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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||
5 | Section 224 as follows: | ||||||||||||||||||||||||
6 | (35 ILCS 5/224 new) | ||||||||||||||||||||||||
7 | Sec. 224. Agriculture credit. | ||||||||||||||||||||||||
8 | (a) Each taxpayer who owns or rents and uses real property | ||||||||||||||||||||||||
9 | for agricultural purposes is entitled to a credit against the | ||||||||||||||||||||||||
10 | tax imposed by subsections (a) and (b) of Section 201 as | ||||||||||||||||||||||||
11 | provided in this Section. For taxable years beginning on or | ||||||||||||||||||||||||
12 | after January 1, 2014 and prior to January 1, 2016, the credit | ||||||||||||||||||||||||
13 | shall be 1.5% of the taxpayer's eligible qualified production | ||||||||||||||||||||||||
14 | activities income for the taxable year. For taxable years | ||||||||||||||||||||||||
15 | beginning on or after January 1, 2016, the credit shall be | ||||||||||||||||||||||||
16 | 2.25% of the taxpayer's eligible qualified production | ||||||||||||||||||||||||
17 | activities income for the taxable year. | ||||||||||||||||||||||||
18 | (b) As used in this Section: | ||||||||||||||||||||||||
19 | "Direct costs" includes all of the taxpayer's ordinary and | ||||||||||||||||||||||||
20 | necessary expenses paid or incurred during the taxable year in | ||||||||||||||||||||||||
21 | carrying on the trade or business that are deductible under | ||||||||||||||||||||||||
22 | Section 162 of the Internal Revenue Code and identified as | ||||||||||||||||||||||||
23 | direct costs in the taxpayer's managerial or cost accounting |
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1 | records. | ||||||
2 | "Indirect costs" includes all of the taxpayer's ordinary | ||||||
3 | and necessary expenses paid or incurred during the taxable year | ||||||
4 | in carrying on the trade or business that are deductible under | ||||||
5 | Section 162 of the Internal Revenue Code, other than the cost | ||||||
6 | of goods sold and direct costs, and identified as indirect | ||||||
7 | costs in the taxpayer's managerial or cost accounting records. | ||||||
8 | "Production gross receipts" means gross receipts from the | ||||||
9 | lease, rental, license, sale, exchange, or other disposition of | ||||||
10 | qualified production property. | ||||||
11 | "Production gross receipts factor" means a fraction, the | ||||||
12 | numerator of which is production gross receipts and the | ||||||
13 | denominator of which is the taxpayer's base income, as defined | ||||||
14 | under Section 203 of this Act. | ||||||
15 | "Qualified production activities income" means the amount | ||||||
16 | of the taxpayer's production gross receipts for the taxable | ||||||
17 | year that exceeds the sum of the cost of goods sold that are | ||||||
18 | allocable to such receipts, the direct costs that are allocable | ||||||
19 | to such receipts, and the indirect costs multiplied by the | ||||||
20 | production gross receipts factor. "Qualified production | ||||||
21 | activities income" does not include any of the following: | ||||||
22 | (1) Income from film production. | ||||||
23 | (2) Income from producing, transmitting, or | ||||||
24 | distributing electricity, natural gas, or potable water. | ||||||
25 | (3) Income from constructing real property. | ||||||
26 | (4) Income from engineering or architectural services |
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1 | performed with respect to constructing real property. | ||||||
2 | (5) Income from the sale of food and beverages prepared | ||||||
3 | by the taxpayer at a retail establishment. | ||||||
4 | (6) Income from the lease, rental, license, sale, | ||||||
5 | exchange, or other disposition of land. | ||||||
6 | "Qualified production property" means tangible personal | ||||||
7 | property produced, grown, or extracted in whole or in part by | ||||||
8 | the taxpayer on or from agricultural property. | ||||||
9 | (c) This Section is exempt from the provisions of Section | ||||||
10 | 250.
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