SB1145sam001 102ND GENERAL ASSEMBLY

Sen. Laura M. Murphy

Filed: 3/2/2022

10200SB1145sam001 LRB102 04961 HLH 36884 a

AMENDMENT TO SENATE BILL 1145

AMENDMENT NO. ______. Amend Senate Bill 1145 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Income Tax Act is amended by adding Section 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. College tuition expense credit.

(a) For taxable years beginning on or after January 1, 2023, a taxpayer who may claim one or more qualifying students as a dependent, or a taxpayer who is a qualifying student and is not claimed as a dependent by any other taxpayer, shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to the lesser of: (1) the qualified tuition and fee expenses paid by the taxpayer during the taxable year on behalf of the qualifying student or students; or (2) the maximum credit amount.

(b) The maximum credit amount under this Section is:

(1) $1,000 if the taxpayer's federal adjusted gross income is more than 6 times the federal poverty level but not more than 7 times the federal poverty level;

(2) $750 if the taxpayer's federal adjusted gross income is more than 7 times the federal poverty level but not more than 9 times the federal poverty level; and

(3) $500 if the taxpayer's federal adjusted gross income is more than 9 times the federal poverty level but not more than 11 times the federal poverty level.

(c) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for 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 liability, the earlier credit shall be applied first.

(d) For the purpose of this Section:

"Federal poverty level" means the federal poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services, reported as of the last day of the taxable year for which the credit under this Section is claimed.

"Qualifying university" means any public university that is physically located in the State and is eligible to participate in a student loan program administered by the United States Department of Education.

"Qualifying student" means an individual who (i) is a resident of the State, (ii) is under the age of 24 at the close of the school year for which a credit is sought, and (iii) during the school year for which a credit is sought, is a full-time student enrolled in a program at a qualifying university at which the student is enrolled.

"Qualified tuition and fee expense" means the amount incurred on behalf of a qualifying student for tuition, book fees, and lab fees at the qualifying university at which the student is enrolled.

(e) Notwithstanding any other provision of law, no taxpayer may claim a credit under this Section if the taxpayer's federal adjusted gross income for the taxable year is less than or equal to 6 times the federal poverty level or more than 11 times the federal poverty level.

(f) This Section is exempt from the provisions of Section 250.

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