Early into the spring session of the 103rd Illinois General Assembly, there have been few votes on legislative matters but plenty of new bills have been introduced.
As of Friday, there were 1,690 bills introduced from both chambers – 156 in the state Senate and 1,534 in the House. A common thread in the bills was income tax credits applying to a wide spectrum of eligible taxpayers, state agencies. and departments.
More attention has turned, however, to talk of a new graduated tax proposal. A group of Republican Senators dismissed the possibility on Wednesday. The ballot measure originally failed in the 2020 General Election. The minority party filed a resolution calling for no legislative effort to follow.
State Sen. Rob Martwick, D-Chicago, has expressed interest in leading the effort in the new General Assembly but no bill has been filed. Democrat Gov. JB Pritzker said during a recent unrelated press call that he was not “focused” on the proposal this session, much to the liking of Minority Senate Leader John Curran, R-Lemont.
The Illinois House is set to return to the Capitol on Tuesday. The Senate convened two brief sessions last week.
Here is a sampling of tax credit-focused bills that have been introduced.
Energy credit – House Bill 1250
Under House Bill 1250, the Department of Commerce and Economic Opportunity would be permitted to award up to $50 million in the fiscal year to eligible taxpayers.
The energy price tax credit would be available to those responsible for making energy payments on properties they own in the state. How much a taxpayer receives depends on a formula established in the bill that multiplies how much a customer paid in energy expenses by inflation of electricity in the Midwest over the past year. That figure is then multiplied by 0.1.
HB 1250 was proposed by Rep. Michael Marron, R-Fithian, and would go into effect immediately with an affirmative vote in the legislature and the governor’s signature.
Beginning farmer aid – House Bill 1343
House Bill 1343 pertains to an individual selling or renting an agricultural asset to a beginning farmer. The bill defines a beginning farmer as someone who “has not received income from agricultural production for more than the 10 most recent taxable years” and has received certification from the state Department of Agriculture identifying them as a beginning farmer.
IDA would be responsible for the approval of funds, where it can disburse a maximum of $5 million in credits per taxable year. The department will not grant tax credits to the owner of an asset if the farmer they sell or rent to is a relative, spouse, or shareholder.
Broken down, the credit is dependent on whether an item has been sold or rented. The sale of an agricultural asset will garner a tax credit of 5% of the item’s market value, no more than $32,000, while a credit equal to 10% of a property’s gross rental income will be received. This amount is not to exceed $7,000 per year for each of the first three years of a rental agreement.
The bill comes from state Rep. Lance Yednock, D-Ottawa, who served as vice-chair of the House Agriculture and Conservation Committee in the 102nd General Assembly.
Credit for caregivers – House Bill 1350
Caregivers of veterans would receive up to a $1,000 credit under legislation from state Rep. Katie Stuart, D-Edwardsville introduced last week.
House Bill 1350 would provide credit for expenses associated with a caregiver providing assistance to a veteran with a disability. The credit is equivalent to 5% of those expenses although not exceeding any amount greater than $1,000.
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Preservation credit -Senate Bill 119
Legislation from state Sen. Steve Stadelman, D-Rockford, would extend eligibility for a tax credit pertaining to historical preservation investments to the end of 2028 while increasing the amounts allocated.
The State Historic Preservation Office in the Department of Natural Resources would be responsible for the allocation under Senate Bill 119. The bill permits the office to disburse $75 million annually instead of the $15 million it currently allocates.
A qualified taxpayer who applies with the SHP office can receive a tax credit of 25% provided they expend at least $5,000. The credit is not to surpass $3 million and is only eligible in the last taxable year for multi-year rehabilitations.
Property credits – Senate Bill 141
State Sen. Jill Tracy, R-Quincy, has introduced Senate Bill 141 which would grant an income tax credit for those that invest in depreciated property.
Specifically, the investments would be in recyclable material either to collect or to manufacture new products from the material. The tax credit would not exceed $1 million and vary on the original amount invested.
For the first $250,000 invested, a credit of 25% would be wagered followed by another 15% for the next $250,000 investment. An investment of the next $500,000 would receive an additional 5% credit.
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The bills come after the 102nd Illinois General Assembly passed several forms of tax relief, including a series of tax rebates and a temporary suspension of an increase to the gas tax.
The Pritzker administration has reminded Illinoisans to take advantage of both the federal and state Earned Income Tax Credit. According to the office, more than 70,000 residents claimed a federal EITC credit last year while not claiming the state credit — leaving more than $25 million on the table.
Contact Patrick Keck: email@example.com, twitter.com/pkeckreporter.
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January 30, 2023 at 07:32AM