Illinois General Assembly - Full Text of HB5218
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Full Text of HB5218  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/31/2022, by Rep. Amy Elik


35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 50% of the cost of equipment, materials, and labor paid by the taxpayer during the taxable year in order to incorporate or improve broadband service in the taxpayers' primary residence, which must be located in an underserved or unserved area in a county with a population of less than 300,000 people. Effective immediately.

LRB102 23373 HLH 35487 b






HB5218LRB102 23373 HLH 35487 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
5adding Section 232 as follows:
6    (35 ILCS 5/232 new)
7    Sec. 232. Broadband credit.
8    (a) For taxable years beginning on or after January 1,
92022, each individual taxpayer shall be allowed an annual
10credit against the tax imposed by subsections (a) and (b) of
11Section 201 in an amount equal to 50% of the cost of equipment,
12materials, and labor paid by the taxpayer during the taxable
13year in order to incorporate or improve broadband services in
14the taxpayers' primary residence. The primary residence must
15be located in an underserved or unserved area in a county with
16a population of less than 300,000 people according to the 2020
18    (b) The aggregate credit established by this Section taken
19in any single tax year shall not reduce taxpayer's tax
20liability to less than zero; provided, however, that any tax
21credit claimed under this Section but not used in any taxable
22year may be carried forward for 5 consecutive years from the
23close of the tax year in which the credits were earned. The



HB5218- 2 -LRB102 23373 HLH 35487 b

1maximum aggregate amount of credits that may be claimed under
2this Section shall not exceed the original investment made by
3the taxpayer in the qualifying equipment.
4    (c) For purposes this Section:
5    "Broadband service" means a service provided by wireline
6or wireless means capable of delivering high-speed internet
7access at speeds of at least 25 megabits per second of download
8speed and 3 megabits per second of upload speed.
9    "Equipment, materials, and labor incorporated into or used
10to improve broadband services" means all equipment and
11materials, machinery, software, or other tangible personal
12property, including labor for installation and construction,
13deployed in Illinois on or after January 1, 2022 that is used
14in whole or in part for producing, broadcasting, distributing,
15sending, receiving, storing, transmitting, retransmitting,
16amplifying, switching, or routing broadband services,
17including the monitoring, testing, maintaining, enabling, or
18facilitating of such equipment, machinery, software, or other
19infrastructure. Such property includes, but is not limited to,
20wires, cables including fiber optic cables, antennas, poles,
21switches, routers, amplifiers, rectifiers, repeaters,
22receivers, multiplexers, duplexers, transmitters, power
23equipment, backup power equipment, diagnostic equipment,
24storage devices, modems, and other general central office
25equipment, such as channel cards, frames, and cabinets.
26    "Taxpayer" means an individual whose primary residence is



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1located in a county with a population of less than 300,000 that
2qualifies as an underserved or unserved area.
3    "Underserved or unserved area" means a municipality where
4there is limited or no broadband service.
5    (d) This Section is exempt from the provisions of Section
7    Section 99. Effective date. This Act takes effect upon
8becoming law.