SB2833 103RD GENERAL ASSEMBLY

LRB103 36517 HLH 66623 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2833

Introduced 1/19/2024, by Sen. Paul Faraci

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new
5 ILCS 100/5-45.55 new

Amends the Illinois Income Tax Act. Creates an income tax credit for individuals who (i) serve as a volunteer for 100 hours during the taxable year, (ii) do not receive any compensation for their services as a volunteer for the taxable year, and (iii) do not serve on a full-time or part-time career basis for the entity for which they volunteer. Provides that the Department of Revenue may award not more than $5,000,000 in credits under those provisions in any calendar year. 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. Volunteer tax credit.

(a) For taxable years beginning on or after January 1, 2024 and beginning prior to January 1, 2029, each individual who (i) serves as a volunteer for 100 hours during the taxable year, (ii) does not receive any compensation for his or her services as a volunteer for the taxable year, and (iii) does not serve on a full-time or part-time career basis for the entity for which he or she volunteers may apply to the Department for a credit against the taxes imposed by subsections (a) and (b) of Section 201. The amount of the credit shall be $500 per eligible individual. The aggregate amount of all tax credits awarded by the Department under this Section in any calendar year may not exceed $5,000,000. Credits shall be awarded on a first-come, first-served basis.

(b) A credit under this Section may not reduce a taxpayer's liability to less than zero.

(c) By January 24 of each year, entities that are organized and operated exclusively for charitable, religious, or educational purposes and possess an active Exemption Identification Number issued by the Department pursuant to the Retailers' Occupation Tax Act must notify the Department of volunteers who (i) volunteered for at least 100 hours during the immediately preceding calendar year and (ii) did not receive compensation for their services as a volunteer during the immediately preceding calendar year. Notification shall be submitted in the manner specified by the Department.

(d) The Department shall adopt rules to implement and administer this Section, including rules concerning applications for the tax credit.

(e) As used in this Section, "volunteer" means a person who serves, other than on a full-time career basis, for an entity that is organized and operated exclusively for charitable, religious, or educational purposes and who possess an active Exemption Identification Number issued by the Department of Revenue pursuant to the Retailers' Occupation Tax Act.

Section 10. The Illinois Administrative Procedure Act is amended by adding Section 5-45.55 as follows:

(5 ILCS 100/5-45.55 new)

Sec. 5-45.55. Emergency rulemaking; Illinois Income Tax Act. To provide for the expeditious and timely implementation of this amendatory Act of the 103rd General Assembly, emergency rules implementing this amendatory Act of the 103rd General Assembly may be adopted in accordance with Section 5-45 by the Department of Revenue. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 103rd General Assembly.

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