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1 | AN ACT in relation to taxes.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||||||
5 | changing
Section 211 as follows:
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6 | (35 ILCS 5/211)
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7 | Sec. 211. Economic Development for a Growing Economy Tax | ||||||||||||||||||||||||||||
8 | Credit. For tax years beginning on or after January 1, 1999, a | ||||||||||||||||||||||||||||
9 | Taxpayer
who has entered into an Agreement under the Economic | ||||||||||||||||||||||||||||
10 | Development for a Growing
Economy Tax Credit Act is entitled to | ||||||||||||||||||||||||||||
11 | a credit against the taxes imposed
under subsections (a) and | ||||||||||||||||||||||||||||
12 | (b) of Section 201 of this Act in an amount to be
determined in | ||||||||||||||||||||||||||||
13 | the Agreement. If the Taxpayer is a partnership or Subchapter
S | ||||||||||||||||||||||||||||
14 | corporation, the credit shall be allowed to the partners or | ||||||||||||||||||||||||||||
15 | shareholders in
accordance with the determination of income and | ||||||||||||||||||||||||||||
16 | distributive share of income
under Sections 702 and 704 and | ||||||||||||||||||||||||||||
17 | subchapter S of the Internal Revenue Code.
The Department, in | ||||||||||||||||||||||||||||
18 | cooperation with the Department
of Commerce and Economic | ||||||||||||||||||||||||||||
19 | Opportunity, shall prescribe rules to enforce and
administer | ||||||||||||||||||||||||||||
20 | the provisions of this Section. This Section is
exempt from the | ||||||||||||||||||||||||||||
21 | provisions of Section 250 of this Act.
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22 | The credit shall be subject to the conditions set forth in
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23 | the Agreement and the following limitations:
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1 | (1) The tax credit shall not exceed the Incremental | ||||||
2 | Income Tax
(as defined in Section 5-5 of the Economic | ||||||
3 | Development for a Growing Economy
Tax Credit Act) with | ||||||
4 | respect to the project.
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5 | (2) The amount of the credit allowed during the tax | ||||||
6 | year plus the sum of
all amounts allowed in prior years | ||||||
7 | shall not exceed 100% of the aggregate
amount expended by | ||||||
8 | the Taxpayer during all prior tax years on approved costs
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9 | defined by Agreement.
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10 | (3) The amount of the credit shall be determined on an | ||||||
11 | annual
basis. Except as applied in a carryover year | ||||||
12 | pursuant to Section 211(4) of
this Act, the credit may not | ||||||
13 | be applied against any State
income tax liability in more | ||||||
14 | than 15
10 taxable
years; provided, however, that (i) an | ||||||
15 | eligible business certified by the
Department of Commerce | ||||||
16 | and Economic Opportunity under the Corporate Headquarters
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17 | Relocation Act may not
apply the credit against any of its | ||||||
18 | State income tax liability in more than 15
taxable years
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19 | and (ii) credits allowed to that eligible business are | ||||||
20 | subject to the
conditions
and requirements set forth in | ||||||
21 | Sections 5-35 and 5-45 of the Economic
Development for a | ||||||
22 | Growing Economy Tax Credit Act.
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23 | (4) The credit may not exceed the amount of taxes | ||||||
24 | imposed pursuant to
subsections (a) and (b) of Section 201 | ||||||
25 | of this Act. Any credit
that is unused in the year the | ||||||
26 | credit is computed may be carried forward and
applied to |
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1 | the tax liability of the 5 taxable years following the | ||||||
2 | excess credit
year. The credit shall be applied to the | ||||||
3 | earliest year for which there is a
tax liability. If there | ||||||
4 | are credits from more than one tax year that are
available | ||||||
5 | to offset a liability, the earlier credit shall be applied | ||||||
6 | first.
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7 | (5) No credit shall be allowed with respect to any | ||||||
8 | Agreement for any
taxable year ending after the | ||||||
9 | Noncompliance Date. Upon receiving notification
by the | ||||||
10 | Department of Commerce and Economic Opportunity of the | ||||||
11 | noncompliance of a
Taxpayer with an Agreement, the | ||||||
12 | Department shall notify the Taxpayer that no
credit is | ||||||
13 | allowed with respect to that Agreement for any taxable year | ||||||
14 | ending
after the Noncompliance Date, as stated in such | ||||||
15 | notification. If any credit
has been allowed with respect | ||||||
16 | to an Agreement for a taxable year ending after
the | ||||||
17 | Noncompliance Date for that Agreement, any refund paid to | ||||||
18 | the
Taxpayer for that taxable year shall, to the extent of | ||||||
19 | that credit allowed, be
an erroneous refund within the | ||||||
20 | meaning of Section 912 of this Act.
