Bill Text: IL HB4858 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Amends the Illinois Income Tax Act. Provides that a qualified taxpayer who has annual student loan repayment expenses is eligible for an income tax credit equal to the taxpayer's student loan repayment expenses for the taxable year, but not to exceed $3,000 per taxpayer. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4858 Detail]

Download: Illinois-2023-HB4858-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4858 Introduced , by Rep. Mark L. Walker SYNOPSIS AS INTRODUCED:
35 ILCS 5/241 new
Amends the Illinois Income Tax Act. Provides that a qualified taxpayer who has annual student loan repayment expenses is eligible for an income tax credit equal to the taxpayer's student loan repayment expenses for the taxable year, but not to exceed $3,000 per taxpayer. Effective immediately.
LRB103 35970 HLH 66057 b
A BILL FOR
HB4858 LRB103 35970 HLH 66057 b
AN ACT concerning revenue.
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
adding Section 241 as follows:
(35 ILCS 5/241 new)
Sec. 241. Student loan repayment credit.
(a) For taxable years beginning on or after January 1,
2024, a qualified taxpayer may apply to the Department for a
credit against the tax imposed by subsections (a) and (b) of
Section 201. The amount of the credit shall be equal to the
taxpayer's student loan repayment expenses for the taxable
year, but not to exceed $3,000 per taxpayer in any taxable
year.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.

HB4858 - 2 - LRB103 35970 HLH 66057 b
(c) As used in this Section, "qualified taxpayer" means a
taxpayer who (i) has an associate degree, a Bachelor's degree,
or a graduate degree from an institution of higher education
accredited by the U.S. Department of Education and (ii) has
annual student loan repayment expenses.