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
 


SB0210LRB103 26390 HLH 52753 b



1 AN ACT concerning revenue.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Income Tax Act is amended by 
5adding Section 234 as follows:

6 (35 ILCS 5/234 new)
7 Sec. 234. College tuition expense credit.
8 (a) For taxable years ending on or after December 31, 
92023, a taxpayer who may claim one or more qualifying students 
10as a dependent shall be allowed a credit up to $2,000 against 
11the tax imposed by subsections (a) and (b) of this Section for 
12qualified tuition and fee expenses paid by the taxpayer during 
13the taxable year on behalf of the qualifying student or 
14students.
15 (b) In no event shall a credit under this Section reduce a 
16taxpayer's liability to less than zero. If the amount of 
17credit exceeds the tax liability for the year, the excess may 
18be carried and applied to the tax liability for the 5 taxable 
19years following the excess credit year. The tax credit shall 
20be applied to the earliest year for which there is a tax 
21liability. If there are credits for more than one year that are 
22available to offset liability, the earlier credit shall be 
23applied first.
 
 
SB0210- 2 -LRB103 26390 HLH 52753 b


1 (c) For the purpose of this Section:
2 "Qualifying college or university" means any public or 
3private university, community college, vocational school, or 
4other postsecondary educational institution that is physically 
5located in the State and is eligible to participate in a 
6student loan program administered by the United States 
7Department of Education. 
8 "Qualifying student" means an individual who (i) is a 
9resident of the State, (ii) is under the age of 24 at the close 
10of the school year for which a credit is sought, and (iii) 
11during the school year for which a credit is sought, is a 
12full-time student enrolled in a program at a qualifying 
13college or university at which the student is enrolled. 
14 "Qualified tuition and fee expense" means the amount 
15incurred by on behalf of a qualifying student for tuition, 
16book fees, and lab fees at the qualifying college of 
17university at which the student is enrolled.
18 (d) Notwithstanding any other provision of law, no 
19taxpayer may claim a credit under this Section if the 
20taxpayer's adjusted gross income for the taxable year exceeds 
21(i) $250,000, in the case of spouses filing a joint federal tax 
22return or (ii) $125,000, in the case of all other taxpayers.
23 (e) This Section is exempt from the provisions of Section 
24250. 


25 Section 99. Effective date. This Act takes effect upon 
26becoming law.