Federal tax credit offsets paid-leave costs for employee vaccinations; Illinois & Iowa legislative updates

Federal

• President Biden announced a paid leave tax credit for employers with fewer than 500 employees to provide full pay for any time their employees need to get a COVID-19 vaccination or recover from the vaccination. The paid leave tax credit will offset the cost for up to 80 hours, up to $511, per day of sick leave offered between April 1 and Sept. 30, 2021. For more information on how to claim the paid leave tax credit, visit this IRS fact sheet.

Illinois

• Governor Pritzker announced Illinois is receiving $1.6 billion in federal aid to increase access to high-quality early childhood education and childcare. Illinois This includes $140 million in direct grants to childcare providers over the next three weeks, adding to the $290 million granted to childcare providers earlier in the pandemic.
• The House and Senate continue to work through hundreds of bills ahead of their Friday deadline to move legislation out of its originating chamber. The Quad Cities Chamber is monitoring legislation related to our annual regional advocacy priorities, including the following bills:
  • SB 672, Food Delivery passed out of the Senate Commerce Committee by a vote of 11-0. This bill creates the Fair Food Delivery Act, which prohibits a third-party delivery service from using the likeness, registered trademark or intellectual property belonging to a merchant without obtaining written consent from the merchant.
  • SB 2445 Affordable Housing Tax Credits passed out of the Senate Revenue Committee unanimously. The legislation aims to address Illinois’ shortage of affordable housing by offering incentives to landlords who maintain qualified affordable housing properties.
  • HB 118 Wage Payment & Collection passed the House on Tuesday afternoon by a vote of 68-44. The legislation would enforce that an employee is entitled to recover damages of 5% (rather than 2%) of the amount of any underpayments in wages for each month following the date of payment during which such underpayments remain unpaid.
  • HB75 Paid Sick Leave was also approved by the House on Tuesday, by a vote of 77-33. The legislation changes how paid time off can be used following the birth or adoption of a child. Primarily, it allows for appropriate time off to not be used immediately following the birth or adoption, and to use them non-consecutively.

Iowa

• With the end of the second funnel, the House and Senate are turning their focus to the budget. The House and Senate Appropriations Committees considered several budget bills, including economic development, infrastructure, transportations, justice systems and agricultural and natural resources.
• SF 587 Property Tax & Mental Health Funding passed the Senate last week. This legislation would transition mental health funding from property taxes to state funding and phase out the property tax backfill over six years.
• HF 848 Broadband unanimously passed both the Senate and House. The House and Senate will now need to agree on the funding allocation. HF 848 is the Governor’s broadband bill expanding broadband funding $450 million over three years.