Illinois 2025-2026 Regular Session

Illinois House Bill HB1188 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1188 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 35 ILCS 5/704A Amends the Illinois Income Tax Act. Provides that an employer with 250 or fewer full-time equivalent employees during the reporting period may claim a credit against the withholding payments for each qualified employee. Provides that a qualified employee is an employee who receives a raise from an employer, whose post-raise annual salary attributable to that employer is not less than $31,200, and who continues to be employed by the employer during the reporting period for which the credit is taken. LRB104 06041 HLH 16074 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1188 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 35 ILCS 5/704A 35 ILCS 5/704A Amends the Illinois Income Tax Act. Provides that an employer with 250 or fewer full-time equivalent employees during the reporting period may claim a credit against the withholding payments for each qualified employee. Provides that a qualified employee is an employee who receives a raise from an employer, whose post-raise annual salary attributable to that employer is not less than $31,200, and who continues to be employed by the employer during the reporting period for which the credit is taken. LRB104 06041 HLH 16074 b LRB104 06041 HLH 16074 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1188 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/704A 35 ILCS 5/704A
4	4	35 ILCS 5/704A
5	5	Amends the Illinois Income Tax Act. Provides that an employer with 250 or fewer full-time equivalent employees during the reporting period may claim a credit against the withholding payments for each qualified employee. Provides that a qualified employee is an employee who receives a raise from an employer, whose post-raise annual salary attributable to that employer is not less than $31,200, and who continues to be employed by the employer during the reporting period for which the credit is taken.
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8	8	A BILL FOR
9	9	HB1188LRB104 06041 HLH 16074 b HB1188 LRB104 06041 HLH 16074 b
10	10	HB1188 LRB104 06041 HLH 16074 b
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 Section 704A as follows:
16	16	6 (35 ILCS 5/704A)
17	17	7 Sec. 704A. Employer's return and payment of tax withheld.
18	18	8 (a) In general, every employer who deducts and withholds
19	19	9 or is required to deduct and withhold tax under this Act on or
20	20	10 after January 1, 2008 shall make those payments and returns as
21	21	11 provided in this Section.
22	22	12 (b) Returns. Every employer shall, in the form and manner
23	23	13 required by the Department, make returns with respect to taxes
24	24	14 withheld or required to be withheld under this Article 7 for
25	25	15 each quarter beginning on or after January 1, 2008, on or
26	26	16 before the last day of the first month following the close of
27	27	17 that quarter.
28	28	18 (c) Payments. With respect to amounts withheld or required
29	29	19 to be withheld on or after January 1, 2008:
30	30	20 (1) Semi-weekly payments. For each calendar year, each
31	31	21 employer who withheld or was required to withhold more
32	32	22 than $12,000 during the one-year period ending on June 30
33	33	23 of the immediately preceding calendar year, payment must
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1188 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/704A 35 ILCS 5/704A
39	39	35 ILCS 5/704A
40	40	Amends the Illinois Income Tax Act. Provides that an employer with 250 or fewer full-time equivalent employees during the reporting period may claim a credit against the withholding payments for each qualified employee. Provides that a qualified employee is an employee who receives a raise from an employer, whose post-raise annual salary attributable to that employer is not less than $31,200, and who continues to be employed by the employer during the reporting period for which the credit is taken.
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43	43	A BILL FOR
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49	49	35 ILCS 5/704A
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68	68	1 be made:
69	69	2 (A) on or before each Friday of the calendar year,
70	70	3 for taxes withheld or required to be withheld on the
71	71	4 immediately preceding Saturday, Sunday, Monday, or
72	72	5 Tuesday;
73	73	6 (B) on or before each Wednesday of the calendar
74	74	7 year, for taxes withheld or required to be withheld on
75	75	8 the immediately preceding Wednesday, Thursday, or
76	76	9 Friday.
77	77	10 Beginning with calendar year 2011, payments made under
78	78	11 this paragraph (1) of subsection (c) must be made by
79	79	12 electronic funds transfer.
