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.
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
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0
END OF INQUIRY
Full Text Bill Status