Bill Text: IL SB2245 | 2011-2012 | 97th General Assembly | Amended
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB2245 Detail]
Download: Illinois-2011-SB2245-Amended.html
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1 | AMENDMENT TO SENATE BILL 2245
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2 | AMENDMENT NO. ______. Amend Senate Bill 2245 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | adding Section 221 as follows:
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6 | (35 ILCS 5/221 new) | ||||||
7 | Sec. 221. Educational Improvement Tax Credit. | ||||||
8 | (a) The General Assembly finds and declares that the | ||||||
9 | Constitution of the State of Illinois provides that a | ||||||
10 | "fundamental goal of the People of the State is the educational | ||||||
11 | development of all persons to the limits of their capacities", | ||||||
12 | and that the educational development of every school student | ||||||
13 | serves the public purposes of the State. In order to enable | ||||||
14 | Illinois students to develop "to the limits of their | ||||||
15 | capacities", all students must have access to expanded | ||||||
16 | educational opportunities. This Section is in the public |
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1 | interest, for the public benefit, and serves a secular purpose. | ||||||
2 | (b) An educational improvement tax credit program is hereby | ||||||
3 | established to enhance the educational opportunities available | ||||||
4 | to all students in this State. | ||||||
5 | For tax years beginning after December 31, 2011, a taxpayer | ||||||
6 | shall be allowed a credit, not in excess of $100,000, against | ||||||
7 | the tax imposed by subsections (a) and (b) of Section 201 of | ||||||
8 | this Act for contributions to a qualified student assistance | ||||||
9 | organization in the taxable year in which the contribution is | ||||||
10 | made. The credit shall not exceed 90% of each dollar | ||||||
11 | contributed during the taxable year by the taxpayer. For | ||||||
12 | partners, shareholders of Subchapter S corporations, and | ||||||
13 | owners of limited liability companies, if the liability company | ||||||
14 | is treated as a partnership for purposes of federal and State | ||||||
15 | income taxation, there shall be allowed a credit under this | ||||||
16 | Section to be determined in accordance with the determination | ||||||
17 | of income and distributive share of income under Section 702 | ||||||
18 | and 704 and Subchapter S of the Internal Revenue Code. | ||||||
19 | In no event may any credit be claimed for amounts deducted | ||||||
20 | pursuant to Section 170 of the Internal Revenue Code in | ||||||
21 | arriving at taxable income. | ||||||
22 | (c) For purposes of this Section: | ||||||
23 | "Contribution" means a donation of cash. | ||||||
24 | "Qualified student assistance organization" means a | ||||||
25 | nonprofit entity that: | ||||||
26 | (1) is exempt from federal taxation under Section |
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1 | 501(c)(3) of the Internal Revenue Code of 1986 and any | ||||||
2 | similar provision of a later compilation; and | ||||||
3 | (2) contributes at least 90% of its annual receipts, as | ||||||
4 | required by the by-laws of the organization and as | ||||||
5 | documented by the nonprofit organizations annual AG990-IL | ||||||
6 | Charitable Organization Annual Report, or, if the | ||||||
7 | organization is exempt from filing such a report, by a | ||||||
8 | report containing identical information to that contained | ||||||
9 | in the AG990-IL and certified by the President and | ||||||
10 | Treasurer of the organization, or alternatively, two | ||||||
11 | trustees of the organization, either to scholarships for | ||||||
12 | qualifying students at a school or to enhance educational | ||||||
13 | options for qualifying students by providing qualifying | ||||||
14 | students access to secular, neutral, non-ideological | ||||||
15 | programs, or activities outside the curriculum or academic | ||||||
16 | program of a school, as long as the program or activities | ||||||
17 | meet the requirements set forth in rules promulgated by the | ||||||
18 | Illinois State Board of Education. An entity that has been | ||||||
19 | in existence less than 2 years prior to the filing of an | ||||||
20 | application under subsection (f) of this Section shall meet | ||||||
