Rep. Mark L. Walker

Filed: 5/21/2019

 

 


 

 


 
10100SB1591ham001LRB101 08762 HLH 60918 a

1
AMENDMENT TO SENATE BILL 1591

2    AMENDMENT NO. ______. Amend Senate Bill 1591 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5adding Sections 201 and 229 as follows:
 
6    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
7    Sec. 201. Tax imposed.
8    (a) In general. A tax measured by net income is hereby
9imposed on every individual, corporation, trust and estate for
10each taxable year ending after July 31, 1969 on the privilege
11of earning or receiving income in or as a resident of this
12State. Such tax shall be in addition to all other occupation or
13privilege taxes imposed by this State or by any municipal
14corporation or political subdivision thereof.
15    (b) Rates. The tax imposed by subsection (a) of this
16Section shall be determined as follows, except as adjusted by

 

 

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1subsection (d-1):
2        (1) In the case of an individual, trust or estate, for
3    taxable years ending prior to July 1, 1989, an amount equal
4    to 2 1/2% of the taxpayer's net income for the taxable
5    year.
6        (2) In the case of an individual, trust or estate, for
7    taxable years beginning prior to July 1, 1989 and ending
8    after June 30, 1989, an amount equal to the sum of (i) 2
9    1/2% of the taxpayer's net income for the period prior to
10    July 1, 1989, as calculated under Section 202.3, and (ii)
11    3% of the taxpayer's net income for the period after June
12    30, 1989, as calculated under Section 202.3.
13        (3) In the case of an individual, trust or estate, for
14    taxable years beginning after June 30, 1989, and ending
15    prior to January 1, 2011, an amount equal to 3% of the
16    taxpayer's net income for the taxable year.
17        (4) In the case of an individual, trust, or estate, for
18    taxable years beginning prior to January 1, 2011, and
19    ending after December 31, 2010, an amount equal to the sum
20    of (i) 3% of the taxpayer's net income for the period prior
21    to January 1, 2011, as calculated under Section 202.5, and
22    (ii) 5% of the taxpayer's net income for the period after
23    December 31, 2010, as calculated under Section 202.5.
24        (5) In the case of an individual, trust, or estate, for
25    taxable years beginning on or after January 1, 2011, and
26    ending prior to January 1, 2015, an amount equal to 5% of

 

 

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1    the taxpayer's net income for the taxable year.
2        (5.1) In the case of an individual, trust, or estate,
3    for taxable years beginning prior to January 1, 2015, and
4    ending after December 31, 2014, an amount equal to the sum
5    of (i) 5% of the taxpayer's net income for the period prior
6    to January 1, 2015, as calculated under Section 202.5, and
7    (ii) 3.75% of the taxpayer's net income for the period
8    after December 31, 2014, as calculated under Section 202.5.
9        (5.2) In the case of an individual, trust, or estate,
10    for taxable years beginning on or after January 1, 2015,
11    and ending prior to July 1, 2017, an amount equal to 3.75%
12    of the taxpayer's net income for the taxable year.
13        (5.3) In the case of an individual, trust, or estate,
14    for taxable years beginning prior to July 1, 2017, and
15    ending after June 30, 2017, an amount equal to the sum of
16    (i) 3.75% of the taxpayer's net income for the period prior
17    to July 1, 2017, as calculated under Section 202.5, and
18    (ii) 4.95% of the taxpayer's net income for the period
19    after June 30, 2017, as calculated under Section 202.5.
20        (5.4) In the case of an individual, trust, or estate,
21    for taxable years beginning on or after July 1, 2017, an
22    amount equal to 4.95% of the taxpayer's net income for the
23    taxable year.
24        (6) In the case of a corporation, for taxable years
25    ending prior to July 1, 1989, an amount equal to 4% of the
26    taxpayer's net income for the taxable year.

 

 

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1        (7) In the case of a corporation, for taxable years
2    beginning prior to July 1, 1989 and ending after June 30,
3    1989, an amount equal to the sum of (i) 4% of the
4    taxpayer's net income for the period prior to July 1, 1989,
5    as calculated under Section 202.3, and (ii) 4.8% of the
6    taxpayer's net income for the period after June 30, 1989,
7    as calculated under Section 202.3.
8        (8) In the case of a corporation, for taxable years
9    beginning after June 30, 1989, and ending prior to January
10    1, 2011, an amount equal to 4.8% of the taxpayer's net
11    income for the taxable year.
12        (9) In the case of a corporation, for taxable years
13    beginning prior to January 1, 2011, and ending after
14    December 31, 2010, an amount equal to the sum of (i) 4.8%
15    of the taxpayer's net income for the period prior to
16    January 1, 2011, as calculated under Section 202.5, and
17    (ii) 7% of the taxpayer's net income for the period after
18    December 31, 2010, as calculated under Section 202.5.
19        (10) In the case of a corporation, for taxable years
20    beginning on or after January 1, 2011, and ending prior to
21    January 1, 2015, an amount equal to 7% of the taxpayer's
22    net income for the taxable year.
23        (11) In the case of a corporation, for taxable years
24    beginning prior to January 1, 2015, and ending after
25    December 31, 2014, an amount equal to the sum of (i) 7% of
26    the taxpayer's net income for the period prior to January

 

 

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1    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
2    of the taxpayer's net income for the period after December
3    31, 2014, as calculated under Section 202.5.
4        (12) In the case of a corporation, for taxable years
5    beginning on or after January 1, 2015, and ending prior to
6    July 1, 2017, an amount equal to 5.25% of the taxpayer's
7    net income for the taxable year.
8        (13) In the case of a corporation, for taxable years
9    beginning prior to July 1, 2017, and ending after June 30,
10    2017, an amount equal to the sum of (i) 5.25% of the
11    taxpayer's net income for the period prior to July 1, 2017,
12    as calculated under Section 202.5, and (ii) 7% of the
13    taxpayer's net income for the period after June 30, 2017,
14    as calculated under Section 202.5.
15        (14) In the case of a corporation, for taxable years
16    beginning on or after July 1, 2017, an amount equal to 7%
17    of the taxpayer's net income for the taxable year.
18    The rates under this subsection (b) are subject to the
19provisions of Section 201.5.
20    (c) Personal Property Tax Replacement Income Tax.
21Beginning on July 1, 1979 and thereafter, in addition to such
22income tax, there is also hereby imposed the Personal Property
23Tax Replacement Income Tax measured by net income on every
24corporation (including Subchapter S corporations), partnership
25and trust, for each taxable year ending after June 30, 1979.
26Such taxes are imposed on the privilege of earning or receiving

 

 

