Sen. Karen McConnaughay
Filed: 4/17/2015
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 1660
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 1660 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | changing Section 211 as follows:
| ||||||
6 | (35 ILCS 5/211)
| ||||||
7 | Sec. 211. Economic Development for a Growing Economy Tax | ||||||
8 | Credit. For tax years beginning on or after January 1, 1999, a | ||||||
9 | Taxpayer
who has entered into an Agreement under the Economic | ||||||
10 | Development for a Growing
Economy Tax Credit Act is entitled to | ||||||
11 | a credit against the taxes imposed
under subsections (a) and | ||||||
12 | (b) of Section 201 of this Act and the taxes imposed under | ||||||
13 | Sections 409, 444, and 444.1 of the Illinois Insurance Code in | ||||||
14 | an amount to be
determined in the Agreement. If the Taxpayer is | ||||||
15 | a partnership or Subchapter
S corporation, the credit shall be | ||||||
16 | allowed to the partners or shareholders in
accordance with the |
| |||||||
| |||||||
1 | determination of income and distributive share of income
under | ||||||
2 | Sections 702 and 704 and subchapter S of the Internal Revenue | ||||||
3 | Code.
The Department, in cooperation with the Department
of | ||||||
4 | Commerce and Economic Opportunity, shall prescribe rules to | ||||||
5 | enforce and
administer the provisions of this Section. This | ||||||
6 | Section is
exempt from the provisions of Section 250 of this | ||||||
7 | Act.
| ||||||
8 | The credit shall be subject to the conditions set forth in
| ||||||
9 | the Agreement and the following limitations:
| ||||||
10 | (1) The tax credit shall not exceed the Incremental | ||||||
11 | Income Tax
(as defined in Section 5-5 of the Economic | ||||||
12 | Development for a Growing Economy
Tax Credit Act) with | ||||||
13 | respect to the project.
| ||||||
14 | (2) The amount of the credit allowed during the tax | ||||||
15 | year plus the sum of
all amounts allowed in prior years | ||||||
16 | shall not exceed 100% of the aggregate
amount expended by | ||||||
17 | the Taxpayer during all prior tax years on approved costs
| ||||||
18 | defined by Agreement.
| ||||||
19 | (3) The amount of the credit shall be determined on an | ||||||
20 | annual
basis. Except as applied in a carryover year | ||||||
21 | pursuant to Section 211(4) of
this Act, the credit may not | ||||||
22 | be applied against any State
income tax liability in more | ||||||
23 | than 10 taxable
years; provided, however, that (i) an | ||||||
24 | eligible business certified by the
Department of Commerce | ||||||
25 | and Economic Opportunity under the Corporate Headquarters
| ||||||
26 | Relocation Act may not
apply the credit against any of its |
| |||||||
| |||||||
1 | State income tax liability in more than 15
taxable years
| ||||||
2 | and (ii) credits allowed to that eligible business are | ||||||
3 | subject to the
conditions
and requirements set forth in | ||||||
4 | Sections 5-35 and 5-45 of the Economic
Development for a | ||||||
5 | Growing Economy Tax Credit Act.
| ||||||
6 | (4) The credit taken against the taxes imposed
under | ||||||
7 | subsections (a) and (b) of Section 201 of this Act may not | ||||||
8 | exceed the amount of taxes imposed pursuant to
subsections | ||||||
9 | (a) and (b) of Section 201 of this Act. Any credit
that is | ||||||
10 | unused in the year the credit is computed may be carried | ||||||
11 | forward and
applied to the tax liability of the 5 taxable | ||||||
12 | years following the excess credit
year or may be taken as a | ||||||
13 | credit against the taxes imposed under Section 409, 444, or | ||||||
14 | 444.1 of the Illinois Insurance Code, as provided in the | ||||||
15 | Agreement . Credits that are carried forward The credit | ||||||
16 | shall be applied to the earliest year for which there is a
| ||||||
17 | tax liability. If there are credits from more than one tax | ||||||
18 | year that are
available to offset a liability, the earlier | ||||||
19 | credit shall be applied first.
