Illinois General Assembly - Full Text of SB1145
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Full Text of SB1145  102nd General Assembly

SB1145eng 102ND GENERAL ASSEMBLY



 


 
SB1145 EngrossedLRB102 04961 HLH 14980 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. College tuition expense credit.
8    (a) For taxable years that begin on or after January 1,
92023 and begin prior to January 1, 2028, a taxpayer who may
10claim one or more qualifying students as a dependent, or a
11taxpayer who is a qualifying student and is not claimed as a
12dependent by any other taxpayer, shall be allowed a credit
13against the tax imposed by subsections (a) and (b) of Section
14201 in an amount equal to the lesser of: (1) the qualified
15tuition and fee expenses paid by the taxpayer during the
16taxable year on behalf of the qualifying student or students;
17or (2) the maximum credit amount. Qualified taxpayers may
18apply to the Board of Higher Education for a credit under this
19Section in the form and manner required by the Board of Higher
20Education by rule. If the application is approved, the Board
21of Higher Education shall award the credit by issuance of a
22certificate of tax credit to the taxpayer. The taxpayer shall
23present the certificate of tax credit to the Department of

 

 

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1Revenue by attaching the certificate to the taxpayer's
2Illinois income tax return.
3    (b) The maximum credit amount under this Section is:
4        (1) $1,000 if the taxpayer's federal adjusted gross
5    income is more than 6 times the federal poverty level but
6    not more than 7 times the federal poverty level;
7        (2) $750 if the taxpayer's federal adjusted gross
8    income is more than 7 times the federal poverty level but
9    not more than 9 times the federal poverty level; and
10        (3) $500 if the taxpayer's federal adjusted gross
11    income is more than 9 times the federal poverty level but
12    not more than 11 times the federal poverty level.
13    (c) In no event shall a credit under this Section reduce a
14taxpayer's liability to less than zero.
15    (d) For the purpose of this Section:
16    "Federal poverty level" means the federal poverty
17guidelines updated periodically in the Federal Register by the
18United States Department of Health and Human Services,
19reported as of the last day of the taxable year for which the
20credit under this Section is claimed.
21    "Qualifying university" means any public university that
22is physically located in the State and is eligible to
23participate in a student loan program administered by the
24United States Department of Education.
25    "Qualifying student" means an individual who (i) is a
26resident of the State, (ii) is under the age of 24 at the close

 

 

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1of the tax year for which a credit is sought, and (iii) during
2the tax year for which a credit is sought, is a full-time
3student enrolled in a program at a qualifying university at
4which the student is enrolled.
5    "Qualified tuition and fee expense" means the amount
6incurred on behalf of a qualifying student for tuition, book
7fees, and lab fees at the qualifying university at which the
8student is enrolled.
9    (e) Notwithstanding any other provision of law, no
10taxpayer may claim a credit under this Section if the
11taxpayer's federal adjusted gross income for the taxable year
12is less than or equal to 6 times the federal poverty level or
13more than 11 times the federal poverty level.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.