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1income in or as a resident of this State. The Personal Property
2Tax Replacement Income Tax shall be in addition to the income
3tax imposed by subsections (a) and (b) of this Section and in
4addition to all other occupation or privilege taxes imposed by
5this State or by any municipal corporation or political
6subdivision thereof.
7    (d) Additional Personal Property Tax Replacement Income
8Tax Rates. The personal property tax replacement income tax
9imposed by this subsection and subsection (c) of this Section
10in the case of a corporation, other than a Subchapter S
11corporation and except as adjusted by subsection (d-1), shall
12be an additional amount equal to 2.85% of such taxpayer's net
13income for the taxable year, except that beginning on January
141, 1981, and thereafter, the rate of 2.85% specified in this
15subsection shall be reduced to 2.5%, and in the case of a
16partnership, trust or a Subchapter S corporation shall be an
17additional amount equal to 1.5% of such taxpayer's net income
18for the taxable year.
19    (d-1) Rate reduction for certain foreign insurers. In the
20case of a foreign insurer, as defined by Section 35A-5 of the
21Illinois Insurance Code, whose state or country of domicile
22imposes on insurers domiciled in Illinois a retaliatory tax
23(excluding any insurer whose premiums from reinsurance assumed
24are 50% or more of its total insurance premiums as determined
25under paragraph (2) of subsection (b) of Section 304, except
26that for purposes of this determination premiums from

 

 

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1reinsurance do not include premiums from inter-affiliate
2reinsurance arrangements), beginning with taxable years ending
3on or after December 31, 1999, the sum of the rates of tax
4imposed by subsections (b) and (d) shall be reduced (but not
5increased) to the rate at which the total amount of tax imposed
6under this Act, net of all credits allowed under this Act,
7shall equal (i) the total amount of tax that would be imposed
8on the foreign insurer's net income allocable to Illinois for
9the taxable year by such foreign insurer's state or country of
10domicile if that net income were subject to all income taxes
11and taxes measured by net income imposed by such foreign
12insurer's state or country of domicile, net of all credits
13allowed or (ii) a rate of zero if no such tax is imposed on such
14income by the foreign insurer's state of domicile. For the
15purposes of this subsection (d-1), an inter-affiliate includes
16a mutual insurer under common management.
17        (1) For the purposes of subsection (d-1), in no event
18    shall the sum of the rates of tax imposed by subsections
19    (b) and (d) be reduced below the rate at which the sum of:
20            (A) the total amount of tax imposed on such foreign
21        insurer under this Act for a taxable year, net of all
22        credits allowed under this Act, plus
23            (B) the privilege tax imposed by Section 409 of the
24        Illinois Insurance Code, the fire insurance company
25        tax imposed by Section 12 of the Fire Investigation
26        Act, and the fire department taxes imposed under

 

 

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1        Section 11-10-1 of the Illinois Municipal Code,
2    equals 1.25% for taxable years ending prior to December 31,
3    2003, or 1.75% for taxable years ending on or after
4    December 31, 2003, of the net taxable premiums written for
5    the taxable year, as described by subsection (1) of Section
6    409 of the Illinois Insurance Code. This paragraph will in
7    no event increase the rates imposed under subsections (b)
8    and (d).
9        (2) Any reduction in the rates of tax imposed by this
10    subsection shall be applied first against the rates imposed
11    by subsection (b) and only after the tax imposed by
12    subsection (a) net of all credits allowed under this
13    Section other than the credit allowed under subsection (i)
14    has been reduced to zero, against the rates imposed by
15    subsection (d).
16    This subsection (d-1) is exempt from the provisions of
17Section 250.
18    (e) Investment credit. A taxpayer shall be allowed a credit
19against the Personal Property Tax Replacement Income Tax for
20investment in qualified property.
21        (1) A taxpayer shall be allowed a credit equal to .5%
22    of the basis of qualified property placed in service during
23    the taxable year, provided such property is placed in
24    service on or after July 1, 1984. There shall be allowed an
25    additional credit equal to .5% of the basis of qualified
26    property placed in service during the taxable year,

 

 

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1    provided such property is placed in service on or after
2    July 1, 1986, and the taxpayer's base employment within
3    Illinois has increased by 1% or more over the preceding
4    year as determined by the taxpayer's employment records
5    filed with the Illinois Department of Employment Security.
6    Taxpayers who are new to Illinois shall be deemed to have
7    met the 1% growth in base employment for the first year in
8    which they file employment records with the Illinois
9    Department of Employment Security. The provisions added to
10    this Section by Public Act 85-1200 (and restored by Public
11    Act 87-895) shall be construed as declaratory of existing
12    law and not as a new enactment. If, in any year, the
13    increase in base employment within Illinois over the
14    preceding year is less than 1%, the additional credit shall
15    be limited to that percentage times a fraction, the
16    numerator of which is .5% and the denominator of which is
17    1%, but shall not exceed .5%. The investment credit shall
18    not be allowed to the extent that it would reduce a
19    taxpayer's liability in any tax year below zero, nor may
20    any credit for qualified property be allowed for any year
21    other than the year in which the property was placed in
22    service in Illinois. For tax years ending on or after
23    December 31, 1987, and on or before December 31, 1988, the
24    credit shall be allowed for the tax year in which the
25    property is placed in service, or, if the amount of the
26    credit exceeds the tax liability for that year, whether it

 

 

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1    exceeds the original liability or the liability as later
2    amended, such excess may be carried forward and applied to
3    the tax liability of the 5 taxable years following the
4    excess credit years if the taxpayer (i) makes investments
5    which cause the creation of a minimum of 2,000 full-time
6    equivalent jobs in Illinois, (ii) is located in an
7    enterprise zone established pursuant to the Illinois
8    Enterprise Zone Act and (iii) is certified by the
9    Department of Commerce and Community Affairs (now
10    Department of Commerce and Economic Opportunity) as
11    complying with the requirements specified in clause (i) and
12    (ii) by July 1, 1986. The Department of Commerce and
13    Community Affairs (now Department of Commerce and Economic
14    Opportunity) shall notify the Department of Revenue of all
15    such certifications immediately. For tax years ending
16    after December 31, 1988, the credit shall be allowed for
17    the tax year in which the property is placed in service,
18    or, if the amount of the credit exceeds the tax liability
19    for that year, whether it exceeds the original liability or
20    the liability as later amended, such excess may be carried
21    forward and applied to the tax liability of the 5 taxable
22    years following the excess credit years. The credit shall
23    be applied to the earliest year for which there is a
24    liability. If there is credit from more than one tax year
25    that is available to offset a liability, earlier credit
26    shall be applied first.

