State of Illinois
2017 and 2018


Introduced 2/9/2017, by Sen. Terry Link


35 ILCS 5/223

    Amends the Illinois Income Tax Act. Provides that the hospital credit applies for tax years ending on or after December 31, 2012 and ending on or before December 31, 2022 (currently, the credit sunsets on December 31, 2017 by operation of the Act's automatic sunset provision). Effective immediately.

LRB100 09151 HLH 21589 b






SB1702LRB100 09151 HLH 21589 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 223 as follows:
6    (35 ILCS 5/223)
7    Sec. 223. Hospital credit.
8    (a) For tax years ending on or after December 31, 2012 and
9ending on or before December 31, 2022, a taxpayer that is the
10owner of a hospital licensed under the Hospital Licensing Act,
11but not including an organization that is exempt from federal
12income taxes under the Internal Revenue Code, is entitled to a
13credit against the taxes imposed under subsections (a) and (b)
14of Section 201 of this Act in an amount equal to the lesser of
15the amount of real property taxes paid during the tax year on
16real property used for hospital purposes during the prior tax
17year or the cost of free or discounted services provided during
18the tax year pursuant to the hospital's charitable financial
19assistance policy, measured at cost.
20    (b) If the taxpayer is a partnership or Subchapter S
21corporation, the credit is allowed to the partners or
22shareholders in accordance with the determination of income and
23distributive share of income under Sections 702 and 704 and



SB1702- 2 -LRB100 09151 HLH 21589 b

1Subchapter S of the Internal Revenue Code. A transfer of this
2credit may be made by the taxpayer earning the credit within
3one year after the credit is earned in accordance with rules
4adopted by the Department. The Department shall prescribe rules
5to enforce and administer provisions of this Section. If the
6amount of the credit exceeds the tax liability for the year,
7then the excess credit may be carried forward and applied to
8the tax liability of the 5 taxable years following the excess
9credit year. The credit shall be applied to the earliest year
10for which there is a tax liability. If there are credits from
11more than one tax year that are available to offset a
12liability, the earlier credit shall be applied first. In no
13event shall a credit under this Section reduce the taxpayer's
14liability to less than zero.
15(Source: P.A. 97-688, eff. 6-14-12.)
16    Section 99. Effective date. This Act takes effect upon
17becoming law.