HB2781 98TH GENERAL ASSEMBLY

LRB098 08915 HLH 39047 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2781

Introduced 2/21/2013, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Creates a credit for freight forwarders in an amount equal to $0.50 per chargeable kilo shipped by that freight forwarder from an airport in this State during the taxable year. Defines "freight forwarder" as a taxpayer that assumes responsibility in the ordinary course of its business for the transportation of cargo from the place of receipt to the place of destination, including the use of direct international flights. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Illinois export incentive credit.

(a) Subject to the limitations set forth in this Section, for taxable years beginning on or after January 1, 2014, each freight forwarder is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to $0.50 per chargeable kilo shipped by that freight forwarder from an airport in this State during the taxable year.

(b) To receive credits under this Section, the freight forwarder shall file an application with the Department within 120 calendar days after the date of shipment. The freight forwarder shall include with the application the master airway bill for the shipment for which the freight forwarder is seeking credit under this Section.

(c) The Department shall not issue more than $7,500,000 in credits under this Section in any fiscal year. Credits shall be issued based on the order in which the application is received. Any tax credits which are authorized but not issued in any fiscal year because of the limitation under this subsection (c) may be carried forward and issued in subsequent fiscal years.

(d) Credits awarded under this Section may not reduce the taxpayer's liability to less than zero. If the amount of the tax credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit must be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, then the earlier credit must be applied first.

(e) As used in this Section:

"Chargeable kilo" means a kilo of freight that is shipped on a qualifying outbound flight, as measured by the greater of:

(1) actual weight; or

(2) dimensional weight, as determined by the conversion factors promulgated by the International Air Transport Association.

"Direct international aircraft flight" means a single transoceanic flight that operates to an international destination in accordance with the operator's bilateral route authority.

"Freight forwarder" means a taxpayer that assumes responsibility in the ordinary course of its business for the transportation of cargo from the place of receipt to the place of destination, including the use of a qualifying outbound flight.

"Qualifying outbound flight" means a direct international aircraft flight that carries either all cargo or a mix of passengers and cargo from an airport in this State to an international destination.

(f) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.