 

 

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1        (2) The term "qualified property" means property
2    which:
3            (A) is tangible, whether new or used, including
4        buildings and structural components of buildings and
5        signs that are real property, but not including land or
6        improvements to real property that are not a structural
7        component of a building such as landscaping, sewer
8        lines, local access roads, fencing, parking lots, and
9        other appurtenances;
10            (B) is depreciable pursuant to Section 167 of the
11        Internal Revenue Code, except that "3-year property"
12        as defined in Section 168(c)(2)(A) of that Code is not
13        eligible for the credit provided by this subsection
14        (e);
15            (C) is acquired by purchase as defined in Section
16        179(d) of the Internal Revenue Code;
17            (D) is used in Illinois by a taxpayer who is
18        primarily engaged in manufacturing, or in mining coal
19        or fluorite, or in retailing, or was placed in service
20        on or after July 1, 2006 in a River Edge Redevelopment
21        Zone established pursuant to the River Edge
22        Redevelopment Zone Act; and
23            (E) has not previously been used in Illinois in
24        such a manner and by such a person as would qualify for
25        the credit provided by this subsection (e) or
26        subsection (f).

 

 

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1        (3) For purposes of this subsection (e),
2    "manufacturing" means the material staging and production
3    of tangible personal property by procedures commonly
4    regarded as manufacturing, processing, fabrication, or
5    assembling which changes some existing material into new
6    shapes, new qualities, or new combinations. For purposes of
7    this subsection (e) the term "mining" shall have the same
8    meaning as the term "mining" in Section 613(c) of the
9    Internal Revenue Code. For purposes of this subsection (e),
10    the term "retailing" means the sale of tangible personal
11    property for use or consumption and not for resale, or
12    services rendered in conjunction with the sale of tangible
13    personal property for use or consumption and not for
14    resale. For purposes of this subsection (e), "tangible
15    personal property" has the same meaning as when that term
16    is used in the Retailers' Occupation Tax Act, and, for
17    taxable years ending after December 31, 2008, does not
18    include the generation, transmission, or distribution of
19    electricity.
20        (4) The basis of qualified property shall be the basis
21    used to compute the depreciation deduction for federal
22    income tax purposes.
23        (5) If the basis of the property for federal income tax
24    depreciation purposes is increased after it has been placed
25    in service in Illinois by the taxpayer, the amount of such
26    increase shall be deemed property placed in service on the

 

 

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1    date of such increase in basis.
2        (6) The term "placed in service" shall have the same
3    meaning as under Section 46 of the Internal Revenue Code.
4        (7) If during any taxable year, any property ceases to
5    be qualified property in the hands of the taxpayer within
6    48 months after being placed in service, or the situs of
7    any qualified property is moved outside Illinois within 48
8    months after being placed in service, the Personal Property
9    Tax Replacement Income Tax for such taxable year shall be
10    increased. Such increase shall be determined by (i)
11    recomputing the investment credit which would have been
12    allowed for the year in which credit for such property was
13    originally allowed by eliminating such property from such
14    computation and, (ii) subtracting such recomputed credit
15    from the amount of credit previously allowed. For the
16    purposes of this paragraph (7), a reduction of the basis of
17    qualified property resulting from a redetermination of the
18    purchase price shall be deemed a disposition of qualified
19    property to the extent of such reduction.
20        (8) Unless the investment credit is extended by law,
21    the basis of qualified property shall not include costs
22    incurred after December 31, 2018, except for costs incurred
23    pursuant to a binding contract entered into on or before
24    December 31, 2018.
25        (9) Each taxable year ending before December 31, 2000,
26    a partnership may elect to pass through to its partners the

 

 

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1    credits to which the partnership is entitled under this
2    subsection (e) for the taxable year. A partner may use the
3    credit allocated to him or her under this paragraph only
4    against the tax imposed in subsections (c) and (d) of this
5    Section. If the partnership makes that election, those
6    credits shall be allocated among the partners in the
7    partnership in accordance with the rules set forth in
8    Section 704(b) of the Internal Revenue Code, and the rules
9    promulgated under that Section, and the allocated amount of
10    the credits shall be allowed to the partners for that
11    taxable year. The partnership shall make this election on
12    its Personal Property Tax Replacement Income Tax return for
13    that taxable year. The election to pass through the credits
14    shall be irrevocable.
15        For taxable years ending on or after December 31, 2000,
16    a partner that qualifies its partnership for a subtraction
17    under subparagraph (I) of paragraph (2) of subsection (d)
18    of Section 203 or a shareholder that qualifies a Subchapter
19    S corporation for a subtraction under subparagraph (S) of
20    paragraph (2) of subsection (b) of Section 203 shall be
21    allowed a credit under this subsection (e) equal to its
22    share of the credit earned under this subsection (e) during
23    the taxable year by the partnership or Subchapter S
24    corporation, determined in accordance with the
25    determination of income and distributive share of income
26    under Sections 702 and 704 and Subchapter S of the Internal

 

 

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1    Revenue Code. This paragraph is exempt from the provisions
2    of Section 250.
3    (f) Investment credit; Enterprise Zone; River Edge
4Redevelopment Zone.
5        (1) A taxpayer shall be allowed a credit against the
6    tax imposed by subsections (a) and (b) of this Section for
7    investment in qualified property which is placed in service
8    in an Enterprise Zone created pursuant to the Illinois
9    Enterprise Zone Act or, for property placed in service on
10    or after July 1, 2006, a River Edge Redevelopment Zone
11    established pursuant to the River Edge Redevelopment Zone
12    Act. For partners, shareholders of Subchapter S
13    corporations, and owners of limited liability companies,
14    if the liability company is treated as a partnership for
15    purposes of federal and State income taxation, there shall
16    be allowed a credit under this subsection (f) to be
17    determined in accordance with the determination of income
18    and distributive share of income under Sections 702 and 704
19    and Subchapter S of the Internal Revenue Code. The credit
20    shall be .5% of the basis for such property. The credit
21    shall be available only in the taxable year in which the
22    property is placed in service in the Enterprise Zone or
23    River Edge Redevelopment Zone and shall not be allowed to
24    the extent that it would reduce a taxpayer's liability for
25    the tax imposed by subsections (a) and (b) of this Section
26    to below zero. For tax years ending on or after December

 

 

