093_SB1535

 
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 1        AN ACT concerning rural technology enterprise zones.

 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 Enterprise Zone Act.

 6        Section  5.  Zones  established.  The  Illinois  Commerce
 7    Commission may designate rural areas in the  State  as  rural
 8    technology  enterprise  zones.  In designating the zones, the
 9    Commission shall specify by rule, based upon  the  needs  and
10    assessment  inventory, the specific technology infrastructure
11    needs of each rural technology enterprise zone and the  types
12    of  investments  that  will  meet those needs. For each rural
13    technology enterprise zone designated under this Section, the
14    Commission shall further specify all of the following:
15             (1)  The  boundaries   of   the   rural   technology
16        enterprise zone.
17             (2)  The  potential  for  increasing Internet access
18        within the rural technology enterprise zone.
19             (3)  The specific technology infrastructure required
20        to provide adequate Internet access within the  zone  and
21        any unique needs or characteristics of the zone.
22             (4)  The    specific   investments   in   technology
23        infrastructure that will qualify for income  tax  credits
24        in  the zone under Section 213 of the Illinois Income Tax
25        Act.
26             (5)  Any  other  information  the  Commission  deems
27        pertinent.

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

10        Section  15.  Rules.  The  Illinois  Commerce  Commission
11    shall adopt any rules necessary  for  the  administration  of
12    this Act.

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

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

20     Section  99.  Effective  date.  This  Act  takes effect upon
21    becoming law.