Full Text of SB1554 101st General Assembly
SB1554 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1554 Introduced 2/15/2019, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Provides a tax credit to each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor due to tornadoes or flooding in 2011, 2013, 2015, 2017, or 2018. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT 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 | 5 | | changing Section 226 as follows: | 6 | | (35 ILCS 5/226) | 7 | | Sec. 226. Natural disaster credit. | 8 | | (a) For taxable years that begin on or after January 1, | 9 | | 2017 and begin prior to January 1, 2019, each taxpayer who owns | 10 | | qualified real property located in a county in Illinois that | 11 | | was declared a State disaster area by the Governor due to | 12 | | flooding in 2017 or 2018 is entitled to a credit against the | 13 | | taxes imposed by subsections (a) and (b) of Section 201 of this | 14 | | Act in an amount equal to the lesser of $750 or the deduction | 15 | | allowed (whether or not the taxpayer determines taxable income | 16 | | under subsection (b) of Section 63 of the Internal Revenue | 17 | | Code) with respect to the qualified property under Section 165 | 18 | | of the Internal Revenue Code, determined without regard to the | 19 | | limitations imposed under subsection (h) of that Section. | 20 | | For taxable years that begin on or after January 1, 2019 | 21 | | and begin prior to January 1, 2020, each taxpayer who owns | 22 | | qualified real property located in a county in Illinois that | 23 | | was declared a State disaster area by the Governor due to |
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| 1 | | tornadoes or flooding in 2011, 2013, 2015, 2017, or 2018 is | 2 | | entitled to a credit against the taxes imposed by subsections | 3 | | (a) and (b) of Section 201 of this Act in an amount equal to the | 4 | | lesser of $750 or the deduction allowed (whether or not the | 5 | | taxpayer determines taxable income under subsection (b) of | 6 | | Section 63 of the Internal Revenue Code) with respect to the | 7 | | qualified property under Section 165 of the Internal Revenue | 8 | | Code, determined without regard to the limitations imposed | 9 | | under subsection (h) of that Section. | 10 | | The township assessor or, if the township assessor is | 11 | | unable, the chief county assessment officer of the county in | 12 | | which the property is located, shall issue a certificate to the | 13 | | taxpayer identifying the taxpayer's property as damaged as a | 14 | | result of the natural disaster. The certificate shall include | 15 | | the name and address of the property owner, as well as the | 16 | | property index number or permanent index number (PIN) of the | 17 | | damaged property. The taxpayer shall attach a copy of such | 18 | | certificate to the taxpayer's return for the taxable year for | 19 | | which the credit is allowed. | 20 | | (b) In no event shall a credit under this Section reduce a | 21 | | taxpayer's liability to less than zero. If the amount of credit | 22 | | exceeds the tax liability for the year, the excess may be | 23 | | carried forward and applied to the tax liability for the 5 | 24 | | taxable years following the excess credit year. The tax credit | 25 | | shall be applied to the earliest year for which there is a tax | 26 | | liability. If there are credits for more than one year that are |
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| 1 | | available to offset liability, the earlier credit shall be | 2 | | applied first. | 3 | | (c) If the taxpayer is a partnership or Subchapter S | 4 | | corporation, the credit shall be allowed to the partners or | 5 | | shareholders in accordance with the determination of income and | 6 | | distributive share of income under Sections 702 and 704 and | 7 | | Subchapter S of the Internal Revenue Code. | 8 | | (d) A taxpayer is not entitled to the credit under this | 9 | | Section if the taxpayer receives a Natural Disaster Homestead | 10 | | Exemption under Section 15-173 of the Property Tax Code with | 11 | | respect to the qualified real property as a result of the | 12 | | natural disaster. | 13 | | (e) The township assessor or, if the township assessor is | 14 | | unable to certify, the chief county assessment officer of the | 15 | | county in which the property is located, shall certify to the | 16 | | Department a listing of the properties located within the | 17 | | county that have been damaged as a result of the natural | 18 | | disaster (including the name and address of the property owner | 19 | | and the property index number or permanent index number (PIN) | 20 | | of each damage property). | 21 | | (f) As used in this Section: | 22 | | (1) "Qualified real property" means real property that | 23 | | is: (i) the taxpayer's principal residence or owned by a | 24 | | small business; (ii) damaged during the taxable year as a | 25 | | result of a disaster; and (iii) not used in a rental or | 26 | | leasing business. |
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| 1 | | (2) "Small business" has the meaning given to that term | 2 | | in Section 1-75 of the Illinois Administrative Procedure | 3 | | Act. | 4 | | (g) Nothing in this Act prohibits the disclosure of | 5 | | information by officials of a county or municipality involving | 6 | | reports of damaged property or the owners of damaged property | 7 | | if that disclosure is made to a township or county assessment | 8 | | official in connection with a credit obtained or sought under | 9 | | this Section.
| 10 | | (Source: P.A. 100-555, eff. 11-16-17; 100-587, eff. 6-4-18; | 11 | | 100-731, eff. 1-1-19; revised 8-30-18.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
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