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1    31, 1985, the credit shall be allowed for the tax year in
2    which the property is placed in service, or, if the amount
3    of the credit exceeds the tax liability for that year,
4    whether it exceeds the original liability or the liability
5    as later amended, such excess may be carried forward and
6    applied to the tax liability of the 5 taxable years
7    following the excess credit year. The credit shall be
8    applied to the earliest year for which there is a
9    liability. If there is credit from more than one tax year
10    that is available to offset a liability, the credit
11    accruing first in time shall be applied first.
12        (2) The term qualified property means property which:
13            (A) is tangible, whether new or used, including
14        buildings and structural components of buildings;
15            (B) is depreciable pursuant to Section 167 of the
16        Internal Revenue Code, except that "3-year property"
17        as defined in Section 168(c)(2)(A) of that Code is not
18        eligible for the credit provided by this subsection
19        (f);
20            (C) is acquired by purchase as defined in Section
21        179(d) of the Internal Revenue Code;
22            (D) is used in the Enterprise Zone or River Edge
23        Redevelopment Zone by the taxpayer; and
24            (E) has not been previously used in Illinois in
25        such a manner and by such a person as would qualify for
26        the credit provided by this subsection (f) or

 

 

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1        subsection (e).
2        (3) The basis of qualified property shall be the basis
3    used to compute the depreciation deduction for federal
4    income tax purposes.
5        (4) If the basis of the property for federal income tax
6    depreciation purposes is increased after it has been placed
7    in service in the Enterprise Zone or River Edge
8    Redevelopment Zone by the taxpayer, the amount of such
9    increase shall be deemed property placed in service on the
10    date of such increase in basis.
11        (5) The term "placed in service" shall have the same
12    meaning as under Section 46 of the Internal Revenue Code.
13        (6) If during any taxable year, any property ceases to
14    be qualified property in the hands of the taxpayer within
15    48 months after being placed in service, or the situs of
16    any qualified property is moved outside the Enterprise Zone
17    or River Edge Redevelopment Zone within 48 months after
18    being placed in service, the tax imposed under subsections
19    (a) and (b) of this Section for such taxable year shall be
20    increased. Such increase shall be determined by (i)
21    recomputing the investment credit which would have been
22    allowed for the year in which credit for such property was
23    originally allowed by eliminating such property from such
24    computation, and (ii) subtracting such recomputed credit
25    from the amount of credit previously allowed. For the
26    purposes of this paragraph (6), a reduction of the basis of

 

 

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1    qualified property resulting from a redetermination of the
2    purchase price shall be deemed a disposition of qualified
3    property to the extent of such reduction.
4        (7) There shall be allowed an additional credit equal
5    to 0.5% of the basis of qualified property placed in
6    service during the taxable year in a River Edge
7    Redevelopment Zone, provided such property is placed in
8    service on or after July 1, 2006, and the taxpayer's base
9    employment within Illinois has increased by 1% or more over
10    the preceding year as determined by the taxpayer's
11    employment records filed with the Illinois Department of
12    Employment Security. Taxpayers who are new to Illinois
13    shall be deemed to have met the 1% growth in base
14    employment for the first year in which they file employment
15    records with the Illinois Department of Employment
16    Security. If, in any year, the increase in base employment
17    within Illinois over the preceding year is less than 1%,
18    the additional credit shall be limited to that percentage
19    times a fraction, the numerator of which is 0.5% and the
20    denominator of which is 1%, but shall not exceed 0.5%.
21    (g) (Blank).
22    (h) Investment credit; High Impact Business.
23        (1) Subject to subsections (b) and (b-5) of Section 5.5
24    of the Illinois Enterprise Zone Act, a taxpayer shall be
25    allowed a credit against the tax imposed by subsections (a)
26    and (b) of this Section for investment in qualified

 

 

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1    property which is placed in service by a Department of
2    Commerce and Economic Opportunity designated High Impact
3    Business. The credit shall be .5% of the basis for such
4    property. The credit shall not be available (i) until the
5    minimum investments in qualified property set forth in
6    subdivision (a)(3)(A) of Section 5.5 of the Illinois
7    Enterprise Zone Act have been satisfied or (ii) until the
8    time authorized in subsection (b-5) of the Illinois
9    Enterprise Zone Act for entities designated as High Impact
10    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
11    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
12    Act, and shall not be allowed to the extent that it would
13    reduce a taxpayer's liability for the tax imposed by
14    subsections (a) and (b) of this Section to below zero. The
15    credit applicable to such investments shall be taken in the
16    taxable year in which such investments have been completed.
17    The credit for additional investments beyond the minimum
18    investment by a designated high impact business authorized
19    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
20    Enterprise Zone Act shall be available only in the taxable
21    year in which the property is placed in service and shall
22    not be allowed to the extent that it would reduce a
23    taxpayer's liability for the tax imposed by subsections (a)
24    and (b) of this Section to below zero. For tax years ending
25    on or after December 31, 1987, the credit shall be allowed
26    for the tax year in which the property is placed in

 

 

10100SB1591ham001- 20 -LRB101 08762 HLH 60918 a

1    service, or, if the amount of the credit exceeds the tax
2    liability for that year, whether it exceeds the original
3    liability or the liability as later amended, such excess
4    may be carried forward and applied to the tax liability of
5    the 5 taxable years following the excess credit year. The
6    credit shall be applied to the earliest year for which
7    there is a liability. If there is credit from more than one
8    tax year that is available to offset a liability, the
9    credit accruing first in time shall be applied first.
10        Changes made in this subdivision (h)(1) by Public Act
11    88-670 restore changes made by Public Act 85-1182 and
12    reflect existing law.
13        (2) The term qualified property means property which:
14            (A) is tangible, whether new or used, including
15        buildings and structural components of buildings;
16            (B) is depreciable pursuant to Section 167 of the
17        Internal Revenue Code, except that "3-year property"
18        as defined in Section 168(c)(2)(A) of that Code is not
19        eligible for the credit provided by this subsection
20        (h);
21            (C) is acquired by purchase as defined in Section
22        179(d) of the Internal Revenue Code; and
23            (D) is not eligible for the Enterprise Zone
24        Investment Credit provided by subsection (f) of this
25        Section.
26        (3) The basis of qualified property shall be the basis

 

 

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1    used to compute the depreciation deduction for federal
2    income tax purposes.
3        (4) If the basis of the property for federal income tax
4    depreciation purposes is increased after it has been placed
5    in service in a federally designated Foreign Trade Zone or
6    Sub-Zone located in Illinois by the taxpayer, the amount of
7    such increase shall be deemed property placed in service on
8    the date of such increase in basis.
9        (5) The term "placed in service" shall have the same
10    meaning as under Section 46 of the Internal Revenue Code.
11        (6) If during any taxable year ending on or before
12    December 31, 1996, any property ceases to be qualified
13    property in the hands of the taxpayer within 48 months
14    after being placed in service, or the situs of any
15    qualified property is moved outside Illinois within 48
16    months after being placed in service, the tax imposed under
17    subsections (a) and (b) of this Section for such taxable
18    year shall be increased. Such increase shall be determined
19    by (i) recomputing the investment credit which would have
20    been allowed for the year in which credit for such property
21    was originally allowed by eliminating such property from
22    such computation, and (ii) subtracting such recomputed
23    credit from the amount of credit previously allowed. For
24    the purposes of this paragraph (6), a reduction of the
25    basis of qualified property resulting from a
26    redetermination of the purchase price shall be deemed a

