Bill Text: IL HB2251 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that each taxpayer who (i) was a resident of another State, (ii) first became a resident of Illinois in a taxable year beginning on or after January 1, 2019, (iii) agrees to reside in Illinois for a period of at least 10 consecutive years, and (iv) applies to the Department of Revenue for a new resident income tax credit is entitled to an income tax credit in the amount of $15,000 per year. Provides for recapture if the taxpayer fails to reside in the State for a period of at least 10 consecutive years after being approved for a credit by the Department. Provides that the credit is exempt from the Act's automatic sunset. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2251 Detail]
Download: Illinois-2019-HB2251-Introduced.html
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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 adding | ||||||||||||||||||||||||
5 | Section 229 as follows:
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6 | (35 ILCS 5/229 new) | ||||||||||||||||||||||||
7 | Sec. 229. New resident credit. | ||||||||||||||||||||||||
8 | (a) Each taxpayer who (i) was a resident of another State, | ||||||||||||||||||||||||
9 | (ii) first became a resident of Illinois in a taxable year | ||||||||||||||||||||||||
10 | beginning on or after January 1, 2019, (iii) agrees to reside | ||||||||||||||||||||||||
11 | in Illinois for a period of at least 10 consecutive years, and | ||||||||||||||||||||||||
12 | (iv) applies to the Department for a tax credit under this | ||||||||||||||||||||||||
13 | Section is entitled to a credit against the tax imposed by | ||||||||||||||||||||||||
14 | subsections (a) and (b) of Section 201 in the amount of $15,000 | ||||||||||||||||||||||||
15 | per year. The Department may approve no more than than 50,000 | ||||||||||||||||||||||||
16 | applications under this Section. In the case of spouses filing | ||||||||||||||||||||||||
17 | a joint return, each spouse must separately qualify under this | ||||||||||||||||||||||||
18 | subsection (a), and both spouses together shall be considered a | ||||||||||||||||||||||||
19 | single taxpayer for the purpose of calculating the maximum | ||||||||||||||||||||||||
20 | number of applications under this Section. | ||||||||||||||||||||||||
21 | (b) The tax credit award may not be carried back. If the | ||||||||||||||||||||||||
22 | amount of the credit exceeds the tax liability for the year, | ||||||||||||||||||||||||
23 | the excess may be carried forward and applied to the tax |
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1 | liability of the 5 tax years following the excess credit year. | ||||||
2 | The tax credit award shall be applied to the earliest year for | ||||||
3 | which there is a tax liability. If there are credits from more | ||||||
4 | than one tax year that are available to offset liability, the | ||||||
5 | earlier credit shall be applied first. In no event may a credit | ||||||
6 | under this Section reduce the taxpayer's liability to less than | ||||||
7 | zero. | ||||||
8 | (c) If the taxpayer fails to reside in the State for a | ||||||
9 | period of at least 10 consecutive years after being approved | ||||||
10 | for a credit by the Department under this Section, except in | ||||||
11 | the case of death or disability of the taxpayer, the Department | ||||||
12 | shall seek to recapture from the taxpayer the entire credit | ||||||
13 | amount awarded to the taxpayer prior to the date he or she | ||||||
14 | relocated. | ||||||
15 | (d) This Section is exempt from the provisions of Section | ||||||
16 | 250.
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17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
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