97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5803

 

Introduced 2/16/2012, by Rep. Dwight Kay

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/223 new

    Amends the Illinois Income Tax Act. Provides that a taxpayer who owns and operates a business in Illinois shall be allowed a credit 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 223 as follows:
 
6    (35 ILCS 5/223 new)
7    Sec. 223. Job creation credit. For taxable years beginning
8on or after January 1, 2012, 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 if the employee
15remains employed by the employer on the last day of that
16taxable year, and an amount equal to $1,250 may be allowed as a
17credit for the following taxable year if the employee remains
18employed by the employer on the last day of that taxable year.
19A credit under this Section may not exceed the taxpayer's
20Illinois income tax liability for the taxable year. If the
21amount of the credit exceeds the tax liability for the year,
22the excess may be carried forward and applied to the tax
23liability of the 5 taxable years following the excess credit

 

 

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1year. The credit shall be applied to the earliest year for
2which there is a tax liability. If there are credits from more
3than one taxable year that are available to offset a liability,
4the earlier credit shall be applied first. In the case of a
5partnership or Subchapter S Corporation, the credit is allowed
6to the partners or shareholders in accordance with the
7determination of income and distributive share of income under
8Sections 702 and 704 and Subchapter S of the Internal Revenue
9Code. This Section is exempt from the provisions of Section 250
10of this Act.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.