96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4091


 
Introduced 2/27/2009, by Rep. Richard P. Myers
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/218 new










    Amends the Illinois Income Tax Act. Authorizes a credit to taxpayers for expenditures by the taxpayer during the taxable year for the purpose of paying accrued higher education debt incurred by a person employed by the taxpayer during at least 10 months of the taxable year. The amount of the credit is up to 20% of the employee's accrued higher education debt during the first year, 30% during the second year, and 50% during the third year, but not to exceed an aggregate of $10,000 per employee. Provides that the credit may not reduce the taxpayer's liability to less than zero and may not be carried back, but may be carried forward and applied to the tax liability of the 3 taxable years following the excess credit year. Exempt from the Act's sunset provisions. Effective immediately.
















LRB096 08338 RCE 18447 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4091

LRB096 08338 RCE 18447 b






1
    AN ACT concerning revenue.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The Illinois Income Tax Act is amended  by adding 
5
Section 218 as follows:
 
6
    (35 ILCS 5/218  new)
7
    Sec. 218. Credit for employee's higher education loans.
8
    (a) For each taxable year ending on or after December 31, 
9
2009, each taxpayer is entitled to a credit against the tax 
10
imposed by subsections (a) and (b) of Section 201 of this Act 
11
for expenditures by the taxpayer during the taxable year for 
12
the purpose of paying accrued higher education debt incurred by 
13
a person employed by the taxpayer during at least 10 months of 
14
the taxable year. The amount of the credit is up to 20% of the 
15
employee's accrued higher education debt during the first year, 
16
30% during the second year, and 50% during the third year, but 
17
not to exceed an aggregate of $10,000 per employee. For 
18
partners, shareholders of Subchapter S corporations, and 
19
owners of limited liability companies, if the liability company 
20
is treated as a partnership for purposes of federal and State 
21
income taxation, there shall be allowed a credit under this 
22
Section to be determined in accordance with the determination 
23
of income and distributive share of income under Sections 702 
 


 






HB4091
- 2 -
LRB096 08338 RCE 18447 b




1
and 704 and Subchapter S of the Internal Revenue Code.
2
    (b) In no event shall a credit under this Section reduce 
3
the taxpayer's liability to less than zero. If the amount of 
4
the credit exceeds the tax liability for the year, the excess 
5
may not be carried carried back, but may be carried forward and 
6
applied to the tax liability of the 3 taxable years following 
7
the excess credit year. The credit shall be applied to the 
8
earliest year for which there is a tax liability. If there are 
9
credits for more than one year that are available to offset a 
10
liability, the earlier credit shall be applied first.
11
    (c) This Section is exempt from the provisions of Section 
12
250. 
 

13
    Section 99. Effective date. This Act takes effect upon 
14
becoming law.