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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Department of Commerce and Economic | ||||||||||||||||||||||||||
5 | Opportunity Law of the
Civil Administrative Code of Illinois is | ||||||||||||||||||||||||||
6 | amended by adding Section 605-445 as follows: | ||||||||||||||||||||||||||
7 | (20 ILCS 605/605-445 new)
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8 | Sec. 605-445. Certification of community-organization | ||||||||||||||||||||||||||
9 | projects. | ||||||||||||||||||||||||||
10 | (a) The Department shall certify those credit-eligible | ||||||||||||||||||||||||||
11 | community-organization projects for which taxpayers may | ||||||||||||||||||||||||||
12 | receive a credit for monetary donations under Section 218 of | ||||||||||||||||||||||||||
13 | the Illinois Income Tax Act. To be certified as a | ||||||||||||||||||||||||||
14 | credit-eligible community-organization project, the project | ||||||||||||||||||||||||||
15 | must: | ||||||||||||||||||||||||||
16 | (1) be conducted by an eligible not-for-profit agency; | ||||||||||||||||||||||||||
17 | (2) be located within a community that requires | ||||||||||||||||||||||||||
18 | economic-development assistance; and | ||||||||||||||||||||||||||
19 | (3) likely result in the improvement of the local | ||||||||||||||||||||||||||
20 | physical and social infrastructure within the community.
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21 | (b) To receive a certification under this Section, the | ||||||||||||||||||||||||||
22 | agency must submit an application in the form and manner | ||||||||||||||||||||||||||
23 | required by the Department. The Department must review the |
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1 | applications, and, if a project is approved, then the | ||||||
2 | Department shall certify the amount of donations for which an | ||||||
3 | income tax credit may be awarded under Section 218 of the | ||||||
4 | Illinois Income Tax Act. The aggregate amount of donations for | ||||||
5 | which an income tax credit may be awarded may not exceed | ||||||
6 | $10,000,000 per year. An eligible not-for-profit agency that | ||||||
7 | receives donations in excess of the amount certified by the | ||||||
8 | Department for a community-organization project must notify | ||||||
9 | the donor that he or she will not receive a tax credit for the | ||||||
10 | donation. | ||||||
11 | The Department must maintain a list of the credit-eligible | ||||||
12 | community-organization projects on an Internet website that is | ||||||
13 | accessible to the public.
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14 | (c) The Department, in cooperation with the Secretary of | ||||||
15 | State, the Attorney General, and the Department of Revenue, | ||||||
16 | must adopt any rules that are necessary for the implementation | ||||||
17 | and administration of this Section.
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18 | (d) The Department shall also establish and maintain a | ||||||
19 | program to award grants to eligible not-for-profit agencies for | ||||||
20 | community-organization projects in the State. The aggregate | ||||||
21 | amount of grants awarded under this subsection (d) may not | ||||||
22 | exceed $5,000,000 per year. To receive a grant, the agency must | ||||||
23 | submit an application in the form and manner required by the | ||||||
24 | Department. The grants under this subsection (d) are subject to | ||||||
25 | appropriation.
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26 | (e) For the purpose of this Section: |
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1 | "Eligible not-for-profit agency" means a private | ||||||
2 | organization that: | ||||||
3 | (1) is a not-for-profit corporation that is exempt from | ||||||
4 | federal income taxation under Section 501(c)(3) of the | ||||||
5 | federal Internal Revenue Code of 1986; | ||||||
6 | (2) is organized under the General Not for Profit | ||||||
7 | Corporation Act of 1986 for the purpose of providing | ||||||
8 | community service; and | ||||||
9 | (3) complies with the provisions of the Charitable | ||||||
10 | Trust Act.
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11 | "Physical infrastructure improvement" means a housing | ||||||
12 | improvement or a revitalization program aimed at the physical | ||||||
13 | improvement of a neighborhood area. | ||||||
14 | "Social infrastructure improvement" includes community | ||||||
15 | organizing and planning, job training, education, and | ||||||
16 | employment support for area residents.
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17 | Section 10. The Illinois Income Tax Act is amended by | ||||||
18 | adding Section 218 as follows: | ||||||
19 | (35 ILCS 5/218 new) | ||||||
20 | Sec. 218. Credit for donations to certified | ||||||
21 | community-organization projects. | ||||||
22 | (a) For taxable years ending on or after December 31, 2007, | ||||||
23 | each taxpayer who, during the taxable year makes a donation to | ||||||
24 | a community-organization project that is certified under |
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1 | Section 605-445 of the Department of Commerce and Economic | ||||||
2 | Opportunity Law of the
Civil Administrative Code of Illinois is | ||||||
3 | entitled to a credit against the tax imposed by subsections (a) | ||||||
4 | and (b) of Section 201 in an amount equal to the aggregate | ||||||
5 | amount of all donations made by the taxpayer in the taxable | ||||||
6 | year. | ||||||
7 | (c) For partners, shareholders of Subchapter S | ||||||
8 | corporations, and owners of limited liability companies, if the | ||||||
9 | liability company is treated as a partnership for purposes of | ||||||
10 | federal and State income taxation, there shall be allowed a | ||||||
11 | credit under this Section to be determined in accordance with | ||||||
12 | the determination of income and distributive share of income | ||||||
13 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
14 | Revenue Code.
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15 | (d) A taxpayer claiming the credit under this Section must | ||||||
16 | maintain and record any information that the Department | ||||||
17 | requires regarding the donation for which the credit is | ||||||
18 | claimed. When claiming the credit under this Section, the | ||||||
19 | taxpayer must provide information regarding the taxpayer's | ||||||
20 | donation to the community-organization project. | ||||||
21 | (e) The credit under this Section may not be carried | ||||||
22 | forward or back and may not reduce the taxpayer's liability to | ||||||
23 | less than zero. | ||||||
24 | (f) This Section is exempt from the provisions of Section | ||||||
25 | 250.
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26 | (g) On or before October 30, 2007, the Department, in |
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1 | cooperation with the Department of Commerce and Economic | ||||||
2 | Opportunity, must adopt rules necessary for the implementation | ||||||
3 | and administration of this Section.
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4 | Section 99. Effective date. This Act takes effect upon | ||||||
5 | becoming law.
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