Full Text of SB3147 96th General Assembly
SB3147eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Efficient and Green Illinois Tax Credit Act. | 6 |
| Section 5. Purpose. The General Assembly finds that the | 7 |
| Illinois economy and environment are greatly enhanced by the | 8 |
| installation of energy efficiency measures and by the support | 9 |
| of renewable energy resources. The purpose of this Act is to | 10 |
| expand the adoption of energy efficiency measures in the | 11 |
| private sector, as well as to encourage use of renewable energy | 12 |
| resources. It is the policy of this State to promote and | 13 |
| encourage the adoption of energy efficiency measures as well as | 14 |
| the voluntary use of renewable energy resources.
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| Section 10. Definitions. As used in this Act:
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| "Energy efficiency project" includes any of the following: | 17 |
| (A) Solar energy equipment that uses solar | 18 |
| radiation as a substitute for traditional energy for | 19 |
| water heating, active space heating and cooling, | 20 |
| passive heating, day-lighting, generating electricity, | 21 |
| distillation, desalinization, or the production of | 22 |
| industrial or commercial process heat, as well as |
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| related devices necessary for collecting, storing, | 2 |
| exchanging, conditioning, or converting solar energy | 3 |
| to other useful forms of energy. | 4 |
| (B) Energy Star certified geothermal heat pump | 5 |
| systems. | 6 |
| (C) Lighting retrofit projects. "Lighting retrofit | 7 |
| project" means a lighting retrofit system that employs | 8 |
| dual switching (ability to switch roughly half the | 9 |
| lights off and still have fairly uniform light | 10 |
| distribution), de-lamping, day-lighting, re-lamping, | 11 |
| or other controls or processes that reduce annual | 12 |
| energy and power consumption by 30% compared to the | 13 |
| American Society of Heating, Refrigerating, and Air | 14 |
| Conditioning Engineers 2004 standard (ASHRAE | 15 |
| 90.1.2004). | 16 |
| (D) Wind equipment required to capture and convert | 17 |
| wind energy into electricity or mechanical power as | 18 |
| well as related devices that may be required for | 19 |
| converting, conditioning, and storing the electricity | 20 |
| produced by wind equipment. | 21 |
| (E) Green roofs and other environmentally | 22 |
| sustainable landscaping. | 23 |
| (F) WaterSense certified products for indoor and | 24 |
| outdoor non-agricultural water use. | 25 |
| "Cost" means, in the case of clean energy property owned by | 26 |
| the taxpayer, the aggregate funds actually invested and |
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| expended by the taxpayer to put into service the clean energy | 2 |
| property. For purposes of this Section, all funds so invested | 3 |
| and expended shall be classified as invested and expended in | 4 |
| the taxable year during which the property is put into service. | 5 |
| "Credit" means: | 6 |
| (A) For an energy efficiency project approved by | 7 |
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Department, the amount equal to 25% of the cost of | 8 |
| that project. | 9 |
| (B) For renewable energy resources usage approved | 10 |
| by the Department, an amount equal to 25% of the cost | 11 |
| paid for the environmental attributes of those | 12 |
| renewable energy resources during the tax year. | 13 |
| "Department" means the Department of Commerce and Economic | 14 |
| Opportunity. | 15 |
| "Renewable energy resources" means the same as it does in | 16 |
| Section 1-10 of the Illinois Power Agency Act. | 17 |
| Section 15. Powers of the Department. The Department, in | 18 |
| addition to those powers granted under the Civil Administrative | 19 |
| Code of Illinois, is granted and has all the powers necessary | 20 |
| or convenient to carry out and effectuate the purposes and | 21 |
| provisions of this Act, including, but not limited to, power | 22 |
| and authority to: | 23 |
| (1) Adopt rules deemed necessary and appropriate for | 24 |
| the administration of the tax credit program; establish | 25 |
| forms for applications, notifications, contracts, or any |
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| other agreements; and accept applications at any time | 2 |
| during the year. | 3 |
| (2) Assist applicants pursuant to the provisions of | 4 |
| this Act to promote, foster, and support energy efficiency | 5 |
| measures and renewable energy resources and related job | 6 |
| creation or retention within the State. | 7 |
| (3) Provide for sufficient personnel to permit | 8 |
| administration, staffing, operation, and related support | 9 |
| required to adequately discharge its duties and | 10 |
| responsibilities described in this Act from funds as may be | 11 |
| appropriated to the Department for the administration of | 12 |
| this Act. | 13 |
| (4) Require that an applicant must at all times keep | 14 |
| proper books of record and account in accordance with | 15 |
| generally accepted accounting principles consistently | 16 |
| applied, with the books, records, or papers related to the | 17 |
| accredited production in the custody or control of the | 18 |
| taxpayer open for reasonable Department inspection and | 19 |
| audits. | 20 |
| Section 20. Tax credit awards. Subject to the conditions | 21 |
| set forth in this Act, for taxable years beginning on or after | 22 |
| January 1, 2010, an applicant is entitled to a credit against | 23 |
| the tax imposed under subsections (a) and (b) of Section 201 of | 24 |
| the Illinois Income Tax Act, in an amount approved by the | 25 |
| Department under Section 40 of this Act. |
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| Section 35. Issuance of tax credit certificate.
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| (a) In order to qualify for a tax credit under this Act, an | 3 |
| applicant must file an application, on forms prescribed by the | 4 |
| Department, providing information necessary to calculate the | 5 |
| tax credit, and any additional information as required by the | 6 |
| Department. | 7 |
| (b) Upon satisfactory review of the application, the | 8 |
| Department shall issue a tax credit certificate. | 9 |
| Section 40. Amount and duration of the credit. The amount | 10 |
| of the credit awarded under this Act is based on the cost of | 11 |
| the qualifying expenditures under this Act. The credit shall be | 12 |
| awarded for the taxable year in which the project is put into | 13 |
| service.
The tax credit may not reduce the taxpayer's liability | 14 |
| to less than zero. If the amount of the tax credit exceeds the | 15 |
| taxpayer's Illinois income tax liability for the year, the | 16 |
| excess may be carried forward and applied to the tax liability | 17 |
| of the 5 taxable years following the excess credit year. The | 18 |
| credit must be applied to the earliest year for which there is | 19 |
| a tax liability. If there are credits from more than one tax | 20 |
| year that are available to offset a liability, then the earlier | 21 |
| credit must be applied first. The Department may not approve | 22 |
| more than $40,000,000 in credits under this Act in any one | 23 |
| taxable year. This Act is exempt from the provisions of Section | 24 |
| 250 of the Illinois Income Tax Act. |
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| Section 80. The Illinois Income Tax Act is amended by | 2 |
| adding Section 219 as follows: | 3 |
| (35 ILCS 5/219 new) | 4 |
| Sec. 219. Efficient and Green Illinois Tax Credit Act. For | 5 |
| tax years beginning on or after January 1, 2010, a taxpayer who | 6 |
| has been awarded a credit under the Efficient and Green | 7 |
| Illinois Tax Credit Act is entitled to a credit against the | 8 |
| taxes imposed under subsections (a) and (b) of Section 201 of | 9 |
| this Act in an amount to be determined under that Act. If the | 10 |
| taxpayer is a partnership or Subchapter S corporation, the | 11 |
| credit shall be allowed to the partners or shareholders in | 12 |
| accordance with the determination of income and distributive | 13 |
| share of income under Sections 702 and 704 and Subchapter S of | 14 |
| the Internal Revenue Code. This Section is exempt from the | 15 |
| provisions of Section 250 of this Act.
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| Section 99. Effective date. This Act takes effect upon | 17 |
| becoming law.
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