Public Act 096-0101
 		





SB2046 Enrolled
LRB096 11293 HLH 21722 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 
changing Section 217 as follows:
 
    (35 ILCS 5/217)

    Sec. 217. Credit for wages paid to qualified veterans.
    (a) For each taxable year beginning on or after January 1, 
2007 and ending on or before December 30, 2010, each taxpayer 
is entitled to a credit against the tax imposed by subsections 
(a) and (b) of Section 201 of this Act in an amount equal to 5%, 
but in no event to exceed $600, of the gross wages paid by the 
taxpayer to a qualified veteran in the course of that veteran's 
sustained employment during the taxable year. For each taxable 
year beginning on or after January 1, 2010, each taxpayer is 
entitled to a credit against the tax imposed by subsections (a) 
and (b) of Section 201 of this Act in an amount equal to 10%, 
but in no event to exceed $1,200, of the gross wages paid by 
the taxpayer to a qualified veteran in the course of that 
veteran's sustained employment during the taxable year. 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.
    (b) For purposes of this Section:
    "Qualified veteran" means an Illinois resident who: (i) was 
a member of the Armed Forces of the United States, a member of 
the Illinois National Guard, or a member of any reserve 
component of the Armed Forces of the United States; (ii) served 
on active duty in connection with Operation Desert Storm, 
Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) 
has provided, to the taxpayer, documentation showing that he or 
she was honorably discharged; and (iv) was initially hired by 
the taxpayer on or after January 1, 2007.
    "Sustained employment" means a period of employment that is 
not less than 185 days during the taxable year.
    (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.

(Source: P.A. 94-1067, eff. 8-1-06.)