Illinois General Assembly - Full Text of HB4965
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Full Text of HB4965  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/27/2022, by Rep. Dave Vella


35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for businesses with an average of 100 or fewer full-time employees during the taxable year in an amount equal to 50% of the costs incurred by the business in offering a paid family leave program to all of its full-time employees.

LRB102 24236 HLH 33467 b





HB4965LRB102 24236 HLH 33467 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
5adding Section 232 as follows:
6    (35 ILCS 5/232 new)
7    Sec. 232. Credit for paid family leave.
8    (a) For taxable years beginning on or after January 1,
92023, each business with an average of 100 or fewer full-time
10employees during the taxable year is entitled to a credit
11against the taxes imposed by subsections (a) and (b) of
12Section 201 in an amount equal to 50% of the costs incurred by
13the business in offering a paid family leave program to all of
14its full-time employees. The business shall submit
15documentation of the paid family leave program in the form and
16manner required by the Department by rule.
17    (b) For partners, shareholders of Subchapter S
18corporations, and owners of limited liability companies, if
19the liability company is treated as a partnership for purposes
20of federal and State income taxation, there is allowed a
21credit under this Section to be determined in accordance with
22the determination of income and distributive share of income
23under Sections 702 and 704 and Subchapter S of the Internal



HB4965- 2 -LRB102 24236 HLH 33467 b

1Revenue Code.
2    (c) In no event shall a credit under this Section reduce
3the taxpayer's liability to less than zero. If the amount of
4the credit exceeds the tax liability for the year, the excess
5may be carried forward and applied to the tax liability of the
65 taxable years following the excess credit year. The tax
7credit shall be applied to the earliest year for which there is
8a tax liability. If there are credits for more than one year
9that are available to offset a liability, the earlier credit
10shall be applied first.
11    (d) As used in this Section, "full-time employee" means an
12individual who is employed for consideration for at least 35
13hours each week or who renders any other standard of service
14generally accepted by industry custom or practice as full-time
16    (e) This Section is exempt from the provisions of Section