Full Text of SB3882 102nd General Assembly
SB3882sam002 102ND GENERAL ASSEMBLY | Sen. Laura Fine Filed: 2/17/2022
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| 1 | | AMENDMENT TO SENATE BILL 3882
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3882, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 1. Short title. This Article may be cited as the | 6 | | Recovery and Mental Health Tax Credit Act. References in this | 7 | | Article to "this Act" mean this Article. | 8 | | Section 5. Findings. | 9 | | (a) In the interest of reducing stigma and increasing the
| 10 | | available pool of potential employees, the General Assembly
| 11 | | finds and declares that those residents of Illinois diagnosed
| 12 | | with mental illness and substance use disorders should be
| 13 | | eligible for and encouraged to seek gainful employment.
| 14 | | (b) The General Assembly finds and declares that minority
| 15 | | communities in this State have been more negatively impacted | 16 | | in
employment opportunities for minority residents diagnosed |
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| 1 | | with
mental illness and substance use disorders and should | 2 | | receive
additional employment opportunities and incentives for
| 3 | | employing minority residents diagnosed with mental illness or
| 4 | | substance use disorders.
| 5 | | (c) Due to the COVID-19 public health emergency, employers
| 6 | | in the State of Illinois have suffered negative economic
| 7 | | impacts, a loss in workforce, staffing difficulties, and have
| 8 | | found it difficult to recruit new workers.
| 9 | | (d) In the interest of providing additional employment
| 10 | | opportunities for those residents of Illinois diagnosed with
| 11 | | mental illness or substance use disorders and expanding the
| 12 | | pool of potential workers in this State, the General Assembly
| 13 | | finds and declares that certain qualified employers who employ
| 14 | | eligible individuals should be eligible for a tax credit.
| 15 | | Section 10. Definitions. As used in this Act: | 16 | | "Department" means the Department of Human Services.
| 17 | | "Eligible individual" means an individual with a substance
| 18 | | use disorder, as that term is defined under Section 1-10 of the
| 19 | | Substance Use Disorder Act, or an individual with a mental
| 20 | | illness as that term is defined under Section 1-129 of the
| 21 | | Mental Health and Developmental Disabilities Code, who is in a
| 22 | | state of wellness and recovery where there is an abatement of
| 23 | | signs and symptoms that characterize active substance use
| 24 | | disorder or mental illness and has demonstrated to the
| 25 | | qualified employer's satisfaction, pursuant to rules
adopted |
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| 1 | | by the Department, that he or she has completed a
course of | 2 | | treatment or is currently in receipt of treatment
for such | 3 | | substance use disorder or mental illness. A relapse
in an | 4 | | individual's state of wellness shall not make the
individual | 5 | | ineligible, so long as the individual shows a
continued | 6 | | commitment to recovery that aligns with an
individual's | 7 | | relapse prevention plan, discharge plan, or
recovery plan.
| 8 | | "Qualified employer" means an employer operating within
| 9 | | the State that has received a certificate of tax credit from
| 10 | | the Department after the Department has determined that the
| 11 | | employer:
| 12 | | (1) provides a recovery supportive environment for
| 13 | | their employees evidenced by a formal working relationship
| 14 | | with a substance use disorder treatment provider or
| 15 | | facility or mental health provider or facility, each as
| 16 | | may be licensed or certified within the State of Illinois,
| 17 | | and providing reasonable accommodation to the employees to
| 18 | | address their substance use disorder or mental illness,
| 19 | | all at no cost or expense to the eligible individual; and | 20 | | (2) satisfies all other criteria in this Section and
| 21 | | established by the Department to participate in the
| 22 | | recovery tax program created hereunder.
| 23 | | "Taxpayer" means any individual, corporation, | 24 | | partnership,
trust, or other entity subject to the Illinois | 25 | | income tax. For
the purposes of this Act, 2 individuals filing | 26 | | 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 | 15 | | income tax liability in accordance with the Illinois Income | 16 | | Tax Act. The Department shall maintain an electronic listing | 17 | | of the certificates issued by which the Department of Revenue | 18 | | may verify tax credit certificates issued. | 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 |
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| 1 | | program eligibility requirements and provided all | 2 | | information requested or needed by the Department, | 3 | | including the number of hours worked by the eligible | 4 | | individual and other information necessary for the | 5 | | Department to calculate the amount of credit permitted; | 6 | | and | 7 | | (2) agree to provide names, employer identification | 8 | | numbers, amounts that the employer may claim, and other | 9 | | information necessary for the Department to calculate any | 10 | | tax credit. | 11 | | (c) To be an eligible individual, the individual must be | 12 | | diagnosed with or have been diagnosed with a substance use | 13 | | disorder or mental illness. Disclosure by the eligible | 14 | | individual of his or her mental illness or substance use | 15 | | disorder shall be completely voluntary and his or her health | 16 | | information may not be shared or disclosed under this Act | 17 | | without the eligible individual's express written consent. The | 18 | | eligible individual must have been employed by the qualified | 19 | | employer in this State for a minimum of 500 hours during the | 20 | | applicable calendar year and the tax credit may only begin on | 21 | | the date the eligible individual is hired by the qualified | 22 | | employer and ending on December 31 of that calendar year or the | 23 | | date that the eligible individual's employment with the | 24 | | qualified employer ends, whichever occurs first. Only one tax | 25 | | credit may be awarded for any eligible individual while | 26 | | employed by the same or related qualified employer. The hours |
