Full Text of SB1359 97th General Assembly
SB1359 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1359 Introduced 2/8/2011, by Sen. Carole Pankau SYNOPSIS AS INTRODUCED: |
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Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that, on and after the effective date of the amendatory Act, any Taxpayer that is awarded a credit under the Act may elect to claim the Credit against its withholding tax obligations (now, only certain taxpayers that are engaged in motor vehicle metal stamping, automobile manufacturing, automobile and light duty motor vehicle manufacturing, motor vehicle manufacturing, light truck and utility vehicle manufacturing, heavy duty truck manufacturing, or motor vehicle body manufacturing may claim the credit against withholdings). Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 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 |
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| 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) Prior to the effective date of this amendatory Act | 12 | | of the 97th General Assembly, the The election under this | 13 | | subsection (f) may be made only by a Taxpayer that (i) is | 14 | | primarily engaged in one of the following business | 15 | | activities: motor vehicle metal stamping, automobile | 16 | | manufacturing, automobile and light duty motor vehicle | 17 | | manufacturing, motor vehicle manufacturing, light truck | 18 | | and utility vehicle manufacturing, heavy duty truck | 19 | | manufacturing, or motor vehicle body manufacturing and | 20 | | (ii) meets the following criteria: | 21 | | (A) the Taxpayer (i) had an Illinois net loss or an | 22 | | Illinois net loss deduction under Section 207 of the | 23 | | Illinois Income Tax Act for the taxable year in which | 24 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 25 | | full-time employees in this State during the taxable | 26 | | year in which the Credit is awarded, (iii) has an |
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| 1 | | Agreement under this Act on December 14, 2009 (the | 2 | | effective date of Public Act 96-834), and (iv) is in | 3 | | compliance with all provisions of that Agreement; | 4 | | (B) the Taxpayer (i) had an Illinois net loss or an | 5 | | Illinois net loss deduction under Section 207 of the | 6 | | Illinois Income Tax Act for the taxable year in which | 7 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 8 | | full-time employees in this State during the taxable | 9 | | year in which the Credit is awarded, and (iii) has | 10 | | applied for an Agreement within 365 days after December | 11 | | 14, 2009 (the effective date of Public Act 96-834); or | 12 | | (C) the Taxpayer (i) had an Illinois net operating | 13 | | loss carryforward under Section 207 of the Illinois | 14 | | Income Tax Act in a taxable year ending during calendar | 15 | | year 2008, (ii) has applied for an Agreement within 150 | 16 | | days after the effective date of this amendatory Act of | 17 | | the 96th General Assembly, (iii) creates at least 400 | 18 | | new jobs in Illinois, (iv) retains at least 2,000 jobs | 19 | | in Illinois that would have been at risk of relocation | 20 | | out of Illinois over a 10-year period, and (v) makes a | 21 | | capital investment of at least $75,000,000. | 22 | | (1.5) On and after the effective date of this | 23 | | amendatory Act of the 97th General Assembly, any Taxpayer | 24 | | that is awarded a Credit under this Act may elect to claim | 25 | | the Credit against its obligation to pay over withholding | 26 | | under Section 704A of the Illinois Income Tax Act. |
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| 1 | | (2) An election under this subsection shall allow the | 2 | | credit to be taken against payments otherwise due under | 3 | | Section 704A of the Illinois Income Tax Act during the | 4 | | first calendar year beginning after the end of the taxable | 5 | | year in which the credit is awarded under this Act. | 6 | | (3) The election shall be made in the form and manner | 7 | | required by the Illinois Department of Revenue and, once | 8 | | made, shall be irrevocable. | 9 | | (4) If a Taxpayer who meets the requirements of | 10 | | subparagraph (A) of paragraph (1) of this subsection (f) | 11 | | elects to claim the Credit against its withholdings as | 12 | | provided in this subsection (f), then, on and after the | 13 | | date of the election, the terms of the Agreement between | 14 | | the Taxpayer and the Department may not be further amended | 15 | | during the term of the Agreement. | 16 | | (g) A pass-through entity that has been awarded a credit | 17 | | under this Act, its shareholders, or its partners may treat | 18 | | some or all of the credit awarded pursuant to this Act as a tax | 19 | | payment for purposes of the Illinois Income Tax Act. The term | 20 | | "tax payment" means a payment as described in Article 6 or | 21 | | Article 8 of the Illinois Income Tax Act or a composite payment | 22 | | made by a pass-through entity on behalf of any of its | 23 | | shareholders or partners to satisfy such shareholders' or | 24 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 25 | | Section 201 of the Illinois Income Tax Act. In no event shall | 26 | | the amount of the award credited pursuant to this Act exceed |
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| 1 | | the Illinois income tax liability of the pass-through entity or | 2 | | its shareholders or partners for the taxable year. | 3 | | (Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09; | 4 | | 96-836, eff. 12-16-09; 96-905, eff. 6-4-10; 96-1000, eff. | 5 | | 7-2-10.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
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