Illinois General Assembly - Full Text of SB2071
Illinois General Assembly

Previous General Assemblies

Full Text of SB2071  100th General Assembly




State of Illinois
2017 and 2018


Introduced 2/10/2017, by Sen. Pamela J. Althoff


New Act
35 ILCS 5/224 new

    Creates the Transforming, Helping, and Reviving Illinois' Versatile Economy (THRIVE) Job Creation Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity shall award an income tax credit to taxpayers that meet certain criteria. Contains job creation and capital investment requirements. Provides that the credit may not exceed 50% of the incremental income tax attributable to the applicant's project. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

LRB100 11448 HLH 21884 b






SB2071LRB100 11448 HLH 21884 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 1. Short title. This Act may be cited as the
5Transforming, Helping, and Reviving Illinois' Versatile
6Economy (THRIVE) Job Creation Tax Credit Act.
7    Section 5. Definitions.
8    "Agreement" means the Agreement between a taxpayer and the
9Department under Section 40 of this Act.
10    "Applicant" means a taxpayer that is operating a business
11located, or that the taxpayer plans to locate, within the State
12and that is engaged in interstate or intrastate commerce for
13the purpose of manufacturing, processing, assembling,
14warehousing, or distributing products, conducting research and
15development, providing tourism services, or providing services
16in interstate commerce, office industries, or agricultural
17processing, but excluding retail, retail food, health, or
18professional services. "Applicant" does not include a taxpayer
19who closes or substantially reduces an operation at one
20location in the State and relocates substantially the same
21operation to another location in the State. This does not
22prohibit a taxpayer from expanding its operations at another
23location in the State, provided that existing operations of a



SB2071- 2 -LRB100 11448 HLH 21884 b

1similar nature located within the State are not closed or
2substantially reduced. This also does not prohibit a taxpayer
3from moving its operations from one location in the State to
4another location in the State for the purpose of expanding the
5operation, provided that the Department determines that
6expansion cannot reasonably be accommodated within the
7municipality in which the business is located, or, in the case
8of a business located in an unincorporated area of the county,
9within the county in which the business is located, after
10conferring with the chief elected official of the municipality
11or county and taking into consideration any evidence offered by
12the municipality or county regarding the ability to accommodate
13expansion within the municipality or county.
14    "Credit" means the amount agreed to between the Department
15and applicant under this Act, but not to exceed 50% of the
16incremental income tax attributable to the applicant's
18    "Department" means the Department of Commerce and Economic
20    "Director" means the Director of Commerce and Economic
22    "Full-time employee" means an individual who is employed
23for consideration for at least 35 hours each week or who
24renders any other standard of service generally accepted by
25industry custom or practice as full-time employment. An
26individual for whom a W-2 is issued by a Professional Employer



SB2071- 3 -LRB100 11448 HLH 21884 b

1Organization (PEO) is a full-time employee if employed in the
2service of the applicant for consideration for at least 35
3hours each week or who renders any other standard of service
4generally accepted by industry custom or practice as full-time
6    "Incremental income tax" means the total amount withheld
7during the taxable year from the compensation of new employees
8under Article 7 of the Illinois Income Tax Act arising from
9employment at a project that is the subject of an agreement.
10    "New employee" means a full-time employee first employed by
11a taxpayer in the project that is the subject of an agreement
12and who is hired after the taxpayer enters into the tax credit
13agreement. The term "new employee" does not include:
14        (1) an employee of the taxpayer who performs a job that
15    was previously performed by another employee, if that job
16    existed for at least 6 months before the employee was hired
17    by the taxpayer;
18        (2) an employee of the taxpayer who was previously
19    employed in Illinois by a related member of the taxpayer
20    and whose employment was shifted to the taxpayer after the
21    taxpayer entered into the agreement; or
22        (3) a child, grandchild, parent, or spouse, other than
23    a spouse who is legally separated from the individual, of
24    any individual who has a direct or an indirect ownership
25    interest of at least 5% in the profits, capital, or value
26    of the taxpayer.



