101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2128

 

Introduced , by Rep. John C. D'Amico

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who replace a lead water service pipe with a copper water service pipe at a qualified residence. Provides that the credit shall be equal to the lesser of (i) 25% of the cost of replacing the lead water service pipes in each taxable year for which the credit is taken or (ii) $2,500 in each such taxable year. Provides that the credit may be taken for the taxable year in which the pipes are replaced and in each of the next 3 consecutive years. Provides that the term "qualified residence" means a single family residence that is owned and occupied by the taxpayer as his or her primary residence. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2128LRB101 07386 HLH 52426 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 229 as follows:
 
6    (35 ILCS 5/229 new)
7    Sec. 229. Credit for lead pipe removal.
8    (a) For taxable years beginning on or after January 1,
92019, each taxpayer who replaces a lead water service pipe with
10a copper water service pipe at a qualified residence is
11entitled to a credit against the tax imposed by subsections (a)
12and (b) of Section 201 in an amount equal to the lesser of (i)
1325% of the cost of replacing the lead water service pipes in
14each taxable year for which the credit is taken or (ii) $2,500
15in each such taxable year. The credit may be taken in the
16taxable year in which the pipes are replaced and in each of the
17next 3 consecutive years. The credit may not be taken if the
18pipe is replaced prior to January 1, 2019.
19    (b) In no event shall a credit under this Section reduce
20the taxpayer's liability to less than zero. If the amount of
21the credit exceeds the tax liability for the year, the excess
22may be carried forward and applied to the tax liability of the
235 taxable years following the excess credit year. The tax

 

 

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1credit shall be applied to the earliest year for which there is
2a tax liability. If there are credits for more than one year
3that are available to offset a liability, the earlier credit
4shall be applied first.
5    (c) As used in this Section, "qualified residence" means a
6single family residence that is owned and occupied by the
7taxpayer as his or her primary residence.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.