100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5778

 

Introduced , by Rep. Katie Stuart

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/217

    Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also extends to wages paid to a qualified veteran's spouse. Effective immediately.


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A BILL FOR

 

HB5778LRB100 17769 HLH 32947 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
5changing Section 217 as follows:
 
6    (35 ILCS 5/217)
7    Sec. 217. Credit for wages paid to qualified veterans and
8spouses of qualified veterans.
9    (a) For each taxable year beginning on or after January 1,
102007 and ending on or before December 30, 2010, each taxpayer
11is entitled to a credit against the tax imposed by subsections
12(a) and (b) of Section 201 of this Act in an amount equal to 5%,
13but in no event to exceed $600, of the gross wages paid by the
14taxpayer to a qualified veteran in the course of that veteran's
15sustained employment during the taxable year. For each taxable
16year beginning on or after January 1, 2010, each taxpayer is
17entitled to a credit against the tax imposed by subsections (a)
18and (b) of Section 201 of this Act in an amount equal to 10%,
19but in no event to exceed $1,200, of the gross wages paid by
20the taxpayer to a qualified veteran or the spouse of a
21qualified veteran in the course of that veteran's or spouse's
22sustained employment during the taxable year. For partners,
23shareholders of Subchapter S corporations, and owners of

 

 

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1limited liability companies, if the liability company is
2treated as a partnership for purposes of federal and State
3income taxation, there shall be allowed a credit under this
4Section to be determined in accordance with the determination
5of income and distributive share of income under Sections 702
6and 704 and Subchapter S of the Internal Revenue Code.
7    (b) For purposes of this Section:
8    "Qualified veteran" means an Illinois resident who: (i) was
9a member of the Armed Forces of the United States, a member of
10the Illinois National Guard, or a member of any reserve
11component of the Armed Forces of the United States; (ii) served
12on active duty in connection with Operation Desert Storm,
13Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
14has provided, to the taxpayer, documentation showing that he or
15she was honorably discharged; and (iv) was initially hired by
16the taxpayer on or after January 1, 2007.
17    "Sustained employment" means a period of employment that is
18not less than 185 days during the taxable year.
19    (c) In no event shall a credit under this Section reduce
20the taxpayer's liability to less than zero. If the amount of
21the credit exceeds the tax liability for the year, the excess
22may be carried forward and applied to the tax liability of the
235 taxable years following the excess credit year. The tax
24credit shall be applied to the earliest year for which there is
25a tax liability. If there are credits for more than one year
26that are available to offset a liability, the earlier credit

 

 

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1shall be applied first.
2    (d) A taxpayer who claims a credit under this Section for a
3taxable year with respect to a veteran shall not be allowed a
4credit under Section 217.1 of this Act with respect to the same
5veteran for that taxable year.
6(Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.