103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3131
 
Introduced 2/2/2024, by Sen. Patrick J. Joyce
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/241 new
    Amends the Illinois Income Tax Act. Provides that each taxpayer that manufactures renewable diesel in Illinois is eligible for an income tax credit equal to $1 per whole gallon of renewable diesel manufactured by the taxpayer in Illinois and sold to a purchaser in Illinois. Effective immediately.


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A BILL FOR
 
SB3131LRB103 39008 HLH 69291 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. Renewable Diesel Tax Credit.
8    (a) For taxable years beginning on or after January 1, 
92027, each taxpayer that manufactures and sells renewable 
10diesel in Illinois is eligible for a credit against the tax 
11imposed by subsections (a) and (b) of Section 201 as provided 
12in this Section. The credit shall be in an amount equal to $1 
13per whole gallon of renewable diesel that is both manufactured 
14in Illinois and sold to a purchaser in Illinois. The credit 
15under this Section is not available for the manufacture of 
16partial gallons of renewable diesel. 
17    (b) To qualify for the credit, the taxpayer must retain in 
18its books and records: 
19        (1) records indicating the number of whole gallons of 
20    renewable diesel manufactured by the taxpayer in Illinois 
21    and sold to a purchaser in Illinois; and 
22        (2) a verification that the renewable diesel 
23    manufactured by the taxpayer meets the definition of 
 
 
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1    renewable diesel as defined in this Act. 
2    The documentation must include detail sufficient for the 
3Department to determine the number of gallons of renewable 
4diesel manufactured and purchased within Illinois, as well as 
5any other information reasonably required by the Department. 
6All documentation must be submitted to the Department by the 
7date and manner in which the Department requires. 
8    (c) If the amount of the credit exceeds the tax liability 
9for the year, the excess may be carried forward and applied to 
10the tax liability of the 10 taxable years following the excess 
11credit year. The credit shall be applied to the earliest year 
12for which there is a tax liability. If there are credits from 
13more than one tax year that are available to offset a 
14liability, the earlier credit shall be applied first. In no 
15event shall a credit under this Section reduce the taxpayer's 
16liability to less than zero. 
17    (d) This Section is exempt from the provisions of Section 
18250. 
19    (e) As used in this Section: 
20    "Department" means the Department of Revenue. 
21    "Renewable diesel" means diesel fuel that is a hydrocarbon 
22fuel derived from biomass meeting the requirements of the 
23latest version of ASTM standards D975 or D396. Fuel that has 
24been co-processed is not considered renewable diesel. 
 
25    Section 99. Effective date. This Act takes effect upon 
26becoming law.