Full Text of HB2920 101st General Assembly
HB2920 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2920 Introduced , by Rep. Justin Slaughter SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/229 new | | 215 ILCS 5/121-2.08 | from Ch. 73, par. 733-2.08 |
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Amends the Illinois Income Tax Act. Creates an income tax credit and a credit against insurance premium taxes for business entities for the cost of providing certain commuter benefits to employees. Provides that the credit shall be equal to 50% of the cost of providing the eligible commuter benefits, but not to exceed $100 per individual employee per month.
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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 229 as follows: | 6 | | (35 ILCS 5/229 new) | 7 | | Sec. 229. Commuter benefits credit. | 8 | | (a) As used in this Section: | 9 | | "Business entity" means (i) A person conducting or | 10 | | operating a trade or business in the State; or (ii) an | 11 | | organization operating in the State that is exempt from | 12 | | taxation under § 501(c)(3) or (4) of the Internal Revenue Code. | 13 | | "Instrument" means a pass, token, fare-card, voucher, or | 14 | | similar item. | 15 | | "Ride-sharing" means for-profit driving services, taxis, | 16 | | rental car agencies or non-commercial transportation services. | 17 | | (b) A business entity interested in claiming the tax | 18 | | credits for the cost of providing commuter benefits to its | 19 | | employees must complete the Illinois Commuter Tax Credit | 20 | | Registration Form for each tax year and submit it to the | 21 | | Department. The registration form should be filed with the | 22 | | Department as soon as possible after the decision is made to | 23 | | seek qualification for the credit, but no later than the last |
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| 1 | | day of the taxable year in which the credit will be claimed. | 2 | | (c) For taxable years beginning after December 31, 2019, a | 3 | | business entity may claim a credit against the tax imposed by | 4 | | subsections (a) and (b) of Section 201 of this Act or the tax | 5 | | imposed by subsection (c) of Section 121-2.08 of the Illinois | 6 | | Insurance Code for the cost of providing either or both of the | 7 | | following commuter benefits to its employees: | 8 | | (1) a vanpool that meets the following criteria and is | 9 | | provided for the purpose of travel between an employee's | 10 | | residence and place of employment if the transportation is | 11 | | to or from a location in Illinois: (A) the vehicle must | 12 | | have seating capacity for at least 6 adult individuals; (B) | 13 | | at least 80% of the annual mileage incurred must be between | 14 | | the employees' residences and their places of employment; | 15 | | and (C) the number of employees transported must be at | 16 | | least one-half of that vehicle's adult seating capacity; or | 17 | | (2) an instrument that entitles an employee, at no | 18 | | added cost or at a reduced fare, to transportation to or | 19 | | from a location in Illinois on a publicly-owned or | 20 | | privately-owned mass transit system, taxi service, or | 21 | | ride-sharing service. | 22 | | The credit shall be equal to 50% of the cost of providing | 23 | | the eligible commuter benefits. The credit allowed may not | 24 | | exceed $100 per individual employee per month. The total credit | 25 | | allowed may not exceed the total tax otherwise payable by the | 26 | | business entity for that taxable year determined after the |
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| 1 | | application of any other credit, and the unused amount of the | 2 | | credit may not be carried over to any other taxable year. | 3 | | (d) Partners, shareholders of subchapter S corporations, | 4 | | and owners of limited liability companies (if the limited | 5 | | liability company is treated as a partnership for purposes of | 6 | | federal and State income taxation) are entitled to a credit | 7 | | under this Section to be determined in accordance with the | 8 | | determination of income and distributive share of income under | 9 | | Sections 702 and 703 and subchapter S of the Internal Revenue | 10 | | Code. | 11 | | (e) This Section is exempt from the provisions of Section | 12 | | 250.
