BOLAND, BLACK, LYONS,EILEEN AND SCHOENBERG.
EARNED INCOME CREDIT-NO REPEAL
Synopsis of Bill as introduced:
Amends the Illinois Income Tax Act. Deletes language that
repeals the earned income tax credit on June 1, 2003. Effective
September 1, 2002.
FISCAL NOTE (Department of Revenue)
For income tax returns filed in 2001 for tax year 2000, the
aggregate amount of earned income tax credits (EICs) claimed by
Illinois taxpayers amounted to approximately $39.9 million. The
Department received an additional $35 million transfer from the
Tobacco Settlement Fund to the Income Tax Refund Fund to pay
EICs. As noted, the actual cost, to date, for the first year
exceeded the appropriation by almost $5 million. The public act
creating the EIC provides for the $35 million transfer of funds
to pay for the additional refunds for all 3 years. HB 4172 does
not provide for the continuation of these transfers.
HOUSE AMENDMENT NO. 1.
Deletes everything after the enacting clause. Reinserts the bill
as introduced but also deletes language that provides that the credit
is allowed only for years ending on or before December 31, 2002
(removes the termination date for the credit). Exempts the credit
from the sunset requirements of the Act. Effective September 1, 2002.
Last action on Bill: SESSION SINE DIE
Last action date: JAN-07-2003
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0
END OF INQUIRY
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