Bill Text: IL HB2869 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2020, the earned income tax credit shall be 36% (currently, 18%) of the federal tax credit.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB2869 Detail]
Download: Illinois-2019-HB2869-Introduced.html
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| 1 | AN ACT concerning revenue.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||
| 5 | changing Section 212 as follows:
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| 6 | (35 ILCS 5/212)
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| 7 | Sec. 212. Earned income tax credit.
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| 8 | (a) With respect to the federal earned income tax credit | ||||||||||||||||||||||||
| 9 | allowed for the
taxable year under Section 32 of the federal | ||||||||||||||||||||||||
| 10 | Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | ||||||||||||||||||||||||
| 11 | is entitled to a credit against the tax imposed by
subsections | ||||||||||||||||||||||||
| 12 | (a) and (b) of Section 201 in an amount equal to
(i) 5% of the | ||||||||||||||||||||||||
| 13 | federal tax credit for each taxable year beginning on or after
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| 14 | January 1,
2000 and ending prior to December 31, 2012, (ii) | ||||||||||||||||||||||||
| 15 | 7.5% of the federal tax credit for each taxable year beginning | ||||||||||||||||||||||||
| 16 | on or after January 1, 2012 and ending prior to December 31, | ||||||||||||||||||||||||
| 17 | 2013, (iii) 10% of the federal tax credit for each taxable year | ||||||||||||||||||||||||
| 18 | beginning on or after January 1, 2013 and beginning prior to | ||||||||||||||||||||||||
| 19 | January 1, 2017, (iv) 14% of the federal tax credit for each | ||||||||||||||||||||||||
| 20 | taxable year beginning on or after January 1, 2017 and | ||||||||||||||||||||||||
| 21 | beginning prior to January 1, 2018, and (v) 18% of the federal | ||||||||||||||||||||||||
| 22 | tax credit for each taxable year beginning on or after January | ||||||||||||||||||||||||
| 23 | 1, 2018 and beginning prior to January 1, 2020, and (vi) 36% of | ||||||||||||||||||||||||
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| 1 | the federal tax credit for each taxable year beginning on or | ||||||
| 2 | after January 1, 2020.
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| 3 | For a non-resident or part-year resident, the amount of the | ||||||
| 4 | credit under this
Section shall be in proportion to the amount | ||||||
| 5 | of income attributable to this
State.
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| 6 | (b) For taxable years beginning before January 1, 2003, in | ||||||
| 7 | no event
shall a credit under this Section reduce the | ||||||
| 8 | taxpayer's
liability to less than zero. For each taxable year | ||||||
| 9 | beginning on or after
January 1, 2003, if the amount of the | ||||||
| 10 | credit exceeds the income tax liability
for the applicable tax | ||||||
| 11 | year, then the excess credit shall be refunded to the
taxpayer. | ||||||
| 12 | The amount of a refund shall not be included in the taxpayer's
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| 13 | income or resources for the purposes of determining eligibility | ||||||
| 14 | or benefit
level in any means-tested benefit program | ||||||
| 15 | administered by a governmental entity
unless required by | ||||||
| 16 | federal law.
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| 17 | (c) This Section is exempt from the provisions of Section | ||||||
| 18 | 250.
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| 19 | (Source: P.A. 100-22, eff. 7-6-17.)
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