SB2523 100TH GENERAL ASSEMBLY

LRB100 16624 HLH 31760 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2523

Introduced 2/6/2018, by Sen. Steve Stadelman

SYNOPSIS AS INTRODUCED:

35 ILCS 5/227 new

Amends the Illinois Income Tax Act. Provides that each taxpayer who is employed by a business that would qualify as a federal HUBZone small business concern but for the fact that fewer than 35% of its employees reside within a federal HUBZone is eligible for an income tax credit in the amount of $500 if the employee first moves into a federal HUBZone during the taxable year. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 227 as follows:

(35 ILCS 5/227 new)

Sec. 227. HUBZone employee credit.

(a) For taxable years beginning on or after January 1, 2018, each taxpayer who is employed by a business that would qualify as a federal HUBZone small business concern but for the fact that fewer than 35% of its employees reside within a federal HUBZone is eligible for a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act in the amount of $500 if the employee first moves into a federal HUBZone during the taxable year.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the 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 tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) As used in this Section, "federal HUBZone" means an area designated as a HUBZone under the federal Historically Underutilized Business Zones program.

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

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