Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3953 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3953 Introduced 5/14/2024, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/241 new35 ILCS 5/704A Creates the Local Journalism Sustainability Act. Creates a credit against an employer's withholding tax liability if the employer is a local news organization. Provides that the amount of the credit is equal to 50% of the amount of wages paid by the employer to qualified journalists in the calendar year in which the credit certificate is issued, not to exceed $25,000 in credits per qualified journalist. Provides that an additional withholding tax credit of $5,000 shall be awarded for each qualified journalist who fills a new journalism position for the employer during the calendar year in which the credit certificate is issued. Provides that those credits are subject to certain limitations. Amends the Illinois Income Tax Act. Creates an income tax credit, subject to certain limitations, in an amount equal to the consideration paid during the taxable year by an eligible small business to local newspapers or local broadcast stations for advertising in this State. Effective immediately. LRB103 40673 HLH 73417 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3953 Introduced 5/14/2024, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/241 new35 ILCS 5/704A New Act 35 ILCS 5/241 new 35 ILCS 5/704A Creates the Local Journalism Sustainability Act. Creates a credit against an employer's withholding tax liability if the employer is a local news organization. Provides that the amount of the credit is equal to 50% of the amount of wages paid by the employer to qualified journalists in the calendar year in which the credit certificate is issued, not to exceed $25,000 in credits per qualified journalist. Provides that an additional withholding tax credit of $5,000 shall be awarded for each qualified journalist who fills a new journalism position for the employer during the calendar year in which the credit certificate is issued. Provides that those credits are subject to certain limitations. Amends the Illinois Income Tax Act. Creates an income tax credit, subject to certain limitations, in an amount equal to the consideration paid during the taxable year by an eligible small business to local newspapers or local broadcast stations for advertising in this State. Effective immediately. LRB103 40673 HLH 73417 b LRB103 40673 HLH 73417 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3953 Introduced 5/14/2024, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
3	3	New Act35 ILCS 5/241 new35 ILCS 5/704A New Act 35 ILCS 5/241 new 35 ILCS 5/704A
4	4	New Act
5	5	35 ILCS 5/241 new
6	6	35 ILCS 5/704A
7	7	Creates the Local Journalism Sustainability Act. Creates a credit against an employer's withholding tax liability if the employer is a local news organization. Provides that the amount of the credit is equal to 50% of the amount of wages paid by the employer to qualified journalists in the calendar year in which the credit certificate is issued, not to exceed $25,000 in credits per qualified journalist. Provides that an additional withholding tax credit of $5,000 shall be awarded for each qualified journalist who fills a new journalism position for the employer during the calendar year in which the credit certificate is issued. Provides that those credits are subject to certain limitations. Amends the Illinois Income Tax Act. Creates an income tax credit, subject to certain limitations, in an amount equal to the consideration paid during the taxable year by an eligible small business to local newspapers or local broadcast stations for advertising in this State. Effective immediately.
8	8	LRB103 40673 HLH 73417 b LRB103 40673 HLH 73417 b
9	9	LRB103 40673 HLH 73417 b
10	10	A BILL FOR
11	11	SB3953LRB103 40673 HLH 73417 b SB3953 LRB103 40673 HLH 73417 b
12	12	SB3953 LRB103 40673 HLH 73417 b
13	13	1 AN ACT concerning revenue.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 1. Short title. This Act may be cited as the Local
17	17	5 Journalism Sustainability Act.
18	18	6 Section 5. Definitions.
19	19	7 "Department" means the Department of Commerce and Economic
20	20	8 Opportunity.
21	21	9 "Independently owned" means, as applied to a local news
22	22	10 organization, that:
23	23	11 (1) the local news organization is not a publicly
24	24	12 traded entity and no more than 5% of the beneficial
25	25	13 ownership of the local news organization is owned,
26	26	14 directly or indirectly, by a publicly traded entity; and
27	27	15 (2) the local news organization is not a subsidiary.
28	28	16 "Local news organization" means an entity that:
29	29	17 (1) engages professionals to create, edit, produce,
30	30	18 and distribute original content concerning matters of
31	31	19 public interest through reporting activities, including
32	32	20 conducting interviews, observing current events, or
33	33	21 analyzing documents or other information;
34	34	22 (2) has at least one employee who meets all of the
35	35	23 following criteria:
36	36
37	37
38	38
39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3953 Introduced 5/14/2024, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
40	40	New Act35 ILCS 5/241 new35 ILCS 5/704A New Act 35 ILCS 5/241 new 35 ILCS 5/704A
41	41	New Act
42	42	35 ILCS 5/241 new
43	43	35 ILCS 5/704A
44	44	Creates the Local Journalism Sustainability Act. Creates a credit against an employer's withholding tax liability if the employer is a local news organization. Provides that the amount of the credit is equal to 50% of the amount of wages paid by the employer to qualified journalists in the calendar year in which the credit certificate is issued, not to exceed $25,000 in credits per qualified journalist. Provides that an additional withholding tax credit of $5,000 shall be awarded for each qualified journalist who fills a new journalism position for the employer during the calendar year in which the credit certificate is issued. Provides that those credits are subject to certain limitations. Amends the Illinois Income Tax Act. Creates an income tax credit, subject to certain limitations, in an amount equal to the consideration paid during the taxable year by an eligible small business to local newspapers or local broadcast stations for advertising in this State. Effective immediately.
