Illinois General Assembly - Full Text of HB2429
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Full Text of HB2429  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/15/2023, by Rep. Will Guzzardi


35 ILCS 5/234 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for individual taxpayers who rent a dwelling in Illinois for use as their principal place of residence. Provides that the credit shall be equal to 5% of the documented rental costs paid by such taxpayer during the taxable year on that dwelling. Effective immediately.

LRB103 29815 HLH 56222 b





HB2429LRB103 29815 HLH 56222 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
5adding Section 234 as follows:
6    (35 ILCS 5/234 new)
7    Sec. 234. Tax credit for residential rental payments.
8    (a) Beginning with tax years ending on or after December
931, 2023, every individual taxpayer who rents a dwelling in
10Illinois for use as the individual's principal place of
11residence shall be entitled to a tax credit equal to 5% of the
12documented rental costs paid by the taxpayer during the
13taxable year on that dwelling.
14    (b) To qualify for the credit under this Section, the
15taxpayer must meet the following requirements for the tax year
16in which the taxpayer is claiming the credit provided by this
18        (1) the taxpayer must have resided in Illinois for at
19    least 183 days;
20        (2) the taxpayer's federal adjusted gross income must
21    not exceed 200% of the poverty guidelines updated
22    periodically in the Federal Register by the United States
23    Department of Health and Human Services under the



HB2429- 2 -LRB103 29815 HLH 56222 b

1    authority of 42 U.S.C. 9902(2);
2        (3) the total rental payments on the taxpayer's
3    principal place of residence during the taxable year must
4    exceed 30% of the taxpayer's federal adjusted gross
5    income; and
6        (4) the taxpayer must not be claimed as a dependent on
7    someone else's tax return.
8    (c) The credit provided by this Section does not apply to
9an individual who rents a dwelling that is exempt from
10Illinois property taxes.
11    (d) The Department may establish by rule:
12        (1) a maximum dollar amount of the credit, which may
13    vary by regions of the State, based on fair market rents
14    determined by the U.S. Department of Housing and Urban
15    Development for purposes of the housing choice voucher
16    program;
17        (2) the requirements by which the taxpayer shall
18    document rental payments; and
19        (3) any schedules for forms necessary to meet the
20    requirements of this Section.
21    (e) In no event shall a credit under this Section reduce
22the taxpayer's liability to less than zero. If the amount of
23the credit exceeds the income tax liability for the applicable
24tax year, then the excess credit shall be refunded to the
26    (f) This Section is exempt from the provisions of Section



HB2429- 3 -LRB103 29815 HLH 56222 b

2    Section 99. Effective date. This Act takes effect upon
3becoming law.