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| | SB0071 Engrossed | | LRB101 05523 HLH 50538 b |
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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Income Tax Act is amended by |
5 | | changing Section 226 as follows:
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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, 2019 |
21 | | and begin prior to January 1, 2020, 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.
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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.)
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11 | | Section 99. Effective date. This Act takes effect upon |
12 | | becoming law.
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