HB3051 103RD GENERAL ASSEMBLY

LRB103 30531 HLH 56964 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3051

Introduced 2/17/2023, by Rep. Harry Benton

SYNOPSIS AS INTRODUCED:

35 ILCS 5/234 new

Amends the Illinois Income Tax Act. Provides that the Department of Commerce and Economic Opportunity may enter into credit agreements with eligible manufacturing employers for the purpose of creating manufacturing jobs in the State. 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 234 as follows:

(35 ILCS 5/234 new)

Sec. 234. Manufacturing jobs credit.

(a) The Department of Commerce and Economic Opportunity may enter into credit agreements with eligible manufacturing employers for the purpose of creating manufacturing jobs in the State. Credits under this Section shall be available for taxable years beginning on or after January 1, 2024 and may be used to offset the taxpayer's liability for the taxes imposed under subsections (a) and (b) of Section 201. A credit under this Section may not exceed the incremental income tax attributable to new and retained employees during the taxable year.

(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) For partners and shareholders of Subchapter S corporations, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(d) As used in this Section, "incremental income tax" has the meaning given to that term in the Economic Development for a Growing Economy Tax Credit Act.

(e) This Section is exempt from the provisions of Section 250.

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