97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3917

 

Introduced 5/8/2012, by Sen. Dan Kotowski

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/223 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal to any qualified education expenses paid by the taxpayer to an eligible educational institution during the taxable year, but not to exceed $5,000 per taxpayer in any taxable year. Provides that the term "eligible educational institution" means any public or private university, community college, vocational school, or other postsecondary educational institution that is physically located in the State and is eligible to participate in a student loan program administered by the United States Department of Education. Provides that the term "qualified education expenses" means tuition and fees required for enrollment or attendance at an eligible educational institution, as well as expenses for course-related books, supplies, and equipment if those expenses are incurred as part of the student's course of study. 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 adding
5Section 223 as follows:
 
6    (35 ILCS 5/223 new)
7    Sec. 223. Credit for qualified education expenses.
8    (a) For taxable years ending on or after December 31, 2012,
9and ending prior to December 31, 2017, each taxpayer is
10entitled to a credit against the tax imposed by subsections (a)
11and (b) of Section 201 in an amount equal to any qualified
12education expenses paid by the taxpayer to an eligible
13educational institution during the taxable year, but not to
14exceed $5,000 per taxpayer in any taxable year.
15    (b) For partners, shareholders of Subchapter S
16corporations, and owners of limited liability companies, if the
17liability company is treated as a partnership for purposes of
18federal and State income taxation, there is allowed a credit
19under this Section to be determined in accordance with the
20determination of income and distributive share of income under
21Sections 702 and 704 and Subchapter S of the Internal Revenue
22Code.
23    (c) The credit may not be carried back. If the amount of

 

 

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1the credit exceeds the tax liability for the year, the excess
2may be carried forward and applied to the tax liability of the
35 taxable years following the excess credit year. The tax
4credit shall be applied to the earliest year for which there is
5a tax liability. If there are credits for more than one year
6that are available to offset a liability, the earlier credit
7shall be applied first.
8    (d) For the purposes of this Section:
9    "Eligible educational institution" means any public or
10private university, community college, vocational school, or
11other postsecondary educational institution that is physically
12located in the State and is eligible to participate in a
13student loan program administered by the United States
14Department of Education.
15    "Qualified education expenses" means tuition and fees
16required for enrollment or attendance at an eligible
17educational institution, as well as expenses for
18course-related books, supplies, and equipment if those
19expenses are incurred as part of the student's course of study.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.