HB5364 94TH GENERAL ASSEMBLY

LRB094 15876 BDD 51098 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5364

Introduced 01/26/06, by Rep. Carolyn H. Krause

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-347 new
35 ILCS 5/216 new

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Requires the Department of Commerce and Economic Opportunity to establish and maintain a program to certify energy-efficient heating and cooling systems and to certify contractors to provide services with respect to those systems. Requires the Department to certify tax-credit amounts with respect to energy-efficient heating and cooling systems. Requires the Department to post this information in its Internet website. Amends the Illinois Income Tax Act. Provides tax credits for each individual taxpayer who: (i) purchases and installs a certified energy-efficient heating or cooling systems in his or her residence; (ii) hire a certified contractor to install sealed ductwork or seal existing ductwork in the taxpayer's residential dwelling; or (iii) hires a certified contractor to test a heat pump system or central air conditioning system and service the system for optimal performance in the taxpayer's residential dwelling. Sets forth the amounts of the credits. Provides that the credits may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-347 as follows:

(20 ILCS 605/605-347 new)

Sec. 605-347. Certification of energy-efficient heating and cooling systems.

(a) Before December 31, 2006, the Department must establish and maintain a program to make certifications concerning energy-efficient heating and cooling systems for purposes of the income tax credit set forth under Section 216 of the Illinois Income Tax Act.

(b) For the purpose of this Section:

"Energy-efficient heating or cooling system" includes any air conditioning system, heat pump system, furnace, boiler, air handler, combination space and water heating system, and heat recovery ventilation system that (i) meets minimum requirements of the Department, which must be based upon federal Energy Guide standards and (ii) is installed by a contractor certified by the Department under this Section.

(c) The Department must certify which systems qualify as an energy-efficient heating or cooling system and must certify the amount of the income tax credit available for the purchase and installation of that system. The amount of the credit:

(1) for a certified air conditioning system, air handler, combination space and water heating system, or heat recovery ventilation system is the amount determined by the Department based upon federal Energy Guide standards;

(2) for a certified heat pump system is an amount not less than $300 and not more than $680 to be determined by the Department based upon federal Energy Guide standards;

(3) for a certified boiler is $225; and

(4) for a certified furnace is $350.

(d) The Department must certify contractors to install Energy-efficient heating or cooling systems, test and service heat pumps and central air conditioning systems, and install sealed ductwork or seal existing ductwork in residential dwellings. The Department must, by rule, adopt standards for certified contractors and develop application procedures for certifying the contractors.

(e) The Department must post, on its Internet website, a list of each energy-efficient heating or cooling system and the amount of the income tax credit available for the purchase and installation of that system and a list of each certified contractor.

Section 10. The Illinois Income Tax Act is amended by adding Section 216 as follows:

(35 ILCS 5/216 new)

Sec. 216. Credits for energy-efficient heating and cooling systems.

(a) For taxable years ending on or after December 31, 2006 and on or before December 30, 2011, each individual taxpayer who, during the taxable year, purchases and installs, in the taxpayer's residence, a certified energy-efficient heating or cooling system, as defined under Section 605-347 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois, is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 in an amount equal to the lesser of: (i) the credit amount certified by the Department of Commerce and Economic Opportunity under subsection (c) of Section 605-347 of the Department of Commerce and Economic Opportunity Law; or (ii) 25% of the cost of the purchase and installation of the certified energy-efficient heating or cooling system. To qualify for the credit, all installation work must be performed by contractor certified under subsection (d) of Section 605-347 of the Department of Commerce and Economic Opportunity Law.

(b) For taxable years ending on or after December 31, 2006 and on or before December 30, 2011, each individual taxpayer who, during the taxable year, has hired a contractor certified under subsection (d) of Section 605-347 of the Department of Commerce and Economic Opportunity Law to install sealed ductwork or seal existing ductwork in the taxpayer's residential dwelling is entitled to the lesser of (i) $250 or (ii) 25% of the cost of the services.

(c) For taxable years ending on or after December 31, 2006 and on or before December 30, 2011, each individual taxpayer who, during the taxable year, has hired a contractor certified under subsection (d) of Section 605-347 of the Department of Commerce and Economic Opportunity Law to test a heat pump system or central air conditioning system and service the system for optimal performance in the taxpayer's residential dwelling is entitled to the lesser of (i) $250 or (ii) 25% of the cost of the services.

(d) The credits under this Section may not be carried forward or back. In no event may a credit under this Section reduce the taxpayer's liability to less than zero.

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