HB4560 103RD GENERAL ASSEMBLY

LRB103 37098 HLH 67217 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4560

Introduced 1/31/2024, by Rep. Maura Hirschauer

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Creates an income tax credit for the eligible purchase of a firearm safety device. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 241 as follows:

(35 ILCS 5/241 new)

Sec. 241. Firearm safety device tax credit.

(a) As used in this Section:

"Eligible transaction" means a transaction in which a taxpayer purchases one or more firearm safety devices from a dealer that is federally licensed pursuant to 18 U.S.C. 923.

"Eligible transaction" does not include a transaction that includes the purchase of a firearm.

"Firearm" means any handgun, shotgun, rifle, or other firearm that will, is designed to, or may be readily converted to expel single or multiple projectiles by action of an explosion of a combustible material.

"Firearm safety device" means a safe, gun safe, gun case, lock box, or other device that is designed to be or can be used to store a firearm and that is designed to be unlocked only by means of a key, a combination, or other similar means.

(b) For taxable years that begin on and after January 1, 2025 and begin before January 1, 2030, a taxpayer who purchases one or more firearm safety devices in an eligible transaction during the taxable year may apply to the Department for a nonrefundable credit against the tax imposed by subsections (a) and (b) of Section 201. The credit shall be in the amount of the cost incurred by the taxpayer for the purchase of the firearm safety device but not to exceed $300 per taxpayer in any taxable year. A taxpayer shall be allowed only one credit under this Section per taxable year. The taxpayer shall apply to the Department in the form and manner required by the Department. The aggregate amount of credits allowable under this Section shall not exceed $5,000,000 in any taxable year. Credits shall be allocated by the Department on a first-come, first-served basis.

(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(d) The Department shall adopt rules for the administration and implementation of the credit under this Section.

Section 99. Effective date. This Act takes effect upon becoming law.