SB1362 97TH GENERAL ASSEMBLY

LRB097 05997 HLH 46068 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1362

Introduced 2/8/2011, by Sen. Edward D. Maloney

SYNOPSIS AS INTRODUCED:

35 ILCS 5/221 new

Amends the Illinois Income Tax Act. Creates a credit equal to a percentage of the cost of mechanical insulation property placed in service in the State during the taxable year. Effective immediately.

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 Section 221 as follows:

(35 ILCS 5/221 new)

Sec. 221. Credit for mechanical insulation. For each taxable year beginning on or after January 1, 2011, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to the applicable percentage of the cost of mechanical insulation property placed in service in the State during the taxable year.

In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

For purposes of this Section:

"ASHRAE" means the American Society of Heating, Refrigerating, and Air-Conditioning Engineers.

"Mechanical insulation property" includes insulation materials, facings, and accessory products used for thermal requirements for mechanical piping and equipment, hot and cold applications, and heating, venting, and air conditioning applications.

"Cost of mechanical insulation property" includes any amount paid or incurred for the installation of mechanical insulation property that exceeds ASHRAE standard 90.1-2007.

"Applicable percentage" means the lesser of (i) 30% or (ii) the reduction in energy loss (expressed as a percentage) from the installed mechanical insulation property compared with mechanical insulation property that meets the minimum requirements of ASHRAE standard 90.1-2007.

Section 99. Effective date. This Act takes effect upon becoming law.