HB5155 102ND GENERAL ASSEMBLY

LRB102 23391 HLH 32560 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5155

Introduced 1/27/2022, by Rep. Tom Demmer

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers whose federal adjusted gross income does not exceed specified amounts. Provides that the credit shall be equal to $400 for taxpayers filing a joint return and $200 for all other taxpayers. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Inflation protection credit.

(a) For taxable years that begin on or after January 1, 2022 and begin prior to January 1, 2023, qualified taxpayers are entitled to a credit against the tax imposed by subsection (a) and (b) of Section 201 in an amount equal to $400 for taxpayers filing a joint return and $200 for all other taxpayers.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be refunded to the taxpayer.

(c) For the purposes of this Section, "qualified taxpayer" means an individual (and the spouse of that individual if filing a joint return) who:

(1) is a United States citizen or United States resident alien; and

(2) is not a dependent of another taxpayer; and

(3) has a federal adjusted gross income that does not exceed:

(A) $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;

(B) $112,500 if filing as head of household; or

(C) $75,000 for an individual who does not qualify under paragraphs (A) or (B).

Section 99. Effective date. This Act takes effect upon becoming law.