Bill Text: IL HB0390 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Authorizes a credit to taxpayers for 10% of stipends or salaries paid to qualified college interns. Limits the credit to stipends and salaries paid to 5 interns each year, and limits total credits to $3,000 for all years combined. Defines a "qualified college intern". Provides that the credit may not reduce the taxpayer's liability to less than zero and may not be carried forward or back. Exempt from the Act's sunset provisions. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB0390 Detail]

Download: Illinois-2009-HB0390-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0390 Introduced 2/3/2009, by Rep. David Reis SYNOPSIS AS INTRODUCED:
35 ILCS 5/218 new
Amends the Illinois Income Tax Act. Authorizes a credit to taxpayers for 10% of stipends or salaries paid to qualified college interns. Limits the credit to stipends and salaries paid to 5 interns each year, and limits total credits to $3,000 for all years combined. Defines a "qualified college intern". Provides that the credit may not reduce the taxpayer's liability to less than zero and may not be carried forward or back. Exempt from the Act's sunset provisions. 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 218 as follows:
(35 ILCS 5/218 new)
Sec. 218. Credit for internship employment.
(a) For each taxable year ending on or after December 31,
2009, 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 10% of the stipend or salary paid by the
taxpayer to up to 5 qualified college interns during the
taxable year, but not to exceed $3,000 in total credits under
this Section for all taxable years combined. 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 college
intern" means an enrolled student in an institution of higher

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education or vocational technical education program (i) who is
seeking a degree or certification of completion in a major
field of study closely related to the work experience performed
for the taxpayer, (ii) whose internship is taken for academic
credit or counts toward the completion of a vocational
technical education program, (iii) who is supervised and
evaluated by the taxpayer, and (iv) whose position is located
in Illinois.
(c) 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 not be carried forward or carried back.
(d) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.