45	45	LRB103 40673 HLH 73417 b LRB103 40673 HLH 73417 b
46	46	LRB103 40673 HLH 73417 b
47	47	A BILL FOR
48	48
49	49
50	50
51	51
52	52
53	53	New Act
54	54	35 ILCS 5/241 new
55	55	35 ILCS 5/704A
56	56
57	57
58	58
59	59	LRB103 40673 HLH 73417 b
60	60
61	61
62	62
63	63
64	64
65	65
66	66
67	67
68	68
69	69	SB3953 LRB103 40673 HLH 73417 b
70	70
71	71
72	72	SB3953- 2 -LRB103 40673 HLH 73417 b SB3953 - 2 - LRB103 40673 HLH 73417 b
73	73	SB3953 - 2 - LRB103 40673 HLH 73417 b
74	74	1 (A) the employee is employed by the entity on a
75	75	2 full-time basis for at least 30 hours a week;
76	76	3 (B) the employee's job duties for the entity
77	77	4 consist primarily of providing coverage of Illinois or
78	78	5 local Illinois community news as described in
79	79	6 paragraph (C);
80	80	7 (C) the employee gathers, prepares, collects,
81	81	8 photographs, writes, edits, reports, or publishes
82	82	9 original local or State community news for
83	83	10 dissemination to the local or State community; and
84	84	11 (D) the employee lives within 50 miles of the
85	85	12 coverage area.
86	86	13 (3) in the case of print publications, has published
87	87	14 at least one print publication per month over the previous
88	88	15 12 months, and either holds a valid United States Postal
89	89	16 Service periodical permit or has at least 25% of its
90	90	17 content dedicated to local news;
91	91	18 (4) in the case of digital-only entities, has
92	92	19 published one piece about the community per week over the
93	93	20 previous 12 months and has at least 33% of its digital
94	94	21 audience in Illinois, averaged over a 12-month period;
95	95	22 (5) in the case of hybrid entities that have both
96	96	23 print and digital outlets, meets the requirements in
97	97	24 either paragraph (3) or (4) of this definition;
98	98	25 (6) has disclosed in its print publication or on its
99	99	26 website its beneficial ownership or, in the case of a
100	100
101	101
102	102
103	103
104	104
105	105	SB3953 - 2 - LRB103 40673 HLH 73417 b
106	106
107	107
108	108	SB3953- 3 -LRB103 40673 HLH 73417 b SB3953 - 3 - LRB103 40673 HLH 73417 b
109	109	SB3953 - 3 - LRB103 40673 HLH 73417 b
110	110	1 not-for-profit entity, its board of directors;
111	111	2 (7) in the case of an entity that maintains tax status
112	112	3 under Section 501(c)(3) of the federal Internal Revenue
113	113	4 Code, has declared the coverage of local or State news as
114	114	5 the stated mission in its filings with the Internal
115	115	6 Revenue Service; and
116	116	7 (8) has not received more than 50% of its gross
117	117	8 receipts for the previous year from political action
118	118	9 committees or other entities described in Section 527 of
119	119	10 the federal Internal Revenue Code or from an organization
120	120	11 that maintains Section 501(c)(4) or 501(c)(6) status under
121	121	12 the federal Internal Revenue Code.
122	122	13 "New journalism position" means an employment position
123	123	14 that results in a net increase in qualified journalists
124	124	15 employed by the local news organization from January 1 of the
125	125	16 preceding calendar year compared to January 1 of the calendar
126	126	17 year in which a credit under this Act is sought.
127	127	18 "Qualified journalist" means a person who:
128	128	19 (1) is employed for an average of at least 30 hours per
129	129	20 week, and
130	130	21 (2) is responsible for gathering, developing,
131	131	22 preparing, directing the recording of, producing,
132	132	23 collecting, photographing, recording, writing, editing,
133	133	24 reporting, designing, presenting, distributing, or
134	134	25 publishing original news or information that concerns
135	135	26 local, regional, national, or international matters of
136	136
137	137
138	138
139	139
140	140
141	141	SB3953 - 3 - LRB103 40673 HLH 73417 b
142	142
143	143
144	144	SB3953- 4 -LRB103 40673 HLH 73417 b SB3953 - 4 - LRB103 40673 HLH 73417 b
145	145	SB3953 - 4 - LRB103 40673 HLH 73417 b
146	146	1 public interest.
147	147	2 Section 10. Credit award. For reporting periods that begin
148	148	3 on or after January 1, 2025 and before January 1, 2030,
149	149	4 employers that are local news organizations and that are
150	150	5 required to deduct and withhold taxes as provided in Article 7
151	151	6 of the Illinois Income Tax Act are eligible to receive a credit
152	152	7 against payments due under Section 704A of the Illinois Income
153	153	8 Tax Act for amounts withheld during the first calendar year to
154	154	9 occur after the calendar year in which the local journalism
155	155	10 certificate is issued under this Act. The credit shall be
156	156	11 equal to 50% of the amount of wages paid by the employer to
157	157	12 qualified journalists in the calendar year in which the credit
158	158	13 certificate is issued, not to exceed $25,000 in credits per
159	159	14 qualified journalist. An additional credit of $5,000 shall be
160	160	15 awarded against payments due under Section 704A of the
161	161	16 Illinois Income Tax Act for each qualified journalist who
162	162	17 fills a new journalism position for the employer during the
163	163	18 calendar year in which the credit certificate is issued. No
164	164	19 more than $250,000 in credits under this Act may be awarded to
165	165	20 any one local news organization in a single calendar year. If
166	166	21 the local news organization is not independently owned, no
167	167	22 more than $500,000 in credit may be awarded in a single
168	168	23 calendar year to all local news organizations that share the
169	169	24 same ownership interest. The total amount in credits that may
170	170	25 be awarded under this Act in any given calendar year may not
171	171
172	172
173	173
174	174
175	175
176	176	SB3953 - 4 - LRB103 40673 HLH 73417 b
177	177
178	178
179	179	SB3953- 5 -LRB103 40673 HLH 73417 b SB3953 - 5 - LRB103 40673 HLH 73417 b
180	180	SB3953 - 5 - LRB103 40673 HLH 73417 b
181	181	1 exceed $8,000,000, of which no more than $6,500,000 may be
182	182	2 awarded for the credit that is based on wages for qualified
183	183	3 journalists, and no more than $1,500,000 may be awarded for
184	184	4 the additional $5,000 credit that is awarded for new
185	185	5 journalism positions. Credits under this Section shall be
186	186	6 awarded by the Department on a first-come, first-served basis.
