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Public Act 096-0834 |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by | ||||
changing Section 704A as follows: | ||||
(35 ILCS 5/704A) | ||||
Sec. 704A. Employer's return and payment of tax withheld. | ||||
(a) In general, every employer who deducts and withholds or | ||||
is required to deduct and withhold tax under this Act on or | ||||
after January 1, 2008 shall make those payments and returns as | ||||
provided in this Section. | ||||
(b) Returns. Every employer shall, in the form and manner | ||||
required by the Department, make returns with respect to taxes | ||||
withheld or required to be withheld under this Article 7 for | ||||
each quarter beginning on or after January 1, 2008, on or | ||||
before the last day of the first month following the close of | ||||
that quarter. | ||||
(c) Payments. With respect to amounts withheld or required | ||||
to be withheld on or after January 1, 2008: | ||||
(1) Semi-weekly payments. For each calendar year, each | ||||
employer who withheld or was required to withhold more than | ||||
$12,000 during the one-year period ending on June 30 of the | ||||
immediately preceding calendar year, payment must be made: |
(A) on or before each Friday of the calendar year, | ||
for taxes withheld or required to be withheld on the | ||
immediately preceding Saturday, Sunday, Monday, or | ||
Tuesday; | ||
(B) on or before each Wednesday of the calendar | ||
year, for taxes withheld or required to be withheld on | ||
the immediately preceding Wednesday, Thursday, or | ||
Friday. | ||
(2) Semi-weekly payments. Any employer who withholds | ||
or is required to withhold more than $12,000 in any quarter | ||
of a calendar year is required to make payments on the | ||
dates set forth under item (1) of this subsection (c) for | ||
each remaining quarter of that calendar year and for the | ||
subsequent calendar year.
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(3) Monthly payments. Each employer, other than an | ||
employer described in items (1) or (2) of this subsection, | ||
shall pay to the Department, on or before the 15th day of | ||
each month the taxes withheld or required to be withheld | ||
during the immediately preceding month. | ||
(4) Payments with returns. Each employer shall pay to | ||
the Department, on or before the due date for each return | ||
required to be filed under this Section, any tax withheld | ||
or required to be withheld during the period for which the | ||
return is due and not previously paid to the Department. | ||
(d) Regulatory authority. The Department may, by rule: | ||
(1) If the aggregate amounts required to be withheld |
under this Article 7 do not exceed $1,000 for the calendar | ||
year, permit employers, in lieu of the requirements of | ||
subsections (b) and (c), to file annual returns due on or | ||
before January 31 of the following year for taxes withheld | ||
or required to be withheld during that calendar year and to | ||
pay the taxes required to be shown on each such return no | ||
later than the due date for such return. | ||
(2) Provide that any payment required to be made under | ||
subsection (c)(1) or (c)(2) is deemed to be timely to the | ||
extent paid by electronic funds transfer on or before the | ||
due date for deposit of federal income taxes withheld from, | ||
or federal employment taxes due with respect to, the wages | ||
from which the Illinois taxes were withheld. | ||
(3) Designate one or more depositories to which payment | ||
of taxes required to be withheld under this Article 7 must | ||
be paid by some or all employers. | ||
(4) Increase the threshold dollar amounts at which | ||
employers are required to make semi-weekly payments under | ||
subsection (c)(1) or (c)(2). | ||
(e) Annual return and payment. Every employer who deducts | ||
and withholds or is required to deduct and withhold tax from a | ||
person engaged in domestic service employment, as that term is | ||
defined in Section 3510 of the Internal Revenue Code, may | ||
comply with the requirements of this Section with respect to | ||
such employees by filing an annual return and paying the taxes | ||
required to be deducted and withheld on or before the 15th day |
of the fourth month following the close of the employer's | ||
taxable year. The Department may allow the employer's return to | ||
be submitted with the employer's individual income tax return | ||
or to be submitted with a return due from the employer under | ||
Section 1400.2 of the Unemployment Insurance Act. | ||
(f) Magnetic media and electronic filing. Any W-2 Form | ||
that, under the Internal Revenue Code and regulations | ||
promulgated thereunder, is required to be submitted to the | ||
Internal Revenue Service on magnetic media or electronically | ||
must also be submitted to the Department on magnetic media or | ||
electronically for Illinois purposes, if required by the | ||
Department. | ||
(g) For amounts deducted or withheld after December 31, | ||
2009, a taxpayer who makes an election under Section 5-15(f) of | ||
the Economic Development for a Growing Economy Act for a | ||
taxable year shall be allowed a credit against payments due | ||
