HB5248 103RD GENERAL ASSEMBLY

LRB103 39003 HLH 69140 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5248

Introduced 2/9/2024, by Rep. Edgar Gonzalez, Jr.

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Provides that a qualified business is entitled to a credit in an amount equal to 75% of the amount expended by the qualified business during the taxable year on menstrual hygiene products that are provided for use by the public at no cost at a business location of the qualified business. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

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

(35 ILCS 5/241 new)

Sec. 241. Menstrual hygiene product tax credit.

(a) For tax years beginning on or after January 1, 2025, a qualified business is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 75% of the amount expended by the qualified business during the taxable year on menstrual hygiene products that are provided for use by the public at no cost at a business location of the qualified business. In no event shall a taxpayer be allowed to claim a tax credit under this Section in excess of $50,000 per taxable year.

(b) 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 next immediately succeeding taxable year. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first. Tax credits issued under this Section shall not be assigned, transferred, or sold.

(c) Except for any excess credit which is carried over pursuant to subsection (b) of this Section, a taxpayer shall not be allowed to claim a tax credit unless the total amount of the taxpayer's expenditure on qualifying menstrual products is at least $100 during the taxable year.

(d) As used in this Section:

"Full-time employee" means an individual who is employed for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment.

"Menstrual hygiene product" means tampons and sanitary napkins for use in connection with the menstrual cycle.

"Qualified business" means a business, including, but not limited to, a business that is an S corporation or a limited liability company, that employs fewer than 100 full-time employees.

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