101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2869

 

Introduced , by Rep. Maurice A. West II

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/212

    Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2020, the earned income tax credit shall be 36% (currently, 18%) of the federal tax credit.


LRB101 07272 HLH 52311 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2869LRB101 07272 HLH 52311 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
5changing Section 212 as follows:
 
6    (35 ILCS 5/212)
7    Sec. 212. Earned income tax credit.
8    (a) With respect to the federal earned income tax credit
9allowed for the taxable year under Section 32 of the federal
10Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
11is entitled to a credit against the tax imposed by subsections
12(a) and (b) of Section 201 in an amount equal to (i) 5% of the
13federal tax credit for each taxable year beginning on or after
14January 1, 2000 and ending prior to December 31, 2012, (ii)
157.5% of the federal tax credit for each taxable year beginning
16on or after January 1, 2012 and ending prior to December 31,
172013, (iii) 10% of the federal tax credit for each taxable year
18beginning on or after January 1, 2013 and beginning prior to
19January 1, 2017, (iv) 14% of the federal tax credit for each
20taxable year beginning on or after January 1, 2017 and
21beginning prior to January 1, 2018, and (v) 18% of the federal
22tax credit for each taxable year beginning on or after January
231, 2018 and beginning prior to January 1, 2020, and (vi) 36% of

 

 

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1the federal tax credit for each taxable year beginning on or
2after January 1, 2020.
3    For a non-resident or part-year resident, the amount of the
4credit under this Section shall be in proportion to the amount
5of income attributable to this State.
6    (b) For taxable years beginning before January 1, 2003, in
7no event shall a credit under this Section reduce the
8taxpayer's liability to less than zero. For each taxable year
9beginning on or after January 1, 2003, if the amount of the
10credit exceeds the income tax liability for the applicable tax
11year, then the excess credit shall be refunded to the taxpayer.
12The amount of a refund shall not be included in the taxpayer's
13income or resources for the purposes of determining eligibility
14or benefit level in any means-tested benefit program
15administered by a governmental entity unless required by
16federal law.
17    (c) This Section is exempt from the provisions of Section
18250.
19(Source: P.A. 100-22, eff. 7-6-17.)