SB1439 103RD GENERAL ASSEMBLY

LRB103 27452 HLH 53824 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1439

Introduced 2/7/2023, by Sen. Paul Faraci

SYNOPSIS AS INTRODUCED:

35 ILCS 5/225

Amends the Illinois income Tax Act. Provides that, for purposes of the tax credit for instructional materials and supplies, the term "qualified school" also includes public institutions of higher education. 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 225 as follows:

(35 ILCS 5/225)

Sec. 225. Credit for instructional materials and supplies. For taxable years beginning on and after January 1, 2017, a taxpayer shall be allowed a credit in the amount paid by the taxpayer during the taxable year for instructional materials and supplies with respect to classroom based instruction in a qualified school, or the maximum credit amount, whichever is less, provided that the taxpayer is a teacher, instructor, counselor, principal, or aide in a qualified school for at least 900 hours during a school year.

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 a liability, the earlier credit shall be applied first.

For purposes of this Section, the term "materials and supplies" means amounts paid for instructional materials or supplies that are designated for classroom use in any qualified school. For purposes of this Section, the term "qualified school" means a public school or non-public school located in Illinois and, for tax years beginning on or after January 1, 2024, a public institution of higher education as defined in the Board of Higher Education Act.

For purposes of this Section, the term "maximum credit amount" means (i) $250 for taxable years beginning prior to January 1, 2023 and (ii) $500 for taxable years beginning on or after January 1, 2023.

This Section is exempt from the provisions of Section 250.

(Source: P.A. 102-700, eff. 4-19-22.)

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