Bill Text: IL SB2563 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides for a credit against withholding taxes in an amount equal to 25% of the wages or salary paid by a private employer to an Illinois employee while the employee is on organ donation leave if the employer grants all of its employees the option of taking a paid leave of absence of at least 30 days for the purpose of serving as an organ donor or bone marrow donor. Provides that the credit may not exceed $20,833.33 for each employee who takes organ donation leave. Provides that such a leave of absence must be taken without loss of pay, vacation time, compensatory time, personal days, or sick time for at least the first 30 days of the leave of absence. Effective immediately.

Spectrum: Strong Partisan Bill (Democrat 11-1)

Status: (Failed) 2019-01-09 - Session Sine Die [SB2563 Detail]

Download: Illinois-2017-SB2563-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB2563 Introduced 2/6/2018, by Sen. Julie A. Morrison SYNOPSIS AS INTRODUCED:
35 ILCS 5/704A
Amends the Illinois Income Tax Act. Provides for a credit against withholding taxes in an amount equal to 25% of the wages or salary paid by a private employer to an Illinois employee while the employee is on organ donation leave if the employer grants all of its employees the option of taking a paid leave of absence of at least 30 days for the purpose of serving as an organ donor or bone marrow donor. Provides that the credit may not exceed $20,833.33 for each employee who takes organ donation leave. Provides that such a leave of absence must be taken without loss of pay, vacation time, compensatory time, personal days, or sick time for at least the first 30 days of the leave of absence. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
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
changing Section 704A as follows:
(35 ILCS 5/704A)
Sec. 704A. 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 on or
after January 1, 2008 shall make those payments and returns as
provided in this Section.
(b) Returns. Every employer shall, in the form and manner
required by the Department, make returns with respect to taxes
withheld or required to be withheld under this Article 7 for
each quarter beginning on or after January 1, 2008, on or
before the last day of the first month following the close of
that quarter.
(c) Payments. With respect to amounts withheld or required
to be withheld on or after January 1, 2008:
(1) Semi-weekly payments. For each calendar year, each
employer who withheld or was required to withhold more than
$12,000 during the one-year period ending on June 30 of the
immediately preceding calendar year, payment must be made:

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(A) on or before each Friday of the calendar year,
for taxes withheld or required to be withheld on the
immediately preceding Saturday, Sunday, Monday, or
Tuesday;
(B) on or before each Wednesday of the calendar
year, for taxes withheld or required to be withheld on
the immediately preceding Wednesday, Thursday, or
Friday.
Beginning with calendar year 2011, payments made under
this paragraph (1) of subsection (c) must be made by
electronic funds transfer.
(2) Semi-weekly payments. Any employer who withholds
or is required to withhold more than $12,000 in any quarter
of a calendar year is required to make payments on the
dates set forth under item (1) of this subsection (c) for
each remaining quarter of that calendar year and for the
subsequent calendar year.
(3) Monthly payments. Each employer, other than an
employer described in items (1) or (2) of this subsection,
shall pay to the Department, on or before the 15th day of
each month the taxes withheld or required to be withheld
during the immediately preceding month.
(4) Payments with returns. Each employer shall pay to
the Department, on or before the due date for each return
required to be filed under this Section, any tax withheld
or required to be withheld during the period for which the

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return is due and not previously paid to the Department.
(d) Regulatory authority. The Department may, by rule:
(1) Permit employers, in lieu of the requirements of
subsections (b) and (c), to file annual returns due on or
before January 31 of the year for taxes withheld or
required to be withheld during the previous calendar year
and, if the aggregate amounts required to be withheld by
the employer under this Article 7 (other than amounts
required to be withheld under Section 709.5) do not exceed
$1,000 for the previous calendar year, to pay the taxes
required to be shown on each such return no later than the
due date for such return.
(2) Provide that any payment required to be made under
subsection (c)(1) or (c)(2) is deemed to be timely to the
extent paid by electronic funds transfer on or before the
due date for deposit of federal income taxes withheld from,
or federal employment taxes due with respect to, the wages
from which the Illinois taxes were withheld.
(3) Designate one or more depositories to which payment
of taxes required to be withheld under this Article 7 must
be paid by some or all employers.
(4) Increase the threshold dollar amounts at which
employers are required to make semi-weekly payments under
subsection (c)(1) or (c)(2).
(e) Annual return and payment. Every employer who deducts
and withholds or is required to deduct and withhold tax from a

