Bill Text: IL HB3361 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that the Department of Commerce and Economic Opportunity may designate investment zones. Provides that an area is eligible for designation as an investment zone if the median household income is less than 125% of the federal poverty level. Provides that the corporate authorities of the municipality in which a prospective investment zone is located may apply with the Department of Commerce and Economic Opportunity to have the area designated as an investment zone. Provides for an income tax credit for site remediation in an investment zone. Provides that the credit for wages paid to ex-felons shall be equal to 25% (currently, 5%) of those wages. Provides that the total credit for each ex-offender may not exceed $2,500 (currently, $1,500). Requires qualified ex-offenders to complete certain job training programs. Amends the Retailers' Occupation Tax Act. Provides for a building materials exemption for investment zones.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB3361 Detail]
Download: Illinois-2017-HB3361-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||||||||
5 | changing Sections 201 and 216 as follows:
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6 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||||||||||||||||||||||||||
7 | Sec. 201. Tax Imposed. | ||||||||||||||||||||||||||||||
8 | (a) In general. A tax measured by net income is hereby | ||||||||||||||||||||||||||||||
9 | imposed on every
individual, corporation, trust and estate for | ||||||||||||||||||||||||||||||
10 | each taxable year ending
after July 31, 1969 on the privilege | ||||||||||||||||||||||||||||||
11 | of earning or receiving income in or
as a resident of this | ||||||||||||||||||||||||||||||
12 | State. Such tax shall be in addition to all other
occupation or | ||||||||||||||||||||||||||||||
13 | privilege taxes imposed by this State or by any municipal
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14 | corporation or political subdivision thereof. | ||||||||||||||||||||||||||||||
15 | (b) Rates. The tax imposed by subsection (a) of this | ||||||||||||||||||||||||||||||
16 | Section shall be
determined as follows, except as adjusted by | ||||||||||||||||||||||||||||||
17 | subsection (d-1): | ||||||||||||||||||||||||||||||
18 | (1) In the case of an individual, trust or estate, for | ||||||||||||||||||||||||||||||
19 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||||||||||||||||||||||||||
20 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||||||||||||||||||||||||||
21 | year. | ||||||||||||||||||||||||||||||
22 | (2) In the case of an individual, trust or estate, for | ||||||||||||||||||||||||||||||
23 | taxable years
beginning prior to July 1, 1989 and ending |
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1 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
2 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
3 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
4 | 3% of the
taxpayer's net income for the period after June | ||||||
5 | 30, 1989, as calculated
under Section 202.3. | ||||||
6 | (3) In the case of an individual, trust or estate, for | ||||||
7 | taxable years
beginning after June 30, 1989, and ending | ||||||
8 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
9 | taxpayer's net
income for the taxable year. | ||||||
10 | (4) In the case of an individual, trust, or estate, for | ||||||
11 | taxable years beginning prior to January 1, 2011, and | ||||||
12 | ending after December 31, 2010, an amount equal to the sum | ||||||
13 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
14 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
15 | (ii) 5% of the taxpayer's net income for the period after | ||||||
16 | December 31, 2010, as calculated under Section 202.5. | ||||||
17 | (5) In the case of an individual, trust, or estate, for | ||||||
18 | taxable years beginning on or after January 1, 2011, and | ||||||
19 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
20 | the taxpayer's net income for the taxable year. | ||||||
21 | (5.1) In the case of an individual, trust, or estate, | ||||||
22 | for taxable years beginning prior to January 1, 2015, and | ||||||
23 | ending after December 31, 2014, an amount equal to the sum | ||||||
24 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
25 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
26 | (ii) 3.75% of the taxpayer's net income for the period |
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1 | after December 31, 2014, as calculated under Section 202.5. | ||||||
2 | (5.2) In the case of an individual, trust, or estate, | ||||||
3 | for taxable years beginning on or after January 1, 2015, | ||||||
4 | and ending prior to January 1, 2025, an amount equal to | ||||||
5 | 3.75% of the taxpayer's net income for the taxable year. | ||||||
6 | (5.3) In the case of an individual, trust, or estate, | ||||||
7 | for taxable years beginning prior to January 1, 2025, and | ||||||
8 | ending after December 31, 2024, an amount equal to the sum | ||||||
9 | of (i) 3.75% of the taxpayer's net income for the period | ||||||
10 | prior to January 1, 2025, as calculated under Section | ||||||
11 | 202.5, and (ii) 3.25% of the taxpayer's net income for the | ||||||
12 | period after December 31, 2024, as calculated under Section | ||||||
13 | 202.5. | ||||||
14 | (5.4) In the case of an individual, trust, or estate, | ||||||
15 | for taxable years beginning on or after January 1, 2025, an | ||||||
16 | amount equal to 3.25% of the taxpayer's net income for the | ||||||
17 | taxable year. | ||||||
18 | (6) In the case of a corporation, for taxable years
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19 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
20 | taxpayer's net income for the taxable year. | ||||||
21 | (7) In the case of a corporation, for taxable years | ||||||
22 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
23 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
24 | taxpayer's net income for the period prior to July 1, 1989,
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25 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
26 | taxpayer's net
income for the period after June 30, 1989, |
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1 | as calculated under Section
202.3. | ||||||
2 | (8) In the case of a corporation, for taxable years | ||||||
3 | beginning after
June 30, 1989, and ending prior to January | ||||||
4 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
5 | income for the
taxable year. | ||||||
6 | (9) In the case of a corporation, for taxable years | ||||||
7 | beginning prior to January 1, 2011, and ending after | ||||||
8 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
9 | of the taxpayer's net income for the period prior to | ||||||
10 | January 1, 2011, as calculated under Section 202.5, and | ||||||
11 | (ii) 7% of the taxpayer's net income for the period after | ||||||
12 | December 31, 2010, as calculated under Section 202.5. | ||||||
13 | (10) In the case of a corporation, for taxable years | ||||||
14 | beginning on or after January 1, 2011, and ending prior to | ||||||
15 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
16 | net income for the taxable year. | ||||||
17 | (11) In the case of a corporation, for taxable years | ||||||
18 | beginning prior to January 1, 2015, and ending after | ||||||
19 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
20 | the taxpayer's net income for the period prior to January | ||||||
21 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
22 | of the taxpayer's net income for the period after December | ||||||
23 | 31, 2014, as calculated under Section 202.5. | ||||||
24 | (12) In the case of a corporation, for taxable years | ||||||
25 | beginning on or after January 1, 2015, and ending prior to | ||||||
26 | January 1, 2025, an amount equal to 5.25% of the taxpayer's |
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1 | net income for the taxable year. | ||||||
2 | (13) In the case of a corporation, for taxable years | ||||||
3 | beginning prior to January 1, 2025, and ending after | ||||||
4 | December 31, 2024, an amount equal to the sum of (i) 5.25% | ||||||
5 | of the taxpayer's net income for the period prior to | ||||||
6 | January 1, 2025, as calculated under Section 202.5, and | ||||||
7 | (ii) 4.8% of the taxpayer's net income for the period after | ||||||
8 | December 31, 2024, as calculated under Section 202.5. | ||||||
9 | (14) In the case of a corporation, for taxable years | ||||||
10 | beginning on or after January 1, 2025, an amount equal to | ||||||
11 | 4.8% of the taxpayer's net income for the taxable year. | ||||||
12 | The rates under this subsection (b) are subject to the | ||||||
13 | provisions of Section 201.5. | ||||||
14 | (c) Personal Property Tax Replacement Income Tax.
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15 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
16 | income
tax, there is also hereby imposed the Personal Property | ||||||
17 | Tax Replacement
Income Tax measured by net income on every | ||||||
18 | corporation (including Subchapter
S corporations), partnership | ||||||
19 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
20 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
21 | income in or as a resident of this State. The Personal Property
| ||||||
22 | Tax Replacement Income Tax shall be in addition to the income | ||||||
23 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
24 | addition to all other
occupation or privilege taxes imposed by | ||||||
25 | this State or by any municipal
corporation or political | ||||||
26 | subdivision thereof. |
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1 | (d) Additional Personal Property Tax Replacement Income | ||||||
2 | Tax Rates.
