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Public Act 096-0834
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| HB1526 Enrolled |
LRB096 05060 RCE 15126 b |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by |
changing Section 704A as follows:
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(35 ILCS 5/704A) |
Sec. 704A. Employer's return and payment of tax withheld. |
(a) In general, every employer who deducts and withholds or |
is required to deduct and withhold tax under this Act on or |
after January 1, 2008 shall make those payments and returns as |
provided in this Section. |
(b) Returns. Every employer shall, in the form and manner |
required by the Department, make returns with respect to taxes |
withheld or required to be withheld under this Article 7 for |
each quarter beginning on or after January 1, 2008, on or |
before the last day of the first month following the close of |
that quarter. |
(c) Payments. With respect to amounts withheld or required |
to be withheld on or after January 1, 2008: |
(1) Semi-weekly payments. For each calendar year, each |
employer who withheld or was required to withhold more than |
$12,000 during the one-year period ending on June 30 of the |
immediately preceding calendar year, payment must be made: |
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(A) on or before each Friday of the calendar year, |
for taxes withheld or required to be withheld on the |
immediately preceding Saturday, Sunday, Monday, or |
Tuesday; |
(B) on or before each Wednesday of the calendar |
year, for taxes withheld or required to be withheld on |
the immediately preceding Wednesday, Thursday, or |
Friday. |
(2) Semi-weekly payments. Any employer who withholds |
or is required to withhold more than $12,000 in any quarter |
of a calendar year is required to make payments on the |
dates set forth under item (1) of this subsection (c) for |
each remaining quarter of that calendar year and for the |
subsequent calendar year.
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(3) Monthly payments. Each employer, other than an |
employer described in items (1) or (2) of this subsection, |
shall pay to the Department, on or before the 15th day of |
each month the taxes withheld or required to be withheld |
during the immediately preceding month. |
(4) Payments with returns. Each employer shall pay to |
the Department, on or before the due date for each return |
required to be filed under this Section, any tax withheld |
or required to be withheld during the period for which the |
return is due and not previously paid to the Department. |
(d) Regulatory authority. The Department may, by rule: |
(1) If the aggregate amounts required to be withheld |
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under this Article 7 do not exceed $1,000 for the calendar |
year, permit employers, in lieu of the requirements of |
subsections (b) and (c), to file annual returns due on or |
before January 31 of the following year for taxes withheld |
or required to be withheld during that calendar year and to |
pay the taxes required to be shown on each such return no |
later than the due date for such return. |
(2) Provide that any payment required to be made under |
subsection (c)(1) or (c)(2) is deemed to be timely to the |
extent paid by electronic funds transfer on or before the |
due date for deposit of federal income taxes withheld from, |
or federal employment taxes due with respect to, the wages |
from which the Illinois taxes were withheld. |
(3) Designate one or more depositories to which payment |
of taxes required to be withheld under this Article 7 must |
be paid by some or all employers. |
(4) Increase the threshold dollar amounts at which |
employers are required to make semi-weekly payments under |
subsection (c)(1) or (c)(2). |
(e) Annual return and payment. Every employer who deducts |
and withholds or is required to deduct and withhold tax from a |
person engaged in domestic service employment, as that term is |
defined in Section 3510 of the Internal Revenue Code, may |
comply with the requirements of this Section with respect to |
such employees by filing an annual return and paying the taxes |
required to be deducted and withheld on or before the 15th day |
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of the fourth month following the close of the employer's |
taxable year. The Department may allow the employer's return to |
be submitted with the employer's individual income tax return |
or to be submitted with a return due from the employer under |
Section 1400.2 of the Unemployment Insurance Act. |
(f) Magnetic media and electronic filing. Any W-2 Form |
that, under the Internal Revenue Code and regulations |
promulgated thereunder, is required to be submitted to the |
Internal Revenue Service on magnetic media or electronically |
must also be submitted to the Department on magnetic media or |
electronically for Illinois purposes, if required by the |
Department. |
(g) For amounts deducted or withheld after December 31, |
2009, a taxpayer who makes an election under Section 5-15(f) of |
the Economic Development for a Growing Economy Act for a |
taxable year shall be allowed a credit against payments due |
under this Section for amounts withheld during the first |
calendar year beginning after the end of that taxable year |
equal to the amount of the credit awarded to the taxpayer by |
the Department of Commerce and Economic Opportunity under the |
Economic Development for a Growing Economy Act for the taxable |
year. The credit may not reduce the taxpayer's obligation for |
any payment due under this Section to less than zero. If the |
amount of the credit exceeds the total payments due under this |
Section with respect to amounts withheld during the calendar |
year, the excess may be carried forward and applied against the |
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taxpayer's liability under this Section in the 5 succeeding |
calendar years. The credit shall be applied to the earliest |
year for which there is a tax liability. If there are credits |
from more than one taxable year that are available to offset a |
liability, the earlier credit shall be applied first. This |
Section is exempt from the provisions of Section 250 of this |
Act. |
(Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08.)
