Rep. Michael J. Zalewski

Filed: 11/29/2010

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1525

2    AMENDMENT NO. ______. Amend House Bill 1525 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Economic Development for a Growing Economy
5Tax Credit Act is amended by changing Section 5-15 as follows:
 
6    (35 ILCS 10/5-15)
7    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
8forth in this Act, a Taxpayer is entitled to a Credit against
9or, as described in subsection (g) of this Section, a payment
10towards taxes imposed pursuant to subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act that may be imposed
12on the Taxpayer for a taxable year beginning on or after
13January 1, 1999, if the Taxpayer is awarded a Credit by the
14Department under this Act for that taxable year.
15    (a) The Department shall make Credit awards under this Act
16to foster job creation and retention in Illinois.

 

 

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1    (b) A person that proposes a project to create new jobs in
2Illinois must enter into an Agreement with the Department for
3the Credit under this Act.
4    (c) The Credit shall be claimed for the taxable years
5specified in the Agreement.
6    (d) The Credit shall not exceed the Incremental Income Tax
7attributable to the project that is the subject of the
8Agreement.
9    (e) Nothing herein shall prohibit a Tax Credit Award to an
10Applicant that uses a PEO if all other award criteria are
11satisfied.
12    (f) In lieu of the Credit allowed under this Act against
13the taxes imposed pursuant to subsections (a) and (b) of
14Section 201 of the Illinois Income Tax Act for any taxable year
15ending on or after December 31, 2009, the Taxpayer may elect to
16claim the Credit against its obligation to pay over withholding
17under Section 704A of the Illinois Income Tax Act.
18        (1) The election under this subsection (f) may be made
19    only by a Taxpayer that (i) is primarily engaged in one of
20    the following business activities: water purification and
21    treatment, motor vehicle metal stamping, automobile
22    manufacturing, automobile and light duty motor vehicle
23    manufacturing, motor vehicle manufacturing, light truck
24    and utility vehicle manufacturing, heavy duty truck
25    manufacturing, or motor vehicle body manufacturing and
26    (ii) meets the following criteria:

 

 

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1            (A) the Taxpayer (i) had an Illinois net loss or an
2        Illinois net loss deduction under Section 207 of the
3        Illinois Income Tax Act for the taxable year in which
4        the Credit is awarded, (ii) employed a minimum of 1,000
5        full-time employees in this State during the taxable
6        year in which the Credit is awarded, (iii) has an
7        Agreement under this Act on December 14, 2009 (the
8        effective date of Public Act 96-834), and (iv) is in
9        compliance with all provisions of that Agreement;
10            (B) the Taxpayer (i) had an Illinois net loss or an
11        Illinois net loss deduction under Section 207 of the
12        Illinois Income Tax Act for the taxable year in which
13        the Credit is awarded, (ii) employed a minimum of 1,000
14        full-time employees in this State during the taxable
15        year in which the Credit is awarded, and (iii) has
16        applied for an Agreement within 365 days after December
17        14, 2009 (the effective date of Public Act 96-834); or
18            (C) the Taxpayer (i) had an Illinois net operating
19        loss carryforward under Section 207 of the Illinois
20        Income Tax Act in a taxable year ending during calendar
21        year 2008, (ii) has applied for an Agreement within 150
22        days after the effective date of this amendatory Act of
23        the 96th General Assembly, (iii) creates at least 400
24        new jobs in Illinois, (iv) retains at least 2,000 jobs
25        in Illinois that would have been at risk of relocation
26        out of Illinois over a 10-year period, and (v) makes a

 

 

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1        capital investment of at least $75,000,000; or .
2            (D) the Taxpayer (ii) had an Illinois net operating
3        loss carryforward under Section 207 of the Illinois
4        Income Tax Act in a taxable year ending during calendar
5        year 2009, (ii) has applied for an Agreement within 150
6        days after the effective date of this amendatory Act of
7        the 96th General Assembly, (iii) creates at least 150
8        new jobs, (iv) retains at least 1,000 jobs in Illinois
9        that would have been at risk of relocation out of
10        Illinois over a 10-year period, and (v) makes a capital
11        investment of at least $57,000,000.
12        (2) An election under this subsection shall allow the
13    credit to be taken against payments otherwise due under
14    Section 704A of the Illinois Income Tax Act during the
15    first calendar year beginning after the end of the taxable
16    year in which the credit is awarded under this Act.
17        (3) The election shall be made in the form and manner
18    required by the Illinois Department of Revenue and, once
19    made, shall be irrevocable.
20        (4) If a Taxpayer who meets the requirements of
21    subparagraph (A) of paragraph (1) of this subsection (f)
22    elects to claim the Credit against its withholdings as
23    provided in this subsection (f), then, on and after the
24    date of the election, the terms of the Agreement between
25    the Taxpayer and the Department may not be further amended
26    during the term of the Agreement.

 

 

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1    (g) A pass-through entity that has been awarded a credit
2under this Act, its shareholders, or its partners may treat
3some or all of the credit awarded pursuant to this Act as a tax
4payment for purposes of the Illinois Income Tax Act. The term
5"tax payment" means a payment as described in Article 6 or
6Article 8 of the Illinois Income Tax Act or a composite payment
7made by a pass-through entity on behalf of any of its
8shareholders or partners to satisfy such shareholders' or
9partners' taxes imposed pursuant to subsections (a) and (b) of
10Section 201 of the Illinois Income Tax Act. In no event shall
11the amount of the award credited pursuant to this Act exceed
12the Illinois income tax liability of the pass-through entity or
13its shareholders or partners for the taxable year.
14(Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09;
1596-836, eff. 12-16-09; 96-905, eff. 6-4-10; 96-1000, eff.
167-2-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".