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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 3. The Illinois Administrative Procedure Act is | ||||||||||||||||||||||||||
5 | amended by adding Section 5-45.1 as follows: | ||||||||||||||||||||||||||
6 | (5 ILCS 100/5-45.1 new) | ||||||||||||||||||||||||||
7 | Sec. 5-45.1. Emergency rulemaking. To provide for the | ||||||||||||||||||||||||||
8 | expeditious and timely implementation of Section 232 of the | ||||||||||||||||||||||||||
9 | Illinois Income Tax Act, emergency rules implementing that | ||||||||||||||||||||||||||
10 | Section may be adopted in accordance with Section 5-45 by the | ||||||||||||||||||||||||||
11 | Department of Revenue. The adoption of emergency rules | ||||||||||||||||||||||||||
12 | authorized by Section 5-45 and this Section is deemed to be | ||||||||||||||||||||||||||
13 | necessary for the public interest, safety, and welfare. | ||||||||||||||||||||||||||
14 | This Section is repealed on January 1, 2026. | ||||||||||||||||||||||||||
15 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||||
16 | Section 232 as follows: | ||||||||||||||||||||||||||
17 | (35 ILCS 5/232 new) | ||||||||||||||||||||||||||
18 | Sec. 232. Remote learning education expense credit. | ||||||||||||||||||||||||||
19 | (a) The COVID-19 pandemic has created challenges for | ||||||||||||||||||||||||||
20 | students and their families in the areas of child care, school | ||||||||||||||||||||||||||
21 | attendance, school access, and the like. |
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1 | This Section is intended to (i) assist students and | ||||||
2 | families who are unable follow their normal school routine as a | ||||||
3 | consequence of orders of the Department of Public Health | ||||||
4 | relating to COVID-19, (ii) additionally support classroom | ||||||
5 | instructors so that they can maximize time and opportunities | ||||||
6 | for in-person instruction, and (iii) incentivize employers to | ||||||
7 | accommodate working parents. | ||||||
8 | Because the nature and types of hardships experienced by | ||||||
9 | school districts, parents, and students are wide and varied, | ||||||
10 | the most efficient way to deliver relief that can be tailored | ||||||
11 | to the particular individuals' needs is through an income tax | ||||||
12 | credit. | ||||||
13 | The General Assembly finds that it will be costly and | ||||||
14 | burdensome to the State of Illinois if parents must choose to | ||||||
15 | become unemployed due to a lack of accommodation based on the | ||||||
16 | inability of students to attend school in person. | ||||||
17 | (b) As used in this Section, the following words shall have | ||||||
18 | the following meanings unless the context clearly requires | ||||||
19 | otherwise, and shall be construed expansively in favor of the | ||||||
20 | taxpayer for expenditures made in good faith wherever possible: | ||||||
21 | "Custodian" means, with respect to qualifying pupils, an | ||||||
22 | Illinois resident who is a parent, the parents, a legal | ||||||
23 | guardian, or the legal guardians of the qualifying pupils. | ||||||
24 | "COVID-19" means the illness caused by the coronavirus | ||||||
25 | SARS-CoV-2. | ||||||
26 | "Educational activities" means any aspect of a qualifying |
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1 | pupil's education, including, but not limited to classroom | ||||||
2 | instruction, remote learning and blended remote learning | ||||||
3 | instruction, special education support, and tutoring and | ||||||
4 | mentoring. | ||||||
5 | "Eligible expenditure" means costs by a custodian of a | ||||||
6 | qualifying pupil or an employer associated with: | ||||||
7 | (1) the purchase of materials to support online | ||||||
8 | learning, including but not limited to, a personal computer | ||||||
9 | with internet access; a router or hotspot; monthly expenses | ||||||
10 | for internet access; a printer and supportive accessories | ||||||
11 | (print cartridge, toner); textbooks and other supplies | ||||||
12 | needed for education, up to a maximum of $500 for the | ||||||
13 | taxable year; and the costs of educational activities; | ||||||
14 | (2) securing, for a qualifying pupil who is under the | ||||||
15 | age of 15, child care, independent tutoring, an educational | ||||||
16 | facilitator (whether individually or as part of a learning | ||||||
17 | pod, provided that the facilitator fee is distributed pro | ||||||
18 | rata per student), homeschool instruction, alternative | ||||||
19 | classroom instruction, or specialized services relating to | ||||||
20 | learning or behavioral issues identified in an | ||||||
21 | Individualized Education Program and the like, up to a | ||||||
22 | maximum of $5,000 per taxable year per household or per | ||||||
23 | child, whichever is less; and | ||||||
24 | (3) compliance with a mandatory 2-week quarantine | ||||||
25 | period associated with COVID-19, whether imposed by an | ||||||
26 | employer, the State of Illinois, or a county health |
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1 | department, including the costs of testing, clinical | ||||||
2 | support, and vaccination (if available), up to $3,000 per | ||||||
3 | year. | ||||||
