Illinois General Assembly - Full Text of SB2698
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Full Text of SB2698  98th General Assembly




SB2698 EngrossedLRB098 16909 HLH 51984 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 hiring a long-term unemployed person.
8    (a) For each taxable year beginning on or after January 1,
92015, each taxpayer who employs a long-term unemployed person
10during the taxable year is entitled to a credit against the tax
11imposed by subsections (a) and (b) of Section 201 of this Act
12as provided in this Section. The amount of the credit is as
13follows: (1) $500 in the taxable year in which the long-term
14unemployed person is initially hired by the taxpayer; (2) $750
15in the first taxable year after the long-term unemployed person
16is initially hired by the taxpayer; and (3) $1,250 in the
17second taxable year after the long-term unemployed person is
18initially hired by the taxpayer. If the long-term unemployed
19person is employed by the taxpayer for only part of a taxable
20year, then the amount of the credit shall be the maximum credit
21allowed under this subsection (a) for the taxable year,
22multiplied by a fraction, the numerator of which is the number
23of weeks during the taxable year in which the person is



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1employed by the taxpayer, and the denominator of which shall be
2the total number of weeks in the taxable year.
3    (b) For partners, shareholders of Subchapter S
4corporations, and owners of limited liability companies, if the
5liability company is treated as a partnership for purposes of
6federal and State income taxation, there shall be allowed a
7credit under this Section to be determined in accordance with
8the determination of income and distributive share of income
9under Sections 702 and 704 and Subchapter S of the Internal
10Revenue Code.
11    (c) In no event shall a credit under this Section reduce
12the taxpayer's liability to less than zero. If the amount of
13the credit exceeds the tax liability for the year, the excess
14may be carried forward and applied to the tax liability of the
155 taxable years following the excess credit year. The tax
16credit shall be applied to the earliest year for which there is
17a tax liability. If there are credits for more than one year
18that are available to offset a liability, the earlier credit
19shall be applied first.
20    (d) For the purposes of this Section:
21    "Long-term unemployed person" means an individual who:
22        (1) was unemployed for a period of at least 27
23    consecutive weeks ending on the Saturday immediately
24    preceding the date he or she was hired by the taxpayer;
25        (2) was an Illinois resident on the date he or she was
26    hired by the taxpayer;



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1        (3) is employed by the taxpayer during the taxable year
2    as a full-time employee; and
3        (4) was not enrolled as a full-time student at a public
4    or private high school, community college, or university at
5    any point during the 27-week period immediately preceding
6    the date he or she was hired by the taxpayer.
7    "Full-time employee" means an individual who is employed
8for a wage of at least $10 per hour for at least 35 hours each
9week or who renders any other standard of service generally
10accepted by industry custom or practice as full-time
11employment. An individual for whom a W-2 is issued by a
12Professional Employer Organization is a full-time employee if
13he or she is employed in the service of the taxpayer for a wage
14of at least $10 per hour for at least 35 hours each week or
15renders any other standard of service generally accepted by
16industry custom or practice as full-time employment.
17    (e) This Section is exempt from the provisions of Section
19    Section 99. Effective date. This Act takes effect upon
20becoming law.