Public Act 095-0333
 		





SB0338 Enrolled
LRB095 06361 BDD 26457 b






    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 
changing 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; 93-653, eff. 1-8-04.)

 

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