 

 

10100SB1591ham001- 22 -LRB101 08762 HLH 60918 a

1    disposition of qualified property to the extent of such
2    reduction.
3        (7) Beginning with tax years ending after December 31,
4    1996, if a taxpayer qualifies for the credit under this
5    subsection (h) and thereby is granted a tax abatement and
6    the taxpayer relocates its entire facility in violation of
7    the explicit terms and length of the contract under Section
8    18-183 of the Property Tax Code, the tax imposed under
9    subsections (a) and (b) of this Section shall be increased
10    for the taxable year in which the taxpayer relocated its
11    facility by an amount equal to the amount of credit
12    received by the taxpayer under this subsection (h).
13    (i) Credit for Personal Property Tax Replacement Income
14Tax. For tax years ending prior to December 31, 2003, a credit
15shall be allowed against the tax imposed by subsections (a) and
16(b) of this Section for the tax imposed by subsections (c) and
17(d) of this Section. This credit shall be computed by
18multiplying the tax imposed by subsections (c) and (d) of this
19Section by a fraction, the numerator of which is base income
20allocable to Illinois and the denominator of which is Illinois
21base income, and further multiplying the product by the tax
22rate imposed by subsections (a) and (b) of this Section.
23    Any credit earned on or after December 31, 1986 under this
24subsection which is unused in the year the credit is computed
25because it exceeds the tax liability imposed by subsections (a)
26and (b) for that year (whether it exceeds the original

 

 

10100SB1591ham001- 23 -LRB101 08762 HLH 60918 a

1liability or the liability as later amended) may be carried
2forward and applied to the tax liability imposed by subsections
3(a) and (b) of the 5 taxable years following the excess credit
4year, provided that no credit may be carried forward to any
5year ending on or after December 31, 2003. This credit shall be
6applied first to the earliest year for which there is a
7liability. If there is a credit under this subsection from more
8than one tax year that is available to offset a liability the
9earliest credit arising under this subsection shall be applied
10first.
11    If, during any taxable year ending on or after December 31,
121986, the tax imposed by subsections (c) and (d) of this
13Section for which a taxpayer has claimed a credit under this
14subsection (i) is reduced, the amount of credit for such tax
15shall also be reduced. Such reduction shall be determined by
16recomputing the credit to take into account the reduced tax
17imposed by subsections (c) and (d). If any portion of the
18reduced amount of credit has been carried to a different
19taxable year, an amended return shall be filed for such taxable
20year to reduce the amount of credit claimed.
21    (j) Training expense credit. Beginning with tax years
22ending on or after December 31, 1986 and prior to December 31,
232003, a taxpayer shall be allowed a credit against the tax
24imposed by subsections (a) and (b) under this Section for all
25amounts paid or accrued, on behalf of all persons employed by
26the taxpayer in Illinois or Illinois residents employed outside

 

 

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1of Illinois by a taxpayer, for educational or vocational
2training in semi-technical or technical fields or semi-skilled
3or skilled fields, which were deducted from gross income in the
4computation of taxable income. The credit against the tax
5imposed by subsections (a) and (b) shall be 1.6% of such
6training expenses. For partners, shareholders of subchapter S
7corporations, and owners of limited liability companies, if the
8liability company is treated as a partnership for purposes of
9federal and State income taxation, there shall be allowed a
10credit under this subsection (j) to be determined in accordance
11with the determination of income and distributive share of
12income under Sections 702 and 704 and subchapter S of the
13Internal Revenue Code.
14    Any credit allowed under this subsection which is unused in
15the year the credit is earned may be carried forward to each of
16the 5 taxable years following the year for which the credit is
17first computed until it is used. This credit shall be applied
18first to the earliest year for which there is a liability. If
19there is a credit under this subsection from more than one tax
20year that is available to offset a liability the earliest
21credit arising under this subsection shall be applied first. No
22carryforward credit may be claimed in any tax year ending on or
23after December 31, 2003.
24    (k) Research and development credit. For tax years ending
25after July 1, 1990 and prior to December 31, 2003, and
26beginning again for tax years ending on or after December 31,

 

 

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12004, and ending prior to January 1, 2027 January 1, 2022, a
2taxpayer shall be allowed a credit against the tax imposed by
3subsections (a) and (b) of this Section for increasing research
4activities in this State. The credit allowed against the tax
5imposed by subsections (a) and (b) shall be equal to 6 1/2% of
6the qualifying expenditures for increasing research activities
7in this State. For partners, shareholders of subchapter S
8corporations, and owners of limited liability companies, if the
9liability company is treated as a partnership for purposes of
10federal and State income taxation, there shall be allowed a
11credit under this subsection to be determined in accordance
12with the determination of income and distributive share of
13income under Sections 702 and 704 and subchapter S of the
14Internal Revenue Code.
15    For purposes of this subsection, "qualifying expenditures"
16means the qualifying expenditures as defined for the federal
17credit for increasing research activities which would be
18allowable under Section 41 of the Internal Revenue Code and
19which are conducted in this State, "qualifying expenditures for
20increasing research activities in this State" means the excess
21of qualifying expenditures for the taxable year in which
22incurred over qualifying expenditures for the base period,
23"qualifying expenditures for the base period" means the average
24of the qualifying expenditures for each year in the base
25period, and "base period" means the 3 taxable years immediately
26preceding the taxable year for which the determination is being

 

 

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1made.
2    Any credit in excess of the tax liability for the taxable
3year may be carried forward. A taxpayer may elect to have the
4unused credit shown on its final completed return carried over
5as a credit against the tax liability for the following 5
6taxable years or until it has been fully used, whichever occurs
7first; provided that no credit earned in a tax year ending
8prior to December 31, 2003 may be carried forward to any year
9ending on or after December 31, 2003.
10    If an unused credit is carried forward to a given year from
112 or more earlier years, that credit arising in the earliest
12year will be applied first against the tax liability for the
13given year. If a tax liability for the given year still
14remains, the credit from the next earliest year will then be
15applied, and so on, until all credits have been used or no tax
16liability for the given year remains. Any remaining unused
17credit or credits then will be carried forward to the next
18following year in which a tax liability is incurred, except
19that no credit can be carried forward to a year which is more
20than 5 years after the year in which the expense for which the
21credit is given was incurred.
22    No inference shall be drawn from this amendatory Act of the
2391st General Assembly in construing this Section for taxable
24years beginning before January 1, 1999.
25    It is the intent of the General Assembly that the research
26and development credit under this subsection (k) shall apply

