Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2953 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2953 Introduced 1/31/2024, 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 38747 HLH 68884 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2953 Introduced 1/31/2024, 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 38747 HLH 68884 b LRB103 38747 HLH 68884 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2953 Introduced 1/31/2024, by Sen. Neil Anderson SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/231 35 ILCS 5/231
4	4	35 ILCS 5/231
5	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	6	LRB103 38747 HLH 68884 b LRB103 38747 HLH 68884 b
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8	8	A BILL FOR
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11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Income Tax Act is amended by
15	15	5 changing and renumbering Section 231, as added by Public Act
16	16	6 101-207, as follows:
17	17	7 (35 ILCS 5/231)
18	18	8 Sec. 231. Apprenticeship education expense credit.
19	19	9 (a) As used in this Section:
20	20	10 "Department" means the Department of Commerce and Economic
21	21	11 Opportunity.
22	22	12 "Employer" means an Illinois taxpayer who is the employer
23	23	13 of the qualifying apprentice.
24	24	14 "Qualifying apprentice" means an individual who: (i) is a
25	25	15 resident of the State of Illinois; (ii) is at least 16 years
26	26	16 old at the close of the school year for which a credit is
27	27	17 sought; (iii) during the school year for which a credit is
28	28	18 sought, was a full-time apprentice enrolled in an
29	29	19 apprenticeship program which is registered with the United
30	30	20 States Department of Labor, Office of Apprenticeship; and (iv)
31	31	21 is employed in Illinois by the taxpayer who is the employer.
32	32	22 "Qualifying apprentice" also means an apprentice who is
33	33	23 employed in Illinois by the taxpayer through the United States
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2953 Introduced 1/31/2024, by Sen. Neil Anderson SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/231 35 ILCS 5/231
39	39	35 ILCS 5/231
40	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	41	LRB103 38747 HLH 68884 b LRB103 38747 HLH 68884 b
42	42	LRB103 38747 HLH 68884 b
43	43	A BILL FOR
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49	49	35 ILCS 5/231
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68	68	1 Department of Defense SkillBridge internship program.
69	69	2 "Qualified education expense" means the amount incurred on
70	70	3 behalf of a qualifying apprentice not to exceed $3,500 for
71	71	4 tuition, book fees, and lab fees at the school or community
72	72	5 college in which the apprentice is enrolled during the regular
73	73	6 school year.
74	74	7 "School" means any public or nonpublic secondary school in
75	75	8 Illinois that is: (i) an institution of higher education that
76	76	9 provides a program that leads to an industry-recognized
77	77	10 postsecondary credential or degree; (ii) an entity that
78	78	11 carries out programs registered under the federal National
79	79	12 Apprenticeship Act; or (iii) another public or private
80	80	13 provider of a program of training services, which may include
81	81	14 a joint labor-management organization.
82	82	15 (b) For taxable years beginning on or after January 1,
83	83	16 2020, and beginning on or before January 1, 2025, the employer
84	84	17 of one or more qualifying apprentices shall be allowed a
85	85	18 credit against the tax imposed by subsections (a) and (b) of
86	86	19 Section 201 of the Illinois Income Tax Act for qualified
87	87	20 education expenses incurred on behalf of a qualifying
88	88	21 apprentice. The credit shall be equal to 100% of the qualified
89	89	22 education expenses, but in no event may the total credit
90	90	23 amount awarded to a single taxpayer in a single taxable year
91	91	24 exceed $3,500 per qualifying apprentice. A taxpayer shall be
92	92	25 entitled to an additional $1,500 credit against the tax
93	93	26 imposed by subsections (a) and (b) of Section 201 of the
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104	104	1 Illinois Income Tax Act if (i) the qualifying apprentice
105	105	2 resides in an underserved area as defined in Section 5-5 of the
106	106	3 Economic Development for a Growing Economy Tax Credit Act
107	107	4 during the school year for which a credit is sought by an
108	108	5 employer or (ii) the employer's principal place of business is
109	109	6 located in an underserved area, as defined in Section 5-5 of
110	110	7 the Economic Development for a Growing Economy Tax Credit Act.
