Full Text of SB1659 98th General Assembly
SB1659 98TH GENERAL ASSEMBLY
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
Introduced 2/13/2013, by Sen. Patricia Van Pelt
SYNOPSIS AS INTRODUCED:
35 ILCS 5/216
35 ILCS 10/5-47 new
Amends the Illinois Income Tax Act. In a Section concerning a credit
for wages paid to ex-felons, removes a provision providing that the credit
may not exceed $600 for each qualified ex-offender. Provides that the
credit is exempt from the Act's automatic sunset. Amends the Economic
Development for a Growing Economy Tax Credit Act. Provides that each
Agreement entered into on or after the effective date of the amendatory Act
shall contain a provision stating that the Applicant shall establish a goal
of hiring qualified ex-offenders so that no less than 10% of the jobs
created or retained under the Agreement are filled by qualified
ex-offenders. Effective immediately.
|FISCAL NOTE ACT MAY APPLY|
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Illinois Income Tax Act is amended by
changing Section 216 as follows:
(35 ILCS 5/216)
Credit for wages paid to ex-felons.
(a) For each taxable year beginning on or after January 1,
2007, each taxpayer is entitled to a credit against the tax
imposed by subsections (a) and (b) of Section 201 of this Act
in an amount equal to 5% of qualified wages paid by the
taxpayer during the taxable year to one or more Illinois
residents who are qualified ex-offenders.
The total credit
allowed to a taxpayer with respect to each qualified
ex-offender may not exceed $600 for all taxable years.
partners, shareholders of Subchapter S corporations, and
owners of limited liability companies, if the liability company
is treated as a partnership for purposes of federal and State
income taxation, there shall be allowed a credit under this
Section to be determined 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.
(b) For purposes of this Section, "qualified wages":
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(1) includes only wages that are subject to federal
unemployment tax under Section 3306 of the Internal Revenue
Code, without regard to any dollar limitation contained in
(2) does not include any amounts paid or incurred by an
employer for any period to any qualified ex-offender for
whom the employer receives federally funded payments for
on-the-job training of that qualified ex-offender for that
(3) includes only wages attributable to service
rendered during the one-year period beginning with the day
the qualified ex-offender begins work for the employer.
If the taxpayer has received any payment from a program
established under Section 482(e)(1) of the federal Social
Security Act with respect to a qualified ex-offender, then, for
purposes of calculating the credit under this Section, the
amount of the qualified wages paid to that qualified
ex-offender must be reduced by the amount of the payment.
(c) For purposes of this Section, "qualified ex-offender"
means any person who:
(1) is an eligible offender, as defined under Section
5-5.5-5 of the Unified Code of Corrections;
(2) was sentenced to a period of incarceration in an
Illinois adult correctional center; and
(3) was hired by the taxpayer within one year after
being released from an Illinois adult correctional center.
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(d) 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.
(e) This Section is exempt from the provisions of Section
(Source: P.A. 94-1067, eff. 8-1-06.)
The Economic Development for a Growing Economy
Tax Credit Act is amended by adding Section 5-47 as follows:
(35 ILCS 10/5-47 new)
Each Agreement entered
into on or after the effective date of this amendatory Act of
the 98th General Assembly shall contain a provision stating
that the Applicant shall establish a goal of hiring qualified
ex-offenders so that no less than 10% of the jobs created or
retained under the Agreement are filled by qualified
For the purposes of this Section, "qualified ex-offender"
means any person who (1) is an eligible offender, as defined
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under Section 5-5.5-5 of the Unified Code of Corrections, and
(2) was sentenced to a period of incarceration in an Illinois
adult correctional center.
This Act takes effect upon