State of Illinois
90th General Assembly
Legislation

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90_HB0270

      35 ILCS 5/209
          Amends the Illinois Income Tax Act to provide  that,  for
      tax  years beginning on or after January 1, 1997, tax credits
      for "TECH PREP" youth vocational programs shall be  available
      to   all  taxpayers  rather  than  only  being  available  to
      taxpayers engaged in manufacturing.  Provides  for  a  5-year
      carry-forward of excess credits. Effective immediately.
                                                    LRB9000831KDcdA
                                              LRB9000831KDcdA
 1        AN  ACT  to amend the Illinois Income Tax Act by changing
 2    Section 209.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Illinois  Income Tax Act is amended by
 6    changing Section 209 as follows:
 7        (35 ILCS 5/209)
 8        Sec. 209. Tax Credit  for  "TECH-PREP"  youth  vocational
 9    programs.
10        (a)  Beginning with tax years ending on or after June 30,
11    1995,      every   taxpayer   who  is  primarily  engaged  in
12    manufacturing is allowed a credit against the tax imposed  by
13    subsections  (a) and (b) of Section 201 in an amount equal to
14    20% of the taxpayer's direct payroll expenditures for which a
15    credit has not already been claimed under subsection  (j)  of
16    Section 201 of this Act, in the tax year for which the credit
17    is claimed, for cooperative secondary school youth vocational
18    programs  in  Illinois  which  are  certified  as  qualifying
19    TECH-PREP  programs  by  the State Board of Education and the
20    Department of Revenue because the programs  prepare  students
21    to  be  technically  skilled workers and meet the performance
22    standards  of  business  and  industry  and   the   admission
23    standards of higher education. The credit may also be claimed
24    for personal services rendered to the taxpayer by a TECH-PREP
25    student  or  instructor  (i)  which  would  be subject to the
26    provisions of Article  7  of  this  Act  if  the  student  or
27    instructor was an employee of the taxpayer and (ii) for which
28    no credit under this Section is claimed by another taxpayer.
29        (a-5)  For  tax  years  beginning  on or after January 1,
30    1997,  every taxpayer is allowed a  credit  against  the  tax
31    imposed  by  subsections  (a)  and  (b)  of Section 201 in an
                            -2-               LRB9000831KDcdA
 1    amount  equal  to  20%  of  the  taxpayer's  direct   payroll
 2    expenditures  for which a credit has not already been claimed
 3    under subsection (j) of Section 201 of this Act, in  the  tax
 4    year  for  which  the  credit  is  claimed,  for  cooperative
 5    secondary  school youth vocational programs in Illinois which
 6    are certified as qualifying TECH-PREP programs by  the  State
 7    Board  of Education and the Department of Revenue because the
 8    programs prepare students to be technically  skilled  workers
 9    and  meet  the performance standards of business and industry
10    and the admission standards of higher education.  The  credit
11    may  also  be  claimed  for personal services rendered to the
12    taxpayer by a TECH-PREP student or instructor (i) which would
13    be subject to the provisions of Article 7 of this Act if  the
14    student  or  instructor  was  an employee of the taxpayer and
15    (ii) for which no credit under this  Section  is  claimed  by
16    another taxpayer.
17        (b)  If   the  amount  of  the  credit  exceeds  the  tax
18    liability for the year, the excess may be carried forward and
19    applied to the  tax  liability  of  the  5  2  taxable  years
20    following the excess credit year. The credit shall be applied
21    to  the  earliest year for which there is a tax liability. If
22    there are credits from  more  than  one  tax  year  that  are
23    available  to offset a liability, the earlier credit shall be
24    applied first.
25        (c)  A taxpayer claiming  the  credit  provided  by  this
26    Section  shall maintain and record such information regarding
27    its participation in a qualifying TECH-PREP  program  as  the
28    Department  may  require  by  regulation.  When  claiming the
29    credit provided by this Section, the taxpayer  shall  provide
30    such  information regarding the taxpayer's participation in a
31    qualifying TECH-PREP program as the Department of Revenue may
32    require by regulation.
33        (d)  This Section does not apply to those  programs  with
34    national  standards  that  have  been  or  in  the future are
                            -3-               LRB9000831KDcdA
 1    approved  by  the  U.S.  Department  of  Labor,   Bureau   of
 2    Apprenticeship  Training  or any federal agency succeeding to
 3    the responsibilities of that Bureau.
 4    (Source: P.A. 88-505; 89-399, eff. 8-20-95.)
 5        Section 99.  Effective date.  This Act takes effect  upon
 6    becoming law.

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