Bill Text: IL SB2075 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 8-1)

Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB2075 Detail]

Download: Illinois-2023-SB2075-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2075 Introduced 2/9/2023, by Sen. Seth Lewis SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
35 ILCS 5/235 new
35 ILCS 5/240 new
Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately.
LRB103 27704 HLH 54081 b
A BILL FOR
SB2075 LRB103 27704 HLH 54081 b
AN ACT concerning State government.
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 Sections 234, 235, and 240 as follows:
(35 ILCS 5/234 new)
Sec. 234. Legacy credit.
(a) For taxable years beginning on or after January 1,
2024, any sole proprietorship, limited liability company, or
corporation that is headquartered in the State is entitled to
a credit against the taxes imposed by subsections (a) and (b)
of Section 201 in an amount equal to $100 multiplied by the
number of years during which the taxpayer has been
headquartered in Illinois as of the last day of the taxable
year.
(b) If the taxpayer is a Subchapter S corporation, the
credit shall be allowed to shareholders in accordance with the
determination of income and distributive share of income under
subchapter S of the Internal Revenue Code.
(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

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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.
(35 ILCS 5/235 new)
Sec. 235. Employee tax credit.
(a) For taxable years beginning on or after January 1,
2024, any sole proprietorship, limited liability company, or
corporation that has a business location in the State is
entitled to a credit against the taxes imposed by subsections
(a) and (b) of Section 201 in an amount equal to $100 for each
employee who is a resident of the State and is on the
employer's payroll with 6 or more months of consecutive
employment with the employer at the end of the taxable year.
(b) If the taxpayer is a Subchapter S corporation, the
credit shall be allowed to shareholders in accordance with the
determination of income and distributive share of income under
subchapter S of the Internal Revenue Code.
(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

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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.
(35 ILCS 5/240 new)
Sec. 240. Collective bargaining employee tax credit.
(a) For taxable years beginning on or after January 1,
2024, any sole proprietorship, limited liability company, or
corporation that has a business location in the State is
entitled to a credit against the taxes imposed by subsections
(a) and (b) of Section 201 in an amount equal to $25 for each
employee who is a resident of the State, qualifies under the
definitions of the National Labor Standards Board, and has 6
or more months of consecutive employment with the employer at
the end of the taxable year.
(b) If the taxpayer is a Subchapter S corporation, the
credit shall be allowed to shareholders in accordance with the
determination of income and distributive share of income under
subchapter S of the Internal Revenue Code.
(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

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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.
(d) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.