093_SB1935ham002











                                     LRB093 08833 SJM 19861 a

 1                    AMENDMENT TO SENATE BILL 1935

 2        AMENDMENT NO.     .  Amend Senate Bill 1935 by  replacing
 3    everything after the enacting clause with the following:

 4                             "ARTICLE 1

 5        Section  1-1.  Earned  income  tax  credit; continuation;
 6    validation.
 7        (a)  The General Assembly finds and declares:
 8             (1)  Section 212 of  the  Illinois  Income  Tax  Act
 9        provided for its repeal on June 1, 2003.
10             (2)  Senate  Bill  4  of  the 93rd General Assembly,
11        among other things, deleted the language of  Section  212
12        repealing  that  Section  on  June 1, 2003. Senate Bill 4
13        passed both houses of the General  Assembly  on  May  31,
14        2003.  Senate  Bill  4  was  approved  by the Governor on
15        August 18, 2003 and took effect on that  date  as  Public
16        Act  93-534. It was the intention of the General Assembly
17        in passing Senate Bill 4 that Section 212 of the Illinois
18        Income Tax Act not be repealed.
19             (3)  The Statute  on  Statutes  sets  forth  general
20        rules  on  the  repeal of statutes, but Section 1 of that
21        Act also states that these rules  will  not  be  observed
22        when  the result would be "inconsistent with the manifest
 
                            -2-      LRB093 08833 SJM 19861 a
 1        intent of  the  General  Assembly  or  repugnant  to  the
 2        context of the statute".
 3             (4)  The  actions  of  the  General Assembly clearly
 4        manifest the intention of the  General  Assembly  not  to
 5        repeal  Section  212  of the Illinois Income Tax Act. Any
 6        construction of Public Act 93-534  that  results  in  the
 7        repeal  of  Section 212 of the Illinois Income Tax Act on
 8        June 1, 2003 would  be  inconsistent  with  the  manifest
 9        intent of the General Assembly.
10        (b)  It is hereby declared to have been the intent of the
11    General Assembly, in enacting Public Act 93-534, that Section
12    212 of the Illinois Income Tax Act be changed to, among other
13    things,  eliminate  its  repeal and that it not be subject to
14    repeal on June 1, 2003.
15        (c)  Section 212 of the Illinois Income Tax Act is deemed
16    to  have  been  in  continuous  effect  since  its   original
17    effective  date,  and it shall continue to be in effect until
18    it is otherwise repealed.
19        (d)  All otherwise lawful actions taken in reliance on or
20    pursuant to Section 212 of the Illinois Income Tax Act before
21    the effective date of this amendatory Act of the 93rd General
22    Assembly by any officer or agency of State government or  any
23    other person or entity are validated.
24        (e)  To  ensure  the  continuing effectiveness of Section
25    212 of the Illinois Income Tax Act, it is set forth  in  full
26    and  re-enacted by this Act. This re-enactment is intended as
27    a continuation of Section 212 of the Illinois Income Tax Act.
28        (f)  This  Article  applies  to  all   claims,   actions,
29    proceedings,  and  returns pending on or filed on, before, or
30    after the effective date of this Act.

31        Section  1-5.  The Illinois Income Tax Act is amended  by
32    re-enacting Section 212 as follows:
 
                            -3-      LRB093 08833 SJM 19861 a
 1        (35 ILCS 5/212)
 2        Sec. 212.  Earned income tax credit.
 3        (a)  With respect to the federal earned income tax credit
 4    allowed  for the taxable year under Section 32 of the federal
 5    Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
 6    is  entitled  to  a  credit  against  the  tax   imposed   by
 7    subsections  (a) and (b) of Section 201 in an amount equal to
 8    5% of the federal tax credit for each taxable year  beginning
 9    on or after January 1, 2000.
10        For  a  non-resident or part-year resident, the amount of
11    the credit under this Section shall be in proportion  to  the
12    amount of income attributable to this State.
13        (b)  For  taxable years beginning before January 1, 2003,
14    in no event shall a credit  under  this  Section  reduce  the
15    taxpayer's  liability  to  less  than zero.  For each taxable
16    year beginning on or after January 1, 2003, if the amount  of
17    the   credit   exceeds  the  income  tax  liability  for  the
18    applicable tax year, then the excess credit shall be refunded
19    to the taxpayer.   The  amount  of  a  refund  shall  not  be
20    included  in  the  taxpayer's  income  or  resources  for the
21    purposes of determining eligibility or benefit level  in  any
22    means-tested  benefit  program administered by a governmental
23    entity unless required by federal law.
24        (b-5)  Refunds authorized by subsection (b)  are  subject
25    to  the  availability  of  funds  from  the federal Temporary
26    Assistance for Needy Families Block  Grant  and  the  State's
27    ability to meet its required Maintenance of Effort.
28        (c)  This  Section  is  exempt  from  the  provisions  of
29    Section 250.
30    (Source: P.A. 93-534, eff. 8-18-03.)

31                              ARTICLE 2

32        Section  2-1.  The State Finance Act is amended by adding
 
                            -4-      LRB093 08833 SJM 19861 a
 1    Section 8.27a as follows:

 2        (30 ILCS 105/8.27a new)
 3        Sec. 8.27a. TANF funds; earned income tax credit.   Funds
 4    from  the  federal  Temporary  Assistance  for Needy Families
 5    block grant under Title IV-A of the federal  Social  Security
 6    Act  designated  by the Illinois Department of Human Services
 7    as  reimbursement  for  expenditures  made  by  the  Illinois
 8    Department of Revenue  for  the  refundable  portion  of  the
 9    earned  income  tax credit shall be deposited into the Income
10    Tax Refund Fund.  Such deposits shall be made  as  needed  on
11    approximately the fifteenth calendar day of each month.

12                             ARTICLE 99

13        Section  99-99.   Effective  date.  This Act takes effect
14    upon becoming law.".