State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]


[ House Amendment 001 ]


92_HB4077

 
                                               LRB9213471SMdv

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois  Income  Tax Act is amended by
 5    adding Section 213 as follows:

 6        (35 ILCS 5/213 new)
 7        Sec. 213. Educational improvement tax credit.
 8        (a)  The General Assembly finds  and  declares  that  the
 9    Constitution  of  the  State  of  Illinois  provides  that  a
10    "fundamental   goal  of  the  People  of  the  State  is  the
11    educational development of all persons to the limits of their
12    capacities," and that the educational  development  of  every
13    school  student  serves  the public purposes of the State. In
14    order to enable Illinois students to develop "to  the  limits
15    of  their  capacities,"  all  students  must  have  access to
16    expanded educational opportunities. To implement this policy,
17    the General Assembly enacts this amendatory Act of  the  92nd
18    General  Assembly,  the provisions of which are in the public
19    interest,  for  the  public  benefit,  and  serve  a  secular
20    purpose.
21        (b)  An educational improvement  tax  credit  program  is
22    hereby  established  to enhance the educational opportunities
23    available to all students in this State.
24             (1)  Beginning with tax years ending after  December
25        31,  2002, a taxpayer that is a business firm, as defined
26        in subsection (c), is entitled to a  credit  against  the
27        tax  imposed by subsections (a) and (b) of Section 201 of
28        this Act, or any other Illinois tax  that  offsets  taxes
29        due  under subsections (a) and (b) of Section 201 of this
30        Act, for contributions to a qualified student  assistance
31        organization   in   the   taxable   year   in  which  the
 
                            -2-                LRB9213471SMdv
 1        contribution is made. The credit shall not exceed 75%  of
 2        each  dollar  contributed  during the taxable year by the
 3        business firm. Notwithstanding  the  preceding  sentence,
 4        the  business  firm  is  entitled  to a tax credit not to
 5        exceed 90% of each dollar contributed if  it  provides  a
 6        written   commitment   to   make   the   same  amount  of
 7        contribution to the student assistance organization for 2
 8        consecutive tax years. In no case shall the credit exceed
 9        $100,000 annually per business firm.
10             (2)  The credit allowed by this Section is  in  lieu
11        of  any deduction pursuant to Section 170 of the Internal
12        Revenue Code of 1986, including any similar provision  of
13        a later compilation, and taken for State tax purposes.

14        (c)  For purposes of this Section:
15        "Business firm" means an entity authorized to do business
16    in this State and subject to taxes imposed under this Act.
17        "Contribution" means a donation of cash.
18        "Qualified   student  assistance  organization"  means  a
19    nonprofit entity that:
20             (1)  Is exempt from federal taxation  under  Section
21        501(c)(3)  of  the  Internal Revenue Code of 1986 and any
22        similar provision of a later compilation; and
23             (2)  Contributes  at  least  80%   of   its   annual
24        receipts,   as   defined  in  rules  promulgated  by  the
25        Department,  either  to   scholarships   for   qualifying
26        students  at  a  school or to enhance educational options
27        for qualifying students by providing qualifying  students
28        access  to  secular, neutral, non-ideological programs or
29        activities outside the curriculum or academic program  of
30        a  school,  as long as the program or activities meet the
31        requirements  set  forth  in  rules  promulgated  by  the
32        Department in consultation with the Illinois State  Board
33        of Education.
34        "Qualifying student" means an individuals who:
 
                            -3-                LRB9213471SMdv
 1             (1)  Is a resident of the State of Illinois;
 2             (2)  Is under the age of 21 during the calendar year
 3        for which a credit is sought;
 4             (3)  During  the calendar year for which a credit is
 5        sought is a full-time pupil enrolled  in  a  kindergarten
 6        through twelfth grade education program at any school, as
 7        defined in this subsection (c); and
 8             (4)  Is  a  member  of  a  household  with an annual
 9        household income of not more than $50,000, provided  that
10        if  there  is  more  than  one  dependent  member  of the
11        household under the age of  21  counting  the  qualifying
12        student,  then  this  annual  income requirement shall be
13        increased by $10,000 for each  dependent  member  of  the
14        household  under  the  age  of  21  in  excess of the one
15        qualifying student. Household income means all moneys  or
16        property  received  by  the  members  of  a  household of
17        whatever nature and from whatever source derived,  except
18        for payments to reimburse actual expenses.
19        "School"  means  any  public  or  nonpublic elementary or
20    secondary school in Illinois that is in compliance with Title
21    VI of the Civil Rights Act of 1964 and  attendance  at  which
22    satisfies  the  requirements  of  Section  26-1 of the School
23    Code.
24        (d)  No tax credit established by this Section is allowed
25    if the  taxpayer  designates  a  contribution  to  a  student
26    assistance   organization  for  the  direct  benefit  of  any
27    particular qualifying student.
28        (e)  A tax credit granted under this Section that is  not
29    used  in  the taxable year in which the contribution was made
30    may not be  carried  forward  or  carried  back  and  is  not
31    refundable or transferable.
32        (f)  A  business  firm  must  apply to the Department and
33    receive approval for a tax credit under this Section prior to
34    making a contribution to a student  assistance  organization.
 
                            -4-                LRB9213471SMdv
 1    The  Department  shall  approve  applications  in  the  order
 2    received until the total aggregate amount of all approved tax
 3    credits equals $50,000,000 in a State fiscal year.
 4        (g)  The  total  aggregate  amount  of  all  approved tax
 5    credits shall not exceed $50,000,000 in a State fiscal year.
 6        (h)  The Department shall  adopt  rules  consistent  with
 7    this  Section  for  the  administration  of  the  educational
 8    improvement tax credit program.
 9        (i)  A scholarship received by a qualifying student shall
10    not be considered to be taxable income.
11        (j)  This  Section  is  exempt  from  the  provisions  of
12    Section 250.

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

[ Top ]