summary
Introduced
02/04/2025
02/04/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who have an approved NFPA 13D residential fire sprinkler system installed in a new or existing residential dwelling in the State during the taxable year. Provides that the credit shall be in an amount equal to 50% of the total cost of the installation but not to exceed $10,000 per taxpayer in any taxable year. Provides that credit awards under the amendatory Act shall be limited to the lesser of 2,000 credit awards per year or $8,000,000 in total credits per year. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to create a tax credit for homeowners who install a specific type of residential fire sprinkler system known as an NFPA 13D system in new or existing homes. The credit would be available for taxable years ending on or after December 31, 2027, and allows taxpayers to claim 50% of the total installation cost, up to a maximum of $10,000 per year. The bill limits the total credits to either 2,000 credit awards or $8,000,000 annually, whichever is less. To qualify, homeowners must have the system installed by a licensed fire sprinkler contractor and provide a detailed final invoice to the Department of Revenue that includes costs such as water main tap fees, piping modifications, and installation and testing fees. The NFPA 13D system refers to a specific fire protection standard for one- and two-family residential dwellings established by the National Fire Protection Association. Importantly, the credit cannot reduce a taxpayer's liability below zero, and the bill exempts this tax credit from the state's typical automatic sunset provisions, ensuring its continued availability.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2710&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2710.htm |
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