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Full Text of SB3241  97th General Assembly

SB3241sam001 97TH GENERAL ASSEMBLY

Sen. John M. Sullivan

Filed: 2/28/2012

 

 


 

 


 
09700SB3241sam001LRB097 14777 HLH 66662 a

1
AMENDMENT TO SENATE BILL 3241

2    AMENDMENT NO. ______. Amend Senate Bill 3241 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5changing Section 217 and by adding Section 217.1 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, each taxpayer is
16entitled 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 10%,
2but in no event to exceed $1,200, of the gross wages paid by
3the taxpayer to a qualified veteran in the course of that
4veteran's sustained employment during the taxable year. For
5partners, shareholders of Subchapter S corporations, and
6owners of limited liability companies, if the liability company
7is treated as a partnership for purposes of federal and State
8income taxation, there shall be allowed a credit under this
9Section to be determined in accordance with the determination
10of income and distributive share of income under Sections 702
11and 704 and Subchapter S of the Internal Revenue Code.
12    (b) For purposes of this Section:
13    "Qualified veteran" means an Illinois resident who: (i) was
14a member of the Armed Forces of the United States, a member of
15the Illinois National Guard, or a member of any reserve
16component of the Armed Forces of the United States; (ii) served
17on active duty in connection with Operation Desert Storm,
18Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
19has provided, to the taxpayer, documentation showing that he or
20she was honorably discharged; and (iv) was initially hired by
21the taxpayer on or after January 1, 2007.
22    "Sustained employment" means a period of employment that is
23not less than 185 days during the taxable year.
24    (c) In no event shall a credit under this Section reduce
25the taxpayer's liability to less than zero. If the amount of
26the credit exceeds the tax liability for the year, the excess

 

 

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1may be carried forward and applied to the tax liability of the
25 taxable years following the excess credit year. The tax
3credit shall be applied to the earliest year for which there is
4a tax liability. If there are credits for more than one year
5that are available to offset a liability, the earlier credit
6shall be applied first.
7    (d) A taxpayer who claims a credit under this Section for a
8taxable year with respect to a veteran shall not be allowed a
9credit under Section 217.1 of this Act with respect to the same
10veteran for that taxable year.
11(Source: P.A. 96-101, eff. 1-1-10.)
 
12    (35 ILCS 5/217.1 new)
13    Sec. 217.1. Credit for wages paid to qualified unemployed
14veterans.
15    (a) For each taxable year ending on or after December 31,
162012 and on or before December 31, 2016, each taxpayer is
17entitled to a credit against the tax imposed by subsections (a)
18and (b) of Section 201 of this Act in the amount equal to 20%,
19but in no event to exceed $5,000, of the gross wages paid by
20the taxpayer to a qualified veteran in the course of that
21veteran's sustained employment during each taxable year ending
22on or after the date of hire by the taxpayer if that veteran
23was unemployed for an aggregate period of 4 weeks or more
24during the one-year period ending on the date he or she was
25hired by the taxpayer. For partners, shareholders of Subchapter

 

 

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1S corporations, and owners of limited liability companies, if
2the liability company is treated as a partnership for the
3purposes of federal and State income taxation, there shall be
4allowed a credit under this Section to be determined in
5accordance with the determination of income and distributive
6share of income under Sections 702 and 704 and Subchapter S of
7the Internal Revenue Code.
8    (b) For the purposes of this Section:
9    "Qualified veteran" means an Illinois resident who: (i) was
10a member of the Armed Forces of the United States, a member of
11the Illinois National Guard, or a member of any reserve
12component of the Armed Forces of the United States; (ii) served
13on active duty on or after September 11, 2001; (iii) has
14provided, to the taxpayer, documentation showing that he or she
15was honorably discharged; and (iv) was initially hired by the
16taxpayer on or after January 1, 2012.
17    "Sustained employment" means (i) a period of employment
18that is not less than 185 days following the date of hire or
19(ii) in the case of a veteran who was unemployed for an
20aggregate period of 6 months or more during the one-year period
21ending on the date the veteran was hired by the taxpayer, a
22period of employment that is more than 30 days following the
23date of hire. The period of sustained employment may be
24completed after the end of the taxable year in which the
25veteran is hired.
26    A veteran is "unemployed" for a week if he or she (i) has

 

 

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1received unemployment benefits (as defined in Section 202 of
2the Unemployment Insurance Act, including but not limited to
3federally funded unemployment benefits) for the week, or (ii)
4has not been employed since being honorably discharged.
5    (c) In no event shall a credit under this Section reduce a
6taxpayer's liability to less than zero. If the amount of credit
7exceeds the tax liability for the year, the excess may be
8carried forward and applied to the tax liability for the 5
9taxable years following the excess credit year. The tax credit
10shall be applied to the earliest year for which there is a tax
11liability. If there are credits for more than one year that are
12available to offset liability, the earlier credit shall be
13applied first.
14    (d) A taxpayer who claims a credit under this Section for a
15taxable year with respect to a veteran shall not be allowed a
16credit under Section 217 of this Act with respect to the same
17veteran for that taxable year.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".