Full Text of HB4599 096th General Assembly
HB4599enr 96TH 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 5. The Small Business Job Creation Tax Credit Act | 5 | | is amended by changing Sections 10, 25, and 35 as follows: | 6 | | (35 ILCS 25/10)
| 7 | | Sec. 10. Definitions. In this Act: | 8 | | "Applicant" means a person that is operating a business | 9 | | located within the State of Illinois that is engaged in | 10 | | interstate or intrastate commerce and either: | 11 | | (1) has no more than 50 full-time employees, without | 12 | | regard to the location of employment of such employees at | 13 | | the beginning of the incentive period ; or . | 14 | | (2) hired within the incentive period an employee who | 15 | | had participated as worker-trainee in the Put Illinois to | 16 | | Work Program during 2010. | 17 | | In the case of any person that is a member of a unitary | 18 | | business group within the meaning of subdivision (a)(27) of | 19 | | Section 1501 of the Illinois Income Tax Act, "applicant" refers | 20 | | to the unitary business group. | 21 | | "Certificate" means the tax credit certificate issued by | 22 | | the Department under Section 35 of this Act. | 23 | | "Certificate of eligibility" means the certificate issued |
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| 1 | | by the Department under Section 20 of this Act. | 2 | | "Credit" means the amount awarded by the Department to an | 3 | | applicant by issuance of a certificate under Section 35 of this | 4 | | Act for each new full-time equivalent employee hired or job | 5 | | created. | 6 | | "Department" means the Department of Commerce and Economic | 7 | | Opportunity. | 8 | | "Director" means the Director of the Department. | 9 | | "Full-time employee" means an individual who is employed | 10 | | for a basic wage for at least 35 hours each week or who renders | 11 | | any other standard of service generally accepted by industry | 12 | | custom or practice as full-time employment. | 13 | | "Incentive period" means the period beginning July 1, 2010 | 14 | | and ending on June 30, 2011. | 15 | | "Basic wage" means compensation for employment that is no | 16 | | less than $10 $13.75 per hour or the equivalent salary for a | 17 | | new employee. | 18 | | "New employee" means a full-time employee : | 19 | | (1) who first became employed by an applicant with less | 20 | | than 50 full-time employees within the incentive period | 21 | | whose hire results in a net increase in the applicant's | 22 | | full-time Illinois employees and who is receiving a basic | 23 | | wage as compensation ; or . | 24 | | (2) who participated as a worker-trainee in the Put | 25 | | Illinois to Work Program during 2010 and who is | 26 | | subsequently hired during the incentive period by an |
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| 1 | | applicant and who is receiving a basic wage as | 2 | | compensation. | 3 | | The term "new employee" does not include: | 4 | | (1) a person who was previously employed in Illinois by | 5 | | the applicant or a related member prior to the onset of the | 6 | | incentive period; or | 7 | | (2) any individual who has a direct or indirect | 8 | | ownership interest of at least 5% in the profits, capital, | 9 | | or value of the applicant or a related member. | 10 | | "Noncompliance date" means, in the case of an applicant | 11 | | that is not complying with the requirements of the provisions | 12 | | of this Act, the day following the last date upon which the | 13 | | taxpayer was in compliance with the requirements of the | 14 | | provisions of this Act, as determined by the Director, pursuant | 15 | | to Section 45 of this Act. | 16 | | "Put Illinois to Work Program" means a worker training and | 17 | | employment program that was established by the State of | 18 | | Illinois with funding from the United States Department of | 19 | | Health and Human Services of Emergency Temporary Assistance to | 20 | | Needy Families funds authorized by the American Recovery and | 21 | | Reinvestment Act of 2009 (ARRA TANF Funds). These ARRA TANF | 22 | | funds were in turn used by the State of Illinois to fund the | 23 | | Put Illinois to Work Program. | 24 | | "Related member" means a person that, with respect to the | 25 | | applicant during any portion of the incentive period, is any | 26 | | one of the following, |
