97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1362
 
Introduced 2/8/2011, by Sen. Edward D. Maloney
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/221 new

     Amends the Illinois Income Tax Act.  Creates a credit equal to a percentage of the cost of mechanical insulation property placed in service in the State during the taxable year.  Effective immediately.
  


LRB097 05997 HLH 46068 b

FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
SB1362LRB097 05997 HLH 46068 b


  
1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Income Tax Act is amended  by adding 
5Section 221 as follows:
 
6    (35 ILCS 5/221 new)
7    Sec. 221. Credit for mechanical insulation.  For each 
8taxable year beginning on or after January 1, 2011, each 
9taxpayer is entitled to a credit against the tax imposed by 
10subsections (a) and (b) of Section 201 of this Act in an amount 
11equal to the applicable percentage of the cost of mechanical 
12insulation property placed in service in the State during the 
13taxable year.
14    In no event shall a credit under this Section reduce the 
15taxpayer's liability to less than zero. If the amount of the 
16credit exceeds the tax liability for the year, the excess may 
17be carried forward and applied to the tax liability of the 5 
18taxable years following the excess credit year. The tax credit 
19shall be applied to the earliest year for which there is a tax 
20liability. If there are credits for more than one year that are 
21available to offset a liability, the earlier credit shall be 
22applied first. 
23    For purposes of this Section:
 
 
SB1362- 2 -LRB097 05997 HLH 46068 b

1        "ASHRAE" means the American Society of Heating, 
2    Refrigerating, and Air-Conditioning Engineers. 
3        "Mechanical insulation property" includes insulation 
4    materials, facings, and accessory products used for 
5    thermal requirements for mechanical piping and equipment, 
6    hot and cold applications, and heating, venting, and air 
7    conditioning applications. 
8        "Cost of mechanical insulation property" includes any 
9    amount paid or incurred for the installation of mechanical 
10    insulation property that exceeds ASHRAE standard 
11    90.1-2007.
12        "Applicable percentage" means the lesser of (i) 30% or 
13    (ii) the reduction in energy loss (expressed as a 
14    percentage) from the installed mechanical insulation 
15    property compared with mechanical insulation property that 
16    meets the minimum requirements of ASHRAE standard 
17    90.1-2007. 
  
 
18    Section 99. Effective date. This Act takes effect upon 
19becoming law.