95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4685


 
Introduced , by Rep. Donald L. Moffitt
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/218 new










    Amends the Illinois Income Tax Act. Provides for a credit for taxpayers who, during the taxable year, install, on a building or property that is owned by the taxpayer and that is located in the State, a geothermal energy device and sets the amount of the credit at  the lesser of (i) $5,000 or (ii)  50% of the actual cost of the acquisition and installation of the device. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4685

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    AN ACT concerning revenue.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Income Tax Act is amended  by adding 
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Section 218 as follows:
 
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    (35 ILCS 5/218 new)

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    Sec. 218. Credit for geothermal energy devices.
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    (a) For taxable years ending on or after December 31, 2008 
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through taxable years ending on or before December 30, 2013, 
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each taxpayer who, during the taxable year, installs, on a 
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building or property that is owned by the taxpayer and that is 
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located in the State, a geothermal energy device is entitled to 
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a credit against the tax imposed under subsection (a) and (b) 
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of Section 201 in an amount equal to the lesser of (i) $5,000 
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or (ii)  50% of the actual cost of the acquisition and 
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installation of the device.
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    (b) For the purposes of this Section:
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    "Geothermal energy device" means a system or mechanism or 
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series of mechanisms designed to provide heating or cooling or 
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to produce electrical or mechanical power, or any combination 
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of these, by a method that extracts or converts the energy 
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naturally occurring  beneath the earth's surface in rock 
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structures, water, or steam.
 


 






HB4685
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    (c) If a geothermal energy device is part of a system that 
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uses other means of energy, then only that portion of the total 
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system that is directly attributable to the cost of the 
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geothermal energy device may be included in determining the 
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amount of the credit. The costs of installation may not include 
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the costs of redesigning, remodeling, or otherwise altering the 
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structure of a building in which a geothermal energy device is 
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installed.
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    (d) If the taxpayer is a partnership or Subchapter S

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corporation,  the  credit  is  allowed  to  the  partners  or

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shareholders in accordance with the determination  of  income
and  
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distributive  share of income under Sections 702 and 704
and  
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Subchapter  S  of  the  Internal   Revenue   Code.
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    (e) The credit may not be carried forward  or  back.   In  no

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event shall a credit under this Section reduce the taxpayer's

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liability to less than zero.
 

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