102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4266

 

Introduced 1/5/2022, by Rep. Barbara Hernandez

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Provides that a taxpayer who makes a donation to a qualified charitable entity of: (i) disposable diapers; (ii) other hygiene products for infants or children; (iii) menstrual hygiene products; or (iv) cash that is specifically designated for the purchase of the those products is entitled to an income tax credit in an amount equal to the cost of the donation, but not to exceed $1,000 per taxpayer in any taxable year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.


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A BILL FOR

 

HB4266LRB102 21923 HLH 31046 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 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Donations of diapers and menstrual hygiene
8products.
9    (a) For taxable years beginning on or after January 1,
102022, each taxpayer who makes a donation to a qualified
11charitable entity of: (i) disposable diapers; (ii) other
12hygiene products for infants or children; (iii) menstrual
13hygiene products; or (iv) cash that is specifically designated
14for the purchase of the products specified in items (i), (ii),
15or (iii) is entitled to a credit against the tax imposed by
16subsections (a) and (b) of Section 201 in an amount equal to
17the cost of the donation, but not to exceed $1,000 per taxpayer
18in any taxable year.
19    (b) In no event shall a credit under this Section reduce
20the taxpayer's liability to less than zero. If the amount of
21the credit exceeds the tax liability for the year, the excess
22may be carried forward and applied to the tax liability of the
235 taxable years following the excess credit year. The tax

 

 

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1credit shall be applied to the earliest year for which there is
2a tax liability. If there are credits for more than one year
3that are available to offset a liability, the earlier credit
4shall be applied first.
5    (c) As used in this Section:
6    "Menstrual hygiene product" means a product that is exempt
7from taxation under paragraph (42) of Section 2-5 of the
8Retailers' Occupation Tax Act.
9    "Qualified charitable entity" means a diaper bank,
10homeless shelter, domestic violence shelter, religious
11organization, or other charitable organization that registers
12with the Department as a distributor of disposable diapers,
13other hygiene products for infants or children, or menstrual
14hygiene products.
15    (d) This Section is exempt from the provisions of Section
16250.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.