101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0216

 

Introduced 1/31/2019, by Sen. Jennifer Bertino-Tarrant

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for qualified education expenses incurred by employers on behalf of qualifying apprentices. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 229 as follows:
 
6    (35 ILCS 5/229 new)
7    Sec. 229. Apprenticeship education expense credit.
8    (a) For tax years ending on or after December 31, 2019, a
9taxpayer who is the employer of one or more qualifying
10apprentices shall be allowed a credit against the tax imposed
11by subsections (a) and (b) of Section 201 for qualified
12education expenses incurred on behalf of a qualifying
13apprentice. The credit shall be equal to 100% of qualified
14education expenses, but in no event may the total credit amount
15awarded to a single taxpayer in a single taxable year exceed
16$3,500. In no event shall a credit under this Section reduce
17the taxpayer's liability under this Act to less than zero.
18    If the taxpayer is a partnership or Subchapter S
19corporation, the credit shall be allowed to the partners or
20shareholders in accordance with the determination of income and
21distributive share of income under Sections 702 and 704 and
22Subchapter S of the Internal Revenue Code.
23    (b) This Section is exempt from the provisions of Section

 

 

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1250 of this Act.
2    (c) The taxpayer shall provide the Department such
3information as the Department may require, including but not
4limited to: (i) the name, age, and taxpayer identification
5number of each qualifying apprentice employed by the taxpayer
6during the taxable year; (ii) the amount of qualified education
7expenses incurred with respect to each qualifying apprentice;
8and (iii) the name of the school at which the qualifying
9apprentice is enrolled and the qualified education expenses are
10incurred.
11    (d) For purposes of this Section:
12    "Employer" means an Illinois taxpayer who is the employer
13of the qualifying apprentice.
14    "Qualifying apprentices" means individuals who (i) are
15residents of the State of Illinois, (ii) are between the ages
16of 16 and 30 years old at the close of the school year for which
17a credit is sought, (iii) during the school year for which a
18credit is sought were full-time apprentices enrolled in an
19apprenticeship program which is registered with the United
20States Department of Labor, Office of Apprenticeship, and (iv)
21are employed in Illinois by the taxpayer who is the employer.
22    "Qualified education expense" means the amount incurred on
23behalf of a qualifying apprentice not to exceed $3,500 for
24tuition, book fees, and lab fees at the school or community
25college in which the apprentice is enrolled during the regular
26school year.

 

 

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1    "School" means any public or nonpublic secondary school in
2Illinois that is: (i) an institution of higher education that
3provides a program that leads to an industry-recognized
4postsecondary credential or degree; (ii) an entity that carries
5out programs registered under the federal National
6Apprenticeship Act; or (iii) another public or private provider
7of a program of training services, which may include a joint
8labor-management organization.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.