Bill Text: IL HB4405 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2024, the credit for residential real property taxes is (i) 75% of the real property taxes paid by the taxpayer if the taxpayer is younger than 51 years of age on the last day of the tax year and (ii) 50% of the real property taxes paid by the taxpayer if the taxpayer is 51 years of age or older on the last day of the tax year. Provides that the credit is permanent. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB4405 Detail]

Download: Illinois-2023-HB4405-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4405 Introduced , by Rep. Chris Miller SYNOPSIS AS INTRODUCED:
35 ILCS 5/208 from Ch. 120, par. 2-208
Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2024, the credit for residential real property taxes is (i) 75% of the real property taxes paid by the taxpayer if the taxpayer is younger than 51 years of age on the last day of the tax year and (ii) 50% of the real property taxes paid by the taxpayer if the taxpayer is 51 years of age or older on the last day of the tax year. Provides that the credit is permanent. Effective immediately.
LRB103 36116 HLH 66207 b
A BILL FOR
HB4405 LRB103 36116 HLH 66207 b
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
changing Section 208 as follows:
(35 ILCS 5/208) (from Ch. 120, par. 2-208)
Sec. 208. Tax credit for residential real property taxes.
(a) Beginning with tax years ending on or after December
31, 1991, every individual taxpayer shall be entitled to a tax
credit equal to the creditable percentage 5% of real property
taxes paid by such taxpayer during the taxable year on the
principal residence of the taxpayer. In the case of multi-unit
or multi-use structures and farm dwellings, the taxes on the
taxpayer's principal residence shall be that portion of the
total taxes which is attributable to such principal residence.
Notwithstanding any other provision of law, for taxable years
beginning on or after January 1, 2017 and ending prior to
December 31, 2024, no taxpayer may claim a credit under this
Section if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return, or (ii) $250,000, in the
case of all other taxpayers.
(b) As used in this Section:

HB4405 - 2 - LRB103 36116 HLH 66207 b
"Creditable percentage" means:
(1) 5% for tax years ending prior to December 31,
2024; and
(2) for tax years ending on or after December 31,
2024:
(A) 75% if the taxpayer is younger than 51 years of
age on the last day of the tax year; and
(B) 50% if the taxpayer is 51 years of age or older
on the last day of the tax year.
If the taxpayer is married filing a joint return, then the
creditable percentage under item (2) shall be based on the age
of the oldest spouse.
(c) For tax years ending on or after December 31, 2025, the
credit under this Section may be taken for only one residence
per taxpayer. If the taxpayer is married filing a joint
return, then the spouses may take a credit for only one
residence jointly.
(d) This Section is exempt from the provisions of Section
250.
(Source: P.A. 101-8, see Section 99 for effective date;
102-558, eff. 8-20-21.)