SB1835 104TH GENERAL ASSEMBLY

LRB104 03835 HLH 13859 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1835

Introduced 2/5/2025, by Sen. Chapin Rose

SYNOPSIS AS INTRODUCED:

35 ILCS 5/235 new

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of those expenditures. Provides that the total amount of credits awarded under these provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount awarded for any particular taxpayer in any taxable year shall be $20,000,000. 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 5. The Illinois Income Tax Act is amended by adding Section 235 as follows:

(35 ILCS 5/235 new)

Sec. 235. Manufacturing capital expenditure credit. For taxable years that begin on or after January 1, 2025 and begin prior to January 1, 2036, each taxpayer that is engaged in the business of manufacturing (North American Industry Classification System code 31-33) is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 in an amount equal to 10% of the capital expenditures incurred by the taxpayer during the taxable year that are related to manufacturing. The total amount of credits awarded under this Section may not exceed $10,000,000 for any particular taxpayer in any taxable year. However, notwithstanding any other provision of this Section, if the capital investment is made in a rural or economically challenged area, as determined by the Department of Commerce and Economic Opportunity, then the amount of the credit shall be 15% of the capital expenditure, and the maximum amount awarded under this Section for any particular taxpayer in any taxable year shall be $20,000,000. A taxpayer may not claim a credit under this Section if the taxpayer claims a credit against the taxes imposed by subsections (a) and (b) of Section 201 for the same capital expenditure under any other provision of law.

In no event shall a credit under this Section reduce the taxpayer's liability under this Act to less than zero. The credit may not be carried forward or back.

Section 99. Effective date. This Act takes effect upon becoming law.