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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB2698 Introduced 1/28/2014, by Sen. Jennifer Bertino-Tarrant SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
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.
LRB098 16909 HLH 51984 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
SB2698 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 days during the taxable year in which the person is employed

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by the taxpayer, and the denominator of which shall be the
total number of days 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 (i) was unemployed for an
aggregate period of at least 27 weeks ending on the Saturday
immediately preceding the date he or she was hired by the
taxpayer and (ii) is employed by the taxpayer for at least 35
hours per week at a minimum salary of $10 per hour during the
taxable year.

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