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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Income Tax Act is amended by |
5 | | changing Sections 223 and 704A as follows: |
6 | | (35 ILCS 5/223) |
7 | | Sec. 223. Hospital credit. |
8 | | (a) For tax years ending on or after December 31, 2012, a |
9 | | taxpayer that is the owner of a hospital licensed under the |
10 | | Hospital Licensing Act, but not including an organization that |
11 | | is exempt from federal income taxes under the Internal Revenue |
12 | | Code, is entitled to a credit against the taxes imposed under |
13 | | subsections (a) and (b) of Section 201 of this Act or the |
14 | | payments due under Section 704A of this Act in an amount equal |
15 | | to the lesser of the amount of real property taxes paid during |
16 | | the tax year on real property used for hospital purposes during |
17 | | the prior tax year or the cost of free or discounted services |
18 | | provided during the tax year pursuant to the hospital's |
19 | | charitable financial assistance policy, measured at cost. |
20 | | (b) If the taxpayer is a partnership or Subchapter S |
21 | | corporation, the credit is allowed to the partners or |
22 | | shareholders in accordance with the determination of income and |
23 | | distributive share of income under Sections 702 and 704 and |
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1 | | Subchapter S of the Internal Revenue Code. A transfer of this |
2 | | credit may be made by the taxpayer earning the credit within |
3 | | one year after the credit is earned in accordance with rules |
4 | | adopted by the Department. The Department shall prescribe rules |
5 | | to enforce and administer provisions of this Section. If the |
6 | | amount of the credit exceeds the tax liability for the year, |
7 | | then the excess credit may be carried forward and applied to |
8 | | the tax liability of the 5 taxable years following the excess |
9 | | credit year. The credit shall be applied to the earliest year |
10 | | for which there is a tax liability. If there are credits from |
11 | | more than one tax year that are available to offset a |
12 | | liability, the earlier credit shall be applied first. In no |
13 | | event shall a credit under this Section reduce the taxpayer's |
14 | | liability to less than zero.
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15 | | (Source: P.A. 97-688, eff. 6-14-12.) |
16 | | (35 ILCS 5/704A) |
17 | | Sec. 704A. Employer's return and payment of tax withheld. |
18 | | (a) In general, every employer who deducts and withholds or |
19 | | is required to deduct and withhold tax under this Act on or |
20 | | after January 1, 2008 shall make those payments and returns as |
21 | | provided in this Section. |
22 | | (b) Returns. Every employer shall, in the form and manner |
23 | | required by the Department, make returns with respect to taxes |
24 | | withheld or required to be withheld under this Article 7 for |
25 | | each quarter beginning on or after January 1, 2008, on or |
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1 | | before the last day of the first month following the close of |
2 | | that quarter. |
3 | | (c) Payments. With respect to amounts withheld or required |
4 | | to be withheld on or after January 1, 2008: |
5 | | (1) Semi-weekly payments. For each calendar year, each |
6 | | employer who withheld or was required to withhold more than |
7 | | $12,000 during the one-year period ending on June 30 of the |
8 | | immediately preceding calendar year, payment must be made: |
9 | | (A) on or before each Friday of the calendar year, |
10 | | for taxes withheld or required to be withheld on the |
11 | | immediately preceding Saturday, Sunday, Monday, or |
12 | | Tuesday; |
13 | | (B) on or before each Wednesday of the calendar |
14 | | year, for taxes withheld or required to be withheld on |
15 | | the immediately preceding Wednesday, Thursday, or |
16 | | Friday. |
17 | | Beginning with calendar year 2011, payments made under |
18 | | this paragraph (1) of subsection (c) must be made by |
19 | | electronic funds transfer. |
20 | | (2) Semi-weekly payments. Any employer who withholds |
21 | | or is required to withhold more than $12,000 in any quarter |
22 | | of a calendar year is required to make payments on the |
23 | | dates set forth under item (1) of this subsection (c) for |
24 | | each remaining quarter of that calendar year and for the |
25 | | subsequent calendar year.
