SB1836 Summary

• Creates a 5% income tax credit for individual taxpayers who rent a dwelling in Illinois as their principal residence, beginning with tax years ending December 31, 2023.

• Requires taxpayers to have resided in Illinois for at least 183 days during the tax year and have federal adjusted gross income not exceeding 200% of federal poverty guidelines.

• Limits the credit to taxpayers whose total annual rental payments exceed 30% of their federal adjusted gross income and who are not claimed as dependents on another return.

• Excludes individuals renting dwellings exempt from Illinois property taxes from eligibility for the credit.

• Allows the Department of Revenue to establish by rule a maximum dollar amount for the credit (which may vary by region), documentation requirements for rental payments, and necessary forms or schedules.

• Permits excess credits that exceed a taxpayer's income tax liability to be refunded to the taxpayer.