Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1834 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1834 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/704A Creates the Job Creation Zone Pilot Program Act. Sets forth the boundaries of the job creation zone. Provides that applicants that pledge to hire at least 5 new employees at a designated location within the job creation zone are eligible for credits against their obligation to pay over withholding taxes under the Illinois Income Tax Act. Authorizes an applicant to request a credit award under the Act by making a formal written request or application with the Department of Commerce and Economic Opportunity. Specifies that the amount of the credit may not exceed (i) 50% of the incremental income tax attributable to each new employee during the calendar year in which the new employee is hired and for the first 2 calendar years after the new employee is hired and (ii) 25% of the incremental income tax attributable to each new employee during the third and fourth calendar years after the new employee is hired. Grants the Department of Commerce and Economic Opportunity rulemaking powers to implement and enforce the Act. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately. LRB104 03836 HLH 13860 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1834 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/704A New Act 35 ILCS 5/704A Creates the Job Creation Zone Pilot Program Act. Sets forth the boundaries of the job creation zone. Provides that applicants that pledge to hire at least 5 new employees at a designated location within the job creation zone are eligible for credits against their obligation to pay over withholding taxes under the Illinois Income Tax Act. Authorizes an applicant to request a credit award under the Act by making a formal written request or application with the Department of Commerce and Economic Opportunity. Specifies that the amount of the credit may not exceed (i) 50% of the incremental income tax attributable to each new employee during the calendar year in which the new employee is hired and for the first 2 calendar years after the new employee is hired and (ii) 25% of the incremental income tax attributable to each new employee during the third and fourth calendar years after the new employee is hired. Grants the Department of Commerce and Economic Opportunity rulemaking powers to implement and enforce the Act. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately. LRB104 03836 HLH 13860 b LRB104 03836 HLH 13860 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1834 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
3	3	New Act35 ILCS 5/704A New Act 35 ILCS 5/704A
4	4	New Act
5	5	35 ILCS 5/704A
6	6	Creates the Job Creation Zone Pilot Program Act. Sets forth the boundaries of the job creation zone. Provides that applicants that pledge to hire at least 5 new employees at a designated location within the job creation zone are eligible for credits against their obligation to pay over withholding taxes under the Illinois Income Tax Act. Authorizes an applicant to request a credit award under the Act by making a formal written request or application with the Department of Commerce and Economic Opportunity. Specifies that the amount of the credit may not exceed (i) 50% of the incremental income tax attributable to each new employee during the calendar year in which the new employee is hired and for the first 2 calendar years after the new employee is hired and (ii) 25% of the incremental income tax attributable to each new employee during the third and fourth calendar years after the new employee is hired. Grants the Department of Commerce and Economic Opportunity rulemaking powers to implement and enforce the Act. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
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9	9	A BILL FOR
10	10	SB1834LRB104 03836 HLH 13860 b SB1834 LRB104 03836 HLH 13860 b
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12	12	1 AN ACT concerning State government.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the Job
16	16	5 Creation Zone Pilot Program Act.
17	17	6 Section 5. Definitions. As used in this Act:
18	18	7 "Agreement" means an agreement between the taxpayer and
19	19	8 the Department for credit awards under this Act.
20	20	9 "Department" means the Department of Commerce and Economic
21	21	10 Opportunity.
22	22	11 "Incremental income tax" means the total amount withheld
23	23	12 during the reporting period from the compensation of new
24	24	13 employees under Article 7 of the Illinois Income Tax Act
25	25	14 arising from employment at a project that is the subject of an
26	26	15 agreement.
27	27	16 "New employee" means a full-time employee who (i) is first
28	28	17 employed by a taxpayer in the project that is the subject of an
29	29	18 agreement under this Act, (ii) is hired after the taxpayer
30	30	19 enters into the tax credit agreement, (iii) receives
31	31	20 compensation from the taxpayer that is at least 125% of the
32	32	21 State minimum wage during the entire time he or she is
33	33	22 considered a new employee, and (iv) is eligible for
34	34	23 employer-sponsored group health insurance benefits and
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38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1834 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
39	39	New Act35 ILCS 5/704A New Act 35 ILCS 5/704A
40	40	New Act
41	41	35 ILCS 5/704A
42	42	Creates the Job Creation Zone Pilot Program Act. Sets forth the boundaries of the job creation zone. Provides that applicants that pledge to hire at least 5 new employees at a designated location within the job creation zone are eligible for credits against their obligation to pay over withholding taxes under the Illinois Income Tax Act. Authorizes an applicant to request a credit award under the Act by making a formal written request or application with the Department of Commerce and Economic Opportunity. Specifies that the amount of the credit may not exceed (i) 50% of the incremental income tax attributable to each new employee during the calendar year in which the new employee is hired and for the first 2 calendar years after the new employee is hired and (ii) 25% of the incremental income tax attributable to each new employee during the third and fourth calendar years after the new employee is hired. Grants the Department of Commerce and Economic Opportunity rulemaking powers to implement and enforce the Act. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
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44	44	LRB104 03836 HLH 13860 b
45	45	A BILL FOR
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51	51	New Act
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71	71	1 retirement benefits as a condition of his or her employment
72	72	2 with the taxpayer. The term "new employee" does not include:
73	73	3 (1) an employee of the taxpayer who performs a job
74	74	4 that was previously performed by another employee, if that
75	75	5 job existed for at least 6 months before hiring the
76	76	6 employee; notwithstanding this paragraph, an employee may
77	77	7 be considered a new employee if the employee performs a
78	78	8 job that was previously performed by an employee who was:
79	79	9 (A) treated under the agreement as a new employee;
80	80	10 and
81	81	11 (B) promoted by the taxpayer to another job;
82	82	12 (2) an employee of the taxpayer who was previously
83	83	13 employed in Illinois by a related member of the taxpayer
84	84	14 and whose employment was shifted to the taxpayer after the
85	85	15 taxpayer entered into the agreement under this Act; or
86	86	16 (3) a child, grandchild, parent, or spouse, other than
87	87	17 a spouse who is legally separated from the individual, of
88	88	18 any individual who has a direct or an indirect ownership
89	89	19 interest of at least 5% in the profits, capital, or value
90	90	20 of the taxpayer.
