Illinois General Assembly - Full Text of HB4128
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Full Text of HB4128  103rd General Assembly




State of Illinois
2023 and 2024


Introduced , by Rep. Kevin Schmidt


New Act
35 ILCS 5/241 new

    Creates the Veterans Day Paid Leave Act. On and after January 1, 2025, requires each employer to provide each employee who is a veteran with a paid day off on Veterans Day if the employee would otherwise be required to work on that day. Provides that the employee must provide notice to the employer that he or she intends to take time off on Veterans Day and must provide the employer with documentation verifying that he or she is a veteran. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 100% of the wages paid by the taxpayer to a veteran as a result of the paid day off required under the Veterans Day Paid Leave Act. Effective immediately.

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HB4128LRB103 33844 HLH 63659 b

1    AN ACT concerning employment.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:

5    Section 1-1. Short title. This Act may be cited as the
6Veterans Day Paid Leave Act.
7    Section 1-5. Definitions. As used in this Act:
8    "Employer" means any public or private employer with a
9place of business in this State.
10    "Veteran" means an Illinois resident who: (i) is employed
11at a place of business in this State; (ii) has served as a
12member of the United States Armed Forces on active duty or
13State active duty, as a member of the Illinois National Guard,
14or as a member of the United States Reserve Forces; and (iii)
15was discharged or separated under honorable conditions.
16    "Veterans Day" means the eleventh day of November of each
18    Section 1-10. Paid leave for Veterans Day.
19    (a) Notwithstanding any other provision of law, on and
20after January 1, 2025, each employer shall provide each
21employee who is a veteran with one paid day off each year on



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1Veterans Day if the employee would otherwise be required to
2work on that day. The employee must provide the employer with
3at least 30 calendar days' notice that the employee intends to
4take time off on Veterans Day. The employee must also provide
5the employer with documentation verifying that the employee is
6a veteran.
7    (b) If the employer is unable to provide time off to each
8veteran, as provided in subsection (a), without experiencing
9significant economic or operational disruption, then the
10employer may deny such a time off request, but only to the
11extent necessary to avoid the significant economic or
12operational disruption. If the employer denies a time off
13request under this subsection, the employer must notify the
14employee at least 14 calendar days prior to Veterans Day that
15his or her request has been denied and must make a good faith
16effort to provide the employee with a substitute day on which
17the employee may receive paid time off.

19    Section 5-5. The Illinois Income Tax Act is amended by
20adding Section 241 as follows:
21    (35 ILCS 5/241 new)
22    Sec. 241. Wages paid to veterans under the Veterans Day
23Paid Leave Act.



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1    (a) For each taxable year beginning on or after January 1,
22025, each taxpayer is entitled to a credit against the tax
3imposed by subsections (a) and (b) of Section 201 of this Act
4in an amount equal to 100% of the wages paid by the taxpayer
5during the taxable year to veterans as a result of the paid day
6off required under the Veterans Day Paid Leave Act. For
7partners of partnerships and shareholders of Subchapter S
8corporations, there shall be allowed a credit under this
9Section to be determined in accordance with the determination
10of income and distributive share of income under Sections 702
11and 704 and Subchapter S of the Internal Revenue Code.
12    (b) A taxpayer claiming the credit provided by this
13Section shall maintain and record such information as the
14Department may require by rule regarding the credit claimed
15under this Section.
16    (c) In no event shall a credit under this Section reduce
17the taxpayer's liability to less than zero. If the amount of
18the credit exceeds the tax liability for the year, the excess
19may be carried forward and applied to the tax liability of the
205 taxable years following the excess credit year. The tax
21credit shall be applied to the earliest year for which there is
22a tax liability. If there are credits for more than one year
23that are available to offset a liability, the earlier credit
24shall be applied first.
25    (d) This Section is exempt from the provisions of Section



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2    Section 99-99. Effective date. This Act takes effect upon
3becoming law.