Illinois General Assembly - Full Text of SB4182
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Full Text of SB4182  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/23/2022, by Sen. Jason A. Barickman


35 ILCS 5/224
35 ILCS 40/10

    Amends the Invest in Kids Act and the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2022, the Invest in Kids credit may be taken for qualified contributions for which the taxpayer claims a federal income tax deduction. Effective immediately.

LRB102 26458 HLH 36890 b





SB4182LRB102 26458 HLH 36890 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 224 as follows:
6    (35 ILCS 5/224)
7    Sec. 224. Invest in Kids credit.
8    (a) For taxable years beginning on or after January 1,
92018 and ending before January 1, 2023, each taxpayer for whom
10a tax credit has been awarded by the Department under the
11Invest in Kids Act is entitled to a credit against the tax
12imposed under subsections (a) and (b) of Section 201 of this
13Act in an amount equal to the amount awarded under the Invest
14in Kids Act.
15    (b) For partners, shareholders of subchapter S
16corporations, and owners of limited liability companies, if
17the liability company is treated as a partnership for purposes
18of federal and State income taxation, the credit under this
19Section shall be determined in accordance with the
20determination of income and distributive share of income under
21Sections 702 and 704 and subchapter S of the Internal Revenue
23    (c) The credit may not be carried back and may not reduce



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1the taxpayer's liability to less than zero. If the amount of
2the credit exceeds the tax liability for the year, the excess
3may be carried forward and applied to the tax liability of the
45 taxable years following the excess credit year. The tax
5credit shall be applied to the earliest year for which there is
6a tax liability. If there are credits for more than one year
7that are available to offset the liability, the earlier credit
8shall be applied first.
9    (d) For tax years beginning prior to January 1, 2022, a A
10tax credit awarded by the Department under the Invest in Kids
11Act may not be claimed for any qualified contribution for
12which the taxpayer claims a federal income tax deduction.
13(Source: P.A. 100-465, eff. 8-31-17.)
14    Section 10. The Invest in Kids Act is amended by changing
15Section 10 as follows:
16    (35 ILCS 40/10)
17    (Section scheduled to be repealed on January 1, 2025)
18    Sec. 10. Credit awards.
19    (a) The Department shall award credits against the tax
20imposed under subsections (a) and (b) of Section 201 of the
21Illinois Income Tax Act to taxpayers who make qualified
22contributions. For contributions made under this Act, the
23credit shall be equal to 75% of the total amount of qualified
24contributions made by the taxpayer during a taxable year, not



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1to exceed a credit of $1,000,000 per taxpayer.
2    (b) The aggregate amount of all credits the Department may
3award under this Act in any calendar year may not exceed
5    (c) Contributions made by corporations (including
6Subchapter S corporations), partnerships, and trusts under
7this Act may not be directed to a particular subset of schools,
8a particular school, a particular group of students, or a
9particular student. Contributions made by individuals under
10this Act may be directed to a particular subset of schools or a
11particular school but may not be directed to a particular
12group of students or a particular student.
13    (d) For tax years beginning prior to January 1, 2022, no No
14credit shall be taken under this Act for any qualified
15contribution for which the taxpayer claims a federal income
16tax deduction.
17    (e) Credits shall be awarded in a manner, as determined by
18the Department, that is geographically proportionate to
19enrollment in recognized non-public schools in Illinois. If
20the cap on the aggregate credits that may be awarded by the
21Department is not reached by June 1 of a given year, the
22Department shall award remaining credits on a first-come,
23first-served basis, without regard to the limitation of this
25    (f) Credits awarded for donations made to a technical
26academy shall be awarded without regard to subsection (e), but



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1shall not exceed 15% of the annual statewide program cap. For
2the purposes of this subsection, "technical academy" means a
3technical academy that is registered with the Board within 30
4days after the effective date of this amendatory Act of the
5102nd General Assembly.
6(Source: P.A. 102-16, eff. 6-17-21.)
7    Section 99. Effective date. This Act takes effect upon
8becoming law.