HB4629 101ST GENERAL ASSEMBLY

LRB101 17870 HLH 67305 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4629

Introduced 2/5/2020, by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who (i) are engaged in business as a healthy food retailer and (ii) during the taxable year, first locate a healthy food retail establishment in an area designated by the Department of Agriculture as a food desert. 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. Credit for healthy food retailers.

(a) For taxable years ending on or after December 31, 2020, each taxpayer who (i) is engaged in business as a healthy food retailer and (ii) during the taxable year, first locates a healthy food retail establishment in an area designated by the Department of Agriculture as a food desert is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201. The credit shall be in an amount equal to: (i) 15% of the taxpayer's liability under this Act, calculated without regard to the credit under this Section, for newly constructed stores; or (ii) 10% of the taxpayer's liability under this Act, calculated without regard to the credit under this Section, for remodeled or rehabilitated stores.

(b) For partners, shareholders of subchapter S corporations, and owners 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.

(c) As used in this Section:

"Healthy food retailer" means a person that owns and operates a healthy food retail establishment.

"Healthy food retail establishment" means a grocery store or other business that sells food at retail for human consumption that is to be consumed off the premises where it is sold where at least 35% of the establishment's food inventory, by cost value, consists of fresh produce, poultry, dairy, and deli items.

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