4 | "Eligible expenditure adjustment" means the eligible | ||||||
5 | expenditure reduced by 25%. The eligible expenditure | ||||||
6 | adjustment shall apply for any parent or household that had an | ||||||
7 | adjusted gross income for the taxable year of over $150,000 for | ||||||
8 | an individual and $300,000 for spouses filing a joint return. | ||||||
9 | "Eligible teacher" means an individual licensed under | ||||||
10 | Article 21B of the School Code who is teaching at the school | ||||||
11 | grade level of kindergarten through grade 12 and is also the | ||||||
12 | custodian of a qualifying pupil under the age of 14 who cannot | ||||||
13 | attend school anywhere within the custodian's school district | ||||||
14 | for in-person instruction on a regular school day. | ||||||
15 | "Qualifying pupil" means an individual who (i) is a | ||||||
16 | resident of the State of Illinois, (ii) is under the age of 21 | ||||||
17 | at the close of the school year for which a credit is sought, | ||||||
18 | and (iii) during the school year for which a credit is sought, | ||||||
19 | was a full-time pupil enrolled in a kindergarten through grade | ||||||
20 | 12 education program at any school, as defined in this Section. | ||||||
21 | "Regular school day" means the calendar days Monday through | ||||||
22 | Friday, from 8 a.m. to 4 p.m., which occur on the day after | ||||||
23 | Labor Day but before Memorial Day, but not any official | ||||||
24 | government holidays within that time period. | ||||||
25 | "School" means any public or nonpublic elementary or | ||||||
26 | secondary school in Illinois that is in compliance with Title |
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1 | VI of the Civil Rights Act of 1964 and attendance at which | ||||||
2 | satisfies the requirements of Section 26-1 of the School Code, | ||||||
3 | except that nothing shall be construed to require a child to | ||||||
4 | attend any particular public or nonpublic school to qualify for | ||||||
5 | the credit under this Section. | ||||||
6 | (c) For taxable years beginning on or after January 1, | ||||||
7 | 2020, a taxpayer who is a custodian of a qualifying pupil is | ||||||
8 | eligible to receive a nonrefundable credit against the taxes | ||||||
9 | imposed by subsections (a) and (b) of Section 201 in an amount | ||||||
10 | equal to 100% of the eligible expenditures (as adjusted by the | ||||||
11 | eligible expenditure adjustment, if applicable), subject to | ||||||
12 | the maximum allowable credits under this Section. Eligible | ||||||
13 | teachers are eligible for an additional $75 credit per week, | ||||||
14 | not to exceed $2,000 per year, if the eligible teacher's | ||||||
15 | qualifying pupil cannot attend in-person instruction because | ||||||
16 | of orders involving the Department of Public Health, a county | ||||||
17 | health department, or the State Board of Education relating to | ||||||
18 | COVID-19. | ||||||
19 | The credit under this Section shall not apply to | ||||||
20 | expenditures incurred after orders preventing in-person | ||||||
21 | instruction for the qualifying pupil are lifted. No taxpayer | ||||||
22 | shall be entitled to claim a tax credit under this Section for | ||||||
23 | the same eligible expenditures claimed by another taxpayer. If | ||||||
24 | 2 or more custodians claim tax credits for the same qualified | ||||||
25 | pupil, the total of which exceeds the amounts in this | ||||||
26 | subsection, then the total amount of the credit allowed shall |
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1 | be allocated in amounts proportionate to teach eligible | ||||||
2 | taxpayer's share of the total amount of the eligible | ||||||
3 | expenditures for the eligible qualifying pupil. | ||||||
4 | The employer of a custodian of a qualifying pupil is also | ||||||
5 | entitled to a credit against the taxes imposed by subsections | ||||||
6 | (a) and (b) of Section 201 in an amount equal to 100% of the | ||||||
7 | eligible expenditures paid by the employer on behalf of the | ||||||
8 | custodian of the qualifying pupil, but not to exceed a maximum | ||||||
9 | in each taxable year of $2,000 for each employee on whose | ||||||
10 | behalf an expenditure is made, plus 50% of the maximum | ||||||
11 | unemployment insurance payment that the employer would | ||||||
12 | otherwise pay to the State under the Unemployment Insurance Act | ||||||
13 | for that employee. | ||||||
14 | (d) The Department of Revenue and the State Board of | ||||||
15 | Education shall jointly adopt rules for the implementation of | ||||||
16 | this Section. | ||||||
17 | (e) The Department of Revenue shall annually, no later than | ||||||
18 | November 1, file a report with the Governor and the General | ||||||
19 | Assembly and publish on the Department of Revenue's website the | ||||||
20 | total amount of tax credits claimed under this Section and the | ||||||
21 | total number of taxpayers who received the credit for the | ||||||
22 | preceding fiscal year. | ||||||
23 | (f) This Section is exempt from the provisions of Section | ||||||
24 | 250.
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25 | Section 99. Effective date. This Act takes effect upon | ||||||
26 | becoming law.
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