98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2625

 

Introduced 2/21/2013, by Rep. Robert F Martwick

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal to $500 for each new employee (i) who was hired by the taxpayer during the previous taxable year to perform a manufacturing job at a location in Illinois and (ii) who remains employed by the taxpayer on the last day of the current taxable year. Provides that, if a taxpayer receives such a credit and the position is relocated to an out-of-state job site within 5 years after the taxpayer receives the credit, then the taxpayer shall forfeit the amount of the credit awarded for that job. Provides that excess credit amounts may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. Provides that the credit is exempt from the Act's automatic sunset provision. 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 adding
5Section 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Manufacturing jobs credit.
8    (a) For each taxable year ending on or after December 31,
92013, each taxpayer is entitled to a credit against the tax
10imposed by subsections (a) and (b) of Section 201 of this Act
11in an amount equal to $500 for each new employee (i) who was
12hired by the taxpayer during the previous taxable year to
13perform a manufacturing job at a location in Illinois and (ii)
14who remains employed by the taxpayer on the last day of the
15current taxable year.
16    (b) If a position for which a taxpayer receives a credit
17under this Section is relocated to an out-of-state job site
18within 5 years after the taxpayer receives the credit, then the
19taxpayer shall forfeit the amount of the credit awarded for
20that job. The taxpayer shall promptly repay to the Department
21of Revenue the amount of the credit. The Director of Revenue
22may initiate proceedings against the taxpayer to recover the
23amount of the credit within 2 years after the position is

 

 

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1relocated.
2    (c) A tax credit awarded under this Section may not reduce
3the taxpayer's liability to less than zero. If the amount of
4the tax credit exceeds the taxpayer's liability for the taxable
5year, the excess may be carried forward and applied to the tax
6liability of the 5 taxable years following the excess credit
7year. The credit must be applied to the earliest year for which
8there is a tax liability. If there are credits from more than
9one tax year that are available to offset a liability, then the
10earlier credit must be applied first.
11    (d) For the purposes of this Section:
12    "Full-time employee" means an individual who is employed
13for consideration for at least 35 hours each week or who
14renders any other standard of service generally accepted by
15industry custom or practice as full-time employment.
16    "New employee" means an employee who is first hired by the
17taxpayer to perform a job that was not previously performed by
18another employee, and whose employment increases the total
19number of individuals employed by the taxpayer in Illinois. The
20term "new employee" does not include: (1) a child, grandchild,
21parent, or spouse, other than a spouse who is legally separated
22from the individual, of any individual who has a direct or an
23indirect ownership interest of at least 5% in the profits,
24capital, or value of the taxpayer; or (2) an employee of the
25taxpayer who was employed in Illinois by a related member of
26the taxpayer at any time during the 3 months immediately

 

 

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1preceding the employee's date of hire by the taxpayer.
2    "Related member" has the meaning ascribed to that term in
3Section 5-5 of the Economic Development for a Growing Economy
4Tax Credit Act.
5    (e) This Section is exempt from the provisions of Section
6250.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.