SB2046 Enrolled

LRB096 11293 HLH 21722 b






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    AN ACT concerning revenue.

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



 
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    Section 5. The Illinois Income Tax Act is amended  by 
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changing Section 217 as follows:
 
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    (35 ILCS 5/217)

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    Sec. 217. Credit for wages paid to qualified veterans.
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    (a) For each taxable year beginning on or after January 1, 
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2007 and ending on or before December 30, 2010, each taxpayer 
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is entitled to a credit against the tax imposed by subsections 
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(a) and (b) of Section 201 of this Act in an amount equal to 5%, 
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but in no event to exceed $600, of the gross wages paid by the 
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taxpayer to a qualified veteran in the course of that veteran's 
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sustained employment during the taxable year. For each taxable 
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year beginning on or after January 1, 2010, each taxpayer is 
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entitled to a credit against the tax imposed by subsections (a) 
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and (b) of Section 201 of this Act in an amount equal to 10%, 
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but in no event to exceed $1,200, of the gross wages paid by 
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the taxpayer to a qualified veteran in the course of that 
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veteran's sustained employment during the taxable year. For 
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partners, shareholders of Subchapter S corporations, and 
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owners of limited liability companies, if the liability company 
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is treated as a partnership for purposes of federal and State 
 


 






SB2046 Enrolled
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LRB096 11293 HLH 21722 b




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income taxation, there shall be allowed a credit under this 
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Section to be determined in accordance with the determination 
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of income and distributive share of income under Sections 702 
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and 704 and Subchapter S of the Internal Revenue Code.
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    (b) For purposes of this Section:
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    "Qualified veteran" means an Illinois resident who: (i) was 
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a member of the Armed Forces of the United States, a member of 
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the Illinois National Guard, or a member of any reserve 
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component of the Armed Forces of the United States; (ii) served 
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on active duty in connection with Operation Desert Storm, 
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Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) 
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has provided, to the taxpayer, documentation showing that he or 
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she was honorably discharged; and (iv) was initially hired by 
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the taxpayer on or after January 1, 2007.
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    "Sustained employment" means a period of employment that is 
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not less than 185 days during the taxable year.
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    (c) In no event shall a credit under this Section reduce 
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the taxpayer's liability to less than zero. If the amount of 
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the credit exceeds the tax liability for the year, the excess 
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may be carried forward and applied to the tax liability of the 
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5 taxable years following the excess credit year. The tax 
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credit shall be applied to the earliest year for which there is 
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a tax liability. If there are credits for more than one year 
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that are available to offset a liability, the earlier credit 
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shall be applied first.

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(Source: P.A. 94-1067, eff. 8-1-06.)