SB1437 Summary

• Amends the Illinois Income Tax Act Section 204 to modify the standard exemption calculation for individual taxpayers for tax years ending on or after December 31, 2013 and on or before December 31, 2023.

• Establishes a cost-of-living adjustment mechanism for the basic exemption amount of $2,050, calculated annually based on the Consumer Price Index compared to 2011 baseline, rounded down to the nearest $25 increment.

• Eliminates income tax exemptions for taxpayers whose adjusted gross income exceeds $500,000 (joint filers) or $250,000 (all other taxpayers) for tax years beginning on or after January 1, 2017.

• Maintains existing additional exemptions of $1,000 each for taxpayers age 65 or older and for blind taxpayers, as well as dependent exemptions.