HB2523 94TH GENERAL ASSEMBLY

LRB094 09847 BDD 40103 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2523

Introduced 2/18/2005, by Rep. Jim Sacia

SYNOPSIS AS INTRODUCED:

35 ILCS 5/216 new
35 ILCS 5/217 new

Amends the Illinois Income Tax Act. Creates a $500 tax credit for each taxpayer who purchases 1,000 gallons or more of motor fuel that contains more than 10% but not more than 30% ethanol and creates a $500 tax credit for each taxpayer who purchases 1,000 gallons or more of biodiesel blend that contains more than 5% biodiesel. Creates a $20,000 tax credit for each motor fuel retailer who installs one or more new fuel tanks and dispensing pumps that are used solely to dispense motor fuel that contains more than 10% but not more than 30% ethanol at his or her motor fuel retail store in Illinois during the taxable year. Creates a $20,000 tax credit for each motor fuel retailer who installs one or more new fuel tanks and dispensing pumps that are used solely to dispense biodiesel blend that contains more than 5% biodiesel at his or her motor fuel retail store in Illinois during the taxable year. Provides that each of the credits applies to taxable years ending on or after December 31, 2005 and on or before December 30, 2010. Limits each of the credits to one year. Provides that the credits may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Effective January 1, 2006.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Sections 216, 217, and 218 as follows:

(35 ILCS 5/216 new)

Sec. 216. Single-year tax credits for alternative fuel purchases.

(a) For taxable years ending on or after December 31, 2005 and on or before December 30, 2010, each taxpayer who purchases 1,000 gallons or more of motor fuel that contains more than 10% but not more than 30% ethanol is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of $500. The same taxpayer may take this credit in only one taxable year.

(b) For taxable years ending on or after December 31, 2005 and on or before December 30, 2010, each taxpayer who purchases 1,000 gallons or more of biodiesel blend that contains more than 5% biodiesel is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of $500. The same taxpayer may take this credit in only one taxable year.

(c) If the taxpayer is a partnership or Subchapter S corporation, the credits are allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(d) The credits may not be carried forward or back. In no event shall a credits under this Section reduce the taxpayer's liability to less than zero.

(e) The Department must adopt rules to administer this Section, including rules concerning the verification on alternative fuel purchases.

(35 ILCS 5/217 new)

Sec. 217. Single-year tax credits for installing alternative fuel pumps.

(a) For taxable years ending on or after December 31, 2005 and on or before December 30, 2010, each motor fuel retailer who installs, at his or her motor fuel retail store in Illinois during the taxable year, one or more new fuel tanks and dispensing pumps that are used solely to dispense motor fuel that contains more than 10% but not more than 30% ethanol is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of $20,000. The same taxpayer may take this credit in only one taxable year.

(b) For taxable years ending on or after December 31, 2005 and on or before December 30, 2010, each motor fuel retailer who installs, at his or her motor fuel retail store in Illinois during the taxable year, one or more new fuel tanks and dispensing pumps that are used solely to dispense biodiesel blend that contains more than 5% biodiesel is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of $20,000. The same taxpayer may take this credit in only one taxable year.

(c) If the taxpayer is a partnership or Subchapter S corporation, the credits are allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(d) The credits may not be carried forward or back. In no event shall a credits under this Section reduce the taxpayer's liability to less than zero.

(e) The Department must adopt rules to administer this Section.

Section 99. Effective date. This Act takes effect January 1, 2006.