HB4034 97TH GENERAL ASSEMBLY

LRB097 17442 HLH 62644 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4034

Introduced , by Rep. Paul Evans

SYNOPSIS AS INTRODUCED:

35 ILCS 5/223 new

Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2012, and ending on or before December 31, 2016, individual taxpayers who make a purchase of residential real property during the taxable year are entitled to a credit in an amount not to exceed $1,000. Provides that the taxpayer is eligible for the credit if the property is purchased as the taxpayer's principal place of residence and the property is used as the taxpayer's principal place of residence on the last day of the taxable year. Contains provisions allowing the credit to be carried forward. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT 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 223 as follows:

(35 ILCS 5/223 new)

Sec. 223. Home purchase credit. For each taxable year ending on or after December 31, 2012, and ending on or before December 31, 2016, each individual taxpayer who makes a purchase of residential real property during the taxable year is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount not to exceed $1,000 if the property (i) is purchased as the taxpayer's principal place of residence and (ii) is used as the taxpayer's principal place of residence on the last day of that taxable year. The credit may be claimed for only one residence. 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 taxpayer's tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a tax liability.

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