Bill Text: IL HB2456 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that each taxpayer who (i) was a resident of another State, (ii) first became a resident of Illinois in a taxable year beginning on or after January 1, 2019, (iii) is employed as a police officer or firefighter in Illinois during the taxable year, (iv) agrees to reside in Illinois for a period of at least 10 consecutive years, and (v) applies to the Department of Revenue for a new resident income tax credit is entitled to an income tax credit in the amount of $15,000 per year. Provides for recapture if the taxpayer fails to reside in the State for a period of at least 10 consecutive years after being approved for a credit by the Department. Provides that the credit is exempt from the Act's automatic sunset. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2456 Detail]

Download: Illinois-2019-HB2456-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2456 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
35 ILCS 5/229 new
Amends the Illinois Income Tax Act. Provides that each taxpayer who (i) was a resident of another State, (ii) first became a resident of Illinois in a taxable year beginning on or after January 1, 2019, (iii) is employed as a police officer or firefighter in Illinois during the taxable year, (iv) agrees to reside in Illinois for a period of at least 10 consecutive years, and (v) applies to the Department of Revenue for a new resident income tax credit is entitled to an income tax credit in the amount of $15,000 per year. Provides for recapture if the taxpayer fails to reside in the State for a period of at least 10 consecutive years after being approved for a credit by the Department. Provides that the credit is exempt from the Act's automatic sunset. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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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 229 as follows:
(35 ILCS 5/229 new)
Sec. 229. New resident credit.
(a) Each taxpayer who (i) was a resident of another State,
(ii) first became a resident of Illinois in a taxable year
beginning on or after January 1, 2019, (iii) is employed as a
police officer or firefighter in Illinois during the taxable
year, (iv) agrees to reside in Illinois for a period of at
least 10 consecutive years, and (v) applies to the Department
for a tax credit under this Section is entitled to a credit
against the tax imposed by subsections (a) and (b) of Section
201 in the amount of $15,000 per year. The Department may
approve no more than than 50,000 applications under this
Section. In the case of spouses filing a joint return, each
spouse must separately qualify under this subsection (a), and
both spouses together shall be considered a single taxpayer for
the purpose of calculating the maximum number of applications
under this Section.
(b) The tax credit award may not be carried back. If the

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amount of the credit exceeds the tax liability for the year,
the excess may be carried forward and applied to the tax
liability of the 5 tax years following the excess credit year.
The tax credit award shall be applied to the earliest year for
which there is a tax liability. If there are credits from more
than one tax year that are available to offset liability, the
earlier credit shall be applied first. In no event may a credit
under this Section reduce the taxpayer's liability to less than
zero.
(c) If the taxpayer fails to reside in the State for a
period of at least 10 consecutive years after being approved
for a credit by the Department under this Section, except in
the case of death or disability of the taxpayer, the Department
shall seek to recapture from the taxpayer the entire credit
amount awarded to the taxpayer prior to the date he or she
relocated.
(d) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.