Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0139 Compare Versions

Version 1 (Old)

Version 2 (New)

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2		-	SB0139 Engrossed LRB103 25033 HLH 51367 b
	1	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0139 Introduced 1/24/2023, by Sen. Neil Anderson SYNOPSIS AS INTRODUCED: 35 ILCS 5/231 Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Effective immediately. LRB103 25033 HLH 51367 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0139 Introduced 1/24/2023, by Sen. Neil Anderson SYNOPSIS AS INTRODUCED: 35 ILCS 5/231 35 ILCS 5/231 Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Effective immediately. LRB103 25033 HLH 51367 b LRB103 25033 HLH 51367 b A BILL FOR
	2	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0139 Introduced 1/24/2023, by Sen. Neil Anderson SYNOPSIS AS INTRODUCED:
	3	+	35 ILCS 5/231 35 ILCS 5/231
	4	+	35 ILCS 5/231
	5	+	Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Effective immediately.
	6	+	LRB103 25033 HLH 51367 b LRB103 25033 HLH 51367 b
	7	+	LRB103 25033 HLH 51367 b
	8	+	A BILL FOR
	9	+	SB0139LRB103 25033 HLH 51367 b SB0139 LRB103 25033 HLH 51367 b
	10	+	SB0139 LRB103 25033 HLH 51367 b
3	11		1 AN ACT concerning revenue.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6	14		4 Section 5. The Illinois Income Tax Act is amended by
7	15		5 changing and renumbering Section 231, as added by Public Act
8	16		6 101-207, as follows:
9	17		7 (35 ILCS 5/231)
10	18		8 Sec. 231. Apprenticeship education expense credit.
11	19		9 (a) As used in this Section:
12	20		10 "Department" means the Department of Commerce and Economic
13	21		11 Opportunity.
14	22		12 "Employer" means an Illinois taxpayer who is the employer
15	23		13 of the qualifying apprentice.
16	24		14 "Qualifying apprentice" means an individual who: (i) is a
17	25		15 resident of the State of Illinois; (ii) is at least 16 years
18	26		16 old at the close of the school year for which a credit is
19	27		17 sought; (iii) during the school year for which a credit is
20	28		18 sought, was a full-time apprentice enrolled in an
21	29		19 apprenticeship program which is registered with the United
22	30		20 States Department of Labor, Office of Apprenticeship; and (iv)
23	31		21 is employed in Illinois by the taxpayer who is the employer.
24	32		22 "Qualifying apprentice" also means an apprentice who is
25	33		23 employed in Illinois by the taxpayer through the United States
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	37	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0139 Introduced 1/24/2023, by Sen. Neil Anderson SYNOPSIS AS INTRODUCED:
	38	+	35 ILCS 5/231 35 ILCS 5/231
	39	+	35 ILCS 5/231
	40	+	Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Effective immediately.
	41	+	LRB103 25033 HLH 51367 b LRB103 25033 HLH 51367 b
	42	+	LRB103 25033 HLH 51367 b
	43	+	A BILL FOR
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	49	+	35 ILCS 5/231
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34	68		1 Department of Defense SkillBridge internship program.
35	69		2 "Qualified education expense" means the amount incurred on
36	70		3 behalf of a qualifying apprentice not to exceed $3,500 for
37	71		4 tuition, book fees, and lab fees at the school or community
38	72		5 college in which the apprentice is enrolled during the regular
39	73		6 school year.
40	74		7 "School" means any public or nonpublic secondary school in
41	75		8 Illinois that is: (i) an institution of higher education that
42	76		9 provides a program that leads to an industry-recognized
43	77		10 postsecondary credential or degree; (ii) an entity that
44	78		11 carries out programs registered under the federal National
45	79		12 Apprenticeship Act; or (iii) another public or private
46	80		13 provider of a program of training services, which may include
47	81		14 a joint labor-management organization.
