Illinois General Assembly - Full Text of HB2832

LRB104 07492 HLH 17535 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2832

Introduced 2/6/2025, by Rep. Charles Meier

SYNOPSIS AS INTRODUCED:

New Act
5 ILCS 140/7.5
35 ILCS 5/246 new

Creates the Short Line Railroad Infrastructure Modernization Act. Provides that (i) any railroad company that is located wholly or partly within the State and that is classified by the United States Surface Transportation Board as a Class II or a Class III railroad and (ii) any owner or lessee of a rail siding, industrial spur, or industry track located on or adjacent to any railroad in the State may apply to the Department of Transportation for an income tax credit. Provides that the amount of the credit shall be equal to 50% of the qualified railroad reconstruction or replacement expenditures incurred by the eligible taxpayer during the taxable year, but not to exceed certain specified limitations. Provides that the credit may be transferred to an eligible transferee. Amends the Freedom of Information Act and the Illinois Income Tax Act to make conforming changes. 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 1. Short title. This Act may be cited as the Short Line Railroad Infrastructure Modernization Act.

Section 5. Definitions. As used in this Act:

"Applicant" means an applicant for a credit under this Act.

"Credit" means the Short Line Railroad Infrastructure Modernization Credit awarded under this Act.

"Department" means the Department of Transportation.

"Eligible taxpayer" means:

(1) any railroad company located wholly or partly within the State that is classified by the United States Surface Transportation Board as a Class II or a Class III railroad; and

(2) any owner or lessee of a rail siding, industrial spur, or industry track located on or adjacent to any railroad in the State.

"Eligible transferee" means any taxpayer that is subject to tax under the Illinois Income Tax Act.

"Qualified railroad reconstruction or replacement expenditures" means the gross expenditures incurred by the eligible taxpayer in the taxable year for:

(1) maintenance, reconstruction, or replacement of railroad infrastructure;

(2) new construction of industrial leads, switches, spurs, and sidings in Illinois by a Class II or a Class III railroad; and

(3) extensions of existing sidings in Illinois by a Class II or a Class III railroad.

"Railroad infrastructure" means track, roadbed, bridges, industrial leads and sidings, and track-related structures owned or leased by a Class II or Class III railroad in Illinois as of January 1, 2024.

Section 10. Credit award. For taxable years that begin on or after January 1, 2026 and begin before January 1, 2036, an eligible taxpayer may apply to the Department, in the form and manner required by the Department by rule, for a credit against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act. The credit under this Act shall be in an amount equal to 50% of the qualified railroad reconstruction or replacement expenditures incurred by the eligible taxpayer during the taxable year, not to exceed, for any eligible taxpayer in any taxable year, the product of: (i) $3,500 or the amount per mile specified in subparagraph (A) of paragraph (1) of subsection (b) of 26 U.S.C. 45G as of the first day of the taxable year for which the credit is claimed if the number specified in that Section at that time is not $3,500; multiplied by (ii) the number of miles of railroad track that are owned or leased within the State by the eligible taxpayer and for which the taxpayer made qualified railroad reconstruction or replacement expenditures as of December 31 of the taxable year for which the credit under this Act is claimed.

In no event shall a credit under this Section reduce the taxpayer's liability under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act 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 of 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 a liability, the earlier credit shall be applied first. The credit under this Act is nonrefundable.

The Department may not award more than $5,000,000 in credits under this Act in any calendar year.

Section 15. Credit certificate. The Department shall issue a tax credit certificate to each eligible taxpayer who is awarded tax credits under this Act. The eligible taxpayer shall attach the tax credit certificate to the eligible taxpayer's Illinois income tax return.

Section 20. Transferability; written agreement required. An eligible taxpayer may transfer the credit awarded under this Act by written agreement with an eligible transferee. The amount of the transferred credit is limited to the unused, remaining portion of the credit.

The eligible taxpayer and the eligible transferee must jointly file a copy of the written transfer agreement with the Department within 30 days of the transfer. The written agreement must contain:

(1) the name, address, and taxpayer identification number of the parties to the transfer;

(2) the taxable year in which the eligible taxpayer incurred the qualified railroad reconstruction or replacement expenditures;

(3) the amount of credit being transferred; and

(4) the taxable year or years for which the transferred credit may be claimed by the eligible transferee.