SB2071- 4 -LRB100 11448 HLH 21884 b

1    Notwithstanding paragraph (1) above, an employee may be
2considered a new employee under the agreement if the employee
3performs a job that was previously performed by an employee who
5        (1) treated under the agreement as a new employee; and
6        (2) promoted by the taxpayer to another job.
7    An employee hired prior to the date of the Agreement who
8otherwise qualifies as a new employee may be considered a new
9employee for purposes of awarding a credit under an agreement.
11        (1) the applicant is in receipt of a letter from the
12    Department stating an intent to enter into a credit
13    agreement;
14        (2) that letter is issued by the Department not later
15    than 15 days after the effective date of this Act; and
16        (3) the employee was hired after the date the letter
17    was issued.
18    "Noncompliance date" means, in the case of a taxpayer that
19is not complying with the requirements of the agreement or the
20provisions of this Act, the day following the last date upon
21which the taxpayer was in compliance with the requirements of
22the agreement and the provisions of this Act, as determined by
23the Director under Section 50 of this Act.
24    "Pass-through entity" means an entity that is exempt from
25the tax under subsection (b) or (c) of Section 205 of the
26Illinois Income Tax Act.



SB2071- 5 -LRB100 11448 HLH 21884 b

1    "Professional Employer Organization" or "PEO" means an
2employee leasing company, as defined in Section 206.1(A)(2) of
3the Illinois Unemployment Insurance Act.
4    "Related member" means a person that, with respect to the
5taxpayer during any portion of the taxable year, is any one of
6the following:
7        (1) an individual stockholder, if the stockholder and
8    the members of the stockholder's family (as defined in
9    Section 318 of the Internal Revenue Code) own directly,
10    indirectly, beneficially, or constructively, in the
11    aggregate, at least 50% of the value of the taxpayer's
12    outstanding stock;
13        (2) a partnership, estate, or trust and any partner or
14    beneficiary, if the partnership, estate, or trust, and its
15    partners or beneficiaries own directly, indirectly,
16    beneficially, or constructively, in the aggregate, at
17    least 50% of the profits, capital, stock, or value of the
18    taxpayer;
19        (3) a corporation, and any party related to the
20    corporation in a manner that would require an attribution
21    of stock from the corporation to the party or from the
22    party to the corporation under the attribution rules of
23    Section 318 of the Internal Revenue Code, if the taxpayer
24    owns directly, indirectly, beneficially, or constructively
25    at least 50% of the value of the corporation's outstanding
26    stock;



SB2071- 6 -LRB100 11448 HLH 21884 b

1        (4) a corporation, and any party related to that
2    corporation in a manner that would require an attribution
3    of stock from the corporation to the party or from the
4    party to the corporation under the attribution rules of
5    Section 318 of the Internal Revenue Code, if the
6    corporation and all such related parties own in the
7    aggregate at least 50% of the profits, capital, stock, or
8    value of the taxpayer; and
9        (5) a person to or from whom there is attribution of
10    stock ownership in accordance with Section 1563(e) of the
11    Internal Revenue Code, except, for purposes of determining
12    whether a person is a related member under this paragraph,
13    20% shall be substituted for 5% wherever 5% appears in
14    Section 1563(e) of the Internal Revenue Code.
15    "Taxpayer" means an individual, corporation, partnership,
16or other entity that has any Illinois income tax liability.
17    Section 10. Powers of the Department. The Department, in
18addition to those powers granted under the Civil Administrative
19Code of Illinois, is granted and shall have all the powers
20necessary or convenient to carry out and effectuate the
21purposes and provisions of this Act, including, but not limited
22to, power and authority to:
23        (1) Promulgate procedures or regulations deemed
24    necessary and appropriate for the administration of the
25    programs; establish forms for applications, notifications,