| ||||||
20 | (5) No credit shall be allowed with respect to any | ||||||
21 | Agreement for any
taxable year ending after the | ||||||
22 | Noncompliance Date. Upon receiving notification
by the | ||||||
23 | Department of Commerce and Economic Opportunity of the | ||||||
24 | noncompliance of a
Taxpayer with an Agreement, the | ||||||
25 | Department shall notify the Taxpayer that no
credit is | ||||||
26 | allowed with respect to that Agreement for any taxable year |
| |||||||
| |||||||
1 | ending
after the Noncompliance Date, as stated in such | ||||||
2 | notification. If any credit
has been allowed with respect | ||||||
3 | to an Agreement for a taxable year ending after
the | ||||||
4 | Noncompliance Date for that Agreement, any refund paid to | ||||||
5 | the
Taxpayer for that taxable year shall, to the extent of | ||||||
6 | that credit allowed, be
an erroneous refund within the | ||||||
7 | meaning of Section 912 of this Act.
| ||||||
8 | (6) For purposes of this Section, the terms | ||||||
9 | "Agreement", "Incremental
Income Tax", and "Noncompliance | ||||||
10 | Date" have the same meaning as when used
in the Economic | ||||||
11 | Development for a Growing Economy Tax Credit Act.
| ||||||
12 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
13 | Section 10. The Economic Development for a Growing Economy | ||||||
14 | Tax Credit Act is amended by changing Sections 5-5, 5-15, and | ||||||
15 | 5-45 as follows:
| ||||||
16 | (35 ILCS 10/5-5)
| ||||||
17 | Sec. 5-5. Definitions. As used in this Act:
| ||||||
18 | "Agreement" means the Agreement between a Taxpayer and the | ||||||
19 | Department under
the provisions of Section 5-50 of this Act.
| ||||||
20 | "Applicant" means a Taxpayer that is operating a business | ||||||
21 | located or that
the Taxpayer plans to locate within the State | ||||||
22 | of Illinois and that is engaged
in interstate or intrastate | ||||||
23 | commerce for the purpose of manufacturing,
processing, | ||||||
24 | assembling, warehousing, or distributing products, conducting
|
| |||||||
| |||||||
1 | research and development, providing tourism services, or | ||||||
2 | providing services
in interstate commerce, office industries, | ||||||
3 | or agricultural processing, but
excluding retail, retail food, | ||||||
4 | health, or professional services.
"Applicant" does not include | ||||||
5 | a Taxpayer who closes or
substantially reduces an operation at | ||||||
6 | one location in the State and relocates
substantially the same | ||||||
7 | operation to another location in the State. This does
not | ||||||
8 | prohibit a Taxpayer from expanding its operations at another | ||||||
9 | location in
the State, provided that existing operations of a | ||||||
10 | similar nature located within
the State are not closed or | ||||||
11 | substantially reduced. This also does not prohibit
a Taxpayer | ||||||
12 | from moving its operations from one location in the State to | ||||||
13 | another
location in the State for the purpose of expanding the | ||||||
14 | operation provided that
the Department determines that | ||||||
15 | expansion cannot reasonably be accommodated
within the | ||||||
16 | municipality in which the business is located, or in the case | ||||||
17 | of a
business located in an incorporated area of the county, | ||||||
18 | within the county in
which the business is located, after | ||||||
19 | conferring with the chief elected
official of the municipality | ||||||
20 | or county and taking into consideration any
evidence offered by | ||||||
21 | the municipality or county regarding the ability to
accommodate | ||||||
22 | expansion within the municipality or county.
| ||||||
23 | "Committee" means the Illinois Business Investment | ||||||
24 | Committee created under
Section 5-25 of this Act within the | ||||||
25 | Illinois Economic Development Board.
| ||||||
26 | "Credit" means the amount agreed to between the Department |
| |||||||
| |||||||
1 | and Applicant
under this Act, but not to exceed the Incremental | ||||||
2 | Income Tax attributable to
the Applicant's project.
| ||||||
3 | "Department" means the Department of Commerce and Economic | ||||||
4 | Opportunity.
| ||||||
5 | "Director" means the Director of Commerce and Economic | ||||||
6 | Opportunity.
| ||||||
7 | "Full-time Employee" means an individual who is employed | ||||||
8 | for consideration
for at least 35 hours each week or who | ||||||
9 | renders any other standard of service
generally accepted by | ||||||
10 | industry custom or practice as full-time employment. An | ||||||
11 | individual for whom a W-2 is issued by a Professional Employer | ||||||
12 | Organization (PEO) is a full-time employee if employed in the | ||||||
13 | service of the Applicant for consideration for at least 35 | ||||||
14 | hours each week or who renders any other standard of service | ||||||
15 | generally accepted by industry custom or practice as full-time | ||||||
16 | employment to Applicant.