48	82		15 (b) For taxable years beginning on or after January 1,
49	83		16 2020, and beginning on or before January 1, 2025, the employer
50	84		17 of one or more qualifying apprentices shall be allowed a
51	85		18 credit against the tax imposed by subsections (a) and (b) of
52	86		19 Section 201 of the Illinois Income Tax Act for qualified
53	87		20 education expenses incurred on behalf of a qualifying
54	88		21 apprentice. The credit shall be equal to 100% of the qualified
55	89		22 education expenses, but in no event may the total credit
56	90		23 amount awarded to a single taxpayer in a single taxable year
57	91		24 exceed $3,500 per qualifying apprentice. A taxpayer shall be
58	92		25 entitled to an additional $1,500 credit against the tax
59	93		26 imposed by subsections (a) and (b) of Section 201 of the
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70	104		1 Illinois Income Tax Act if (i) the qualifying apprentice
71	105		2 resides in an underserved area as defined in Section 5-5 of the
72	106		3 Economic Development for a Growing Economy Tax Credit Act
73	107		4 during the school year for which a credit is sought by an
74	108		5 employer or (ii) the employer's principal place of business is
75	109		6 located in an underserved area, as defined in Section 5-5 of
76	110		7 the Economic Development for a Growing Economy Tax Credit Act.
77	111		8 In no event shall a credit under this Section reduce the
78	112		9 taxpayer's liability under this Act to less than zero. For
79	113		10 partners, shareholders of Subchapter S corporations, and
80	114		11 owners of limited liability companies, if the liability
81	115		12 company is treated as a partnership for purposes of federal
82	116		13 and State income taxation, there shall be allowed a credit
83	117		14 under this Section to be determined in accordance with the
84	118		15 determination of income and distributive share of income under
85	119		16 Sections 702 and 704 and Subchapter S of the Internal Revenue
86	120		17 Code.
87	121		18 (c) The Department shall implement a program to certify
88	122		19 applicants for an apprenticeship credit under this Section.
89	123		20 Upon satisfactory review, the Department shall issue a tax
90	124		21 credit certificate to an employer incurring costs on behalf of
91	125		22 a qualifying apprentice stating the amount of the tax credit
92	126		23 to which the employer is entitled. If the employer is seeking a
93	127		24 tax credit for multiple qualifying apprentices, the Department
94	128		25 may issue a single tax credit certificate that encompasses the
95	129		26 aggregate total of tax credits for qualifying apprentices for
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106	140		1 a single employer.
107	141		2 (d) The Department, in addition to those powers granted
108	142		3 under the Civil Administrative Code of Illinois, is granted
109	143		4 and shall have all the powers necessary or convenient to carry
110	144		5 out and effectuate the purposes and provisions of this
111	145		6 Section, including, but not limited to, power and authority
112	146		7 to:
113	147		8 (1) Adopt rules deemed necessary and appropriate for
114	148		9 the administration of this Section; establish forms for
115	149		10 applications, notifications, contracts, or any other
116	150		11 agreements; and accept applications at any time during the
117	151		12 year and require that all applications be submitted via
118	152		13 the Internet. The Department shall require that
119	153		14 applications be submitted in electronic form.
120	154		15 (2) Provide guidance and assistance to applicants
121	155		16 pursuant to the provisions of this Section and cooperate
122	156		17 with applicants to promote, foster, and support job
123	157		18 creation within the State.
124	158		19 (3) Enter into agreements and memoranda of
125	159		20 understanding for participation of and engage in
126	160		21 cooperation with agencies of the federal government, units
127	161		22 of local government, universities, research foundations or
128	162		23 institutions, regional economic development corporations,
129	163		24 or other organizations for the purposes of this Section.
130	164		25 (4) Gather information and conduct inquiries, in the
131	165		26 manner and by the methods it deems desirable, including,
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142	176		1 without limitation, gathering information with respect to
143	177		2 applicants for the purpose of making any designations or
144	178		3 certifications necessary or desirable or to gather
145	179		4 information in furtherance of the purposes of this Act.
146	180		5 (5) Establish, negotiate, and effectuate any term,
147	181		6 agreement, or other document with any person necessary or
148	182		7 appropriate to accomplish the purposes of this Section,
149	183		8 and consent, subject to the provisions of any agreement
150	184		9 with another party, to the modification or restructuring
151	185		10 of any agreement to which the Department is a party.
