093_SB1535eng SB1535 Engrossed LRB093 10861 SJM 11351 b 1 AN ACT concerning rural technology. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Rural Technology Development Zone Act. 6 Section 5. Zones established. Subject to appropriation, 7 the Department of Commerce and Community Affairs (DCCA) may 8 implement a pilot program to designate 3 rural areas in the 9 State as rural technology development zones. The pilot 10 programs shall be in areas that are underserved with respect 11 to technology development. DCCA shall determine which 3 12 underserved areas shall be designated as technology 13 development zones in consultation with the Illinois Commerce 14 Commission. In designating the zones, DCCA shall specify by 15 rule, based upon the needs and assessment inventory, the 16 specific technology infrastructure needs of each rural 17 technology development zone and the types of investments that 18 will meet those needs. For each rural technology development 19 zone designated under this Section, DCCA shall further 20 specify all of the following: 21 (1) The boundaries of the rural technology 22 development zone. 23 (2) The potential for increasing Internet access 24 within the rural technology development zone. 25 (3) The specific technology infrastructure required 26 to provide adequate Internet access within the zone and 27 any unique needs or characteristics of the zone. 28 (4) The specific investments in technology 29 infrastructure that will qualify for income tax credits 30 in the zone under Section 213 of the Illinois Income Tax 31 Act. SB1535 Engrossed -2- LRB093 10861 SJM 11351 b 1 (5) Any other information DCCA deems pertinent. 2 Section 10. Report to the General Assembly. DCCA shall 3 submit a report to the General Assembly on or before 4 September 1, 2005 outlining the progress, if any, in 5 improving Internet access within rural technology development 6 zones. The report shall include, but is not limited to, the 7 following information: 8 (1) An analysis of the changes made in technology 9 infrastructure in the rural technology development zones 10 to improve Internet access and the effects of those 11 changes. 12 (2) Any available statistics concerning the amount 13 of investments made in rural technology development 14 zones. 15 Section 15. Rules. DCCA shall adopt any rules necessary 16 for the administration of this Act. 17 Section 90. The Illinois Income Tax Act is amended by 18 adding Section 213 as follows: 19 (35 ILCS 5/213 new) 20 Sec. 213. Rural technology development zone tax credit. 21 (a) For taxable years beginning on or after January 1, 22 2004 and before January 1, 2010, each taxpayer is entitled to 23 a credit against the tax imposed by subsections (a) and (b) 24 of Section 201 in an amount equal to 10% of the amount of the 25 total investment made during the taxable year by the taxpayer 26 in technology infrastructure required to provide Internet 27 access in rural technology development zones. This credit may 28 be claimed only for specific capital investments in 29 technology infrastructure that will qualify for income tax 30 credits in the development zone as specified by the SB1535 Engrossed -3- LRB093 10861 SJM 11351 b 1 Department of Commerce and Community Affairs under item (4) 2 of Section 5 of the Rural Technology Development Zone Act. 3 The credit claimed by a taxpayer under this Section shall not 4 exceed $100,000 in any one taxable year. 5 (b) If the credit allowed under this Section exceeds the 6 income taxes otherwise due on the claimant's income, the 7 amount of the credit not used as an offset against income 8 taxes may be carried forward as a tax credit against 9 subsequent years' income tax liability for a period not to 10 exceed 10 years and shall be applied first to the earliest 11 years possible. 12 (c) The credit awarded under this Section is limited as 13 follows: 14 (1) The credit claimed shall not exceed $100,000 15 per year. Qualified investments in excess of $1,000,000 16 in any tax year cannot earn a credit and cannot be 17 carried forward. 18 (2) A partnership, S corporation, or other similar 19 pass-through entity or a disregarded entity may pass 20 through up to $100,000 in total credit to its partners, 21 shareholders, or members. Each partner, shareholder, or 22 member's portion of the credit is determined according to 23 the ratio in which profits or losses of the entity are 24 allocated. 25 Section 99. Effective date. This Act takes effect upon 26 becoming law.