91	91	21 "Project" means employment in one or more of the following
92	92	22 fields: manufacturing, technology, research, science,
93	93	23 mathematics, engineering, construction, energy,
94	94	24 bioprocessing, or agriculture.
95	95	25 "Related member" means a person that, with respect to the
96	96	26 taxpayer during any portion of the taxable year, is any one of
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107	107	1 the following:
108	108	2 (1) an individual stockholder, if the stockholder and
109	109	3 the members of the stockholder's family (as defined in
110	110	4 Section 318 of the Internal Revenue Code) own directly,
111	111	5 indirectly, beneficially, or constructively, in the
112	112	6 aggregate, at least 50% of the value of the taxpayer's
113	113	7 outstanding stock;
114	114	8 (2) a partnership, estate, or trust and any partner or
115	115	9 beneficiary, if the partnership, estate, or trust, and its
116	116	10 partners or beneficiaries own directly, indirectly,
117	117	11 beneficially, or constructively, in the aggregate, at
118	118	12 least 50% of the profits, capital, stock, or value of the
119	119	13 taxpayer;
120	120	14 (3) a corporation, and any party related to the
121	121	15 corporation in a manner that would require an attribution
122	122	16 of stock from the corporation to the party or from the
123	123	17 party to the corporation under the attribution rules of
124	124	18 Section 318 of the Internal Revenue Code, if the taxpayer
125	125	19 owns directly, indirectly, beneficially, or constructively
126	126	20 at least 50% of the value of the corporation's outstanding
127	127	21 stock;
128	128	22 (4) a corporation and any party related to that
129	129	23 corporation in a manner that would require an attribution
130	130	24 of stock from the corporation to the party or from the
131	131	25 party to the corporation under the attribution rules of
132	132	26 Section 318 of the Internal Revenue Code, if the
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143	143	1 corporation and all such related parties own in the
144	144	2 aggregate at least 50% of the profits, capital, stock, or
145	145	3 value of the taxpayer; or
146	146	4 (5) a person to or from whom there is attribution of
147	147	5 stock ownership in accordance with Section 1563(e) of the
148	148	6 Internal Revenue Code, except, for purposes of determining
149	149	7 whether a person is a related member under this paragraph,
150	150	8 20% shall be substituted for 5% wherever 5% appears in
151	151	9 Section 1563(e) of the Internal Revenue Code.
152	152	10 Section 10. Zone created. A job creation zone pilot
153	153	11 program is hereby created. The job creation zone shall have
154	154	12 the following boundaries:
155	155	13 Beginning at the intersection of US-51 and State Route
156	156	14 9; then East to the Indiana State Line; then South along
157	157	15 the border between Illinois and Indiana; then West along
158	158	16 Interstate 64 to US-51; then North along US-51 to the
159	159	17 Point of Beginning; the job creation zone also includes
160	160	18 all of the territory within 15 miles of the North, South,
161	161	19 and West borders set forth in this Section.
162	162	20 Section 15. Tax credit awards; application.
163	163	21 (a) The Department shall make credit awards under this Act
164	164	22 to foster job creation within the job creation zone. To be
165	165	23 eligible for credits under this Act, the applicant must pledge
166	166	24 to hire at least 5 new employees at a designated location
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177	177	1 within the job creation zone.
178	178	2 (b) An applicant may request a credit award by formal
179	179	3 written letter of request or by formal application to the
180	180	4 Department, in which the applicant states its intent to hire
181	181	5 at least 5 new employees at a designated location within the
182	182	6 job creation zone. As circumstances require, the Department
183	183	7 may require a formal application from an applicant and a
184	184	8 formal letter of request for assistance.
185	185	9 (c) The Department may not make a credit award for a
186	186	10 project at a location that was used by a different employer
187	187	11 during the previous year if the applicant will employ the same
188	188	12 number of employees or fewer employees (including new
189	189	13 employees) at that project location.
190	190	14 (d) The Department may make credit awards for withholding
191	191	15 reporting periods beginning on or after January 1, 2026.