SB2071- 7 -LRB100 11448 HLH 21884 b

1    contracts, or any other agreements; and accept
2    applications at any time during the year.
3        (2) Provide and assist taxpayers pursuant to the
4    provisions of this Act, and cooperate with taxpayers that
5    are parties to agreements to promote, foster, and support
6    economic development, capital investment, and job creation
7    within the State.
8        (3) Enter into agreements and memoranda of
9    understanding for participation of and engage in
10    cooperation with agencies of the federal government, units
11    of local government, universities, research foundations or
12    institutions, regional economic development corporations,
13    or other organizations in furtherance of the purposes of
14    this Act.
15        (4) Gather information and conduct inquiries, in the
16    manner and by the methods as it deems desirable, including
17    without limitation, gathering information with respect to
18    applicants for the purpose of making any designations or
19    certifications necessary or desirable in the furtherance
20    of the purposes of this Act.
21        (5) Establish, negotiate, and effectuate any term,
22    agreement or other document with any person necessary or
23    appropriate to accomplish the purposes of this Act; and to
24    consent, subject to the provisions of any agreement with
25    another party, to the modification or restructuring of any
26    agreement to which the Department is a party.



SB2071- 8 -LRB100 11448 HLH 21884 b

1        (6) Fix, determine, charge, and collect any premiums,
2    fees, charges, costs, and expenses from Applicants,
3    including, without limitation, any application fees,
4    commitment fees, program fees, financing charges, or
5    publication fees as deemed appropriate to pay expenses
6    necessary or incident to the administration, staffing, or
7    operation in connection with the Department's activities
8    under this Act, or for preparation, implementation, and
9    enforcement of the terms of an agreement, or for
10    consultation, advisory and legal fees, and other costs;
11    however, all fees and expenses incident thereto shall be
12    the responsibility of the applicant.
13        (7) Provide for sufficient personnel to permit
14    administration, staffing, operation, and related support
15    required to adequately discharge its duties and
16    responsibilities described in this Act from funds made
17    available through charges to applicants or from funds as
18    may be appropriated by the General Assembly for the
19    administration of this Act.
20        (8) Require applicants, upon written request, to issue
21    any necessary authorization to the appropriate federal,
22    State, or local authority for the release of information
23    concerning a project being considered under the provisions
24    of this Act, with the information requested to include, but
25    not be limited to, financial reports, returns, or records
26    relating to the taxpayer or its project.



SB2071- 9 -LRB100 11448 HLH 21884 b

1        (9) Require that a taxpayer shall at all times keep
2    proper books of record and account in accordance with
3    generally accepted accounting principles consistently
4    applied, with the books, records, or papers related to the
5    agreement in the custody or control of the taxpayer open
6    for reasonable Department inspection and audits, and
7    including, without limitation, the making of copies of the
8    books, records, or papers, and the inspection or appraisal
9    of any of the taxpayer or project assets.
10        (10) Take whatever actions are necessary or
11    appropriate to protect the State's interest in the event of
12    bankruptcy, default, foreclosure, or noncompliance with
13    the terms and conditions of financial assistance or
14    participation required under this Act, including the power
15    to sell, dispose, lease, or rent, upon terms and conditions
16    determined by the Director to be appropriate, real or
17    personal property that the Department may receive as a
18    result of these actions.
19    Section 15. Tax credit awards. Subject to the conditions
20set forth in this Act, a taxpayer is entitled to a credit
21against taxes or, as to a pass-through entity, a payment
22towards taxes imposed pursuant to subsections (a) and (b) of
23Section 201 of the Illinois Income Tax Act if the taxpayer is
24awarded a credit by the Department under this Act for that
25taxable year.



