HB4128ham001 103RD GENERAL ASSEMBLY

Rep. Kevin Schmidt

Filed: 3/12/2024

10300HB4128ham001 LRB103 33844 HLH 64800 a

AMENDMENT TO HOUSE BILL 4128

AMENDMENT NO. ______. Amend House Bill 4128 by replacing everything after the enacting clause with the following:

"ARTICLE 1. VETERANS DAY PAID LEAVE ACT

Section 1-1. Short title. This Act may be cited as the Veterans Day Paid Leave Act.

Section 1-5. Definitions. As used in this Act:

"Employer" means any public or private employer with a place of business in this State.

"Veteran" means an Illinois resident who: (i) is employed at a place of business in this State; (ii) has served as a member of the United States Armed Forces on active duty or State active duty, as a member of the Illinois National Guard, or as a member of the United States Reserve Forces; and (iii) was discharged or separated under honorable conditions.

"Veterans Day" means the eleventh day of November of each year.

Section 1-10. Paid leave for Veterans Day.

(a) Notwithstanding any other provision of law, on and after January 1, 2025, each employer shall provide each employee who is a veteran with one paid day off each year on Veterans Day if the employee would otherwise be required to work on that day. The employee must provide the employer with at least 30 calendar days' notice that the employee intends to take time off on Veterans Day. The employee must also provide the employer with documentation verifying that the employee is a veteran.

(b) If the employer is unable to provide time off to each veteran, as provided in subsection (a), without experiencing significant economic or operational disruption, then the employer may deny such a time off request, but only to the extent necessary to avoid the significant economic or operational disruption. If the employer denies a time off request under this subsection, the employer must notify the employee at least 14 calendar days prior to Veterans Day that his or her request has been denied and must make a good faith effort to provide the employee with a substitute day on which the employee may receive paid time off. If the veteran is employed by a public employer as a firefighter, police officer, emergency medical technician, or paramedic, then, in lieu of providing the veteran with a substitute day off, the public employer may require the veteran to work on Veterans Day if the employer compensates the veteran at the rate of at least 2 times his or her hourly wages on that day.

ARTICLE 5. INCOME TAX PROVISIONS

Section 5-5. The Illinois Income Tax Act is amended by adding Section 241 as follows:

(35 ILCS 5/241 new)

Sec. 241. Wages paid to veterans under the Veterans Day Paid Leave Act.

(a) For each taxable year beginning on or after January 1, 2025, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 100% of the wages paid by the taxpayer during the taxable year to veterans as a result of the paid day off required under the Veterans Day Paid Leave Act. For partners of partnerships and shareholders of Subchapter S corporations, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(b) A taxpayer claiming the credit provided by this Section shall maintain and record such information as the Department may require by rule regarding the credit claimed under this Section.

(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(d) This Section is exempt from the provisions of Section 250.

ARTICLE 99. EFFECTIVE DATE

Section 99-99. Effective date. This Act takes effect upon becoming law.".