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| 1 | AN ACT concerning rural technology.
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| 2 | Be it enacted by the People of the State of Illinois, | ||||||
| 3 | represented in the General Assembly:
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| 4 | Section 1. Short title. This Act may be cited as the Rural | ||||||
| 5 | Technology
Development
Zone Act.
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| 6 | Section 5. Zones established.
Subject to appropriation, | ||||||
| 7 | the Department of Commerce and Economic Opportunity
(DCEO)
may | ||||||
| 8 | implement a pilot program to designate 3 rural areas in the | ||||||
| 9 | State as rural
technology
development zones. The pilot program | ||||||
| 10 | shall be in areas that are underserved
with
respect to | ||||||
| 11 | technology development. DCEO shall determine which 3 | ||||||
| 12 | underserved
areas
shall be designated as technology | ||||||
| 13 | development zones in consultation with the
Illinois
Commerce | ||||||
| 14 | Commission.
In designating
the zones,
DCEO shall specify by | ||||||
| 15 | rule, based upon the needs and assessment
inventory, the
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| 16 | specific technology infrastructure needs of each rural | ||||||
| 17 | technology development
zone and the
types of investments that | ||||||
| 18 | will meet those needs. For each rural technology
development | ||||||
| 19 | zone
designated under this Section, DCEO shall further specify | ||||||
| 20 | all of the
following:
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| 21 | (1) The boundaries of the rural technology development | ||||||
| 22 | zone.
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| 23 | (2) The potential for increasing wireless | ||||||
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| 1 | telecommunications and Internet access within the rural
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| 2 | technology
development zone.
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| 3 | (3) The specific technology infrastructure required to | ||||||
| 4 | provide adequate
wireless telecommunications and Internet | ||||||
| 5 | access within the zone and any unique needs or | ||||||
| 6 | characteristics of the
zone.
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| 7 | (4) The specific investments in technology | ||||||
| 8 | infrastructure that will
qualify
for income tax credits in | ||||||
| 9 | the zone under Section 218 of the Illinois Income Tax
Act.
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| 10 | (5) Any other information DCEO deems pertinent.
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| 11 | Section 10. Report to the General Assembly. DCEO
shall | ||||||
| 12 | submit a report to the General Assembly on or before September
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| 13 | 1,
2008 outlining the progress, if any, in improving wireless | ||||||
| 14 | telecommunications and Internet access within rural
technology
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| 15 | development zones. The report shall include, but is not limited | ||||||
| 16 | to, the
following
information:
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| 17 | (1) An analysis of the changes made in technology | ||||||
| 18 | infrastructure in the
rural technology development zones | ||||||
| 19 | to improve wireless telecommunications and Internet access | ||||||
| 20 | and the effects
of
those changes.
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| 21 | (2) Any available statistics concerning the amount of | ||||||
| 22 | investments made in
rural technology development zones.
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| 23 | Section 15. Rules. DCEO shall adopt any rules
necessary | ||||||
| 24 | for the administration of this Act.
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| 1 | Section 90. The Illinois Income Tax Act is amended by | ||||||
| 2 | adding Section 218 as
follows:
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| 3 | (35 ILCS 5/218 new)
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| 4 | Sec. 218. Rural technology development zone tax credit.
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| 5 | (a) For taxable years beginning on or after January 1, 2007 | ||||||
| 6 | and ending on or before December 30, 2013, each taxpayer is | ||||||
| 7 | entitled to a credit against the tax imposed by
subsections (a) | ||||||
| 8 | and
(b) of Section 201 in an amount equal to 10% of the amount | ||||||
| 9 | of the total
investment made
during the taxable year by the | ||||||
| 10 | taxpayer in technology infrastructure required
to provide
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| 11 | wireless telecommunications or Internet access in rural | ||||||
| 12 | technology development zones. This credit may be
claimed only | ||||||
| 13 | for
specific capital investments in technology infrastructure | ||||||
| 14 | that will qualify for
income tax
credits in the development | ||||||
| 15 | zone as specified by the Department of Commerce and
Economic | ||||||
| 16 | Opportunity
under
item (4) of Section 5 of the Rural Technology | ||||||
| 17 | Development Zone Act. The credit
claimed
by a taxpayer under | ||||||
| 18 | this Section may not exceed $100,000 in any one taxable
year.
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| 19 | (b) If the credit allowed under this Section exceeds the | ||||||
| 20 | income taxes
otherwise
due on the claimant's income, the amount | ||||||
| 21 | of the credit not used as an offset
against
income taxes may be | ||||||
| 22 | carried forward as a tax credit against subsequent years'
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| 23 | income tax
liability for a period not to exceed 10 years and | ||||||
| 24 | must be applied first to the
earliest years
possible.
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| 1 | (c) The credit awarded under this Section is limited as | ||||||
| 2 | follows:
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| 3 | (1) The credit claimed may not exceed $100,000 per | ||||||
| 4 | year. Qualified
investments in excess of $1,000,000 in any | ||||||
| 5 | tax year cannot earn a credit and
cannot be carried | ||||||
| 6 | forward.
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| 7 | (2) A partnership, S corporation, or other similar | ||||||
| 8 | pass-through entity or
a
disregarded entity may pass | ||||||
| 9 | through up to $100,000 in total credit to its
partners,
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| 10 | shareholders, or members. Each partner, shareholder, or | ||||||
| 11 | member's portion of the
credit is determined according to | ||||||
| 12 | the ratio in which profits or losses of the
entity
are | ||||||
| 13 | allocated.
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| 14 | Section 99. Effective date. This Act takes effect upon | ||||||
| 15 | becoming law. | ||||||