Bill Text: IL SB1448 | 2013-2014 | 98th General Assembly | Amended

---

Bill Title: Creates the Endow Illinois Tax Credit Act and amends the Illinois Income Tax Act. Requires the Department of Revenue to authorize an income tax credit to taxpayers who provide an endowment gift to a permanent endowment fund. Sets forth procedures and criteria for authorizing the credits. Provides that the aggregate amount of all credits that the Department may authorize may not exceed $10,000,000 in 2013, $25,000,000 in 2014, or $50,000,000 in 2015 and each calendar year thereafter. Provides conditions for eligibility. Requires the Department to make an annual report concerning the credits. Provides that the credit may be carried forward for 5 years. Exempts the credit from the Act's sunset provisions. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Failed) 2015-01-13 - Session Sine Die [SB1448 Detail]

Download: Illinois-2013-SB1448-Amended.html

---

Rep. Jeanne M Ives

Filed: 11/6/2013

09800SB1448ham003 LRB098 06730 HLH 49684 a
AMENDMENT TO SENATE BILL 1448
AMENDMENT NO. ______. Amend Senate Bill 1448, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 5. The Illinois Income Tax Act is amended by
changing Section 704 as follows:
(35 ILCS 5/704) (from Ch. 120, par. 7-704)
Sec. 704. Employer's Return and Payment of Tax Withheld.
(a) In general, every employer who deducts and withholds or
is required to deduct and withhold tax under this Act prior to
January 1, 2008, shall make such payments and returns as
provided in this Section.
(b) Quarter Monthly Payments: Returns. Every employer who
deducts and withholds or is required to deduct and withhold tax
under this Act shall, on or before the third banking day
following the close of a quarter monthly period, pay to the

09800SB1448ham003 - 2 - LRB098 06730 HLH 49684 a
Department or to a depositary designated by the Department,
pursuant to regulations prescribed by the Department, the taxes
so required to be deducted and withheld, whenever the aggregate
amount withheld by such employer (together with amounts
previously withheld and not paid to the Department) exceeds
$1,000. For purposes of this Section, Saturdays, Sundays, legal
holidays and local bank holidays are not banking days. A
quarter monthly period, for purposes of this subsection, ends
on the 7th, 15th, 22nd and last day of each calendar month.
Every such employer shall for each calendar quarter, on or
before the last day of the first month following the close of
such quarter, and for the calendar year, on or before January
31 of the succeeding calendar year, make a return with respect
to such taxes in such form and manner as the Department may by
regulations prescribe, and pay to the Department or to a
depositary designated by the Department all withheld taxes not
previously paid to the Department.
(c) Monthly Payments: Returns. Every employer required to
deduct and withhold tax under this Act shall, on or before the
15th day of the second and third months of each calendar
quarter, and on or before the last day of the month following
the last month of each such quarter, pay to the Department or
to a depositary designated by the Department, pursuant to
regulations prescribed by the Department, the taxes so required
to be deducted and withheld, whenever the aggregate amount
withheld by such employer (together with amounts previously

09800SB1448ham003 - 3 - LRB098 06730 HLH 49684 a
withheld and not paid to the Department) exceeds $500 but does
not exceed $1,000. Every such employer shall for each calendar
quarter, on or before the last day of the first month following
the close of such quarter, and for the calendar year, on or
before January 31 of the succeeding calendar year, make a
return with respect to such taxes in such form and manner as
the Department may by regulations prescribe, and pay to the
Department or to a depositary designated by the Department all
withheld taxes not previously paid to the Department.
(d) Annual Payments: Returns. Where the amount of
compensation paid by an employer is not sufficient to require
the withholding of tax from the compensation of any of its
employees (or where the aggregate amount withheld is less than
$500), the Department may by regulation permit such employer to
file only an annual return and to pay the taxes required to be
deducted and withheld at the time of filing such annual return.
(e) Annual Return. The Department may, as it deems
appropriate, prescribe by regulation for the filing of annual
returns in lieu of quarterly returns described in subsections
(b) and (c).
(e-5) Annual Return and Payment. On and after January 1,
1998, notwithstanding subsections (b) through (d) of this
Section, every employer who deducts and withholds or is
required to deduct and withhold tax from a person engaged in
domestic service employment, as that term is defined in Section
3510 of the Internal Revenue Code, may comply with the

09800SB1448ham003 - 4 - LRB098 06730 HLH 49684 a
requirements of this Section by filing an annual return and
paying the taxes required to be deducted and withheld on or
before the 15th day of the fourth month following the close of
the employer's taxable year. The annual return may be submitted
with the employer's individual income tax return.
(f) Magnetic Media Filing. Forms W-2 that, pursuant to the
Internal Revenue Code and regulations promulgated thereunder,
are required to be submitted to the Internal Revenue Service on
magnetic media, must also be submitted to the Department on
magnetic media for Illinois purposes, if required by the
Department.
(g) EDGE Credit assistance. Every employer who deducts and
withholds or is required to deduct and withhold tax under this
Act who retains income tax withholdings under Section 5-16 of
the Economic Development for a Growing Economy Tax Credit Act
must make a return with respect to those taxes and retained
amounts in the form and manner that the Department, by rule,
requires and pay to the Department or to a depositary
designated by the Department those withheld taxes not retained
by the taxpayer.
(Source: P.A. 95-8, eff. 6-29-07.)
Section 10. The Economic Development for a Growing Economy
Tax Credit Act is amended by adding Section 5-16 as follows:
(35 ILCS 10/5-16 new)

09800SB1448ham003 - 5 - LRB098 06730 HLH 49684 a
Sec. 5-16. Optional retention; income tax withholding.
(a) An applicant who has been awarded a Credit under this
this Act may, in the applicant's sole discretion, opt to retain
taxes withheld under Article 7 of the Illinois Income Tax Act
in lieu of an income tax credit. The amount of withheld taxes
retained by the applicant in a taxable year may not exceed the
amount of the Credit awarded by the Department for that taxable
year.
(b) Each employee whose taxes were withheld by an employer
who retains amounts under this subsection must receive credit
for 100% of the taxes withheld from his or her pay.
(c) The Department shall file annual reports with the
General Assembly and the Governor on or before January 1 each
year concerning the applicants' retention of withheld taxes
during the previous year and regarding the progress this
assistance has made in advancing economic development in
Illinois and its various regions.
Section 99. Effective date. This Act takes effect upon
becoming law.".