80	80	13 (2) Semi-weekly payments. Any employer who withholds
81	81	14 or is required to withhold more than $12,000 in any
82	82	15 quarter of a calendar year is required to make payments on
83	83	16 the dates set forth under item (1) of this subsection (c)
84	84	17 for each remaining quarter of that calendar year and for
85	85	18 the subsequent calendar year.
86	86	19 (3) Monthly payments. Each employer, other than an
87	87	20 employer described in items (1) or (2) of this subsection,
88	88	21 shall pay to the Department, on or before the 15th day of
89	89	22 each month the taxes withheld or required to be withheld
90	90	23 during the immediately preceding month.
91	91	24 (4) Payments with returns. Each employer shall pay to
92	92	25 the Department, on or before the due date for each return
93	93	26 required to be filed under this Section, any tax withheld
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104	104	1 or required to be withheld during the period for which the
105	105	2 return is due and not previously paid to the Department.
106	106	3 (d) Regulatory authority. The Department may, by rule:
107	107	4 (1) Permit employers, in lieu of the requirements of
108	108	5 subsections (b) and (c), to file annual returns due on or
109	109	6 before January 31 of the year for taxes withheld or
110	110	7 required to be withheld during the previous calendar year
111	111	8 and, if the aggregate amounts required to be withheld by
112	112	9 the employer under this Article 7 (other than amounts
113	113	10 required to be withheld under Section 709.5) do not exceed
114	114	11 $1,000 for the previous calendar year, to pay the taxes
115	115	12 required to be shown on each such return no later than the
116	116	13 due date for such return.
117	117	14 (2) Provide that any payment required to be made under
118	118	15 subsection (c)(1) or (c)(2) is deemed to be timely to the
119	119	16 extent paid by electronic funds transfer on or before the
120	120	17 due date for deposit of federal income taxes withheld
121	121	18 from, or federal employment taxes due with respect to, the
122	122	19 wages from which the Illinois taxes were withheld.
123	123	20 (3) Designate one or more depositories to which
124	124	21 payment of taxes required to be withheld under this
125	125	22 Article 7 must be paid by some or all employers.
126	126	23 (4) Increase the threshold dollar amounts at which
127	127	24 employers are required to make semi-weekly payments under
128	128	25 subsection (c)(1) or (c)(2).
129	129	26 (e) Annual return and payment. Every employer who deducts
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140	140	1 and withholds or is required to deduct and withhold tax from a
141	141	2 person engaged in domestic service employment, as that term is
142	142	3 defined in Section 3510 of the Internal Revenue Code, may
143	143	4 comply with the requirements of this Section with respect to
144	144	5 such employees by filing an annual return and paying the taxes
145	145	6 required to be deducted and withheld on or before the 15th day
146	146	7 of the fourth month following the close of the employer's
147	147	8 taxable year. The Department may allow the employer's return
148	148	9 to be submitted with the employer's individual income tax
149	149	10 return or to be submitted with a return due from the employer
150	150	11 under Section 1400.2 of the Unemployment Insurance Act.
151	151	12 (f) Magnetic media and electronic filing. With respect to
152	152	13 taxes withheld in calendar years prior to 2017, any W-2 Form
153	153	14 that, under the Internal Revenue Code and regulations
154	154	15 promulgated thereunder, is required to be submitted to the
155	155	16 Internal Revenue Service on magnetic media or electronically
156	156	17 must also be submitted to the Department on magnetic media or
157	157	18 electronically for Illinois purposes, if required by the
158	158	19 Department.
159	159	20 With respect to taxes withheld in 2017 and subsequent
160	160	21 calendar years, the Department may, by rule, require that any
161	161	22 return (including any amended return) under this Section and
162	162	23 any W-2 Form that is required to be submitted to the Department
163	163	24 must be submitted on magnetic media or electronically.