111	111	8 In no event shall a credit under this Section reduce the
112	112	9 taxpayer's liability under this Act to less than zero. For
113	113	10 taxable years ending before December 31, 2023, for partners,
114	114	11 shareholders of Subchapter S corporations, and owners of
115	115	12 limited liability companies, if the liability company is
116	116	13 treated as a partnership for purposes of federal and State
117	117	14 income taxation, there shall be allowed a credit under this
118	118	15 Section to be determined in accordance with the determination
119	119	16 of income and distributive share of income under Sections 702
120	120	17 and 704 and Subchapter S of the Internal Revenue Code. For
121	121	18 taxable years ending on or after December 31, 2023, partners
122	122	19 and shareholders of subchapter S corporations are entitled to
123	123	20 a credit under this Section as provided in Section 251.
124	124	21 (c) The Department shall implement a program to certify
125	125	22 applicants for an apprenticeship credit under this Section.
126	126	23 Upon satisfactory review, the Department shall issue a tax
127	127	24 credit certificate to an employer incurring costs on behalf of
128	128	25 a qualifying apprentice stating the amount of the tax credit
129	129	26 to which the employer is entitled. If the employer is seeking a
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140	140	1 tax credit for multiple qualifying apprentices, the Department
141	141	2 may issue a single tax credit certificate that encompasses the
142	142	3 aggregate total of tax credits for qualifying apprentices for
143	143	4 a single employer.
144	144	5 (d) The Department, in addition to those powers granted
145	145	6 under the Civil Administrative Code of Illinois, is granted
146	146	7 and shall have all the powers necessary or convenient to carry
147	147	8 out and effectuate the purposes and provisions of this
148	148	9 Section, including, but not limited to, power and authority
149	149	10 to:
150	150	11 (1) Adopt rules deemed necessary and appropriate for
151	151	12 the administration of this Section; establish forms for
152	152	13 applications, notifications, contracts, or any other
153	153	14 agreements; and accept applications at any time during the
154	154	15 year and require that all applications be submitted via
155	155	16 the Internet. The Department shall require that
156	156	17 applications be submitted in electronic form.
157	157	18 (2) Provide guidance and assistance to applicants
158	158	19 pursuant to the provisions of this Section and cooperate
159	159	20 with applicants to promote, foster, and support job
160	160	21 creation within the State.
161	161	22 (3) Enter into agreements and memoranda of
162	162	23 understanding for participation of and engage in
163	163	24 cooperation with agencies of the federal government, units
164	164	25 of local government, universities, research foundations or
165	165	26 institutions, regional economic development corporations,
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176	176	1 or other organizations for the purposes of this Section.
177	177	2 (4) Gather information and conduct inquiries, in the
178	178	3 manner and by the methods it deems desirable, including,
179	179	4 without limitation, gathering information with respect to
180	180	5 applicants for the purpose of making any designations or
181	181	6 certifications necessary or desirable or to gather
182	182	7 information in furtherance of the purposes of this Act.
183	183	8 (5) Establish, negotiate, and effectuate any term,
184	184	9 agreement, or other document with any person necessary or
185	185	10 appropriate to accomplish the purposes of this Section,
186	186	11 and consent, subject to the provisions of any agreement
187	187	12 with another party, to the modification or restructuring
188	188	13 of any agreement to which the Department is a party.
189	189	14 (6) Provide for sufficient personnel to permit
190	190	15 administration, staffing, operation, and related support
191	191	16 required to adequately discharge its duties and
192	192	17 responsibilities described in this Section from funds made
193	193	18 available through charges to applicants or from funds as
194	194	19 may be appropriated by the General Assembly for the
195	195	20 administration of this Section.
