Public Act 096-1534
 
HB1525 EnrolledLRB096 05059 RCE 15125 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Section 5-15 as follows:
 
    (35 ILCS 10/5-15)
    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
forth in this Act, a Taxpayer is entitled to a Credit against
or, as described in subsection (g) of this Section, a payment
towards taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act that may be imposed
on the Taxpayer for a taxable year beginning on or after
January 1, 1999, if the Taxpayer is awarded a Credit by the
Department under this Act for that taxable year.
    (a) The Department shall make Credit awards under this Act
to foster job creation and retention in Illinois.
    (b) A person that proposes a project to create new jobs in
Illinois must enter into an Agreement with the Department for
the Credit under this Act.
    (c) The Credit shall be claimed for the taxable years
specified in the Agreement.
    (d) The Credit shall not exceed the Incremental Income Tax
attributable to the project that is the subject of the
Agreement.
    (e) Nothing herein shall prohibit a Tax Credit Award to an
Applicant that uses a PEO if all other award criteria are
satisfied.
    (f) In lieu of the Credit allowed under this Act against
the taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act for any taxable year
ending on or after December 31, 2009, the Taxpayer may elect to
claim the Credit against its obligation to pay over withholding
under Section 704A of the Illinois Income Tax Act.
        (1) The election under this subsection (f) may be made
    only by a Taxpayer that (i) is primarily engaged in one of
    the following business activities: water purification and
    treatment, motor vehicle metal stamping, automobile
    manufacturing, automobile and light duty motor vehicle
    manufacturing, motor vehicle manufacturing, light truck
    and utility vehicle manufacturing, heavy duty truck
    manufacturing, or motor vehicle body manufacturing and
    (ii) meets the following criteria:
            (A) the Taxpayer (i) had an Illinois net loss or an
        Illinois net loss deduction under Section 207 of the
        Illinois Income Tax Act for the taxable year in which
        the Credit is awarded, (ii) employed a minimum of 1,000
        full-time employees in this State during the taxable
        year in which the Credit is awarded, (iii) has an
        Agreement under this Act on December 14, 2009 (the
        effective date of Public Act 96-834), and (iv) is in
        compliance with all provisions of that Agreement;
            (B) the Taxpayer (i) had an Illinois net loss or an
        Illinois net loss deduction under Section 207 of the
        Illinois Income Tax Act for the taxable year in which
        the Credit is awarded, (ii) employed a minimum of 1,000
        full-time employees in this State during the taxable
        year in which the Credit is awarded, and (iii) has
        applied for an Agreement within 365 days after December
        14, 2009 (the effective date of Public Act 96-834); or
            (C) the Taxpayer (i) had an Illinois net operating
        loss carryforward under Section 207 of the Illinois
        Income Tax Act in a taxable year ending during calendar
        year 2008, (ii) has applied for an Agreement within 150
        days after the effective date of this amendatory Act of
        the 96th General Assembly, (iii) creates at least 400
        new jobs in Illinois, (iv) retains at least 2,000 jobs
        in Illinois that would have been at risk of relocation
        out of Illinois over a 10-year period, and (v) makes a
        capital investment of at least $75,000,000; or .
            (D) the Taxpayer (i) had an Illinois net operating
        loss carryforward under Section 207 of the Illinois
        Income Tax Act in a taxable year ending during calendar
        year 2009, (ii) has applied for an Agreement within 150
        days after the effective date of this amendatory Act of
        the 96th General Assembly, (iii) creates at least 150
        new jobs, (iv) retains at least 1,000 jobs in Illinois
        that would have been at risk of relocation out of
        Illinois over a 10-year period, and (v) makes a capital
        investment of at least $57,000,000.
        (2) An election under this subsection shall allow the
    credit to be taken against payments otherwise due under
    Section 704A of the Illinois Income Tax Act during the
    first calendar year beginning after the end of the taxable
    year in which the credit is awarded under this Act.
        (3) The election shall be made in the form and manner
    required by the Illinois Department of Revenue and, once
    made, shall be irrevocable.
        (4) If a Taxpayer who meets the requirements of
    subparagraph (A) of paragraph (1) of this subsection (f)
    elects to claim the Credit against its withholdings as
    provided in this subsection (f), then, on and after the
    date of the election, the terms of the Agreement between
    the Taxpayer and the Department may not be further amended
    during the term of the Agreement.
    (g) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat
some or all of the credit awarded pursuant to this Act as a tax
payment for purposes of the Illinois Income Tax Act. The term
"tax payment" means a payment as described in Article 6 or
Article 8 of the Illinois Income Tax Act or a composite payment
made by a pass-through entity on behalf of any of its
shareholders or partners to satisfy such shareholders' or
partners' taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act. In no event shall
the amount of the award credited pursuant to this Act exceed
the Illinois income tax liability of the pass-through entity or
its shareholders or partners for the taxable year.
(Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09;
96-836, eff. 12-16-09; 96-905, eff. 6-4-10; 96-1000, eff.
7-2-10.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 3/4/2011