The implementation of HB5122 would create a new section (Section 241) within the Illinois Income Tax Act that directly impacts how certain taxpayers - specifically, those serving as full-time first responders - can manage their tax liabilities. If enacted, eligible first responders would benefit from this credit starting from the 2024 tax year until 2029. This could provide meaningful financial assistance to these individuals, helping to ease some of their tax burdens while acknowledging their contributions to society.
HB5122 is a proposed amendment to the Illinois Income Tax Act that aims to provide financial relief to first responders, specifically police officers, firefighters, and rescue workers. Introduced by Rep. Dan Ugaste along with co-sponsors Amy L. Grant and Dave Severin, the bill proposes a non-refundable income tax credit of $500 for individuals serving in these roles during the taxable year. This credit is designed to recognize and reward the dedicated service of these individuals, who play crucial roles in public safety and emergency response.
While the bill is largely aimed at providing support for first responders, potential areas of contention may arise regarding its fiscal impact on state revenue. Concerns could be raised about the effectiveness of this tax credit in truly benefiting the intended demographic, as the credit is non-refundable and may not be accessible to all first responders, particularly those whose income is not sufficient to benefit from the full $500 credit. Furthermore, the bill's provisions regarding carryover credits may lead to discussions on its long-term implications for state budgeting and financing of public services.