103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2624

 

Introduced 10/24/2023, by Sen. Natalie Toro

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/241 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for certain qualified 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

 

SB2624LRB103 34527 HLH 64770 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 241 as follows:
 
6    (35 ILCS 5/241 new)
7    Sec. 241. Tax credit for residential rental payments.
8    (a) For tax years ending on or after December 31, 2024,
9every individual taxpayer who rents a dwelling in Illinois for
10use as the individual's principal place of residence shall be
11entitled to a credit against the taxes imposed under
12subsections (a) and (b) of Section 201 in an amount equal to 5%
13of the documented rental costs paid by the taxpayer during the
14taxable year on that dwelling.
15    (b) To qualify for the credit under this Section, the
16taxpayer must meet the following requirements for the tax year
17in which the taxpayer is claiming the credit provided by this
18Section:
19        (1) the taxpayer must have resided in Illinois for at
20    least 183 days;
21        (2) the taxpayer's federal adjusted gross income must
22    not exceed 300% of the poverty guidelines updated
23    periodically in the Federal Register by the United States

 

 

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1    Department of Health and Human Services under the
2    authority of 42 U.S.C. 9902(2);
3        (3) the total rental payments on the taxpayer's
4    principal place of residence during the taxable year must
5    exceed 20% of the taxpayer's federal adjusted gross
6    income; and
7        (4) the taxpayer must not be claimed as a dependent on
8    someone else's tax return.
9    (c) The credit provided by this Section does not apply to
10an individual who rents a dwelling that is exempt from
11Illinois property taxes.
12    (d) The Department may establish by rule:
13        (1) a maximum dollar amount of the credit, which may
14    vary by regions of the State, based on fair market rents
15    determined by the U.S. Department of Housing and Urban
16    Development for purposes of the housing choice voucher
17    program;
18        (2) the requirements by which the taxpayer shall
19    document rental payments; and
20        (3) any schedules for forms necessary to meet the
21    requirements of this Section.
22    (e) In no event shall a credit under this Section reduce
23the taxpayer's liability to less than zero. If the amount of
24the credit exceeds the income tax liability for the applicable
25tax year, then the excess credit shall be refunded to the
26taxpayer.

 

 

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1    (f) This Section is exempt from the provisions of Section
2250.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.