Revenue & Finance Committee

Filed: 4/30/2009

 

 


 

 


 
09600SB2046ham001 LRB096 11293 HLH 25688 a

1
AMENDMENT TO SENATE BILL 2046

2     AMENDMENT NO. ______. Amend Senate Bill 2046 by replacing
3 everything after the enacting clause with the following:
 
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 and ending on or before December 30, 2010, each taxpayer
10 is entitled to a credit against the tax imposed by subsections
11 (a) and (b) of Section 201 of this Act in an amount equal to 5%,
12 but in no event to exceed $600, of the gross wages paid by the
13 taxpayer to a qualified veteran in the course of that veteran's
14 sustained employment during the taxable year. For each taxable
15 year beginning on or after January 1, 2010, each taxpayer is
16 entitled to a credit against the tax imposed by subsections (a)

 

 

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1 and (b) of Section 201 of this Act in an amount equal to 10%,
2 but in no event to exceed $1,200, of the gross wages paid by
3 the taxpayer to a qualified veteran in the course of that
4 veteran's sustained employment during the taxable year. For
5 partners, shareholders of Subchapter S corporations, and
6 owners of limited liability companies, if the liability company
7 is treated as a partnership for purposes of federal and State
8 income taxation, there shall be allowed a credit under this
9 Section to be determined in accordance with the determination
10 of income and distributive share of income under Sections 702
11 and 704 and Subchapter S of the Internal Revenue Code.
12     (b) For purposes of this Section:
13     "Qualified veteran" means an Illinois resident who: (i) was
14 a member of the Armed Forces of the United States, a member of
15 the Illinois National Guard, or a member of any reserve
16 component of the Armed Forces of the United States; (ii) served
17 on active duty in connection with Operation Desert Storm,
18 Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
19 has provided, to the taxpayer, documentation showing that he or
20 she was honorably discharged; and (iv) was initially hired by
21 the taxpayer on or after January 1, 2007.
22     "Sustained employment" means a period of employment that is
23 not less than 185 days during the taxable year.
24     (c) In no event shall a credit under this Section reduce
25 the taxpayer's liability to less than zero. If the amount of
26 the credit exceeds the tax liability for the year, the excess

 

 

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1 may be carried forward and applied to the tax liability of the
2 5 taxable years following the excess credit year. The tax
3 credit shall be applied to the earliest year for which there is
4 a tax liability. If there are credits for more than one year
5 that are available to offset a liability, the earlier credit
6 shall be applied first.
7 (Source: P.A. 94-1067, eff. 8-1-06.)".