SB0329 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0329

Introduced 2/15/2005, by Sen. Arthur J. Wilhelmi

SYNOPSIS AS INTRODUCED:

35 ILCS 5/216 new

Amends the Illinois Income Tax Act. Creates the College Affordability Tax Credit in an amount equal to 5% of amounts spent during the taxable year for the tuition and fees of the taxpayer and any dependent of the taxpayer engaged in full-time or part-time undergraduate studies at any public or private college, university, community college, or degree granting proprietary institution located in Illinois. Provides that the taxpayer shall provide supporting documentation to receive the credit. Provides that the credit may not reduce the taxpayer's income tax liability to less than zero. Applicable to tax years ending on or after December 31, 2005. Sunsets the credit after 10 years. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 adding Section 216 as follows:

(35 ILCS 5/216 new)

Sec. 216. The College Affordability Tax Credit. Beginning with taxable years ending on or after December 31, 2005 and ending with taxable years ending on or before December 31, 2014, a taxpayer is entitled to a credit against the tax imposed under this Act in an amount equal to 5% of amounts spent during the taxable year for the tuition and fees of the taxpayer and any dependent of the taxpayer engaged in full-time or part-time undergraduate studies at any public or private college, university, community college, or degree granting proprietary institution located in Illinois. The taxpayer shall provide supporting documentation, as prescribed by the Department by rule, to receive this credit. In no event shall a credit under this Section reduce the taxpayer's liability under this Act to less than zero.

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