Bill Text: IL SB4182 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Invest in Kids Act and the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2022, the Invest in Kids credit may be taken for qualified contributions for which the taxpayer claims a federal income tax deduction. Effective immediately.

Spectrum: Partisan Bill (Republican 10-0)

Status: (Introduced - Dead) 2022-03-22 - Added as Co-Sponsor Sen. Dave Syverson [SB4182 Detail]

Download: Illinois-2021-SB4182-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB4182 Introduced 2/23/2022, by Sen. Jason A. Barickman SYNOPSIS AS INTRODUCED:
35 ILCS 5/224
35 ILCS 40/10
Amends the Invest in Kids Act and the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2022, the Invest in Kids credit may be taken for qualified contributions for which the taxpayer claims a federal income tax deduction. 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
changing Section 224 as follows:
(35 ILCS 5/224)
Sec. 224. Invest in Kids credit.
(a) For taxable years beginning on or after January 1,
2018 and ending before January 1, 2023, each taxpayer for whom
a tax credit has been awarded by the Department under the
Invest in Kids Act is entitled to a credit against the tax
imposed under subsections (a) and (b) of Section 201 of this
Act in an amount equal to the amount awarded under the Invest
in Kids Act.
(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, the credit under this
Section shall 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 and may not reduce

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the taxpayer's liability to less than zero. 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 the liability, the earlier credit
shall be applied first.
(d) For tax years beginning prior to January 1, 2022, a A
tax credit awarded by the Department under the Invest in Kids
Act may not be claimed for any qualified contribution for
which the taxpayer claims a federal income tax deduction.
(Source: P.A. 100-465, eff. 8-31-17.)
Section 10. The Invest in Kids Act is amended by changing
Section 10 as follows:
(35 ILCS 40/10)
(Section scheduled to be repealed on January 1, 2025)
Sec. 10. Credit awards.
(a) The Department shall award credits against the tax
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act to taxpayers who make qualified
contributions. For contributions made under this Act, the
credit shall be equal to 75% of the total amount of qualified
contributions made by the taxpayer during a taxable year, not

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to exceed a credit of $1,000,000 per taxpayer.
(b) The aggregate amount of all credits the Department may
award under this Act in any calendar year may not exceed
$75,000,000.
(c) Contributions made by corporations (including
Subchapter S corporations), partnerships, and trusts under
this Act may not be directed to a particular subset of schools,
a particular school, a particular group of students, or a
particular student. Contributions made by individuals under
this Act may be directed to a particular subset of schools or a
particular school but may not be directed to a particular
group of students or a particular student.
(d) For tax years beginning prior to January 1, 2022, no No
credit shall be taken under this Act for any qualified
contribution for which the taxpayer claims a federal income
tax deduction.
(e) Credits shall be awarded in a manner, as determined by
the Department, that is geographically proportionate to
enrollment in recognized non-public schools in Illinois. If
the cap on the aggregate credits that may be awarded by the
Department is not reached by June 1 of a given year, the
Department shall award remaining credits on a first-come,
first-served basis, without regard to the limitation of this
subsection.
(f) Credits awarded for donations made to a technical
academy shall be awarded without regard to subsection (e), but

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shall not exceed 15% of the annual statewide program cap. For
the purposes of this subsection, "technical academy" means a
technical academy that is registered with the Board within 30
days after the effective date of this amendatory Act of the
102nd General Assembly.
(Source: P.A. 102-16, eff. 6-17-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.