House Sponsors: MCCARTHY-WOJCIK-CAPPARELLI-ACEVEDO-COWLISHAW, MADIGAN,MJ, BUGIELSKI, BROSNAHAN, BIGGINS, BELLOCK, LYONS,JOSEPH, GRANBERG, BRADLEY, HULTGREN AND FLOWERS. Senate Sponsors: CRONIN-DELEO-KARPIEL-DUDYCZ Short description: INC TX-EDUCATION EXPENSE CR Synopsis of Bill as introduced: Amends the Illinois Income Tax Act. Provides that beginning with tax years ending after December 31, 1998, a taxpayer who is the custodian of one or more qualified pupils shall be allowed an income tax credit equal to 25% of qualified education expenses. Provides that the credit may not exceed $500. Provides that any credit in excess of the tax liability shall be refunded to the taxpayer. Provides that the pupils must be (i) residents of Illinois, (ii) under 21 years of age at the close of the school year for which the credit is sought, and (iii) enrolled in a kindergarten through twelfth grade education program at any public or nonpublic elementary or secondary school that meets certain standards. Provides that qualified education expenses are costs in excess of $250 incurred on behalf of the pupil for tuition, book fees, and lab fees. Provides that the credit is available to the parent, parents, or legal guardian of the pupil. Exempts the credit from the sunset provisions. JUDICIAL NOTE (Administrative Office of Ill. Courts) There would be no increase or decrease in the number of judges needed. BALANCED BUDGET NOTE (Bureau of the Budget) The bill is not a supplemental appropriation; the Balanced Budget Note Act is inapplicable. STATE MANDATES NOTE (Dept. of Commerce and Community Affairs) Does not create a State mandate. FISCAL NOTE (Department of Revenue) HB999 would have an estimated fiscal impact of $50 million to $75 million. HOUSE AMENDMENT NO. 7. Provides that the tax credit is effective beginning with tax years ending on or after December 31, 2000 (now after December 31, 1998). Deletes the provision refunding an excess credit to the taxpayer. Provides that the credit may not reduce a taxpayer's liability to less than zero. HOUSE AMENDMENT NO. 8. Adds reference to: New Act Creates the Fund Education First Act. Beginning with fiscal year 2000, and in each fiscal year thereafter, provides that until the sum of State and federal spending for elementary and secondary education for the fiscal year represents 50% of the total revenues that the State Superintendent of Education estimates are available from local, State, and federal sources for elementary and secondary education for that fiscal year, the amount appropriated by the General Assembly from general funds for educational programs for that fiscal year shall be at least equal to the sum of (1) 51% of total new general funds available for spending from certain sources during that fiscal year, excluding certain State contributions to teachers' and universities' retirement funds, plus (2) the total amount appropriated from general funds for educational programs during the preceding fiscal year. Requires the Governor, beginning with fiscal year 2001, to include in his annual budget an allocation for education that conforms to the provisions of the Fund Education First Act. Effective immediately. Last action on Bill: SESSION SINE DIE Last action date: 01-01-09 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 0 END OF INQUIRY Full Text Bill Status