Bill Text: IL SB0210 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that a taxpayer who may claim a qualifying student as a dependent is allowed a credit of up to $2,000 for qualified tuition and fee expenses paid by the taxpayer. Provides that the term qualifying student means a person who (i) is a resident of the State, (ii) is under the age of 24 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, is a full-time student enrolled in a program at a qualifying college or university. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB0210 Detail]

Download: Illinois-2023-SB0210-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0210 Introduced 1/31/2023, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
Amends the Illinois Income Tax Act. Provides that a taxpayer who may claim a qualifying student as a dependent is allowed a credit of up to $2,000 for qualified tuition and fee expenses paid by the taxpayer. Provides that the term qualifying student means a person who (i) is a resident of the State, (ii) is under the age of 24 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, is a full-time student enrolled in a program at a qualifying college or university. Effective immediately.
LRB103 26390 HLH 52753 b
A BILL FOR
SB0210 LRB103 26390 HLH 52753 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
adding Section 234 as follows:
(35 ILCS 5/234 new)
Sec. 234. College tuition expense credit.
(a) For taxable years ending on or after December 31,
2023, a taxpayer who may claim one or more qualifying students
as a dependent shall be allowed a credit up to $2,000 against
the tax imposed by subsections (a) and (b) of this Section for
qualified tuition and fee expenses paid by the taxpayer during
the taxable year on behalf of the qualifying student or
students.
(b) In no event shall a credit under this Section reduce a
taxpayer's liability to less than zero. If the amount of
credit exceeds the tax liability for the year, the excess may
be carried and applied to the tax liability for 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 liability, the earlier credit shall be
applied first.

SB0210 - 2 - LRB103 26390 HLH 52753 b
(c) For the purpose of this Section:
"Qualifying college or university" means any public or
private university, community college, vocational school, or
other postsecondary educational institution that is physically
located in the State and is eligible to participate in a
student loan program administered by the United States
Department of Education.
"Qualifying student" means an individual who (i) is a
resident of the State, (ii) is under the age of 24 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, is a
full-time student enrolled in a program at a qualifying
college or university at which the student is enrolled.
"Qualified tuition and fee expense" means the amount
incurred by on behalf of a qualifying student for tuition,
book fees, and lab fees at the qualifying college of
university at which the student is enrolled.
(d) Notwithstanding any other provision of law, no
taxpayer may claim a credit under this Section if the
taxpayer's adjusted gross income for the taxable year exceeds
(i) $250,000, in the case of spouses filing a joint federal tax
return or (ii) $125,000, in the case of all other taxpayers.
(e) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.