Illinois General Assembly - Full Text of HB3307
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Full Text of HB3307  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/19/2021, by Rep. Justin Slaughter


35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the investment made by the taxpayer during the taxable year in a Qualified Opportunity Fund. Provides that no such credit may be taken for any taxable year that begins prior to January 1, 2022. Provides that excess credits may be carried forward or back. Provides that the aggregate amount of the Qualified Opportunity Fund tax credit shall be limited to $10,000 per taxpayer per calendar year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

LRB102 14480 HLH 19833 b






HB3307LRB102 14480 HLH 19833 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
5adding Section 232 as follows:
6    (35 ILCS 5/232 new)
7    Sec. 232. Qualified Opportunity Fund credit.
8    (a) As used in this Section:
9    "Applicant" means a corporation, partnership, limited
10liability company, or a natural person that makes an
11investment in a Qualified Opportunity Fund established under
12Section 1400Z-2 of the Internal Revenue Code.
13    "Claimant" means an applicant that is awarded a credit
14under this Section by the Department.
15    "Department" means the Department of Commerce and Economic
17    (b) A claimant may claim a credit against the tax imposed
18under subsections (a) and (b) of Section 201 of this Act in an
19amount equal to the claimant's investment during the taxable
20year in a Qualified Opportunity Fund established under Section
211400Z-2 of the Internal Revenue Code.
22    (c) Credits may be awarded for investments made on or
23after the date on which the Qualified Opportunity Fund is



HB3307- 2 -LRB102 14480 HLH 19833 b

1created; however, no credit may be taken for any taxable year
2that begins prior to January 1, 2022. The credit under this
3Section may not exceed the taxpayer's Illinois income tax
4liability for the taxable year. If the amount of the credit
5exceeds the tax liability for the year, then the excess may be
6carried forward and applied to the tax liability of the 5
7taxable years following the excess credit year or carried back
8and applied to the tax liability of the 3 taxable years
9immediately preceding the excess credit year. The credit shall
10be applied to the earliest year for which there is a tax
11liability. If there are credits from more than one tax year
12that are available to offset a liability, the earlier credit
13shall be applied first. In the case of a partnership or
14Subchapter S Corporation, the credit is allowed to the
15partners or shareholders in accordance with the determination
16of income and distributive share of income under Sections 702
17and 704 and Subchapter S of the Internal Revenue Code.
18    (d) A transfer of the credit may be made by the taxpayer,
19in accordance with rules adopted by the Department, within one
20year after the credit is awarded.
21    (e) In no event shall a credit under this Section exceed
22$10,000 for any taxpayer in any taxable year.
23    (f) This Section is exempt from the provisions of Section
25    Section 99. Effective date. This Act takes effect upon
26becoming law.