164	164	25 The due date for submitting W-2 Forms shall be as
165	165	26 prescribed by the Department by rule.
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176	176	1 (g) For amounts deducted or withheld after December 31,
177	177	2 2009, a taxpayer who makes an election under subsection (f) of
178	178	3 Section 5-15 of the Economic Development for a Growing Economy
179	179	4 Tax Credit Act for a taxable year shall be allowed a credit
180	180	5 against payments due under this Section for amounts withheld
181	181	6 during the first calendar year beginning after the end of that
182	182	7 taxable year equal to the amount of the credit for the
183	183	8 incremental income tax attributable to full-time employees of
184	184	9 the taxpayer awarded to the taxpayer by the Department of
185	185	10 Commerce and Economic Opportunity under the Economic
186	186	11 Development for a Growing Economy Tax Credit Act for the
187	187	12 taxable year and credits not previously claimed and allowed to
188	188	13 be carried forward under Section 211(4) of this Act as
189	189	14 provided in subsection (f) of Section 5-15 of the Economic
190	190	15 Development for a Growing Economy Tax Credit Act. The credit
191	191	16 or credits may not reduce the taxpayer's obligation for any
192	192	17 payment due under this Section to less than zero. If the amount
193	193	18 of the credit or credits exceeds the total payments due under
194	194	19 this Section with respect to amounts withheld during the
195	195	20 calendar year, the excess may be carried forward and applied
196	196	21 against the taxpayer's liability under this Section in the
197	197	22 succeeding calendar years as allowed to be carried forward
198	198	23 under paragraph (4) of Section 211 of this Act. The credit or
199	199	24 credits shall be applied to the earliest year for which there
200	200	25 is a tax liability. If there are credits from more than one
201	201	26 taxable year that are available to offset a liability, the
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212	212	1 earlier credit shall be applied first. Each employer who
213	213	2 deducts and withholds or is required to deduct and withhold
214	214	3 tax under this Act and who retains income tax withholdings
215	215	4 under subsection (f) of Section 5-15 of the Economic
216	216	5 Development for a Growing Economy Tax Credit Act must make a
217	217	6 return with respect to such taxes and retained amounts in the
218	218	7 form and manner that the Department, by rule, requires and pay
219	219	8 to the Department or to a depositary designated by the
220	220	9 Department those withheld taxes not retained by the taxpayer.
221	221	10 For purposes of this subsection (g), the term taxpayer shall
222	222	11 include taxpayer and members of the taxpayer's unitary
223	223	12 business group as defined under paragraph (27) of subsection
224	224	13 (a) of Section 1501 of this Act. This Section is exempt from
225	225	14 the provisions of Section 250 of this Act. No credit awarded
226	226	15 under the Economic Development for a Growing Economy Tax
227	227	16 Credit Act for agreements entered into on or after January 1,
228	228	17 2015 may be credited against payments due under this Section.
229	229	18 (g-1) For amounts deducted or withheld after December 31,
230	230	19 2024, a taxpayer who makes an election under the Reimagining
231	231	20 Energy and Vehicles in Illinois Act shall be allowed a credit
232	232	21 against payments due under this Section for amounts withheld
233	233	22 during the first quarterly reporting period beginning after
234	234	23 the certificate is issued equal to the portion of the REV
235	235	24 Illinois Credit attributable to the incremental income tax
236	236	25 attributable to new employees and retained employees as
237	237	26 certified by the Department of Commerce and Economic
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248	248	1 Opportunity pursuant to an agreement with the taxpayer under
249	249	2 the Reimagining Energy and Vehicles in Illinois Act for the
250	250	3 taxable year. The credit or credits may not reduce the
251	251	4 taxpayer's obligation for any payment due under this Section
252	252	5 to less than zero. If the amount of the credit or credits
253	253	6 exceeds the total payments due under this Section with respect
254	254	7 to amounts withheld during the quarterly reporting period, the
255	255	8 excess may be carried forward and applied against the
256	256	9 taxpayer's liability under this Section in the succeeding
257	257	10 quarterly reporting period as allowed to be carried forward
258	258	11 under paragraph (4) of Section 211 of this Act. The credit or
259	259	12 credits shall be applied to the earliest quarterly reporting
260	260	13 period for which there is a tax liability. If there are credits
261	261	14 from more than one quarterly reporting period that are
262	262	15 available to offset a liability, the earlier credit shall be
263	263	16 applied first. Each employer who deducts and withholds or is
264	264	17 required to deduct and withhold tax under this Act and who
265	265	18 retains income tax withholdings this subsection must make a
266	266	19 return with respect to such taxes and retained amounts in the
267	267	20 form and manner that the Department, by rule, requires and pay
268	268	21 to the Department or to a depositary designated by the
269	269	22 Department those withheld taxes not retained by the taxpayer.
