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


Sen. Jennifer Bertino-Tarrant

Filed: 3/31/2014





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2    AMENDMENT NO. ______. Amend Senate Bill 2698 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Income Tax Act is amended by
5adding Section 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



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1second taxable year after the long-term unemployed person is
2initially hired by the taxpayer. If the long-term unemployed
3person is employed by the taxpayer for only part of a taxable
4year, then the amount of the credit shall be the maximum credit
5allowed under this subsection (a) for the taxable year,
6multiplied by a fraction, the numerator of which is the number
7of weeks during the taxable year in which the person is
8employed by the taxpayer, and the denominator of which shall be
9the total number of weeks in the taxable year.
10    (b) For partners, shareholders of Subchapter S
11corporations, and owners of limited liability companies, if the
12liability company is treated as a partnership for purposes of
13federal and State income taxation, there shall be allowed a
14credit under this Section to be determined in accordance with
15the determination of income and distributive share of income
16under Sections 702 and 704 and Subchapter S of the Internal
17Revenue Code.
18    (c) In no event shall a credit under this Section reduce
19the taxpayer's liability to less than zero. If the amount of
20the credit exceeds the tax liability for the year, the excess
21may be carried forward and applied to the tax liability of the
225 taxable years following the excess credit year. The tax
23credit shall be applied to the earliest year for which there is
24a tax liability. If there are credits for more than one year
25that are available to offset a liability, the earlier credit
26shall be applied first.



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1    (d) For the purposes of this Section:
2    "Long-term unemployed person" means an individual who:
3        (1) was unemployed for a period of at least 27
4    consecutive weeks ending on the Saturday immediately
5    preceding the date he or she was hired by the taxpayer;
6        (2) was an Illinois resident on the date he or she was
7    hired by the taxpayer;
8        (3) is employed by the taxpayer during the taxable year
9    as a full-time employee; and
10        (4) was not enrolled as a full-time student at a public
11    or private high school, community college, or university at
12    any point during the 27-week period immediately preceding
13    the date he or she was hired by the taxpayer.
14    "Full-time employee" means an individual who is employed
15for a wage of at least $10 per hour for at least 35 hours each
16week or who renders any other standard of service generally
17accepted by industry custom or practice as full-time
18employment. An individual for whom a W-2 is issued by a
19Professional Employer Organization is a full-time employee if
20he or she is employed in the service of the taxpayer for a wage
21of at least $10 per hour for at least 35 hours each week or
22renders any other standard of service generally accepted by
23industry custom or practice as full-time employment.
24    (e) This Section is exempt from the provisions of Section



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".