Full Text of SB1656 100th General Assembly
SB1656sam001 100TH GENERAL ASSEMBLY | Sen. Andy Manar Filed: 3/9/2017
| | 10000SB1656sam001 | | LRB100 08447 HLH 22775 a |
|
| 1 | | AMENDMENT TO SENATE BILL 1656
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1656 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Biobased Manufactured Molecules Production Tax Credit Program | 6 | | Act. | 7 | | Section 5. Definitions. As used in this Act, unless the | 8 | | context otherwise requires: | 9 | | "Biobased content percentage" means, with respect to any | 10 | | biobased manufactured molecules, the amount, expressed as a | 11 | | percentage, of renewable organic material present as | 12 | | determined by testing representative samples using the ASTM | 13 | | standard D6866. | 14 | | "Biomass feedstock" means sugar, polysaccharide, crude | 15 | | glycerin, lignin, fat, grease, or oil derived from an animal or | 16 | | plant (including a protein capable of being converted to a |
| | | 10000SB1656sam001 | - 2 - | LRB100 08447 HLH 22775 a |
|
| 1 | | building block molecule by means of a biological or chemical | 2 | | conversion process). | 3 | | "Building block molecule" means a molecule converted from | 4 | | biomass feedstock as a first product or a secondarily derived | 5 | | product that can be further refined into a higher-value | 6 | | molecule, material, or consumer product. The term "building | 7 | | block molecule" includes, but is not limited to, high purity | 8 | | molecules including enzymes, probiotics, and prebiotics, and | 9 | | chemicals such as phytase, xylanase, cellulase, NSP enzymes, | 10 | | bacillus, lactobacillus, oligosaccharides, glycerol, glycols, | 11 | | oleic acid, lauric acid, methanoic or formic acid, arabonic | 12 | | acid, erythonic acid, glyceric acid, glycolic acid, lactic | 13 | | acid, 3-hydroxypropionate, propionic acid, malonic acid, | 14 | | serine, succinic acid, fumaric acid, malic acid, aspartic acid, | 15 | | 3-hydroxybutyrolactone, acetoin, threonine, itaconic acid, | 16 | | furfural, levulinic acid, glutamic acid, xylonic acid, xylaric | 17 | | acid, xylitol, arabitol, citric acid, aconitic acid, | 18 | | 5-hydroxymethylfurfural, lysine, gluconic acid, glucaric acid, | 19 | | sorbitol, gallic acid, ferulic acid, carboxylic acid methyl | 20 | | esters, nonfuel butanol, nonfuel ethanol, diols, polyols, | 21 | | carotenoids, beta-glucan or such additional molecules as may be | 22 | | included by the Department by rule after consultation with | 23 | | appropriate experts from the Department of Agricultural and | 24 | | Biological Engineering within the University of Illinois | 25 | | College of Agricultural, Consumer, and Environmental Sciences. | 26 | | "Crude glycerin" means glycerin with a purity level below |
| | | 10000SB1656sam001 | - 3 - | LRB100 08447 HLH 22775 a |
|
| 1 | | 95%. | 2 | | "Department" means the Department of Commerce and Economic | 3 | | Opportunity. | 4 | | "Eligible business" means a business meeting the | 5 | | requirements of Section 10. | 6 | | "Food additive" means a building block molecule that is not | 7 | | primarily consumed as food but which, when combined with other | 8 | | components, improves the taste, appearance, odor, texture, | 9 | | health or nutritional content of food. The Department, in its | 10 | | discretion, shall determine whether or not a building block | 11 | | molecule is primarily consumed as food. | 12 | | "High-purity glycerol" means glycerol with a purity level | 13 | | of 95% or higher. | 14 | | "Pre-eligibility production threshold" means, with respect | 15 | | to each eligible business, the number of pounds of renewable | 16 | | chemicals produced, if any, by an eligible business during the | 17 | | calendar year prior to the calendar year in which the business | 18 | | first qualified as an eligible business pursuant to Section 10. | 19 | | "Program" means the biobased manufactured molecules | 20 | | production tax credit program administered pursuant to this | 21 | | Act. | 22 | | "Biobased manufactured molecule" means a building block | 23 | | molecule with a biobased content percentage of at least 50%. | 24 | | The term "biobased manufactured molecule" does not include a | 25 | | chemical molecule sold or used for the production of food, | 26 | | feed, or fuel. The term "biobased manufactured molecule" |