21 | the requirements of this subsection if its charter, bylaws | ||||||
22 | or other governing instrument requires that it contribute | ||||||
23 | 90% of its annual receipts for the purposes described in | ||||||
24 | this subsection. | ||||||
25 | "Qualifying student" means an individual who: | ||||||
26 | (1) is a resident of the State of Illinois; |
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1 | (2) is under the age of 21 during the calendar year for | ||||||
2 | which a credit is sought; | ||||||
3 | (3) during the calendar year for which a credit is | ||||||
4 | sought is a full-time pupil enrolled in a kindergarten | ||||||
5 | through 12th grade education program at any school, as | ||||||
6 | defined in this subsection (c); and | ||||||
7 | (4) is a child of a parent or parents, or is under the | ||||||
8 | legal guardianship of an individual or individuals, with a | ||||||
9 | base income of not more than $50,000 and resides in the | ||||||
10 | household with those parents or guardians, provided that if | ||||||
11 | there is more than one dependent member of the household | ||||||
12 | under the age of 21, counting the qualifying student, then | ||||||
13 | this annual income requirement shall be increased by | ||||||
14 | $10,000 for each dependent member of the household under | ||||||
15 | the age of 21 in excess of the one qualifying student. | ||||||
16 | Qualified student assistant organizations shall be | ||||||
17 | responsible for determining whether a student is a | ||||||
18 | qualifying student, pursuant to rules adopted by the | ||||||
19 | Illinois State Board of Education. | ||||||
20 | "School" means any public or State-recognized non-public | ||||||
21 | elementary or secondary school in Illinois that is in | ||||||
22 | compliance with Title VI of the Civil Rights Act of 1964 and | ||||||
23 | attendance at which satisfies the requirements of Section 26-1 | ||||||
24 | of the School Code. | ||||||
25 | (d) No tax credit established by this Section is allowed if | ||||||
26 | the taxpayer designates a contribution to a student assistance |
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1 | organization for the direct benefit of any particular | ||||||
2 | qualifying student. | ||||||
3 | (e) Qualified student assistance organizations shall | ||||||
4 | provide scholarships or funding for enhanced educational | ||||||
5 | options without limiting availability to only students of one | ||||||
6 | school. | ||||||
7 | (f) A tax credit granted under this Section that is not | ||||||
8 | used in the taxable year in which the contribution was made | ||||||
9 | shall not be carried forward or carried back and is not | ||||||
10 | refundable or transferable. | ||||||
11 | (g) A taxpayer must apply annually to the Department and | ||||||
12 | receive approval for a tax credit under this Section prior to | ||||||
13 | making a contribution to a student assistance organization. | ||||||
14 | Applicants must be submitted to the Department no later than | ||||||
15 | March 31 each year for contributions to be made for tax years | ||||||
16 | ending on or after July 1 of that same year. On May 1 of each | ||||||
17 | year, the Department shall, on a random basis, select | ||||||
18 | applications until the total aggregate amount of all requested | ||||||
19 | tax credits equals the maximum provided for in subsection (h). | ||||||
20 | The Department shall adopt rules pursuant to the requirements | ||||||
21 | of the Illinois Administrative Procedure Act that set forth the | ||||||
22 | information the Department can require on the tax credit | ||||||
23 | application and the manner in which the tax credit lottery is | ||||||
24 | to be conducted. | ||||||
25 | (h) The total aggregate amount of all approved tax credits | ||||||
26 | shall not exceed $30,000,000 in any State fiscal year. |
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1 | (i) The Department shall adopt rules consistent with this | ||||||
2 | Section for the administration of the educational improvement | ||||||
3 | tax credit program. | ||||||
4 | (j) A scholarship received by a qualifying student shall | ||||||
5 | not be considered to be taxable income. | ||||||
6 | (k) This Section is exempt from the provisions of Section | ||||||
7 | 250.
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.".
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