Full Text of SB3882 102nd General Assembly
SB3882sam001 102ND GENERAL ASSEMBLY | Sen. Laura Fine Filed: 2/7/2022
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| 1 | | AMENDMENT TO SENATE BILL 3882
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3882 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Recovery and Mental Health Tax Credit Act. | 6 | | Section 5. Findings. | 7 | | (a) In the interest of reducing stigma and increasing the
| 8 | | available pool of potential employees, the General Assembly
| 9 | | finds and declares that those residents of Illinois diagnosed
| 10 | | with mental illness and substance use disorders should be
| 11 | | eligible for and encouraged to seek gainful employment.
| 12 | | (b) The General Assembly finds and declares that minority
| 13 | | communities in the State have been more negatively impacted in
| 14 | | employment opportunities for minority residents diagnosed with
| 15 | | mental illness and substance use disorders and should receive
| 16 | | additional employment opportunities and incentives for
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| 1 | | employing minority residents diagnosed with mental illness or
| 2 | | substance use disorders.
| 3 | | (c) Due to the COVID-19 public health emergency, employers
| 4 | | in the State of Illinois have suffered negative economic
| 5 | | impacts, a loss in workforce, staffing difficulties, and have
| 6 | | found it difficult to recruit new workers.
| 7 | | (d) In the interest of providing additional employment
| 8 | | opportunities for those residents of Illinois diagnosed with
| 9 | | mental illness or substance use disorders and expanding the
| 10 | | pool of potential workers in the State, the General Assembly
| 11 | | finds and declares that certain qualified employers who employ
| 12 | | eligible 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
| 16 | | use disorder, as that term is defined under Section 1-10 of the
| 17 | | Substance Use Disorder Act, or an individual with a mental
| 18 | | illness as that term is defined under Section 1-129 of the
| 19 | | Mental Health and Developmental Disabilities Code, who is in a
| 20 | | state of wellness and recovery where there is an abatement of
| 21 | | signs and symptoms that characterize active substance use
| 22 | | disorder or mental illness and has demonstrated to the
| 23 | | qualified employer's satisfaction, pursuant to regulations
| 24 | | adopted by the Department, that he or she has completed a
| 25 | | course of treatment or is currently in receipt of treatment
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| 1 | | for such substance use disorder or mental illness. A relapse
| 2 | | in an individual's state of wellness shall not make the
| 3 | | individual ineligible, so long as the individual shows a
| 4 | | continued commitment to recovery that aligns with an
| 5 | | individual's relapse prevention plan, discharge plan, or
| 6 | | recovery plan.
| 7 | | "Qualified employer" means an employer operating within
| 8 | | the State that has received a certificate of tax credit from
| 9 | | the Department after the Department has determined that the
| 10 | | employer:
| 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, | 23 | | partnership,
trust, or other entity subject to the Illinois | 24 | | income tax. For
the purposes of this Act, 2 individuals filing | 25 | | a joint return
shall be considered one taxpayer.
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| 1 | | Section 15. Authorization of tax credit program for | 2 | | individuals in recovery from substance use disorders or mental | 3 | | illness. | 4 | | (a) For taxable years beginning on or after January 1, | 5 | | 2023, the Department is authorized to and shall establish and | 6 | | administer a recovery tax credit program to provide tax | 7 | | incentives to qualified employers who employ eligible | 8 | | individuals in recovery from a substance use disorder or | 9 | | mental illness in part-time and full-time positions within | 10 | | Illinois. The Department shall award the tax credit by | 11 | | issuance of a certificate of tax credit to the qualified | 12 | | employer, who will present the certificate of tax credit to | 13 | | the Department of Revenue by attaching the certificate to its | 14 | | tax return, as a credit against the qualified employer's tax | 15 | | obligation in accordance with this Act. The Department shall | 16 | | maintain an electronic listing of the certificates issued by | 17 | | which the Department of Revenue may confirm the eligibility of | 18 | | qualified employers for the tax credit. | 19 | | (b) To be a qualified employer, an employer must apply | 20 | | annually to the Department to claim a credit based upon | 21 | | eligible individuals employed during the preceding calendar | 22 | | year, using the forms prescribed by the Department. To be | 23 | | approved 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 | 11 | | diagnosed with or have been diagnosed with a substance use | 12 | | disorder or mental illness. Disclosure by the eligible | 13 | | individual of his or her mental illness or substance use | 14 | | disorder shall be completely voluntary and his or her health | 15 | | information may not be shared or disclosed under this Act | 16 | | without the eligible individual's express written consent. The | 17 | | eligible individual must have been employed by the qualified | 18 | | employer in the State for a minimum of 500 hours during the | 19 | | applicable calendar year and the tax credit may only begin on | 20 | | the date the eligible individual is hired by the qualified | 21 | | employer and ending on December 31 of that calendar year or the | 22 | | date that the eligible individual's employment with the | 23 | | qualified employer ends, whichever occurs first. Only one tax | 24 | | credit may be awarded for any eligible individual while | 25 | | employed by the same or related qualified employer. The hours | 26 | | of employment of 2 or more eligible individuals may not be |