| | | 10000SB1656sam001 | - 4 - | LRB100 08447 HLH 22775 a |
|
| 1 | | includes cellulosic ethanol, starch ethanol, or other ethanol | 2 | | derived from biomass feedstock, fatty acid methyl esters, or | 3 | | butanol, but only to the extent that such molecules are | 4 | | produced and sold for uses other than food, feed, or fuel. The | 5 | | term "biobased manufactured molecule" also includes building | 6 | | block molecules that can be a food or feed additive as long as | 7 | | the building block molecule is not primarily consumed as food | 8 | | and is also sold for uses other than food. The term "biobased | 9 | | manufactured molecule" also includes supplements, vitamins, | 10 | | nutraceuticals, and pharmaceuticals, but only to the extent | 11 | | that such molecules do not provide caloric value so as to be | 12 | | considered sustenance as food or feed. | 13 | | "Sugar" means the organic compound glucose, fructose, | 14 | | xylose, arabinose, lactose, sucrose, starch, cellulose, or | 15 | | hemicellulose. | 16 | | Section 10. Eligibility requirements. To be eligible to | 17 | | receive the renewable chemical production tax credit pursuant | 18 | | to the program, a business shall meet all of the following | 19 | | requirements: | 20 | | (1) the business must be physically located in this | 21 | | State; | 22 | | (2) the business must be operated for profit and under | 23 | | single management; | 24 | | (3) the business may not be an entity providing | 25 | | professional services, health care services, or medical |
| | | 10000SB1656sam001 | - 5 - | LRB100 08447 HLH 22775 a |
|
| 1 | | treatments or an entity engaged primarily in retail | 2 | | operations; | 3 | | (4) the business organized, expanded, or located in the | 4 | | State on or after the effective date of this Act; | 5 | | (5) the business is not relocating or reducing | 6 | | operations within the State; and | 7 | | (6) the business is in compliance with all agreements | 8 | | entered into under this program or other programs | 9 | | administered by the Department. | 10 | | Section 15. Eligible business application and agreement; | 11 | | maximum tax credits. | 12 | | (a) An eligible business that produces a biobased | 13 | | manufactured molecule in this State from biomass feedstock | 14 | | during a calendar year may apply to the Department for the tax | 15 | | credit provided in Section 20. The application shall be made to | 16 | | the Department in the manner prescribed by the Department. The | 17 | | application shall be made during the calendar year following | 18 | | the calendar year in which the renewable chemicals are | 19 | | produced. The Department may accept applications on a | 20 | | continuous basis or may establish, by rule, an annual | 21 | | application deadline. | 22 | | (b) The application shall include all of the following | 23 | | information: | 24 | | (1) the amount of biobased manufactured molecule | 25 | | produced in the State from biomass feedstock by the |
| | | 10000SB1656sam001 | - 6 - | LRB100 08447 HLH 22775 a |
|
| 1 | | eligible business during the calendar year, measured in | 2 | | pounds; and | 3 | | (2) any other information reasonably required by the | 4 | | Department in order to establish and verify eligibility | 5 | | under the program. | 6 | | (b) Before being issued a tax credit under Section 20, an | 7 | | eligible business shall enter into an agreement with the | 8 | | Department for the successful completion of all requirements of | 9 | | the program. As part of the agreement, the eligible business | 10 | | shall agree to collect and provide any information reasonably | 11 | | required by the Department in order to allow the Department to | 12 | | fulfill its reporting obligation under Section 25. An eligible | 13 | | business shall fulfill all the requirements of the program and | 14 | | the agreement before receiving a tax credit or entering into a | 15 | | subsequent agreement