Bill Text: IL HB3407 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that a taxpayer who has incurred at least $20,000 in undergraduate student loan debt and has at least $5,000 in outstanding undergraduate student loan debt at the time of the application is entitled to a credit as awarded by the Department of Revenue. Provides that Department of Revenue that the amount of the credit shall not exceed $ 5,000 per taxpayer. Provides that the total amount of credits approved by the Department of Revenue under the provisions of the amendatory Act may not exceed $5,000,000 in any taxable year. Contains recapture provisions. Effective immediately.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2019-08-07 - Added Co-Sponsor Rep. Lindsey LaPointe [HB3407 Detail]
Download: Illinois-2019-HB3407-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. Student loan payments. | ||||||||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, | ||||||||||||||||||||||||
9 | 2019, a qualified taxpayer is entitled to a credit against the | ||||||||||||||||||||||||
10 | tax imposed by subsections (a) and (b) of Section 201 for the | ||||||||||||||||||||||||
11 | taxable year in which the Department certifies a tax credit | ||||||||||||||||||||||||
12 | under this Section. | ||||||||||||||||||||||||
13 | (b) By September 15 of each year, a qualified taxpayer | ||||||||||||||||||||||||
14 | shall submit an application to the Department for the credit | ||||||||||||||||||||||||
15 | allowed under this Section. The taxpayer shall submit with the | ||||||||||||||||||||||||
16 | application an assurance that the he or she will use any credit | ||||||||||||||||||||||||
17 | approved under this Section for the repayment of his or her | ||||||||||||||||||||||||
18 | undergraduate student loan debt as soon as practicable. By | ||||||||||||||||||||||||
19 | December 15 of each year, the Department shall certify to the | ||||||||||||||||||||||||
20 | individual the amount of any tax credit approved under this | ||||||||||||||||||||||||
21 | Section, not to exceed $ 5,000. For any taxable year, the total | ||||||||||||||||||||||||
22 | amount of credits approved by the Department under this Section | ||||||||||||||||||||||||
23 | may not exceed $5,000,000. |
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1 | The total amount of the credit claimed under this Section | ||||||
2 | shall be recaptured if the individual does not use the credit | ||||||
3 | amount for the repayment of the individual's undergraduate | ||||||
4 | student loan debt within 2 years from the close of the taxable | ||||||
5 | year for which the credit is claimed. If the amount is | ||||||
6 | recaptured, the individual who claimed the credit shall pay the | ||||||
7 | total amount of the credit claimed as taxes payable to the | ||||||
8 | State for the taxable year in which the event requiring | ||||||
9 | recapture of the credit occurs. | ||||||
10 | The Department shall prioritize tax credit recipients and | ||||||
11 | amounts based on qualified taxpayers who: | ||||||
12 | (1) have higher debt burden to income ratios; | ||||||
13 | (2) graduated from a public university located in the | ||||||
14 | State; | ||||||
15 | (3) did not receive a tax credit in a prior year; or | ||||||
16 | (4) were eligible for in-State tuition. | ||||||
17 | (c) In no event shall a credit under this Section reduce | ||||||
18 | the taxpayer's liability to less than zero. If the amount of | ||||||
19 | the credit exceeds the tax liability for the year, the excess | ||||||
20 | may be carried forward and applied to the tax liability of the | ||||||
21 | 5 taxable years following the excess credit year. The tax | ||||||
22 | credit shall be applied to the earliest year for which there is | ||||||
23 | a tax liability. If there are credits for more than one year | ||||||
24 | that are available to offset a liability, the earlier credit | ||||||
25 | shall be applied first. | ||||||
26 | (e) As used in this Section "qualified taxpayer" means a |
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1 | taxpayer who: | ||||||
2 | (1) has incurred at least $20,000 in undergraduate | ||||||
3 | student loan debt; and | ||||||
4 | (2) has at least $5,000 in outstanding undergraduate | ||||||
5 | student loan debt when submitting an application under | ||||||
6 | subsection (b) of this Section. | ||||||
7 | (f) This Section is exempt from the provisions of Section | ||||||
8 | 250.
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9 | Section 99. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
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