The personal property tax replacement income tax | ||||||
3 | imposed by this subsection
and subsection (c) of this Section | ||||||
4 | in the case of a corporation, other
than a Subchapter S | ||||||
5 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
6 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
7 | income for the taxable year, except that
beginning on January | ||||||
8 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
9 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
10 | partnership, trust or a Subchapter S corporation shall be an | ||||||
11 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
12 | for the taxable year. | ||||||
13 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
14 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
15 | Illinois Insurance Code,
whose state or country of domicile | ||||||
16 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
17 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
18 | are 50% or more of its total insurance
premiums as determined | ||||||
19 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
20 | that for purposes of this determination premiums from | ||||||
21 | reinsurance do
not include premiums from inter-affiliate | ||||||
22 | reinsurance arrangements),
beginning with taxable years ending | ||||||
23 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
24 | imposed by subsections (b) and (d) shall be reduced (but not
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25 | increased) to the rate at which the total amount of tax imposed | ||||||
26 | under this Act,
net of all credits allowed under this Act, |
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1 | shall equal (i) the total amount of
tax that would be imposed | ||||||
2 | on the foreign insurer's net income allocable to
Illinois for | ||||||
3 | the taxable year by such foreign insurer's state or country of
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4 | domicile if that net income were subject to all income taxes | ||||||
5 | and taxes
measured by net income imposed by such foreign | ||||||
6 | insurer's state or country of
domicile, net of all credits | ||||||
7 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
8 | income by the foreign insurer's state of domicile.
For the | ||||||
9 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
10 | a
mutual insurer under common management. | ||||||
11 | (1) For the purposes of subsection (d-1), in no event | ||||||
12 | shall the sum of the
rates of tax imposed by subsections | ||||||
13 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
14 | (A) the total amount of tax imposed on such foreign | ||||||
15 | insurer under
this Act for a taxable year, net of all | ||||||
16 | credits allowed under this Act, plus | ||||||
17 | (B) the privilege tax imposed by Section 409 of the | ||||||
18 | Illinois Insurance
Code, the fire insurance company | ||||||
19 | tax imposed by Section 12 of the Fire
Investigation | ||||||
20 | Act, and the fire department taxes imposed under | ||||||
21 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
22 | equals 1.25% for taxable years ending prior to December 31, | ||||||
23 | 2003, or
1.75% for taxable years ending on or after | ||||||
24 | December 31, 2003, of the net
taxable premiums written for | ||||||
25 | the taxable year,
as described by subsection (1) of Section | ||||||
26 | 409 of the Illinois Insurance Code.
This paragraph will in |
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1 | no event increase the rates imposed under subsections
(b) | ||||||
2 | and (d). | ||||||
3 | (2) Any reduction in the rates of tax imposed by this | ||||||
4 | subsection shall be
applied first against the rates imposed | ||||||
5 | by subsection (b) and only after the
tax imposed by | ||||||
6 | subsection (a) net of all credits allowed under this | ||||||
7 | Section
other than the credit allowed under subsection (i) | ||||||
8 | has been reduced to zero,
against the rates imposed by | ||||||
9 | subsection (d). | ||||||
10 | This subsection (d-1) is exempt from the provisions of | ||||||
11 | Section 250. | ||||||
12 | (e) Investment credit. A taxpayer shall be allowed a credit
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13 | against the Personal Property Tax Replacement Income Tax for
| ||||||
14 | investment in qualified property. | ||||||
15 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
16 | of
the basis of qualified property placed in service during | ||||||
17 | the taxable year,
provided such property is placed in | ||||||
18 | service on or after
July 1, 1984. There shall be allowed an | ||||||
19 | additional credit equal
to .5% of the basis of qualified | ||||||
20 | property placed in service during the
taxable year, | ||||||
21 | provided such property is placed in service on or
after | ||||||
22 | July 1, 1986, and the taxpayer's base employment
within | ||||||
23 | Illinois has increased by 1% or more over the preceding | ||||||
24 | year as
determined by the taxpayer's employment records | ||||||
25 | filed with the
Illinois Department of Employment Security. | ||||||
26 | Taxpayers who are new to
Illinois shall be deemed to have |
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1 | met the 1% growth in base employment for
the first year in | ||||||
2 | which they file employment records with the Illinois
| ||||||
3 | Department of Employment Security. The provisions added to | ||||||
4 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
5 | Act 87-895) shall be
construed as declaratory of existing | ||||||
6 | law and not as a new enactment. If,
in any year, the | ||||||
7 | increase in base employment within Illinois over the
| ||||||
8 | preceding year is less than 1%, the additional credit shall | ||||||
9 | be limited to that
percentage times a fraction, the | ||||||
10 | numerator of which is .5% and the denominator
of which is | ||||||
11 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
12 | not be
allowed to the extent that it would reduce a | ||||||
13 | taxpayer's liability in any tax
year below zero, nor may | ||||||
14 | any credit for qualified property be allowed for any
year | ||||||
15 | other than the year in which the property was placed in | ||||||
16 | service in
Illinois. For tax years ending on or after | ||||||
17 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
18 | credit shall be allowed for the tax year in
which the | ||||||
19 | property is placed in service, or, if the amount of the | ||||||
20 | credit
exceeds the tax liability for that year, whether it | ||||||
21 | exceeds the original
liability or the liability as later | ||||||
22 | amended, such excess may be carried
forward and applied to | ||||||
23 | the tax liability of the 5 taxable years following
the | ||||||
24 | excess credit years if the taxpayer (i) makes investments | ||||||
25 | which cause
the creation of a minimum of 2,000 full-time | ||||||
26 | equivalent jobs in Illinois,
(ii) is located in an |
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1 | enterprise zone established pursuant to the Illinois
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2 | Enterprise Zone Act and (iii) is certified by the | ||||||
3 | Department of Commerce
and Community Affairs (now | ||||||
4 | Department of Commerce and Economic Opportunity) as | ||||||
5 | complying with the requirements specified in
clause (i) and | ||||||
6 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
7 | Community Affairs (now Department of Commerce and Economic | ||||||
8 | Opportunity) shall notify the Department of Revenue of all | ||||||
9 | such
certifications immediately. For tax years ending | ||||||
10 | after December 31, 1988,
the credit shall be allowed for | ||||||
11 | the tax year in which the property is
placed in service, | ||||||
12 | or, if the amount of the credit exceeds the tax
liability | ||||||
13 | for that year, whether it exceeds the original liability or | ||||||
14 | the
liability as later amended, such excess may be carried | ||||||
15 | forward and applied
to the tax liability of the 5 taxable | ||||||
16 | years following the excess credit
years. The credit shall | ||||||
17 | be applied to the earliest year for which there is
a | ||||||
18 | liability. If there is credit from more than one tax year | ||||||
19 | that is
available to offset a liability, earlier credit | ||||||
20 | shall be applied first. | ||||||
21 | (2) The term "qualified property" means property | ||||||
22 | which: | ||||||
23 | (A) is tangible, whether new or used, including | ||||||
24 | buildings and structural
components of buildings and | ||||||
25 | signs that are real property, but not including
land or | ||||||
26 | improvements to real property that are not a structural |
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1 | component of a
building such as landscaping, sewer | ||||||
2 | lines, local access roads, fencing, parking
lots, and | ||||||
3 | other appurtenances; | ||||||
4 | (B) is depreciable pursuant to Section 167 of the | ||||||
5 | Internal Revenue Code,
except that "3-year property" | ||||||
6 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
7 | eligible for the credit provided by this subsection | ||||||
8 | (e); | ||||||
9 | (C) is acquired by purchase as defined in Section | ||||||
10 | 179(d) of
the Internal Revenue Code; | ||||||
11 | (D) is used in Illinois by a taxpayer who is | ||||||
12 | primarily engaged in
manufacturing, or in mining coal | ||||||
13 | or fluorite, or in retailing, or was placed in service | ||||||
14 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
15 | Zone established pursuant to the River Edge | ||||||
16 | Redevelopment Zone Act; and | ||||||
17 | (E) has not previously been used in Illinois in | ||||||
18 | such a manner and by
such a person as would qualify for | ||||||
19 | the credit provided by this subsection
(e) or | ||||||
20 | subsection (f). | ||||||
21 | (3) For purposes of this subsection (e), | ||||||
22 | "manufacturing" means
the material staging and production | ||||||
23 | of tangible personal property by
procedures commonly | ||||||
24 | regarded as manufacturing, processing, fabrication, or
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25 | assembling which changes some existing material into new | ||||||
26 | shapes, new
qualities, or new combinations. For purposes of |
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1 | this subsection
(e) the term "mining" shall have the same | ||||||
2 | meaning as the term "mining" in
Section 613(c) of the | ||||||
3 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
4 | the term "retailing" means the sale of tangible personal | ||||||
5 | property for use or consumption and not for resale, or
| ||||||
6 | services rendered in conjunction with the sale of tangible | ||||||
7 | personal property for use or consumption and not for | ||||||
8 | resale. For purposes of this subsection (e), "tangible | ||||||
9 | personal property" has the same meaning as when that term | ||||||
10 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
11 | taxable years ending after December 31, 2008, does not | ||||||
12 | include the generation, transmission, or distribution of | ||||||
13 | electricity. | ||||||
14 | (4) The basis of qualified property shall be the basis
| ||||||
15 | used to compute the depreciation deduction for federal | ||||||
16 | income tax purposes. | ||||||
17 | (5) If the basis of the property for federal income tax | ||||||
18 | depreciation
purposes is increased after it has been placed | ||||||
19 | in service in Illinois by
the taxpayer, the amount of such | ||||||
20 | increase shall be deemed property placed
in service on the | ||||||
21 | date of such increase in basis. | ||||||
