Full Text of SB0484 96th General Assembly
SB0484sam001 96TH GENERAL ASSEMBLY
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Sen. A. J. Wilhelmi
Filed: 3/25/2009
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| AMENDMENT TO SENATE BILL 484
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| AMENDMENT NO. ______. Amend Senate Bill 484 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 1. Short title. This Act may be cited as the Endow | 5 |
| Illinois Tax Credit Act. | 6 |
| Section 5. Definitions. For the purposes of this Act: | 7 |
| "Department" means the Department of Revenue. | 8 |
| "Endowment gift" means an irrevocable contribution to a | 9 |
| permanent endowment fund held by a qualified community | 10 |
| foundation. | 11 |
| "Permanent endowment fund" means a fund that (i) is held by | 12 |
| a qualified community foundation to provide benefit to | 13 |
| charitable causes in the State, (ii) is intended to exist in | 14 |
| perpetuity, and (iii) has an annual spend rate based on the | 15 |
| foundation spending policy. | 16 |
| "Qualified community foundation" means a community |
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| foundation or similar publicly-supported organization | 2 |
| described in Section 170 (b)(1)(A)(vi) of the Internal Revenue | 3 |
| Code of 1986 that is organized or operating in this State and | 4 |
| that substantially complies with the national standards for | 5 |
| U.S. community foundations that are established by the National | 6 |
| Council on Foundations, as determined by the Department. | 7 |
| Section 10. Tax credit awards. | 8 |
| (a) The Department shall authorize an income tax credit to | 9 |
| taxpayers who provide an endowment gift to a permanent | 10 |
| endowment fund. The amount of the credit that may be authorized | 11 |
| to a taxpayer by the Department under this Act is an amount | 12 |
| equal to 50% of the endowment gift, but may not exceed | 13 |
| $125,000. A taxpayer that is a business entity is not eligible | 14 |
| to receive a credit under this Act for the taxable year if the | 15 |
| taxpayer's gross business receipts exceed $30,000,000 for | 16 |
| taxable years ending in 2009, $40,000,000 for taxable years | 17 |
| ending in 2010, or $50,000,000 for taxable years ending in 2011 | 18 |
| or thereafter. | 19 |
| (b) The aggregate amount of all credits that the Department | 20 |
| may authorize under this Act may not exceed $50,000,000 in | 21 |
| 2009, $75,000,000 in 2010, or $100,000,000 in 2011 and each | 22 |
| calendar year thereafter. The aggregate amount of all credits | 23 |
| that the Department may authorize to any single taxpayer in a | 24 |
| calendar year may not exceed 5% of the aggregate amount of all | 25 |
| credits authorized by the Department in that calendar year. The |
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| aggregate amount of all credits that the Department may | 2 |
| authorize in any calendar year based on endowment gifts to any | 3 |
| specific permanent endowment fund may not exceed 25% of | 4 |
| aggregate credits authorized for that year. | 5 |
| (c) If the Department receives applications for tax credit | 6 |
| in excess of the amount available, then the applications must | 7 |
| be prioritized by the date that the Department received them. | 8 |
| If the number of applications exceeds the amount of annual tax | 9 |
| credits available, then the Department must establish a wait | 10 |
| list for the next year's allocation of tax credits, and | 11 |
| applications must first be funded in the order listed on that | 12 |
| wait list. | 13 |
| Section 15. Applications for tax credits. | 14 |
| (a) The Department shall develop and make available a | 15 |
| standardized application pertaining to the allocation of tax | 16 |
| credits under this Act. | 17 |
| (b) Of the annual amount available for tax credits, 10% | 18 |
| must be reserved for those endowment gifts of $30,000 or less. | 19 |
| If the entire 10% that is reserved for permanent endowment | 20 |
| gifts totalling $30,000 or less is not allocated, then the | 21 |
| remaining amount is available in the following years for | 22 |
| endowment gifts of $30,000 or less. | 23 |
| (c) The Department must accepts applications and authorize | 24 |
| credits in an ongoing basis. The Department must make public, | 25 |
| by June 1 and by December 1 of each year, the total number of |
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| requests for tax credits and the total amount of requested tax | 2 |
| credits that have been submitted and awarded. | 3 |
| Section 20. Annual report. By January 31 of each year, the | 4 |
| Department must submit an annual report to the Governor and the | 5 |
| General Assembly concerning the activities conduced under this | 6 |
| Act during the previous calendar year. The report must include | 7 |
| a detailed listing of tax credits authorized under this Act by | 8 |
| the Department. | 9 |
| Section 90. The Illinois Income Tax Act is amended by | 10 |
| adding Section 218 as follows: | 11 |
| (35 ILCS 5/218 new) | 12 |
| Sec. 218. The Endow Illinois Tax Credit. | 13 |
| (a) For taxable years ending on or after December 31, 2009, | 14 |
| each taxpayer for whom a tax credit has been authorized by the | 15 |
| Department of Revenue under the Endow Illinois Tax Credit Act, | 16 |
| is entitled to a credit against the tax imposed under | 17 |
| subsections (a) and (b) of Section 201 in an amount equal to | 18 |
| the amount authorized under that Act. | 19 |
| (b) For partners, shareholders of Subchapter S | 20 |
| corporations, and owners of limited liability companies, if the | 21 |
| liability company is treated as a partnership for purposes of | 22 |
| federal and State income taxation, there is allowed a credit | 23 |
| under this Section to be determined in accordance with the |
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| determination of income and distributive share of income under | 2 |
| Sections 702 and 704 and Subchapter S of the Internal Revenue | 3 |
| Code. | 4 |
| (c) The credit may not be carried back and may not reduce | 5 |
| the taxpayer's liability to less than zero. If the amount of | 6 |
| the credit exceeds the tax liability for the year, the excess | 7 |
| may be carried forward and applied to the tax liability of the | 8 |
| 3 taxable years following the excess credit year. The tax | 9 |
| credit shall be applied to the earliest year for which there is | 10 |
| a tax liability. If there are credits for more than one year | 11 |
| that are available to offset a liability, the earlier credit | 12 |
| shall be applied first. | 13 |
| (d) This Section is exempt from the provisions of Section | 14 |
| 250.
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| Section 99. Effective date. This Act takes effect upon | 16 |
| becoming law.".
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