97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5804

 

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

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/223 new

    Amends the Illinois Income Tax Act. Provides that each taxpayer is allowed a credit against the tax imposed under the Act in an amount equal to a percentage of wages paid to an employee who was drawing unemployment compensation at the time of hire and who has been employed by the taxpayer as a full-time employee for a period of 12 consecutive months at any point during the taxable year.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5804LRB097 19766 HLH 65030 b

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. Credit for wages paid to recently unemployed
8persons.
9    (a) Each taxpayer is allowed a credit against the tax
10imposed by subsections (a) and (b) of Section 201 in an amount
11equal to a percentage of wages paid to an employee who, as
12certified by the Illinois Department of Employment Security,
13was drawing unemployment compensation, or whose unemployment
14benefits had expired, at the time of hire and who has been
15employed by the taxpayer as a full-time employee for a period
16of 12 consecutive months at any point during the taxable year.
17The credit shall be calculated as follows:
18        (1) fifty percent of wages paid if the employee's wages
19    are not less than $14 per hour at any point during the
20    taxable year;
21        (2) forty percent of wages paid if the employee's wages
22    are less than $14 per hour but not less than $12 per hour
23    at any point during the taxable year;

 

 

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1        (3) thirty-five percent of wages paid if the employee's
2    wages are less than $12 per hour but not less than $10 per
3    hour at any point during the taxable year; and
4        (4) zero percent of wages paid if the employee's wages
5    are less than $10 per hour at any point during the taxable
6    year.
7    (b) For purposes of this Section, "full-time employee"
8means an employee who works no less than 37.5 hours per week.
9    (c) The tax credit may not reduce the taxpayer's liability
10to less than zero. If the amount of the credit exceeds the
11income tax liability for the applicable tax year, then the
12excess credit may not be refunded to, or transferred by, the
13taxpayer.
14    (d) The tax credit may be claimed for only one taxable
15year.
16    (e) Partners, shareholders of subchapter S corporations,
17and owners of limited liability companies (if the limited
18liability company is treated as a partnership for purposes of
19federal and State income taxation) are entitled to a credit
20under this Section to be determined in accordance with the
21determination of income and distributive share of income under
22Sections 702 and 703 and subchapter S of the Internal Revenue
23Code.