95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0338


 
Introduced 2/7/2007, by Sen. Jacqueline Y. Collins
 
SYNOPSIS AS INTRODUCED:
 		














35 ILCS 5/212









    Amends the Illinois Income Tax Act. Deletes the provision that refunds with respect to the earned income tax credit  are subject to the availability of funds from the federal Temporary Assistance for Needy Families Block Grant and the State's ability to meet its required Maintenance of Effort. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB0338

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    AN ACT concerning revenue.

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


 
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    Section 5. The Illinois Income Tax Act is amended  by 
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changing Section 212 as follows:
 
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    (35 ILCS 5/212)

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    Sec. 212. Earned income tax credit.


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    (a) With respect to the federal earned income tax credit 
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allowed for the
taxable year under Section 32 of the federal 
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Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer 
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is entitled to a credit against the tax imposed by
subsections 
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(a) and (b) of Section 201 in an amount equal to
5% of the 
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federal tax credit for each taxable year beginning on or after

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January 1,
2000.


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    For a non-resident or part-year resident, the amount of the 
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credit under this
Section shall be in proportion to the amount 
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of income attributable to this
State.


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    (b) For taxable years beginning before January 1, 2003, in 
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no event
shall a credit under this Section reduce the 
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taxpayer's
liability to less than zero.  For each taxable year 
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beginning on or after
January 1, 2003, if the amount of the 
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credit exceeds the income tax liability
for the applicable tax 
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year, then the excess credit shall be refunded to the
taxpayer.  
 


 






SB0338
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The amount of a refund shall not be included in the taxpayer's

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income or resources for the purposes of determining eligibility 
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or benefit
level in any means-tested benefit program 
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administered by a governmental entity
unless required by 
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federal law.


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    (b-5) Refunds authorized by subsection (b) are subject to 
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the
availability of funds
from the federal Temporary Assistance 
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for Needy Families Block Grant and the
State's
ability to meet 
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its required Maintenance of Effort.


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    (c) This Section is exempt from the provisions of Section 
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250.


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(Source: P.A. 93-534, eff. 8-18-03; 93-653, eff. 1-8-04.)

 

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