100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3413

 

Introduced , by Rep. Bill Mitchell

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Creates a credit for qualifying taxpayers who own and operate a business in an area with low long-term manufacturing job projections in the amount of $3,500 for each employee hired by the taxpayer on or after January 1, 2018 to work at job location in an area with low long-term manufacturing job projections and retained by the taxpayer at that job location for 2 years. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3413LRB100 10557 HLH 20773 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Manufacturing job creation credit.
8    (a) For taxable years beginning on or after January 1,
92018, each qualifying taxpayer who owns and operates a business
10in an area with low long-term manufacturing job projections
11shall be allowed a credit against the tax imposed by
12subsections (a) and (b) of Section 201 of this Act in the
13amount of $3,500 for each employee hired by the taxpayer on or
14after January 1, 2018 to work at job location in an area with
15low long-term manufacturing job projections and retained by the
16taxpayer at that job location for 2 years. Of the $3,500
17amount: (1) an amount equal to $2,000 is allowed as a credit
18for the taxable year in which the employee is hired if the
19employee remains employed by the employer at that job location
20on the last day of that taxable year; (2) an amount equal to
21$1,000 is allowed as a credit for the following taxable year if
22the employee remains employed by the employer at that job
23location on the last day of that taxable year; and (3) an

 

 

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1amount equal to $500 is allowed for the second taxable year
2after the employee is hired if the employee remains employed by
3the employer at that job location on the second anniversary of
4the date he or she was hired to work at that job location.
5    (b) For the purposes of this Section, an "area with low
6long-term manufacturing job projections" means a Local
7Workforce Investment Area, as defined by the North American
8Industrial Classification System, that is projected to
9experience an annual compound growth rate between 0 and 0.1
10between the base year 2012 and projected year 2022 with regard
11to total manufacturing employment, as reported by the
12Department of Employment Security.
13    (c) A credit under this Section may not exceed the
14taxpayer's Illinois income tax liability for the taxable year.
15If the amount of the credit exceeds the tax liability for the
16year, the excess may be carried forward and applied to the tax
17liability of the 5 taxable years following the excess credit
18year. The credit shall be applied to the earliest year for
19which there is a tax liability. If there are credits from more
20than one taxable year that are available to offset a liability,
21the earlier credit shall be applied first. In the case of a
22partnership or Subchapter S Corporation, the credit is allowed
23to the partners or shareholders in accordance with the
24determination of income and distributive share of income under
25Section 702 and 704 and Subchapter S of the Internal Revenue
26Code.

 

 

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1    (d) This Section is exempt from the provisions of Section
2250 of this Act.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.