State of Illinois
2017 and 2018


Introduced , by Rep. David B. Reis


35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Authorizes a credit to taxpayers for 10% of stipends or salaries paid to qualified college interns. Limits the credit to stipends and salaries paid to 5 interns each year, and limits total credits to $3,000 for all years combined. Defines a "qualified college intern". Provides that the credit may not reduce the taxpayer's liability to less than zero and may not be carried forward or back. Exempt from the Act's sunset provisions. Effective immediately.

LRB100 03787 HLH 13792 b






HB0399LRB100 03787 HLH 13792 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 adding
5Section 224 as follows:
6    (35 ILCS 5/224 new)
7    Sec. 224. Credit for internship employment.
8    (a) For each taxable year ending on or after December 31,
92017, each taxpayer is entitled to a credit against the tax
10imposed by subsections (a) and (b) of Section 201 of this Act
11in an amount equal to 10% of the stipend or salary paid by the
12taxpayer to up to 5 qualified college interns during the
13taxable year, but not to exceed $3,000 in total credits under
14this Section for all taxable years combined. For partners,
15shareholders of Subchapter S corporations, and owners of
16limited liability companies, if the liability company is
17treated as a partnership for purposes of federal and State
18income taxation, there shall be allowed a credit under this
19Section to be determined in accordance with the determination
20of income and distributive share of income under Sections 702
21and 704 and Subchapter S of the Internal Revenue Code.
22    (b) For purposes of this Section, "qualified college
23intern" means an enrolled student in an institution of higher



HB0399- 2 -LRB100 03787 HLH 13792 b

1education or vocational technical education program (i) who is
2seeking a degree or certification of completion in a major
3field of study closely related to the work experience performed
4for the taxpayer, (ii) whose internship is taken for academic
5credit or counts toward the completion of a vocational
6technical education program, (iii) who is supervised and
7evaluated by the taxpayer, and (iv) whose position is located
8in Illinois.
9    (c) In no event shall a credit under this Section reduce
10the taxpayer's liability to less than zero. If the amount of
11the credit exceeds the tax liability for the year, the excess
12may not be carried forward or carried back.
13    (d) This Section is exempt from the provisions of Section
15    Section 99. Effective date. This Act takes effect upon
16becoming law.