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26 | | (3) Monthly payments. Each employer, other than an |
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1 | | employer described in items (1) or (2) of this subsection, |
2 | | shall pay to the Department, on or before the 15th day of |
3 | | each month the taxes withheld or required to be withheld |
4 | | during the immediately preceding month. |
5 | | (4) Payments with returns. Each employer shall pay to |
6 | | the Department, on or before the due date for each return |
7 | | required to be filed under this Section, any tax withheld |
8 | | or required to be withheld during the period for which the |
9 | | return is due and not previously paid to the Department. |
10 | | (d) Regulatory authority. The Department may, by rule: |
11 | | (1) Permit employers, in lieu of the requirements of |
12 | | subsections (b) and (c), to file annual returns due on or |
13 | | before January 31 of the year for taxes withheld or |
14 | | required to be withheld during the previous calendar year |
15 | | and, if the aggregate amounts required to be withheld by |
16 | | the employer under this Article 7 (other than amounts |
17 | | required to be withheld under Section 709.5) do not exceed |
18 | | $1,000 for the previous calendar year, to pay the taxes |
19 | | required to be shown on each such return no later than the |
20 | | due date for such return. |
21 | | (2) Provide that any payment required to be made under |
22 | | subsection (c)(1) or (c)(2) is deemed to be timely to the |
23 | | extent paid by electronic funds transfer on or before the |
24 | | due date for deposit of federal income taxes withheld from, |
25 | | or federal employment taxes due with respect to, the wages |
26 | | from which the Illinois taxes were withheld. |
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1 | | (3) Designate one or more depositories to which payment |
2 | | of taxes required to be withheld under this Article 7 must |
3 | | be paid by some or all employers. |
4 | | (4) Increase the threshold dollar amounts at which |
5 | | employers are required to make semi-weekly payments under |
6 | | subsection (c)(1) or (c)(2). |
7 | | (e) Annual return and payment. Every employer who deducts |
8 | | and withholds or is required to deduct and withhold tax from a |
9 | | person engaged in domestic service employment, as that term is |
10 | | defined in Section 3510 of the Internal Revenue Code, may |
11 | | comply with the requirements of this Section with respect to |
12 | | such employees by filing an annual return and paying the taxes |
13 | | required to be deducted and withheld on or before the 15th day |
14 | | of the fourth month following the close of the employer's |
15 | | taxable year. The Department may allow the employer's return to |
16 | | be submitted with the employer's individual income tax return |
17 | | or to be submitted with a return due from the employer under |
18 | | Section 1400.2 of the Unemployment Insurance Act. |
19 | | (f) Magnetic media and electronic filing. Any W-2 Form |
20 | | that, under the Internal Revenue Code and regulations |
21 | | promulgated thereunder, is required to be submitted to the |
22 | | Internal Revenue Service on magnetic media or electronically |
23 | | must also be submitted to the Department on magnetic media or |
24 | | electronically for Illinois purposes, if required by the |
25 | | Department. |
26 | | (g) For amounts deducted or withheld after December 31, |
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1 | | 2009, a taxpayer who makes an election under subsection (f) of |
2 | | Section 5-15 of the Economic Development for a Growing Economy |
3 | | Tax Credit Act for a taxable year shall be allowed a credit |
4 | | against payments due under this Section for amounts withheld |
5 | | during the first calendar year beginning after the end of that |
6 | | taxable year equal to the amount of the credit for the |
7 | | incremental income tax attributable to full-time employees of |
8 | | the taxpayer awarded to the taxpayer by the Department of |
9 | | Commerce and Economic Opportunity under the Economic |
10 | | Development for a Growing Economy Tax Credit Act for the |
11 | | taxable year and credits not previously claimed and allowed to |
12 | | be carried forward under Section 211(4) of this Act as provided |
13 | | in subsection (f) of Section 5-15 of the Economic Development |
14 | | for a Growing Economy Tax Credit Act. The credit or credits may |
15 | | not reduce the taxpayer's obligation for any payment due under |
16 | | this Section to less than zero. If the amount of the credit or |
17 | | credits exceeds the total payments due under this Section with |
