90th General Assembly
Summary of HB0401
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House Sponsors:
MADIGAN,MJ-ERWIN-CROTTY-PHELPS-YOUNGE, 
   BUGIELSKI, CAPPARELLI, CURRIE, CURRY,JULIE, 
   FEIGENHOLTZ, GASH, GIGLIO, GILES, GRANBERG, HARTKE, 
   HOWARD, KENNER, LANG, LOPEZ, MAUTINO, MCGUIRE, MCKEON, 
   PUGH, RONEN, SANTIAGO, SCHAKOWSKY, SCOTT, SILVA, SLONE, 
   DAVIS,MONIQUE, DART, FLOWERS, BROSNAHAN, O'BRIEN, 
   BRUNSVOLD, JONES,LOU, HANNIG, SCULLY, ACEVEDO, 
   COULSON AND SMITH,MICHAEL.

Senate Sponsors:
CRONIN-WELCH-SEVERNS-HALVORSON-LINK

Short description: 
INC TX-COLL SAVINGS-EXEMPT                                                 

Synopsis of Bill as introduced:
        Amends  the  Illinois  Income  Tax  Act.   Provides  that  higher      
   education saving accounts are  accounts  established  by  a  qualified      
   taxpayer  for  the  purpose  of  saving for eligible education related      
   expenses of the account  holder,  spouse,  or  child  associated  with      
   attending  a  public  or  private  institution  of  higher  education.      
   Provides that a qualified taxpayer shall have an annual adjusted gross      
   income  of  less than $100,000.  Provides that, beginning with taxable      
   years ending on or after December 31,  1997,  the  principal  and  the      
   income  earned  on  these  accounts  is exempt from taxation under the      
   Illinois Income Tax Act if the money  in  the  accounts  is  used  for      
   eligible education related expenses. Provides that if the principal in      
   or  any  income  earned  on money held in the higher education savings      
   account is used for any purpose other than eligible education  related      
   expenses,  that principal or income shall be subject to taxation under      
   the Illinois Income Tax Act and, in addition, the account holder shall      
   incur a penalty in an amount equal to 10% of that principal or  income      
   used  for  purposes  other  than  eligible education related expenses.      
   Provides  that  the  Department  of  Revenue  shall  promulgate  rules      
   necessary to enforce and implement  these  provisions.  Provides  that      
   these  provisions are exempt from the provisions concerning the 5-year      
   automatic sunset. Effective immediately.                                    
          FISCAL NOTE (Dept. of Revenue)                                       
          The fiscal impact of HB 401 is indeterminable.                       
          STATE MANDATES FISCAL NOTE                                           
          In the opinion of DCCA, HB 401 fails to create a State mandate.      
        HOUSE AMENDMENT NO. 1.                                                 
        Provides that "eligible education  related  expenses"  shall  not      
   include expenses incurred in purchasing a motor vehicle.                    
          FISCAL NOTE, H-am 1 (Dept. of Revenue)                               
          HB 401 fiscal impact is indeterminable.                              
 
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   0


   END OF INQUIRY 



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