Full Text of HB2542 101st General Assembly
HB2542 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2542 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. In a Section concerning the credit for wages paid to ex-felons, provides that, if the taxpayer is a business located in a census tract with a high rate of unemployment and violent crime, then (i) the amount of the credit shall be 10% (currently, 5%) of qualified wages paid by the taxpayer during the taxable year to the qualified ex-offender and (ii) the total credit allowed to that taxpayer with respect to each qualified ex-offender may not exceed $3,000 (currently, $1,500) for all taxable years. Provides that, in the case of those taxpayers, the requirement that the ex-felon must be hired by the taxpayer within 3 years after being released from an Illinois adult correctional center does not apply. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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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 216 as follows: | 6 | | (35 ILCS 5/216) | 7 | | Sec. 216. Credit for wages paid to ex-felons. | 8 | | (a) For each taxable year beginning on or after January 1, | 9 | | 2007, each taxpayer is entitled to a credit against the tax | 10 | | imposed by subsections (a) and (b) of Section 201 of this Act | 11 | | in an amount equal to 5% of qualified wages paid by the | 12 | | taxpayer during the taxable year to one or more Illinois | 13 | | residents who are qualified ex-offenders. The total credit | 14 | | allowed to a taxpayer with respect to each qualified | 15 | | ex-offender may not exceed $1,500 for all taxable years. | 16 | | Notwithstanding the provisions of this subsection (a), for | 17 | | taxable years beginning on or after January 1, 2019, if the | 18 | | taxpayer is a business located in a census tract with a high | 19 | | rate of unemployment and violent crime, according to rules | 20 | | adopted by the Department of Commerce and Economic Opportunity, | 21 | | then (i) the amount of the credit shall be 10% of qualified | 22 | | wages paid by the taxpayer during the taxable year to one or | 23 | | more Illinois residents who are qualified ex-offenders and (ii) |
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| 1 | | the total credit allowed to that taxpayer with respect to each | 2 | | qualified ex-offender may not exceed $3,000 for all taxable | 3 | | years. For partners, shareholders of Subchapter S | 4 | | corporations, and owners of limited liability companies, if the | 5 | | liability company is treated as a partnership for purposes of | 6 | | federal and State income taxation, there shall be allowed a | 7 | | credit under this Section to be determined in accordance with | 8 | | the determination of income and distributive share of income | 9 | | under Sections 702 and 704 and Subchapter S of the Internal | 10 | | Revenue Code. | 11 | | (b) For purposes of this Section, "qualified wages": | 12 | | (1) includes only wages that are subject to federal | 13 | | unemployment tax under Section 3306 of the Internal Revenue | 14 | | Code, without regard to any dollar limitation contained in | 15 | | that Section;
| 16 | | (2) does not include any amounts paid or incurred by an | 17 | | employer for any period to any qualified ex-offender for | 18 | | whom the employer receives federally funded payments for | 19 | | on-the-job training of that qualified ex-offender for that | 20 | | period;
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| 21 | | (3) includes only wages attributable to service | 22 | | rendered during the one-year period beginning with the day | 23 | | the qualified ex-offender begins work for the employer.
| 24 | | If the taxpayer has received any payment from a program | 25 | | established under Section 482(e)(1) of the federal Social | 26 | | Security Act with respect to a qualified ex-offender, then, for |
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| 1 | | purposes of calculating the credit under this Section, the | 2 | | amount of the qualified wages paid to that qualified | 3 | | ex-offender must be reduced by the amount of the payment.
| 4 | | (c) For purposes of this Section, "qualified ex-offender" | 5 | | means any person who:
| 6 | | (1) has been convicted of a crime in this State or of | 7 | | an offense in any other jurisdiction, not including any | 8 | | offense or attempted offense that would subject a person to | 9 | | registration under the Sex Offender Registration Act; | 10 | | (2) was sentenced to a period of incarceration in an | 11 | | Illinois adult correctional center; and | 12 | | (3) was hired by the taxpayer within 3 years after | 13 | | being released from an Illinois adult correctional center , | 14 | | except that this subparagraph (3) does not apply to a | 15 | | business located in a census tract with a high rate of | 16 | | unemployment and violent crime, according to rules adopted | 17 | | by the Department of Commerce and Economic Opportunity . | 18 | | (d) In no event shall a credit under this Section reduce | 19 | | the taxpayer's liability to less than zero. If the amount of | 20 | | the credit exceeds the tax liability for the year, the excess | 21 | | may be carried forward and applied to the tax liability of the | 22 | | 5 taxable years following the excess credit year. The tax | 23 | | credit shall be applied to the earliest year for which there is | 24 | | a tax liability. If there are credits for more than one year | 25 | | that are available to offset a liability, the earlier credit | 26 | | shall be applied first.
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| 1 | | (e) This Section is exempt from the provisions of Section | 2 | | 250. | 3 | | (Source: P.A. 98-165, eff. 8-5-13.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.
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