94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2523


 
Introduced 2/18/2005, by Rep. Jim Sacia
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 5/216 new






35 ILCS 5/217 new










    Amends the Illinois Income Tax Act. Creates
a $500 tax credit for each taxpayer who purchases 1,000 gallons or more of motor fuel that contains more than 10% but not more than 30% ethanol and creates a  $500 tax credit for each taxpayer who purchases 1,000 gallons or more of biodiesel blend that contains more than 5% biodiesel.  Creates a
$20,000 tax credit for each motor fuel retailer who installs one or more new fuel tanks and  dispensing pumps  that are used solely to dispense motor fuel that contains more than 10% but not more than 30% ethanol at his or her motor fuel retail store in
Illinois during the taxable year.   Creates a
$20,000 tax credit for each motor fuel retailer who installs one or more new fuel tanks and  dispensing pumps  that are used solely to dispense biodiesel blend that contains more than 5% biodiesel at his or her motor fuel retail store in
Illinois during the taxable year. Provides that each of the credits applies
to taxable years ending on or after December 31, 2005 and on or before December
30, 2010.  Limits each of the credits to one year. Provides that the credits may not be carried forward or back and may not
reduce the taxpayer's liability to less than zero.  Effective January 1, 2006.
















LRB094 09847 BDD 40103 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB2523

LRB094 09847 BDD 40103 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
Sections 216, 217, and 218 as follows:
 
6
    (35 ILCS 5/216  new)
7
    Sec. 216. Single-year tax credits for alternative fuel 
8
purchases.
9
    (a) For taxable years ending on or after December 31,
2005 
10
and on or before December 30, 2010, each
taxpayer who
purchases 
11
1,000 gallons or more of motor fuel that contains more than 10% 
12
but not more than 30% ethanol is entitled to a credit against 
13
the tax
imposed by
subsections (a) and (b) of Section 201 in 
14
the amount of $500. The same taxpayer may take this credit in 
15
only one taxable year.
16
    (b) For taxable years ending on or after December 31,
2005 
17
and on or before December 30, 2010, each
taxpayer who
purchases 
18
1,000 gallons or more of biodiesel blend that contains more 
19
than 5% biodiesel is entitled to a credit against the tax

20
imposed by
subsections (a) and (b) of Section 201 in the amount 
21
of $500. The same taxpayer may take this credit in only one 
22
taxable year.
23
    (c) If the taxpayer is a partnership or Subchapter S

24
corporation,  the  credits  are allowed  to  the  partners  or

25
shareholders in accordance with the determination  of  income
and  
26
distributive  share of income under Sections 702 and 704
and  
27
Subchapter  S  of  the  Internal   Revenue   Code.
28
    (d) The credits may not be carried forward  or  back.   In  no

29
event shall a credits under this Section reduce the taxpayer's

30
liability to less than zero.
31
    (e) The Department must adopt rules to administer this 
32
Section, including rules concerning the verification on 
 


 






HB2523
- 2 -
LRB094 09847 BDD 40103 b




1
alternative fuel purchases.
 
2
    (35 ILCS 5/217  new)
3
    Sec. 217. Single-year tax credits for installing 
4
alternative fuel pumps.
5
    (a) For taxable years ending on or after December 31, 2005 
6
and on or before
December 30,
2010, each motor fuel retailer 
7
who installs,  at his or her motor fuel retail
store in Illinois 
8
during the taxable year, one
or more new fuel tanks and  
9
dispensing pumps  that are used solely to dispense motor fuel 
10
that contains more than 10% but not more than 30% ethanol is 
11
entitled to a credit against the
tax imposed by subsections (a) 
12
and (b) of Section 201 in the amount of $20,000. The same 
13
taxpayer may take this credit in only one taxable year.
14
    (b) For taxable years ending on or after December 31, 2005 
15
and on or before
December 30,
2010, each motor fuel retailer 
16
who installs,  at his or her motor fuel retail
store in Illinois 
17
during the taxable year, one
or more new fuel tanks and  
18
dispensing pumps  that are used solely to dispense biodiesel 
19
blend that contains more than 5% biodiesel is entitled to a 
20
credit against the
tax imposed by subsections (a) and (b) of 
21
Section 201 in the amount of $20,000. The same taxpayer may 
22
take this credit in only one taxable year.
23
    (c) If the taxpayer is a partnership or Subchapter S

24
corporation,  the  credits  are allowed  to  the  partners  or

25
shareholders in accordance with the determination  of  income
and  
26
distributive  share of income under Sections 702 and 704
and  
27
Subchapter  S  of  the  Internal   Revenue   Code.
28
    (d) The credits may not be carried forward  or  back.   In  no

29
event shall a credits under this Section reduce the taxpayer's

30
liability to less than zero.
31
    (e) The Department must adopt rules to administer this 
32
Section.
 

33
    Section 99. Effective date. This Act takes effect January 
34
1, 2006.