270	270	23 For purposes of this subsection (g-1), the term taxpayer shall
271	271	24 include taxpayer and members of the taxpayer's unitary
272	272	25 business group as defined under paragraph (27) of subsection
273	273	26 (a) of Section 1501 of this Act. This Section is exempt from
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284	284	1 the provisions of Section 250 of this Act.
285	285	2 (g-2) For amounts deducted or withheld after December 31,
286	286	3 2024, a taxpayer who makes an election under the Manufacturing
287	287	4 Illinois Chips for Real Opportunity (MICRO) Act shall be
288	288	5 allowed a credit against payments due under this Section for
289	289	6 amounts withheld during the first quarterly reporting period
290	290	7 beginning after the certificate is issued equal to the portion
291	291	8 of the MICRO Illinois Credit attributable to the incremental
292	292	9 income tax attributable to new employees and retained
293	293	10 employees as certified by the Department of Commerce and
294	294	11 Economic Opportunity pursuant to an agreement with the
295	295	12 taxpayer under the Manufacturing Illinois Chips for Real
296	296	13 Opportunity (MICRO) Act for the taxable year. The credit or
297	297	14 credits may not reduce the taxpayer's obligation for any
298	298	15 payment due under this Section to less than zero. If the amount
299	299	16 of the credit or credits exceeds the total payments due under
300	300	17 this Section with respect to amounts withheld during the
301	301	18 quarterly reporting period, the excess may be carried forward
302	302	19 and applied against the taxpayer's liability under this
303	303	20 Section in the succeeding quarterly reporting period as
304	304	21 allowed to be carried forward under paragraph (4) of Section
305	305	22 211 of this Act. The credit or credits shall be applied to the
306	306	23 earliest quarterly reporting period for which there is a tax
307	307	24 liability. If there are credits from more than one quarterly
308	308	25 reporting period that are available to offset a liability, the
309	309	26 earlier credit shall be applied first. Each employer who
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320	320	1 deducts and withholds or is required to deduct and withhold
321	321	2 tax under this Act and who retains income tax withholdings
322	322	3 this subsection must make a return with respect to such taxes
323	323	4 and retained amounts in the form and manner that the
324	324	5 Department, by rule, requires and pay to the Department or to a
325	325	6 depositary designated by the Department those withheld taxes
326	326	7 not retained by the taxpayer. For purposes of this subsection,
327	327	8 the term taxpayer shall include taxpayer and members of the
328	328	9 taxpayer's unitary business group as defined under paragraph
329	329	10 (27) of subsection (a) of Section 1501 of this Act. This
330	330	11 Section is exempt from the provisions of Section 250 of this
331	331	12 Act.
