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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Economic Development for a Growing Economy
5 Tax Credit Act is amended by changing Section 5-15 as follows:
 
6     (35 ILCS 10/5-15)
7     Sec. 5-15. Tax Credit Awards. Subject to the conditions set
8 forth in this Act, a Taxpayer is entitled to a Credit against
9 or, as described in subsection (g) (f) of this Section, a
10 payment towards taxes imposed pursuant to subsections (a) and
11 (b) of Section 201 of the Illinois Income Tax Act that may be
12 imposed on the Taxpayer for a taxable year beginning on or
13 after January 1, 1999, if the Taxpayer is awarded a Credit by
14 the Department under this Act for that taxable year.
15     (a) The Department shall make Credit awards under this Act
16 to foster job creation and retention in Illinois.
17     (b) A person that proposes a project to create new jobs in
18 Illinois must enter into an Agreement with the Department for
19 the Credit under this Act.
20     (c) The Credit shall be claimed for the taxable years
21 specified in the Agreement.
22     (d) The Credit shall not exceed the Incremental Income Tax
23 attributable to the project that is the subject of the

 

 

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1 Agreement.
2     (e) Nothing herein shall prohibit a Tax Credit Award to an
3 Applicant that uses a PEO if all other award criteria are
4 satisfied.
5     (f) In lieu of the Credit allowed under this Act against
6 the taxes imposed pursuant to subsections (a) and (b) of
7 Section 201 of the Illinois Income Tax Act for any taxable year
8 ending on or after December 31, 2009, the Taxpayer may elect to
9 claim the Credit against its obligation to pay over withholding
10 under Section 704A of the Illinois Income Tax Act.
11         (1) The election under this subsection (f) may be made
12     only by a Taxpayer that (i) is primarily engaged in one of
13     the following business activities: motor vehicle metal
14     stamping, automobile manufacturing, automobile and light
15     duty motor vehicle manufacturing, motor vehicle
16     manufacturing, light truck and utility vehicle
17     manufacturing, or motor vehicle body manufacturing and
18     (ii) meets the following criteria:
19             (A) the Taxpayer (i) had an Illinois net loss or an
20         Illinois net loss deduction under Section 207 of the
21         Illinois Income Tax Act for the taxable year in which
22         the Credit is awarded, (ii) employed a minimum of 1,000
23         full-time employees in this State during the taxable
24         year in which the Credit is awarded, (iii) has an
25         Agreement under this Act on the effective date of this
26         amendatory Act of the 96th General Assembly, and (iii)

 

 

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1         (iv) is in compliance with all provisions of that
2         Agreement; or
3             (B) the Taxpayer (i) had an Illinois net loss or an
4         Illinois net loss deduction under Section 207 of the
5         Illinois Income Tax Act for the taxable year in which
6         the Credit is awarded and (ii) , (ii) employed a
7         minimum of 1,000 full-time employees in this State
8         during the taxable year in which the Credit is awarded,
9         and (iii) has applied for an Agreement by July 1, 2010
10         or within 30 days after the effective date of this
11         amendatory Act of the 96th General Assembly, whichever
12         is later within 180 days after the effective date of
13         this amendatory Act of the 96th General Assembly.
14         (2) An election under this subsection shall allow the
15     credit to be taken against payments otherwise due under
16     Section 704A of the Illinois Income Tax Act during the
17     first calendar year beginning after the end of the taxable
18     year in which the credit is awarded under this Act.
19         (3) The election shall be made in the form and manner
20     required by the Illinois Department of Revenue and, once
21     made, shall be irrevocable.
22         (4) If a Taxpayer who meets the requirements of
23     subparagraph (A) of paragraph (1) of this subsection (f)
24     elects to claim the Credit against its withholdings as
25     provided in this subsection (f), then, on and after the
26     date of the election, the terms of the Agreement between

 

 

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1     the Taxpayer and the Department may not be further amended
2     during the term of the Agreement.
3     (g) (f) A pass-through entity that has been awarded a
4 credit under this Act, its shareholders, or its partners may
5 treat some or all of the credit awarded pursuant to this Act as
6 a tax payment for purposes of the Illinois Income Tax Act. The
7 term "tax payment" means a payment as described in Article 6 or
8 Article 8 of the Illinois Income Tax Act or a composite payment
9 made by a pass-through entity on behalf of any of its
10 shareholders or partners to satisfy such shareholders' or
11 partners' taxes imposed pursuant to subsections (a) and (b) of
12 Section 201 of the Illinois Income Tax Act. In no event shall
13 the amount of the award credited pursuant to this Act exceed
14 the Illinois income tax liability of the pass-through entity or
15 its shareholders or partners for the taxable year.
16 (Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09;
17 96-836, eff. 12-16-09; revised 12-21-09.)
 
18     Section 99. Effective date. This Act takes effect upon
19 becoming law.