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:

 

 

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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.