The provisions of HB2429 would specifically benefit low to moderate-income renters, as eligibility for the credit is contingent upon several criteria, including a federal adjusted gross income threshold not exceeding 200% of the poverty guidelines. Additionally, this legislation would ensure that renters who spend more than 30% of their income on housing are provided some form of financial relief through tax credits. This could potentially contribute to improving housing affordability across different regions of Illinois.
Summary
House Bill 2429 amends the Illinois Income Tax Act to create a new income tax credit aimed at individual taxpayers who rent their principal residences in Illinois. The bill stipulates that qualifying renters can receive a tax credit equivalent to 5% of their documented rental payments for the taxable year. This credit is designed to alleviate some financial burden on tenants, particularly in a state where housing costs are a significant concern for many residents.
Contention
Notable points of contention may arise regarding the implementation of the new tax credit, particularly around its potential cost to the state and implications for budget allocations. There may be debates concerning the adequacy of the income thresholds set for eligibility, with some advocating for broader or more targeted assistance for those in need. Additionally, provisions that allow the Department to establish a maximum dollar amount of the credit based on regional fair market rents might create disparities in how much relief renters receive based on their location within Illinois.