Full Text of SB3241 97th General Assembly
SB3241eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 217 and by adding Section 217.1 as follows: | 6 | | (35 ILCS 5/217)
| 7 | | Sec. 217. Credit for wages paid to qualified veterans. | 8 | | (a) For each taxable year beginning on or after January 1, | 9 | | 2007 and ending on or before December 30, 2010, each taxpayer | 10 | | is entitled to a credit against the tax imposed by subsections | 11 | | (a) and (b) of Section 201 of this Act in an amount equal to 5%, | 12 | | but in no event to exceed $600, of the gross wages paid by the | 13 | | taxpayer to a qualified veteran in the course of that veteran's | 14 | | sustained employment during the taxable year. For each taxable | 15 | | year beginning on or after January 1, 2010, each taxpayer is | 16 | | entitled to a credit against the tax imposed by subsections (a) | 17 | | and (b) of Section 201 of this Act in an amount equal to 10%, | 18 | | but in no event to exceed $1,200, of the gross wages paid by | 19 | | the taxpayer to a qualified veteran in the course of that | 20 | | veteran's sustained employment during the taxable year. For | 21 | | partners, shareholders of Subchapter S corporations, and | 22 | | owners of limited liability companies, if the liability company | 23 | | is treated as a partnership for purposes of federal and State |
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| 1 | | income taxation, there shall be allowed a credit under this | 2 | | Section to be determined in accordance with the determination | 3 | | of income and distributive share of income under Sections 702 | 4 | | and 704 and Subchapter S of the Internal Revenue Code. | 5 | | (b) For purposes of this Section: | 6 | | "Qualified veteran" means an Illinois resident who: (i) was | 7 | | a member of the Armed Forces of the United States, a member of | 8 | | the Illinois National Guard, or a member of any reserve | 9 | | component of the Armed Forces of the United States; (ii) served | 10 | | on active duty in connection with Operation Desert Storm, | 11 | | Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) | 12 | | has provided, to the taxpayer, documentation showing that he or | 13 | | she was honorably discharged; and (iv) was initially hired by | 14 | | the taxpayer on or after January 1, 2007. | 15 | | "Sustained employment" means a period of employment that is | 16 | | not less than 185 days during the taxable year. | 17 | | (c) In no event shall a credit under this Section reduce | 18 | | the taxpayer's liability to less than zero. If the amount of | 19 | | the credit exceeds the tax liability for the year, the excess | 20 | | may be carried forward and applied to the tax liability of the | 21 | | 5 taxable years following the excess credit year. The tax | 22 | | credit shall be applied to the earliest year for which there is | 23 | | a tax liability. If there are credits for more than one year | 24 | | that are available to offset a liability, the earlier credit | 25 | | shall be applied first.
| 26 | | (d) A taxpayer who claims a credit under this Section for a |
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| 1 | | taxable year with respect to a veteran shall not be allowed a | 2 | | credit under Section 217.1 of this Act with respect to the same | 3 | | veteran for that taxable year. | 4 | | (Source: P.A. 96-101, eff. 1-1-10.) | 5 | | (35 ILCS 5/217.1 new) | 6 | | Sec. 217.1. Credit for wages paid to qualified unemployed | 7 | | veterans. | 8 | | (a) For each taxable year ending on or after December 31, | 9 | | 2012 and on or before December 31, 2016, each taxpayer is | 10 | | entitled to a credit against the tax imposed by subsections (a) | 11 | | and (b) of Section 201 of this Act in the amount equal to 20%, | 12 | | but in no event to exceed $5,000, of the gross wages paid by | 13 | | the taxpayer to a qualified veteran in the course of that | 14 | | veteran's sustained employment during each taxable year ending | 15 | | on or after the date of hire by the taxpayer if that veteran | 16 | | was unemployed for an aggregate period of 4 weeks or more | 17 | | during the one-year period ending on the date he or she was | 18 | | hired by the taxpayer. For partners, shareholders of Subchapter | 19 | | S corporations, and owners of limited liability companies, if | 20 | | the liability company is treated as a partnership for the | 21 | | purposes of federal and State income taxation, there shall be | 22 | | allowed a credit under this Section to be determined in | 23 | | accordance with the determination of income and distributive | 24 | | share of income under Sections 702 and 704 and Subchapter S of | 25 | | the Internal Revenue Code. |
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| 1 | | (b) For the purposes of this Section: | 2 | | "Qualified veteran" means an Illinois resident who: (i) was | 3 | | a member of the Armed Forces of the United States, a member of | 4 | | the Illinois National Guard, or a member of any reserve | 5 | | component of the Armed Forces of the United States; (ii) served | 6 | | on active duty on or after September 11, 2001; (iii) has | 7 | | provided, to the taxpayer, documentation showing that he or she | 8 | | was honorably discharged; and (iv) was initially hired by the | 9 | | taxpayer on or after January 1, 2012. | 10 | | "Sustained employment" means (i) a period of employment | 11 | | that is not less than 185 days following the date of hire or | 12 | | (ii) in the case of a veteran who was unemployed for an | 13 | | aggregate period of 6 months or more during the one-year period | 14 | | ending on the date the veteran was hired by the taxpayer, a | 15 | | period of employment that is more than 30 days following the | 16 | | date of hire. The period of sustained employment may be | 17 | | completed after the end of the taxable year in which the | 18 | | veteran is hired. | 19 | | A veteran is "unemployed" for a week if he or she (i) has | 20 | | received unemployment benefits (as defined in Section 202 of | 21 | | the Unemployment Insurance Act, including but not limited to | 22 | | federally funded unemployment benefits) for the week, or (ii) | 23 | | has not been employed since being honorably discharged. | 24 | | (c) In no event shall a credit under this Section reduce a | 25 | | taxpayer's liability to less than zero. If the amount of credit | 26 | | exceeds the tax liability for the year, the excess may be |
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| 1 | | carried forward and applied to the tax liability for the 5 | 2 | | taxable years following the excess credit year. The tax credit | 3 | | shall be applied to the earliest year for which there is a tax | 4 | | liability. If there are credits for more than one year that are | 5 | | available to offset liability, the earlier credit shall be | 6 | | applied first. | 7 | | (d) A taxpayer who claims a credit under this Section for a | 8 | | taxable year with respect to a veteran shall not be allowed a | 9 | | credit under Section 217 of this Act with respect to the same | 10 | | veteran for that taxable year. | 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law. |
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