Illinois General Assembly - Full Text of SB1245
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Full Text of SB1245  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/2/2023, by Sen. Jil Tracy


35 ILCS 5/224
35 ILCS 40/65

    Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2024). Effective immediately.

LRB103 25121 HLH 55856 b





SB1245LRB103 25121 HLH 55856 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 224 as follows:
6    (35 ILCS 5/224)
7    Sec. 224. Invest in Kids credit.
8    (a) For taxable years beginning on or after January 1,
92018 and ending before January 1, 2024, each taxpayer for whom
10a tax credit has been awarded by the Department under the
11Invest in Kids Act is entitled to a credit against the tax
12imposed under subsections (a) and (b) of Section 201 of this
13Act in an amount equal to the amount awarded under the Invest
14in Kids Act.
15    (b) For partners, shareholders of subchapter S
16corporations, and owners of limited liability companies, if
17the liability company is treated as a partnership for purposes
18of federal and State income taxation, the credit under this
19Section shall be determined in accordance with the
20determination of income and distributive share of income under
21Sections 702 and 704 and subchapter S of the Internal Revenue
23    (c) The credit may not be carried back and may not reduce



SB1245- 2 -LRB103 25121 HLH 55856 b

1the taxpayer's liability to less than zero. If the amount of
2the credit exceeds the tax liability for the year, the excess
3may be carried forward and applied to the tax liability of the
45 taxable years following the excess credit year. The tax
5credit shall be applied to the earliest year for which there is
6a tax liability. If there are credits for more than one year
7that are available to offset the liability, the earlier credit
8shall be applied first.
9    (d) A tax credit awarded by the Department under the
10Invest in Kids Act may not be claimed for any qualified
11contribution for which the taxpayer claims a federal income
12tax deduction.
13    (e) This Section is exempt from the provisions of Section
15(Source: P.A. 102-699, eff. 4-19-22.)
16    Section 10. The Invest in Kids Act is amended by changing
17Section 65 as follows:
18    (35 ILCS 40/65)
19    (Section scheduled to be repealed on January 1, 2025)
20    Sec. 65. Credit period; repeal.
21    (a) A taxpayer may take a credit under this Act for tax
22years beginning on or after January 1, 2018 and ending before
23January 1, 2024. A taxpayer may not take a credit pursuant to
24this Act for tax years beginning on or after January 1, 2024.



SB1245- 3 -LRB103 25121 HLH 55856 b

1    (b) This Act is exempt from the provisions of Section 250
2of the Illinois Income Tax Act repealed on January 1, 2025.
3(Source: P.A. 102-16, eff. 6-17-21.)
4    Section 99. Effective date. This Act takes effect upon
5becoming law.