Senate Sponsors: ROSKAM-SIEBEN-WATSON-HAINE AND JACOBS. House Sponsors: O'BRIEN-FRANKS-MAY-CURRY,JULIE-FLOWERS Short description: INC TAX-ALTERNATE R & D CREDIT Synopsis of Bill as introduced: Amends the Illinois Income Tax Act. Authorizes an alternative method of computation of the research and development credit based on the federal alternative credit under the Internal Revenue Code. Extends the research and development credit to include costs incurred through December 31, 2009 (now, 2004). SENATE AMENDMENT NO. 1. Provides that for purposes of the alternative incremental credit, "base amount", "basic research payment", and "qualified research expense" mean the same as defined for the federal credit for increasing research activities under the Internal Revenue Code, except that for the alternative incremental credit such amounts are for activities conducted within the State of Illinois. HOUSE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 5/201 Adds reference to: 15 ILCS 505/16.5 35 ILCS 5/203 from Ch. 120, par. 2-203 Deletes everything. Amends the Illinois Income Tax Act. Removes a provision that requires a taxpayer to add to federal adjusted gross income, to arrive at base income for Illinois income tax purposes, distributions from a qualified tuition program under Section 529 of the Internal Revenue Code other than distributions from the Bright Start or College Illinois! programs to the extent those distributions were excluded from income in arriving at federal adjusted gross income. Amends the State Treasurer Act and further amends the Illinois Income Tax Act to allow an income tax deduction for moneys contributed in the taxable year to the Bright Start program, the College Illinois! program, or to any other qualified tuition program under Section 529 of the Internal Revenue Code (now, deduction limited to Bright Start contributions). Effective immediately. PENSION IMPACT NOTE, Ham 1 (Illinois Pension Laws Commission) SB 729, as amended by House Amendment 1, would not increase the accrued liabilities or annual costs of any Illinois public pension fund or retirement system. HOUSING AFFORDABILITY IMPACT NOTE, Ham 1 (Illinois Housing Development Authority) There will be no fiscal effect on the cost of constructing, purchasing, owning, or selling a single-family residence. STATE DEBT IMPACT NOTE, Ham 1 (Illinois Economic and Fiscal Commission) SB 729, as amended by House Amendment 1, would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness. JUDICIAL NOTE, Ham 1 (Administrative Office of the Ill. Courts) Senate Bill 729 would neither increase nor decrease the number of judges needed in the State. STATES MANDATES ACT, Ham 1 (Illinois Department of Commerce and Community Affairs) Senate Bill 729 does not meet the definition of a State mandate under the State Mandates Act. HOME RULE IMPACT NOTE, Ham 1 (Illinois Department of Commerce and Community Affairs) Senate Bill 729 does not relate to the powers and functions of home rule, nor does it pre-empt home rule authority. HOME RULE IMPACT NOTE, Ham 1 (Illinois Department of Commerce and Community Affairs) SB-729 (HA #1) pertains to 1) income received by individual taxpayers from distributions to qualified tuition programs, and 2) income tax deductions for moneys contributed to such programs. The legislation relates only to a State-imposed tax, and not to a tax imposed by a local government. Therefore, in the opinion of DCCA, SB-729 (HA #1) does not relate to the powers and functions of home rule, nor does it pre-empt home rule authority. Last action on Bill: SESSION SINE DIE Last action date: JAN-07-2003 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 1 END OF INQUIRY Full Text Bill Status