093_HB2791
LRB093 07092 SJM 07245 b
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5 changing Section 211 as follows:
6 (35 ILCS 5/211)
7 Sec. 211. Economic Development for a Growing Economy Tax
8 Credit. For tax years beginning on or after January 1, 1999,
9 a Taxpayer who has entered into an Agreement under the
10 Economic Development for a Growing Economy Tax Credit Act is
11 entitled to a credit against the taxes imposed under
12 subsections (a) and (b) of Section 201 of this Act in an
13 amount to be determined in the Agreement. If the Taxpayer is
14 a partnership or Subchapter S corporation, the credit shall
15 be allowed to the partners or shareholders in accordance with
16 the determination of income and distributive share of income
17 under Sections 702 and 704 and subchapter S of the Internal
18 Revenue Code. The Department, in cooperation with the
19 Department of Commerce and Community Affairs, shall prescribe
20 rules to enforce and administer the provisions of this
21 Section. This Section is exempt from the provisions of
22 Section 250 of this Act.
23 The credit shall be subject to the conditions set forth
24 in the Agreement and the following limitations:
25 (1) The tax credit shall not exceed the Incremental
26 Income Tax (as defined in Section 5-5 of the Economic
27 Development for a Growing Economy Tax Credit Act) with
28 respect to the project.
29 (2) The amount of the credit allowed during the tax
30 year plus the sum of all amounts allowed in prior years
31 shall not exceed 100% of the aggregate amount expended by
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1 the Taxpayer during all prior tax years on approved costs
2 defined by Agreement.
3 (3) The amount of the credit shall be determined on
4 an annual basis. Except as applied in a carryover year
5 pursuant to Section 211(4) of this Act, the credit may
6 not be applied against any State income tax liability in
7 more than 15 10 taxable years; provided, however, that
8 (i) an eligible business certified by the Department of
9 Commerce and Community Affairs under the Corporate
10 Headquarters Relocation Act may not apply the credit
11 against any of its State income tax liability in more
12 than 15 taxable years and (ii) credits allowed to that
13 eligible business are subject to the conditions and
14 requirements set forth in Sections 5-35 and 5-45 of the
15 Economic Development for a Growing Economy Tax Credit
16 Act.
17 (4) The credit may not exceed the amount of taxes
18 imposed pursuant to subsections (a) and (b) of Section
19 201 of this Act. Any credit that is unused in the year
20 the credit is computed may be carried forward and applied
21 to the tax liability of the 5 taxable years following the
22 excess credit year. The credit shall be applied to the
23 earliest year for which there is a tax liability. If
24 there are credits from more than one tax year that are
25 available to offset a liability, the earlier credit shall
26 be applied first.
27 (5) No credit shall be allowed with respect to any
28 Agreement for any taxable year ending after the
29 Noncompliance Date. Upon receiving notification by the
30 Department of Commerce and Community Affairs of the
31 noncompliance of a Taxpayer with an Agreement, the
32 Department shall notify the Taxpayer that no credit is
33 allowed with respect to that Agreement for any taxable
34 year ending after the Noncompliance Date, as stated in
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1 such notification. If any credit has been allowed with
2 respect to an Agreement for a taxable year ending after
3 the Noncompliance Date for that Agreement, any refund
4 paid to the Taxpayer for that taxable year shall, to the
5 extent of that credit allowed, be an erroneous refund
6 within the meaning of Section 912 of this Act.
7 (6) For purposes of this Section, the terms
8 "Agreement", "Incremental Income Tax", and
9 "Noncompliance Date" have the same meaning as when used
10 in the Economic Development for a Growing Economy Tax
11 Credit Act.
12 (Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.)
13 Section 5. The Economic Development for a Growing
14 Economy Tax Credit Act is amended by changing Sections 5-20
15 and 5-45 as follows:
16 (35 ILCS 10/5-20)
17 Sec. 5-20. Application for a project to create and
18 retain new jobs.
19 (a) Any Taxpayer proposing a project located or planned
20 to be located in Illinois may request consideration for
21 designation of its project, by formal written letter of
22 request or by formal application to the Department, in which
23 the Applicant states its intent to make at least a specified
24 level of investment and intends to hire or retain a specified
25 number of full-time employees at a designated location in
26 Illinois. As circumstances require, the Department may
27 require a formal application from an Applicant and a formal
28 letter of request for assistance.
29 (b) In order to qualify for Credits under this Act, an
30 Applicant's project must:
31 (1) involve an investment of at least $5,000,000 in
32 capital improvements to be placed in service and to
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1 employ at least 25 New Employees within the State as a
2 direct result of the project; or
3 (2) involve an investment of at least an amount (to
4 be expressly specified by the Department and the
5 Committee) in capital improvements to be placed in
6 service and will employ at least an amount (to be
7 expressly specified by the Department and the Committee)
8 of New Employees within the State, provided that the
9 Department and the Committee have determined that the
10 project will provide a substantial economic benefit to
11 the State and that the State will receive a return on its
12 investment.
13 (c) After receipt of an application, the Department may
14 enter into an Agreement with the Applicant if the application
15 is accepted in accordance with Section 5-25.
16 (Source: P.A. 91-476, eff. 8-11-99.)
17 (35 ILCS 10/5-45)
18 Sec. 5-45. Amount and duration of the credit.
19 (a) The Department shall determine the amount and
20 duration of the credit awarded under this Act. The duration
21 of the credit may not exceed 15 10 taxable years. The credit
22 may be stated as a percentage of the Incremental Income Tax
23 attributable to the applicant's project and may include a
24 fixed dollar limitation.
25 (b) Notwithstanding subsection (a), and except as the
26 credit may be applied in a carryover year pursuant to Section
27 211(4) of the Illinois Income Tax Act, the credit may be
28 applied against the State income tax liability in more than
29 10 taxable years but not in more than 15 taxable years for an
30 eligible business that (i) qualifies under this Act and the
31 Corporate Headquarters Relocation Act and has in fact
32 undertaken a qualifying project within the time frame
33 specified by the Department of Commerce and Community Affairs
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1 under that Act, and (ii) applies against its State income tax
2 liability, during the entire 15-year period, no more than 60%
3 of the maximum credit per year that would otherwise be
4 available under this Act.
5 (Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.)
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.