95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0339

 

Introduced 2/7/2007, by Sen. Jacqueline Y. Collins

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/212

    Amends the Illinois Income Tax Act. Increases the amount of the earned income tax credit from 5% of the federal tax credit to (i) 10% of the federal tax credit for each taxable year beginning on or after January 1, 2007, (ii) 15% of the federal tax credit for each taxable year beginning on or after January 1, 2009, and (iii) 20% of the federal tax credit for each taxable year beginning on or after January 1, 2011. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Income Tax Act is amended by
5 changing Section 212 as follows:
 
6     (35 ILCS 5/212)
7     Sec. 212. Earned income tax credit.
8     (a) With respect to the federal earned income tax credit
9 allowed for the taxable year under Section 32 of the federal
10 Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
11 is entitled to a credit against the tax imposed by subsections
12 (a) and (b) of Section 201 in an amount equal to:
13         (1) 5% of the federal tax credit for each taxable year
14     beginning on or after January 1, 2000 and ending on or
15     before December 31, 2006;
16         (2) 10% of the federal tax credit for each taxable year
17     beginning on or after January 1, 2007 and ending on or
18     before December 31, 2008;
19         (3) 15% of the federal tax credit for each taxable year
20     beginning on or after January 1, 2009 and ending on or
21     before December 31, 2010; and
22         (4) 20% of the federal tax credit for each taxable year
23     beginning on or after January 1, 2011.

 

 

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1     For a non-resident or part-year resident, the amount of the
2 credit under this Section shall be in proportion to the amount
3 of income attributable to this State.
4     (b) For taxable years beginning before January 1, 2003, in
5 no event shall a credit under this Section reduce the
6 taxpayer's liability to less than zero. For each taxable year
7 beginning on or after January 1, 2003, if the amount of the
8 credit exceeds the income tax liability for the applicable tax
9 year, then the excess credit shall be refunded to the taxpayer.
10 The amount of a refund shall not be included in the taxpayer's
11 income or resources for the purposes of determining eligibility
12 or benefit level in any means-tested benefit program
13 administered by a governmental entity unless required by
14 federal law.
15     (b-5) Refunds authorized by subsection (b) are subject to
16 the availability of funds from the federal Temporary Assistance
17 for Needy Families Block Grant and the State's ability to meet
18 its required Maintenance of Effort.
19     (c) This Section is exempt from the provisions of Section
20 250.
21 (Source: P.A. 93-534, eff. 8-18-03; 93-653, eff. 1-8-04.)
 
22     Section 99. Effective date. This Act takes effect upon
23 becoming law.