103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4405
 
Introduced 1/16/2024, by Rep. Chris Miller
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/208  from Ch. 120, par. 2-208
    Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2024, the credit for residential real property taxes is (i) 75% of the real property taxes paid by the taxpayer if the taxpayer is younger than 51 years of age on the last day of the tax year and (ii) 50% of the real property taxes paid by the taxpayer if the taxpayer is 51 years of age or older on the last day of the tax year. Provides that the credit is permanent. Effective immediately.


LRB103 36116 HLH 66207 b

 
 
A BILL FOR
 
HB4405LRB103 36116 HLH 66207 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 208 as follows:
 
6    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
7    Sec. 208. Tax credit for residential real property taxes.  
8    (a) Beginning with tax years ending on or after December 
931, 1991, every individual taxpayer shall be entitled to a tax 
10credit equal to the creditable percentage 5% of real property 
11taxes paid by such taxpayer during the taxable year on the 
12principal residence of the taxpayer. In the case of multi-unit 
13or multi-use structures and farm dwellings, the taxes on the 
14taxpayer's principal residence shall be that portion of the 
15total taxes which is attributable to such principal residence. 
16Notwithstanding any other provision of law, for taxable years 
17beginning on or after January 1, 2017 and ending prior to 
18December 31, 2024, no taxpayer may claim a credit under this 
19Section if the taxpayer's adjusted gross income for the 
20taxable year exceeds (i) $500,000, in the case of spouses 
21filing a joint federal tax return, or (ii) $250,000, in the 
22case of all other taxpayers. 
23    (b) As used in this Section: 
 
 
HB4405- 2 -LRB103 36116 HLH 66207 b

1    "Creditable percentage" means: 
2        (1) 5% for tax years ending prior to December 31, 
3    2024; and 
4        (2) for tax years ending on or after December 31, 
5    2024: 
6            (A) 75% if the taxpayer is younger than 51 years of 
7        age on the last day of the tax year; and 
8            (B) 50% if the taxpayer is 51 years of age or older 
9        on the last day of the tax year. 
10    If the taxpayer is married filing a joint return, then the 
11creditable percentage under item (2) shall be based on the age 
12of the oldest spouse. 
13    (c) For tax years ending on or after December 31, 2025, the 
14credit under this Section may be taken for only one residence 
15per taxpayer. If the taxpayer is married filing a joint 
16return, then the spouses may take a credit for only one 
17residence jointly. 
18    (d) This Section is exempt from the provisions of Section 
19250. 
20(Source: P.A. 101-8, see Section 99 for effective date; 
21102-558, eff. 8-20-21.)
 
22    Section 99. Effective date. This Act takes effect upon 
23becoming law.