SB1824 101ST GENERAL ASSEMBLY

LRB101 09664 HLH 54763 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1824

Introduced 2/15/2019, by Sen. John F. Curran

SYNOPSIS AS INTRODUCED:

35 ILCS 5/229 new

Amends the Illinois Income Tax Act. Provides that, if a taxpayer who is engaged in the business of providing dry cleaning services performs those services for a charitable organization that provides or maintains clothing for inmates at a State or federal correctional institution, that taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 25% of the amount charged for those services.

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. Dry cleaner; charitable credit.

(a) For taxable years beginning on or after January 1, 2019, if a taxpayer who is engaged in the business of providing dry cleaning services performs those services for a charitable organization that provides or maintains clothing for inmates at a State or federal correctional institution, that taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 25% of the amount charged for those services.

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

(c) For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the entity is treated as a partnership for purposes of federal and State income taxation, there is allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

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