100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3672

 

Introduced , by Rep. Avery Bourne

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to $4 multiplied by the tons of qualified coal refuse used to generate electricity at an eligible facility in this State in the previous taxable year.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 adding
5Section 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Coal Refuse Energy and Reclamation Tax Credit.
8    (a) For taxable years beginning on or after January 1,
92017, a qualified taxpayer shall receive a credit against the
10tax imposed by subsections (a) and (b) of Section 201 in an
11amount equal to $4 multiplied by the tons of qualified coal
12refuse used to generate electricity at an eligible facility in
13this State in the previous taxable year. The qualified taxpayer
14may apply to the Department of Commerce and Economic
15Opportunity for a credit award under this Section. The
16application shall be in the form and manner required by the
17Department of Commerce and Economic Opportunity by rule. In the
18review of applications for tax credits, the Department of
19Commerce and Economic Opportunity shall consult with the
20Illinois Environmental Protection Agency with respect to
21whether a facility qualifies as an eligible facility and to
22review the eligible facility's calculation of the amount of
23qualified coal refuse used to generate electricity.

 

 

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1    (b) In no event shall a credit under this Section reduce
2the taxpayer's liability to less than zero. If the amount of
3the credit exceeds the tax liability for the year, the excess
4may be carried forward and applied to the tax liability of the
55 taxable years following the excess credit year. The tax
6credit shall be applied to the earliest year for which there is
7a tax liability. If there are credits for more than one year
8that are available to offset a liability, the earlier credit
9shall be applied first.
10    (c) As used in this Section:
11    "Affiliate" means a person that directly or indirectly
12through one or more intermediaries controls, is controlled by,
13or is under common control with a qualified taxpayer.
14    "Eligible facility" means an electric generating facility
15placed in service before the effective date of this amendatory
16Act of the 100th General Assembly consisting of one or more
17units placed in service before the effective date of this
18amendatory Act of the 100th General Assembly that generates
19electricity located on the same property and that:
20        (1) combusts qualified coal refuse or fuel composed of
21    at least 75% qualified coal refuse by BTU energy value in
22    the prior calendar year;
23        (2) utilizes at a minimum a circulating fluidized bed
24    combustion unit or pressurized fluidized bed combustion
25    unit equipped with a limestone injection system for control
26    of acid gases and a fabric filter particulate emission

 

 

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1    control system; and
2        (3) beneficially uses ash produced by the facility in
3    the prior calendar year to reclaim mining-affected sites in
4    amounts equal to at least 50% of the ash produced by the
5    facility in the prior calendar year.
6    "Qualified coal refuse" means any waste coal, rock, shale,
7slurry, slate, clay and related materials associated with or
8near a coal seam that are either brought above ground or
9otherwise removed from a coal mine in the process of mining
10coal or that are separated from coal during the cleaning or
11preparation operations. The term includes underground
12development wastes, coal processing wastes, and excess spoil,
13but does not include overburden from surface mining activities.
14    "Qualified taxpayer" means a person who owns an eligible
15facility in this State or is a transferor, purchaser,
16affiliate, or assignee of a person to whom a tax credit
17certificate is issued under this Section.
18    (c) This Section is exempt from the provisions of Section
19250.