Bill Text: IL SB2833 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for individuals who (i) serve as a volunteer for 100 hours during the taxable year, (ii) do not receive any compensation for their services as a volunteer for the taxable year, and (iii) do not serve on a full-time or part-time career basis for the entity for which they volunteer. Provides that the Department of Revenue may award not more than $5,000,000 in credits under those provisions in any calendar year. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB2833 Detail]

Download: Illinois-2023-SB2833-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2833 Introduced 1/19/2024, by Sen. Paul Faraci SYNOPSIS AS INTRODUCED:
35 ILCS 5/241 new
5 ILCS 100/5-45.55 new
Amends the Illinois Income Tax Act. Creates an income tax credit for individuals who (i) serve as a volunteer for 100 hours during the taxable year, (ii) do not receive any compensation for their services as a volunteer for the taxable year, and (iii) do not serve on a full-time or part-time career basis for the entity for which they volunteer. Provides that the Department of Revenue may award not more than $5,000,000 in credits under those provisions in any calendar year. Effective immediately.
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A BILL FOR
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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
adding Section 241 as follows:
(35 ILCS 5/241 new)
Sec. 241. Volunteer tax credit.
(a) For taxable years beginning on or after January 1,
2024 and beginning prior to January 1, 2029, each individual
who (i) serves as a volunteer for 100 hours during the taxable
year, (ii) does not receive any compensation for his or her
services as a volunteer for the taxable year, and (iii) does
not serve on a full-time or part-time career basis for the
entity for which he or she volunteers may apply to the
Department for a credit against the taxes imposed by
subsections (a) and (b) of Section 201. The amount of the
credit shall be $500 per eligible individual. The aggregate
amount of all tax credits awarded by the Department under this
Section in any calendar year may not exceed $5,000,000.
Credits shall be awarded on a first-come, first-served basis.
(b) A credit under this Section may not reduce a
taxpayer's liability to less than zero.
(c) By January 24 of each year, entities that are

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organized and operated exclusively for charitable, religious,
or educational purposes and possess an active Exemption
Identification Number issued by the Department pursuant to the
Retailers' Occupation Tax Act must notify the Department of
volunteers who (i) volunteered for at least 100 hours during
the immediately preceding calendar year and (ii) did not
receive compensation for their services as a volunteer during
the immediately preceding calendar year. Notification shall be
submitted in the manner specified by the Department.
(d) The Department shall adopt rules to implement and
administer this Section, including rules concerning
applications for the tax credit.
(e) As used in this Section, "volunteer" means a person
who serves, other than on a full-time career basis, for an
entity that is organized and operated exclusively for
charitable, religious, or educational purposes and who possess
an active Exemption Identification Number issued by the
Department of Revenue pursuant to the Retailers' Occupation
Tax Act.
Section 10. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.55 as follows:
(5 ILCS 100/5-45.55 new)
Sec. 5-45.55. Emergency rulemaking; Illinois Income Tax
Act. To provide for the expeditious and timely implementation

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of this amendatory Act of the 103rd General Assembly,
emergency rules implementing this amendatory Act of the 103rd
General Assembly may be adopted in accordance with Section
5-45 by the Department of Revenue. The adoption of emergency
rules authorized by Section 5-45 and this Section is deemed to
be necessary for the public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.