332	332	13 (h) An employer may claim a credit against payments due
333	333	14 under this Section for amounts withheld during the first
334	334	15 calendar year ending after the date on which a tax credit
335	335	16 certificate was issued under Section 35 of the Small Business
336	336	17 Job Creation Tax Credit Act. The credit shall be equal to the
337	337	18 amount shown on the certificate, but may not reduce the
338	338	19 taxpayer's obligation for any payment due under this Section
339	339	20 to less than zero. If the amount of the credit exceeds the
340	340	21 total payments due under this Section with respect to amounts
341	341	22 withheld during the calendar year, the excess may be carried
342	342	23 forward and applied against the taxpayer's liability under
343	343	24 this Section in the 5 succeeding calendar years. The credit
344	344	25 shall be applied to the earliest year for which there is a tax
345	345	26 liability. If there are credits from more than one calendar
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356	356	1 year that are available to offset a liability, the earlier
357	357	2 credit shall be applied first. This Section is exempt from the
358	358	3 provisions of Section 250 of this Act.
359	359	4 (i) Each employer with 50 or fewer full-time equivalent
360	360	5 employees during the reporting period may claim a credit
361	361	6 against the payments due under this Section for each qualified
362	362	7 employee in an amount equal to the maximum credit allowable.
363	363	8 The credit may be taken against payments due for reporting
364	364	9 periods that begin on or after January 1, 2020, and end on or
365	365	10 before December 31, 2027. An employer may not claim a credit
366	366	11 for an employee who has worked fewer than 90 consecutive days
367	367	12 immediately preceding the reporting period; however, such
368	368	13 credits may accrue during that 90-day period and be claimed
369	369	14 against payments under this Section for future reporting
370	370	15 periods after the employee has worked for the employer at
371	371	16 least 90 consecutive days. In no event may the credit exceed
372	372	17 the employer's liability for the reporting period. Each
373	373	18 employer who deducts and withholds or is required to deduct
374	374	19 and withhold tax under this Act and who retains income tax
375	375	20 withholdings under this subsection must make a return with
376	376	21 respect to such taxes and retained amounts in the form and
377	377	22 manner that the Department, by rule, requires and pay to the
378	378	23 Department or to a depositary designated by the Department
379	379	24 those withheld taxes not retained by the employer.
380	380	25 For each reporting period, the employer may not claim a
381	381	26 credit or credits for more employees than the number of
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392	392	1 employees making less than the minimum or reduced wage for the
393	393	2 current calendar year during the last reporting period of the
394	394	3 preceding calendar year. Notwithstanding any other provision
395	395	4 of this subsection, an employer shall not be eligible for
396	396	5 credits for a reporting period unless the average wage paid by
397	397	6 the employer per employee for all employees making less than
398	398	7 $55,000 during the reporting period is greater than the
399	399	8 average wage paid by the employer per employee for all
400	400	9 employees making less than $55,000 during the same reporting
401	401	10 period of the prior calendar year.
402	402	11 For purposes of this subsection (i):
403	403	12 "Compensation paid in Illinois" has the meaning ascribed
404	404	13 to that term under Section 304(a)(2)(B) of this Act.
405	405	14 "Employer" and "employee" have the meaning ascribed to
406	406	15 those terms in the Minimum Wage Law, except that "employee"
407	407	16 also includes employees who work for an employer with fewer
408	408	17 than 4 employees. Employers that operate more than one
409	409	18 establishment pursuant to a franchise agreement or that
410	410	19 constitute members of a unitary business group shall aggregate
411	411	20 their employees for purposes of determining eligibility for
412	412	21 the credit.
413	413	22 "Full-time equivalent employees" means the ratio of the
414	414	23 number of paid hours during the reporting period and the
415	415	24 number of working hours in that period.
416	416	25 "Maximum credit" means the percentage listed below of the
417	417	26 difference between the amount of compensation paid in Illinois
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428	428	1 to employees who are paid not more than the required minimum
429	429	2 wage reduced by the amount of compensation paid in Illinois to
430	430	3 employees who were paid less than the current required minimum
431	431	4 wage during the reporting period prior to each increase in the
432	432	5 required minimum wage on January 1. If an employer pays an
433	433	6 employee more than the required minimum wage and that employee
434	434	7 previously earned less than the required minimum wage, the
435	435	8 employer may include the portion that does not exceed the
436	436	9 required minimum wage as compensation paid in Illinois to
437	437	10 employees who are paid not more than the required minimum
438	438	11 wage.
