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Sen. Laura M. Murphy
Filed: 3/9/2022
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1 | | AMENDMENT TO SENATE BILL 1145
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1145, AS AMENDED, |
3 | | by replacing everything after the enacting clause with the |
4 | | following:
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5 | | "Section 5. The Illinois Income Tax Act is amended by |
6 | | adding Section 232 as follows: |
7 | | (35 ILCS 5/232 new) |
8 | | Sec. 232. College tuition expense credit. |
9 | | (a) For taxable years that begin on or after January 1, |
10 | | 2023 and begin prior to January 1, 2028, a taxpayer who may |
11 | | claim one or more qualifying students as a dependent, or a |
12 | | taxpayer who is a qualifying student and is not claimed as a |
13 | | dependent by any other taxpayer, shall be allowed a credit |
14 | | against the tax imposed by subsections (a) and (b) of Section |
15 | | 201 in an amount equal to the lesser of: (1) the qualified |
16 | | tuition and fee expenses paid by the taxpayer during the |
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1 | | taxable year on behalf of the qualifying student or students; |
2 | | or (2) the maximum credit amount. Qualified taxpayers may |
3 | | apply to the Board of Higher Education for a credit under this |
4 | | Section in the form and manner required by the Board of Higher |
5 | | Education by rule. If the application is approved, the Board |
6 | | of Higher Education shall award the credit by issuance of a |
7 | | certificate of tax credit to the taxpayer. The taxpayer shall |
8 | | present the certificate of tax credit to the Department of |
9 | | Revenue by attaching the certificate to the taxpayer's |
10 | | Illinois income tax return. |
11 | | (b) The maximum credit amount under this Section is: |
12 | | (1) $1,000 if the taxpayer's federal adjusted gross |
13 | | income is more than 6 times the federal poverty level but |
14 | | not more than 7 times the federal poverty level; |
15 | | (2) $750 if the taxpayer's federal adjusted gross |
16 | | income is more than 7 times the federal poverty level but |
17 | | not more than 9 times the federal poverty level; and |
18 | | (3) $500 if the taxpayer's federal adjusted gross |
19 | | income is more than 9 times the federal poverty level but |
20 | | not more than 11 times the federal poverty level. |
21 | | (c) In no event shall a credit under this Section reduce a |
22 | | taxpayer's liability to less than zero. |
23 | | (d) For the purpose of this Section: |
24 | | "Federal poverty level" means the federal poverty |
25 | | guidelines updated periodically in the Federal Register by the |
26 | | United States Department of Health and Human Services, |
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1 | | reported as of the last day of the taxable year for which the |
2 | | credit under this Section is claimed. |
3 | | "Qualifying university" means any public university that |
4 | | is physically located in the State and is eligible to |
5 | | participate in a student loan program administered by the |
6 | | United States Department of Education. |
7 | | "Qualifying student" means an individual who (i) is a |
8 | | resident of the State, (ii) is under the age of 24 at the close |
9 | | of the tax year for which a credit is sought, and (iii) during |
10 | | the tax year for which a credit is sought, is a full-time |
11 | | student enrolled in a program at a qualifying university at |
12 | | which the student is enrolled. |
13 | | "Qualified tuition and fee expense" means the amount |
14 | | incurred on behalf of a qualifying student for tuition, book |
15 | | fees, and lab fees at the qualifying university at which the |
16 | | student is enrolled. |
17 | | (e) Notwithstanding any other provision of law, no |
18 | | taxpayer may claim a credit under this Section if the |
19 | | taxpayer's federal adjusted gross income for the taxable year |
20 | | is less than or equal to 6 times the federal poverty level or |
21 | | more than 11 times the federal poverty level.
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22 | | Section 99. Effective date. This Act takes effect upon |
23 | | becoming law.".
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