HB3264 104TH GENERAL ASSEMBLY

LRB104 10927 HLH 21009 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3264

Introduced 2/18/2025, by Rep. Marcus C. Evans, Jr.

SYNOPSIS AS INTRODUCED:

35 ILCS 5/246 new

Amends the Illinois Income Tax Act. Creates an income tax credit for contributions to an ABLE account. Provides that the credit shall be in an amount equal to 25% of that matching contribution, but not to exceed $500 per contributing employee per taxable year. 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 246 as follows:

(35 ILCS 5/246 new)

Sec. 246. Credit for Illinois ABLE contributions.

(a) For taxable years ending on or after December 31, 2025 and ending before January 1, 2031, each taxpayer who, during the taxable year, makes a contribution to a specified ABLE account under Section 16.6 of the State Treasurer Act in an amount matching a contribution made in the same taxable year by an employee of the taxpayer to that account is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 in an amount equal to 25% of that matching contribution, but not to exceed $500 per contributing employee per taxable year.

(b) Partners and shareholders of subchapter S corporations are entitled to a credit under this Section as provided in Section 251.

(c) The credit may not be carried back and may not 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.

(d) A taxpayer claiming the credit under this Section must maintain and record any information that the Office of the State Treasurer or the Department may require regarding the matching contribution for which the credit is claimed.

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