Bill Text: IL HB5650 | 2013-2014 | 98th General Assembly | Introduced


Bill Title: Amends the Illinois Income Tax Act. Provides that each taxpayer who makes a contribution to a specified individual College Savings Pool Account or to the Illinois Prepaid Tuition Trust Fund in an amount matching a contribution made in the same taxable year by an employee of the taxpayer to that Account or Fund is entitled to a credit in an amount equal to 25% of that matching contribution, but not to exceed $800 (rather than $500) per contributing employee per taxable year. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB5650 Detail]

Download: Illinois-2013-HB5650-Introduced.html


98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5650

Introduced , by Rep. Arthur Turner

SYNOPSIS AS INTRODUCED:
35 ILCS 5/218

Amends the Illinois Income Tax Act. Provides that each taxpayer who makes a contribution to a specified individual College Savings Pool Account or to the Illinois Prepaid Tuition Trust Fund in an amount matching a contribution made in the same taxable year by an employee of the taxpayer to that Account or Fund is entitled to a credit in an amount equal to 25% of that matching contribution, but not to exceed $800 (rather than $500) per contributing employee per taxable year. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning state government.
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 218 as follows:
6 (35 ILCS 5/218)
7 Sec. 218. Credit for student-assistance contributions.
8 (a) For taxable years ending on or after December 31, 2009
9and on or before December 30, 2020, each taxpayer who, during
10the taxable year, makes a contribution (i) to a specified
11individual College Savings Pool Account under Section 16.5 of
12the State Treasurer Act or (ii) to the Illinois Prepaid Tuition
13Trust Fund in an amount matching a contribution made in the
14same taxable year by an employee of the taxpayer to that
15Account or Fund is entitled to a credit against the tax imposed
16under subsections (a) and (b) of Section 201 in an amount equal
17to 25% of that matching contribution, but not to exceed $800
18$500 per contributing employee per taxable year.
19 (b) For partners, shareholders of Subchapter S
20corporations, and owners of limited liability companies, if the
21liability company is treated as a partnership for purposes of
22federal and State income taxation, there is allowed a credit
23under this Section to be determined in accordance with the

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1determination of income and distributive share of income under
2Sections 702 and 704 and Subchapter S of the Internal Revenue
3Code.
4 (c) The credit may not be carried back. If the amount of
5the credit exceeds the tax liability for the year, the excess
6may be carried forward and applied to the tax liability of the
75 taxable years following the excess credit year. The tax
8credit shall be applied to the earliest year for which there is
9a tax liability. If there are credits for more than one year
10that are available to offset a liability, the earlier credit
11shall be applied first.
12 (d) A taxpayer claiming the credit under this Section must
13maintain and record any information that the Illinois Student
14Assistance Commission, the Office of the State Treasurer, or
15the Department may require regarding the matching contribution
16for which the credit is claimed.
17(Source: P.A. 96-198, eff. 8-10-09.)
18 Section 99. Effective date. This Act takes effect upon
19becoming law.
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