SB1437 EnrolledLRB100 11168 HLH 21464 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 204 as follows:
 
6    (35 ILCS 5/204)  (from Ch. 120, par. 2-204)
7    Sec. 204. Standard exemption.
8    (a) Allowance of exemption. In computing net income under
9this Act, there shall be allowed as an exemption the sum of the
10amounts determined under subsections (b), (c) and (d),
11multiplied by a fraction the numerator of which is the amount
12of the taxpayer's base income allocable to this State for the
13taxable year and the denominator of which is the taxpayer's
14total base income for the taxable year.
15    (b) Basic amount. For the purpose of subsection (a) of this
16Section, except as provided by subsection (a) of Section 205
17and in this subsection, each taxpayer shall be allowed a basic
18amount of $1000, except that for corporations the basic amount
19shall be zero for tax years ending on or after December 31,
202003, and for individuals the basic amount shall be:
21        (1) for taxable years ending on or after December 31,
22    1998 and prior to December 31, 1999, $1,300;
23        (2) for taxable years ending on or after December 31,

 

 

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1    1999 and prior to December 31, 2000, $1,650;
2        (3) for taxable years ending on or after December 31,
3    2000 and prior to December 31, 2012, $2,000;
4        (4) for taxable years ending on or after December 31,
5    2012 and prior to December 31, 2013, $2,050;
6        (5) for taxable years ending on or after December 31,
7    2013 and on or before December 31, 2023, $2,050 plus the
8    cost-of-living adjustment under subsection (d-5).
9For taxable years ending on or after December 31, 1992, a
10taxpayer whose Illinois base income exceeds the basic amount
11and who is claimed as a dependent on another person's tax
12return under the Internal Revenue Code shall not be allowed any
13basic amount under this subsection.
14    (c) Additional amount for individuals. In the case of an
15individual taxpayer, there shall be allowed for the purpose of
16subsection (a), in addition to the basic amount provided by
17subsection (b), an additional exemption equal to the basic
18amount for each exemption in excess of one allowable to such
19individual taxpayer for the taxable year under Section 151 of
20the Internal Revenue Code.
21    (d) Additional exemptions for an individual taxpayer and
22his or her spouse. In the case of an individual taxpayer and
23his or her spouse, he or she shall each be allowed additional
24exemptions as follows:
25        (1) Additional exemption for taxpayer or spouse 65
26    years of age or older.

 

 

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1            (A) For taxpayer. An additional exemption of
2        $1,000 for the taxpayer if he or she has attained the
3        age of 65 before the end of the taxable year.
4            (B) For spouse when a joint return is not filed. An
5        additional exemption of $1,000 for the spouse of the
6        taxpayer if a joint return is not made by the taxpayer
7        and his spouse, and if the spouse has attained the age
8        of 65 before the end of such taxable year, and, for the
9        calendar year in which the taxable year of the taxpayer
10        begins, has no gross income and is not the dependent of
11        another taxpayer.
12        (2) Additional exemption for blindness of taxpayer or
13    spouse.
14            (A) For taxpayer. An additional exemption of
15        $1,000 for the taxpayer if he or she is blind at the
16        end of the taxable year.
17            (B) For spouse when a joint return is not filed. An
18        additional exemption of $1,000 for the spouse of the
19        taxpayer if a separate return is made by the taxpayer,
20        and if the spouse is blind and, for the calendar year
21        in which the taxable year of the taxpayer begins, has
22        no gross income and is not the dependent of another
23        taxpayer. For purposes of this paragraph, the
24        determination of whether the spouse is blind shall be
25        made as of the end of the taxable year of the taxpayer;
26        except that if the spouse dies during such taxable year

 

 

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1        such determination shall be made as of the time of such
2        death.
3            (C) Blindness defined. For purposes of this
4        subsection, an individual is blind only if his or her
5        central visual acuity does not exceed 20/200 in the
6        better eye with correcting lenses, or if his or her
7        visual acuity is greater than 20/200 but is accompanied
8        by a limitation in the fields of vision such that the
9        widest diameter of the visual fields subtends an angle
10        no greater than 20 degrees.
11    (d-5) Cost-of-living adjustment. For purposes of item (5)
12of subsection (b), the cost-of-living adjustment for any
13calendar year and for taxable years ending prior to the end of
14the subsequent calendar year is equal to $2,050 times the
15percentage (if any) by which:
16        (1) the Consumer Price Index for the preceding calendar
17    year, exceeds
18        (2) the Consumer Price Index for the calendar year
19    2011.
20    The Consumer Price Index for any calendar year is the
21average of the Consumer Price Index as of the close of the
2212-month period ending on August 31 of that calendar year.
23    The term "Consumer Price Index" means the last Consumer
24Price Index for All Urban Consumers published by the United
25States Department of Labor or any successor agency.
26    If any cost-of-living adjustment is not a multiple of $25,

 

 

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1that adjustment shall be rounded to the next lowest multiple of
2$25.
3    (e) Cross reference. See Article 3 for the manner of
4determining base income allocable to this State.
5    (f) Application of Section 250. Section 250 does not apply
6to the amendments to this Section made by Public Act 90-613.
7    (g) Notwithstanding any other provision of law, for taxable
8years beginning on or after January 1, 2017, no taxpayer may
9claim an exemption under this Section if the taxpayer's
10adjusted gross income for the taxable year exceeds (i)
11$500,000, in the case of spouses filing a joint federal tax
12return or (ii) $250,000, in the case of all other taxpayers.
13(Source: P.A. 100-22, eff. 7-6-17.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.