103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3089

 

Introduced 2/17/2023, by Rep. Abdelnasser Rashid

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/240 new

    Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2023, a taxpayer shall be allowed a credit in an amount equal to 50% of the cost of any qualified electric bicycle placed in service by the taxpayer during the taxable year. Provides that the total credit allowed to a taxpayer may not exceed $1,000 for all taxable years. Provides that, to claim the credit, the taxpayer must apply to the Department of Revenue for a certificate of credit in the form and manner required by the Department by rule. Provides that no later than 3 years after the effective date of the amendatory Act, the Department shall report to the Governor and to the General Assembly the number of tax credit certificates awarded and the aggregate dollar amount of the tax credit certificates allowed. Effective immediately.


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A BILL FOR

 

HB3089LRB103 30029 SPS 56450 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
5adding Section 240 as follows:
 
6    (35 ILCS 5/240 new)
7    Sec. 240. Electric bicycle credit.
8    (a) For taxable years beginning on or after January 1,
92023, a taxpayer shall be allowed a credit against the tax
10imposed by subsections (a) and (b) of Section 201 in an amount
11equal to 50% of the cost of any qualified electric bicycle
12placed in service by the taxpayer during the taxable year. The
13total credit allowed to a taxpayer may not exceed $1,000 for
14all taxable years. To claim the credit, the taxpayer must
15apply to the Department of Revenue for a certificate of credit
16in the form and manner required by the Department of Revenue by
17rule. If granted, the taxpayer shall attach a copy of the
18certificate of credit to his or her Illinois income tax return
19for the taxable year.
20    (b) In no event shall a credit under this Section reduce
21the taxpayer's liability to less than zero. If the amount of
22the credit exceeds the tax liability for the year, the excess
23may be carried forward and applied to the tax liability of the

 

 

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15 taxable years following the excess credit year. The tax
2credit shall be applied to the earliest year for which there is
3a tax liability. If there are credits for more than one year
4that are available to offset a liability, the earlier credit
5shall be applied first.
6    (c) As used in this Section, "qualified electric bicycle"
7means a 2-wheeled or 3-wheeled vehicle that:
8        (1) is a class 1 low-speed electric bicycle, a class 2
9    low-speed electric bicycle, or a class 3 low-speed
10    electric bicycle, as those terms are defined in Section
11    1-140.10 of the Illinois Vehicle Code;
12        (2) the original use of which commences with the
13    taxpayer;
14        (3) is acquired for use by the taxpayer in the United
15    States and not for lease or resale; and
16        (4) is not property of a character subject to an
17    allowance for depreciation or amortization in the hands of
18    the taxpayer.
19"Qualified electric bicycle" does not include any vehicle if
20the aggregate amount paid for the acquisition of the vehicle
21exceeds $8,000.
22    (d) No later than 3 years after the effective date of this
23amendatory Act of the 103rd General Assembly, the Department
24of Revenue shall report to the Governor and to the General
25Assembly the number of tax credit certificates awarded under
26this Section and the aggregate dollar amount of the tax credit

 

 

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1certificates allowed.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.