093_SB1535eng

 
SB1535 Engrossed                     LRB093 10861 SJM 11351 b

 1        AN ACT concerning rural technology.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Rural Technology Development Zone Act.

 6        Section 5.  Zones established.  Subject to appropriation,
 7    the Department of Commerce and Community Affairs  (DCCA)  may
 8    implement  a  pilot program to designate 3 rural areas in the
 9    State  as  rural  technology  development  zones.  The  pilot
10    programs shall be in areas that are underserved with  respect
11    to  technology  development.  DCCA  shall  determine  which 3
12    underserved  areas  shall   be   designated   as   technology
13    development  zones in consultation with the Illinois Commerce
14    Commission.  In designating the zones, DCCA shall specify  by
15    rule,  based  upon  the  needs  and assessment inventory, the
16    specific  technology  infrastructure  needs  of  each   rural
17    technology development zone and the types of investments that
18    will  meet those needs. For each rural technology development
19    zone  designated  under  this  Section,  DCCA  shall  further
20    specify all of the following:
21             (1)  The  boundaries   of   the   rural   technology
22        development zone.
23             (2)  The  potential  for  increasing Internet access
24        within the rural technology development zone.
25             (3)  The specific technology infrastructure required
26        to provide adequate Internet access within the  zone  and
27        any unique needs or characteristics of the zone.
28             (4)  The    specific   investments   in   technology
29        infrastructure that will qualify for income  tax  credits
30        in  the zone under Section 213 of the Illinois Income Tax
31        Act.
 
SB1535 Engrossed            -2-      LRB093 10861 SJM 11351 b
 1             (5)  Any other information DCCA deems pertinent.

 2        Section 10.  Report to the General Assembly.  DCCA  shall
 3    submit  a  report  to  the  General  Assembly  on  or  before
 4    September   1,  2005  outlining  the  progress,  if  any,  in
 5    improving Internet access within rural technology development
 6    zones. The report shall include, but is not limited  to,  the
 7    following information:
 8             (1)  An  analysis  of the changes made in technology
 9        infrastructure in the rural technology development  zones
10        to  improve  Internet  access  and  the  effects of those
11        changes.
12             (2)  Any available statistics concerning the  amount
13        of  investments  made  in  rural  technology  development
14        zones.

15        Section  15.  Rules. DCCA shall adopt any rules necessary
16    for the administration of this Act.

17        Section 90.  The Illinois Income Tax Act  is  amended  by
18    adding Section 213 as follows:

19        (35 ILCS 5/213 new)
20        Sec. 213.  Rural technology development zone tax credit.
21        (a)  For  taxable  years beginning on or after January 1,
22    2004 and before January 1, 2010, each taxpayer is entitled to
23    a credit against the tax imposed by subsections (a)  and  (b)
24    of Section 201 in an amount equal to 10% of the amount of the
25    total investment made during the taxable year by the taxpayer
26    in  technology  infrastructure  required  to provide Internet
27    access in rural technology development zones. This credit may
28    be  claimed  only  for  specific   capital   investments   in
29    technology  infrastructure  that  will qualify for income tax
30    credits  in  the  development  zone  as  specified   by   the
 
SB1535 Engrossed            -3-      LRB093 10861 SJM 11351 b
 1    Department  of  Commerce and Community Affairs under item (4)
 2    of Section 5 of the Rural Technology  Development  Zone  Act.
 3    The credit claimed by a taxpayer under this Section shall not
 4    exceed $100,000 in any one taxable year.
 5        (b)  If the credit allowed under this Section exceeds the
 6    income  taxes  otherwise  due  on  the claimant's income, the
 7    amount of the credit not used as  an  offset  against  income
 8    taxes  may  be  carried  forward  as  a  tax  credit  against
 9    subsequent  years'  income  tax liability for a period not to
10    exceed 10 years and shall be applied first  to  the  earliest
11    years possible.
12        (c)  The  credit awarded under this Section is limited as
13    follows:
14             (1)  The credit claimed shall  not  exceed  $100,000
15        per  year.  Qualified investments in excess of $1,000,000
16        in any tax year  cannot  earn  a  credit  and  cannot  be
17        carried forward.
18             (2)  A  partnership, S corporation, or other similar
19        pass-through entity or  a  disregarded  entity  may  pass
20        through  up  to $100,000 in total credit to its partners,
21        shareholders, or members. Each partner,  shareholder,  or
22        member's portion of the credit is determined according to
23        the  ratio  in  which profits or losses of the entity are
24        allocated.

25        Section 99.  Effective date. This Act takes  effect  upon
26    becoming law.