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| 1 | | aggregated to reach the minimum number of hours. If an | 2 | | eligible individual has worked in excess of 500 hours between | 3 | | the date of hiring and December 31 of that year, a qualified | 4 | | employer can elect to compute and claim a credit for such | 5 | | eligible individual in that year based on the hours worked by | 6 | | December 31. Alternatively, the qualified employer may elect | 7 | | to include such individual in the computation of the credit in | 8 | | the year immediately succeeding the year in which the eligible | 9 | | individual was hired. In that case, the credit shall be | 10 | | computed on the basis of all hours worked by the eligible | 11 | | individual from the date of hire to the earlier of the last day | 12 | | of employment or December 31 of the succeeding year. | 13 | | (d) The aggregate amount of all credits the Department may | 14 | | award 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 | 17 | | year, the employer shall be entitled to claim the credit as | 18 | | shown on the certificate of tax credit on the calendar year | 19 | | return for which the certificate of tax credit was issued. If | 20 | | the certified employer's taxable year is a fiscal year, the | 21 | | qualified employer shall be entitled to claim the credit as | 22 | | shown on the certificate of tax credit on the return for the | 23 | | fiscal year that includes the last day of the calendar year | 24 | | covered by the certificate of tax credit. The tax credit may | 25 | | not be carried forward. | 26 | | (f) If Department criteria and all other requirements are |
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| 1 | | met, a qualified employer shall be entitled to a tax credit | 2 | | equal to the product of $1 and the number of hours worked by | 3 | | each eligible individual during the eligible individual's | 4 | | period of employment with the qualified employer. The tax | 5 | | credit awarded hereunder may not exceed $2,000 per eligible | 6 | | individual employed by the qualified employer in the State. In | 7 | | determining the amount of tax credit that any qualified | 8 | | employer may claim, the Department shall review all claims | 9 | | submitted for credit by all employers and, to the extent that | 10 | | the total amount claimed by employers exceeds the amount | 11 | | allocated for this program in that calendar year, shall issue | 12 | | tax credits on a pro rata basis corresponding to each | 13 | | qualified employer's share of the total amount claimed. | 14 | | (g) No tax credit awarded under this Act may reduce a | 15 | | qualified employer's tax obligation to less than zero. | 16 | | (h) The Department of Revenue shall review the certificate | 17 | | issued to the qualified employer and submitted with its tax | 18 | | return and, if approved, accept and apply the tax credit | 19 | | toward the qualified employer's income tax obligation. A | 20 | | taxpayer that is a qualified employer that has received a | 21 | | certificate of tax credit from the Department shall be allowed | 22 | | a credit against the tax imposed equal to the amount shown on | 23 | | such certificate of tax credit. For partners, shareholders of | 24 | | Subchapter S corporations, and owners of limited liability | 25 | | companies, if the liability company is treated as a | 26 | | partnership for purposes of federal and State income taxation, |
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| 1 | | there shall be allowed a credit under this subsection (f) to be | 2 | | determined in accordance with the determination of income and | 3 | | distributive share of income under Sections 702 and 704 and | 4 | | Subchapter S of the Internal Revenue Code. In carrying out | 5 | | this Act, no patient-specific information shall be shared or | 6 | | disclosed. Any individual or patient-specific information | 7 | | collected by the Department or the Department of Revenue shall | 8 | | not be subject to public disclosure or Freedom of Information | 9 | | Act requests. | 10 | | (i) The credit under this Act is exempt from the | 11 | | provisions of Section 250 of the Illinois Income Tax Act. | 12 | | Section 20. Advisory Council on Mental Illness and | 13 | | Substance Use Disorder Impacts on Employment Opportunities | 14 | | within Minority Communities. The Secretary of the Department | 15 | | shall appoint the Advisory Council on Mental Illness and | 16 | | Substance Use Disorder Impacts on Employment Opportunities | 17 | | within Minority Communities, to be composed of 15 members, | 18 | | which shall include a balanced representation of recipients, | 19 | | services providers, employers, local governmental units, | 20 | | community and welfare advocacy groups, academia, and the | 21 | | general public. The Advisory Council shall advise the | 22 | | Department regarding all aspects of employment impacts | 23 | | resulting from mental illnesses and substance use disorders | 24 | | within minority communities, tax credits, outreach, marketing, | 25 | | and education about the tax credit and employment |
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| 1 | | opportunities, and other areas as deemed appropriate by the | 2 | | Secretary. In appointing the first Council, the Secretary | 3 | | shall name 8 members to terms of 2 years and 7 members to serve | 4 | | terms of 4 years, all of whom shall be appointed within 6 | 5 | | months of the effective date of this Act. All members | 6 | | appointed thereafter shall serve terms of 4 years. Members | 7 | | shall serve without compensation other than reimbursement of | 8 | | expenses actually incurred in the performance of their | 9 | | official duties. At its first meeting, the Advisory Council | 10 | | shall select a chair from among its members. The Advisory | 11 | | Council shall meet at least quarterly and at other times at the | 12 | | call of the chair. | 13 | | Section 25. Powers. The Department shall adopt rules for | 14 | | the administration of this Act. The Department may enter into | 15 | | an intergovernmental agreement with the Department of Revenue | 16 | | for the administration of this Act. | 17 | | Section 30. The Illinois Income Tax Act is amended by | 18 | | adding Section 232 as follows: | 19 | | (35 ILCS 5/232 new) | 20 | | Sec. 232. Recovery and Mental Health Tax Credit Act. A
| 21 | | taxpayer who has been awarded a credit under the Recovery and
| 22 | | Mental Health Tax Credit Act is entitled to a credit against
| 23 | | the tax imposed by subsections (a) and (b) of Section 201 as
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| 1 | | provided in that Act. This Section is exempt from the
| 2 | | provisions of Section 250. ".
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