439	439	12 (1) 25% for reporting periods beginning on or after
440	440	13 January 1, 2020 and ending on or before December 31, 2020;
441	441	14 (2) 21% for reporting periods beginning on or after
442	442	15 January 1, 2021 and ending on or before December 31, 2021;
443	443	16 (3) 17% for reporting periods beginning on or after
444	444	17 January 1, 2022 and ending on or before December 31, 2022;
445	445	18 (4) 13% for reporting periods beginning on or after
446	446	19 January 1, 2023 and ending on or before December 31, 2023;
447	447	20 (5) 9% for reporting periods beginning on or after
448	448	21 January 1, 2024 and ending on or before December 31, 2024;
449	449	22 (6) 5% for reporting periods beginning on or after
450	450	23 January 1, 2025 and ending on or before December 31, 2025.
451	451	24 The amount computed under this subsection may continue to
452	452	25 be claimed for reporting periods beginning on or after January
453	453	26 1, 2026 and:
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464	464	1 (A) ending on or before December 31, 2026 for
465	465	2 employers with more than 5 employees; or
466	466	3 (B) ending on or before December 31, 2027 for
467	467	4 employers with no more than 5 employees.
468	468	5 "Qualified employee" means an employee who is paid not
469	469	6 more than the required minimum wage and has an average wage
470	470	7 paid per hour by the employer during the reporting period
471	471	8 equal to or greater than his or her average wage paid per hour
472	472	9 by the employer during each reporting period for the
473	473	10 immediately preceding 12 months. A new qualified employee is
474	474	11 deemed to have earned the required minimum wage in the
475	475	12 preceding reporting period.
476	476	13 "Reporting period" means the quarter for which a return is
477	477	14 required to be filed under subsection (b) of this Section.
478	478	15 (i-5) Each employer with 250 or fewer full-time equivalent
479	479	16 employees during the reporting period may claim a credit
480	480	17 against the payments due under this Section for each qualified
481	481	18 employee in an amount equal to the credit amount. The credit
482	482	19 may be taken against payments due for reporting periods that
483	483	20 begin on or after January 1, 2025 and end on or before December
484	484	21 31, 2034. Credits for a particular qualified employee may be
485	485	22 taken during the tax year in which the credit was earned. An
486	486	23 employer may not claim a credit for an employee who has worked
487	487	24 fewer than 180 consecutive days immediately preceding the
488	488	25 first day of the first pay period during which the raise is in
489	489	26 effect. In no event may the credit exceed the employer's
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500	500	1 liability for the reporting period. Each employer who deducts
501	501	2 and withholds or is required to deduct and withhold tax under
502	502	3 this Act and who retains income tax withholdings under this
503	503	4 subsection must make a return with respect to such taxes and
504	504	5 retained amounts in the form and manner that the Department,
505	505	6 by rule, requires and pay to the Department or to a depositary
506	506	7 designated by the Department those withheld taxes not retained
507	507	8 by the employer.
508	508	9 Notwithstanding any other provision of this subsection, an
509	509	10 employer is not eligible for credits under this subsection for
510	510	11 a reporting period unless the average wage paid by the
511	511	12 employer per employee for all employees making less than
512	512	13 $52,000 during the reporting period is greater than the
513	513	14 average wage paid by the employer per employee for all
514	514	15 employees making less than $52,000 during the same reporting
515	515	16 period of the prior calendar year.
516	516	17 For purposes of this subsection (i-5):
517	517	18 "Base period" means the employer's reporting period that
518	518	19 immediately precedes the reporting period in which the
519	519	20 qualified employee's raise takes effect.
520	520	21 "Compensation paid in Illinois" has the meaning ascribed
521	521	22 to that term under paragraph (B) of item (2) of subsection (a)
522	522	23 of Section 304 of this Act.
