|
|
|
|
SB0489 Engrossed |
|
LRB096 06571 RCE 16655 b |
|
|
| 1 |
| AN ACT concerning revenue.
|
| 2 |
| Be it enacted by the People of the State of Illinois, |
| 3 |
| represented in the General Assembly:
|
| 4 |
| Section 5. The Illinois Income Tax Act is amended by adding |
| 5 |
| Section 219 as follows:
|
| 6 |
| (35 ILCS 5/219 new) |
| 7 |
| Sec. 219. Venture capital tax credit. |
| 8 |
| (a) Beginning in taxable year 2010 and through taxable year |
| 9 |
| 2014, each taxpayer who makes an investment in a qualified |
| 10 |
| venture capital fund in Illinois is entitled to a credit |
| 11 |
| against the tax imposed under subsections (a) and (b) of |
| 12 |
| Section 201 of this Act. For the purposes of this Section, a |
| 13 |
| "qualified venture capital fund" is a fund (i) with its primary |
| 14 |
| office in Illinois and (ii) that has at least 50% of the total |
| 15 |
| number of investments in its portfolio in eligible companies |
| 16 |
| based in Illinois. For the purposes of this Section, an |
| 17 |
| eligible company is a company that meets one or more of the |
| 18 |
| following criteria: |
| 19 |
| (1) the company is located in an enterprise zone, a |
| 20 |
| River Edge Redevelopment Zone, or a federally designated |
| 21 |
| Foreign Trade Zone or Sub-Zone; |
| 22 |
| (2) the company is a minority-owned business or a |
| 23 |
| female-owned business, as defined in the Business |
|
|
|
SB0489 Engrossed |
- 2 - |
LRB096 06571 RCE 16655 b |
|
|
| 1 |
| Enterprise for Minorities, Females, and Persons with |
| 2 |
| Disabilities Act; |
| 3 |
| (3) the company has been in existence for 4 years or |
| 4 |
| less; |
| 5 |
| (4) the company is engaged in manufacturing; or |
| 6 |
| (5) the company's products, services, or operations |
| 7 |
| encourage the conservation of water, energy, or both. |
| 8 |
| (b) The credit shall be in the amount of (i) 10% of the |
| 9 |
| taxpayer's investment if the investment is made in an eligible |
| 10 |
| company that meets one of the criteria set forth in items (1) |
| 11 |
| through (5) of subsection (a) and (ii) 20% of the taxpayer's |
| 12 |
| investment if the investment is made in an eligible company |
| 13 |
| that meets more than one of the criteria set forth in items (1) |
| 14 |
| through (5) of subsection (a). The credit shall be taken in the |
| 15 |
| taxable year in which the qualified venture capital fund makes |
| 16 |
| the investment in the eligible business. |
| 17 |
| (c) A credit under this Section shall not reduce that |
| 18 |
| taxpayer's income tax liability to less than zero. If the |
| 19 |
| amount of the tax credit exceeds the tax liability for the |
| 20 |
| year,
the excess may be carried forward and applied to the tax |
| 21 |
| liability of the 5
taxable years following the excess credit |
| 22 |
| year. The credit must be applied to
the earliest year for which |
| 23 |
| there is a tax liability. If there are credits
from more than |
| 24 |
| one tax year that are available to offset a liability, then the
|
| 25 |
| earlier credit must be applied first.
|
| 26 |
| Section 99. Effective date. This Act takes effect upon |