Bill Text: IL HB2429 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for individual taxpayers who rent a dwelling in Illinois for use as their principal place of residence. Provides that the credit shall be equal to 5% of the documented rental costs paid by such taxpayer during the taxable year on that dwelling. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-02-15 - Referred to Rules Committee [HB2429 Detail]
Download: Illinois-2023-HB2429-Introduced.html
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
1 | AN ACT concerning revenue.
| |||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||
4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||
5 | adding Section 234 as follows:
| |||||||||||||||||||
6 | (35 ILCS 5/234 new) | |||||||||||||||||||
7 | Sec. 234. Tax credit for residential rental payments. | |||||||||||||||||||
8 | (a) Beginning with tax years ending on or after December | |||||||||||||||||||
9 | 31, 2023, every individual taxpayer who rents a dwelling in | |||||||||||||||||||
10 | Illinois for use as the individual's principal place of | |||||||||||||||||||
11 | residence shall be entitled to a tax credit equal to 5% of the | |||||||||||||||||||
12 | documented rental costs paid by the taxpayer during the | |||||||||||||||||||
13 | taxable year on that dwelling. | |||||||||||||||||||
14 | (b) To qualify for the credit under this Section, the | |||||||||||||||||||
15 | taxpayer must meet the following requirements for the tax year | |||||||||||||||||||
16 | in which the taxpayer is claiming the credit provided by this | |||||||||||||||||||
17 | Section: | |||||||||||||||||||
18 | (1) the taxpayer must have resided in Illinois for at | |||||||||||||||||||
19 | least 183 days; | |||||||||||||||||||
20 | (2) the taxpayer's federal adjusted gross income must | |||||||||||||||||||
21 | not exceed 200% of the poverty guidelines updated | |||||||||||||||||||
22 | periodically in the Federal Register by the United States | |||||||||||||||||||
23 | Department of Health and Human Services under the |
| |||||||
| |||||||
1 | authority of 42 U.S.C. 9902(2); | ||||||
2 | (3) the total rental payments on the taxpayer's | ||||||
3 | principal place of residence during the taxable year must | ||||||
4 | exceed 30% of the taxpayer's federal adjusted gross | ||||||
5 | income; and | ||||||
6 | (4) the taxpayer must not be claimed as a dependent on | ||||||
7 | someone else's tax return. | ||||||
8 | (c) The credit provided by this Section does not apply to | ||||||
9 | an individual who rents a dwelling that is exempt from | ||||||
10 | Illinois property taxes. | ||||||
11 | (d) The Department may establish by rule: | ||||||
12 | (1) a maximum dollar amount of the credit, which may | ||||||
13 | vary by regions of the State, based on fair market rents | ||||||
14 | determined by the U.S. Department of Housing and Urban | ||||||
15 | Development for purposes of the housing choice voucher | ||||||
16 | program; | ||||||
17 | (2) the requirements by which the taxpayer shall | ||||||
18 | document rental payments; and | ||||||
19 | (3) any schedules for forms necessary to meet the | ||||||
20 | requirements of this Section. | ||||||
21 | (e) In no event shall a credit under this Section reduce | ||||||
22 | the taxpayer's liability to less than zero. If the amount of | ||||||
23 | the credit exceeds the income tax liability for the applicable | ||||||
24 | tax year, then the excess credit shall be refunded to the | ||||||
25 | taxpayer. | ||||||
26 | (f) This Section is exempt from the provisions of Section |
| |||||||
| |||||||
1 | 250.
| ||||||
2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
|