Full Text of SB2925 101st General Assembly
SB2925 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB2925 Introduced 2/4/2020, by Sen. Paul Schimpf SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Provides that, in the case of an employee participating in the SkillBridge program, the credit shall be equal to $3,500 per qualifying apprentice. 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 and renumbering Section 229, as added by Public Act | 6 | | 101-207, as follows: | 7 | | (35 ILCS 5/231) | 8 | | Sec. 231 229 . Apprenticeship education expense credit. | 9 | | (a) As used in this Section: | 10 | | "Department" means the Department of Commerce and Economic | 11 | | Opportunity. | 12 | | "Employer" means an Illinois taxpayer who is the employer | 13 | | of the qualifying apprentice. | 14 | | "Qualifying apprentice" means an individual who: (i) is a | 15 | | resident of the State of Illinois; (ii) is at least 16 years | 16 | | old at the close of the school year for which a credit is | 17 | | sought; (iii) during the school year for which a credit is | 18 | | sought, was a full-time apprentice enrolled in an | 19 | | apprenticeship program which is registered with the United | 20 | | States Department of Labor, Office of Apprenticeship; and (iv) | 21 | | is employed in Illinois by the taxpayer who is the employer. | 22 | | "Qualifying apprentice" also means an apprentice who is | 23 | | employed in Illinois by the taxpayer through the United States |
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| 1 | | Department of Defense SkillBridge internship program. | 2 | | "Qualified education expense" means the amount incurred on | 3 | | behalf of a qualifying apprentice not to exceed $3,500 for | 4 | | tuition, book fees, and lab fees at the school or community | 5 | | college in which the apprentice is enrolled during the regular | 6 | | school year. | 7 | | "School" means any public or nonpublic secondary school in | 8 | | Illinois that is: (i) an institution of higher education that | 9 | | provides a program that leads to an industry-recognized | 10 | | postsecondary credential or degree; (ii) an entity that carries | 11 | | out programs registered under the federal National | 12 | | Apprenticeship Act; or (iii) another public or private provider | 13 | | of a program of training services, which may include a joint | 14 | | labor-management organization. | 15 | | (b) For taxable years beginning on or after January 1, | 16 | | 2020, and beginning on or before January 1, 2025, the employer | 17 | | of one or more qualifying apprentices shall be allowed a credit | 18 | | against the tax imposed by subsections (a) and (b) of Section | 19 | | 201 of the Illinois Income Tax Act for qualified education | 20 | | expenses incurred on behalf of a qualifying apprentice. The | 21 | | credit shall be equal to 100% of the qualified education | 22 | | expenses, but in no event may the total credit amount awarded | 23 | | to a single taxpayer in a single taxable year exceed $3,500 per | 24 | | qualifying apprentice. In the case of an employee participating | 25 | | in the SkillBridge program, the credit shall be equal to $3,500 | 26 | | per qualifying apprentice. A taxpayer shall be entitled to an |
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| 1 | | additional $1,500 credit against the tax imposed by subsections | 2 | | (a) and (b) of Section 201 of the Illinois Income Tax Act if | 3 | | (i) the qualifying apprentice resides in an underserved area as | 4 | | defined in Section 5-5 of the Economic Development for a | 5 | | Growing Economy Tax Credit Act during the school year for which | 6 | | a credit is sought by an employer or (ii) the employer's | 7 | | principal place of business is located in an underserved area, | 8 | | as defined in Section 5-5 of the Economic Development for a | 9 | | Growing Economy Tax Credit Act. In no event shall a credit | 10 | | under this Section reduce the taxpayer's liability under this | 11 | | Act to less than zero.
For partners, shareholders of Subchapter | 12 | | S corporations, and owners of limited liability companies, if | 13 | | the liability company is treated as a partnership for purposes | 14 | | of federal and State income taxation, there shall be allowed a | 15 | | credit under this Section to be determined in accordance with | 16 | | the determination of income and distributive share of income | 17 | | under Sections 702 and 704 and Subchapter S of the Internal | 18 | | Revenue Code. | 19 | | (c) The Department shall implement a program to certify | 20 | | applicants for an apprenticeship credit under this Section. | 21 | | Upon satisfactory review, the Department shall issue a tax | 22 | | credit certificate to an employer incurring costs on behalf of | 23 | | a qualifying apprentice stating the amount of the tax credit to | 24 | | which the employer is entitled. If the employer is seeking a | 25 | | tax credit for multiple qualifying apprentices, the Department | 26 | | may issue a single tax credit certificate that encompasses the |
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| 1 | | aggregate total of tax credits for qualifying apprentices for a | 2 | | single employer. | 3 | | (d) The Department, in addition to those powers granted | 4 | | under the Civil Administrative Code of Illinois, is granted and | 5 | | shall have all the powers necessary or convenient to carry out | 6 | | and effectuate the purposes and provisions of this Section, | 7 | | including, but not limited to, power and authority to: | 8 | | (1) Adopt rules deemed necessary and appropriate for | 9 | | the administration of this Section; establish forms for | 10 | | applications, notifications, contracts, or any other | 11 | | agreements; and accept applications at any time during the | 12 | | year and require that all applications be submitted via the | 13 | | Internet. The Department shall require that applications | 14 | | be submitted in electronic form. | 15 | | (2) Provide guidance and assistance to applicants | 16 | | pursuant to the provisions of this Section and cooperate | 17 | | with applicants to promote, foster, and support job | 18 | | creation within the State. | 19 | | (3) Enter into agreements and memoranda of | 20 | | understanding for participation of and engage in | 21 | | cooperation with agencies of the federal government, units | 22 | | of local government, universities, research foundations or | 23 | | institutions, regional economic development corporations, | 24 | | or other organizations for the purposes of this Section. | 25 | | (4) Gather information and conduct inquiries, in the | 26 | | manner and by the methods it deems desirable, including, |
