HB4405 103RD GENERAL ASSEMBLY

LRB103 36116 HLH 66207 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4405

Introduced 1/16/2024, by Rep. Chris Miller

SYNOPSIS AS INTRODUCED:

35 ILCS 5/208

from Ch. 120, par. 2-208

Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2024, the credit for residential real property taxes is (i) 75% of the real property taxes paid by the taxpayer if the taxpayer is younger than 51 years of age on the last day of the tax year and (ii) 50% of the real property taxes paid by the taxpayer if the taxpayer is 51 years of age or older on the last day of the tax year. Provides that the credit is permanent. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by changing Section 208 as follows:

(35 ILCS 5/208) (from Ch. 120, par. 2-208)

Sec. 208. Tax credit for residential real property taxes.

(a) Beginning with tax years ending on or after December 31, 1991, every individual taxpayer shall be entitled to a tax credit equal to the creditable percentage 5% of real property taxes paid by such taxpayer during the taxable year on the principal residence of the taxpayer. In the case of multi-unit or multi-use structures and farm dwellings, the taxes on the taxpayer's principal residence shall be that portion of the total taxes which is attributable to such principal residence. Notwithstanding any other provision of law, for taxable years beginning on or after January 1, 2017 and ending prior to December 31, 2024, no taxpayer may claim a credit under this Section if the taxpayer's adjusted gross income for the taxable year exceeds (i) $500,000, in the case of spouses filing a joint federal tax return, or (ii) $250,000, in the case of all other taxpayers.

(b) As used in this Section:

"Creditable percentage" means:

(1) 5% for tax years ending prior to December 31, 2024; and

(2) for tax years ending on or after December 31, 2024:

(A) 75% if the taxpayer is younger than 51 years of age on the last day of the tax year; and

(B) 50% if the taxpayer is 51 years of age or older on the last day of the tax year.

If the taxpayer is married filing a joint return, then the creditable percentage under item (2) shall be based on the age of the oldest spouse.

(c) For tax years ending on or after December 31, 2025, the credit under this Section may be taken for only one residence per taxpayer. If the taxpayer is married filing a joint return, then the spouses may take a credit for only one residence jointly.

(d) This Section is exempt from the provisions of Section 250.

(Source: P.A. 101-8, see Section 99 for effective date; 102-558, eff. 8-20-21.)

Section 99. Effective date. This Act takes effect upon becoming law.