HB4902 101ST GENERAL ASSEMBLY

LRB101 17231 HLH 66635 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4902

Introduced 2/18/2020, by Rep. Joyce Mason

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to any investment made by the taxpayer during the taxable year for the installation or operation of an anaerobic digester. 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 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Anaerobic digester credit.

(a) For taxable years ending on or after December 31, 2020, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to any investment made by the taxpayer during the taxable year for the installation or operation of an anaerobic digester.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the 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 tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) For partners, shareholders of Subchapter S corporations, and members of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(d) As used in this Section an "anaerobic digester" is a sealed environment or facility where organic food waste is broken down to produce methane and carbon dioxide for use as a renewable energy source.

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

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