187	187	7 The credit for partners and shareholders of subchapter S
188	188	8 corporations shall be determined as provided in Section 251.
189	189	9 Section 15. Application for local journalism certificate.
190	190	10 (a) In order to qualify for a tax credit award under this
191	191	11 Act, an applicant must apply with the Department, in the form
192	192	12 and manner required by the Department, for each year for which
193	193	13 a credit under this Act is sought, providing information
194	194	14 necessary to calculate the tax credit award and any additional
195	195	15 information as reasonably required by the Department. A
196	196	16 separate application shall be filed for each local news
197	197	17 organization. The tax credit award shall be calculated each
198	198	18 tax year based upon the filing by the applicant on forms
199	199	19 prescribed by the Department. The Department shall cooperate
200	200	20 with the Department of Revenue as needed in order to determine
201	201	21 credit amount and eligibility.
202	202	22 (b) Upon satisfactory review of the application, the
203	203	23 Department shall issue a local journalism certificate stating
204	204	24 the amount of the tax credit award to which the applicant is
205	205	25 entitled for the credit period and shall contemporaneously
206	206
207	207
208	208
209	209
210	210
211	211	SB3953 - 5 - LRB103 40673 HLH 73417 b
212	212
213	213
214	214	SB3953- 6 -LRB103 40673 HLH 73417 b SB3953 - 6 - LRB103 40673 HLH 73417 b
215	215	SB3953 - 6 - LRB103 40673 HLH 73417 b
216	216	1 notify the applicant and Department of Revenue upon issuance
217	217	2 of the certificate.
218	218	3 Section 20. Powers of the Department. The Department may,
219	219	4 in consultation with the Department of Revenue, adopt any
220	220	5 rules necessary to administer the provisions of this Act.
221	221	6 Section 25. Program terms and conditions. Any documentary
222	222	7 materials or data made available or received from an applicant
223	223	8 by any agent or employee of the Department are confidential
224	224	9 and are not public records to the extent that the materials or
225	225	10 data consist of commercial or financial information regarding
226	226	11 the operation of or the production of the applicant or
227	227	12 recipient of any tax credit award under this Act.
228	228	13 Section 900. The Illinois Income Tax Act is amended by
229	229	14 changing Section 704A and by adding Section 241 as follows:
230	230	15 (35 ILCS 5/241 new)
231	231	16 Sec. 241. Small business income tax credit for local
232	232	17 journalism advertising.
233	233	18 (a) As used in this Section:
234	234	19 "Advertising" means the publication, dissemination,
235	235	20 solicitation, or circulation, or visual, oral, or written
236	236	21 communication of information that appears in a local newspaper
237	237	22 or on a local broadcast station, for consideration paid to
238	238
239	239
240	240
241	241
242	242
243	243	SB3953 - 6 - LRB103 40673 HLH 73417 b
244	244
245	245
246	246	SB3953- 7 -LRB103 40673 HLH 73417 b SB3953 - 7 - LRB103 40673 HLH 73417 b
247	247	SB3953 - 7 - LRB103 40673 HLH 73417 b
248	248	1 that local newspaper or local broadcast station, and that is
249	249	2 designed to directly or indirectly induce a person to purchase
250	250	3 a good or service.
251	251	4 "Department" means the Department of Commerce and Economic
252	252	5 Opportunity.
253	253	6 "Disqualified organization" means any organization:
254	254	7 (1) described in Section 502(c)(4) of the Internal
255	255	8 Revenue Code that is exempt from taxation under Section
256	256	9 501(a) of the Internal Revenue Code;
257	257	10 (2) described in Section 527 of the Internal Revenue
258	258	11 Code; or
259	259	12 (3) owned or controlled by one or more organizations
260	260	13 described in Section 527 of the Internal Revenue Code.
261	261	14 "Eligible small business" means a business that is
262	262	15 registered in Illinois, is not a disqualified organization,
263	263	16 and has fewer than 50 employees.
264	264	17 "Local newspaper" means a print or digital publication
265	265	18 that:
266	266	19 (1) primarily serves the needs of the State or a
267	267	20 regional or local community in the State; and
268	268	21 (2) employs at least one journalist who resides in the
269	269	22 State and who regularly gathers, collects, photographs,
270	270	23 records, writes, or reports news or information that
271	271	24 concerns local events or other matters of local public
272	272	25 interest.
273	273	26 "Local broadcast station" means a broadcast entity
274	274
275	275
276	276
277	277
278	278
279	279	SB3953 - 7 - LRB103 40673 HLH 73417 b
280	280
281	281
282	282	SB3953- 8 -LRB103 40673 HLH 73417 b SB3953 - 8 - LRB103 40673 HLH 73417 b
283	283	SB3953 - 8 - LRB103 40673 HLH 73417 b
284	284	1 licensed by the Federal Communications Commission that:
285	285	2 (1) primarily serves the needs of the State or a
286	286	3 regional or local community within the State with news,
287	287	4 weather, and emergency information; and
288	288	5 (2) employs at least one journalist who resides in the
289	289	6 State and who regularly gathers, collects, photographs,
290	290	7 records, writes, or reports news or information that
291	291	8 concerns local events or other matters or local public
292	292	9 interest.
293	293	10 (b) For taxable years that begin on or after January 1,
294	294	11 2025 and before January 1, 2030, an eligible small business
295	295	12 may apply to the Department for a credit against the tax
296	296	13 imposed by subsections (a) and (b) of Section 201 of this Act.
297	297	14 The credit shall be in an amount equal to the consideration
298	298	15 paid during the taxable year by the eligible small business to
299	299	16 local newspapers or local broadcast stations for advertising
300	300	17 in this State, but not to exceed a total credit amount of
301	301	18 $2,500 per taxpayer in any taxable year. The total amount of
302	302	19 credits awarded under this Section may not exceed $1,500,000
303	303	20 in any given taxable year. Taxpayers seeking a credit under
304	304	21 this Section shall apply to the Department in the form and
305	305	22 manner required by the Department. Credits under this Section
306	306	23 shall be awarded by the Department on a first-come,
307	307	24 first-served basis. The credit for partners and shareholders
308	308	25 of subchapter S corporations shall be determined as provided
309	309	26 in Section 251.
