Full Text of SB0097 97th General Assembly
SB0097sam001 97TH GENERAL ASSEMBLY | Sen. John G. Mulroe Filed: 3/10/2011
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| 1 | | AMENDMENT TO SENATE BILL 97
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 97 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Small Business Job Creation Tax Credit Act | 5 | | is amended by changing Sections 10 and 25 as follows: | 6 | | (35 ILCS 25/10)
| 7 | | Sec. 10. Definitions. In this Act: | 8 | | "Applicant" means a person that is operating a business | 9 | | located within the State of Illinois that is engaged in | 10 | | interstate or intrastate commerce and either: | 11 | | (1) has no more than (A) 50 full-time employees if the | 12 | | applicant is applying for a credit for a new employee hired | 13 | | on or after July 1, 2010 and on or before June 30, 2012 and | 14 | | (B) 100 or fewer employees if the applicant is applying for | 15 | | a credit for a new employee hired on or after July 1, 2011 | 16 | | and on or before June 30, 2012 , without regard to the |
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| 1 | | location of employment of such employees at the beginning | 2 | | of the incentive period applicable to the applicant ; or | 3 | | (2) hired within the incentive period an employee who | 4 | | had participated as worker-trainee in the Put Illinois to | 5 | | Work Program during 2010. | 6 | | In the case of any person that is a member of a unitary | 7 | | business group within the meaning of subdivision (a)(27) of | 8 | | Section 1501 of the Illinois Income Tax Act, "applicant" refers | 9 | | to the unitary business group. | 10 | | "Certificate" means the tax credit certificate issued by | 11 | | the Department under Section 35 of this Act. | 12 | | "Certificate of eligibility" means the certificate issued | 13 | | by the Department under Section 20 of this Act. | 14 | | "Credit" means the amount awarded by the Department to an | 15 | | applicant by issuance of a certificate under Section 35 of this | 16 | | Act for each new full-time equivalent employee hired or job | 17 | | created. | 18 | | "Department" means the Department of Commerce and Economic | 19 | | Opportunity. | 20 | | "Director" means the Director of the Department. | 21 | | "Full-time employee" means an individual who is employed | 22 | | for a basic wage for at least 35 hours each week or who renders | 23 | | any other standard of service generally accepted by industry | 24 | | custom or practice as full-time employment. An individual for | 25 | | whom a W-2 is issued by a Professional Employer Organization is | 26 | | a full-time employee if he or she is employed in the service of |
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| 1 | | the applicant for a basic wage for at least 35 hours each week | 2 | | or renders any other standard of service generally accepted by | 3 | | industry custom or practice as full-time employment. For the | 4 | | purposes of this Act, such an individual shall be considered a | 5 | | full-time employee of the applicant. | 6 | | "Professional Employer Organization" (PEO) shall have the | 7 | | same meaning as defined in Section 5-5 of the Economic | 8 | | Development for a Growing Economy Tax Credit Act. | 9 | | "Incentive period" means (i) for applicants with 50 or | 10 | | fewer employees on July 1, 2010, and for applicants who hired | 11 | | an employee who had participated as a worker-trainee in the Put | 12 | | Illinois to Work Program during 2010, the period beginning July | 13 | | 1, 2010 and ending on June 30, 2012 and (ii) for applicants | 14 | | with 100 or fewer employees on July 1, 2011, other than | 15 | | applicants who qualified under item (i) of this definition, the | 16 | | period beginning July 1, 2011 and ending June 30, 2012 June 30, | 17 | | 2011 . | 18 | | "Basic wage" means compensation for employment that is no | 19 | | less than $10 per hour or the equivalent salary for a new | 20 | | employee. | 21 | | "New employee" means a full-time employee: | 22 | | (1) who first became employed by an eligible applicant | 23 | | with less than 50 full-time employees within the incentive | 24 | | period whose hire results in a net increase in the | 25 | | applicant's full-time Illinois employees and who is | 26 | | receiving a basic wage as compensation; or |
