HB1250 103RD GENERAL ASSEMBLY

LRB103 05265 SPS 50283 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1250

Introduced 1/31/2023, by Rep. Michael T. Marron

SYNOPSIS AS INTRODUCED:

5 ILCS 100/5-45.34 new
35 ILCS 5/240 new

Amends the Illinois Income Tax Act. Creates an energy price relief income tax credit. Sets forth the amount of the credit, which shall be a percentage of the total amount paid by the taxpayer during the taxable year for energy supplied to a property in the State. Provides that the Department of Commerce and Economic Opportunity may award no more than $50,000,000 in credits under these provisions in any fiscal year. Provides that the credit may be carried forward. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 3. The Illinois Administrative Procedure Act is amended by adding Section 5-45.34 as follows:

(5 ILCS 100/5-45.34 new)

Sec. 5-45.34. Emergency rulemaking. To provide for the expeditious and timely implementation of this amendatory Act of the 103rd General Assembly, emergency rules implementing this amendatory Act of the 103rd General Assembly may be adopted in accordance with Section 5-45 by the Department of Commerce and Economic Opportunity. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 103rd General Assembly.

Section 5. The Illinois Income Tax Act is amended by adding Section 240 as follows:

(35 ILCS 5/240 new)

Sec. 240. Energy price relief credit.

(a) Subject to the limitations set forth in subsection (c), for taxable years beginning on or after January 1, 2023, each taxpayer who is liable for making payments for energy supplied to a property in the State is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act as provided in subsection (b). If the property is subject to a lease agreement, then the lessee is deemed to be liable for making payments for energy if the terms of the lease require the lessee to make those payments or the lessee provides to the Department of Commerce and Economic Opportunity such other evidence of the lessee's obligation to make those payments as may be accepted by the Department of Commerce and Economic Opportunity.

(b) The amount of the credit under this Section shall be the product that results from multiplying: (i) the total amount paid by the taxpayer during the taxable year for energy supplied to a property in the State; by (ii) the percentage increase during the taxable year in the Consumer Price Index for All Urban Consumers for the Midwest Region: Electricity in U.S. City Average, published by the United States Department of Labor, Bureau of Labor Statistics; and then by (iii) 0.1.

(c) Each taxpayer who claims a credit under this Section shall apply for a certificate of eligibility from the Department of Commerce and Economic Opportunity. The Department of Commerce and Economic Opportunity may award no more than $50,000,000 in credits under this Section in any State fiscal year. Credits shall be awarded on a first-come-first-served basis. The Department of Commerce and Economic Opportunity shall adopt rules to implement this Section, including, but not limited to, rules concerning the allocation of credits when more than one taxpayer is entitled to claim a credit under this Section for the same utility payment.

(d) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset liability, then the earlier credit shall be applied first.

(e) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.