HB3290 100TH GENERAL ASSEMBLY

LRB100 06265 HLH 16302 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3290

Introduced , by Rep. Sue Scherer

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Creates a credit for wages paid pursuant to a qualified apprenticeship program. Provides that a "qualified apprenticeship program" means an apprenticeship program in manufacturing, plastics, or construction trades that is (i) certified by the Department of Commerce and Economic Opportunity and (ii) at least 3 years in duration. Provides that the credit may not exceed the lesser of (i) 50% of the wages paid by the taxpayer to each apprentice during the taxable year or (ii) $4,800 per apprentice. Provides that the credit may be carried forward for 5 taxable years. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Illinois Income Tax Act is amended by adding Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Manufacturing apprenticeship training credit.

(a) For tax years beginning on or after January 1, 2017, a taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 for certain amounts paid by the taxpayer as wages pursuant to a qualified apprenticeship program. The credit may not exceed the lesser of (i) 50% of the wages paid by the taxpayer to each apprentice during the taxable year or (ii) $4,800 per apprentice. The taxpayer shall apply with the Department of Commerce and Economic Opportunity annually for certification as a "qualified apprenticeship program". The application shall be in the form and manner prescribed by the Department of Commerce and Economic Opportunity.

(b) For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, the credit under this Section shall be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(d) For the purposes of this Section, "qualified apprenticeship program" means an apprenticeship program in manufacturing, plastics, or construction trades that is certified by the Department of Commerce and Economic Opportunity under this Section and at least 3 years in duration.

(e) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.