Full Text of SB4187 102nd General Assembly
SB4187 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB4187 Introduced 3/4/2022, by Sen. Terri Bryant, Sally J. Turner, Dan McConchie, Steve McClure and Win Stoller SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/210 | | 35 ILCS 5/210.5 | |
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Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2022, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual
amount paid
by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Sections 210 and 210.5 as follows:
| 6 | | (35 ILCS 5/210)
| 7 | | Sec. 210. Dependent care assistance program tax credit.
| 8 | | (a) Beginning with tax years ending on or after June 30, | 9 | | 1995, each taxpayer
who is primarily engaged in manufacturing | 10 | | is entitled to a credit against the
tax imposed by subsections | 11 | | (a) and (b) of Section 201 in an amount equal to 5%
of the | 12 | | amount of expenditures by the taxpayer in the tax year for | 13 | | which the
credit is claimed, reported pursuant to Section | 14 | | 129(d)(7) of the Internal
Revenue Code, to provide in the | 15 | | Illinois premises of the taxpayer's workplace
an on-site | 16 | | facility dependent care assistance program under Section 129 | 17 | | of the
Internal Revenue Code.
| 18 | | (b) If the amount of credit exceeds the tax liability for | 19 | | the year, the
excess may be carried forward and applied to the | 20 | | tax liability of the 2 taxable
years following the excess | 21 | | credit year. The credit shall be applied to the
earliest year | 22 | | for which there is a tax liability. If there are credits from
| 23 | | more than one tax year that are available to offset a |
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| 1 | | liability, the earlier
credit shall be applied first.
| 2 | | (c) A taxpayer claiming the credit provided by this | 3 | | Section shall maintain
and record such information as the | 4 | | Department may require by regulation
regarding the dependent | 5 | | care assistance program for which credit is claimed.
When | 6 | | claiming the credit provided by this Section, the taxpayer | 7 | | shall provide
such information regarding the taxpayer's | 8 | | provision of a dependent care
assistance program under Section | 9 | | 129 of the Internal Revenue Code.
| 10 | | (d) If a taxpayer claims a credit under this Section for a | 11 | | taxable year, then the taxpayer may not also claim a credit | 12 | | under Section 210.5 for the same taxable year. | 13 | | (Source: P.A. 88-505.)
| 14 | | (35 ILCS 5/210.5)
| 15 | | Sec. 210.5. Tax credit for employee child care.
| 16 | | (a) Each corporate taxpayer is entitled
to a credit | 17 | | against the tax imposed by subsections (a) and (b) of Section | 18 | | 201
as provided in this Section. For taxable years ending on or | 19 | | after December 31,
2000 and on or before December 31, 2004, the | 20 | | amount of the credit shall be equal to: (1) 30% of the start-up | 21 | | costs expended by
the corporate taxpayer to provide a child | 22 | | care
facility for the children of its employees; and (2) 5% of | 23 | | the annual
amount paid
by the corporate taxpayer in providing | 24 | | the child care facility for the children
of its employees. For | 25 | | taxable years ending after December 31, 2004 and prior to |
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| 1 | | December 31, 2007, the amount of the credit shall be equal to | 2 | | 5% of the annual
amount paid
by the corporate taxpayer in | 3 | | providing the child care facility for the children
of its | 4 | | employees. For taxable years ending on or after December 31,
| 5 | | 2007 and before December 31, 2022, the amount of the credit | 6 | | shall be equal to: (1) 30% of the start-up costs expended by
| 7 | | the corporate taxpayer to provide a child care
facility for | 8 | | the children of its employees; and (2) 5% of the annual
amount | 9 | | paid
by the corporate taxpayer in providing the child care | 10 | | facility for the children
of its employees. For taxable years | 11 | | ending on or after December 31, 2022, the amount of the credit | 12 | | shall be equal to: (1) 50% of the start-up costs expended by | 13 | | the corporate taxpayer to provide a child care facility for | 14 | | the children of its employees; and (2) 20% of the annual amount | 15 | | paid by the corporate taxpayer to (i) provide an on-site child | 16 | | care facility for the children of its employees, (ii) provide | 17 | | child care offsite for the children of its employees, or (iii) | 18 | | a combination of (i) and (ii). This amendatory Act of the 102nd | 19 | | General Assembly is not intended to make any substantive | 20 | | changes with respect to taxable years ending prior to December | 21 | | 31, 2022. in an amount equal to (i) for taxable years ending on | 22 | | or after December 31,
2000 and on or before December 31, 2004 | 23 | | and for taxable years ending on or after December 31, 2007, 30% | 24 | | of the start-up costs expended by
the corporate taxpayer to | 25 | | provide a child care
facility for the children of its | 26 | | employees and
(ii) for taxable years ending on or after |
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| 1 | | December 31, 2000, 5% of the annual
amount paid
by the | 2 | | corporate taxpayer in providing the child care facility for | 3 | | the children
of its employees. The provisions of Section 250 | 4 | | do not apply to the credits allowed under this Section. If the | 5 | | 5% credit authorized under item
(ii) of this Section | 6 | | subsection is claimed, the 5% credit authorized under Section | 7 | | 210
cannot also be claimed.
| 8 | | To receive the tax credit under this Section a corporate | 9 | | taxpayer may do one or more of the following: it may either
| 10 | | independently provide and operate a child care facility for | 11 | | the children of its
employees ; or it may join in a partnership | 12 | | with one or more other corporations
to jointly provide and | 13 | | operate a child care facility for the children of
employees of | 14 | | the corporations in the partnership ; or it may coordinate with | 15 | | an independent child care facility to provide care for the | 16 | | children of employees .
| 17 | | (b) The tax credit may not reduce the taxpayer's liability | 18 | | to less than
zero. If the amount of the tax credit exceeds the | 19 | | tax liability for the year,
the excess may be carried forward | 20 | | and applied to the tax liability of the 5
taxable years | 21 | | following the excess credit year. The credit must be applied | 22 | | to
the earliest year for which there is a tax liability. If | 23 | | there are credits
from more than one tax year that are | 24 | | available to offset a liability, then the
earlier credit must | 25 | | be applied first.
| 26 | | (c) As used in this Section, "start-up costs" means |
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| 1 | | planning,
site-preparation, construction, renovation, or | 2 | | acquisition of a child care
facility. As used in this Section, | 3 | | "child care facility" is limited to a child
care facility | 4 | | located in Illinois.
| 5 | | (d) A corporate taxpayer claiming the credit provided by | 6 | | this Section
shall maintain and record such information as the | 7 | | Department may require by
rule regarding the child care | 8 | | facility for which the credit is claimed.
| 9 | | (Source: P.A. 95-648, eff. 10-11-07.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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