HB0437 102ND GENERAL ASSEMBLY

LRB102 02855 HLH 12864 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0437

Introduced 2/8/2021, by Rep. Mark L. Walker

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Provides that a taxpayer who (i) has an associate's degree, a bachelor's degree, or a graduate degree from an institution of higher education accredited by the U.S. Department of Education, (ii) has annual student loan repayment expenses, and (iii) is employed full-time in the State, or has an offer of full-time employment in the State, in one or more of the specified science and technology fields is eligible for an income tax credit equal to the taxpayer's student loan repayment expenses for the taxable year, but not to exceed a maximum credit limit. 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 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Student loan repayment credit.

(a) For taxable years beginning on or after January 1, 2021, a qualified taxpayer may apply to the Department for a credit against the tax imposed by subsections (a) and (b) of Section 201. The amount of the credit shall be equal to the taxpayer's student loan repayment expenses for the taxable year, but not to exceed the maximum credit amount set forth in subsection (b).

(b) The maximum credit amount shall be:

(1) $6,000 per taxable year for a taxpayer with a master's degree or higher;

(2) $4,000 per taxable year for a taxpayer with a bachelor's degree; or

(3) $1,000 per taxable year for a taxpayer with an associate's degree.

In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. 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 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) As used in this Section, "qualified taxpayer" means a taxpayer who (i) has an Associate's degree, a Bachelor's degree, or a graduate degree from an institution of higher education accredited by the U.S. Department of Education; (ii) has annual student loan repayment expenses; and (iii) is employed full-time in the State, or has an offer of full-time employment in the State, in one or more of the following fields: life, natural, or environmental sciences; computer, information, or software technology; advanced mathematics or finance; engineering; industrial design or other commercially related design field; or medicine or medical device technology.

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