18 | | respect to amounts withheld during the calendar year, the |
19 | | excess may be carried forward and applied against the |
20 | | taxpayer's liability under this Section in the succeeding |
21 | | calendar years as allowed to be carried forward under paragraph |
22 | | (4) of Section 211 of this Act. The credit or credits shall be |
23 | | applied to the earliest year for which there is a tax |
24 | | liability. If there are credits from more than one taxable year |
25 | | that are available to offset a liability, the earlier credit |
26 | | shall be applied first. Each employer who deducts and withholds |
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1 | | or is required to deduct and withhold tax under this Act and |
2 | | who retains income tax withholdings under subsection (f) of |
3 | | Section 5-15 of the Economic Development for a Growing Economy |
4 | | Tax Credit Act must make a return with respect to such taxes |
5 | | and retained amounts in the form and manner that the |
6 | | Department, by rule, requires and pay to the Department or to a |
7 | | depositary designated by the Department those withheld taxes |
8 | | not retained by the taxpayer. For purposes of this subsection |
9 | | (g), the term taxpayer shall include taxpayer and members of |
10 | | the taxpayer's unitary business group as defined under |
11 | | paragraph (27) of subsection (a) of Section 1501 of this Act. |
12 | | This Section is exempt from the provisions of Section 250 of |
13 | | this Act. |
14 | | (h) An employer may claim a credit against payments due |
15 | | under this Section for amounts withheld during the first |
16 | | calendar year ending after the date on which a tax credit |
17 | | certificate was issued under Section 35 of the Small Business |
18 | | Job Creation Tax Credit Act. The credit shall be equal to the |
19 | | amount shown on the certificate, but may not reduce the |
20 | | taxpayer's obligation for any payment due under this Section to |
21 | | less than zero. If the amount of the credit exceeds the total |
22 | | payments due under this Section with respect to amounts |
23 | | withheld during the calendar year, the excess may be carried |
24 | | forward and applied against the taxpayer's liability under this |
25 | | Section in the 5 succeeding calendar years. The credit shall be |
26 | | applied to the earliest year for which there is a tax |
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1 | | liability. If there are credits from more than one calendar |
2 | | year that are available to offset a liability, the earlier |
3 | | credit shall be applied first. This Section is exempt from the |
4 | | provisions of Section 250 of this Act. |
5 | | (i) A taxpayer may claim a credit against payments due |
6 | | under this Section for amounts withheld during the first |
7 | | calendar year ending after the date on which an Illinois income |
8 | | tax return is filed by the taxpayer as required by Section 502 |
9 | | of this Act on which a credit was claimed pursuant to Section |
10 | | 223 of this Act. The credit shall be equal to the amount shown |
11 | | on the taxpayer's Illinois income tax return less any amounts |
12 | | claimed as a credit on the return to offset the taxes imposed |
13 | | on the taxpayer under Section (a) and (b) of Section 201 of |
14 | | this Act, but may not reduce the taxpayer's obligation for any |
15 | | payment due under this Section to less than zero. If the amount |
16 | | of the credit exceeds the total payments due under this Section |
17 | | with respect to amounts withheld during the calendar year, the |
18 | | excess may be carried forward and applied against the |
19 | | taxpayer's liability under this Section in the 5 succeeding |
20 | | calendar years. The credit shall be applied to the earliest |
21 | | year for which there is a tax liability. If there are credits |
22 | | from more than one calendar year that are available to offset a |
23 | | liability, the earlier credit shall be applied first. For |
24 | | purposes of this subsection (i), the term taxpayer shall |
25 | | include taxpayer and members of the taxpayer's unitary business |
26 | | group as defined under paragraph (27) of subsection (a) of |
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1 | | Section 1501 of this Act. This Section is exempt from the |
2 | | provisions of Section 250 of this Act. |
3 | | (Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10; |
4 | | 96-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff. |
5 | | 8-12-11; 97-507, eff. 8-23-11.)
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6 | | Section 99. Effective date. This Act takes effect upon |
7 | | becoming law. |