SB0489 Engrossed LRB096 06571 RCE 16655 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 Section 219 as follows:
 
6     (35 ILCS 5/219 new)
7     Sec. 219. Venture capital tax credit.
8     (a) Beginning in taxable year 2010 and through taxable year
9 2014, each taxpayer who makes an investment in a qualified
10 venture capital fund in Illinois is entitled to a credit
11 against the tax imposed under subsections (a) and (b) of
12 Section 201 of this Act. For the purposes of this Section, a
13 "qualified venture capital fund" is a fund (i) with its primary
14 office in Illinois and (ii) that has at least 50% of the total
15 number of investments in its portfolio in eligible companies
16 based in Illinois. For the purposes of this Section, an
17 eligible company is a company that meets one or more of the
18 following criteria:
19         (1) the company is located in an enterprise zone, a
20     River Edge Redevelopment Zone, or a federally designated
21     Foreign Trade Zone or Sub-Zone;
22         (2) the company is a minority-owned business or a
23     female-owned business, as defined in the Business

 

 

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1     Enterprise for Minorities, Females, and Persons with
2     Disabilities Act;
3         (3) the company has been in existence for 4 years or
4     less;
5         (4) the company is engaged in manufacturing; or
6         (5) the company's products, services, or operations
7     encourage the conservation of water, energy, or both.
8     (b) The credit shall be in the amount of (i) 10% of the
9 taxpayer's investment if the investment is made in an eligible
10 company that meets one of the criteria set forth in items (1)
11 through (5) of subsection (a) and (ii) 20% of the taxpayer's
12 investment if the investment is made in an eligible company
13 that meets more than one of the criteria set forth in items (1)
14 through (5) of subsection (a). The credit shall be taken in the
15 taxable year in which the qualified venture capital fund makes
16 the investment in the eligible business.
17     (c) A credit under this Section shall not reduce that
18 taxpayer's income tax liability to less than zero. If the
19 amount of the tax credit exceeds the tax liability for the
20 year, the excess may be carried forward and applied to the tax
21 liability of the 5 taxable years following the excess credit
22 year. The credit must be applied to the earliest year for which
23 there is a tax liability. If there are credits from more than
24 one tax year that are available to offset a liability, then the
25 earlier credit must be applied first.
 
26     Section 99. Effective date. This Act takes effect upon

 

 

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1 becoming law.