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Synopsis As Introduced Amends the Illinois Income Tax Act. Requires an addition modification to base income of an amount equal to the contribution component of any nonqualified withdrawal or refund from a tuition savings program that was previously deducted from base income and that did not result from the death or disability of the beneficiary. Effective immediately.
Fiscal Note (Dept. of Revenue)
HB 174 would increase Illinois income tax liabilities by less than $1,000,000 annually by requiring an addition modification equal to amounts withdrawn from 529 plans and used for nonqualifying purposes.
Deletes everything after the enacting clause. Amends the State Budget Law of the Civil Administration Code of Illinois. Provides that certain amounts shall be transferred from the General Revenue Fund to the Common School Fund. Amends the Illinois Income Tax Act. Increases the income tax rate for individuals, trusts, and estates from 3% to 5%. Increases the income tax rate for corporations from 4.8% to 7.2%. Increases the residential real property tax credit from 5% to 10%. Increases the limitation on the education expense credit from $500 to $1,000. Increases the percentage of the earned income tax credit from 5% of the federal tax credit to 15% in 2009 and thereafter. Makes changes concerning distributions to the Local Government Distributive Fund. Amends the Retailers' Occupation Tax Act. Provides that certain services are taxable under the Act. Amends the School Code. Creates the Education Financial Award System Fund, the Digital Learning Technology Grant Fund, and the STEM Education Center Grant Fund. Makes changes concerning the Early Childhood Education Block Grant; financial awards for school improvement and other awards; academic early warning and watch status; an educational improvement plan; the creation of the Digital Learning Technology Grant Program, a best practices clearinghouse, the Science, Technology, Engineering, and Mathematics Education Center Grant Program, and a resource management service; audits; school board member leadership training; a school district's school report card; financial policies and plans; a capital improvement plan; protection from suit; financial accountability; non-referendum bonds; the foundation level of support under the State aid formula; the New Teacher Induction and Mentoring Program; school board associations; and transportation reimbursement. Effective immediately.
Senate Floor Amendment No. 3 Adds a preamble stating that the Act may be referred to as Senate Bill 750 of the 96th General Assembly. Provides that in fiscal year 2010, no appropriation made from general funds to the Illinois Mathematics and Science Academy may be decreased from its fiscal year 2009 general appropriation level. Makes related changes and technical corrections.
Senate Floor Amendment No. 4 In the State aid formula provisions of the School Code, provides that the foundation level of support of $6,190 is for the 2009-2010 (instead of 2010-2011) school year. Provides that moneys that are transferred to the Common School Fund instead of the Local Government Distributive Fund shall be transferred until July 1, 2010 (instead of July 1, 2009).
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