Illinois General Assembly - Full Text of HB0630
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Full Text of HB0630  102nd General Assembly

HB0630 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0630

 

Introduced 2/8/2021, by Rep. Steven Reick

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 605/605-1055 new
35 ILCS 5/211
35 ILCS 10/5-45

    Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois, the Illinois Income Tax Act, and the Economic Development for a Growing Economy Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity, in cooperation with the Department of Revenue, may adopt rules to identify and allow for the extension of credits under the Economic Development for a Growing Economy Tax Credit Act that are set to expire during a tax year during which there is a statewide COVID-19 public health emergency as evidenced by an effective disaster declaration of the Governor covering all counties.


LRB102 10618 HLH 15947 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0630LRB102 10618 HLH 15947 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 Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by adding Section 605-1055 as follows:
 
7    (20 ILCS 605/605-1055 new)
8    Sec. 605-1055. Rulemaking authority for EDGE Credit;
9sunset extensions for expiring credits; disaster declaration.
10The Department may adopt rules, in consultation with the
11Department of Revenue, to identify any and all Economic
12Development for a Growing Economy (EDGE) tax credits that are
13earned, existing, or unused by a taxpayer in any tax year where
14there is a statewide Covid-19 public health emergency, as
15evidenced by an effective disaster declaration of the Governor
16covering all counties in the State. The rules adopted by the
17Department shall allow for the extension of credits that are
18set to expire during a tax year where there is a statewide
19COVID-19 public health emergency as evidenced by an effective
20disaster declaration of the Governor covering all counties.
 
21    Section 10. The Illinois Income Tax Act is amended by
22changing Section 211 as follows:
 

 

 

HB0630- 2 -LRB102 10618 HLH 15947 b

1    (35 ILCS 5/211)
2    Sec. 211. Economic Development for a Growing Economy Tax
3Credit. For tax years beginning on or after January 1, 1999, a
4Taxpayer who has entered into an Agreement (including a New
5Construction EDGE Agreement) under the Economic Development
6for a Growing Economy Tax Credit Act is entitled to a credit
7against the taxes imposed under subsections (a) and (b) of
8Section 201 of this Act in an amount to be determined in the
9Agreement. If the Taxpayer is a partnership or Subchapter S
10corporation, the credit shall be allowed to the partners or
11shareholders in accordance with the determination of income
12and distributive share of income under Sections 702 and 704
13and subchapter S of the Internal Revenue Code. The Department,
14in cooperation with the Department of Commerce and Economic
15Opportunity, shall prescribe rules to enforce and administer
16the provisions of this Section. This Section is exempt from
17the provisions of Section 250 of this Act.
18    The credit shall be subject to the conditions set forth in
19the Agreement and the following limitations:
20        (1) The tax credit shall not exceed the Incremental
21    Income Tax (as defined in Section 5-5 of the Economic
22    Development for a Growing Economy Tax Credit Act) with
23    respect to the project; additionally, the New Construction
24    EDGE Credit shall not exceed the New Construction EDGE
25    Incremental Income Tax (as defined in Section 5-5 of the

 

 

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1    Economic Development for a Growing Economy Tax Credit
2    Act).
3        (2) The amount of the credit allowed during the tax
4    year plus the sum of all amounts allowed in prior years
5    shall not exceed 100% of the aggregate amount expended by
6    the Taxpayer during all prior tax years on approved costs
7    defined by Agreement.
8        (3) The amount of the credit shall be determined on an
9    annual basis. Except as applied in a carryover year
10    pursuant to Section 211(4) of this Act, the credit may not
11    be applied against any State income tax liability in more
12    than 10 taxable years; provided, however, that (i) an
13    eligible business certified by the Department of Commerce
14    and Economic Opportunity under the Corporate Headquarters
15    Relocation Act may not apply the credit against any of its
16    State income tax liability in more than 15 taxable years
17    and (ii) credits allowed to that eligible business are
18    subject to the conditions and requirements set forth in
19    Sections 5-35 and 5-45 of the Economic Development for a
20    Growing Economy Tax Credit Act and Section 5-51 as
21    applicable to New Construction EDGE Credits.
22        (4) The credit may not exceed the amount of taxes
23    imposed pursuant to subsections (a) and (b) of Section 201
24    of this Act. Any credit that is unused in the year the
25    credit is computed may be carried forward and applied to
26    the tax liability of the 5 taxable years following the

