Illinois General Assembly - Full Text of SB2925
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Full Text of SB2925  101st General Assembly




State of Illinois
2019 and 2020


Introduced 2/4/2020, by Sen. Paul Schimpf


35 ILCS 5/231

    Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Provides that, in the case of an employee participating in the SkillBridge program, the credit shall be equal to $3,500 per qualifying apprentice. Effective immediately.

LRB101 19550 HLH 69024 b






SB2925LRB101 19550 HLH 69024 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 and renumbering Section 229, as added by Public Act
6101-207, as follows:
7    (35 ILCS 5/231)
8    Sec. 231 229. Apprenticeship education expense credit.
9    (a) As used in this Section:
10    "Department" means the Department of Commerce and Economic
12    "Employer" means an Illinois taxpayer who is the employer
13of the qualifying apprentice.
14    "Qualifying apprentice" means an individual who: (i) is a
15resident of the State of Illinois; (ii) is at least 16 years
16old at the close of the school year for which a credit is
17sought; (iii) during the school year for which a credit is
18sought, was a full-time apprentice enrolled in an
19apprenticeship program which is registered with the United
20States Department of Labor, Office of Apprenticeship; and (iv)
21is employed in Illinois by the taxpayer who is the employer.
22"Qualifying apprentice" also means an apprentice who is
23employed in Illinois by the taxpayer through the United States



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1Department of Defense SkillBridge internship program.
2    "Qualified education expense" means the amount incurred on
3behalf of a qualifying apprentice not to exceed $3,500 for
4tuition, book fees, and lab fees at the school or community
5college in which the apprentice is enrolled during the regular
6school year.
7    "School" means any public or nonpublic secondary school in
8Illinois that is: (i) an institution of higher education that
9provides a program that leads to an industry-recognized
10postsecondary credential or degree; (ii) an entity that carries
11out programs registered under the federal National
12Apprenticeship Act; or (iii) another public or private provider
13of a program of training services, which may include a joint
14labor-management organization.
15    (b) For taxable years beginning on or after January 1,
162020, and beginning on or before January 1, 2025, the employer
17of one or more qualifying apprentices shall be allowed a credit
18against the tax imposed by subsections (a) and (b) of Section
19201 of the Illinois Income Tax Act for qualified education
20expenses incurred on behalf of a qualifying apprentice. The
21credit shall be equal to 100% of the qualified education
22expenses, but in no event may the total credit amount awarded
23to a single taxpayer in a single taxable year exceed $3,500 per
24qualifying apprentice. In the case of an employee participating
25in the SkillBridge program, the credit shall be equal to $3,500
26per qualifying apprentice. A taxpayer shall be entitled to an



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1additional $1,500 credit against the tax imposed by subsections
2(a) and (b) of Section 201 of the Illinois Income Tax Act if
3(i) the qualifying apprentice resides in an underserved area as
4defined in Section 5-5 of the Economic Development for a
5Growing Economy Tax Credit Act during the school year for which
6a credit is sought by an employer or (ii) the employer's
7principal place of business is located in an underserved area,
8as defined in Section 5-5 of the Economic Development for a
9Growing Economy Tax Credit Act. In no event shall a credit
10under this Section reduce the taxpayer's liability under this
11Act to less than zero. For partners, shareholders of Subchapter
12S corporations, and owners of limited liability companies, if
13the liability company is treated as a partnership for purposes
14of federal and State income taxation, there shall be allowed a
15credit under this Section to be determined in accordance with
16the determination of income and distributive share of income
17under Sections 702 and 704 and Subchapter S of the Internal
18Revenue Code.
19    (c) The Department shall implement a program to certify
20applicants for an apprenticeship credit under this Section.
21Upon satisfactory review, the Department shall issue a tax
22credit certificate to an employer incurring costs on behalf of
23a qualifying apprentice stating the amount of the tax credit to
24which the employer is entitled. If the employer is seeking a
25tax credit for multiple qualifying apprentices, the Department
26may issue a single tax credit certificate that encompasses the



