Bill Text: IL HB5385 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that the credit for student-assistance contributions sunsets on December 31, 2030 (currently, December 30, 2020). Effective immediately.

Spectrum: Slight Partisan Bill (Republican 6-2)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5385 Detail]

Download: Illinois-2019-HB5385-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5385 Introduced , by Rep. Norine K. Hammond - Terri Bryant - Avery Bourne - Grant Wehrli - Patrick Windhorst, et al. SYNOPSIS AS INTRODUCED:
35 ILCS 5/218
Amends the Illinois Income Tax Act. Provides that the credit for student-assistance contributions sunsets on December 31, 2030 (currently, December 30, 2020). 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
changing Section 218 as follows:
(35 ILCS 5/218)
Sec. 218. Credit for student-assistance contributions.
(a) For taxable years ending on or after December 31, 2009
and on or before December 31, 2030 December 30, 2020, each
taxpayer who, during the taxable year, makes a contribution (i)
to a specified individual College Savings Pool Account under
Section 16.5 of the State Treasurer Act or (ii) to the Illinois
Prepaid Tuition Trust Fund in an amount matching a contribution
made in the same taxable year by an employee of the taxpayer to
that Account or Fund is entitled to a credit against the tax
imposed under subsections (a) and (b) of Section 201 in an
amount equal to 25% of that matching contribution, but not to
exceed $500 per contributing employee per taxable year.
(b) For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there is allowed a credit
under this Section to be determined in accordance with the

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determination of income and distributive share of income under
Sections 702 and 704 and Subchapter S of the Internal Revenue
Code.
(c) The credit may not be carried back. 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
5 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) A taxpayer claiming the credit under this Section must
maintain and record any information that the Illinois Student
Assistance Commission, the Office of the State Treasurer, or
the Department may require regarding the matching contribution
for which the credit is claimed.
(Source: P.A. 96-198, eff. 8-10-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.