102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2792

 

Introduced 2/19/2021, by Rep. Carol Ammons - Tom Demmer - Delia C. Ramirez - Michael J. Zalewski - Camille Y. Lilly, et al.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/212
35 ILCS 5/212.1 new
820 ILCS 170/5  from Ch. 48, par. 2755

    Amends the Illinois Income Tax Act. Provides that an individual taxpayer age 65 or older is entitled to the earned income tax credit without regard to the requirement under the federal Internal Revenue Code that an individual taxpayer without a qualifying child has not attained age 65. Provides that an individual taxpayer age 18 to 24 is entitled to the earned income tax credit without regard to the requirement under the federal Internal Revenue Code that an individual taxpayer without a qualifying child has attained the age of 25. Provides that certain taxpayers using individual tax identification numbers are entitled to the earned income tax credit. Creates the eligible dependent tax credit. Provides that the total amount of credits between the eligible dependent tax credit and the earned income tax credit may not be less than $600. Amends the Earned Income Tax Credit Information Act to delete certain provisions concerning dependent children. Effective immediately.


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FISCAL 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 212 and by adding Section 212.1 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.

 

 

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1    For a non-resident or part-year resident, the amount of
2the credit under this Section shall be in proportion to the
3amount of income attributable to this State.
4    (b) For taxable years beginning before January 1, 2003, in
5no event shall a credit under this Section reduce the
6taxpayer's liability to less than zero. For each taxable year
7beginning on or after January 1, 2003, if the amount of the
8credit exceeds the income tax liability for the applicable tax
9year, then the excess credit shall be refunded to the
10taxpayer. The amount of a refund shall not be included in the
11taxpayer's income or resources for the purposes of determining
12eligibility or benefit level in any means-tested benefit
13program administered by a governmental entity unless required
14by federal law.
15    (c) For taxable years beginning on or after January 1,
162021, each individual taxpayer age 65 or older is entitled to
17the credit under paragraph (a) without regard to the
18requirement under Section 32(c)(1)(A)(ii) of the federal
19Internal Revenue Code that the individual taxpayer without a
20qualifying child has not attained age 65.
21    (d) For taxable years beginning on or after January 1,
222021, each individual taxpayer age 18 to 24 is entitled to the
23credit under paragraph (a) without regard to the requirement
24under Section 32(c)(1)(A)(ii) of the federal Internal Revenue
25Code that the individual taxpayer without a qualifying child
26has attained the age of 25.

 

 

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1    (e) For taxable years beginning on or after January 1,
22021, each individual taxpayer filing a return using an
3individual tax identification number as prescribed under
4Section 6109 of the federal Internal Revenue Code, other than
5a Social Security number issued pursuant to Section
6205(c)(2)(A) of the Social Security Act, is entitled to the
7credit under paragraph (a) without regard to the restrictions
8under Section 32(m) of the federal Internal Revenue Code.
9    (f) (c) This Section is exempt from the provisions of
10Section 250.
11(Source: P.A. 100-22, eff. 7-6-17.)
 
12    (35 ILCS 5/212.1 new)
13    Sec. 212.1. Eligible dependent tax credit.
14    (a) For each taxable year beginning on or after January 1,
152022, there shall be allowed against the tax imposed by
16subsections (a) and (b) of Section 201, to each eligible
17caregiver, an eligible dependent tax credit in an amount equal
18to no less than $600, except as otherwise provided by this
19Section.
20    (b) The credit amount allowed shall be not less than $600
21regardless of how many qualified dependents the eligible
22caregiver provides care for. The credit amount allowed per
23taxpayer per taxable year shall be determined as follows:
24        (1) If the credit amount allowed pursuant to Section
25    212 is zero dollars, the credit amount allowed pursuant to

 

 

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1    this Section shall be $600.
2        (2) If the credit amount allowed pursuant to Section
3    212 is more than zero dollars and less than $600, the
4    credit amount allowed pursuant to this Section shall be an
5    amount such that the total amount of credit allowed to a
6    taxpayer under both this Section and Section 212 is equal
7    to $600.
8        (3) If the credit amount allowed pursuant to Section
9    212 is $600 or more, the credit amount allowed pursuant to
10    this Section shall be zero.
11    (c) For purposes of this Section:
12    "Eligible caregiver" means a taxpayer who provides
13uncompensated care for a qualified dependent and who would
14otherwise meet the requirements of an eligible individual
15pursuant to Section 212, except as follows:
16        (1) An eligible caregiver is not required to have
17    qualifying earned income as defined under Section
18    32(c)(2)(A) and (B) of the federal Internal Revenue Code
19    for the taxable year.
20        (2) The eligible caregiver or the qualified dependent,
21    or both, may have a taxpayer identification number that is
22    a social security number or is a federal individual
23    taxpayer identification number.
24    "Qualified dependent" means any of the following:
25        (1) A child who is under the age of 6 and for whom the
26    taxpayer is allowed an additional exemption under Section

 

 

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1    204 during the taxable year in which the credit is
2    claimed.
3        (2) A dependent for whom a deduction is allowed under
4    Section 151 of the Internal Revenue Code, relating to
5    allowance of deductions for personal exemptions, 70 years
6    of age or older during the taxable year in which the credit
7    is claimed.
8        (3) An individual described in Section 21(b)(1)(B) of
9    the Internal Revenue Code, modified so that the reference
10    to subsection (b)(1) shall not apply.
11        (4) An individual described in Section 21(b)(1)(C) of
12    the Internal Revenue Code.
13    (c) Where the qualifying dependent is an individual
14described in subsection (c)(2)(B), the tax return claiming the
15credit allowed by this Section shall include the name, year of
16birth, and taxpayer identification number of that qualifying
17dependent.
18    (d) For taxable years beginning on or after January 1,
192022, if the amount allowable as a credit under this Section
20exceeds the tax liability computed under this part for the
21taxable year, the excess shall be credited against other
22amounts due, if any, and the balance, if any, shall be refunded
23to the taxpayer.
24    (e) The Department of Revenue may adopt rules necessary or
25appropriate to carry out the purposes of this Section.
26    (f) The amount of a refund shall not be included in the

 

 

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1taxpayer's income or resources for the purposes of determining
2eligibility or benefit level in any means-tested benefit
3program administered by a governmental entity unless required
4by federal law.
 
5    Section 10. The Earned Income Tax Credit Information Act
6is amended by changing Section 5 as follows:
 
7    (820 ILCS 170/5)  (from Ch. 48, par. 2755)
8    Sec. 5. Declaration of public policy. In order to
9alleviate the tax burden of low-income persons in Illinois who
10have earned income and support one or more dependent children,
11the State should facilitate the furnishing of information to
12such persons about the availability of the federal earned
13income tax credit so that eligible taxpayers may claim that
14credit on their federal income tax returns. It is the intent of
15this Act to offer the most cost-effective assistance to
16eligible taxpayers through notices provided by their employers
17and by State government.
18(Source: P.A. 100-201, eff. 8-18-17.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.