101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1554

 

Introduced 2/15/2019, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/226

    Amends the Illinois Income Tax Act. Provides a tax credit to each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor due to tornadoes or flooding in 2011, 2013, 2015, 2017, or 2018. 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 226 as follows:
 
6    (35 ILCS 5/226)
7    Sec. 226. Natural disaster credit.
8    (a) For taxable years that begin on or after January 1,
92017 and begin prior to January 1, 2019, each taxpayer who owns
10qualified real property located in a county in Illinois that
11was declared a State disaster area by the Governor due to
12flooding in 2017 or 2018 is entitled to a credit against the
13taxes imposed by subsections (a) and (b) of Section 201 of this
14Act in an amount equal to the lesser of $750 or the deduction
15allowed (whether or not the taxpayer determines taxable income
16under subsection (b) of Section 63 of the Internal Revenue
17Code) with respect to the qualified property under Section 165
18of the Internal Revenue Code, determined without regard to the
19limitations imposed under subsection (h) of that Section.
20    For taxable years that begin on or after January 1, 2019
21and begin prior to January 1, 2020, each taxpayer who owns
22qualified real property located in a county in Illinois that
23was declared a State disaster area by the Governor due to

 

 

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1tornadoes or flooding in 2011, 2013, 2015, 2017, or 2018 is
2entitled to a credit against the taxes imposed by subsections
3(a) and (b) of Section 201 of this Act in an amount equal to the
4lesser of $750 or the deduction allowed (whether or not the
5taxpayer determines taxable income under subsection (b) of
6Section 63 of the Internal Revenue Code) with respect to the
7qualified property under Section 165 of the Internal Revenue
8Code, determined without regard to the limitations imposed
9under subsection (h) of that Section.
10    The township assessor or, if the township assessor is
11unable, the chief county assessment officer of the county in
12which the property is located, shall issue a certificate to the
13taxpayer identifying the taxpayer's property as damaged as a
14result of the natural disaster. The certificate shall include
15the name and address of the property owner, as well as the
16property index number or permanent index number (PIN) of the
17damaged property. The taxpayer shall attach a copy of such
18certificate to the taxpayer's return for the taxable year for
19which the credit is allowed.
20    (b) In no event shall a credit under this Section reduce a
21taxpayer's liability to less than zero. If the amount of credit
22exceeds the tax liability for the year, the excess may be
23carried forward and applied to the tax liability for the 5
24taxable years following the excess credit year. The tax credit
25shall be applied to the earliest year for which there is a tax
26liability. If there are credits for more than one year that are

 

 

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1available to offset liability, the earlier credit shall be
2applied first.
3    (c) If the taxpayer is a partnership or Subchapter S
4corporation, the credit shall be allowed to the partners or
5shareholders in accordance with the determination of income and
6distributive share of income under Sections 702 and 704 and
7Subchapter S of the Internal Revenue Code.
8    (d) A taxpayer is not entitled to the credit under this
9Section if the taxpayer receives a Natural Disaster Homestead
10Exemption under Section 15-173 of the Property Tax Code with
11respect to the qualified real property as a result of the
12natural disaster.
13    (e) The township assessor or, if the township assessor is
14unable to certify, the chief county assessment officer of the
15county in which the property is located, shall certify to the
16Department a listing of the properties located within the
17county that have been damaged as a result of the natural
18disaster (including the name and address of the property owner
19and the property index number or permanent index number (PIN)
20of each damage property).
21    (f) As used in this Section:
22        (1) "Qualified real property" means real property that
23    is: (i) the taxpayer's principal residence or owned by a
24    small business; (ii) damaged during the taxable year as a
25    result of a disaster; and (iii) not used in a rental or
26    leasing business.

 

 

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1        (2) "Small business" has the meaning given to that term
2    in Section 1-75 of the Illinois Administrative Procedure
3    Act.
4    (g) Nothing in this Act prohibits the disclosure of
5information by officials of a county or municipality involving
6reports of damaged property or the owners of damaged property
7if that disclosure is made to a township or county assessment
8official in connection with a credit obtained or sought under
9this Section.
10(Source: P.A. 100-555, eff. 11-16-17; 100-587, eff. 6-4-18;
11100-731, eff. 1-1-19; revised 8-30-18.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.