22 | (6) The term "placed in service" shall have the same
| ||||||
23 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
24 | (7) If during any taxable year, any property ceases to
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25 | be qualified property in the hands of the taxpayer within | ||||||
26 | 48 months after
being placed in service, or the situs of |
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1 | any qualified property is
moved outside Illinois within 48 | ||||||
2 | months after being placed in service, the
Personal Property | ||||||
3 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
4 | increased. Such increase shall be determined by (i) | ||||||
5 | recomputing the
investment credit which would have been | ||||||
6 | allowed for the year in which
credit for such property was | ||||||
7 | originally allowed by eliminating such
property from such | ||||||
8 | computation and, (ii) subtracting such recomputed credit
| ||||||
9 | from the amount of credit previously allowed. For the | ||||||
10 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
11 | qualified property resulting
from a redetermination of the | ||||||
12 | purchase price shall be deemed a disposition
of qualified | ||||||
13 | property to the extent of such reduction. | ||||||
14 | (8) Unless the investment credit is extended by law, | ||||||
15 | the
basis of qualified property shall not include costs | ||||||
16 | incurred after
December 31, 2018, except for costs incurred | ||||||
17 | pursuant to a binding
contract entered into on or before | ||||||
18 | December 31, 2018. | ||||||
19 | (9) Each taxable year ending before December 31, 2000, | ||||||
20 | a partnership may
elect to pass through to its
partners the | ||||||
21 | credits to which the partnership is entitled under this | ||||||
22 | subsection
(e) for the taxable year. A partner may use the | ||||||
23 | credit allocated to him or her
under this paragraph only | ||||||
24 | against the tax imposed in subsections (c) and (d) of
this | ||||||
25 | Section. If the partnership makes that election, those | ||||||
26 | credits shall be
allocated among the partners in the |
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1 | partnership in accordance with the rules
set forth in | ||||||
2 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
3 | promulgated under that Section, and the allocated amount of | ||||||
4 | the credits shall
be allowed to the partners for that | ||||||
5 | taxable year. The partnership shall make
this election on | ||||||
6 | its Personal Property Tax Replacement Income Tax return for
| ||||||
7 | that taxable year. The election to pass through the credits | ||||||
8 | shall be
irrevocable. | ||||||
9 | For taxable years ending on or after December 31, 2000, | ||||||
10 | a
partner that qualifies its
partnership for a subtraction | ||||||
11 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
12 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
13 | S
corporation for a subtraction under subparagraph (S) of | ||||||
14 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
15 | allowed a credit under this subsection
(e) equal to its | ||||||
16 | share of the credit earned under this subsection (e) during
| ||||||
17 | the taxable year by the partnership or Subchapter S | ||||||
18 | corporation, determined in
accordance with the | ||||||
19 | determination of income and distributive share of
income | ||||||
20 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
21 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
22 | of Section 250. | ||||||
23 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
24 | Redevelopment Zone. | ||||||
25 | (1) A taxpayer shall be allowed a credit against the | ||||||
26 | tax imposed
by subsections (a) and (b) of this Section for |
| |||||||
| |||||||
1 | investment in qualified
property which is placed in service | ||||||
2 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
3 | Enterprise Zone Act or, for property placed in service on | ||||||
4 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
5 | established pursuant to the River Edge Redevelopment Zone | ||||||
6 | Act. For partners, shareholders
of Subchapter S | ||||||
7 | corporations, and owners of limited liability companies,
| ||||||
8 | if the liability company is treated as a partnership for | ||||||
9 | purposes of
federal and State income taxation, there shall | ||||||
10 | be allowed a credit under
this subsection (f) to be | ||||||
11 | determined in accordance with the determination
of income | ||||||
12 | and distributive share of income under Sections 702 and 704 | ||||||
13 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
14 | shall be .5% of the
basis for such property. The credit | ||||||
15 | shall be available only in the taxable
year in which the | ||||||
16 | property is placed in service in the Enterprise Zone or | ||||||
17 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
18 | the extent that it would reduce a taxpayer's
liability for | ||||||
19 | the tax imposed by subsections (a) and (b) of this Section | ||||||
20 | to
below zero. For tax years ending on or after December | ||||||
21 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
22 | which the property is placed in
service, or, if the amount | ||||||
23 | of the credit exceeds the tax liability for that
year, | ||||||
24 | whether it exceeds the original liability or the liability | ||||||
25 | as later
amended, such excess may be carried forward and | ||||||
26 | applied to the tax
liability of the 5 taxable years |
| |||||||
| |||||||
1 | following the excess credit year.
The credit shall be | ||||||
2 | applied to the earliest year for which there is a
| ||||||
3 | liability. If there is credit from more than one tax year | ||||||
4 | that is available
to offset a liability, the credit | ||||||
5 | accruing first in time shall be applied
first. | ||||||
6 | (2) The term qualified property means property which: | ||||||
7 | (A) is tangible, whether new or used, including | ||||||
8 | buildings and
structural components of buildings; | ||||||
9 | (B) is depreciable pursuant to Section 167 of the | ||||||
10 | Internal Revenue
Code, except that "3-year property" | ||||||
11 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
12 | eligible for the credit provided by this subsection | ||||||
13 | (f); | ||||||
14 | (C) is acquired by purchase as defined in Section | ||||||
15 | 179(d) of
the Internal Revenue Code; | ||||||
16 | (D) is used in the Enterprise Zone or River Edge | ||||||
17 | Redevelopment Zone by the taxpayer; and | ||||||
18 | (E) has not been previously used in Illinois in | ||||||
19 | such a manner and by
such a person as would qualify for | ||||||
20 | the credit provided by this subsection
(f) or | ||||||
21 | subsection (e). | ||||||
22 | (3) The basis of qualified property shall be the basis | ||||||
23 | used to compute
the depreciation deduction for federal | ||||||
24 | income tax purposes. | ||||||
25 | (4) If the basis of the property for federal income tax | ||||||
26 | depreciation
purposes is increased after it has been placed |
| |||||||
| |||||||
1 | in service in the Enterprise
Zone or River Edge | ||||||
2 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
3 | increase shall be deemed property
placed in service on the | ||||||
4 | date of such increase in basis. | ||||||
5 | (5) The term "placed in service" shall have the same | ||||||
6 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
7 | (6) If during any taxable year, any property ceases to | ||||||
8 | be qualified
property in the hands of the taxpayer within | ||||||
9 | 48 months after being placed
in service, or the situs of | ||||||
10 | any qualified property is moved outside the
Enterprise Zone | ||||||
11 | or River Edge Redevelopment Zone within 48 months after | ||||||
12 | being placed in service, the tax
imposed under subsections | ||||||
13 | (a) and (b) of this Section for such taxable year
shall be | ||||||
14 | increased. Such increase shall be determined by (i) | ||||||
15 | recomputing
the investment credit which would have been | ||||||
16 | allowed for the year in which
credit for such property was | ||||||
17 | originally allowed by eliminating such
property from such | ||||||
18 | computation, and (ii) subtracting such recomputed credit
| ||||||
19 | from the amount of credit previously allowed. For the | ||||||
20 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
21 | qualified property resulting
from a redetermination of the | ||||||
22 | purchase price shall be deemed a disposition
of qualified | ||||||
23 | property to the extent of such reduction. | ||||||
24 | (7) There shall be allowed an additional credit equal | ||||||
25 | to 0.5% of the basis of qualified property placed in | ||||||
26 | service during the taxable year in a River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone, provided such property is placed in | ||||||
2 | service on or after July 1, 2006, and the taxpayer's base | ||||||
3 | employment within Illinois has increased by 1% or more over | ||||||
4 | the preceding year as determined by the taxpayer's | ||||||
5 | employment records filed with the Illinois Department of | ||||||
6 | Employment Security. Taxpayers who are new to Illinois | ||||||
7 | shall be deemed to have met the 1% growth in base | ||||||
8 | employment for the first year in which they file employment | ||||||
9 | records with the Illinois Department of Employment | ||||||
10 | Security. If, in any year, the increase in base employment | ||||||
11 | within Illinois over the preceding year is less than 1%, | ||||||
12 | the additional credit shall be limited to that percentage | ||||||
13 | times a fraction, the numerator of which is 0.5% and the | ||||||
14 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
15 | (g) (Blank). | ||||||
16 | (h) Investment credit; High Impact Business. | ||||||
17 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
18 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
19 | allowed a credit
against the tax imposed by subsections (a) | ||||||
20 | and (b) of this Section for
investment in qualified
| ||||||
21 | property which is placed in service by a Department of | ||||||
22 | Commerce and Economic Opportunity
designated High Impact | ||||||
23 | Business. The credit shall be .5% of the basis
for such | ||||||
24 | property. The credit shall not be available (i) until the | ||||||
25 | minimum
investments in qualified property set forth in | ||||||
26 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
|
| |||||||
| |||||||
1 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
2 | time authorized in subsection (b-5) of the Illinois
| ||||||
3 | Enterprise Zone Act for entities designated as High Impact | ||||||
4 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
5 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
6 | Act, and shall not be allowed to the extent that it would
| ||||||
7 | reduce a taxpayer's liability for the tax imposed by | ||||||
8 | subsections (a) and (b) of
this Section to below zero. The | ||||||
9 | credit applicable to such investments shall be
taken in the | ||||||
10 | taxable year in which such investments have been completed. | ||||||
11 | The
credit for additional investments beyond the minimum | ||||||
12 | investment by a designated
high impact business authorized | ||||||
13 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
14 | Enterprise Zone Act shall be available only in the taxable | ||||||
15 | year in
which the property is placed in service and shall | ||||||
16 | not be allowed to the extent
that it would reduce a | ||||||
17 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
18 | and (b) of this Section to below zero.
