Bill Text: IL HB4076 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2023). Effective immediately.

Spectrum: Moderate Partisan Bill (Republican 37-9)

Status: (Introduced) 2021-05-26 - Removed Co-Sponsor Rep. Jay Hoffman [HB4076 Detail]

Download: Illinois-2021-HB4076-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4076

Introduced , by Rep. Amy Grant

SYNOPSIS AS INTRODUCED:
35 ILCS 5/224
35 ILCS 40/40
35 ILCS 40/65

Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2023). Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5changing Section 224 as follows:
6 (35 ILCS 5/224)
7 Sec. 224. Invest in Kids credit.
8 (a) For taxable years beginning on or after January 1,
92018 and ending before January 1, 2023, each taxpayer for whom
10a tax credit has been awarded by the Department under the
11Invest in Kids Act is entitled to a credit against the tax
12imposed under subsections (a) and (b) of Section 201 of this
13Act in an amount equal to the amount awarded under the Invest
14in Kids Act.
15 (b) For partners, shareholders of subchapter S
16corporations, and owners of limited liability companies, if
17the liability company is treated as a partnership for purposes
18of federal and State income taxation, the credit under this
19Section shall be determined in accordance with the
20determination of income and distributive share of income under
21Sections 702 and 704 and subchapter S of the Internal Revenue
22Code.
23 (c) The credit may not be carried back and may not reduce

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1the taxpayer's liability to less than zero. If the amount of
2the credit exceeds the tax liability for the year, the excess
3may be carried forward and applied to the tax liability of the
45 taxable years following the excess credit year. The tax
5credit shall be applied to the earliest year for which there is
6a tax liability. If there are credits for more than one year
7that are available to offset the liability, the earlier credit
8shall be applied first.
9 (d) A tax credit awarded by the Department under the
10Invest in Kids Act may not be claimed for any qualified
11contribution for which the taxpayer claims a federal income
12tax deduction.
13 (e) This Section is exempt from the provisions of Section
14250.
15(Source: P.A. 100-465, eff. 8-31-17.)
16 Section 10. The Invest in Kids Act is amended by changing
17Sections 40 and 65 as follows:
18 (35 ILCS 40/40)
19 (Section scheduled to be repealed on January 1, 2024)
20 Sec. 40. Scholarship granting organization
21responsibilities.
22 (a) Before granting a scholarship for an academic year,
23all scholarship granting organizations shall assess and
24document each student's eligibility for the academic year.

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1 (b) A scholarship granting organization shall grant
2scholarships only to eligible students.
3 (c) A scholarship granting organization shall allow an
4eligible student to attend any qualified school of the
5student's choosing, subject to the availability of funds.
6 (d) In granting scholarships, a scholarship granting
7organization shall give priority to the following priority
8groups:
9 (1) eligible students who received a scholarship from
10 a scholarship granting organization during the previous
11 school year;
12 (2) eligible students who are members of a household
13 whose previous year's total annual income does not exceed
14 185% of the federal poverty level;
15 (3) eligible students who reside within a focus
16 district; and
17 (4) eligible students who are siblings of students
18 currently receiving a scholarship.
19 (d-5) A scholarship granting organization shall begin
20granting scholarships no later than February 1 preceding the
21school year for which the scholarship is sought. The priority
22groups identified in subsection (d) of this Section shall be
23eligible to receive scholarships on a first-come, first-served
24basis until the April 1 immediately preceding the school year
25for which the scholarship is sought. Applications for
26scholarships for eligible students meeting the qualifications

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1of one or more priority groups that are received before April 1
2must be either approved or denied within 10 business days
3after receipt. Beginning April 1, all eligible students shall
4be eligible to receive scholarships without regard to the
5priority groups identified in subsection (d) of this Section.
6 (e) Except as provided in subsection (e-5) of this
7Section, scholarships shall not exceed the lesser of (i) the
8statewide average operational expense per student among public
9schools or (ii) the necessary costs and fees for attendance at
10the qualified school. Scholarships shall be prorated as
11follows:
12 (1) for eligible students whose household income is
13 less than 185% of the federal poverty level, the
14 scholarship shall be 100% of the amount determined
15 pursuant to this subsection (e) and subsection (e-5) of
16 this Section;
17 (2) for eligible students whose household income is
18 185% or more of the federal poverty level but less than
19 250% of the federal poverty level, the average of
20 scholarships shall be 75% of the amount determined
21 pursuant to this subsection (e) and subsection (e-5) of
22 this Section; and
23 (3) for eligible students whose household income is
24 250% or more of the federal poverty level, the average of
25 scholarships shall be 50% of the amount determined
26 pursuant to this subsection (e) and subsection (e-5) of

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1 this Section.
2 (e-5) The statewide average operational expense per
3student among public schools shall be multiplied by the
4following factors:
5 (1) for students determined eligible to receive
6 services under the federal Individuals with Disabilities
7 Education Act, 2;
8 (2) for students who are English learners, as defined
9 in subsection (d) of Section 14C-2 of the School Code,
10 1.2; and
11 (3) for students who are gifted and talented children,
12 as defined in Section 14A-20 of the School Code, 1.1.
13 (f) A scholarship granting organization shall distribute
14scholarship payments to the participating school where the
15student is enrolled.
16 (g) Each For the 2018-2019 school year through the
172021-2022 school year, each scholarship granting organization
18shall expend no less than 75% of the qualified contributions
19received during the calendar year in which the qualified
20contributions were received. No more than 25% of the qualified
21contributions may be carried forward to the following calendar
22year.
23 (h) (Blank). For the 2022-2023 school year, each
24scholarship granting organization shall expend all qualified
25contributions received during the calendar year in which the
26qualified contributions were received. No qualified

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1contributions may be carried forward to the following calendar
2year.
3 (i) A scholarship granting organization shall allow an
4eligible student to transfer a scholarship during a school
5year to any other participating school of the custodian's
6choice. Such scholarships shall be prorated.
7 (j) With the prior approval of the Department, a
8scholarship granting organization may transfer funds to
9another scholarship granting organization if additional funds
10are required to meet scholarship demands at the receiving
11scholarship granting organization. All transferred funds must
12be deposited by the receiving scholarship granting
13organization into its scholarship accounts. All transferred
14amounts received by any scholarship granting organization must
15be separately disclosed to the Department.
16 (k) If the approval of a scholarship granting organization
17is revoked as provided in Section 20 of this Act or the
18scholarship granting organization is dissolved, all remaining
19qualified contributions of the scholarship granting
20organization shall be transferred to another scholarship
21granting organization. All transferred funds must be deposited
22by the receiving scholarship granting organization into its
23scholarship accounts.
24 (l) Scholarship granting organizations shall make
25reasonable efforts to advertise the availability of
26scholarships to eligible students.

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1(Source: P.A. 100-465, eff. 8-31-17.)
2 (35 ILCS 40/65)
3 (Section scheduled to be repealed on January 1, 2024)
4 Sec. 65. Credit period; repeal.
5 (a) A taxpayer may take a credit under this Act for tax
6years beginning on or after January 1, 2018 and ending before
7January 1, 2023. A taxpayer may not take a credit pursuant to
8this Act for tax years beginning on or after January 1, 2023.
9 (b) This Act is exempt from the provisions of Section 250
10of the Illinois Income Tax Act repealed on January 1, 2024.
11(Source: P.A. 100-465, eff. 8-31-17.)
12 Section 99. Effective date. This Act takes effect upon
13becoming law.
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