Full Text of SB3882 102nd General Assembly
SB3882eng 102ND GENERAL ASSEMBLY |
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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 1. Short title. This Article may be cited as the | 5 | | Recovery and Mental Health Tax Credit Act. References in this | 6 | | Article to "this Act" mean this Article. | 7 | | Section 5. Findings. | 8 | | (a) In the interest of reducing stigma and increasing the
| 9 | | available pool of potential employees, the General Assembly
| 10 | | finds and declares that those residents of Illinois diagnosed
| 11 | | with mental illness and substance use disorders should be
| 12 | | eligible for and encouraged to seek gainful employment.
| 13 | | (b) The General Assembly finds and declares that minority
| 14 | | communities in this State have been more negatively impacted | 15 | | in
employment opportunities for minority residents diagnosed | 16 | | with
mental illness and substance use disorders and should | 17 | | receive
additional employment opportunities and incentives for
| 18 | | employing minority residents diagnosed with mental illness or
| 19 | | substance use disorders.
| 20 | | (c) Due to the COVID-19 public health emergency, employers
| 21 | | in the State of Illinois have suffered negative economic
| 22 | | impacts, a loss in workforce, staffing difficulties, and have
| 23 | | found it difficult to recruit new workers.
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| 1 | | (d) In the interest of providing additional employment
| 2 | | opportunities for those residents of Illinois diagnosed with
| 3 | | mental illness or substance use disorders and expanding the
| 4 | | pool of potential workers in this State, the General Assembly
| 5 | | finds and declares that certain qualified employers who employ
| 6 | | eligible individuals should be eligible for a tax credit.
| 7 | | Section 10. Definitions. As used in this Act: | 8 | | "Department" means the Department of Human Services.
| 9 | | "Eligible individual" means an individual with a substance
| 10 | | use disorder, as that term is defined under Section 1-10 of the
| 11 | | Substance Use Disorder Act, or an individual with a mental
| 12 | | illness as that term is defined under Section 1-129 of the
| 13 | | Mental Health and Developmental Disabilities Code, who is in a
| 14 | | state of wellness and recovery where there is an abatement of
| 15 | | signs and symptoms that characterize active substance use
| 16 | | disorder or mental illness and has demonstrated to the
| 17 | | qualified employer's satisfaction, pursuant to rules
adopted | 18 | | by the Department, that he or she has completed a
course of | 19 | | treatment or is currently in receipt of treatment
for such | 20 | | substance use disorder or mental illness. A relapse
in an | 21 | | individual's state of wellness shall not make the
individual | 22 | | ineligible, so long as the individual shows a
continued | 23 | | commitment to recovery that aligns with an
individual's | 24 | | relapse prevention plan, discharge plan, or
recovery plan.
| 25 | | "Qualified employer" means an employer operating within
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| 1 | | the State that has received a certificate of tax credit from
| 2 | | the Department after the Department has determined that the
| 3 | | employer:
| 4 | | (1) provides a recovery supportive environment for
| 5 | | their employees evidenced by a formal working relationship
| 6 | | with a substance use disorder treatment provider or
| 7 | | facility or mental health provider or facility, each as
| 8 | | may be licensed or certified within the State of Illinois,
| 9 | | and providing reasonable accommodation to the employees to
| 10 | | address their substance use disorder or mental illness,
| 11 | | all at no cost or expense to the eligible individual; and | 12 | | (2) satisfies all other criteria in this Section and
| 13 | | established by the Department to participate in the
| 14 | | recovery tax program created hereunder.
| 15 | | "Taxpayer" means any individual, corporation, | 16 | | partnership,
trust, or other entity subject to the Illinois | 17 | | income tax. For
the purposes of this Act, 2 individuals filing | 18 | | a joint return
shall be considered one taxpayer.
