Bill Text: IL HB3544 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for custodians of qualifying pupils for eligible education expenses related to online learning, including computers, printers, internet access, textbooks, tutors, and educational facilitators. Provides for an additional credit if the custodian is also an eligible teacher. Creates an income tax credit for employers of custodians of qualifying pupils for eligible expenditures paid by the employer on behalf of the custodian. Provides that the credit is exempt from the Act's automatic sunset provision. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.

Spectrum: Strong Partisan Bill (Republican 19-1)

Status: (Introduced) 2023-05-11 - Added Co-Sponsor Rep. Dan Swanson [HB3544 Detail]

Download: Illinois-2023-HB3544-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3544 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
5 ILCS 100/5-45.35 new
35 ILCS 5/240 new
Amends the Illinois Income Tax Act. Creates an income tax credit for custodians of qualifying pupils for eligible education expenses related to online learning, including computers, printers, internet access, textbooks, tutors, and educational facilitators. Provides for an additional credit if the custodian is also an eligible teacher. Creates an income tax credit for employers of custodians of qualifying pupils for eligible expenditures paid by the employer on behalf of the custodian. Provides that the credit is exempt from the Act's automatic sunset provision. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.
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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 3. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.35 as follows:
(5 ILCS 100/5-45.35 new)
Sec. 5-45.35. Emergency rulemaking. To provide for the
expeditious and timely implementation of Section 232 of the
Illinois Income Tax Act, emergency rules implementing that
Section may be adopted in accordance with Section 5-45 by the
Department of Revenue. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.
This Section is repealed on January 1, 2028.
Section 5. The Illinois Income Tax Act is amended by
adding Section 240 as follows:
(35 ILCS 5/240 new)
Sec. 240. Remote learning education expense credit.
(a) The COVID-19 pandemic has created challenges for
students and their families in the areas of child care, school
attendance, school access, and the like.

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This Section is intended to (i) assist students and
families who are unable follow their normal school routine as
a consequence of orders of the Department of Public Health
relating to COVID-19, (ii) additionally support classroom
instructors so that they can maximize time and opportunities
for in-person instruction, and (iii) incentivize employers to
accommodate working parents.
Because the nature and types of hardships experienced by
school districts, parents, and students are wide and varied,
the most efficient way to deliver relief that can be tailored
to the particular individuals' needs is through an income tax
credit.
The General Assembly finds that it will be costly and
burdensome to the State of Illinois if parents must choose to
become unemployed due to a lack of accommodation based on the
inability of students to attend school in person.
(b) As used in this Section, the following words shall
have the following meanings unless the context clearly
requires otherwise, and shall be construed expansively in
favor of the taxpayer for expenditures made in good faith
wherever possible:
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
"COVID-19" means the illness caused by the coronavirus
SARS-CoV-2.

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"Educational activities" means any aspect of a qualifying
pupil's education, including, but not limited to classroom
instruction, remote learning and blended remote learning
instruction, special education support, and tutoring and
mentoring.
"Eligible expenditure" means costs by a custodian of a
qualifying pupil or an employer associated with:
(1) the purchase of materials to support online
learning, including but not limited to, a personal
computer with internet access; a router or hotspot;
monthly expenses for internet access; a printer and
supportive accessories (print cartridge, toner); textbooks
and other supplies needed for education, up to a maximum
of $500 for the taxable year; and the costs of educational
activities;
(2) securing, for a qualifying pupil who is under the
age of 15, child care, independent tutoring, an
educational facilitator (whether individually or as part
of a learning pod, provided that the facilitator fee is
distributed pro rata per student), homeschool instruction,
alternative classroom instruction, or specialized services
relating to learning or behavioral issues identified in an
Individualized Education Program and the like, up to a
maximum of $5,000 per taxable year per household or per
child, whichever is less; and
(3) compliance with a mandatory 2-week quarantine

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period associated with COVID-19, whether imposed by an
employer, the State of Illinois, or a county health
department, including the costs of testing, clinical
support, and vaccination (if available), up to $3,000 per
year.
"Eligible expenditure adjustment" means the eligible
expenditure reduced by 25%. The eligible expenditure
adjustment shall apply for any parent or household that had an
adjusted gross income for the taxable year of over $150,000
for an individual and $300,000 for spouses filing a joint
return.
"Eligible teacher" means an individual licensed under
Article 21B of the School Code who is teaching at the school
grade level of kindergarten through grade 12 and is also the
custodian of a qualifying pupil under the age of 14 who cannot
attend school anywhere within the custodian's school district
for in-person instruction on a regular school day.
"Qualifying pupil" means an individual who (i) is a
resident of the State of Illinois, (ii) is under the age of 21
at the close of the school year for which a credit is sought,
and (iii) during the school year for which a credit is sought,
was a full-time pupil enrolled in a kindergarten through grade
12 education program at any school, as defined in this
Section.
"Regular school day" means the calendar days Monday
through Friday, from 8 a.m. to 4 p.m., which occur on the day

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after Labor Day but before Memorial Day, but not any official
government holidays within that time period.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify
for the credit under this Section.
(c) For taxable years beginning on or after January 1,
2023, a taxpayer who is a custodian of a qualifying pupil is
eligible to receive a nonrefundable credit against the taxes
imposed by subsections (a) and (b) of Section 201 in an amount
equal to 100% of the eligible expenditures (as adjusted by the
eligible expenditure adjustment, if applicable), subject to
the maximum allowable credits under this Section. Eligible
teachers are eligible for an additional $75 credit per week,
not to exceed $2,000 per year, if the eligible teacher's
qualifying pupil cannot attend in-person instruction because
of orders involving the Department of Public Health, a county
health department, or the State Board of Education relating to
COVID-19.
The credit under this Section shall not apply to
expenditures incurred after orders preventing in-person
instruction for the qualifying pupil are lifted. No taxpayer
shall be entitled to claim a tax credit under this Section for

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the same eligible expenditures claimed by another taxpayer. If
2 or more custodians claim tax credits for the same qualified
pupil, the total of which exceeds the amounts in this
subsection, then the total amount of the credit allowed shall
be allocated in amounts proportionate to teach eligible
taxpayer's share of the total amount of the eligible
expenditures for the eligible qualifying pupil.
The employer of a custodian of a qualifying pupil is also
entitled to a credit against the taxes imposed by subsections
(a) and (b) of Section 201 in an amount equal to 100% of the
eligible expenditures paid by the employer on behalf of the
custodian of the qualifying pupil, but not to exceed a maximum
in each taxable year of $2,000 for each employee on whose
behalf an expenditure is made, plus 50% of the maximum
unemployment insurance payment that the employer would
otherwise pay to the State under the Unemployment Insurance
Act for that employee.
(d) The Department of Revenue and the State Board of
Education shall jointly adopt rules, including emergency
rules, for the implementation of this Section.
(e) The Department of Revenue shall annually, no later
than November 1, file a report with the Governor and the
General Assembly and publish on the Department of Revenue's
website the total amount of tax credits claimed under this
Section and the total number of taxpayers who received the
credit for the preceding fiscal year.

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(f) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.