HB6644 95TH GENERAL ASSEMBLY

LRB095 20959 HLH 49966 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB6644

Introduced , by Rep. Ronald A. Wait - Michael Tryon - Brent Hassert - Jim Durkin - Sandra M. Pihos, et al.

SYNOPSIS AS INTRODUCED:

35 ILCS 5/218 new

Amends the Illinois Income Tax Act. Provides that taxpayers are entitled to a credit in an amount equal to 1% of the purchase price of the taxpayer's principal place of residence, subject to certain conditions. Provides that the credit may not exceed $2,000. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

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 218 as follows:

(35 ILCS 5/218 new)

Sec. 218. Home purchase credit. For each taxable year ending on or after December 31, 2008 and on or before December 31 2009, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 1% of the purchase price of the taxpayer's principal place of residence if the residence (i) is purchased during that taxable year, (ii) is the taxpayer's principal place of residence on the last day of that taxable year, and (ii) is purchased with cash or with a mortgage that is not a "high risk home loan" as defined in Section 10 of the High Risk Home Loan Act. The amount of the credit may not exceed $2,000. The credit may be claimed for only one residence. In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.

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