192	192	16 Section 25. Tax credit awards; amount. Any taxpayer that
193	193	17 has been issued a certificate of exemption by the Department
194	194	18 under this Act may claim a credit against its obligation to pay
195	195	19 over withholding under Section 704A of the Illinois Income Tax
196	196	20 Act. The amount of the credit may not exceed (i) 50% of the
197	197	21 incremental income tax attributable to each new employee
198	198	22 during the calendar year in which the new employee is hired and
199	199	23 for the first 2 calendar years after the new employee is hired
200	200	24 and (ii) 25% of the incremental income tax attributable to
201	201	25 each new employee during the third and fourth calendar years
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212	212	1 after the new employee is hired.
213	213	2 Section 30. Rulemaking. The Department may adopt rules to
214	214	3 implement and enforce the provisions of this Act.
215	215	4 Section 900. The Illinois Income Tax Act is amended by
216	216	5 changing Section 704A as follows:
217	217	6 (35 ILCS 5/704A)
218	218	7 Sec. 704A. Employer's return and payment of tax withheld.
219	219	8 (a) In general, every employer who deducts and withholds
220	220	9 or is required to deduct and withhold tax under this Act on or
221	221	10 after January 1, 2008 shall make those payments and returns as
222	222	11 provided in this Section.
223	223	12 (b) Returns. Every employer shall, in the form and manner
224	224	13 required by the Department, make returns with respect to taxes
225	225	14 withheld or required to be withheld under this Article 7 for
226	226	15 each quarter beginning on or after January 1, 2008, on or
227	227	16 before the last day of the first month following the close of
228	228	17 that quarter.
229	229	18 (c) Payments. With respect to amounts withheld or required
230	230	19 to be withheld on or after January 1, 2008:
231	231	20 (1) Semi-weekly payments. For each calendar year, each
232	232	21 employer who withheld or was required to withhold more
233	233	22 than $12,000 during the one-year period ending on June 30
234	234	23 of the immediately preceding calendar year, payment must
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245	245	1 be made:
246	246	2 (A) on or before each Friday of the calendar year,
247	247	3 for taxes withheld or required to be withheld on the
248	248	4 immediately preceding Saturday, Sunday, Monday, or
249	249	5 Tuesday;
250	250	6 (B) on or before each Wednesday of the calendar
251	251	7 year, for taxes withheld or required to be withheld on
252	252	8 the immediately preceding Wednesday, Thursday, or
253	253	9 Friday.
254	254	10 Beginning with calendar year 2011, payments made under
255	255	11 this paragraph (1) of subsection (c) must be made by
256	256	12 electronic funds transfer.
257	257	13 (2) Semi-weekly payments. Any employer who withholds
258	258	14 or is required to withhold more than $12,000 in any
259	259	15 quarter of a calendar year is required to make payments on
260	260	16 the dates set forth under item (1) of this subsection (c)
261	261	17 for each remaining quarter of that calendar year and for
262	262	18 the subsequent calendar year.
263	263	19 (3) Monthly payments. Each employer, other than an
264	264	20 employer described in items (1) or (2) of this subsection,
265	265	21 shall pay to the Department, on or before the 15th day of
266	266	22 each month the taxes withheld or required to be withheld
267	267	23 during the immediately preceding month.
268	268	24 (4) Payments with returns. Each employer shall pay to
269	269	25 the Department, on or before the due date for each return
270	270	26 required to be filed under this Section, any tax withheld
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281	281	1 or required to be withheld during the period for which the
282	282	2 return is due and not previously paid to the Department.
283	283	3 (d) Regulatory authority. The Department may, by rule:
284	284	4 (1) Permit employers, in lieu of the requirements of
285	285	5 subsections (b) and (c), to file annual returns due on or
286	286	6 before January 31 of the year for taxes withheld or
287	287	7 required to be withheld during the previous calendar year
288	288	8 and, if the aggregate amounts required to be withheld by
289	289	9 the employer under this Article 7 (other than amounts
290	290	10 required to be withheld under Section 709.5) do not exceed
291	291	11 $1,000 for the previous calendar year, to pay the taxes
292	292	12 required to be shown on each such return no later than the
293	293	13 due date for such return.
294	294	14 (2) Provide that any payment required to be made under
295	295	15 subsection (c)(1) or (c)(2) is deemed to be timely to the
296	296	16 extent paid by electronic funds transfer on or before the
297	297	17 due date for deposit of federal income taxes withheld
298	298	18 from, or federal employment taxes due with respect to, the
299	299	19 wages from which the Illinois taxes were withheld.
300	300	20 (3) Designate one or more depositories to which
301	301	21 payment of taxes required to be withheld under this
302	302	22 Article 7 must be paid by some or all employers.
303	303	23 (4) Increase the threshold dollar amounts at which
304	304	24 employers are required to make semi-weekly payments under
305	305	25 subsection (c)(1) or (c)(2).
306	306	26 (e) Annual return and payment. Every employer who deducts
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317	317	1 and withholds or is required to deduct and withhold tax from a
318	318	2 person engaged in domestic service employment, as that term is
319	319	3 defined in Section 3510 of the Internal Revenue Code, may
320	320	4 comply with the requirements of this Section with respect to
321	321	5 such employees by filing an annual return and paying the taxes
322	322	6 required to be deducted and withheld on or before the 15th day
323	323	7 of the fourth month following the close of the employer's
324	324	8 taxable year. The Department may allow the employer's return
325	325	9 to be submitted with the employer's individual income tax
326	326	10 return or to be submitted with a return due from the employer
327	327	11 under Section 1400.2 of the Unemployment Insurance Act.
