95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1323


 
Introduced 2/20/2007, by Rep. Mary E. Flowers
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/218 new










    Amends the Illinois Income Tax Act. Creates a tax credit for individuals who are assistant state's attorneys, assistant attorneys general, assistant public defenders, assistant public guardians, or civil legal services attorneys. Provides that the amount of the credit is an amount equal to the interest paid on the taxpayer's student loan during that year. Provides that the credit may not reduce the taxpayer's liability to less than zero. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB1323

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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 adding 
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Section 218 as follows:
 
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    (35 ILCS 5/218  new)
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    Sec. 218. Credit for interest paid on student loans by 
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public attorneys.
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    (a) Purpose. The purpose of this Section is to encourage 
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qualified individuals to enter and continue employment as 
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assistant state's attorneys, assistant attorneys general, 
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assistant public defenders, assistant public guardians, and 
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civil legal services attorneys.
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    (b) Definitions. In this Section:
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        (1) "Assistant state's attorney" means a full-time 
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    employee of a state's attorney who:
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            (A) is continually licensed to practice law; and
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            (B) prosecutes or defends cases on behalf of the 
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        State or a county.
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        (2) "Assistant attorney general" means a full-time 
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    employee of the Illinois Attorney General who:
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            (A) is continually licensed to practice law; and
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            (B) prosecutes or defends cases on behalf of the 
 


 






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        State.
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        (3)"Assistant public defender" a means a full-time 
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    employee of a public defender who:
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            (A) is continually licensed to practice law; and
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            (B) provides legal representation to indigent 
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        persons, as provided by statute.
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        (4) "Assistant public guardian" a means a full-time 
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    employee of a public guardian who:
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            (A) is continually licensed to practice law; and
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            (B) provides legal representation pursuant to 
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        court appointment.
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        (5) "Civil legal services attorney" means a full-time 
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    employee of a qualified civil legal services provider who:
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            (A) is continually licensed to practice law; and
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            (B) provides legal representation to indigent 
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        persons.
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        (6) "Qualified civil legal services provider" means a 
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    civil legal services provider that:
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            (A) makes financial eligibility determinations 
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        before providing civil legal services;
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            (B) has demonstrated its commitment to the 
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        provision of high quality civil legal services to 
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        clients and has operated for at least 2 years;
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            (C) received and expended cash funds in Illinois in 
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        the previous fiscal year in the amount of at least 
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        $200,000 for the provision of civil legal services; and
 


 






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            (D) meets all the qualifications set out in Section 
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        10 of the Illinois Equal Justice Act.
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        (7) The term "student loan" means:
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            (A) a loan made, insured, or guaranteed under part 
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        B of title IV of the Higher Education Act of 1965 (20 
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        U.S.C. 1071 et seq.);
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            (B) a loan made under part D or E of title IV of 
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        the Higher Education Act of 1965 (20 U.S.C. 1087a et 
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        seq. and 1087aa et seq.); or
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            (C) a loan made under section 428C or 455(g) of the 
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        Higher Education Act of
1965 (20 U.S.C. 1078-3 and 
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        1087e(g)) to the extent that such loan was used to

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        repay a Federal Direct Stafford Loan, a Federal Direct 
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        Unsubsidized Stafford
Loan, or a loan made under 
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        section 428 or 428H of such Act.
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    (c) For each taxable year beginning on or after January 1, 
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2008, each individual taxpayer is entitled to a credit against 
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the tax imposed by subsections (a) and (b) of section 201 of 
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this Act in an amount equal to the interest paid on the 
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taxpayer's student loan during that year, provided the 
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individual:
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        (1) is employed as assistant state's attorney, 
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    assistant attorney general, assistant public defender, 
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    assistant public guardian or a civil legal services 
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    attorneys during the entire taxable year; and
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        (2) is not in default on a loan for which the borrower 
 


 






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    seeks forgiveness.
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    (d) In no event shall a credit under this Section reduce 
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the taxpayer's liability to less than zero.
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    (e) If, in any taxable year, pursuant to a federal law 
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enacted on or after February 1, 2007, a taxpayer receives 
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assistance from the federal government in retiring the student 
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loan, the amount of the tax credit for that year shall be 
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reduced by the amount of the federal assistance received in 
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that year.
 

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