Full Text of HB3316 098th General Assembly
HB3316 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB3316 Introduced , by Rep. Norine Hammond SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/211 |
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35 ILCS 10/5-45 |
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Amends the Economic Development for a Growing Economy Tax Credit Act and the Illinois Income Tax Act. Provides that, with respect to any project located at an ethanol plant, if the amount of the credit exceeds the taxpayer's Illinois income tax liability for the taxable year, then the excess credit amounts may be refunded to the taxpayer. Provides that refundable credits may not be transferred to a separate business firm or to a non-ethanol producing subsidiary of the same firm. 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 Illinois Income Tax Act is amended by | 5 | | changing Section 211 as follows:
| 6 | | (35 ILCS 5/211)
| 7 | | Sec. 211. Economic Development for a Growing Economy Tax | 8 | | Credit. For tax years beginning on or after January 1, 1999, a | 9 | | Taxpayer
who has entered into an Agreement under the Economic | 10 | | Development for a Growing
Economy Tax Credit Act is entitled to | 11 | | a credit against the taxes imposed
under subsections (a) and | 12 | | (b) of Section 201 of this Act in an amount to be
determined in | 13 | | the Agreement. If the Taxpayer is a partnership or Subchapter
S | 14 | | corporation, the credit shall be allowed to the partners or | 15 | | shareholders in
accordance with the determination of income and | 16 | | distributive share of income
under Sections 702 and 704 and | 17 | | subchapter S of the Internal Revenue Code.
The Department, in | 18 | | cooperation with the Department
of Commerce and Economic | 19 | | Opportunity, shall prescribe rules to enforce and
administer | 20 | | the provisions of this Section. This Section is
exempt from the | 21 | | provisions of Section 250 of this Act.
| 22 | | The credit shall be subject to the conditions set forth in
| 23 | | the Agreement and the following limitations:
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| 1 | | (1) The tax credit shall not exceed the Incremental | 2 | | Income Tax
(as defined in Section 5-5 of the Economic | 3 | | Development for a Growing Economy
Tax Credit Act) with | 4 | | respect to the project.
| 5 | | (2) The amount of the credit allowed during the tax | 6 | | year plus the sum of
all amounts allowed in prior years | 7 | | shall not exceed 100% of the aggregate
amount expended by | 8 | | the Taxpayer during all prior tax years on approved costs
| 9 | | defined by Agreement.
| 10 | | (3) The amount of the credit shall be determined on an | 11 | | annual
basis. Except as applied in a carryover year | 12 | | pursuant to Section 211(4) of
this Act, the credit may not | 13 | | be applied against any State
income tax liability in more | 14 | | than 10 taxable
years; provided, however, that (i) an | 15 | | eligible business certified by the
Department of Commerce | 16 | | and Economic Opportunity under the Corporate Headquarters
| 17 | | Relocation Act may not
apply the credit against any of its | 18 | | State income tax liability in more than 15
taxable years
| 19 | | and (ii) credits allowed to that eligible business are | 20 | | subject to the
conditions
and requirements set forth in | 21 | | Sections 5-35 and 5-45 of the Economic
Development for a | 22 | | Growing Economy Tax Credit Act.
| 23 | | (4) The credit may not exceed the amount of taxes | 24 | | imposed pursuant to
subsections (a) and (b) of Section 201 | 25 | | of this Act. Any credit
that is unused in the year the | 26 | | credit is computed may be carried forward and
applied to |
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| 1 | | the tax liability of the 5 taxable years following the | 2 | | excess credit
year. The credit shall be applied to the | 3 | | earliest year for which there is a
tax liability. If there | 4 | | are credits from more than one tax year that are
available | 5 | | to offset a liability, the earlier credit shall be applied | 6 | | first.
| 7 | | (5) No credit shall be allowed with respect to any | 8 | | Agreement for any
taxable year ending after the | 9 | | Noncompliance Date. Upon receiving notification
by the | 10 | | Department of Commerce and Economic Opportunity of the | 11 | | noncompliance of a
Taxpayer with an Agreement, the | 12 | | Department shall notify the Taxpayer that no
credit is | 13 | | allowed with respect to that Agreement for any taxable year | 14 | | ending
after the Noncompliance Date, as stated in such | 15 | | notification. If any credit
has been allowed with respect | 16 | | to an Agreement for a taxable year ending after
the | 17 | | Noncompliance Date for that Agreement, any refund paid to | 18 | | the
Taxpayer for that taxable year shall, to the extent of | 19 | | that credit allowed, be
an erroneous refund within the | 20 | | meaning of Section 912 of this Act.
| 21 | | (6) For purposes of this Section, the terms | 22 | | "Agreement", "Incremental
Income Tax", and "Noncompliance | 23 | | Date" have the same meaning as when used
in the Economic | 24 | | Development for a Growing Economy Tax Credit Act.
| 25 | | Notwithstanding any other provision of law, with respect to | 26 | | any project located at an ethanol plant, as the term "ethanol" |
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| 1 | | is defined in the Illinois Renewable Fuels Development Program | 2 | | Act, if the amount of the credit exceeds the taxpayer's | 3 | | Illinois income tax liability for the taxable year, then the | 4 | | excess credit amounts may be refunded to the taxpayer. The | 5 | | refundable credits may not be transferred to a separate | 6 | | business firm or to a non-ethanol producing subsidiary of the | 7 | | same firm. | 8 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 9 | | Section 10. The Economic Development for a Growing Economy | 10 | | Tax Credit Act is amended by changing Section 5-45 as follows:
| 11 | | (35 ILCS 10/5-45)
| 12 | | Sec. 5-45. Amount and duration of the credit.
| 13 | | (a) The Department shall
determine the amount and
duration | 14 | | of the credit awarded under this Act. The duration of the
| 15 | | credit may not exceed 10 taxable years.
The credit may be | 16 | | stated as
a percentage of the Incremental Income Tax | 17 | | attributable
to the applicant's project and may include a fixed | 18 | | dollar limitation.
| 19 | | (b) Notwithstanding subsection (a),
and except as the | 20 | | credit may be applied in a carryover year pursuant to Section
| 21 | | 211(4) of the Illinois Income Tax Act, the credit may be | 22 | | applied against the
State income tax liability in more than 10 | 23 | | taxable years but not in more than
15 taxable years for an | 24 | | eligible business
that (i) qualifies under this Act
and the |
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| 1 | | Corporate Headquarters Relocation Act and has in fact | 2 | | undertaken a
qualifying project within the time frame specified | 3 | | by the Department of
Commerce and Economic Opportunity under | 4 | | that Act, and (ii) applies against its
State income tax | 5 | | liability, during the entire 15-year
period, no more than 60% | 6 | | of the maximum
credit per year that would otherwise be | 7 | | available under this Act.
| 8 | | (c) Notwithstanding any other provision of law, with | 9 | | respect to any project located at an ethanol plant, as the term | 10 | | "ethanol" is defined in the Illinois Renewable Fuels | 11 | | Development Program Act, if the amount of the credit exceeds | 12 | | the taxpayer's Illinois income tax liability for the taxable | 13 | | year, then the excess credit amounts may be refunded to the | 14 | | taxpayer. The refundable credits may not be transferred to a | 15 | | separate business firm or to a non-ethanol producing subsidiary | 16 | | of the same firm. | 17 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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