|Public Act 098-0165
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Illinois Income Tax Act is amended by
changing Section 216 as follows:
(35 ILCS 5/216)
Credit for wages paid to ex-felons.
(a) For each taxable year beginning on or after January 1,
2007, each taxpayer is entitled to a credit against the tax
imposed by subsections (a) and (b) of Section 201 of this Act
in an amount equal to 5% of qualified wages paid by the
taxpayer during the taxable year to one or more Illinois
residents who are qualified ex-offenders. The total credit
allowed to a taxpayer with respect to each qualified
ex-offender may not exceed
for all taxable years.
For partners, shareholders of Subchapter S corporations, and
owners of limited liability companies, if the liability company
is treated as a partnership for purposes of federal and State
income taxation, there shall be allowed a credit under this
Section to be determined in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code.
(b) For purposes of this Section, "qualified wages":
(1) includes only wages that are subject to federal
unemployment tax under Section 3306 of the Internal Revenue
Code, without regard to any dollar limitation contained in
(2) does not include any amounts paid or incurred by an
employer for any period to any qualified ex-offender for
whom the employer receives federally funded payments for
on-the-job training of that qualified ex-offender for that
(3) includes only wages attributable to service
rendered during the one-year period beginning with the day
the qualified ex-offender begins work for the employer.
If the taxpayer has received any payment from a program
established under Section 482(e)(1) of the federal Social
Security Act with respect to a qualified ex-offender, then, for
purposes of calculating the credit under this Section, the
amount of the qualified wages paid to that qualified
ex-offender must be reduced by the amount of the payment.
(c) For purposes of this Section, "qualified ex-offender"
means any person who:
has been convicted of a crime in this State or of
an offense in any other jurisdiction, not including any
offense or attempted offense that would subject a person to
registration under the Sex Offender Registration Act
eligible offender, as defined under Section 5-5.5-5 of the
Unified Code of Corrections
(2) was sentenced to a period of incarceration in an
Illinois adult correctional center; and
(3) was hired by the taxpayer within
after being released from an Illinois adult correctional
(d) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(e) This Section is exempt from the provisions of Section
(Source: P.A. 94-1067, eff. 8-1-06.)
This Act takes effect upon