Illinois Administrative Code › Title 14 - COMMERCE › Part 522 - APPRENTICESHIP EDUCATION EXPENSE CREDIT PROGRAM › Section 522.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
The following definitions are applicable to this Part.
"Act" or "Illinois Income Tax Act"
[35 ILCS 5/101 et
				seq.]
"Certificate" means the tax credit certificate issued
				by the Department under Section 229(c) of the Act as amended by P.A.
				101-207.
"Department" or "DCEO" means the Department of Commerce
				and Economic Opportunity.
[20 ILCS
				605/605-5 and P.A. 101-0207;
				35 ILCS
				5/229]
"Employer" means an Illinois
income
taxpayer who is the employer of the qualifying apprentice.
[P.A. 101-0207;
				35 ILCS
				5/229(a)]
"Qualifying apprentice" means an individual
				who:
is a resident of the State of Illinois;
is at least 16 years old at the close of the school
				year for which a credit is sought;
during the school year for which a credit is sought,
				was a full-time apprentice enrolled in an apprenticeship program which is
				registered with the United States Department of Labor, Office of
				Apprenticeship; and
is employed in Illinois by the taxpayer who is the
				employer.
[P.A. 101-0207;
				35 ILCS
				5/229(a)]
"Qualified education expense" means the amount incurred
				on behalf of a qualifying apprentice not to exceed $3,500,
or $5,000
				for taxpayers qualifying for the underserved area increase (Section
				522.80(c))
for tuition, book fees, and lab fees at the school or community college
				in which the apprentice is enrolled during the regular school year.
[P.A. 101-0207;
				35 ILCS
				5/229(a)] Any amount paid for the
				purchase or rental cost of items that would be considered qualified education
				expenses but for the fact that the items are not substantially consumed during
				the school year and will remain the tangible personal property of a qualifying
				pupil or a custodian at the conclusion of the school year, or for items that
				are not required as part of the Program, shall not be considered qualified
				education expenses. Examples of expenses that are excluded include, but not
				limited to, computers, tablets, and tools. For purposes of this Section, an
				item is substantially consumed when, during the school year, the item is used
				to the extent that its fair market value has been reduced to a de minimis
				amount. Expenses that are paid, reimbursed, credited, or otherwise subsidized
				by other public or private sources are not qualified education expenses.
Tuition is the amount paid to a school as a condition of
				enrollment for a quarter, semester or year term in the program the qualifying
				apprentice is enrolled.
Book fees are amounts paid for the use of books (print or
				digital) that are essential to a qualifying apprentice's participation in the
				education program of the school. A book is essential when the school or
				instructor of the school requires its use by the qualifying pupil in order to
				participate in and complete a course of the education program.
Lab fees are amounts paid for the use of supplies, equipment,
				materials or instruments that are essential to a qualifying pupil's
				participation in a lab course of the school's education program. Supplies,
				equipment, materials or instruments are essential when the school or instructor
				of the school requires their use by the qualifying apprentice in order to
				participate in and complete a lab course of the education program. Lab courses
				include those courses that, in addition to classroom instruction by a teacher,
				provide an environment of organized activity involving observation,
				experimentation or practice in a course of study. Lab courses of study include
				those courses with a scientific, musical, artistic, technical or language skill
				content. Lab fees may be in the nature of a rental fee for supplies, equipment,
				materials or instruments that are used in the lab course. Fees incurred for the
				purchase of supplies, equipment, materials or instruments used in a lab course
				and which are substantially consumed by the assignments and activities of the
				lab are also considered qualifying lab fees.
"School" means any public or nonpublic secondary or
				post-secondary school in Illinois that is:
an institution of higher education that provides a
				program that leads to an industry-recognized postsecondary credential or
				degree;
an entity that carries out programs registered under
				the federal National Apprenticeship Act; or
another public or private provider of a program of
				training services, which may include a joint labor-management
				organization
that provides an apprenticeship school curriculum and
				courses
.
[P.A. 101-0207;
				35 ILCS
				5/229(a)]
"School Year" shall mean the customary annual schedule
				of courses at a school during which students, including qualifying
				apprentice(s) attend school as distinguished from the calendar
				year.
"Underserved area" shall have the same meaning as
				provided in the Economic Development for a Growing Economy Tax Credit
				(35 ILCS 10/5-5), as
				amended.