196	196	21 (7) Require applicants, upon written request, to issue
197	197	22 any necessary authorization to the appropriate federal,
198	198	23 State, or local authority or any other person for the
199	199	24 release to the Department of information requested by the
200	200	25 Department, including, but not be limited to, financial
201	201	26 reports, returns, or records relating to the applicant or
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212	212	1 to the amount of credit allowable under this Section.
213	213	2 (8) Require that an applicant shall, at all times,
214	214	3 keep proper books of record and account in accordance with
215	215	4 generally accepted accounting principles consistently
216	216	5 applied, with the books, records, or papers related to the
217	217	6 agreement in the custody or control of the applicant open
218	218	7 for reasonable Department inspection and audits,
219	219	8 including, without limitation, the making of copies of the
220	220	9 books, records, or papers.
221	221	10 (9) Take whatever actions are necessary or appropriate
222	222	11 to protect the State's interest in the event of
223	223	12 bankruptcy, default, foreclosure, or noncompliance with
224	224	13 the terms and conditions of financial assistance or
225	225	14 participation required under this Section or any agreement
226	226	15 entered into under this Section, including the power to
227	227	16 sell, dispose of, lease, or rent, upon terms and
228	228	17 conditions determined by the Department to be appropriate,
229	229	18 real or personal property that the Department may recover
230	230	19 as a result of these actions.
231	231	20 (e) The Department, in consultation with the Department of
232	232	21 Revenue, shall adopt rules to administer this Section. The
233	233	22 aggregate amount of the tax credits that may be claimed under
234	234	23 this Section for qualified education expenses incurred by an
235	235	24 employer on behalf of a qualifying apprentice shall be limited
236	236	25 to $5,000,000 per calendar year. If applications for a greater
237	237	26 amount are received, credits shall be allowed on a first-come
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248	248	1 first-served basis, based on the date on which each properly
249	249	2 completed application for a certificate of eligibility is
250	250	3 received by the Department. If more than one certificate is
251	251	4 received on the same day, the credits will be awarded based on
252	252	5 the time of submission for that particular day.
253	253	6 (f) An employer may not sell or otherwise transfer a
254	254	7 credit awarded under this Section to another person or
255	255	8 taxpayer.
256	256	9 (g) The employer shall provide the Department such
257	257	10 information as the Department may require, including but not
258	258	11 limited to: (i) the name, age, and taxpayer identification
259	259	12 number of each qualifying apprentice employed by the taxpayer
260	260	13 during the taxable year; (ii) the amount of qualified
261	261	14 education expenses incurred with respect to each qualifying
262	262	15 apprentice; and (iii) the name of the school at which the
263	263	16 qualifying apprentice is enrolled and the qualified education
264	264	17 expenses are incurred.
265	265	18 (h) On or before July 1 of each year, the Department shall
266	266	19 report to the Governor and the General Assembly on the tax
267	267	20 credit certificates awarded under this Section for the prior
268	268	21 calendar year. The report must include:
269	269	22 (1) the name of each employer awarded or allocated a
270	270	23 credit;
271	271	24 (2) the number of qualifying apprentices for whom the
272	272	25 employer has incurred qualified education expenses;
273	273	26 (3) the North American Industry Classification System
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284	284	1 (NAICS) code applicable to each employer awarded or
285	285	2 allocated a credit;
286	286	3 (4) the amount of the credit awarded or allocated to
287	287	4 each employer;
288	288	5 (5) the total number of employers awarded or allocated
289	289	6 a credit;
290	290	7 (6) the total number of qualifying apprentices for
291	291	8 whom employers receiving credits under this Section
292	292	9 incurred qualified education expenses; and
293	293	10 (7) the average cost to the employer of all
294	294	11 apprenticeships receiving credits under this Section.
295	295	12 (Source: P.A. 102-558, eff. 8-20-21; 103-396, eff. 1-1-24.)
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