For tax years ending | ||||||
19 | on or after December 31, 1987, the credit shall be
allowed | ||||||
20 | for the tax year in which the property is placed in | ||||||
21 | service, or, if
the amount of the credit exceeds the tax | ||||||
22 | liability for that year, whether
it exceeds the original | ||||||
23 | liability or the liability as later amended, such
excess | ||||||
24 | may be carried forward and applied to the tax liability of | ||||||
25 | the 5
taxable years following the excess credit year. The | ||||||
26 | credit shall be
applied to the earliest year for which |
| |||||||
| |||||||
1 | there is a liability. If there is
credit from more than one | ||||||
2 | tax year that is available to offset a liability,
the | ||||||
3 | credit accruing first in time shall be applied first. | ||||||
4 | Changes made in this subdivision (h)(1) by Public Act | ||||||
5 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
6 | reflect existing law. | ||||||
7 | (2) The term qualified property means property which: | ||||||
8 | (A) is tangible, whether new or used, including | ||||||
9 | buildings and
structural components of buildings; | ||||||
10 | (B) is depreciable pursuant to Section 167 of the | ||||||
11 | Internal Revenue
Code, except that "3-year property" | ||||||
12 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
13 | eligible for the credit provided by this subsection | ||||||
14 | (h); | ||||||
15 | (C) is acquired by purchase as defined in Section | ||||||
16 | 179(d) of the
Internal Revenue Code; and | ||||||
17 | (D) is not eligible for the Enterprise Zone | ||||||
18 | Investment Credit provided
by subsection (f) of this | ||||||
19 | Section. | ||||||
20 | (3) The basis of qualified property shall be the basis | ||||||
21 | used to compute
the depreciation deduction for federal | ||||||
22 | income tax purposes. | ||||||
23 | (4) If the basis of the property for federal income tax | ||||||
24 | depreciation
purposes is increased after it has been placed | ||||||
25 | in service in a federally
designated Foreign Trade Zone or | ||||||
26 | Sub-Zone located in Illinois by the taxpayer,
the amount of |
| |||||||
| |||||||
1 | such increase shall be deemed property placed in service on
| ||||||
2 | the date of such increase in basis. | ||||||
3 | (5) The term "placed in service" shall have the same | ||||||
4 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
5 | (6) If during any taxable year ending on or before | ||||||
6 | December 31, 1996,
any property ceases to be qualified
| ||||||
7 | property in the hands of the taxpayer within 48 months | ||||||
8 | after being placed
in service, or the situs of any | ||||||
9 | qualified property is moved outside
Illinois within 48 | ||||||
10 | months after being placed in service, the tax imposed
under | ||||||
11 | subsections (a) and (b) of this Section for such taxable | ||||||
12 | year shall
be increased. Such increase shall be determined | ||||||
13 | by (i) recomputing the
investment credit which would have | ||||||
14 | been allowed for the year in which
credit for such property | ||||||
15 | was originally allowed by eliminating such
property from | ||||||
16 | such computation, and (ii) subtracting such recomputed | ||||||
17 | credit
from the amount of credit previously allowed. For | ||||||
18 | the purposes of this
paragraph (6), a reduction of the | ||||||
19 | basis of qualified property resulting
from a | ||||||
20 | redetermination of the purchase price shall be deemed a | ||||||
21 | disposition
of qualified property to the extent of such | ||||||
22 | reduction. | ||||||
23 | (7) Beginning with tax years ending after December 31, | ||||||
24 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
25 | subsection (h) and thereby is
granted a tax abatement and | ||||||
26 | the taxpayer relocates its entire facility in
violation of |
| |||||||
| |||||||
1 | the explicit terms and length of the contract under Section
| ||||||
2 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
3 | subsections
(a) and (b) of this Section shall be increased | ||||||
4 | for the taxable year
in which the taxpayer relocated its | ||||||
5 | facility by an amount equal to the
amount of credit | ||||||
6 | received by the taxpayer under this subsection (h). | ||||||
7 | (i) Credit for Personal Property Tax Replacement Income | ||||||
8 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
9 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
10 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
11 | (d) of this Section. This credit shall be computed by | ||||||
12 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
13 | Section by a fraction, the numerator
of which is base income | ||||||
14 | allocable to Illinois and the denominator of which is
Illinois | ||||||
15 | base income, and further multiplying the product by the tax | ||||||
16 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
17 | Any credit earned on or after December 31, 1986 under
this | ||||||
18 | subsection which is unused in the year
the credit is computed | ||||||
19 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
20 | and (b) for that year (whether it exceeds the original
| ||||||
21 | liability or the liability as later amended) may be carried | ||||||
22 | forward and
applied to the tax liability imposed by subsections | ||||||
23 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
24 | year, provided that no credit may
be carried forward to any | ||||||
25 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
26 | applied first to the earliest year for which there is a |
| |||||||
| |||||||
1 | liability. If
there is a credit under this subsection from more | ||||||
2 | than one tax year that is
available to offset a liability the | ||||||
3 | earliest credit arising under this
subsection shall be applied | ||||||
4 | first. | ||||||
5 | If, during any taxable year ending on or after December 31, | ||||||
6 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
7 | Section for which a taxpayer
has claimed a credit under this | ||||||
8 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
9 | shall also be reduced. Such reduction shall be
determined by | ||||||
10 | recomputing the credit to take into account the reduced tax
| ||||||
11 | imposed by subsections (c) and (d). If any portion of the
| ||||||
12 | reduced amount of credit has been carried to a different | ||||||
13 | taxable year, an
amended return shall be filed for such taxable | ||||||
14 | year to reduce the amount of
credit claimed. | ||||||
15 | (j) Training expense credit. Beginning with tax years | ||||||
16 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
17 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
18 | imposed by subsections (a) and (b) under this Section
for all | ||||||
19 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
20 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
21 | of Illinois by a taxpayer, for educational or vocational | ||||||
22 | training in
semi-technical or technical fields or semi-skilled | ||||||
23 | or skilled fields, which
were deducted from gross income in the | ||||||
24 | computation of taxable income. The
credit against the tax | ||||||
25 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
26 | training expenses. For partners, shareholders of subchapter S
|
| |||||||
| |||||||
1 | corporations, and owners of limited liability companies, if the | ||||||
2 | liability
company is treated as a partnership for purposes of | ||||||
3 | federal and State income
taxation, there shall be allowed a | ||||||
4 | credit under this subsection (j) to be
determined in accordance | ||||||
5 | with the determination of income and distributive
share of | ||||||
6 | income under Sections 702 and 704 and subchapter S of the | ||||||
7 | Internal
Revenue Code. | ||||||
8 | Any credit allowed under this subsection which is unused in | ||||||
9 | the year
the credit is earned may be carried forward to each of | ||||||
10 | the 5 taxable
years following the year for which the credit is | ||||||
11 | first computed until it is
used. This credit shall be applied | ||||||
12 | first to the earliest year for which
there is a liability. If | ||||||
13 | there is a credit under this subsection from more
than one tax | ||||||
14 | year that is available to offset a liability the earliest
| ||||||
15 | credit arising under this subsection shall be applied first. No | ||||||
16 | carryforward
credit may be claimed in any tax year ending on or | ||||||
17 | after
December 31, 2003. | ||||||
18 | (k) Research and development credit. For tax years ending | ||||||
19 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
20 | beginning again for tax years ending on or after December 31, | ||||||
21 | 2004, and ending prior to January 1, 2016, a taxpayer shall be
| ||||||
22 | allowed a credit against the tax imposed by subsections (a) and | ||||||
23 | (b) of this
Section for increasing research activities in this | ||||||
24 | State. The credit
allowed against the tax imposed by | ||||||
25 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
26 | qualifying expenditures for increasing research activities
in |
| |||||||
| |||||||
1 | this State. For partners, shareholders of subchapter S | ||||||
2 | corporations, and
owners of limited liability companies, if the | ||||||
3 | liability company is treated as a
partnership for purposes of | ||||||
4 | federal and State income taxation, there shall be
allowed a | ||||||
5 | credit under this subsection to be determined in accordance | ||||||
6 | with the
determination of income and distributive share of | ||||||
7 | income under Sections 702 and
704 and subchapter S of the | ||||||
8 | Internal Revenue Code. | ||||||
9 | For purposes of this subsection, "qualifying expenditures" | ||||||
10 | means the
qualifying expenditures as defined for the federal | ||||||
