HB5028 96TH GENERAL ASSEMBLY

LRB096 19044 HLH 34435 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5028

Introduced 1/25/2010, by Rep. Carol A. Sente - Keith Farnham

SYNOPSIS AS INTRODUCED:

35 ILCS 5/219 new

Amends the Illinois Income Tax Act. Creates a green services and products credit. Provides that a taxpayer is entitled to a credit equal to 6 1/2% of the increased income over the prior tax year received by the taxpayer from the provision of green services and the production of green products in this State. Provides that the credit may be carried forward for a period of 5 years.

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 219 as follows:

(35 ILCS 5/219 new)

Sec. 219. Green services and products credit. For tax years ending on and after December 31, 2010, each taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act for increasing the provision of green services and the production of green products in this State. The credit allowed shall be equal to 6 1/2% of the increased income over the prior tax year received by the taxpayer from the provision of green services and the production of green products in this State. 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 subsection 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.

The tax credit awarded under this Section may not reduce the taxpayer's liability to less than zero. If the amount of the tax credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit must be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, then the earliest credit must be applied first, except that no credit may be carried forward under this Section more than 5 years after the year in which the expense for which the credit is given was incurred.