HB5194 103RD GENERAL ASSEMBLY

LRB103 38379 HLH 68514 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5194

Introduced 2/9/2024, by Rep. Brad Halbrook

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Creates an income tax credit for each qualified individual who serves as a volunteer first responder for at least 9 months during the taxable year and who incurs expenses for the purchase of eligible equipment that is used by the individual when training as a volunteer first responder or incurs any other training expenses associated with the individual's service as a volunteer first responder. 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. First responder training expense tax credit.

(a) For taxable years beginning on or after January 1, 2025, each qualified individual who serves as a volunteer first responder for at least 9 months during the taxable year and who, during the taxable year, incurs expenses for the purchase of eligible equipment that is used by the individual when training as a volunteer first responder or incurs any other training expenses associated with the individual's service as a volunteer first responder may apply to the Department for a credit against the taxes imposed by subsections (a) and (b) of Section 201 equal to the amount of those expenses, but not to exceed $1,000 per taxpayer in any taxable year. The aggregate amount of all tax credits awarded by the Department under this Section in any calendar year may not exceed $5,000,000. Credits shall be awarded on a first-come, first-served basis.

(b) A credit under this Section may not reduce a 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) By January 24 of each year, the Office of the State Fire Marshal shall provide the Department of Revenue an electronic file with the name of each volunteer first responder who qualifies for a tax credit under this Section for the immediately preceding calendar year. The chief of the fire department, fire protection district, or fire protection association shall be responsible for notifying the State Fire Marshal of the volunteer emergency workers who met the requirements of this Section during the immediately preceding calendar year by January 12 of the current year. The chief of the fire department, fire protection district, or fire protection association shall be responsible for the verification and accuracy of their submission to the State Fire Marshal under this subsection.

(d) As used in this Section:

"Eligible equipment" means equipment used to perform the job duties of a first responder, including, but not limited to, first aid kits, boots, protective gloves, protective glasses, emergency lighting, helmets, or ear plugs.

"Volunteer first responder" means a person who serves as a member, other than on a full-time career basis, of a fire department, fire protection district, or fire protection association that has a Fire Department Identification Number issued by the Office of the State Fire Marshal and who does not serve as a member, on a full-time career basis, of another fire department, fire protection district, fire protection association, or governmental entity.

(f) The Department shall adopt rules to implement and administer this Section, including rules concerning applications for the tax credit.

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

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