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Illinois House Bill HB3537

Illinois 2023-2024 Regular Session

Illinois House Bill HB3537 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3537 Introduced , by Rep. Amy L. Grant 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 for taxable years ending before January 1, 2034 (currently, January 1, 2024). Effective immediately. LRB103 30930 HLH 57478 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3537 Introduced , by Rep. Amy L. Grant 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 for taxable years ending before January 1, 2034 (currently, January 1, 2024). Effective immediately. LRB103 30930 HLH 57478 b LRB103 30930 HLH 57478 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3537 Introduced , by Rep. Amy L. Grant 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 for taxable years ending before January 1, 2034 (currently, January 1, 2024). Effective immediately.
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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, 2034 January 1, 2024, each
2222 10 taxpayer for whom a tax credit has been awarded by the
2323 11 Department under the Invest in Kids Act is entitled to a credit
2424 12 against the tax imposed under subsections (a) and (b) of
2525 13 Section 201 of this Act in an amount equal to the amount
2626 14 awarded under the Invest 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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3939 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3537 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
4040 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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4444 Amends the Illinois Income Tax Act and the Invest in Kids Act. Provides that the Invest in Kids credit applies for taxable years ending before January 1, 2034 (currently, January 1, 2024). 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 (Source: P.A. 102-699, eff. 4-19-22.)
8787 14 Section 10. The Invest in Kids Act is amended by changing
8888 15 Sections 40 and 65 as follows:
8989 16 (35 ILCS 40/40)
9090 17 (Section scheduled to be repealed on January 1, 2025)
9191 18 Sec. 40. Scholarship granting organization
9292 19 responsibilities.
9393 20 (a) Before granting a scholarship for an academic year,
9494 21 all scholarship granting organizations shall assess and
9595 22 document each student's eligibility for the academic year.
9696 23 (b) A scholarship granting organization shall grant
9797 24 scholarships only to eligible students.
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108108 1 (c) A scholarship granting organization shall allow an
109109 2 eligible student to attend any qualified school of the
110110 3 student's choosing, subject to the availability of funds.
111111 4 (d) In granting scholarships, beginning in the 2022-2023
112112 5 school year and for each school year thereafter, a scholarship
113113 6 granting organization shall give priority to eligible students
114114 7 who received a scholarship from a scholarship granting
115115 8 organization during the previous school year. Second priority
116116 9 shall be given to the following priority groups:
117117 10 (1) (blank);
118118 11 (2) eligible students who are members of a household
119119 12 whose previous year's total annual income does not exceed
120120 13 185% of the federal poverty level;
121121 14 (3) eligible students who reside within a focus
122122 15 district; and
123123 16 (4) eligible students who are siblings of students
124124 17 currently receiving a scholarship.
125125 18 (d-5) A scholarship granting organization shall begin
126126 19 granting scholarships no later than February 1 preceding the
127127 20 school year for which the scholarship is sought. Each priority
128128 21 group identified in subsection (d) of this Section shall be
129129 22 eligible to receive scholarships on a first-come, first-served
130130 23 basis until April 1 immediately preceding the school year for
131131 24 which the scholarship is sought, starting with the first
132132 25 priority group identified in subsection (d) of this Section.
133133 26 Applications for scholarships for eligible students meeting
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144144 1 the qualifications of one or more priority groups that are
145145 2 received before April 1 must be either approved or denied
146146 3 within 10 business days after receipt. Beginning April 1, all
147147 4 eligible students shall be eligible to receive scholarships
148148 5 without regard to the priority groups identified in subsection
149149 6 (d) of this Section.
