HB4858 103RD GENERAL ASSEMBLY

LRB103 35970 HLH 66057 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4858

Introduced 2/7/2024, by Rep. Mark L. Walker

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Provides that a qualified taxpayer who has annual student loan repayment expenses is eligible for an income tax credit equal to the taxpayer's student loan repayment expenses for the taxable year, but not to exceed $3,000 per taxpayer. Effective immediately.

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 241 as follows:

(35 ILCS 5/241 new)

Sec. 241. Student loan repayment credit.

(a) For taxable years beginning on or after January 1, 2024, a qualified taxpayer may apply to the Department for a credit against the tax imposed by subsections (a) and (b) of Section 201. The amount of the credit shall be equal to the taxpayer's student loan repayment expenses for the taxable year, but not to exceed $3,000 per taxpayer in any taxable year.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) As used in this Section, "qualified taxpayer" means a taxpayer who (i) has an associate degree, a Bachelor's degree, or a graduate degree from an institution of higher education accredited by the U.S. Department of Education and (ii) has annual student loan repayment expenses.

Section 99. Effective date. This Act takes effect upon becoming law.