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90_SB0146
35 ILCS 5/211 new
305 ILCS 5/9A-13 new
Amends the Illinois Income Tax Act and the Public Aid
Code to administer an Employment Opportunity Certificate
Program under which AFDC recipients are given opportunity
certificate vouchers of $1,500 to be used to negotiate for
employment opportunities. Provides an income tax credit of
up to $1,500 per employee hired under the Program for the
business. Applicable to tax years ending on or after
December 31, 1997. Sunsets the credit after 5 years.
LRB9001110KDks
LRB9001110KDks
1 AN ACT in relation to public aid recipients, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Income Tax Act is amended by
6 adding Section 211 as follows:
7 (35 ILCS 5/211 new)
8 Sec. 211. Tax credit for businesses participating in the
9 employment opportunity certificate pilot program.
10 (a) Beginning with taxable years ending on or after
11 December 31, 1997 and ending with taxable years ending on or
12 before December 31, 2006, each business that participates in
13 the employment opportunity certificate pilot program
14 established under Section 9A-13 of the Illinois Public Aid
15 Code is entitled to a credit against the tax imposed under
16 subsections (a) and (b) of Section 201 in an amount equal to
17 $1,500 per employee hired under the program per year in which
18 the credit is claimed.
19 (b) If the amount of credit exceeds the tax liability
20 for the year, the excess may be carried forward and applied
21 to the tax liability for the 2 taxable years following the
22 excess credit year. The credit shall be applied to the
23 earliest year for which there is a tax liability. If there
24 are credits from more than one tax year that are available to
25 offset a liability, the earlier credit shall be applied
26 first.
27 Section 10. The Illinois Public Aid Code is amended by
28 adding Section 9A-13 as follows:
29 (305 ILCS 5/9A-13 new)
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1 Sec. 9A-13. Employment opportunity certificates; pilot
2 program.
3 (a) The Illinois Department may, subject to
4 appropriations for that purpose, conduct an employment
5 opportunity certificate pilot program as provided in this
6 Section. The Illinois Department may implement the pilot
7 program in 2 locations to be designated by the Illinois
8 Department: (i) an administrative district in the City of
9 Chicago and (ii) a downstate county.
10 (b) For purposes of this Section, "opportunity
11 certificate" means a voucher of $1,500 to be used by a
12 recipient of aid under Article IV of this Code to negotiate
13 for employment opportunities.
14 (c) Under a pilot program conducted under this Section,
15 except as otherwise provided in this Section, recipients who
16 are unemployed, or employed for less than the full working
17 time for the occupation in which they are engaged, and
18 dependent members of the family age 16 or over who are not in
19 regular attendance in school shall be required to obtain an
20 employment opportunity certificate to use in negotiating with
21 potential employers in return for obtaining employment. The
22 following recipients are excluded from the requirement of the
23 preceding sentence and are exempt from mandatory
24 participation in the employment opportunity certificate
25 program established under this Section:
26 (1) Disabled persons who meet the criteria for
27 coverage under the federal Americans with Disabilities
28 Act (Public Law 101-336) and are assessed as lacking the
29 capacity to engage in full-time or part-time subsidized
30 employment.
31 (2) A full-time caretaker of a disabled dependent
32 child or disabled adult.
33 (3) A caretaker of a child in the assistance unit
34 who is one year of age or less.
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1 (d) A business employer participating in the program
2 shall enter into a written contract, signed and subscribed to
3 under oath, with the Illinois Department containing the
4 following assurances:
5 (1) The business has submitted a plan to the
6 Illinois Department (i) describing the proposed
7 compensation and duties of employees hired under the
8 opportunity certificate pilot program and (ii)
9 demonstrating that with the tax credit provided under
10 Section 211 of the Illinois Income Tax Act the business
11 is likely to succeed and continue to employ the persons
12 hired under the program.
13 (2) The business must use the tax credit
14 exclusively for compensation and fringe benefits of
15 eligible job applicants.
16 (3) The tax credit is necessary to allow the
17 business to employ additional people but not to fill
18 positions that would be filled even in the absence of the
19 tax credit.
20 (4) The business is in compliance with all
21 applicable affirmative action, fair labor, health,
22 safety, and environmental standards.
23 (e) A business employer may not terminate, lay off, or
24 reduce the working hours of an employee for the purpose of
25 hiring an individual under this program.
26 (f) A business employer participating in this program
27 shall receive a tax credit in accordance with Section 211 of
28 the Illinois Income Tax Act.
29 (g) A business employer may receive the tax credit
30 specified in Section 211 of the Illinois Income Tax Act for
31 each employee hired under the program for 5 years or until
32 the employee is terminated, whichever occurs first. In order
33 for a participant in this program to continue eligibility for
34 aid under Article IV of this Code during the 6 months after
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1 employment under this Section has been terminated, the
2 participant must provide proof to the Illinois Department
3 that he or she is actively seeking other employment or is
4 enrolled in an approved job training or educational activity.
5 The Illinois Department shall make job training and job
6 search services available to a participant in this program
7 for a period of one year after termination of employment
8 under this program.