Illinois General Assembly - Full Text of HB4578
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Full Text of HB4578  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 1/31/2024, by Rep. Michael J. Kelly


35 ILCS 5/235 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who have an approved NFPA 13D residential fire sprinkler system installed in a new or existing residential dwelling in the State during the taxable year. Provides that the credit shall be in an amount equal to 50% of the total cost of the installation but not to exceed $10,000 per taxpayer in any taxable year. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.

LRB103 35465 HLH 65534 b





HB4578LRB103 35465 HLH 65534 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 235 as follows:
6    (35 ILCS 5/235 new)
7    Sec. 235. Residential fire sprinkler installation credit.
8    (a) For taxable years ending on or after December 31,
92023, each taxpayer who has an approved NFPA 13D residential
10fire sprinkler system installed by a licensed fire sprinkler
11contractor in a new or existing residential dwelling in the
12State during the taxable year is entitled to a credit against
13the taxes imposed by subsections (a) and (b) of Section 201 in
14an amount equal to 50% of the total cost of the installation
15but not to exceed $10,000 per taxpayer in any taxable year.
16    (b) The taxpayer shall provide to the Department a copy of
17the final invoice showing the total cost of the installation
18of the fire sprinkler system. The invoice shall include the
20        (1) the water main tap fee, if required;
21        (2) fees and costs for combined sprinkler and domestic
22    water service;
23        (3) costs associated with installing, modifying, or



HB4578- 2 -LRB103 35465 HLH 65534 b

1    upgrading piping and valves; and
2        (4) all other installation and testing fees.
3    (c) In no event shall a credit under this Section reduce
4the taxpayer's liability to less than zero. If the amount of
5the credit exceeds the tax liability for the year, the excess
6may be carried forward and applied to the tax liability of the
7five taxable years following the excess credit year. The tax
8credit shall be applied to the earliest year for which there is
9a tax liability. If there are credits for more than one year
10that are available to offset a liability, the earlier credit
11shall be applied first.
12    (d) As used in this Section, "approved NFPA 13D
13residential fire sprinkler system" means a residential fire
14sprinkler system that meets the requirements of NFPA 13D
15standards established by the National Fire Protection
16Association for one-family and 2-family residential dwellings.
17    (e) This Section is exempt from the provisions of Section
19    Section 99. Effective date. This Act takes effect upon
20becoming law.