093_HB3221

 
                                     LRB093 07663 SJM 07843 b

 1        AN ACT concerning taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5. The Illinois Income  Tax  Act  is  amended  by
 5    adding Section 213 as follows:

 6        (35 ILCS 5/213 new)
 7        Sec. 213. Production utility tax credit.
 8        (a)  Beginning  with  taxable  years  ending  on or after
 9    December 31, 2003, each taxpayer  engaged  in  production  in
10    this State is entitled to a credit against the tax imposed by
11    subsections  (a) and (b) of Section 201 in an amount equal to
12    the amount spent by the taxpayer in the taxable year  to  pay
13    taxes  on  electricity  and  natural  gas  purchased  for the
14    production purposes of the  taxpayer.  The  Department  shall
15    establish  by  rule  what constitutes "production" under this
16    Section.  The  tax  credit  may  not  reduce  the  taxpayer's
17    liability to less than zero.
18        (b) If the amount of the credit exceeds the tax liability
19    for the year, the excess may be carried forward  and  applied
20    to  the  tax  liability  of the 5 taxable years following the
21    excess credit year.  The  credit  shall  be  applied  to  the
22    earliest  year  for  which there is a tax liability. If there
23    are credits from more than one tax year that are available to
24    offset a liability,  the  earlier  credit  shall  be  applied
25    first.
26        (c) This Section is exempt from the provisions of Section
27    250.