State of Illinois
2017 and 2018


Introduced , by Rep. David McSweeney


35 ILCS 5/228 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the investment made by the taxpayer during the taxable year in a Qualified Opportunity Fund. Provides that no such credit may be taken for any taxable year that begins prior to January 1, 2020. Provides that excess credits may be carried forward or back. Provides that the aggregate amount of the Qualified Opportunity Fund tax credit shall be limited to $100,000,000 per calendar year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

LRB100 22841 HLH 41823 b






HB5953LRB100 22841 HLH 41823 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 228 as follows:
6    (35 ILCS 5/228 new)
7    Sec. 228. Qualified Opportunity Fund credit.
8    (a) As used in this Section:
9    "Applicant" means a corporation, partnership, limited
10liability company, or a natural person that makes an investment
11in a Qualified Opportunity Fund established under Section
121400Z-2 of the Internal Revenue Code.
13    "Claimant" means an applicant that is awarded a credit
14under this Section by the Department.
15    "Department" means the Department of Commerce and Economic
17    (b) A claimant may claim a credit against the tax imposed
18under subsections (a) and (b) of Section 201 of this Act in an
19amount equal to the claimant's investment during the taxable
20year in a Qualified Opportunity Fund established under Section
211400Z-2 of the Internal Revenue Code.
22    (c) Credits may be awarded for investments made on or after
23the date on which the Qualified Opportunity Fund is created;



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1however, no credit may be taken for any taxable year that
2begins prior to January 1, 2020. The credit under this Section
3may not exceed the taxpayer's Illinois income tax liability for
4the taxable year. If the amount of the credit exceeds the tax
5liability for the year, then the excess may be carried forward
6and applied to the tax liability of the 5 taxable years
7following the excess credit year or carried back and applied to
8the tax liability of the 3 taxable years immediately preceding
9the excess credit year. The credit shall be applied to the
10earliest year for which there is a tax liability. If there are
11credits from more than one tax year that are available to
12offset a liability, the earlier credit shall be applied first.
13In the case of a partnership or Subchapter S Corporation, the
14credit is allowed to the partners or shareholders in accordance
15with the determination of income and distributive share of
16income under Sections 702 and 704 and Subchapter S of the
17Internal Revenue Code.
18    (d) A transfer of the credit may be made by the taxpayer,
19in accordance with rules adopted by the Department, within one
20year after the credit is awarded.
21    (e) The aggregate amount of the tax credits that may be
22claimed under this Section shall be limited to $100,000,000 per
23calendar year. That amount shall be allocated to qualified
24applicants each year on a pro rata basis. The Department shall
25implement a program to certify applicants for credits under
26this Section. Upon satisfactory review, the Department shall



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1issue a tax credit certificate stating the amount of the tax
2credit to which the applicant is entitled. The Department, in
3consultation with the Department of Revenue, shall adopt rules
4to administer this Section.
5    (f) This Section is exempt from the provisions of Section
7    Section 99. Effective date. This Act takes effect upon
8becoming law.