523	523	24 "Credit amount" means the amount listed below:
524	524	25 (1) 25% of the difference between the amount of
525	525	26 compensation paid in Illinois by the employer to the
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536	536	1 qualified employee in the base period and the portion of
537	537	2 the compensation paid in Illinois by the employer to the
538	538	3 qualified employee in the reporting period for which the
539	539	4 credit is taken that does not exceed $37,400 when
540	540	5 annualized; plus
541	541	6 (2) 20% of the compensation paid in Illinois by the
542	542	7 employer to the qualified employee in the reporting period
543	543	8 for which the credit is taken that exceeds the greater of
544	544	9 (i) the amount of compensation paid in Illinois by the
545	545	10 employer to the qualified employee in the base period or
546	546	11 (ii) $37,400 when annualized but does not exceed $41,600
547	547	12 when annualized; plus
548	548	13 (3) 15% of the compensation paid in Illinois by the
549	549	14 employer to the qualified employee in the reporting period
550	550	15 for which the credit is taken that exceeds the greater of
551	551	16 (i) the amount of compensation paid in Illinois by the
552	552	17 employer to the qualified employee in the base period or
553	553	18 (ii) $41,600 when annualized but does not exceed $52,000
554	554	19 when annualized.
555	555	20 "Employer" and "employee" have the meanings ascribed to
556	556	21 those terms in the Minimum Wage Law, except that "employee"
557	557	22 also includes employees who work for an employer with fewer
558	558	23 than 4 employees. Employers that operate more than one
559	559	24 establishment pursuant to a franchise agreement or that
560	560	25 constitute members of a unitary business group shall aggregate
561	561	26 their employees for purposes of determining eligibility for
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572	572	1 the credit.
573	573	2 "Full-time equivalent employees" means the ratio of the
574	574	3 number of paid hours during the reporting period and the
575	575	4 number of working hours in that period.
576	576	5 "Qualified employee" means an employee who receives a
577	577	6 raise from an employer, whose post-raise annual salary
578	578	7 attributable to that employer is not less than $31,200, and
579	579	8 who continues to be employed by the employer during the
580	580	9 reporting period for which the credit is taken.
581	581	10 "Raise" means a permanent increase in an employee's hourly
582	582	11 pay or salary that does not result in reduced hours or reduced
583	583	12 benefits and is not a temporary bonus.
584	584	13 "Reporting period" means the quarter for which a return is
585	585	14 required to be filed under subsection (b) of this Section.
586	586	15 (j) For reporting periods beginning on or after January 1,
587	587	16 2023, if a private employer grants all of its employees the
588	588	17 option of taking a paid leave of absence of at least 30 days
589	589	18 for the purpose of serving as an organ donor or bone marrow
590	590	19 donor, then the private employer may take a credit against the
591	591	20 payments due under this Section in an amount equal to the
592	592	21 amount withheld under this Section with respect to wages paid
593	593	22 while the employee is on organ donation leave, not to exceed
594	594	23 $1,000 in withholdings for each employee who takes organ
595	595	24 donation leave. To be eligible for the credit, such a leave of
596	596	25 absence must be taken without loss of pay, vacation time,
597	597	26 compensatory time, personal days, or sick time for at least
598	598
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608	608	1 the first 30 days of the leave of absence. The private employer
609	609	2 shall adopt rules governing organ donation leave, including
610	610	3 rules that (i) establish conditions and procedures for
611	611	4 requesting and approving leave and (ii) require medical
612	612	5 documentation of the proposed organ or bone marrow donation
613	613	6 before leave is approved by the private employer. A private
614	614	7 employer must provide, in the manner required by the
615	615	8 Department, documentation from the employee's medical
616	616	9 provider, which the private employer receives from the
617	617	10 employee, that verifies the employee's organ donation. The
618	618	11 private employer must also provide, in the manner required by
619	619	12 the Department, documentation that shows that a qualifying
620	620	13 organ donor leave policy was in place and offered to all
