HB2637 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2637

 

Introduced 2/19/2021, by Rep. Steven Reick

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/208  from Ch. 120, par. 2-208

    Amends the Illinois Income Tax Act. Provides that, if the amount of the credit for residential real property taxes exceeds the taxpayer's liability, that amount shall be refunded if the taxpayer is 65 years or older and has a federal adjusted gross income of not more than $50,000. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.


LRB102 15741 HLH 21107 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2637LRB102 15741 HLH 21107 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 208 as follows:
 
6    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
7    (Text of Section without the changes made by P.A. 101-8,
8which did not take effect (see Section 99 of P.A. 101-8))
9    Sec. 208. Tax credit for residential real property taxes.
10Beginning with tax years ending on or after December 31, 1991,
11every individual taxpayer shall be entitled to a tax credit
12equal to 5% of real property taxes paid by such taxpayer during
13the taxable year on the principal residence of the taxpayer.
14In the case of multi-unit or multi-use structures and farm
15dwellings, the taxes on the taxpayer's principal residence
16shall be that portion of the total taxes which is attributable
17to such principal residence. Notwithstanding any other
18provision of law, for taxable years beginning on or after
19January 1, 2017, no taxpayer may claim a credit under this
20Section if the taxpayer's adjusted gross income for the
21taxable year exceeds (i) $500,000, in the case of spouses
22filing a joint federal tax return, or (ii) $250,000, in the
23case of all other taxpayers. This Section is exempt from the

 

 

HB2637- 2 -LRB102 15741 HLH 21107 b

1provisions of Section 250.
2    For taxable years beginning on or after January 1, 2021,
3if the amount of the credit exceeds the taxpayer's income tax
4liability for the applicable tax year, then the excess credit
5shall be refunded to the taxpayer if (i) the taxpayer is 65
6years old or older and (ii) has a federal adjusted gross income
7not greater than $50,000. The amount of a refund shall not be
8included in the taxpayer's income or resources for the
9purposes of determining eligibility or benefit level in any
10means-tested benefit program administered by a governmental
11entity unless required by federal law.
12(Source: P.A. 100-22, eff. 7-6-17.)
 
13    (Text of Section with the changes made by P.A. 101-8,
14which did not take effect (see Section 99 of P.A. 101-8))
15    Sec. 208. Tax credit for residential real property taxes.
16Beginning with For tax years ending on or after December 31,
171991 and ending prior to December 31, 2021, every individual
18taxpayer shall be entitled to a tax credit equal to 5% of real
19property taxes paid by such taxpayer during the taxable year
20on the principal residence of the taxpayer. For tax years
21ending on or after December 31, 2021, every individual
22taxpayer shall be entitled to a tax credit equal to 6% of real
23property taxes paid by such taxpayer during the taxable year
24on the principal residence of the taxpayer. In the case of
25multi-unit or multi-use structures and farm dwellings, the

 

 

HB2637- 3 -LRB102 15741 HLH 21107 b

1taxes on the taxpayer's principal residence shall be that
2portion of the total taxes which is attributable to such
3principal residence. Notwithstanding any other provision of
4law, for taxable years beginning on or after January 1, 2017,
5no taxpayer may claim a credit under this Section if the
6taxpayer's adjusted gross income for the taxable year exceeds
7(i) $500,000, in the case of spouses filing a joint federal tax
8return, or (ii) $250,000, in the case of all other taxpayers.
9This Section is exempt from the provisions of Section 250.
10This Section is exempt from the provisions of Section 250.
11    For taxable years beginning on or after January 1, 2021,
12if the amount of the credit exceeds the taxpayer's income tax
13liability for the applicable tax year, then the excess credit
14shall be refunded to the taxpayer if (i) the taxpayer is 65
15years old or older and (ii) has a federal adjusted gross income
16not greater than $50,000. The amount of a refund shall not be
17included in the taxpayer's income or resources for the
18purposes of determining eligibility or benefit level in any
19means-tested benefit program administered by a governmental
20entity unless required by federal law.
21(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
22effective date.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.