96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0390

 

Introduced 2/3/2009, by Rep. David Reis

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/218 new

    Amends the Illinois Income Tax Act. Authorizes a credit to taxpayers for 10% of stipends or salaries paid to qualified college interns. Limits the credit to stipends and salaries paid to 5 interns each year, and limits total credits to $3,000 for all years combined. Defines a "qualified college intern". Provides that the credit may not reduce the taxpayer's liability to less than zero and may not be carried forward or back. Exempt from the Act's sunset provisions. Effective immediately.


LRB096 04418 RCE 14469 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0390 LRB096 04418 RCE 14469 b

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 adding
5 Section 218 as follows:
 
6     (35 ILCS 5/218 new)
7     Sec. 218. Credit for internship employment.
8     (a) For each taxable year ending on or after December 31,
9 2009, 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 10% of the stipend or salary paid by the
12 taxpayer to up to 5 qualified college interns during the
13 taxable year, but not to exceed $3,000 in total credits under
14 this Section for all taxable years combined. For partners,
15 shareholders of Subchapter S corporations, and owners of
16 limited liability companies, if the liability company is
17 treated as a partnership for purposes of federal and State
18 income taxation, there shall be allowed a credit under this
19 Section to be determined in accordance with the determination
20 of income and distributive share of income under Sections 702
21 and 704 and Subchapter S of the Internal Revenue Code.
22     (b) For purposes of this Section, "qualified college
23 intern" means an enrolled student in an institution of higher

 

 

HB0390 - 2 - LRB096 04418 RCE 14469 b

1 education or vocational technical education program (i) who is
2 seeking a degree or certification of completion in a major
3 field of study closely related to the work experience performed
4 for the taxpayer, (ii) whose internship is taken for academic
5 credit or counts toward the completion of a vocational
6 technical education program, (iii) who is supervised and
7 evaluated by the taxpayer, and (iv) whose position is located
8 in Illinois.
9     (c) In no event shall a credit under this Section reduce
10 the taxpayer's liability to less than zero. If the amount of
11 the credit exceeds the tax liability for the year, the excess
12 may not be carried forward or carried back.
13     (d) This Section is exempt from the provisions of Section
14 250.
 
15     Section 99. Effective date. This Act takes effect upon
16 becoming law.