Bill Text: IL HB4998 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Removes a provision that sets forth the basic amount of the standard exemption for taxable years ending on or after December 31, 2023 and prior to December 31, 2024, and restores the cost-of-living adjustment for the basic amount that had been operative before the effective date of Public Act 103-9. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2024-04-19 - Added Chief Co-Sponsor Rep. Patrick Sheehan [HB4998 Detail]

Download: Illinois-2023-HB4998-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4998 Introduced , by Rep. Amy Elik SYNOPSIS AS INTRODUCED:
35 ILCS 5/204 from Ch. 120, par. 2-204
5 ILCS 100/5-45.55 new
Amends the Illinois Income Tax Act. Removes a provision that sets forth the basic amount of the standard exemption for taxable years ending on or after December 31, 2023 and prior to December 31, 2024, and restores the cost-of-living adjustment for the basic amount that had been operative before the effective date of Public Act 103-9. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.
LRB103 37272 HLH 67393 b
A BILL FOR
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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
changing Section 204 as follows:
(35 ILCS 5/204) (from Ch. 120, par. 2-204)
Sec. 204. Standard exemption.
(a) Allowance of exemption. In computing net income under
this Act, there shall be allowed as an exemption the sum of the
amounts determined under subsections (b), (c) and (d),
multiplied by a fraction the numerator of which is the amount
of the taxpayer's base income allocable to this State for the
taxable year and the denominator of which is the taxpayer's
total base income for the taxable year.
(b) Basic amount. For the purpose of subsection (a) of
this Section, except as provided by subsection (a) of Section
205 and in this subsection, each taxpayer shall be allowed a
basic amount of $1000, except that for corporations the basic
amount shall be zero for tax years ending on or after December
31, 2003, and for individuals the basic amount shall be:
(1) for taxable years ending on or after December 31,
1998 and prior to December 31, 1999, $1,300;
(2) for taxable years ending on or after December 31,

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1999 and prior to December 31, 2000, $1,650;
(3) for taxable years ending on or after December 31,
2000 and prior to December 31, 2012, $2,000;
(4) for taxable years ending on or after December 31,
2012 and prior to December 31, 2013, $2,050;
(5) for taxable years ending on or after December 31,
2013 and on or before December 31, 2028 December 31, 2022,
$2,050 plus the cost-of-living adjustment under subsection
(d-5);
(6) (blank); for taxable years ending on or after
December 31, 2023 and prior to December 31, 2024, $2,425;
(7) (blank). for taxable years ending on or after
December 31, 2024 and on or before December 31, 2028,
$2,050 plus the cost-of-living adjustment under subsection
(d-5).
For taxable years ending on or after December 31, 1992, a
taxpayer whose Illinois base income exceeds the basic amount
and who is claimed as a dependent on another person's tax
return under the Internal Revenue Code shall not be allowed
any basic amount under this subsection.
(c) Additional amount for individuals. In the case of an
individual taxpayer, there shall be allowed for the purpose of
subsection (a), in addition to the basic amount provided by
subsection (b), an additional exemption equal to the basic
amount for each exemption in excess of one allowable to such
individual taxpayer for the taxable year under Section 151 of

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the Internal Revenue Code.
(d) Additional exemptions for an individual taxpayer and
his or her spouse. In the case of an individual taxpayer and
his or her spouse, he or she shall each be allowed additional
exemptions as follows:
(1) Additional exemption for taxpayer or spouse 65
years of age or older.
(A) For taxpayer. An additional exemption of
$1,000 for the taxpayer if he or she has attained the
age of 65 before the end of the taxable year.
(B) For spouse when a joint return is not filed. An
additional exemption of $1,000 for the spouse of the
taxpayer if a joint return is not made by the taxpayer
and his spouse, and if the spouse has attained the age
of 65 before the end of such taxable year, and, for the
calendar year in which the taxable year of the
taxpayer begins, has no gross income and is not the
dependent of another taxpayer.
(2) Additional exemption for blindness of taxpayer or
spouse.
(A) For taxpayer. An additional exemption of
$1,000 for the taxpayer if he or she is blind at the
end of the taxable year.
(B) For spouse when a joint return is not filed. An
additional exemption of $1,000 for the spouse of the
taxpayer if a separate return is made by the taxpayer,

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and if the spouse is blind and, for the calendar year
in which the taxable year of the taxpayer begins, has
no gross income and is not the dependent of another
taxpayer. For purposes of this paragraph, the
determination of whether the spouse is blind shall be
made as of the end of the taxable year of the taxpayer;
except that if the spouse dies during such taxable
year such determination shall be made as of the time of
such death.
(C) Blindness defined. For purposes of this
subsection, an individual is blind only if his or her
central visual acuity does not exceed 20/200 in the
better eye with correcting lenses, or if his or her
visual acuity is greater than 20/200 but is
accompanied by a limitation in the fields of vision
such that the widest diameter of the visual fields
subtends an angle no greater than 20 degrees.
(d-5) Cost-of-living adjustment. For purposes of item (5)
of subsection (b), the cost-of-living adjustment for any
calendar year and for taxable years ending prior to the end of
the subsequent calendar year is equal to $2,050 times the
percentage (if any) by which:
(1) the Consumer Price Index for the preceding
calendar year, exceeds
(2) the Consumer Price Index for the calendar year
2011.

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The Consumer Price Index for any calendar year is the
average of the Consumer Price Index as of the close of the
12-month period ending on August 31 of that calendar year.
The term "Consumer Price Index" means the last Consumer
Price Index for All Urban Consumers published by the United
States Department of Labor or any successor agency.
If any cost-of-living adjustment is not a multiple of $25,
that adjustment shall be rounded to the next lowest multiple
of $25.
(e) Cross reference. See Article 3 for the manner of
determining base income allocable to this State.
(f) Application of Section 250. Section 250 does not apply
to the amendments to this Section made by Public Act 90-613.
(g) Notwithstanding any other provision of law, for
taxable years beginning on or after January 1, 2017, no
taxpayer may claim an exemption under this Section if the
taxpayer's adjusted gross income for the taxable year exceeds
(i) $500,000, in the case of spouses filing a joint federal tax
return or (ii) $250,000, in the case of all other taxpayers.
(Source: P.A. 103-9, eff. 6-7-23.)
Section 10. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.55 as follows:
(5 ILCS 100/5-45.55 new)
Sec. 5-45.55. Emergency rulemaking; income tax. To provide

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for the expeditious and timely implementation of this
amendatory Act of the 103rd General Assembly, emergency rules
implementing this amendatory Act of the 103rd General Assembly
may be adopted in accordance with Section 5-45 by the
Department of Revenue. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.