Bill Text: IL SB0139 | 2023-2024 | 103rd General Assembly | Engrossed
Bill Title: Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Effective immediately.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Engrossed) 2024-03-06 - Added Alternate Chief Co-Sponsor Rep. Joe C. Sosnowski [SB0139 Detail]
Download: Illinois-2023-SB0139-Engrossed.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, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | changing and renumbering Section 231, as added by Public Act | ||||||
6 | 101-207, as follows:
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7 | (35 ILCS 5/231) | ||||||
8 | Sec. 231. Apprenticeship education expense credit. | ||||||
9 | (a) As used in this Section: | ||||||
10 | "Department" means the Department of Commerce and Economic | ||||||
11 | Opportunity. | ||||||
12 | "Employer" means an Illinois taxpayer who is the employer | ||||||
13 | of the qualifying apprentice. | ||||||
14 | "Qualifying apprentice" means an individual who: (i) is a | ||||||
15 | resident of the State of Illinois; (ii) is at least 16 years | ||||||
16 | old at the close of the school year for which a credit is | ||||||
17 | sought; (iii) during the school year for which a credit is | ||||||
18 | sought, was a full-time apprentice enrolled in an | ||||||
19 | apprenticeship program which is registered with the United | ||||||
20 | States Department of Labor, Office of Apprenticeship; and (iv) | ||||||
21 | is employed in Illinois by the taxpayer who is the employer. | ||||||
22 | "Qualifying apprentice" also means an apprentice who is
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23 | employed in Illinois by the taxpayer through the United States |
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1 | Department of Defense SkillBridge internship program. | ||||||
2 | "Qualified education expense" means the amount incurred on | ||||||
3 | behalf of a qualifying apprentice not to exceed $3,500 for | ||||||
4 | tuition, book fees, and lab fees at the school or community | ||||||
5 | college in which the apprentice is enrolled during the regular | ||||||
6 | school year. | ||||||
7 | "School" means any public or nonpublic secondary school in | ||||||
8 | Illinois that is: (i) an institution of higher education that | ||||||
9 | provides a program that leads to an industry-recognized | ||||||
10 | postsecondary credential or degree; (ii) an entity that | ||||||
11 | carries out programs registered under the federal National | ||||||
12 | Apprenticeship Act; or (iii) another public or private | ||||||
13 | provider of a program of training services, which may include | ||||||
14 | a joint labor-management organization. | ||||||
15 | (b) For taxable years beginning on or after January 1, | ||||||
16 | 2020, and beginning on or before January 1, 2025, the employer | ||||||
17 | of one or more qualifying apprentices shall be allowed a | ||||||
18 | credit against the tax imposed by subsections (a) and (b) of | ||||||
19 | Section 201 of the Illinois Income Tax Act for qualified | ||||||
20 | education expenses incurred on behalf of a qualifying | ||||||
21 | apprentice. The credit shall be equal to 100% of the qualified | ||||||
22 | education expenses, but in no event may the total credit | ||||||
23 | amount awarded to a single taxpayer in a single taxable year | ||||||
24 | exceed $3,500 per qualifying apprentice. A taxpayer shall be | ||||||
25 | entitled to an additional $1,500 credit against the tax | ||||||
26 | imposed by subsections (a) and (b) of Section 201 of the |
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1 | Illinois Income Tax Act if (i) the qualifying apprentice | ||||||
2 | resides in an underserved area as defined in Section 5-5 of the | ||||||
3 | Economic Development for a Growing Economy Tax Credit Act | ||||||
4 | during the school year for which a credit is sought by an | ||||||
5 | employer or (ii) the employer's principal place of business is | ||||||
6 | located in an underserved area, as defined in Section 5-5 of | ||||||
7 | the Economic Development for a Growing Economy Tax Credit Act. | ||||||
8 | In no event shall a credit under this Section reduce the | ||||||
9 | taxpayer's liability under this Act to less than zero.
