Bill Text: IL HB4002 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who employ a veteran with a service connected disability for a period of at least 12 continuous months immediately before the end of the taxable year. Provides that the credit is in an amount equal to the percentage of disability suffered by the veteran multiplied by the employee's wage base. Provides that the veteran's wage base is the first $5,000 dollars in wages or compensation actually paid to the employee by the employer during the taxable year.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB4002 Detail]

Download: Illinois-2023-HB4002-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4002 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 taxpayers who employ a veteran with a service connected disability for a period of at least 12 continuous months immediately before the end of the taxable year. Provides that the credit is in an amount equal to the percentage of disability suffered by the veteran multiplied by the employee's wage base. Provides that the veteran's wage base is the first $5,000 dollars in wages or compensation actually paid to the employee by the employer during the taxable year.
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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. Employment of veterans with disabilities.
(1) For taxable years beginning on or after January 1,
2024, a taxpayer is entitled to a credit against the taxes
imposed by subsections (a) and (b) of Section 201 if the
taxpayer employs a veteran with a service connected disability
and the veteran has been employed continuously by the taxpayer
for a period of at least 12 months immediately before the end
of the taxable year. The amount of the credit shall be equal to
the percentage of disability suffered by the veteran, as
certified by the United States Department of Veterans Affairs,
multiplied by the employee's wage base. As used in this
Section, the employee's wage base is the first $5,000 dollars
in wages or compensation actually paid to the employee by the
employer during the taxable year.
(b) 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

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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.
(c) For partners of partnerships and shareholders of
Subchapter S corporations, 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.
(d) This Section is exempt from the provisions of Section
250.