SB3427 99TH GENERAL ASSEMBLY

LRB099 21780 HLH 48478 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3427

Introduced 5/12/2016, by Sen. Laura M. Murphy

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the amount of personal interest paid by an individual taxpayer during the taxable year. Provides that the term "personal interest" means interest paid on personal and consumer loans that is not deductible when calculating the taxpayer's federal adjusted gross income. 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. Personal interest credit.

(a) For taxable years ending on or after December 31, 2017, each individual 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 of personal interest paid by the taxpayer during the taxable year.

(b) For purposes of this Section, "personal interest" means interest paid on personal and consumer loans that is not deductible when calculating the taxpayer's federal adjusted gross income, including, but not limited to, interest on car loans, credit cards, loans for appliances and furniture, and interest on loans made by one person to another person.

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