If approved, the Department must issue a credit certificate to the eligible transferee within 30 days of the joint filing of a copy of the written transfer agreement with the Department.

In the case of an audit or assessment, the transferee is liable for the repayment of credits claimed under this Section in excess of the allowed amount.

Section 25. Pass-through entities. For partners and shareholders of Subchapter S corporations, the provisions of Section 251 of the Illinois Income Tax Act shall apply with respect to the credit under this Act.

Section 30. Rules; powers of the Department. The Department of Transportation, in conjunction with the Department of Revenue, has the power to carry out and effectuate the purposes and provisions of this Act, including, but not limited to, the power to:

(1) adopt rules deemed necessary and appropriate for the implementation of this Act;

(2) establish forms for applications, notifications, contracts, or any other agreements;

(3) assist taxpayers pursuant to the provisions of this Act and cooperate with taxpayers that are parties to agreements under this Act; and

(4) take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of financial assistance or participation required under this Act, including the power to sell, dispose, lease, or rent, upon terms and conditions determined by the Director to be appropriate, real or personal property that the Department may receive as a result of these actions.

Section 35. Terms and conditions. Any documentary materials or data made available or received from an applicant by any agent or employee of the Department are confidential and are not public records to the extent that the materials or data consist of commercial or financial information regarding the operation of or the production of the applicant or recipient of any tax credit award under this Act.

Section 40. Repeal. This Act is repealed on January 1, 2037.

Section 900. The Freedom of Information Act is amended by changing Section 7.5 as follows:

(5 ILCS 140/7.5)

Sec. 7.5. Statutory exemptions. To the extent provided for by the statutes referenced below, the following shall be exempt from inspection and copying:

(a) All information determined to be confidential under Section 4002 of the Technology Advancement and Development Act.

(b) Library circulation and order records identifying library users with specific materials under the Library Records Confidentiality Act.

(c) Applications, related documents, and medical records received by the Experimental Organ Transplantation Procedures Board and any and all documents or other records prepared by the Experimental Organ Transplantation Procedures Board or its staff relating to applications it has received.

(d) Information and records held by the Department of Public Health and its authorized representatives relating to known or suspected cases of sexually transmitted infection or any information the disclosure of which is restricted under the Illinois Sexually Transmitted Infection Control Act.

(e) Information the disclosure of which is exempted under Section 30 of the Radon Industry Licensing Act.

(f) Firm performance evaluations under Section 55 of the Architectural, Engineering, and Land Surveying Qualifications Based Selection Act.

(g) Information the disclosure of which is restricted and exempted under Section 50 of the Illinois Prepaid Tuition Act.

(h) Information the disclosure of which is exempted under the State Officials and Employees Ethics Act, and records of any lawfully created State or local inspector general's office that would be exempt if created or obtained by an Executive Inspector General's office under that Act.

(i) Information contained in a local emergency energy plan submitted to a municipality in accordance with a local emergency energy plan ordinance that is adopted under Section 11-21.5-5 of the Illinois Municipal Code.

(j) Information and data concerning the distribution of surcharge moneys collected and remitted by carriers under the Emergency Telephone System Act.

(k) Law enforcement officer identification information or driver identification information compiled by a law enforcement agency or the Department of Transportation under Section 11-212 of the Illinois Vehicle Code.

(l) Records and information provided to a residential health care facility resident sexual assault and death review team or the Executive Council under the Abuse Prevention Review Team Act.

(m) Information provided to the predatory lending database created pursuant to Article 3 of the Residential Real Property Disclosure Act, except to the extent authorized under that Article.

(n) Defense budgets and petitions for certification of compensation and expenses for court appointed trial counsel as provided under Sections 10 and 15 of the Capital Crimes Litigation Act (repealed). This subsection (n) shall apply until the conclusion of the trial of the case, even if the prosecution chooses not to pursue the death penalty prior to trial or sentencing.

(o) Information that is prohibited from being disclosed under Section 4 of the Illinois Health and Hazardous Substances Registry Act.

