INCOME TAX ACT-PREPAID TUITION Senate SponsorsSen. James F. Clayborne, Jr.-Jeffrey M. Schoenberg, Mattie Hunter, Antonio Munoz and Iris Y. Martinez-Barack Obama House Sponsors(Rep. Robert S. Molaro-Robert F. Flider-Kevin A. McCarthy-William Delgado-Patrick Verschoore, Naomi D. Jakobsson, Kevin Joyce, Brandon W. Phelps, Michael K. Smith, Gary Forby and Mary K. O'Brien) 1/11/2005SenateSession Sine Die 35 ILCS 5/203from Ch. 120, par. 2-203110 ILCS 979/55 Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2003, moneys contributed during the taxable year by the taxpayer for the purchase of an Illinois prepaid tuition contract, excluding moneys rolled over from another qualified tuition program account, may be deducted from the taxpayer's federal adjusted gross income in arriving at base income for Illinois income tax purposes. Exempts the deduction from the sunset provisions of the Act. Amends the Illinois Prepaid Tuition Act to include a reference to the deduction. Effective immediately.Senate Floor Amendment No. 1 Deletes reference to:110 ILCS 979/55Adds reference to:110 ILCS 979/55.1 newRemoves the exemption from the sunset requirements of the Act for the deduction and instead provides that the deduction applies to taxable years beginning on or after January 1, 2003 and on or before December 31, 2007. Makes a corresponding change in the Illinois Prepaid Tuition Act.Fiscal Note (Department of Revenue) For calendar year 2002, prepaid contract amounts totaled $84 million. At the 3.0% tax rate, the deduction would have reduced individual income tax liabilities an estimated $2.5 million. The Department cannot estimate how many new contributions will be made or what the amount would total.House Amendment No. 1 Deletes reference to:110 ILCS 979/55.1Adds reference to:15 ILCS 505/16.5110 ILCS 920/9 rep.110 ILCS 979/70 rep.Deletes everything after the enacting clause. Amends the Illinois Income Tax Act. Provides that distributions from qualified tuition programs that are administered by a state that does not permit a sales load exceeding 4% and that exempts from its income tax moneys distributed from a qualified tuition program administered by the State of Illinois are not required to be added to federal adjusted gross income for Illinois income tax purposes (now limited to distributions from the College Savings Pool and the Illinois Prepaid Tuition Trust Fund). Authorizes a deduction of up to $10,000 per taxable year for amounts contributed in the taxable year to a College Savings Pool Account or the Illinois Prepaid Tuition Trust Fund, excluding amounts rolled over into the account (now, unlimited deductions authorized only for contributions to the College Savings Pool, excluding rollovers). Amends the State Treasurer Act, the Baccalaureate Savings Act, and the Illinois Prepaid Tuition Act to remove language providing that (i) contributions to the Bright Start Program; (ii) contributions toward the purchase of the first $25,000 of College Savings Bonds; and (iii) contributions toward the purchase of an Illinois Prepaid Tuition Contract, respectively, shall not be counted against the financial aid awarded by the Illinois Student Assistance Commission, the State, or any agency thereof. Effective immediately, except that the changes related to student financial aid effective January 1, 2004.House Amendment No. 2 In the College Savings Pool provisions of the State Treasurer Act, provides that the State Treasurer may (now, shall) make a percentage of each account available for investment in participating financial institutions doing business in the State. Provides that the State Treasurer may (now, shall) deposit a certain percentage of an account processed at a participating financial institution with that institution. Removes a provisions that the State Treasurer shall adjust each account at least annually to ensure compliance with these in-State investment and prescribed deposit requirements. Provides that the College Savings Pool may not offer a share class with a sales load exceeding 4%. In provisions of the Illinois Income Tax Act that require an addition to federal adjusted gross income, for Illinois Income Tax purposes, of distributions from qualified tuition programs from other states unless the distribution meets certain exceptions, provides that one of those exceptions is that the program does not offer a share class with a sales load exceeding 4% (underlying bill, the state does not permit a sales load exceeding 4%). 