Full Text of HB4565 103rd General Assembly
HB4565 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4565 Introduced 1/31/2024, by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: | | | Amends the Illinois Income Tax Act. Creates an income tax credit not to exceed 25% of the eligible costs incurred by the taxpayer during the taxable year in connection with the production of a biobased product. Provides that the Department of Commerce and Economic Opportunity shall award the credits. Provides that the total aggregate amount of credits awarded under those provisions shall not exceed $20,000,000 in any State fiscal year. Effective immediately. |
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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 | | adding Section 241 as follows: | 6 | | (35 ILCS 5/241 new) | 7 | | Sec. 241. Biobased products credit. | 8 | | (a) For taxable years beginning on or after January 1, | 9 | | 2025, each taxpayer who incurs eligible costs during the | 10 | | taxable year in connection with the production of a biobased | 11 | | product may apply to the Department of Commerce and Economic | 12 | | Opportunity for a credit against the taxes imposed by | 13 | | subsections (a) and (b) of Section 201. The credit may not | 14 | | exceed 25% of those eligible costs. Upon satisfactory review, | 15 | | the Department of Commerce and Economic Opportunity shall | 16 | | issue a tax credit certificate to the applicant stating the | 17 | | amount of the tax credit to which the applicant is entitled. | 18 | | The total aggregate amount of credits awarded under this | 19 | | Section shall not exceed $20,000,000 in any State fiscal year. | 20 | | To be eligible for the credit under this Section, the | 21 | | biobased product must be produced in Illinois; however, the | 22 | | raw materials are not required to be sourced from Illinois. | 23 | | (b) A credit under this Section that is awarded to a |
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| 1 | | partner of a partnership or a shareholder of a subchapter S | 2 | | corporation shall be awarded as provided in Section 251. | 3 | | (c) If the amount of the credit exceeds the tax liability | 4 | | for the year, the excess may be carried forward and applied to | 5 | | the tax liability of the 5 taxable years following the excess | 6 | | credit year. The credit shall be applied to the earliest year | 7 | | for which there is a tax liability. If there are credits from | 8 | | more than one tax year that are available to offset a | 9 | | liability, the earlier credit shall be applied first. In no | 10 | | event shall a credit under this Section reduce the taxpayer's | 11 | | liability to less than zero. | 12 | | (d) As used in this Section: | 13 | | "Biobased product" means a commercial or industrial | 14 | | product (other than food or fuel) that is derived from raw | 15 | | materials such as plants and other renewable agricultural, | 16 | | marine, or forestry materials and that meets either of the | 17 | | following criteria: | 18 | | (1) the product is primarily (at least 50%) composed | 19 | | of biological products, including renewable domestic | 20 | | agricultural materials, renewable chemicals, or forestry | 21 | | materials; or | 22 | | (2) the product is an intermediate ingredient or | 23 | | feedstock and 100% of the carbon in the product is from | 24 | | renewable, biological sources verified using ASTM D6866 or | 25 | | equivalent radioisotope testing. | 26 | | "Eligible costs" means: |
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| 1 | | (1) costs associated with studies, surveys, the | 2 | | development of plans and specifications, implementation, | 3 | | and program administration, including, but not limited to, | 4 | | professional services costs, architectural costs, | 5 | | engineering costs, legal costs, financial services costs, | 6 | | and planning and administrative costs; | 7 | | (2) marketing costs; | 8 | | (3) property assembly costs, including, but not | 9 | | limited to, costs associated with the acquisition of land | 10 | | and other real or personal property or rights or interests | 11 | | in property, demolition of buildings, and site | 12 | | preparation; | 13 | | (4) costs of rehabilitation, reconstruction, repair, | 14 | | or remodeling of existing buildings; | 15 | | (5) costs of construction of new buildings; | 16 | | (6) costs of construction of public works or | 17 | | improvements related to business development, including, | 18 | | but not limited to, streets, sidewalks, water service, and | 19 | | sanitary and storm sewer service; | 20 | | (7) costs of eliminating or removing contaminants and | 21 | | other impediments; including, but not limited to, site | 22 | | improvements, the installation of parking lots and other | 23 | | concrete or asphalt barriers, and the clearing or grading | 24 | | of land; | 25 | | (8) costs associated with job training and retraining; | 26 | | (9) up to 30% of the financing costs; and |
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| 1 | | (10) costs of capital equipment purchases. | 2 | | (e) The Department of Commerce and Economic Opportunity | 3 | | shall adopt rules to implement this Section. | 4 | | (f) This Section is exempt from the provisions of Section | 5 | | 250. | 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law. |
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