103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2708

 

Introduced 1/10/2024, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/204  from Ch. 120, par. 2-204

    Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2024, the additional standard exemption for taxpayers who have attained the age of 65 before the end of the taxable year and their spouses is $2,000 (currently, $1,000). Effective immediately.


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A BILL FOR

 

SB2708LRB103 35936 HLH 66023 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
5changing Section 204 as follows:
 
6    (35 ILCS 5/204)  (from Ch. 120, par. 2-204)
7    Sec. 204. Standard exemption.
8    (a) Allowance of exemption. In computing net income under
9this Act, there shall be allowed as an exemption the sum of the
10amounts determined under subsections (b), (c) and (d),
11multiplied by a fraction the numerator of which is the amount
12of the taxpayer's base income allocable to this State for the
13taxable year and the denominator of which is the taxpayer's
14total base income for the taxable year.
15    (b) Basic amount. For the purpose of subsection (a) of
16this Section, except as provided by subsection (a) of Section
17205 and in this subsection, each taxpayer shall be allowed a
18basic amount of $1000, except that for corporations the basic
19amount shall be zero for tax years ending on or after December
2031, 2003, and for individuals the basic amount shall be:
21        (1) for taxable years ending on or after December 31,
22    1998 and prior to December 31, 1999, $1,300;
23        (2) for taxable years ending on or after December 31,

 

 

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1    1999 and prior to December 31, 2000, $1,650;
2        (3) for taxable years ending on or after December 31,
3    2000 and prior to December 31, 2012, $2,000;
4        (4) for taxable years ending on or after December 31,
5    2012 and prior to December 31, 2013, $2,050;
6        (5) for taxable years ending on or after December 31,
7    2013 and on or before December 31, 2022, $2,050 plus the
8    cost-of-living adjustment under subsection (d-5);
9        (6) for taxable years ending on or after December 31,
10    2023 and prior to December 31, 2024, $2,425;
11        (7) for taxable years ending on or after December 31,
12    2024 and on or before December 31, 2028, $2,050 plus the
13    cost-of-living adjustment under subsection (d-5).
14For taxable years ending on or after December 31, 1992, a
15taxpayer whose Illinois base income exceeds the basic amount
16and who is claimed as a dependent on another person's tax
17return under the Internal Revenue Code shall not be allowed
18any basic amount under this subsection.
19    (c) Additional amount for individuals. In the case of an
20individual taxpayer, there shall be allowed for the purpose of
21subsection (a), in addition to the basic amount provided by
22subsection (b), an additional exemption equal to the basic
23amount for each exemption in excess of one allowable to such
24individual taxpayer for the taxable year under Section 151 of
25the Internal Revenue Code.
26    (d) Additional exemptions for an individual taxpayer and

 

 

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1his or her spouse. In the case of an individual taxpayer and
2his or her spouse, he or she shall each be allowed additional
3exemptions as follows:
4        (1) Additional exemption for taxpayer or spouse 65
5    years of age or older.
6            (A) For taxpayer. If the taxpayer An additional
7        exemption of $1,000 for the taxpayer if he or she has
8        attained the age of 65 before the end of the taxable
9        year, then an additional exemption of (i) $1,000 for
10        taxable years beginning prior to January 1, 2024 and
11        (ii) $2,000 for taxable years beginning on or after
12        January 1, 2024.
13            (B) For spouse when a joint return is not filed. If
14        An additional exemption of $1,000 for the spouse of
15        the taxpayer if a joint return is not made by the
16        taxpayer and his spouse, and if the spouse has
17        attained the age of 65 before the end of such taxable
18        year, and, for the calendar year in which the taxable
19        year of the taxpayer begins, has no gross income and is
20        not the dependent of another taxpayer, then an
21        additional exemption of (i) $1,000 for taxable years
22        beginning prior to January 1, 2024 and (ii) $2,000 for
23        taxable years beginning on or after January 1, 2024.
24        (2) Additional exemption for blindness of taxpayer or
25    spouse.
26            (A) For taxpayer. An additional exemption of

 

 

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1        $1,000 for the taxpayer if he or she is blind at the
2        end of the taxable year.
3            (B) For spouse when a joint return is not filed. An
4        additional exemption of $1,000 for the spouse of the
5        taxpayer if a separate return is made by the taxpayer,
6        and if the spouse is blind and, for the calendar year
7        in which the taxable year of the taxpayer begins, has
8        no gross income and is not the dependent of another
9        taxpayer. For purposes of this paragraph, the
10        determination of whether the spouse is blind shall be
11        made as of the end of the taxable year of the taxpayer;
12        except that if the spouse dies during such taxable
13        year such determination shall be made as of the time of
14        such death.
15            (C) Blindness defined. For purposes of this
16        subsection, an individual is blind only if his or her
17        central visual acuity does not exceed 20/200 in the
18        better eye with correcting lenses, or if his or her
19        visual acuity is greater than 20/200 but is
20        accompanied by a limitation in the fields of vision
21        such that the widest diameter of the visual fields
22        subtends an angle no greater than 20 degrees.
23    (d-5) Cost-of-living adjustment. For purposes of item (5)
24of subsection (b), the cost-of-living adjustment for any
25calendar year and for taxable years ending prior to the end of
26the subsequent calendar year is equal to $2,050 times the

 

 

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1percentage (if any) by which:
2        (1) the Consumer Price Index for the preceding
3    calendar year, exceeds
4        (2) the Consumer Price Index for the calendar year
5    2011.
6    The Consumer Price Index for any calendar year is the
7average of the Consumer Price Index as of the close of the
812-month period ending on August 31 of that calendar year.
9    The term "Consumer Price Index" means the last Consumer
10Price Index for All Urban Consumers published by the United
11States Department of Labor or any successor agency.
12    If any cost-of-living adjustment is not a multiple of $25,
13that adjustment shall be rounded to the next lowest multiple
14of $25.
15    (e) Cross reference. See Article 3 for the manner of
16determining base income allocable to this State.
17    (f) Application of Section 250. Section 250 does not apply
18to the amendments to this Section made by Public Act 90-613.
19    (g) Notwithstanding any other provision of law, for
20taxable years beginning on or after January 1, 2017, no
21taxpayer may claim an exemption under this Section if the
22taxpayer's adjusted gross income for the taxable year exceeds
23(i) $500,000, in the case of spouses filing a joint federal tax
24return or (ii) $250,000, in the case of all other taxpayers.
25(Source: P.A. 103-9, eff. 6-7-23.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.