HB2522 94TH GENERAL ASSEMBLY

LRB094 09840 BDD 41184 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2522

Introduced 2/18/2005, by Rep. Jim Sacia

SYNOPSIS AS INTRODUCED:

35 ILCS 5/216 new
35 ILCS 5/217 new

Amends the Illinois Income Tax Act. Allows credits of $10,000 for high-impact ethanol retailers and high-impact biodiesel retailers. Defines "high-impact ethanol retailer" as a motor fuel retailer who has been certified by the Department as being one of the top 25 retailers in the sale of motor-fuel ethanol in the State during the previous calendar year, and defines "high-impact biodiesel retailer" as a motor fuel retailer who has been certified by the Department as being one of the top 25 retailers in the sale of biodiesel in the State during the previous calendar year. Provides that the credits may not be carried forward or back and may not reduce a taxpayer's liability to less than zero. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Illinois Income Tax Act is amended by adding Sections 216 and 217 as follows:

(35 ILCS 5/216 new)

Sec. 216. Tax credit for ethanol sales.

(a) For taxable years ending on or after December 31, 2005 and ending on or before December 30, 2010, each high-impact ethanol retailer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount of $10,000.

(b) For the purpose of this Section, a "high-impact ethanol retailer" means a motor fuel retailer who has been certified by the Department as being one of the top 25 retailers in the sale of motor-fuel ethanol in the State during the previous calendar year. "Motor-fuel ethanol" means ethanol that has been added to gasoline.

(c) To be eligible for a credit under this Section, the taxpayer must make an application to the Department that contains any information reasonably required by the Department to calculate the amount of motor-fuel ethanol sold by the taxpayer.

(d) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(e) The credit may not be carried forward or back. In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.

(f) The Department must adopt any ruled necessary for the administration of this Section.

(35 ILCS 5/217 new)

Sec. 217. Tax credit for biodiesel sales.

(a) For taxable years ending on or after December 31, 2005 and ending on or before December 30, 2010, each high-impact biodiesel retailer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount of $10,000.

(b) For the purpose of this Section, a "high-impact biodiesel retailer" means a motor fuel retailer who has been certified by the Department as being one of the top 25 retailers in the sale of biodiesel in the State during the previous calendar year. "Biodiesel" has the meaning set forth in Section 10 of the Illinois Renewable Fuels Development Program Act.

(c) To be eligible for a credit under this Section, the taxpayer must make an application to the Department that contains any information reasonably required by the Department to calculate the amount of biodiesel sold by the taxpayer.

(d) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(e) The credit may not be carried forward or back. In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.

(f) The Department must adopt any ruled necessary for the administration of this Section.

Section 99. Effective date. This Act takes effect January 1, 2006.