Bill Text: IL SB1562 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Increases the percentage of the earned income tax credit from 5% of the federal tax credit to 7.5% in 2009 and 10% in 2010 and thereafter. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 13-4)

Status: (Introduced - Dead) 2009-04-03 - Rule 3-9(a) / Re-referred to Assignments [SB1562 Detail]

Download: Illinois-2009-SB1562-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB1562 Introduced 2/19/2009, by Sen. Jacqueline Y. Collins - Don Harmon - Carole Pankau - William Delgado - John J. Millner SYNOPSIS AS INTRODUCED:
35 ILCS 5/212
Amends the Illinois Income Tax Act. Increases the percentage of the earned income tax credit from 5% of the federal tax credit to 7.5% in 2009 and 10% in 2010 and thereafter. 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 212 as follows:
(35 ILCS 5/212)
Sec. 212. Earned income tax credit.
(a) With respect to the federal earned income tax credit
allowed for the taxable year under Section 32 of the federal
Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
is entitled to a credit against the tax imposed by subsections
(a) and (b) of Section 201 in an amount equal to the following:
(1) for each taxable year beginning on or after January
1, 2000 and ending before or during calendar year 2008, the
amount of the credit is 5% of the federal tax credit;
(2) for each taxable year ending during calendar year
2009, the amount of the credit is 7.5% of the federal tax
credit; and
(3) for each taxable year ending during calendar year
2010 and thereafter, the amount of the credit is 10% of the
federal tax credit. 5% of the federal tax credit for each
taxable year beginning on or after January 1, 2000.
For a non-resident or part-year resident, the amount of the

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credit under this Section shall be in proportion to the amount
of income attributable to this State.
(b) For taxable years beginning before January 1, 2003, in
no event shall a credit under this Section reduce the
taxpayer's liability to less than zero. For each taxable year
beginning on or after January 1, 2003, if the amount of the
credit exceeds the income tax liability for the applicable tax
year, then the excess credit shall be refunded to the taxpayer.
The amount of a refund shall not be included in the taxpayer's
income or resources for the purposes of determining eligibility
or benefit level in any means-tested benefit program
administered by a governmental entity unless required by
federal law.
(c) This Section is exempt from the provisions of Section
250.
(Source: P.A. 95-333, eff. 8-21-07.)
Section 99. Effective date. This Act takes effect upon
becoming law.