Bill Text: IL SB1906 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 20% of the gross wages paid by the taxpayer to a qualified youth in care in the course of that youth's sustained employment during the taxable year. Provides that the credit may not exceed $5,000. Provides that the credit is exempt from the Act's automatic sunset provisions. Defines "qualified youth in care". Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB1906 Detail]
Download: Illinois-2019-SB1906-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 229 as follows:
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6 | (35 ILCS 5/229 new) | |||||||||||||||||||
7 | Sec. 229. Credit for wages paid to youth in care. | |||||||||||||||||||
8 | (a) For each taxable year ending on or after December 31, | |||||||||||||||||||
9 | 2019 each taxpayer is entitled to a credit against the tax | |||||||||||||||||||
10 | imposed by subsections (a) and (b) of Section 201 in an amount | |||||||||||||||||||
11 | equal to 20%, but in no event to exceed $5,000, of the gross | |||||||||||||||||||
12 | wages paid by the taxpayer to a qualified youth in care in the | |||||||||||||||||||
13 | course of that youth's sustained employment during the taxable | |||||||||||||||||||
14 | year. For partners, shareholders of Subchapter S corporations, | |||||||||||||||||||
15 | and owners of limited liability companies, if the liability | |||||||||||||||||||
16 | company is treated as a partnership for the purposes of federal | |||||||||||||||||||
17 | and State income taxation, there shall be allowed a credit | |||||||||||||||||||
18 | under this Section to be determined in accordance with the | |||||||||||||||||||
19 | determination of income and distributive share of income under | |||||||||||||||||||
20 | Sections 702 and 704 and Subchapter S of the Internal Revenue | |||||||||||||||||||
21 | Code. | |||||||||||||||||||
22 | (b) In no event shall a credit under this Section reduce a | |||||||||||||||||||
23 | taxpayer's liability to less than zero. If the amount of credit |
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1 | exceeds the tax liability for the year, the excess may be | ||||||
2 | carried forward and applied to the tax liability for the 5 | ||||||
3 | taxable years following the excess credit year. The tax credit | ||||||
4 | shall be applied to the earliest year for which there is a tax | ||||||
5 | liability. If there are credits for more than one year that are | ||||||
6 | available to offset liability, the earlier credit shall be | ||||||
7 | applied first. | ||||||
8 | (c) Taxpayers seeking a credit under this Section may | ||||||
9 | request information about whether an applicant or employee is a | ||||||
10 | qualified youth in care, but whether or not to disclose that | ||||||
11 | status is entirely voluntary on the part of the applicant or | ||||||
12 | employee. Any request made by the taxpayer for the applicant or | ||||||
13 | employee's status as a qualified youth in care must clearly | ||||||
14 | state that providing the information is voluntary and there can | ||||||
15 | be no negative consequence for refusal to disclose youth in | ||||||
16 | care status. | ||||||
17 | (d) For the purposes of this Section: | ||||||
18 | "Qualified youth in care" means an Illinois resident | ||||||
19 | who: (1) meets the definition of "youth in care" under | ||||||
20 | Section 4d of the Children and Family Services Act; or (2) | ||||||
21 | at any time previously, met the definition of "youth in | ||||||
22 | care" under Section 4d of the Children and Family Services | ||||||
23 | Act and has not yet attained the age of 27. | ||||||
24 | "Sustained employment" means (i) a period of | ||||||
25 | employment that is not less than 185 days following the | ||||||
26 | date of hire or (ii) in the case of a qualified youth in |
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1 | care who was unemployed for an aggregate period of 6 months | ||||||
2 | or more during the one-year period ending on the date the | ||||||
3 | qualified youth in care was hired by the taxpayer, a period | ||||||
4 | of employment that is more than 30 days following the date | ||||||
5 | of hire. The period of sustained employment may be | ||||||
6 | completed after the end of the taxable year in which the | ||||||
7 | qualified youth in care is hired. | ||||||
8 | (e) This Section is exempt from the provisions of Section | ||||||
9 | 250.
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
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