Per Public Act 100-0555, the Natural Disaster Income Tax Credit is a credit against individual or business income tax for the 2017 tax year (fiscal filers - for tax years ending prior to January 1, 2019). Public Act 100-0587 extended the credit to 2018. Each taxpayer is entitled to the Natural Disaster Credit if you own qualified real property that:
The amount of the credit is the lesser of $750 or the casualty loss deduction allowed with respect to the qualified real property under Section 165 of the Internal Revenue Code (IRC) (whether or not you actually claimed the casualty loss deduction on your federal income tax return). For this purpose, the amount of the casualty loss deduction under IRC Section 165 is determined without regard to either the 2% rule, the $100 rule, or the 10% rule. Generally, this is the amount of loss you determine for qualified real property on Line 9 or Line 27 of federal Form 4684, and does not include any amount reimbursed by insurance.
A taxpayer qualifies for the credit if the following apply:
“Qualified real property” is defined as property that is your principal residence (not including personal property, such as furniture), or real property that is owned by a small business. The term “small business” is defined as a corporation or concern that employs fewer than 50 full-time employees, or has gross annual sales of less than $4 million, and is not dominant in its field.
Note: Qualified real property does not include property that is rented or leased. For example, a strip mall that leases units to businesses, or a house or an apartment that is rented by an individual are not qualified real property.
To apply for the Natural Disaster Income Tax Credit, you must contact the County Supervisor of Assessments Office for your county. The contact person will have you:
Note: You must be able to prove that you incurred a casualty loss with respect to qualified real property, and establish the amount of that loss, in the manner required to obtain the casualty loss deduction under IRC Section 165. Your credit is equal to the lesser of $750 or the amount of loss you determine for the qualified real property on Line 9 or Line 27 of federal Form 4684.
If you meet all of the requirements, the contact person will provide you with the completed Natural Disaster Income Tax Credit Certificate.
Contact the County Supervisor of Assessments office for the county in which your property is located.
You may electronically file your individual or business income tax return and claim the credit on the respective Schedule 1299. Make sure your certificate number is correct.
For individuals filing by paper:
For businesses filing by paper:
If filing by paper, mail your completed individual or business income tax return to:
Note: The credit may not reduce your tax liability to less than zero. However, if the amount of your credit exceeds your tax liability, the excess amount may be carried forward for up to 5 years.