94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3862

 

Introduced 2/25/2005, by Rep. Eileen Lyons - David R. Leitch - Sidney H. Mathias

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/210.5

    Amends the Illinois Income Tax Act. Removes language terminating the tax credit for start-up costs for providing employee child care. Exempts the credit from the sunset provisions of the Act.


LRB094 04064 BDD 34084 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3862 LRB094 04064 BDD 34084 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 against
9 the tax imposed by subsections (a) and (b) of Section 201 in an
10 amount equal to (i) for taxable years ending on or after
11 December 31, 2000 and on or before December 31, 2004, 30% of
12 the start-up costs expended by the corporate taxpayer to
13 provide a child care facility for the children of its employees
14 and (ii) for taxable years ending on or after December 31,
15 2000, 5% of the annual amount paid by the corporate taxpayer in
16 providing the child care facility for the children of its
17 employees. The provisions of Section 250 do not apply to the
18 credits allowed under this Section 5% credit under item (ii) of
19 this subsection. If the 5% credit authorized under item (ii) of
20 this subsection is claimed, the 5% credit authorized under
21 Section 210 cannot also be claimed.
22     To receive the tax credit under this Section a corporate
23 taxpayer may either independently provide and operate a child
24 care facility for the children of its employees or it may join
25 in a partnership with one or more other corporations to jointly
26 provide and operate a child care facility for the children of
27 employees of the corporations in the partnership.
28     (b) The tax credit may not reduce the taxpayer's liability
29 to less than zero. If the amount of the tax credit exceeds the
30 tax liability for the year, the excess may be carried forward
31 and applied to the tax liability of the 5 taxable years
32 following the excess credit year. The credit must be applied to

 

 

HB3862 - 2 - LRB094 04064 BDD 34084 b

1 the earliest year for which there is a tax liability. If there
2 are credits from more than one tax year that are available to
3 offset a liability, then the earlier credit must be applied
4 first.
5     (c) As used in this Section, "start-up costs" means
6 planning, site-preparation, construction, renovation, or
7 acquisition of a child care facility. As used in this Section,
8 "child care facility" is limited to a child care facility
9 located in Illinois.
10     (d) A corporate taxpayer claiming the credit provided by
11 this Section shall maintain and record such information as the
12 Department may require by rule regarding the child care
13 facility for which the credit is claimed.
14 (Source: P.A. 91-930, eff. 12-15-00.)
 
15     Section 99. Effective date. This Act takes effect upon
16 becoming law.