2/6/2003SenateFiled with Secretary by Sen. James F. Clayborne, Jr. 2/6/2003SenateFirst Reading 2/6/2003SenateReferred to Rules 2/19/2003SenateAssigned to Revenue 2/26/2003SenateAdded as Chief Co-Sponsor Sen. Jeffrey M. Schoenberg 2/27/2003SenateFiscal Note Requested by Sen. Chris Lauzen 2/27/2003SenateDo Pass Revenue; 008-000-000 2/27/2003SenatePlaced on Calendar Order of 2nd Reading February 28, 2003 2/28/2003SenateAdded as Co-Sponsor Sen. Mattie Hunter 3/5/2003SenateAdded as Co-Sponsor Sen. Antonio Munoz 3/6/2003SenateAdded as Co-Sponsor Sen. Iris Y. Martinez 3/10/2003SenateSenate Floor Amendment No. 1 Filed with Secretary by Sen. James F. Clayborne, Jr. 3/10/2003SenateSenate Floor Amendment No. 1 Referred to Rules 3/13/2003SenateFiscal Note Filed 3/18/2003SenateSenate Floor Amendment No. 1 Rules Refers to Revenue 3/19/2003SenateSenate Floor Amendment No. 1 Be Adopted Revenue; 008-000-000 3/21/2003SenateSecond Reading 3/21/2003SenateSenate Floor Amendment No. 1 Adopted; Clayborne 3/21/2003SenatePlaced on Calendar Order of 3rd Reading March 24, 2003 3/24/2003SenateAdded as Chief Co-Sponsor Sen. Barack Obama 3/24/2003SenateThird Reading - Passed; 055-001-000 3/24/2003HouseArrived in House 3/24/2003HousePlaced on Calendar Order of First Reading 3/25/2003HouseChief House Sponsor Rep. Jack D. Franks 3/25/2003HouseFirst Reading 3/25/2003HouseReferred to Rules Committee 3/31/2003HouseAssigned to Revenue Committee 4/3/2003HouseAdded Alternate Chief Co-Sponsor Rep. Robert F. Flider 4/4/2003HouseAdded Alternate Chief Co-Sponsor Rep. Kevin A. McCarthy 4/14/2003HouseAdded Alternate Chief Co-Sponsor Rep. William Delgado 4/14/2003HouseAdded Alternate Chief Co-Sponsor Rep. Patrick Verschoore 4/14/2003HouseAdded Alternate Co-Sponsor Rep. Naomi D. Jakobsson 4/14/2003HouseAdded Alternate Co-Sponsor Rep. Kevin Joyce 4/14/2003HouseAdded Alternate Co-Sponsor Rep. Brandon W. Phelps 4/14/2003HouseAdded Alternate Co-Sponsor Rep. Michael K. Smith 4/16/2003HouseAdded Alternate Co-Sponsor Rep. Gary Forby 4/16/2003HouseAdded Alternate Co-Sponsor Rep. Mary K. O'Brien 5/1/2003HouseHouse Amendment No. 1 Filed with Clerk by Revenue Committee 5/1/2003HouseHouse Amendment No. 1 Adopted by Voice Vote; Revenue Sub-committee 5/1/2003HouseDo Pass as Amended / Short Debate Revenue Committee; 009-000-000 5/1/2003HousePlaced on Calendar 2nd Reading - Short Debate 5/1/2003HouseAlternate Chief Sponsor Changed to Rep. Robert S. Molaro 5/16/2003HouseCommittee/3rd Reading Deadline Extended-Rule 9(b); May 23, 2003 5/20/2003HouseHouse Amendment No. 2 Filed with Clerk by Rep. Robert S. Molaro 5/20/2003HouseHouse Amendment No. 2 Referred to Rules Committee 5/23/2003HouseThird Reading/Final Action Deadline Extended-9(b) May 31, 2003 5/29/2003HouseSecond Reading - Short Debate 5/29/2003HouseHeld on Calendar Order of Second Reading - Short Debate 5/31/2003HouseHouse Amendment No. 2 Recommends Be Adopted Rules Committee; 005-000-000 5/31/2003HouseHouse Amendment No. 2 Adopted by Voice Vote 5/31/2003HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/31/2003HouseThird Reading - Short Debate - Passed 115-000-001 5/31/2003SenateSecretary's Desk - Concurrence House Amendment(s) 01,02 5/31/2003SenatePlaced on Calendar Order of Concurrence House Amendment(s) 01,02 - May 31, 2003 5/31/2003SenateHouse Amendment No. 1 Motion to Concur Filed with Secretary Sen. James F. Clayborne, Jr. 5/31/2003SenateHouse Amendment No. 1 Motion to Concur Referred to Rules 5/31/2003SenateHouse Amendment No. 2 Motion to Concur Filed with Secretary Sen. James F. Clayborne, Jr. 5/31/2003SenateHouse Amendment No. 2 Motion to Concur Referred to Rules 7/1/2003SenatePursuant to Senate Rule 3-9(b) / Referred to Rules 1/11/2005SenateSession Sine Die