Bill Text: IL HB4237 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the contributions made by the taxpayer to the Illinois Excellence Fund during the taxable year. Amends the State Finance Act. Creates the Illinois Excellence Fund. Provides that moneys in the Fund shall be used for exclusively public purposes, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts. Amends the Counties Code. Provides that the county board may establish a fund in the county treasury for the purpose of accepting contributions for exclusively public purposes, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts and may provide for a credit against the taxpayer's property tax liability in an amount equal to the amount of the contribution. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 32-9)

Status: (Engrossed) 2018-07-02 - Rule 19(b) / Re-referred to Rules Committee [HB4237 Detail]

Download: Illinois-2017-HB4237-Engrossed.html



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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 State Finance Act is amended by adding
5Sections 5.886 and 6z-105 as follows:
6 (30 ILCS 105/5.886 new)
7 Sec. 5.886. The Illinois Education Excellence Fund.
8 (30 ILCS 105/6z-105 new)
9 Sec. 6z-105. The Illinois Education Excellence Fund;
10creation.
11 (a) The Illinois Education Excellence Fund is hereby
12created as a special fund in the State treasury. The Fund may
13accept contributions for exclusively public education
14purposes, as specified under Section 170 of the Internal
15Revenue Code relating to charitable contributions and gifts.
16All moneys in the Fund shall be used for those public education
17purposes, subject to appropriation by the General Assembly.
18"Public education purposes" includes, but is not limited to,
19early childhood education, elementary and secondary education,
20higher education, adult education, and teachers' employment
21benefits.
22 (b) The State Treasurer shall adopt any rules necessary or

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1appropriate to administer the Fund, including rules allowing
2the public to make monetary contributions to the Fund and
3obtain a certification from the Treasurer for the credit
4allowed under Section 228 of the Illinois Income Tax Act. The
5Treasurer shall certify the contribution amount eligible for
6credit within 45 days following receipt of the contribution and
7shall provide a copy of the certification to the taxpayer and
8the Department of Revenue as soon as possible after the
9certification.
10 Section 10. The Illinois Income Tax Act is amended by
11adding Section 228 as follows:
12 (35 ILCS 5/228 new)
13 Sec. 228. Contributions to the Illinois Education
14Excellence Fund.
15 (a) For taxable years ending after December 31, 2017 and
16before January 1, 2026, any individual taxpayer who makes a
17contribution to the Illinois Education Excellence Fund is
18entitled to a credit against the taxes imposed under
19subsections (a) and (b) of Section 201 in an amount equal to
20100% of the contributions made by the taxpayer to the Fund
21during the taxable year.
22 (b) For partners, shareholders of Subchapter S
23corporations, and owners of limited liability companies, if the
24liability company is treated as a partnership for the purposes

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1of federal and State income taxation, there shall be allowed a
2credit under this Section to be determined in accordance with
3the determination of income and distributive share of income
4under Sections 702 and 704 and Subchapter S of the Internal
5Revenue Code.
6 (c) In no event shall a credit under this Section reduce a
7taxpayer's liability to less than zero. If the amount of credit
8exceeds the tax liability for the year, the excess may be
9carried forward and applied to the tax liability for the 5
10taxable years following the excess credit year. The tax credit
11shall be applied to the earliest year for which there is a tax
12liability. If there are credits for more than one year that are
13available to offset liability, the earlier credit shall be
14applied first.
15 (d) This Section is exempt from the provisions of Section
16250.
17 Section 20. The Counties Code is amended by changing
18Section 5-1005 as follows:
19 (55 ILCS 5/5-1005) (from Ch. 34, par. 5-1005)
20 Sec. 5-1005. Powers. Each county shall have power:
21 1. To purchase and hold the real and personal estate
22 necessary for the uses of the county, and to purchase and
23 hold, for the benefit of the county, real estate sold by
24 virtue of judicial proceedings in which the county is

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1 plaintiff.
2 2. To sell and convey or lease any real or personal
3 estate owned by the county.
4 3. To make all contracts and do all other acts in
5 relation to the property and concerns of the county
6 necessary to the exercise of its corporate powers.
7 4. To take all necessary measures and institute
8 proceedings to enforce all laws for the prevention of
9 cruelty to animals.
10 5. To purchase and hold or lease real estate upon which
11 may be erected and maintained buildings to be utilized for
12 purposes of agricultural experiments and to purchase, hold
13 and use personal property for the care and maintenance of
14 such real estate in connection with such experimental
15 purposes.
16 6. To cause to be erected, or otherwise provided,
17 suitable buildings for, and maintain a county hospital and
18 necessary branch hospitals and/or a county sheltered care
19 home or county nursing home for the care of such sick,
20 chronically ill or infirm persons as may by law be proper
21 charges upon the county, or upon other governmental units,
22 and to provide for the management of the same. The county
23 board may establish rates to be paid by persons seeking
24 care and treatment in such hospital or home in accordance
25 with their financial ability to meet such charges, either
26 personally or through a hospital plan or hospital

