98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3144

 

Introduced , by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2014, each business that is first located in the State during the taxable year is entitled to a credit in an amount equal to 10% of the wages paid to qualified employees during the taxpayer's first year of business in the State. Provides that the term "qualified employee" means a full-time employee of the taxpayer who is a resident of the State and not more than a 5% shareholder, partner, member, or owner of the taxpayer. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3144LRB098 07398 HLH 37462 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 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. New business credit.
8    (a) For taxable years beginning on or after January 1,
92014, each business that is first located in the State during
10the taxable year is entitled to a credit against the tax tax
11imposed under subsections (a) and (b) of this Section in an
12amount equal to 10% of the wages paid to qualified employees
13during the taxpayer's first year of business in the State. For
14the purposes of this Section, "qualified employee" means a
15full-time employee of the taxpayer who is a resident of the
16State and not more than a 5% shareholder, partner, member, or
17owner of the taxpayer.
18    (b) The tax credit may not reduce the taxpayer's liability
19to less than zero. If the amount of the tax credit exceeds the
20tax liability for the year, the excess may be carried forward
21and applied to the tax liability of the 5 taxable years
22following the excess credit year. The credit must be applied to
23the earliest year for which there is a tax liability. If there

 

 

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1are credits from more than one tax year that are available to
2offset a liability, then the earlier credit must be applied
3first.
4    (c) If the Taxpayer is a partnership or Subchapter S
5corporation, the credit shall be allowed to the partners or
6shareholders in accordance with the determination of income and
7distributive share of income under Sections 702 and 704 and
8subchapter S of the Internal Revenue Code.
9    (d) This Section is exempt from the provisions of Section
10250.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.