SB2071- 10 -LRB100 11448 HLH 21884 b

1    The Department shall make credit awards under this Act to
2foster job creation in Illinois.
3    A person that proposes a project to create new jobs in
4Illinois must enter into an agreement with the Department for
5the credit under this Act.
6    The credit shall be claimed for the taxable years specified
7in the agreement.
8    The credit shall not exceed 50% of the incremental income
9tax attributable to the project that is the subject of the
11    Nothing herein shall prohibit a tax credit award to an
12applicant that uses a PEO if all other award criteria are
14    Credits awarded under this Act are transferable through the
15Department at the discretion of the Director within 2 years
16after the credit is awarded. Credits may be transferred only to
17a single taxpayer or to common entities within a single
18ownership structure and may not be transferred more than once.
19The Department shall maintain an online information portal
20where entities anticipating the purchase or sale of credits
21shall register their intent to do so. Any taxpayer transferring
22a credit under this Section shall pay a uniform fee to the
23Department that the Department shall set by rule, and that
24amount shall be invested consistent with the clawback
25provisions set forth in Section 43 of this Act.
26    For partners, shareholders of Subchapter S corporations,



SB2071- 11 -LRB100 11448 HLH 21884 b

1and owners of limited liability companies, if the liability
2company is treated as a partnership for purposes of federal and
3State income taxation, the credit under this Act shall be
4determined in accordance with the determination of income and
5distributive share of income under Sections 702 and 704 and
6Subchapter S of the Internal Revenue Code or as allowed under
7the agreement with the Department.
8    A pass-through entity that has been awarded a credit under
9this Act, or its shareholders or partners, may treat some or
10all of the credit awarded pursuant to this Act as a tax payment
11for purposes of the Illinois Income Tax Act. For purposes of
12this Section, "tax payment" means a payment as described in
13Article 6 or Article 8 of the Illinois Income Tax Act or a
14composite payment made by a pass-through entity on behalf of
15any of its shareholders or partners to satisfy such
16shareholders' or partners' taxes imposed pursuant to
17subsections (a) and (b) of Section 201 of the Illinois Income
18Tax Act. In no event shall the amount of the award credited
19pursuant to this Act exceed the Illinois income tax liability
20of the pass-through entity or its shareholders or partners for
21the taxable year.
22    Section 20. Application for a project to create new jobs.
23    (a) Any taxpayer proposing a project located or planned to
24be located in Illinois may request consideration for
25designation of its project, by formal application to the



SB2071- 12 -LRB100 11448 HLH 21884 b

1Department in which the applicant states its intent to meet the
2criteria set forth in this Section.
3    (b) The applicant's project must: (1) employ a number of
4new employees equal to the lesser of (A) 10% of the number of
5full-time employees employed by the applicant world-wide on the
6date the application is filed with the Department or (B) 50 new
7employees; and (2) involve a capital investment of at least
8$2,500,000 at a project location in the State, except that, if
9the applicant employs fewer than 100 full-time employees on the
10date the application is filed with the Department, then the
11applicant's capital investment may be less than $2,500,000 if
12the capital investment is approved by the Department at the
13discretion of the Director at the time of the application.
14    (c) The Department may enter into an agreement with the
15applicant if the application is accepted and approved by the
16Department as provided in Section 22 of this Act.
17    Section 22. Review of Applications. In making its
18determination that an application for a credit should or should
19not be accepted, which shall occur within a reasonable time
20frame as determined by the nature of the application, the
21Department shall consider all of the following, as well as any
22other circumstances it may deem appropriate:
23        (1) The applicant's project intends, as required by
24    subsection (b) of Section 20 of this Act to make the
25    required investment in the State and intends to hire the



SB2071- 13 -LRB100 11448 HLH 21884 b

1    required number of new employees in Illinois as a result of
2    that project.
3        (2) The applicant's project is economically sound and
4    will benefit the people of Illinois by increasing
5    opportunities for employment and strengthen the economy of
6    Illinois.
7        (3) Evidence the receipt of the credit is essential to
8    the applicant's decision to create new jobs in the State,
9    such as the magnitude of the cost differential between
10    Illinois and a competing State.
11        (4) The political subdivisions affected by the project
12    have committed local incentives with respect to the
13    project, considering local ability to assist.
14        (5) Awarding the credit will result in an overall
15    positive fiscal impact to the State.
16        (6) The credit is not prohibited by Section 25 of this
17    Act.
18    Section 25. Relocation of jobs within Illinois; baseline
19employment. A taxpayer is not entitled to claim the credit
20provided by this Act with respect to any jobs that the taxpayer
21relocates from one site in Illinois to another site in
22Illinois. In addition, a taxpayer is not entitled to claim a
23credit under this Act for a taxable year if the average number
24of full-time employees employed by the taxpayer in this State
25during that taxable year is less than the average number of



