Full Text of HB4565 103rd General Assembly
HB4565ham001 103RD GENERAL ASSEMBLY | Rep. Ryan Spain Filed: 4/2/2024 | | 10300HB4565ham001 | | LRB103 35519 HLH 70063 a |
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| 1 | | AMENDMENT TO HOUSE BILL 4565
| 2 | | AMENDMENT NO. ______. Amend House Bill 4565 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 5. The Illinois Income Tax Act is amended by | 5 | | adding Section 241 as follows: | 6 | | (35 ILCS 5/241 new) | 7 | | Sec. 241. Biobased products credit. | 8 | | (a) For taxable years beginning on or after January 1, | 9 | | 2025, each taxpayer who incurs eligible costs during the | 10 | | taxable year in connection with the production of a biobased | 11 | | product may apply to the Department of Commerce and Economic | 12 | | Opportunity for a credit against the taxes imposed by | 13 | | subsections (a) and (b) of Section 201. The credit may not | 14 | | exceed 25% of those eligible costs. Upon satisfactory review, | 15 | | the Department of Commerce and Economic Opportunity shall | 16 | | issue a tax credit certificate to the applicant stating the |
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| 1 | | amount of the tax credit to which the applicant is entitled. | 2 | | The total aggregate amount of credits awarded under this | 3 | | Section shall not exceed $20,000,000 in any State fiscal year. | 4 | | To be eligible for the credit under this Section, the | 5 | | biobased product must be produced in Illinois; however, the | 6 | | raw materials are not required to be sourced from Illinois. | 7 | | (b) A credit under this Section that is awarded to a | 8 | | partner of a partnership or a shareholder of a subchapter S | 9 | | corporation shall be awarded as provided in Section 251. | 10 | | (c) If the amount of the credit exceeds the tax liability | 11 | | for the year, the excess may be carried forward or carried back | 12 | | and may be applied to the tax liability of the 5 taxable years | 13 | | preceding or following the excess credit year. If the credit | 14 | | is carried forward, the credit shall be applied to the | 15 | | earliest year for which there is a tax liability. If there are | 16 | | credits from more than one tax year that are available to | 17 | | offset a liability, the earlier credit shall be applied first. | 18 | | In no event shall a credit under this Section reduce the | 19 | | taxpayer's liability to less than zero. | 20 | | (c-5) A credit awarded under this Section may, within one | 21 | | year after the credit is awarded, be transferred, in | 22 | | accordance with rules adopted by the Department of Commerce | 23 | | and Economic Opportunity in consultation with the Department | 24 | | of Revenue, by the taxpayer earning the credit. | 25 | | (d) As used in this Section: | 26 | | "Biobased product" means a commercial or industrial |
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| 1 | | product (other than food, fuel, or animal feed) that is | 2 | | derived from raw materials, such as plants and other renewable | 3 | | agricultural, marine, or forestry materials, and that meets | 4 | | either of the following criteria: | 5 | | (1) the product is primarily (at least 50% by weight) | 6 | | composed of biological products verified using ASTM D6866 | 7 | | or equivalent radioisotope testing, including renewable | 8 | | domestic agricultural materials, renewable chemicals, or | 9 | | forestry materials; or | 10 | | (2) the product is an intermediate ingredient or | 11 | | feedstock and 100% of the carbon in the product is from | 12 | | renewable, biological sources verified using ASTM D6866 or | 13 | | equivalent radioisotope testing. | 14 | | "Eligible costs" means: | 15 | | (1) costs associated with studies, surveys, the | 16 | | development of plans and specifications, implementation, | 17 | | and program administration, including, but not limited to, | 18 | | professional services costs, architectural costs, | 19 | | engineering costs, legal costs, financial services costs, | 20 | | and planning and administrative costs; | 21 | | (2) research and development costs; | 22 | | (3) marketing costs; | 23 | | (4) property assembly costs, including, but not | 24 | | limited to, costs associated with the acquisition of land | 25 | | and other real or personal property or rights or interests | 26 | | in property, demolition of buildings, and site |
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| 1 | | preparation; | 2 | | (5) costs of rehabilitation, reconstruction, repair, | 3 | | or remodeling of existing buildings; | 4 | | (6) costs of construction of new buildings; | 5 | | (7) costs of construction of public works or | 6 | | improvements related to business development, including, | 7 | | but not limited to, streets, sidewalks, water service, and | 8 | | sanitary and storm sewer service; | 9 | | (8) costs of eliminating or removing contaminants and | 10 | | other impediments; including, but not limited to, site | 11 | | improvements, the installation of parking lots and other | 12 | | concrete or asphalt barriers, and the clearing or grading | 13 | | of land; | 14 | | (9) costs associated with job training and retraining; | 15 | | (10) up to 30% of the financing costs; and | 16 | | (11) costs of capital equipment purchases. | 17 | | (e) The Department of Commerce and Economic Opportunity | 18 | | shall adopt rules to implement this Section. | 19 | | (f) This Section is exempt from the provisions of Section | 20 | | 250. | 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.". |
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