11 | credit for increasing
research activities which would be | ||||||
12 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
13 | which are conducted in this State, "qualifying
expenditures for | ||||||
14 | increasing research activities in this State" means the
excess | ||||||
15 | of qualifying expenditures for the taxable year in which | ||||||
16 | incurred
over qualifying expenditures for the base period, | ||||||
17 | "qualifying expenditures
for the base period" means the average | ||||||
18 | of the qualifying expenditures for
each year in the base | ||||||
19 | period, and "base period" means the 3 taxable years
immediately | ||||||
20 | preceding the taxable year for which the determination is
being | ||||||
21 | made. | ||||||
22 | Any credit in excess of the tax liability for the taxable | ||||||
23 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
24 | unused credit shown on its final completed return carried over | ||||||
25 | as a credit
against the tax liability for the following 5 | ||||||
26 | taxable years or until it has
been fully used, whichever occurs |
| |||||||
| |||||||
1 | first; provided that no credit earned in a tax year ending | ||||||
2 | prior to December 31, 2003 may be carried forward to any year | ||||||
3 | ending on or after December 31, 2003. | ||||||
4 | If an unused credit is carried forward to a given year from | ||||||
5 | 2 or more
earlier years, that credit arising in the earliest | ||||||
6 | year will be applied
first against the tax liability for the | ||||||
7 | given year. If a tax liability for
the given year still | ||||||
8 | remains, the credit from the next earliest year will
then be | ||||||
9 | applied, and so on, until all credits have been used or no tax
| ||||||
10 | liability for the given year remains. Any remaining unused | ||||||
11 | credit or
credits then will be carried forward to the next | ||||||
12 | following year in which a
tax liability is incurred, except | ||||||
13 | that no credit can be carried forward to
a year which is more | ||||||
14 | than 5 years after the year in which the expense for
which the | ||||||
15 | credit is given was incurred. | ||||||
16 | No inference shall be drawn from this amendatory Act of the | ||||||
17 | 91st General
Assembly in construing this Section for taxable | ||||||
18 | years beginning before January
1, 1999. | ||||||
19 | (l) Environmental Remediation Tax Credit. | ||||||
20 | (i) For tax years ending after December 31, 1997 and on | ||||||
21 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
22 | credit against the tax
imposed by subsections (a) and (b) | ||||||
23 | of this Section for certain amounts paid
for unreimbursed | ||||||
24 | eligible remediation costs, as specified in this | ||||||
25 | subsection.
For purposes of this Section, "unreimbursed | ||||||
26 | eligible remediation costs" means
costs approved by the |
| |||||||
| |||||||
1 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
2 | Section 58.14 of the Environmental Protection Act that were | ||||||
3 | paid in performing
environmental remediation at a site for | ||||||
4 | which a No Further Remediation Letter
was issued by the | ||||||
5 | Agency and recorded under Section 58.10 of the | ||||||
6 | Environmental
Protection Act. The credit must be claimed | ||||||
7 | for the taxable year in which
Agency approval of the | ||||||
8 | eligible remediation costs is granted. The credit is
not | ||||||
9 | available to any taxpayer if the taxpayer or any related | ||||||
10 | party caused or
contributed to, in any material respect, a | ||||||
11 | release of regulated substances on,
in, or under the site | ||||||
12 | that was identified and addressed by the remedial
action | ||||||
13 | pursuant to the Site Remediation Program of the | ||||||
14 | Environmental Protection
Act. After the Pollution Control | ||||||
15 | Board rules are adopted pursuant to the
Illinois | ||||||
16 | Administrative Procedure Act for the administration and | ||||||
17 | enforcement of
Section 58.9 of the Environmental | ||||||
18 | Protection Act, determinations as to credit
availability | ||||||
19 | for purposes of this Section shall be made consistent with | ||||||
20 | those
rules. For purposes of this Section, "taxpayer" | ||||||
21 | includes a person whose tax
attributes the taxpayer has | ||||||
22 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
23 | and "related party" includes the persons disallowed a | ||||||
24 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
25 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
26 | a related taxpayer, as well as any of its
partners. The |
| |||||||
| |||||||
1 | credit allowed against the tax imposed by subsections (a) | ||||||
2 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
3 | remediation costs in
excess of $100,000 per site, except | ||||||
4 | that the $100,000 threshold shall not apply
to any site | ||||||
5 | contained in an enterprise zone as determined by the | ||||||
6 | Department of
Commerce and Community Affairs (now | ||||||
7 | Department of Commerce and Economic Opportunity). The | ||||||
8 | total credit allowed shall not exceed
$40,000 per year with | ||||||
9 | a maximum total of $150,000 per site. For partners and
| ||||||
10 | shareholders of subchapter S corporations, there shall be | ||||||
11 | allowed a credit
under this subsection to be determined in | ||||||
12 | accordance with the determination of
income and | ||||||
13 | distributive share of income under Sections 702 and 704 and
| ||||||
14 | subchapter S of the Internal Revenue Code. | ||||||
15 | (ii) A credit allowed under this subsection that is | ||||||
16 | unused in the year
the credit is earned may be carried | ||||||
17 | forward to each of the 5 taxable years
following the year | ||||||
18 | for which the credit is first earned until it is used.
The | ||||||
19 | term "unused credit" does not include any amounts of | ||||||
20 | unreimbursed eligible
remediation costs in excess of the | ||||||
21 | maximum credit per site authorized under
paragraph (i). | ||||||
22 | This credit shall be applied first to the earliest year
for | ||||||
23 | which there is a liability. If there is a credit under this | ||||||
24 | subsection
from more than one tax year that is available to | ||||||
25 | offset a liability, the
earliest credit arising under this | ||||||
26 | subsection shall be applied first. A
credit allowed under |
| |||||||
| |||||||
1 | this subsection may be sold to a buyer as part of a sale
of | ||||||
2 | all or part of the remediation site for which the credit | ||||||
3 | was granted. The
purchaser of a remediation site and the | ||||||
4 | tax credit shall succeed to the unused
credit and remaining | ||||||
5 | carry-forward period of the seller. To perfect the
| ||||||
6 | transfer, the assignor shall record the transfer in the | ||||||
7 | chain of title for the
site and provide written notice to | ||||||
8 | the Director of the Illinois Department of
Revenue of the | ||||||
9 | assignor's intent to sell the remediation site and the | ||||||
10 | amount of
the tax credit to be transferred as a portion of | ||||||
11 | the sale. In no event may a
credit be transferred to any | ||||||
12 | taxpayer if the taxpayer or a related party would
not be | ||||||
13 | eligible under the provisions of subsection (i). | ||||||
14 | (iii) For purposes of this Section, the term "site" | ||||||
15 | shall have the same
meaning as under Section 58.2 of the | ||||||
16 | Environmental Protection Act. | ||||||
17 | (m) Education expense credit. Beginning with tax years | ||||||
18 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
19 | of one or more qualifying pupils shall be allowed a credit
| ||||||
20 | against the tax imposed by subsections (a) and (b) of this | ||||||
21 | Section for
qualified education expenses incurred on behalf of | ||||||
22 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
23 | qualified education expenses, but in no
event may the total | ||||||
24 | credit under this subsection claimed by a
family that is the
| ||||||
25 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
26 | credit under
this subsection reduce the taxpayer's liability |
| |||||||
| |||||||
1 | under this Act to less than
zero. This subsection is exempt | ||||||
2 | from the provisions of Section 250 of this
Act. | ||||||
3 | For purposes of this subsection: | ||||||
4 | "Qualifying pupils" means individuals who (i) are | ||||||
5 | residents of the State of
Illinois, (ii) are under the age of | ||||||
6 | 21 at the close of the school year for
which a credit is | ||||||
7 | sought, and (iii) during the school year for which a credit
is | ||||||
8 | sought were full-time pupils enrolled in a kindergarten through | ||||||
9 | twelfth
grade education program at any school, as defined in | ||||||
10 | this subsection. | ||||||
11 | "Qualified education expense" means the amount incurred
on | ||||||
12 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
13 | book fees, and
lab fees at the school in which the pupil is | ||||||
14 | enrolled during the regular school
year. | ||||||
15 | "School" means any public or nonpublic elementary or | ||||||
16 | secondary school in
Illinois that is in compliance with Title | ||||||
17 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
18 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
19 | except that nothing shall be construed to require a child to
| ||||||
20 | attend any particular public or nonpublic school to qualify for | ||||||
21 | the credit
under this Section. | ||||||
22 | "Custodian" means, with respect to qualifying pupils, an | ||||||
23 | Illinois resident
who is a parent, the parents, a legal | ||||||
24 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
25 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
26 | credit.
