HB2456 101ST GENERAL ASSEMBLY

LRB101 07115 HLH 52152 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2456

Introduced , by Rep. Thaddeus Jones

SYNOPSIS AS INTRODUCED:

35 ILCS 5/229 new

Amends the Illinois Income Tax Act. Provides that each taxpayer who (i) was a resident of another State, (ii) first became a resident of Illinois in a taxable year beginning on or after January 1, 2019, (iii) is employed as a police officer or firefighter in Illinois during the taxable year, (iv) agrees to reside in Illinois for a period of at least 10 consecutive years, and (v) applies to the Department of Revenue for a new resident income tax credit is entitled to an income tax credit in the amount of $15,000 per year. Provides for recapture if the taxpayer fails to reside in the State for a period of at least 10 consecutive years after being approved for a credit by the Department. Provides that the credit is exempt from the Act's automatic sunset. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 229 as follows:

(35 ILCS 5/229 new)

Sec. 229. New resident credit.

(a) Each taxpayer who (i) was a resident of another State, (ii) first became a resident of Illinois in a taxable year beginning on or after January 1, 2019, (iii) is employed as a police officer or firefighter in Illinois during the taxable year, (iv) agrees to reside in Illinois for a period of at least 10 consecutive years, and (v) applies to the Department for a tax credit under this Section is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of $15,000 per year. The Department may approve no more than than 50,000 applications under this Section. In the case of spouses filing a joint return, each spouse must separately qualify under this subsection (a), and both spouses together shall be considered a single taxpayer for the purpose of calculating the maximum number of applications under this Section.

(b) The tax credit award may not be carried back. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 tax years following the excess credit year. The tax credit award shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset liability, the earlier credit shall be applied first. In no event may a credit under this Section reduce the taxpayer's liability to less than zero.

(c) If the taxpayer fails to reside in the State for a period of at least 10 consecutive years after being approved for a credit by the Department under this Section, except in the case of death or disability of the taxpayer, the Department shall seek to recapture from the taxpayer the entire credit amount awarded to the taxpayer prior to the date he or she relocated.

(d) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.