98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4485
 
Introduced , by Rep. Katherine Cloonen
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/224 new

     Amends the Illinois Income Tax Act.  Creates a credit equal to any unreimbursed amounts paid by the taxpayer during the taxable year for the purposes of (i)  rebuilding or restoring a residential, industrial, or commercial structure located in the State that was damaged as a result of a natural disaster or (ii) engaging in other cleanup efforts related to a natural disaster occurring in the State.  Provides that a taxpayer is not entitled to a credit if the natural disaster occurred more than 2 years prior to the taxable year for which the credit is claimed.  Provides that the credit is exempt from the Act's automatic sunset provision.  Effective immediately.
  


LRB098 15250 HLH 50258 b

FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
HB4485LRB098 15250 HLH 50258 b


  
1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Income Tax Act is amended  by adding 
5Section 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Natural disaster credit. 
8    (a)  For tax years ending on or after December 31, 2014, 
9each taxpayer is entitled to a credit against the taxes imposed 
10under subsections (a) and (b) of Section 201 of this Act in an 
11amount equal to the amount paid by the taxpayer during the 
12taxable year for the purposes of (i)  rebuilding or restoring a 
13residential, industrial, or commercial structure located in 
14the State that was damaged as a result of a natural disaster or 
15(ii) engaging in other cleanup efforts related to a natural 
16disaster occurring in the State, including, but not limited, to 
17debris removal.
18    (b)  Except as provided in subsection (c) with respect to 
19credit amounts that are carried forward, a taxpayer is not 
20entitled to a credit under this Section if the natural disaster 
21occurred more than 2 years prior to the taxable year for which 
22the credit is claimed.  A taxpayer is not entitled to a credit 
23under this Section if the costs incurred are eligible for 
 
 
HB4485- 2 -LRB098 15250 HLH 50258 b

1reimbursement by a third party. 
2    (c)  In no event shall a credit under this Section reduce 
3the taxpayer's liability to less than zero. If the amount of 
4the credit exceeds the tax liability for the year, the excess 
5may refunded to the taxpayer, or it may be carried forward and 
6applied to the tax liability of the 5 taxable years following 
7the excess credit year, at the election of the taxpayer. If the 
8excess credit amounts are carried forward, then  those amounts 
9shall be applied to the earliest year for which there is a tax 
10liability. If there are credits for more than one year that are 
11available to offset a liability, the earlier credit shall be 
12applied first. 
13    (d) For the purposes of this Section, "natural disaster" 
14means an occurrence of widespread or severe damage or loss of 
15property resulting from any catastrophic cause including but 
16not limited to fire, flood, earthquake, wind, storm, or 
17extended period of severe inclement weather. A proclamation of 
18disaster by the President of the United States or Governor of 
19the State of Illinois is not a prerequisite to the 
20classification of an occurrence as a natural disaster under 
21this Section. 
22    (e)  This Section is exempt from the provisions of Section 
23250. 
 
 
24    Section 99. Effective date. This Act takes effect upon 
25becoming law.