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1 insurance, and the rates to be paid by governmental units,
2 including the State, for the care of sick, chronically ill
3 or infirm persons admitted therein upon the request of such
4 governmental units. Any hospital maintained by a county
5 under this Section is authorized to provide any service and
6 enter into any contract or other arrangement not prohibited
7 for a hospital that is licensed under the Hospital
8 Licensing Act, incorporated under the General
9 Not-For-Profit Corporation Act, and exempt from taxation
10 under paragraph (3) of subsection (c) of Section 501 of the
11 Internal Revenue Code.
12 7. To contribute such sums of money toward erecting,
13 building, maintaining, and supporting any non-sectarian
14 public hospital located within its limits as the county
15 board of the county shall deem proper.
16 8. To purchase and hold real estate for the
17 preservation of forests, prairies and other natural areas
18 and to maintain and regulate the use thereof.
19 9. To purchase and hold real estate for the purpose of
20 preserving historical spots in the county, to restore,
21 maintain and regulate the use thereof and to donate any
22 historical spot to the State.
23 10. To appropriate funds from the county treasury to be
24 used in any manner to be determined by the board for the
25 suppression, eradication and control of tuberculosis among
26 domestic cattle in such county.

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1 11. To take all necessary measures to prevent forest
2 fires and encourage the maintenance and planting of trees
3 and the preservation of forests.
4 12. To authorize the closing on Saturday mornings of
5 all offices of all county officers at the county seat of
6 each county, and to otherwise regulate and fix the days and
7 the hours of opening and closing of such offices, except
8 when the days and the hours of opening and closing of the
9 office of any county officer are otherwise fixed by law;
10 but the power herein conferred shall not apply to the
11 office of State's Attorney and the offices of judges and
12 clerks of courts and, in counties of 500,000 or more
13 population, the offices of county clerk.
14 13. To provide for the conservation, preservation and
15 propagation of insectivorous birds through the expenditure
16 of funds provided for such purpose.
17 14. To appropriate funds from the county treasury and
18 expend the same for care and treatment of tuberculosis
19 residents.
20 15. In counties having less than 1,000,000
21 inhabitants, to take all necessary or proper steps for the
22 extermination of mosquitoes, flies or other insects within
23 the county.
24 16. To install an adequate system of accounts and
25 financial records in the offices and divisions of the
26 county, suitable to the needs of the office and in

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1 accordance with generally accepted principles of
2 accounting for governmental bodies, which system may
3 include such reports as the county board may determine.
4 17. To purchase and hold real estate for the
5 construction and maintenance of motor vehicle parking
6 facilities for persons using county buildings, but the
7 purchase and use of such real estate shall not be for
8 revenue producing purposes.
9 18. To acquire and hold title to real property located
10 within the county, or partly within and partly outside the
11 county by dedication, purchase, gift, legacy or lease, for
12 park and recreational purposes and to charge reasonable
13 fees for the use of or admission to any such park or
14 recreational area and to provide police protection for such
15 park or recreational area. Personnel employed to provide
16 such police protection shall be conservators of the peace
17 within such park or recreational area and shall have power
18 to make arrests on view of the offense or upon warrants for
19 violation of any of the ordinances governing such park or
20 recreational area or for any breach of the peace in the
21 same manner as the police in municipalities organized and
22 existing under the general laws of the State. All such real
23 property outside the county shall be contiguous to the
24 county and within the boundaries of the State of Illinois.
25 19. To appropriate funds from the county treasury to be
26 used to provide supportive social services designed to

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1 prevent the unnecessary institutionalization of elderly
2 residents, or, for operation of, and equipment for, senior
3 citizen centers providing social services to elderly
4 residents.
5 20. To appropriate funds from the county treasury and
6 loan such funds to a county water commission created under
7 the "Water Commission Act", approved June 30, 1984, as now
8 or hereafter amended, in such amounts and upon such terms
9 as the county may determine or the county and the
10 commission may agree. The county shall not under any
11 circumstances be obligated to make such loans. The county
12 shall not be required to charge interest on any such loans.
13 21. To appropriate and expend funds from the county
14 treasury for economic development purposes, including the
15 making of grants to any other governmental entity or
16 commercial enterprise deemed necessary or desirable for
17 the promotion of economic development in the county.
18 22. To lease space on a telecommunications tower to a
19 public or private entity.
20 23. In counties having a population of 100,000 or less
21 and a public building commission organized by the county
22 seat of the county, to cause to be erected or otherwise
23 provided, and to maintain or cause to be maintained,
24 suitable facilities to house students pursuing a
25 post-secondary education at an academic institution
26 located within the county. The county may provide for the

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1 management of the facilities.
2 24. For taxable years 2018 through 2025, to establish a
3 fund in the county treasury for the purpose of accepting
4 contributions from individual taxpayers for exclusively
5 public purposes, as specified under Section 170 of the
6 Internal Revenue Code relating to charitable contributions
7 and gifts. All moneys in the Fund shall be used for those
8 public purposes. The county may provide for a credit
9 against the taxpayer's property tax liability in an amount
10 equal to the amount of the contribution.
11 All contracts for the purchase of coal under this Section
12shall be subject to the provisions of "An Act concerning the
13use of Illinois mined coal in certain plants and institutions",
14filed July 13, 1937, as amended.
15(Source: P.A. 95-197, eff. 8-16-07; 95-813, eff. 1-1-09;
1696-622, eff. 8-24-09.)
17 Section 99. Effective date. This Act takes effect upon
18becoming law.
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