Full Text of HB1525 96th General Assembly
HB1525eng 96TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | 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) of this Section, a payment | 10 | | towards taxes imposed pursuant to subsections (a) and (b)
of | 11 | | Section 201 of the Illinois
Income Tax Act that may be imposed | 12 | | on the Taxpayer for a taxable year beginning
on or
after | 13 | | January 1, 1999,
if the Taxpayer is awarded a Credit by the | 14 | | 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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| 1 | | 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.
| 5 | | (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: water purification and | 14 | | treatment, motor vehicle metal stamping, automobile | 15 | | manufacturing, automobile and light duty motor vehicle | 16 | | manufacturing, motor vehicle manufacturing, light truck | 17 | | and utility vehicle manufacturing, heavy duty truck | 18 | | manufacturing, or motor vehicle body manufacturing and | 19 | | (ii) meets the following criteria: | 20 | | (A) the Taxpayer (i) had an Illinois net loss or an | 21 | | Illinois net loss deduction under Section 207 of the | 22 | | Illinois Income Tax Act for the taxable year in which | 23 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 24 | | full-time employees in this State during the taxable | 25 | | year in which the Credit is awarded, (iii) has an | 26 | | Agreement under this Act on December 14, 2009 (the |
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| 1 | | effective date of Public Act 96-834), and (iv) is in | 2 | | compliance with all provisions of that Agreement; | 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, (ii) employed a minimum of 1,000 | 7 | | full-time employees in this State during the taxable | 8 | | year in which the Credit is awarded, and (iii) has | 9 | | applied for an Agreement within 365 days after December | 10 | | 14, 2009 (the effective date of Public Act 96-834); or | 11 | | (C) the Taxpayer (i) had an Illinois net operating | 12 | | loss carryforward under Section 207 of the Illinois | 13 | | Income Tax Act in a taxable year ending during calendar | 14 | | year 2008, (ii) has applied for an Agreement within 150 | 15 | | days after the effective date of this amendatory Act of | 16 | | the 96th General Assembly, (iii) creates at least 400 | 17 | | new jobs in Illinois, (iv) retains at least 2,000 jobs | 18 | | in Illinois that would have been at risk of relocation | 19 | | out of Illinois over a 10-year period, and (v) makes a | 20 | | capital investment of at least $75,000,000 ; or . | 21 | | (D) the Taxpayer (i) had an Illinois net operating | 22 | | loss carryforward under Section 207 of the Illinois | 23 | | Income Tax Act in a taxable year ending during calendar | 24 | | year 2009, (ii) has applied for an Agreement within 150 | 25 | | days after the effective date of this amendatory Act of | 26 | | the 96th General Assembly, (iii) creates at least 150 |
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| 1 | | new jobs, (iv) retains at least 1,000 jobs in Illinois | 2 | | that would have been at risk of relocation out of | 3 | | Illinois over a 10-year period, and (v) makes a capital | 4 | | investment of at least $57,000,000. | 5 | | (2) An election under this subsection shall allow the | 6 | | credit to be taken against payments otherwise due under | 7 | | Section 704A of the Illinois Income Tax Act during the | 8 | | first calendar year beginning after the end of the taxable | 9 | | year in which the credit is awarded under this Act. | 10 | | (3) The election shall be made in the form and manner | 11 | | required by the Illinois Department of Revenue and, once | 12 | | made, shall be irrevocable. | 13 | | (4) If a Taxpayer who meets the requirements of | 14 | | subparagraph (A) of paragraph (1) of this subsection (f) | 15 | | elects to claim the Credit against its withholdings as | 16 | | provided in this subsection (f), then, on and after the | 17 | | date of the election, the terms of the Agreement between | 18 | | the Taxpayer and the Department may not be further amended | 19 | | during the term of the Agreement. | 20 | | (g) A pass-through entity that has been awarded a credit | 21 | | under this Act, its shareholders, or its partners may treat | 22 | | some or all of the credit awarded pursuant to this Act as a tax | 23 | | payment for purposes of the Illinois Income Tax Act. The term | 24 | | "tax payment" means a payment as described in Article 6 or | 25 | | Article 8 of the Illinois Income Tax Act or a composite payment | 26 | | made by a pass-through entity on behalf of any of its |
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| 1 | | shareholders or partners to satisfy such shareholders' or | 2 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 3 | | Section 201 of the Illinois Income Tax Act. In no event shall | 4 | | the amount of the award credited pursuant to this Act exceed | 5 | | the Illinois income tax liability of the pass-through entity or | 6 | | its shareholders or partners for the taxable year. | 7 | | (Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09; | 8 | | 96-836, eff. 12-16-09; 96-905, eff. 6-4-10; 96-1000, eff. | 9 | | 7-2-10.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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