98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2827

 

Introduced , by Rep. Derrick Smith

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Provides that each business that employs 20 or fewer employees during the taxable year is entitled to a credit in an amount equal to (i) 25% of the qualified first-year wages, not to exceed $6,000, paid to each qualified employee who worked at least 120 hours but less than 400 hours during the taxable year, and (ii) 40% of the qualified first-year wages, not to exceed $6,000, paid to each qualified employee who worked at least 400 hours during the taxable year. Provides that the term "qualified employee" means a person who (i) is a member of a targeted group, as defined under the federal Work Opportunity Tax Credit, and (ii) was employed by the taxpayer for a period of exactly 12 consecutive months at any point during the taxable year. Effective immediately.


LRB098 06131 HLH 36172 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2827LRB098 06131 HLH 36172 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. Work opportunity tax credit.
8    (a) For taxable years ending on or after December 31, 2013,
9each small employer in the State is entitled to a credit
10against the tax imposed under subsections (a) and (b) of
11Section 201 in an amount equal to (i) 25% of the qualified
12first-year wages, not to exceed $6,000, paid to each qualified
13employee who worked at least 120 hours but less than 400 hours
14during the taxable year, and (ii) 40% of the qualified
15first-year wages, not to exceed $6,000, paid to each qualified
16employee who worked at least 400 hours during the taxable year.
17    (b) For the purposes of this Section:
18    "Qualified employee" means a person who (i) is a member of
19a targeted group, as defined in subsection (d) of Section 51 of
20the Internal Revenue Code (the federal Work Opportunity Tax
21Credit), and (ii) was employed by the taxpayer for a period of
22exactly 12 consecutive months at any point during the taxable
23year.

 

 

HB2827- 2 -LRB098 06131 HLH 36172 b

1    "Qualified first-year wages" means, with respect to a
2qualified employee, qualified wages attributable to services
3rendered during the one-year period beginning on the date the
4individual begins work for the taxpayer.
5    "Small employer" means a business that employs 20 or fewer
6employees at a location in the State during the taxable year.
7    (c) The tax credit may not reduce the taxpayer's liability
8to less than zero. If the amount of the tax credit exceeds the
9tax liability for the year, the excess may be carried forward
10and applied to the tax liability of the 5 taxable years
11following the excess credit year. The credit must be applied to
12the earliest year for which there is a tax liability. If there
13are credits from more than one tax year that are available to
14offset a liability, then the earlier credit must be applied
15first.
16    (d) This Section is exempt from the provisions of Section
17250.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.