328	328	12 (f) Magnetic media and electronic filing. With respect to
329	329	13 taxes withheld in calendar years prior to 2017, any W-2 Form
330	330	14 that, under the Internal Revenue Code and regulations
331	331	15 promulgated thereunder, is required to be submitted to the
332	332	16 Internal Revenue Service on magnetic media or electronically
333	333	17 must also be submitted to the Department on magnetic media or
334	334	18 electronically for Illinois purposes, if required by the
335	335	19 Department.
336	336	20 With respect to taxes withheld in 2017 and subsequent
337	337	21 calendar years, the Department may, by rule, require that any
338	338	22 return (including any amended return) under this Section and
339	339	23 any W-2 Form that is required to be submitted to the Department
340	340	24 must be submitted on magnetic media or electronically.
341	341	25 The due date for submitting W-2 Forms shall be as
342	342	26 prescribed by the Department by rule.
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353	353	1 (g) For amounts deducted or withheld after December 31,
354	354	2 2009, a taxpayer who makes an election under subsection (f) of
355	355	3 Section 5-15 of the Economic Development for a Growing Economy
356	356	4 Tax Credit Act for a taxable year shall be allowed a credit
357	357	5 against payments due under this Section for amounts withheld
358	358	6 during the first calendar year beginning after the end of that
359	359	7 taxable year equal to the amount of the credit for the
360	360	8 incremental income tax attributable to full-time employees of
361	361	9 the taxpayer awarded to the taxpayer by the Department of
362	362	10 Commerce and Economic Opportunity under the Economic
363	363	11 Development for a Growing Economy Tax Credit Act for the
364	364	12 taxable year and credits not previously claimed and allowed to
365	365	13 be carried forward under Section 211(4) of this Act as
366	366	14 provided in subsection (f) of Section 5-15 of the Economic
367	367	15 Development for a Growing Economy Tax Credit Act. The credit
368	368	16 or credits may not reduce the taxpayer's obligation for any
369	369	17 payment due under this Section to less than zero. If the amount
370	370	18 of the credit or credits exceeds the total payments due under
371	371	19 this Section with respect to amounts withheld during the
372	372	20 calendar year, the excess may be carried forward and applied
373	373	21 against the taxpayer's liability under this Section in the
374	374	22 succeeding calendar years as allowed to be carried forward
375	375	23 under paragraph (4) of Section 211 of this Act. The credit or
376	376	24 credits shall be applied to the earliest year for which there
377	377	25 is a tax liability. If there are credits from more than one
378	378	26 taxable year that are available to offset a liability, the
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389	389	1 earlier credit shall be applied first. Each employer who
390	390	2 deducts and withholds or is required to deduct and withhold
391	391	3 tax under this Act and who retains income tax withholdings
392	392	4 under subsection (f) of Section 5-15 of the Economic
393	393	5 Development for a Growing Economy Tax Credit Act must make a
394	394	6 return with respect to such taxes and retained amounts in the
395	395	7 form and manner that the Department, by rule, requires and pay
396	396	8 to the Department or to a depositary designated by the
397	397	9 Department those withheld taxes not retained by the taxpayer.
398	398	10 For purposes of this subsection (g), the term taxpayer shall
399	399	11 include taxpayer and members of the taxpayer's unitary
400	400	12 business group as defined under paragraph (27) of subsection
401	401	13 (a) of Section 1501 of this Act. This Section is exempt from
402	402	14 the provisions of Section 250 of this Act. No credit awarded
403	403	15 under the Economic Development for a Growing Economy Tax
404	404	16 Credit Act for agreements entered into on or after January 1,
405	405	17 2015 may be credited against payments due under this Section.
406	406	18 (g-1) For amounts deducted or withheld after December 31,
407	407	19 2024, a taxpayer who makes an election under the Reimagining
408	408	20 Energy and Vehicles in Illinois Act shall be allowed a credit
409	409	21 against payments due under this Section for amounts withheld
410	410	22 during the first quarterly reporting period beginning after
411	411	23 the certificate is issued equal to the portion of the REV
412	412	24 Illinois Credit attributable to the incremental income tax
413	413	25 attributable to new employees and retained employees as
414	414	26 certified by the Department of Commerce and Economic
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425	425	1 Opportunity pursuant to an agreement with the taxpayer under
426	426	2 the Reimagining Energy and Vehicles in Illinois Act for the
427	427	3 taxable year. The credit or credits may not reduce the
428	428	4 taxpayer's obligation for any payment due under this Section
429	429	5 to less than zero. If the amount of the credit or credits
430	430	6 exceeds the total payments due under this Section with respect
431	431	7 to amounts withheld during the quarterly reporting period, the
432	432	8 excess may be carried forward and applied against the
433	433	9 taxpayer's liability under this Section in the succeeding
434	434	10 quarterly reporting period as allowed to be carried forward
435	435	11 under paragraph (4) of Section 211 of this Act. The credit or
436	436	12 credits shall be applied to the earliest quarterly reporting
437	437	13 period for which there is a tax liability. If there are credits
438	438	14 from more than one quarterly reporting period that are
439	439	15 available to offset a liability, the earlier credit shall be
440	440	16 applied first. Each employer who deducts and withholds or is
441	441	17 required to deduct and withhold tax under this Act and who
442	442	18 retains income tax withholdings this subsection must make a
443	443	19 return with respect to such taxes and retained amounts in the
444	444	20 form and manner that the Department, by rule, requires and pay
445	445	21 to the Department or to a depositary designated by the
446	446	22 Department those withheld taxes not retained by the taxpayer.
