Illinois General Assembly - Bill Status for SB0362

Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2003, moneys contributed during the taxable year by the taxpayer for the purchase of an Illinois prepaid tuition contract, excluding moneys rolled over from another qualified tuition program account, may be deducted from the taxpayer's federal adjusted gross income in arriving at base income for Illinois income tax purposes. Exempts the deduction from the sunset provisions of the Act. Amends the Illinois Prepaid Tuition Act to include a reference to the deduction. Effective immediately.

Removes the exemption from the sunset requirements of the Act for the deduction and instead provides that the deduction applies to taxable years beginning on or after January 1, 2003 and on or before December 31, 2007. Makes a corresponding change in the Illinois Prepaid Tuition Act.

Deletes everything after the enacting clause. Amends the Illinois Income Tax Act. Provides that distributions from qualified tuition programs that are administered by a state that does not permit a sales load exceeding 4% and that exempts from its income tax moneys distributed from a qualified tuition program administered by the State of Illinois are not required to be added to federal adjusted gross income for Illinois income tax purposes (now limited to distributions from the College Savings Pool and the Illinois Prepaid Tuition Trust Fund). Authorizes a deduction of up to $10,000 per taxable year for amounts contributed in the taxable year to a College Savings Pool Account or the Illinois Prepaid Tuition Trust Fund, excluding amounts rolled over into the account (now, unlimited deductions authorized only for contributions to the College Savings Pool, excluding rollovers). Amends the State Treasurer Act, the Baccalaureate Savings Act, and the Illinois Prepaid Tuition Act to remove language providing that (i) contributions to the Bright Start Program; (ii) contributions toward the purchase of the first $25,000 of College Savings Bonds; and (iii) contributions toward the purchase of an Illinois Prepaid Tuition Contract, respectively, shall not be counted against the financial aid awarded by the Illinois Student Assistance Commission, the State, or any agency thereof. Effective immediately, except that the changes related to student financial aid effective January 1, 2004.

In the College Savings Pool provisions of the State Treasurer Act, provides that the State Treasurer may (now, shall) make a percentage of each account available for investment in participating financial institutions doing business in the State. Provides that the State Treasurer may (now, shall) deposit a certain percentage of an account processed at a participating financial institution with that institution. Removes a provisions that the State Treasurer shall adjust each account at least annually to ensure compliance with these in-State investment and prescribed deposit requirements. Provides that the College Savings Pool may not offer a share class with a sales load exceeding 4%. In provisions of the Illinois Income Tax Act that require an addition to federal adjusted gross income, for Illinois Income Tax purposes, of distributions from qualified tuition programs from other states unless the distribution meets certain exceptions, provides that one of those exceptions is that the program does not offer a share class with a sales load exceeding 4% (underlying bill, the state does not permit a sales load exceeding 4%).

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