| ||||||
17 | "Incremental Income Tax" means the total amount withheld | ||||||
18 | during the taxable
year from the compensation of New Employees | ||||||
19 | under Article 7 of the Illinois
Income Tax Act arising from | ||||||
20 | employment at a project that is the subject of an
Agreement.
| ||||||
21 | "New Employee" means:
| ||||||
22 | (a) A Full-time Employee first employed by a Taxpayer | ||||||
23 | in the project
that is the subject of an Agreement and who | ||||||
24 | is hired after the Taxpayer
enters into the tax credit | ||||||
25 | Agreement.
| ||||||
26 | (b) The term "New Employee" does not include:
|
| |||||||
| |||||||
1 | (1) an employee of the Taxpayer who performs a job | ||||||
2 | that was previously
performed by another employee, if | ||||||
3 | that job existed for at least 6
months before hiring | ||||||
4 | the employee;
| ||||||
5 | (2) an employee of the Taxpayer who was previously | ||||||
6 | employed in
Illinois by a Related Member of the | ||||||
7 | Taxpayer and whose employment was
shifted to the | ||||||
8 | Taxpayer after the Taxpayer entered into the tax credit
| ||||||
9 | Agreement; or
| ||||||
10 | (3) a child, grandchild, parent, or spouse, other | ||||||
11 | than a spouse who
is legally separated from the | ||||||
12 | individual, of any individual who has a direct
or an | ||||||
13 | indirect ownership interest of at least 5% in the | ||||||
14 | profits, capital, or
value of the Taxpayer.
| ||||||
15 | (c) Notwithstanding paragraph (1) of subsection (b), | ||||||
16 | an employee may be
considered a New Employee under the | ||||||
17 | Agreement if the employee performs a job
that was | ||||||
18 | previously performed by an employee who was:
| ||||||
19 | (1) treated under the Agreement as a New Employee; | ||||||
20 | and
| ||||||
21 | (2) promoted by the Taxpayer to another job.
| ||||||
22 | (d) Notwithstanding subsection (a), the Department may | ||||||
23 | award Credit to an
Applicant with respect to an employee | ||||||
24 | hired prior to the date of the Agreement
if:
| ||||||
25 | (1) the Applicant is in receipt of a letter from | ||||||
26 | the Department stating
an
intent to enter into a credit |
| |||||||
| |||||||
1 | Agreement;
| ||||||
2 | (2) the letter described in paragraph (1) is issued | ||||||
3 | by the
Department not later than 15 days after the | ||||||
4 | effective date of this Act; and
| ||||||
5 | (3) the employee was hired after the date the | ||||||
6 | letter described in
paragraph (1) was issued.
| ||||||
7 | "Noncompliance Date" means, in the case of a Taxpayer that | ||||||
8 | is not complying
with the requirements of the Agreement or the | ||||||
9 | provisions of this Act, the day
following the last date upon | ||||||
10 | which the Taxpayer was in compliance with the
requirements of | ||||||
11 | the Agreement and the provisions of this Act, as determined
by | ||||||
12 | the Director, pursuant to Section 5-65.
| ||||||
13 | "Pass Through Entity" means an entity that is exempt from | ||||||
14 | the tax under
subsection (b) or (c) of Section 205 of the | ||||||
15 | Illinois Income Tax Act.
| ||||||
16 | "Professional Employer Organization" (PEO) means an | ||||||
17 | employee leasing company, as defined in Section 206.1(A)(2) of | ||||||
18 | the Illinois Unemployment Insurance Act.
| ||||||
19 | "Related Member" means a person that, with respect to the | ||||||
20 | Taxpayer during
any portion of the taxable year, is any one of | ||||||
21 | the following:
| ||||||
22 | (1) An individual stockholder, if the stockholder and | ||||||
23 | the members of the
stockholder's family (as defined in | ||||||
24 | Section 318 of the Internal Revenue Code)
own directly, | ||||||
25 | indirectly, beneficially, or constructively, in the | ||||||
26 | aggregate,
at least 50% of the value of the Taxpayer's |
| |||||||
| |||||||
1 | outstanding stock.
| ||||||
2 | (2) A partnership, estate, or trust and any partner or | ||||||
3 | beneficiary,
if the partnership, estate, or trust, and its | ||||||
4 | partners or beneficiaries own
directly, indirectly, | ||||||
5 | beneficially, or constructively, in the aggregate, at
| ||||||
6 | least 50% of the profits, capital, stock, or value of the
| ||||||
7 | Taxpayer.
