Full Text of SB3089 96th General Assembly
SB3089enr 96TH GENERAL ASSEMBLY
|
|
|
SB3089 Enrolled |
|
LRB096 18724 HLH 34109 b |
|
| 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 704A as follows: | 6 |
| (35 ILCS 5/704A) | 7 |
| Sec. 704A. Employer's return and payment of tax withheld. | 8 |
| (a) In general, every employer who deducts and withholds or | 9 |
| is required to deduct and withhold tax under this Act on or | 10 |
| after January 1, 2008 shall make those payments and returns as | 11 |
| provided in this Section. | 12 |
| (b) Returns. Every employer shall, in the form and manner | 13 |
| required by the Department, make returns with respect to taxes | 14 |
| withheld or required to be withheld under this Article 7 for | 15 |
| each quarter beginning on or after January 1, 2008, on or | 16 |
| before the last day of the first month following the close of | 17 |
| that quarter. | 18 |
| (c) Payments. With respect to amounts withheld or required | 19 |
| to be withheld on or after January 1, 2008: | 20 |
| (1) Semi-weekly payments. For each calendar year, each | 21 |
| employer who withheld or was required to withhold more than | 22 |
| $12,000 during the one-year period ending on June 30 of the | 23 |
| immediately preceding calendar year, payment must be made: |
|
|
|
SB3089 Enrolled |
- 2 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| (A) on or before each Friday of the calendar year, | 2 |
| for taxes withheld or required to be withheld on the | 3 |
| immediately preceding Saturday, Sunday, Monday, or | 4 |
| Tuesday; | 5 |
| (B) on or before each Wednesday of the calendar | 6 |
| year, for taxes withheld or required to be withheld on | 7 |
| the immediately preceding Wednesday, Thursday, or | 8 |
| Friday. | 9 |
| (2) Semi-weekly payments. Any employer who withholds | 10 |
| or is required to withhold more than $12,000 in any quarter | 11 |
| of a calendar year is required to make payments on the | 12 |
| dates set forth under item (1) of this subsection (c) for | 13 |
| each remaining quarter of that calendar year and for the | 14 |
| subsequent calendar year.
| 15 |
| (3) Monthly payments. Each employer, other than an | 16 |
| employer described in items (1) or (2) of this subsection, | 17 |
| shall pay to the Department, on or before the 15th day of | 18 |
| each month the taxes withheld or required to be withheld | 19 |
| during the immediately preceding month. | 20 |
| (4) Payments with returns. Each employer shall pay to | 21 |
| the Department, on or before the due date for each return | 22 |
| required to be filed under this Section, any tax withheld | 23 |
| or required to be withheld during the period for which the | 24 |
| return is due and not previously paid to the Department. | 25 |
| (d) Regulatory authority. The Department may, by rule: | 26 |
| (1) If the aggregate amounts required to be withheld |
|
|
|
SB3089 Enrolled |
- 3 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| under this Article 7 do not exceed $1,000 for the calendar | 2 |
| year, permit employers, in lieu of the requirements of | 3 |
| subsections (b) and (c), to file annual returns due on or | 4 |
| before January 31 of the following year for taxes withheld | 5 |
| or required to be withheld during that calendar year and to | 6 |
| pay the taxes required to be shown on each such return no | 7 |
| later than the due date for such return. | 8 |
| (2) Provide that any payment required to be made under | 9 |
| subsection (c)(1) or (c)(2) is deemed to be timely to the | 10 |
| extent paid by electronic funds transfer on or before the | 11 |
| due date for deposit of federal income taxes withheld from, | 12 |
