Illinois General Assembly - Full Text of HB4155
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Full Text of HB4155  102nd General Assembly

HB4155 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4155

 

Introduced , by Rep. Dave Vella

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new
35 ILCS 5/233 new
35 ILCS 5/234 new
35 ILCS 5/235 new

    Amends the Illinois Income Tax Act. Creates the following credits for taxpayers who manufacture electric vehicles, batteries for electric vehicles, or both: (1) a credit for capital expenditures for electric vehicle facilities or electric vehicle battery facilities; (2) a credit for educational or vocational training; and (3) a credit for qualified utility payments. Creates a credit for certain automobile manufacturers in an amount equal to 75% of withholding payments for new employees. Effective immediately.


LRB102 19610 HLH 28961 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4155LRB102 19610 HLH 28961 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
5adding Sections 232, 233, 234, and 235 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Capital expenditures for electric vehicle
8facilities or electric vehicle battery facilities.
9    (a) For tax years ending on or after December 31, 2022,
10each taxpayer that makes a capital investment during the
11taxable year for the construction of a new qualified facility
12or the renovation of an existing qualified facility is
13entitled to a credit against the taxes imposed by subsections
14(a) and (b) of Section 201 in an amount equal to those capital
15investments.
16    (b) For partners, shareholders of subchapter S
17corporations, and owners of limited liability companies, if
18the liability company is treated as a partnership for purposes
19of federal and State income taxation, there shall be allowed a
20credit under this Section to be determined in accordance with
21the determination of income and distributive share of income
22under Sections 702 and 704 and subchapter S of the Internal
23Revenue Code.

 

 

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1    (c) The tax credit may not reduce the taxpayer's liability
2to less than zero. If the amount of the tax credit exceeds the
3taxpayer's tax liability for the year, then the excess may be
4carried forward and applied to the tax liability of the 5
5taxable years following the excess credit year or the excess
6may be refunded to the taxpayer, at the taxpayer's election.
7Excess credit amounts that are carried forward must be applied
8to the earliest year for which there is a tax liability. If the
9excess credit amounts are carried forward and there are
10credits from more than one tax year that are available to
11offset a liability, then the earlier credit must be applied
12first.
13    (d) As used in this Section, "qualified facility" means a
14facility that is or will be used primarily for manufacturing
15electric vehicles, manufacturing batteries for use in electric
16vehicles, or both.
17    (e) This Section is exempt from the provisions of Section
18250.
 
19    (35 ILCS 5/233 new)
20    Sec. 233. Credit for employee withholdings.
21    (a) For tax years ending on or after December 31, 2022,
22each qualified taxpayer shall be allowed a credit against the
23tax imposed by subsections (a) and (b) of Section 201 in an
24amount equal to 75% of the incremental income tax paid during
25the taxable year for each new employee of the qualified

 

 

HB4155- 3 -LRB102 19610 HLH 28961 b

1taxpayer. The credit shall be allowed for a period of 10
2consecutive taxable years after the taxpayer meets the capital
3investment requirements needed to be considered a qualified
4taxpayer under this Section; however, no credit may be claimed
5for any taxable year in which the taxpayer does not conduct
6business operations at a location in this State.
7    (b) For partners, shareholders of subchapter S
8corporations, and owners of limited liability companies, if
9the liability company is treated as a partnership for purposes
10of federal and State income taxation, there shall be allowed a
11credit under this Section to be determined in accordance with
12the determination of income and distributive share of income
13under Sections 702 and 704 and subchapter S of the Internal
14Revenue Code.
15    (c) The tax credit may not reduce the taxpayer's liability
16to less than zero. If the amount of the tax credit exceeds the
17taxpayer's tax liability for the year, the excess may be
18carried forward and applied to the tax liability of the 5
19taxable years following the excess credit year. Excess credit
20amounts that are carried forward must be applied to the
21earliest year for which there is a tax liability. If there are
22credits from more than one tax year that are available to
23offset a liability, then the earlier credit must be applied
24first.
25    (d) As used in this Section:
26    "Full-time employee" means an individual who is employed

