Bill Text: IL SB0071 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Illinois Income Tax Act. Provides a tax credit to 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 tornadoes in 2018. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-13 - Placed on Calendar Order of 3rd Reading March 14, 2019 [SB0071 Detail]

Download: Illinois-2019-SB0071-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0071

Introduced 1/23/2019, by Sen. Andy Manar

SYNOPSIS AS INTRODUCED:
35 ILCS 5/226

Amends the Illinois Income Tax Act. Provides a tax credit to 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 tornadoes in 2018. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.
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 226 as follows:
6 (35 ILCS 5/226)
7 Sec. 226. Natural disaster credit.
8 (a) For taxable years that begin on or after January 1,
92017 and begin prior to January 1, 2019, each taxpayer who owns
10qualified real property located in a county in Illinois that
11was declared a State disaster area by the Governor due to
12flooding in 2017 or 2018 is entitled to a credit against the
13taxes imposed by subsections (a) and (b) of Section 201 of this
14Act in an amount equal to the lesser of $750 or the deduction
15allowed (whether or not the taxpayer determines taxable income
16under subsection (b) of Section 63 of the Internal Revenue
17Code) with respect to the qualified property under Section 165
18of the Internal Revenue Code, determined without regard to the
19limitations imposed under subsection (h) of that Section.
20 For taxable years that begin on or after January 1, 2019
21and begin prior to January 1, 2020, each taxpayer who owns
22qualified real property located in a county in Illinois that
23was declared a State disaster area by the Governor due to

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1tornadoes in 2018 is entitled to a credit against the taxes
2imposed by subsections (a) and (b) of Section 201 of this Act
3in an amount equal to the lesser of $750 or the deduction
4allowed (whether or not the taxpayer determines taxable income
5under subsection (b) of Section 63 of the Internal Revenue
6Code) with respect to the qualified property under Section 165
7of the Internal Revenue Code, determined without regard to the
8limitations imposed under subsection (h) of that Section.
9 The township assessor or, if the township assessor is
10unable, the chief county assessment officer of the county in
11which the property is located, shall issue a certificate to the
12taxpayer identifying the taxpayer's property as damaged as a
13result of the natural disaster. The certificate shall include
14the name and address of the property owner, as well as the
15property index number or permanent index number (PIN) of the
16damaged property. The taxpayer shall attach a copy of such
17certificate to the taxpayer's return for the taxable year for
18which the credit is allowed.
19 (b) In no event shall a credit under this Section reduce a
20taxpayer's liability to less than zero. If the amount of credit
21exceeds the tax liability for the year, the excess may be
22carried forward and applied to the tax liability for the 5
23taxable years following the excess credit year. The tax credit
24shall be applied to the earliest year for which there is a tax
25liability. If there are credits for more than one year that are
26available to offset liability, the earlier credit shall be

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1applied first.
2 (c) If the taxpayer is a partnership or Subchapter S
3corporation, the credit shall be allowed to the partners or
4shareholders in accordance with the determination of income and
5distributive share of income under Sections 702 and 704 and
6Subchapter S of the Internal Revenue Code.
7 (d) A taxpayer is not entitled to the credit under this
8Section if the taxpayer receives a Natural Disaster Homestead
9Exemption under Section 15-173 of the Property Tax Code with
10respect to the qualified real property as a result of the
11natural disaster.
12 (e) The township assessor or, if the township assessor is
13unable to certify, the chief county assessment officer of the
14county in which the property is located, shall certify to the
15Department a listing of the properties located within the
16county that have been damaged as a result of the natural
17disaster (including the name and address of the property owner
18and the property index number or permanent index number (PIN)
19of each damage property).
20 (f) As used in this Section:
21 (1) "Qualified real property" means real property that
22 is: (i) the taxpayer's principal residence or owned by a
23 small business; (ii) damaged during the taxable year as a
24 result of a disaster; and (iii) not used in a rental or
25 leasing business.
26 (2) "Small business" has the meaning given to that term

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1 in Section 1-75 of the Illinois Administrative Procedure
2 Act.
3 (g) Nothing in this Act prohibits the disclosure of
4information by officials of a county or municipality involving
5reports of damaged property or the owners of damaged property
6if that disclosure is made to a township or county assessment
7official in connection with a credit obtained or sought under
8this Section.
9(Source: P.A. 100-555, eff. 11-16-17; 100-587, eff. 6-4-18;
10100-731, eff. 1-1-19; revised 8-30-18.)
11 Section 99. Effective date. This Act takes effect upon
12becoming law.
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