Illinois General Assembly - Full Text of HB3742
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Full Text of HB3742  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/22/2021, by Rep. Barbara Hernandez


35 ILCS 5/218

    Amends the Illinois Income Tax Act. Provides that the credit for student assistance contributions sunsets on December 30, 2027 (instead of December 30, 2021). Provides that the credit for student-assistance contributions may not exceed $1,000 (currently, $500) per contributing employee per taxable year. Effective immediately.

LRB102 14760 HLH 20113 b






HB3742LRB102 14760 HLH 20113 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
5changing Section 218 as follows:
6    (35 ILCS 5/218)
7    Sec. 218. Credit for student-assistance contributions.
8    (a) For taxable years ending on or after December 31, 2009
9and on or before December 30, 2027 December 30, 2021, each
10taxpayer who, during the taxable year, makes a contribution
11(i) to a specified individual College Savings Pool Account
12under Section 16.5 of the State Treasurer Act or (ii) to the
13Illinois Prepaid Tuition Trust Fund in an amount matching a
14contribution made in the same taxable year by an employee of
15the taxpayer to that Account or Fund is entitled to a credit
16against the tax imposed under subsections (a) and (b) of
17Section 201 in an amount equal to 25% of that matching
18contribution, but not to exceed (i) $500 per contributing
19employee per taxable year for taxable years ending prior to
20December 31, 2021 and (ii) $1,000 per contributing employee
21per taxable year for taxable years ending on or after December
2231, 2021.
23    (b) For partners, shareholders of Subchapter S



HB3742- 2 -LRB102 14760 HLH 20113 b

1corporations, and owners of limited liability companies, if
2the liability company is treated as a partnership for purposes
3of federal and State income taxation, there is allowed a
4credit under this Section to be determined in accordance with
5the determination of income and distributive share of income
6under Sections 702 and 704 and Subchapter S of the Internal
7Revenue Code.
8    (c) The credit may not be carried back. If the amount of
9the credit exceeds the tax liability for the year, the excess
10may be carried forward and applied to the tax liability of the
115 taxable years following the excess credit year. The tax
12credit shall be applied to the earliest year for which there is
13a tax liability. If there are credits for more than one year
14that are available to offset a liability, the earlier credit
15shall be applied first.
16    (d) A taxpayer claiming the credit under this Section must
17maintain and record any information that the Illinois Student
18Assistance Commission, the Office of the State Treasurer, or
19the Department may require regarding the matching contribution
20for which the credit is claimed.
21(Source: P.A. 101-645, eff. 6-26-20.)
22    Section 99. Effective date. This Act takes effect upon
23becoming law.