HB4735 95TH GENERAL ASSEMBLY

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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4735

Introduced 2/1/2008, by Rep. Renée Kosel

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, solar, wind, or fuel cell energy device and sets the amount of the credit at the lesser of (i) $1,500 or (ii) 20% 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.

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 218 as follows:

(35 ILCS 5/218 new)

Sec. 218. Credit for alternate energy devices.

(a) For taxable years ending on or after December 31, 2008 through taxable years ending on or before December 30, 2013, each taxpayer who, during the taxable year, installs, on a building or property that is owned by the taxpayer and that is located in the State, a geothermal, solar, wind, or fuel cell energy device is entitled to a credit against the tax imposed under subsection (a) and (b) of Section 201 in an amount equal to the lesser of (i) $1,500 or (ii) 20% of the actual cost of the acquisition and installation of the device.

(b) For the purposes of this Section:

"Geothermal energy device" means a system or mechanism or series of mechanisms designed to provide heating or cooling or to produce electrical or mechanical power, or any combination of these, by a method that extracts or converts the energy naturally occurring beneath the earth's surface in rock structures, water, or steam.

"Solar or wind energy device" means a system or mechanism or series of mechanisms designed to provide heating or cooling or to produce electrical or mechanical power, or any combination of these, or to store any of these by a method that converts the natural energy of the sun or the wind.

"Fuel cell energy device" means a system or mechanism or series of mechanisms designed to provide heating or cooling or to produce electrical or mechanical power, or any combination of these, that continuously changes the chemical energy of a fuel and an oxidant directly into electrical energy.

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

(d) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

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

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