|
| |||||||
| |||||||
1 | (i) For tax years ending on or after December 31, 2006, | ||||||
2 | a taxpayer shall be allowed a credit against the tax | ||||||
3 | imposed by subsections (a) and (b) of this Section for | ||||||
4 | certain amounts paid for unreimbursed eligible remediation | ||||||
5 | costs, as specified in this subsection. For purposes of | ||||||
6 | this Section, "unreimbursed eligible remediation costs" | ||||||
7 | means costs approved by the Illinois Environmental | ||||||
8 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
9 | Environmental Protection Act that were paid in performing | ||||||
10 | environmental remediation at a site within a River Edge | ||||||
11 | Redevelopment Zone for which a No Further Remediation | ||||||
12 | Letter was issued by the Agency and recorded under Section | ||||||
13 | 58.10 of the Environmental Protection Act. The credit must | ||||||
14 | be claimed for the taxable year in which Agency approval of | ||||||
15 | the eligible remediation costs is granted. The credit is | ||||||
16 | not available to any taxpayer if the taxpayer or any | ||||||
17 | related party caused or contributed to, in any material | ||||||
18 | respect, a release of regulated substances on, in, or under | ||||||
19 | the site that was identified and addressed by the remedial | ||||||
20 | action pursuant to the Site Remediation Program of the | ||||||
21 | Environmental Protection Act. Determinations as to credit | ||||||
22 | availability for purposes of this Section shall be made | ||||||
23 | consistent with rules adopted by the Pollution Control | ||||||
24 | Board pursuant to the Illinois Administrative Procedure | ||||||
25 | Act for the administration and enforcement of Section 58.9 | ||||||
26 | of the Environmental Protection Act. For purposes of this |
| |||||||
| |||||||
1 | Section, "taxpayer" includes a person whose tax attributes | ||||||
2 | the taxpayer has succeeded to under Section 381 of the | ||||||
3 | Internal Revenue Code and "related party" includes the | ||||||
4 | persons disallowed a deduction for losses by paragraphs | ||||||
5 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
6 | Code by virtue of being a related taxpayer, as well as any | ||||||
7 | of its partners. The credit allowed against the tax imposed | ||||||
8 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
9 | unreimbursed eligible remediation costs in excess of | ||||||
10 | $100,000 per site. | ||||||
11 | (ii) A credit allowed under this subsection that is | ||||||
12 | unused in the year the credit is earned may be carried | ||||||
13 | forward to each of the 5 taxable years following the year | ||||||
14 | for which the credit is first earned until it is used. This | ||||||
15 | credit shall be applied first to the earliest year for | ||||||
16 | which there is a liability. If there is a credit under this | ||||||
17 | subsection from more than one tax year that is available to | ||||||
18 | offset a liability, the earliest credit arising under this | ||||||
19 | subsection shall be applied first. A credit allowed under | ||||||
20 | this subsection may be sold to a buyer as part of a sale of | ||||||
21 | all or part of the remediation site for which the credit | ||||||
22 | was granted. The purchaser of a remediation site and the | ||||||
23 | tax credit shall succeed to the unused credit and remaining | ||||||
24 | carry-forward period of the seller. To perfect the | ||||||
25 | transfer, the assignor shall record the transfer in the | ||||||
26 | chain of title for the site and provide written notice to |
| |||||||
| |||||||
1 | the Director of the Illinois Department of Revenue of the | ||||||
2 | assignor's intent to sell the remediation site and the | ||||||
3 | amount of the tax credit to be transferred as a portion of | ||||||
4 | the sale. In no event may a credit be transferred to any | ||||||
5 | taxpayer if the taxpayer or a related party would not be | ||||||
6 | eligible under the provisions of subsection (i). | ||||||
7 | (iii) For purposes of this Section, the term "site" | ||||||
8 | shall have the same meaning as under Section 58.2 of the | ||||||
9 | Environmental Protection Act. | ||||||
10 | (n-1) Investment zone site remediation tax credit. | ||||||
11 | (i) For tax years beginning on or after January 1, | ||||||
12 | 2018, a taxpayer shall be allowed a credit against the tax | ||||||
13 | imposed by subsections (a) and (b) of this Section for | ||||||
14 | certain amounts paid for unreimbursed eligible remediation | ||||||
15 | costs, as specified in this subsection. For purposes of | ||||||
16 | this Section, "unreimbursed eligible remediation costs" | ||||||
17 | means costs approved by the Illinois Environmental | ||||||
18 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
19 | Environmental Protection Act that were paid in performing | ||||||
20 | environmental remediation at a site within an investment | ||||||
21 | zone for which a No Further Remediation Letter was issued | ||||||
22 | by the Agency and recorded under Section 58.10 of the | ||||||
23 | Environmental Protection Act. The credit must be claimed | ||||||
24 | for the taxable year in which Agency approval of the | ||||||
25 | eligible remediation costs is granted. The credit is not | ||||||
26 | available to any taxpayer if the taxpayer or any related |
| |||||||
| |||||||
1 | party caused or contributed to, in any material respect, a | ||||||
2 | release of regulated substances on, in, or under the site | ||||||
3 | that was identified and addressed by the remedial action | ||||||
4 | pursuant to the Site Remediation Program of the | ||||||
5 | Environmental Protection Act. Determinations as to credit | ||||||
6 | availability for purposes of this Section shall be made | ||||||
7 | consistent with rules adopted by the Pollution Control | ||||||
8 | Board pursuant to the Illinois Administrative Procedure | ||||||
9 | Act for the administration and enforcement of Section 58.9 | ||||||
10 | of the Environmental Protection Act. For purposes of this | ||||||
11 | Section, "taxpayer" includes a person whose tax attributes | ||||||
12 | the taxpayer has succeeded to under Section 381 of the | ||||||
13 | Internal Revenue Code and "related party" includes the | ||||||
14 | persons disallowed a deduction for losses by paragraphs | ||||||
15 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
16 | Code by virtue of being a related taxpayer, as well as any | ||||||
17 | of its partners. The credit allowed against the tax imposed | ||||||
18 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
19 | unreimbursed eligible remediation costs in excess of | ||||||
20 | $100,000 per site. | ||||||
21 | (ii) A credit allowed under this subsection that is | ||||||
22 | unused in the year the credit is earned may be carried | ||||||
23 | forward to each of the 5 taxable years following the year | ||||||
24 | for which the credit is first earned until it is used. This | ||||||
25 | credit shall be applied first to the earliest year for | ||||||
26 | which there is a liability. If there is a credit under this |
| |||||||
| |||||||
1 | subsection from more than one tax year that is available to | ||||||
2 | offset a liability, the earliest credit arising under this | ||||||
3 | subsection shall be applied first. A credit allowed under | ||||||
4 | this subsection may be sold to a buyer as part of a sale of | ||||||
5 | all or part of the remediation site for which the credit | ||||||
6 | was granted. The purchaser of a remediation site and the | ||||||
7 | tax credit shall succeed to the unused credit and remaining | ||||||
8 | carry-forward period of the seller. To perfect the | ||||||
9 | transfer, the assignor shall record the transfer in the | ||||||
10 | chain of title for the site and provide written notice to | ||||||
11 | the Director of Revenue of the assignor's intent to sell | ||||||
12 | the remediation site and the amount of the tax credit to be | ||||||
13 | transferred as a portion of the sale. In no event may a | ||||||
14 | credit be transferred to any taxpayer if the taxpayer or a | ||||||
15 | related party would not be eligible under the provisions of | ||||||
16 | subsection (i). | ||||||
17 | (iii) For the purposes of this subsection, "investment | ||||||
18 | zone" means an area designated as an investment zone by the | ||||||
19 | Department of Commerce and Economic Opportunity. An area is | ||||||
20 | eligible for designation as an investment zone if the | ||||||
21 | median household income is less than 125% of the federal | ||||||
22 | poverty level. The corporate authorities of the | ||||||
23 | municipality in which a prospective investment zone is | ||||||
24 | located may apply with the Department of Commerce and | ||||||
25 | Economic Opportunity to have the area designated as an | ||||||
26 | investment zone in the form and manner required by the |
| |||||||
| |||||||
1 | Department. | ||||||
2 | (iv) The credit under this subsection (n-1) is exempt | ||||||
3 | from the provisions of Section 250. | ||||||
4 | (o) For each of taxable years during the Compassionate Use | ||||||
5 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
6 | all taxpayers on income arising from the sale or exchange of | ||||||
7 | capital assets, depreciable business property, real property | ||||||
8 | used in the trade or business, and Section 197 intangibles of | ||||||
9 | an organization registrant under the Compassionate Use of | ||||||
10 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
11 | is equal to the amount of federal income tax liability for the | ||||||
12 | taxable year attributable to those sales and exchanges. The | ||||||
13 | surcharge imposed does not apply if: | ||||||
14 | (1) the medical cannabis cultivation center | ||||||
15 | registration, medical cannabis dispensary registration, or | ||||||
16 | the property of a registration is transferred as a result | ||||||
17 | of any of the following: | ||||||
18 | (A) bankruptcy, a receivership, or a debt | ||||||
19 | adjustment initiated by or against the initial | ||||||
20 | registration or the substantial owners of the initial | ||||||
21 | registration; | ||||||
22 | (B) cancellation, revocation, or termination of | ||||||
23 | any registration by the Illinois Department of Public | ||||||
24 | Health; | ||||||
25 | (C) a determination by the Illinois Department of | ||||||
26 | Public Health that transfer of the registration is in |
| |||||||
| |||||||
1 | the best interests of Illinois qualifying patients as | ||||||
2 | defined by the Compassionate Use of Medical Cannabis | ||||||
3 | Pilot Program Act; | ||||||
4 | (D) the death of an owner of the equity interest in | ||||||
5 | a registrant; | ||||||
6 | (E) the acquisition of a controlling interest in | ||||||
7 | the stock or substantially all of the assets of a | ||||||
8 | publicly traded company; | ||||||
9 | (F) a transfer by a parent company to a wholly | ||||||
10 | owned subsidiary; or | ||||||
11 | (G) the transfer or sale to or by one person to | ||||||
12 | another person where both persons were initial owners | ||||||
13 | of the registration when the registration was issued; | ||||||
14 | or | ||||||
15 | (2) the cannabis cultivation center registration, | ||||||
16 | medical cannabis dispensary registration, or the | ||||||
17 | controlling interest in a registrant's property is | ||||||
18 | transferred in a transaction to lineal descendants in which | ||||||
19 | no gain or loss is recognized or as a result of a | ||||||
20 | transaction in accordance with Section 351 of the Internal | ||||||
21 | Revenue Code in which no gain or loss is recognized. | ||||||
22 | (Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, | ||||||
23 | eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756, | ||||||
24 | eff. 7-16-14.)
