Bill Text: IL SB1836 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for individual taxpayers who rent a dwelling in Illinois for use as their principal place of residence. Provides that the credit shall be equal to 5% of the documented rental costs paid by such taxpayer during the taxable year on that dwelling. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-03-10 - Rule 3-9(a) / Re-referred to Assignments [SB1836 Detail]

Download: Illinois-2023-SB1836-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1836 Introduced 2/9/2023, by Sen. Elgie R. Sims, Jr. SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
Amends the Illinois Income Tax Act. Creates an income tax credit for individual taxpayers who rent a dwelling in Illinois for use as their principal place of residence. Provides that the credit shall be equal to 5% of the documented rental costs paid by such taxpayer during the taxable year on that dwelling. 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
adding Section 234 as follows:
(35 ILCS 5/234 new)
Sec. 234. Tax credit for residential rental payments.
(a) Beginning with tax years ending on or after December
31, 2023, every individual taxpayer who rents a dwelling in
Illinois for use as the individual's principal place of
residence shall be entitled to a tax credit equal to 5% of the
documented rental costs paid by the taxpayer during the
taxable year on that dwelling.
(b) To qualify for the credit under this Section, the
taxpayer must meet the following requirements for the tax year
in which the taxpayer is claiming the credit provided by this
Section:
(1) the taxpayer must have resided in Illinois for at
least 183 days;
(2) the taxpayer's federal adjusted gross income must
not exceed 200% of the poverty guidelines updated
periodically in the Federal Register by the United States
Department of Health and Human Services under the

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authority of 42 U.S.C. 9902(2);
(3) the total rental payments on the taxpayer's
principal place of residence during the taxable year must
exceed 30% of the taxpayer's federal adjusted gross
income; and
(4) the taxpayer must not be claimed as a dependent on
someone else's tax return.
(c) The credit provided by this Section does not apply to
an individual who rents a dwelling that is exempt from
Illinois property taxes.
(d) The Department may establish by rule:
(1) a maximum dollar amount of the credit, which may
vary by regions of the State, based on fair market rents
determined by the U.S. Department of Housing and Urban
Development for purposes of the housing choice voucher
program;
(2) the requirements by which the taxpayer shall
document rental payments; and
(3) any schedules for forms necessary to meet the
requirements of this Section.
(e) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. 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.
(f) This Section is exempt from the provisions of Section

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250.
Section 99. Effective date. This Act takes effect upon
becoming law.