Illinois General Assembly - Full Text of SB3882
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Full Text of SB3882  102nd General Assembly

SB3882sam001 102ND GENERAL ASSEMBLY

Sen. Laura Fine

Filed: 2/7/2022

 

 


 

 


 
10200SB3882sam001LRB102 25848 KTG 35991 a

1
AMENDMENT TO SENATE BILL 3882

2    AMENDMENT NO. ______. Amend Senate Bill 3882 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Recovery and Mental Health Tax Credit Act.
 
6    Section 5. Findings.
7    (a) In the interest of reducing stigma and increasing the
8available pool of potential employees, the General Assembly
9finds and declares that those residents of Illinois diagnosed
10with mental illness and substance use disorders should be
11eligible for and encouraged to seek gainful employment.
12    (b) The General Assembly finds and declares that minority
13communities in the State have been more negatively impacted in
14employment opportunities for minority residents diagnosed with
15mental illness and substance use disorders and should receive
16additional employment opportunities and incentives for

 

 

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1employing minority residents diagnosed with mental illness or
2substance use disorders.
3    (c) Due to the COVID-19 public health emergency, employers
4in the State of Illinois have suffered negative economic
5impacts, a loss in workforce, staffing difficulties, and have
6found it difficult to recruit new workers.
7    (d) In the interest of providing additional employment
8opportunities for those residents of Illinois diagnosed with
9mental illness or substance use disorders and expanding the
10pool of potential workers in the State, the General Assembly
11finds and declares that certain qualified employers who employ
12eligible individuals should be eligible for a tax credit.
 
13    Section 10. Definitions. As used in this Act:
14    "Department" means the Department of Human Services.
15    "Eligible individual" means an individual with a substance
16use disorder, as that term is defined under Section 1-10 of the
17Substance Use Disorder Act, or an individual with a mental
18illness as that term is defined under Section 1-129 of the
19Mental Health and Developmental Disabilities Code, who is in a
20state of wellness and recovery where there is an abatement of
21signs and symptoms that characterize active substance use
22disorder or mental illness and has demonstrated to the
23qualified employer's satisfaction, pursuant to regulations
24adopted by the Department, that he or she has completed a
25course of treatment or is currently in receipt of treatment

 

 

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1for such substance use disorder or mental illness. A relapse
2in an individual's state of wellness shall not make the
3individual ineligible, so long as the individual shows a
4continued commitment to recovery that aligns with an
5individual's relapse prevention plan, discharge plan, or
6recovery plan.
7    "Qualified employer" means an employer operating within
8the State that has received a certificate of tax credit from
9the Department after the Department has determined that the
10employer:
11        (1) provides a recovery supportive environment for
12    their employees evidenced by a formal working relationship
13    with a substance use disorder treatment provider or
14    facility or mental health provider or facility, each as
15    may be licensed or certified within the State of Illinois,
16    and providing reasonable accommodation to the employees to
17    address their substance use disorder or mental illness,
18    all at no cost or expense to the eligible individual; and
19        (2) satisfies all other criteria in this Section and
20    established by the Department to participate in the
21    recovery tax program created hereunder.
22     "Taxpayer" means any individual, corporation,
23partnership, trust, or other entity subject to the Illinois
24income tax. For the purposes of this Act, 2 individuals filing
25a joint return shall be considered one taxpayer.
 

 

 

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1    Section 15. Authorization of tax credit program for
2individuals in recovery from substance use disorders or mental
3illness.
4    (a) For taxable years beginning on or after January 1,
52023, the Department is authorized to and shall establish and
6administer a recovery tax credit program to provide tax
7incentives to qualified employers who employ eligible
8individuals in recovery from a substance use disorder or
9mental illness in part-time and full-time positions within
10Illinois. The Department shall award the tax credit by
11issuance of a certificate of tax credit to the qualified
12employer, who will present the certificate of tax credit to
13the Department of Revenue by attaching the certificate to its
14tax return, as a credit against the qualified employer's tax
15obligation in accordance with this Act. The Department shall
16maintain an electronic listing of the certificates issued by
17which the Department of Revenue may confirm the eligibility of
18qualified employers for the tax credit.
19    (b) To be a qualified employer, an employer must apply
20annually to the Department to claim a credit based upon
21eligible individuals employed during the preceding calendar
22year, using the forms prescribed by the Department. To be
23approved for a credit under this Act, the employer must:
24        (1) agree to provide to the Department the information
25    necessary to demonstrate that the employer has satisfied
26    program eligibility requirements and provided all

 

 

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1    information requested or needed by the Department,
2    including the number of hours worked by the eligible
3    individual and other information necessary for the
4    Department to calculate the amount of credit permitted;
5    and
6        (2) agree to provide names, employer identification
7    numbers, amounts that the employer may claim, and other
8    information necessary for the Department to calculate any
9    tax credit.
10    (c) To be an eligible individual, the individual must be
11diagnosed with or have been diagnosed with a substance use
12disorder or mental illness. Disclosure by the eligible
13individual of his or her mental illness or substance use
14disorder shall be completely voluntary and his or her health
15information may not be shared or disclosed under this Act
16without the eligible individual's express written consent. The
17eligible individual must have been employed by the qualified
18employer in the State for a minimum of 500 hours during the
19applicable calendar year and the tax credit may only begin on
20the date the eligible individual is hired by the qualified
21employer and ending on December 31 of that calendar year or the
22date that the eligible individual's employment with the
23qualified employer ends, whichever occurs first. Only one tax
24credit may be awarded for any eligible individual while
25employed by the same or related qualified employer. The hours
26of employment of 2 or more eligible individuals may not be

