103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1583

 

Introduced 2/8/2023, by Sen. Tom Bennett

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/234 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 10% of the stipend or salary paid by the taxpayer to up to (i) 5 qualified college interns or (ii) 5 qualified high school interns during the taxable year. Provides that no taxpayer may claim more than $5,000 in total credits under that Section for all taxable years combined. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.


LRB103 27698 HLH 54075 b

 

 

A BILL FOR

 

SB1583LRB103 27698 HLH 54075 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
5adding Section 234 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Credit for internship employment.
8    (a) For each taxable year ending on or after December 31,
92023, 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 (i) 5 qualified college interns or (ii) 5
13qualified high school interns during the taxable year. No
14taxpayer may claim more than $5,000 in total credits under
15this Section for all taxable years combined. For partners,
16shareholders of Subchapter S corporations, and owners of
17limited liability companies, if the liability company is
18treated as a partnership for purposes of federal and State
19income taxation, there shall be allowed a credit under this
20Section to be determined in accordance with the determination
21of income and distributive share of income under Sections 702
22and 704 and Subchapter S of the Internal Revenue Code.
23    (b) For purposes of this Section:

 

 

SB1583- 2 -LRB103 27698 HLH 54075 b

1    "Qualified college intern" means a student (i) who is
2enrolled at an Illinois institution of higher education or a
3vocational technical education program and is seeking a degree
4or certification of completion in a major field of study
5closely related to the work experience performed for the
6taxpayer, (ii) whose internship is taken for academic credit
7or counts toward the completion of a vocational technical
8education program, (iii) who is supervised and evaluated by
9the taxpayer, and (iv) whose internship position is located in
10Illinois.
11    "Qualified high school intern" means a student (i) who is
12enrolled in an Illinois high school, (ii) whose internship is
13taken for academic credit or counts toward the completion of
14an education program, (iii) who is supervised and evaluated by
15the taxpayer, and (iv) whose internship position is located in
16Illinois.
17    (c) In no event shall a credit under this Section reduce
18the taxpayer's liability to less than zero. If the amount of
19the credit exceeds the taxpayer's liability for the taxable
20year, the excess credit amounts may not be carried forward,
21carried back, or refunded to the taxpayer.
22    (d) This Section is exempt from the provisions of Section
23250.
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.