| 19 | | Section 15. Authorization of tax credit program for | 20 | | individuals in recovery from substance use disorders or mental | 21 | | illness. | 22 | | (a) For taxable years beginning on or after January 1, | 23 | | 2023, the Department is authorized to and shall establish and | 24 | | administer a recovery tax credit program to provide tax | 25 | | incentives to qualified employers who employ eligible |
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| 1 | | individuals in recovery from a substance use disorder or | 2 | | mental illness in part-time and full-time positions within | 3 | | Illinois. The Department shall award the tax credit by | 4 | | issuance of a certificate of tax credit to the qualified | 5 | | employer, who will present the certificate of tax credit to | 6 | | the Department of Revenue by attaching the certificate to its | 7 | | tax return, as a credit against the qualified employer's | 8 | | income tax liability in accordance with the Illinois Income | 9 | | Tax Act. The Department shall maintain an electronic listing | 10 | | of the certificates issued by which the Department of Revenue | 11 | | may verify tax credit certificates issued. | 12 | | (b) To be a qualified employer, an employer must apply | 13 | | annually to the Department to claim a credit based upon | 14 | | eligible individuals employed during the preceding calendar | 15 | | year, using the forms prescribed by the Department. To be | 16 | | approved for a credit under this Act, the employer must: | 17 | | (1) agree to provide to the Department the information | 18 | | necessary to demonstrate that the employer has satisfied | 19 | | program eligibility requirements and provided all | 20 | | information requested or needed by the Department, | 21 | | including the number of hours worked by the eligible | 22 | | individual and other information necessary for the | 23 | | Department to calculate the amount of credit permitted; | 24 | | and | 25 | | (2) agree to provide names, employer identification | 26 | | numbers, amounts that the employer may claim, and other |
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| 1 | | information necessary for the Department to calculate any | 2 | | tax credit. | 3 | | (c) To be an eligible individual, the individual must be | 4 | | diagnosed with or have been diagnosed with a substance use | 5 | | disorder or mental illness. Disclosure by the eligible | 6 | | individual of his or her mental illness or substance use | 7 | | disorder shall be completely voluntary and his or her health | 8 | | information may not be shared or disclosed under this Act | 9 | | without the eligible individual's express written consent. The | 10 | | eligible individual must have been employed by the qualified | 11 | | employer in this State for a minimum of 500 hours during the | 12 | | applicable calendar year and the tax credit may only begin on | 13 | | the date the eligible individual is hired by the qualified | 14 | | employer and ending on December 31 of that calendar year or the | 15 | | date that the eligible individual's employment with the | 16 | | qualified employer ends, whichever occurs first. Only one tax | 17 | | credit may be awarded for any eligible individual while | 18 | | employed by the same or related qualified employer. The hours | 19 | | of employment of 2 or more eligible individuals may not be | 20 | | aggregated to reach the minimum number of hours. If an | 21 | | eligible individual has worked in excess of 500 hours between | 22 | | the date of hiring and December 31 of that year, a qualified | 23 | | employer can elect to compute and claim a credit for such | 24 | | eligible individual in that year based on the hours worked by | 25 | | December 31. Alternatively, the qualified employer may elect | 26 | | to include such individual in the computation of the credit in |
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| 1 | | the year immediately succeeding the year in which the eligible | 2 | | individual was hired. In that case, the credit shall be | 3 | | computed on the basis of all hours worked by the eligible | 4 | | individual from the date of hire to the earlier of the last day | 5 | | of employment or December 31 of the succeeding year. | 6 | | (d) If Department criteria and all other requirements are
| 7 | | met, a qualified employer shall be entitled to a tax credit
| 8 | | equal to the product of $1 and the number of hours worked by
| 9 | | each eligible individual during the eligible individual's
| 10 | | period of employment with the qualified employer. The tax
| 11 | | credit awarded under this Act may not exceed $2,000 per | 12 | | eligible
individual employed by the qualified employer in this | 13 | | State. In
determining the amount of tax credit that any | 14 | | qualified
employer may claim, the Department shall review all | 15 | | claims
submitted for credit by all employers and, to the | 16 | | extent that
the total amount claimed by employers exceeds the | 17 | | amount
allocated for this program in that calendar year, shall | 18 | | issue
tax credits on a pro rata basis corresponding to each
| 19 | | qualified employer's share of the total amount claimed.
| 20 | | (e) The aggregate amount of all credits the Department may | 21 | | award under this Act in any calendar year may not exceed | 22 | | $2,000,000. | 23 | | (f) A taxpayer who is a qualified
employer who has | 24 | | received a certificate of tax credit from the
Department shall | 25 | | be allowed a credit against the tax imposed equal
to the amount | 26 | | shown on such certificate of tax credit.
