101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3319

 

Introduced , by Rep. Mark L. Walker

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 10/5-45

    Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the recipient of a credit under the Act may apply for a certificate of transferability of credit from the Department of Commerce and Economic Opportunity for the amount of the credit not previously claimed. Provides that the transferability certificate may be transferred or sold by the recipient to another Illinois taxpayer. Makes other changes.


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A BILL FOR

 

HB3319LRB101 05942 HLH 50963 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Economic Development for a Growing Economy
5Tax Credit Act is amended by changing Section 5-45 as follows:
 
6    (35 ILCS 10/5-45)
7    Sec. 5-45. Amount and duration of the credit.
8    (a) The Department shall determine the amount and duration
9of the credit awarded under this Act. The duration of the
10credit may not exceed 10 taxable years. The credit may be
11stated as a percentage of the Incremental Income Tax
12attributable to the applicant's project and may include a fixed
13dollar limitation.
14    (b) Notwithstanding subsection (a), and except as the
15credit may be applied in a carryover year pursuant to Section
16211(4) of the Illinois Income Tax Act, the credit may be
17applied against the State income tax liability in more than 10
18taxable years but not in more than 15 taxable years for an
19eligible business that (i) qualifies under this Act and the
20Corporate Headquarters Relocation Act and has in fact
21undertaken a qualifying project within the time frame specified
22by the Department of Commerce and Economic Opportunity under
23that Act, and (ii) applies against its State income tax

 

 

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1liability, during the entire 15-year period, no more than 60%
2of the maximum credit per year that would otherwise be
3available under this Act.
4    (c) Notwithstanding subsection (a) or (b), a recipient of a
5credit may request a certificate of transferability of credit
6from the Department for the amount of credit not previously
7claimed. A transferability certificate so issued may be
8transferred or sold by the recipient to another Illinois
9taxpayer. Transferors and sellers shall submit to the
10Department of Revenue a notification of any transfer or sale of
11tax credits within 30 days after the transfer or sale of those
12tax credits. The notification, which shall be in the form
13prescribed by the Department, shall include the transferor's
14tax credit balance prior to transfer, the credit certificate
15number, the identifying number of the EDGE agreement, the
16transferor's remaining tax credit balance after transfer, all
17tax identification numbers for both transferor and transferee,
18the date of transfer, the amount transferred, a copy of the
19credit certificate, and any other information required by the
20Department of Revenue. The transfer or sale of the credit does
21not extend the time in which the credit can be used. The carry
22forward period for a credit that is transferred or sold begins
23on the date on which the credit was originally granted by the
24Department. To the extent the transferor did not have rights to
25claim or use the credit at the time of the transfer or sale,
26the Department of Revenue shall either disallow the credit

 

 

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1claimed by the transferee or recapture the credit from the
2transferee through any collection method authorized by
3statute. In such case, the transferee's recourse is against the
4transferor.
5(Source: P.A. 94-793, eff. 5-19-06.)