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90_SB1229
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, 1998. 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.
LRB9008347KDks
LRB9008347KDks
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 2003, in cooperation
8 with the Illinois Department of Revenue, on the effects on
9 the corn-based and soybean-based biodegradable materials
10 markets resulting from the Biodegradable Materials Tax Credit
11 provided in Section 211 of the Illinois Income Tax Act. The
12 Department shall report its findings to the Illinois General
13 Assembly by February 1, 2004.
14 Section 10. The Illinois Income Tax Act is amended by
15 adding Section 211 as follows:
16 (35 ILCS 5/211 new)
17 Sec. 211. Biodegradable Materials Tax Credit.
18 (a) For tax years beginning on or after January 1, 1998
19 and ending before December 30, 2003, each corporation subject
20 to this Act shall be entitled to a credit against the tax
21 imposed by subsections (a) and (b) of Section 201 in an
22 amount equal to 5% of the amount expended by a corporation on
23 biodegradable materials made of corn or soybean products,
24 including, but not limited to, corn-based biodegradable
25 packing peanuts or soybean-based building materials. The
26 Department of Agriculture shall, by rule, determine what
27 materials qualify as biodegradable materials for purposes of
28 this Section. In no instance shall the credit provided in
29 this Section reduce the corporation's liability under this
-2- LRB9008347KDks
1 Act below zero.
2 (b) If the amount of the credit exceeds the tax
3 liability for the year, the excess may be carried forward and
4 applied to the tax liability of the 5 taxable years following
5 the excess credit year. The credit shall be applied to the
6 earliest year for which there is a tax liability. If there
7 are credits from more than one tax year that are available to
8 offset a liability, the earlier credit shall be applied
9 first.
10 Section 99. Effective date. This Act takes effect upon
11 becoming law.