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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3502 Introduced 2/17/2023, by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED:
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Amends the Illinois Income Tax Act. Creates an income tax credit for employers that provide reimbursement to employees for costs associated with commuting to and from a worksite in the State. Provides that the credit shall be equal to 50% of those costs, but not to exceed $100 per employee per month. Effective immediately.
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| | A BILL FOR |
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| | HB3502 | | LRB103 27507 HLH 53882 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Income Tax Act is amended by |
| 5 | | adding Section 234 as follows:
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| 6 | | (35 ILCS 5/234 new) |
| 7 | | Sec. 234. Commuter reimbursement expenses. |
| 8 | | (a) For taxable years beginning on or after January 1, |
| 9 | | 2023, each employer that provides reimbursement to its |
| 10 | | employees for costs associated with commuting to and from a |
| 11 | | worksite in the State is entitled to a credit against the taxes |
| 12 | | imposed under subsections (a) and (b) of Section 201 in an |
| 13 | | amount equal to 50% of those costs. The amount of the credit |
| 14 | | may not exceed $100 per employee per month. In no event may the |
| 15 | | credit under this Section reduce the taxpayer's liability to |
| 16 | | less than zero. The credit may not be carried forward or back. |
| 17 | | (b) Costs that are eligible for reimbursement include |
| 18 | | passes, tickets, fare cards, vouchers, or any other item |
| 19 | | required to ride a public or private transit system, not |
| 20 | | including taxi services. |
| 21 | | (c) For partners, shareholders of subchapter S |
| 22 | | corporations, and owners of limited liability companies, if |
| 23 | | the liability company is treated as a partnership for purposes |