State of Illinois
91st General Assembly

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 1        AN  ACT  to  amend  the Illinois Income Tax Act by adding
 2    Section 210.5.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.  The  Illinois  Income  Tax Act is amended by
 6    adding Section 210.5 as follows:

 7        (35 ILCS 5/210.5 new)
 8        Sec. 210.5.  Tax credit for employee child care.
 9        (a)  For taxable years 2000 through 2004, each  corporate
10    taxpayer  is  entitled to a credit against the tax imposed by
11    subsections (a) and (b) of Section 201 in an amount equal  to
12    (i)  30%  of  the  start-up  costs  expended by the corporate
13    taxpayer to provide a child care facility for the children of
14    its employees and (ii)  5%  of  the  annual  amount  paid  or
15    expenses  incurred by the corporate taxpayer in providing the
16    child care facility for the children of  its  employees.   If
17    the  5%  credit authorized under item (ii) of this subsection
18    is claimed, the 5% credit authorized under Section 210 cannot
19    also be claimed.
20        To receive the tax credit under this Section a  corporate
21    taxpayer may either independently provide and operate a child
22    care  facility  for  the  children of its employees or it may
23    join in a partnership with one or more other corporations  to
24    jointly  provide  and  operate  a child care facility for the
25    children of employees of the corporations in the partnership.
26        (b)  The  tax  credit  may  not  reduce  the   taxpayer's
27    liability to less than zero.  If the amount of the tax credit
28    exceeds  the  tax  liability  for the year, the excess may be
29    carried forward and applied to the tax  liability  of  the  5
30    taxable  years  following the excess credit year.  The credit
31    must be applied to the earliest year for which there is a tax
                            -2-               LRB9109644SMdvA
 1    liability.  If there are credits from more than one tax  year
 2    that  are  available  to offset a liability, then the earlier
 3    credit must be applied first.
 4        (c)  As used in  this  Section,  "start-up  costs"  means
 5    planning,   site-preparation,  construction,  renovation,  or
 6    acquisition of a child care facility.
 7        (d)  A corporate taxpayer claiming the credit provided by
 8    this Section shall maintain and record  such  information  as
 9    the  Department  may require by rule regarding the child care
10    facility for which the credit is claimed.

11        Section 99.  Effective date.  This Act takes effect  upon
12    becoming law.

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