Full Text of SB1448 98th General Assembly
SB1448eng 98TH GENERAL ASSEMBLY |
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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 1. Short title. This Act may be cited as the Endow | 5 | | Illinois Tax Credit Act. | 6 | | Section 5. Definitions. For the purposes of this Act: | 7 | | "Department" means the Department of Commerce and Economic | 8 | | Opportunity. | 9 | | "Endowment gift" means an irrevocable contribution, made | 10 | | in cash or stock, to a permanent endowment fund held by a | 11 | | qualified community foundation. | 12 | | "Permanent endowment fund" means a fund that (i) is held by | 13 | | a qualified community foundation to provide benefit only to | 14 | | charitable causes in the State, (ii) is intended to exist in | 15 | | perpetuity, and (iii) has an annual spend rate based on the | 16 | | foundation spending policy, but not to exceed 7%. | 17 | | "Qualified community foundation" means a community | 18 | | foundation or similar publicly supported organization | 19 | | described in Section 170 (b)(1)(A)(vi) of the Internal Revenue | 20 | | Code of 1986 that is organized or operating in this State and | 21 | | that substantially complies with the national standards for | 22 | | U.S. community foundations that are established by the National | 23 | | Council on Foundations, as determined by the Department. |
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| 1 | | Section 10. Tax credit awards. | 2 | | (a) The Department shall award an income tax credit to | 3 | | taxpayers who make an endowment gift to a permanent endowment | 4 | | fund. The amount of the credit that may be awarded to a | 5 | | taxpayer by the Department under this Act is an amount equal to | 6 | | 50% of the endowment gift. Except in the case of an individual, | 7 | | a taxpayer is not eligible to receive a credit under this Act | 8 | | for the taxable year if the taxpayer's average gross business | 9 | | receipts for the 3 taxable years prior to the taxable year for | 10 | | which the taxpayer applies for a credit under this Act exceed | 11 | | $5,000,000 for taxable years ending in 2013 or $12,500,000 for | 12 | | taxable years ending in 2014 or thereafter. | 13 | | (b) The aggregate amount of all credits that the Department | 14 | | may award under this Act in any calendar year may not exceed | 15 | | $5,000,000 in 2013, $12,500,000 in 2014, or $25,000,000 in 2015 | 16 | | and each calendar year thereafter. The aggregate amount of all | 17 | | credits that the Department may authorize to any single | 18 | | taxpayer in a calendar year may not exceed $500,000 in 2013, | 19 | | $1,250,000 in 2014, or $2,500,000 in 2015 and each calendar | 20 | | year thereafter. The aggregate amount of all credits that the | 21 | | Department may authorize based on endowment gifts to any | 22 | | specific community foundation may not exceed $2,500,000 in | 23 | | 2013, $6,250,000 in 2014, or $12,500,000 in 2015 and each | 24 | | calendar year thereafter. | 25 | | (c) If the Department receives applications for tax credits |
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| 1 | | in excess of the aggregate limitation under subsection (b), | 2 | | then the applications must be prioritized by the date that the | 3 | | Department received them, and the Department must establish a | 4 | | wait list for the next year's allocation of tax credits and | 5 | | fund applications in the order listed on that wait list. | 6 | | Section 15. Applications for tax credits. | 7 | | (a) The Department shall develop and make available a | 8 | | standardized application pertaining to the allocation of tax | 9 | | credits under this Act. A separate application for tax credit | 10 | | must be made for each endowment gift, and shall be submitted | 11 | | jointly by the taxpayer and the qualified community foundation | 12 | | to which the endowment gift is to be made. The application | 13 | | shall include such information as the Department deems | 14 | | necessary to determine that the taxpayer is eligible to receive | 15 | | a credit under this Act, and such other information as the | 16 | | Department deems necessary to the administration of this Act. | 17 | | If an application for tax credit is approved, the Department | 18 | | shall issue the taxpayer a certificate of verification that | 19 | | states the amount of the tax credit to which the taxpayer is | 20 | | entitled and the taxable year to which such credit applies. A | 21 | | taxpayer claiming a credit under this Act shall submit to the | 22 | | Department of Revenue a copy of the certificate of verification | 23 | | under this Act. | 24 | | (b) Of the annual amount available for tax credits under | 25 | | subsection (b) of Section 10 of this Act, 10% must be reserved |
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| 1 | | for those endowment gifts of $30,000 or less. If the entire 10% | 2 | | that is reserved for permanent endowment gifts totalling | 3 | | $30,000 or less is not allocated, then the remaining amount is | 4 | | available in the following years for endowment gifts of $30,000 | 5 | | or less. | 6 | | (c) The Department must accept applications and authorize | 7 | | credits on an ongoing basis. The Department must make public, | 8 | | by June 1 and by December 1 of each year, the total number of | 9 | | requests for tax credits and the total amount of requested tax | 10 | | credits that have been submitted and awarded. | 11 | | (d) Notwithstanding any other law to the contrary, the | 12 | | Director of Revenue may make available to the Department | 13 | | information received by the Director from tax returns filed | 14 | | under the Illinois Income Tax Act, for the limited purpose of | 15 | | determining the taxpayer's eligibility for credit under this | 16 | | Act. | 17 | | Section 20. Annual report. By January 31 of each year, the | 18 | | Department must submit an annual report to the Governor and the | 19 | | General Assembly concerning the activities conducted under | 20 | | this Act during the previous calendar year. The report must | 21 | | include a detailed listing of tax credits authorized under this | 22 | | Act by the Department. | 23 | | Section 90. The Illinois Income Tax Act is amended by | 24 | | adding Section 224 as follows: |
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| 1 | | (35 ILCS 5/224 new) | 2 | | Sec. 224. The Endow Illinois Tax Credit. | 3 | | (a) For taxable years ending on or after December 31, 2013, | 4 | | each taxpayer for whom a tax credit has been awarded by the | 5 | | Department of Commerce and Economic Opportunity under the Endow | 6 | | Illinois Tax Credit Act is entitled to a credit against the tax | 7 | | imposed under subsections (a) and (b) of Section 201 in an | 8 | | amount equal to the amount awarded under that Act. | 9 | | (b) If the taxpayer is a partnership or a Subchapter S | 10 | | corporation, the credit is allowed to the partners or | 11 | | shareholders in accordance with the determination of income and | 12 | | distributive share of income under Sections 702 and 704 and | 13 | | Subchapter S of the Internal Revenue Code. | 14 | | (c) The credit may not be carried back and may not reduce | 15 | | the taxpayer's liability to less than zero. If the amount of | 16 | | the credit exceeds the tax liability for the year, the excess | 17 | | may be carried forward and applied to the tax liability of the | 18 | | 5 taxable years following the excess credit year. The tax | 19 | | credit shall be applied to the earliest year for which there is | 20 | | a tax liability. If there are credits for more than one year | 21 | | that are available to offset a liability, the earlier credit | 22 | | shall be applied first.
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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