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Illinois House Bill HB3430

Illinois 2023-2024 Regular Session

Illinois House Bill HB3430 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3430 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED: 35 ILCS 5/22435 ILCS 40/4035 ILCS 40/65 Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2023). Effective immediately. LRB103 30146 DTM 56570 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3430 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED: 35 ILCS 5/22435 ILCS 40/4035 ILCS 40/65 35 ILCS 5/224 35 ILCS 40/40 35 ILCS 40/65 Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2023). Effective immediately. LRB103 30146 DTM 56570 b LRB103 30146 DTM 56570 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3430 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:
33 35 ILCS 5/22435 ILCS 40/4035 ILCS 40/65 35 ILCS 5/224 35 ILCS 40/40 35 ILCS 40/65
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77 Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2023). Effective immediately.
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1010 A BILL FOR
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1313 1 AN ACT concerning revenue.
1414 2 Be it enacted by the People of the State of Illinois,
1515 3 represented in the General Assembly:
1616 4 Section 5. The Illinois Income Tax Act is amended by
1717 5 changing Section 224 as follows:
1818 6 (35 ILCS 5/224)
1919 7 Sec. 224. Invest in Kids credit.
2020 8 (a) For taxable years beginning on or after January 1,
2121 9 2018 and ending before January 1, 2024, each taxpayer for whom
2222 10 a tax credit has been awarded by the Department under the
2323 11 Invest in Kids Act is entitled to a credit against the tax
2424 12 imposed under subsections (a) and (b) of Section 201 of this
2525 13 Act in an amount equal to the amount awarded under the Invest
2626 14 in Kids Act.
2727 15 (b) For partners, shareholders of subchapter S
2828 16 corporations, and owners of limited liability companies, if
2929 17 the liability company is treated as a partnership for purposes
3030 18 of federal and State income taxation, the credit under this
3131 19 Section shall be determined in accordance with the
3232 20 determination of income and distributive share of income under
3333 21 Sections 702 and 704 and subchapter S of the Internal Revenue
3434 22 Code.
3535 23 (c) The credit may not be carried back and may not reduce
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4141 35 ILCS 5/224
4242 35 ILCS 40/40
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4444 Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies permanently (currently, the credit applies for taxable years ending before January 1, 2023). Effective immediately.
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4747 A BILL FOR
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7474 1 the taxpayer's liability to less than zero. If the amount of
7575 2 the credit exceeds the tax liability for the year, the excess
7676 3 may be carried forward and applied to the tax liability of the
7777 4 5 taxable years following the excess credit year. The tax
7878 5 credit shall be applied to the earliest year for which there is
7979 6 a tax liability. If there are credits for more than one year
8080 7 that are available to offset the liability, the earlier credit
8181 8 shall be applied first.
8282 9 (d) A tax credit awarded by the Department under the
8383 10 Invest in Kids Act may not be claimed for any qualified
8484 11 contribution for which the taxpayer claims a federal income
8585 12 tax deduction.
8686 13 (e) This Section is exempt from the provisions of Section
8787 14 250.
8888 15 (Source: P.A. 102-699, eff. 4-19-22.)
8989 16 Section 10. The Invest in Kids Act is amended by changing
9090 17 Sections 40 and 65 as follows:
9191 18 (35 ILCS 40/40)
9292 19 (Section scheduled to be repealed on January 1, 2025)
9393 20 Sec. 40. Scholarship granting organization
9494 21 responsibilities.
9595 22 (a) Before granting a scholarship for an academic year,
9696 23 all scholarship granting organizations shall assess and
9797 24 document each student's eligibility for the academic year.
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108108 1 (b) A scholarship granting organization shall grant
109109 2 scholarships only to eligible students.
110110 3 (c) A scholarship granting organization shall allow an
111111 4 eligible student to attend any qualified school of the
112112 5 student's choosing, subject to the availability of funds.
113113 6 (d) In granting scholarships, beginning in the 2022-2023
114114 7 school year and for each school year thereafter, a scholarship
115115 8 granting organization shall give priority to eligible students
116116 9 who received a scholarship from a scholarship granting
117117 10 organization during the previous school year. Second priority
118118 11 shall be given to the following priority groups:
119119 12 (1) (blank);
120120 13 (2) eligible students who are members of a household
121121 14 whose previous year's total annual income does not exceed
122122 15 185% of the federal poverty level;
123123 16 (3) eligible students who reside within a focus
124124 17 district; and
125125 18 (4) eligible students who are siblings of students
126126 19 currently receiving a scholarship.
127127 20 (d-5) A scholarship granting organization shall begin
128128 21 granting scholarships no later than February 1 preceding the
129129 22 school year for which the scholarship is sought. Each priority
130130 23 group identified in subsection (d) of this Section shall be
131131 24 eligible to receive scholarships on a first-come, first-served
132132 25 basis until April 1 immediately preceding the school year for
133133 26 which the scholarship is sought, starting with the first
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144144 1 priority group identified in subsection (d) of this Section.
145145 2 Applications for scholarships for eligible students meeting
146146 3 the qualifications of one or more priority groups that are
147147 4 received before April 1 must be either approved or denied
148148 5 within 10 business days after receipt. Beginning April 1, all
149149 6 eligible students shall be eligible to receive scholarships
150150 7 without regard to the priority groups identified in subsection
151151 8 (d) of this Section.