| ||||||
8 | (3) A corporation, and any party related to the | ||||||
9 | corporation in a manner
that would require an attribution | ||||||
10 | of stock from the corporation to the
party or from the | ||||||
11 | party to the corporation under the attribution rules
of | ||||||
12 | Section 318 of the Internal Revenue Code, if the Taxpayer | ||||||
13 | owns
directly, indirectly, beneficially, or constructively | ||||||
14 | at least
50% of the value of the corporation's outstanding | ||||||
15 | stock.
| ||||||
16 | (4) A corporation and any party related to that | ||||||
17 | corporation in a manner
that would require an attribution | ||||||
18 | of stock from the corporation to the party or
from the | ||||||
19 | party to the corporation under the attribution rules of | ||||||
20 | Section 318 of
the Internal Revenue Code, if the | ||||||
21 | corporation and all such related parties own
in the | ||||||
22 | aggregate at least 50% of the profits, capital, stock, or | ||||||
23 | value of the
Taxpayer.
| ||||||
24 | (5) A person to or from whom there is attribution of | ||||||
25 | stock ownership
in accordance with Section 1563(e) of the | ||||||
26 | Internal Revenue Code, except,
for purposes of determining |
| |||||||
| |||||||
1 | whether a person is a Related Member under
this paragraph, | ||||||
2 | 20% shall be substituted for 5% wherever 5% appears in
| ||||||
3 | Section 1563(e) of the Internal Revenue Code.
| ||||||
4 | "Taxpayer" means an individual, corporation, partnership, | ||||||
5 | or other entity
that has any Illinois Income Tax liability or | ||||||
6 | any liability under Section 409, 444, or 444.1 of the Illinois | ||||||
7 | Insurance Code .
| ||||||
8 | (Source: P.A. 94-793, eff. 5-19-06; 95-375, eff. 8-23-07.)
| ||||||
9 | (35 ILCS 10/5-15) | ||||||
10 | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||||||
11 | forth in this
Act, a Taxpayer is
entitled to a Credit against | ||||||
12 | or, as described in subsection (g) of this Section, a payment | ||||||
13 | towards (i) taxes imposed pursuant to subsections (a) and (b)
| ||||||
14 | of Section 201 of the Illinois
Income Tax Act that may be | ||||||
15 | imposed on the Taxpayer for a taxable year beginning
on or
| ||||||
16 | after January 1, 1999 , (ii) taxes imposed on or after the | ||||||
17 | effective date of this amendatory Act of the 99th General | ||||||
18 | Assembly pursuant to Section 409, 444, or 444.1 of the Illinois | ||||||
19 | Insurance Code, or (iii) both (i) and (ii) ,
if the Taxpayer is | ||||||
20 | awarded a Credit by the Department under this Act for that
| ||||||
21 | taxable year. | ||||||
22 | (a) The Department shall make Credit awards under this Act | ||||||
23 | to foster job
creation and retention in Illinois. | ||||||
24 | (b) A person that proposes a project to create new jobs in | ||||||
25 | Illinois must
enter into an Agreement with the
Department for |
| |||||||
| |||||||
1 | the Credit under this Act. | ||||||
2 | (c) The Credit shall be claimed for the taxable years | ||||||
3 | specified in the
Agreement. | ||||||
4 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
5 | attributable to
the project that is the subject of the | ||||||
6 | Agreement. | ||||||
7 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
8 | Applicant that uses a PEO if all other award criteria are | ||||||
9 | satisfied.
