93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2540


 
Introduced 2/3/2004, by Kimberly A. Lightford
 
SYNOPSIS AS INTRODUCED:
 		












35 ILCS 5/216 new











    Amends the Illinois Income Tax Act.  Allows taxpayers who are
teachers at qualifying schools to take a credit against the taxpayer's income
tax.  The amount of the
credit ranges from $250 to $1,500 depending upon the years of services as a
teacher at a qualifying school.  Provides that the
credit may not reduce a taxpayer's tax liability to less than zero.  Provides
that unused credits may not be carried forward.  Effective immediately.



















LRB093 20745 SJM 46636 b




















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 














SB2540

LRB093 20745 SJM 46636 b









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    AN ACT in relation to taxes. 

 
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    Be it enacted by the People of the State of Illinois, 
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represented in the General Assembly: 


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


 
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    (35 ILCS 5/216 new)

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    Sec. 216. Teacher tax credit. 

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    (a) The Legislature finds and declares all of the

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following:

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        (1) Roughly 50% of teachers leave the profession by 
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    their
fifth year of teaching.

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        (2) It is the intent of the General Assembly to 
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    encourage teachers to
remain in the profession by providing 
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    a tax benefit.

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        (3) This tax credit is designed to encourage teacher 
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    retention and
to compensate teachers for unreimbursed 
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    expenses related to
professional development and classroom 
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    instruction, such as materials
and supplies.

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    (b) In this Section:

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    "Teacher" means a person employed in an instructional 
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position
at a qualifying school.

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    "Qualifying school" means either (i) a
nonprofit

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elementary or secondary school in Illinois, other than a public 
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school, that
is in compliance with Title VI of the Civil Rights 
25
Act of 1964 and attendance
at which satisfies the requirements 
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of Section 26-1 of the School Code or (ii)
a
public elementary 
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or secondary school.

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    (c) Beginning with tax years ending on or after December 
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31, 2004 and
ending with tax years ending on or before December 
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31, 2008, each individual
taxpayer who is a teacher is entitled 
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to a credit against the tax
imposed under subsections (a) and 
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(b) of Section 201 of this Act in an amount
equal to the amount 
 


 









SB2540
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LRB093 20745 SJM 46636 b







1
determined in this subsection.  In the case of a
teacher who 
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has, as of the last day of the taxable year:

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        (i) completed not less than 4 and not more than 6 years 
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    of service as
a teacher at a qualifying school, the credit 
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    shall be $250;

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        (ii) completed not less than 6
but not more than 11 
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    years of service as a teacher at a qualifying school, the

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    credit
shall $500;

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        (iii) completed not less than 11 but not more than 20 
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    years of
service as a teacher at a qualifying school, the 
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    credit shall be $1,000; and

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        (iv) completed
20 or more years of service as a teacher 
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    at a qualifying school, the credit
shall be $1,500.

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    For purposes of determining years of service, only the 
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years of
services at a qualifying school as defined in 
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subsection (b)
may be counted.

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    (d) The credit may not reduce the taxpayer's liability 
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under this Act
to less than zero.  A credit that is unused in 
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the year the credit is
available may not be carried forward and 
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applied to the tax liability of
taxable years following the 
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excess credit year.


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