Synopsis As Introduced Amends the Illinois Income Tax Act. Removes a provision that requires a taxpayer to add to federal adjusted gross income, to arrive at base income for Illinois income tax purposes, distributions from a qualified tuition program under Section 529 of the Internal Revenue Code other than distributions from the College Savings Pool or the Illinois Prepaid Tuition Program to the extent those distributions were excluded from income in arriving at federal adjusted gross income. Amends the State Treasurer Act and further amends the Illinois Income Tax Act to allow an income tax deduction for moneys contributed in the taxable year to the College Savings Pool, the Illinois Prepaid Tuition Program, or to any other qualified tuition program under Section 529 of the Internal Revenue Code (now, deduction limited to College Savings Pool contributions). Effective immediately.
Fiscal Note (Department of Revenue)
The Department is unable to determine the fiscal impact due to a number of unknowns. The Department cannot estimate the amount of distributions that would be made in any given year. The amount of money that would be contributed in a given year is also unknown. However, for every $1 million worth of deductions, the State loses $30,000.
Senate Floor Amendment No. 1 Further amends the State Treasurer Act. With respect to the College Savings Pool, removes language providing that contributions to the College Savings Pool shall not be considered by the Illinois Student Assistance Commission, the State, or any agency thereof in awarding student financial aid.