Full Text of HB2565 98th General Assembly
HB2565 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB2565 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Creates a credit in an amount equal $500 times the number of full-time Illinois employees of a certified new business firm and its corresponding sponsor firm in each of the 3 years after the firm is certified as a new business. 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 adding | 5 | | Section 224 as follows: | 6 | | (35 ILCS 5/224 new) | 7 | | Sec. 224. Certified new business credit. | 8 | | (a) For taxable years beginning on or after January 1, | 9 | | 2014, each sponsor firm and each certified new business firm is | 10 | | entitled to a credit against the
tax imposed by subsections (a) | 11 | | and (b) of Section 201 in an amount equal $500 times the number | 12 | | of full-time Illinois employees of the certified new business | 13 | | firm in each of the 3 years after the firm is certified as a new | 14 | | business. | 15 | | (b) "Certified new business firm" or "new business firm" | 16 | | means a business that is certified by the Department under this | 17 | | Section. To qualify as a certified new business, the business | 18 | | must: | 19 | | (1) be a validly organized and existing corporation, | 20 | | limited liability company, limited partnership, general | 21 | | partnership, limited liability partnership, or sole | 22 | | proprietorship; | 23 | | (2) have been doing business for at least 3 years at |
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| 1 | | the time it applies for the credit; | 2 | | (3) have a place of business outside of the State at | 3 | | the time of application; | 4 | | (4) not have had a place of business within the State | 5 | | for at least 3 years at the time it applies for the credit; | 6 | | and | 7 | | (5) not be a tenant or affiliate of the sponsor firm. | 8 | | "Department" means the Department of Commerce and Economic | 9 | | Opportunity. | 10 | | "Sponsor firm" means a business that: | 11 | | (1) is a validly organized and existing corporation, | 12 | | limited liability company, limited partnership, general | 13 | | partnership, limited liability partnership, or sole | 14 | | proprietorship; | 15 | | (2) has been doing business in Illinois for at least 3 | 16 | | years at the time it applies for the credit; | 17 | | (3) has not entered into a rental agreement for a | 18 | | commercial rental unit with the new business firm; and | 19 | | (4) is not a real estate agency, real estate developer, | 20 | | or landlord for the new business firm, or a bank or other | 21 | | lender who provides financing for the new business firm; | 22 | | and | 23 | | (5) is not an affiliate of a new business firm. | 24 | | (c) The certified new business firm and the sponsor firm | 25 | | shall complete a joint application with the Department prior to | 26 | | receiving credits under this Act. The Department may not |
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| 1 | | approve more than $3,000,000 in credits in any State fiscal | 2 | | year. | 3 | | (d) The tax credit may not reduce the taxpayer's liability | 4 | | to less than zero. If the amount of the tax credit exceeds the | 5 | | tax liability for the year, the excess may be carried forward | 6 | | and applied to the tax liability of the 5 taxable years | 7 | | following the excess credit year. The credit must be applied to | 8 | | the earliest year for which there is a tax liability. If there | 9 | | are credits from more than one tax year that are available to | 10 | | offset a liability, then the earlier credit must be applied | 11 | | first. | 12 | | (e) For partners, shareholders of Subchapter S | 13 | | corporations, and owners of limited liability companies, if the | 14 | | liability company is treated as a partnership for purposes of | 15 | | federal and State income taxation, the credit under allowed | 16 | | this Section shall be determined in accordance with the | 17 | | determination of income and distributive share of income under | 18 | | Sections 702 and 704 and Subchapter S of the Internal Revenue | 19 | | Code.
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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