95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1643

 

Introduced 2/9/2007, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/212

    Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the earned income tax credit.


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A BILL FOR

 

SB1643 LRB095 10483 BDD 30698 b

1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Income Tax Act is amended by
5 changing Section 212 as follows:
 
6     (35 ILCS 5/212)
7     Sec. 212. Earned income tax credit.
8     (a) With respect to the the federal earned income tax
9 credit allowed for the taxable year under Section 32 of the
10 federal Internal Revenue Code, 26 U.S.C. 32, each individual
11 taxpayer is entitled to a credit against the tax imposed by
12 subsections (a) and (b) of Section 201 in an amount equal to 5%
13 of the federal tax credit for each taxable year beginning on or
14 after January 1, 2000.
15     For a non-resident or part-year resident, the amount of the
16 credit under this Section shall be in proportion to the amount
17 of income attributable to this State.
18     (b) For taxable years beginning before January 1, 2003, in
19 no event shall a credit under this Section reduce the
20 taxpayer's liability to less than zero. For each taxable year
21 beginning on or after January 1, 2003, if the amount of the
22 credit exceeds the income tax liability for the applicable tax
23 year, then the excess credit shall be refunded to the taxpayer.

 

 

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1 The amount of a refund shall not be included in the taxpayer's
2 income or resources for the purposes of determining eligibility
3 or benefit level in any means-tested benefit program
4 administered by a governmental entity unless required by
5 federal law.
6     (b-5) Refunds authorized by subsection (b) are subject to
7 the availability of funds from the federal Temporary Assistance
8 for Needy Families Block Grant and the State's ability to meet
9 its required Maintenance of Effort.
10     (c) This Section is exempt from the provisions of Section
11 250.
12 (Source: P.A. 93-534, eff. 8-18-03; 93-653, eff. 1-8-04.)