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person engaged in domestic service employment, as that term is
defined in Section 3510 of the Internal Revenue Code, may
comply with the requirements of this Section with respect to
such employees 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 Department may allow the employer's return to
be submitted with the employer's individual income tax return
or to be submitted with a return due from the employer under
Section 1400.2 of the Unemployment Insurance Act.
(f) Magnetic media and electronic filing. With respect to
taxes withheld in calendar years prior to 2017, any W-2 Form
that, under the Internal Revenue Code and regulations
promulgated thereunder, is required to be submitted to the
Internal Revenue Service on magnetic media or electronically
must also be submitted to the Department on magnetic media or
electronically for Illinois purposes, if required by the
Department.
With respect to taxes withheld in 2017 and subsequent
calendar years, the Department may, by rule, require that any
return (including any amended return) under this Section and
any W-2 Form that is required to be submitted to the Department
must be submitted on magnetic media or electronically.
The due date for submitting W-2 Forms shall be as
prescribed by the Department by rule.
(g) For amounts deducted or withheld after December 31,

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2009, a taxpayer who makes an election under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act for a taxable year shall be allowed a credit
against payments due under this Section for amounts withheld
during the first calendar year beginning after the end of that
taxable year equal to the amount of the credit for the
incremental income tax attributable to full-time employees of
the taxpayer awarded to the taxpayer by the Department of
Commerce and Economic Opportunity under the Economic
Development for a Growing Economy Tax Credit Act for the
taxable year and credits not previously claimed and allowed to
be carried forward under Section 211(4) of this Act as provided
in subsection (f) of Section 5-15 of the Economic Development
for a Growing Economy Tax Credit Act. The credit or credits may
not reduce the taxpayer's obligation for any payment due under
this Section to less than zero. If the amount of the credit or
credits exceeds the total payments due under this Section with
respect to amounts withheld during the calendar year, the
excess may be carried forward and applied against the
taxpayer's liability under this Section in the succeeding
calendar years as allowed to be carried forward under paragraph
(4) of Section 211 of this Act. The credit or credits shall be
applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable year
that are available to offset a liability, the earlier credit
shall be applied first. Each employer who deducts and withholds

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or is required to deduct and withhold tax under this Act and
who retains income tax withholdings under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act must make a return with respect to such 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. For purposes of this subsection
(g), the term taxpayer shall include taxpayer and members of
the taxpayer's unitary business group as defined under
paragraph (27) of subsection (a) of Section 1501 of this Act.
This Section is exempt from the provisions of Section 250 of
this Act. No credit awarded under the Economic Development for
a Growing Economy Tax Credit Act for agreements entered into on
or after January 1, 2015 may be credited against payments due
under this Section.
(h) An employer may claim a credit against payments due
under this Section for amounts withheld during the first
calendar year ending after the date on which a tax credit
certificate was issued under Section 35 of the Small Business
Job Creation Tax Credit Act. The credit shall be equal to the
amount shown on the certificate, but may not reduce the
taxpayer's obligation for any payment due under this Section to
less than zero. If the amount of the credit exceeds the total
payments due under this Section with respect to amounts
withheld during the calendar year, the excess may be carried

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forward and applied against the taxpayer's liability under this
Section in the 5 succeeding calendar years. The credit shall be
applied to the earliest year for which there is a tax
liability. If there are credits from more than one calendar
year that are available to offset a liability, the earlier
credit shall be applied first. This Section is exempt from the
provisions of Section 250 of this Act.
(i) If a private employer grants all of its employees the
option of taking a paid leave of absence of at least 30 days
for the purpose of serving as an organ donor or bone marrow
donor, then the private employer may take a credit against the
payments due under this Section in an amount equal to 25% of
the wages or salary paid to an Illinois employee while the
employee is on organ donation leave, not to exceed $20,833.33
for each employee who takes organ donation leave. To be
eligible for the credit, such a leave of absence must be taken
without loss of pay, vacation time, compensatory time, personal
days, or sick time for at least the first 30 days of the leave
of absence. The private employer is encouraged to adopt rules
governing organ donation leave, including rules that (i)
establish conditions and procedures for requesting and
approving leave and (ii) require medical documentation of the
proposed organ or bone marrow donation before leave is approved
by the private employer. The credit under this subsection (i)
shall be taken within one year after the date upon which the
organ donation leave begins.

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Nothing in this subsection (i) prohibits a private employer
from providing an unpaid leave of absence to its employees for
the purpose of serving as an organ donor or bone marrow donor;
however, if the employer's policy provides for fewer than 30
days of paid leave for organ or bone marrow donation, then the
employer shall not be eligible for the credit under this
Section.
As used in this subsection (i):
"Organ" means any biological tissue of the human body
that may be donated by a living donor, including, but not
limited to, the kidney, liver, lung, pancreas, intestine,
bone, skin, or any subpart of those organs.
"Organ donor" means a person from whose body an organ
is taken to be transferred to the body of another person.
"Private employer" means a sole proprietorship,
corporation, partnership, limited liability company, or
other entity with one or more employees. "Private employer"
does not include a municipality, county, State agency, or
other public employer.
This subsection (i) is exempt from the provisions of
Section 250 of this Act.
(Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17;
revised 11-6-17.)
Section 99. Effective date. This Act takes effect upon
becoming law.