Full Text of SB3672 96th General Assembly
SB3672eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Economic Development for a Growing Economy | 5 |
| Tax Credit Act is amended by changing Section 5-15 as follows: | 6 |
| (35 ILCS 10/5-15) | 7 |
| Sec. 5-15. Tax Credit Awards. Subject to the conditions set | 8 |
| forth in this
Act, a Taxpayer is
entitled to a Credit against | 9 |
| or, as described in subsection (g) (f) of this Section, a | 10 |
| payment towards taxes imposed pursuant to subsections (a) and | 11 |
| (b)
of Section 201 of the Illinois
Income Tax Act that may be | 12 |
| imposed on the Taxpayer for a taxable year beginning
on or
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| after January 1, 1999,
if the Taxpayer is awarded a Credit by | 14 |
| the Department under this Act for that
taxable year. | 15 |
| (a) The Department shall make Credit awards under this Act | 16 |
| to foster job
creation and retention in Illinois. | 17 |
| (b) A person that proposes a project to create new jobs in | 18 |
| Illinois must
enter into an Agreement with the
Department for | 19 |
| the Credit under this Act. | 20 |
| (c) The Credit shall be claimed for the taxable years | 21 |
| specified in the
Agreement. | 22 |
| (d) The Credit shall not exceed the Incremental Income Tax | 23 |
| attributable to
the project that is the subject of the |
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| Agreement. | 2 |
| (e) Nothing herein shall prohibit a Tax Credit Award to an | 3 |
| Applicant that uses a PEO if all other award criteria are | 4 |
| satisfied.
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| (f) In lieu of the Credit allowed under this Act against | 6 |
| the taxes imposed pursuant to subsections (a) and (b) of | 7 |
| Section 201 of the Illinois Income Tax Act for any taxable year | 8 |
| ending on or after December 31, 2009, the Taxpayer may elect to | 9 |
| claim the Credit against its obligation to pay over withholding | 10 |
| under Section 704A of the Illinois Income Tax Act. | 11 |
| (1) The election under this subsection (f) may be made | 12 |
| only by a Taxpayer that (i) is primarily engaged in one of | 13 |
| the following business activities: motor vehicle metal | 14 |
| stamping, automobile manufacturing, automobile and light | 15 |
| duty motor vehicle manufacturing, motor vehicle | 16 |
| manufacturing, light truck and utility vehicle | 17 |
| manufacturing, or motor vehicle body manufacturing and | 18 |
| (ii) meets the following criteria: | 19 |
| (A) the Taxpayer (i) had an Illinois net loss or an | 20 |
| Illinois net loss deduction under Section 207 of the | 21 |
| Illinois Income Tax Act for the taxable year in which | 22 |
| the Credit is awarded, (ii) employed a minimum of 1,000 | 23 |
| full-time employees in this State during the taxable | 24 |
| year in which the Credit is awarded, (iii) has an | 25 |
| Agreement under this Act on the effective date of this | 26 |
| amendatory Act of the 96th General Assembly, and (iii) |
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| (iv) is in compliance with all provisions of that | 2 |
| Agreement; or | 3 |
| (B) the Taxpayer (i) had an Illinois net loss or an | 4 |
| Illinois net loss deduction under Section 207 of the | 5 |
| Illinois Income Tax Act for the taxable year in which | 6 |
| the Credit is awarded and (ii) , (ii) employed a | 7 |
| minimum of 1,000 full-time employees in this State | 8 |
| during the taxable year in which the Credit is awarded, | 9 |
| and (iii) has applied for an Agreement by July 1, 2010 | 10 |
| or within 30 days after the effective date of this | 11 |
| amendatory Act of the 96th General Assembly, whichever | 12 |
| is later within 180 days after the effective date of | 13 |
| this amendatory Act of the 96th General Assembly . | 14 |
| (2) An election under this subsection shall allow the | 15 |
| credit to be taken against payments otherwise due under | 16 |
| Section 704A of the Illinois Income Tax Act during the | 17 |
| first calendar year beginning after the end of the taxable | 18 |
| year in which the credit is awarded under this Act. | 19 |
| (3) The election shall be made in the form and manner | 20 |
| required by the Illinois Department of Revenue and, once | 21 |
| made, shall be irrevocable. | 22 |
| (4) If a Taxpayer who meets the requirements of | 23 |
| subparagraph (A) of paragraph (1) of this subsection (f) | 24 |
| elects to claim the Credit against its withholdings as | 25 |
| provided in this subsection (f), then, on and after the | 26 |
| date of the election, the terms of the Agreement between |
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| the Taxpayer and the Department may not be further amended | 2 |
| during the term of the Agreement. | 3 |
| (g) (f) A pass-through entity that has been awarded a | 4 |
| credit under this Act, its shareholders, or its partners may | 5 |
| treat some or all of the credit awarded pursuant to this Act as | 6 |
| a tax payment for purposes of the Illinois Income Tax Act. The | 7 |
| term "tax payment" means a payment as described in Article 6 or | 8 |
| Article 8 of the Illinois Income Tax Act or a composite payment | 9 |
| made by a pass-through entity on behalf of any of its | 10 |
| shareholders or partners to satisfy such shareholders' or | 11 |
| partners' taxes imposed pursuant to subsections (a) and (b) of | 12 |
| Section 201 of the Illinois Income Tax Act. In no event shall | 13 |
| the amount of the award credited pursuant to this Act exceed | 14 |
| the Illinois income tax liability of the pass-through entity or | 15 |
| its shareholders or partners for the taxable year. | 16 |
| (Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09; | 17 |
| 96-836, eff. 12-16-09; revised 12-21-09.)
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| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law. |
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