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| 1 | | (2) who participated as a worker-trainee in the Put | 2 | | Illinois to Work Program during 2010 and who is | 3 | | subsequently hired during the incentive period by an | 4 | | applicant and who is receiving a basic wage as | 5 | | compensation. | 6 | | The term "new employee" does not include: | 7 | | (1) a person who was previously employed in Illinois by | 8 | | the applicant or a related member prior to the onset of the | 9 | | incentive period; or | 10 | | (2) any individual who has a direct or indirect | 11 | | ownership interest of at least 5% in the profits, capital, | 12 | | or value of the applicant or a related member. | 13 | | "Noncompliance date" means, in the case of an applicant | 14 | | that is not complying with the requirements of the provisions | 15 | | of this Act, the day following the last date upon which the | 16 | | taxpayer was in compliance with the requirements of the | 17 | | provisions of this Act, as determined by the Director, pursuant | 18 | | to Section 45 of this Act. | 19 | | "Put Illinois to Work Program" means a worker training and | 20 | | employment program that was established by the State of | 21 | | Illinois with funding from the United States Department of | 22 | | Health and Human Services of Emergency Temporary Assistance to | 23 | | Needy Families funds authorized by the American Recovery and | 24 | | Reinvestment Act of 2009 (ARRA TANF Funds). These ARRA TANF | 25 | | funds were in turn used by the State of Illinois to fund the | 26 | | Put Illinois to Work Program. |
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| 1 | | "Related member" means a person that, with respect to the | 2 | | applicant during any portion of the incentive period, is any | 3 | | one of the following, | 4 | | (1) An individual, if the individual and the members of | 5 | | the individual's family (as defined in Section 318 of the | 6 | | Internal Revenue Code) own directly, indirectly, | 7 | | beneficially, or constructively, in the aggregate, at | 8 | | least 50% of the value of the outstanding profits, capital, | 9 | | stock, or other ownership interest in the applicant. | 10 | | (2) A partnership, estate, or trust and any partner or | 11 | | beneficiary, if the partnership, estate, or trust and its | 12 | | partners or beneficiaries own directly, indirectly, | 13 | | beneficially, or constructively, in the aggregate, at | 14 | | least 50% of the profits, capital, stock, or other | 15 | | ownership interest in the applicant. | 16 | | (3) A corporation, and any party related to the | 17 | | corporation in a manner that would require an attribution | 18 | | of stock from the corporation under the attribution rules | 19 | | of Section 318 of the Internal Revenue Code, if the | 20 | | applicant and any other related member own, in the | 21 | | aggregate, directly, indirectly, beneficially, or | 22 | | constructively, at least 50% of the value of the | 23 | | corporation's outstanding stock. | 24 | | (4) A corporation and any party related to that | 25 | | corporation in a manner that would require an attribution | 26 | | of stock from the corporation to the party or from the |
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| 1 | | party to the corporation under the attribution rules of | 2 | | Section 318 of the Internal Revenue Code, if the | 3 | | corporation and all such related parties own, in the | 4 | | aggregate, at least 50% of the profits, capital, stock, or | 5 | | other ownership interest in the applicant. | 6 | | (5) A person to or from whom there is attribution of | 7 | | stock ownership in accordance with Section 1563(e) of the | 8 | | Internal Revenue Code, except that for purposes of | 9 | | determining whether a person is a related member under this | 10 | | paragraph, "20%" shall be substituted for "5%" whenever | 11 | | "5%" appears in Section 1563(e) of the Internal Revenue | 12 | | Code.