under this Section for amounts withheld during the first | ||
calendar year beginning after the end of that taxable year | ||
equal to the amount of the credit awarded to the taxpayer by | ||
the Department of Commerce and Economic Opportunity under the | ||
Economic Development for a Growing Economy Act for the taxable | ||
year. The credit may not reduce the taxpayer's obligation for | ||
any payment due under this Section to less than zero. If the | ||
amount of the credit exceeds the total payments due under this | ||
Section with respect to amounts withheld during the calendar | ||
year, the excess may be carried forward and applied against the |
taxpayer's liability under this Section in the 5 succeeding | ||
calendar years. The credit shall be applied to the earliest | ||
year for which there is a tax liability. If there are credits | ||
from more than one taxable year that are available to offset a | ||
liability, the earlier credit shall be applied first. This | ||
Section is exempt from the provisions of Section 250 of this | ||
Act. | ||
(Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08.) | ||
Section 10. The Economic Development for a Growing Economy | ||
Tax Credit Act is amended by changing Section 5-15 as follows: | ||
(35 ILCS 10/5-15) | ||
Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||
forth in this
Act, a Taxpayer is
entitled to a Credit against | ||
taxes imposed pursuant to subsections (a) and (b)
of Section | ||
201 of the Illinois
Income Tax Act that may be imposed on the | ||
Taxpayer for a taxable year beginning
on or
after January 1, | ||
1999,
if the Taxpayer is awarded a Credit by the Department | ||
under this Act for that
taxable year. | ||
(a) The Department shall make Credit awards under this Act | ||
to foster job
creation and retention in Illinois. | ||
(b) A person that proposes a project to create new jobs in | ||
Illinois must
enter into an Agreement with the
Department for | ||
the Credit under this Act. | ||
(c) The Credit shall be claimed for the taxable years |
specified in the
Agreement. | ||
(d) The Credit shall not exceed the Incremental Income Tax | ||
attributable to
the project that is the subject of the | ||
Agreement. | ||
(e) Nothing herein shall prohibit a Tax Credit Award to an | ||
Applicant that uses a PEO if all other award criteria are | ||
satisfied.
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(f) In lieu of the Credit allowed under this Act against | ||
the taxes imposed pursuant to subsections (a) and (b) of | ||
Section 201 of the Illinois Income Tax Act for any taxable year | ||
ending on or after December 31, 2009, the Taxpayer may elect to | ||
claim the Credit against its obligation to pay over withholding | ||
under Section 704A of the Illinois Income Tax Act. | ||
(1) The election under this subsection (f) may be made | ||
only by a Taxpayer that (i) is primarily engaged in one of | ||
the following business activities: motor vehicle metal | ||
stamping, automobile manufacturing, automobile and light | ||
duty motor vehicle manufacturing, motor vehicle | ||
manufacturing, light truck and utility vehicle | ||
manufacturing, or motor vehicle body manufacturing and | ||
(ii) meets the following criteria: | ||
(A) the Taxpayer (i) had an Illinois net loss or an | ||
Illinois net loss deduction under Section 207 of the | ||
Illinois Income Tax Act for the taxable year in which | ||
the Credit is awarded, (ii) employed a minimum of 1,000 | ||
full-time employees in this State during the taxable |
year in which the Credit is awarded, (iii) has an | ||
Agreement under this Act on the effective date of this | ||
amendatory Act of the 96th General Assembly, and (iv) | ||
is in compliance with all provisions of that Agreement; | ||
or | ||
(B) the Taxpayer (i) had an Illinois net loss or an | ||
Illinois net loss deduction under Section 207 of the | ||
Illinois Income Tax Act for the taxable year in which | ||
the Credit is awarded, (ii) employed a minimum of 1,000 | ||
full-time employees in this State during the taxable | ||
year in which the Credit is awarded, and (iii) has | ||
applied for an Agreement within 180 days after the | ||
effective date of this amendatory Act of the 96th | ||
General Assembly. | ||
(2) An election under this subsection shall allow the | ||
credit to be taken against payments otherwise due under | ||
Section 704A of the Illinois Income Tax Act during the | ||
first calendar year beginning after the end of the taxable | ||
year in which the credit is awarded under this Act. | ||
(3) The election shall be made in the form and manner | ||
required by the Illinois Department of Revenue and, once | ||
made, shall be irrevocable. | ||
(4) If a Taxpayer who meets the requirements of | ||
subparagraph (A) of paragraph (1) of this subsection (f) | ||
elects to claim the Credit against its withholdings as | ||
provided in this subsection (f), then, on and after the |
date of the election, the terms of the Agreement between | ||
the Taxpayer and the Department may not be further amended | ||
during the term of the Agreement. | ||
(Source: P.A. 95-375, eff. 8-23-07.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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