98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2565

 

Introduced , by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal $500 times the number of full-time Illinois employees of a certified new business firm and its corresponding sponsor firm in each of the 3 years after the firm is certified as a new business. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2565LRB098 07346 HLH 37409 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 adding
5Section 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Certified new business credit.
8    (a) For taxable years beginning on or after January 1,
92014, each sponsor firm and each certified new business firm is
10entitled to a credit against the tax imposed by subsections (a)
11and (b) of Section 201 in an amount equal $500 times the number
12of full-time Illinois employees of the certified new business
13firm in each of the 3 years after the firm is certified as a new
14business.
15    (b) "Certified new business firm" or "new business firm"
16means a business that is certified by the Department under this
17Section. To qualify as a certified new business, the business
18must:
19        (1) be a validly organized and existing corporation,
20    limited liability company, limited partnership, general
21    partnership, limited liability partnership, or sole
22    proprietorship;
23        (2) have been doing business for at least 3 years at

 

 

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1    the time it applies for the credit;
2        (3) have a place of business outside of the State at
3    the time of application;
4        (4) not have had a place of business within the State
5    for at least 3 years at the time it applies for the credit;
6    and
7        (5) not be a tenant or affiliate of the sponsor firm.
8    "Department" means the Department of Commerce and Economic
9Opportunity.
10    "Sponsor firm" means a business that:
11        (1) is a validly organized and existing corporation,
12    limited liability company, limited partnership, general
13    partnership, limited liability partnership, or sole
14    proprietorship;
15        (2) has been doing business in Illinois for at least 3
16    years at the time it applies for the credit;
17        (3) has not entered into a rental agreement for a
18    commercial rental unit with the new business firm; and
19        (4) is not a real estate agency, real estate developer,
20    or landlord for the new business firm, or a bank or other
21    lender who provides financing for the new business firm;
22    and
23        (5) is not an affiliate of a new business firm.
24    (c) The certified new business firm and the sponsor firm
25shall complete a joint application with the Department prior to
26receiving credits under this Act. The Department may not

 

 

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1approve more than $3,000,000 in credits in any State fiscal
2year.
3    (d) The tax credit may not reduce the taxpayer's liability
4to less than zero. If the amount of the tax credit exceeds the
5tax liability for the year, the excess may be carried forward
6and applied to the tax liability of the 5 taxable years
7following the excess credit year. The credit must be applied to
8the earliest year for which there is a tax liability. If there
9are credits from more than one tax year that are available to
10offset a liability, then the earlier credit must be applied
11first.
12    (e) For partners, shareholders of Subchapter S
13corporations, and owners of limited liability companies, if the
14liability company is treated as a partnership for purposes of
15federal and State income taxation, the credit under allowed
16this Section shall be determined in accordance with the
17determination of income and distributive share of income under
18Sections 702 and 704 and Subchapter S of the Internal Revenue
19Code.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.