310	310
311	311
312	312
313	313
314	314
315	315	SB3953 - 8 - LRB103 40673 HLH 73417 b
316	316
317	317
318	318	SB3953- 9 -LRB103 40673 HLH 73417 b SB3953 - 9 - LRB103 40673 HLH 73417 b
319	319	SB3953 - 9 - LRB103 40673 HLH 73417 b
320	320	1 (c) In no event shall a credit under this Section reduce
321	321	2 the taxpayer's liability to less than zero. If the amount of
322	322	3 the credit exceeds the tax liability for the year, the excess
323	323	4 may be carried forward and applied to the tax liability of the
324	324	5 5 taxable years following the excess credit year. The tax
325	325	6 credit shall be applied to the earliest year for which there is
326	326	7 a tax liability. If there are credits for more than one year
327	327	8 that are available to offset a liability, the earlier credit
328	328	9 shall be applied first.
329	329	10 (35 ILCS 5/704A)
330	330	11 Sec. 704A. Employer's return and payment of tax withheld.
331	331	12 (a) In general, every employer who deducts and withholds
332	332	13 or is required to deduct and withhold tax under this Act on or
333	333	14 after January 1, 2008 shall make those payments and returns as
334	334	15 provided in this Section.
335	335	16 (b) Returns. Every employer shall, in the form and manner
336	336	17 required by the Department, make returns with respect to taxes
337	337	18 withheld or required to be withheld under this Article 7 for
338	338	19 each quarter beginning on or after January 1, 2008, on or
339	339	20 before the last day of the first month following the close of
340	340	21 that quarter.
341	341	22 (c) Payments. With respect to amounts withheld or required
342	342	23 to be withheld on or after January 1, 2008:
343	343	24 (1) Semi-weekly payments. For each calendar year, each
344	344	25 employer who withheld or was required to withhold more
345	345
346	346
347	347
348	348
349	349
350	350	SB3953 - 9 - LRB103 40673 HLH 73417 b
351	351
352	352
353	353	SB3953- 10 -LRB103 40673 HLH 73417 b SB3953 - 10 - LRB103 40673 HLH 73417 b
354	354	SB3953 - 10 - LRB103 40673 HLH 73417 b
355	355	1 than $12,000 during the one-year period ending on June 30
356	356	2 of the immediately preceding calendar year, payment must
357	357	3 be made:
358	358	4 (A) on or before each Friday of the calendar year,
359	359	5 for taxes withheld or required to be withheld on the
360	360	6 immediately preceding Saturday, Sunday, Monday, or
361	361	7 Tuesday;
362	362	8 (B) on or before each Wednesday of the calendar
363	363	9 year, for taxes withheld or required to be withheld on
364	364	10 the immediately preceding Wednesday, Thursday, or
365	365	11 Friday.
366	366	12 Beginning with calendar year 2011, payments made under
367	367	13 this paragraph (1) of subsection (c) must be made by
368	368	14 electronic funds transfer.
369	369	15 (2) Semi-weekly payments. Any employer who withholds
370	370	16 or is required to withhold more than $12,000 in any
371	371	17 quarter of a calendar year is required to make payments on
372	372	18 the dates set forth under item (1) of this subsection (c)
373	373	19 for each remaining quarter of that calendar year and for
374	374	20 the subsequent calendar year.
375	375	21 (3) Monthly payments. Each employer, other than an
376	376	22 employer described in items (1) or (2) of this subsection,
377	377	23 shall pay to the Department, on or before the 15th day of
378	378	24 each month the taxes withheld or required to be withheld
379	379	25 during the immediately preceding month.
380	380	26 (4) Payments with returns. Each employer shall pay to
381	381
382	382
383	383
384	384
385	385
386	386	SB3953 - 10 - LRB103 40673 HLH 73417 b
387	387
388	388
389	389	SB3953- 11 -LRB103 40673 HLH 73417 b SB3953 - 11 - LRB103 40673 HLH 73417 b
390	390	SB3953 - 11 - LRB103 40673 HLH 73417 b
391	391	1 the Department, on or before the due date for each return
392	392	2 required to be filed under this Section, any tax withheld
393	393	3 or required to be withheld during the period for which the
394	394	4 return is due and not previously paid to the Department.
395	395	5 (d) Regulatory authority. The Department may, by rule:
396	396	6 (1) Permit employers, in lieu of the requirements of
397	397	7 subsections (b) and (c), to file annual returns due on or
398	398	8 before January 31 of the year for taxes withheld or
399	399	9 required to be withheld during the previous calendar year
400	400	10 and, if the aggregate amounts required to be withheld by
401	401	11 the employer under this Article 7 (other than amounts
402	402	12 required to be withheld under Section 709.5) do not exceed
403	403	13 $1,000 for the previous calendar year, to pay the taxes
404	404	14 required to be shown on each such return no later than the
405	405	15 due date for such return.
406	406	16 (2) Provide that any payment required to be made under
407	407	17 subsection (c)(1) or (c)(2) is deemed to be timely to the
408	408	18 extent paid by electronic funds transfer on or before the
409	409	19 due date for deposit of federal income taxes withheld
410	410	20 from, or federal employment taxes due with respect to, the
411	411	21 wages from which the Illinois taxes were withheld.
412	412	22 (3) Designate one or more depositories to which
413	413	23 payment of taxes required to be withheld under this
414	414	24 Article 7 must be paid by some or all employers.
415	415	25 (4) Increase the threshold dollar amounts at which
416	416	26 employers are required to make semi-weekly payments under
417	417
418	418
419	419
420	420
421	421
422	422	SB3953 - 11 - LRB103 40673 HLH 73417 b
423	423
424	424
425	425	SB3953- 12 -LRB103 40673 HLH 73417 b SB3953 - 12 - LRB103 40673 HLH 73417 b
426	426	SB3953 - 12 - LRB103 40673 HLH 73417 b
427	427	1 subsection (c)(1) or (c)(2).
