Illinois General Assembly - Full Text of SB2084
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Full Text of SB2084  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/26/2021, by Sen. Cristina Castro


35 ILCS 5/211

    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.

LRB102 13412 HLH 18756 b






SB2084LRB102 13412 HLH 18756 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 5. The Illinois Income Tax Act is amended by
5changing Section 211 as follows:
6    (35 ILCS 5/211)
7    Sec. 211. Economic Development for a Growing Economy Tax
8Credit. For tax years beginning on or after January 1, 1999, a
9Taxpayer who has entered into an Agreement (including a New
10Construction EDGE Agreement) under the Economic Development
11for a Growing Economy Tax Credit Act is entitled to a credit
12against the taxes imposed under subsections (a) and (b) of
13Section 201 of this Act in an amount to be determined in the
14Agreement. If the Taxpayer is a partnership or Subchapter S
15corporation, the credit shall be allowed to the partners or
16shareholders in accordance with the determination of income
17and distributive share of income under Sections 702 and 704
18and subchapter S of the Internal Revenue Code. The Department,
19in cooperation with the Department of Commerce and Economic
20Opportunity, shall prescribe rules to enforce and administer
21the provisions of this Section. This Section is exempt from
22the provisions of Section 250 of this Act.
23    The credit shall be subject to the conditions set forth in



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1the 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
10becoming law.