HB3277 98TH GENERAL ASSEMBLY


 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3277

 

Introduced , by Rep. Elgie R. Sims, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/224 new

    Amends the Illinois Income Tax Act. Provides that qualified taxpayers that undertake one or more eligible projects related to the remodeling, rehabilitation, modernization, or remediation of certain contaminated property may apply with the Department of Commerce and Economic Opportunity to obtain a tax credit against their income tax liability. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3277LRB098 11154 HLH 41856 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 adding
5Section 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Brownfield remediation tax credit.
8    (a) For taxable years beginning on or after January 1,
92013, qualified taxpayers that undertake one or more eligible
10projects during the taxable year may apply with the Department
11to obtain a tax credit against the tax imposed under
12subsections (a) and (b) of Section 201 of this Act. The credit
13may not exceed 100% of the eligible project costs incurred by
14the taxpayer during the taxable year. The taxpayer shall be
15eligible to receive a certificate for 75% of the amount of the
16credit awarded beginning in the taxable year in which the
17application is approved and the eligible project costs have
18been incurred. The taxpayer may receive a certificate for the
19remaining 25% of the credits awarded upon receipt of a "No
20Further Remediation" determination from the Illinois
21Environmental Protection Agency. For expenses associated with
22asbestos abatement, the taxpayer may receive a certificate for
23the remaining 25% of the credits awarded upon receipt of a

 

 

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1closure report certified by an independent third-party
2asbestos Air Sampling Professional licensed in the State of
3Illinois. For expenses associated with lead abatement, the
4taxpayer may receive a certificate for the remaining 25% of the
5credits awarded upon receipt of a closure report certified by
6an independent third-party lead risk assessor licensed in the
7State of Illinois. The Department shall distribute the tax
8credits equitably throughout all geographic regions of the
9State. The taxpayer may sell, transfer, or assign credits
10awarded under this Section to other taxpayers or to nonprofit
11entities, and the credits may be sold, transferred, or assigned
12more than one time by any taxpayer or nonprofit entity. The
13credits may be bifurcated to be sold, transferred, or assigned
14to more than one party. The credits are not subject to
15recapture. If credits that have been sold are subsequently
16reduced, adjusted, or cancelled, in whole or in part, by the
17Department or any other applicable agency, only the original
18qualified taxpayer that was awarded the credits, and not any
19purchaser or allocatee of the credits, shall be liable to repay
20the amount of such reduction, adjustment, or cancellation of
21the credits. The Department may, in its discretion, withhold
22the remaining 25% of the credits pending creation of the
23proposed jobs.
24    (b) The tax credit may not reduce the taxpayer's liability
25to less than zero. If the amount of the tax credit exceeds the
26tax liability for the year, the excess may be carried forward

 

 

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1and applied to the tax liability of the 5 taxable years
2following the excess credit year. The credit must be applied to
3the earliest year for which there is a tax liability. If there
4are credits from more than one tax year that are available to
5offset a liability, then the earlier credit must be applied
6first.
7    (c) The Department shall not approve applications for
8credits under this Act which, in the aggregate for each fiscal
9year, exceed $50,000,000. However, if, in any fiscal year, the
10total aggregate amount of the credits awarded does not exceed
11$50,000,000, then the $50,000,000 limitation for the next
12fiscal year shall be increased by the difference between
13$50,000,000 and the total amount of aggregate credits awarded
14in that previous fiscal year.
15    (d) Tax credits awarded under this Section are limited to
16the lesser of the least amount necessary for the project to
17occur or the positive net State economic impact. Consideration
18shall be given for a project's potential for enhancing the
19redevelopment of nearby blighted property.
20    (e) For the purposes of this Section:
21        "Department" means the Department of Commerce and
22    Economic Opportunity.
23        "Eligible project" means the remodeling,
24    rehabilitation, modernization, or remediation of abandoned
25    or underutilized property located in the State that is
26    contaminated with hazardous substances, petroleum

 

 

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1    products, asbestos or lead-based paint, or a combination of
2    those factors, at the time the property is purchased by the
3    taxpayer. The project must be approved by the municipality
4    and the county in which the site is located. The taxpayer
5    must demonstrate that the project will create at least 10
6    new jobs, retain 25 jobs, or a combination thereof.
7        "Eligible project costs" include, but are not limited
8    to, costs associated with environmental site assessment
9    and investigation; soil, groundwater, and surface water
10    remediation; asbestos and lead-based paint surveys and
11    abatement; documentation and reporting necessary to meet
12    environmental regulations and obtain closure documentation
13    from the State.
14        "Qualified taxpayer" means a taxpayer that meets all of
15    the following criteria:
16            (1) the taxpayer is the owner of the site on which
17        the eligible project will occur;
18            (2) the taxpayer must be current on all taxes
19        imposed by the State at the time of the application and
20        must have no criminal record; and
21            (3) the taxpayer must not be the party responsible
22        for the contamination.
23    Credits awarded to a partnership or a limited liability
24company taxed as a partnership shall be passed through to the
25partners or members respectively on a pro rata basis or
26pursuant to an executed agreement among the partners or members

 

 

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1documenting any alternative distribution method.
2    (f) This Section is exempt from the provisions of Section
3250.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.