Illinois General Assembly - Full Text of SB3882
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Full Text of SB3882  102nd General Assembly


Sen. Laura Fine

Filed: 2/17/2022





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2    AMENDMENT NO. ______. Amend Senate Bill 3882, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 1. Short title. This Article may be cited as the
6Recovery and Mental Health Tax Credit Act. References in this
7Article to "this Act" mean this Article.
8    Section 5. Findings.
9    (a) In the interest of reducing stigma and increasing the
10available pool of potential employees, the General Assembly
11finds and declares that those residents of Illinois diagnosed
12with mental illness and substance use disorders should be
13eligible for and encouraged to seek gainful employment.
14    (b) The General Assembly finds and declares that minority
15communities in this State have been more negatively impacted
16in employment opportunities for minority residents diagnosed



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1with mental illness and substance use disorders and should
2receive additional employment opportunities and incentives for
3employing minority residents diagnosed with mental illness or
4substance use disorders.
5    (c) Due to the COVID-19 public health emergency, employers
6in the State of Illinois have suffered negative economic
7impacts, a loss in workforce, staffing difficulties, and have
8found it difficult to recruit new workers.
9    (d) In the interest of providing additional employment
10opportunities for those residents of Illinois diagnosed with
11mental illness or substance use disorders and expanding the
12pool of potential workers in this State, the General Assembly
13finds and declares that certain qualified employers who employ
14eligible individuals should be eligible for a tax credit.
15    Section 10. Definitions. As used in this Act:
16    "Department" means the Department of Human Services.
17    "Eligible individual" means an individual with a substance
18use disorder, as that term is defined under Section 1-10 of the
19Substance Use Disorder Act, or an individual with a mental
20illness as that term is defined under Section 1-129 of the
21Mental Health and Developmental Disabilities Code, who is in a
22state of wellness and recovery where there is an abatement of
23signs and symptoms that characterize active substance use
24disorder or mental illness and has demonstrated to the
25qualified employer's satisfaction, pursuant to rules adopted



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1by the Department, that he or she has completed a course of
2treatment or is currently in receipt of treatment for such
3substance use disorder or mental illness. A relapse in an
4individual's state of wellness shall not make the individual
5ineligible, so long as the individual shows a continued
6commitment to recovery that aligns with an individual's
7relapse prevention plan, discharge plan, or recovery plan.
8    "Qualified employer" means an employer operating within
9the State that has received a certificate of tax credit from
10the Department after the Department has determined that the
12        (1) provides a recovery supportive environment for
13    their employees evidenced by a formal working relationship
14    with a substance use disorder treatment provider or
15    facility or mental health provider or facility, each as
16    may be licensed or certified within the State of Illinois,
17    and providing reasonable accommodation to the employees to
18    address their substance use disorder or mental illness,
19    all at no cost or expense to the eligible individual; and
20        (2) satisfies all other criteria in this Section and
21    established by the Department to participate in the
22    recovery tax program created hereunder.
23     "Taxpayer" means any individual, corporation,
24partnership, trust, or other entity subject to the Illinois
25income tax. For the purposes of this Act, 2 individuals filing
26a joint return shall be considered one taxpayer.



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1    Section 15. Authorization of tax credit program for
2individuals in recovery from substance use disorders or mental
4    (a) For taxable years beginning on or after January 1,
52023, the Department is authorized to and shall establish and
6administer a recovery tax credit program to provide tax
7incentives to qualified employers who employ eligible
8individuals in recovery from a substance use disorder or
9mental illness in part-time and full-time positions within
10Illinois. The Department shall award the tax credit by
11issuance of a certificate of tax credit to the qualified
12employer, who will present the certificate of tax credit to
13the Department of Revenue by attaching the certificate to its
14tax return, as a credit against the qualified employer's
15income tax liability in accordance with the Illinois Income
16Tax Act. The Department shall maintain an electronic listing
17of the certificates issued by which the Department of Revenue
18may verify tax credit certificates issued.
19    (b) To be a qualified employer, an employer must apply
20annually to the Department to claim a credit based upon
21eligible individuals employed during the preceding calendar
22year, using the forms prescribed by the Department. To be
23approved for a credit under this Act, the employer must:
24        (1) agree to provide to the Department the information
25    necessary to demonstrate that the employer has satisfied



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1    program eligibility requirements and provided all
2    information requested or needed by the Department,
3    including the number of hours worked by the eligible
4    individual and other information necessary for the
5    Department to calculate the amount of credit permitted;
6    and
7        (2) agree to provide names, employer identification
8    numbers, amounts that the employer may claim, and other
9    information necessary for the Department to calculate any
10    tax credit.
11    (c) To be an eligible individual, the individual must be
12diagnosed with or have been diagnosed with a substance use
13disorder or mental illness. Disclosure by the eligible
14individual of his or her mental illness or substance use
15disorder shall be completely voluntary and his or her health
16information may not be shared or disclosed under this Act
17without the eligible individual's express written consent. The
18eligible individual must have been employed by the qualified
19employer in this State for a minimum of 500 hours during the
20applicable calendar year and the tax credit may only begin on
21the date the eligible individual is hired by the qualified
22employer and ending on December 31 of that calendar year or the
23date that the eligible individual's employment with the
24qualified employer ends, whichever occurs first. Only one tax
25credit may be awarded for any eligible individual while
26employed by the same or related qualified employer. The hours



