SB0178 104TH GENERAL ASSEMBLY

LRB104 07331 HLH 17371 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB0178

Introduced 1/17/2025, by Sen. Laura M. Murphy

SYNOPSIS AS INTRODUCED:

35 ILCS 5/235 new

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the amount paid by the taxpayer during the taxable year for the purpose of purchasing materials, labor, and professional services to soundproof a residential home located at an eligible address against aircraft noise generated by an airport governed by the provisions of the Permanent Noise Monitoring Act. Provides that the credit may not reduce the taxpayer's liability to less than zero. Provides that the credit may be carried forward. Provides that the credit is exempt from the Act's automatic sunset provisions. 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 235 as follows:

(35 ILCS 5/235 new)

Sec. 235. Credit for soundproofing of residential homes.

(a) For taxable years ending on or after December 31, 2025, each taxpayer is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 in an amount equal to the amount paid by the taxpayer during the taxable year for the purpose of purchasing materials, labor, and professional services to soundproof a residential home located at an eligible address against aircraft noise generated by an airport governed by the provisions of the Permanent Noise Monitoring Act. In order to be eligible for the credit under this Section, the soundproofing work must be carried out in accordance with the requirements of the Illinois Residential Building Code Act.

(b) 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.

(c) As used in this Section, "eligible address" means any address located (i) within the 65 DNL Build-out Contour for O'Hare International Airport, as defined by rules adopted by the Federal Aviation Administration, (ii) within an alternative 65 CNEL Build-out Contour for O'Hare International Airport, with annual CNEL units as defined in subsection (a-3) of Section 5 of the Permanent Noise Monitoring Act, or (iii) not more than 20 miles east or west and not more than 3 miles north or south of an airport runway aligned in an east-west direction and located at O'Hare International Airport.

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

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