Public Act 93-0653

SB1935 Enrolled                      LRB093 08833 RCE 09065 b

    AN ACT in relation to taxes.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

                          ARTICLE 1

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    Income Tax Act not be repealed.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it is otherwise repealed.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

    Section  1-5.  The Illinois Income Tax Act is amended  by
re-enacting Section 212 as follows:

    (35 ILCS 5/212)
    Sec. 212.  Earned income tax credit.
    (a)  With respect to the federal earned income tax credit
allowed  for the taxable year under Section 32 of the federal
Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
is  entitled  to  a  credit  against  the  tax   imposed   by
subsections  (a) and (b) of Section 201 in an amount equal to
5% of the federal tax credit for each taxable year  beginning
on or after January 1, 2000.
    For  a  non-resident or part-year resident, the amount of
the credit under this Section shall be in proportion  to  the
amount of income attributable to this State.
    (b)  For  taxable years beginning before January 1, 2003,
in no event shall a credit  under  this  Section  reduce  the
taxpayer's  liability  to  less  than zero.  For each taxable
year beginning on or after January 1, 2003, if the amount  of
the   credit   exceeds  the  income  tax  liability  for  the
applicable tax year, then the excess credit shall be refunded
to the taxpayer.   The  amount  of  a  refund  shall  not  be
included  in  the  taxpayer's  income  or  resources  for the
purposes of determining eligibility or benefit level  in  any
means-tested  benefit  program administered by a governmental
entity unless required by federal law.
    (b-5)  Refunds authorized by subsection (b)  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.
    (c)  This  Section  is  exempt  from  the  provisions  of
Section 250.
(Source: P.A. 93-534, eff. 8-18-03.)

                          ARTICLE 2

    Section  2-1.  The State Finance Act is amended by adding
Section 8.27a as follows:

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

                         ARTICLE 99

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