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90_HB1116eng
20 ILCS 205/40.30 new
35 ILCS 5/211 new
Amends the Civil Administrative Code of Illinois and the
Illinois Income Tax Act. Creates an income tax credit for
corporations in an amount equal to 5% of the amounts spent by
the corporation during the taxable year on biodegradable
materials made of corn or soybean products. Provides that
the credit may be carried forward for 5 years. Provides that
in no event shall the credit reduce the corporation's tax
liability to below zero. Provides that the credit applies to
tax years beginning on or after January 1, 1997. Sunsets the
credit after 5 years. Requires the Department of Agriculture,
in cooperation with the Department of Revenue, to study the
effect of the credit on the corn-based and soybean-based
biodegradable materials markets at the end of the 5-year
period. Effective immediately.
LRB9004535KDcd
HB1116 Engrossed LRB9004535KDcd
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Civil Administrative Code of Illinois is
5 amended by adding Section 40.30 as follows:
6 (20 ILCS 205/40.30 new)
7 Sec. 40.30. To conduct a study in 2002, in cooperation
8 with the Illinois Department of Revenue, on the effects on
9 the corn-based and soybean-based biodegradable and
10 biocomposite materials markets resulting from the
11 Biodegradable and Biocomposite Materials Tax Credit provided
12 in Section 211 of the Illinois Income Tax Act. The
13 Department shall report its findings to the Illinois General
14 Assembly by February 1, 2003.
15 Section 10. The Illinois Income Tax Act is amended by
16 adding Section 211 as follows:
17 (35 ILCS 5/211 new)
18 Sec. 211. Biodegradable and Biocomposite Materials Tax
19 Credit.
20 (a) For tax years beginning on or after January 1, 1997
21 and ending before December 30, 2002, each corporation subject
22 to this Act shall be entitled to a credit against the tax
23 imposed by subsections (a) and (b) of Section 201 in an
24 amount equal to 5% of the amount expended by a corporation on
25 biodegradable and biocomposite materials made of corn or
26 soybean products, including, but not limited to, corn-based
27 biodegradable and biocomposite packing peanuts or
28 soybean-based biodegradable and biocomposite building
29 materials. The Department of Revenue shall, by rule,
HB1116 Engrossed -2- LRB9004535KDcd
1 determine what materials qualify as biodegradable and
2 biocomposite materials for purposes of this Section. In no
3 instance shall the credit provided in this Section reduce the
4 corporation's liability under this Act below zero.
5 (b) If the amount of the credit exceeds the tax
6 liability for the year, the excess may be carried forward and
7 applied to the tax liability of the 5 taxable years following
8 the excess credit year. The credit shall be applied to the
9 earliest year for which there is a tax liability. If there
10 are credits from more than one tax year that are available to
11 offset a liability, the earlier credit shall be applied
12 first.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.