SB0327eng 95TH GENERAL ASSEMBLY

SB0327 Engrossed LRB095 07329 BDD 27470 b

AN ACT regarding taxation.

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. Textbook purchase credit.

(a) For taxable years ending on or after December 31, 2007, each individual taxpayer who, during the taxable year, purchases a textbook for use by a higher education student in Illinois is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 in an amount equal to 5% of the purchase price of that textbook, but the credit may not exceed $75 with respect to all textbooks purchased during the taxable year.

(b) The credit under this Section may not be carried forward or back and may not reduce the taxpayer's liability to less than zero.

(c) For the purposes of this Section:

"Textbook" means any book or book substitute that a higher education student uses as a text or text substitute in a particular class or program recommended by the class instructor. The term includes books, reusable workbooks, manuals, whether bound or in loose-leaf form, and instructional computer software, intended as a principal source of study material for a given class or group of students.

"Higher education student" means any student who is enrolled full-time or part-time in a State university, public community college, or institution of higher learning, as defined in the Illinois Financial Assistance Act for Nonpublic Institutions of Higher Learning.

(d) This Section is exempt from the provisions of Section 250.

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