97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1867

 

Introduced 2/9/2011, by Sen. Carole Pankau

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/221 new

    Amends the Illinois Income Tax Act. Creates a credit for employers of individuals who were receiving unemployment benefits from the State for a period of at least 120 consecutive days immediately prior to the employee's date of hire with the taxpayer. Sets forth the amount of the credit based on the number of months during which the individual is employed by the taxpayer. 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. Employers of workers who received unemployment
8benefits. For taxable years beginning on or after January 1,
92012 and ending on or before December 31, 2014, each taxpayer
10that employs an individual who was receiving unemployment
11benefits from the State for a period of at least 120
12consecutive days immediately prior to the employee's date of
13hire with the taxpayer is entitled to a credit against the tax
14imposed by subsections (a) and (b) of Section 201. The credit
15shall be calculated as follows:
16        (1) if the employee is employed by the taxpayer for a
17    period of 3 months or less on the last day of the taxable
18    year, the credit shall be in an amount equal to 100% of the
19    amount that the employee received in unemployment
20    insurance benefits from the State of Illinois during the
21    last 30 days in which he or she received those benefits,
22    multiplied by the number of months in which the employee is
23    employed by the taxpayer;

 

 

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1        (2) if the employee is employed by the taxpayer for a
2    period of 4 to 6 months on the last day of the taxable
3    year, the credit shall be in an amount equal to (i) the
4    amount calculated under item (1) for each of the first 3
5    months, plus (ii) an amount equal to 80% of the amount that
6    the employee received in unemployment insurance benefits
7    from the State of Illinois during the last 30 days in which
8    he or she received those benefits for each month of
9    employment after the first 3 months;
10        (3) if the employee is employed by the taxpayer for a
11    period of 7 to 12 months on the last day of the taxable
12    year, the credit shall be in an amount equal to (i) the
13    amount calculated under items (1) and (2) for each of the
14    first 6 months, plus (ii) an amount equal to 60% of the
15    amount that the employee received in unemployment
16    insurance benefits from the State of Illinois during the
17    last 30 days in which he or she received those benefits for
18    each month of employment after the first 6 months;
19        (4) if the employee is employed by the taxpayer for a
20    period of 13 to 24 months on the last day of the taxable
21    year, an amount equal to the taxpayer's unemployment
22    insurance contributions for that employee during the
23    taxable year, but not more than 60% of the amount that the
24    employee received in unemployment insurance benefits from
25    the State of Illinois during the last 30 days in which he
26    or she received those benefits, multiplied by the number of

 

 

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1    months of employment after the first 12 months.
2    The tax credit may not reduce the taxpayer's liability to
3less than zero. If the amount of the tax credit exceeds the tax
4liability for the year, the excess may be carried forward and
5applied to the tax liability of the 5 taxable years following
6the excess credit year. The credit must be applied to the
7earliest year for which there is a tax liability. If there are
8credits from more than one tax year that are available to
9offset a liability, then the earlier credit must be applied
10first.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.