101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4902
 
Introduced 2/18/2020, by Rep. Joyce Mason
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/232 new

     Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to any investment made by the taxpayer during the taxable year for the installation or operation of an anaerobic digester. Effective immediately.
  


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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
HB4902LRB101 17231 HLH 66635 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 adding 
5Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Anaerobic digester credit.
8    (a) For taxable years ending on or after December 31, 2020, 
9each taxpayer is entitled to a credit against the tax imposed 
10by subsections (a) and (b) of Section 201 in an amount equal to 
11any investment made by the taxpayer during the taxable year for 
12the installation or operation of an anaerobic digester. 
13    (b) In no event shall a credit under this Section reduce 
14the taxpayer's liability to less than zero. If the amount of 
15the credit exceeds the tax liability for the year, the excess 
16may be carried forward and applied to the tax liability of the 
175 taxable years following the excess credit year. The tax 
18credit shall be applied to the earliest year for which there is 
19a tax liability. If there are credits for more than one year 
20that are available to offset a liability, the earlier credit 
21shall be applied first. 
22    (c) For partners, shareholders of Subchapter S 
23corporations, and members of limited liability companies, if 
 
 
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1the liability company is treated as a partnership for purposes 
2of federal and State income taxation, there shall be allowed a 
3credit under this Section to be determined in accordance with 
4the determination of income and distributive share of income 
5under Sections 702 and 704 and Subchapter S of the Internal 
6Revenue Code. 
7    (d) As used in this Section an "anaerobic digester" is a 
8sealed environment or facility where organic food waste is 
9broken down to produce methane and carbon dioxide for use as a 
10renewable energy source. 
11    (e) This Section is exempt from the provisions of Section 
12250. 
 
 
13    Section 99. Effective date. This Act takes effect upon 
14becoming law.