093_SB0420

 
                                     LRB093 07335 SJM 07497 b

 1        AN ACT in relation to taxes.

 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
 5    adding Section 215 as follows:

 6        (35 ILCS 5/215 new)
 7        Sec. 215. Teacher tax credit.
 8        (a)  The  Legislature  finds  and  declares  all  of  the
 9    following:
10             (1)  Roughly 50% of teachers leave the profession by
11        their fifth year of teaching.
12             (2)  It  is  the  intent  of  the   Legislature   to
13        encourage   teachers  to  remain  in  the  profession  by
14        providing a tax benefit.
15             (3)  This  tax  credit  is  designed  to   encourage
16        teacher   retention   and   to  compensate  teachers  for
17        unreimbursed expenses related to professional development
18        and  classroom  instruction,  such   as   materials   and
19        supplies.
20        (b)  In this Section:
21        "Teacher"  means  a  person  employed in an instructional
22    position at a qualifying school.
23        "Qualifying  school"  means  either   (i)   a   nonprofit
24    elementary  or  secondary  school  in  Illinois, other than a
25    public school, that is in compliance with  Title  VI  of  the
26    Civil  Rights  Act  of 1964 and attendance at which satisfies
27    the requirements of Section 26-1 of the School Code or (ii) a
28    public elementary or secondary school.
29        (c)  Beginning with tax years ending on or after December
30    31, 2003 and ending  with  tax  years  ending  on  or  before
31    December  31, 2007, each individual taxpayer who is a teacher
 
                            -2-      LRB093 07335 SJM 07497 b
 1    is entitled  to  a  credit  against  the  tax  imposed  under
 2    subsections  (a)  and  (b)  of  Section 201 of this Act in an
 3    amount equal to the amount determined in this subsection.  In
 4    the case of a teacher who has, as of  the  last  day  of  the
 5    taxable year:
 6             (i)  completed  not  less than 4 and not more than 6
 7        years of service as a teacher at a qualifying school, the
 8        credit shall be $250;
 9             (ii)  completed not less than 6 but not more than 11
10        years of service as a teacher at a qualifying school, the
11        credit shall $500;
12             (iii)  completed not less than 11 but not more  than
13        20  years of service as a teacher at a qualifying school,
14        the credit shall be $1,000; and
15             (iv)  completed 20 or more years  of  service  as  a
16        teacher  at  a  qualifying  school,  the  credit shall be
17        $1,500.
18        For purposes of determining years of  service,  only  the
19    years  of  services  at  a  qualifying  school  as defined in
20    subsection (b) may be counted.
21        (d)  The credit may not reduce the  taxpayer's  liability
22    under this Act to less than zero.  A credit that is unused in
23    the  year  the credit is available may not be carried forward
24    and applied to the tax liability of taxable  years  following
25    the excess credit year.

26        Section  99.  Effective date.  This Act takes effect upon
27    becoming law.