HB0391 102ND GENERAL ASSEMBLY

LRB102 03938 HLH 13954 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0391

Introduced 2/8/2021, by Rep. Martin J. Moylan

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who employ individuals working within the engineering sector who graduated from an accredited institution of higher learning with a Bachelor's degree or higher. Provides that the credit shall be equal to 10% of the compensation paid for the first through fifth years of employment in the engineering sector if the qualified employee graduated from an institution located in Illinois or 5% of the compensation paid for the first through fifth years of employment in the engineering sector if the qualified employee graduated from an institution not located in Illinois. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Retaining Illinois Students of Engineering (RISE) credit.

(a) For tax years ending on or after December 31, 2021, a taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 for compensation paid to a qualified employee. The credit shall be equal to 10% of the compensation paid for the first through fifth years of employment in the engineering sector if the qualified employee graduated from an institution located in Illinois or 5% of the compensation paid for the first through fifth years of employment in the engineering sector if the qualified employee graduated from an institution not located in Illinois.

(b) The credit or credits may not reduce the taxpayer's liability to less than zero. If the amount of the credit or credits exceeds the taxpayer's liability, the excess may be carried forward and applied against the taxpayer's liability in the following 5 taxable years or until the credit has been fully used, whichever occurs first.

(c) As used in this Section, "qualified employee" means an employee working within the engineering sector who graduated from an accredited institution of higher learning with a Bachelor's degree or higher.

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