Illinois General Assembly - Full Text of SB3774
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB3774  102nd General Assembly

SB3774 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3774

 

Introduced 1/21/2022, by Sen. Omar Aquino

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/212
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Provides that the earned income tax credit shall be: (i) 20% of the federal tax credit for each taxable year beginning on or after January 1, 2023 and prior to January 1, 2024; (ii) 22% of the federal tax credit for each taxable year beginning on or after January 1, 2024 and prior to January 1, 2025; and (iii) 25% of the federal tax credit for each taxable year beginning on or after January 1 2025. Provides that the earned income tax credit is available to persons who have attained the age of 18 but have not yet attained the age of 25 and to persons who are 65 years of age or older, without regard to any age requirements that would otherwise apply to individuals without a qualifying child under federal Internal Revenue Code. Extends the earned income tax credit to individuals filing a return using an individual taxpayer identification number (ITIN). Creates a credit for child dependent tax credit that shall be not less than $600 when combined with the taxpayer's earned income tax credit. Effective immediately.


LRB102 24028 HLH 33242 b

 

 

A BILL FOR

 

SB3774LRB102 24028 HLH 33242 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 212 and by adding Section 232 as follows:
 
6    (35 ILCS 5/212)
7    Sec. 212. Earned income tax credit.
8    (a) With respect to the federal earned income tax credit
9allowed for the taxable year under Section 32 of the federal
10Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
11is entitled to a credit against the tax imposed by subsections
12(a) and (b) of Section 201 in an amount equal to (i) 5% of the
13federal tax credit for each taxable year beginning on or after
14January 1, 2000 and ending prior to December 31, 2012, (ii)
157.5% of the federal tax credit for each taxable year beginning
16on or after January 1, 2012 and ending prior to December 31,
172013, (iii) 10% of the federal tax credit for each taxable year
18beginning on or after January 1, 2013 and beginning prior to
19January 1, 2017, (iv) 14% of the federal tax credit for each
20taxable year beginning on or after January 1, 2017 and
21beginning prior to January 1, 2018, and (v) 18% of the federal
22tax credit for each taxable year beginning on or after January
231, 2018 and beginning prior to January 1, 2023, (vi) 20% of the

 

 

SB3774- 2 -LRB102 24028 HLH 33242 b

1federal tax credit for each taxable year beginning on or after
2January 1, 2023 and prior to January 1, 2024, (vii) 22% of the
3federal tax credit for each taxable year beginning on or after
4January 1, 2024 and prior to January 1, 2025, and (viii) 25% of
5the federal tax credit for each taxable year beginning on or
6after January 1 2025.
7    For a non-resident or part-year resident, the amount of
8the credit under this Section shall be in proportion to the
9amount of income attributable to this State.
10    (b) For taxable years beginning before January 1, 2003, in
11no event shall a credit under this Section reduce the
12taxpayer's liability to less than zero. For each taxable year
13beginning on or after January 1, 2003, if the amount of the
14credit exceeds the income tax liability for the applicable tax
15year, then the excess credit shall be refunded to the
16taxpayer. The amount of a refund shall not be included in the
17taxpayer's income or resources for the purposes of determining
18eligibility or benefit level in any means-tested benefit
19program administered by a governmental entity unless required
20by federal law.
21    (b-5) For taxable years beginning on or after January 1,
222023, each individual taxpayer who has attained the age of 18
23during the taxable year but has not yet attained the age of 25
24is entitled to the credit under paragraph (a) based on the
25federal tax credit for which they would have been eligible
26without regard to any age requirements that would otherwise

 

 

SB3774- 3 -LRB102 24028 HLH 33242 b

1apply to individuals without a qualifying child in Section
232(c)(1)(A)(ii) of the federal Internal Revenue Code.
3    (b-10) For taxable years beginning on or after January 1,
42023, each individual taxpayer who has attained the age of 65
5or older during the taxable year is entitled to the credit
6under paragraph (a) based on the federal tax credit for which
7they would have been eligible without regard to any age
8requirements that would otherwise apply to individuals without
9a qualifying child in Section 32(c)(1)(A)(ii) of the federal
10Internal Revenue Code.
11    (b-15) For taxable years beginning on or after January 1,
122023, each individual taxpayer filing a return using an
13individual taxpayer identification number (ITIN) as prescribed
14under Section 6109 of the Internal Revenue Code, other than a
15Social Security number issued pursuant to Section 205(c)(2)(A)
16of the Social Security Act, is entitled to the credit under
17paragraph (a) based on the federal tax credit for which they
18would have been eligible without applying the restrictions
19regarding social security numbers in Section 32(m) of the
20federal Internal Revenue Code.
21    (c) This Section is exempt from the provisions of Section
22250.
23(Source: P.A. 100-22, eff. 7-6-17.)
 
24    (35 ILCS 5/232 new)
25    Sec. 232. Child dependent tax credit.

 

 

SB3774- 4 -LRB102 24028 HLH 33242 b

1    (a) For each taxable year beginning on or after January 1,
22024, there shall be allowed against the tax imposed by
3subsections (a) and (b) of Section 201, to each eligible
4caregiver, an eligible dependent tax credit in an amount equal
5to not less than $600, except as otherwise provided by this
6Section.
7    (b) The credit amount allowed shall be not less than $600
8regardless of the number of qualified dependents the taxpayer
9has. The credit amount allowed per taxpayer per taxable year
10shall be determined as follows:
11        (1) If the credit amount allowed pursuant to Section
12    212 is less than $600, then the credit amount allowed
13    pursuant to this Section shall be an amount such that the
14    total amount of credit allowed to a taxpayer under both
15    this Section and Section 212 is equal to $600.
16        (2) If the credit amount allowed pursuant to Section
17    212 is $600 or more, then the credit amount allowed
18    pursuant to this Section shall be zero.
19        (3) For each taxable year beginning on or after
20    January 1, 2025, if the credit amount allowed pursuant to
21    Section 212 is zero dollars, the credit amount allowed
22    pursuant to this section shall be $600.
23    (c) For purposes of this Section:
24    "Eligible caregiver" means a taxpayer who provides
25uncompensated care for a qualified dependent and who would
26otherwise meet the requirements of an eligible individual

 

 

SB3774- 5 -LRB102 24028 HLH 33242 b

1pursuant to Section 212, except as follows:
2        (1) the eligible caregiver or the qualified dependent,
3    or both, may have a taxpayer identification number that is
4    a social security number or is a federal individual
5    taxpayer identification number; and
6        (2) for each taxable year beginning on or after
7    January 1, 2025, an eligible caregiver is not required to
8    have qualifying earned income as defined under Section
9    32(c)(2)(A) and (B) of the federal Internal Revenue Code
10    for the taxable year.
11    "Qualified dependent" means a child who is under the age
12of 17 and for whom the taxpayer is allowed an additional
13exemption under Section 204 during the taxable year in which
14the credit is claimed.
15    (d) For taxable years beginning on or after January 1,
162023, if the amount allowable as a credit under this Section
17exceeds the tax liability computed under this Act for the
18taxable year, then the excess shall be refunded to the
19taxpayer.
20    (e) The Department of Revenue may adopt rules necessary or
21appropriate to carry out the purposes of this Section.
22    (f) The amount of a refund shall not be included in the
23taxpayer's income or resources for the purposes of determining
24eligibility or benefit level in any means-tested benefit
25program administered by a governmental entity unless required
26by federal law.

 

 

SB3774- 6 -LRB102 24028 HLH 33242 b

1    (g) This Section is exempt from the provisions of Section
2250.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.