HB2466 103RD GENERAL ASSEMBLY

LRB103 29667 HLH 56069 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2466

Introduced 2/15/2023, by Rep. Suzanne M. Ness

SYNOPSIS AS INTRODUCED:

35 ILCS 5/234 new

Amends the Illinois Income Tax Act. Provides that a taxpayer who employs a person with a developmental disability or a severe mental illness, as certified by the Department of Human Services, during the taxable year is entitled to an income tax credit in an amount equal to 25% of the wages paid by the taxpayer to the person with a developmental disability or severe mental illness, but not to exceed $6,000 in wages paid during the taxable year to any single qualified employee. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 234 as follows:

(35 ILCS 5/234 new)

Sec. 234. Credit for employment of persons with developmental disabilities or severe mental illness.

(a) For taxable years beginning on or after January 1, 2024, a taxpayer who employs a person with a developmental disability or a severe mental illness, as certified by the Department of Human Services, during the taxable year is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 in an amount equal to 25% of the wages paid by the taxpayer to the person with a developmental disability or severe mental illness, but not to exceed $6,000 in wages paid during the taxable year to any single qualified employee.

(b) The taxpayer shall apply, in the form and manner required by the Department of Human Services, for a determination of whether an employee meets the requirements under subsection (a). If an employee meets the requirements, a letter of certification containing the names of the taxpayer and the qualifying employee shall be issued by the Department of Human Services to the taxpayer. The Department of Human Services shall adopt rules for the certification of employees under this Section.

(c) The tax credit may not reduce the taxpayer's liability to less than zero. If the amount of the tax credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit must be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, then the earlier credit must be applied first.

(d) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(e) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.