Bill Text: IL HB3076 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit and a credit against insurance premium taxes for business entities for the cost of providing certain commuter benefits to employees. Provides that the credit shall be equal to 50% of the cost of providing the eligible commuter benefits, but not to exceed $100 per individual employee per month. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB3076 Detail]

Download: Illinois-2023-HB3076-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3076 Introduced , by Rep. Justin Slaughter SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
215 ILCS 5/121-2.08 from Ch. 73, par. 733-2.08
Amends the Illinois Income Tax Act. Creates an income tax credit and a credit against insurance premium taxes for business entities for the cost of providing certain commuter benefits to employees. Provides that the credit shall be equal to 50% of the cost of providing the eligible commuter benefits, but not to exceed $100 per individual employee per month. Effective immediately.
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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. Commuter benefits credit.
(a) As used in this Section:
"Business entity" means (i) A person conducting or
operating a trade or business in the State; or (ii) an
organization operating in the State that is exempt from
taxation under § 501(c)(3) or (4) of the Internal Revenue
Code.
"Instrument" means a pass, token, fare-card, voucher, or
similar item.
"Ride-sharing" means for-profit driving services, taxis,
rental car agencies or noncommercial transportation services.
(b) A business entity interested in claiming the tax
credits for the cost of providing commuter benefits to its
employees must complete the Illinois Commuter Tax Credit
Registration Form for each tax year and submit it to the
Department. The registration form should be filed with the
Department as soon as possible after the decision is made to

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seek qualification for the credit, but no later than the last
day of the taxable year in which the credit will be claimed.
(c) For taxable years beginning after December 31, 2023, a
business entity may claim a credit against the tax imposed by
subsections (a) and (b) of Section 201 of this Act or the tax
imposed by subsection (c) of Section 121-2.08 of the Illinois
Insurance Code for the cost of providing either or both of the
following commuter benefits to its employees:
(1) a vanpool that meets the following criteria and is
provided for the purpose of travel between an employee's
residence and place of employment if the transportation is
to or from a location in Illinois: (A) the vehicle must
have seating capacity for at least 6 adult individuals;
(B) at least 80% of the annual mileage incurred must be
between the employees' residences and their places of
employment; and (C) the number of employees transported
must be at least one-half of that vehicle's adult seating
capacity; or
(2) an instrument that entitles an employee, at no
added cost or at a reduced fare, to transportation to or
from a location in Illinois on a publicly-owned or
privately-owned mass transit system, taxi service, or
ride-sharing service.
The credit shall be equal to 50% of the cost of providing
the eligible commuter benefits. The credit allowed may not
exceed $100 per individual employee per month. The total

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credit allowed may not exceed the total tax otherwise payable
by the business entity for that taxable year determined after
the application of any other credit, and the unused amount of
the credit may not be carried over to any other taxable year.
(d) Partners, shareholders of subchapter S corporations,
and owners of limited liability companies (if the limited
liability company is treated as a partnership for purposes of
federal and State income taxation) are entitled to a credit
under this Section to be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 703 and subchapter S of the Internal Revenue
Code.
(e) This Section is exempt from the provisions of Section
250.
Section 10. The Illinois Insurance Code is amended by
changing Section 121-2.08 as follows:
(215 ILCS 5/121-2.08) (from Ch. 73, par. 733-2.08)
Sec. 121-2.08. Transactions in this State involving
contracts of insurance independently procured directly from an
unauthorized insurer by industrial insureds.
(a) As used in this Section:
"Exempt commercial purchaser" means exempt commercial
purchaser as the term is defined in subsection (1) of Section
445 of this Code.

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"Home state" means home state as the term is defined in
subsection (1) of Section 445 of this Code.
"Industrial insured" means an insured:
(i) that procures the insurance of any risk or risks
of the kinds specified in Classes 2 and 3 of Section 4 of
this Code by use of the services of a full-time employee
who is a qualified risk manager or the services of a
regularly and continuously retained consultant who is a
qualified risk manager;
(ii) that procures the insurance directly from an
unauthorized insurer without the services of an
intermediary insurance producer; and
(iii) that is an exempt commercial purchaser whose
home state is Illinois.
"Insurance producer" means insurance producer as the term
is defined in Section 500-10 of this Code.
"Qualified risk manager" means qualified risk manager as
the term is defined in subsection (1) of Section 445 of this
Code.
"Safety-Net Hospital" means an Illinois hospital that
qualifies as a Safety-Net Hospital under Section 5-5e.1 of the
Illinois Public Aid Code.
"Unauthorized insurer" means unauthorized insurer as the
term is defined in subsection (1) of Section 445 of this Code.
(b) For contracts of insurance effective January 1, 2015
or later, within 90 days after the effective date of each

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contract of insurance issued under this Section, the insured
shall file a report with the Director by submitting the report
to the Surplus Line Association of Illinois in writing or in a
computer readable format and provide information as designated
by the Surplus Line Association of Illinois. The information
in the report shall be substantially similar to that required
for surplus line submissions as described in subsection (5) of
Section 445 of this Code. Where applicable, the report shall
satisfy, with respect to the subject insurance, the reporting
requirement of Section 12 of the Fire Investigation Act.
(c) For contracts of insurance effective January 1, 2015
through December 31, 2017, within 30 days after filing the
report, the insured shall pay to the Director for the use and
benefit of the State a sum equal to the gross premium of the
contract of insurance multiplied by the surplus line tax rate,
as described in paragraph (3) of subsection (a) of Section 445
of this Code, and shall pay the fire marshal tax that would
otherwise be due annually in March for insurance subject to
tax under Section 12 of the Fire Investigation Act. For
contracts of insurance effective January 1, 2018 or later,
within 30 days after filing the report, the insured shall pay
to the Director for the use and benefit of the State a sum
equal to 0.5% of the gross premium of the contract of
insurance, and shall pay the fire marshal tax that would
otherwise be due annually in March for insurance subject to
tax under Section 12 of the Fire Investigation Act. For

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contracts of insurance effective January 1, 2015 or later,
within 30 days after filing the report, the insured shall pay
to the Surplus Line Association of Illinois a countersigning
fee that shall be assessed at the same rate charged to members
pursuant to subsection (4) of Section 445.1 of this Code. An
insured is entitled to a credit against the tax imposed under
this Section as provided in Section 232 of the Illinois Income
Tax Act.
(d) For contracts of insurance effective January 1, 2015
or later, the insured shall withhold the amount of the taxes
and countersignature fee from the amount of premium charged by
and otherwise payable to the insurer for the insurance. If the
insured fails to withhold the tax and countersignature fee
from the premium, then the insured shall be liable for the
amounts thereof and shall pay the amounts as prescribed in
subsection (c) of this Section.
(e) Contracts of insurance with an industrial insured that
qualifies as a Safety-Net Hospital are not subject to
subsections (b) through (d) of this Section.
(Source: P.A. 100-535, eff. 9-22-17; 100-1118, eff. 11-27-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.