97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3507

 

Introduced 2/24/2011, by Rep. Michelle Mussman

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/221 new

    Amends the Illinois Income Tax Act. Creates a credit for taxpayers who install a renewable energy system in a residential or commercial building owned or leased by the taxpayer during the taxable year. Sets forth the amount of the credit. Provides that the credit may be carried forward. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 221 as follows:
 
6    (35 ILCS 5/221 new)
7    Sec. 221. Credit for renewable energy systems.
8    (a) For taxable years beginning on or after January 1, 2012
9and ending on or before December 31, 2017, each taxpayer that
10installs a renewable energy system during the taxable year in a
11residential or commercial building owned or leased by the
12taxpayer is entitled to a credit against the tax imposed under
13subsections (a) and (b) of Section 201 in an amount equal to
14(i) 30% of the total system cost or $25,000, whichever is less,
15if the system is under 50kW and produces at least 25% of the
16building's energy use or (ii) 30% of the total system cost or
17$100,000, whichever is less, if the system produces at least
18300,000 kilowatt hours per year.
19    (b) The tax credit may not reduce the taxpayer's liability
20to less than zero. If the amount of the tax credit exceeds the
21tax liability for the year, the excess may be carried forward
22and applied to the tax liability of the 5 taxable years
23following the excess credit year. The credit must be applied to

 

 

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1the earliest year for which there is a tax liability. If there
2are credits from more than one tax year that are available to
3offset a liability, then the earlier credit must be applied
4first.
5    (c) For the purposes of this Section, "renewable energy
6system" means a system that generates energy from wind, solar
7thermal energy, photovoltaic cells and panels, biodiesel,
8crops and untreated and unadulterated organic waste biomass,
9tree waste, hydropower that does not involve new construction
10or significant expansion of hydropower dams, and other
11alternative sources of environmentally preferable energy.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.