093_SB1535sam001

 










                                     LRB093 10861 SJM 14420 a

 1                    AMENDMENT TO SENATE BILL 1535

 2        AMENDMENT NO.     .  Amend Senate Bill 1535 by  replacing
 3    the title with the following:
 4        "AN ACT concerning rural technology."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 1.  Short title. This Act may be  cited  as  the
 8    Rural Technology Development Zone Act.

 9        Section 5.  Zones established.  Subject to appropriation,
10    the  Department  of Commerce and Community Affairs (DCCA) may
11    implement a pilot program to designate 3 rural areas  in  the
12    State  as  rural  technology  development  zones.  The  pilot
13    programs  shall be in areas that are underserved with respect
14    to technology  development.  DCCA  shall  determine  which  3
15    underserved   areas   shall   be   designated  as  technology
16    development zones in consultation with the Illinois  Commerce
17    Commission.   In designating the zones, DCCA shall specify by
18    rule, based upon the  needs  and  assessment  inventory,  the
19    specific   technology  infrastructure  needs  of  each  rural
20    technology development zone and the types of investments that
21    will meet those needs. For each rural technology  development
 
                            -2-      LRB093 10861 SJM 14420 a
 1    zone  designated  under  this  Section,  DCCA  shall  further
 2    specify all of the following:
 3             (1)  The   boundaries   of   the   rural  technology
 4        development zone.
 5             (2)  The potential for  increasing  Internet  access
 6        within the rural technology development zone.
 7             (3)  The specific technology infrastructure required
 8        to  provide  adequate Internet access within the zone and
 9        any unique needs or characteristics of the zone.
10             (4)  The   specific   investments   in    technology
11        infrastructure  that  will qualify for income tax credits
12        in the zone under Section 213 of the Illinois Income  Tax
13        Act.
14             (5)  Any other information DCCA deems pertinent.

15        Section  10.  Report  to the General Assembly. DCCA shall
16    submit  a  report  to  the  General  Assembly  on  or  before
17    September  1,  2005  outlining  the  progress,  if  any,   in
18    improving Internet access within rural technology development
19    zones.  The  report shall include, but is not limited to, the
20    following information:
21             (1)  An analysis of the changes made  in  technology
22        infrastructure  in the rural technology development zones
23        to improve Internet  access  and  the  effects  of  those
24        changes.
25             (2)  Any  available statistics concerning the amount
26        of  investments  made  in  rural  technology  development
27        zones.

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

30        Section  90.  The  Illinois  Income Tax Act is amended by
31    adding Section 213 as follows:
 
                            -3-      LRB093 10861 SJM 14420 a
 1        (35 ILCS 5/213 new)
 2        Sec. 213.  Rural technology development zone tax credit.
 3        (a)  For taxable years beginning on or after  January  1,
 4    2004 and before January 1, 2010, each taxpayer is entitled to
 5    a  credit  against the tax imposed by subsections (a) and (b)
 6    of Section 201 in an amount equal to 10% of the amount of the
 7    total investment made during the taxable year by the taxpayer
 8    in technology infrastructure  required  to  provide  Internet
 9    access in rural technology development zones. This credit may
10    be   claimed   only   for  specific  capital  investments  in
11    technology infrastructure that will qualify  for  income  tax
12    credits   in   the  development  zone  as  specified  by  the
13    Department of Commerce and Community Affairs under  item  (4)
14    of  Section  5  of the Rural Technology Development Zone Act.
15    The credit claimed by a taxpayer under this Section shall not
16    exceed $100,000 in any one taxable year.
17        (b)  If the credit allowed under this Section exceeds the
18    income taxes otherwise due  on  the  claimant's  income,  the
19    amount  of  the  credit  not used as an offset against income
20    taxes  may  be  carried  forward  as  a  tax  credit  against
21    subsequent years' income tax liability for a  period  not  to
22    exceed  10  years  and shall be applied first to the earliest
23    years possible.
24        (c)  The credit awarded under this Section is limited  as
25    follows:
26             (1)  The  credit  claimed  shall not exceed $100,000
27        per year. Qualified investments in excess  of  $1,000,000
28        in  any  tax  year  cannot  earn  a  credit and cannot be
29        carried forward.
30             (2)  A partnership, S corporation, or other  similar
31        pass-through  entity  or  a  disregarded  entity may pass
32        through up to $100,000 in total credit to  its  partners,
33        shareholders,  or  members. Each partner, shareholder, or
34        member's portion of the credit is determined according to
 
                            -4-      LRB093 10861 SJM 14420 a
 1        the ratio in which profits or losses of  the  entity  are
 2        allocated.

 3        Section  99.   Effective date. This Act takes effect upon
 4    becoming law.".