Bill Text: IL HB1078 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Amends the Illinois Income Tax Act. Provides for a credit for taxpayers who hire full-time employees to fill positions at a location in a county with fewer than 250,000 inhabitants. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-01-12 - Referred to Rules Committee [HB1078 Detail]

Download: Illinois-2023-HB1078-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1078 Introduced , by Rep. Mark L. Walker SYNOPSIS AS INTRODUCED:
35 ILCS 5/240 new
Amends the Illinois Income Tax Act. Provides for a credit for taxpayers who hire full-time employees to fill positions at a location in a county with fewer than 250,000 inhabitants. Effective immediately.
LRB103 05221 SPS 50237 b
A BILL FOR
HB1078 LRB103 05221 SPS 50237 b
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 240 as follows:
(35 ILCS 5/240 new)
Sec. 240. Credit for full-time employees in a county with
fewer than 250,000 inhabitants.
(a) For taxable years beginning on or after January 1,
2023, each taxpayer that hires a full-time employee to fill a
position at a location in a county in the State with fewer than
250,000 inhabitants is entitled to a credit against the taxes
imposed by subsections (a) and (b) of Section 201 of this Act
in an amount not to exceed $5,000 per eligible employee. The
credit may be taken for the taxable year in which the employee
is hired by the taxpayer and for the next taxable year if the
employee remains employed with that taxpayer in the next
taxable year. The amount of the credit shall be $5,000 in each
taxable year, multiplied by a fraction the numerator of which
is the number of days the employee is employed by the taxpayer
during the taxable year and the denominator of which is 365.
(b) For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if

HB1078 - 2 - LRB103 05221 SPS 50237 b
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) 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 be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(d) As used in this Section, "full-time employee" means an
individual who is employed for consideration for at least 35
hours each week or who renders any other standard of service
generally accepted by industry custom or practice as full-time
employment. An individual for whom a W-2 is issued by a
Professional Employer Organization (PEO) is a full-time
employee if employed in the service of the taxpayer for
consideration for at least 35 hours each week or renders to the
taxpayer any other standard of service generally accepted by
industry custom or practice as full-time employment.
(e) This Section is exempt from the provisions of Section

HB1078 - 3 - LRB103 05221 SPS 50237 b
250.
Section 99. Effective date. This Act takes effect upon
becoming law.