SB2883 103RD GENERAL ASSEMBLY

LRB103 38023 HLH 68155 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2883

Introduced 1/24/2024, by Sen. Julie A. Morrison

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Creates an income tax credit for qualified businesses that install solar canopies or permeable surfaces in their parking areas during the taxable year. Effective immediately.

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 Illinois Income Tax Act is amended by adding Section 241 as follows:

(35 ILCS 5/241 new)

Sec. 241. Green parking tax credit.

(a) For taxable years beginning on or after January 1, 2024 and beginning before January 1, 2029, each taxpayer that is a qualified business and that installs (i) solar canopies or (ii) a permeable surface of more than 100 square feet in its parking areas during the taxable year may apply to the Department for a credit against the taxes imposed by subsections (a) and (b) of Section 201 as provided in this Section. Only one credit may be awarded for any single contiguous parking area in any taxable year. If the taxpayer installs a permeable surface parking area, the amount of the credit shall be $10 per square foot of parking surface area but not to exceed $10,000 per taxpayer in any one taxable year. If the taxpayer installs solar canopies in a parking area, the amount of the credit shall be $10 per kilowatt hour of energy produced by the solar canopies during the taxable year but not to exceed $10,000 per taxpayer in any one taxable year. The total amount of credits that may be awarded by the Department in any given taxable year shall not exceed $10,000,000.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) Credits awarded under this Section to a partner or to a shareholder of a subchapter S corporation shall be calculated as provided in Section 251.

(d) In order to qualify for a tax credit award under this Act, the taxpayer must file an application, on forms prescribed by the Department, for each contiguous parking area for which the taxpayer seeks a tax credit under this Act. The application must provide information necessary to calculate the tax credit award and any additional information as reasonably required by the Department.

(e) Upon satisfactory review of the application, the Department shall issue a tax credit award certificate to the applicant stating the amount of the tax credit award to which the applicant is entitled for that tax year. The certificate must accompany the taxpayer's tax return for which the tax credit is awarded in the manner required by the Department.

(f) As used in this Section,

"Apartment complex" means premises that consist of (i) at least one building that contains one or more residential apartments and (ii) an area that is connected to or is contiguous to the apartments and is used by occupants of the apartments or their guests as a means of access to and egress from the apartments or for the parking of motor vehicles of the occupants or their guests.

"Condominium complex" means the units, common elements, and limited common elements that are located on the parcel, as those terms are defined in Section 2 of the Condominium Property Act.

"Commercial or industrial facility" means premises containing at least one commercial or industrial facility in connection with which there is provided, on privately owned property near or contiguous to the premises, one or more areas of land that are used by the public as a means of access to and egress from the commercial or industrial facility and for the parking of motor vehicles of customers, patrons, and employees of the commercial or industrial facility.

"Parking area" means an one or more areas of land near or contiguous to a school, church, or hospital building; shopping center; apartment complex; or condominium complex. "Parking area" does not include public highways or alleys used by the public as the means of access to and egress from those buildings and for the parking of motor vehicles.

"Qualified business" means a corporation, partnership, sole proprietorship, or limited liability company that owns or operates a commercial or industrial facility, including, but not limited to, a shopping center, hospital, church, or school, that has parking areas with more than 200 parking spaces. "Qualified business" also includes a corporation, partnership, sole proprietorship, or limited liability company that owns or operates multifamily housing, including, but not limited to, an apartment complex or condominium complex, that includes a parking area with over 50 parking spaces.

"Shopping center" means premises having one or more stores or business establishments in connection with which there is a parking area.

"Solar canopy" means a ground-mounted or roof-mounted steel structure topped with solar panels that are able to produce over 10 kilowatt hours of energy per day on average.

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