SB3212eng 97TH GENERAL ASSEMBLY

SB3212 Engrossed LRB097 18868 HLH 64106 b

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 223 as follows:

(35 ILCS 5/223 new)

Sec. 223. Brownfield remediation tax credit.

(a) For taxable years beginning on or after January 1, 2012, qualified taxpayers that undertake one or more eligible projects during the taxable year may apply with the Department to obtain a tax credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act. The credit may not exceed 100% of the eligible project costs incurred by the taxpayer during the taxable year. The taxpayer shall be eligible to claim 75% of the amount of the credit awarded beginning in the taxable year in which the application is approved. The taxpayer may claim the remaining 25% of the credits awarded upon receipt of a "No Further Remediation" determination from the Illinois Environmental Protection Agency. The Department shall distribute the tax credits equitably throughout all geographic regions of the State. The taxpayer may sell, transfer, or assign credits awarded under this Section. The Department may, in its discretion, withhold the remaining 25% of the credits pending creation of the proposed jobs.

(b) The tax credit may not reduce the taxpayer's liability to less than zero. If the amount of the tax credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit must be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, then the earlier credit must be applied first.

(c) The Department shall not approve applications for credits under this Act which, in the aggregate for each fiscal year, exceed $50,000,000. However, if, in any fiscal year, the total aggregate amount of the credits awarded does not exceed $50,000,000, then the $50,000,000 limitation for the next fiscal year shall be increased by the difference between $50,000,000 and the total amount of aggregate credits awarded in that previous fiscal year.

(d) Tax credits awarded under this Section are limited to the lesser of the least amount necessary for the project to occur or the positive net State economic impact. Consideration shall be given for a project's potential for enhancing the redevelopment of nearby blighted property.

(e) For the purposes of this Section:

"Department" means the Department of Commerce and Economic Opportunity.

"Eligible project" means the remodeling, rehabilitation, modernization, or remediation of abandoned or underutilized property located in the State that is contaminated with hazardous substances, petroleum products, or lead-based paint, or a combination of those factors, at the time the property is purchased by the taxpayer. The project site must be enrolled in the Illinois Environmental Protection Agency's Site Remediation Program, and the project must be approved by the municipality and the county in which the site is located. The taxpayer must demonstrate that the project will create at least 10 new jobs, retain 25 jobs, or a combination thereof.

"Eligible project costs" include, but are not limited to, costs associated with site assessment and investigation; soil, groundwater, and surface water remediation; asbestos and lead-based paint surveys and abatement; documentation and reporting necessary to meet environmental regulations and obtain closure documentation from the State.

"Qualified taxpayer" means a taxpayer that meets all of the following criteria:

(1) the taxpayer is the owner of the site on which the eligible project will occur;

(2) the taxpayer must be current on all taxes imposed by the State at the time of the application and must have no criminal record; and

(3) the taxpayer must not be the party responsible for the contamination.

(f) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.