For | ||||||
10 | partners, shareholders of Subchapter S corporations, and | ||||||
11 | owners of limited liability companies, if the liability | ||||||
12 | company is treated as a partnership for purposes of federal | ||||||
13 | and State income taxation, there shall be allowed a credit | ||||||
14 | under this Section to be determined in accordance with the | ||||||
15 | determination of income and distributive share of income under | ||||||
16 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
17 | Code. | ||||||
18 | (c) The Department shall implement a program to certify | ||||||
19 | applicants for an apprenticeship credit under this Section. | ||||||
20 | Upon satisfactory review, the Department shall issue a tax | ||||||
21 | credit certificate to an employer incurring costs on behalf of | ||||||
22 | a qualifying apprentice stating the amount of the tax credit | ||||||
23 | to which the employer is entitled. If the employer is seeking a | ||||||
24 | tax credit for multiple qualifying apprentices, the Department | ||||||
25 | may issue a single tax credit certificate that encompasses the | ||||||
26 | aggregate total of tax credits for qualifying apprentices for |
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1 | a single employer. | ||||||
2 | (d) The Department, in addition to those powers granted | ||||||
3 | under the Civil Administrative Code of Illinois, is granted | ||||||
4 | and shall have all the powers necessary or convenient to carry | ||||||
5 | out and effectuate the purposes and provisions of this | ||||||
6 | Section, including, but not limited to, power and authority | ||||||
7 | to: | ||||||
8 | (1) Adopt rules deemed necessary and appropriate for | ||||||
9 | the administration of this Section; establish forms for | ||||||
10 | applications, notifications, contracts, or any other | ||||||
11 | agreements; and accept applications at any time during the | ||||||
12 | year and require that all applications be submitted via | ||||||
13 | the Internet. The Department shall require that | ||||||
14 | applications be submitted in electronic form. | ||||||
15 | (2) Provide guidance and assistance to applicants | ||||||
16 | pursuant to the provisions of this Section and cooperate | ||||||
17 | with applicants to promote, foster, and support job | ||||||
18 | creation within the State. | ||||||
19 | (3) Enter into agreements and memoranda of | ||||||
20 | understanding for participation of and engage in | ||||||
21 | cooperation with agencies of the federal government, units | ||||||
22 | of local government, universities, research foundations or | ||||||
23 | institutions, regional economic development corporations, | ||||||
24 | or other organizations for the purposes of this Section. | ||||||
25 | (4) Gather information and conduct inquiries, in the | ||||||
26 | manner and by the methods it deems desirable, including, |
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1 | without limitation, gathering information with respect to | ||||||
2 | applicants for the purpose of making any designations or | ||||||
3 | certifications necessary or desirable or to gather | ||||||
4 | information in furtherance of the purposes of this Act. | ||||||
5 | (5) Establish, negotiate, and effectuate any term, | ||||||
6 | agreement, or other document with any person necessary or | ||||||
7 | appropriate to accomplish the purposes of this Section, | ||||||
8 | and consent, subject to the provisions of any agreement | ||||||
9 | with another party, to the modification or restructuring | ||||||
10 | of any agreement to which the Department is a party. | ||||||
11 | (6) Provide for sufficient personnel to permit | ||||||
12 | administration, staffing, operation, and related support | ||||||
13 | required to adequately discharge its duties and | ||||||
14 | responsibilities described in this Section from funds made | ||||||
15 | available through charges to applicants or from funds as | ||||||
16 | may be appropriated by the General Assembly for the | ||||||
17 | administration of this Section. | ||||||
18 | (7) Require applicants, upon written request, to issue | ||||||
19 | any necessary authorization to the appropriate federal, | ||||||
20 | State, or local authority or any other person for the | ||||||
21 | release to the Department of information requested by the | ||||||
22 | Department, including, but not be limited to, financial | ||||||
