Sen. James F. Clayborne, Jr.

Filed: 3/26/2012

 

 


 

 


 
09700SB3212sam002LRB097 18868 HLH 68039 a

1
AMENDMENT TO SENATE BILL 3212

2    AMENDMENT NO. ______. Amend Senate Bill 3212 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5adding Section 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

 

 

09700SB3212sam002- 2 -LRB097 18868 HLH 68039 a

1approved. The taxpayer may claim the remaining 25% of the
2credits awarded upon receipt of a "No Further Remediation"
3determination from the Illinois Environmental Protection
4Agency. The Department shall distribute the tax credits
5equitably throughout all geographic regions of the State. The
6taxpayer may sell, transfer, or assign credits awarded under
7this Section. The Department may, in its discretion, withhold
8the remaining 25% of the credits pending creation of the
9proposed jobs.
10    (b) The tax credit may not reduce the taxpayer's liability
11to less than zero. If the amount of the tax credit exceeds the
12tax liability for the year, the excess may be carried forward
13and applied to the tax liability of the 5 taxable years
14following the excess credit year. The credit must be applied to
15the earliest year for which there is a tax liability. If there
16are credits from more than one tax year that are available to
17offset a liability, then the earlier credit must be applied
18first.
19    (c) The Department shall not approve applications for
20credits under this Act which, in the aggregate for each fiscal
21year, exceed $50,000,000. However, if, in any fiscal year, the
22total aggregate amount of the credits awarded does not exceed
23$50,000,000, then the $50,000,000 limitation for the next
24fiscal year shall be increased by the difference between
25$50,000,000 and the total amount of aggregate credits awarded
26in that previous fiscal year.

 

 

09700SB3212sam002- 3 -LRB097 18868 HLH 68039 a

1    (d) Tax credits awarded under this Section are limited to
2the lesser of the least amount necessary for the project to
3occur or the positive net State economic impact. Consideration
4shall be given for a project's potential for enhancing the
5redevelopment of nearby blighted property.
6    (e) For the purposes of this Section:
7        "Department" means the Department of Commerce and
8    Economic Opportunity;
9        "Eligible project" means the remodeling,
10    rehabilitation, modernization, or remediation of abandoned
11    or underutilized property located in the State that is
12    contaminated with hazardous substances, petroleum
13    products, or lead-based paint, or a combination of those
14    factors, at the time the property is purchased by the
15    taxpayer. The project site must be enrolled in the Illinois
16    Environmental Protection Agency's Site Remediation
17    Program, and the project must be approved by the
18    municipality and the county in which the site is located.
19    The taxpayer must demonstrate that the project will create
20    at least 10 new jobs, retain 25 jobs, or a combination
21    thereof.
22        "Eligible project costs" include, but are not limited
23    to, costs associated with site assessment and
24    investigation; soil, groundwater, and surface water
25    remediation; asbestos and lead-based paint surveys and
26    abatement; documentation and reporting necessary to meet

 

 

09700SB3212sam002- 4 -LRB097 18868 HLH 68039 a

1    environmental regulations and obtain closure documentation
2    from the State.
3        "Qualified taxpayer" means a taxpayer that meets all of
4    the following criteria:
5            (1) the taxpayer is the owner of the site on which
6        the eligible project will occur;
7            (2) the taxpayer must be current on all taxes
8        imposed by the State at the time of the application and
9        must have no criminal record; and
10            (3) the taxpayer must not be the party responsible
11        for the contamination.
12    (f) This Section is exempt from the provisions of Section
13250.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".