98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3316

 

Introduced , by Rep. Norine Hammond

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/211
35 ILCS 10/5-45

    Amends the Economic Development for a Growing Economy Tax Credit Act and the Illinois Income Tax Act. Provides that, with respect to any project located at an ethanol plant, if the amount of the credit exceeds the taxpayer's Illinois income tax liability for the taxable year, then the excess credit amounts may be refunded to the taxpayer. Provides that refundable credits may not be transferred to a separate business firm or to a non-ethanol producing subsidiary of the same firm. Effective immediately.


LRB098 10058 HLH 40217 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3316LRB098 10058 HLH 40217 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
5changing Section 211 as follows:
 
6    (35 ILCS 5/211)
7    Sec. 211. Economic Development for a Growing Economy Tax
8Credit. For tax years beginning on or after January 1, 1999, a
9Taxpayer who has entered into an Agreement under the Economic
10Development for a Growing Economy Tax Credit Act is entitled to
11a credit against the taxes imposed under subsections (a) and
12(b) of Section 201 of this Act in an amount to be determined in
13the Agreement. If the Taxpayer is a partnership or Subchapter S
14corporation, the credit shall be allowed to the partners or
15shareholders in accordance with the determination of income and
16distributive share of income under Sections 702 and 704 and
17subchapter S of the Internal Revenue Code. The Department, in
18cooperation with the Department of Commerce and Economic
19Opportunity, shall prescribe rules to enforce and administer
20the provisions of this Section. This Section is exempt from the
21provisions of Section 250 of this Act.
22    The credit shall be subject to the conditions set forth in
23the Agreement and the following limitations:

 

 

HB3316- 2 -LRB098 10058 HLH 40217 b

1        (1) The tax credit shall not exceed the Incremental
2    Income Tax (as defined in Section 5-5 of the Economic
3    Development for a Growing Economy Tax Credit Act) with
4    respect to the project.
5        (2) The amount of the credit allowed during the tax
6    year plus the sum of all amounts allowed in prior years
7    shall not exceed 100% of the aggregate amount expended by
8    the Taxpayer during all prior tax years on approved costs
9    defined by Agreement.
10        (3) The amount of the credit shall be determined on an
11    annual basis. Except as applied in a carryover year
12    pursuant to Section 211(4) of this Act, the credit may not
13    be applied against any State income tax liability in more
14    than 10 taxable years; provided, however, that (i) an
15    eligible business certified by the Department of Commerce
16    and Economic Opportunity under the Corporate Headquarters
17    Relocation Act may not apply the credit against any of its
18    State income tax liability in more than 15 taxable years
19    and (ii) credits allowed to that eligible business are
20    subject to the conditions and requirements set forth in
21    Sections 5-35 and 5-45 of the Economic Development for a
22    Growing Economy Tax Credit Act.
23        (4) The credit may not exceed the amount of taxes
24    imposed pursuant to subsections (a) and (b) of Section 201
25    of this Act. Any credit that is unused in the year the
26    credit is computed may be carried forward and applied to

 

 

HB3316- 3 -LRB098 10058 HLH 40217 b

1    the tax liability of the 5 taxable years following the
2    excess credit year. The credit shall be applied to the
3    earliest year for which there is a tax liability. If there
4    are credits from more than one tax year that are available
5    to offset a liability, the earlier credit shall be applied
6    first.
7        (5) No credit shall be allowed with respect to any
8    Agreement for any taxable year ending after the
9    Noncompliance Date. Upon receiving notification by the
10    Department of Commerce and Economic Opportunity of the
11    noncompliance of a Taxpayer with an Agreement, the
12    Department shall notify the Taxpayer that no credit is
13    allowed with respect to that Agreement for any taxable year
14    ending after the Noncompliance Date, as stated in such
15    notification. If any credit has been allowed with respect
16    to an Agreement for a taxable year ending after the
17    Noncompliance Date for that Agreement, any refund paid to
18    the Taxpayer for that taxable year shall, to the extent of
19    that credit allowed, be an erroneous refund within the
20    meaning of Section 912 of this Act.
21        (6) For purposes of this Section, the terms
22    "Agreement", "Incremental Income Tax", and "Noncompliance
23    Date" have the same meaning as when used in the Economic
24    Development for a Growing Economy Tax Credit Act.
25    Notwithstanding any other provision of law, with respect to
26any project located at an ethanol plant, as the term "ethanol"

 

 

HB3316- 4 -LRB098 10058 HLH 40217 b

1is defined in the Illinois Renewable Fuels Development Program
2Act, if the amount of the credit exceeds the taxpayer's
3Illinois income tax liability for the taxable year, then the
4excess credit amounts may be refunded to the taxpayer. The
5refundable credits may not be transferred to a separate
6business firm or to a non-ethanol producing subsidiary of the
7same firm.
8(Source: P.A. 94-793, eff. 5-19-06.)
 
9    Section 10. The Economic Development for a Growing Economy
10Tax Credit Act is amended by changing Section 5-45 as follows:
 
11    (35 ILCS 10/5-45)
12    Sec. 5-45. Amount and duration of the credit.
13    (a) The Department shall determine the amount and duration
14of the credit awarded under this Act. The duration of the
15credit may not exceed 10 taxable years. The credit may be
16stated as a percentage of the Incremental Income Tax
17attributable to the applicant's project and may include a fixed
18dollar limitation.
19    (b) Notwithstanding subsection (a), and except as the
20credit may be applied in a carryover year pursuant to Section
21211(4) of the Illinois Income Tax Act, the credit may be
22applied against the State income tax liability in more than 10
23taxable years but not in more than 15 taxable years for an
24eligible business that (i) qualifies under this Act and the

 

 

HB3316- 5 -LRB098 10058 HLH 40217 b

1Corporate Headquarters Relocation Act and has in fact
2undertaken a qualifying project within the time frame specified
3by the Department of Commerce and Economic Opportunity under
4that Act, and (ii) applies against its State income tax
5liability, during the entire 15-year period, no more than 60%
6of the maximum credit per year that would otherwise be
7available under this Act.
8    (c) Notwithstanding any other provision of law, with
9respect to any project located at an ethanol plant, as the term
10"ethanol" is defined in the Illinois Renewable Fuels
11Development Program Act, if the amount of the credit exceeds
12the taxpayer's Illinois income tax liability for the taxable
13year, then the excess credit amounts may be refunded to the
14taxpayer. The refundable credits may not be transferred to a
15separate business firm or to a non-ethanol producing subsidiary
16of the same firm.
17(Source: P.A. 94-793, eff. 5-19-06.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.