Sen. Linda Holmes

Filed: 2/24/2010

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3672

2     AMENDMENT NO. ______. Amend Senate Bill 3672 by replacing
3 everything after the enacting clause with the following:
 
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.

 

 

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1     (b) A person that proposes a project to create new jobs in
2 Illinois must enter into an Agreement with the Department for
3 the Credit under this Act.
4     (c) The Credit shall be claimed for the taxable years
5 specified in the Agreement.
6     (d) The Credit shall not exceed the Incremental Income Tax
7 attributable to the project that is the subject of the
8 Agreement.
9     (e) Nothing herein shall prohibit a Tax Credit Award to an
10 Applicant that uses a PEO if all other award criteria are
11 satisfied.
12     (f) In lieu of the Credit allowed under this Act against
13 the taxes imposed pursuant to subsections (a) and (b) of
14 Section 201 of the Illinois Income Tax Act for any taxable year
15 ending on or after December 31, 2009, the Taxpayer may elect to
16 claim the Credit against its obligation to pay over withholding
17 under Section 704A of the Illinois Income Tax Act.
18         (1) The election under this subsection (f) may be made
19     only by a Taxpayer that (i) is primarily engaged in one of
20     the following business activities: motor vehicle metal
21     stamping, automobile manufacturing, automobile and light
22     duty motor vehicle manufacturing, motor vehicle
23     manufacturing, light truck and utility vehicle
24     manufacturing, or motor vehicle body manufacturing and
25     (ii) meets the following criteria:
26             (A) the Taxpayer (i) had an Illinois net loss or an

 

 

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

 

 

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1     required by the Illinois Department of Revenue and, once
2     made, shall be irrevocable.
3         (4) If a Taxpayer who meets the requirements of
4     subparagraph (A) of paragraph (1) of this subsection (f)
5     elects to claim the Credit against its withholdings as
6     provided in this subsection (f), then, on and after the
7     date of the election, the terms of the Agreement between
8     the Taxpayer and the Department may not be further amended
9     during the term of the Agreement.
10     (g) (f) A pass-through entity that has been awarded a
11 credit under this Act, its shareholders, or its partners may
12 treat some or all of the credit awarded pursuant to this Act as
13 a tax payment for purposes of the Illinois Income Tax Act. The
14 term "tax payment" means a payment as described in Article 6 or
15 Article 8 of the Illinois Income Tax Act or a composite payment
16 made by a pass-through entity on behalf of any of its
17 shareholders or partners to satisfy such shareholders' or
18 partners' taxes imposed pursuant to subsections (a) and (b) of
19 Section 201 of the Illinois Income Tax Act. In no event shall
20 the amount of the award credited pursuant to this Act exceed
21 the Illinois income tax liability of the pass-through entity or
22 its shareholders or partners for the taxable year.
23 (Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09;
24 96-836, eff. 12-16-09; revised 12-21-09.)
 
25     Section 99. Effective date. This Act takes effect upon

 

 

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1 becoming law.".