Sen. James F. Clayborne, Jr.

Filed: 3/12/2010

 

 


 

 


 
09600SB3147sam002 LRB096 20025 HLH 38951 a

1
AMENDMENT TO SENATE BILL 3147

2     AMENDMENT NO. ______. Amend Senate Bill 3147, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
 
5     "Section 1. Short title. This Act may be cited as the
6 Efficient and Green Illinois Tax Credit Act.
 
7     Section 5. Purpose. The General Assembly finds that the
8 Illinois economy and environment are greatly enhanced by the
9 installation of energy efficiency measures and by the support
10 of renewable energy resources. The purpose of this Act is to
11 expand the adoption of energy efficiency measures in the
12 private sector, as well as to encourage use of renewable energy
13 resources. It is the policy of this State to promote and
14 encourage the adoption of energy efficiency measures as well as
15 the voluntary use of renewable energy resources.
 

 

 

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1     Section 10. Definitions. As used in this Act:
2     "Energy efficiency project" includes any of the following:
3             (A) Solar energy equipment that uses solar
4         radiation as a substitute for traditional energy for
5         water heating, active space heating and cooling,
6         passive heating, day-lighting, generating electricity,
7         distillation, desalinization, or the production of
8         industrial or commercial process heat, as well as
9         related devices necessary for collecting, storing,
10         exchanging, conditioning, or converting solar energy
11         to other useful forms of energy.
12             (B) Energy Star certified geothermal heat pump
13         systems.
14             (C) Lighting retrofit projects. "Lighting retrofit
15         project" means a lighting retrofit system that employs
16         dual switching (ability to switch roughly half the
17         lights off and still have fairly uniform light
18         distribution), de-lamping, day-lighting, re-lamping,
19         or other controls or processes that reduce annual
20         energy and power consumption by 30% compared to the
21         American Society of Heating, Refrigerating, and Air
22         Conditioning Engineers 2004 standard (ASHRAE
23         90.1.2004).
24             (D) Wind equipment required to capture and convert
25         wind energy into electricity or mechanical power as
26         well as related devices that may be required for

 

 

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1         converting, conditioning, and storing the electricity
2         produced by wind equipment.
3             (E) Green roofs and other environmentally
4         sustainable landscaping.
5             (F) WaterSense certified products for indoor and
6         outdoor non-agricultural water use.
7     "Cost" means, in the case of clean energy property owned by
8 the taxpayer, the aggregate funds actually invested and
9 expended by the taxpayer to put into service the clean energy
10 property. For purposes of this Section, all funds so invested
11 and expended shall be classified as invested and expended in
12 the taxable year during which the property is put into service.
13     "Credit" means:
14             (A) For an energy efficiency project approved by
15         the Department, the amount equal to 25% of the cost of
16         that project.
17             (B) For renewable energy resources usage approved
18         by the Department, an amount equal to 25% of the cost
19         paid for the environmental attributes of those
20         renewable energy resources during the tax year.
21     "Department" means the Department of Commerce and Economic
22 Opportunity.
23     "Renewable energy resources" means the same as it does in
24 Section 1-10 of the Illinois Power Agency Act.
 
25     Section 15. Powers of the Department. The Department, in

 

 

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1 addition to those powers granted under the Civil Administrative
2 Code of Illinois, is granted and has all the powers necessary
3 or convenient to carry out and effectuate the purposes and
4 provisions of this Act, including, but not limited to, power
5 and authority to:
6         (1) Adopt rules deemed necessary and appropriate for
7     the administration of the tax credit program; establish
8     forms for applications, notifications, contracts, or any
9     other agreements; and accept applications at any time
10     during the year.
11         (2) Assist applicants pursuant to the provisions of
12     this Act to promote, foster, and support energy efficiency
13     measures and renewable energy resources and related job
14     creation or retention within the State.
15         (3) Provide for sufficient personnel to permit
16     administration, staffing, operation, and related support
17     required to adequately discharge its duties and
18     responsibilities described in this Act from funds as may be
19     appropriated to the Department for the administration of
20     this Act.
21         (4) Require that an applicant must at all times keep
22     proper books of record and account in accordance with
23     generally accepted accounting principles consistently
24     applied, with the books, records, or papers related to the
25     accredited production in the custody or control of the
26     taxpayer open for reasonable Department inspection and

 

 

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1     audits.
 
2     Section 20. Tax credit awards. Subject to the conditions
3 set forth in this Act, for taxable years beginning on or after
4 January 1, 2010, an applicant is entitled to a credit against
5 the tax imposed under subsections (a) and (b) of Section 201 of
6 the Illinois Income Tax Act, in an amount approved by the
7 Department under Section 40 of this Act.
 
8     Section 35. Issuance of tax credit certificate.
9     (a) In order to qualify for a tax credit under this Act, an
10 applicant must file an application, on forms prescribed by the
11 Department, providing information necessary to calculate the
12 tax credit, and any additional information as required by the
13 Department.
14     (b) Upon satisfactory review of the application, the
15 Department shall issue a tax credit certificate.
 
16     Section 40. Amount and duration of the credit. The amount
17 of the credit awarded under this Act is based on the cost of
18 the qualifying expenditures under this Act. The credit shall be
19 awarded for the taxable year in which the project is put into
20 service. The tax credit may not reduce the taxpayer's liability
21 to less than zero. If the amount of the tax credit exceeds the
22 taxpayer's Illinois income tax liability for the year, the
23 excess may be carried forward and applied to the tax liability

 

 

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1 of the 5 taxable years following the excess credit year. The
2 credit must be applied to the earliest year for which there is
3 a tax liability. If there are credits from more than one tax
4 year that are available to offset a liability, then the earlier
5 credit must be applied first. The Department may not approve
6 more than $40,000,000 in credits under this Act in any one
7 taxable year. This Act is exempt from the provisions of Section
8 250 of the Illinois Income Tax Act.
 
9     Section 80. The Illinois Income Tax Act is amended by
10 adding Section 219 as follows:
 
11     (35 ILCS 5/219 new)
12     Sec. 219. Efficient and Green Illinois Tax Credit Act. For
13 tax years beginning on or after January 1, 2010, a taxpayer who
14 has been awarded a credit under the Efficient and Green
15 Illinois Tax Credit Act is entitled to a credit against the
16 taxes imposed under subsections (a) and (b) of Section 201 of
17 this Act in an amount to be determined under that Act. If the
18 taxpayer is a partnership or Subchapter S corporation, the
19 credit shall be allowed to the partners or shareholders in
20 accordance with the determination of income and distributive
21 share of income under Sections 702 and 704 and subchapter S of
22 the Internal Revenue Code. This Section is exempt from the
23 provisions of Section 250 of this Act.
 

 

 

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