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1of employment of 2 or more eligible individuals may not be
2aggregated to reach the minimum number of hours. If an
3eligible individual has worked in excess of 500 hours between
4the date of hiring and December 31 of that year, a qualified
5employer can elect to compute and claim a credit for such
6eligible individual in that year based on the hours worked by
7December 31. Alternatively, the qualified employer may elect
8to include such individual in the computation of the credit in
9the year immediately succeeding the year in which the eligible
10individual was hired. In that case, the credit shall be
11computed on the basis of all hours worked by the eligible
12individual from the date of hire to the earlier of the last day
13of employment or December 31 of the succeeding year.
14    (d) If Department criteria and all other requirements are
15met, a qualified employer shall be entitled to a tax credit
16equal to the product of $1 and the number of hours worked by
17each eligible individual during the eligible individual's
18period of employment with the qualified employer. The tax
19credit awarded under this Act may not exceed $2,000 per
20eligible individual employed by the qualified employer in this
21State. In determining the amount of tax credit that any
22qualified employer may claim, the Department shall review all
23claims submitted for credit by all employers and, to the
24extent that the total amount claimed by employers exceeds the
25amount allocated for this program in that calendar year, shall
26issue tax credits on a pro rata basis corresponding to each



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1qualified employer's share of the total amount claimed.
2    (e) The aggregate amount of all credits the Department may
3award under this Act in any calendar year may not exceed
5    (f) A taxpayer who is a qualified employer who has
6received a certificate of tax credit from the Department shall
7be allowed a credit against the tax imposed equal to the amount
8shown on such certificate of tax credit.
9    (g) The credit must be claimed in the taxable year in which
10the tax credit certificate is issued. The credit cannot reduce
11a taxpayer's liability to less than zero. If the amount of the
12credit exceeds the tax liability for the year, the credit may
13not be carried forward.
14    (h) If the taxpayer is a partnership or Subchapter S
15corporation the credit shall be allowed to the partners or
16shareholders in accordance with the determination of income
17and distributive share of income under Sections 702 and 704
18and subchapter S of the Internal Revenue Code.
19    (i) In carrying out this Act, no patient-specific
20information shall be shared or disclosed. Any individual or
21patient-specific information collected by the Department or
22the Department of Revenue shall not be subject to public
23disclosure or Freedom of Information Act requests.
24    (j) The credit under this Act is exempt from the
25provisions of Section 250 of the Illinois Income Tax Act.



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1    Section 20. Advisory Council on Mental Illness and
2Substance Use Disorder Impacts on Employment Opportunities
3within Minority Communities. The Secretary of the Department
4shall appoint the Advisory Council on Mental Illness and
5Substance Use Disorder Impacts on Employment Opportunities
6within Minority Communities, to be composed of 15 members,
7which shall include a balanced representation of recipients,
8services providers, employers, local governmental units,
9community and welfare advocacy groups, academia, and the
10general public. The Advisory Council shall advise the
11Department regarding all aspects of employment impacts
12resulting from mental illnesses and substance use disorders
13within minority communities, tax credits, outreach, marketing,
14and education about the tax credit and employment
15opportunities, and other areas as deemed appropriate by the
16Secretary. In appointing the first Council, the Secretary
17shall name 8 members to terms of 2 years and 7 members to serve
18terms of 4 years, all of whom shall be appointed within 6
19months of the effective date of this Act. All members
20appointed thereafter shall serve terms of 4 years. Members
21shall serve without compensation other than reimbursement of
22expenses actually incurred in the performance of their
23official duties. At its first meeting, the Advisory Council
24shall select a chair from among its members. The Advisory
25Council shall meet at least quarterly and at other times at the
26call of the chair.



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1    Section 25. Powers. The Department shall adopt rules for
2the administration of this Act. The Department may enter into
3an intergovernmental agreement with the Department of Revenue
4for the administration of this Act.
5    Section 30. The Illinois Income Tax Act is amended by
6adding Section 232 as follows:
7    (35 ILCS 5/232 new)
8    Sec. 232. Recovery and Mental Health Tax Credit Act. For
9taxable years beginning on or after January 1, 2023, a
10taxpayer who has been awarded a credit under the Recovery and
11Mental Health Tax Credit Act is entitled to a credit against
12the tax imposed by subsections (a) and (b) of Section 201 as
13provided in that Act. This Section is exempt from the
14provisions of Section 250.".