Bill Text: IL SB2698 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the Illinois Income Tax Act. Provides that each taxpayer who employs a long-term unemployed person during the taxable year is entitled to an income tax credit of: (1) $500 in the taxable year in which the long-term unemployed person is initially hired by the taxpayer; (2) $750 in the first taxable year after the long-term unemployed person is initially hired by the taxpayer; and (3) $1,250 in the second taxable year after the long-term unemployed person is initially hired by the taxpayer. Provides that the taxpayer may receive a partial credit if the person is employed by the taxpayer for only part of a taxable year. Provides that the credit may be carried forward. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 14-3)

Status: (Failed) 2015-01-13 - Session Sine Die [SB2698 Detail]

Download: Illinois-2013-SB2698-Engrossed.html

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SB2698 Engrossed LRB098 16909 HLH 51984 b
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 224 as follows:
(35 ILCS 5/224 new)
Sec. 224. Credit for hiring a long-term unemployed person.
(a) For each taxable year beginning on or after January 1,
2015, each taxpayer who employs a long-term unemployed person
during the taxable year is entitled to a credit against the tax
imposed by subsections (a) and (b) of Section 201 of this Act
as provided in this Section. The amount of the credit is as
follows: (1) $500 in the taxable year in which the long-term
unemployed person is initially hired by the taxpayer; (2) $750
in the first taxable year after the long-term unemployed person
is initially hired by the taxpayer; and (3) $1,250 in the
second taxable year after the long-term unemployed person is
initially hired by the taxpayer. If the long-term unemployed
person is employed by the taxpayer for only part of a taxable
year, then the amount of the credit shall be the maximum credit
allowed under this subsection (a) for the taxable year,
multiplied by a fraction, the numerator of which is the number
of weeks during the taxable year in which the person is

SB2698 Engrossed - 2 - LRB098 16909 HLH 51984 b
employed by the taxpayer, and the denominator of which shall be
the total number of weeks in the taxable year.
(b) For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, 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.
(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) For the purposes of this Section:
"Long-term unemployed person" means an individual who:
(1) was unemployed for a period of at least 27
consecutive weeks ending on the Saturday immediately
preceding the date he or she was hired by the taxpayer;
(2) was an Illinois resident on the date he or she was
hired by the taxpayer;

SB2698 Engrossed - 3 - LRB098 16909 HLH 51984 b
(3) is employed by the taxpayer during the taxable year
as a full-time employee; and
(4) was not enrolled as a full-time student at a public
or private high school, community college, or university at
any point during the 27-week period immediately preceding
the date he or she was hired by the taxpayer.
"Full-time employee" means an individual who is employed
for a wage of at least $10 per hour for at least 35 hours each
week or who renders any other standard of service generally
accepted by industry custom or practice as full-time
employment. An individual for whom a W-2 is issued by a
Professional Employer Organization is a full-time employee if
he or she is employed in the service of the taxpayer for a wage
of at least $10 per hour for at least 35 hours each week or
renders any other standard of service generally accepted by
industry custom or practice as full-time employment.
(e) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.