SB2071- 14 -LRB100 11448 HLH 21884 b

1full-time employees employed by the taxpayer in this State as
2of the date of the application. If the project is a qualifying
3project certified under the Corporate Headquarters Relocation
4Act, however, then the taxpayer is not subject to the
5requirements of this Section but is nevertheless considered an
6applicant for purposes of this Act. Moreover, any full-time
7employee of an eligible business relocated to Illinois in
8connection with that qualifying project is deemed to be a new
9employee for purposes of this Act. Determinations under this
10Section shall be made by the Department and at the Department's
12    Section 30. Determination of amount of the credit. The
13credit may be stated as a percentage of the incremental income
14tax attributable to the applicant's project and may include a
15fixed dollar limitation. In determining the amount of the
16credit that should be awarded, the Department may take into
17consideration, the following factors:
18        (1) The number and location of jobs created in relation
19    to the economy of the county where the projected investment
20    is to occur.
21        (2) The potential impact on the economy of Illinois.
22        (3) The magnitude of the cost differential between
23    Illinois and the competing state.
24        (4) The incremental payroll attributable to the
25    project.



SB2071- 15 -LRB100 11448 HLH 21884 b

1        (5) The capital investment attributable to the
2    project.
3        (6) The amount of the average wage and benefits paid by
4    the applicant in relation to the wage and benefits of the
5    area of the project.
6        (7) The costs to Illinois and the affected political
7    subdivisions with respect to the project.
8        (8) The financial assistance that is otherwise
9    provided by Illinois and the affected political
10    subdivisions.
11        (9) The credit may not exceed the amount of taxes
12    imposed pursuant to subsections (a) and (b) of Section 201
13    of the Illinois Income Tax Act.
14        (10) The total amount of the credit allowed during all
15    tax years may not exceed the aggregate amount of costs
16    incurred by the taxpayer during all prior tax years for the
17    following items, to the extent provided in the agreement:
18    (a) capital investment, including, but not limited to,
19    equipment, buildings, or land; (b) infrastructure
20    development; (c) debt service, except refinancing of
21    current debt; (d) research and development; (e) job
22    training and education; (f) lease costs; or (g) relocation
23    costs.
24    Section 35. Duration of the credit. The duration of the
25credit may not exceed 10 taxable years, except that, if the



SB2071- 16 -LRB100 11448 HLH 21884 b

1project is located in a census tract with an unemployment rate
2that is greater than 150% of the State unemployment rate or a
3poverty rate greater than 150% of the State poverty rate at the
4time the application is filed with the Department, then the
5duration of the credit may not exceed 15 taxable years. Any
6credit that is unused in the year the credit is computed may be
7carried forward and applied to the tax liability of the 5
8taxable years following the excess credit year. The credit
9shall be applied to the earliest year for which there is a tax
10liability. If there are credits from more than one tax year
11that are available to offset a liability, the earlier credit
12shall be applied first.
13    Section 40. Contents of agreements with applicants. The
14Department shall enter into an agreement with an applicant that
15is awarded a credit under this Act. The Department may enter
16into only one agreement with a taxpayer with respect to a
17specific project or location. The agreement must include all of
18the following:
19        (1) A detailed description of the project that is the
20    subject of the agreement, including the location and amount
21    of the investment and jobs created.
22        (2) The duration of the credit and the first taxable
23    year for which the credit may be claimed.
24        (3) The credit amount that will be allowed for each
25    taxable year.



