Bill Text: IL SB2925 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Provides that, in the case of an employee participating in the SkillBridge program, the credit shall be equal to $3,500 per qualifying apprentice. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Failed) 2021-01-13 - Session Sine Die [SB2925 Detail]

Download: Illinois-2019-SB2925-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB2925 Introduced 2/3/2020, by Sen. Paul Schimpf SYNOPSIS AS INTRODUCED:
35 ILCS 5/231
Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Provides that, in the case of an employee participating in the SkillBridge program, the credit shall be equal to $3,500 per qualifying apprentice. 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 and renumbering Section 229, as added by Public Act
101-207, as follows:
(35 ILCS 5/231)
Sec. 231 229. Apprenticeship education expense credit.
(a) As used in this Section:
"Department" means the Department of Commerce and Economic
Opportunity.
"Employer" means an Illinois taxpayer who is the employer
of the qualifying apprentice.
"Qualifying apprentice" means an individual who: (i) is a
resident of the State of Illinois; (ii) is at least 16 years
old at the close of the school year for which a credit is
sought; (iii) during the school year for which a credit is
sought, was a full-time apprentice enrolled in an
apprenticeship program which is registered with the United
States Department of Labor, Office of Apprenticeship; and (iv)
is employed in Illinois by the taxpayer who is the employer.
"Qualifying apprentice" also means an apprentice who is
employed in Illinois by the taxpayer through the United States

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Department of Defense SkillBridge internship program.
"Qualified education expense" means the amount incurred on
behalf of a qualifying apprentice not to exceed $3,500 for
tuition, book fees, and lab fees at the school or community
college in which the apprentice is enrolled during the regular
school year.
"School" means any public or nonpublic secondary school in
Illinois that is: (i) an institution of higher education that
provides a program that leads to an industry-recognized
postsecondary credential or degree; (ii) an entity that carries
out programs registered under the federal National
Apprenticeship Act; or (iii) another public or private provider
of a program of training services, which may include a joint
labor-management organization.
(b) For taxable years beginning on or after January 1,
2020, and beginning on or before January 1, 2025, the employer
of one or more qualifying apprentices shall be allowed a credit
against the tax imposed by subsections (a) and (b) of Section
201 of the Illinois Income Tax Act for qualified education
expenses incurred on behalf of a qualifying apprentice. The
credit shall be equal to 100% of the qualified education
expenses, but in no event may the total credit amount awarded
to a single taxpayer in a single taxable year exceed $3,500 per
qualifying apprentice. In the case of an employee participating
in the SkillBridge program, the credit shall be equal to $3,500
per qualifying apprentice. A taxpayer shall be entitled to an

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additional $1,500 credit against the tax imposed by subsections
(a) and (b) of Section 201 of the Illinois Income Tax Act if
(i) the qualifying apprentice resides in an underserved area as
defined in Section 5-5 of the Economic Development for a
Growing Economy Tax Credit Act during the school year for which
a credit is sought by an employer or (ii) the employer's
principal place of business is located in an underserved area,
as defined in Section 5-5 of the Economic Development for a
Growing Economy Tax Credit Act. In no event shall a credit
under this Section reduce the taxpayer's liability under this
Act to less than zero. 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) The Department shall implement a program to certify
applicants for an apprenticeship credit under this Section.
Upon satisfactory review, the Department shall issue a tax
credit certificate to an employer incurring costs on behalf of
a qualifying apprentice stating the amount of the tax credit to
which the employer is entitled. If the employer is seeking a
tax credit for multiple qualifying apprentices, the Department
may issue a single tax credit certificate that encompasses the