| ||||||
25 | (35 ILCS 5/216) |
| |||||||
| |||||||
1 | Sec. 216. Credit for wages paid to ex-felons. | ||||||
2 | (a) For each taxable year beginning on or after January 1, | ||||||
3 | 2007, each taxpayer is entitled to a credit against the tax | ||||||
4 | imposed by subsections (a) and (b) of Section 201 of this Act | ||||||
5 | in an amount equal to a portion of the 5% of qualified wages | ||||||
6 | paid by the taxpayer during the taxable year to one or more | ||||||
7 | Illinois residents who are qualified ex-offenders. For tax | ||||||
8 | years beginning prior to January 1, 2017, the amount of the | ||||||
9 | credit shall be equal to 5% of qualified wages paid by the | ||||||
10 | taxpayer during the taxable year to one or more Illinois | ||||||
11 | residents who are qualified ex-offenders. For tax years | ||||||
12 | beginning on or after January 1, 2017, the amount of the credit | ||||||
13 | shall be equal to 25% of qualified wages paid by the taxpayer | ||||||
14 | during the taxable year to one or more Illinois residents who | ||||||
15 | are qualified ex-offenders. The total credit allowed to a | ||||||
16 | taxpayer with respect to each qualified ex-offender may not | ||||||
17 | exceed (i) $1,500 for taxable years beginning prior to January | ||||||
18 | 1, 2017 and (ii) $2,500 for all taxable years beginning on or | ||||||
19 | after January 1, 2017 . For partners, shareholders of Subchapter | ||||||
20 | S corporations, and owners of limited liability companies, if | ||||||
21 | the liability company is treated as a partnership for purposes | ||||||
22 | of federal and State income taxation, there shall be allowed a | ||||||
23 | credit under this Section to be determined in accordance with | ||||||
24 | the determination of income and distributive share of income | ||||||
25 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
26 | Revenue Code. |
| |||||||
| |||||||
1 | (b) For purposes of this Section, "qualified wages": | ||||||
2 | (1) includes only wages that are subject to federal | ||||||
3 | unemployment tax under Section 3306 of the Internal Revenue | ||||||
4 | Code, without regard to any dollar limitation contained in | ||||||
5 | that Section;
| ||||||
6 | (2) does not include any amounts paid or incurred by an | ||||||
7 | employer for any period to any qualified ex-offender for | ||||||
8 | whom the employer receives federally funded payments for | ||||||
9 | on-the-job training of that qualified ex-offender for that | ||||||
10 | period;
and
| ||||||
11 | (3) includes only wages attributable to service | ||||||
12 | rendered during the one-year period beginning with the day | ||||||
13 | the qualified ex-offender begins work for the employer.
| ||||||
14 | If the taxpayer has received any payment from a program | ||||||
15 | established under Section 482(e)(1) of the federal Social | ||||||
16 | Security Act with respect to a qualified ex-offender, then, for | ||||||
17 | purposes of calculating the credit under this Section, the | ||||||
18 | amount of the qualified wages paid to that qualified | ||||||
19 | ex-offender must be reduced by the amount of the payment.
| ||||||
20 | (c) For purposes of this Section, "qualified ex-offender" | ||||||
21 | means any person who:
| ||||||
22 | (1) has been convicted of a crime in this State or of | ||||||
23 | an offense in any other jurisdiction, not including any | ||||||
24 | offense or attempted offense that would subject a person to | ||||||
25 | registration under the Sex Offender Registration Act; | ||||||
26 | (2) was sentenced to a period of incarceration in an |
| |||||||
| |||||||
1 | Illinois adult correctional center; and | ||||||
2 | (3) was hired by the taxpayer within 2 3 years after | ||||||
3 | being released from an Illinois adult correctional center ; | ||||||
4 | and . | ||||||
5 | (4) has completed a job skills training program or a | ||||||
6 | job readiness program under Section 9A-9 of the Illinois | ||||||
7 | Public Aid Code. | ||||||
8 | (d) In no event shall a credit under this Section reduce | ||||||
9 | the taxpayer's liability to less than zero. If the amount of | ||||||
10 | the credit exceeds the tax liability for the year, the excess | ||||||
11 | may be carried forward and applied to the tax liability of the | ||||||
12 | 5 taxable years following the excess credit year. The tax | ||||||
13 | credit shall be applied to the earliest year for which there is | ||||||
14 | a tax liability. If there are credits for more than one year | ||||||
15 | that are available to offset a liability, the earlier credit | ||||||
16 | shall be applied first.
| ||||||
17 | (e) This Section is exempt from the provisions of Section | ||||||
18 | 250. | ||||||
19 | (Source: P.A. 98-165, eff. 8-5-13.)
| ||||||
20 | Section 10. The Retailers' Occupation Tax Act is amended by | ||||||
21 | changing Section 5k as follows:
| ||||||
22 | (35 ILCS 120/5k) (from Ch. 120, par. 444k)
| ||||||
23 | Sec. 5k. Building materials exemption; enterprise zone. | ||||||
24 | (a) Each retailer who makes a qualified sale of building
|
| |||||||
| |||||||
1 | materials
to be incorporated into real estate in an investment | ||||||
2 | zone established under subsection (n-1) of Section 201 of the | ||||||
3 | Illinois Income Tax Act or an enterprise zone
established by a | ||||||
4 | county or municipality under the Illinois Enterprise Zone
Act
| ||||||
5 | by remodeling,
rehabilitation or new construction, may deduct | ||||||
6 | receipts from such sales
when calculating the tax imposed by | ||||||
7 | this Act.