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| 1 | | (1) An individual, if the individual and the members of | 2 | | the individual's family (as defined in Section 318 of the | 3 | | Internal Revenue Code) own directly, indirectly, | 4 | | beneficially, or constructively, in the aggregate, at | 5 | | least 50% of the value of the outstanding profits, capital, | 6 | | stock, or other ownership interest in the applicant. | 7 | | (2) A partnership, estate, or trust and any partner or | 8 | | beneficiary, if the partnership, estate, or trust and its | 9 | | partners or beneficiaries own directly, indirectly, | 10 | | beneficially, or constructively, in the aggregate, at | 11 | | least 50% of the profits, capital, stock, or other | 12 | | ownership interest in the applicant. | 13 | | (3) A corporation, and any party related to the | 14 | | corporation in a manner that would require an attribution | 15 | | of stock from the corporation under the attribution rules | 16 | | of Section 318 of the Internal Revenue Code, if the | 17 | | applicant and any other related member own, in the | 18 | | aggregate, directly, indirectly, beneficially, or | 19 | | constructively, at least 50% of the value of the | 20 | | corporation's outstanding stock. | 21 | | (4) A corporation and any party related to that | 22 | | corporation in a manner that would require an attribution | 23 | | of stock from the corporation to the party or from the | 24 | | party to the corporation under the attribution rules of | 25 | | Section 318 of the Internal Revenue Code, if the | 26 | | corporation and all such related parties own, in the |
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| 1 | | aggregate, at least 50% of the profits, capital, stock, or | 2 | | other ownership interest in the applicant. | 3 | | (5) A person to or from whom there is attribution of | 4 | | stock ownership in accordance with Section 1563(e) of the | 5 | | Internal Revenue Code, except that for purposes of | 6 | | determining whether a person is a related member under this | 7 | | paragraph, "20%" shall be substituted for "5%" whenever | 8 | | "5%" appears in Section 1563(e) of the Internal Revenue | 9 | | Code.
| 10 | | (Source: P.A. 96-888, eff. 4-13-10.) | 11 | | (35 ILCS 25/25)
| 12 | | Sec. 25. Tax credit. | 13 | | (a) Subject to the conditions set forth in this Act, an | 14 | | applicant is entitled to a credit against payment of taxes | 15 | | withheld under Section 704A of the Illinois Income Tax Act : | 16 | | (1) for new employees who participated as | 17 | | worker-trainees in the Put Illinois to Work Program during | 18 | | 2010: | 19 | | (A) in the first calendar year ending on or after | 20 | | the date that is 6 months after December 31, 2010, or | 21 | | the date of hire, whichever is later. Under this | 22 | | subparagraph, the applicant is entitled to one-half of | 23 | | the credit allowable for each new employee who is | 24 | | employed for at least 6 months after the date of hire; | 25 | | and |
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| 1 | | (B) in the first calendar year ending on or after | 2 | | the date that is 12 months after December 31, 2010, or | 3 | | the date of hire, whichever is later. Under this | 4 | | subparagraph, the applicant is entitled to one-half of | 5 | | the credit allowable for each new employee who is | 6 | | employed for at least 12 months after the date of hire; | 7 | | (2) for all other new employees, in the first calendar | 8 | | year years ending on or after the date that is 12 months | 9 | | after the date of hire of a new employee. The credit shall | 10 | | be allowed as a credit to an applicant for each full-time | 11 | | employee hired during the incentive period that results in | 12 | | a net increase in full-time Illinois employees, where the | 13 | | net increase in the employer's full-time Illinois | 14 | | employees is maintained for at least 12 months. | 15 | | (b) The Department shall make credit awards under this Act | 16 | | to further job creation. | 17 | | (c) The credit shall be claimed for the first calendar year | 18 | | ending on or after the date on which the certificate is issued | 19 | | by the Department. | 20 | | (d) The credit shall not exceed $2,500 per new employee | 21 | | hired. | 22 | | (e) The net increase in full-time Illinois employees, | 23 | | measured on an annual full-time equivalent basis, shall be the | 24 | | total number of full-time Illinois employees of the applicant | 25 | | on June 30, 2011, minus the number of full-time Illinois | 26 | | employees employed by the employer on July 1, 2010. For |
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| 1 | | purposes of the calculation, an employer that begins doing | 2 | | business in this State during the incentive period, as | 3 | | determined by the Director, shall be treated as having zero | 4 | | Illinois employees on July 1, 2010. | 5 | | (f) The net increase in the number of full-time Illinois | 6 | | employees of the applicant under subsection (e) must be | 7 | | sustained continuously for at least 12 months, starting with | 8 | | the date of hire of a new employee during the incentive period. | 9 | | Eligibility for the credit does not depend on the continuous | 10 | | employment of any particular individual. For purposes of this | 11 | | subsection (f), if a new employee ceases to be employed before | 12 | | the completion of the 12-month period for any reason, the net | 13 | | increase in the number of full-time Illinois employees shall be | 14 | | treated as continuous if a different new employee is hired as a | 15 | | replacement within a reasonable time for the same position.