| ||||||
10 | (f) In lieu of the Credit allowed under this Act against | ||||||
11 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
12 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
13 | ending on or after December 31, 2009, the Taxpayer may elect to | ||||||
14 | claim the Credit against its obligation to pay over withholding | ||||||
15 | under Section 704A of the Illinois Income Tax Act. | ||||||
16 | (1) The election under this subsection (f) may be made | ||||||
17 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
18 | the following business activities: water purification and | ||||||
19 | treatment, motor vehicle metal stamping, automobile | ||||||
20 | manufacturing, automobile and light duty motor vehicle | ||||||
21 | manufacturing, motor vehicle manufacturing, light truck | ||||||
22 | and utility vehicle manufacturing, heavy duty truck | ||||||
23 | manufacturing, motor vehicle body manufacturing, cable | ||||||
24 | television infrastructure design or manufacturing, or | ||||||
25 | wireless telecommunication or computing terminal device | ||||||
26 | design or manufacturing for use on public networks and (ii) |
| |||||||
| |||||||
1 | meets the following criteria: | ||||||
2 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
3 | Illinois net loss deduction under Section 207 of the | ||||||
4 | Illinois Income Tax Act for the taxable year in which | ||||||
5 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
6 | full-time employees in this State during the taxable | ||||||
7 | year in which the Credit is awarded, (iii) has an | ||||||
8 | Agreement under this Act on December 14, 2009 (the | ||||||
9 | effective date of Public Act 96-834), and (iv) is in | ||||||
10 | compliance with all provisions of that Agreement; | ||||||
11 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
12 | Illinois net loss deduction under Section 207 of the | ||||||
13 | Illinois Income Tax Act for the taxable year in which | ||||||
14 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
15 | full-time employees in this State during the taxable | ||||||
16 | year in which the Credit is awarded, and (iii) has | ||||||
17 | applied for an Agreement within 365 days after December | ||||||
18 | 14, 2009 (the effective date of Public Act 96-834); | ||||||
19 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
20 | loss carryforward under Section 207 of the Illinois | ||||||
21 | Income Tax Act in a taxable year ending during calendar | ||||||
22 | year 2008, (ii) has applied for an Agreement within 150 | ||||||
23 | days after the effective date of this amendatory Act of | ||||||
24 | the 96th General Assembly, (iii) creates at least 400 | ||||||
25 | new jobs in Illinois, (iv) retains at least 2,000 jobs | ||||||
26 | in Illinois that would have been at risk of relocation |
| |||||||
| |||||||
1 | out of Illinois over a 10-year period, and (v) makes a | ||||||
2 | capital investment of at least $75,000,000; | ||||||
3 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
4 | loss carryforward under Section 207 of the Illinois | ||||||
5 | Income Tax Act in a taxable year ending during calendar | ||||||
6 | year 2009, (ii) has applied for an Agreement within 150 | ||||||
7 | days after the effective date of this amendatory Act of | ||||||
8 | the 96th General Assembly, (iii) creates at least 150 | ||||||
9 | new jobs, (iv) retains at least 1,000 jobs in Illinois | ||||||
10 | that would have been at risk of relocation out of | ||||||
11 | Illinois over a 10-year period, and (v) makes a capital | ||||||
12 | investment of at least $57,000,000; or | ||||||
13 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
14 | full-time employees in the State during the year in | ||||||
15 | which the Credit is awarded, (ii) commits to make at | ||||||
16 | least $500,000,000 in combined capital improvements | ||||||
17 | and project costs under the Agreement, (iii) applies | ||||||
18 | for an Agreement between January 1, 2011 and June 30, | ||||||
19 | 2011, (iv) executes an Agreement for the Credit during | ||||||
20 | calendar year 2011, and (v) was incorporated no more | ||||||
21 | than 5 years before the filing of an application for an | ||||||
22 | Agreement. | ||||||
23 | (1.5) The election under this subsection (f) may also | ||||||
24 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
25 | agreement that was executed between January 1, 2011 and | ||||||
26 | June 30, 2011, if the Taxpayer (i) is primarily engaged in |
| |||||||
| |||||||
1 | the manufacture of inner tubes or tires, or both, from | ||||||
2 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
3 | 2,400 full-time employees in Illinois at the time of | ||||||
4 | application, (iii) creates at least 350 full-time jobs and | ||||||
5 | retains at least 250 full-time jobs in Illinois that would | ||||||
6 | have been at risk of being created or retained outside of | ||||||
7 | Illinois, and (iv) makes a capital investment of at least | ||||||
8 | $200,000,000 at the project location. | ||||||
9 | (1.6) The election under this subsection (f) may also | ||||||
10 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
11 | agreement that was executed within 150 days after the | ||||||
12 | effective date of this amendatory Act of the 97th General | ||||||
13 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
14 | operation of a discount department store, (ii) maintains | ||||||
15 | its corporate headquarters in Illinois, (iii) employs a | ||||||
16 | minimum of 4,250 full-time employees at its corporate | ||||||