SB2071- 17 -LRB100 11448 HLH 21884 b

1        (4) A requirement that the taxpayer shall maintain
2    operations at the project location that shall be stated as
3    a minimum number of years not to exceed 10.
4        (5) A specific method for determining the number of new
5    employees employed during a taxable year.
6        (6) A requirement that the taxpayer shall annually
7    report to the Department the number of new employees, the
8    incremental income tax withheld in connection with the new
9    employees, and any other information the Department needs
10    to fulfill the Department's responsibilities duties under
11    this Act.
12        (7) A requirement that the Department is authorized to
13    verify with the appropriate State agencies the amounts
14    reported under paragraph (6), and after doing so shall
15    issue a certificate to the taxpayer stating that the
16    amounts have been verified.
17        (8) A requirement that the taxpayer shall provide
18    written notification to the Department not more than 30
19    days after the taxpayer makes or receives a proposal that
20    would transfer the taxpayer's State tax liability
21    obligations to a successor taxpayer.
22        (9) A detailed description of the number of new
23    employees to be hired, and the occupation and payroll of
24    the full-time jobs to be created as a result of the
25    project.
26        (10) The minimum investment the business enterprise



SB2071- 18 -LRB100 11448 HLH 21884 b

1    will make in capital improvements, the time period for
2    placing the property in service, and the designated
3    location in Illinois for the investment.
4        (11) A requirement that the taxpayer shall provide
5    written notification to the Department not more than 30
6    days after the taxpayer determines that the minimum job
7    creation, employment payroll, or investment no longer is
8    being or will be achieved or maintained as set forth in the
9    terms and conditions of the agreement.
10        (12) A provision specifying that, if the taxpayer
11    ceases principal operations with the intent to shut down
12    the project in the State permanently during the term of the
13    agreement, then the entire credit amount awarded to the
14    taxpayer prior to the date the taxpayer ceases principal
15    operations shall be returned to the Department and shall be
16    reallocated to the local workforce investment area in which
17    the project was located as provided in Section 43 of this
18    Act.
19        (13) A provision that if the total number of new
20    employees falls below a specified level, the allowance of
21    the credit shall be suspended until the number of new
22    employees equals or exceeds that specified level.
23        (14) Any other performance conditions or contract
24    provisions as the Department determines are appropriate.
25    Section 43. Taxpayer ceases principal operations. If the



SB2071- 19 -LRB100 11448 HLH 21884 b

1taxpayer ceases principal operations at the project location
2during the term of the agreement with the intent to shut down
3the project in the State permanently, then the entire credit
4amount awarded to the taxpayer prior to the date the taxpayer
5ceases principal operations shall be returned to the Department
6and shall be reallocated to the local workforce investment area
7in which the project was located for the purposes of workforce
8development, expanded opportunities for unemployed persons,
9and expanded opportunities for women and minorities in the
11    Section 45. Certificate of verification; submission to the
12Department of Revenue. A taxpayer claiming a credit under this
13Act shall submit to the Department of Revenue a copy of the
14certificate of verification under this Act for the taxable
15year. However, failure to submit a copy of the certificate with
16the taxpayer's tax return shall not invalidate a claim for a
18    For a taxpayer to be eligible for a certificate of
19verification, the taxpayer shall provide proof as required by
20the Department prior to the end of each calendar year,
21including, but not limited to, attestation by the Taxpayer that
22the project continues to meet the terms of the agreement.
23    Section 47. Pass-through entity.
24    (a) The shareholders or partners of a taxpayer that is a



SB2071- 20 -LRB100 11448 HLH 21884 b

1pass-through entity shall be entitled to the credit allowed
2under the agreement.
3    (b) The credit provided under subsection (a) is in addition
4to any credit to which a shareholder or partner is otherwise
5entitled under a separate agreement under this Act. A
6pass-through entity and a shareholder or partner of the
7pass-through entity may not claim more than one credit under
8the same agreement.
9    Section 50. Noncompliance; notice; assessment. If the
10Department determines that a taxpayer who has received a credit
11under this Act is not complying with the requirements of the
12agreement or all of the provisions of this Act, the Department
13shall provide notice to the taxpayer of the alleged
14noncompliance, and allow the taxpayer a hearing under the
15provisions of the Illinois Administrative Procedure Act. If,
16after such notice and any hearing, the Department determines
17that a noncompliance exists, the Department shall issue to the
18Department of Revenue notice to that effect, stating the
19noncompliance date.
20    Section 55. Rules. The Department may adopt rules under the
21Illinois Administrative Procedure Act necessary to implement
22this Act.
23    Section 60. Annual report. On or before July 1 each year,