 

 

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1aggregated to reach the minimum number of hours. If an
2eligible individual has worked in excess of 500 hours between
3the date of hiring and December 31 of that year, a qualified
4employer can elect to compute and claim a credit for such
5eligible individual in that year based on the hours worked by
6December 31. Alternatively, the qualified employer may elect
7to include such individual in the computation of the credit in
8the year immediately succeeding the year in which the eligible
9individual was hired. In that case, the credit shall be
10computed on the basis of all hours worked by the eligible
11individual from the date of hire to the earlier of the last day
12of employment or December 31 of the succeeding year.
13    (d) The aggregate amount of all credits the Department may
14award under this Act in any calendar year may not exceed
15$2,000,000.
16    (e) If the qualified employer's taxable year is a calendar
17year, the employer shall be entitled to claim the credit as
18shown on the certificate of tax credit on the calendar year
19return for which the certificate of tax credit was issued. If
20the certified employer's taxable year is a fiscal year, the
21qualified employer shall be entitled to claim the credit as
22shown on the certificate of tax credit on the return for the
23fiscal year that includes the last day of the calendar year
24covered by the certificate of tax credit. The tax credit may
25not be carried forward.
26    (f) If Department criteria and all other requirements are

 

 

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1met, a qualified employer shall be entitled to a tax credit
2equal to the product of $1 and the number of hours worked by
3each eligible individual during the eligible individual's
4period of employment with the qualified employer. The tax
5credit awarded hereunder may not exceed $2,000 per eligible
6individual employed by the qualified employer in the State. In
7determining the amount of tax credit that any qualified
8employer may claim, the Department shall review all claims
9submitted for credit by all employers and, to the extent that
10the total amount claimed by employers exceeds the amount
11allocated for this program in that calendar year, shall issue
12tax credits on a pro rata basis corresponding to each
13qualified employer's share of the total amount claimed.
14    (g) No tax credit awarded under this Act may reduce a
15qualified employer's tax obligation to less than zero.
16    (h) The Department of Revenue shall review the certificate
17issued to the qualified employer and submitted with its tax
18return and, if approved, accept and apply the tax credit
19toward the qualified employer's income tax obligation. A
20taxpayer that is a qualified employer that has received a
21certificate of tax credit from the Department shall be allowed
22a credit against the tax imposed equal to the amount shown on
23such certificate of tax credit. For partners, shareholders of
24Subchapter S corporations, and owners of limited liability
25companies, if the liability company is treated as a
26partnership for purposes of federal and State income taxation,

 

 

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1there shall be allowed a credit under this subsection (f) to be
2determined in accordance with the determination of income and
3distributive share of income under Sections 702 and 704 and
4Subchapter S of the Internal Revenue Code. In carrying out
5this Act, no patient-specific information shall be shared or
6disclosed. Any individual or patient-specific information
7collected by the Department or the Department of Revenue shall
8not be subject to public disclosure or Freedom of Information
9Act requests.
10    (i) The credit under this Act is exempt from the
11provisions of Section 250 of the Illinois Income Tax Act.
 
12    Section 20. Advisory Council on Mental Illness and
13Substance Use Disorder Impacts on Employment Opportunities
14within Minority Communities. The Secretary of the Department
15shall appoint the Advisory Council on Mental Illness and
16Substance Use Disorder Impacts on Employment Opportunities
17within Minority Communities, to be composed of 15 members,
18which shall include a balanced representation of recipients,
19services providers, employers, local governmental units,
20community and welfare advocacy groups, academia, and the
21general public. The Advisory Council shall advise the
22Department regarding all aspects of employment impacts
23resulting from mental illnesses and substance use disorders
24within minority communities, tax credits, outreach, marketing,
25and education about the tax credit and employment

 

 

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1opportunities, and other areas as deemed appropriate by the
2Secretary. In appointing the first Council, the Secretary
3shall name 8 members to terms of 2 years and 7 members to serve
4terms of 4 years, all of whom shall be appointed within 6
5months of the effective date of this Act. All members
6appointed thereafter shall serve terms of 4 years. Members
7shall serve without compensation other than reimbursement of
8expenses actually incurred in the performance of their
9official duties. At its first meeting, the Advisory Council
10shall select a chair from among its members. The Advisory
11Council shall meet at least quarterly and at other times at the
12call of the chair.
 
13    Section 25. Powers. The Department shall adopt rules for
14the administration of this Act. The Department may enter into
15an intergovernmental agreement with the Department of Revenue
16for the administration of this Act.
 
17    Section 30. The Illinois Income Tax Act is amended by
18adding Section 232 as follows:
 
19    (35 ILCS 5/232 new)
20    Sec. 232. Recovery and Mental Health Tax Credit Act. A
21taxpayer who has been awarded a credit under the Recovery and
22Mental Health Tax Credit Act is entitled to a credit against
23the tax imposed by subsections (a) and (b) of Section 201 as

 

 

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1provided in that Act. This Section is exempt from the
2provisions of Section 250.".