Illinois-2019-HB2867-Introduced

101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB2867

Introduced , by Rep. Sue Scherer

SYNOPSIS AS INTRODUCED:

35 ILCS 5/226

Amends the Illinois Income Tax Act. Provides a tax credit to each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor due to tornadoes in 2018. Effective immediately.

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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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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 changing Section 226 as follows:

6 (35 ILCS 5/226)

7 Sec. 226. Natural disaster credit.

8 (a) For taxable years that begin on or after January 1,

9 2017 and begin prior to January 1, 2019, each taxpayer who owns

10 qualified real property located in a county in Illinois that

11 was declared a State disaster area by the Governor due to

12 flooding in 2017 or 2018 is entitled to a credit against the

13 taxes imposed by subsections (a) and (b) of Section 201 of this

14 Act in an amount equal to the lesser of $750 or the deduction

15 allowed (whether or not the taxpayer determines taxable income

16 under subsection (b) of Section 63 of the Internal Revenue

17 Code) with respect to the qualified property under Section 165

18 of the Internal Revenue Code, determined without regard to the

19 limitations imposed under subsection (h) of that Section.

20 For taxable years that begin on or after January 1, 2018

21 and begin prior to January 1, 2019, each taxpayer who owns

22 qualified real property located in a county in Illinois that

23 was declared a State disaster area by the Governor due to

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1 tornadoes in 2018 is entitled to a credit against the taxes

2 imposed by subsections (a) and (b) of Section 201 of this Act

3 in an amount equal to the lesser of $750 or the deduction

4 allowed (whether or not the taxpayer determines taxable income

5 under subsection (b) of Section 63 of the Internal Revenue

6 Code) with respect to the qualified property under Section 165

7 of the Internal Revenue Code, determined without regard to the

8 limitations imposed under subsection (h) of that Section.

9 The township assessor or, if the township assessor is

10 unable, the chief county assessment officer of the county in

11 which the property is located, shall issue a certificate to the

12 taxpayer identifying the taxpayer's property as damaged as a

13 result of the natural disaster. The certificate shall include

14 the name and address of the property owner, as well as the

15 property index number or permanent index number (PIN) of the

16 damaged property. The taxpayer shall attach a copy of such

17 certificate to the taxpayer's return for the taxable year for

18 which the credit is allowed.

19 (b) In no event shall a credit under this Section reduce a

20 taxpayer's liability to less than zero. If the amount of credit

21 exceeds the tax liability for the year, the excess may be

22 carried forward and applied to the tax liability for the 5

23 taxable years following the excess credit year. The tax credit

24 shall be applied to the earliest year for which there is a tax

25 liability. If there are credits for more than one year that are

26 available to offset liability, the earlier credit shall be

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1 applied first.

2 (c) If the taxpayer is a partnership or Subchapter S

3 corporation, the credit shall be allowed to the partners or

4 shareholders in accordance with the determination of income and

5 distributive share of income under Sections 702 and 704 and

6 Subchapter S of the Internal Revenue Code.

7 (d) A taxpayer is not entitled to the credit under this

8 Section if the taxpayer receives a Natural Disaster Homestead

9 Exemption under Section 15-173 of the Property Tax Code with

10 respect to the qualified real property as a result of the

11 natural disaster.

12 (e) The township assessor or, if the township assessor is

13 unable to certify, the chief county assessment officer of the

14 county in which the property is located, shall certify to the

15 Department a listing of the properties located within the

16 county that have been damaged as a result of the natural

17 disaster (including the name and address of the property owner

18 and the property index number or permanent index number (PIN)

19 of each damage property).

20 (f) As used in this Section:

21 (1) "Qualified real property" means real property that

22 is: (i) the taxpayer's principal residence or owned by a

23 small business; (ii) damaged during the taxable year as a

24 result of a disaster; and (iii) not used in a rental or

25 leasing business.

26 (2) "Small business" has the meaning given to that term

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1 in Section 1-75 of the Illinois Administrative Procedure

2 Act.

3 (g) Nothing in this Act prohibits the disclosure of

4 information by officials of a county or municipality involving

5 reports of damaged property or the owners of damaged property

6 if that disclosure is made to a township or county assessment

7 official in connection with a credit obtained or sought under

8 this Section.

9 (Source: P.A. 100-555, eff. 11-16-17; 100-587, eff. 6-4-18;

10 100-731, eff. 1-1-19; revised 8-30-18.)

11 Section 99. Effective date. This Act takes effect upon

12 becoming law.