Full Text of HB2827 98th General Assembly
HB2827 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB2827 Introduced , by Rep. Derrick Smith SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Provides that each business that employs 20 or fewer employees during the taxable year is entitled to a credit in an amount equal to (i) 25% of the qualified first-year wages, not to exceed $6,000, paid to each qualified employee who worked at least 120 hours but less than 400 hours during the taxable year, and (ii) 40% of the qualified first-year wages, not to exceed $6,000, paid to each qualified employee who worked at least 400 hours during the taxable year. Provides that the term "qualified employee" means a person who (i) is a member of a targeted group, as defined under the federal Work Opportunity Tax Credit, and (ii) was employed by the taxpayer for a period of exactly 12 consecutive months at any point during the taxable year. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | HB2827 | | LRB098 06131 HLH 36172 b |
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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. Work opportunity tax credit. | 8 | | (a) For taxable years ending on or after December 31, 2013, | 9 | | each small employer in the State is entitled to a credit | 10 | | against the tax imposed under subsections (a) and (b) of | 11 | | Section 201 in an amount equal to (i) 25% of the qualified | 12 | | first-year wages, not to exceed $6,000, paid to each qualified | 13 | | employee who worked at least 120 hours but less than 400 hours | 14 | | during the taxable year, and (ii) 40% of the qualified | 15 | | first-year wages, not to exceed $6,000, paid to each qualified | 16 | | employee who worked at least 400 hours during the taxable year. | 17 | | (b) For the purposes of this Section: | 18 | | "Qualified employee" means a person who (i) is a member of | 19 | | a targeted group, as defined in subsection (d) of Section 51 of | 20 | | the Internal Revenue Code (the federal Work Opportunity Tax | 21 | | Credit), and (ii) was employed by the taxpayer for a period of | 22 | | exactly 12 consecutive months at any point during the taxable | 23 | | year. |
| | | HB2827 | - 2 - | LRB098 06131 HLH 36172 b |
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| 1 | | "Qualified first-year wages" means, with respect to a | 2 | | qualified employee, qualified wages attributable to services | 3 | | rendered during the one-year period beginning on the date the | 4 | | individual begins work for the taxpayer. | 5 | | "Small employer" means a business that employs 20 or fewer | 6 | | employees at a location in the State during the taxable year. | 7 | | (c) The tax credit may not reduce the taxpayer's liability | 8 | | to less than
zero. If the amount of the tax credit exceeds the | 9 | | tax liability for the year,
the excess may be carried forward | 10 | | and applied to the tax liability of the 5
taxable years | 11 | | following the excess credit year. The credit must be applied to
| 12 | | the earliest year for which there is a tax liability. If there | 13 | | are credits
from more than one tax year that are available to | 14 | | offset a liability, then the
earlier credit must be applied | 15 | | first. | 16 | | (d) This Section is exempt from the provisions of Section | 17 | | 250.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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