| or federal employment taxes due with respect to, the wages | 13 |
| from which the Illinois taxes were withheld. | 14 |
| (3) Designate one or more depositories to which payment | 15 |
| of taxes required to be withheld under this Article 7 must | 16 |
| be paid by some or all employers. | 17 |
| (4) Increase the threshold dollar amounts at which | 18 |
| employers are required to make semi-weekly payments under | 19 |
| subsection (c)(1) or (c)(2). | 20 |
| (e) Annual return and payment. Every employer who deducts | 21 |
| and withholds or is required to deduct and withhold tax from a | 22 |
| person engaged in domestic service employment, as that term is | 23 |
| defined in Section 3510 of the Internal Revenue Code, may | 24 |
| comply with the requirements of this Section with respect to | 25 |
| such employees by filing an annual return and paying the taxes | 26 |
| required to be deducted and withheld on or before the 15th day |
|
|
|
SB3089 Enrolled |
- 4 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| of the fourth month following the close of the employer's | 2 |
| taxable year. The Department may allow the employer's return to | 3 |
| be submitted with the employer's individual income tax return | 4 |
| or to be submitted with a return due from the employer under | 5 |
| Section 1400.2 of the Unemployment Insurance Act. | 6 |
| (f) Magnetic media and electronic filing. Any W-2 Form | 7 |
| that, under the Internal Revenue Code and regulations | 8 |
| promulgated thereunder, is required to be submitted to the | 9 |
| Internal Revenue Service on magnetic media or electronically | 10 |
| must also be submitted to the Department on magnetic media or | 11 |
| electronically for Illinois purposes, if required by the | 12 |
| Department. | 13 |
| (g) For amounts deducted or withheld after December 31, | 14 |
| 2009, a taxpayer who makes an election under subsection (f) of | 15 |
| Section 5-15 5-15(f) of the Economic Development for a Growing | 16 |
| Economy Tax Credit Act for a taxable year shall be allowed a | 17 |
| credit against payments due under this Section for amounts | 18 |
| withheld during the first calendar year beginning after the end | 19 |
| of that taxable year equal to the amount of the credit for the | 20 |
| incremental income tax attributable to full-time employees of | 21 |
| the taxpayer awarded to the taxpayer by the Department of | 22 |
| Commerce and Economic Opportunity under the Economic | 23 |
| Development for a Growing Economy Tax Credit Act for the | 24 |
| taxable year and credits not previously claimed and allowed to | 25 |
| be carried forward under Section 211(4) of this Act as provided | 26 |
| in subsection (f) of Section 5-15 of the Economic Development |
|
|
|
SB3089 Enrolled |
- 5 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| for a Growing Economy Tax Credit Act . The credit or credits may | 2 |
| not reduce the taxpayer's obligation for any payment due under | 3 |
| this Section to less than zero. If the amount of the credit or | 4 |
| credits exceeds the total payments due under this Section with | 5 |
| respect to amounts withheld during the calendar year, the | 6 |
| excess may be carried forward and applied against the | 7 |
| taxpayer's liability under this Section in the 5 succeeding | 8 |
| calendar years as allowed to be carried forward under paragraph | 9 |
| (4) of Section 211 of this Act . The credit or credits shall be | 10 |
| applied to the earliest year for which there is a tax | 11 |
| liability. If there are credits from more than one taxable year | 12 |
| that are available to offset a liability, the earlier credit | 13 |
| shall be applied first. Each employer who deducts and withholds | 14 |
