104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3419
 
Introduced 2/18/2025, by Rep. Elizabeth "Lisa" Hernandez
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/246 new
    Amends the Illinois Income Tax Act. Creates an income tax credit for each taxpayer that manufactures renewable diesel in Illinois for use by a rail carrier. Provides that the amount of the credit is $1 per gallon of renewable diesel that is manufactured by the taxpayer in the State for use by a rail carrier. Effective immediately.


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A BILL FOR
 
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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 246 as follows:
 
6    (35 ILCS 5/246 new)
7    Sec. 246. Rail carrier renewable diesel tax credit.
8    (a) For taxable years beginning on or after January 1, 
92027, each taxpayer that manufactures renewable diesel in 
10Illinois for use by a rail carrier is eligible for a credit 
11against the tax imposed by subsections (a) and (b) of Section 
12201 as provided in this Section. 
13    The amount of the credit shall be $1 per gallon, or 
14fraction of a gallon, of renewable diesel that is manufactured 
15by the taxpayer in the State for use by a rail carrier. 
16    (b) To qualify for the credit under this Section, the 
17taxpayer must retain in its books and records: 
18        (1) records indicating the number of whole gallons of 
19    renewable diesel manufactured by the taxpayer in Illinois 
20    for use by a rail carrier; and 
21        (2) a verification that the renewable diesel blended 
22    by the taxpayer meets the definition of renewable diesel 
23    set forth in this Section. 
 
 
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1    The documentation must include detail sufficient for the 
2Department to determine the number of gallons of renewable 
3diesel manufactured in the State for use by rail carriers, as 
4well as any other information reasonably required by the 
5Department. 
6    All documentation must be submitted to the Department in 
7the form and manner required by the Department and by the date 
8required by the Department. 
9    (c) If the amount of the credit exceeds the taxpayer's tax 
10liability for the taxable year, the excess may be carried 
11forward and applied to the tax liability of the 10 taxable 
12years following the excess credit year. The credit shall be 
13applied to the earliest year for which there is a tax 
14liability. If there are credits from more than one tax year 
15that are available to offset a liability, the earlier credit 
16shall be applied first. In no event shall a credit under this 
17Section reduce the taxpayer's liability to less than zero. 
18    (d) This Section is exempt from the provisions of Section 
19250. 
20    (e) As used in this Section: 
21    "Renewable diesel" means diesel fuel that is a hydrocarbon 
22fuel derived from biomass and that meets the requirements of 
23the latest version of ASTM standards D975 or D396. 
24    "Rail carrier" means a Class I railroad, a Class II 
25railroad, or a Class III railroad, as defined in paragraph (1) 
26of 49 U.S.C. 20102. 
 
 
 
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1    Section 99. Effective date. This Act takes effect upon 
2becoming law.