99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3419

 

Introduced 4/12/2016, by Sen. Toi W. Hutchinson

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/210
35 ILCS 5/210.5
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Provides that the credit for employee child care shall be in an amount equal to 50% of the start-up costs expended by the taxpayer to provide a child care facility for the children of its employees and 20% of the annual amount paid by the taxpayer to provide an on site child care facility for the children of its employees or to pay for the provision of child care offsite for the children of its employees (currently, 30% of the start-up costs and 5% of the annual amount). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Creates a child care credit in an amount equal to 20% of the federal tax credit for each qualifying child. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3419LRB099 21287 HLH 46936 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 Sections 210 and 210.5 and by adding Section 224 as
6follows:
 
7    (35 ILCS 5/210)
8    Sec. 210. Dependent care assistance program tax credit.
9    (a) Beginning with tax years ending on or after June 30,
101995, each taxpayer who is primarily engaged in manufacturing
11is entitled to a credit against the tax imposed by subsections
12(a) and (b) of Section 201 in an amount equal to 5% of the
13amount of expenditures by the taxpayer in the tax year for
14which the credit is claimed, reported pursuant to Section
15129(d)(7) of the Internal Revenue Code, to provide in the
16Illinois premises of the taxpayer's workplace an on-site
17facility dependent care assistance program under Section 129 of
18the Internal Revenue Code.
19    (b) If the amount of credit exceeds the tax liability for
20the year, the excess may be carried forward and applied to the
21tax liability of the 2 taxable years following the excess
22credit year. The credit shall be applied to the earliest year
23for which there is a tax liability. If there are credits from

 

 

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1more than one tax year that are available to offset a
2liability, the earlier credit shall be applied first.
3    (c) A taxpayer claiming the credit provided by this Section
4shall maintain and record such information as the Department
5may require by regulation regarding the dependent care
6assistance program for which credit is claimed. When claiming
7the credit provided by this Section, the taxpayer shall provide
8such information regarding the taxpayer's provision of a
9dependent care assistance program under Section 129 of the
10Internal Revenue Code.
11    (d) If the credit authorized under this Section is claimed
12for a taxable year, then the taxpayer may not also claim a
13credit under Section 210.5 for the same taxable year.
14(Source: P.A. 88-505.)
 
15    (35 ILCS 5/210.5)
16    Sec. 210.5. Tax credit for employee child care.
17    (a) Each corporate taxpayer is entitled to a credit against
18the tax imposed by subsections (a) and (b) of Section 201 in an
19amount equal to (i) for taxable years ending on or after
20December 31, 2000 and on or before December 31, 2004 and for
21taxable years ending on or after December 31, 2007 and before
22December 31, 2016, 30% of the start-up costs expended by the
23corporate taxpayer to provide a child care facility for the
24children of its employees, and (ii) for taxable years ending on
25or after December 31, 2000, 5% of the annual amount paid by the

 

 

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1corporate taxpayer in providing the child care facility for the
2children of its employees, and (iii) for taxable years ending
3on or after December 31, 2016, 50% of the start-up costs
4expended by the corporate taxpayer to provide a child care
5facility for the children of its employees and 20% of the
6annual amount paid by the corporate taxpayer to provide an on
7site child care facility for the children of its employees or
8to provide child care offsite for the children of its
9employees. The provisions of Section 250 do not apply to the
10credits allowed under this Section. If the 5% credit authorized
11under this Section item (ii) of this subsection is claimed, the
125% credit authorized under Section 210 cannot also be claimed.
13    To receive the tax credit under this Section a corporate
14taxpayer may do any of the following: it may either
15independently provide and operate a child care facility for the
16children of its employees, or it may join in a partnership with
17one or more other corporations to jointly provide and operate a
18child care facility for the children of employees of the
19corporations in the partnership, or it may coordinate with an
20independent child care facility to provide care for the
21children of employees.
22    (b) The tax credit may not reduce the taxpayer's liability
23to less than zero. If the amount of the tax credit exceeds the
24tax liability for the year, the excess may be carried forward
25and applied to the tax liability of the 5 taxable years
26following the excess credit year. The credit must be applied to

 

 

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1the earliest year for which there is a tax liability. If there
2are credits from more than one tax year that are available to
3offset a liability, then the earlier credit must be applied
4first.
5    (c) As used in this Section, "start-up costs" means
6planning, site-preparation, construction, renovation, or
7acquisition of a child care facility. As used in this Section,
8"child care facility" is limited to a child care facility
9located in Illinois.
10    (d) A corporate taxpayer claiming the credit provided by
11this Section shall maintain and record such information as the
12Department may require by rule regarding the child care
13facility for which the credit is claimed.
14(Source: P.A. 95-648, eff. 10-11-07.)
 
15    (35 ILCS 5/224 new)
16    Sec. 224. Child care credit.
17    (a) With respect to the federal child tax credit allowed
18for the taxable year under Section 24 of the federal Internal
19Revenue Code, each qualified individual taxpayer is entitled to
20a credit against the tax imposed by subsections (a) and (b) of
21Section 201 in an amount equal to 20% of the federal tax credit
22for each qualifying child in each taxable year beginning on or
23after January 1, 2016.
24    For a non-resident or part-year resident, the amount of the
25credit under this Section shall be in proportion to the amount

 

 

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1of income attributable to this State.
2    (b) For each taxable year beginning on or after January 1,
32016, if the amount of the credit exceeds the income tax
4liability for the applicable tax year, then the excess credit
5shall be refunded to the taxpayer. The amount of a refund shall
6not be included in the taxpayer's income or resources for the
7purposes of determining eligibility or benefit level in any
8means-tested benefit program administered by a governmental
9entity unless required by federal law.
10    (c) For purposes of this Section:
11        "Qualified individual taxpayer" means a taxpayer who
12    may claim one or more qualifying children and whose federal
13    adjusted gross income is less than or equal to the
14    threshold amount, as defined in Section 24 of the Internal
15    Revenue Code.
16        "Qualifying child" means a child who is 12 years of age
17    or younger and may be claimed as a dependent on the
18    taxpayer's federal tax return under the Internal Revenue
19    Code.
20    (d) This Section is exempt from the provisions of Section
21250.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.