House Sponsors: COULSON-WOOD-ERWIN-WIRSING-CLAYTON, LYONS,EILEEN, SCHOENBERG, MULLIGAN AND WAIT. Senate Sponsors: PARKER-BERMAN-LINK Short description: INC TX-COLLEGE SAVINGS PLAN Synopsis of Bill as introduced: Amends the Illinois Income Tax Act. Allows individual taxpayers who are 20 years of age or younger a deduction in an amount, not to exceed $1,000, equal to the amount deposited in and the interest earned on a college savings plan account. Provides that a taxpayer shall not be required to deposit more than $500 into an account to begin a college savings plan. Requires the moneys deposited into and the interest earned on an account designated as a college savings plan to be used only by the account holder and only for college or university expenses. Provides that if a taxpayer uses moneys deposited in the college savings plan account for a purpose other than college or university expenses, the moneys shall be subject to taxation under this Act and the account holder shall incur a penalty equal to 10% of that principal or income used for purposes other than college or university expenses. States that the Department of Revenue shall promulgate rules to implement and enforce this Section. HOUSE AMENDMENT NO. 1. Defines "eligible taxpayer" as a taxpayer who is (i) 20 years of age or younger, (ii) over 20 years of age and attending a college or university, or (iii) the relative or legal guardian of a individual 20 years of age or younger or over 20 years of age and attending a college or university and who deposits money in a college savings plan for the benefit of a taxpayer who is 20 years of age or younger or over 20 years of age and attending a college or university. Allows eligible taxpayers to deduct an amount, not to exceed $1,000, equal to the amount deposited in and the interest earned on a college savings plan account. Exempts the deduction from the sunset provisions. Last action on Bill: SESSION SINE DIE Last action date: 99-01-12 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0 END OF INQUIRY Full Text Bill Status