150150 7 (e) Except as provided in subsection (e-5) of this
151151 8 Section, scholarships shall not exceed the lesser of (i) the
152152 9 statewide average operational expense per student among public
153153 10 schools or (ii) the necessary costs and fees for attendance at
154154 11 the qualified school. A qualified school may set a lower
155155 12 maximum scholarship amount for eligible students whose family
156156 13 income falls within paragraphs (2) and (3) of this subsection
157157 14 (e); that amount may not exceed the necessary costs and fees
158158 15 for attendance at the qualified school and is subject to the
159159 16 limitations on average scholarship amounts set forth in
160160 17 paragraphs (2) and (3) of this subsection, as applicable. The
161161 18 qualified school shall notify the scholarship granting
162162 19 organization of its necessary costs and fees as well as any
163163 20 maximum scholarship amount set by the school. Scholarships
164164 21 shall be prorated as follows:
165165 22 (1) for eligible students whose household income is
166166 23 less than 185% of the federal poverty level, the
167167 24 scholarship shall be 100% of the amount determined
168168 25 pursuant to this subsection (e) and subsection (e-5) of
169169 26 this Section;
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180180 1 (2) for eligible students whose household income is
181181 2 185% or more of the federal poverty level but less than
182182 3 250% of the federal poverty level, the average of
183183 4 scholarships shall be 75% of the amount determined
184184 5 pursuant to this subsection (e) and subsection (e-5) of
185185 6 this Section; and
186186 7 (3) for eligible students whose household income is
187187 8 250% or more of the federal poverty level, the average of
188188 9 scholarships shall be 50% of the amount determined
189189 10 pursuant to this subsection (e) and subsection (e-5) of
190190 11 this Section.
191191 12 (e-5) The statewide average operational expense per
192192 13 student among public schools shall be multiplied by the
193193 14 following factors:
194194 15 (1) for students determined eligible to receive
195195 16 services under the federal Individuals with Disabilities
196196 17 Education Act, 2;
197197 18 (2) for students who are English learners, as defined
198198 19 in subsection (d) of Section 14C-2 of the School Code,
199199 20 1.2; and
200200 21 (3) for students who are gifted and talented children,
201201 22 as defined in Section 14A-20 of the School Code, 1.1.
202202 23 (f) A scholarship granting organization shall distribute
203203 24 scholarship payments to the participating school where the
204204 25 student is enrolled.
205205 26 (g) For the 2018-2019 school year through the 2032-2033
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216216 1 2022-2023 school year, each scholarship granting organization
217217 2 shall expend no less than 75% of the qualified contributions
218218 3 received during the calendar year in which the qualified
219219 4 contributions were received. No more than 25% of the qualified
220220 5 contributions may be carried forward to the following calendar
221221 6 year.
222222 7 (h) For the 2033-2034 2023-2024 school year, each
223223 8 scholarship granting organization shall expend all qualified
224224 9 contributions received during the calendar year in which the
225225 10 qualified contributions were received. No qualified
226226 11 contributions may be carried forward to the following calendar
227227 12 year.
228228 13 (i) A scholarship granting organization shall allow an
229229 14 eligible student to transfer a scholarship during a school
230230 15 year to any other participating school of the custodian's
231231 16 choice. Such scholarships shall be prorated.
232232 17 (j) With the prior approval of the Department, a
233233 18 scholarship granting organization may transfer funds to
234234 19 another scholarship granting organization if additional funds
235235 20 are required to meet scholarship demands at the receiving
236236 21 scholarship granting organization. All transferred funds must
237237 22 be deposited by the receiving scholarship granting
238238 23 organization into its scholarship accounts. All transferred
239239 24 amounts received by any scholarship granting organization must
240240 25 be separately disclosed to the Department.
241241 26 (k) If the approval of a scholarship granting organization
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252252 1 is revoked as provided in Section 20 of this Act or the
253253 2 scholarship granting organization is dissolved, all remaining
254254 3 qualified contributions of the scholarship granting
255255 4 organization shall be transferred to another scholarship
256256 5 granting organization. All transferred funds must be deposited
257257 6 by the receiving scholarship granting organization into its
258258 7 scholarship accounts.
259259 8 (l) Scholarship granting organizations shall make
260260 9 reasonable efforts to advertise the availability of
261261 10 scholarships to eligible students.
262262 11 (Source: P.A. 102-699, eff. 4-19-22; 102-1059, eff. 6-10-22;
263263 12 revised 8-3-22.)
264264 13 (35 ILCS 40/65)
265265 14 (Section scheduled to be repealed on January 1, 2025)
266266 15 Sec. 65. Credit period; repeal.
267267 16 (a) A taxpayer may take a credit under this Act for tax
268268 17 years beginning on or after January 1, 2018 and ending before
269269 18 January 1, 2034 January 1, 2024. A taxpayer may not take a
270270 19 credit pursuant to this Act for tax years beginning on or after
271271 20 January 1, 2034 January 1, 2024.
272272 21 (b) This Act is repealed on January 1, 2035 January 1,
273273 22 2025.
274274 23 (Source: P.A. 102-16, eff. 6-17-21.)
275275 24 Section 99. Effective date. This Act takes effect upon
276276 25 becoming law.
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