SB2071- 21 -LRB100 11448 HLH 21884 b

1the Department shall submit a report to the Governor and the
2General Assembly on the tax credit program under this Act.
3Subject to the limitations of Section 70 of this Act, the
4report shall include information on the number of agreements
5that were entered into under this Act during the preceding
6calendar year, a description of the project that is the subject
7of each agreement, an update on the status of projects under
8agreements entered into before the preceding calendar year, and
9the sum of the credits awarded under this Act.
10    Section 65. Evaluation of tax credit program. On a biennial
11basis, the Department shall evaluate the tax credit program
12under this Act. Subject to the limitations of Section 70 of
13this Act, the evaluation shall include an assessment of the
14effectiveness of the program in creating new jobs in Illinois
15and of the revenue impact of the program, and may include a
16review of the practices and experiences of other states with
17similar programs. The Department shall submit a report on the
18evaluation to the Governor and the General Assembly after June
1930 and before November 1 in each odd-numbered year.
20    Section 70. Program terms and conditions.
21    (a) Any documentary materials or data made available or
22received by any agent or employee of the Department shall be
23deemed confidential and shall not be deemed public records to
24the extent that the materials or data consists of trade



SB2071- 22 -LRB100 11448 HLH 21884 b

1secrets, commercial or financial information regarding the
2operation of the business conducted by the applicant for or
3recipient of any tax credit under this Act, or any information
4regarding the competitive position of a business in a
5particular field of endeavor.
6    (b) Nothing in this Act shall be construed as creating any
7rights in any applicant to enter into an agreement or in any
8person to challenge the terms of any agreement.
9    Section 80. The Illinois Income Tax Act is amended by
10adding Section 224 as follows:
11    (35 ILCS 5/224 new)
12    Sec. 224. Transforming, Helping, and Reviving Illinois'
13Versatile Economy (THRIVE) Job Creation Tax Credit. For taxable
14years beginning on or after January 1, 2017, a taxpayer who has
15been granted a credit under the Transforming, Helping, and
16Reviving Illinois' Versatile Economy (THRIVE) Job Creation Tax
17Credit Act is entitled to a credit against the taxes imposed
18under subsections (a) and (b) of Section 201 as provided in
19that Act.
20    If the Taxpayer is a partnership or Subchapter S
21corporation, the credit is allowed to the partners or
22shareholders in accordance with the determination of income and
23distributive share of income under Sections 702 and 704 and
24Subchapter S of the Internal Revenue Code.



SB2071- 23 -LRB100 11448 HLH 21884 b

1    A transfer of this credit may be made by the taxpayer
2earning the credit within 2 years after the credit is awarded
3in accordance with rules adopted by the Department of Commerce
4and Economic Opportunity.
5    The Department, in cooperation with the Department of
6Commerce and Economic Opportunity, must adopt rules to enforce
7and administer the provisions of this Section. This Section is
8exempt from the provisions of Section 250 of this Act.
9    The credit may not be carried back. If the amount of the
10credit exceeds the tax liability for the year, the excess may
11be carried forward and applied to the tax liability of the 5
12taxable years following the excess credit year. The credit
13shall be applied to the earliest year for which there is a tax
14liability. If there are credits from more than one tax year
15that are available to offset a liability, the earlier credit
16shall be applied first. In no event shall a credit under this
17Section reduce the taxpayer's liability to less than zero.
18    Section 99. Effective date. This Act takes effect upon
19becoming law.