HB2890 102ND GENERAL ASSEMBLY

LRB102 11373 HLH 16706 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2890

Introduced 2/19/2021, by Rep. Adam Niemerg

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the eligible expenses incurred for engaging in qualified tourism activities by the taxpayer during the taxable year. Effective immediately.

FISCAL 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 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Illinois tourism tax credit.

(a) For taxable years beginning on or after January 1, 2021 and ending before January 1, 2024, each taxpayer is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to the eligible expenses incurred for engaging in qualified tourism activities by the taxpayer during the taxable year. In no event may the amount of the credit under this Section exceed $5,000 for any taxpayer in any taxable year.

(b) For purposes of this Section:

(1) "eligible expenses" means any expense which is paid or incurred by the taxpayer during any period of qualified travel which is related to any of the following: (i) food and beverages; (ii) lodging; (iii) transportation; (iv) live entertainment events (including sporting events); (v) expenses related to attending a conference or business meeting; and

(2) "qualifying travel" means any travel: (A) which occurs within the State of Illinois; (B) for which the final destination is not less than 50 miles from the principal residence of the taxpayer (including vacation homes); and (C) which occurs on or after January 1, 2021 and on or before December 31, 2023.

(c) For purposes of this Section, no credit shall be allowed with respect to any expenses with related to business expenses for which a deduction is allowed or allowable to a taxpayer federally under section 162(a)(2) of the Internal Revenue Code.

(d) The Department of Revenue shall adopt any rules necessary to implement and administer the provisions of this Section.

(e) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset liability, the earlier credit shall be applied first.

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