SB3723sam001 97TH GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 3/2/2012

09700SB3723sam001 LRB097 20030 HLH 66148 a

AMENDMENT TO SENATE BILL 3723

AMENDMENT NO. ______. Amend Senate Bill 3723 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Income Tax Act is amended by adding Section 223 as follows:

(35 ILCS 5/223 new)

Sec. 223. Green energy credit.

(a) For tax years beginning on or after January 1, 2013, each taxpayer who, individually or through a municipal aggregation program, makes a purchase of (i) green energy, (ii) a renewable energy credit, or (iii) a carbon offset through an alternative retail electric supplier or an alternative gas supplier, as defined by the Public Utilities Act, during the taxable year is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act as provided in this Section. If the taxpayer is a purchaser of Illinois-based green energy, then the credit shall be in an amount equal to 5% of the amount expended on the purchase during the taxable year. If the taxpayer is a purchaser of green energy from a source outside of Illinois, then the credit shall be in an amount equal to 3% of the amount expended on the purchase.

(b) Any alternative retail electric supplier that provides offers that are eligible for this credit must provide a verifiable disclosure statement to the green energy customer. For electricity, the quantity and source of green energy shall be independently verified through the PJM Environmental Information System Generation Attribute Tracking System (PJM-GATS) or the Midwest Renewable Energy Tracking System (M-RETS), which shall document the location of generation, resource type, month, and year of generation for all qualifying renewable energy resources that an alternative retail electric supplier uses to comply with this Section. Any alternative gas supplier that provides offers for the credit must provide a verifiable disclosure statement to the green energy customer. For natural gas, the quantity of natural gas sourced shall be verified by disclosure of the location of the landfill gas source, or, when using carbon offsets, the offsets must be verified by the Chicago Climate Exchange or a Chicago Climate Exchange approved verifier, including, but not limited to, the University of Illinois IlliniCarbon Project.

(c) The tax credit may not reduce the taxpayer's liability to less than zero and may not be carried forward to future taxable years.

(d) As used in this Section:

"Green energy" has the same definition as "renewable energy resources" in Section 1-10 of the Illinois Power Agency Act.

"Illinois-based green energy" means green energy that is produced solely within the State of Illinois.

"Renewable energy credit" has the same definition as found in Section 1-10 of the Illinois Power Agency Act.

"Carbon offset" means a verifiable certificate representing a reduction of one metric ton of carbon dioxide and other greenhouse gasses.

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