96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0003

 

Introduced 1/14/2009, by Rep. Mike Bost

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/217

    Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also applies to wages paid to employees who are currently a member of the Illinois National Guard or a member of any reserve component of the Armed Forces of the United States. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning revenue.
 
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 217 as follows:
 
6     (35 ILCS 5/217)
7     Sec. 217. Credit for wages paid to qualified veterans.
8     (a) For each taxable year beginning on or after January 1,
9 2007, each taxpayer is entitled to a credit against the tax
10 imposed by subsections (a) and (b) of Section 201 of this Act
11 in an amount equal to 5%, but in no event to exceed $600, of the
12 gross wages paid by the taxpayer to a qualified veteran in the
13 course of that veteran's sustained employment during the
14 taxable year. For partners, shareholders of Subchapter S
15 corporations, and owners of limited liability companies, if the
16 liability company is treated as a partnership for purposes of
17 federal and State income taxation, there shall be allowed a
18 credit under this Section to be determined in accordance with
19 the determination of income and distributive share of income
20 under Sections 702 and 704 and Subchapter S of the Internal
21 Revenue Code.
22     (b) For purposes of this Section:
23     "Qualified veteran" means an Illinois resident who was

 

 

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1 initially hired by the taxpayer on or after January 1, 2007
2 and:
3         (1) who is currently a member of the Illinois National
4     Guard or a member of any reserve component of the Armed
5     Forces of the United States; or
6         (2) who: (i) was a member of the Armed Forces of the
7     United States, a member of the Illinois National Guard, or
8     a member of any reserve component of the Armed Forces of
9     the United States; (ii) served on active duty in connection
10     with Operation Desert Storm, Operation Enduring Freedom,
11     or Operation Iraqi Freedom; and (iii) has provided, to the
12     taxpayer, documentation showing that he or she was
13     honorably discharged; and (iv) was initially hired by the
14     taxpayer on or after January 1, 2007.
15     "Sustained employment" means a period of employment that is
16 not less than 185 days during the taxable year.
17     (c) In no event shall a credit under this Section reduce
18 the taxpayer's liability to less than zero. If the amount of
19 the credit exceeds the tax liability for the year, the excess
20 may be carried forward and applied to the tax liability of the
21 5 taxable years following the excess credit year. The tax
22 credit shall be applied to the earliest year for which there is
23 a tax liability. If there are credits for more than one year
24 that are available to offset a liability, the earlier credit
25 shall be applied first.
26 (Source: P.A. 94-1067, eff. 8-1-06.)
 

 

 

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