State of Illinois
90th General Assembly
Legislation

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90_SB1229

      20 ILCS 205/40.30 new
      35 ILCS 5/211 new
          Amends the Civil Administrative Code of Illinois and  the
      Illinois  Income  Tax  Act.  Creates an income tax credit for
      corporations in an amount equal to 5% of the amounts spent by
      the corporation during  the  taxable  year  on  biodegradable
      materials  made  of  corn or soybean products.  Provides that
      the credit may be carried forward for 5 years.  Provides that
      in no event shall the credit  reduce  the  corporation's  tax
      liability to below zero.  Provides that the credit applies to
      tax years beginning on or after January 1, 1998.  Sunsets the
      credit after 5 years. Requires the Department of Agriculture,
      in  cooperation  with the Department of Revenue, to study the
      effect of the credit  on  the  corn-based  and  soybean-based
      biodegradable  materials  markets  at  the  end of the 5-year
      period.  Effective immediately.
                                                     LRB9008347KDks
                                               LRB9008347KDks
 1        AN ACT in relation to taxes, amending named Acts.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  5.  The Civil Administrative Code of Illinois is
 5    amended by adding Section 40.30 as follows:
 6        (20 ILCS 205/40.30 new)
 7        Sec.  40.30.  To  conduct a study in 2003, in cooperation
 8    with the Illinois Department of Revenue, on  the  effects  on
 9    the  corn-based  and  soybean-based  biodegradable  materials
10    markets resulting from the Biodegradable Materials Tax Credit
11    provided  in Section 211 of the Illinois Income Tax Act.  The
12    Department shall report its findings to the Illinois  General
13    Assembly by February 1, 2004.
14        Section  10.  The  Illinois  Income Tax Act is amended by
15    adding Section 211 as follows:
16        (35 ILCS 5/211 new)
17        Sec. 211.  Biodegradable Materials Tax Credit.
18        (a)  For tax years beginning on or after January 1,  1998
19    and ending before December 30, 2003, each corporation subject
20    to  this  Act  shall  be entitled to a credit against the tax
21    imposed by subsections (a) and  (b)  of  Section  201  in  an
22    amount equal to 5% of the amount expended by a corporation on
23    biodegradable  materials  made  of  corn or soybean products,
24    including,  but  not  limited  to,  corn-based  biodegradable
25    packing peanuts or soybean-based  building  materials.    The
26    Department  of  Agriculture  shall,  by  rule, determine what
27    materials qualify as biodegradable materials for purposes  of
28    this  Section.   In  no instance shall the credit provided in
29    this Section reduce the corporation's  liability  under  this
                            -2-                LRB9008347KDks
 1    Act below zero.
 2        (b)  If   the  amount  of  the  credit  exceeds  the  tax
 3    liability for the year, the excess may be carried forward and
 4    applied to the tax liability of the 5 taxable years following
 5    the excess credit year.  The credit shall be applied  to  the
 6    earliest  year  for which there is a tax liability.  If there
 7    are credits from more than one tax year that are available to
 8    offset a liability,  the  earlier  credit  shall  be  applied
 9    first.
10        Section  99.  Effective date.  This Act takes effect upon
11    becoming law.

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