Senate Sponsors: CLAYBORNE-REA-VIVERITO-BERMAN-SEVERNS, SHAW AND DEMUZIO. House Sponsors: CURRIE-BLACK-PHELPS Short description: INC TX-ADOPT A SCHOOL CR Synopsis of Bill as introduced: Amends the Illinois Income Tax Act. Creates a tax credit against the taxes imposed under this Act for employer taxpayers in an amount equal to 100% of amounts contributed by the employer to public or private elementary, secondary, or post-secondary schools for educational purposes. Provides that the credit may be carried forward for 2 years. Provides that in no event shall the credit reduce the employer taxpayer's liability under the Act below zero. Applies to tax years beginning on or after January 1, 1997 and ending on or before December 30, 2002. SENATE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 5/211 Adds reference to: 35 ILCS 5/203 Deletes everything. Amends the Illinois Income Tax Act. Provides that beginning with taxable years beginning on or after January 1, 1997 and ending with taxable years ending on or before December 30, 2002, an individual income tax deduction not to exceed $100,000 is available in an amount equal to the amount contributed for educational purposes by the taxpayer to any public or private elementary, secon- dary, a post-secondary school in Illinois, as certified by the reci- pient school. SENATE AMENDMENT NO. 2. Provides that the deduction shall be available for foundations established under Section 501(c)(3) of the Internal Revenue Code to raise moneys for schools. Provides that the deduction is not available for donations to post-secondary schools in Illinois. PENSION NOTE, H-AM 1 A FY1999 appropriation of $64.1 M to Chi. Teachers' Pension Fund would be required, an increase of $2.1 M over FY1998. STATE MANDATES FISCAL NOTE, H-AMS 1 & 2 (DCCA) Fails to create a State mandate. HOME RULE NOTE, H-AMS 1 & 2 Does not preempt home rule authority. FISCAL NOTE, H-AM 1 (Dpt. Revenue) Increased tax receipts from the income tax rate are estimated at $1.5 billion annually; the rent deduction will cost an esti- mated $50.6 to a maximum of $67.5 million annually. FISCAL NOTE, H-AMS 1 & 2 (Dpt. Revenue) No change from previous fiscal note. STATE DEBT IMPACT NOTE, H-AMS 1 & 2 Does not authorize any State debt, make appropriations from any bond fund, or increase debt service payments by the State. BALANCED BUDGET NOTE, H-AMS 1 & 2 There may be a significant fiscal impact on the State, but the bill does not authorize, increase, decrease, or reallocate any general funds appropriation for FY1997. JUDICIAL NOTE, H-AMS 1 & 2 Impact on the Judicial Branch cannot be determined. HOUSE AMENDMENT NO. 1. Adds reference to: 30 ILCS 105/5.449 new 30 ILCS 105/5.550 new 30 ILCS 115/7 new 35 ILCS 5/201 from Ch. 120, par. 2-201 35 ILCS 5/202.5 new 35 ILCS 5/804 from Ch. 120, par. 8-804 35 ILCS 5/901 from Ch. 120, par. 9-901 35 ILCS 200/18-162 new 35 ILCS 200/18-249 35 ILCS 200/18-255 35 ILCS 200/20-15 35 ILCS 200/21-30 35 ILCS 200/18-200 rep. 40 ILCS 5/17-108 from Ch. 108 1/2, par. 17-108 40 ILCS 5/17-127 from Ch. 108 1/2, par. 17-127 40 ILCS 5/17-129 from Ch. 108 1/2, par. 17-129 40 ILCS 15/1.1 105 ILCS 5/1A-2 from Ch. 122, par. 1A-2 105 ILCS 5/1C-2 105 ILCS 5/1D-1 105 ILCS 5/2-3.120 new 105 ILCS 5/2-3.121 new 105 ILCS 5/2-3.122 new 105 ILCS 5/10-22.6 from Ch. 122, par. 10-22.6 105 ILCS 5/10-22.23 from Ch. 122, par. 10-22.23 105 ILCS 5/10-22.23a from Ch. 122, par. 10-22.23a 105 ILCS 5/10-23.5 from Ch. 122, par. 10-23.5 105 ILCS 5/10-23.8 from Ch. 122, par. 10-23.8 105 ILCS 5/10-23.8a from Ch. 122, par. 10-23.8a 105 ILCS 5/18-7 from Ch. 122, par. 