093_HB2876

 
                                     LRB093 04465 SJM 04517 b

 1        AN ACT concerning income tax.

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

 4        Section 5.  The Illinois Income Tax  Act  is  amended  by
 5    changing Section 210.5 as follows:

 6        (35 ILCS 5/210.5)
 7        Sec. 210.5.  Tax credit for employee child care.
 8        (a)  Each  corporate  taxpayer  is  entitled  to a credit
 9    against the tax imposed by subsections (a) and (b) of Section
10    201 in an amount equal to (i) for taxable years ending on  or
11    after  December  31, 2000 and on or before December 31, 2004,
12    30% of the start-up costs expended by the corporate  taxpayer
13    to  provide  a  child  care  facility for the children of its
14    employees and (ii) for  taxable  years  ending  on  or  after
15    December  31,  2000,  5%  of  the  annual  amount paid by the
16    corporate taxpayer in providing the child care  facility  for
17    the children of its employees.  The provisions of Section 250
18    do  not  apply  to  the credits allowed under this Section 5%
19    credit under item (ii) of this subsection.  If the 5%  credit
20    authorized under item (ii) of this subsection is claimed, the
21    5%  credit  authorized  under  Section  210  cannot  also  be
22    claimed.
23        To  receive the tax credit under this Section a corporate
24    taxpayer may either independently provide and operate a child
25    care facility for the children of its  employees  or  it  may
26    join  in a partnership with one or more other corporations to
27    jointly provide and operate a child  care  facility  for  the
28    children of employees of the corporations in the partnership.
29        (b)  The   tax  credit  may  not  reduce  the  taxpayer's
30    liability to less than zero.  If the amount of the tax credit
31    exceeds the tax liability for the year,  the  excess  may  be
 
                            -2-      LRB093 04465 SJM 04517 b
 1    carried  forward  and  applied  to the tax liability of the 5
 2    taxable years following the excess credit year.   The  credit
 3    must be applied to the earliest year for which there is a tax
 4    liability.   If there are credits from more than one tax year
 5    that are available to offset a liability,  then  the  earlier
 6    credit must be applied first.
 7        (c)  As  used  in  this  Section,  "start-up costs" means
 8    planning,  site-preparation,  construction,  renovation,   or
 9    acquisition  of  a  child  care  facility.   As  used in this
10    Section, "child care facility" is limited  to  a  child  care
11    facility located in Illinois.
12        (d)  A corporate taxpayer claiming the credit provided by
13    this  Section  shall  maintain and record such information as
14    the Department may require by rule regarding the  child  care
15    facility for which the credit is claimed.
16    (Source: P.A. 91-930, eff. 12-15-00.)