under this Section. The Department may | 16 | | decline to enter into a subsequent agreement under this Section | 17 | | or issue a tax credit if an agreement is not successfully | 18 | | fulfilled. Upon establishing that all requirements of the | 19 | | program and the agreement have been fulfilled, the Department | 20 | | shall issue a tax credit and related tax credit certificate to | 21 | | the eligible business stating the amount of renewable chemical | 22 | | production tax credit the eligible business may claim. | 23 | | (c) The maximum amount of tax credit that may be issued | 24 | | under Section 20 to an eligible business for the production of | 25 | | renewable chemicals in a calendar year shall not exceed the | 26 | | following: |
| | | 10000SB1656sam001 | - 7 - | LRB100 08447 HLH 22775 a |
|
| 1 | | (1) in the case of an eligible business that has been | 2 | | in operation in the state for 5 years or less at the time | 3 | | of application, $1,000,000; and | 4 | | (2)in the case of an eligible business that has been in | 5 | | operation in the state for more than 5 years at the time of | 6 | | application, $500,000. | 7 | | (d) An eligible business shall not receive a tax credit for | 8 | | a biobased manufactured molecule produced before the date the | 9 | | business first qualified as an eligible business pursuant to | 10 | | Section 10. | 11 | | (e) An eligible business shall receive a tax credit for a | 12 | | biobased manufactured molecule produced in a calendar year only | 13 | | to the extent such production exceeds the pre-eligibility | 14 | | production threshold for the eligible business. | 15 | | (f) An eligible business shall not receive more than 5 tax | 16 | | credits under the program. | 17 | | (g) The Department shall issue tax credits under the | 18 | | program on a first-come, first-served basis until the maximum | 19 | | amount of $25,000,000 of tax credits are allocated in any given | 20 | | calendar year. The Department shall maintain a list of | 21 | | successful applicants under the program, so that if the maximum | 22 | | aggregate amount of tax credits is reached in a given year, | 23 | | eligible businesses that successfully applied but for which tax | 24 | | credits were not issued in a prior year shall be placed on a | 25 | | wait list in the order in which the eligible businesses applied | 26 | | and shall be given priority for receiving tax credits in |
| | | 10000SB1656sam001 | - 8 - | LRB100 08447 HLH 22775 a |
|
| 1 | | succeeding years. Placement on a wait list pursuant to this | 2 | | paragraph shall not constitute a promise binding the State. The | 3 | | availability of a tax credit and issuance of a tax credit | 4 | | certificate pursuant to this subsection in a future year is | 5 | | contingent upon the availability of tax credits in that | 6 | | particular year. | 7 | | (h) The failure by an eligible business in fulfilling any | 8 | | requirement of the program or any of the terms and obligations | 9 | | of an agreement entered into pursuant to this Section may | 10 | | result in the reduction, termination, or recision of the tax | 11 | | credits under Section 20 and may subject the eligible business | 12 | | to the repayment or recapture of tax credits claimed. | 13 | | Section 17. Confidentiality. | 14 | | (a) Except as provided in subsection (b), any information | 15 | | or record in the possession of the Department with respect to | 16 | | the program shall be presumed by the Department to be a trade | 17 | | secret and shall be kept confidential by the Department unless | 18 | | otherwise ordered by a court. | 19 | | (b) The identity of a tax credit recipient and the amount | 20 | | of the tax credit shall be considered public information. | 21 | | Section 20. Biobased manufactured molecule production tax | 22 | | credit. | 23 | | (a) An eligible business that has entered into an agreement | 24 | | pursuant to Section 15 may claim a tax credit in an amount |
| | | 10000SB1656sam001 | - 9 - | LRB100 08447 HLH 22775 a |
|