152	186		11 (6) Provide for sufficient personnel to permit
153	187		12 administration, staffing, operation, and related support
154	188		13 required to adequately discharge its duties and
155	189		14 responsibilities described in this Section from funds made
156	190		15 available through charges to applicants or from funds as
157	191		16 may be appropriated by the General Assembly for the
158	192		17 administration of this Section.
159	193		18 (7) Require applicants, upon written request, to issue
160	194		19 any necessary authorization to the appropriate federal,
161	195		20 State, or local authority or any other person for the
162	196		21 release to the Department of information requested by the
163	197		22 Department, including, but not be limited to, financial
164	198		23 reports, returns, or records relating to the applicant or
165	199		24 to the amount of credit allowable under this Section.
166	200		25 (8) Require that an applicant shall, at all times,
167	201		26 keep proper books of record and account in accordance with
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178	212		1 generally accepted accounting principles consistently
179	213		2 applied, with the books, records, or papers related to the
180	214		3 agreement in the custody or control of the applicant open
181	215		4 for reasonable Department inspection and audits,
182	216		5 including, without limitation, the making of copies of the
183	217		6 books, records, or papers.
184	218		7 (9) Take whatever actions are necessary or appropriate
185	219		8 to protect the State's interest in the event of
186	220		9 bankruptcy, default, foreclosure, or noncompliance with
187	221		10 the terms and conditions of financial assistance or
188	222		11 participation required under this Section or any agreement
189	223		12 entered into under this Section, including the power to
190	224		13 sell, dispose of, lease, or rent, upon terms and
191	225		14 conditions determined by the Department to be appropriate,
192	226		15 real or personal property that the Department may recover
193	227		16 as a result of these actions.
194	228		17 (e) The Department, in consultation with the Department of
195	229		18 Revenue, shall adopt rules to administer this Section. The
196	230		19 aggregate amount of the tax credits that may be claimed under
197	231		20 this Section for qualified education expenses incurred by an
198	232		21 employer on behalf of a qualifying apprentice shall be limited
199	233		22 to $5,000,000 per calendar year. If applications for a greater
200	234		23 amount are received, credits shall be allowed on a first-come
201	235		24 first-served basis, based on the date on which each properly
202	236		25 completed application for a certificate of eligibility is
203	237		26 received by the Department. If more than one certificate is
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214	248		1 received on the same day, the credits will be awarded based on
215	249		2 the time of submission for that particular day.
216	250		3 (f) An employer may not sell or otherwise transfer a
217	251		4 credit awarded under this Section to another person or
218	252		5 taxpayer.
219	253		6 (g) The employer shall provide the Department such
220	254		7 information as the Department may require, including but not
221	255		8 limited to: (i) the name, age, and taxpayer identification
222	256		9 number of each qualifying apprentice employed by the taxpayer
223	257		10 during the taxable year; (ii) the amount of qualified
224	258		11 education expenses incurred with respect to each qualifying
225	259		12 apprentice; and (iii) the name of the school at which the
226	260		13 qualifying apprentice is enrolled and the qualified education
227	261		14 expenses are incurred.
228	262		15 (h) On or before July 1 of each year, the Department shall
229	263		16 report to the Governor and the General Assembly on the tax
230	264		17 credit certificates awarded under this Section for the prior
231	265		18 calendar year. The report must include:
232	266		19 (1) the name of each employer awarded or allocated a
233	267		20 credit;
234	268		21 (2) the number of qualifying apprentices for whom the
235	269		22 employer has incurred qualified education expenses;
236	270		23 (3) the North American Industry Classification System
237	271		24 (NAICS) code applicable to each employer awarded or
238	272		25 allocated a credit;
239	273		26 (4) the amount of the credit awarded or allocated to
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250	284		1 each employer;
251	285		2 (5) the total number of employers awarded or allocated
252	286		3 a credit;
253	287		4 (6) the total number of qualifying apprentices for
254	288		5 whom employers receiving credits under this Section
255	289		6 incurred qualified education expenses; and
256	290		7 (7) the average cost to the employer of all
257	291		8 apprenticeships receiving credits under this Section.
258	292		9 (Source: P.A. 101-207, eff. 8-2-19; 102-558, eff. 8-20-21.)
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