103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1836
 
Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr.
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/234 new

     Amends the Illinois Income Tax Act. Creates an income tax credit for individual taxpayers who rent a dwelling in Illinois for use as their principal place of residence. Provides that the credit shall be equal to 5% of the documented rental costs paid by such taxpayer during the taxable year on that dwelling. Effective immediately.
  


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A BILL FOR
 

  
SB1836LRB103 29606 HLH 56001 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 
5adding Section 234 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Tax credit for residential rental payments.
8    (a) Beginning with tax years ending on or after December 
931, 2023, every individual taxpayer who rents a dwelling in 
10Illinois for use as the individual's principal place of 
11residence shall be entitled to a tax credit equal to 5% of the 
12documented rental costs paid by the taxpayer during the 
13taxable year on that dwelling. 
14    (b) To qualify for the credit under this Section, the 
15taxpayer must meet the following requirements for the tax year 
16in which the taxpayer is claiming the credit provided by this 
17Section: 
18        (1) the taxpayer must have resided in Illinois for at 
19    least 183 days; 
20        (2) the taxpayer's federal adjusted gross income must 
21    not exceed 200% of the poverty guidelines updated 
22    periodically in the Federal Register by the United States 
23    Department of Health and Human Services under the 
 
 
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1    authority of 42 U.S.C. 9902(2); 
2        (3) the total rental payments on the taxpayer's 
3    principal place of residence during the taxable year must 
4    exceed 30% of the taxpayer's federal adjusted gross 
5    income; and 
6        (4) the taxpayer must not be claimed as a dependent on 
7    someone else's tax return. 
8    (c) The credit provided by this Section does not apply to 
9an individual who rents a dwelling that is exempt from 
10Illinois property taxes. 
11    (d) The Department may establish by rule: 
12        (1) a maximum dollar amount of the credit, which may 
13    vary by regions of the State, based on fair market rents 
14    determined by the U.S. Department of Housing and Urban 
15    Development for purposes of the housing choice voucher 
16    program; 
17        (2) the requirements by which the taxpayer shall 
18    document rental payments; and 
19        (3) any schedules for forms necessary to meet the 
20    requirements of this Section. 
21    (e) In no event shall a credit under this Section reduce 
22the taxpayer's liability to less than zero. If the amount of 
23the credit exceeds the income tax liability for the applicable 
24tax year, then the excess credit shall be refunded to the 
25taxpayer. 
26    (f) This Section is exempt from the provisions of Section 
 
 
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1250. 
 
 
2    Section 99. Effective date. This Act takes effect upon 
3becoming law.