428	428	2 (e) Annual return and payment. Every employer who deducts
429	429	3 and withholds or is required to deduct and withhold tax from a
430	430	4 person engaged in domestic service employment, as that term is
431	431	5 defined in Section 3510 of the Internal Revenue Code, may
432	432	6 comply with the requirements of this Section with respect to
433	433	7 such employees by filing an annual return and paying the taxes
434	434	8 required to be deducted and withheld on or before the 15th day
435	435	9 of the fourth month following the close of the employer's
436	436	10 taxable year. The Department may allow the employer's return
437	437	11 to be submitted with the employer's individual income tax
438	438	12 return or to be submitted with a return due from the employer
439	439	13 under Section 1400.2 of the Unemployment Insurance Act.
440	440	14 (f) Magnetic media and electronic filing. With respect to
441	441	15 taxes withheld in calendar years prior to 2017, any W-2 Form
442	442	16 that, under the Internal Revenue Code and regulations
443	443	17 promulgated thereunder, is required to be submitted to the
444	444	18 Internal Revenue Service on magnetic media or electronically
445	445	19 must also be submitted to the Department on magnetic media or
446	446	20 electronically for Illinois purposes, if required by the
447	447	21 Department.
448	448	22 With respect to taxes withheld in 2017 and subsequent
449	449	23 calendar years, the Department may, by rule, require that any
450	450	24 return (including any amended return) under this Section and
451	451	25 any W-2 Form that is required to be submitted to the Department
452	452	26 must be submitted on magnetic media or electronically.
453	453
454	454
455	455
456	456
457	457
458	458	SB3953 - 12 - LRB103 40673 HLH 73417 b
459	459
460	460
461	461	SB3953- 13 -LRB103 40673 HLH 73417 b SB3953 - 13 - LRB103 40673 HLH 73417 b
462	462	SB3953 - 13 - LRB103 40673 HLH 73417 b
463	463	1 The due date for submitting W-2 Forms shall be as
464	464	2 prescribed by the Department by rule.
465	465	3 (g) For amounts deducted or withheld after December 31,
466	466	4 2009, a taxpayer who makes an election under subsection (f) of
467	467	5 Section 5-15 of the Economic Development for a Growing Economy
468	468	6 Tax Credit Act for a taxable year shall be allowed a credit
469	469	7 against payments due under this Section for amounts withheld
470	470	8 during the first calendar year beginning after the end of that
471	471	9 taxable year equal to the amount of the credit for the
472	472	10 incremental income tax attributable to full-time employees of
473	473	11 the taxpayer awarded to the taxpayer by the Department of
474	474	12 Commerce and Economic Opportunity under the Economic
475	475	13 Development for a Growing Economy Tax Credit Act for the
476	476	14 taxable year and credits not previously claimed and allowed to
477	477	15 be carried forward under Section 211(4) of this Act as
478	478	16 provided in subsection (f) of Section 5-15 of the Economic
479	479	17 Development for a Growing Economy Tax Credit Act. The credit
480	480	18 or credits may not reduce the taxpayer's obligation for any
481	481	19 payment due under this Section to less than zero. If the amount
482	482	20 of the credit or credits exceeds the total payments due under
483	483	21 this Section with respect to amounts withheld during the
484	484	22 calendar year, the excess may be carried forward and applied
485	485	23 against the taxpayer's liability under this Section in the
486	486	24 succeeding calendar years as allowed to be carried forward
487	487	25 under paragraph (4) of Section 211 of this Act. The credit or
488	488	26 credits shall be applied to the earliest year for which there
489	489
490	490
491	491
492	492
493	493
494	494	SB3953 - 13 - LRB103 40673 HLH 73417 b
495	495
496	496
497	497	SB3953- 14 -LRB103 40673 HLH 73417 b SB3953 - 14 - LRB103 40673 HLH 73417 b
498	498	SB3953 - 14 - LRB103 40673 HLH 73417 b
499	499	1 is a tax liability. If there are credits from more than one
500	500	2 taxable year that are available to offset a liability, the
501	501	3 earlier credit shall be applied first. Each employer who
502	502	4 deducts and withholds or is required to deduct and withhold
503	503	5 tax under this Act and who retains income tax withholdings
504	504	6 under subsection (f) of Section 5-15 of the Economic
505	505	7 Development for a Growing Economy Tax Credit Act must make a
506	506	8 return with respect to such taxes and retained amounts in the
507	507	9 form and manner that the Department, by rule, requires and pay
508	508	10 to the Department or to a depositary designated by the
509	509	11 Department those withheld taxes not retained by the taxpayer.
510	510	12 For purposes of this subsection (g), the term taxpayer shall
511	511	13 include taxpayer and members of the taxpayer's unitary
512	512	14 business group as defined under paragraph (27) of subsection
513	513	15 (a) of Section 1501 of this Act. This Section is exempt from
514	514	16 the provisions of Section 250 of this Act. No credit awarded
515	515	17 under the Economic Development for a Growing Economy Tax
516	516	18 Credit Act for agreements entered into on or after January 1,
517	517	19 2015 may be credited against payments due under this Section.
