101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2251

 

Introduced , by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new

    Amends the Illinois Income Tax Act. Provides that each taxpayer who (i) was a resident of another State, (ii) first became a resident of Illinois in a taxable year beginning on or after January 1, 2019, (iii) agrees to reside in Illinois for a period of at least 10 consecutive years, and (iv) applies to the Department of Revenue for a new resident income tax credit is entitled to an income tax credit in the amount of $15,000 per year. Provides for recapture if the taxpayer fails to reside in the State for a period of at least 10 consecutive years after being approved for a credit by the Department. Provides that the credit is exempt from the Act's automatic sunset. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2251LRB101 07118 HLH 52155 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. New resident credit.
8    (a) Each taxpayer who (i) was a resident of another State,
9(ii) first became a resident of Illinois in a taxable year
10beginning on or after January 1, 2019, (iii) agrees to reside
11in Illinois for a period of at least 10 consecutive years, and
12(iv) applies to the Department for a tax credit under this
13Section is entitled to a credit against the tax imposed by
14subsections (a) and (b) of Section 201 in the amount of $15,000
15per year. The Department may approve no more than than 50,000
16applications under this Section. In the case of spouses filing
17a joint return, each spouse must separately qualify under this
18subsection (a), and both spouses together shall be considered a
19single taxpayer for the purpose of calculating the maximum
20number of applications under this Section.
21    (b) The tax credit award may not be carried back. If the
22amount of the credit exceeds the tax liability for the year,
23the excess may be carried forward and applied to the tax

 

 

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1liability of the 5 tax years following the excess credit year.
2The tax credit award shall be applied to the earliest year for
3which there is a tax liability. If there are credits from more
4than one tax year that are available to offset liability, the
5earlier credit shall be applied first. In no event may a credit
6under this Section reduce the taxpayer's liability to less than
7zero.
8    (c) If the taxpayer fails to reside in the State for a
9period of at least 10 consecutive years after being approved
10for a credit by the Department under this Section, except in
11the case of death or disability of the taxpayer, the Department
12shall seek to recapture from the taxpayer the entire credit
13amount awarded to the taxpayer prior to the date he or she
14relocated.
15    (d) This Section is exempt from the provisions of Section
16250.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.