447	447	23 For purposes of this subsection (g-1), the term taxpayer shall
448	448	24 include taxpayer and members of the taxpayer's unitary
449	449	25 business group as defined under paragraph (27) of subsection
450	450	26 (a) of Section 1501 of this Act. This Section is exempt from
451	451
452	452
453	453
454	454
455	455
456	456	SB1834 - 12 - LRB104 03836 HLH 13860 b
457	457
458	458
459	459	SB1834- 13 -LRB104 03836 HLH 13860 b SB1834 - 13 - LRB104 03836 HLH 13860 b
460	460	SB1834 - 13 - LRB104 03836 HLH 13860 b
461	461	1 the provisions of Section 250 of this Act.
462	462	2 (g-2) For amounts deducted or withheld after December 31,
463	463	3 2024, a taxpayer who makes an election under the Manufacturing
464	464	4 Illinois Chips for Real Opportunity (MICRO) Act shall be
465	465	5 allowed a credit against payments due under this Section for
466	466	6 amounts withheld during the first quarterly reporting period
467	467	7 beginning after the certificate is issued equal to the portion
468	468	8 of the MICRO Illinois Credit attributable to the incremental
469	469	9 income tax attributable to new employees and retained
470	470	10 employees as certified by the Department of Commerce and
471	471	11 Economic Opportunity pursuant to an agreement with the
472	472	12 taxpayer under the Manufacturing Illinois Chips for Real
473	473	13 Opportunity (MICRO) Act for the taxable year. The credit or
474	474	14 credits may not reduce the taxpayer's obligation for any
475	475	15 payment due under this Section to less than zero. If the amount
476	476	16 of the credit or credits exceeds the total payments due under
477	477	17 this Section with respect to amounts withheld during the
478	478	18 quarterly reporting period, the excess may be carried forward
479	479	19 and applied against the taxpayer's liability under this
480	480	20 Section in the succeeding quarterly reporting period as
481	481	21 allowed to be carried forward under paragraph (4) of Section
482	482	22 211 of this Act. The credit or credits shall be applied to the
483	483	23 earliest quarterly reporting period for which there is a tax
484	484	24 liability. If there are credits from more than one quarterly
485	485	25 reporting period that are available to offset a liability, the
486	486	26 earlier credit shall be applied first. Each employer who
487	487
488	488
489	489
490	490
491	491
492	492	SB1834 - 13 - LRB104 03836 HLH 13860 b
493	493
494	494
495	495	SB1834- 14 -LRB104 03836 HLH 13860 b SB1834 - 14 - LRB104 03836 HLH 13860 b
496	496	SB1834 - 14 - LRB104 03836 HLH 13860 b
497	497	1 deducts and withholds or is required to deduct and withhold
498	498	2 tax under this Act and who retains income tax withholdings
499	499	3 this subsection must make a return with respect to such taxes
500	500	4 and retained amounts in the form and manner that the
501	501	5 Department, by rule, requires and pay to the Department or to a
502	502	6 depositary designated by the Department those withheld taxes
503	503	7 not retained by the taxpayer. For purposes of this subsection,
504	504	8 the term taxpayer shall include taxpayer and members of the
505	505	9 taxpayer's unitary business group as defined under paragraph
506	506	10 (27) of subsection (a) of Section 1501 of this Act. This
507	507	11 Section is exempt from the provisions of Section 250 of this
508	508	12 Act.
509	509	13 (h) An employer may claim a credit against payments due
510	510	14 under this Section for amounts withheld during the first
511	511	15 calendar year ending after the date on which a tax credit
512	512	16 certificate was issued under Section 35 of the Small Business
513	513	17 Job Creation Tax Credit Act. The credit shall be equal to the
514	514	18 amount shown on the certificate, but may not reduce the
515	515	19 taxpayer's obligation for any payment due under this Section
516	516	20 to less than zero. If the amount of the credit exceeds the
517	517	21 total payments due under this Section with respect to amounts
518	518	22 withheld during the calendar year, the excess may be carried
519	519	23 forward and applied against the taxpayer's liability under
520	520	24 this Section in the 5 succeeding calendar years. The credit
521	521	25 shall be applied to the earliest year for which there is a tax
522	522	26 liability. If there are credits from more than one calendar
523	523
524	524
525	525
526	526
527	527
528	528	SB1834 - 14 - LRB104 03836 HLH 13860 b
529	529
530	530
531	531	SB1834- 15 -LRB104 03836 HLH 13860 b SB1834 - 15 - LRB104 03836 HLH 13860 b
532	532	SB1834 - 15 - LRB104 03836 HLH 13860 b
533	533	1 year that are available to offset a liability, the earlier
534	534	2 credit shall be applied first. This Section is exempt from the
535	535	3 provisions of Section 250 of this Act.