| 16 | | (Source: P.A. 96-888, eff. 4-13-10.) | 17 | | (35 ILCS 25/35)
| 18 | | Sec. 35. Application for award of tax credit; tax credit | 19 | | certificate. | 20 | | (a) On or after the conclusion of the 12-month period (or | 21 | | 6-month period, for purposes of subparagraph (A) of item (1) of | 22 | | subsection (a) of Section 25) after a new employee has been | 23 | | hired, an applicant shall file with the Department an | 24 | | application for award of a credit. The application shall | 25 | | include the following: |
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| 1 | | (1) The names, Social Security numbers, job | 2 | | descriptions, salary or wage rates, and dates of hire of | 3 | | the new employees with respect to whom the credit is being | 4 | | requested , and an indication of whether each new employee | 5 | | listed participated as a worker-trainee in the Put Illinois | 6 | | to Work Program . | 7 | | (2) A certification that each new employee listed has | 8 | | been retained on the job for one year (or 6 months, for | 9 | | purposes of subparagraph (A) of item (1) of subsection (a) | 10 | | of Section 25) from the date of hire. | 11 | | (3) The number of new employees hired by the applicant | 12 | | during the incentive period. | 13 | | (4) The net increase in the number of full-time | 14 | | Illinois employees of the applicant (including the new | 15 | | employees listed in the request) between the beginning of | 16 | | the incentive period and the dates on which the new | 17 | | employees listed in the request were hired. This | 18 | | requirement does not apply for tax credits the applicant is | 19 | | seeking because the new employee had participated as a | 20 | | worker-trainee in the Put Illinois to Work Program. | 21 | | (5) An agreement that the Director is authorized to | 22 | | verify with the appropriate State agencies the information | 23 | | contained in the request before issuing a certificate to | 24 | | the applicant. | 25 | | (6) Any other information the Department determines to | 26 | | be appropriate. |
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| 1 | | (b) Although an application may be filed at any time after | 2 | | the conclusion of the 12-month period (or 6-month period, for | 3 | | purposes of subparagraph (A) of item (1) of subsection (a) of | 4 | | Section 25) after a new employee was hired, an application | 5 | | filed more than 90 days after the earliest date on which it | 6 | | could have been filed shall not be awarded any credit if, prior | 7 | | to the date it is filed, the Department has received | 8 | | applications under this Section for credits totaling more than | 9 | | $50,000,000. | 10 | | (c) The Department shall issue a certificate to each | 11 | | applicant awarded a credit under this Act. The certificate | 12 | | shall include the following: | 13 | | (1) The name and taxpayer identification number of the | 14 | | applicant. | 15 | | (2) The date on which the certificate is issued. | 16 | | (3) The credit amount that will be allowed. | 17 | | (4) Any other information the Department determines to | 18 | | be appropriate.
| 19 | | (Source: P.A. 96-888, eff. 4-13-10.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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