| or is required to deduct and withhold tax under this Act and | 15 |
| who retains income tax withholdings under subsection (f) of | 16 |
| Section 5-15 of the Economic Development for a Growing Economy | 17 |
| Tax Credit Act must make a return with respect to such taxes | 18 |
| and retained amounts in the form and manner that the | 19 |
| Department, by rule, requires and pay to the Department or to a | 20 |
| depositary designated by the Department those withheld taxes | 21 |
| not retained by the taxpayer. For purposes of this subsection | 22 |
| (g), the term taxpayer shall include taxpayer and members of | 23 |
| the taxpayer's unitary business group as defined under | 24 |
| paragraph (27) of subsection (a) of Section 1501 of this Act. | 25 |
| This Section is exempt from the provisions of Section 250 of | 26 |
| this Act. |
|
|
|
SB3089 Enrolled |
- 6 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| (h) An employer may claim a credit against payments due | 2 |
| under this Section for amounts withheld during the first | 3 |
| calendar year ending after date on which a tax credit | 4 |
| certificate was issued under Section 35 of the Small Business | 5 |
| Job Creation Tax Credit Act. The credit shall be equal to the | 6 |
| amount shown on the certificate, but may not reduce the | 7 |
| taxpayer's obligation for any payment due under this Section to | 8 |
| less than zero. If the amount of the credit exceeds the total | 9 |
| payments due under this Section with respect to amounts | 10 |
| withheld during the calendar year, the excess may be carried | 11 |
| forward and applied against the taxpayer's liability under this | 12 |
| Section in the 5 succeeding calendar years. The credit shall be | 13 |
| applied to the earliest year for which there is a tax | 14 |
| liability. If there are credits from more than one calendar | 15 |
| year that are available to offset a liability, the earlier | 16 |
| credit shall be applied first. This Section is exempt from the | 17 |
| provisions of Section 250 of this Act. | 18 |
| (Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08; 96-834, | 19 |
| eff. 12-14-09; 96-888, eff. 4-13-10.) | 20 |
| Section 10. The Economic Development for a Growing Economy | 21 |
| Tax Credit Act is amended by changing Section 5-15 as follows: | 22 |
| (35 ILCS 10/5-15) | 23 |
| Sec. 5-15. Tax Credit Awards. Subject to the conditions set | 24 |
| forth in this
Act, a Taxpayer is
entitled to a Credit against |
|
|
|
SB3089 Enrolled |
- 7 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| or, as described in subsection (g) (f) of this Section, a | 2 |
| payment towards taxes imposed pursuant to subsections (a) and | 3 |
| (b)
of Section 201 of the Illinois
Income Tax Act that may be | 4 |
| imposed on the Taxpayer for a taxable year beginning
on or
| 5 |
| after January 1, 1999,
if the Taxpayer is awarded a Credit by | 6 |
| the Department under this Act for that
taxable year. | 7 |
| (a) The Department shall make Credit awards under this Act | 8 |
| to foster job
creation and retention in Illinois. | 9 |
| (b) A person that proposes a project to create new jobs in | 10 |
| Illinois must
enter into an Agreement with the
Department for | 11 |
| the Credit under this Act. | 12 |
| (c) The Credit shall be claimed for the taxable years | 13 |
| specified in the
Agreement. | 14 |
| (d) The Credit shall not exceed the Incremental Income Tax | 15 |
| attributable to
the project that is the subject of the | 16 |
| Agreement. | 17 |
| (e) Nothing herein shall prohibit a Tax Credit Award to an | 18 |
| Applicant that uses a PEO if all other award criteria are | 19 |
| satisfied.
