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| Public Act 098-0165 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by | ||||
changing Section 216 as follows: | ||||
(35 ILCS 5/216) | ||||
Sec. 216. Credit for wages paid to ex-felons. | ||||
(a) For each taxable year beginning on or after January 1, | ||||
2007, each taxpayer is entitled to a credit against the tax | ||||
imposed by subsections (a) and (b) of Section 201 of this Act | ||||
in an amount equal to 5% of qualified wages paid by the | ||||
taxpayer during the taxable year to one or more Illinois | ||||
residents who are qualified ex-offenders. The total credit | ||||
allowed to a taxpayer with respect to each qualified | ||||
ex-offender may not exceed $1,500 $600 for all taxable years. | ||||
For partners, shareholders of Subchapter S corporations, and | ||||
owners of limited liability companies, if the liability company | ||||
is treated as a partnership for purposes of federal and State | ||||
income taxation, there shall be allowed a credit under this | ||||
Section to be determined in accordance with the determination | ||||
of income and distributive share of income under Sections 702 | ||||
and 704 and Subchapter S of the Internal Revenue Code. | ||||
(b) For purposes of this Section, "qualified wages": | ||||
(1) includes only wages that are subject to federal | ||
unemployment tax under Section 3306 of the Internal Revenue | ||
Code, without regard to any dollar limitation contained in | ||
that Section;
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(2) does not include any amounts paid or incurred by an | ||
employer for any period to any qualified ex-offender for | ||
whom the employer receives federally funded payments for | ||
on-the-job training of that qualified ex-offender for that | ||
period;
and
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(3) includes only wages attributable to service | ||
rendered during the one-year period beginning with the day | ||
the qualified ex-offender begins work for the employer.
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If the taxpayer has received any payment from a program | ||
established under Section 482(e)(1) of the federal Social | ||
Security Act with respect to a qualified ex-offender, then, for | ||
purposes of calculating the credit under this Section, the | ||
amount of the qualified wages paid to that qualified | ||
ex-offender must be reduced by the amount of the payment.
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(c) For purposes of this Section, "qualified ex-offender" | ||
means any person who:
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(1) has been convicted of a crime in this State or of | ||
an offense in any other jurisdiction, not including any | ||
offense or attempted offense that would subject a person to | ||
registration under the Sex Offender Registration Act is an | ||
eligible offender, as defined under Section 5-5.5-5 of the | ||
Unified Code of Corrections; | ||
(2) was sentenced to a period of incarceration in an | ||
Illinois adult correctional center; and | ||
(3) was hired by the taxpayer within 3 years one year | ||
after being released from an Illinois adult correctional | ||
center. | ||
(d) In no event shall a credit under this Section reduce | ||
the taxpayer's liability to less than zero. If the amount of | ||
the credit exceeds the tax liability for the year, the excess | ||
may be carried forward and applied to the tax liability of the | ||
5 taxable years following the excess credit year. The tax | ||
credit shall be applied to the earliest year for which there is | ||
a tax liability. If there are credits for more than one year | ||
that are available to offset a liability, the earlier credit | ||
shall be applied first.
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(e) This Section is exempt from the provisions of Section | ||
250. | ||
(Source: P.A. 94-1067, eff. 8-1-06.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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