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| 1 | | without limitation, gathering information with respect to | 2 | | applicants for the purpose of making any designations or | 3 | | certifications necessary or desirable or to gather | 4 | | information in furtherance of the purposes of this Act. | 5 | | (5) Establish, negotiate, and effectuate any term, | 6 | | agreement, or other document with any person necessary or | 7 | | appropriate to accomplish the purposes of this Section, and | 8 | | consent, subject to the provisions of any agreement with | 9 | | another party, to the modification or restructuring of any | 10 | | agreement to which the Department is a party. | 11 | | (6) Provide for sufficient personnel to permit | 12 | | administration, staffing, operation, and related support | 13 | | required to adequately discharge its duties and | 14 | | responsibilities described in this Section from funds made | 15 | | available through charges to applicants or from funds as | 16 | | may be appropriated by the General Assembly for the | 17 | | administration of this Section. | 18 | | (7) Require applicants, upon written request, to issue | 19 | | any necessary authorization to the appropriate federal, | 20 | | State, or local authority or any other person for the | 21 | | release to the Department of information requested by the | 22 | | Department, including, but not be limited to, financial | 23 | | reports, returns, or records relating to the applicant or | 24 | | to the amount of credit allowable under this Section. | 25 | | (8) Require that an applicant shall, at all times, keep | 26 | | proper books of record and account in accordance with |
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| 1 | | generally accepted accounting principles consistently | 2 | | applied, with the books, records, or papers related to the | 3 | | agreement in the custody or control of the applicant open | 4 | | for reasonable Department inspection and audits, | 5 | | including, without limitation, the making of copies of the | 6 | | books, records, or papers. | 7 | | (9) Take whatever actions are necessary or appropriate | 8 | | to protect the State's interest in the event of bankruptcy, | 9 | | default, foreclosure, or noncompliance with the terms and | 10 | | conditions of financial assistance or participation | 11 | | required under this Section or any agreement entered into | 12 | | under this Section, including the power to sell, dispose | 13 | | of, lease, or rent, upon terms and conditions determined by | 14 | | the Department to be appropriate, real or personal property | 15 | | that the Department may recover as a result of these | 16 | | actions. | 17 | | (e) The Department, in consultation with the Department of | 18 | | Revenue, shall adopt rules to administer this Section. The | 19 | | aggregate amount of the tax credits that may be claimed under | 20 | | this Section for qualified education expenses incurred by an | 21 | | employer on behalf of a qualifying apprentice shall be limited | 22 | | to $5,000,000 per calendar year. If applications for a greater | 23 | | amount are received, credits shall be allowed on a first-come | 24 | | first-served basis, based on the date on which each properly | 25 | | completed application for a certificate of eligibility is | 26 | | received by the Department. If more than one certificate is |
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| 1 | | received on the same day, the credits will be awarded based on | 2 | | the time of submission for that particular day. | 3 | | (f) An employer may not sell or otherwise transfer a credit | 4 | | awarded under this Section to another person or taxpayer. | 5 | | (g) The employer shall provide the Department such | 6 | | information as the Department may require, including but not | 7 | | limited to: (i) the name, age, and taxpayer identification | 8 | | number of each qualifying apprentice employed by the taxpayer | 9 | | during the taxable year; (ii) the amount of qualified education | 10 | | expenses incurred with respect to each qualifying apprentice; | 11 | | and (iii) the name of the school at which the qualifying | 12 | | apprentice is enrolled and the qualified education expenses are | 13 | | incurred. | 14 | | (h) On or before July 1 of each year, the Department shall | 15 | | report to the Governor and the General Assembly on the tax | 16 | | credit certificates awarded under this Section for the prior | 17 | | calendar year. The report must include: | 18 | | (1) the name of each employer awarded or allocated a | 19 | | credit; | 20 | | (2) the number of qualifying apprentices for whom the | 21 | | employer has incurred qualified education expenses; | 22 | | (3) the North American Industry Classification System | 23 | | (NAICS) code applicable to each employer awarded or | 24 | | allocated a credit; | 25 | | (4) the amount of the credit awarded or allocated to | 26 | | each employer; |
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| 1 | | (5) the total number of employers awarded or allocated | 2 | | a credit; | 3 | | (6) the total number of qualifying apprentices for whom | 4 | | employers receiving credits under this Section incurred | 5 | | qualified education expenses; and | 6 | | (7) the average cost to the employer of all | 7 | | apprenticeships receiving credits under this Section.
| 8 | | (Source: P.A. 101-207, eff. 8-2-19; revised 9-5-19.)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
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