| 1 | | equal to the product of $0.05 multiplied by the number of | 2 | | pounds of renewable chemicals produced in this State from | 3 | | biomass feedstock by the eligible business during the calendar | 4 | | year in excess of the eligible business's pre-eligibility | 5 | | production threshold. However, an eligible business shall not | 6 | | receive a tax credit for the production of a secondarily | 7 | | derived building block chemical if that chemical is also the | 8 | | subject of a credit at the time of production as a first | 9 | | product.The renewable chemical production tax credit shall not | 10 | | be available for any renewable chemical produced before the | 11 | | 2018 calendar year. | 12 | | (b) The tax credit shall be allowed against taxes imposed | 13 | | on corporations under subsections (a) and (b) of Section 201 of | 14 | | the Illinois Income Tax Act. | 15 | | (c) The tax credit shall be claimed for the tax year during | 16 | | which the eligible business was issued the tax credit. | 17 | | (d) An individual may claim a tax credit under this Section | 18 | | against the taxes imposed under subsections (a) and (b) of | 19 | | Section 201 of the Illinois Income Tax Act for a partnership, | 20 | | limited liability company, S corporation, cooperative | 21 | | organized under chapter 501 and filing as a partnership for | 22 | | federal tax purposes, estate, or trust electing to have income | 23 | | taxed directly to the individual. The amount claimed by the | 24 | | individual shall be based upon the pro rata share of the | 25 | | individual's earnings from the partnership, limited liability | 26 | | company, S corporation, cooperative, estate, or trust. |
| | | 10000SB1656sam001 | - 10 - | LRB100 08447 HLH 22775 a |
|
| 1 | | (e) For any tax credit in excess of the tax liability, the | 2 | | taxpayer may elect to have the overpayment shown on the | 3 | | taxpayer's final, completed return credited to the tax | 4 | | liability for the following tax year. | 5 | | (f) To claim a tax credit under this Section, the taxpayer | 6 | | shall include one or more tax credit certificates with the | 7 | | taxpayer's tax return. The tax credit certificate shall contain | 8 | | the taxpayer's name, address, tax identification number, the | 9 | | amount of the credit, the name of the eligible business, and | 10 | | any other information required by the Department of Revenue. | 11 | | The tax credit certificate, unless rescinded by the Department, | 12 | | shall be accepted by the Department of Revenue as payment for | 13 | | taxes imposed pursuant to the Illinois Income Tax Act, subject | 14 | | to any conditions or restrictions placed by the Department upon | 15 | | the face of the tax credit certificate and subject to the | 16 | | limitations of the program. Tax credit certificates issued | 17 | | pursuant to this section shall not be transferred to any other | 18 | | person. | 19 | | Section 25. Reports to General Assembly. | 20 | | (a) For purposes of this Section, "successful tax credit | 21 | | applicant" includes, with respect to each calendar year, an | 22 | | eligible taxpayer that was issued a tax credit for production | 23 | | of biobased manufactured molecule during that calendar year, | 24 | | and an eligible taxpayer that successfully applied for a tax | 25 | | credit for the production of a biobased manufactured molecule |
| | | 10000SB1656sam001 | - 11 - | LRB100 08447 HLH 22775 a |
|
| 1 | | during that calendar year, but was not issued a tax credit and | 2 | | was instead placed on a wait list pursuant to subsection (g) of | 3 | | Section 15. | 4 | | (b) By January 31, 2019, and by the same date each year | 5 | | thereafter, the Department, in cooperation with the Department | 6 | | of Revenue, shall submit to the General Assembly and the | 7 | | Governor a report describing the activities of the program for | 8 | | the most recent calendar year for which the tax credit | 9 | | application period has ended pursuant to Section 15. The report | 10 | | shall at a minimum include the following information: | 11 | | (1) the aggregate number of pounds, and a list of each | 12 | | type, of biobased manufactured molecules produced in | 13 | | Illinois by all successful tax credit applicants during