HB1323 95TH GENERAL ASSEMBLY

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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1323

Introduced 2/20/2007, by Rep. Mary E. Flowers

SYNOPSIS AS INTRODUCED:

35 ILCS 5/218 new

Amends the Illinois Income Tax Act. Creates a tax credit for individuals who are assistant state's attorneys, assistant attorneys general, assistant public defenders, assistant public guardians, or civil legal services attorneys. Provides that the amount of the credit is an amount equal to the interest paid on the taxpayer's student loan during that year. Provides that the credit may not reduce the taxpayer's liability to less than zero. Effective immediately.

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 218 as follows:

(35 ILCS 5/218 new)

Sec. 218. Credit for interest paid on student loans by public attorneys.

(a) Purpose. The purpose of this Section is to encourage qualified individuals to enter and continue employment as assistant state's attorneys, assistant attorneys general, assistant public defenders, assistant public guardians, and civil legal services attorneys.

(b) Definitions. In this Section:

(1) "Assistant state's attorney" means a full-time employee of a state's attorney who:

(A) is continually licensed to practice law; and

(B) prosecutes or defends cases on behalf of the State or a county.

(2) "Assistant attorney general" means a full-time employee of the Illinois Attorney General who:

(A) is continually licensed to practice law; and

(B) prosecutes or defends cases on behalf of the State.

(3)"Assistant public defender" a means a full-time employee of a public defender who:

(A) is continually licensed to practice law; and

(B) provides legal representation to indigent persons, as provided by statute.

(4) "Assistant public guardian" a means a full-time employee of a public guardian who:

(A) is continually licensed to practice law; and

(B) provides legal representation pursuant to court appointment.

(5) "Civil legal services attorney" means a full-time employee of a qualified civil legal services provider who:

(A) is continually licensed to practice law; and

(B) provides legal representation to indigent persons.

(6) "Qualified civil legal services provider" means a civil legal services provider that:

(A) makes financial eligibility determinations before providing civil legal services;

(B) has demonstrated its commitment to the provision of high quality civil legal services to clients and has operated for at least 2 years;

(C) received and expended cash funds in Illinois in the previous fiscal year in the amount of at least $200,000 for the provision of civil legal services; and

(D) meets all the qualifications set out in Section 10 of the Illinois Equal Justice Act.

(7) The term "student loan" means:

(A) a loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.);

(B) a loan made under part D or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq. and 1087aa et seq.); or

(C) a loan made under section 428C or 455(g) of the Higher Education Act of 1965 (20 U.S.C. 1078-3 and 1087e(g)) to the extent that such loan was used to repay a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan made under section 428 or 428H of such Act.

(c) For each taxable year beginning on or after January 1, 2008, each individual taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of section 201 of this Act in an amount equal to the interest paid on the taxpayer's student loan during that year, provided the individual:

(1) is employed as assistant state's attorney, assistant attorney general, assistant public defender, assistant public guardian or a civil legal services attorneys during the entire taxable year; and

(2) is not in default on a loan for which the borrower seeks forgiveness.

(d) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.

(e) If, in any taxable year, pursuant to a federal law enacted on or after February 1, 2007, a taxpayer receives assistance from the federal government in retiring the student loan, the amount of the tax credit for that year shall be reduced by the amount of the federal assistance received in that year.

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