093_HB0262

 
                                     LRB093 03352 SJM 03370 b

 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Income Tax  Act  is  amended  by
 5    adding Section 213 as follows:

 6        (35 ILCS 5/213 new)
 7        Sec. 213.  Paid family leave tax credit.
 8        (a)  Beginning  with  taxable  years  ending  on or after
 9    December 31, 2003, each  taxpayer  that  is  an  employer  is
10    entitled  to  a credit against the tax imposed by subsections
11    (a) and (b) of Section 201 in the amount of 50% of the salary
12    or wage costs incurred during the taxable  year  in  granting
13    paid  family  leave to any employee. The amount of the credit
14    shall not exceed $2,000 per employee per year. The tax credit
15    may not reduce the taxpayer's liability to  less  than  zero.
16    This  Section is exempt from the provisions of Section 250 of
17    this Act.
18        (b)  If  the  amount  of  the  credit  exceeds  the   tax
19    liability for the year, the excess may be carried forward and
20    applied to the tax liability of the 5 taxable years following
21    the  excess  credit  year. The credit shall be applied to the
22    earliest year for which there is a tax  liability.  If  there
23    are credits from more than one tax year that are available to
24    offset  a  liability,  the  earlier  credit  shall be applied
25    first.
26        (c)  As used in this Section:
27        "Employee" means a person who performs services for  hire
28    for  not fewer than 6 consecutive months for the taxpayer for
29    whom a tax credit is sought under this Section.
30        "Family leave" means a total not to  exceed  4  weeks  of
31    paid leave during any calendar year for:
 
                            -2-      LRB093 03352 SJM 03370 b
 1             (1)  the  birth  of  a  child of the employee or the
 2        adoption of a child;
 3             (2)  the care of the employee's  child,  spouse,  or
 4        parent with a serious health condition; and
 5             (3)  up  to  2  parent-teacher conferences per year,
 6        not to exceed 4 hours total.
 7        "Salary or wage costs" means  all  amounts  paid  by  the
 8    employer to or on behalf of the employee, including salary or
 9    wages,  payroll  taxes, and benefits, such as life insurance,
10    health insurance, and pension contributions.
11        "Serious health condition" means  a  physical  or  mental
12    condition  that warrants the participation of the employee to
13    provide care during the period of treatment or supervision by
14    a health care provider and:
15             (1)  involves inpatient care in a hospital, hospice,
16        or residential health care facility; or
17             (2)  requires  continuing  treatment  or  continuing
18        supervision by a health care provider.