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90_HB3615
35 ILCS 5/208 from Ch. 120, par. 2-208
35 ILCS 5/208.5 new
Amends the Illinois Income Tax Act. Provides that in
addition to the existing tax credit for residential property,
for the 1998 tax year and thereafter, every individual
taxpayer whose principal residence has an equalized assessed
value as determined by the Department of Revenue of less than
$166,667 shall be entitled to an additional tax credit equal
to 5% of the real property taxes paid by the taxpayer during
the taxable year on the principal residence of the taxpayer.
Creates a credit against the taxes imposed under the Act for
Subchapter S Corporations and sole proprietorships in an
amount equal to 5% of the property taxes paid by the
Subchapter S Corporation and the sole proprietorship during
the taxable year on eligible property owned by the
corporation or proprietorship. Provides that eligible
property has an equalized assessed value of less than (i)
$399,000 in counties with 3,000,000 or more inhabitants or
(ii) $166,667 in counties with fewer than 3,000,000
inhabitants. Exempts the credits from the sunset provisions.
Effective immediately.
LRB9010861KDpcA
LRB9010861KDpcA
1 AN ACT to amend the Illinois Income Tax Act by changing
2 Section 208 and adding Section 208.5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Income Tax Act is amended by
6 changing Section 208 and adding Section 208.5 as follows:
7 (35 ILCS 5/208) (from Ch. 120, par. 2-208)
8 Sec. 208. Tax credit for residential real property taxes.
9 (a) Beginning with tax years ending on or after December
10 31, 1991, every individual taxpayer shall be entitled to a
11 tax credit equal to 5% of real property taxes paid by such
12 taxpayer during the taxable year on the principal residence
13 of the taxpayer.
14 (b) In addition to the tax credit provided under
15 subsection (a), for the 1998 tax year and thereafter, every
16 individual taxpayer whose principal residence has an
17 equalized assessed value as determined by the Department of
18 less than $166,667 shall be entitled to an additional tax
19 credit equal to 5% of the real property taxes paid by the
20 taxpayer during the taxable year on the principal residence
21 of the taxpayer. The changes made by this amendatory Act of
22 1998 are exempt from the provisions of Section 250.
23 (c) In the case of multi-unit or multi-use structures
24 and farm dwellings, the taxes on the taxpayer's principal
25 residence shall be that portion of the total taxes which is
26 attributable to such principal residence.
27 (Source: P.A. 87-17.)
28 (35 ILCS 5/208.5 new)
29 Sec. 208.5. Tax credit for real property taxes paid by
30 Subchapter S Corporations or sole proprietorships. For tax
-2- LRB9010861KDpcA
1 years beginning on or after January 1,1998, every Subchapter
2 S Corporation and sole proprietorship in this State shall be
3 entitled to a tax credit equal to 5% of the real property
4 taxes paid by the Subchapter S Corporation or sole
5 proprietorship during the taxable year on eligible property
6 owned by the Subchapter S Corporation or sole proprietorship.
7 For purposes of this Section, "eligible property" means
8 property with an equalized assessed value of less than (i)
9 $399,000 in a county with 3,000,000 or more inhabitants or
10 (ii) $166,667 in a county with less than 3,000,000
11 inhabitants. In no event shall a credit under this Section
12 reduce the liability of the Subchapter S Corporation or sole
13 proprietorship under this Act to less than zero. This
14 Section is exempt from the provisions of Section 250.
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.