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1aggregate total of tax credits for qualifying apprentices for a
2single employer.
3    (d) The Department, in addition to those powers granted
4under the Civil Administrative Code of Illinois, is granted and
5shall have all the powers necessary or convenient to carry out
6and effectuate the purposes and provisions of this Section,
7including, but not limited to, power and authority to:
8        (1) Adopt rules deemed necessary and appropriate for
9    the administration of this Section; establish forms for
10    applications, notifications, contracts, or any other
11    agreements; and accept applications at any time during the
12    year and require that all applications be submitted via the
13    Internet. The Department shall require that applications
14    be submitted in electronic form.
15        (2) Provide guidance and assistance to applicants
16    pursuant to the provisions of this Section and cooperate
17    with applicants to promote, foster, and support job
18    creation within the State.
19        (3) Enter into agreements and memoranda of
20    understanding for participation of and engage in
21    cooperation with agencies of the federal government, units
22    of local government, universities, research foundations or
23    institutions, regional economic development corporations,
24    or other organizations for the purposes of this Section.
25        (4) Gather information and conduct inquiries, in the
26    manner and by the methods it deems desirable, including,



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1    without limitation, gathering information with respect to
2    applicants for the purpose of making any designations or
3    certifications necessary or desirable or to gather
4    information in furtherance of the purposes of this Act.
5        (5) Establish, negotiate, and effectuate any term,
6    agreement, or other document with any person necessary or
7    appropriate to accomplish the purposes of this Section, and
8    consent, subject to the provisions of any agreement with
9    another party, to the modification or restructuring of any
10    agreement to which the Department is a party.
11        (6) Provide for sufficient personnel to permit
12    administration, staffing, operation, and related support
13    required to adequately discharge its duties and
14    responsibilities described in this Section from funds made
15    available through charges to applicants or from funds as
16    may be appropriated by the General Assembly for the
17    administration of this Section.
18        (7) Require applicants, upon written request, to issue
19    any necessary authorization to the appropriate federal,
20    State, or local authority or any other person for the
21    release to the Department of information requested by the
22    Department, including, but not be limited to, financial
23    reports, returns, or records relating to the applicant or
24    to the amount of credit allowable under this Section.
25        (8) Require that an applicant shall, at all times, keep
26    proper books of record and account in accordance with



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1    generally accepted accounting principles consistently
2    applied, with the books, records, or papers related to the
3    agreement in the custody or control of the applicant open
4    for reasonable Department inspection and audits,
5    including, without limitation, the making of copies of the
6    books, records, or papers.
7        (9) Take whatever actions are necessary or appropriate
8    to protect the State's interest in the event of bankruptcy,
9    default, foreclosure, or noncompliance with the terms and
10    conditions of financial assistance or participation
11    required under this Section or any agreement entered into
12    under this Section, including the power to sell, dispose
13    of, lease, or rent, upon terms and conditions determined by
14    the Department to be appropriate, real or personal property
15    that the Department may recover as a result of these
16    actions.
17    (e) The Department, in consultation with the Department of
18Revenue, shall adopt rules to administer this Section. The
19aggregate amount of the tax credits that may be claimed under
20this Section for qualified education expenses incurred by an
21employer on behalf of a qualifying apprentice shall be limited
22to $5,000,000 per calendar year. If applications for a greater
23amount are received, credits shall be allowed on a first-come
24first-served basis, based on the date on which each properly
25completed application for a certificate of eligibility is
26received by the Department. If more than one certificate is



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1received on the same day, the credits will be awarded based on
2the time of submission for that particular day.
3    (f) An employer may not sell or otherwise transfer a credit
4awarded under this Section to another person or taxpayer.
5    (g) The employer shall provide the Department such
6information as the Department may require, including but not
7limited to: (i) the name, age, and taxpayer identification
8number of each qualifying apprentice employed by the taxpayer
9during the taxable year; (ii) the amount of qualified education
10expenses incurred with respect to each qualifying apprentice;
11and (iii) the name of the school at which the qualifying
12apprentice is enrolled and the qualified education expenses are
14    (h) On or before July 1 of each year, the Department shall
15report to the Governor and the General Assembly on the tax
16credit certificates awarded under this Section for the prior
17calendar year. The report must include:
18        (1) the name of each employer awarded or allocated a
19    credit;
20        (2) the number of qualifying apprentices for whom the
21    employer has incurred qualified education expenses;
22        (3) the North American Industry Classification System
23    (NAICS) code applicable to each employer awarded or
24    allocated a credit;
25        (4) the amount of the credit awarded or allocated to
26    each employer;



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1        (5) the total number of employers awarded or allocated
2    a credit;
3        (6) the total number of qualifying apprentices for whom
4    employers receiving credits under this Section incurred
5    qualified education expenses; and
6        (7) the average cost to the employer of all
7    apprenticeships receiving credits under this Section.
8(Source: P.A. 101-207, eff. 8-2-19; revised 9-5-19.)
9    Section 99. Effective date. This Act takes effect upon
10becoming law.