IL HB4655

Amends the Illinois Income Tax Act to change how nonresident compensation is allocated, effective for taxable years beginning January 1, 2019, allocating only the portion of compensation corresponding to working days spent in Illinois in excess of 30 days.

Defines "working day" as any day the employee performs duties for the employer, excluding weekends, vacation, sick days, and holidays unless work is performed; working days in Illinois are determined by where the employee spends more time performing duties or travels to Illinois.

Creates a tax credit for taxable years ending December 31, 2018 through December 31, 2021 equal to investments made in qualified property and qualified expenses used to track and report resident and nonresident employee locations for tax compliance purposes.

Allows employers to rely on employee annual determinations of expected time spent in various states for withholding purposes, absent fraud or employer-employee collusion, unless the employer maintains a time and attendance system that tracks daily work locations.

Exempts employees performing disaster or emergency-related services in Illinois during declared disaster periods from counting those working days toward Illinois allocation calculations.