HB5172 100TH GENERAL ASSEMBLY

LRB100 20022 HLH 35304 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5172

Introduced , by Rep. Stephanie A. Kifowit

SYNOPSIS AS INTRODUCED:

35 ILCS 5/227 new

Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 50%, but not to exceed $2,500, of the costs incurred by the taxpayer during the taxable year in connection with the practice of hydroponics. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 227 as follows:

(35 ILCS 5/227 new)

Sec. 227. Hydroponics credit. For taxable years ending on or after December 31, 2018, a taxpayer is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 in an amount equal to 50%, but not to exceed $2,500, of the costs incurred by the taxpayer during the taxable year in connection with the practice of hydroponics, including, but not limited to, the purchase of materials and construction supplies.

In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for 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 liability, the earlier credit shall be applied first.

As used in this Section, "hydroponics" means the process of growing produce, intended for consumption, in sand, gravel, or liquid, with added nutrients, but without soil.

This Section is exempt from the provisions of Section 250.

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