518	518	20 (g-1) For amounts deducted or withheld after December 31,
519	519	21 2024, a taxpayer who makes an election under the Reimagining
520	520	22 Energy and Vehicles in Illinois Act shall be allowed a credit
521	521	23 against payments due under this Section for amounts withheld
522	522	24 during the first quarterly reporting period beginning after
523	523	25 the certificate is issued equal to the portion of the REV
524	524	26 Illinois Credit attributable to the incremental income tax
525	525
526	526
527	527
528	528
529	529
530	530	SB3953 - 14 - LRB103 40673 HLH 73417 b
531	531
532	532
533	533	SB3953- 15 -LRB103 40673 HLH 73417 b SB3953 - 15 - LRB103 40673 HLH 73417 b
534	534	SB3953 - 15 - LRB103 40673 HLH 73417 b
535	535	1 attributable to new employees and retained employees as
536	536	2 certified by the Department of Commerce and Economic
537	537	3 Opportunity pursuant to an agreement with the taxpayer under
538	538	4 the Reimagining Energy and Vehicles in Illinois Act for the
539	539	5 taxable year. The credit or credits may not reduce the
540	540	6 taxpayer's obligation for any payment due under this Section
541	541	7 to less than zero. If the amount of the credit or credits
542	542	8 exceeds the total payments due under this Section with respect
543	543	9 to amounts withheld during the quarterly reporting period, the
544	544	10 excess may be carried forward and applied against the
545	545	11 taxpayer's liability under this Section in the succeeding
546	546	12 quarterly reporting period as allowed to be carried forward
547	547	13 under paragraph (4) of Section 211 of this Act. The credit or
548	548	14 credits shall be applied to the earliest quarterly reporting
549	549	15 period for which there is a tax liability. If there are credits
550	550	16 from more than one quarterly reporting period that are
551	551	17 available to offset a liability, the earlier credit shall be
552	552	18 applied first. Each employer who deducts and withholds or is
553	553	19 required to deduct and withhold tax under this Act and who
554	554	20 retains income tax withholdings this subsection must make a
555	555	21 return with respect to such taxes and retained amounts in the
556	556	22 form and manner that the Department, by rule, requires and pay
557	557	23 to the Department or to a depositary designated by the
558	558	24 Department those withheld taxes not retained by the taxpayer.
559	559	25 For purposes of this subsection (g-1), the term taxpayer shall
560	560	26 include taxpayer and members of the taxpayer's unitary
561	561
562	562
563	563
564	564
565	565
566	566	SB3953 - 15 - LRB103 40673 HLH 73417 b
567	567
568	568
569	569	SB3953- 16 -LRB103 40673 HLH 73417 b SB3953 - 16 - LRB103 40673 HLH 73417 b
570	570	SB3953 - 16 - LRB103 40673 HLH 73417 b
571	571	1 business group as defined under paragraph (27) of subsection
572	572	2 (a) of Section 1501 of this Act. This Section is exempt from
573	573	3 the provisions of Section 250 of this Act.
574	574	4 (g-2) For amounts deducted or withheld after December 31,
575	575	5 2024, a taxpayer who makes an election under the Manufacturing
576	576	6 Illinois Chips for Real Opportunity (MICRO) Act shall be
577	577	7 allowed a credit against payments due under this Section for
578	578	8 amounts withheld during the first quarterly reporting period
579	579	9 beginning after the certificate is issued equal to the portion
580	580	10 of the MICRO Illinois Credit attributable to the incremental
581	581	11 income tax attributable to new employees and retained
582	582	12 employees as certified by the Department of Commerce and
583	583	13 Economic Opportunity pursuant to an agreement with the
584	584	14 taxpayer under the Manufacturing Illinois Chips for Real
585	585	15 Opportunity (MICRO) Act for the taxable year. The credit or
586	586	16 credits may not reduce the taxpayer's obligation for any
587	587	17 payment due under this Section to less than zero. If the amount
588	588	18 of the credit or credits exceeds the total payments due under
589	589	19 this Section with respect to amounts withheld during the
590	590	20 quarterly reporting period, the excess may be carried forward
591	591	21 and applied against the taxpayer's liability under this
592	592	22 Section in the succeeding quarterly reporting period as
593	593	23 allowed to be carried forward under paragraph (4) of Section
594	594	24 211 of this Act. The credit or credits shall be applied to the
595	595	25 earliest quarterly reporting period for which there is a tax
596	596	26 liability. If there are credits from more than one quarterly
597	597
598	598
599	599
600	600
601	601
602	602	SB3953 - 16 - LRB103 40673 HLH 73417 b
603	603
604	604
605	605	SB3953- 17 -LRB103 40673 HLH 73417 b SB3953 - 17 - LRB103 40673 HLH 73417 b
606	606	SB3953 - 17 - LRB103 40673 HLH 73417 b
607	607	1 reporting period that are available to offset a liability, the
608	608	2 earlier credit shall be applied first. Each employer who
609	609	3 deducts and withholds or is required to deduct and withhold
610	610	4 tax under this Act and who retains income tax withholdings
611	611	5 this subsection must make a return with respect to such taxes
612	612	6 and retained amounts in the form and manner that the
613	613	7 Department, by rule, requires and pay to the Department or to a
614	614	8 depositary designated by the Department those withheld taxes
615	615	9 not retained by the taxpayer. For purposes of this subsection,
616	616	10 the term taxpayer shall include taxpayer and members of the
617	617	11 taxpayer's unitary business group as defined under paragraph
618	618	12 (27) of subsection (a) of Section 1501 of this Act. This
619	619	13 Section is exempt from the provisions of Section 250 of this
620	620	14 Act.
621	621	15 (h) An employer may claim a credit against payments due
622	622	16 under this Section for amounts withheld during the first
623	623	17 calendar year ending after the date on which a tax credit
624	624	18 certificate was issued under Section 35 of the Small Business
625	625	19 Job Creation Tax Credit Act. The credit shall be equal to the
626	626	20 amount shown on the certificate, but may not reduce the
627	627	21 taxpayer's obligation for any payment due under this Section
628	628	22 to less than zero. If the amount of the credit exceeds the
629	629	23 total payments due under this Section with respect to amounts
630	630	24 withheld during the calendar year, the excess may be carried
631	631	25 forward and applied against the taxpayer's liability under
632	632	26 this Section in the 5 succeeding calendar years. The credit
633	633
634	634
635	635
636	636
637	637
638	638	SB3953 - 17 - LRB103 40673 HLH 73417 b
639	639
640	640
641	641	SB3953- 18 -LRB103 40673 HLH 73417 b SB3953 - 18 - LRB103 40673 HLH 73417 b
642	642	SB3953 - 18 - LRB103 40673 HLH 73417 b
643	643	1 shall be applied to the earliest year for which there is a tax
644	644	2 liability. If there are credits from more than one calendar
645	645	3 year that are available to offset a liability, the earlier
646	646	4 credit shall be applied first. This Section is exempt from the
647	647	5 provisions of Section 250 of this Act.