 

 

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1continuously for all tax years ending on or after December 31,
22004 and ending prior to January 1, 2027 January 1, 2022,
3including, but not limited to, the period beginning on January
41, 2016 and ending on the effective date of this amendatory Act
5of the 100th General Assembly. All actions taken in reliance on
6the continuation of the credit under this subsection (k) by any
7taxpayer are hereby validated.
8    (l) Environmental Remediation Tax Credit.
9        (i) For tax years ending after December 31, 1997 and on
10    or before December 31, 2001, a taxpayer shall be allowed a
11    credit against the tax imposed by subsections (a) and (b)
12    of this Section for certain amounts paid for unreimbursed
13    eligible remediation costs, as specified in this
14    subsection. For purposes of this Section, "unreimbursed
15    eligible remediation costs" means costs approved by the
16    Illinois Environmental Protection Agency ("Agency") under
17    Section 58.14 of the Environmental Protection Act that were
18    paid in performing environmental remediation at a site for
19    which a No Further Remediation Letter was issued by the
20    Agency and recorded under Section 58.10 of the
21    Environmental Protection Act. The credit must be claimed
22    for the taxable year in which Agency approval of the
23    eligible remediation costs is granted. The credit is not
24    available to any taxpayer if the taxpayer or any related
25    party caused or contributed to, in any material respect, a
26    release of regulated substances on, in, or under the site

 

 

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1    that was identified and addressed by the remedial action
2    pursuant to the Site Remediation Program of the
3    Environmental Protection Act. After the Pollution Control
4    Board rules are adopted pursuant to the Illinois
5    Administrative Procedure Act for the administration and
6    enforcement of Section 58.9 of the Environmental
7    Protection Act, determinations as to credit availability
8    for purposes of this Section shall be made consistent with
9    those rules. For purposes of this Section, "taxpayer"
10    includes a person whose tax attributes the taxpayer has
11    succeeded to under Section 381 of the Internal Revenue Code
12    and "related party" includes the persons disallowed a
13    deduction for losses by paragraphs (b), (c), and (f)(1) of
14    Section 267 of the Internal Revenue Code by virtue of being
15    a related taxpayer, as well as any of its partners. The
16    credit allowed against the tax imposed by subsections (a)
17    and (b) shall be equal to 25% of the unreimbursed eligible
18    remediation costs in excess of $100,000 per site, except
19    that the $100,000 threshold shall not apply to any site
20    contained in an enterprise zone as determined by the
21    Department of Commerce and Community Affairs (now
22    Department of Commerce and Economic Opportunity). The
23    total credit allowed shall not exceed $40,000 per year with
24    a maximum total of $150,000 per site. For partners and
25    shareholders of subchapter S corporations, there shall be
26    allowed a credit under this subsection to be determined in

 

 

10100SB1591ham001- 29 -LRB101 08762 HLH 60918 a

1    accordance with the determination of income and
2    distributive share of income under Sections 702 and 704 and
3    subchapter S of the Internal Revenue Code.
4        (ii) A credit allowed under this subsection that is
5    unused in the year the credit is earned may be carried
6    forward to each of the 5 taxable years following the year
7    for which the credit is first earned until it is used. The
8    term "unused credit" does not include any amounts of
9    unreimbursed eligible remediation costs in excess of the
10    maximum credit per site authorized under paragraph (i).
11    This credit shall be applied first to the earliest year for
12    which there is a liability. If there is a credit under this
13    subsection from more than one tax year that is available to
14    offset a liability, the earliest credit arising under this
15    subsection shall be applied first. A credit allowed under
16    this subsection may be sold to a buyer as part of a sale of
17    all or part of the remediation site for which the credit
18    was granted. The purchaser of a remediation site and the
19    tax credit shall succeed to the unused credit and remaining
20    carry-forward period of the seller. To perfect the
21    transfer, the assignor shall record the transfer in the
22    chain of title for the site and provide written notice to
23    the Director of the Illinois Department of Revenue of the
24    assignor's intent to sell the remediation site and the
25    amount of the tax credit to be transferred as a portion of
26    the sale. In no event may a credit be transferred to any

 

 

10100SB1591ham001- 30 -LRB101 08762 HLH 60918 a

1    taxpayer if the taxpayer or a related party would not be
2    eligible under the provisions of subsection (i).
3        (iii) For purposes of this Section, the term "site"
4    shall have the same meaning as under Section 58.2 of the
5    Environmental Protection Act.
6    (m) Education expense credit. Beginning with tax years
7ending after December 31, 1999, a taxpayer who is the custodian
8of one or more qualifying pupils shall be allowed a credit
9against the tax imposed by subsections (a) and (b) of this
10Section for qualified education expenses incurred on behalf of
11the qualifying pupils. The credit shall be equal to 25% of
12qualified education expenses, but in no event may the total
13credit under this subsection claimed by a family that is the
14custodian of qualifying pupils exceed (i) $500 for tax years
15ending prior to December 31, 2017, and (ii) $750 for tax years
16ending on or after December 31, 2017. In no event shall a
17credit under this subsection reduce the taxpayer's liability
18under this Act to less than zero. Notwithstanding any other
19provision of law, for taxable years beginning on or after
20January 1, 2017, no taxpayer may claim a credit under this
21subsection (m) if the taxpayer's adjusted gross income for the
22taxable year exceeds (i) $500,000, in the case of spouses
23filing a joint federal tax return or (ii) $250,000, in the case
24of all other taxpayers. This subsection is exempt from the
25provisions of Section 250 of this Act.
26    For purposes of this subsection:

 

 

10100SB1591ham001- 31 -LRB101 08762 HLH 60918 a

1    "Qualifying pupils" means individuals who (i) are
2residents of the State of Illinois, (ii) are under the age of
321 at the close of the school year for which a credit is
4sought, and (iii) during the school year for which a credit is
5sought were full-time pupils enrolled in a kindergarten through
6twelfth grade education program at any school, as defined in
7this subsection.
8    "Qualified education expense" means the amount incurred on
9behalf of a qualifying pupil in excess of $250 for tuition,
10book fees, and lab fees at the school in which the pupil is
11enrolled during the regular school year.
12    "School" means any public or nonpublic elementary or
13secondary school in Illinois that is in compliance with Title
14VI of the Civil Rights Act of 1964 and attendance at which
15satisfies the requirements of Section 26-1 of the School Code,
16except that nothing shall be construed to require a child to
17attend any particular public or nonpublic school to qualify for
18the credit under this Section.
19    "Custodian" means, with respect to qualifying pupils, an
20Illinois resident who is a parent, the parents, a legal
21guardian, or the legal guardians of the qualifying pupils.
22    (n) River Edge Redevelopment Zone site remediation tax
23credit.
24        (i) For tax years ending on or after December 31, 2006,
25    a taxpayer shall be allowed a credit against the tax
26    imposed by subsections (a) and (b) of this Section for

