Illinois General Assembly - Full Text of SB0141
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Full Text of SB0141  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 1/24/2023, by Sen. Jil Tracy


35 ILCS 5/234 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who make an investment in depreciable property used primarily to collect or process reclaimable material or to manufacture products from reclaimed material. Sets forth the amount of the credit. Effective immediately.

LRB103 25119 HLH 51456 b





SB0141LRB103 25119 HLH 51456 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 234 as follows:
6    (35 ILCS 5/234 new)
7    Sec. 234. Reclaimable material.
8    (a) For taxable years beginning on or after January 1,
92024, a taxpayer who makes an investment in depreciable
10property used primarily to collect or process reclaimable
11material or to manufacture products from reclaimed material is
12entitled to a credit against the taxes imposed by subsections
13(a) and (b) of Section 201 as provided in this Section. The
14amount of the credit shall be as follows:
15        (1) 25% of the cost of the property on the first
16    $250,000 invested;
17        (2) 15% of the cost of the property on the next
18    $250,000 invested; and
19        (3) 5% of the cost of the property on the next $500,000
20    invested.
21    A credit may not be claimed for investments in depreciable
22property in excess of $1,000,000.
23    (b) In no event shall a credit under this Section reduce



SB0141- 2 -LRB103 25119 HLH 51456 b

1the taxpayer's liability to less than zero. If the amount of
2the credit exceeds the tax liability for the year, the excess
3may be carried forward and applied to the tax liability of the
45 taxable years following the excess credit year. The tax
5credit shall be applied to the earliest year for which there is
6a tax liability. If there are credits for more than one year
7that are available to offset a liability, the earlier credit
8shall be applied first.
9    (c) If the taxpayer is a partnership, a Subchapter S
10corporation, or a limited liability company that has elected
11partnership tax treatment, the credit shall be allowed to the
12partners, shareholders, or members in accordance with the
13determination of income and distributive share of income under
14Sections 702 and 704 and subchapter S of the Internal Revenue
15Code, as applicable.
16    (d) This Section is exempt from the provisions of Section
18    Section 99. Effective date. This Act takes effect upon
19becoming law.