Full Text of SB0339 095th General Assembly
SB0339 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB0339
Introduced 2/7/2007, by Sen. Jacqueline Y. Collins SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Increases the amount of the earned income tax credit from 5% of the federal tax credit to (i) 10% of the federal tax credit for each taxable year beginning on or after
January 1,
2007, (ii) 15% of the federal tax credit for each taxable year beginning on or after
January 1,
2009, and (iii) 20% of the federal tax credit for each taxable year beginning on or after
January 1,
2011. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB0339 |
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LRB095 06359 BDD 26455 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Section 212 as follows: | 6 |
| (35 ILCS 5/212)
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| Sec. 212. Earned income tax credit.
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| (a) With respect to the federal earned income tax credit | 9 |
| allowed for the
taxable year under Section 32 of the federal | 10 |
| Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | 11 |
| is entitled to a credit against the tax imposed by
subsections | 12 |
| (a) and (b) of Section 201 in an amount equal to :
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| (1) 5% of the federal tax credit for each taxable year | 14 |
| beginning on or after
January 1,
2000 and ending on or | 15 |
| before December 31, 2006; | 16 |
| (2) 10% of the federal tax credit for each taxable year | 17 |
| beginning on or after
January 1,
2007 and ending on or | 18 |
| before December 31, 2008; | 19 |
| (3) 15% of the federal tax credit for each taxable year | 20 |
| beginning on or after
January 1,
2009 and ending on or | 21 |
| before December 31, 2010; and | 22 |
| (4) 20% of the federal tax credit for each taxable year | 23 |
| beginning on or after
January 1,
2011 .
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SB0339 |
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LRB095 06359 BDD 26455 b |
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| For a non-resident or part-year resident, the amount of the | 2 |
| credit under this
Section shall be in proportion to the amount | 3 |
| of income attributable to this
State.
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| (b) For taxable years beginning before January 1, 2003, in | 5 |
| no event
shall a credit under this Section reduce the | 6 |
| taxpayer's
liability to less than zero. For each taxable year | 7 |
| beginning on or after
January 1, 2003, if the amount of the | 8 |
| credit exceeds the income tax liability
for the applicable tax | 9 |
| year, then the excess credit shall be refunded to the
taxpayer. | 10 |
| The amount of a refund shall not be included in the taxpayer's
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| income or resources for the purposes of determining eligibility | 12 |
| or benefit
level in any means-tested benefit program | 13 |
| administered by a governmental entity
unless required by | 14 |
| federal law.
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| (b-5) Refunds authorized by subsection (b) are subject to | 16 |
| the
availability of funds
from the federal Temporary Assistance | 17 |
| for Needy Families Block Grant and the
State's
ability to meet | 18 |
| its required Maintenance of Effort.
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| (c) This Section is exempt from the provisions of Section | 20 |
| 250.
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| (Source: P.A. 93-534, eff. 8-18-03; 93-653, eff. 1-8-04.)
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| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.
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