23 | reports, returns, or records relating to the applicant or | ||||||
24 | to the amount of credit allowable under this Section. | ||||||
25 | (8) Require that an applicant shall, at all times, | ||||||
26 | keep proper books of record and account in accordance with |
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1 | generally accepted accounting principles consistently | ||||||
2 | applied, with the books, records, or papers related to the | ||||||
3 | agreement in the custody or control of the applicant open | ||||||
4 | for reasonable Department inspection and audits, | ||||||
5 | including, without limitation, the making of copies of the | ||||||
6 | books, records, or papers. | ||||||
7 | (9) Take whatever actions are necessary or appropriate | ||||||
8 | to protect the State's interest in the event of | ||||||
9 | bankruptcy, default, foreclosure, or noncompliance with | ||||||
10 | the terms and conditions of financial assistance or | ||||||
11 | participation required under this Section or any agreement | ||||||
12 | entered into under this Section, including the power to | ||||||
13 | sell, dispose of, lease, or rent, upon terms and | ||||||
14 | conditions determined by the Department to be appropriate, | ||||||
15 | real or personal property that the Department may recover | ||||||
16 | as a result of these actions. | ||||||
17 | (e) The Department, in consultation with the Department of | ||||||
18 | Revenue, shall adopt rules to administer this Section. The | ||||||
19 | aggregate amount of the tax credits that may be claimed under | ||||||
20 | this Section for qualified education expenses incurred by an | ||||||
21 | employer on behalf of a qualifying apprentice shall be limited | ||||||
22 | to $5,000,000 per calendar year. If applications for a greater | ||||||
23 | amount are received, credits shall be allowed on a first-come | ||||||
24 | first-served basis, based on the date on which each properly | ||||||
25 | completed application for a certificate of eligibility is | ||||||
26 | received by the Department. If more than one certificate is |
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1 | received on the same day, the credits will be awarded based on | ||||||
2 | the time of submission for that particular day. | ||||||
3 | (f) An employer may not sell or otherwise transfer a | ||||||
4 | credit awarded under this Section to another person or | ||||||
5 | taxpayer. | ||||||
6 | (g) The employer shall provide the Department such | ||||||
7 | information as the Department may require, including but not | ||||||
8 | limited to: (i) the name, age, and taxpayer identification | ||||||
9 | number of each qualifying apprentice employed by the taxpayer | ||||||
10 | during the taxable year; (ii) the amount of qualified | ||||||
11 | education expenses incurred with respect to each qualifying | ||||||
12 | apprentice; and (iii) the name of the school at which the | ||||||
13 | qualifying apprentice is enrolled and the qualified education | ||||||
14 | expenses are incurred. | ||||||
15 | (h) On or before July 1 of each year, the Department shall | ||||||
16 | report to the Governor and the General Assembly on the tax | ||||||
17 | credit certificates awarded under this Section for the prior | ||||||
18 | calendar year. The report must include: | ||||||
19 | (1) the name of each employer awarded or allocated a | ||||||
20 | credit; | ||||||
21 | (2) the number of qualifying apprentices for whom the | ||||||
22 | employer has incurred qualified education expenses; | ||||||
23 | (3) the North American Industry Classification System | ||||||
24 | (NAICS) code applicable to each employer awarded or | ||||||
25 | allocated a credit; | ||||||
26 | (4) the amount of the credit awarded or allocated to |
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1 | each employer; | ||||||
2 | (5) the total number of employers awarded or allocated | ||||||
3 | a credit; | ||||||
4 | (6) the total number of qualifying apprentices for | ||||||
5 | whom employers receiving credits under this Section | ||||||
6 | incurred qualified education expenses; and | ||||||
7 | (7) the average cost to the employer of all | ||||||
8 | apprenticeships receiving credits under this Section.
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9 | (Source: P.A. 101-207, eff. 8-2-19; 102-558, eff. 8-20-21.)
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