98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3314

 

Introduced , by Rep. Sandra M. Pihos

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Provides for a credit for taxpayers who, during the taxable year, install, on a building or property that is owned by the taxpayer and that is located in the State, a geothermal energy device and sets the amount of the credit at the lesser of (i) $5,000 or (ii) 50% of the actual cost of the acquisition and installation of the device. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3314LRB098 09421 HLH 39562 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 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Credit for geothermal energy devices.
8    (a) For taxable years ending on or after December 31, 2013
9through taxable years ending on or before December 30, 2018,
10each taxpayer who, during the taxable year, installs, on a
11building or property that is owned by the taxpayer and that is
12located in the State, a geothermal energy device is entitled to
13a credit against the tax imposed under subsection (a) and (b)
14of Section 201 in an amount equal to the lesser of (i) $5,000
15or (ii) 50% of the actual cost of the acquisition and
16installation of the device.
17    (b) For the purposes of this Section:
18    "Geothermal energy device" means a system or mechanism or
19series of mechanisms designed to provide heating or cooling or
20to produce electrical or mechanical power, or any combination
21of these, by a method that extracts or converts the energy
22naturally occurring beneath the earth's surface in rock
23structures, water, or steam.

 

 

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1    (c) If a geothermal energy device is part of a system that
2uses other means of energy, then only that portion of the total
3system that is directly attributable to the cost of the
4geothermal energy device may be included in determining the
5amount of the credit. The costs of installation may not include
6the costs of redesigning, remodeling, or otherwise altering the
7structure of a building in which a geothermal energy device is
8installed.
9    (d) If the taxpayer is a partnership or Subchapter S
10corporation, the credit is allowed to the partners or
11shareholders in accordance with the determination of income and
12distributive share of income under Sections 702 and 704 and
13Subchapter S of the Internal Revenue Code.
14    (e) The credit may not be carried forward or back. In no
15event shall a credit under this Section reduce the taxpayer's
16liability to less than zero.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.