HB5952 95TH GENERAL ASSEMBLY

LRB095 18376 BDD 44462 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5952

Introduced , by Rep. Ruth Munson - Rosemary Mulligan

SYNOPSIS AS INTRODUCED:

35 ILCS 5/218 new

Amends the Illinois Income Tax Act. Creates a credit for individual taxpayers who pay a private health insurance premium for coverage for themselves or for a dependent. Provides that the amount of the credit is equal to the premium paid during that taxable year up to $500 per covered individual, but not to exceed $1,000 per taxable year. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero.

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. Health insurance premium credit.

(a) For taxable years ending on or after December 31, 2008 and on or before December 30, 2013, each taxpayer who, during the taxable year, pays a private health insurance premium for coverage for him or herself or for a dependent is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 in an amount equal to the premium paid during that taxable year up to $500 per covered individual. In no event, however, may the credit under this Section exceed $1,000 per taxable year.

(b) For the purposes of this Section, "private health insurance premium" means a health insurance premium to which no employer makes a contribution.

(c) The credit under this Section may not be carried forward or back and may not reduce the taxpayer's liability to less than zero.