Illinois General Assembly - Full Text of HB4604
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Full Text of HB4604  101st General Assembly




State of Illinois
2019 and 2020


Introduced 2/5/2020, by Rep. Lindsey LaPointe


35 ILCS 5/218

    Amends the Illinois Income Tax Act. Provides that the credit for student-assistance contributions sunsets on December 31, 2030 (currently, December 30, 2020). Provides that, for taxable years ending on or after December 31, 2020, the maximum student-assistance credit is $1,000 per contributing employee per taxable year (currently, $500). Effective immediately.

LRB101 16729 HLH 66118 b






HB4604LRB101 16729 HLH 66118 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 218 as follows:
6    (35 ILCS 5/218)
7    Sec. 218. Credit for student-assistance contributions.
8    (a) For taxable years ending on or after December 31, 2009
9and on or before December 31, 2030 December 30, 2020, each
10taxpayer who, during the taxable year, makes a contribution (i)
11to a specified individual College Savings Pool Account under
12Section 16.5 of the State Treasurer Act or (ii) to the Illinois
13Prepaid Tuition Trust Fund in an amount matching a contribution
14made in the same taxable year by an employee of the taxpayer to
15that Account or Fund is entitled to a credit against the tax
16imposed under subsections (a) and (b) of Section 201 in an
17amount equal to 25% of that matching contribution, but not to
18exceed (i) $500 per contributing employee per taxable year for
19taxable years ending prior to December 31, 2020 and (ii) $1,000
20per contributing employee per taxable year for taxable years
21ending on or after December 31, 2020.
22    (b) For partners, shareholders of Subchapter S
23corporations, and owners of limited liability companies, if the



HB4604- 2 -LRB101 16729 HLH 66118 b

1liability company is treated as a partnership for purposes of
2federal and State income taxation, there is allowed a credit
3under this Section to be determined in accordance with the
4determination of income and distributive share of income under
5Sections 702 and 704 and Subchapter S of the Internal Revenue
7    (c) The credit may not be carried back. If the amount of
8the credit exceeds the tax liability for the year, the excess
9may be carried forward and applied to the tax liability of the
105 taxable years following the excess credit year. The tax
11credit shall be applied to the earliest year for which there is
12a tax liability. If there are credits for more than one year
13that are available to offset a liability, the earlier credit
14shall be applied first.
15    (d) A taxpayer claiming the credit under this Section must
16maintain and record any information that the Illinois Student
17Assistance Commission, the Office of the State Treasurer, or
18the Department may require regarding the matching contribution
19for which the credit is claimed.
20(Source: P.A. 96-198, eff. 8-10-09.)
21    Section 99. Effective date. This Act takes effect upon
22becoming law.