State of Illinois
90th General Assembly
Legislation

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90_SB0965

      35 ILCS 5/211 new
          Amends the Illinois Income Tax Act  to  create  for  each
      employer  (i) a wage credit equal to 10% of the first $10,000
      and  20%  of  the  second  $10,000  paid  to  Welfare-To-Work
      employees up to $3,000 per year per  employee  for  up  to  3
      years,  (ii)  a basic skills training credit equal to $15 per
      hour, up to 150 hours, for basic skills training provided  to
      Welfare-to-Work  employees up to $2,250 per year per employee
      for up to 3 years, and (iii) a support services credit  equal
      to   the   cost   of   providing   support   services   to  a
      Welfare-To-Work employee up to $2,250 per employee  per  year
      for  up  to  3  years.  Provides  that  these credits will be
      available for tax years beginning on or after January 1, 1997
      and ending on or before December 30, 2007. Provides  that  an
      employer  may  not claim these credits until the employee has
      been continuously employed by the employer for a minimum of 6
      months.  Effective immediately.
                                                     LRB9002391KDks
                                               LRB9002391KDks
 1        AN ACT to amend the Illinois Income  Tax  Act  by  adding
 2    Section 211.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Illinois Income Tax  Act  is  amended  by
 6    adding Section 211 as follows:
 7        (35 ILCS 5/211 new)
 8        Sec. 211.  Welfare-To-Work employer's tax credit.
 9        (a)  For  tax years beginning on or after January 1, 1997
10    and  ending  on   or   before   December   30,   2007,   each
11    employer-taxpayer  shall be entitled to the following credits
12    against taxes due under this Act:
13             (1)  Wage credit.  An employer is entitled to a  tax
14        credit equal to 10% of the first $10,000 of wages and 20%
15        of   the   second   $10,000   of   wages   paid  to  each
16        Welfare-To-Work employee.  The maximum credit that may be
17        awarded to an employer under this  subsection  is  $3,000
18        per employee per year for up to 3 years.
19             (2)  Basic  skills  training credit.  An employer is
20        entitled to a tax credit equal to $15 per hour, up to 150
21        hours,  of  basic  skills  training  provided   to   each
22        Welfare-To-Work employee.  The maximum credit that may be
23        awarded  under this subsection is $2,250 per employee per
24        year for up to 3 years.
25             (3)  Support  services  credit.   An   employer   is
26        entitled  to  a tax credit equal to the cost of providing
27        support services to  a  Welfare-To-Work  employee.    The
28        maximum  credit that may be awarded under this subsection
29        is $2,250 per employee per year for up to 3 years.
30        (b)  An employer may not terminate, lay  off,  or  reduce
31    the working hours of an employee for the purpose of receiving
                            -2-                LRB9002391KDks
 1    tax credits under this Section.
 2        (c)  An  employer  is  not eligible for tax credits under
 3    this Section for wages, basic  skills  training,  or  support
 4    services provided to an employee until he or she demonstrates
 5    with  appropriate  documentation  that  the employee has been
 6    continuously employed by the employer  for  a  minimum  of  6
 7    months,  and,  if  applicable,  provided  with  basic  skills
 8    training, support services, or both.
 9        (d)  For purposes of this Section:
10             (1)  "Welfare-To-Work  employee" means a person who:
11        (i) within 12 months of becoming employed by the taxpayer
12        seeking tax credits under this Section  received  Interim
13        Assistance,  Earnfare,  Aid  to  Families  with Dependent
14        Children,  or  public  assistance  under  an  alternative
15        program established by the Department of Public Aid under
16        Public Act 89-6; and (ii) has continuously been  employed
17        by  the  taxpayer  seeking tax credits under this Section
18        for a minimum of 6 months.
19             (2)  "Basic  skills  training"  means  adult   basic
20        education  programs  approved by the Illinois State Board
21        of Education and designed to enable an  employee  to  (i)
22        obtain  a  minimum  ninth  grade  reading  and math skill
23        level, including  instruction  in  English  as  a  second
24        language  when  appropriate,  or  (ii)  obtain  a General
25        Education Degree (GED).
26             (3)  "Support  services"  means   child   or   other
27        dependent  care  services,  transportation  subsidies  or
28        services,  certified  drug  or  alcohol rehabilitation or
29        counseling  programs,  or   other   documented   employee
30        assistance services.
31        Section  99.  Effective date.  This Act takes effect upon
32    becoming law.

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