97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3241

 

Introduced 2/1/2012, by Sen. John M. Sullivan

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/217

    Amends the Illinois Income Tax Act. Increases the amount of the credit for wages paid by the taxpayer to a qualified veteran to 20%, but in no event to exceed $5,000, of the gross wages paid by the taxpayer to a qualified veteran if the veteran (A) was hired by the taxpayer on or after January 1, 2012 and (B) was unemployed at the time he or she was hired by the taxpayer. Exempts the credit from the Act's automatic sunset provisions. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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.
8    (a) For each taxable year beginning on or after January 1,
92007 and ending on or before December 30, 2010, each taxpayer
10is entitled to a credit against the tax imposed by subsections
11(a) and (b) of Section 201 of this Act in an amount equal to 5%,
12but in no event to exceed $600, of the gross wages paid by the
13taxpayer to a qualified veteran in the course of that veteran's
14sustained employment during the taxable year. For each taxable
15year beginning on or after January 1, 2010 and ending on or
16before December 30, 2012, each taxpayer is entitled to a credit
17against the tax imposed by subsections (a) and (b) of Section
18201 of this Act in an amount equal to 10%, but in no event to
19exceed $1,200, of the gross wages paid by the taxpayer to a
20qualified veteran in the course of that veteran's sustained
21employment during the taxable year. For each taxable year
22beginning on or after January 1, 2012, each taxpayer is
23entitled to a credit against the tax imposed by subsections (a)

 

 

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1and (b) of Section 201 of this Act in an amount equal to (i)
220%, but in no event to exceed $5,000, of the gross wages paid
3by the taxpayer to a qualified veteran in the course of that
4veteran's sustained employment during the taxable year if that
5veteran (A) was hired by the taxpayer on or after January 1,
62012 and (B) was unemployed at the time he or she was hired by
7the taxpayer and (ii) 10%, but in no event to exceed $1,200, of
8the gross wages paid by the taxpayer to a qualified veteran
9other than a qualified veteran described in item (i) above in
10the course of that veteran's sustained employment during the
11taxable year. For partners, shareholders of Subchapter S
12corporations, and owners of limited liability companies, if the
13liability company is treated as a partnership for purposes of
14federal and State income taxation, there shall be allowed a
15credit under this Section to be determined in accordance with
16the determination of income and distributive share of income
17under Sections 702 and 704 and Subchapter S of the Internal
18Revenue Code.
19    (b) For purposes of this Section:
20    "Qualified veteran" means an Illinois resident who: (i) was
21a member of the Armed Forces of the United States, a member of
22the Illinois National Guard, or a member of any reserve
23component of the Armed Forces of the United States; (ii) served
24on active duty in connection with Operation Desert Storm,
25Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
26has provided, to the taxpayer, documentation showing that he or

 

 

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1she was honorably discharged; and (iv) was initially hired by
2the taxpayer on or after January 1, 2007.
3    "Sustained employment" means a period of employment that is
4not less than 185 days during the taxable year.
5    (c) In no event shall a credit under this Section reduce
6the taxpayer's liability to less than zero. If the amount of
7the credit exceeds the tax liability for the year, the excess
8may be carried forward and applied to the tax liability of the
95 taxable years following the excess credit year. The tax
10credit shall be applied to the earliest year for which there is
11a tax liability. If there are credits for more than one year
12that are available to offset a liability, the earlier credit
13shall be applied first.
14    (d) This Section is exempt from the provisions of Section
15250.
16(Source: P.A. 96-101, eff. 1-1-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.