102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1494

 

Introduced 2/17/2021, by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/210.5

    Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning tax credits for providing child care for employees.


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A BILL FOR

 

HB1494LRB102 03510 HLH 13523 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 210.5 as follows:
 
6    (35 ILCS 5/210.5)
7    Sec. 210.5. Tax credit for employee child care.
8    (a) Each corporate taxpayer is entitled to a credit
9against the the tax imposed by subsections (a) and (b) of
10Section 201 in an amount equal to (i) for taxable years ending
11on or after December 31, 2000 and on or before December 31,
122004 and for taxable years ending on or after December 31,
132007, 30% of the start-up costs expended by the corporate
14taxpayer to provide a child care facility for the children of
15its employees and (ii) for taxable years ending on or after
16December 31, 2000, 5% of the annual amount paid by the
17corporate taxpayer in providing the child care facility for
18the children of its employees. The provisions of Section 250
19do not apply to the credits allowed under this Section. If the
205% credit authorized under item (ii) of this subsection is
21claimed, the 5% credit authorized under Section 210 cannot
22also be claimed.
23    To receive the tax credit under this Section a corporate

 

 

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1taxpayer may either independently provide and operate a child
2care facility for the children of its employees or it may join
3in a partnership with one or more other corporations to
4jointly provide and operate a child care facility for the
5children of employees of the corporations in the partnership.
6    (b) The tax credit may not reduce the taxpayer's liability
7to less than zero. If the amount of the tax credit exceeds the
8tax liability for the year, the excess may be carried forward
9and applied to the tax liability of the 5 taxable years
10following the excess credit year. The credit must be applied
11to the earliest year for which there is a tax liability. If
12there are credits from more than one tax year that are
13available to offset a liability, then the earlier credit must
14be applied first.
15    (c) As used in this Section, "start-up costs" means
16planning, site-preparation, construction, renovation, or
17acquisition of a child care facility. As used in this Section,
18"child care facility" is limited to a child care facility
19located in Illinois.
20    (d) A corporate taxpayer claiming the credit provided by
21this Section shall maintain and record such information as the
22Department may require by rule regarding the child care
23facility for which the credit is claimed.
24(Source: P.A. 95-648, eff. 10-11-07.)