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21 | (6) For purposes of this Section, the terms | ||||||
22 | "Agreement", "Incremental
Income Tax", and "Noncompliance | ||||||
23 | Date" have the same meaning as when used
in the Economic | ||||||
24 | Development for a Growing Economy Tax Credit Act.
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25 | (Source: P.A. 94-793, eff. 5-19-06.)
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1 | Section 10. The Economic Development for a Growing Economy | ||||||
2 | Tax Credit Act is
amended by changing Sections 5-20 and 5-45 as | ||||||
3 | follows:
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4 | (35 ILCS 10/5-20)
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5 | Sec. 5-20. Application for a project to create and retain | ||||||
6 | new jobs.
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7 | (a) Any Taxpayer proposing a project located or planned to | ||||||
8 | be located in
Illinois may request consideration
for | ||||||
9 | designation of its project, by formal written letter of request | ||||||
10 | or by
formal application to the Department,
in which the | ||||||
11 | Applicant states its intent to make at least a specified level | ||||||
12 | of
investment and
intends to hire or retain a
specified number | ||||||
13 | of full-time employees at a designated location in Illinois.
As
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14 | circumstances require, the
Department may require a formal | ||||||
15 | application from an Applicant and a formal
letter of request | ||||||
16 | for
assistance.
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17 | (b) In order to qualify for Credits under this Act, an | ||||||
18 | Applicant's project
must:
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19 | (1) involve an investment of at least $5,000,000 in | ||||||
20 | capital improvements
to be placed in service and to employ | ||||||
21 | at least 25 New Employees within the
State as a direct | ||||||
22 | result of the project;
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23 | (2) involve an investment of at least an amount (to be | ||||||
24 | expressly specified
by the Department and the Committee) in | ||||||
25 | capital improvements to be placed in
service and will |
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1 | employ at least an amount (to be expressly specified by the
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2 | Department and the Committee) of New Employees
within the | ||||||
3 | State, provided that the Department and the Committee have
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4 | determined that the project will provide a substantial | ||||||
5 | economic benefit to the
State; or | ||||||
6 | (3) if the applicant has 100 or fewer employees, | ||||||
7 | involve an investment of at least $1,000,000 in capital | ||||||
8 | improvements to be placed in service and to employ at least | ||||||
9 | 5 New Employees within the State and that the State will | ||||||
10 | receive a return on its investment as a direct result of | ||||||
11 | the project.
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12 | (c) After receipt of an application, the Department may | ||||||
13 | enter into an
Agreement with the Applicant if the
application | ||||||
14 | is accepted in accordance with Section 5-25.
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15 | (Source: P.A. 93-882, eff. 1-1-05.)
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16 | (35 ILCS 10/5-45)
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17 | Sec. 5-45. Amount and duration of the credit.
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18 | (a) The Department shall
determine the amount and
duration | ||||||
19 | of the credit awarded under this Act. The duration of the
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20 | credit may not exceed 15
10 taxable years.
The credit may be | ||||||
21 | stated as
a percentage of the Incremental Income Tax | ||||||
22 | attributable
to the applicant's project and may include a fixed | ||||||
23 | dollar limitation.
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24 | (b) Notwithstanding subsection (a),
and except as the | ||||||
25 | credit may be applied in a carryover year pursuant to Section
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1 | 211(4) of the Illinois Income Tax Act, the credit may be | ||||||
2 | applied against the
State income tax liability in more than 10 | ||||||
3 | taxable years but not in more than
15 taxable years for an | ||||||
4 | eligible business
that (i) qualifies under this Act
and the | ||||||
5 | Corporate Headquarters Relocation Act and has in fact | ||||||
6 | undertaken a
qualifying project within the time frame specified | ||||||
7 | by the Department of
Commerce and Economic Opportunity under | ||||||
8 | that Act, and (ii) applies against its
State income tax | ||||||
9 | liability, during the entire 15-year
period, no more than 60% | ||||||
10 | of the maximum
credit per year that would otherwise be | ||||||
11 | available under this Act.
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12 | (Source: P.A. 94-793, eff. 5-19-06.)
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13 | Section 99. Effective date. This Act takes effect upon | ||||||
14 | becoming law. |