the | 14 | | calendar year prior to the calendar year for which the | 15 | | successful applicants first applied for a tax credit under | 16 | | the program; | 17 | | (2) the aggregate number of pounds, and a list of each | 18 | | type, of biobased manufactured molecules produced in | 19 | | Illinois by all successful tax credit applicants during | 20 | | each calendar year; | 21 | | (3) the aggregate sales of all biobased manufactured | 22 | | molecules produced by all successful tax credit applicants | 23 | | in each calendar year for which there are at least 5 | 24 | | successful tax credit applicants; | 25 | | (4) the aggregate number of pounds, and a list of each | 26 | | type, of biomass feedstock used in the production of |
| | | 10000SB1656sam001 | - 12 - | LRB100 08447 HLH 22775 a |
|
| 1 | | biobased manufactured molecules in Illinois by all | 2 | | successful tax credit applicants during the calendar year | 3 | | prior to the calendar year for which the successful | 4 | | applicants first applied for a tax credit under the | 5 | | program; | 6 | | (5) the aggregate number of pounds, and a list of each | 7 | | type, of biomass feedstock used in the production of | 8 | | biobased manufactured molecules in Illinois by all | 9 | | successful tax credit applicants during each calendar | 10 | | year; | 11 | | (6) the number of employees located in Illinois of all | 12 | | successful tax credit applicants during the calendar year | 13 | | prior to the calendar year for which the successful | 14 | | applicants first applied for a tax credit under the | 15 | | program; | 16 | | (7) the number of employees located in Illinois of all | 17 | | successful tax credit applicants during each calendar | 18 | | year; | 19 | | (8) the number and aggregate amount of tax credits | 20 | | issued under the program for each calendar year; | 21 | | (9) the number of eligible businesses placed on the | 22 | | wait list for each calendar year and the total number of | 23 | | eligible businesses remaining on the wait list at the end | 24 | | of that calendar year; | 25 | | (10) the dollar amount of tax credit claims placed on | 26 | | the wait list for each calendar year and the total dollar |
| | | 10000SB1656sam001 | - 13 - | LRB100 08447 HLH 22775 a |
|
| 1 | | amount of tax credit claims remaining on the wait list at | 2 | | the end of that calendar year; | 3 | | (11) for each eligible business issued a biobased | 4 | | manufactured molecules production tax credit during each | 5 | | calendar year: | 6 | | (A) the identity of the eligible business; | 7 | | (B) the amount of the tax credit; and | 8 | | (C) the manner in which the eligible business first | 9 | | qualified as an eligible business under Section 10; and | 10 | | (12) the total amount of all biobased manufactured | 11 | | molecules production tax credits claimed during each | 12 | | calendar year and the portion of the claims issued as | 13 | | refunds. | 14 | | (c) To protect the presumption of confidentiality | 15 | | established in Section 17, the Department shall report all | 16 | | information in an aggregate form to prevent, as much as | 17 | | possible, information being attributable to any particular | 18 | | eligible business. | 19 | | Section 30. Rules. The Department and the Illinois | 20 | | Department of Revenue shall each adopt rules as necessary for | 21 | | the implementation and administration of this Act. | 22 | | Section 35. Repeal. This Act is repealed on January 1, | 23 | | 2024. |
| | | 10000SB1656sam001 | - 14 - | LRB100 08447 HLH 22775 a |
|
| 1 | | Section 900. The Illinois Income Tax Act is amended by | 2 | | adding Section 224 as follows: | 3 | | (35 ILCS 5/224 new) | 4 | | Sec. 224. Biobased Manufactured Molecules Production Tax | 5 | | Credit Program Act. A taxpayer is entitled to a credit against | 6 | | the taxes imposed by subsections (a) and (b) of Section 201 of | 7 | | this Act as provided in the Biobased Manufactured Molecules | 8 | | Production Tax Credit Program Act. This Section is repealed on | 9 | | December 31, 2025.
| 10 | | Section 999. Effective date. This Act takes effect upon | 11 | | becoming law.".
|
|