Public Act 93-0653
SB1935 Enrolled LRB093 08833 RCE 09065 b
AN ACT in relation to taxes.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1
Section 1-1. Earned income tax credit; continuation;
validation.
(a) The General Assembly finds and declares:
(1) Section 212 of the Illinois Income Tax Act
provided for its repeal on June 1, 2003.
(2) Senate Bill 4 of the 93rd General Assembly,
among other things, deleted the language of Section 212
repealing that Section on June 1, 2003. Senate Bill 4
passed both houses of the General Assembly on May 31,
2003. Senate Bill 4 was approved by the Governor on
August 18, 2003 and took effect on that date as Public
Act 93-534. It was the intention of the General Assembly
in passing Senate Bill 4 that Section 212 of the Illinois
Income Tax Act not be repealed.
(3) The Statute on Statutes sets forth general
rules on the repeal of statutes, but Section 1 of that
Act also states that these rules will not be observed
when the result would be "inconsistent with the manifest
intent of the General Assembly or repugnant to the
context of the statute".
(4) The actions of the General Assembly clearly
manifest the intention of the General Assembly not to
repeal Section 212 of the Illinois Income Tax Act. Any
construction of Public Act 93-534 that results in the
repeal of Section 212 of the Illinois Income Tax Act on
June 1, 2003 would be inconsistent with the manifest
intent of the General Assembly.
(b) It is hereby declared to have been the intent of the
General Assembly, in enacting Public Act 93-534, that Section
212 of the Illinois Income Tax Act be changed to, among other
things, eliminate its repeal and that it not be subject to
repeal on June 1, 2003.
(c) Section 212 of the Illinois Income Tax Act is deemed
to have been in continuous effect since its original
effective date, and it shall continue to be in effect until
it is otherwise repealed.
(d) All otherwise lawful actions taken in reliance on or
pursuant to Section 212 of the Illinois Income Tax Act before
the effective date of this amendatory Act of the 93rd General
Assembly by any officer or agency of State government or any
other person or entity are validated.
(e) To ensure the continuing effectiveness of Section
212 of the Illinois Income Tax Act, it is set forth in full
and re-enacted by this Act. This re-enactment is intended as
a continuation of Section 212 of the Illinois Income Tax Act.
(f) This Article applies to all claims, actions,
proceedings, and returns pending on or filed on, before, or
after the effective date of this Act.
Section 1-5. The Illinois Income Tax Act is amended by
re-enacting Section 212 as follows:
(35 ILCS 5/212)
Sec. 212. Earned income tax credit.
(a) With respect to the federal earned income tax credit
allowed for the taxable year under Section 32 of the federal
Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
is entitled to a credit against the tax imposed by
subsections (a) and (b) of Section 201 in an amount equal to
5% of the federal tax credit for each taxable year beginning
on or after January 1, 2000.
For a non-resident or part-year resident, the amount of
the credit under this Section shall be in proportion to the
amount of income attributable to this State.
(b) For taxable years beginning before January 1, 2003,
in no event shall a credit under this Section reduce the
taxpayer's liability to less than zero. For each taxable
year beginning on or after January 1, 2003, if the amount of
the credit exceeds the income tax liability for the
applicable tax year, then the excess credit shall be refunded
to the taxpayer. The amount of a refund shall not be
included in the taxpayer's income or resources for the
purposes of determining eligibility or benefit level in any
means-tested benefit program administered by a governmental
entity unless required by federal law.
(b-5) Refunds authorized by subsection (b) are subject
to the availability of funds from the federal Temporary
Assistance for Needy Families Block Grant and the State's
ability to meet its required Maintenance of Effort.
(c) This Section is exempt from the provisions of
Section 250.
(Source: P.A. 93-534, eff. 8-18-03.)
ARTICLE 2
Section 2-1. The State Finance Act is amended by adding
Section 8.27a as follows:
(30 ILCS 105/8.27a new)
Sec. 8.27a. TANF funds; earned income tax credit. Funds
from the federal Temporary Assistance for Needy Families
block grant under Title IV-A of the federal Social Security
Act designated by the Illinois Department of Human Services
as reimbursement for expenditures made by the Illinois
Department of Revenue for the refundable portion of the
earned income tax credit shall be deposited into the Income
Tax Refund Fund. Such deposits shall be made as needed on
approximately the fifteenth calendar day of each month.
ARTICLE 99
Section 99-99. Effective date. This Act takes effect
upon becoming law.