SB3665 104TH GENERAL ASSEMBLY

LRB104 18872 HLH 32317 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3665

Introduced 2/5/2026, by Sen. Christopher Belt

SYNOPSIS AS INTRODUCED:

35 ILCS 5/246 new

Amends the Illinois Income Tax Act. Provides that a qualified taxpayer may apply to the Department of Revenue for an income tax credit in an amount equal to 20% of the wages paid by the qualified taxpayer to a qualified energy choice worker based in Illinois in the taxable year. Provides that the term "qualified taxpayer" means a taxpayer that is a regulated utility in the State of Illinois or a power generating company providing baseload or intermediate generation in Illinois and that meets specified criteria and is able to demonstrate an adverse and material operational impact to either its overall Illinois-based workforce or its ability to conduct business in Illinois based on the scheduled phaseout target dates of 2030, 2035, 2040, and 2045, as provided in Public Act 102-662. Sets forth limitations on the amount of the credit. 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 246 as follows:

(35 ILCS 5/246 new)

Sec. 246. Credit to support Illinois energy choice and workforce retention.

(a) For taxable years ending on or after December 31, 2026 and ending on or before December 31, 2030, each qualified taxpayer may apply to the Department for a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 20% of the wages paid by the qualified taxpayer to a qualified energy choice worker based in Illinois in the taxable year. In no event shall a taxpayer receive a credit of more than $2,000 per employee in any taxable year. No taxpayer may claim a credit for more than 50 employees in any taxable year.

(b) In order to be eligible for a tax credit under this Section, a taxpayer must (i) be a regulated utility in the State of Illinois or a power generating company providing baseload or intermediate generation in Illinois, (ii) be subject to the provisions of Public Act 102-662, and (iii) be able to demonstrate an adverse and material operational impact to either its overall Illinois-based workforce or its ability to conduct business in Illinois based on the scheduled phaseout target dates of 2030, 2035, 2040, and 2045 contained in Public Act 102-662 on the qualified taxpayer's generational units in Illinois.

(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the tax 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 must 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, then the earlier credit must be applied first.

(d) The total aggregate amount of credits awarded under this Section shall not exceed $25,000,000 in any State fiscal year.

(e) The Department, in consultation with the Department of Commerce and Economic Opportunity, the Illinois Power Agency, the Illinois Commerce Commission, the Illinois Environmental Protection Agency, and any other State agency deemed necessary, may adopt rules in order to implement and administer the provisions of this Section.

(f) As used in this Section:

"Qualified energy choice worker" means an employee of a qualified taxpayer who is employed and working in Illinois and who is directly employed at the qualified taxpayer's generational unit in Illinois.

"Qualified taxpayer" means an employer operating in Illinois that is (i) either a regulated utility in the State of Illinois or a power generating company providing baseload or intermediate generation in Illinois, (ii) subject to the provisions of Public Act 102-662, and (iii) able to demonstrate an adverse and material operational impact to either its overall Illinois-based workforce or its ability to conduct business in Illinois based on the scheduled phaseout target dates of 2030, 2035, 2040, and 2045, as provided in Public Act 102-662, on the qualified taxpayer's generational units in Illinois.

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