HB2867 Summary

• Amends the Illinois Income Tax Act to add a tax credit for taxpayers who own qualified real property in counties declared State disaster areas by the Governor due to tornadoes in 2018.

• Credit amount equals the lesser of $750 or the deduction allowed under Section 165 of the Internal Revenue Code for property damage, without regard to subsection (h) limitations.

• Qualified real property includes the taxpayer's principal residence or small business property that was damaged during the taxable year and is not used in a rental or leasing business.

• Excess credits that exceed tax liability may be carried forward and applied to tax liability for the 5 following taxable years, with earlier credits applied first.

• Township assessors or chief county assessment officers must issue damage certificates to taxpayers and certify property damage lists to the Department; taxpayers must attach certificates to their tax returns to claim the credit.