 

 

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1for consideration for at least 35 hours each week or who
2renders any other standard of service generally accepted by
3industry custom or practice as full-time employment.
4    "Incremental income tax" means the total amount withheld
5during the taxable year from the compensation of new employees
6under Article 7 of this Act.
7    "New employee" means a full-time employee that is first
8hired during the taxable year.
9    "Qualified taxpayer" means an automobile manufacturer that
10makes a capital investment of at least $100,000,000 and hires
11or retains at least 1,000 new employees for the purpose of
12building electric vehicles at a location in the State.
 
13    (35 ILCS 5/234 new)
14    Sec. 234. Electric vehicle technical training credit.
15    (a) For tax years ending on or after December 31, 2022, in
16addition to any other income tax credit provided by law, each
17qualified taxpayer shall be allowed a credit against the tax
18imposed by subsections (a) and (b) of Section 201 in an amount
19equal to 25% of the amount paid or accrued during the taxable
20year on behalf of all persons employed by the qualified
21taxpayer in Illinois or Illinois residents employed outside of
22Illinois by the qualified taxpayer, for educational or
23vocational training in semi-technical or technical fields or
24semi-skilled or skilled fields, which were deducted from gross
25income in the computation of taxable income.

 

 

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1    (b) For partners, shareholders of subchapter S
2corporations, and owners of limited liability companies, if
3the liability company is treated as a partnership for purposes
4of federal and State income taxation, there shall be allowed a
5credit under this Section to be determined in accordance with
6the determination of income and distributive share of income
7under Sections 702 and 704 and subchapter S of the Internal
8Revenue Code.
9    (c) The tax credit may not reduce the taxpayer's liability
10to less than zero. If the amount of the tax credit exceeds the
11taxpayer's tax liability for the year, the excess may be
12carried forward and applied to the tax liability of the 5
13taxable years following the excess credit year. Excess credit
14amounts that are carried forward must be applied to the
15earliest year for which there is a tax liability. If there are
16credits from more than one tax year that are available to
17offset a liability, then the earlier credit must be applied
18first.
19    (d) As used in this Section, "qualified taxpayer" means a
20person or entity that is primarily engaged in the business of
21manufacturing electric cars, batteries for electric cars, or
22both.
23    (e) This Section is exempt from the provisions of Section
24250.
 
25    (35 ILCS 5/235 new)

 

 

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1    Sec. 235. Credit for qualified utility payments.
2    (a) For tax years ending on or after December 31, 2022,
3each qualified taxpayer shall be allowed a credit against the
4tax imposed by subsections (a) and (b) of Section 201 in an
5amount equal to 25% of the amount paid during the taxable year
6for electricity and natural gas used in the process of
7manufacturing electric vehicles, batteries for electric
8vehicles, or both.
9    (b) For partners, shareholders of subchapter S
10corporations, and owners of limited liability companies, if
11the liability company is treated as a partnership for purposes
12of federal and State income taxation, there shall be allowed a
13credit under this Section to be determined in accordance with
14the determination of income and distributive share of income
15under Sections 702 and 704 and subchapter S of the Internal
16Revenue Code.
17    (c) The tax credit may not reduce the taxpayer's liability
18to less than zero. If the amount of the tax credit exceeds the
19taxpayer's tax liability for the year, then the excess may be
20carried forward and applied to the tax liability of the 5
21taxable years following the excess credit year or the excess
22may be refunded to the taxpayer, at the taxpayer's election.
23Excess credit amounts that are carried forward must be applied
24to the earliest year for which there is a tax liability. If the
25excess credit amounts are carried forward and there are
26credits from more than one tax year that are available to

 

 

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1offset a liability, then the earlier credit must be applied
2first.
3    (d) As used in this Section, "qualified taxpayer" means a
4person or entity that is primarily engaged in manufacturing
5electric cars, batteries for electric cars, or both.
6    (e) This Section is exempt from the provisions of Section
7250.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.