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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1077 Introduced 1/12/2023, by Rep. Mark L. Walker SYNOPSIS AS INTRODUCED:
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| | Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the recipient of a credit under the Act may apply for a certificate of transferability of credit from the Department of Commerce and Economic Opportunity for the amount of the credit not previously claimed. Provides that the transferability certificate may be transferred or sold by the recipient to another Illinois taxpayer. Makes other changes.
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| | A BILL FOR |
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| | HB1077 | | LRB103 05275 SPS 50293 b |
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| 1 | | AN ACT concerning revenue.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Economic Development for a Growing Economy |
| 5 | | Tax Credit Act is amended by changing Section 5-45 as follows:
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| 6 | | (35 ILCS 10/5-45)
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| 7 | | Sec. 5-45. Amount and duration of the credit.
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| 8 | | (a) The Department shall
determine the amount and
duration |
| 9 | | of the credit awarded under this Act. The duration of the
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| 10 | | credit may not exceed 10 taxable years.
The credit may be |
| 11 | | stated as
a percentage of the Incremental Income Tax |
| 12 | | attributable
to the applicant's project and may include a |
| 13 | | fixed dollar limitation.
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| 14 | | (b) Notwithstanding subsection (a),
and except as the |
| 15 | | credit may be applied in a carryover year pursuant to Section
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| 16 | | 211(4) of the Illinois Income Tax Act, the credit may be |
| 17 | | applied against the
State income tax liability in more than 10 |
| 18 | | taxable years but not in more than
15 taxable years for an |
| 19 | | eligible business
that (i) qualifies under this Act
and the |
| 20 | | Corporate Headquarters Relocation Act and has in fact |
| 21 | | undertaken a
qualifying project within the time frame |
| 22 | | specified by the Department of
Commerce and Economic |
| 23 | | Opportunity under that Act, and (ii) applies against its
State |
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| | HB1077 | - 2 - | LRB103 05275 SPS 50293 b |
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| 1 | | income tax liability, during the entire 15-year
period, no |
| 2 | | more than 60% of the maximum
credit per year that would |
| 3 | | otherwise be available under this Act.
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| 4 | | (b-5) Notwithstanding subsection (a) or (b), a recipient |
| 5 | | of a credit may request a certificate of transferability of |
| 6 | | credit from the Department for the amount of credit not |
| 7 | | previously claimed. A transferability certificate so issued |
| 8 | | may be transferred or sold by the recipient to another |
| 9 | | Illinois taxpayer. Transferors and sellers shall submit to the |
| 10 | | Department of Revenue a notification of any transfer or sale |
| 11 | | of tax credits within 30 days after the transfer or sale of |
| 12 | | those tax credits. The notification, which shall be in the |
| 13 | | form prescribed by the Department, shall include the |
| 14 | | transferor's tax credit balance prior to transfer, the credit |
| 15 | | certificate number, the identifying number of the EDGE |
| 16 | | agreement, the transferor's remaining tax credit balance after |
| 17 | | transfer, all tax identification numbers for both transferor |
| 18 | | and transferee, the date of transfer, the amount transferred, |
| 19 | | a copy of the credit certificate, and any other information |
| 20 | | required by the Department of Revenue. The transfer or sale of |
| 21 | | the credit does not extend the time in which the credit can be |
| 22 | | used. The carry forward period for a credit that is |
| 23 | | transferred or sold begins on the date on which the credit was |
| 24 | | originally granted by the Department. To the extent the |
| 25 | | transferor did not have rights to claim or use the credit at |
| 26 | | the time of the transfer or sale, the Department of Revenue |
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| | HB1077 | - 3 - | LRB103 05275 SPS 50293 b |
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| 1 | | shall either disallow the credit claimed by the transferee or |
| 2 | | recapture the credit from the transferee through any |
| 3 | | collection method authorized by statute. In such case, the |
| 4 | | transferee's recourse is against the transferor. |
| 5 | | (c) Nothing in this Section shall prevent the Department, |
| 6 | | in consultation with the Department of Revenue, from adopting |
| 7 | | rules to extend the sunset of any earned, existing, and unused |
| 8 | | tax credit or credits a taxpayer may be in possession of, as |
| 9 | | provided for in Section 605-1070 of the Department of Commerce |
| 10 | | and Economic Opportunity Law of the Civil Administrative Code |
| 11 | | of Illinois, notwithstanding the carry-forward provisions |
| 12 | | pursuant to paragraph (4) of Section 211 of the Illinois |
| 13 | | Income Tax Act. |
| 14 | | (Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)
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