152152 9 (e) Except as provided in subsection (e-5) of this
153153 10 Section, scholarships shall not exceed the lesser of (i) the
154154 11 statewide average operational expense per student among public
155155 12 schools or (ii) the necessary costs and fees for attendance at
156156 13 the qualified school. A qualified school may set a lower
157157 14 maximum scholarship amount for eligible students whose family
158158 15 income falls within paragraphs (2) and (3) of this subsection
159159 16 (e); that amount may not exceed the necessary costs and fees
160160 17 for attendance at the qualified school and is subject to the
161161 18 limitations on average scholarship amounts set forth in
162162 19 paragraphs (2) and (3) of this subsection, as applicable. The
163163 20 qualified school shall notify the scholarship granting
164164 21 organization of its necessary costs and fees as well as any
165165 22 maximum scholarship amount set by the school. Scholarships
166166 23 shall be prorated as follows:
167167 24 (1) for eligible students whose household income is
168168 25 less than 185% of the federal poverty level, the
169169 26 scholarship shall be 100% of the amount determined
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180180 1 pursuant to this subsection (e) and subsection (e-5) of
181181 2 this Section;
182182 3 (2) for eligible students whose household income is
183183 4 185% or more of the federal poverty level but less than
184184 5 250% of the federal poverty level, the average of
185185 6 scholarships shall be 75% of the amount determined
186186 7 pursuant to this subsection (e) and subsection (e-5) of
187187 8 this Section; and
188188 9 (3) for eligible students whose household income is
189189 10 250% or more of the federal poverty level, the average of
190190 11 scholarships shall be 50% of the amount determined
191191 12 pursuant to this subsection (e) and subsection (e-5) of
192192 13 this Section.
193193 14 (e-5) The statewide average operational expense per
194194 15 student among public schools shall be multiplied by the
195195 16 following factors:
196196 17 (1) for students determined eligible to receive
197197 18 services under the federal Individuals with Disabilities
198198 19 Education Act, 2;
199199 20 (2) for students who are English learners, as defined
200200 21 in subsection (d) of Section 14C-2 of the School Code,
201201 22 1.2; and
202202 23 (3) for students who are gifted and talented children,
203203 24 as defined in Section 14A-20 of the School Code, 1.1.
204204 25 (f) A scholarship granting organization shall distribute
205205 26 scholarship payments to the participating school where the
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216216 1 student is enrolled.
217217 2 (g) Each For the 2018-2019 school year through the
218218 3 2022-2023 school year, each scholarship granting organization
219219 4 shall expend no less than 75% of the qualified contributions
220220 5 received during the calendar year in which the qualified
221221 6 contributions were received. No more than 25% of the qualified
222222 7 contributions may be carried forward to the following calendar
223223 8 year.
224224 9 (h) (Blank). For the 2023-2024 school year, each
225225 10 scholarship granting organization shall expend all qualified
226226 11 contributions received during the calendar year in which the
227227 12 qualified contributions were received. No qualified
228228 13 contributions may be carried forward to the following calendar
229229 14 year.
230230 15 (i) A scholarship granting organization shall allow an
231231 16 eligible student to transfer a scholarship during a school
232232 17 year to any other participating school of the custodian's
233233 18 choice. Such scholarships shall be prorated.
234234 19 (j) With the prior approval of the Department, a
235235 20 scholarship granting organization may transfer funds to
236236 21 another scholarship granting organization if additional funds
237237 22 are required to meet scholarship demands at the receiving
238238 23 scholarship granting organization. All transferred funds must
239239 24 be deposited by the receiving scholarship granting
240240 25 organization into its scholarship accounts. All transferred
241241 26 amounts received by any scholarship granting organization must
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252252 1 be separately disclosed to the Department.
253253 2 (k) If the approval of a scholarship granting organization
254254 3 is revoked as provided in Section 20 of this Act or the
255255 4 scholarship granting organization is dissolved, all remaining
256256 5 qualified contributions of the scholarship granting
257257 6 organization shall be transferred to another scholarship
258258 7 granting organization. All transferred funds must be deposited
259259 8 by the receiving scholarship granting organization into its
260260 9 scholarship accounts.
261261 10 (l) Scholarship granting organizations shall make
262262 11 reasonable efforts to advertise the availability of
263263 12 scholarships to eligible students.
264264 13 (Source: P.A. 102-699, eff. 4-19-22; 102-1059, eff. 6-10-22;
265265 14 revised 8-3-22.)
266266 15 (35 ILCS 40/65)
267267 16 (Section scheduled to be repealed on January 1, 2025)
268268 17 Sec. 65. Credit period; repeal.
269269 18 (a) A taxpayer may take a credit under this Act for tax
270270 19 years beginning on or after January 1, 2018 and ending before
271271 20 January 1, 2024. A taxpayer may not take a credit pursuant to
272272 21 this Act for tax years beginning on or after January 1, 2024.
273273 22 (b) This Act is exempt from the provisions of Section 250
274274 23 of the Illinois Income Tax Act repealed on January 1, 2025.
275275 24 (Source: P.A. 102-16, eff. 6-17-21.)
276276 25 Section 99. Effective date. This Act takes effect upon
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