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aggregate total of tax credits for qualifying apprentices for a
single employer.
(d) The Department, in addition to those powers granted
under the Civil Administrative Code of Illinois, is granted and
shall have all the powers necessary or convenient to carry out
and effectuate the purposes and provisions of this Section,
including, but not limited to, power and authority to:
(1) Adopt rules deemed necessary and appropriate for
the administration of this Section; establish forms for
applications, notifications, contracts, or any other
agreements; and accept applications at any time during the
year and require that all applications be submitted via the
Internet. The Department shall require that applications
be submitted in electronic form.
(2) Provide guidance and assistance to applicants
pursuant to the provisions of this Section and cooperate
with applicants to promote, foster, and support job
creation within the State.
(3) Enter into agreements and memoranda of
understanding for participation of and engage in
cooperation with agencies of the federal government, units
of local government, universities, research foundations or
institutions, regional economic development corporations,
or other organizations for the purposes of this Section.
(4) Gather information and conduct inquiries, in the
manner and by the methods it deems desirable, including,

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without limitation, gathering information with respect to
applicants for the purpose of making any designations or
certifications necessary or desirable or to gather
information in furtherance of the purposes of this Act.
(5) Establish, negotiate, and effectuate any term,
agreement, or other document with any person necessary or
appropriate to accomplish the purposes of this Section, and
consent, subject to the provisions of any agreement with
another party, to the modification or restructuring of any
agreement to which the Department is a party.
(6) Provide for sufficient personnel to permit
administration, staffing, operation, and related support
required to adequately discharge its duties and
responsibilities described in this Section from funds made
available through charges to applicants or from funds as
may be appropriated by the General Assembly for the
administration of this Section.
(7) Require applicants, upon written request, to issue
any necessary authorization to the appropriate federal,
State, or local authority or any other person for the
release to the Department of information requested by the
Department, including, but not be limited to, financial
reports, returns, or records relating to the applicant or
to the amount of credit allowable under this Section.
(8) Require that an applicant shall, at all times, keep
proper books of record and account in accordance with

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generally accepted accounting principles consistently
applied, with the books, records, or papers related to the
agreement in the custody or control of the applicant open
for reasonable Department inspection and audits,
including, without limitation, the making of copies of the
books, records, or papers.
(9) Take whatever actions are necessary or appropriate
to protect the State's interest in the event of bankruptcy,
default, foreclosure, or noncompliance with the terms and
conditions of financial assistance or participation
required under this Section or any agreement entered into
under this Section, including the power to sell, dispose
of, lease, or rent, upon terms and conditions determined by
the Department to be appropriate, real or personal property
that the Department may recover as a result of these
actions.
(e) The Department, in consultation with the Department of
Revenue, shall adopt rules to administer this Section. The
aggregate amount of the tax credits that may be claimed under
this Section for qualified education expenses incurred by an
employer on behalf of a qualifying apprentice shall be limited
to $5,000,000 per calendar year. If applications for a greater
amount are received, credits shall be allowed on a first-come
first-served basis, based on the date on which each properly
completed application for a certificate of eligibility is
received by the Department. If more than one certificate is

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received on the same day, the credits will be awarded based on
the time of submission for that particular day.
(f) An employer may not sell or otherwise transfer a credit
awarded under this Section to another person or taxpayer.
(g) The employer shall provide the Department such
information as the Department may require, including but not
limited to: (i) the name, age, and taxpayer identification
number of each qualifying apprentice employed by the taxpayer
during the taxable year; (ii) the amount of qualified education
expenses incurred with respect to each qualifying apprentice;
and (iii) the name of the school at which the qualifying
apprentice is enrolled and the qualified education expenses are
incurred.
(h) On or before July 1 of each year, the Department shall
report to the Governor and the General Assembly on the tax
credit certificates awarded under this Section for the prior
calendar year. The report must include:
(1) the name of each employer awarded or allocated a
credit;
(2) the number of qualifying apprentices for whom the
employer has incurred qualified education expenses;
(3) the North American Industry Classification System
(NAICS) code applicable to each employer awarded or
allocated a credit;
(4) the amount of the credit awarded or allocated to
each employer;

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(5) the total number of employers awarded or allocated
a credit;
(6) the total number of qualifying apprentices for whom
employers receiving credits under this Section incurred
qualified education expenses; and
(7) the average cost to the employer of all
apprenticeships receiving credits under this Section.
(Source: P.A. 101-207, eff. 8-2-19; revised 9-5-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.