(p) Security portions of system safety program plans, investigation reports, surveys, schedules, lists, data, or information compiled, collected, or prepared by or for the Department of Transportation under Sections 2705-300 and 2705-616 of the Department of Transportation Law of the Civil Administrative Code of Illinois, the Regional Transportation Authority under Section 2.11 of the Regional Transportation Authority Act, or the St. Clair County Transit District under the Bi-State Transit Safety Act (repealed).

(q) Information prohibited from being disclosed by the Personnel Record Review Act.

(r) Information prohibited from being disclosed by the Illinois School Student Records Act.

(s) Information the disclosure of which is restricted under Section 5-108 of the Public Utilities Act.

(t) (Blank).

(u) Records and information provided to an independent team of experts under the Developmental Disability and Mental Health Safety Act (also known as Brian's Law).

(v) Names and information of people who have applied for or received Firearm Owner's Identification Cards under the Firearm Owners Identification Card Act or applied for or received a concealed carry license under the Firearm Concealed Carry Act, unless otherwise authorized by the Firearm Concealed Carry Act; and databases under the Firearm Concealed Carry Act, records of the Concealed Carry Licensing Review Board under the Firearm Concealed Carry Act, and law enforcement agency objections under the Firearm Concealed Carry Act.

(v-5) Records of the Firearm Owner's Identification Card Review Board that are exempted from disclosure under Section 10 of the Firearm Owners Identification Card Act.

(w) Personally identifiable information which is exempted from disclosure under subsection (g) of Section 19.1 of the Toll Highway Act.

(x) Information which is exempted from disclosure under Section 5-1014.3 of the Counties Code or Section 8-11-21 of the Illinois Municipal Code.

(y) Confidential information under the Adult Protective Services Act and its predecessor enabling statute, the Elder Abuse and Neglect Act, including information about the identity and administrative finding against any caregiver of a verified and substantiated decision of abuse, neglect, or financial exploitation of an eligible adult maintained in the Registry established under Section 7.5 of the Adult Protective Services Act.

(z) Records and information provided to a fatality review team or the Illinois Fatality Review Team Advisory Council under Section 15 of the Adult Protective Services Act.

(aa) Information which is exempted from disclosure under Section 2.37 of the Wildlife Code.

(bb) Information which is or was prohibited from disclosure by the Juvenile Court Act of 1987.

(cc) Recordings made under the Law Enforcement Officer-Worn Body Camera Act, except to the extent authorized under that Act.

(dd) Information that is prohibited from being disclosed under Section 45 of the Condominium and Common Interest Community Ombudsperson Act.

(ee) Information that is exempted from disclosure under Section 30.1 of the Pharmacy Practice Act.

(ff) Information that is exempted from disclosure under the Revised Uniform Unclaimed Property Act.

(gg) Information that is prohibited from being disclosed under Section 7-603.5 of the Illinois Vehicle Code.

(hh) Records that are exempt from disclosure under Section 1A-16.7 of the Election Code.

(ii) Information which is exempted from disclosure under Section 2505-800 of the Department of Revenue Law of the Civil Administrative Code of Illinois.

(jj) Information and reports that are required to be submitted to the Department of Labor by registering day and temporary labor service agencies but are exempt from disclosure under subsection (a-1) of Section 45 of the Day and Temporary Labor Services Act.

(kk) Information prohibited from disclosure under the Seizure and Forfeiture Reporting Act.

(ll) Information the disclosure of which is restricted and exempted under Section 5-30.8 of the Illinois Public Aid Code.

(mm) Records that are exempt from disclosure under Section 4.2 of the Crime Victims Compensation Act.

(nn) Information that is exempt from disclosure under Section 70 of the Higher Education Student Assistance Act.

(oo) Communications, notes, records, and reports arising out of a peer support counseling session prohibited from disclosure under the First Responders Suicide Prevention Act.

(pp) Names and all identifying information relating to an employee of an emergency services provider or law enforcement agency under the First Responders Suicide Prevention Act.

(qq) Information and records held by the Department of Public Health and its authorized representatives collected under the Reproductive Health Act.

