96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4207


 
Introduced 2/27/2009, by Rep. Dennis M. Reboletti - Franco Coladipietro - Harry R. Ramey, Jr. - JoAnn D. Osmond - Jim Watson, et al.
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/217










    Amends the Illinois Income Tax Act. Increases the amount of the credit for wages paid to qualified veterans from an amount equal to "5%, but in no event to exceed $600, of the gross wages paid to a qualified veteran" to either $1,000, $1,500, or $3,000 depending on the number of qualified veterans employed. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4207

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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 
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changing Section 217 as follows:
 
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    (35 ILCS 5/217)

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    Sec. 217. Credit for wages paid to qualified veterans.
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    (a) For each taxable year beginning on or after January 1, 
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2007, each taxpayer who paid wages to a qualified veteran in 
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the course of that veteran's sustained employment during the 
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taxable year is entitled to a credit against the tax imposed by 
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subsections (a) and (b) of Section 201 of this Act in an amount 
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equal to:

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        (1) $1,000 if one qualified veteran worked an average 
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    of at least 40 hours per week;
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        (2) $1,500 if 2 qualified veterans worked an average of 
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    at least 40 hours per week; or
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        (3) $3,000 if 3 or more qualified veterans worked an 
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    average of at least 40 hours per week.
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5%, but in no event to exceed $600, of the gross wages paid by 
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the taxpayer to a qualified veteran in the course of that 
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veteran's sustained employment during the taxable year.

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    For partners, shareholders of Subchapter S corporations, 
 


 






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and owners of limited liability companies, if the liability 
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company is treated as a partnership for purposes of federal and 
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State income taxation, there shall be allowed a credit under 
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this Section to be determined in accordance with the 
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determination of income and distributive share of income under 
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Sections 702 and 704 and Subchapter S of the Internal Revenue 
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Code.
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    (b) For purposes of this Section:
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    "Qualified veteran" means an Illinois resident who: (i) was 
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a member of the Armed Forces of the United States, a member of 
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the Illinois National Guard, or a member of any reserve 
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component of the Armed Forces of the United States; (ii) served 
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on active duty in connection with Operation Desert Storm, 
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Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) 
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has provided, to the taxpayer, documentation showing that he or 
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she was honorably discharged; and (iv) was initially hired by 
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the taxpayer on or after January 1, 2007.
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    "Sustained employment" means a period of employment that is 
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not less than 185 days during the taxable year.
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    (c) In no event shall a credit under this Section reduce 
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the taxpayer's liability to less than zero. If the amount of 
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the credit exceeds the tax liability for the year, the excess 
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may be carried forward and applied to the tax liability of the 
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5 taxable years following the excess credit year. The tax 
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credit shall be applied to the earliest year for which there is 
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a tax liability. If there are credits for more than one year 
 


 






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that are available to offset a liability, the earlier credit 
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shall be applied first.

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

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.