Bill Text: IL HB3121 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayer-employers that offer health insurance to all of their full-time or full-time equivalent employees in an amount equal to a percentage of the premiums paid by the taxpayer. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3121 Detail]

Download: Illinois-2021-HB3121-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB3121 Introduced , by Rep. Edgar Gonzalez, Jr. SYNOPSIS AS INTRODUCED:
35 ILCS 5/232 new
Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayer-employers that offer health insurance to all of their full-time or full-time equivalent employees in an amount equal to a percentage of the premiums paid by the taxpayer. Effective immediately.
LRB102 10903 HLH 16233 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB3121 LRB102 10903 HLH 16233 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 232 as follows:
(35 ILCS 5/232 new)
Sec. 232. Tax credit for employer-sponsored health
insurance.
(a) For taxable years beginning on or after January 1,
2022, each taxpayer-employer that offers health insurance to
all of its full-time or full-time equivalent employees is
entitled to a credit against the taxes imposed by subsections
(a) and (b) of Section 201 as set forth in this Section. The
taxpayer may not claim a credit under this Section if those
amounts were not included in the taxpayer's federal adjusted
gross income.
(b) The amount of the credit shall be as follows:
(1) if the taxpayer employs an average of 25 or fewer
employees during the taxable year, then the amount of the
credit shall be 50% of the amount paid by the taxpayer as
premiums for its employer-sponsored health insurance;
(2) if the taxpayer employs an average of more than 25
employees during the taxable year, then the credit shall

HB3121 - 2 - LRB102 10903 HLH 16233 b
be 50% of the amount paid by the taxpayer as premiums for
its employer-sponsored health insurance for the first 25
employees and 25% of the amount paid by the taxpayer as
premiums for the remainder of its employees.
(c) The tax credit may not reduce the taxpayer's liability
to less than zero. If the amount of the tax 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 credit must be applied
to the earliest year for which there is a tax liability. If
there are credits from more than one tax year that are
available to offset a liability, then the earlier credit must
be applied first.
(d) For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for the
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.
(e) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.