Full Text of SB1432 101st General Assembly
SB1432 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1432 Introduced 2/13/2019, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Provides that a taxpayer who may claim a qualifying student as a dependent is allowed a credit of up to $2,000 for qualified tuition and fee expenses paid by the taxpayer. Provides that the term qualifying student means a person who (i) is a resident of the State, (ii) is under the age of 24 at the close of the school year for which a credit is sought, and (iii) during the school year for which a credit is sought, is a full-time student enrolled in a program at a qualifying college or university.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | SB1432 | | LRB101 09523 HLH 54621 b |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by adding | 5 | | Section 229 as follows: | 6 | | (35 ILCS 5/229 new) | 7 | | Sec. 229. College tuition expense credit. | 8 | | (a) For taxable years ending on or after December 31, 2019, | 9 | | a taxpayer who may claim one or more qualifying students as a | 10 | | dependent shall be allowed a credit up to $2,000 against the | 11 | | tax imposed by subsections (a) and (b) of this Section for | 12 | | qualified tuition and fee expenses paid by the taxpayer during | 13 | | the taxable year on behalf of the qualifying student or | 14 | | students. | 15 | | (b) In no event shall a credit under this Section reduce a | 16 | | taxpayer's liability to less than zero. If the amount of credit | 17 | | exceeds the tax liability for the year, the excess may be | 18 | | carried and applied to the tax liability for the 5 taxable | 19 | | years following the excess credit year. The tax credit shall be | 20 | | applied to the earliest year for which there is a tax | 21 | | liability. If there are credits for more than one year that are | 22 | | available to offset liability, the earlier credit shall be | 23 | | applied first. |
| | | SB1432 | - 2 - | LRB101 09523 HLH 54621 b |
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| 1 | | (c) For the purpose of this Section, "qualifying college or | 2 | | university" means any public or private university, community | 3 | | college, vocational school, or other postsecondary educational | 4 | | institution that is physically located in the State and is | 5 | | eligible to participate in a student loan program administered | 6 | | by the United States Department of Education. | 7 | | "Qualifying student" means an individual who (i) is a | 8 | | resident of the State, (ii) is under the age of 24 at the close | 9 | | of the school year for which a credit is sought, and (iii) | 10 | | during the school year for which a credit is sought, is a | 11 | | full-time student enrolled in a program at a qualifying college | 12 | | or university at which the student is enrolled. | 13 | | "Qualified tuition and fee expense" means the amount | 14 | | incurred by on behalf of a qualifying student for tuition, book | 15 | | fees, and lab fees at the qualifying college of university at | 16 | | which the student is enrolled. | 17 | | (d) Notwithstanding any other provision of law, for taxable | 18 | | years beginning on January 1, 2020, no taxpayer may claim a | 19 | | credit under this Section if the taxpayer's adjusted gross | 20 | | income for the taxable year exceeds (i) $250,000, in the case | 21 | | of spouses filing a joint federal tax return or (ii) $125,000, | 22 | | in the case of all other taxpayers. | 23 | | (e) This Section is exempt from the provisions of Section | 24 | | 250.
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