101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4289

 

Introduced 1/28/2020, by Rep. Steven Reick

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/208  from Ch. 120, par. 2-208

    Amends the Illinois Income Tax Act. Provides that, if the amount of the credit for residential real property taxes exceeds the taxpayer's liability, that amount shall be refunded if the taxpayer is 65 years or older and has a federal adjusted gross income of not more than $50,000. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 208 as follows:
 
6    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
7    (Text of Section before amendment by P.A. 101-8)
8    Sec. 208. Tax credit for residential real property taxes.
9Beginning with tax years ending on or after December 31, 1991,
10every individual taxpayer shall be entitled to a tax credit
11equal to 5% of real property taxes paid by such taxpayer during
12the taxable year on the principal residence of the taxpayer. In
13the case of multi-unit or multi-use structures and farm
14dwellings, the taxes on the taxpayer's principal residence
15shall be that portion of the total taxes which is attributable
16to such principal residence. Notwithstanding any other
17provision of law, for taxable years beginning on or after
18January 1, 2017, no taxpayer may claim a credit under this
19Section if the taxpayer's adjusted gross income for the taxable
20year exceeds (i) $500,000, in the case of spouses filing a
21joint federal tax return, or (ii) $250,000, in the case of all
22other taxpayers. This Section is exempt from the provisions of
23Section 250.

 

 

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1    For taxable years beginning on or after January 1, 2020, if
2the amount of the credit exceeds the taxpayer's income tax
3liability for the applicable tax year, then the excess credit
4shall be refunded to the taxpayer if (i) the taxpayer is 65
5years old or older and (ii) has a federal adjusted gross income
6not greater than $50,000. The amount of a refund shall not be
7included in the taxpayer's income or resources for the purposes
8of determining eligibility or benefit level in any means-tested
9benefit program administered by a governmental entity unless
10required by federal law.
11(Source: P.A. 100-22, eff. 7-6-17.)
 
12    (Text of Section after amendment by P.A. 101-8)
13    Sec. 208. Tax credit for residential real property taxes.
14For tax years ending on or after December 31, 1991 and ending
15prior to December 31, 2021, every individual taxpayer shall be
16entitled to a tax credit equal to 5% of real property taxes
17paid by such taxpayer during the taxable year on the principal
18residence of the taxpayer. For tax years ending on or after
19December 31, 2021, every individual taxpayer shall be entitled
20to a tax credit equal to 6% of real property taxes paid by such
21taxpayer during the taxable year on the principal residence of
22the taxpayer. In the case of multi-unit or multi-use structures
23and farm dwellings, the taxes on the taxpayer's principal
24residence shall be that portion of the total taxes which is
25attributable to such principal residence. Notwithstanding any

 

 

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1other provision of law, for taxable years beginning on or after
2January 1, 2017, no taxpayer may claim a credit under this
3Section if the taxpayer's adjusted gross income for the taxable
4year exceeds (i) $500,000, in the case of spouses filing a
5joint federal tax return, or (ii) $250,000, in the case of all
6other taxpayers. This Section is exempt from the provisions of
7Section 250.
8    For taxable years beginning on or after January 1, 2020, if
9the amount of the credit exceeds the taxpayer's income tax
10liability for the applicable tax year, then the excess credit
11shall be refunded to the taxpayer if (i) the taxpayer is 65
12years old or older and (ii) has a federal adjusted gross income
13not greater than $50,000. The amount of a refund shall not be
14included in the taxpayer's income or resources for the purposes
15of determining eligibility or benefit level in any means-tested
16benefit program administered by a governmental entity unless
17required by federal law.
18(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
19effective date.)
 
20    Section 95. No acceleration or delay. Where this Act makes
21changes in a statute that is represented in this Act by text
22that is not yet or no longer in effect (for example, a Section
23represented by multiple versions), the use of that text does
24not accelerate or delay the taking effect of (i) the changes
25made by this Act or (ii) provisions derived from any other

 

 

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1Public Act.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.