Section 531.30  Tax Credit Directives

a)         For taxable years beginning after December 31, 2010 and ending on or before December 31, 2026, subject to the limitations provided in the Act, a claimant may claim, as a credit against the tax imposed under Section 201(a) and (b) of the Act, an amount equal to 25% of the claimant's investment made directly in a qualified new business venture. However, effective January 1, 2024, the amount of the credit is 35% of the claimant's investment made directly in the qualified new business venture if the investment is made in:

1)         a qualified new business venture that is:

A)        a minority-owned business, defined as, a business which is at least 51% owned by one or more minority persons, or in the case of a corporation, at least 51% of the stock in which is owned by one or more minority persons or in the case of a corporation, at least 51% of the stock in which is owned by one or more minority persons; and the management and daily business operations of which are controlled by one or more of the minority individuals who own it;

B)        a women-owned business, defined as, a business which is at least 51% owned by one or more women, or, in the case of a corporation, at least 51% of the stock in which is owned by one or more women; and the management and daily business operations of which are controlled by one or more of the women who own it; or

C)        a business owned by a person with a disability, defined as, a business that is at least 51% owned by one or more persons with a disability and the management and daily business operations of which are controlled by one or more persons with disabilities that is exempt from taxation under Section 501 of the Internal Revenue Code of 1986 is also considered a "business owned by a person with a disability" [30 ILCS 575/2(A)]; or

2)         a qualified new business venture in which the principal place of business is located in a county with population of not more than 250,000.  [35 ILCS 5/220(b)]

b)         The credit under this Section may not exceed the taxpayer's Illinois income tax liability for the taxable year. 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 credit shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, the earlier credit shall be applied first. In the case of a partnership or subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under sections 702 and 704 and subchapter S of the Internal Revenue Code (26 U.S.C. 702, 704 and subchapter S). [35 ILCS 5/220(b)]

c)         The minimum amount an applicant must invest in any single qualified new business venture in order to be eligible for a credit under the Act is $10,000. The maximum amount of an applicant's total investment in any single qualified new business venture that may be used as the basis for a credit under the Act is $2,000,000.  [35 ILCS 5/220(c)]

d)         The aggregate amount of the tax credits that may be claimed under the Act for investments made in qualified new business ventures shall be limited to $15,000,000 per calendar year, of which $5,000,000 will be reserved for certain qualified new business ventures as set forth in Section 531.55. [35 ILCS 5/220(f)] 

e)         A claimant may not sell or otherwise transfer a credit award under the Act to another person or entity. [35 ILCS 5/220(g)]

(Source:  Amended at 48 Ill. Reg. 11949, effective July 29, 2024)