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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1792 Introduced 2/26/2021, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED:
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Amends the Illinois Income Tax Act. Provides that a taxpayer who may claim a qualifying student as a dependent is allowed a credit of up to $2,000 for qualified tuition and fee expenses paid by the taxpayer. Provides that the term qualifying student means a person who (i) is a resident of the State, (ii) is under the age of 24 at the close of the school year for which a credit is sought, and (iii) during the school year for which a credit is sought, is a full-time student enrolled in a program at a qualifying college or university. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | SB1792 | | LRB102 11513 HLH 16847 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Income Tax Act is amended by |
| 5 | | adding Section 232 as follows:
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| 6 | | (35 ILCS 5/232 new) |
| 7 | | Sec. 232. College tuition expense credit. |
| 8 | | (a) For taxable years ending on or after December 31, |
| 9 | | 2021, a taxpayer who may claim one or more qualifying students |
| 10 | | as a dependent shall be allowed a credit up to $2,000 against |
| 11 | | the tax imposed by subsections (a) and (b) of this Section for |
| 12 | | qualified tuition and fee expenses paid by the taxpayer during |
| 13 | | the taxable year on behalf of the qualifying student or |
| 14 | | students. |
| 15 | | (b) In no event shall a credit under this Section reduce a |
| 16 | | taxpayer's liability to less than zero. If the amount of |
| 17 | | credit exceeds the tax liability for the year, the excess may |
| 18 | | be carried and applied to the tax liability for the 5 taxable |
| 19 | | years following the excess credit year. The tax credit shall |
| 20 | | be applied to the earliest year for which there is a tax |
| 21 | | liability. If there are credits for more than one year that are |
| 22 | | available to offset liability, the earlier credit shall be |
| 23 | | applied first. |
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| | SB1792 | - 2 - | LRB102 11513 HLH 16847 b |
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| 1 | | (c) For the purpose of this Section: |
| 2 | | "Qualifying college or university" means any public or |
| 3 | | private university, community college, vocational school, or |
| 4 | | other postsecondary educational institution that is physically |
| 5 | | located in the State and is eligible to participate in a |
| 6 | | student loan program administered by the United States |
| 7 | | Department of Education. |
| 8 | | "Qualifying student" means an individual who (i) is a |
| 9 | | resident of the State, (ii) is under the age of 24 at the close |
| 10 | | of the school year for which a credit is sought, and (iii) |
| 11 | | during the school year for which a credit is sought, is a |
| 12 | | full-time student enrolled in a program at a qualifying |
| 13 | | college or university at which the student is enrolled. |
| 14 | | "Qualified tuition and fee expense" means the amount |
| 15 | | incurred by on behalf of a qualifying student for tuition, |
| 16 | | book fees, and lab fees at the qualifying college of |
| 17 | | university at which the student is enrolled. |
| 18 | | (d) Notwithstanding any other provision of law, for |
| 19 | | taxable years ending on or after December 31, 2021, no |
| 20 | | taxpayer may claim a credit under this Section if the |
| 21 | | taxpayer's adjusted gross income for the taxable year exceeds |
| 22 | | (i) $250,000, in the case of spouses filing a joint federal tax |
| 23 | | return or (ii) $125,000, in the case of all other taxpayers. |
| 24 | | (e) This Section is exempt from the provisions of Section |
| 25 | | 250.
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| 26 | | Section 99. Effective date. This Act takes effect upon |