SB2998 103RD GENERAL ASSEMBLY

LRB103 38049 HLH 68181 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2998

Introduced 2/2/2024, by Sen. Jil Tracy

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who make an investment in depreciable property used primarily to collect or process reclaimable material or to manufacture products from reclaimed material. Sets forth the amount of the credit. 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 241 as follows:

(35 ILCS 5/241 new)

Sec. 241. Reclaimable material.

(a) For taxable years beginning on or after January 1, 2025, a taxpayer who makes an investment in depreciable property used primarily to collect or process reclaimable material or to manufacture products from reclaimed material is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 as provided in this Section. The amount of the credit shall be as follows:

(1) 25% of the cost of the property on the first $250,000 invested;

(2) 15% of the cost of the property on the next $250,000 invested; and

(3) 5% of the cost of the property on the next $500,000 invested.

A credit may not be claimed for investments in depreciable property in excess of $1,000,000.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) If the taxpayer is a partnership, a Subchapter S corporation, or a limited liability company that has elected partnership tax treatment, the credit shall be allowed to the partners, shareholders, or members 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, as applicable.

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

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