SB0338 Enrolled

LRB095 06361 BDD 26457 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
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.


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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.  
 


 






SB0338 Enrolled
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LRB095 06361 BDD 26457 b




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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 
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for Needy Families Block Grant and the
State's
ability to meet 
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its required Maintenance of Effort.


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


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(Source: P.A. 93-534, eff. 8-18-03; 93-653, eff. 1-8-04.)

 

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