HB3091 102ND GENERAL ASSEMBLY

LRB102 14209 HLH 19561 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3091

Introduced 2/19/2021, by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who open and operate a supermarket or grocery store in a food desert community designated by the Department of Commerce and Economic Opportunity. Provides that the credit shall be in an amount equal to the total amount the taxpayer is assessed in property taxes for the location at which the supermarket or grocery store is located during the full taxable year that the supermarket or grocery store is open for business to the public. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Food desert elimination credit.

(a) By July 1, 2021, the Department of Commerce and Economic Opportunity shall designate not more than 75 separate geographic areas throughout the State as food desert communities. The Department of Commerce and Economic Opportunity shall develop criteria for the designation of food desert communities, but each separate food desert community shall consist of a distinct geographic area with a single defined border. The criteria shall, at a minimum, incorporate analysis of municipal or census tract population size and population density, municipal or census tract poverty statistics, food desert information from the United States Department of Agriculture's Economic Research Service, and healthier food retail tract information from the federal Centers for Disease Control and Prevention.

(b) For taxable years beginning on and after January 1, 2022 and beginning prior to January 1, 2025, the first taxpayer to open and operate a supermarket or grocery store in a food desert community on or after the date the food desert community is established under subsection (a) is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 in an amount equal to the total amount the taxpayer is assessed in property taxes for the location at which the supermarket or grocery store is located during the full taxable year that the supermarket or grocery store is open for business to the public.

(c) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset liability, the earlier credit shall be applied first.

(d) For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for the purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(e) As used in this Section:

"Food desert community" means a physically contiguous area in the State in which residents have limited access to nutritious foods, such as fresh fruits and vegetables, through supermarkets and grocery stores.

"Supermarket or grocery store" means a retail facility of at least 18,000 square feet, of which at least 90 percent is occupied by a full-service supermarket or grocery store.

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