103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3575

 

Introduced 2/9/2024, by Sen. John F. Curran

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/204  from Ch. 120, par. 2-204
5 ILCS 100/5-45.55 new

    Amends the Illinois Income Tax Act. Removes a provision that sets forth the basic amount of the standard exemption for taxable years ending on or after December 31, 2023 and prior to December 31, 2024, and restores the cost-of-living adjustment for the basic amount that had been operative before the effective date of Public Act 103-9. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.


LRB103 37523 HLH 67646 b

 

 

A BILL FOR

 

SB3575LRB103 37523 HLH 67646 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, 2028 December 31, 2022,
8    $2,050 plus the cost-of-living adjustment under subsection
9    (d-5);
10        (6) (blank); for taxable years ending on or after
11    December 31, 2023 and prior to December 31, 2024, $2,425;
12        (7) (blank). for taxable years ending on or after
13    December 31, 2024 and on or before December 31, 2028,
14    $2,050 plus the cost-of-living adjustment under subsection
15    (d-5).
16    It is the intent of the General Assembly that the changes
17made to this Section by this amendatory Act of the 103rd
18General Assembly apply retroactively to taxable years ending
19on or after December 31, 2023 and prior to December 31, 2024.
20    For taxable years ending on or after December 31, 1992, a
21taxpayer whose Illinois base income exceeds the basic amount
22and who is claimed as a dependent on another person's tax
23return under the Internal Revenue Code shall not be allowed
24any basic amount under this subsection.
25    (c) Additional amount for individuals. In the case of an
26individual taxpayer, there shall be allowed for the purpose of

 

 

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1subsection (a), in addition to the basic amount provided by
2subsection (b), an additional exemption equal to the basic
3amount for each exemption in excess of one allowable to such
4individual taxpayer for the taxable year under Section 151 of
5the Internal Revenue Code.
6    (d) Additional exemptions for an individual taxpayer and
7his or her spouse. In the case of an individual taxpayer and
8his or her spouse, he or she shall each be allowed additional
9exemptions as follows:
10        (1) Additional exemption for taxpayer or spouse 65
11    years of age or older.
12            (A) For taxpayer. An additional exemption of
13        $1,000 for the taxpayer if he or she has attained the
14        age of 65 before the end of the taxable year.
15            (B) For spouse when a joint return is not filed. An
16        additional exemption of $1,000 for the spouse of the
17        taxpayer if a joint return is not made by the taxpayer
18        and his spouse, and if the spouse has attained the age
19        of 65 before the end of such taxable year, and, for the
20        calendar year in which the taxable year of the
21        taxpayer begins, has no gross income and is not the
22        dependent of another taxpayer.
23        (2) Additional exemption for blindness of taxpayer or
24    spouse.
25            (A) For taxpayer. An additional exemption of
26        $1,000 for the taxpayer if he or she is blind at the

 

 

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

 

 

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

 

 

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1amended by adding Section 5-45.55 as follows:
 
2    (5 ILCS 100/5-45.55 new)
3    Sec. 5-45.55. Emergency rulemaking; income tax. To provide
4for the expeditious and timely implementation of this
5amendatory Act of the 103rd General Assembly, emergency rules
6implementing this amendatory Act of the 103rd General Assembly
7may be adopted in accordance with Section 5-45 by the
8Department of Revenue. The adoption of emergency rules
9authorized by Section 5-45 and this Section is deemed to be
10necessary for the public interest, safety, and welfare.
11    This Section is repealed one year after the effective date
12of this amendatory Act of the 103rd General Assembly.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.