$1,000 in withholdings for each employee who takes organ
19donation leave. To be eligible for the credit, such a leave of
20absence must be taken without loss of pay, vacation time,
21compensatory time, personal days, or sick time for at least
22the first 30 days of the leave of absence. The private employer
23shall adopt rules governing organ donation leave, including
24rules that (i) establish conditions and procedures for
25requesting and approving leave and (ii) require medical
26documentation of the proposed organ or bone marrow donation

 

 

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1before leave is approved by the private employer. A private
2employer must provide, in the manner required by the
3Department, documentation from the employee's medical
4provider, which the private employer receives from the
5employee, that verifies the employee's organ donation. The
6private employer must also provide, in the manner required by
7the Department, documentation that shows that a qualifying
8organ donor leave policy was in place and offered to all
9qualifying employees at the time the leave was taken. For the
10private employer to receive the tax credit, the employee
11taking organ donor leave must allow for the applicable medical
12records to be disclosed to the Department. If the private
13employer cannot provide the required documentation to the
14Department, then the private employer is ineligible for the
15credit under this Section. A private employer must also
16provide, in the form required by the Department, any
17additional documentation or information required by the
18Department to administer the credit under this Section. The
19credit under this subsection (j) shall be taken within one
20year after the date upon which the organ donation leave
21begins. If the leave taken spans into a second tax year, the
22employer qualifies for the allowable credit in the later of
23the 2 years. If the amount of credit exceeds the tax liability
24for the year, the excess may be carried and applied to the tax
25liability for the 3 taxable years following the excess credit
26year. The tax credit shall be applied to the earliest year for

 

 

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1which there is a tax liability. If there are credits for more
2than one year that are available to offset liability, the
3earlier credit shall be applied first.
4    Nothing in this subsection (j) prohibits a private
5employer from providing an unpaid leave of absence to its
6employees for the purpose of serving as an organ donor or bone
7marrow donor; however, if the employer's policy provides for
8fewer than 30 days of paid leave for organ or bone marrow
9donation, then the employer shall not be eligible for the
10credit under this Section.
11    As used in this subsection (j):
12    "Organ" means any biological tissue of the human body that
13may be donated by a living donor, including, but not limited
14to, the kidney, liver, lung, pancreas, intestine, bone, skin,
15or any subpart of those organs.
16    "Organ donor" means a person from whose body an organ is
17taken to be transferred to the body of another person.
18    "Private employer" means a sole proprietorship,
19corporation, partnership, limited liability company, or other
20entity with one or more employees. "Private employer" does not
21include a municipality, county, State agency, or other public
22employer.
23    This subsection (j) is exempt from the provisions of
24Section 250 of this Act.
25(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
26102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,

 

 

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1Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
22-3-23.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.".