Illinois General Assembly - Full Text of HB3017

LRB104 11482 HLH 21571 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3017

Introduced 2/6/2025, by Rep. Dan Swanson

SYNOPSIS AS INTRODUCED:

35 ILCS 5/217.2 new

Amends the Illinois Income Tax Act. Creates an income tax credit for each employer taxpayer in an amount equal to $5,000 for each military spouse hired by the taxpayer during the taxable year. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 217.2 as follows:

(35 ILCS 5/217.2 new)

Sec. 217.2. Credit for wages paid to a military spouse.

(a) For taxable years ending on or after December 31, 2026, each taxpayer that is an employer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to $5,000 for each military spouse hired by the taxpayer during the taxable year.

(b) For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for the purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(d) As used in this Section, "military spouse" means the spouse of an active duty member of the Armed Forces of the United States, a member of the Illinois National Guard, or a member of any reserve component of the Armed Forces of the United States.

(e) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.