621	621	14 qualifying employees at the time the leave was taken. For the
622	622	15 private employer to receive the tax credit, the employee
623	623	16 taking organ donor leave must allow for the applicable medical
624	624	17 records to be disclosed to the Department. If the private
625	625	18 employer cannot provide the required documentation to the
626	626	19 Department, then the private employer is ineligible for the
627	627	20 credit under this Section. A private employer must also
628	628	21 provide, in the form required by the Department, any
629	629	22 additional documentation or information required by the
630	630	23 Department to administer the credit under this Section. The
631	631	24 credit under this subsection (j) shall be taken within one
632	632	25 year after the date upon which the organ donation leave
633	633	26 begins. If the leave taken spans into a second tax year, the
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644	644	1 employer qualifies for the allowable credit in the later of
645	645	2 the 2 years. If the amount of credit exceeds the tax liability
646	646	3 for the year, the excess may be carried and applied to the tax
647	647	4 liability for the 3 taxable years following the excess credit
648	648	5 year. The tax credit shall be applied to the earliest year for
649	649	6 which there is a tax liability. If there are credits for more
650	650	7 than one year that are available to offset liability, the
651	651	8 earlier credit shall be applied first.
652	652	9 Nothing in this subsection (j) prohibits a private
653	653	10 employer from providing an unpaid leave of absence to its
654	654	11 employees for the purpose of serving as an organ donor or bone
655	655	12 marrow donor; however, if the employer's policy provides for
656	656	13 fewer than 30 days of paid leave for organ or bone marrow
657	657	14 donation, then the employer shall not be eligible for the
658	658	15 credit under this Section.
659	659	16 As used in this subsection (j):
660	660	17 "Organ" means any biological tissue of the human body that
661	661	18 may be donated by a living donor, including, but not limited
662	662	19 to, the kidney, liver, lung, pancreas, intestine, bone, skin,
663	663	20 or any subpart of those organs.
664	664	21 "Organ donor" means a person from whose body an organ is
665	665	22 taken to be transferred to the body of another person.
666	666	23 "Private employer" means a sole proprietorship,
667	667	24 corporation, partnership, limited liability company, or other
668	668	25 entity with one or more employees. "Private employer" does not
669	669	26 include a municipality, county, State agency, or other public
670	670
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680	680	1 employer.
681	681	2 This subsection (j) is exempt from the provisions of
682	682	3 Section 250 of this Act.
683	683	4 (k) For reporting periods beginning on or after January 1,
684	684	5 2025 and before January 1, 2027, an employer may claim a credit
685	685	6 against payments due under this Section for amounts withheld
686	686	7 during the first reporting period to occur after the date on
687	687	8 which a tax credit certificate is issued for a non-profit
688	688	9 theater production under Section 10 of the Live Theater
689	689	10 Production Tax Credit Act. The credit shall be equal to the
690	690	11 amount shown on the certificate, but may not reduce the
691	691	12 taxpayer's obligation for any payment due under this Article
692	692	13 to less than zero. If the amount of the credit exceeds the
693	693	14 total amount due under this Article with respect to amounts
694	694	15 withheld during the first reporting period to occur after the
695	695	16 date on which a tax credit certificate is issued, the excess
696	696	17 may be carried forward and applied against the taxpayer's
697	697	18 liability under this Section for reporting periods that occur
698	698	19 in the 5 succeeding calendar years. The excess credit shall be
699	699	20 applied to the earliest reporting period for which there is a
700	700	21 payment due under this Article. If there are credits from more
701	701	22 than one reporting period that are available to offset a
702	702	23 liability, the earlier credit shall be applied first. The
703	703	24 Department of Revenue, in cooperation with the Department of
704	704	25 Commerce and Economic Opportunity, shall adopt rules to
705	705	26 enforce and administer the provisions of this subsection.
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