Bill Text: IL HB1497 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that a taxpayer who owns and operates a business in Illinois shall be allowed a credit in the amount of $3,750 per employee hired by the taxpayer and retained for 2 years. Provides that the credit may be allowed in the amount of $2,500 in the year the employee is hired and in the amount of $1,250 in the second year of employment. Provides that if the amount of the credit exceeds the taxpayer's liability for the taxable year, the excess may be carried forward and applied to the tax liability of the next 5 years. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB1497 Detail]

Download: Illinois-2013-HB1497-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB1497 Introduced , by Rep. Dwight Kay SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
Amends the Illinois Income Tax Act. Provides that a taxpayer who owns and operates a business in Illinois shall be allowed a credit in the amount of $3,750 per employee hired by the taxpayer and retained for 2 years. Provides that the credit may be allowed in the amount of $2,500 in the year the employee is hired and in the amount of $1,250 in the second year of employment. Provides that if the amount of the credit exceeds the taxpayer's liability for the taxable year, the excess may be carried forward and applied to the tax liability of the next 5 years. 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 224 as follows:
(35 ILCS 5/224 new)
Sec. 224. Job creation credit. For taxable years beginning
on or after January 1, 2013, each taxpayer who owns and
operates a business in Illinois shall be allowed a credit
against the tax imposed by subsections (a) and (b) of Section
201 of this Act in the amount of $3,750 per employee hired by
the taxpayer and retained for 2 years. Of the $3,750 amount, an
amount equal to $2,500 may be allowed as a credit for the
taxable year in which the employee was hired if the employee
remains employed by the employer on the last day of that
taxable year, and an amount equal to $1,250 may be allowed as a
credit for the following taxable year if the employee remains
employed by the employer on the last day of that taxable year.
A credit under this Section may not exceed the taxpayer's
Illinois income tax liability for the taxable year. 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

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year. The credit 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. In the case of a
partnership or Subchapter S Corporation, the credit is allowed
to the partners or shareholders 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. This Section is exempt from the provisions of Section 250
of this Act.
Section 99. Effective date. This Act takes effect upon
becoming law.