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.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2781LRB098 08915 HLH 39047 b

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 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Illinois export incentive credit.
8    (a) Subject to the limitations set forth in this Section,
9for taxable years beginning on or after January 1, 2014, each
10freight forwarder is entitled to a credit against the tax
11imposed by subsections (a) and (b) of Section 201 in an amount
12equal to $0.50 per chargeable kilo shipped by that freight
13forwarder from an airport in this State during the taxable
14year.
15    (b) To receive credits under this Section, the freight
16forwarder shall file an application with the Department within
17120 calendar days after the date of shipment. The freight
18forwarder shall include with the application the master airway
19bill for the shipment for which the freight forwarder is
20seeking credit under this Section.
21    (c) The Department shall not issue more than $7,500,000 in
22credits under this Section in any fiscal year. Credits shall be
23issued based on the order in which the application is received.

 

 

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1Any tax credits which are authorized but not issued in any
2fiscal year because of the limitation under this subsection (c)
3may be carried forward and issued in subsequent fiscal years.
4    (d) Credits awarded under this Section may not reduce the
5taxpayer's liability to less than zero. If the amount of the
6tax credit exceeds the tax liability for the year, the excess
7may be carried forward and applied to the tax liability of the
85 taxable years following the excess credit year. The credit
9must be applied to the earliest year for which there is a tax
10liability. If there are credits from more than one tax year
11that are available to offset a liability, then the earlier
12credit must be applied first.
13    (e) As used in this Section:
14        "Chargeable kilo" means a kilo of freight that is
15    shipped on a qualifying outbound flight, as measured by the
16    greater of:
17            (1) actual weight; or
18            (2) dimensional weight, as determined by the
19        conversion factors promulgated by the International
20        Air Transport Association.
21        "Direct international aircraft flight" means a single
22    transoceanic flight that operates to an international
23    destination in accordance with the operator's bilateral
24    route authority.
25        "Freight forwarder" means a taxpayer that assumes
26    responsibility in the ordinary course of its business for

 

 

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1    the transportation of cargo from the place of receipt to
2    the place of destination, including the use of a qualifying
3    outbound flight.
4        "Qualifying outbound flight" means a direct
5    international aircraft flight that carries either all
6    cargo or a mix of passengers and cargo from an airport in
7    this State to an international destination.
8    (f) This Section is exempt from the provisions of Section
9250.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.