18-7 105 ILCS 5/18-8 from Ch. 122, par. 18-8 105 ILCS 5/18-8.2 from Ch. 122, par. 18-8.2 105 ILCS 5/21-0.01 new 105 ILCS 5/21-0.02 new 105 ILCS 5/21-0.03 new 105 ILCS 5/21-1a from Ch. 122, par. 21-1a 105 ILCS 5/21-2 from Ch. 122, par. 21-2 105 ILCS 5/21-2.1 from Ch. 122, par. 21-2.1 105 ILCS 5/21-2a from Ch. 122, par. 21-2a 105 ILCS 5/21-3 from Ch. 122, par. 21-3 105 ILCS 5/21-4 from Ch. 122, par. 21-4 105 ILCS 5/21-5 from Ch. 122, par. 21-5 105 ILCS 5/21-5a from Ch. 122, par. 21-5a 105 ILCS 5/21-5b 105 ILCS 5/21-5c new 105 ILCS 5/21-5d new 105 ILCS 5/21-7.1 from Ch. 122, par. 21-7.1 105 ILCS 5/21-10 from Ch. 122, par. 21-10 105 ILCS 5/21-11.1 from Ch. 122, par. 21-11.1 105 ILCS 5/21-11.3 from Ch. 122, par. 21-11.3 105 ILCS 5/21-11.4 105 ILCS 5/21-14 from Ch. 122, par. 21-14 105 ILCS 5/24-11 from Ch. 122, par. 24-11 105 ILCS 5/24-12 from Ch. 122, par. 24-12 105 ILCS 5/34-84 from Ch. 122, par. 34-84 105 ILCS 5/1B-8 from Ch. 122, par. 1B-8 105 ILCS 5/2-3.51.5 105 ILCS 5/7-11 from Ch. 122, par. 7-11 105 ILCS 5/10-22.20 from Ch. 122, par. 10-22.20 105 ILCS 5/18-4.3 from Ch. 122, par. 18-4.3 105 ILCS 5/18-8.4 from Ch. 122, par. 18-8.4 105 ILCS 5/29-5 from Ch. 122, par. 29-5 105 ILCS 5/34-8.4 105 ILCS 5/34-18 from Ch. 122, par. 34-18 105 ILCS 5/1C-3 rep. 105 ILCS 5/1C-4 rep. 115 ILCS 5/13 from Ch. 48, par. 1713 Deletes everything. Amends numerous Acts in relation to public education and taxation. Amends the School Code to create a School Capital and Technology Infrastructure Program. Authorizes the use of $1,000,000,000 in general obligation bond revenues for making grants over a 5-year period. Provides for repayment of bonds through transfers from the General Revenue Fund. Amends the Illinois Income Tax Act to raise the income tax rate to 3.75% for individuals, trusts, and estates. Provides for deposit of portions of the proceeds into the Common School Fund and 2 newly created Funds: the Education Property Tax Relief Fund and the School Capital and Technology Infrastructure Fund. Also creates a deduction for rent paid by a taxpayer on his or her principal residence. Amends the Property Tax Code and the State Revenue Sharing Act to provide for abatement of a portion of real property taxes. Amends the Illinois Pension Code. Provides that the State shall take over the Chicago Board of Education's obligation to pay the employer's share of pension contributions for Chicago teachers. Also amends the State Pension Funds Continuing Appropriation Act to guarantee the timely payment of these obligations. Amends the School Code. Rewrites and changes the general State aid formula and related provisions. Creates a new system of teacher certification and a Professional Teacher Standards Board and School Administrator Standards Board. Changes provisions relating to tenure for public school teachers. Amends and adds provisions in relation to block grants, school nurses, expulsion of students, multiyear contracts for administrators, provision of noninstructional services, chief school business officials, and strikes. Amends the Illinois Educational Labor Relations Act in relation to strikes. Also makes technical corrections. Effective July 1, 1997. HOUSE AMENDMENT NO. 2. In the Section proposed to be added to the Property Tax Code relating to school tax abatement, deletes the word "divided" from a sentence prescribing the manner in which the county clerk is to calculate the rate for the abatement. Last action on Bill: SESSION SINE DIE Last action date: 99-01-12 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 2 END OF INQUIRY Full Text Bill Status