648	648	6 (i) Each employer with 50 or fewer full-time equivalent
649	649	7 employees during the reporting period may claim a credit
650	650	8 against the payments due under this Section for each qualified
651	651	9 employee in an amount equal to the maximum credit allowable.
652	652	10 The credit may be taken against payments due for reporting
653	653	11 periods that begin on or after January 1, 2020, and end on or
654	654	12 before December 31, 2027. An employer may not claim a credit
655	655	13 for an employee who has worked fewer than 90 consecutive days
656	656	14 immediately preceding the reporting period; however, such
657	657	15 credits may accrue during that 90-day period and be claimed
658	658	16 against payments under this Section for future reporting
659	659	17 periods after the employee has worked for the employer at
660	660	18 least 90 consecutive days. In no event may the credit exceed
661	661	19 the employer's liability for the reporting period. Each
662	662	20 employer who deducts and withholds or is required to deduct
663	663	21 and withhold tax under this Act and who retains income tax
664	664	22 withholdings under this subsection must make a return with
665	665	23 respect to such taxes and retained amounts in the form and
666	666	24 manner that the Department, by rule, requires and pay to the
667	667	25 Department or to a depositary designated by the Department
668	668	26 those withheld taxes not retained by the employer.
669	669
670	670
671	671
672	672
673	673
674	674	SB3953 - 18 - LRB103 40673 HLH 73417 b
675	675
676	676
677	677	SB3953- 19 -LRB103 40673 HLH 73417 b SB3953 - 19 - LRB103 40673 HLH 73417 b
678	678	SB3953 - 19 - LRB103 40673 HLH 73417 b
679	679	1 For each reporting period, the employer may not claim a
680	680	2 credit or credits for more employees than the number of
681	681	3 employees making less than the minimum or reduced wage for the
682	682	4 current calendar year during the last reporting period of the
683	683	5 preceding calendar year. Notwithstanding any other provision
684	684	6 of this subsection, an employer shall not be eligible for
685	685	7 credits for a reporting period unless the average wage paid by
686	686	8 the employer per employee for all employees making less than
687	687	9 $55,000 during the reporting period is greater than the
688	688	10 average wage paid by the employer per employee for all
689	689	11 employees making less than $55,000 during the same reporting
690	690	12 period of the prior calendar year.
691	691	13 For purposes of this subsection (i):
692	692	14 "Compensation paid in Illinois" has the meaning ascribed
693	693	15 to that term under Section 304(a)(2)(B) of this Act.
694	694	16 "Employer" and "employee" have the meaning ascribed to
695	695	17 those terms in the Minimum Wage Law, except that "employee"
696	696	18 also includes employees who work for an employer with fewer
697	697	19 than 4 employees. Employers that operate more than one
698	698	20 establishment pursuant to a franchise agreement or that
699	699	21 constitute members of a unitary business group shall aggregate
700	700	22 their employees for purposes of determining eligibility for
701	701	23 the credit.
702	702	24 "Full-time equivalent employees" means the ratio of the
703	703	25 number of paid hours during the reporting period and the
704	704	26 number of working hours in that period.
705	705
706	706
707	707
708	708
709	709
710	710	SB3953 - 19 - LRB103 40673 HLH 73417 b
711	711
712	712
713	713	SB3953- 20 -LRB103 40673 HLH 73417 b SB3953 - 20 - LRB103 40673 HLH 73417 b
714	714	SB3953 - 20 - LRB103 40673 HLH 73417 b
715	715	1 "Maximum credit" means the percentage listed below of the
716	716	2 difference between the amount of compensation paid in Illinois
717	717	3 to employees who are paid not more than the required minimum
718	718	4 wage reduced by the amount of compensation paid in Illinois to
719	719	5 employees who were paid less than the current required minimum
720	720	6 wage during the reporting period prior to each increase in the
721	721	7 required minimum wage on January 1. If an employer pays an
722	722	8 employee more than the required minimum wage and that employee
723	723	9 previously earned less than the required minimum wage, the
724	724	10 employer may include the portion that does not exceed the
725	725	11 required minimum wage as compensation paid in Illinois to
726	726	12 employees who are paid not more than the required minimum
727	727	13 wage.
728	728	14 (1) 25% for reporting periods beginning on or after
729	729	15 January 1, 2020 and ending on or before December 31, 2020;
730	730	16 (2) 21% for reporting periods beginning on or after
731	731	17 January 1, 2021 and ending on or before December 31, 2021;
732	732	18 (3) 17% for reporting periods beginning on or after
733	733	19 January 1, 2022 and ending on or before December 31, 2022;
734	734	20 (4) 13% for reporting periods beginning on or after
735	735	21 January 1, 2023 and ending on or before December 31, 2023;
736	736	22 (5) 9% for reporting periods beginning on or after
737	737	23 January 1, 2024 and ending on or before December 31, 2024;
738	738	24 (6) 5% for reporting periods beginning on or after
739	739	25 January 1, 2025 and ending on or before December 31, 2025.
740	740	26 The amount computed under this subsection may continue to
741	741
742	742
743	743
744	744
745	745
746	746	SB3953 - 20 - LRB103 40673 HLH 73417 b
747	747
748	748
749	749	SB3953- 21 -LRB103 40673 HLH 73417 b SB3953 - 21 - LRB103 40673 HLH 73417 b
750	750	SB3953 - 21 - LRB103 40673 HLH 73417 b
751	751	1 be claimed for reporting periods beginning on or after January
752	752	2 1, 2026 and:
753	753	3 (A) ending on or before December 31, 2026 for
754	754	4 employers with more than 5 employees; or
755	755	5 (B) ending on or before December 31, 2027 for
756	756	6 employers with no more than 5 employees.
