95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1323

 

Introduced 2/20/2007, by Rep. Mary E. Flowers

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/218 new

    Amends the Illinois Income Tax Act. Creates a tax credit for individuals who are assistant state's attorneys, assistant attorneys general, assistant public defenders, assistant public guardians, or civil legal services attorneys. Provides that the amount of the credit is an amount equal to the interest paid on the taxpayer's student loan during that year. Provides that the credit may not reduce the taxpayer's liability to less than zero. Effective immediately.


LRB095 07334 BDD 27475 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1323 LRB095 07334 BDD 27475 b

1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Income Tax Act is amended by adding
5 Section 218 as follows:
 
6     (35 ILCS 5/218 new)
7     Sec. 218. Credit for interest paid on student loans by
8 public attorneys.
9     (a) Purpose. The purpose of this Section is to encourage
10 qualified individuals to enter and continue employment as
11 assistant state's attorneys, assistant attorneys general,
12 assistant public defenders, assistant public guardians, and
13 civil legal services attorneys.
14     (b) Definitions. In this Section:
15         (1) "Assistant state's attorney" means a full-time
16     employee of a state's attorney who:
17             (A) is continually licensed to practice law; and
18             (B) prosecutes or defends cases on behalf of the
19         State or a county.
20         (2) "Assistant attorney general" means a full-time
21     employee of the Illinois Attorney General who:
22             (A) is continually licensed to practice law; and
23             (B) prosecutes or defends cases on behalf of the

 

 

HB1323 - 2 - LRB095 07334 BDD 27475 b

1         State.
2         (3)"Assistant public defender" a means a full-time
3     employee of a public defender who:
4             (A) is continually licensed to practice law; and
5             (B) provides legal representation to indigent
6         persons, as provided by statute.
7         (4) "Assistant public guardian" a means a full-time
8     employee of a public guardian who:
9             (A) is continually licensed to practice law; and
10             (B) provides legal representation pursuant to
11         court appointment.
12         (5) "Civil legal services attorney" means a full-time
13     employee of a qualified civil legal services provider who:
14             (A) is continually licensed to practice law; and
15             (B) provides legal representation to indigent
16         persons.
17         (6) "Qualified civil legal services provider" means a
18     civil legal services provider that:
19             (A) makes financial eligibility determinations
20         before providing civil legal services;
21             (B) has demonstrated its commitment to the
22         provision of high quality civil legal services to
23         clients and has operated for at least 2 years;
24             (C) received and expended cash funds in Illinois in
25         the previous fiscal year in the amount of at least
26         $200,000 for the provision of civil legal services; and

 

 

HB1323 - 3 - LRB095 07334 BDD 27475 b

1             (D) meets all the qualifications set out in Section
2         10 of the Illinois Equal Justice Act.
3         (7) The term "student loan" means:
4             (A) a loan made, insured, or guaranteed under part
5         B of title IV of the Higher Education Act of 1965 (20
6         U.S.C. 1071 et seq.);
7             (B) a loan made under part D or E of title IV of
8         the Higher Education Act of 1965 (20 U.S.C. 1087a et
9         seq. and 1087aa et seq.); or
10             (C) a loan made under section 428C or 455(g) of the
11         Higher Education Act of 1965 (20 U.S.C. 1078-3 and
12         1087e(g)) to the extent that such loan was used to
13         repay a Federal Direct Stafford Loan, a Federal Direct
14         Unsubsidized Stafford Loan, or a loan made under
15         section 428 or 428H of such Act.
16     (c) For each taxable year beginning on or after January 1,
17 2008, each individual taxpayer is entitled to a credit against
18 the tax imposed by subsections (a) and (b) of section 201 of
19 this Act in an amount equal to the interest paid on the
20 taxpayer's student loan during that year, provided the
21 individual:
22         (1) is employed as assistant state's attorney,
23     assistant attorney general, assistant public defender,
24     assistant public guardian or a civil legal services
25     attorneys during the entire taxable year; and
26         (2) is not in default on a loan for which the borrower

 

 

HB1323 - 4 - LRB095 07334 BDD 27475 b

1     seeks forgiveness.
2     (d) In no event shall a credit under this Section reduce
3 the taxpayer's liability to less than zero.
4     (e) If, in any taxable year, pursuant to a federal law
5 enacted on or after February 1, 2007, a taxpayer receives
6 assistance from the federal government in retiring the student
7 loan, the amount of the tax credit for that year shall be
8 reduced by the amount of the federal assistance received in
9 that year.
 
10     Section 99. Effective date. This Act takes effect upon
11 becoming law.