SB2540 93RD GENERAL ASSEMBLY

LRB093 20745 SJM 46636 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2540

Introduced 2/3/2004, by Kimberly A. Lightford

SYNOPSIS AS INTRODUCED:

35 ILCS 5/216 new

Amends the Illinois Income Tax Act. Allows taxpayers who are teachers at qualifying schools to take a credit against the taxpayer's income tax. The amount of the credit ranges from $250 to $1,500 depending upon the years of services as a teacher at a qualifying school. Provides that the credit may not reduce a taxpayer's tax liability to less than zero. Provides that unused credits may not be carried forward. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT in relation to taxes.

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 216 as follows:

(35 ILCS 5/216 new)

Sec. 216. Teacher tax credit.

(a) The Legislature finds and declares all of the following:

(1) Roughly 50% of teachers leave the profession by their fifth year of teaching.

(2) It is the intent of the General Assembly to encourage teachers to remain in the profession by providing a tax benefit.

(3) This tax credit is designed to encourage teacher retention and to compensate teachers for unreimbursed expenses related to professional development and classroom instruction, such as materials and supplies.

(b) In this Section:

"Teacher" means a person employed in an instructional position at a qualifying school.

"Qualifying school" means either (i) a nonprofit elementary or secondary school in Illinois, other than a public school, that is in compliance with Title VI of the Civil Rights Act of 1964 and attendance at which satisfies the requirements of Section 26-1 of the School Code or (ii) a public elementary or secondary school.

(c) Beginning with tax years ending on or after December 31, 2004 and ending with tax years ending on or before December 31, 2008, each individual taxpayer who is a teacher is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act in an amount equal to the amount determined in this subsection. In the case of a teacher who has, as of the last day of the taxable year:

(i) completed not less than 4 and not more than 6 years of service as a teacher at a qualifying school, the credit shall be $250;

(ii) completed not less than 6 but not more than 11 years of service as a teacher at a qualifying school, the credit shall $500;

(iii) completed not less than 11 but not more than 20 years of service as a teacher at a qualifying school, the credit shall be $1,000; and

(iv) completed 20 or more years of service as a teacher at a qualifying school, the credit shall be $1,500.

For purposes of determining years of service, only the years of services at a qualifying school as defined in subsection (b) may be counted.

(d) The credit may not reduce the taxpayer's liability under this Act to less than zero. A credit that is unused in the year the credit is available may not be carried forward and applied to the tax liability of taxable years following the excess credit year.

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