97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3574

 

Introduced 2/24/2011, by Rep. Thomas Morrison - Dwight Kay - Adam Brown - Richard Morthland - John D. Cavaletto, et al.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/221 new

    Amends the Illinois Income Tax Act. Provides that a taxpayer who owns and operates a business in Illinois shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of $3,750 per employee hired by the taxpayer and retained for 2 years. Provides that the credit may be allowed in the amount of $2,500 in the year the employee is hired and in the amount of $1,250 in the second year of employment. Provides that if the amount of the credit exceeds the taxpayer's liability for the taxable year, the excess may be carried forward and applied to the tax liability of the next 5 years. 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,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 221 as follows:
 
6    (35 ILCS 5/221 new)
7    Sec. 221. Job creation credit. For taxable years beginning
8on or after January 1, 2011, each taxpayer who owns and
9operates a business in Illinois shall be allowed a credit
10against the tax imposed by subsections (a) and (b) of Section
11201 of this Act in the amount of $3,750 per employee hired by
12the taxpayer and retained for 2 years. Of the $3,750 amount, an
13amount equal to $2,500 may be allowed as a credit for the
14taxable year in which the employee was hired, and an amount
15equal to $1,250 may be allowed as a credit for the following
16taxable year. A credit under this Section may not exceed the
17taxpayer's Illinois income tax liability for the taxable year.
18If the amount of the credit exceeds the tax liability for the
19year, the excess may be carried forward and applied to the tax
20liability of the 5 taxable years following the excess credit
21year. The credit shall be applied to the earliest year for
22which there is a tax liability. If there are credits from more
23than one taxable year that are available to offset a liability,

 

 

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1the earlier credit shall be applied first. In the case of a
2partnership or Subchapter S Corporation, the credit is allowed
3to the partners or shareholders in accordance with the
4determination of income and distributive share of income under
5Sections 702 and 704 and Subchapter S of the Internal Revenue
6Code. This Section is exempt from the provisions of Section 250
7of this Act.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.