Illinois General Assembly - Full Text of SB1809
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Full Text of SB1809  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 2/9/2023, by Sen. Sally J. Turner


35 ILCS 5/211
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. Provides that unused Economic Development for a Growing Economy tax credits may be carried forward for a period of 10 years (currently, 5 years). Makes other changes.

LRB103 28009 HLH 54388 b





SB1809LRB103 28009 HLH 54388 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
5changing Section 211 as follows:
6    (35 ILCS 5/211)
7    Sec. 211. Economic Development for a Growing Economy Tax
8Credit. For tax years beginning on or after January 1, 1999, a
9Taxpayer who has entered into an Agreement (including a New
10Construction EDGE Agreement) under the Economic Development
11for a Growing Economy Tax Credit Act is entitled to a credit
12against the taxes imposed under subsections (a) and (b) of
13Section 201 of this Act in an amount to be determined in the
14Agreement. If the Taxpayer is a partnership or Subchapter S
15corporation, the credit shall be allowed to the partners or
16shareholders in accordance with the determination of income
17and distributive share of income under Sections 702 and 704
18and subchapter S of the Internal Revenue Code. The Department,
19in cooperation with the Department of Commerce and Economic
20Opportunity, shall prescribe rules to enforce and administer
21the provisions of this Section. This Section is exempt from
22the provisions of Section 250 of this Act.
23    The credit shall be subject to the conditions set forth in



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1the Agreement and the following limitations:
2        (1) The tax credit shall not exceed the Incremental
3    Income Tax (as defined in Section 5-5 of the Economic
4    Development for a Growing Economy Tax Credit Act) with
5    respect to the project; additionally, the New Construction
6    EDGE Credit shall not exceed the New Construction EDGE
7    Incremental Income Tax (as defined in Section 5-5 of the
8    Economic Development for a Growing Economy Tax Credit
9    Act).
10        (2) The amount of the credit allowed during the tax
11    year plus the sum of all amounts allowed in prior years
12    shall not exceed 100% of the aggregate amount expended by
13    the Taxpayer during all prior tax years on approved costs
14    defined by Agreement.
15        (3) The amount of the credit shall be determined on an
16    annual basis. Except as applied in a carryover year
17    pursuant to Section 211(4) of this Act, the credit may not
18    be applied against any State income tax liability in more
19    than 10 taxable years; provided, however, that (i) an
20    eligible business certified by the Department of Commerce
21    and Economic Opportunity under the Corporate Headquarters
22    Relocation Act may not apply the credit against any of its
23    State income tax liability in more than 15 taxable years
24    and (ii) credits allowed to that eligible business are
25    subject to the conditions and requirements set forth in
26    Sections 5-35 and 5-45 of the Economic Development for a



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1    Growing Economy Tax Credit Act and Section 5-51 as
2    applicable to New Construction EDGE Credits.
3        (4) The credit may not exceed the amount of taxes
4    imposed pursuant to subsections (a) and (b) of Section 201
5    of this Act. Any credit that is unused in the year the
6    credit is computed may be carried forward and applied to
7    the tax liability of the 10 5 taxable years following the
8    excess credit year, except as otherwise provided under
9    paragraph (4.5) of this Section. It is the intent of the
10    General Assembly that the carry forward period for all
11    credits that have not expired as of the effective date of
12    this amendatory Act of the 103rd General Assembly shall be
13    extended to 10 years. The credit shall be applied to the
14    earliest year for which there is a tax liability. If there
15    are credits from more than one tax year that are available
16    to offset a liability, the earlier credit shall be applied
17    first.
18        (4.5) The Department of Commerce and Economic
19    Opportunity, in consultation with the Department of
20    Revenue, shall adopt rules to extend the sunset of any
21    earned, existing, or unused credit as provided for in
22    Section 605-1055 of the Department of Commerce and
23    Economic Opportunity Law of the Civil Administrative Code
24    of Illinois.
25        (5) No credit shall be allowed with respect to any
26    Agreement for any taxable year ending after the



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1    Noncompliance Date. Upon receiving notification by the
2    Department of Commerce and Economic Opportunity of the
3    noncompliance of a Taxpayer with an Agreement, the
4    Department shall notify the Taxpayer that no credit is
5    allowed with respect to that Agreement for any taxable
6    year ending after the Noncompliance Date, as stated in
7    such notification. If any credit has been allowed with
8    respect to an Agreement for a taxable year ending after
9    the Noncompliance Date for that Agreement, any refund paid
10    to the Taxpayer for that taxable year shall, to the extent
11    of that credit allowed, be an erroneous refund within the
12    meaning of Section 912 of this Act.
13        If, during any taxable year, a taxpayer ceases
14    operations at a project location that is the subject of
15    that Agreement with the intent to terminate operations in
16    the State, the tax imposed under subsections (a) and (b)
17    of Section 201 of this Act for such taxable year shall be
18    increased by the amount of any credit allowed under the
19    Agreement for that project location prior to the date the
20    taxpayer ceases operations.
21        (6) For purposes of this Section, the terms
22    "Agreement", "Incremental Income Tax", "New Construction
23    EDGE Agreement", "New Construction EDGE Credit", "New
24    Construction EDGE Incremental Income Tax", and
25    "Noncompliance Date" have the same meaning as when used in
26    the Economic Development for a Growing Economy Tax Credit



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1    Act.
2(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
3102-40, eff. 6-25-21; 102-687, eff. 12-17-21.)
4    Section 10. 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
24income tax liability, during the entire 15-year period, no



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1more than 60% of the maximum credit per year that would
2otherwise be available under this Act.
3    (b-5) Notwithstanding subsection (a) or (b), a recipient
4of a credit may request a certificate of transferability of
5credit from the Department for the amount of credit not
6previously claimed. A transferability certificate so issued
7may be transferred or sold by the recipient to another
8Illinois taxpayer. Transferors and sellers shall submit to the
9Department of Revenue a notification of any transfer or sale
10of tax credits within 30 days after the transfer or sale of
11those tax credits. The notification, which shall be in the
12form prescribed by the Department, shall include the
13transferor's tax credit balance prior to transfer, the credit
14certificate number, the identifying number of the EDGE
15agreement, the transferor's remaining tax credit balance after
16transfer, all tax identification numbers for both transferor
17and transferee, the date of transfer, the amount transferred,
18a copy of the credit certificate, and any other information
19required by the Department of Revenue. The transfer or sale of
20the credit does not extend the time in which the credit can be
21used. The carry forward period for a credit that is
22transferred or sold begins on the date on which the credit was
23originally granted by the Department. To the extent the
24transferor did not have rights to claim or use the credit at
25the time of the transfer or sale, the Department of Revenue
26shall either disallow the credit claimed by the transferee or



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1recapture the credit from the transferee through any
2collection method authorized by statute. In such case, the
3transferee's recourse is against the transferor.
4    (c) Nothing in this Section shall prevent the Department,
5in consultation with the Department of Revenue, from adopting
6rules to extend the sunset of any earned, existing, and unused
7tax credit or credits a taxpayer may be in possession of, as
8provided for in Section 605-1070 of the Department of Commerce
9and Economic Opportunity Law of the Civil Administrative Code
10of Illinois, notwithstanding the carry-forward provisions
11pursuant to paragraph (4) of Section 211 of the Illinois
12Income Tax Act.
13(Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)