Illinois General Assembly - Full Text of SB4187
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Full Text of SB4187  102nd General Assembly

SB4187 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB4187

 

Introduced 3/4/2022, by Sen. Terri Bryant, Sally J. Turner, Dan McConchie, Steve McClure and Win Stoller

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/210
35 ILCS 5/210.5

    Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2022, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately.


LRB102 26488 HLH 37002 b

 

 

A BILL FOR

 

SB4187LRB102 26488 HLH 37002 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 Sections 210 and 210.5 as follows:
 
6    (35 ILCS 5/210)
7    Sec. 210. Dependent care assistance program tax credit.
8    (a) Beginning with tax years ending on or after June 30,
91995, each taxpayer who is primarily engaged in manufacturing
10is entitled to a credit against the tax imposed by subsections
11(a) and (b) of Section 201 in an amount equal to 5% of the
12amount of expenditures by the taxpayer in the tax year for
13which the credit is claimed, reported pursuant to Section
14129(d)(7) of the Internal Revenue Code, to provide in the
15Illinois premises of the taxpayer's workplace an on-site
16facility dependent care assistance program under Section 129
17of the Internal Revenue Code.
18    (b) If the amount of credit exceeds the tax liability for
19the year, the excess may be carried forward and applied to the
20tax liability of the 2 taxable years following the excess
21credit year. The credit shall be applied to the earliest year
22for which there is a tax liability. If there are credits from
23more than one tax year that are available to offset a

 

 

SB4187- 2 -LRB102 26488 HLH 37002 b

1liability, the earlier credit shall be applied first.
2    (c) A taxpayer claiming the credit provided by this
3Section shall maintain and record such information as the
4Department may require by regulation regarding the dependent
5care assistance program for which credit is claimed. When
6claiming the credit provided by this Section, the taxpayer
7shall provide such information regarding the taxpayer's
8provision of a dependent care assistance program under Section
9129 of the Internal Revenue Code.
10    (d) If a taxpayer claims a credit under this Section for a
11taxable year, then the taxpayer may not also claim a credit
12under Section 210.5 for the same taxable year.
13(Source: P.A. 88-505.)
 
14    (35 ILCS 5/210.5)
15    Sec. 210.5. Tax credit for employee child care.
16    (a) Each corporate taxpayer is entitled to a credit
17against the tax imposed by subsections (a) and (b) of Section
18201 as provided in this Section. For taxable years ending on or
19after December 31, 2000 and on or before December 31, 2004, the
20amount of the credit shall be equal to: (1) 30% of the start-up
21costs expended by the corporate taxpayer to provide a child
22care facility for the children of its employees; and (2) 5% of
23the annual amount paid by the corporate taxpayer in providing
24the child care facility for the children of its employees. For
25taxable years ending after December 31, 2004 and prior to

 

 

SB4187- 3 -LRB102 26488 HLH 37002 b

1December 31, 2007, the amount of the credit shall be equal to
25% of the annual amount paid by the corporate taxpayer in
3providing the child care facility for the children of its
4employees. For taxable years ending on or after December 31,
52007 and before December 31, 2022, the amount of the credit
6shall be equal to: (1) 30% of the start-up costs expended by
7the corporate taxpayer to provide a child care facility for
8the children of its employees; and (2) 5% of the annual amount
9paid by the corporate taxpayer in providing the child care
10facility for the children of its employees. For taxable years
11ending on or after December 31, 2022, the amount of the credit
12shall be equal to: (1) 50% of the start-up costs expended by
13the corporate taxpayer to provide a child care facility for
14the children of its employees; and (2) 20% of the annual amount
15paid by the corporate taxpayer to (i) provide an on-site child
16care facility for the children of its employees, (ii) provide
17child care offsite for the children of its employees, or (iii)
18a combination of (i) and (ii). This amendatory Act of the 102nd
19General Assembly is not intended to make any substantive
20changes with respect to taxable years ending prior to December
2131, 2022. in an amount equal to (i) for taxable years ending on
22or after December 31, 2000 and on or before December 31, 2004
23and for taxable years ending on or after December 31, 2007, 30%
24of the start-up costs expended by the corporate taxpayer to
25provide a child care facility for the children of its
26employees and (ii) for taxable years ending on or after

 

 

SB4187- 4 -LRB102 26488 HLH 37002 b

1December 31, 2000, 5% of the annual amount paid by the
2corporate taxpayer in providing the child care facility for
3the children of its employees. The provisions of Section 250
4do not apply to the credits allowed under this Section. If the
55% credit authorized under item (ii) of this Section
6subsection is claimed, the 5% credit authorized under Section
7210 cannot also be claimed.
8    To receive the tax credit under this Section a corporate
9taxpayer may do one or more of the following: it may either
10independently provide and operate a child care facility for
11the children of its employees; or it may join in a partnership
12with one or more other corporations to jointly provide and
13operate a child care facility for the children of employees of
14the corporations in the partnership; or it may coordinate with
15an independent child care facility to provide care for the
16children of employees.
17    (b) The tax credit may not reduce the taxpayer's liability
18to less than zero. If the amount of the tax credit exceeds the
19tax liability for the year, the excess may be carried forward
20and applied to the tax liability of the 5 taxable years
21following the excess credit year. The credit must be applied
22to the earliest year for which there is a tax liability. If
23there are credits from more than one tax year that are
24available to offset a liability, then the earlier credit must
25be applied first.
26    (c) As used in this Section, "start-up costs" means

 

 

SB4187- 5 -LRB102 26488 HLH 37002 b

1planning, site-preparation, construction, renovation, or
2acquisition of a child care facility. As used in this Section,
3"child care facility" is limited to a child care facility
4located in Illinois.
5    (d) A corporate taxpayer claiming the credit provided by
6this Section shall maintain and record such information as the
7Department may require by rule regarding the child care
8facility for which the credit is claimed.
9(Source: P.A. 95-648, eff. 10-11-07.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.