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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 1. Short title. This Act may be cited as the Endow
5Illinois Tax Credit Act.
6    Section 5. Definitions. For the purposes of this Act:
7    "Department" means the Department of Commerce and Economic
9    "Endowment gift" means an irrevocable contribution, made
10in cash or stock, to a permanent endowment fund held by a
11qualified community foundation.
12    "Permanent endowment fund" means a fund that (i) is held by
13a qualified community foundation to provide benefit only to
14charitable causes in the State, (ii) is intended to exist in
15perpetuity, and (iii) has an annual spend rate based on the
16foundation spending policy, but not to exceed 7%.
17    "Qualified community foundation" means a community
18foundation or similar publicly supported organization
19described in Section 170 (b)(1)(A)(vi) of the Internal Revenue
20Code of 1986 that is organized or operating in this State and
21that substantially complies with the national standards for
22U.S. community foundations that are established by the National
23Council on Foundations, as determined by the Department.



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1    Section 10. Tax credit awards.
2    (a) The Department shall award an income tax credit to
3taxpayers who make an endowment gift to a permanent endowment
4fund. The amount of the credit that may be awarded to a
5taxpayer by the Department under this Act is an amount equal to
650% of the endowment gift. Except in the case of an individual,
7a taxpayer is not eligible to receive a credit under this Act
8for the taxable year if the taxpayer's average gross business
9receipts for the 3 taxable years prior to the taxable year for
10which the taxpayer applies for a credit under this Act exceed
11$5,000,000 for taxable years ending in 2013 or $12,500,000 for
12taxable years ending in 2014 or thereafter.
13    (b) The aggregate amount of all credits that the Department
14may award under this Act in any calendar year may not exceed
15$5,000,000 in 2013, $12,500,000 in 2014, or $25,000,000 in 2015
16and each calendar year thereafter. The aggregate amount of all
17credits that the Department may authorize to any single
18taxpayer in a calendar year may not exceed $500,000 in 2013,
19$1,250,000 in 2014, or $2,500,000 in 2015 and each calendar
20year thereafter. The aggregate amount of all credits that the
21Department may authorize based on endowment gifts to any
22specific community foundation may not exceed $2,500,000 in
232013, $6,250,000 in 2014, or $12,500,000 in 2015 and each
24calendar year thereafter.
25    (c) If the Department receives applications for tax credits



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1in excess of the aggregate limitation under subsection (b),
2then the applications must be prioritized by the date that the
3Department received them, and the Department must establish a
4wait list for the next year's allocation of tax credits and
5fund applications in the order listed on that wait list.
6    Section 15. Applications for tax credits.
7    (a) The Department shall develop and make available a
8standardized application pertaining to the allocation of tax
9credits under this Act. A separate application for tax credit
10must be made for each endowment gift, and shall be submitted
11jointly by the taxpayer and the qualified community foundation
12to which the endowment gift is to be made. The application
13shall include such information as the Department deems
14necessary to determine that the taxpayer is eligible to receive
15a credit under this Act, and such other information as the
16Department deems necessary to the administration of this Act.
17If an application for tax credit is approved, the Department
18shall issue the taxpayer a certificate of verification that
19states the amount of the tax credit to which the taxpayer is
20entitled and the taxable year to which such credit applies. A
21taxpayer claiming a credit under this Act shall submit to the
22Department of Revenue a copy of the certificate of verification
23under this Act.
24    (b) Of the annual amount available for tax credits under
25subsection (b) of Section 10 of this Act, 10% must be reserved



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1for those endowment gifts of $30,000 or less. If the entire 10%
2that is reserved for permanent endowment gifts totalling
3$30,000 or less is not allocated, then the remaining amount is
4available in the following years for endowment gifts of $30,000
5or less.
6    (c) The Department must accept applications and authorize
7credits on an ongoing basis. The Department must make public,
8by June 1 and by December 1 of each year, the total number of
9requests for tax credits and the total amount of requested tax
10credits that have been submitted and awarded.
11    (d) Notwithstanding any other law to the contrary, the
12Director of Revenue may make available to the Department
13information received by the Director from tax returns filed
14under the Illinois Income Tax Act, for the limited purpose of
15determining the taxpayer's eligibility for credit under this
17    Section 20. Annual report. By January 31 of each year, the
18Department must submit an annual report to the Governor and the
19General Assembly concerning the activities conducted under
20this Act during the previous calendar year. The report must
21include a detailed listing of tax credits authorized under this
22Act by the Department.
23    Section 90. The Illinois Income Tax Act is amended by
24adding Section 224 as follows:



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1    (35 ILCS 5/224 new)
2    Sec. 224. The Endow Illinois Tax Credit.
3    (a) For taxable years ending on or after December 31, 2013,
4each taxpayer for whom a tax credit has been awarded by the
5Department of Commerce and Economic Opportunity under the Endow
6Illinois Tax Credit Act is entitled to a credit against the tax
7imposed under subsections (a) and (b) of Section 201 in an
8amount equal to the amount awarded under that Act.
9    (b) If the taxpayer is a partnership or a Subchapter S
10corporation, the credit is allowed to the partners or
11shareholders in accordance with the determination of income and
12distributive share of income under Sections 702 and 704 and
13Subchapter S of the Internal Revenue Code.
14    (c) The credit may not be carried back and may not reduce
15the taxpayer's liability to less than zero. If the amount of
16the credit exceeds the tax liability for the year, the excess
17may be carried forward and applied to the tax liability of the
185 taxable years following the excess credit year. The tax
19credit shall be applied to the earliest year for which there is
20a tax liability. If there are credits for more than one year
21that are available to offset a liability, the earlier credit
22shall be applied first.
23    Section 99. Effective date. This Act takes effect upon
24becoming law.