Public Act 93-0534

SB4 Enrolled                         LRB093 03463 SJM 03489 b

    AN ACT regarding taxes.

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

    Section  5.  The  Illinois  Income  Tax Act is amended by
changing Section 212 as follows:

    (35 ILCS 5/212)
    (Section scheduled to be repealed on June 1, 2003)
    Sec. 212.  Earned income tax credit.
    (a)  With respect to the federal earned income tax credit
allowed for the taxable year under Section 32 of the  federal
Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
is   entitled   to  a  credit  against  the  tax  imposed  by
subsections (a) and (b) of Section 201 in an amount equal  to
5%  of the federal tax credit for each taxable year beginning
on or after January 1, 2000 and ending on or before  December
31, 2002.
    For  a  non-resident or part-year resident, the amount of
the credit under this Section shall be in proportion  to  the
amount of income attributable to this State.
    (b)  For  taxable years beginning before January 1, 2003,
in no event shall a credit  under  this  Section  reduce  the
taxpayer's  liability  to  less  than zero.  For each taxable
year beginning on or after January 1, 2003, if the amount  of
the   credit   exceeds  the  income  tax  liability  for  the
applicable tax year, then the excess credit shall be refunded
to the taxpayer.   The  amount  of  a  refund  shall  not  be
included  in  the  taxpayer's  income  or  resources  for the
purposes of determining eligibility or benefit level  in  any
means-tested  benefit  program administered by a governmental
entity unless required by federal law.
    (b-5) Refunds authorized by subsection (b) are subject to
the  availability  of  funds  from  the   federal   Temporary
Assistance  for  Needy  Families  Block Grant and the State's
ability to meet its required Maintenance of Effort.
    (c)  This  Section  is  exempt  from  the  provisions  of
Section 250 repealed on June 1, 2003.
(Source: P.A. 91-700, eff. 5-11-00.)

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