17 | headquarters in Illinois at the time of application, (iv) | ||||||
18 | retains at least 4,250 full-time jobs in Illinois that | ||||||
19 | would have been at risk of being relocated outside of | ||||||
20 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
21 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
22 | least $300,000,000 at the project location. | ||||||
23 | (1.7) Notwithstanding any other provision of law, the | ||||||
24 | election under this subsection (f) may also be made by a | ||||||
25 | Taxpayer for any Credit awarded pursuant to an agreement | ||||||
26 | that was executed or applied for on or after July 1, 2011 |
| |||||||
| |||||||
1 | and on or before March 31, 2012, if the Taxpayer is | ||||||
2 | primarily engaged in the manufacture of original and | ||||||
3 | aftermarket filtration parts and products for automobiles, | ||||||
4 | motor vehicles, light duty motor vehicles, light trucks and | ||||||
5 | utility vehicles, and heavy duty trucks, (ii) employs a | ||||||
6 | minimum of 1,000 full-time employees in Illinois at the | ||||||
7 | time of application, (iii) creates at least 250 full-time | ||||||
8 | jobs in Illinois, (iv) relocates its corporate | ||||||
9 | headquarters to Illinois from another state, and (v) makes | ||||||
10 | a capital investment of at least $4,000,000 at the project | ||||||
11 | location. | ||||||
12 | (2) An election under this subsection shall allow the | ||||||
13 | credit to be taken against payments otherwise due under | ||||||
14 | Section 704A of the Illinois Income Tax Act during the | ||||||
15 | first calendar year beginning after the end of the taxable | ||||||
16 | year in which the credit is awarded under this Act. | ||||||
17 | (3) The election shall be made in the form and manner | ||||||
18 | required by the Illinois Department of Revenue and, once | ||||||
19 | made, shall be irrevocable. | ||||||
20 | (4) If a Taxpayer who meets the requirements of | ||||||
21 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
22 | elects to claim the Credit against its withholdings as | ||||||
23 | provided in this subsection (f), then, on and after the | ||||||
24 | date of the election, the terms of the Agreement between | ||||||
25 | the Taxpayer and the Department may not be further amended | ||||||
26 | during the term of the Agreement. |
| |||||||
| |||||||
1 | (g) A pass-through entity that has been awarded a credit | ||||||
2 | under this Act, its shareholders, or its partners may treat | ||||||
3 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
4 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
5 | "tax payment" means a payment as described in Article 6 or | ||||||
6 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
7 | made by a pass-through entity on behalf of any of its | ||||||
8 | shareholders or partners to satisfy such shareholders' or | ||||||
9 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
10 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
11 | the amount of the award credited pursuant to this Act exceed | ||||||
12 | the Illinois income tax liability of the pass-through entity or | ||||||
13 | its shareholders or partners for the taxable year. | ||||||
14 | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | ||||||
15 | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | ||||||
16 | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
| ||||||
17 | (35 ILCS 10/5-45)
| ||||||
18 | Sec. 5-45. Amount and duration of the credit.
| ||||||
19 | (a) The Department shall
determine the amount and
duration | ||||||
20 | of the credit awarded under this Act. The duration of the
| ||||||
21 | credit may not exceed 10 taxable years.
The credit may be | ||||||
22 | stated as
a percentage of the Incremental Income Tax | ||||||
23 | attributable
to the applicant's project and may include a fixed | ||||||
24 | dollar limitation.
| ||||||
25 | (b) Notwithstanding subsection (a),
and except as the |
| |||||||
| |||||||
1 | credit may be applied in a carryover year pursuant to Section
| ||||||
2 | 211(4) of the Illinois Income Tax Act, the credit may be | ||||||
3 | applied against the
State income tax liability , or the tax | ||||||
4 | liability under Section 409, 444, or 444.1 of the Illinois | ||||||
5 | Insurance Code, in more than 10 taxable years but not in more | ||||||
6 | than
15 taxable years for an eligible business
that (i) | ||||||
7 | qualifies under this Act
and the Corporate Headquarters | ||||||
8 | Relocation Act and has in fact undertaken a
qualifying project | ||||||
9 | within the time frame specified by the Department of
Commerce | ||||||
10 | and Economic Opportunity under that Act, and (ii) applies | ||||||
11 | against its
State income tax liability and insurance tax | ||||||
12 | liability , during the entire 15-year
period, no more than 60% | ||||||
13 | of the maximum
credit per year that would otherwise be | ||||||
14 | available under this Act.
| ||||||
15 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
16 | Section 15. The Illinois Insurance Code is amended by | ||||||
17 | adding Section 405.1 as follows: | ||||||
18 | (215 ILCS 5/405.1 new) | ||||||
19 | Sec. 405.1. Economic Development for a Growing Economy Tax | ||||||
20 | Credit. Credits may be granted against the taxes imposed under | ||||||
21 | Section 409, 444, or 444.1 of this Act on or after the | ||||||
22 | effective date of this amendatory Act of the 99th General | ||||||
23 | Assembly as provided in Section 211 of the Illinois Income Tax | ||||||
24 | Act or the Economic Development for a Growing Economy Tax |
| |||||||
| |||||||
1 | Credit Act. ".
|