| 20 |
| (f) In lieu of the Credit allowed under this Act against | 21 |
| the taxes imposed pursuant to subsections (a) and (b) of | 22 |
| Section 201 of the Illinois Income Tax Act for any taxable year | 23 |
| ending on or after December 31, 2009, the Taxpayer may elect to | 24 |
| claim the Credit against its obligation to pay over withholding | 25 |
| under Section 704A of the Illinois Income Tax Act. | 26 |
| (1) The election under this subsection (f) may be made |
|
|
|
SB3089 Enrolled |
- 8 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| only by a Taxpayer that (i) is primarily engaged in one of | 2 |
| the following business activities: motor vehicle metal | 3 |
| stamping, automobile manufacturing, automobile and light | 4 |
| duty motor vehicle manufacturing, motor vehicle | 5 |
| manufacturing, light truck and utility vehicle | 6 |
| manufacturing, heavy duty truck manufacturing, or motor | 7 |
| vehicle body manufacturing and (ii) meets the following | 8 |
| criteria: | 9 |
| (A) the Taxpayer (i) had an Illinois net loss or an | 10 |
| Illinois net loss deduction under Section 207 of the | 11 |
| Illinois Income Tax Act for the taxable year in which | 12 |
| the Credit is awarded, (ii) employed a minimum of 1,000 | 13 |
| full-time employees in this State during the taxable | 14 |
| year in which the Credit is awarded, (iii) has an | 15 |
| Agreement under this Act on December 14, 2009 ( the | 16 |
| effective date of Public Act 96-834) this amendatory | 17 |
| Act of the 96th General Assembly , and (iv) is in | 18 |
| compliance with all provisions of that Agreement; or | 19 |
| (B) the Taxpayer (i) had an Illinois net loss or an | 20 |
| Illinois net loss deduction under Section 207 of the | 21 |
| Illinois Income Tax Act for the taxable year in which | 22 |
| the Credit is awarded, (ii) employed a minimum of 1,000 | 23 |
| full-time employees in this State during the taxable | 24 |
| year in which the Credit is awarded, and (iii) has | 25 |
| applied for an Agreement within 365 180 days after | 26 |
| December 14, 2009 ( the effective date of Public Act |
|
|
|
SB3089 Enrolled |
- 9 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| 96-834); or this amendatory Act of the 96th General | 2 |
| Assembly. | 3 |
| (C) the Taxpayer (i) had an Illinois net operating | 4 |
| loss carryforward under Section 207 of the Illinois | 5 |
| Income Tax Act in a taxable year ending during calendar | 6 |
| year 2008, (ii) has applied for an Agreement within 150 | 7 |
| days after the effective date of this amendatory Act of | 8 |
| the 96th General Assembly, (iii) creates at least 400 | 9 |
| new jobs in Illinois, (iv) retains at least 2,000 jobs | 10 |
| in Illinois that would have been at risk of relocation | 11 |
| out of Illinois over a 10-year period, and (v) makes a | 12 |
| capital investment of at least $75,000,000. | 13 |
| (2) An election under this subsection shall allow the | 14 |
| credit to be taken against payments otherwise due under | 15 |
| Section 704A of the Illinois Income Tax Act during the | 16 |
| first calendar year beginning after the end of the taxable | 17 |
| year in which the credit is awarded under this Act. | 18 |
| (3) The election shall be made in the form and manner | 19 |
| required by the Illinois Department of Revenue and, once | 20 |
| made, shall be irrevocable. | 21 |
| (4) If a Taxpayer who meets the requirements of | 22 |
| subparagraph (A) of paragraph (1) of this subsection (f) | 23 |
| elects to claim the Credit against its withholdings as | 24 |
| provided in this subsection (f), then, on and after the | 25 |
| date of the election, the terms of the Agreement between | 26 |
| the Taxpayer and the Department may not be further amended |
|
|
|
SB3089 Enrolled |
- 10 - |
LRB096 18724 HLH 34109 b |
|
| 1 |
| during the term of the Agreement. | 2 |
| (g) (f) A pass-through entity that has been awarded a credit | 3 |
| under this Act, its shareholders, or its partners may treat | 4 |
| some or all of the credit awarded pursuant to this Act as a tax | 5 |
| payment for purposes of the Illinois Income Tax Act. The term | 6 |
| "tax payment" means a payment as described in Article 6 or | 7 |
| Article 8 of the Illinois Income Tax Act or a composite payment | 8 |
| made by a pass-through entity on behalf of any of its | 9 |
| shareholders or partners to satisfy such shareholders' or | 10 |
| partners' taxes imposed pursuant to subsections (a) and (b) of | 11 |
| Section 201 of the Illinois Income Tax Act. In no event shall | 12 |
| the amount of the award credited pursuant to this Act exceed | 13 |
| the Illinois income tax liability of the pass-through entity or | 14 |
| its shareholders or partners for the taxable year. | 15 |
| (Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09; | 16 |
| 96-836, eff. 12-16-09; revised 12-21-09.)
| 17 |
| Section 99. Effective date. This Act takes effect upon | 18 |
| becoming law.
|
|