Illinois General Assembly - Full Text of HB1497
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Full Text of HB1497  102nd General Assembly



State of Illinois
2021 and 2022


Introduced 2/17/2021, by Rep. Emanuel Chris Welch


35 ILCS 5/302  from Ch. 120, par. 3-302

    Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning income allocation.

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HB1497LRB102 03513 HLH 13526 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 302 as follows:
6    (35 ILCS 5/302)  (from Ch. 120, par. 3-302)
7    Sec. 302. Compensation paid to nonresidents.
8    (a) In general. All items of compensation paid in this
9State (as determined under Section 304(a)(2)(B)) to an
10individual who is a nonresident at the the time of such payment
11and all items of deduction directly allocable thereto, shall
12be allocated to this State.
13    (b) Reciprocal exemption. The Director may enter into an
14agreement with the taxing authorities of any state which
15imposes a tax on or measured by income to provide that
16compensation paid in such state to residents of this State
17shall be exempt from such tax; in such case, any compensation
18paid in this State to residents of such state shall not be
19allocated to this State. All reciprocal agreements shall be
20subject to the requirements of Section 2505-575 of the
21Department of Revenue Law (20 ILCS 2505/2505-575).
22    (c) Cross references.
23        (1) For allocation of amounts received by nonresidents



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1    from certain employee trusts, see Section 301(b)(2).
2        (2) For allocation of compensation by residents, see
3    Section 301(a).
4(Source: P.A. 90-491, eff. 1-1-98; 91-239, eff. 1-1-00.)