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| 1 | | (g) The credit must be claimed in the taxable year in which | 2 | | the tax credit certificate is issued. The credit cannot reduce | 3 | | a taxpayer's liability to less than zero. If the amount of the | 4 | | credit exceeds the tax liability for the year, the credit may | 5 | | not
be carried forward. | 6 | | (h) If the taxpayer is a partnership or Subchapter S | 7 | | corporation the credit shall be allowed to the partners or | 8 | | shareholders in accordance with the determination of income | 9 | | and distributive share of income under Sections 702 and 704 | 10 | | and subchapter S of the Internal Revenue Code. | 11 | | (i) In carrying out this Act, no patient-specific | 12 | | information shall
be shared or disclosed. Any individual or | 13 | | patient-specific
information collected by the Department or | 14 | | the Department
of Revenue shall not be subject
to public | 15 | | disclosure or Freedom of Information Act requests.
| 16 | | (j) The credit under this Act is exempt from the | 17 | | provisions of Section 250 of the Illinois Income Tax Act. | 18 | | Section 20. Advisory Council on Mental Illness and | 19 | | Substance Use Disorder Impacts on Employment Opportunities | 20 | | within Minority Communities. The Secretary of the Department | 21 | | shall appoint the Advisory Council on Mental Illness and | 22 | | Substance Use Disorder Impacts on Employment Opportunities | 23 | | within Minority Communities, to be composed of 15 members, | 24 | | which shall include a balanced representation of recipients, | 25 | | services providers, employers, local governmental units, |
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| 1 | | community and welfare advocacy groups, academia, and the | 2 | | general public. The Advisory Council shall advise the | 3 | | Department regarding all aspects of employment impacts | 4 | | resulting from mental illnesses and substance use disorders | 5 | | within minority communities, tax credits, outreach, marketing, | 6 | | and education about the tax credit and employment | 7 | | opportunities, and other areas as deemed appropriate by the | 8 | | Secretary. In appointing the first Council, the Secretary | 9 | | shall name 8 members to terms of 2 years and 7 members to serve | 10 | | terms of 4 years, all of whom shall be appointed within 6 | 11 | | months of the effective date of this Act. All members | 12 | | appointed thereafter shall serve terms of 4 years. Members | 13 | | shall serve without compensation other than reimbursement of | 14 | | expenses actually incurred in the performance of their | 15 | | official duties. At its first meeting, the Advisory Council | 16 | | shall select a chair from among its members. The Advisory | 17 | | Council shall meet at least quarterly and at other times at the | 18 | | call of the chair. | 19 | | Section 25. Powers. The Department shall adopt rules for | 20 | | the administration of this Act. The Department may enter into | 21 | | an intergovernmental agreement with the Department of Revenue | 22 | | for the administration of this Act. | 23 | | Section 30. The Illinois Income Tax Act is amended by | 24 | | adding Section 232 as follows: |
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| 1 | | (35 ILCS 5/232 new) | 2 | | Sec. 232. Recovery and Mental Health Tax Credit Act. For | 3 | | taxable years beginning on or after January 1, 2023, a
| 4 | | taxpayer who has been awarded a credit under the Recovery and
| 5 | | Mental Health Tax Credit Act is entitled to a credit against
| 6 | | the tax imposed by subsections (a) and (b) of Section 201 as
| 7 | | provided in that Act. This Section is exempt from the
| 8 | | provisions of Section 250.
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