Sen. Michael Noland
Filed: 3/15/2010
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 489




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    AMENDMENT NO. ______. Amend Senate Bill 489 by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Illinois Income Tax Act is amended  by 
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adding Section 219 as follows:
 
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    (35 ILCS 5/219 new)
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    Sec. 219. Venture capital tax credit.
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    (a)  Beginning in taxable year 2010 and through taxable year 
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2014, each taxpayer who makes an investment in a qualified 
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venture capital fund in Illinois is entitled to a credit 
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against the tax imposed under subsections (a) and (b) of 
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Section 201 of this Act.  For the purposes of this Section, a 
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"qualified venture capital fund" is a fund (i) with its primary 
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office in Illinois and (ii) that has at least 50% of the total 
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number of investments in its portfolio in eligible companies 
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based in Illinois.  For the purposes of this Section, an 
 


 






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eligible company is a company that meets one or more of the 
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following criteria:
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        (1)  the company is located in an enterprise zone, a 
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    River Edge Redevelopment Zone, or a federally designated 
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    Foreign Trade Zone or Sub-Zone; 
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        (2)  the company is a minority owned business or a 
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    female owned business, as defined in the Business 
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    Enterprise for Minorities, Females, and Persons with 
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    Disabilities Act; 
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        (3)  the company has been in existence for 4 years or 
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    less; 
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        (4)  the company is engaged in manufacturing; or 
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        (5)  the company's products, services, or operations 
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    encourage the conservation of water, energy, or both. 
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    (b)  The credit shall be in the amount of (i) 10% of the 
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taxpayer's investment if the investment is made in an eligible 
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company that meets one of the criteria set forth in items (1) 
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through (5) of subsection (a) and (ii) 20% of the taxpayer's 
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investment if the investment is made in an eligible company 
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that meets more than one of the criteria set forth in items (1) 
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through (5) of subsection (a).  The credit shall be taken in the 
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taxable year in which the qualified venture capital fund makes 
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the investment in the eligible business. 
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    (c)  A credit under this Section shall not reduce that 
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taxpayer's income tax liability to less than zero.  If the 
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amount of the tax credit exceeds the tax liability for the 
 


 






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year,
the excess may be carried forward and applied to the tax 
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liability of the 5
taxable years following the excess credit 
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year.  The credit must be applied to
the earliest year for which 
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there is a tax liability.  If there are credits
from more than 
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one tax year that are available to offset a liability, then the

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earlier credit must be applied first. 
 

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