Bill Text: IL HB1410 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for businesses with an average of 100 or fewer full-time employees during the taxable year in an amount equal to 50% of the costs incurred by the business in offering a paid family leave program to all of its full-time employees.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB1410 Detail]

Download: Illinois-2023-HB1410-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1410 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
Amends the Illinois Income Tax Act. Creates an income tax credit for businesses with an average of 100 or fewer full-time employees during the taxable year in an amount equal to 50% of the costs incurred by the business in offering a paid family leave program to all of its full-time employees.
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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 234 as follows:
(35 ILCS 5/234 new)
Sec. 234. Credit for paid family leave.
(a) For taxable years beginning on or after January 1,
2024, each business with an average of 100 or fewer full-time
employees during the taxable year is entitled to a credit
against the taxes imposed by subsections (a) and (b) of
Section 201 in an amount equal to 50% of the costs incurred by
the business in offering a paid family leave program to all of
its full-time employees. The business shall submit
documentation of the paid family leave program in the form and
manner required by the Department by rule.
(b) 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 is 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

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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.
(e) This Section is exempt from the provisions of Section
250.