IL SB1548

Establishes a natural disaster income tax credit for taxpayers owning qualified real property in Illinois counties declared disaster areas by the Governor.

Credit amount equals the lesser of $750 or the deductible loss under Internal Revenue Code Section 165, available for tax years 2017-2018 (for flooding disasters) and 2020 and beyond (for any declared disaster during the taxable year).

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

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; taxpayers receiving a Natural Disaster Homestead Exemption are ineligible for this credit.

Township assessors or county assessment officers must issue certificates identifying damaged properties and provide the Department with a listing of all damaged properties in their county, including owner name, address, and property index number.