House Sponsors: MADIGAN,MJ-ERWIN-CROTTY-PHELPS-YOUNGE, BUGIELSKI, CAPPARELLI, CURRIE, CURRY,JULIE, FEIGENHOLTZ, GASH, GIGLIO, GILES, GRANBERG, HARTKE, HOWARD, KENNER, LANG, LOPEZ, MAUTINO, MCGUIRE, MCKEON, PUGH, RONEN, SANTIAGO, SCHAKOWSKY, SCOTT, SILVA, SLONE, DAVIS,MONIQUE, DART, FLOWERS, BROSNAHAN, O'BRIEN, BRUNSVOLD, JONES,LOU, HANNIG, SCULLY, ACEVEDO, COULSON AND SMITH,MICHAEL. Senate Sponsors: CRONIN-WELCH-SEVERNS-HALVORSON-LINK Short description: INC TX-COLL SAVINGS-EXEMPT Synopsis of Bill as introduced: Amends the Illinois Income Tax Act. Provides that higher education saving accounts are accounts established by a qualified taxpayer for the purpose of saving for eligible education related expenses of the account holder, spouse, or child associated with attending a public or private institution of higher education. Provides that a qualified taxpayer shall have an annual adjusted gross income of less than $100,000. Provides that, beginning with taxable years ending on or after December 31, 1997, the principal and the income earned on these accounts is exempt from taxation under the Illinois Income Tax Act if the money in the accounts is used for eligible education related expenses. Provides that if the principal in or any income earned on money held in the higher education savings account is used for any purpose other than eligible education related expenses, that principal or income shall be subject to taxation under the Illinois Income Tax Act and, in addition, the account holder shall incur a penalty in an amount equal to 10% of that principal or income used for purposes other than eligible education related expenses. Provides that the Department of Revenue shall promulgate rules necessary to enforce and implement these provisions. Provides that these provisions are exempt from the provisions concerning the 5-year automatic sunset. Effective immediately. FISCAL NOTE (Dept. of Revenue) The fiscal impact of HB 401 is indeterminable. STATE MANDATES FISCAL NOTE In the opinion of DCCA, HB 401 fails to create a State mandate. HOUSE AMENDMENT NO. 1. Provides that "eligible education related expenses" shall not include expenses incurred in purchasing a motor vehicle. FISCAL NOTE, H-am 1 (Dept. of Revenue) HB 401 fiscal impact is indeterminable. Last action on Bill: SESSION SINE DIE Last action date: 99-01-12 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0 END OF INQUIRY Full Text Bill Status