Full Text of HB3329 98th General Assembly
HB3329 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB3329 Introduced , by Rep. Wayne Rosenthal SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Creates an agriculture credit in an amount equal to 1.5% (for taxable years beginning on or after January 1, 2014 and prior to January 1, 2016) or 2.25% (for taxable years beginning on or after January 1, 2016) of the taxpayer's eligible qualified production activities income for the taxable year.
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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 adding | 5 | | Section 224 as follows: | 6 | | (35 ILCS 5/224 new) | 7 | | Sec. 224. Agriculture credit. | 8 | | (a) Each taxpayer who owns or rents and uses real property | 9 | | for agricultural purposes is entitled to a credit against the | 10 | | tax imposed by subsections (a) and (b) of Section 201 as | 11 | | provided in this Section. For taxable years beginning on or | 12 | | after January 1, 2014 and prior to January 1, 2016, the credit | 13 | | shall be 1.5% of the taxpayer's eligible qualified production | 14 | | activities income for the taxable year. For taxable years | 15 | | beginning on or after January 1, 2016, the credit shall be | 16 | | 2.25% of the taxpayer's eligible qualified production | 17 | | activities income for the taxable year. | 18 | | (b) As used in this Section: | 19 | | "Direct costs" includes all of the taxpayer's ordinary and | 20 | | necessary expenses paid or incurred during the taxable year in | 21 | | carrying on the trade or business that are deductible under | 22 | | Section 162 of the Internal Revenue Code and identified as | 23 | | direct costs in the taxpayer's managerial or cost accounting |
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| 1 | | records. | 2 | | "Indirect costs" includes all of the taxpayer's ordinary | 3 | | and necessary expenses paid or incurred during the taxable year | 4 | | in carrying on the trade or business that are deductible under | 5 | | Section 162 of the Internal Revenue Code, other than the cost | 6 | | of goods sold and direct costs, and identified as indirect | 7 | | costs in the taxpayer's managerial or cost accounting records. | 8 | | "Production gross receipts" means gross receipts from the | 9 | | lease, rental, license, sale, exchange, or other disposition of | 10 | | qualified production property. | 11 | | "Production gross receipts factor" means a fraction, the | 12 | | numerator of which is production gross receipts and the | 13 | | denominator of which is the taxpayer's base income, as defined | 14 | | under Section 203 of this Act. | 15 | | "Qualified production activities income" means the amount | 16 | | of the taxpayer's production gross receipts for the taxable | 17 | | year that exceeds the sum of the cost of goods sold that are | 18 | | allocable to such receipts, the direct costs that are allocable | 19 | | to such receipts, and the indirect costs multiplied by the | 20 | | production gross receipts factor. "Qualified production | 21 | | activities income" does not include any of the following: | 22 | | (1) Income from film production. | 23 | | (2) Income from producing, transmitting, or | 24 | | distributing electricity, natural gas, or potable water. | 25 | | (3) Income from constructing real property. | 26 | | (4) Income from engineering or architectural services |
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| 1 | | performed with respect to constructing real property. | 2 | | (5) Income from the sale of food and beverages prepared | 3 | | by the taxpayer at a retail establishment. | 4 | | (6) Income from the lease, rental, license, sale, | 5 | | exchange, or other disposition of land. | 6 | | "Qualified production property" means tangible personal | 7 | | property produced, grown, or extracted in whole or in part by | 8 | | the taxpayer on or from agricultural property. | 9 | | (c) This Section is exempt from the provisions of Section | 10 | | 250.
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