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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB3204
Introduced 11/30/2006, by Sen. Martin A. Sandoval SYNOPSIS AS INTRODUCED:
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Amends the Illinois Income Tax Act. Increases the amount of the earned income tax credit from 5% to 25% of the amount of the federal tax credit.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB3204 |
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LRB094 22077 BDD 60688 b |
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| AN ACT concerning revenue.
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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 |
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| changing Section 212 as follows:
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| (35 ILCS 5/212)
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| Sec. 212. Earned income tax credit.
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| (a) With respect to the federal earned income tax credit |
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| allowed for the
taxable year under Section 32 of the federal |
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| Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer |
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| is entitled to a credit against the tax imposed by
subsections |
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| (a) and (b) of Section 201 in an amount equal to: (i)
5% of the |
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| federal tax credit for each taxable year beginning on or after
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| January 1,
2000 and ending on or before December 30, 2007; and |
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| (ii) 25% of the federal tax credit for each taxable year ending |
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| on or after December 31, 2007.
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| For a non-resident or part-year resident, the amount of the |
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| credit under this
Section shall be in proportion to the amount |
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| of income attributable to this
State.
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| (b) For taxable years beginning before January 1, 2003, in |
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| no event
shall a credit under this Section reduce the |
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| taxpayer's
liability to less than zero. For each taxable year |
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| beginning on or after
January 1, 2003, if the amount of the |
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| credit exceeds the income tax liability
for the applicable tax |
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| year, then the excess credit shall be refunded to the
taxpayer. |
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| The amount of a refund shall not be included in the taxpayer's
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| income or resources for the purposes of determining eligibility |
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| or benefit
level in any means-tested benefit program |
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| administered by a governmental entity
unless required by |
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| federal law.
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| (b-5) Refunds authorized by subsection (b) are subject to |
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| the
availability of funds
from the federal Temporary Assistance |