103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4864

 

Introduced 2/7/2024, by Rep. Natalie A. Manley

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/241 new

    Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of the manufacturing capital expenditures. Provides that the total amount of credits awarded under those provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount of the credit shall be $20,000,000. Effective immediately.


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A BILL FOR

 

HB4864LRB103 36518 HLH 66624 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 241 as follows:
 
6    (35 ILCS 5/241 new)
7    Sec. 241. Manufacturing capital expenditure credit. For
8taxable years that begin on or after January 1, 2024 and begin
9prior to January 1, 2035, each taxpayer that is engaged in the
10business of manufacturing (North American Industry
11Classification System code 31-33) is entitled to a credit
12against the taxes imposed by subsections (a) and (b) of
13Section 201 in an amount equal to 10% of the capital
14expenditures incurred by the taxpayer during the taxable year
15that are related to manufacturing. The total amount of credits
16awarded under this Section may not exceed $10,000,000 for any
17particular taxpayer in any taxable year, except that, if the
18capital investment is made in a rural or economically
19challenged area, as determined by the Department of Commerce
20and Economic Opportunity, then the amount of the credit shall
21be 15% of the capital expenditure, and the maximum amount of
22the credit shall be $20,000,000. A taxpayer may not claim a
23credit under this Section if the taxpayer claims a credit

 

 

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1against the taxes imposed by subsections (a) and (b) of
2Section 201 for the same capital expenditure under any other
3provision of law.
4    In no event shall a credit under this Section reduce the
5taxpayer's liability under this Act to less than zero. The
6credit may not be carried forward or back.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.