Illinois General Assembly - Full Text of HB4327
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Full Text of HB4327  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/5/2022, by Rep. Thomas M. Bennett


35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for Illinois licensed wine manufacturers and craft brewers in an amount equal to 50% of the qualified costs incurred by a qualified taxpayer during the taxable year, not to exceed $1,500. Provides that the tax credit shall be awarded on the basis of costs related to the purchase of crops used in the manufacture of beer or wine that are grown and harvested in Illinois. Defines terms. Effective immediately.

LRB102 21978 HLH 31105 b





HB4327LRB102 21978 HLH 31105 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 Section 232 as follows:
6    (35 ILCS 5/232 new)
7    Sec. 232. Credit for Illinois wineries and craft
9    (a) For each taxable year ending on or after December 31,
102022, each taxpayer is entitled to a credit against the tax
11imposed by subsections (a) and (b) of Section 201 of this Act
12in an amount equal to 50% of the qualified costs incurred by a
13qualified taxpayer during the taxable year. In no event shall
14a taxpayer receive a credit of more than $1,500. In no event
15shall more than one credit be allowed for any one licensed wine
16manufacturer or craft brewer.
17    (b) In order to be eligible for a tax credit under this
18Section, a taxpayer must: (i) own or operate a licensed
19Illinois-based wine manufacturing business; or (ii) own or
20operate a licensed Illinois-based craft brewery. The credit
21shall be awarded on the basis of costs related to the purchase
22of crops used in the manufacture of beer or wine that are grown
23and harvested in Illinois.



HB4327- 2 -LRB102 21978 HLH 31105 b

1    (c) 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    (d) In no event shall a credit under this Section reduce
10the taxpayer's liability to less than zero. If the amount of
11the tax credit exceeds the tax liability for the year, the
12excess may be carried forward and applied to the tax liability
13of the 5 taxable years following the excess credit year. The
14credit must be applied to the earliest year for which there is
15a tax liability. If there are credits from more than one tax
16year that are available to offset a liability, then the
17earlier credit must be applied first.
18    (e) The Department of Revenue shall adopt any necessary
19rules in order to implement and administer the provisions of
20this Section.
21    (f) For purposes of this Section:
22    "Qualified costs" means costs associated to the purchase
23of crops, including, but not limited to, barley, hops, and
24grapes, that are grown and harvested in Illinois.
25    "Qualified taxpayer" means an individual that is: (i) a
26licensed wine manufacturer as provided under Section 1-3.11 of



HB4327- 3 -LRB102 21978 HLH 31105 b

1the Liquor Control Act of 1934; (ii) a licensed Class 1 brewer,
2as provided under Section 1-3.38 of the Liquor Control Act of
31934; or (iii) a licensed Class 2 brewer, as provided under
4Section 1-3.42 of the Liquor Control Act of 1934.
5    Section 99. Effective date. This Act takes effect upon
6becoming law.