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91_SB0810gms
State of Illinois
OFFICE OF THE GOVERNOR
Springfield, Illinois 62706
George H. Ryan
GOVERNOR
June 13,2000
To the Honorable Members of
The Illinois State Senate
91st General Assembly
Pursuant to the authority vested in the Governor by
Article IV, Section 9(e) of the Illinois Constitution of
1970, and re-affirmed by the People of the State of Illinois
by popular referendum in 1974, and conforming to the standard
articulated by the Illinois Supreme Court in People ex rel.
Klinger v. Howlett, 50 Ill.2d 242 (1972), Continental
Illinois National Bank and Trust Co. v. Zagel, 78 Ill.2d 387
(1979), People ex rel. City of Canton v. Crouch, 79 Ill.2d
356 (1980) and County of Kane v. Carlson, 116 Ill.2d 186
(1987), that gubernatorial action be consistent with the
fundamental purposes and the intent of the bill, I hereby
return Senate Bill 810, "AN ACT to amend the Illinois Income
Tax Act by adding Section 210.5," with my specific
recommendation for change.
Senate Bill 810 creates a two-part corporate income tax
credit for the start-up costs and on-going costs incurred by
a corporation in providing child care to its employees. The
credit for start-up costs is equal to 30% of the costs
incurred by a corporation in implementing a child care
facility. This credit is available for tax years 2000
through 2004. The credit for on-going costs consists of a 5%
corporate income tax credit for the annual costs of providing
a child care facility for employees. This credit is
effective beginning tax year 2000 and thereafter.
I have consistently supported expansion of the existing
tax credit granted to manufacturing companies for operating
on-premises child care facilities. Senate Bill 810 meets my
objectives in providing a broad-based tax credit, both for
start-up costs for child care facilities and for costs
incurred in operating such facilities.
I believe, however, it was always the intention of the
legislature to limit the availability of the tax credit
authorized in Senate Bill 810 to child care facilities
located within the State of Illinois. My concern is that
without a specific limitation in the language of Senate Bill
810, corporations that pay Illinois State Income Tax but have
no child care facilities in Illinois could take advantage of
these credits. I believe that the tax credit against the
Illinois Corporate Income Tax authorized by Senate Bill 810
should be expressly linked to the provision of child care
through facilities located in this State.
For this reason, I hereby return Senate Bill 810 with the
following recommendation for change:
On page 2, in line 9, after "facility.", by inserting "As
used in this Section, "child care facility" is limited to
a child care facility located in Illinois."
With this change, Senate Bill 810 will have my approval.
I respectfully request your concurrence.
Sincerely,
George H. Ryan
GOVERNOR