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| 1 | AN ACT concerning revenue.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Income Tax Act is amended by | ||||||
| 5 | changing Section 218 as follows: | ||||||
| 6 | (35 ILCS 5/218) | ||||||
| 7 | Sec. 218. Credit for student-assistance contributions. | ||||||
| 8 | (a) For taxable years ending on or after December 31, 2009 | ||||||
| 9 | and on or before December 31, 2031 December 30, 2021, each | ||||||
| 10 | taxpayer who, during the taxable year, makes a contribution | ||||||
| 11 | (i) to a specified individual College Savings Pool Account | ||||||
| 12 | under Section 16.5 of the State Treasurer Act or (ii) to the | ||||||
| 13 | Illinois Prepaid Tuition Trust Fund in an amount matching a | ||||||
| 14 | contribution made in the same taxable year by an employee of | ||||||
| 15 | the taxpayer to that Account or Fund is entitled to a credit | ||||||
| 16 | against the tax imposed under subsections (a) and (b) of | ||||||
| 17 | Section 201 in an amount equal to 25% of that matching | ||||||
| 18 | contribution, but not to exceed (i) $500 per contributing | ||||||
| 19 | employee per taxable year for taxable years ending prior to | ||||||
| 20 | December 31, 2021 and (ii) $1,000 per contributing employee | ||||||
| 21 | per taxable year for taxable years ending on or after December | ||||||
| 22 | 31, 2021. | ||||||
| 23 | (b) For partners, shareholders of Subchapter S | ||||||
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| 1 | corporations, and owners of limited liability companies, if | ||||||
| 2 | the liability company is treated as a partnership for purposes | ||||||
| 3 | of federal and State income taxation, there is allowed a | ||||||
| 4 | credit under this Section to be determined in accordance with | ||||||
| 5 | the determination of income and distributive share of income | ||||||
| 6 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
| 7 | Revenue Code. | ||||||
| 8 | (c) The credit may not be carried back. If the amount of | ||||||
| 9 | the credit exceeds the tax liability for the year, the excess | ||||||
| 10 | may be carried forward and applied to the tax liability of the | ||||||
| 11 | 5 taxable years following the excess credit year. The tax | ||||||
| 12 | credit shall be applied to the earliest year for which there is | ||||||
| 13 | a tax liability. If there are credits for more than one year | ||||||
| 14 | that are available to offset a liability, the earlier credit | ||||||
| 15 | shall be applied first.
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| 16 | (d) A taxpayer claiming the credit under this Section must | ||||||
| 17 | maintain and record any information that the Illinois Student | ||||||
| 18 | Assistance Commission, the Office of the State Treasurer, or | ||||||
| 19 | the Department may require regarding the matching contribution | ||||||
| 20 | for which the credit is claimed.
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| 21 | (Source: P.A. 101-645, eff. 6-26-20.)
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| 22 | Section 99. Effective date. This Act takes effect upon | ||||||
| 23 | becoming law.
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