HB3094 101ST GENERAL ASSEMBLY

LRB101 09667 HLH 54766 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3094

Introduced , by Rep. John Connor

SYNOPSIS AS INTRODUCED:

35 ILCS 5/229 new

Amends the Illinois Income Tax Act. Creates a credit for taxpayers who make a payment toward principal or interest on a qualified education loan, as defined in Section 221 of the Internal Revenue Code, during the taxable year. Provides that the credit shall be equal to the amount paid during the taxable year, but not to exceed $500 per taxable year. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 229 as follows:

(35 ILCS 5/229 new)

Sec. 229. Student loan credit.

(a) For taxable years beginning on or after January 1, 2019, each taxpayer who makes a payment toward principal or interest on a qualified education loan, as defined in Section 221 of the Internal Revenue Code, during the taxable year is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to the amount paid during the taxable year, but not to exceed $500 per taxable year.

(b) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for 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 liability, the earlier credit shall be applied first.

(c) This Section is exempt from the provisions of Section 250.

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