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| 1 | AN ACT concerning revenue.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Income Tax Act is amended by | ||||||
| 5 | changing Section 212 as follows: | ||||||
| 6 | (35 ILCS 5/212)
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| 7 | Sec. 212. Earned income tax credit.
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| 8 | (a) With respect to the federal earned income tax credit | ||||||
| 9 | allowed for the
taxable year under Section 32 of the federal | ||||||
| 10 | Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | ||||||
| 11 | is entitled to a credit against the tax imposed by
subsections | ||||||
| 12 | (a) and (b) of Section 201 in an amount equal to the following:
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| 13 | (1) for each taxable year beginning on or after January | ||||||
| 14 | 1, 2000 and ending before or during calendar year 2006, the | ||||||
| 15 | amount of the credit is
5% of the federal tax credit;
for | ||||||
| 16 | each taxable year beginning on or after
January 1,
2000 | ||||||
| 17 | (2) for any taxable year ending during calendar year | ||||||
| 18 | 2007, the amount of the credit is 7.5% of the federal tax | ||||||
| 19 | credit; and | ||||||
| 20 | (3) for any taxable year ending during calendar year | ||||||
| 21 | 2008 or thereafter, the amount of the credit is 10% of the | ||||||
| 22 | federal tax credit.
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| 23 | For a non-resident or part-year resident, the amount of the | ||||||
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| 1 | credit under this
Section shall be in proportion to the amount | ||||||
| 2 | of income attributable to this
State.
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| 3 | (b) For taxable years beginning before January 1, 2003, in | ||||||
| 4 | no event
shall a credit under this Section reduce the | ||||||
| 5 | taxpayer's
liability to less than zero. For each taxable year | ||||||
| 6 | beginning on or after
January 1, 2003, if the amount of the | ||||||
| 7 | credit exceeds the income tax liability
for the applicable tax | ||||||
| 8 | year, then the excess credit shall be refunded to the
taxpayer. | ||||||
| 9 | The amount of a refund shall not be included in the taxpayer's
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| 10 | income or resources for the purposes of determining eligibility | ||||||
| 11 | or benefit
level in any means-tested benefit program | ||||||
| 12 | administered by a governmental entity
unless required by | ||||||
| 13 | federal law.
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| 14 | (b-5) Refunds authorized by subsection (b) are subject to | ||||||
| 15 | the
availability of funds
from the federal Temporary Assistance | ||||||
| 16 | for Needy Families Block Grant and the
State's
ability to meet | ||||||
| 17 | its required Maintenance of Effort.
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| 18 | (c) This Section is exempt from the provisions of Section | ||||||
| 19 | 250.
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| 20 | (Source: P.A. 93-534, eff. 8-18-03; 93-653, eff. 1-8-04.)
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| 21 | Section 99. Effective date. This Act takes effect upon | ||||||
| 22 | becoming law.
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