98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3263

 

Introduced , by Rep. Keith Farnham

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal to a percentage of the taxpayer's qualified production activities income. Provides that, for taxable years ending on or after December 31, 2014 and prior to December 31, 2015, the credit shall be 2% of the taxpayer's qualified production activities income for the taxable year; for taxable years ending on or after December 31, 2015 and prior to December 31, 2016, the credit shall be 4% of the taxpayer's qualified production activities income for the taxable year; and for taxable years ending on or after December 31, 2016, the credit shall be 6.2% of the taxpayer's qualified production activities income for the taxable year. Provides that excess credit amounts may be carried forward and applied to the tax liability of the 15 taxable years following the excess credit year. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3263LRB098 08376 HLH 38481 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 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Credit for qualified production activities
8income. For taxable years ending on or after December 31, 2014,
9each taxpayer is entitled to a credit against the tax imposed
10under subsections (a) and (b) of Section 201 in an amount equal
11to a percentage of the taxpayer's qualified production
12activities income as set forth in this Section. For taxable
13years ending on or after December 31, 2014 and prior to
14December 31, 2015, the credit shall be 2% of the taxpayer's
15qualified production activities income for the taxable year.
16For taxable years ending on or after December 31, 2015 and
17prior to December 31, 2016, the credit shall be 4% of the
18taxpayer's qualified production activities income for the
19taxable year. For taxable years ending on or after December 31,
202016, the credit shall be 6.2% of the taxpayer's qualified
21production activities income for the taxable year.
22    In no event shall a credit under this Section reduce the
23taxpayer's liability under this Act to less than zero. If the

 

 

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1amount of the credit exceeds the tax liability for the taxable
2year, whether it exceeds the original liability or the
3liability as later amended, the excess may be carried forward
4and applied to the tax liability of the 15 taxable years
5following the excess credit year. The credit shall be applied
6to the earliest year for which there is a liability. If there
7is credit from more than one tax year that is available to
8offset a liability, earlier credit shall be applied first.
9    For the purposes of this Section "qualified production
10activities income" has the meaning ascribed to that term in
11subsection (c) of Section 199 of the federal Internal Revenue
12Code.
13    This Section is exempt from the provisions of Section 250.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.