Illinois General Assembly - Full Text of HB4223
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Full Text of HB4223  102nd General Assembly

HB4223 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4223

 

Introduced 1/5/2022, by Rep. Katie Stuart

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/217

    Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also extends to wages paid to a qualified veteran's spouse. Provides that active duty members of the United States Armed Forces are also considered "qualified veterans". Effective immediately.


LRB102 21304 HLH 30416 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4223LRB102 21304 HLH 30416 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 217 as follows:
 
6    (35 ILCS 5/217)
7    Sec. 217. Credit for wages paid to qualified veterans and
8spouses of qualified veterans.
9    (a) For each taxable year beginning on or after January 1,
102007 and ending on or before December 30, 2010, each taxpayer
11is entitled to a credit against the tax imposed by subsections
12(a) and (b) of Section 201 of this Act in an amount equal to
135%, but in no event to exceed $600, of the gross wages paid by
14the taxpayer to a qualified veteran in the course of that
15veteran's sustained employment during the taxable year. For
16each taxable year that begins beginning on or after January 1,
172010 and begins prior to January 1, 2022, each taxpayer is
18entitled to a credit against the tax imposed by subsections
19(a) and (b) of Section 201 of this Act in an amount equal to
2010%, but in no event to exceed $1,200, of the gross wages paid
21by the taxpayer to a qualified veteran in the course of that
22veteran's sustained employment during the taxable year. For
23each taxable year that begins on or after January 1, 2022 and

 

 

HB4223- 2 -LRB102 21304 HLH 30416 b

1begins prior to January 1, 2027, each taxpayer is entitled to a
2credit against the tax imposed by subsections (a) and (b) of
3Section 201 of this Act in an amount equal to 10%, but in no
4event to exceed $1,200, of the gross wages paid by the taxpayer
5to a qualified veteran or the spouse of a qualified veteran in
6the course of that veteran's or spouse's sustained employment
7during the taxable year. For partners, shareholders of
8Subchapter S corporations, and owners of limited liability
9companies, if the liability company is treated as a
10partnership for purposes of federal and State income taxation,
11there shall be allowed a credit under this Section to be
12determined in accordance with the determination of income and
13distributive share of income under Sections 702 and 704 and
14Subchapter S of the Internal Revenue Code.
15    (b) For purposes of this Section:
16    "Active duty member of the United States Armed Forces"
17means a member of the Armed Services or Reserve Forces of the
18United States or a member of the Illinois National Guard who is
19called to active duty pursuant to an executive order of the
20President of the United States, an act of the Congress of the
21United States, or an order of the Governor.
22    "Qualified veteran" means an Illinois resident who is an
23active duty member of the United States Armed Forces or who
24meets the following criteria: (i) the person was a member of
25the Armed Forces of the United States, a member of the Illinois
26National Guard, or a member of any reserve component of the

 

 

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1Armed Forces of the United States; (ii) the person served on
2active duty in connection with Operation Desert Storm,
3Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
4the person has provided, to the taxpayer, documentation
5showing that he or she was honorably discharged; and (iv) the
6person was initially hired by the taxpayer on or after January
71, 2007.
8    "Sustained employment" means a period of employment that
9is not less than 185 days during the taxable year.
10    (c) In no event shall a credit under this Section reduce
11the taxpayer's liability to less than zero. If the amount of
12the credit exceeds the tax liability for the year, the excess
13may be carried forward and applied to the tax liability of the
145 taxable years following the excess credit year. The tax
15credit shall be applied to the earliest year for which there is
16a tax liability. If there are credits for more than one year
17that are available to offset a liability, the earlier credit
18shall be applied first.
19    (d) A taxpayer who claims a credit under this Section for a
20taxable year with respect to a veteran shall not be allowed a
21credit under Section 217.1 of this Act with respect to the same
22veteran for that taxable year.
23(Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.