Illinois HB3264 creates an income tax credit for contributions to ABLE accounts.
HB3264 amends the Illinois Income Tax Act to introduce a tax credit for contributions to ABLE accounts. This credit is equal to 25% of the contribution, up to a maximum of $500 per employee per year. The credit applies to contributions made by employees and is available for taxable years ending between 2025 and 2030. Partners and shareholders of subchapter S corporations are also eligible for this credit. The credit cannot reduce the taxpayer's liability below zero and cannot be carried back to previous years. Any excess credit can be carried forward for up to five years.
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