100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5853

 

Introduced , by Rep. Thomas M. Bennett

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/226

    Amends the Illinois Income Tax Act. Expands the applicability of the natural disaster credit from taxable years that begin prior to January 1, 2018 to taxable years that begin prior to January 1, 2019. Makes a conforming change.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5853LRB100 21380 AXK 37794 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 226 as follows:
 
6    (35 ILCS 5/226)
7    Sec. 226. Natural disaster credit.
8    (a) For taxable years that begin on or after January 1,
92017 and begin prior to January 1, 2019 2018, each taxpayer who
10owns qualified real property located in a county in Illinois
11that was declared a State disaster area by the Governor due to
12flooding in 2017 or 2018 is entitled to a credit against the
13taxes imposed by subsections (a) and (b) of Section 201 of this
14Act in an amount equal to the lesser of $750 or the deduction
15allowed (whether or not the taxpayer determines taxable income
16under subsection (b) of Section 63 of the Internal Revenue
17Code) with respect to the qualified property under Section 165
18of the Internal Revenue Code, determined without regard to the
19limitations imposed under subsection (h) of that Section. The
20township assessor or, if the township assessor is unable, the
21chief county assessment officer of the county in which the
22property is located, shall issue a certificate to the taxpayer
23identifying the taxpayer's property as damaged as a result of

 

 

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1the natural disaster. The certificate shall include the name
2and address of the property owner, as well as the property
3index number or permanent index number (PIN) of the damaged
4property. The taxpayer shall attach a copy of such certificate
5to the taxpayer's return for the taxable year for which the
6credit is allowed.
7    (b) In no event shall a credit under this Section reduce a
8taxpayer's liability to less than zero. If the amount of credit
9exceeds the tax liability for the year, the excess may be
10carried forward and applied to the tax liability for the 5
11taxable years following the excess credit year. The tax credit
12shall be applied to the earliest year for which there is a tax
13liability. If there are credits for more than one year that are
14available to offset liability, the earlier credit shall be
15applied first.
16    (c) If the taxpayer is a partnership or Subchapter S
17corporation, the credit shall be allowed to the partners or
18shareholders in accordance with the determination of income and
19distributive share of income under Sections 702 and 704 and
20Subchapter S of the Internal Revenue Code.
21    (d) A taxpayer is not entitled to the credit under this
22Section if the taxpayer receives a Natural Disaster Homestead
23Exemption under Section 15-173 of the Property Tax Code with
24respect to the qualified real property as a result of the
25natural disaster.
26    (e) The township assessor or, if the township assessor is

 

 

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1unable to certify, the chief county assessment officer of the
2county in which the property is located, shall certify to the
3Department a listing of the properties located within the
4county that have been damaged as a result of the natural
5disaster (including the name and address of the property owner
6and the property index number or permanent index number (PIN)
7of each damage property).
8    (f) As used in this Section:
9        (1) "Qualified real property" means real property that
10    is: (i) the taxpayer's principal residence or owned by a
11    small business; (ii) damaged during the taxable year as a
12    result of a disaster; and (iii) not used in a rental or
13    leasing business.
14        (2) "Small business" has the meaning given to that term
15    in Section 1-75 of the Illinois Administrative Procedure
16    Act.
17(Source: P.A. 100-555, eff. 11-16-17.)