101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3094

 

Introduced , by Rep. John Connor

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new

    Amends the Illinois Income Tax Act. Creates a credit for taxpayers who make a payment toward principal or interest on a qualified education loan, as defined in Section 221 of the Internal Revenue Code, during the taxable year. Provides that the credit shall be equal to the amount paid during the taxable year, but not to exceed $500 per taxable year. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3094LRB101 09667 HLH 54766 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. Student loan credit.
8    (a) For taxable years beginning on or after January 1,
92019, each taxpayer who makes a payment toward principal or
10interest on a qualified education loan, as defined in Section
11221 of the Internal Revenue Code, during the taxable year is
12entitled to a credit against the tax imposed by subsections (a)
13and (b) of Section 201 in an amount equal to the amount paid
14during the taxable year, but not to exceed $500 per taxable
15year.
16    (b) In no event shall a credit under this Section reduce a
17taxpayer's liability to less than zero. If the amount of credit
18exceeds the tax liability for the year, the excess may be
19carried forward and applied to the tax liability for the 5
20taxable years following the excess credit year. The tax credit
21shall be applied to the earliest year for which there is a tax
22liability. If there are credits for more than one year that are
23available to offset liability, the earlier credit shall be

 

 

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1applied first.
2    (c) This Section is exempt from the provisions of Section
3250.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.