SB1245 103RD GENERAL ASSEMBLY

LRB103 25121 HLH 55856 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1245

Introduced 2/2/2023, by Sen. Jil Tracy

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224
35 ILCS 40/65

Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2024). Effective immediately.

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 changing Section 224 as follows:

(35 ILCS 5/224)

Sec. 224. Invest in Kids credit.

(a) For taxable years beginning on or after January 1, 2018 and ending before January 1, 2024, each taxpayer for whom a tax credit has been awarded by the Department under the Invest in Kids Act is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act in an amount equal to the amount awarded under the Invest in Kids Act.

(b) For partners, shareholders of subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, the credit under this Section shall be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code.

(c) The credit may not be carried back and may not 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 the liability, the earlier credit shall be applied first.

(d) A tax credit awarded by the Department under the Invest in Kids Act may not be claimed for any qualified contribution for which the taxpayer claims a federal income tax deduction.

(e) This Section is exempt from the provisions of Section 250.

(Source: P.A. 102-699, eff. 4-19-22.)

Section 10. The Invest in Kids Act is amended by changing Section 65 as follows:

(35 ILCS 40/65)

(Section scheduled to be repealed on January 1, 2025)

Sec. 65. Credit period; repeal.

(a) A taxpayer may take a credit under this Act for tax years beginning on or after January 1, 2018 and ending before January 1, 2024. A taxpayer may not take a credit pursuant to this Act for tax years beginning on or after January 1, 2024.

(b) This Act is exempt from the provisions of Section 250 of the Illinois Income Tax Act repealed on January 1, 2025.

(Source: P.A. 102-16, eff. 6-17-21.)

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