103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5424
 
Introduced 2/9/2024, by Rep. Michael J. Coffey, Jr.
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/241 new
    Amends the Illinois Income Tax Act. Creates an income tax credit for fire equipment distributors that are actively researching and developing alternative fire prevention equipment that contains no perfluoroalkyl or polyfluoroalkyl substances. Provides that the credit is in an amount equal to 75% of the amount expended during the taxable year to actively develop that equipment. Effective immediately.


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A BILL FOR
 
HB5424LRB103 37922 HLH 68054 b

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 
5adding Section 241 as follows:
 
6    (35 ILCS 5/241 new)
7    Sec. 241. Fire prevention equipment credit.
8    (a) For taxable years beginning on or after January 1, 
92025 and beginning before January 1, 2035, each taxpayer that 
10is engaged in business as a fire equipment distributor and 
11that is actively researching and developing alternative fire 
12prevention equipment that contains no perfluoroalkyl or 
13polyfluoroalkyl substances, or PFAS, may apply to the Office 
14for a credit against the taxes imposed by subsections (a) and 
15(b) of Section 201 in an amount equal to 75% of the amount 
16expended by the taxpayer during the taxable year to actively 
17develop that equipment. 
18    (b) In no event may the Office award more than $5,000,000 
19in credits under this Section in any taxable year. 
20    (c) In no event shall a credit under this Section reduce a 
21taxpayer's liability to less than zero. If the amount of 
22credit exceeds the tax liability for the year, the excess may 
23be carried forward and applied to the tax liability for the 5 
 
 
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1taxable years following the excess credit year. The tax credit 
2shall be applied to the earliest year for which there is a tax 
3liability. If there are credits for more than one year that are 
4available to offset liability, the earlier credit shall be 
5applied first. 
6    (d) As used in this Section: 
7    "Fire equipment distributor" means any person, company, or 
8corporation that services, recharges, hydro-tests, inspects, 
9installs, maintains, alters, repairs, or replaces fire 
10extinguishers, fire suppression devices, or fire suppression 
11systems. "Fire equipment distributor" does not include a 
12person, company, or corporation that works exclusively on 
13water sprinklers or a person, company, or corporation that 
14only hydro-tests cylinders that store extinguishment 
15materials. 
16    "Fire prevention equipment" means equipment that is used 
17by a fire department to actively prevent or extinguish fire 
18hazards and that is known to contain PFAS, including, but not 
19limited to, foam products or gear used by firefighters. 
20    "Office" means the Office of the State Fire Marshal. 
 
21    Section 99. Effective date. This Act takes effect upon 
22becoming law.