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

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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

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

HB5650 - 2 - LRB098 17676 HLH 52790 b
determination of income and distributive share of income under
Sections 702 and 704 and Subchapter S of the Internal Revenue
Code.
(c) The credit may not be carried back. 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.
(d) A taxpayer claiming the credit under this Section must
maintain and record any information that the Illinois Student
Assistance Commission, the Office of the State Treasurer, or
the Department may require regarding the matching contribution
for which the credit is claimed.
(Source: P.A. 96-198, eff. 8-10-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.