SB1438 Summary

• Amends the Illinois Income Tax Act to create a deduction equal to personal interest paid by individual taxpayers during the taxable year, effective for tax years ending on or after December 31, 2017.

• Defines "personal interest" as interest paid on personal and consumer loans that is not deductible when calculating federal adjusted gross income, including interest on car loans, credit cards, appliances, furniture, and loans between individuals.

• Adds new subparagraph (HH) to Section 203(a)(2) of the Illinois Income Tax Act to implement the deduction, exempt from Section 250 limitations.

• Takes effect immediately upon becoming law.