 

 

10100SB1591ham001- 32 -LRB101 08762 HLH 60918 a

1    certain amounts paid for unreimbursed eligible remediation
2    costs, as specified in this subsection. For purposes of
3    this Section, "unreimbursed eligible remediation costs"
4    means costs approved by the Illinois Environmental
5    Protection Agency ("Agency") under Section 58.14a of the
6    Environmental Protection Act that were paid in performing
7    environmental remediation at a site within a River Edge
8    Redevelopment Zone for which a No Further Remediation
9    Letter was issued by the Agency and recorded under Section
10    58.10 of the Environmental Protection Act. The credit must
11    be claimed for the taxable year in which Agency approval of
12    the eligible remediation costs is granted. The credit is
13    not available to any taxpayer if the taxpayer or any
14    related party caused or contributed to, in any material
15    respect, a release of regulated substances on, in, or under
16    the site that was identified and addressed by the remedial
17    action pursuant to the Site Remediation Program of the
18    Environmental Protection Act. Determinations as to credit
19    availability for purposes of this Section shall be made
20    consistent with rules adopted by the Pollution Control
21    Board pursuant to the Illinois Administrative Procedure
22    Act for the administration and enforcement of Section 58.9
23    of the Environmental Protection Act. For purposes of this
24    Section, "taxpayer" includes a person whose tax attributes
25    the taxpayer has succeeded to under Section 381 of the
26    Internal Revenue Code and "related party" includes the

 

 

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1    persons disallowed a deduction for losses by paragraphs
2    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
3    Code by virtue of being a related taxpayer, as well as any
4    of its partners. The credit allowed against the tax imposed
5    by subsections (a) and (b) shall be equal to 25% of the
6    unreimbursed eligible remediation costs in excess of
7    $100,000 per site.
8        (ii) A credit allowed under this subsection that is
9    unused in the year the credit is earned may be carried
10    forward to each of the 5 taxable years following the year
11    for which the credit is first earned until it is used. This
12    credit shall be applied first to the earliest year for
13    which there is a liability. If there is a credit under this
14    subsection from more than one tax year that is available to
15    offset a liability, the earliest credit arising under this
16    subsection shall be applied first. A credit allowed under
17    this subsection may be sold to a buyer as part of a sale of
18    all or part of the remediation site for which the credit
19    was granted. The purchaser of a remediation site and the
20    tax credit shall succeed to the unused credit and remaining
21    carry-forward period of the seller. To perfect the
22    transfer, the assignor shall record the transfer in the
23    chain of title for the site and provide written notice to
24    the Director of the Illinois Department of Revenue of the
25    assignor's intent to sell the remediation site and the
26    amount of the tax credit to be transferred as a portion of

 

 

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1    the sale. In no event may a credit be transferred to any
2    taxpayer if the taxpayer or a related party would not be
3    eligible under the provisions of subsection (i).
4        (iii) For purposes of this Section, the term "site"
5    shall have the same meaning as under Section 58.2 of the
6    Environmental Protection Act.
7    (o) For each of taxable years during the Compassionate Use
8of Medical Cannabis Pilot Program, a surcharge is imposed on
9all taxpayers on income arising from the sale or exchange of
10capital assets, depreciable business property, real property
11used in the trade or business, and Section 197 intangibles of
12an organization registrant under the Compassionate Use of
13Medical Cannabis Pilot Program Act. The amount of the surcharge
14is equal to the amount of federal income tax liability for the
15taxable year attributable to those sales and exchanges. The
16surcharge imposed does not apply if:
17        (1) the medical cannabis cultivation center
18    registration, medical cannabis dispensary registration, or
19    the property of a registration is transferred as a result
20    of any of the following:
21            (A) bankruptcy, a receivership, or a debt
22        adjustment initiated by or against the initial
23        registration or the substantial owners of the initial
24        registration;
25            (B) cancellation, revocation, or termination of
26        any registration by the Illinois Department of Public

 

 

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1        Health;
2            (C) a determination by the Illinois Department of
3        Public Health that transfer of the registration is in
4        the best interests of Illinois qualifying patients as
5        defined by the Compassionate Use of Medical Cannabis
6        Pilot Program Act;
7            (D) the death of an owner of the equity interest in
8        a registrant;
9            (E) the acquisition of a controlling interest in
10        the stock or substantially all of the assets of a
11        publicly traded company;
12            (F) a transfer by a parent company to a wholly
13        owned subsidiary; or
14            (G) the transfer or sale to or by one person to
15        another person where both persons were initial owners
16        of the registration when the registration was issued;
17        or
18        (2) the cannabis cultivation center registration,
19    medical cannabis dispensary registration, or the
20    controlling interest in a registrant's property is
21    transferred in a transaction to lineal descendants in which
22    no gain or loss is recognized or as a result of a
23    transaction in accordance with Section 351 of the Internal
24    Revenue Code in which no gain or loss is recognized.
25(Source: P.A. 100-22, eff. 7-6-17.)
 

 

 

10100SB1591ham001- 36 -LRB101 08762 HLH 60918 a

1    (35 ILCS 5/229 new)
2    Sec. 229. Apprenticeship education expense credit.
3    (a) As used in this Section:
4    "Department" means the Department of Commerce and Economic
5Opportunity.
6    "Employer" means an Illinois taxpayer who is the employer
7of the qualifying apprentice.
8    "Qualifying apprentice" means an individual who: (i) is a
9resident of the State of Illinois; (ii) is at least 16 years
10old at the close of the school year for which a credit is
11sought; (iii) during the school year for which a credit is
12sought, was a full-time apprentice enrolled in an
13apprenticeship program which is registered with the United
14States Department of Labor, Office of Apprenticeship; and (iv)
15is employed in Illinois by the taxpayer who is the employer.
16    "Qualified education expense" means the amount incurred on
17behalf of a qualifying apprentice not to exceed $3,500 for
18tuition, book fees, and lab fees at the school or community
19college in which the apprentice is enrolled during the regular
20school year.
21    "School" means any public or nonpublic secondary school in
22Illinois that is: (i) an institution of higher education that
23provides a program that leads to an industry-recognized
24postsecondary credential or degree; (ii) an entity that carries
25out programs registered under the federal National
26Apprenticeship Act; or (iii) another public or private provider

 

 

