97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3261

 

Introduced 2/24/2011, by Rep. Patricia R. Bellock

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/221 new

    Amends the Illinois Income Tax Act. Creates a credit for each business that is newly established in the State or that relocates to the State during the taxable year or the previous taxable year. The taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 10% of the wages paid by the business during the taxable year to full-time employees who are residents of Illinois. Creates a credit for other businesses that increase their total full-time employment head count during the taxable year by at least 10 employees in an amount equal to 10% of the wages paid by the business during the taxable year to each resident of Illinois that is first hired by the business during the taxable year.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3261LRB097 09240 HLH 49375 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 221 as follows:
 
6    (35 ILCS 5/221 new)
7    Sec. 221. Tax credit for new businesses and new employees.
8    (a) For taxable years beginning on or after January 1, 2011
9and ending on or before December 31, 2016, each business that
10is newly established in the State or that relocates to the
11State during the taxable year or the previous taxable year is
12entitled to a credit against the tax imposed by subsections (a)
13and (b) of Section 201 in an amount equal to 10% of the wages
14paid by the business during the taxable year to full-time
15employees who are residents of Illinois.
16    (b) In addition, for taxable years beginning on or after
17January 1, 2011 and ending on or before December 31, 2016, each
18business located in the State that does not qualify under
19subsection (a) of this Section that increases its total
20full-time employment head count during the taxable year by at
21least 10 employees is entitled to a credit against the tax
22imposed by subsections (a) and (b) of Section 201 in an amount
23equal to 10% of the wages paid by the business during the

 

 

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1taxable year to each resident of Illinois that is first hired
2by the business during the taxable year.
3    (c) The tax credit may not reduce the taxpayer's liability
4to less than zero. If the amount of the tax credit exceeds the
5tax liability for the year, the excess may be carried forward
6and applied to the tax liability of the 5 taxable years
7following the excess credit year. The credit must be applied to
8the earliest year for which there is a tax liability. If there
9are credits from more than one tax year that are available to
10offset a liability, then the earlier credit must be applied
11first.