Full Text of HB2332 101st General Assembly
HB2332 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2332 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also extends to wages paid to a qualified veteran's spouse. Provides that active duty member of the United States Armed Forces are also considered "qualified veterans". Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
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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 as follows: | 6 | | (35 ILCS 5/217)
| 7 | | Sec. 217. Credit for wages paid to qualified veterans and | 8 | | spouses of qualified veterans . | 9 | | (a) For each taxable year beginning on or after January 1, | 10 | | 2007 and ending on or before December 30, 2010, each taxpayer | 11 | | is entitled to a credit against the tax imposed by subsections | 12 | | (a) and (b) of Section 201 of this Act in an amount equal to 5%, | 13 | | but in no event to exceed $600, of the gross wages paid by the | 14 | | taxpayer to a qualified veteran in the course of that veteran's | 15 | | sustained employment during the taxable year. For each taxable | 16 | | year that begins beginning on or after January 1, 2010 and | 17 | | begins prior to January 1, 2015 , each taxpayer is entitled to a | 18 | | credit against the tax imposed by subsections (a) and (b) of | 19 | | Section 201 of this Act in an amount equal to 10%, but in no | 20 | | event to exceed $1,200, of the gross wages paid by the taxpayer | 21 | | to a qualified veteran in the course of that veteran's | 22 | | sustained employment during the taxable year. For each taxable | 23 | | year that begins on or after January 1, 2019 and begins prior |
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| 1 | | to January 1, 2024, each taxpayer is entitled to a credit | 2 | | against the tax imposed by subsections (a) and (b) of Section | 3 | | 201 of this Act in an amount equal to 10%, but in no event to | 4 | | exceed $1,200, of the gross wages paid by the taxpayer to a | 5 | | qualified veteran or the spouse of a qualified veteran in the | 6 | | course of that veteran's or spouse's sustained employment | 7 | | during the taxable year. For partners, shareholders of | 8 | | Subchapter S corporations, and owners of limited liability | 9 | | companies, if the liability company is treated as a partnership | 10 | | for purposes of federal and State income taxation, there shall | 11 | | be allowed a credit under this Section to be determined in | 12 | | accordance with the determination of income and distributive | 13 | | share of income under Sections 702 and 704 and Subchapter S of | 14 | | the Internal Revenue Code. | 15 | | (b) For purposes of this Section: | 16 | | "Active duty member of the United States Armed Forces" | 17 | | means a member of the Armed Services or Reserve Forces of the | 18 | | United States or a member of the Illinois National Guard who is | 19 | | called to active duty pursuant to an executive order of the | 20 | | President of the United States, an act of the Congress of the | 21 | | United States, or an order of the Governor. | 22 | | "Qualified veteran" means an Illinois resident who is an | 23 | | active duty member of the United States Armed Forces or who | 24 | | meets the following criteria : (i) the person was a member of | 25 | | the Armed Forces of the United States, a member of the Illinois | 26 | | National Guard, or a member of any reserve component of the |
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| 1 | | Armed Forces of the United States; (ii) the person served on | 2 | | active duty in connection with Operation Desert Storm, | 3 | | Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) | 4 | | the person has provided, to the taxpayer, documentation showing | 5 | | that he or she was honorably discharged; and (iv) the person | 6 | | was initially hired by the taxpayer on or after January 1, | 7 | | 2007. | 8 | | "Sustained employment" means a period of employment that is | 9 | | not less than 185 days during the taxable year. | 10 | | (c) In no event shall a credit under this Section reduce | 11 | | the taxpayer's liability to less than zero. If the amount of | 12 | | the credit exceeds the tax liability for the year, the excess | 13 | | may be carried forward and applied to the tax liability of the | 14 | | 5 taxable years following the excess credit year. The tax | 15 | | credit shall be applied to the earliest year for which there is | 16 | | a tax liability. If there are credits for more than one year | 17 | | that are available to offset a liability, the earlier credit | 18 | | shall be applied first.
| 19 | | (d) A taxpayer who claims a credit under this Section for a | 20 | | taxable year with respect to a veteran shall not be allowed a | 21 | | credit under Section 217.1 of this Act with respect to the same | 22 | | veteran for that taxable year. | 23 | | (Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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