| 13 | | Section 10. The Illinois Insurance Code is amended by | 14 | | changing Section 121-2.08 as follows:
| 15 | | (215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)
| 16 | | Sec. 121-2.08. Transactions in this State involving | 17 | | contracts of
insurance independently procured directly from an | 18 | | unauthorized insurer by industrial insureds. | 19 | | (a) As used in this Section: | 20 | | "Exempt commercial purchaser" means exempt commercial | 21 | | purchaser as the term is defined in subsection (1) of Section | 22 | | 445 of this Code. | 23 | | "Home state" means home state as the term is defined in | 24 | | subsection (1) of Section 445 of this Code. |
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| 1 | | "Industrial insured" means an insured:
| 2 | | (i) that procures the insurance of any risk or risks of | 3 | | the kinds specified in Classes 2 and 3 of Section 4 of this | 4 | | Code by use of the services of a full-time employee who is | 5 | | a qualified risk manager or the services of a regularly and
| 6 | | continuously retained consultant who is a qualified risk | 7 | | manager;
| 8 | | (ii) that procures the insurance directly from an | 9 | | unauthorized insurer without the services of an | 10 | | intermediary insurance producer; and
| 11 | | (iii) that is an exempt commercial purchaser whose home | 12 | | state is Illinois.
| 13 | | "Insurance producer" means insurance producer as the term | 14 | | is defined in Section 500-10 of this Code. | 15 | | "Qualified risk manager" means qualified risk manager as | 16 | | the term is defined in subsection (1) of Section 445 of this | 17 | | Code. | 18 | | "Safety-Net Hospital" means an Illinois hospital that | 19 | | qualifies as a Safety-Net Hospital under Section 5-5e.1 of the | 20 | | Illinois Public Aid Code. | 21 | | "Unauthorized insurer" means unauthorized insurer as the | 22 | | term is defined in subsection (1) of Section 445 of this Code. | 23 | | (b) For contracts of insurance effective January 1, 2015 or | 24 | | later, within 90 days after the effective date of each contract | 25 | | of insurance issued under this Section, the insured shall file | 26 | | a report with the Director by submitting the report to the |
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| 1 | | Surplus Line Association of Illinois in writing or in a | 2 | | computer readable format and provide information as designated | 3 | | by the Surplus Line Association of Illinois. The information in | 4 | | the report shall be substantially similar to that required for | 5 | | surplus line submissions as described in subsection (5) of | 6 | | Section 445 of this Code. Where applicable, the report shall | 7 | | satisfy, with respect to the subject insurance, the reporting | 8 | | requirement of Section 12 of the Fire Investigation Act. | 9 | | (c) For contracts of insurance effective January 1, 2015 | 10 | | through December 31, 2017, within 30 days after filing the | 11 | | report, the insured shall pay to the Director for the use and | 12 | | benefit of the State a sum equal to the gross premium of the | 13 | | contract of insurance multiplied by the surplus line tax rate, | 14 | | as described in paragraph (3) of subsection (a) of Section 445 | 15 | | of this Code, and shall pay the fire marshal tax that would | 16 | | otherwise be due annually in March for insurance subject to tax | 17 | | under Section 12 of the Fire Investigation Act. For contracts | 18 | | of insurance effective January 1, 2018 or later, within 30 days | 19 | | after filing the report, the insured shall pay to the Director | 20 | | for the use and benefit of the State a sum equal to 0.5% of the | 21 | | gross premium of the contract of insurance, and shall pay the | 22 | | fire marshal tax that would otherwise be due annually in March | 23 | | for insurance subject to tax under Section 12 of the Fire | 24 | | Investigation Act. For contracts of insurance effective | 25 | | January 1, 2015 or later, within 30 days after filing the | 26 | | report, the insured shall pay to the Surplus Line Association |
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| 1 | | of Illinois a countersigning fee that shall be assessed at the | 2 | | same rate charged to members pursuant to subsection (4) of | 3 | | Section 445.1 of this Code. An insured is entitled to a credit | 4 | | against the tax imposed under this Section as provided in | 5 | | Section 229 of the Illinois Income Tax Act. | 6 | | (d) For contracts of insurance effective January 1, 2015 or | 7 | | later, the insured shall withhold the amount of the taxes and | 8 | | countersignature fee from the amount of premium charged by and | 9 | | otherwise payable to the insurer for the insurance. If the | 10 | | insured fails to withhold the tax and countersignature fee from | 11 | | the premium, then the insured shall be liable for the amounts | 12 | | thereof and shall pay the amounts as prescribed in subsection | 13 | | (c) of this Section. | 14 | | (e) Contracts of insurance with an industrial insured that | 15 | | qualifies as a Safety-Net Hospital are not subject to | 16 | | subsections (b) through (d) of this Section. | 17 | | (Source: P.A. 100-535, eff. 9-22-17; 100-1118, eff. 11-27-18.)
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