SB1515 Summary

• Amends Illinois Income Tax Act Section 304 to modify how nonresident employees' compensation is sourced to Illinois, effective for tax years ending on or after December 31, 2020.

• Changes the threshold for counting a nonresident's working days in Illinois from any incidental service to requiring that service be nonincidental and exceed 30 working days during the tax year.

• Establishes a disaster period exemption allowing employees performing emergency-related services during declared disasters to exclude those working days from Illinois sourcing calculations.

• Adds new withholding provisions in Section 701(a-5) allowing employers to use time and attendance systems to track where nonresident employees perform services daily, or alternatively to rely on written employee certifications of expected Illinois working days.

• Updates Section 601(b)(3) to clarify that the foreign tax credit is exempt from the 30-day threshold established for nonresident employee compensation sourcing.