Illinois General Assembly - Full Text of HB0435
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Full Text of HB0435  102nd General Assembly



State of Illinois
2021 and 2022


Introduced 2/8/2021, by Rep. Mark L. Walker


35 ILCS 10/5-45

    Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the recipient of a credit under the Act may apply for a certificate of transferability of credit from the Department of Commerce and Economic Opportunity for the amount of the credit not previously claimed. Provides that the transferability certificate may be transferred or sold by the recipient to another Illinois taxpayer. Makes other changes.

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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 Economic Development for a Growing Economy
5Tax Credit Act is amended by changing Section 5-45 as follows:
6    (35 ILCS 10/5-45)
7    Sec. 5-45. Amount and duration of the credit.
8    (a) The Department shall determine the amount and duration
9of the credit awarded under this Act. The duration of the
10credit may not exceed 10 taxable years. The credit may be
11stated as a percentage of the Incremental Income Tax
12attributable to the applicant's project and may include a
13fixed dollar limitation.
14    (b) Notwithstanding subsection (a), and except as the
15credit may be applied in a carryover year pursuant to Section
16211(4) of the Illinois Income Tax Act, the credit may be
17applied against the State income tax liability in more than 10
18taxable years but not in more than 15 taxable years for an
19eligible business that (i) qualifies under this Act and the
20Corporate Headquarters Relocation Act and has in fact
21undertaken a qualifying project within the time frame
22specified by the Department of Commerce and Economic
23Opportunity under that Act, and (ii) applies against its State



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1income tax liability, during the entire 15-year period, no
2more than 60% of the maximum credit per year that would
3otherwise be available under this Act.
4    (c) Notwithstanding subsection (a) or (b), a recipient of
5a credit may request a certificate of transferability of
6credit from the Department for the amount of credit not
7previously claimed. A transferability certificate so issued
8may be transferred or sold by the recipient to another
9Illinois taxpayer. Transferors and sellers shall submit to the
10Department of Revenue a notification of any transfer or sale
11of tax credits within 30 days after the transfer or sale of
12those tax credits. The notification, which shall be in the
13form prescribed by the Department, shall include the
14transferor's tax credit balance prior to transfer, the credit
15certificate number, the identifying number of the EDGE
16agreement, the transferor's remaining tax credit balance after
17transfer, all tax identification numbers for both transferor
18and transferee, the date of transfer, the amount transferred,
19a copy of the credit certificate, and any other information
20required by the Department of Revenue. The transfer or sale of
21the credit does not extend the time in which the credit can be
22used. The carry forward period for a credit that is
23transferred or sold begins on the date on which the credit was
24originally granted by the Department. To the extent the
25transferor did not have rights to claim or use the credit at
26the time of the transfer or sale, the Department of Revenue



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1shall either disallow the credit claimed by the transferee or
2recapture the credit from the transferee through any
3collection method authorized by statute. In such case, the
4transferee's recourse is against the transferor.
5(Source: P.A. 94-793, eff. 5-19-06.)