| 13 | | (Source: P.A. 96-888, eff. 4-13-10; 96-1498, eff. 1-18-11.) | 14 | | (35 ILCS 25/25)
| 15 | | Sec. 25. Tax credit. | 16 | | (a) Subject to the conditions set forth in this Act, an | 17 | | applicant is entitled to a credit against payment of taxes | 18 | | withheld under Section 704A of the Illinois Income Tax Act: | 19 | | (1) for new employees who participated as | 20 | | worker-trainees in the Put Illinois to Work Program during | 21 | | 2010: | 22 | | (A) in the first calendar year ending on or after | 23 | | the date that is 6 months after December 31, 2010, or | 24 | | the date of hire, whichever is later. Under this | 25 | | subparagraph, the applicant is entitled to one-half of |
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| 1 | | the credit allowable for each new employee who is | 2 | | employed for at least 6 months after the date of hire; | 3 | | and | 4 | | (B) in the first calendar year ending on or after | 5 | | the date that is 12 months after December 31, 2010, or | 6 | | the date of hire, whichever is later. Under this | 7 | | subparagraph, the applicant is entitled to one-half of | 8 | | the credit allowable for each new employee who is | 9 | | employed for at least 12 months after the date of hire; | 10 | | (2) for all other new employees, in the first calendar | 11 | | year ending on or after the date that is 12 months after | 12 | | the date of hire of a new employee. The credit shall be | 13 | | allowed as a credit to an applicant for each full-time | 14 | | employee hired during the incentive period that results in | 15 | | a net increase in full-time Illinois employees, where the | 16 | | net increase in the employer's full-time Illinois | 17 | | employees is maintained for at least 12 months. | 18 | | (b) The Department shall make credit awards under this Act | 19 | | to further job creation. | 20 | | (c) The credit shall be claimed for the first calendar year | 21 | | ending on or after the date on which the certificate is issued | 22 | | by the Department. | 23 | | (d) The credit shall not exceed $2,500 per new employee | 24 | | hired. | 25 | | (e) The net increase in full-time Illinois employees, | 26 | | measured on an annual full-time equivalent basis, shall be (i) |
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| 1 | | for applicants that are eligible for entire the incentive | 2 | | period beginning on July 1, 2010 and ending on June 30, 2012, | 3 | | the maximum total number of full-time Illinois employees | 4 | | employed by the applicant for at least 12 consecutive months | 5 | | during any portion of the period running from July 1, 2010 to | 6 | | July 1, 2012, minus the number of full-time Illinois employees | 7 | | employed by the employer on July 1, 2010 and (ii) for | 8 | | applicants that are eligible only for the portion of the | 9 | | incentive period beginning July 1, 2011 and ending June 30, | 10 | | 2012, the total number of full-time Illinois employees employed | 11 | | by the applicant on June 30, 2012, minus the number of | 12 | | full-time Illinois employees employed by the applicant on July | 13 | | 1, 2011. total number of full-time Illinois employees of the | 14 | | applicant on June 30, 2011, minus the number of full-time | 15 | | Illinois employees employed by the employer on July 1, 2010. | 16 | | For purposes of these calculations the calculation , an employer | 17 | | that begins doing business in this State during the incentive | 18 | | period, as determined by the Director, shall be treated as | 19 | | having zero Illinois employees on July 1, 2010. | 20 | | (f) The net increase in the number of full-time Illinois | 21 | | employees of the applicant under subsection (e) must be | 22 | | sustained continuously for at least 12 months, starting with | 23 | | the date of hire of a new employee during the incentive period. | 24 | | Eligibility for the credit does not depend on the continuous | 25 | | employment of any particular individual. For purposes of this | 26 | | subsection (f), if a new employee ceases to be employed before |
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| 1 | | the completion of the 12-month period for any reason, the net | 2 | | increase in the number of full-time Illinois employees shall be | 3 | | treated as continuous if a different new employee is hired as a | 4 | | replacement within a reasonable time for the same position.
| 5 | | (g) The Department shall promulgate rules to enable an | 6 | | applicant for which a PEO has been contracted to issue W-2s and | 7 | | make payment of taxes withheld under Section 704A of the | 8 | | Illinois Income Tax Act for new employees to retain the benefit | 9 | | of tax credits to which the applicant is otherwise entitled | 10 | | under this Act. | 11 | | (Source: P.A. 96-888, eff. 4-13-10; 96-1498, eff. 1-18-11.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.".
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