(rr) Information that is exempt from disclosure under the Cannabis Regulation and Tax Act.

(ss) Data reported by an employer to the Department of Human Rights pursuant to Section 2-108 of the Illinois Human Rights Act.

(tt) Recordings made under the Children's Advocacy Center Act, except to the extent authorized under that Act.

(uu) Information that is exempt from disclosure under Section 50 of the Sexual Assault Evidence Submission Act.

(vv) Information that is exempt from disclosure under subsections (f) and (j) of Section 5-36 of the Illinois Public Aid Code.

(ww) Information that is exempt from disclosure under Section 16.8 of the State Treasurer Act.

(xx) Information that is exempt from disclosure or information that shall not be made public under the Illinois Insurance Code.

(yy) Information prohibited from being disclosed under the Illinois Educational Labor Relations Act.

(zz) Information prohibited from being disclosed under the Illinois Public Labor Relations Act.

(aaa) Information prohibited from being disclosed under Section 1-167 of the Illinois Pension Code.

(bbb) Information that is prohibited from disclosure by the Illinois Police Training Act and the Illinois State Police Act.

(ccc) Records exempt from disclosure under Section 2605-304 of the Illinois State Police Law of the Civil Administrative Code of Illinois.

(ddd) Information prohibited from being disclosed under Section 35 of the Address Confidentiality for Victims of Domestic Violence, Sexual Assault, Human Trafficking, or Stalking Act.

(eee) Information prohibited from being disclosed under subsection (b) of Section 75 of the Domestic Violence Fatality Review Act.

(fff) Images from cameras under the Expressway Camera Act. This subsection (fff) is inoperative on and after July 1, 2025.

(ggg) Information prohibited from disclosure under paragraph (3) of subsection (a) of Section 14 of the Nurse Agency Licensing Act.

(hhh) Information submitted to the Illinois State Police in an affidavit or application for an assault weapon endorsement, assault weapon attachment endorsement, .50 caliber rifle endorsement, or .50 caliber cartridge endorsement under the Firearm Owners Identification Card Act.

(iii) Data exempt from disclosure under Section 50 of the School Safety Drill Act.

(jjj) Information exempt from disclosure under Section 30 of the Insurance Data Security Law.

(kkk) Confidential business information prohibited from disclosure under Section 45 of the Paint Stewardship Act.

(lll) Data exempt from disclosure under Section 2-3.196 of the School Code.

(mmm) Information prohibited from being disclosed under subsection (e) of Section 1-129 of the Illinois Power Agency Act.

(nnn) Materials received by the Department of Commerce and Economic Opportunity that are confidential under the Music and Musicians Tax Credit and Jobs Act.

(ooo) (nnn) Data or information provided pursuant to Section 20 of the Statewide Recycling Needs and Assessment Act.

(ppp) (nnn) Information that is exempt from disclosure under Section 28-11 of the Lawful Health Care Activity Act.

(qqq) (nnn) Information that is exempt from disclosure under Section 7-101 of the Illinois Human Rights Act.

(rrr) (mmm) Information prohibited from being disclosed under Section 4-2 of the Uniform Money Transmission Modernization Act.

(sss) (nnn) Information exempt from disclosure under Section 40 of the Student-Athlete Endorsement Rights Act.

(ttt) Information that is confidential under Section 35 of the Short Line Railroad Infrastructure Modernization Act.

(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; 103-592, eff. 6-7-24; 103-605, eff. 7-1-24; 103-636, eff. 7-1-24; 103-724, eff. 1-1-25; 103-786, eff. 8-7-24; 103-859, eff. 8-9-24; 103-991, eff. 8-9-24; 103-1049, eff. 8-9-24; revised 11-26-24.)

Section 905. The Illinois Income Tax Act is amended by adding Section 246 as follows:

(35 ILCS 5/246 new)

Sec. 246. Short Line Railroad Infrastructure Modernization Act. Taxpayers who are awarded a credit by the Department of Transportation under the Short Line Railroad Infrastructure Modernization Act may claim a credit against the tax imposed by subsections (a) and (b) of Section 201 as provided in that Act.

Section 999. Effective date. This Act takes effect upon becoming law.