101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
Introduced , by Rep. Karina Villa
SYNOPSIS AS INTRODUCED:
Amends the Illinois Income Tax Act. Provides that a taxpayer who has
incurred at least $20,000 in undergraduate student loan debt and has at
least $5,000 in outstanding undergraduate student loan debt at the time of
the application is entitled to a credit as awarded by the Department of
Revenue. Provides that Department of Revenue that the amount of the credit
shall not exceed $ 5,000 per taxpayer. Provides that the total amount of
credits approved by the Department of Revenue under the provisions of the
amendatory Act may not exceed $5,000,000 in any taxable year. Contains
recapture provisions. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Illinois Income Tax Act is amended by adding
Section 229 as follows:
(35 ILCS 5/229 new)
Student loan payments.
(a) For taxable years beginning on or after January 1,
2019, a qualified taxpayer is entitled to a credit against the
tax imposed by subsections (a) and (b) of Section 201 for the
taxable year in which the Department certifies a tax credit
under this Section.
(b) By September 15 of each year, a qualified taxpayer
shall submit an application to the Department for the credit
allowed under this Section. The taxpayer shall submit with the
application an assurance that the he or she will use any credit
approved under this Section for the repayment of his or her
undergraduate student loan debt as soon as practicable. By
December 15 of each year, the Department shall certify to the
individual the amount of any tax credit approved under this
Section, not to exceed $ 5,000. For any taxable year, the total
amount of credits approved by the Department under this Section
may not exceed $5,000,000.