103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2883

 

Introduced 1/24/2024, by Sen. Julie A. Morrison

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/241 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for qualified businesses that install solar canopies or permeable surfaces in their parking areas during the taxable year. Effective immediately.


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A BILL FOR

 

SB2883LRB103 38023 HLH 68155 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 Illinois Income Tax Act is amended by
5adding Section 241 as follows:
 
6    (35 ILCS 5/241 new)
7    Sec. 241. Green parking tax credit.
8    (a) For taxable years beginning on or after January 1,
92024 and beginning before January 1, 2029, each taxpayer that
10is a qualified business and that installs (i) solar canopies
11or (ii) a permeable surface of more than 100 square feet in its
12parking areas during the taxable year may apply to the
13Department for a credit against the taxes imposed by
14subsections (a) and (b) of Section 201 as provided in this
15Section. Only one credit may be awarded for any single
16contiguous parking area in any taxable year. If the taxpayer
17installs a permeable surface parking area, the amount of the
18credit shall be $10 per square foot of parking surface area but
19not to exceed $10,000 per taxpayer in any one taxable year. If
20the taxpayer installs solar canopies in a parking area, the
21amount of the credit shall be $10 per kilowatt hour of energy
22produced by the solar canopies during the taxable year but not
23to exceed $10,000 per taxpayer in any one taxable year. The

 

 

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1total amount of credits that may be awarded by the Department
2in any given taxable year shall not exceed $10,000,000.
3    (b) In no event shall a credit under this Section reduce
4the taxpayer's liability to less than zero. If the amount of
5the credit exceeds the tax liability for the year, the excess
6may be carried forward and applied to the tax liability of the
75 taxable years following the excess credit year. The tax
8credit shall be applied to the earliest year for which there is
9a tax liability. If there are credits for more than one year
10that are available to offset a liability, the earlier credit
11shall be applied first.
12    (c) Credits awarded under this Section to a partner or to a
13shareholder of a subchapter S corporation shall be calculated
14as provided in Section 251.
15    (d) In order to qualify for a tax credit award under this
16Act, the taxpayer must file an application, on forms
17prescribed by the Department, for each contiguous parking area
18for which the taxpayer seeks a tax credit under this Act. The
19application must provide information necessary to calculate
20the tax credit award and any additional information as
21reasonably required by the Department.
22    (e) Upon satisfactory review of the application, the
23Department shall issue a tax credit award certificate to the
24applicant stating the amount of the tax credit award to which
25the applicant is entitled for that tax year. The certificate
26must accompany the taxpayer's tax return for which the tax

 

 

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1credit is awarded in the manner required by the Department.
2    (f) As used in this Section,
3    "Apartment complex" means premises that consist of (i) at
4least one building that contains one or more residential
5apartments and (ii) an area that is connected to or is
6contiguous to the apartments and is used by occupants of the
7apartments or their guests as a means of access to and egress
8from the apartments or for the parking of motor vehicles of the
9occupants or their guests.
10    "Condominium complex" means the units, common elements,
11and limited common elements that are located on the parcel, as
12those terms are defined in Section 2 of the Condominium
13Property Act.
14    "Commercial or industrial facility" means premises
15containing at least one commercial or industrial facility in
16connection with which there is provided, on privately owned
17property near or contiguous to the premises, one or more areas
18of land that are used by the public as a means of access to and
19egress from the commercial or industrial facility and for the
20parking of motor vehicles of customers, patrons, and employees
21of the commercial or industrial facility.
22    "Parking area" means an one or more areas of land near or
23contiguous to a school, church, or hospital building; shopping
24center; apartment complex; or condominium complex. "Parking
25area" does not include public highways or alleys used by the
26public as the means of access to and egress from those

 

 

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1buildings and for the parking of motor vehicles.
2    "Qualified business" means a corporation, partnership,
3sole proprietorship, or limited liability company that owns or
4operates a commercial or industrial facility, including, but
5not limited to, a shopping center, hospital, church, or
6school, that has parking areas with more than 200 parking
7spaces. "Qualified business" also includes a corporation,
8partnership, sole proprietorship, or limited liability company
9that owns or operates multifamily housing, including, but not
10limited to, an apartment complex or condominium complex, that
11includes a parking area with over 50 parking spaces.
12    "Shopping center" means premises having one or more stores
13or business establishments in connection with which there is a
14parking area.
15    "Solar canopy" means a ground-mounted or roof-mounted
16steel structure topped with solar panels that are able to
17produce over 10 kilowatt hours of energy per day on average.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.