536	536	4 (i) Each employer with 50 or fewer full-time equivalent
537	537	5 employees during the reporting period may claim a credit
538	538	6 against the payments due under this Section for each qualified
539	539	7 employee in an amount equal to the maximum credit allowable.
540	540	8 The credit may be taken against payments due for reporting
541	541	9 periods that begin on or after January 1, 2020, and end on or
542	542	10 before December 31, 2027. An employer may not claim a credit
543	543	11 for an employee who has worked fewer than 90 consecutive days
544	544	12 immediately preceding the reporting period; however, such
545	545	13 credits may accrue during that 90-day period and be claimed
546	546	14 against payments under this Section for future reporting
547	547	15 periods after the employee has worked for the employer at
548	548	16 least 90 consecutive days. In no event may the credit exceed
549	549	17 the employer's liability for the reporting period. Each
550	550	18 employer who deducts and withholds or is required to deduct
551	551	19 and withhold tax under this Act and who retains income tax
552	552	20 withholdings under this subsection must make a return with
553	553	21 respect to such taxes and retained amounts in the form and
554	554	22 manner that the Department, by rule, requires and pay to the
555	555	23 Department or to a depositary designated by the Department
556	556	24 those withheld taxes not retained by the employer.
557	557	25 For each reporting period, the employer may not claim a
558	558	26 credit or credits for more employees than the number of
559	559
560	560
561	561
562	562
563	563
564	564	SB1834 - 15 - LRB104 03836 HLH 13860 b
565	565
566	566
567	567	SB1834- 16 -LRB104 03836 HLH 13860 b SB1834 - 16 - LRB104 03836 HLH 13860 b
568	568	SB1834 - 16 - LRB104 03836 HLH 13860 b
569	569	1 employees making less than the minimum or reduced wage for the
570	570	2 current calendar year during the last reporting period of the
571	571	3 preceding calendar year. Notwithstanding any other provision
572	572	4 of this subsection, an employer shall not be eligible for
573	573	5 credits for a reporting period unless the average wage paid by
574	574	6 the employer per employee for all employees making less than
575	575	7 $55,000 during the reporting period is greater than the
576	576	8 average wage paid by the employer per employee for all
577	577	9 employees making less than $55,000 during the same reporting
578	578	10 period of the prior calendar year.
579	579	11 For purposes of this subsection (i):
580	580	12 "Compensation paid in Illinois" has the meaning ascribed
581	581	13 to that term under Section 304(a)(2)(B) of this Act.
582	582	14 "Employer" and "employee" have the meaning ascribed to
583	583	15 those terms in the Minimum Wage Law, except that "employee"
584	584	16 also includes employees who work for an employer with fewer
585	585	17 than 4 employees. Employers that operate more than one
586	586	18 establishment pursuant to a franchise agreement or that
587	587	19 constitute members of a unitary business group shall aggregate
588	588	20 their employees for purposes of determining eligibility for
589	589	21 the credit.
590	590	22 "Full-time equivalent employees" means the ratio of the
591	591	23 number of paid hours during the reporting period and the
592	592	24 number of working hours in that period.
593	593	25 "Maximum credit" means the percentage listed below of the
594	594	26 difference between the amount of compensation paid in Illinois
595	595
596	596
597	597
598	598
599	599
600	600	SB1834 - 16 - LRB104 03836 HLH 13860 b
601	601
602	602
603	603	SB1834- 17 -LRB104 03836 HLH 13860 b SB1834 - 17 - LRB104 03836 HLH 13860 b
604	604	SB1834 - 17 - LRB104 03836 HLH 13860 b
605	605	1 to employees who are paid not more than the required minimum
606	606	2 wage reduced by the amount of compensation paid in Illinois to
607	607	3 employees who were paid less than the current required minimum
608	608	4 wage during the reporting period prior to each increase in the
609	609	5 required minimum wage on January 1. If an employer pays an
610	610	6 employee more than the required minimum wage and that employee
611	611	7 previously earned less than the required minimum wage, the
612	612	8 employer may include the portion that does not exceed the
613	613	9 required minimum wage as compensation paid in Illinois to
614	614	10 employees who are paid not more than the required minimum
615	615	11 wage.
616	616	12 (1) 25% for reporting periods beginning on or after
617	617	13 January 1, 2020 and ending on or before December 31, 2020;
618	618	14 (2) 21% for reporting periods beginning on or after
619	619	15 January 1, 2021 and ending on or before December 31, 2021;
620	620	16 (3) 17% for reporting periods beginning on or after
621	621	17 January 1, 2022 and ending on or before December 31, 2022;
622	622	18 (4) 13% for reporting periods beginning on or after
623	623	19 January 1, 2023 and ending on or before December 31, 2023;
624	624	20 (5) 9% for reporting periods beginning on or after
625	625	21 January 1, 2024 and ending on or before December 31, 2024;
626	626	22 (6) 5% for reporting periods beginning on or after
627	627	23 January 1, 2025 and ending on or before December 31, 2025.
