Synopsis As Introduced Amends the Illinois Income Tax Act. Removes language that terminates the earned income tax credit with taxable years ending on or before December 31, 2002. Exempts the credit from the sunset requirements. Effective immediately.
Fiscal Note (Department of Revenue)
Eliminates the repeal date for the earned income tax credit. This would extend the earned income tax credit indefinitely. Senate Bill 4 would have a negligible impact on the Department of Revenue. However, this credit represents a loss of tax revenues to the State of Illinois. For tax year 2001, the earned income tax credit totaled approximately $44 million.
House Floor Amendment No. 1 Beginning in 2003, requires the excess credit to be refunded to the taxpayer, but not counted in determining eligibility for means-tested benefits. Provides that refunds authorized by this amendatory Act are subject to the availability of funds from the federal Temporary Assistance for Needy Families Block Grant and the State's ability to meet its required Maintenance of Effort.
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