HB5882 EngrossedLRB099 16337 HLH 40669 b


  
1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Income Tax Act is amended  by 
5changing Section 218 as follows:
 
6    (35 ILCS 5/218)
7    Sec. 218. Credit for student-assistance contributions.
8    (a) For taxable years ending on or after December 31, 2009 
9and on or before December 30, 2025 December 30, 2020, each 
10taxpayer who, during the taxable year, makes a contribution (i) 
11to a specified individual College Savings Pool Account under 
12Section 16.5 of the State Treasurer Act or (ii) to the Illinois 
13Prepaid Tuition Trust Fund in an amount matching  a contribution 
14made in the same taxable year by an employee of the taxpayer to 
15that Account or Fund is entitled to a credit against the tax 
16imposed under subsections (a) and (b) of Section 201 in an 
17amount equal to 25% of that matching  contribution, but not to 
18exceed (i) $500  per  contributing employee per taxable year for 
19taxable years ending prior to December 31, 2016 and (ii) $1,000 
20per  contributing employee per taxable year for taxable years 
21ending on or after December 31, 2016..
22    (b) For partners, shareholders of Subchapter S 
23corporations, and owners of limited liability companies, if the 
 
 
HB5882 Engrossed- 2 -LRB099 16337 HLH 40669 b

1liability company is treated as a partnership for purposes of 
2federal and State income taxation, there is allowed a credit 
3under this Section to be determined in accordance with the 
4determination of income and distributive share of income under 
5Sections 702 and 704 and Subchapter S of the Internal Revenue 
6Code.
7    (c) The credit may not be carried back.   If the amount of 
8the credit exceeds the tax liability for the year, the excess 
9may be carried forward and applied to the tax liability of the 
105 taxable years following the excess credit year. The tax 
11credit shall be applied to the earliest year for which there is 
12a tax liability. If there are credits for more than one year 
13that are available to offset a liability, the earlier credit 
14shall be applied first.

15    (d) A taxpayer claiming the credit under this Section must 
16maintain and record any information that the Illinois Student 
17Assistance Commission, the Office of the State Treasurer, or 
18the Department may require regarding the matching contribution 
19for which the credit is claimed.


20(Source: P.A. 96-198, eff. 8-10-09.)