SB3212 EngrossedLRB097 18868 HLH 64106 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 adding
5Section 223 as follows:
 
6    (35 ILCS 5/223 new)
7    Sec. 223. Brownfield remediation tax credit.
8    (a) For taxable years beginning on or after January 1,
92012, qualified taxpayers that undertake one or more eligible
10projects during the taxable year may apply with the Department
11to obtain a tax credit against the tax imposed under
12subsections (a) and (b) of Section 201 of this Act. The credit
13may not exceed 100% of the eligible project costs incurred by
14the taxpayer during the taxable year. The taxpayer shall be
15eligible to claim 75% of the amount of the credit awarded
16beginning in the taxable year in which the application is
17approved. The taxpayer may claim the remaining 25% of the
18credits awarded upon receipt of a "No Further Remediation"
19determination from the Illinois Environmental Protection
20Agency. The Department shall distribute the tax credits
21equitably throughout all geographic regions of the State. The
22taxpayer may sell, transfer, or assign credits awarded under
23this Section. The Department may, in its discretion, withhold

 

 

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1the remaining 25% of the credits pending creation of the
2proposed jobs.
3    (b) The tax credit may not reduce the taxpayer's liability
4to less than zero. If the amount of the tax credit exceeds the
5tax liability for the year, the excess may be carried forward
6and applied to the tax liability of the 5 taxable years
7following the excess credit year. The credit must be applied to
8the earliest year for which there is a tax liability. If there
9are credits from more than one tax year that are available to
10offset a liability, then the earlier credit must be applied
11first.
12    (c) The Department shall not approve applications for
13credits under this Act which, in the aggregate for each fiscal
14year, exceed $50,000,000. However, if, in any fiscal year, the
15total aggregate amount of the credits awarded does not exceed
16$50,000,000, then the $50,000,000 limitation for the next
17fiscal year shall be increased by the difference between
18$50,000,000 and the total amount of aggregate credits awarded
19in that previous fiscal year.
20    (d) Tax credits awarded under this Section are limited to
21the lesser of the least amount necessary for the project to
22occur or the positive net State economic impact. Consideration
23shall be given for a project's potential for enhancing the
24redevelopment of nearby blighted property.
25    (e) For the purposes of this Section:
26        "Department" means the Department of Commerce and

 

 

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1    Economic Opportunity.
2        "Eligible project" means the remodeling,
3    rehabilitation, modernization, or remediation of abandoned
4    or underutilized property located in the State that is
5    contaminated with hazardous substances, petroleum
6    products, or lead-based paint, or a combination of those
7    factors, at the time the property is purchased by the
8    taxpayer. The project site must be enrolled in the Illinois
9    Environmental Protection Agency's Site Remediation
10    Program, and the project must be approved by the
11    municipality and the county in which the site is located.
12    The taxpayer must demonstrate that the project will create
13    at least 10 new jobs, retain 25 jobs, or a combination
14    thereof.
15        "Eligible project costs" include, but are not limited
16    to, costs associated with site assessment and
17    investigation; soil, groundwater, and surface water
18    remediation; asbestos and lead-based paint surveys and
19    abatement; documentation and reporting necessary to meet
20    environmental regulations and obtain closure documentation
21    from the State.
22        "Qualified taxpayer" means a taxpayer that meets all of
23    the following criteria:
24            (1) the taxpayer is the owner of the site on which
25        the eligible project will occur;
26            (2) the taxpayer must be current on all taxes

 

 

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1        imposed by the State at the time of the application and
2        must have no criminal record; and
3            (3) the taxpayer must not be the party responsible
4        for the contamination.
5    (f) This Section is exempt from the provisions of Section
6250.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.