HB4485 98TH GENERAL ASSEMBLY

LRB098 15250 HLH 50258 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4485

Introduced , by Rep. Katherine Cloonen

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Creates a credit equal to any unreimbursed amounts paid by the taxpayer during the taxable year for the purposes of (i) rebuilding or restoring a residential, industrial, or commercial structure located in the State that was damaged as a result of a natural disaster or (ii) engaging in other cleanup efforts related to a natural disaster occurring in the State. Provides that a taxpayer is not entitled to a credit if the natural disaster occurred more than 2 years prior to the taxable year for which the credit is claimed. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Natural disaster credit.

(a) For tax years ending on or after December 31, 2014, each taxpayer is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act in an amount equal to the amount paid by the taxpayer during the taxable year for the purposes of (i) rebuilding or restoring a residential, industrial, or commercial structure located in the State that was damaged as a result of a natural disaster or (ii) engaging in other cleanup efforts related to a natural disaster occurring in the State, including, but not limited, to debris removal.

(b) Except as provided in subsection (c) with respect to credit amounts that are carried forward, a taxpayer is not entitled to a credit under this Section if the natural disaster occurred more than 2 years prior to the taxable year for which the credit is claimed. A taxpayer is not entitled to a credit under this Section if the costs incurred are eligible for reimbursement by a third party.

(c) 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 tax liability for the year, the excess may refunded to the taxpayer, or it may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year, at the election of the taxpayer. If the excess credit amounts are carried forward, then those amounts 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 available to offset a liability, the earlier credit shall be applied first.

(d) For the purposes of this Section, "natural disaster" means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, storm, or extended period of severe inclement weather. A proclamation of disaster by the President of the United States or Governor of the State of Illinois is not a prerequisite to the classification of an occurrence as a natural disaster under this Section.

(e) This Section is exempt from the provisions of Section 250.

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