101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3019

 

Introduced , by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/223

    Amends the Illinois Income Tax Act. Provides that the hospital credit applies for tax years ending on or after December 31, 2012 and ending on or before December 31, 2025 (currently, the credit sunsets on December 31, 2017 by operation of the Act's automatic sunset provision). Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3019LRB101 10401 HLH 55507 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 223 as follows:
 
6    (35 ILCS 5/223)
7    Sec. 223. Hospital credit.
8    (a) For tax years ending on or after December 31, 2012 and
9ending on or before December 31, 2025 2022, a taxpayer that is
10the owner of a hospital licensed under the Hospital Licensing
11Act, but not including an organization that is exempt from
12federal income taxes under the Internal Revenue Code, is
13entitled to a credit against the taxes imposed under
14subsections (a) and (b) of Section 201 of this Act in an amount
15equal to the lesser of the amount of real property taxes paid
16during the tax year on real property used for hospital purposes
17during the prior tax year or the cost of free or discounted
18services provided during the tax year pursuant to the
19hospital's charitable financial assistance policy, measured at
20cost.
21    (b) If the taxpayer is a partnership or Subchapter S
22corporation, the credit is allowed to the partners or
23shareholders in accordance with the determination of income and

 

 

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1distributive share of income under Sections 702 and 704 and
2Subchapter S of the Internal Revenue Code. A transfer of this
3credit may be made by the taxpayer earning the credit within
4one year after the credit is earned in accordance with rules
5adopted by the Department. The Department shall prescribe rules
6to enforce and administer provisions of this Section. If the
7amount of the credit exceeds the tax liability for the year,
8then the excess credit may be carried forward and applied to
9the tax liability of the 5 taxable years following the excess
10credit year. The credit shall be applied to the earliest year
11for which there is a tax liability. If there are credits from
12more than one tax year that are available to offset a
13liability, the earlier credit shall be applied first. In no
14event shall a credit under this Section reduce the taxpayer's
15liability to less than zero.
16(Source: P.A. 100-587, eff. 6-4-18.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.