HB0485 99TH GENERAL ASSEMBLY

LRB099 04094 SXM 24113 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0485

Introduced , by Rep. Kelly M. Cassidy

SYNOPSIS AS INTRODUCED:

35 ILCS 5/255 new
35 ILCS 5/260 new

Amends the Illinois Income Tax Act. Provides that no corporate entity may claim an income tax credit, deduction, or exemption that is created by an Act of the General Assembly that first takes effect on or after the effective date of this amendatory Act of the 99th General Assembly. Provides that no credit, deduction, or exemption that is available to corporate entities on the effective date of this amendatory Act of the 99th General Assembly may be expanded by an Act of the General Assembly or by a rule adopted by a State agency. These changes are repealed on January 11, 2017. Creates a Corporate Tax Incentive Accountability Commission. 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 Sections 255 and 260 as follows:

(35 ILCS 5/255 new)

Sec. 255. Moratorium on new credits, deductions, and exemptions; expansion of credits. Notwithstanding any other provision of law, no corporate entity may claim a credit, deduction, or exemption against the tax imposed under subsections (a) and (b) of Section 201 if that credit, deduction, or exemption is created by an Act of the General Assembly that first takes effect on or after the effective date of this amendatory Act of the 99th General Assembly. In addition, on and after the effective date of this amendatory Act of the 99th General Assembly, no credit, deduction, or exemption against the tax imposed under subsections (a) and (b) of Section 201 that is available to corporate entities on the effective date of this amendatory Act of the 99th General Assembly may be expanded by an Act of the General Assembly or by a rule adopted by a State agency.

For the purposes of this Section, "corporate entity" means a corporation, partnership, or limited liability company.

"State agency" means any department, office, commission, board, or agency of the executive branch, including, but not limited to, the Department of Revenue and the Department of Commerce and Economic Opportunity.

This Section is repealed on January 11, 2017.

(35 ILCS 5/260 new)

Sec. 260. Corporate Tax Incentive Accountability Commission.

There is created the Corporate Tax Incentive Accountability Commission, composed of 15 members appointed as follows: 3 members appointed by the Speaker of the House of Representatives; 3 members appointed by the Minority Leader of the House of Representatives; 3 members appointed by the President of the Senate; 3 members appointed by the Minority Leader of the Senate; and 3 members appointed by the Governor, one of whom shall serve as chairperson of the Commission for an initial term of one year. Thereafter, members shall elect from their number a chairperson to serve a term of one year. Appointments to the Commission shall include representatives of small businesses and community foundations, as well as academic experts in fiscal analysis, economic development, performance management, strategic planning, performance assessment, or other closely related fields. The members of the Commission shall serve without compensation, but may be reimbursed for their actual expenses from funds appropriated for that purpose.

The Corporate Tax Incentive Accountability Commission shall study the effectiveness of corporate tax breaks and other tax incentives provided to businesses, including, but not limited to, their impact on job creation and job retention. The Commission shall review and quantify the number and quality of the jobs created and retained, including, but not limited to, the level of compensation and benefits provided by employers for the jobs identified as having been created or retained. The Commission shall meet at least annually at the call of the chairperson and may hold additional meetings as the chairperson may determine.

The Department of Revenue shall provide technical assistance, support staff, and meeting space to the Corporate Tax Incentive Accountability Commission. The Commission on Government Forecasting and Accountability shall provide information and technical assistance to the Corporate Tax Incentive Accountability Commission upon request.

The Corporate Tax Incentive Accountability Commission shall report its findings to the Governor and the General Assembly on or before December 31, 2016. The Commission shall report to the Governor and the General Assembly on or before December 31, 2018 on the effectiveness of any legislation enacted in response to its initial report.

This Section is repealed on December 31, 2019.

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