Bill Text: IL HB4578 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who have an approved NFPA 13D residential fire sprinkler system installed in a new or existing residential dwelling in the State during the taxable year. Provides that the credit shall be in an amount equal to 50% of the total cost of the installation but not to exceed $10,000 per taxpayer in any taxable year. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-05-08 - Added Chief Co-Sponsor Rep. Martin McLaughlin [HB4578 Detail]

Download: Illinois-2023-HB4578-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4578 Introduced , by Rep. Michael J. Kelly SYNOPSIS AS INTRODUCED:
35 ILCS 5/235 new
Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who have an approved NFPA 13D residential fire sprinkler system installed in a new or existing residential dwelling in the State during the taxable year. Provides that the credit shall be in an amount equal to 50% of the total cost of the installation but not to exceed $10,000 per taxpayer in any taxable year. Provides that the credit is exempt from the Act's automatic sunset provisions. 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 5. The Illinois Income Tax Act is amended by
adding Section 235 as follows:
(35 ILCS 5/235 new)
Sec. 235. Residential fire sprinkler installation credit.
(a) For taxable years ending on or after December 31,
2023, each taxpayer who has an approved NFPA 13D residential
fire sprinkler system installed by a licensed fire sprinkler
contractor in a new or existing residential dwelling in the
State during the taxable year is entitled to a credit against
the taxes imposed by subsections (a) and (b) of Section 201 in
an amount equal to 50% of the total cost of the installation
but not to exceed $10,000 per taxpayer in any taxable year.
(b) The taxpayer shall provide to the Department a copy of
the final invoice showing the total cost of the installation
of the fire sprinkler system. The invoice shall include the
following:
(1) the water main tap fee, if required;
(2) fees and costs for combined sprinkler and domestic
water service;
(3) costs associated with installing, modifying, or

HB4578 - 2 - LRB103 35465 HLH 65534 b
upgrading piping and valves; and
(4) all other installation and testing fees.
(c) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the 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
five taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(d) As used in this Section, "approved NFPA 13D
residential fire sprinkler system" means a residential fire
sprinkler system that meets the requirements of NFPA 13D
standards established by the National Fire Protection
Association for one-family and 2-family residential dwellings.
(e) This Section is exempt from the provisions of Section
250.