94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0261


 
Introduced 2/3/2005, by Sen. Jacqueline Y. Collins - Miguel del Valle - Ira I. Silverstein - Carole Pankau - Iris Y. Martinez, et al.
 
SYNOPSIS AS INTRODUCED:
 		














35 ILCS 5/212









    Amends the Illinois Income Tax Act. Increases the amount of the earned income tax credit from 5% of the federal credit to: (i) 10% of the federal tax credit for  taxable years beginning on or after January 1,  2005;  (ii) 15%  of the federal tax credit for  taxable years beginning on or after January 1, 2007; and (iii) 20%  of  the  federal  tax credit  for  taxable  years  beginning on or after January 1, 2009. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB0261

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    AN ACT concerning revenue.

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


 
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    Section 5. The Illinois Income Tax Act is amended  by 
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changing Section 212 as follows:
 
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    (35 ILCS 5/212)

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    Sec. 212. Earned income tax credit.


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    (a) With respect to the federal earned income tax credit 
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allowed for the
taxable year under Section 32 of the federal 
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Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer 
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is entitled to a credit against the tax imposed by
subsections 
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(a) and (b) of Section 201 in an amount equal to:

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        (i)
5% of the federal tax credit for each taxable year 
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    beginning on or after
January 1,
2000 and ending on or 
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    before December 31, 2004;
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        (ii) 10% of the federal tax credit for each taxable 
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    year beginning on or after
January 1,
2005 and ending on or 
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    before December 31, 2006;
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        (iii) 15% of the federal tax credit for each taxable 
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    year beginning on or after
January 1,
2007 and ending on or 
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    before December 31, 2008; and
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        (iv) 20% of the federal tax credit for each taxable 
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    year beginning on or after
January 1,
2009 and thereafter.


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    For a non-resident or part-year resident, the amount of the 
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credit under this
Section shall be in proportion to the amount 
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of income attributable to this
State.


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    (b) For taxable years beginning before January 1, 2003, in 
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no event
shall a credit under this Section reduce the 
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taxpayer's
liability to less than zero.  For each taxable year 
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beginning on or after
January 1, 2003, if the amount of the 
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credit exceeds the income tax liability
for the applicable tax 
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year, then the excess credit shall be refunded to the
taxpayer.  
 


 






SB0261
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The amount of a refund shall not be included in the taxpayer's

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income or resources for the purposes of determining eligibility 
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or benefit
level in any means-tested benefit program 
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administered by a governmental entity
unless required by 
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federal law.


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    (b-5) Refunds authorized by subsection (b) are subject to 
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the
availability of funds
from the federal Temporary Assistance 
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for Needy Families Block Grant and the
State's
ability to meet 
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its required Maintenance of Effort.


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    (c) This Section is exempt from the provisions of Section 
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250.


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(Source: P.A. 93-534, eff. 8-18-03; 93-653, eff. 1-8-04.)

 

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