Illinois SB1993 creates an income tax credit for contributions to ABLE accounts.
Illinois SB1993 amends the Illinois Income Tax Act to create a tax credit for contributions to ABLE accounts. This credit is equal to 25% of the matching contribution, up to a maximum of $500 per contributing employee per taxable year. The credit cannot reduce the taxpayer's liability to less than zero and cannot be carried back. If the credit exceeds the tax liability for the year, the excess may be carried forward for up to five years. The credit applies to contributions made in taxable years ending between December 31, 2025, and January 1, 2031.
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