96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3657


 
Introduced 2/11/2010, by Sen. Linda Holmes
 
SYNOPSIS AS INTRODUCED:
 		





 







35 ILCS 5/219 new











     Amends the Illinois Income Tax Act.  Creates a credit for taxpayers who own and operate a small business in Illinois.  Provides that the credit shall be an amount equal to (i) $1,000 for each eligible employee hired during the taxable year or (ii) $1,500 for each eligible employee hired during the taxable year who was receiving unemployment benefits from the State at the time he or she was hired.  Provides that the eligible employee must be employed for at least 180 consecutive days.  Provides that the taxpayer must have at least a 50% ownership interest in the small business.  Provides that the credit may be carried forward for a period of 5 years.  Effective immediately.
  















LRB096 20360 HLH 35997 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 




  






SB3657

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    AN ACT concerning revenue.
  
 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:
  
 
 
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    Section 5. The Illinois Income Tax Act is amended  by adding 
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Section 219 as follows:
 
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    (35 ILCS 5/219 new)
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    Sec. 219. Small Business Jobs Tax Credit.
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    (a) For taxable years beginning on or after January 1, 
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2010, each taxpayer who owns and operates a small business in 
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Illinois shall be allowed a credit against the tax imposed by 
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subsections (a) and (b) of Section 201 in an amount equal to 
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(i) $1,000 for each eligible employee hired during the taxable 
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year or (ii) $1,500 for each eligible employee hired during the 
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taxable year who was receiving unemployment benefits from the 
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State at the time he or she was hired.
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    (b) To qualify for the credit:
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        (1) the taxpayer must hire eligible employees during 
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    the taxable year;
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        (2) the eligible employee must be employed for at least 
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    180 consecutive days in order to be deemed hired for 
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    purposes of this subsection;
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        (3) the taxpayer must have at least a 50% ownership 
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    interest in the small business; and
 


 






SB3657
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        (4) the taxpayer may not receive other Illinois 
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    corporate income tax credits during the taxable year, other 
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    than those outlined by subsection (g) of Section 201 of 
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    this Act, for the same business.
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    (c) For the purposes of this Section, an "eligible 
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employee" means a full-time employee working 30 or more hours 
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per week.
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    (d) For the purposes of this Section, a "small business" 
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means any Illinois-based concern, including its affiliates, 
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that is independently owned and operated and employs fewer than 
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50 full-time employees or has gross annual sales of less that 
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$4,000,000.
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    (e) The Department of Revenue shall promulgate such rules 
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and regulations as may be deemed necessary to carry out the 
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purposes of this section.
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    (f)  If the amount of the credit exceeds the tax liability 
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for that year, whether it exceeds the original liability or the 
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liability as later amended, such excess may be carried forward 
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and applied to the tax liability of the 5 taxable years 
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following the excess credit year. The credit shall be applied 
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to the earliest year for which there is a liability. If there 
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is a credit from more than one tax year that is available to 
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offset a liability, earlier credit shall be applied first.
 
 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.