Bill Text: IL HB3089 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2023, a taxpayer shall be allowed a credit in an amount equal to 50% of the cost of any qualified electric bicycle placed in service by the taxpayer during the taxable year. Provides that the total credit allowed to a taxpayer may not exceed $1,000 for all taxable years. Provides that, to claim the credit, the taxpayer must apply to the Department of Revenue for a certificate of credit in the form and manner required by the Department by rule. Provides that no later than 3 years after the effective date of the amendatory Act, the Department shall report to the Governor and to the General Assembly the number of tax credit certificates awarded and the aggregate dollar amount of the tax credit certificates allowed. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB3089 Detail]

Download: Illinois-2023-HB3089-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3089 Introduced , by Rep. Abdelnasser Rashid SYNOPSIS AS INTRODUCED:
35 ILCS 5/240 new
Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2023, a taxpayer shall be allowed a credit in an amount equal to 50% of the cost of any qualified electric bicycle placed in service by the taxpayer during the taxable year. Provides that the total credit allowed to a taxpayer may not exceed $1,000 for all taxable years. Provides that, to claim the credit, the taxpayer must apply to the Department of Revenue for a certificate of credit in the form and manner required by the Department by rule. Provides that no later than 3 years after the effective date of the amendatory Act, the Department shall report to the Governor and to the General Assembly the number of tax credit certificates awarded and the aggregate dollar amount of the tax credit certificates allowed. Effective immediately.
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A BILL FOR
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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 240 as follows:
(35 ILCS 5/240 new)
Sec. 240. Electric bicycle credit.
(a) For taxable years beginning on or after January 1,
2023, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of Section 201 in an amount
equal to 50% of the cost of any qualified electric bicycle
placed in service by the taxpayer during the taxable year. The
total credit allowed to a taxpayer may not exceed $1,000 for
all taxable years. To claim the credit, the taxpayer must
apply to the Department of Revenue for a certificate of credit
in the form and manner required by the Department of Revenue by
rule. If granted, the taxpayer shall attach a copy of the
certificate of credit to his or her Illinois income tax return
for the taxable year.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the

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5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(c) As used in this Section, "qualified electric bicycle"
means a 2-wheeled or 3-wheeled vehicle that:
(1) is a class 1 low-speed electric bicycle, a class 2
low-speed electric bicycle, or a class 3 low-speed
electric bicycle, as those terms are defined in Section
1-140.10 of the Illinois Vehicle Code;
(2) the original use of which commences with the
taxpayer;
(3) is acquired for use by the taxpayer in the United
States and not for lease or resale; and
(4) is not property of a character subject to an
allowance for depreciation or amortization in the hands of
the taxpayer.
"Qualified electric bicycle" does not include any vehicle if
the aggregate amount paid for the acquisition of the vehicle
exceeds $8,000.
(d) No later than 3 years after the effective date of this
amendatory Act of the 103rd General Assembly, the Department
of Revenue shall report to the Governor and to the General
Assembly the number of tax credit certificates awarded under
this Section and the aggregate dollar amount of the tax credit

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