101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2456

 

Introduced , by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new

    Amends the Illinois Income Tax Act. Provides that each taxpayer who (i) was a resident of another State, (ii) first became a resident of Illinois in a taxable year beginning on or after January 1, 2019, (iii) is employed as a police officer or firefighter in Illinois during the taxable year, (iv) agrees to reside in Illinois for a period of at least 10 consecutive years, and (v) applies to the Department of Revenue for a new resident income tax credit is entitled to an income tax credit in the amount of $15,000 per year. Provides for recapture if the taxpayer fails to reside in the State for a period of at least 10 consecutive years after being approved for a credit by the Department. Provides that the credit is exempt from the Act's automatic sunset. Effective immediately.


LRB101 07115 HLH 52152 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2456LRB101 07115 HLH 52152 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 adding
5Section 229 as follows:
 
6    (35 ILCS 5/229 new)
7    Sec. 229. New resident credit.
8    (a) Each taxpayer who (i) was a resident of another State,
9(ii) first became a resident of Illinois in a taxable year
10beginning on or after January 1, 2019, (iii) is employed as a
11police officer or firefighter in Illinois during the taxable
12year, (iv) agrees to reside in Illinois for a period of at
13least 10 consecutive years, and (v) applies to the Department
14for a tax credit under this Section is entitled to a credit
15against the tax imposed by subsections (a) and (b) of Section
16201 in the amount of $15,000 per year. The Department may
17approve no more than than 50,000 applications under this
18Section. In the case of spouses filing a joint return, each
19spouse must separately qualify under this subsection (a), and
20both spouses together shall be considered a single taxpayer for
21the purpose of calculating the maximum number of applications
22under this Section.
23    (b) The tax credit award may not be carried back. If the

 

 

HB2456- 2 -LRB101 07115 HLH 52152 b

1amount of the credit exceeds the tax liability for the year,
2the excess may be carried forward and applied to the tax
3liability of the 5 tax years following the excess credit year.
4The tax credit award shall be applied to the earliest year for
5which there is a tax liability. If there are credits from more
6than one tax year that are available to offset liability, the
7earlier credit shall be applied first. In no event may a credit
8under this Section reduce the taxpayer's liability to less than
9zero.
10    (c) If the taxpayer fails to reside in the State for a
11period of at least 10 consecutive years after being approved
12for a credit by the Department under this Section, except in
13the case of death or disability of the taxpayer, the Department
14shall seek to recapture from the taxpayer the entire credit
15amount awarded to the taxpayer prior to the date he or she
16relocated.
17    (d) This Section is exempt from the provisions of Section
18250.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.