103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2075

 

Introduced 2/9/2023, by Sen. Seth Lewis

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/234 new
35 ILCS 5/235 new
35 ILCS 5/240 new

    Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately.


LRB103 27704 HLH 54081 b

 

 

A BILL FOR

 

SB2075LRB103 27704 HLH 54081 b

1    AN ACT concerning State government.
 
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 Sections 234, 235, and 240 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Legacy credit.
8    (a) For taxable years beginning on or after January 1,
92024, any sole proprietorship, limited liability company, or
10corporation that is headquartered in the State is entitled to
11a credit against the taxes imposed by subsections (a) and (b)
12of Section 201 in an amount equal to $100 multiplied by the
13number of years during which the taxpayer has been
14headquartered in Illinois as of the last day of the taxable
15year.
16    (b) If the taxpayer is a Subchapter S corporation, the
17credit shall be allowed to shareholders in accordance with the
18determination of income and distributive share of income under
19subchapter S of the Internal Revenue Code.
20    (c) In no event shall a credit under this Section reduce
21the taxpayer's liability to less than zero. If the amount of
22the credit exceeds the tax liability for the year, the excess
23may be carried forward and applied to the tax liability of the

 

 

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15 taxable years following the excess credit year. The tax
2credit shall be applied to the earliest year for which there is
3a tax liability. If there are credits for more than one year
4that are available to offset a liability, the earlier credit
5shall be applied first.
6    (d) This Section is exempt from the provisions of Section
7250.
 
8    (35 ILCS 5/235 new)
9    Sec. 235. Employee tax credit.
10    (a) For taxable years beginning on or after January 1,
112024, any sole proprietorship, limited liability company, or
12corporation that has a business location in the State is
13entitled to a credit against the taxes imposed by subsections
14(a) and (b) of Section 201 in an amount equal to $100 for each
15employee who is a resident of the State and is on the
16employer's payroll with 6 or more months of consecutive
17employment with the employer at the end of the taxable year.
18    (b) If the taxpayer is a Subchapter S corporation, the
19credit shall be allowed to shareholders in accordance with the
20determination of income and distributive share of income under
21subchapter S of the Internal Revenue Code.
22    (c) In no event shall a credit under this Section reduce
23the taxpayer's liability to less than zero. If the amount of
24the credit exceeds the tax liability for the year, the excess
25may be carried forward and applied to the tax liability of the

 

 

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15 taxable years following the excess credit year. The tax
2credit shall be applied to the earliest year for which there is
3a tax liability. If there are credits for more than one year
4that are available to offset a liability, the earlier credit
5shall be applied first.
6    (d) This Section is exempt from the provisions of Section
7250.
 
8    (35 ILCS 5/240 new)
9    Sec. 240. Collective bargaining employee tax credit.
10    (a) For taxable years beginning on or after January 1,
112024, any sole proprietorship, limited liability company, or
12corporation that has a business location in the State is
13entitled to a credit against the taxes imposed by subsections
14(a) and (b) of Section 201 in an amount equal to $25 for each
15employee who is a resident of the State, qualifies under the
16definitions of the National Labor Standards Board, and has 6
17or more months of consecutive employment with the employer at
18the end of the taxable year.
19    (b) If the taxpayer is a Subchapter S corporation, the
20credit shall be allowed to shareholders in accordance with the
21determination of income and distributive share of income under
22subchapter S of the Internal Revenue Code.
23    (c) In no event shall a credit under this Section reduce
24the taxpayer's liability to less than zero. If the amount of
25the credit exceeds the tax liability for the year, the excess

 

 

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1may be carried forward and applied to the tax liability of the
25 taxable years following the excess credit year. The tax
3credit shall be applied to the earliest year for which there is
4a tax liability. If there are credits for more than one year
5that are available to offset a liability, the earlier credit
6shall be applied first.
7    (d) This Section is exempt from the provisions of Section
8250.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.