10100SB1591ham001- 37 -LRB101 08762 HLH 60918 a

1of a program of training services, which may include a joint
2labor-management organization
3    (b) For taxable years beginning on or after January 1,
42020, and beginning on or before January 1, 2025, the employer
5of one or more qualifying apprentices shall be allowed a credit
6against the tax imposed by subsections (a) and (b) of Section
7201 of the Illinois Income Tax Act for qualified education
8expenses incurred on behalf of a qualifying apprentice. The
9credit shall be equal to 100% of the qualified education
10expenses, but in no event may the total credit amount awarded
11to a single taxpayer in a single taxable year exceed $3,500 per
12qualifying apprentice. A taxpayer shall be entitled to an
13additional $1,500 credit against the tax imposed by subsections
14(a) and (b) of Section 201 of the Illinois Income Tax Act if
15(i) the qualifying apprentice resides in an underserved area as
16defined in Section 5-5 of the Economic Development for a
17Growing Economy Tax Credit Act during the school year for which
18a credit is sought by an employer or (ii) the employer's
19principal place of business is located in an underserved area,
20as defined in Section 5-5 of the Economic Development for
21Growing Economic Tax Credit Act. In no event shall a credit
22under this Section reduce the taxpayer's liability under this
23Act to less than zero. For partners, shareholders of Subchapter
24S corporations, and owners of limited liability companies, if
25the liability company is treated as a partnership for purposes
26of federal and State income taxation, there shall be allowed a

 

 

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1credit under this Section to be determined in accordance with
2the determination of income and distributive share of income
3under Sections 702 and 704 and Subchapter S of the Internal
4Revenue Code.
5    (c) The Department shall implement a program to certify
6applicants for an apprenticeship credit under this Section.
7Upon satisfactory review, the Department shall issue a tax
8credit certificate to an employer incurring costs on behalf of
9a qualifying apprentice stating the amount of the tax credit to
10which the employer is entitled. If the employer is seeking a
11tax credit for multiple qualifying apprentices, the Department
12may issue a single tax credit certificate that encompasses the
13aggregate total of tax credits for qualifying apprentices for a
14single employer.
15    (d) The Department, in addition to those powers granted
16under the Civil Administrative Code of Illinois, is granted and
17shall have all the powers necessary or convenient to carry out
18and effectuate the purposes and provisions of this Section,
19including, but not limited to, power and authority to:
20        (1) Adopt rules deemed necessary and appropriate for
21    the administration of this Section; establish forms for
22    applications, notifications, contracts, or any other
23    agreements; and accept applications at any time during the
24    year and require that all applications be submitted via the
25    Internet. The Department shall require that applications
26    be submitted in electronic form.

 

 

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1        (2) Provide guidance and assistance to applicants
2    pursuant to the provisions of this Section and cooperate
3    with applicants to promote, foster, and support job
4    creation within the State.
5        (3) Enter into agreements and memoranda of
6    understanding for participation of and engage in
7    cooperation with agencies of the federal government, units
8    of local government, universities, research foundations or
9    institutions, regional economic development corporations,
10    or other organizations for the purposes of this Section.
11        (4) Gather information and conduct inquiries, in the
12    manner and by the methods it deems desirable, including,
13    without limitation, gathering information with respect to
14    applicants for the purpose of making any designations or
15    certifications necessary or desirable or to gather
16    information in furtherance of the purposes of this Act.
17        (5) Establish, negotiate, and effectuate any term,
18    agreement, or other document with any person necessary or
19    appropriate to accomplish the purposes of this Section, and
20    consent, subject to the provisions of any agreement with
21    another party, to the modification or restructuring of any
22    agreement to which the Department is a party.
23        (6) Provide for sufficient personnel to permit
24    administration, staffing, operation, and related support
25    required to adequately discharge its duties and
26    responsibilities described in this Section from funds made

 

 

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1    available through charges to applicants or from funds as
2    may be appropriated by the General Assembly for the
3    administration of this Section.
4        (7) Require applicants, upon written request, to issue
5    any necessary authorization to the appropriate federal,
6    State, or local authority or any other person for the
7    release to the Department of information requested by the
8    Department, including, but not be limited to, financial
9    reports, returns, or records relating to the applicant or
10    to the amount of credit allowable under this Section.
11        (8) Require that an applicant shall, at all times, keep
12    proper books of record and account in accordance with
13    generally accepted accounting principles consistently
14    applied, with the books, records, or papers related to the
15    agreement in the custody or control of the applicant open
16    for reasonable Department inspection and audits,
17    including, without limitation, the making of copies of the
18    books, records, or papers.
19        (9) Take whatever actions are necessary or appropriate
20    to protect the State's interest in the event of bankruptcy,
21    default, foreclosure, or noncompliance with the terms and
22    conditions of financial assistance or participation
23    required under this Section or any agreement entered into
24    under this Section, including the power to sell, dispose
25    of, lease, or rent, upon terms and conditions determined by
26    the Department to be appropriate, real or personal property

 

 

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1    that the Department may recover as a result of these
2    actions.
3    (e) The Department, in consultation with the Department of
4Revenue, shall adopt rules to administer this Section. The
5aggregate amount of the tax credits that may be claimed under
6this Section for qualified education expenses incurred by an
7employer on behalf of a qualifying apprentice shall be limited
8to $5,000,000 per calendar year. If applications for a greater
9amount are received, credits shall be allowed on a first-come
10first-served basis, based on the date on which each properly
11completed application for a certificate of eligibility is
12received by the Department. If more than one certificate is
13received on the same day, the credits will be awarded based on
14the time of submission for that particular day.
15    (f) An employer may not sell or otherwise transfer a credit
16awarded under this Section to another person or taxpayer.
17    (g) The employer shall provide the Department such
18information as the Department may require, including but not
19limited to: (i) the name, age, and taxpayer identification
20number of each qualifying apprentice employed by the taxpayer
21during the taxable year; (ii) the amount of qualified education
22expenses incurred with respect to each qualifying apprentice;
23and (iii) the name of the school at which the qualifying
24apprentice is enrolled and the qualified education expenses are
25incurred.
26    (h) On or before July 1 of each year, the Department shall

 

 

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1report to the Governor and the General Assembly on the tax
2credit certificates awarded under this Section for the prior
3calendar year. The report must include:
4        (1) the name of each employer awarded or allocated a
5    credit;
6        (2) the number of qualifying apprentices for whom the
7    employer has incurred qualified education expenses;
8        (3) the North American Industry Classification System
9    (NAICS) code applicable to each employer awarded or
10    allocated a credit;
11        (4) the amount of the credit awarded or allocated to
12    each employer;
13        (5) the total number of employers awarded or allocated
14    a credit;
15        (6) the total number of qualifying apprentices for whom
16    employers receiving credits under this Section incurred
17    qualified education expenses; and
18        (7) the average cost to the employer of all
19    apprenticeships receiving credits under this Section.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".