Illinois General Assembly - Full Text of HB3621

LRB104 10701 HLH 20780 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3621

Introduced 2/18/2025, by Rep. Justin Slaughter

SYNOPSIS AS INTRODUCED:

35 ILCS 5/235 new

Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the investment made by the taxpayer during the taxable year in a Qualified Opportunity Fund. Provides that no such credit may be taken for any taxable year that begins prior to January 1, 2025. Provides that excess credits may be carried forward or back. Provides that the aggregate amount of the Qualified Opportunity Fund tax credit shall be limited to $10,000 per taxpayer per calendar year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

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 235 as follows:

(35 ILCS 5/235 new)

Sec. 235. Qualified Opportunity Fund credit.

(a) As used in this Section:

"Applicant" means a corporation, partnership, limited liability company, or a natural person that makes an investment in a Qualified Opportunity Fund established under Section 1400Z-2 of the Internal Revenue Code.

"Claimant" means an applicant that is awarded a credit under this Section by the Department.

"Department" means the Department of Commerce and Economic Opportunity.

(b) A claimant may claim a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act in an amount equal to the claimant's investment during the taxable year in a Qualified Opportunity Fund established under Section 1400Z-2 of the Internal Revenue Code.

(c) Credits may be awarded for investments made on or after the date on which the Qualified Opportunity Fund is created; however, no credit may be taken for any taxable year that begins prior to January 1, 2025. The credit under this Section may not exceed the taxpayer's Illinois income tax liability for the taxable year. If the amount of the credit exceeds the tax liability for the year, then the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year or carried back and applied to the tax liability of the 3 taxable years immediately preceding the excess credit year. The credit shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, the earlier credit shall be applied first. In the case of a partnership or Subchapter S Corporation, the credit is 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) A transfer of the credit may be made by the taxpayer, in accordance with rules adopted by the Department, within one year after the credit is awarded.

(e) In no event shall a credit under this Section exceed $10,000 for any taxpayer in any taxable year.

(f) This Section is exempt from the provisions of Section 250.

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