Illinois General Assembly - Full Text of SB0139
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Full Text of SB0139  103rd General Assembly



SB0139 EngrossedLRB103 25033 HLH 51367 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 231, as added by Public Act
6101-207, as follows:
7    (35 ILCS 5/231)
8    Sec. 231. 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
11carries out programs registered under the federal National
12Apprenticeship Act; or (iii) another public or private
13provider of a program of training services, which may include
14a joint labor-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
18credit against the tax imposed by subsections (a) and (b) of
19Section 201 of the Illinois Income Tax Act for qualified
20education expenses incurred on behalf of a qualifying
21apprentice. The credit shall be equal to 100% of the qualified
22education expenses, but in no event may the total credit
23amount awarded to a single taxpayer in a single taxable year
24exceed $3,500 per qualifying apprentice. A taxpayer shall be
25entitled to an additional $1,500 credit against the tax
26imposed by subsections (a) and (b) of Section 201 of the



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



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1a single employer.
2    (d) The Department, in addition to those powers granted
3under the Civil Administrative Code of Illinois, is granted
4and shall have all the powers necessary or convenient to carry
5out and effectuate the purposes and provisions of this
6Section, including, but not limited to, power and authority
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
13    the Internet. The Department shall require that
14    applications 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,
8    and consent, subject to the provisions of any agreement
9    with another party, to the modification or restructuring
10    of any 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,
26    keep 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
9    bankruptcy, default, foreclosure, or noncompliance with
10    the terms and conditions of financial assistance or
11    participation required under this Section or any agreement
12    entered into under this Section, including the power to
13    sell, dispose of, lease, or rent, upon terms and
14    conditions determined by the Department to be appropriate,
15    real or personal property that the Department may recover
16    as a result of these 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
4credit awarded under this Section to another person or
6    (g) The employer shall provide the Department such
7information as the Department may require, including but not
8limited to: (i) the name, age, and taxpayer identification
9number of each qualifying apprentice employed by the taxpayer
10during the taxable year; (ii) the amount of qualified
11education expenses incurred with respect to each qualifying
12apprentice; and (iii) the name of the school at which the
13qualifying apprentice is enrolled and the qualified education
14expenses are incurred.
15    (h) On or before July 1 of each year, the Department shall
16report to the Governor and the General Assembly on the tax
17credit certificates awarded under this Section for the prior
18calendar year. The report must include:
19        (1) the name of each employer awarded or allocated a
20    credit;
21        (2) the number of qualifying apprentices for whom the
22    employer has incurred qualified education expenses;
23        (3) the North American Industry Classification System
24    (NAICS) code applicable to each employer awarded or
25    allocated a credit;
26        (4) the amount of the credit awarded or allocated to



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1    each employer;
2        (5) the total number of employers awarded or allocated
3    a credit;
4        (6) the total number of qualifying apprentices for
5    whom employers receiving credits under this Section
6    incurred qualified education expenses; and
7        (7) the average cost to the employer of all
8    apprenticeships receiving credits under this Section.
9(Source: P.A. 101-207, eff. 8-2-19; 102-558, eff. 8-20-21.)
10    Section 99. Effective date. This Act takes effect upon
11becoming law.