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Section 10. The Economic Development for a Growing Economy |
Tax Credit Act is amended by changing Section 5-15 as follows:
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(35 ILCS 10/5-15) |
Sec. 5-15. Tax Credit Awards. Subject to the conditions set |
forth in this
Act, a Taxpayer is
entitled to a Credit against |
taxes imposed pursuant to subsections (a) and (b)
of Section |
201 of the Illinois
Income Tax Act that may be imposed on the |
Taxpayer for a taxable year beginning
on or
after January 1, |
1999,
if the Taxpayer is awarded a Credit by the Department |
under this Act for that
taxable year. |
(a) The Department shall make Credit awards under this Act |
to foster job
creation and retention in Illinois. |
(b) A person that proposes a project to create new jobs in |
Illinois must
enter into an Agreement with the
Department for |
the Credit under this Act. |
(c) The Credit shall be claimed for the taxable years |
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specified in the
Agreement. |
(d) The Credit shall not exceed the Incremental Income Tax |
attributable to
the project that is the subject of the |
Agreement. |
(e) Nothing herein shall prohibit a Tax Credit Award to an |
Applicant that uses a PEO if all other award criteria are |
satisfied.
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(f) In lieu of the Credit allowed under this Act against |
the taxes imposed pursuant to subsections (a) and (b) of |
Section 201 of the Illinois Income Tax Act for any taxable year |
ending on or after December 31, 2009, the Taxpayer may elect to |
claim the Credit against its obligation to pay over withholding |
under Section 704A of the Illinois Income Tax Act. |
(1) The election under this subsection (f) may be made |
only by a Taxpayer that (i) is primarily engaged in one of |
the following business activities: motor vehicle metal |
stamping, automobile manufacturing, automobile and light |
duty motor vehicle manufacturing, motor vehicle |
manufacturing, light truck and utility vehicle |
manufacturing, or motor vehicle body manufacturing and |
(ii) meets the following criteria: |
(A) the Taxpayer (i) had an Illinois net loss or an |
Illinois net loss deduction under Section 207 of the |
Illinois Income Tax Act for the taxable year in which |
the Credit is awarded, (ii) employed a minimum of 1,000 |
full-time employees in this State during the taxable |
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year in which the Credit is awarded, (iii) has an |
Agreement under this Act on the effective date of this |
amendatory Act of the 96th General Assembly, and (iv) |
is in compliance with all provisions of that Agreement; |
or |
(B) the Taxpayer (i) had an Illinois net loss or an |
Illinois net loss deduction under Section 207 of the |
Illinois Income Tax Act for the taxable year in which |
the Credit is awarded, (ii) employed a minimum of 1,000 |
full-time employees in this State during the taxable |
year in which the Credit is awarded, and (iii) has |
applied for an Agreement within 180 days after the |
effective date of this amendatory Act of the 96th |
General Assembly. |
(2) An election under this subsection shall allow the |
credit to be taken against payments otherwise due under |
Section 704A of the Illinois Income Tax Act during the |
first calendar year beginning after the end of the taxable |
year in which the credit is awarded under this Act. |
(3) The election shall be made in the form and manner |
required by the Illinois Department of Revenue and, once |
made, shall be irrevocable. |
(4) If a Taxpayer who meets the requirements of |
subparagraph (A) of paragraph (1) of this subsection (f) |
elects to claim the Credit against its withholdings as |
provided in this subsection (f), then, on and after the |