Illinois General Assembly - Full Text of SB1448
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Full Text of SB1448  98th General Assembly


Sen. Antonio Muñoz

Filed: 3/15/2013





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2    AMENDMENT NO. ______. Amend Senate Bill 1448 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the Endow
5Illinois Tax Credit Act.
6    Section 5. Definitions. For the purposes of this Act:
7    "Department" means the Department of Commerce and Economic
9    "Endowment gift" means an irrevocable contribution, made
10in cash or stock, to a permanent endowment fund held by a
11qualified community foundation.
12    "Permanent endowment fund" means a fund that (i) is held by
13a qualified community foundation to provide benefit only to
14charitable causes in the State, (ii) is intended to exist in
15perpetuity, and (iii) has an annual spend rate based on the
16foundation spending policy, but not to exceed 7%.



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1    "Qualified community foundation" means a community
2foundation or similar publicly-supported organization
3described in Section 170 (b)(1)(A)(vi) of the Internal Revenue
4Code of 1986 that is organized or operating in this State and
5that substantially complies with the national standards for
6U.S. community foundations that are established by the National
7Council on Foundations, as determined by the Department.
8    Section 10. Tax credit awards.
9    (a) The Department shall award an income tax credit to
10taxpayers who make an endowment gift to a permanent endowment
11fund. The amount of the credit that may be awarded to a
12taxpayer by the Department under this Act is an amount equal to
1350% of the endowment gift. Except in the case of an individual,
14a taxpayer is not eligible to receive a credit under this Act
15for the taxable year if the taxpayer's average gross business
16receipts for the 3 taxable years prior to the taxable year for
17which the taxpayer applies for a credit under this Act exceed
18$10,000,000 for taxable years ending in 2013, $25,000,000 for
19taxable years ending in 2014, or $50,000,000 for taxable years
20ending in 2015 or thereafter.
21    (b) The aggregate amount of all credits that the Department
22may award under this Act in any calendar year may not exceed
23$10,000,000 in 2013, $25,000,000 in 2014, or $50,000,000 in
242015 and each calendar year thereafter. The aggregate amount of
25all credits that the Department may authorize to any single



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1taxpayer in a calendar year may not exceed $500,000 in 2013,
2$1,250,000 in 2014, or $2,500,000 in 2015 and each calendar
3year thereafter. The aggregate amount of all credits that the
4Department may authorize based on endowment gifts to any
5specific community foundation may not exceed $2,500,000 in
62013, $6,250,000 in 2014, or $12,500,000 in 2015 and each
7calendar year thereafter.
8    (c) If the Department receives applications for tax credit
9in excess of the aggregate limitation under subsection (b),
10then the applications must be prioritized by the date that the
11Department received them, and the Department must establish a
12wait list for the next year's allocation of tax credits and
13fund applications in the order listed on that wait list.
14    Section 15. Applications for tax credits.
15    (a) The Department shall develop and make available a
16standardized application pertaining to the allocation of tax
17credits under this Act. A separate application for tax credit
18must be made for each endowment gift, and shall be submitted
19jointly by the taxpayer and the qualified community foundation
20to which the endowment gift is to be made. The application
21shall include such information as the Department deems
22necessary to determine that the taxpayer is eligible to receive
23a credit under this Act, and such other information as the
24Department deems necessary to the administration of this Act.
25If an application for tax credit is approved, the Department



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1shall issue the taxpayer a certificate of verification that
2states the amount of the tax credit to which the taxpayer is
3entitled and the taxable year to which such credit applies. A
4taxpayer claiming a credit under this Act shall submit to the
5Department of Revenue a copy of the certificate of verification
6under this Act.
7    (b) Of the annual amount available for tax credits under
8subsection (b) of Section 10 of this Act, 10% must be reserved
9for those endowment gifts of $30,000 or less. If the entire 10%
10that is reserved for permanent endowment gifts totalling
11$30,000 or less is not allocated, then the remaining amount is
12available in the following years for endowment gifts of $30,000
13or less.
14    (c) The Department must accept applications and authorize
15credits in an ongoing basis. The Department must make public,
16by June 1 and by December 1 of each year, the total number of
17requests for tax credits and the total amount of requested tax
18credits that have been submitted and awarded.
19    (d) Notwithstanding any other law to the contrary, the
20Director of Revenue may make available to the Department
21information received by the Director from tax returns filed
22under the Illinois Income Tax Act, for the limited purpose of
23determining the taxpayer's eligibility for credit under this
25    Section 20. Annual report. By January 31 of each year, the



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1Department must submit an annual report to the Governor and the
2General Assembly concerning the activities conducted under
3this Act during the previous calendar year. The report must
4include a detailed listing of tax credits authorized under this
5Act by the Department.
6    Section 90. The Illinois Income Tax Act is amended by
7adding Section 224 as follows:
8    (35 ILCS 5/224 new)
9    Sec. 224. The Endow Illinois Tax Credit.
10    (a) For taxable years ending on or after December 31, 2013,
11each taxpayer for whom a tax credit has been awarded by the
12Department of Commerce and Economic Opportunity under the Endow
13Illinois Tax Credit Act is entitled to a credit against the tax
14imposed under subsections (a) and (b) of Section 201 in an
15amount equal to the amount awarded under that Act.
16    (b) If the taxpayer is a partnership or a Subchapter S
17corporation, the credit is allowed to the partners or
18shareholders in accordance with the determination of income and
19distributive share of income under Sections 702 and 704 and
20Subchapter S of the Internal Revenue Code.
21    (c) The credit may not be carried back and may not reduce
22the taxpayer's liability to less than zero. If the amount of
23the credit exceeds the tax liability for the year, the excess
24may be carried forward and applied to the tax liability of the



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15 taxable years following the excess credit year. The tax
2credit shall be applied to the earliest year for which there is
3a tax liability. If there are credits for more than one year
4that are available to offset a liability, the earlier credit
5shall be applied first.
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".