Bill Text: IL HB5853 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Expands the applicability of the natural disaster credit from taxable years that begin prior to January 1, 2018 to taxable years that begin prior to January 1, 2019. Makes a conforming change.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5853 Detail]

Download: Illinois-2017-HB5853-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB5853 Introduced , by Rep. Thomas M. Bennett SYNOPSIS AS INTRODUCED:
35 ILCS 5/226
Amends the Illinois Income Tax Act. Expands the applicability of the natural disaster credit from taxable years that begin prior to January 1, 2018 to taxable years that begin prior to January 1, 2019. Makes a conforming change.
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FISCAL NOTE ACT MAY APPLY
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 226 as follows:
(35 ILCS 5/226)
Sec. 226. Natural disaster credit.
(a) For taxable years that begin on or after January 1,
2017 and begin prior to January 1, 2019 2018, each taxpayer who
owns qualified real property located in a county in Illinois
that was declared a State disaster area by the Governor due to
flooding in 2017 or 2018 is entitled to a credit against the
taxes imposed by subsections (a) and (b) of Section 201 of this
Act in an amount equal to the lesser of $750 or the deduction
allowed (whether or not the taxpayer determines taxable income
under subsection (b) of Section 63 of the Internal Revenue
Code) with respect to the qualified property under Section 165
of the Internal Revenue Code, determined without regard to the
limitations imposed under subsection (h) of that Section. The
township assessor or, if the township assessor is unable, the
chief county assessment officer of the county in which the
property is located, shall issue a certificate to the taxpayer
identifying the taxpayer's property as damaged as a result of

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the natural disaster. The certificate shall include the name
and address of the property owner, as well as the property
index number or permanent index number (PIN) of the damaged
property. The taxpayer shall attach a copy of such certificate
to the taxpayer's return for the taxable year for which the
credit is allowed.
(b) In no event shall a credit under this Section reduce a
taxpayer's liability to less than zero. If the amount of credit
exceeds the tax liability for the year, the excess may be
carried forward and applied to the tax liability for 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 liability, the earlier credit shall be
applied first.
(c) If the taxpayer is a partnership or Subchapter S
corporation, the credit shall be allowed to the partners or
shareholders in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
Subchapter S of the Internal Revenue Code.
(d) A taxpayer is not entitled to the credit under this
Section if the taxpayer receives a Natural Disaster Homestead
Exemption under Section 15-173 of the Property Tax Code with
respect to the qualified real property as a result of the
natural disaster.
(e) The township assessor or, if the township assessor is

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unable to certify, the chief county assessment officer of the
county in which the property is located, shall certify to the
Department a listing of the properties located within the
county that have been damaged as a result of the natural
disaster (including the name and address of the property owner
and the property index number or permanent index number (PIN)
of each damage property).
(f) As used in this Section:
(1) "Qualified real property" means real property that
is: (i) the taxpayer's principal residence or owned by a
small business; (ii) damaged during the taxable year as a
result of a disaster; and (iii) not used in a rental or
leasing business.
(2) "Small business" has the meaning given to that term
in Section 1-75 of the Illinois Administrative Procedure
Act.
(Source: P.A. 100-555, eff. 11-16-17.)