Bill Text: IL HB4128 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Veterans Day Paid Leave Act. On and after January 1, 2025, requires each employer to provide each employee who is a veteran with a paid day off on Veterans Day if the employee would otherwise be required to work on that day. Provides that the employee must provide notice to the employer that he or she intends to take time off on Veterans Day and must provide the employer with documentation verifying that he or she is a veteran. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 100% of the wages paid by the taxpayer to a veteran as a result of the paid day off required under the Veterans Day Paid Leave Act. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-04-05 - House Committee Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB4128 Detail]

Download: Illinois-2023-HB4128-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4128 Introduced , by Rep. Kevin Schmidt SYNOPSIS AS INTRODUCED:
New Act
35 ILCS 5/241 new
Creates the Veterans Day Paid Leave Act. On and after January 1, 2025, requires each employer to provide each employee who is a veteran with a paid day off on Veterans Day if the employee would otherwise be required to work on that day. Provides that the employee must provide notice to the employer that he or she intends to take time off on Veterans Day and must provide the employer with documentation verifying that he or she is a veteran. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 100% of the wages paid by the taxpayer to a veteran as a result of the paid day off required under the Veterans Day Paid Leave Act. Effective immediately.
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A BILL FOR
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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1. VETERANS DAY PAID LEAVE ACT
Section 1-1. Short title. This Act may be cited as the
Veterans Day Paid Leave Act.
Section 1-5. Definitions. As used in this Act:
"Employer" means any public or private employer with a
place of business in this State.
"Veteran" means an Illinois resident who: (i) is employed
at a place of business in this State; (ii) has served as a
member of the United States Armed Forces on active duty or
State active duty, as a member of the Illinois National Guard,
or as a member of the United States Reserve Forces; and (iii)
was discharged or separated under honorable conditions.
"Veterans Day" means the eleventh day of November of each
year.
Section 1-10. Paid leave for Veterans Day.
(a) Notwithstanding any other provision of law, on and
after January 1, 2025, each employer shall provide each
employee who is a veteran with one paid day off each year on

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Veterans Day if the employee would otherwise be required to
work on that day. The employee must provide the employer with
at least 30 calendar days' notice that the employee intends to
take time off on Veterans Day. The employee must also provide
the employer with documentation verifying that the employee is
a veteran.
(b) If the employer is unable to provide time off to each
veteran, as provided in subsection (a), without experiencing
significant economic or operational disruption, then the
employer may deny such a time off request, but only to the
extent necessary to avoid the significant economic or
operational disruption. If the employer denies a time off
request under this subsection, the employer must notify the
employee at least 14 calendar days prior to Veterans Day that
his or her request has been denied and must make a good faith
effort to provide the employee with a substitute day on which
the employee may receive paid time off.
ARTICLE 5. INCOME TAX PROVISIONS
Section 5-5. The Illinois Income Tax Act is amended by
adding Section 241 as follows:
(35 ILCS 5/241 new)
Sec. 241. Wages paid to veterans under the Veterans Day
Paid Leave Act.

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(a) For each taxable year beginning on or after January 1,
2025, each taxpayer is entitled to a credit against the tax
imposed by subsections (a) and (b) of Section 201 of this Act
in an amount equal to 100% of the wages paid by the taxpayer
during the taxable year to veterans as a result of the paid day
off required under the Veterans Day Paid Leave Act. 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.
(b) A taxpayer claiming the credit provided by this
Section shall maintain and record such information as the
Department may require by rule regarding the credit claimed
under this Section.
(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) This Section is exempt from the provisions of Section
250.

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ARTICLE 99. EFFECTIVE DATE
Section 99-99. Effective date. This Act takes effect upon
becoming law.