Full Text of SB2084 102nd General Assembly
SB2084 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB2084 Introduced 2/26/2021, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Provides that the Economic Development for a Growing Economy Tax Credit may be carried forward for 15 (currently, 5) taxable years following the excess credit
year. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 211 as follows:
| 6 | | (35 ILCS 5/211)
| 7 | | Sec. 211. Economic Development for a Growing Economy Tax | 8 | | Credit. For tax years beginning on or after January 1, 1999, a | 9 | | Taxpayer
who has entered into an Agreement (including a New | 10 | | Construction EDGE Agreement) under the Economic Development | 11 | | for a Growing
Economy Tax Credit Act is entitled to a credit | 12 | | against the taxes imposed
under subsections (a) and (b) of | 13 | | Section 201 of this Act in an amount to be
determined in the | 14 | | Agreement. If the Taxpayer is a partnership or Subchapter
S | 15 | | corporation, the credit shall be allowed to the partners or | 16 | | shareholders in
accordance with the determination of income | 17 | | and distributive share of income
under Sections 702 and 704 | 18 | | and subchapter S of the Internal Revenue Code.
The Department, | 19 | | in cooperation with the Department
of Commerce and Economic | 20 | | Opportunity, shall prescribe rules to enforce and
administer | 21 | | the provisions of this Section. This Section is
exempt from | 22 | | the provisions of Section 250 of this Act.
| 23 | | The credit shall be subject to the conditions set forth in
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| 1 | | the Agreement and the following limitations:
| 2 | | (1) The tax credit shall not exceed the Incremental | 3 | | Income Tax
(as defined in Section 5-5 of the Economic | 4 | | Development for a Growing Economy
Tax Credit Act) with | 5 | | respect to the project; additionally, the New Construction | 6 | | EDGE Credit shall not exceed the New Construction EDGE | 7 | | Incremental Income Tax (as defined in Section 5-5 of the | 8 | | Economic Development for a Growing Economy Tax Credit | 9 | | Act).
| 10 | | (2) The amount of the credit allowed during the tax | 11 | | year plus the sum of
all amounts allowed in prior years | 12 | | shall not exceed 100% of the aggregate
amount expended by | 13 | | the Taxpayer during all prior tax years on approved costs
| 14 | | defined by Agreement.
| 15 | | (3) The amount of the credit shall be determined on an | 16 | | annual
basis. Except as applied in a carryover year | 17 | | pursuant to Section 211(4) of
this Act, the credit may not | 18 | | be applied against any State
income tax liability in more | 19 | | than 10 taxable
years; provided, however, that (i) an | 20 | | eligible business certified by the
Department of Commerce | 21 | | and Economic Opportunity under the Corporate Headquarters
| 22 | | Relocation Act may not
apply the credit against any of its | 23 | | State income tax liability in more than 15
taxable years
| 24 | | and (ii) credits allowed to that eligible business are | 25 | | subject to the
conditions
and requirements set forth in | 26 | | Sections 5-35 and 5-45 of the Economic
Development for a |
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| 1 | | Growing Economy Tax Credit Act and Section 5-51 as | 2 | | applicable to New Construction EDGE Credits.
| 3 | | (4) The credit may not exceed the amount of taxes | 4 | | imposed pursuant to
subsections (a) and (b) of Section 201 | 5 | | of this Act. Any credit
that is unused in the year the | 6 | | credit is computed may be carried forward and
applied to | 7 | | the tax liability of the 15 5 taxable years following the | 8 | | excess credit
year. The credit shall be applied to the | 9 | | earliest year for which there is a
tax liability. If there | 10 | | are credits from more than one tax year that are
available | 11 | | to offset a liability, the earlier credit shall be applied | 12 | | first.
| 13 | | (5) No credit shall be allowed with respect to any | 14 | | Agreement for any
taxable year ending after the | 15 | | Noncompliance Date. Upon receiving notification
by the | 16 | | Department of Commerce and Economic Opportunity of the | 17 | | noncompliance of a
Taxpayer with an Agreement, the | 18 | | Department shall notify the Taxpayer that no
credit is | 19 | | allowed with respect to that Agreement for any taxable | 20 | | year ending
after the Noncompliance Date, as stated in | 21 | | such notification. If any credit
has been allowed with | 22 | | respect to an Agreement for a taxable year ending after
| 23 | | the Noncompliance Date for that Agreement, any refund paid | 24 | | to the
Taxpayer for that taxable year shall, to the extent | 25 | | of that credit allowed, be
an erroneous refund within the | 26 | | meaning of Section 912 of this Act.
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| 1 | | (6) For purposes of this Section, the terms | 2 | | "Agreement", "Incremental
Income Tax", "New Construction | 3 | | EDGE Agreement", "New Construction EDGE Credit", "New | 4 | | Construction EDGE Incremental Income Tax", and | 5 | | "Noncompliance Date" have the same meaning as when used
in | 6 | | the Economic Development for a Growing Economy Tax Credit | 7 | | Act.
| 8 | | (Source: P.A. 101-9, eff. 6-5-19.)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
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