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| 1 | | of employment of 2 or more eligible individuals may not be | 2 | | aggregated to reach the minimum number of hours. If an | 3 | | eligible individual has worked in excess of 500 hours between | 4 | | the date of hiring and December 31 of that year, a qualified | 5 | | employer can elect to compute and claim a credit for such | 6 | | eligible individual in that year based on the hours worked by | 7 | | December 31. Alternatively, the qualified employer may elect | 8 | | to include such individual in the computation of the credit in | 9 | | the year immediately succeeding the year in which the eligible | 10 | | individual was hired. In that case, the credit shall be | 11 | | computed on the basis of all hours worked by the eligible | 12 | | individual from the date of hire to the earlier of the last day | 13 | | of employment or December 31 of the succeeding year. | 14 | | (d) If Department criteria and all other requirements are
| 15 | | met, a qualified employer shall be entitled to a tax credit
| 16 | | equal to the product of $1 and the number of hours worked by
| 17 | | each eligible individual during the eligible individual's
| 18 | | period of employment with the qualified employer. The tax
| 19 | | credit awarded under this Act may not exceed $2,000 per | 20 | | eligible
individual employed by the qualified employer in this | 21 | | State. In
determining the amount of tax credit that any | 22 | | qualified
employer may claim, the Department shall review all | 23 | | claims
submitted for credit by all employers and, to the | 24 | | extent that
the total amount claimed by employers exceeds the | 25 | | amount
allocated for this program in that calendar year, shall | 26 | | issue
tax credits on a pro rata basis corresponding to each
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| 1 | | qualified employer's share of the total amount claimed.
| 2 | | (e) The aggregate amount of all credits the Department may | 3 | | award under this Act in any calendar year may not exceed | 4 | | $2,000,000. | 5 | | (f) A taxpayer who is a qualified
employer who has | 6 | | received a certificate of tax credit from the
Department shall | 7 | | be allowed a credit against the tax imposed equal
to the amount | 8 | | shown on such certificate of tax credit.
| 9 | | (g) The credit must be claimed in the taxable year in which | 10 | | the tax credit certificate is issued. The credit cannot reduce | 11 | | a taxpayer's liability to less than zero. If the amount of the | 12 | | credit exceeds the tax liability for the year, the credit may | 13 | | not
be carried forward. | 14 | | (h) If the taxpayer is a partnership or Subchapter S | 15 | | corporation the credit shall be allowed to the partners or | 16 | | shareholders in accordance with the determination of income | 17 | | and distributive share of income under Sections 702 and 704 | 18 | | and subchapter S of the Internal Revenue Code. | 19 | | (i) In carrying out this Act, no patient-specific | 20 | | information shall
be shared or disclosed. Any individual or | 21 | | patient-specific
information collected by the Department or | 22 | | the Department
of Revenue shall not be subject
to public | 23 | | disclosure or Freedom of Information Act requests.
| 24 | | (j) The credit under this Act is exempt from the | 25 | | provisions of Section 250 of the Illinois Income Tax Act. |
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| 1 | | Section 20. Advisory Council on Mental Illness and | 2 | | Substance Use Disorder Impacts on Employment Opportunities | 3 | | within Minority Communities. The Secretary of the Department | 4 | | shall appoint the Advisory Council on Mental Illness and | 5 | | Substance Use Disorder Impacts on Employment Opportunities | 6 | | within Minority Communities, to be composed of 15 members, | 7 | | which shall include a balanced representation of recipients, | 8 | | services providers, employers, local governmental units, | 9 | | community and welfare advocacy groups, academia, and the | 10 | | general public. The Advisory Council shall advise the | 11 | | Department regarding all aspects of employment impacts | 12 | | resulting from mental illnesses and substance use disorders | 13 | | within minority communities, tax credits, outreach, marketing, | 14 | | and education about the tax credit and employment | 15 | | opportunities, and other areas as deemed appropriate by the | 16 | | Secretary. In appointing the first Council, the Secretary | 17 | | shall name 8 members to terms of 2 years and 7 members to serve | 18 | | terms of 4 years, all of whom shall be appointed within 6 | 19 | | months of the effective date of this Act. All members | 20 | | appointed thereafter shall serve terms of 4 years. Members | 21 | | shall serve without compensation other than reimbursement of | 22 | | expenses actually incurred in the performance of their | 23 | | official duties. At its first meeting, the Advisory Council | 24 | | shall select a chair from among its members. The Advisory | 25 | | Council shall meet at least quarterly and at other times at the | 26 | | call of the chair. |
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| 1 | | Section 25. Powers. The Department shall adopt rules for | 2 | | the administration of this Act. The Department may enter into | 3 | | an intergovernmental agreement with the Department of Revenue | 4 | | for the administration of this Act. | 5 | | Section 30. The Illinois Income Tax Act is amended by | 6 | | adding Section 232 as follows: | 7 | | (35 ILCS 5/232 new) | 8 | | Sec. 232. Recovery and Mental Health Tax Credit Act. For | 9 | | taxable years beginning on or after January 1, 2023, a
| 10 | | taxpayer who has been awarded a credit under the Recovery and
| 11 | | Mental Health Tax Credit Act is entitled to a credit against
| 12 | | the tax imposed by subsections (a) and (b) of Section 201 as
| 13 | | provided in that Act. This Section is exempt from the
| 14 | | provisions of Section 250. ".
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