HB5778 EngrossedLRB100 17769 HLH 32947 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
5changing Section 217 as follows:
 
6    (35 ILCS 5/217)
7    Sec. 217. Credit for wages paid to qualified veterans and
8spouses of qualified veterans.
9    (a) For each taxable year beginning on or after January 1,
102007 and ending on or before December 30, 2010, each taxpayer
11is entitled to a credit against the tax imposed by subsections
12(a) and (b) of Section 201 of this Act in an amount equal to 5%,
13but in no event to exceed $600, of the gross wages paid by the
14taxpayer to a qualified veteran in the course of that veteran's
15sustained employment during the taxable year. For each taxable
16year that begins beginning on or after January 1, 2010 and
17begins prior to January 1, 2015, each taxpayer is entitled to a
18credit against the tax imposed by subsections (a) and (b) of
19Section 201 of this Act in an amount equal to 10%, but in no
20event to exceed $1,200, of the gross wages paid by the taxpayer
21to a qualified veteran in the course of that veteran's
22sustained employment during the taxable year. For each taxable
23year that begins on or after January 1, 2018 and begins prior

 

 

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1to January 1, 2022, each taxpayer is entitled to a credit
2against the tax imposed by subsections (a) and (b) of Section
3201 of this Act in an amount equal to 10%, but in no event to
4exceed $1,200, of the gross wages paid by the taxpayer to a
5qualified veteran or the spouse of a qualified veteran in the
6course of that veteran's or spouse's sustained employment
7during the taxable year. For partners, shareholders of
8Subchapter S corporations, and owners of limited liability
9companies, if the liability company is treated as a partnership
10for purposes of federal and State income taxation, there shall
11be allowed a credit under this Section to be determined in
12accordance with the determination of income and distributive
13share of income under Sections 702 and 704 and Subchapter S of
14the Internal Revenue Code.
15    (b) For purposes of this Section:
16    "Qualified veteran" means an Illinois resident who: (i) was
17a member of the Armed Forces of the United States, a member of
18the Illinois National Guard, or a member of any reserve
19component of the Armed Forces of the United States; (ii) served
20on active duty in connection with Operation Desert Storm,
21Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
22has provided, to the taxpayer, documentation showing that he or
23she was honorably discharged; and (iv) was initially hired by
24the taxpayer on or after January 1, 2007.
25    "Sustained employment" means a period of employment that is
26not less than 185 days during the taxable year.

 

 

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1    (c) In no event shall a credit under this Section reduce
2the taxpayer's liability to less than zero. If the amount of
3the credit exceeds the tax liability for the year, the excess
4may be carried forward and applied to the tax liability of the
55 taxable years following the excess credit year. The tax
6credit shall be applied to the earliest year for which there is
7a tax liability. If there are credits for more than one year
8that are available to offset a liability, the earlier credit
9shall be applied first.
10    (d) A taxpayer who claims a credit under this Section for a
11taxable year with respect to a veteran shall not be allowed a
12credit under Section 217.1 of this Act with respect to the same
13veteran for that taxable year.
14(Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.