98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5963

 

Introduced , by Rep. John D. Anthony

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 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.


LRB098 18902 HLH 54049 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5963LRB098 18902 HLH 54049 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. 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 the 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) 50% of wages paid if the employee's wages are not
19    less than $14 per hour at any point during the taxable
20    year;
21        (2) 40% of wages paid if the employee's wages are less
22    than $14 per hour but not less than $12 per hour at any
23    point during the taxable year;

 

 

HB5963- 2 -LRB098 18902 HLH 54049 b

1        (3) 35% of wages paid if the employee's wages are less
2    than $12 per hour but not less than $10 per hour at any
3    point during the taxable year; and
4        (4) the taxpayer is not entitled to a credit under this
5    Section if the employee's wages are less than $10 per hour
6    at any point during the taxable 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.