99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0676
 
Introduced 2/3/2015, by Sen. Toi W. Hutchinson
 
SYNOPSIS AS INTRODUCED:



 
35 ILCS 5/212

 Amends the Illinois Income Tax Act. Increases the earned income tax credit to (i) 12% of the federal tax credit for each taxable year beginning on or after January 1, 2015 and ending prior to December 31, 2016, (ii) 14% of the federal tax credit for each taxable year beginning on or after January 1, 2016 and ending prior to December 31, 2017, (iii) 16% of the federal tax credit for each taxable year beginning on or after January 1, 2017 and ending prior to December 31, 2018, (iv) 18% of the federal tax credit for each taxable year beginning on or after January 1, 2018 and ending prior to December 31, 2019, and (v) 20% of the federal tax credit for each taxable year beginning on or after January 1, 2019. Effective immediately.



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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


SB0676LRB099 07177 HLH 27270 b



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 212 as follows:

6 (35 ILCS 5/212)

7 Sec. 212. Earned income tax credit.


8 (a) With respect to the federal earned income tax credit 
9allowed for the
taxable year under Section 32 of the federal 
10Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer 
11is entitled to a credit against the tax imposed by
subsections 
12(a) and (b) of Section 201 in an amount equal to
(i) 5% of the 
13federal tax credit for each taxable year beginning on or after

14January 1,
2000 and ending prior to December 31, 2012, (ii) 
157.5% of the federal tax credit for each taxable year beginning 
16on or after January 1, 2012 and ending prior to December 31, 
172013, and (iii) 10% of the federal tax credit for each taxable 
18year beginning on or after January 1, 2013 and ending prior to 
19December 31, 2015, (iv) 12% of the federal tax credit for each 
20taxable year beginning on or after January 1, 2015 and ending 
21prior to December 31, 2016, (v) 14% of the federal tax credit 
22for each taxable year beginning on or after January 1, 2016 and 
23ending prior to December 31, 2017, (vi) 16% of the federal tax 
 
 
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1credit for each taxable year beginning on or after January 1, 
22017 and ending prior to December 31, 2018, (vii) 18% of the 
3federal tax credit for each taxable year beginning on or after 
4January 1, 2018 and ending prior to December 31, 2019, and 
5(viii) 20% of the federal tax credit for each taxable year 
6beginning on or after January 1, 2019.


7 For a non-resident or part-year resident, the amount of the 
8credit under this
Section shall be in proportion to the amount 
9of income attributable to this
State.


10 (b) For taxable years beginning before January 1, 2003, in 
11no event
shall a credit under this Section reduce the 
12taxpayer's
liability to less than zero. For each taxable year 
13beginning on or after
January 1, 2003, if the amount of the 
14credit exceeds the income tax liability
for the applicable tax 
15year, then the excess credit shall be refunded to the
taxpayer. 
16The amount of a refund shall not be included in the taxpayer's

17income or resources for the purposes of determining eligibility 
18or benefit
level in any means-tested benefit program 
19administered by a governmental entity
unless required by 
20federal law.


21 (c) This Section is exempt from the provisions of Section 
22250.


23(Source: P.A. 97-652, eff. 6-1-12.)



24 Section 99. Effective date. This Act takes effect upon 
25becoming law.