757	757	7 "Qualified employee" means an employee who is paid not
758	758	8 more than the required minimum wage and has an average wage
759	759	9 paid per hour by the employer during the reporting period
760	760	10 equal to or greater than his or her average wage paid per hour
761	761	11 by the employer during each reporting period for the
762	762	12 immediately preceding 12 months. A new qualified employee is
763	763	13 deemed to have earned the required minimum wage in the
764	764	14 preceding reporting period.
765	765	15 "Reporting period" means the quarter for which a return is
766	766	16 required to be filed under subsection (b) of this Section.
767	767	17 (j) For reporting periods beginning on or after January 1,
768	768	18 2023, if a private employer grants all of its employees the
769	769	19 option of taking a paid leave of absence of at least 30 days
770	770	20 for the purpose of serving as an organ donor or bone marrow
771	771	21 donor, then the private employer may take a credit against the
772	772	22 payments due under this Section in an amount equal to the
773	773	23 amount withheld under this Section with respect to wages paid
774	774	24 while the employee is on organ donation leave, not to exceed
775	775	25 $1,000 in withholdings for each employee who takes organ
776	776	26 donation leave. To be eligible for the credit, such a leave of
777	777
778	778
779	779
780	780
781	781
782	782	SB3953 - 21 - LRB103 40673 HLH 73417 b
783	783
784	784
785	785	SB3953- 22 -LRB103 40673 HLH 73417 b SB3953 - 22 - LRB103 40673 HLH 73417 b
786	786	SB3953 - 22 - LRB103 40673 HLH 73417 b
787	787	1 absence must be taken without loss of pay, vacation time,
788	788	2 compensatory time, personal days, or sick time for at least
789	789	3 the first 30 days of the leave of absence. The private employer
790	790	4 shall adopt rules governing organ donation leave, including
791	791	5 rules that (i) establish conditions and procedures for
792	792	6 requesting and approving leave and (ii) require medical
793	793	7 documentation of the proposed organ or bone marrow donation
794	794	8 before leave is approved by the private employer. A private
795	795	9 employer must provide, in the manner required by the
796	796	10 Department, documentation from the employee's medical
797	797	11 provider, which the private employer receives from the
798	798	12 employee, that verifies the employee's organ donation. The
799	799	13 private employer must also provide, in the manner required by
800	800	14 the Department, documentation that shows that a qualifying
801	801	15 organ donor leave policy was in place and offered to all
802	802	16 qualifying employees at the time the leave was taken. For the
803	803	17 private employer to receive the tax credit, the employee
804	804	18 taking organ donor leave must allow for the applicable medical
805	805	19 records to be disclosed to the Department. If the private
806	806	20 employer cannot provide the required documentation to the
807	807	21 Department, then the private employer is ineligible for the
808	808	22 credit under this Section. A private employer must also
809	809	23 provide, in the form required by the Department, any
810	810	24 additional documentation or information required by the
811	811	25 Department to administer the credit under this Section. The
812	812	26 credit under this subsection (j) shall be taken within one
813	813
814	814
815	815
816	816
817	817
818	818	SB3953 - 22 - LRB103 40673 HLH 73417 b
819	819
820	820
821	821	SB3953- 23 -LRB103 40673 HLH 73417 b SB3953 - 23 - LRB103 40673 HLH 73417 b
822	822	SB3953 - 23 - LRB103 40673 HLH 73417 b
823	823	1 year after the date upon which the organ donation leave
824	824	2 begins. If the leave taken spans into a second tax year, the
825	825	3 employer qualifies for the allowable credit in the later of
826	826	4 the 2 years. If the amount of credit exceeds the tax liability
827	827	5 for the year, the excess may be carried and applied to the tax
828	828	6 liability for the 3 taxable years following the excess credit
829	829	7 year. The tax credit shall be applied to the earliest year for
830	830	8 which there is a tax liability. If there are credits for more
831	831	9 than one year that are available to offset liability, the
832	832	10 earlier credit shall be applied first.
833	833	11 Nothing in this subsection (j) prohibits a private
834	834	12 employer from providing an unpaid leave of absence to its
835	835	13 employees for the purpose of serving as an organ donor or bone
836	836	14 marrow donor; however, if the employer's policy provides for
837	837	15 fewer than 30 days of paid leave for organ or bone marrow
838	838	16 donation, then the employer shall not be eligible for the
839	839	17 credit under this Section.
840	840	18 As used in this subsection (j):
841	841	19 "Organ" means any biological tissue of the human body that
842	842	20 may be donated by a living donor, including, but not limited
843	843	21 to, the kidney, liver, lung, pancreas, intestine, bone, skin,
844	844	22 or any subpart of those organs.
845	845	23 "Organ donor" means a person from whose body an organ is
846	846	24 taken to be transferred to the body of another person.
847	847	25 "Private employer" means a sole proprietorship,
848	848	26 corporation, partnership, limited liability company, or other
849	849
850	850
851	851
852	852
853	853
854	854	SB3953 - 23 - LRB103 40673 HLH 73417 b
855	855
856	856
857	857	SB3953- 24 -LRB103 40673 HLH 73417 b SB3953 - 24 - LRB103 40673 HLH 73417 b
858	858	SB3953 - 24 - LRB103 40673 HLH 73417 b
859	859	1 entity with one or more employees. "Private employer" does not
860	860	2 include a municipality, county, State agency, or other public
861	861	3 employer.
862	862	4 This subsection (j) is exempt from the provisions of
863	863	5 Section 250 of this Act.
864	864	6 (k) A
865	865	taxpayer who is issued a certificate under the Local
866	866	7 Journalism Sustainability Act for a taxable year shall be
867	867	8 allowed a credit against payments due under this Section as
868	868	9 provided in that Act.
869	869	10 (Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
870	870	11 102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
871	871	12 Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
872	872	13 2-3-23.)
873	873
874	874
875	875
876	876
877	877
878	878	SB3953 - 24 - LRB103 40673 HLH 73417 b