(110 ILCS 920/7) (from Ch. 144, par. 2407)
Sec. 7.
Exemption from taxation.
As provided in this Act, the
issuance of College Savings Bonds is in all respects for the benefit of the
People of the State of Illinois, the conduct and increase of their
commerce, the protection and enhancement of their welfare, the development
of continued prosperity and the improvement of their health and living
conditions and the issuance of such Bonds is for public purposes. In
consideration thereof, College Savings Bonds issued under the General
Obligation Bond Act in accordance with this Act and the income derived
therefrom shall be free from all taxation by the State or its political
subdivisions, except for estate, transfer and inheritance taxes.
For purposes of Section 250 of the Illinois Income Tax Act, the exemption
of the income from College Savings Bonds issued in accordance with this Act
shall terminate after all of the bonds have been paid.
The amount of such income that shall be added and then subtracted on the
Illinois income tax return of a taxpayer, pursuant to Section 203 of the
Illinois Income Tax Act, from federal adjusted gross income or federal taxable
income in computing Illinois base income shall be the interest net of any bond
premium amortization.
(Source: P.A. 89-460, eff. 5-24-96.)
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