 

 

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1    excess credit year, except as otherwise provided under
2    paragraph (4.5) of this Section. The credit shall be
3    applied to the earliest year for which there is a tax
4    liability. If there are credits from more than one tax
5    year that are available to offset a liability, the earlier
6    credit shall be applied first.
7        (4.5) The Department of Commerce and Economic
8    Opportunity, in consultation with the Department of
9    Revenue, may adopt rules to extend the sunset of any
10    earned, existing, or unused credit or credits a taxpayer
11    may be in possession of in any tax year where there is a
12    statewide COVID-19 public health emergency, as evidenced
13    by an effective disaster declaration of the Governor
14    covering all counties in the State.
15        (5) No credit shall be allowed with respect to any
16    Agreement for any taxable year ending after the
17    Noncompliance Date. Upon receiving notification by the
18    Department of Commerce and Economic Opportunity of the
19    noncompliance of a Taxpayer with an Agreement, the
20    Department shall notify the Taxpayer that no credit is
21    allowed with respect to that Agreement for any taxable
22    year ending after the Noncompliance Date, as stated in
23    such notification. If any credit has been allowed with
24    respect to an Agreement for a taxable year ending after
25    the Noncompliance Date for that Agreement, any refund paid
26    to the Taxpayer for that taxable year shall, to the extent

 

 

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1    of that credit allowed, be an erroneous refund within the
2    meaning of Section 912 of this Act.
3        (6) For purposes of this Section, the terms
4    "Agreement", "Incremental Income Tax", "New Construction
5    EDGE Agreement", "New Construction EDGE Credit", "New
6    Construction EDGE Incremental Income Tax", and
7    "Noncompliance Date" have the same meaning as when used in
8    the Economic Development for a Growing Economy Tax Credit
9    Act.
10(Source: P.A. 101-9, eff. 6-5-19.)
 
11    Section 15. The Economic Development for a Growing Economy
12Tax Credit Act is amended by changing Section 5-45 as follows:
 
13    (35 ILCS 10/5-45)
14    Sec. 5-45. Amount and duration of the credit.
15    (a) The Department shall determine the amount and duration
16of the credit awarded under this Act. The duration of the
17credit may not exceed 10 taxable years. The credit may be
18stated as a percentage of the Incremental Income Tax
19attributable to the applicant's project and may include a
20fixed dollar limitation.
21    (b) Notwithstanding subsection (a), and except as the
22credit may be applied in a carryover year pursuant to Section
23211(4) of the Illinois Income Tax Act, the credit may be
24applied against the State income tax liability in more than 10

 

 

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1taxable years but not in more than 15 taxable years for an
2eligible business that (i) qualifies under this Act and the
3Corporate Headquarters Relocation Act and has in fact
4undertaken a qualifying project within the time frame
5specified by the Department of Commerce and Economic
6Opportunity under that Act, and (ii) applies against its State
7income tax liability, during the entire 15-year period, no
8more than 60% of the maximum credit per year that would
9otherwise be available under this Act.
10    (c) Nothing in this Section shall prevent the Department,
11in consultation with the Department of Revenue, from adopting
12rules to extend the sunset of any earned, existing, or unused
13tax credit or credits a taxpayer may be in possession of,
14notwithstanding the carry-forward provisions pursuant to
15paragraph (4) of Section 211 of the Illinois Income Tax Act, in
16any tax year where there is a statewide COVID-19 public health
17emergency as evidenced by an effective disaster declaration of
18the Governor covering all counties in the State.
19(Source: P.A. 94-793, eff. 5-19-06.)