State of Illinois
2013 and 2014


Introduced 1/25/2013, by Rep. Michael J. Madigan


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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HB0399LRB098 03218 HLH 33233 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 against
9the the tax imposed by subsections (a) and (b) of Section 201
10in an amount equal to (i) for taxable years ending on or after
11December 31, 2000 and on or before December 31, 2004 and for
12taxable years ending on or after December 31, 2007, 30% of the
13start-up costs expended by the corporate taxpayer to provide a
14child care facility for the children of its employees and (ii)
15for taxable years ending on or after December 31, 2000, 5% of
16the annual amount paid by the corporate taxpayer in providing
17the child care facility for the children of its employees. The
18provisions of Section 250 do not apply to the credits allowed
19under this Section. If the 5% credit authorized under item (ii)
20of this subsection is claimed, the 5% credit authorized under
21Section 210 cannot also be claimed.
22    To receive the tax credit under this Section a corporate
23taxpayer may either independently provide and operate a child



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