IL SB1432

Creates a tax credit up to $2,000 for taxpayers claiming qualifying students as dependents for qualified tuition and fee expenses paid during the taxable year, effective for tax years ending on or after December 31, 2019.

Defines "qualifying student" as an Illinois resident under age 24 at the close of the school year who is enrolled full-time in a program at a qualifying college or university.

Defines "qualifying college or university" as public or private universities, community colleges, vocational schools, or other postsecondary institutions located in Illinois that are eligible to participate in U.S. Department of Education student loan programs.

Limits credit eligibility to taxpayers with adjusted gross income not exceeding $250,000 for joint filers or $125,000 for all other filers, beginning January 1, 2020.

Allows excess credits exceeding tax liability to be carried forward and applied to tax liability for up to 5 following taxable years, with earlier credits applied first.