628	628	24 The amount computed under this subsection may continue to
629	629	25 be claimed for reporting periods beginning on or after January
630	630	26 1, 2026 and:
631	631
632	632
633	633
634	634
635	635
636	636	SB1834 - 17 - LRB104 03836 HLH 13860 b
637	637
638	638
639	639	SB1834- 18 -LRB104 03836 HLH 13860 b SB1834 - 18 - LRB104 03836 HLH 13860 b
640	640	SB1834 - 18 - LRB104 03836 HLH 13860 b
641	641	1 (A) ending on or before December 31, 2026 for
642	642	2 employers with more than 5 employees; or
643	643	3 (B) ending on or before December 31, 2027 for
644	644	4 employers with no more than 5 employees.
645	645	5 "Qualified employee" means an employee who is paid not
646	646	6 more than the required minimum wage and has an average wage
647	647	7 paid per hour by the employer during the reporting period
648	648	8 equal to or greater than his or her average wage paid per hour
649	649	9 by the employer during each reporting period for the
650	650	10 immediately preceding 12 months. A new qualified employee is
651	651	11 deemed to have earned the required minimum wage in the
652	652	12 preceding reporting period.
653	653	13 "Reporting period" means the quarter for which a return is
654	654	14 required to be filed under subsection (b) of this Section.
655	655	15 (j) For reporting periods beginning on or after January 1,
656	656	16 2023, if a private employer grants all of its employees the
657	657	17 option of taking a paid leave of absence of at least 30 days
658	658	18 for the purpose of serving as an organ donor or bone marrow
659	659	19 donor, then the private employer may take a credit against the
660	660	20 payments due under this Section in an amount equal to the
661	661	21 amount withheld under this Section with respect to wages paid
662	662	22 while the employee is on organ donation leave, not to exceed
663	663	23 $1,000 in withholdings for each employee who takes organ
664	664	24 donation leave. To be eligible for the credit, such a leave of
665	665	25 absence must be taken without loss of pay, vacation time,
666	666	26 compensatory time, personal days, or sick time for at least
667	667
668	668
669	669
670	670
671	671
672	672	SB1834 - 18 - LRB104 03836 HLH 13860 b
673	673
674	674
675	675	SB1834- 19 -LRB104 03836 HLH 13860 b SB1834 - 19 - LRB104 03836 HLH 13860 b
676	676	SB1834 - 19 - LRB104 03836 HLH 13860 b
677	677	1 the first 30 days of the leave of absence. The private employer
678	678	2 shall adopt rules governing organ donation leave, including
679	679	3 rules that (i) establish conditions and procedures for
680	680	4 requesting and approving leave and (ii) require medical
681	681	5 documentation of the proposed organ or bone marrow donation
682	682	6 before leave is approved by the private employer. A private
683	683	7 employer must provide, in the manner required by the
684	684	8 Department, documentation from the employee's medical
685	685	9 provider, which the private employer receives from the
686	686	10 employee, that verifies the employee's organ donation. The
687	687	11 private employer must also provide, in the manner required by
688	688	12 the Department, documentation that shows that a qualifying
689	689	13 organ donor leave policy was in place and offered to all
690	690	14 qualifying employees at the time the leave was taken. For the
691	691	15 private employer to receive the tax credit, the employee
692	692	16 taking organ donor leave must allow for the applicable medical
693	693	17 records to be disclosed to the Department. If the private
694	694	18 employer cannot provide the required documentation to the
695	695	19 Department, then the private employer is ineligible for the
696	696	20 credit under this Section. A private employer must also
697	697	21 provide, in the form required by the Department, any
698	698	22 additional documentation or information required by the
699	699	23 Department to administer the credit under this Section. The
700	700	24 credit under this subsection (j) shall be taken within one
701	701	25 year after the date upon which the organ donation leave
702	702	26 begins. If the leave taken spans into a second tax year, the
703	703
704	704
705	705
706	706
707	707
708	708	SB1834 - 19 - LRB104 03836 HLH 13860 b
709	709
710	710
711	711	SB1834- 20 -LRB104 03836 HLH 13860 b SB1834 - 20 - LRB104 03836 HLH 13860 b
712	712	SB1834 - 20 - LRB104 03836 HLH 13860 b
713	713	1 employer qualifies for the allowable credit in the later of
714	714	2 the 2 years. If the amount of credit exceeds the tax liability
715	715	3 for the year, the excess may be carried and applied to the tax
716	716	4 liability for the 3 taxable years following the excess credit
717	717	5 year. The tax credit shall be applied to the earliest year for
718	718	6 which there is a tax liability. If there are credits for more
719	719	7 than one year that are available to offset liability, the
720	720	8 earlier credit shall be applied first.
721	721	9 Nothing in this subsection (j) prohibits a private
722	722	10 employer from providing an unpaid leave of absence to its
723	723	11 employees for the purpose of serving as an organ donor or bone
724	724	12 marrow donor; however, if the employer's policy provides for
725	725	13 fewer than 30 days of paid leave for organ or bone marrow
726	726	14 donation, then the employer shall not be eligible for the
727	727	15 credit under this Section.
