Bill Text: IL SB1554 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides a tax credit to each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor due to tornadoes or flooding in 2011, 2013, 2015, 2017, or 2018. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Failed) 2021-01-13 - Session Sine Die [SB1554 Detail]

Download: Illinois-2019-SB1554-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB1554 Introduced 2/15/2019, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED:
35 ILCS 5/226
Amends the Illinois Income Tax Act. Provides a tax credit to each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor due to tornadoes or flooding in 2011, 2013, 2015, 2017, or 2018. Effective immediately.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT 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 226 as follows:
(35 ILCS 5/226)
Sec. 226. Natural disaster credit.
(a) For taxable years that begin on or after January 1,
2017 and begin prior to January 1, 2019, each taxpayer who owns
qualified real property located in a county in Illinois that
was declared a State disaster area by the Governor due to
flooding in 2017 or 2018 is entitled to a credit against the
taxes imposed by subsections (a) and (b) of Section 201 of this
Act in an amount equal to the lesser of $750 or the deduction
allowed (whether or not the taxpayer determines taxable income
under subsection (b) of Section 63 of the Internal Revenue
Code) with respect to the qualified property under Section 165
of the Internal Revenue Code, determined without regard to the
limitations imposed under subsection (h) of that Section.
For taxable years that begin on or after January 1, 2019
and begin prior to January 1, 2020, each taxpayer who owns
qualified real property located in a county in Illinois that
was declared a State disaster area by the Governor due to

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tornadoes or flooding in 2011, 2013, 2015, 2017, or 2018 is
entitled to a credit against the taxes imposed by subsections
(a) and (b) of Section 201 of this Act in an amount equal to the
lesser of $750 or the deduction allowed (whether or not the
taxpayer determines taxable income under subsection (b) of
Section 63 of the Internal Revenue Code) with respect to the
qualified property under Section 165 of the Internal Revenue
Code, determined without regard to the limitations imposed
under subsection (h) of that Section.
The township assessor or, if the township assessor is
unable, the chief county assessment officer of the county in
which the property is located, shall issue a certificate to the
taxpayer identifying the taxpayer's property as damaged as a
result of the natural disaster. The certificate shall include
the name and address of the property owner, as well as the
property index number or permanent index number (PIN) of the
damaged property. The taxpayer shall attach a copy of such
certificate to the taxpayer's return for the taxable year for
which the credit is allowed.
(b) In no event shall a credit under this Section reduce a
taxpayer's liability to less than zero. If the amount of credit
exceeds the tax liability for the year, the excess may be
carried forward and applied to the tax liability for 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

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available to offset liability, the earlier credit shall be
applied first.
(c) If the taxpayer is a partnership or Subchapter S
corporation, the credit shall be allowed to the partners or
shareholders 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.
(d) A taxpayer is not entitled to the credit under this
Section if the taxpayer receives a Natural Disaster Homestead
Exemption under Section 15-173 of the Property Tax Code with
respect to the qualified real property as a result of the
natural disaster.
(e) The township assessor or, if the township assessor is
unable to certify, the chief county assessment officer of the
county in which the property is located, shall certify to the
Department a listing of the properties located within the
county that have been damaged as a result of the natural
disaster (including the name and address of the property owner
and the property index number or permanent index number (PIN)
of each damage property).
(f) As used in this Section:
(1) "Qualified real property" means real property that
is: (i) the taxpayer's principal residence or owned by a
small business; (ii) damaged during the taxable year as a
result of a disaster; and (iii) not used in a rental or
leasing business.

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(2) "Small business" has the meaning given to that term
in Section 1-75 of the Illinois Administrative Procedure
Act.
(g) Nothing in this Act prohibits the disclosure of
information by officials of a county or municipality involving
reports of damaged property or the owners of damaged property
if that disclosure is made to a township or county assessment
official in connection with a credit obtained or sought under
this Section.
(Source: P.A. 100-555, eff. 11-16-17; 100-587, eff. 6-4-18;
100-731, eff. 1-1-19; revised 8-30-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.