Illinois General Assembly - Full Text of HB2186
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Full Text of HB2186  93rd General Assembly

HB2186 93rd General Assembly


                                     LRB093 07745 SJM 07933 b

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Income Tax Act is amended by
 5    changing Section 212 as follows:

 6        (35 ILCS 5/212)
 7        (Section scheduled to be repealed on June 1, 2003)
 8        Sec. 212.  Earned income tax credit.
 9        (a)  With respect to the federal earned income tax credit
10    allowed for the taxable year under Section 32 of the  federal
11    Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
12    is   entitled   to  a  credit  against  the  tax  imposed  by
13    subsections (a) and (b) of Section 201 in an amount equal  to
14    (i)  5%  of  the  federal  tax  credit  for each taxable year
15    beginning on or after January 1, 2000 and ending on or before
16    December 31, 2004; (ii) 10% of the federal tax credit for the
17    taxable year beginning on or after January 1 in  2005;  (iii)
18    15%  of the federal tax credit for the taxable year beginning
19    on or after January 1 in 2006; and 20%  of  the  federal  tax
20    credit  for  taxable  years  beginning on or after January 1,
21    20072002.
22        For a non-resident or part-year resident, the  amount  of
23    the  credit  under this Section shall be in proportion to the
24    amount of income attributable to this State.
25        (b)  For taxable years beginning before January 1,  2005,
26    in  no  event  shall  a  credit under this Section reduce the
27    taxpayer's liability to less than  zero.   For  each  taxable
28    year  beginning on or after January 1, 2005, if the amount of
29    the  credit  exceeds  the  income  tax  liability   for   the
30    applicable tax year, then the excess credit shall be refunded
31    to  the  taxpayer.   The  amount  of  a  refund  shall not be
                            -2-      LRB093 07745 SJM 07933 b
 1    included in  the  taxpayer's  income  or  resources  for  the
 2    purposes  of  determining eligibility or benefit level in any
 3    means-tested benefit program administered by  a  governmental
 4    entity unless required by federal law.
 5        (c)  This  Section  is  exempt  from  the  provisions  of
 6    Section 250 repealed on June 1, 2003.
 7    (Source: P.A. 91-700, eff. 5-11-00.)

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