Full Text of SB0013 097th General Assembly
SB0013 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB0013 Introduced 1/27/2011, by Sen. Linda Holmes SYNOPSIS AS INTRODUCED: | | |
Amends the Economic Development for a Growing Economy Tax Credit Act. Removes a requirement that only certain manufacturing companies may elect to claim the credit against their withholding tax obligations. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | SB0013 | | LRB097 06650 HLH 46736 b |
|
| 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 |
| | | SB0013 | - 2 - | LRB097 06650 HLH 46736 b |
|
| 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: motor vehicle metal | 14 | | stamping, automobile manufacturing, automobile and light | 15 | | duty motor vehicle manufacturing, motor vehicle | 16 | | manufacturing, light truck and utility vehicle | 17 | | manufacturing, heavy duty truck manufacturing, or motor | 18 | | vehicle body manufacturing and (ii) meets the following | 19 | | 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 |
| | | SB0013 | - 3 - | LRB097 06650 HLH 46736 b |
|
| 1 | | effective date of Public Act 96-834), and (iii) (iv) is | 2 | | in 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 and (ii) , (ii) employed a | 7 | | minimum of 1,000 full-time employees in this State | 8 | | during the taxable year in which the Credit is awarded, | 9 | | and (iii) has applied for an Agreement by July 1, 2011, | 10 | | or within 30 days after the effective date of this | 11 | | amendatory Act of the 97th General Assembly, whichever | 12 | | is later within 365 days after December 14, 2009 (the | 13 | | effective date of Public Act 96-834) ; or | 14 | | (C) the Taxpayer (i) had an Illinois net operating | 15 | | loss carryforward under Section 207 of the Illinois | 16 | | Income Tax Act in a taxable year ending during calendar | 17 | | year 2008, (ii) has applied for an Agreement within 150 | 18 | | days after the effective date of this amendatory Act of | 19 | | the 96th General Assembly, (iii) creates at least 400 | 20 | | new jobs in Illinois, (iv) retains at least 2,000 jobs | 21 | | in Illinois that would have been at risk of relocation | 22 | | out of Illinois over a 10-year period, and (v) makes a | 23 | | capital investment of at least $75,000,000. | 24 | | (2) An election under this subsection shall allow the | 25 | | credit to be taken against payments otherwise due under | 26 | | Section 704A of the Illinois Income Tax Act during the |
| | | SB0013 | - 4 - | LRB097 06650 HLH 46736 b |
|
| 1 | | first calendar year beginning after the end of the taxable | 2 | | year in which the credit is awarded under this Act. | 3 | | (3) The election shall be made in the form and manner | 4 | | required by the Illinois Department of Revenue and, once | 5 | | made, shall be irrevocable. | 6 | | (4) If a Taxpayer who meets the requirements of | 7 | | subparagraph (A) of paragraph (1) of this subsection (f) | 8 | | elects to claim the Credit against its withholdings as | 9 | | provided in this subsection (f), then, on and after the | 10 | | date of the election, the terms of the Agreement between | 11 | | the Taxpayer and the Department may not be further amended | 12 | | during the term of the Agreement. | 13 | | (g) A pass-through entity that has been awarded a credit | 14 | | under this Act, its shareholders, or its partners may treat | 15 | | some or all of the credit awarded pursuant to this Act as a tax | 16 | | payment for purposes of the Illinois Income Tax Act. The term | 17 | | "tax payment" means a payment as described in Article 6 or | 18 | | Article 8 of the Illinois Income Tax Act or a composite payment | 19 | | made by a pass-through entity on behalf of any of its | 20 | | shareholders or partners to satisfy such shareholders' or | 21 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 22 | | Section 201 of the Illinois Income Tax Act. In no event shall | 23 | | the amount of the award credited pursuant to this Act exceed | 24 | | the Illinois income tax liability of the pass-through entity or | 25 | | its shareholders or partners for the taxable year. | 26 | | (Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09; |
| | | SB0013 | - 5 - | LRB097 06650 HLH 46736 b |
|
| 1 | | 96-836, eff. 12-16-09; 96-905, eff. 6-4-10; 96-1000, eff. | 2 | | 7-2-10.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law. |
|