Bill > SB1709

This bill amends the Illinois Income Tax Act to create a tax credit for homeowners who install residential fire sprinkler systems. Specifically, for taxable years ending on or after December 31, 2027, taxpayers can receive a credit equal to 50% of the total cost of installing an approved NFPA 13D fire sprinkler system in a new or existing residential dwelling, with a maximum credit of $10,000 per taxpayer per year. An NFPA 13D system is a specific type of fire sprinkler system designed for one- and two-family residential dwellings, as defined by the National Fire Protection Association standards. The bill limits the total credits to either 2,000 credit awards or $8,000,000 per year, whichever is less. To claim the credit, taxpayers must provide a detailed final invoice to the Department of Revenue that includes costs such as water main tap fees, sprinkler and domestic water service fees, piping and valve installation costs, and testing fees. The credit cannot reduce a taxpayer's liability below zero, and the provision is exempt from the Act's automatic sunset provisions, meaning it will not automatically expire after a certain period.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1709&GAID=18&DocTypeID=SB&SessionID=114&GA=104