Bill Text: IL HB3413 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates a credit for qualifying taxpayers who own and operate a business in an area with low long-term manufacturing job projections in the amount of $3,500 for each employee hired by the taxpayer on or after January 1, 2018 to work at job location in an area with low long-term manufacturing job projections and retained by the taxpayer at that job location for 2 years. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB3413 Detail]
Download: Illinois-2017-HB3413-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||
5 | Section 224 as follows:
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6 | (35 ILCS 5/224 new) | ||||||||||||||||||||||||
7 | Sec. 224. Manufacturing job creation credit. | ||||||||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, | ||||||||||||||||||||||||
9 | 2018, each qualifying taxpayer who owns and operates a business | ||||||||||||||||||||||||
10 | in an area with low long-term manufacturing job projections | ||||||||||||||||||||||||
11 | shall be allowed a credit against the tax imposed by | ||||||||||||||||||||||||
12 | subsections (a) and (b) of Section 201 of this Act in the | ||||||||||||||||||||||||
13 | amount of $3,500 for each employee hired by the taxpayer on or | ||||||||||||||||||||||||
14 | after January 1, 2018 to work at job location in an area with | ||||||||||||||||||||||||
15 | low long-term manufacturing job projections and retained by the | ||||||||||||||||||||||||
16 | taxpayer at that job location for 2 years. Of the $3,500 | ||||||||||||||||||||||||
17 | amount: (1) an amount equal to $2,000 is allowed as a credit | ||||||||||||||||||||||||
18 | for the taxable year in which the employee is hired if the | ||||||||||||||||||||||||
19 | employee remains employed by the employer at that job location | ||||||||||||||||||||||||
20 | on the last day of that taxable year; (2) an amount equal to | ||||||||||||||||||||||||
21 | $1,000 is allowed as a credit for the following taxable year if | ||||||||||||||||||||||||
22 | the employee remains employed by the employer at that job | ||||||||||||||||||||||||
23 | location on the last day of that taxable year; and (3) an |
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1 | amount equal to $500 is allowed for the second taxable year | ||||||
2 | after the employee is hired if the employee remains employed by | ||||||
3 | the employer at that job location on the second anniversary of | ||||||
4 | the date he or she was hired to work at that job location. | ||||||
5 | (b) For the purposes of this Section, an "area with low | ||||||
6 | long-term manufacturing job projections" means a Local | ||||||
7 | Workforce Investment Area, as defined by the North American | ||||||
8 | Industrial Classification System, that is projected to | ||||||
9 | experience an annual compound growth rate between 0 and 0.1 | ||||||
10 | between the base year 2012 and projected year 2022 with regard | ||||||
11 | to total manufacturing employment, as reported by the | ||||||
12 | Department of Employment Security. | ||||||
13 | (c) A credit under this Section may not exceed the | ||||||
14 | taxpayer's Illinois income tax liability for the taxable year. | ||||||
15 | If the amount of the credit exceeds the tax liability for the | ||||||
16 | year, the excess may be carried forward and applied to the tax | ||||||
17 | liability of the 5 taxable years following the excess credit | ||||||
18 | year. The credit shall be applied to the earliest year for | ||||||
19 | which there is a tax liability. If there are credits from more | ||||||
20 | than one taxable year that are available to offset a liability, | ||||||
21 | the earlier credit shall be applied first. In the case of a | ||||||
22 | partnership or Subchapter S Corporation, the credit is allowed | ||||||
23 | to the partners or shareholders in accordance with the | ||||||
24 | determination of income and distributive share of income under | ||||||
25 | Section 702 and 704 and Subchapter S of the Internal Revenue | ||||||
26 | Code. |
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1 | (d) This Section is exempt from the provisions of Section | ||||||
2 | 250 of this Act.
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3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
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