INCOME TAX RATES-CREDITS

104th Regular Session Introduced by Rob Martwick

The bill proposes changes to Illinois income tax rates and credits that would alter how much residents and businesses owe.

Referred to Assignments

Summary of SB 3658 (104th Illinois General Assembly) – Income Tax Rates and Credits

Purpose and intent

SB 3658 pertains to the Illinois income tax structure, focusing on potential changes to tax rates and the application or modification of individual and/or business tax credits. The bill is positioned to adjust how income tax is calculated for certain taxpayers and to modify credits that reduce overall tax liability.

Key provisions and changes

Tax Rates: The bill addresses the structure of Illinois income tax rates. It may propose rate reductions, rate adjustments, or reconfiguration of tax brackets applicable to individuals, households, or specific filing statuses. (Exact rate figures, bracket thresholds, and effective dates would be specified in the text of the bill.)

Tax Credits: The bill introduces or modifies credits that lower a taxpayer’s Illinois income tax liability. This could include:

Personal or dependent-related credits
Education, earned income, or family-related credits
Credits targeted to certain industries, regions, or demographic groups
Interaction with existing credits (e.g., credit amounts, phaseouts, carryforwards)

Administration and Compliance: Provisions may include administrative rules, definitional changes, or documentation requirements necessary to administer the credits and rates (e.g., qualification criteria, proof of eligibility, reporting requirements).

Sunset or Effective Dates: The bill typically specifies when changes take effect (tax year or calendar year) and whether any credits or rate changes phasing in or out, including any sunset provisions if applicable.

Who would be affected

Individual taxpayers: Those subject to Illinois personal income tax, particularly if rate changes or new/altered credits apply to their filing status, income level, or eligibility.

Businesses and pass-through entities: If the bill alters business-related credits or the treatment of certain income, owners and employers may see impact on tax liability.

Administrative bodies: Illinois Department of Revenue would implement and enforce the updated tax rates and credits, including any reporting or documentation requirements for taxpayers.

Procedural and timeline aspects

Legislative process: As a Senate bill (SB 3658), it would move through the normal chamber processes (committee hearings, potential amendments, and floor votes) and then to the House for consideration, with potential reconciliation before becoming law.

Effective dates: The bill would specify the effective date for rate and credit changes (e.g., for tax year 20XX or calendar year 20XX). Any sunset provisions would outline expiration dates unless extended by future legislation.

Compatibility: The bill may interact with the broader state tax code, including conformity with federal tax changes and any other Illinois tax reform measures under consideration in the same session.

Notes

This summary provides a general framework based on the bill’s title and jurisdiction. For precise figures (specific rate amounts, bracket thresholds, credit names, qualification criteria, and exact effective dates), the full text of SB 3658 and any fiscal/agency analyses should be consulted.