Bill Text: IL SB0340 | 2021-2022 | 102nd General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Income Tax Act. Provides that the credit for student-assistance contributions sunsets on December 31, 2031 (currently, December 30, 2021). Provides that, for taxable years ending on or after December 31, 2021, the maximum student-assistance credit is $1,000 per contributing employee per taxable year (currently, $500). Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2021-08-06 - Public Act . . . . . . . . . 102-0289 [SB0340 Detail]

Download: Illinois-2021-SB0340-Enrolled.html

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SB0340 Enrolled LRB102 04218 HLH 14235 b
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 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 31, 2024 December 30, 2021, 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 $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

SB0340 Enrolled - 2 - LRB102 04218 HLH 14235 b
credit under this Section to be determined 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.
(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. 101-645, eff. 6-26-20.)
Section 99. Effective date. This Act takes effect upon
becoming law.