728	728	16 As used in this subsection (j):
729	729	17 "Organ" means any biological tissue of the human body that
730	730	18 may be donated by a living donor, including, but not limited
731	731	19 to, the kidney, liver, lung, pancreas, intestine, bone, skin,
732	732	20 or any subpart of those organs.
733	733	21 "Organ donor" means a person from whose body an organ is
734	734	22 taken to be transferred to the body of another person.
735	735	23 "Private employer" means a sole proprietorship,
736	736	24 corporation, partnership, limited liability company, or other
737	737	25 entity with one or more employees. "Private employer" does not
738	738	26 include a municipality, county, State agency, or other public
739	739
740	740
741	741
742	742
743	743
744	744	SB1834 - 20 - LRB104 03836 HLH 13860 b
745	745
746	746
747	747	SB1834- 21 -LRB104 03836 HLH 13860 b SB1834 - 21 - LRB104 03836 HLH 13860 b
748	748	SB1834 - 21 - LRB104 03836 HLH 13860 b
749	749	1 employer.
750	750	2 This subsection (j) is exempt from the provisions of
751	751	3 Section 250 of this Act.
752	752	4 (k) For reporting periods beginning on or after January 1,
753	753	5 2025 and before January 1, 2027, an employer may claim a credit
754	754	6 against payments due under this Section for amounts withheld
755	755	7 during the first reporting period to occur after the date on
756	756	8 which a tax credit certificate is issued for a non-profit
757	757	9 theater production under Section 10 of the Live Theater
758	758	10 Production Tax Credit Act. The credit shall be equal to the
759	759	11 amount shown on the certificate, but may not reduce the
760	760	12 taxpayer's obligation for any payment due under this Article
761	761	13 to less than zero. If the amount of the credit exceeds the
762	762	14 total amount due under this Article with respect to amounts
763	763	15 withheld during the first reporting period to occur after the
764	764	16 date on which a tax credit certificate is issued, the excess
765	765	17 may be carried forward and applied against the taxpayer's
766	766	18 liability under this Section for reporting periods that occur
767	767	19 in the 5 succeeding calendar years. The excess credit shall be
768	768	20 applied to the earliest reporting period for which there is a
769	769	21 payment due under this Article. If there are credits from more
770	770	22 than one reporting period that are available to offset a
771	771	23 liability, the earlier credit shall be applied first. The
772	772	24 Department of Revenue, in cooperation with the Department of
773	773	25 Commerce and Economic Opportunity, shall adopt rules to
774	774	26 enforce and administer the provisions of this subsection.
775	775
776	776
777	777
778	778
779	779
780	780	SB1834 - 21 - LRB104 03836 HLH 13860 b
781	781
782	782
783	783	SB1834- 22 -LRB104 03836 HLH 13860 b SB1834 - 22 - LRB104 03836 HLH 13860 b
784	784	SB1834 - 22 - LRB104 03836 HLH 13860 b
785	785	1 (l) (k) A taxpayer who is issued a certificate under the
786	786	2 Local Journalism Sustainability Act for a taxable year shall
787	787	3 be allowed a credit against payments due under this Section as
788	788	4 provided in that Act.
789	789	5 (m) An employer may claim a credit against payments due
790	790	6 under this Section for amounts withheld during the first
791	791	7 calendar year ending after the date on which a certificate of
792	792	8 exemption was issued under the Job Creation Zone Pilot Program
793	793	9 Act. The credit shall be equal to the amount shown on the
794	794	10 certificate but may not reduce the taxpayer's obligation for
795	795	11 any payment due under this Section to less than zero. If the
796	796	12 amount of the credit exceeds the total payments due under this
797	797	13 Section with respect to amounts withheld during the calendar
798	798	14 year, the excess may be carried forward and applied against
799	799	15 the taxpayer's liability under this Section in the 5
800	800	16 succeeding calendar years. The credit shall be applied to the
801	801	17 earliest year for which there is a tax liability. If there are
802	802	18 credits from more than one calendar year that are available to
803	803	19 offset a liability, the earlier credit shall be applied first.
804	804	20 This subsection (k) is exempt from the provisions of Section
805	805	21 250 of this Act.
806	806	22 (Source: P.A. 102-669, eff. 11-16-21; 102-700, Article 30,
807	807	23 Section 30-5, eff. 4-19-22; 102-700, Article 110, Section
808	808	24 110-905, eff. 4-19-22; 102-1125, eff. 2-3-23; 103-592, Article
809	809	25 40, Section 40-900, eff. 6-7-24; 103-592, Article 45, Section
810	810	26 45-10, eff. 6-7-24; revised 7-9-24.)
811	811
812	812
813	813
814	814
815	815
816	816	SB1834 - 22 - LRB104 03836 HLH 13860 b
817	817
818	818
819	819	SB1834- 23 -LRB104 03836 HLH 13860 b SB1834 - 23 - LRB104 03836 HLH 13860 b
820	820	SB1834 - 23 - LRB104 03836 HLH 13860 b
821	821
822	822
823	823
824	824
825	825
826	826	SB1834 - 23 - LRB104 03836 HLH 13860 b