HB4454 98TH GENERAL ASSEMBLY

LRB098 17183 HLH 52271 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4454

Introduced , by Rep. John M. Cabello

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Provides that each small business is entitled to a credit equal to 50% of its Illinois income tax liability. Provides that "small business" means a business with fewer than 50 employees. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Small business tax credit. For taxable years beginning on or after January 1, 2014, each small business is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 in an amount equal to 50% of the tax imposed against that small business under subsections (a) and (b) of Section 201.

For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

For the purposes of this Section, "small business" means a business with fewer than 50 employees.

This Section is exempt from the provisions of Section 250.

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