SB1532 103RD GENERAL ASSEMBLY

LRB103 27697 HLH 54074 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1532

Introduced 2/8/2023, by Sen. Tom Bennett

SYNOPSIS AS INTRODUCED:

35 ILCS 5/234 new

Amends the Illinois Income Tax Act. Creates an income tax credit for Illinois licensed wine manufacturers and craft brewers in an amount equal to 50% of the qualified costs incurred by a qualified taxpayer during the taxable year. Prohibits a taxpayer from receiving a credit of more than $1,500. Provides that the tax credit shall be awarded on the basis of costs related to the purchase of crops used in the manufacture of beer or wine that are grown and harvested in Illinois. Defines terms. 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 234 as follows:

(35 ILCS 5/234 new)

Sec. 234. Credit for Illinois wineries and craft breweries.

(a) For each taxable year ending on or after December 31, 2023, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 50% of the qualified costs incurred by a qualified taxpayer during the taxable year. In no event shall a taxpayer receive a credit of more than $1,500. In no event shall more than one credit be allowed for anyone licensed wine manufacturer or craft brewer.

(b) In order to be eligible for a tax credit under this Section, a taxpayer must (i) own or operate a licensed Illinois-based wine manufacturing business or (ii) own or operate a licensed Illinois-based craft brewery. The credit shall be awarded on the basis of costs related to the purchase of crops that are used in the manufacture of beer or wine and that are grown and harvested in Illinois.

(c) For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for 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.

(d) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the tax 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 credit must be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, then the earlier credit must be applied first.

(e) The Department of Revenue shall adopt any necessary rules in order to implement and administer the provisions of this Section.

(f) For purposes of this Section:

"Qualified costs" means costs associated with the purchase of crops, including, but not limited to, barley, hops, and grapes, that are grown and harvested in Illinois.

"Qualified taxpayer" means an individual who is (i) a licensed wine manufacturer, as provided under Section 1-3.11 of the Liquor Control Act of 1934; (ii) a licensed Class 1 brewer, as provided under Section 1-3.38 of the Liquor Control Act of 1934; or (iii) a licensed Class 2 brewer, as provided under Section 1-3.42 of the Liquor Control Act of 1934.

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