Bill Text: IL SB1245 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2024). Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-02-02 - Referred to Assignments [SB1245 Detail]

Download: Illinois-2023-SB1245-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1245 Introduced 2/2/2023, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
35 ILCS 5/224
35 ILCS 40/65
Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2024). 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
changing Section 224 as follows:
(35 ILCS 5/224)
Sec. 224. Invest in Kids credit.
(a) For taxable years beginning on or after January 1,
2018 and ending before January 1, 2024, each taxpayer for whom
a tax credit has been awarded by the Department under the
Invest in Kids Act is entitled to a credit against the tax
imposed under subsections (a) and (b) of Section 201 of this
Act in an amount equal to the amount awarded under the Invest
in Kids Act.
(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, the credit under this
Section shall be determined in accordance with the
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 and may not reduce

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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
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 the liability, the earlier credit
shall be applied first.
(d) A tax credit awarded by the Department under the
Invest in Kids Act may not be claimed for any qualified
contribution for which the taxpayer claims a federal income
tax deduction.
(e) This Section is exempt from the provisions of Section
250.
(Source: P.A. 102-699, eff. 4-19-22.)
Section 10. The Invest in Kids Act is amended by changing
Section 65 as follows:
(35 ILCS 40/65)
(Section scheduled to be repealed on January 1, 2025)
Sec. 65. Credit period; repeal.
(a) A taxpayer may take a credit under this Act for tax
years beginning on or after January 1, 2018 and ending before
January 1, 2024. A taxpayer may not take a credit pursuant to
this Act for tax years beginning on or after January 1, 2024.

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(b) This Act is exempt from the provisions of Section 250
of the Illinois Income Tax Act repealed on January 1, 2025.
(Source: P.A. 102-16, eff. 6-17-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.