Full Text of HB3479 97th General Assembly
HB3479 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3479 Introduced 2/24/2011, by Rep. Karen A. Yarbrough - Darlene J. Senger SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Creates a credit for contributions to qualified student assistance organizations. Provides that the credit may not exceed $100,000 and may not exceed 90% of each dollar contributed. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 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 adding | 5 | | Section 221 as follows: | 6 | | (35 ILCS 5/221 new) | 7 | | Sec. 221. Educational Improvement Tax Credit. | 8 | | (a) The General Assembly finds and declares that the | 9 | | Constitution of the State of Illinois provides that a | 10 | | "fundamental goal of the People of the State is the educational | 11 | | development of all persons to the limits of their capacities", | 12 | | and that the educational development of every school student | 13 | | serves the public purposes of the State. In order to enable | 14 | | Illinois students to develop "to the limit of their | 15 | | capacities", all students must have access to expanded | 16 | | educational opportunities. This Section is in the public | 17 | | interest, for the public benefit, and serves a secular purpose. | 18 | | (b) An educational improvement tax credit program is hereby | 19 | | established to enhance the educational opportunities available | 20 | | to all students in this State. | 21 | | For tax years beginning after December 31, 2011, a taxpayer | 22 | | shall be allowed a credit, not in excess of $100,000, against | 23 | | the tax imposed by subsections (a) and (b) of Section 201 of |
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| 1 | | this Act for contributions to a qualified student assistance | 2 | | organization in the taxable year in which the contribution is | 3 | | made. The credit shall not exceed 90% of each dollar | 4 | | contributed during the taxable year by the taxpayer. For | 5 | | partners, shareholders of Subchapter S corporations, and | 6 | | owners of limited liability companies, if the liability company | 7 | | is treated as a partnership for purposes of federal and State | 8 | | income taxation, there shall be allowed a credit under this | 9 | | Section to be determined in accordance with the determination | 10 | | of income and distributive share of income under Section 702 | 11 | | and 704 and Subchapter S of the Internal Revenue Code. | 12 | | In no event may any credit be claimed for amounts deducted | 13 | | pursuant to Section 170 of the Internal Revenue Code in | 14 | | arriving at taxable income. | 15 | | (c) For purposes of this Section: | 16 | | "Contribution" means a donation of cash. | 17 | | "Qualified student assistance organization" means a | 18 | | nonprofit entity that: | 19 | | (1) is exempt from federal taxation under Section | 20 | | 501(c)(3) of the Internal Revenue Code of 1986 and any | 21 | | similar provision of a later compilation; and | 22 | | (2) contributes at least 90% of its annual receipts, as | 23 | | required by the by-laws of the organization and as | 24 | | documented by the nonprofit organizations annual AG990-IL | 25 | | Charitable Organization Annual Report, or, if the | 26 | | organization is exempt from filing such a report, by a |
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| 1 | | report containing identical information to that contained | 2 | | in the AG990-IL and certified by the President and | 3 | | Treasurer of the organization, or alternatively, two | 4 | | trustees of the organization, either to scholarships for | 5 | | qualifying students at a school or to enhance educational | 6 | | options for qualifying students by providing qualifying | 7 | | students access to secular, neutral, non-ideological | 8 | | programs, or activities outside the curriculum or academic | 9 | | program of a school, as long as the program or activities | 10 | | meet the requirements set forth in rules promulgated by the | 11 | | Illinois State Board of Education. An entity that has been | 12 | | in existence less than 2 years prior to the filing of an | 13 | | application under subsection (f) of this Section shall meet | 14 | | the requirements of this subsection if its charter, bylaws | 15 | | or other governing instrument requires that it contribute | 16 | | 90% of its annual receipts for the purposes described in | 17 | | this subsection. | 18 | | "Qualifying student" means an individual who: | 19 | | (1) is a resident of the State of Illinois; | 20 | | (2) is under the age of 21 during the calendar year for | 21 | | which a credit is sought; | 22 | | (3) during the calendar year for which a credit is | 23 | | sought is a full-time pupil enrolled in a kindergarten | 24 | | through 12th grade education program at any school, as | 25 | | defined in this subsection (c); and | 26 | | (4) is a child of a parent or parents, or is under the |
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| 1 | | legal guardianship of an individual or individuals, with a | 2 | | base income of not more than $50,000 and resides in the | 3 | | household with those parents or guardians, provided that if | 4 | | there is more than one dependent member of the household | 5 | | under the age of 21, counting the qualifying student, then | 6 | | this annual income requirement shall be increased by | 7 | | $10,000 for each dependent member of the household under | 8 | | the age of 21 in excess of the one qualifying student. | 9 | | Qualified student assistant organizations shall be | 10 | | responsible for determining whether a student is a | 11 | | qualifying student, pursuant to rules adopted by the | 12 | | Illinois State Board of Education. | 13 | | "School" means any public or State-recognized non-public | 14 | | elementary or secondary school in Illinois that is in | 15 | | compliance with Title VI of the Civil Rights Act of 1964 and | 16 | | attendance at which satisfies the requirements of Section 26-1 | 17 | | of the School Code. | 18 | | (d) No tax credit established by this Section is allowed if | 19 | | the taxpayer designates a contribution to a student assistance | 20 | | organization for the direct benefit of any particular | 21 | | qualifying student. | 22 | | (e) Qualified student assistance organizations shall | 23 | | provide scholarships or funding for enhanced educational | 24 | | options without limiting availability to only students of one | 25 | | school. | 26 | | (f) A tax credit granted under this Section that is not |
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| 1 | | used in the taxable year in which the contribution was made | 2 | | shall not be carried forward or carried back and is not | 3 | | refundable or transferable. | 4 | | (g) A taxpayer must apply annually to the Department and | 5 | | receive approval for a tax credit under this Section prior to | 6 | | making a contribution to a student assistance organization. | 7 | | Applicants must be submitted to the Department no later than | 8 | | March 31 each year for contributions to be made for tax years | 9 | | ending on or after July 1 of that same year. On May 1 of each | 10 | | year, the Department shall, on a random basis, select | 11 | | applications until the total aggregate amount of all requested | 12 | | tax credits equals the maximum provided for in subsection (h). | 13 | | The Department shall adopt rules pursuant to the requirements | 14 | | of the Illinois Administrative Procedure Act that set forth the | 15 | | information the Department can require on the tax credit | 16 | | application and the manner in which the tax credit lottery is | 17 | | to be conducted. | 18 | | (h) The total aggregate amount of all approved tax credits | 19 | | shall not exceed $30,000,000 in any State fiscal year. | 20 | | (i) The Department shall adopt rules consistent with this | 21 | | Section for the administration of the educational improvement | 22 | | tax credit program. | 23 | | (j) A scholarship received by a qualifying student shall | 24 | | not be considered to be taxable income. | 25 | | (k) This Section is exempt from the provisions of Section | 26 | | 250.
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.
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