HB3089 103RD GENERAL ASSEMBLY

LRB103 30029 SPS 56450 b

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.

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 240 as follows:

(35 ILCS 5/240 new)

Sec. 240. Electric bicycle credit.

(a) For taxable years beginning on or after January 1, 2023, a taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 50% of the cost of any qualified electric bicycle placed in service by the taxpayer during the taxable year. The total credit allowed to a taxpayer may not exceed $1,000 for all taxable years. 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 of Revenue by rule. If granted, the taxpayer shall attach a copy of the certificate of credit to his or her Illinois income tax return for the taxable year.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of 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 a liability, the earlier credit shall be applied first.

(c) As used in this Section, "qualified electric bicycle" means a 2-wheeled or 3-wheeled vehicle that:

(1) is a class 1 low-speed electric bicycle, a class 2 low-speed electric bicycle, or a class 3 low-speed electric bicycle, as those terms are defined in Section 1-140.10 of the Illinois Vehicle Code;

(2) the original use of which commences with the taxpayer;

(3) is acquired for use by the taxpayer in the United States and not for lease or resale; and

(4) is not property of a character subject to an allowance for depreciation or amortization in the hands of the taxpayer. "Qualified electric bicycle" does not include any vehicle if the aggregate amount paid for the acquisition of the vehicle exceeds $8,000.

(d) No later than 3 years after the effective date of this amendatory Act of the 103rd General Assembly, the Department of Revenue shall report to the Governor and to the General Assembly the number of tax credit certificates awarded under this Section and the aggregate dollar amount of the tax credit certificates allowed.

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