Bill Text: IL SB4006 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for employers who hire residents of the State if those residents were unemployed as a result of the COVID-19 pandemic immediately prior to the date of hire by the taxpayer. Sets forth the amount of the credit. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB4006 Detail]

Download: Illinois-2019-SB4006-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB4006 Introduced 1/4/2021, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
35 ILCS 5/232 new
Amends the Illinois Income Tax Act. Creates an income tax credit for employers who hire residents of the State if those residents were unemployed as a result of the COVID-19 pandemic immediately prior to the date of hire by the taxpayer. Sets forth the amount of the credit. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by adding
Section 232 as follows:
(35 ILCS 5/232 new)
Sec. 232. Employment credit; COVID-19.
(a) For taxable years that begin on or after January 1,
2020 and begin prior to January 1, 2025, each employer that
employs an average of 500 or fewer employees during the taxable
year is entitled to a credit against the taxes imposed by
subsections (a) and (b) of Section 201 for each qualified
employee hired by the employer to work at a location in the
State during the taxable year. If the taxpayer employs an
average of 500 or fewer employees, but more than 100 employees,
during the taxable year, then the amount of the credit shall be
$2,500 per qualified employee. If the taxpayer employs an
average of 100 or fewer employees during the taxable year, then
the amount of the credit shall be $5,000 per qualified
employee. Eligible taxpayers shall apply to the Department of
Commerce and Economic Opportunity for the credit under this
Section. The Department of Commerce and Economic Opportunity
shall award no more than $100,000,000 in tax credits under this

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Section during the term of the program. Credits shall be
awarded on a first-come-first-served basis.
(b) For partners, shareholders of subchapter S
corporations, and members 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.
(c) The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
for up to 5 succeeding taxable years. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable year
that are available to offset a liability, the earlier credit
shall be applied first.
(d) As used in this Section, "qualified employee" means a
resident of the State who is employed by the taxpayer and was
unemployed as a result of the COVID-19 pandemic immediately
prior to the date he or she was hired by the taxpayer.