For purposes of this Section, before July 1, 2013, | ||||||
8 | "qualified sale" means a sale of building
materials that will | ||||||
9 | be incorporated into real estate as part of a building
project | ||||||
10 | for which a Certificate of Eligibility for Sales Tax Exemption | ||||||
11 | has been
issued by the administrator of the enterprise zone in | ||||||
12 | which the building
project is located, and on and after July 1, | ||||||
13 | 2013, "qualified sale" means a sale of building materials that | ||||||
14 | will be incorporated into real estate as part of a building | ||||||
15 | project for which an Enterprise Zone Building Materials | ||||||
16 | Exemption Certificate or an Investment Zone Building Materials | ||||||
17 | Exemption Certificate has been issued to the purchaser by the | ||||||
18 | Department. A construction contractor or other entity shall not | ||||||
19 | make tax-free purchases unless it has an active Exemption | ||||||
20 | Certificate issued by the Department at the time of the | ||||||
21 | purchase. | ||||||
22 | (b) Before July 1, 2013, to document the exemption allowed | ||||||
23 | under this Section, the
retailer must obtain from the purchaser | ||||||
24 | a copy of the Certificate of
Eligibility for Sales Tax | ||||||
25 | Exemption issued by the administrator of the
enterprise zone | ||||||
26 | into which the building materials will be incorporated. On and |
| |||||||
| |||||||
1 | after July 1, 2013, to document the exemption allowed under | ||||||
2 | this Section, the retailer must obtain from the purchaser the | ||||||
3 | certification required under subsection (c), which must | ||||||
4 | contain the Enterprise Zone Building Materials Exemption | ||||||
5 | Certificate number issued to the purchaser by the Department.
| ||||||
6 | Upon request from the enterprise zone administrator, the | ||||||
7 | Department shall issue an Enterprise Zone Building Materials | ||||||
8 | Exemption Certificate for each construction contractor or | ||||||
9 | other entity identified by the enterprise zone administrator. | ||||||
10 | Upon request from the corporate authorities of the municipality | ||||||
11 | in which an investment zone is located, the Department shall | ||||||
12 | issue an Investment Zone Building Materials Exemption | ||||||
13 | Certificate for each construction contractor or other entity | ||||||
14 | identified by the corporate authorities. The Department shall | ||||||
15 | make the Exemption Certificates available directly to each | ||||||
16 | enterprise zone administrator, construction contractor, or | ||||||
17 | other entity. The request for Enterprise Zone Building | ||||||
18 | Materials Exemption Certificates from the enterprise zone | ||||||
19 | administrator or the corporate authorities to the Department | ||||||
20 | must include the following information: | ||||||
21 | (1) the name and address of the construction contractor | ||||||
22 | or other entity; | ||||||
23 | (2) the name and number of the enterprise zone or | ||||||
24 | investment zone ; | ||||||
25 | (3) the name and location or address of the building | ||||||
26 | project in the enterprise zone or investment zone ; |
| |||||||
| |||||||
1 | (4) the estimated amount of the exemption for each | ||||||
2 | construction contractor or other entity for which a request | ||||||
3 | for Exemption Certificate is made, based on a stated | ||||||
4 | estimated average tax rate and the percentage of the | ||||||
5 | contract that consists of materials; | ||||||
6 | (5) the period of time over which supplies for the | ||||||
7 | project are expected to be purchased; and | ||||||
8 | (6) other reasonable information as the Department may | ||||||
9 | require, including, but not limited to FEIN numbers, to | ||||||
10 | determine if the contractor or other entity, or any | ||||||
11 | partner, or a corporate officer, and in the case of a | ||||||
12 | limited liability company, any manager or member, of the | ||||||
13 | construction contractor or other entity, is or has been the | ||||||
14 | owner, a partner, a corporate officer, and in the case of a | ||||||
15 | limited liability company, a manager or member, of a person | ||||||
16 | that is in default for moneys due to the Department under | ||||||
17 | this Act or any other tax or fee Act administered by the | ||||||
18 | Department. | ||||||
19 | The Department shall issue the Enterprise Zone Building | ||||||
20 | Materials Exemption Certificates within 3 business days after | ||||||
21 | receipt of request from the zone administrator or corporate | ||||||
22 | authorities . This requirement does not apply in circumstances | ||||||
23 | where the Department, for reasonable cause, is unable to issue | ||||||
24 | the Exemption Certificate within 3 business days. The | ||||||
25 | Department may refuse to issue an Exemption Certificate if the | ||||||
26 | owner, any partner, or a corporate officer, and in the case of |
| |||||||
| |||||||
1 | a limited liability company, any manager or member, of the | ||||||
2 | construction contractor or other entity is or has been the | ||||||
3 | owner, a partner, a corporate officer, and in the case of a | ||||||
4 | limited liability company, a manager or member, of a person | ||||||
5 | that is in default for moneys due to the Department under this | ||||||
6 | Act or any other tax or fee Act administered by the Department. | ||||||
7 | The Enterprise Zone Building Materials Exemption Certificate | ||||||
8 | shall contain language stating that if the construction | ||||||
9 | contractor or other entity who is issued the Exemption | ||||||
10 | Certificate makes a tax-exempt purchase, as described in this | ||||||
11 | Section, that is not eligible for exemption under this Section | ||||||
12 | or allows another person to make a tax-exempt purchase, as | ||||||
13 | described in this Section, that is not eligible for exemption | ||||||
14 | under this Section, then, in addition to any tax or other | ||||||
15 | penalty imposed, the construction contractor or other entity is | ||||||
16 | subject to a penalty equal to the tax that would have been paid | ||||||
17 | by the retailer under this Act as well as any applicable local | ||||||
18 | retailers' occupation tax on the purchase that is not eligible | ||||||
19 | for the exemption. | ||||||
20 | The Department, in its discretion, may require that | ||||||
21 | requests the request for Enterprise Zone Building Materials | ||||||
22 | Exemption Certificates be submitted electronically. The | ||||||
23 | Department may, in its discretion, issue the Exemption | ||||||
24 | Certificates electronically. The Enterprise Zone Building | ||||||
25 | Materials Exemption Certificate number shall be designed in | ||||||
26 | such a way that the Department can identify from the unique |
| |||||||
| |||||||
1 | number on the Exemption Certificate issued to a given | ||||||
2 | construction contractor or other entity, the name of the | ||||||
3 | Enterprise Zone or Investment Zone , the project for which the | ||||||
4 | Exemption Certificate is issued, and the construction | ||||||
5 | contractor or other entity to whom the Exemption Certificate is | ||||||
6 | issued. The Exemption Certificate shall contain an expiration | ||||||
7 | date, which shall be no more than 2 years after the date of | ||||||
8 | issuance. At the request of the zone administrator, the | ||||||
9 | Department may renew an Exemption Certificate. After the | ||||||
10 | Department issues Exemption Certificates for a given | ||||||
11 | enterprise zone project, the enterprise zone administrator or | ||||||
12 | corporate authorities may notify the Department of additional | ||||||
13 | construction contractors or other entities eligible for an | ||||||
14 | Enterprise Zone Building Materials Exemption Certificate. Upon | ||||||
15 | notification by the enterprise zone administrator or corporate | ||||||
16 | authorities and subject to the other provisions of this | ||||||
17 | subsection (b), the Department shall issue an Enterprise Zone | ||||||
18 | Building Materials Exemption Certificate to each additional | ||||||
19 | construction contractor or other entity identified by the | ||||||
20 | enterprise zone administrator or corporate authorities . An | ||||||
21 | enterprise zone administrator may notify the Department to | ||||||
22 | rescind an Enterprise Zone Building Materials Exemption | ||||||
23 | Certificate previously issued by the Department but that has | ||||||
24 | not yet expired ; the corporate authorities of the municipality | ||||||
25 | may notify the Department to rescind an Investment Zone | ||||||
26 | Building Materials Exemption Certificate previously issued by |
| |||||||
| |||||||
1 | the Department but that has not yet expired . Upon such | ||||||
2 | notification by the enterprise zone administrator and subject | ||||||
3 | to the other provisions of this subsection (b), the Department | ||||||
4 | shall issue the rescission of the Enterprise Zone Building | ||||||
5 | Materials Exemption Certificate to the construction contractor | ||||||
6 | or other entity identified by the enterprise zone administrator | ||||||
7 | or corporate authorities and provide a copy to the enterprise | ||||||
8 | zone administrator or corporate authorities . | ||||||
9 | If the Department of Revenue determines that a construction | ||||||
10 | contractor or other entity that was issued an Exemption | ||||||
11 | Certificate under this subsection (b) made a tax-exempt | ||||||
12 | purchase, as described in this Section, that was not eligible | ||||||
13 | for exemption under this Section or allowed another person to | ||||||
14 | make a tax-exempt purchase, as described in this Section, that | ||||||
15 | was not eligible for exemption under this Section, then, in | ||||||
16 | addition to any tax or other penalty imposed, the construction | ||||||
17 | contractor or other entity is subject to a penalty equal to the | ||||||
18 | tax that would have been paid by the retailer under this Act as | ||||||
19 | well as any applicable local retailers' occupation tax on the | ||||||
20 | purchase that was not eligible for the exemption.
| ||||||
21 | (c) In addition, the retailer must obtain certification | ||||||
22 | from the purchaser that
contains:
| ||||||
23 | (1) a statement that the building materials are being | ||||||
24 | purchased for
incorporation into real estate located in an | ||||||
25 | Illinois enterprise zone or investment zone ;
| ||||||
26 | (2) the location or address of the real estate into |
| |||||||
| |||||||
1 | which the building
materials will be incorporated;
| ||||||
2 | (3) the name of the enterprise zone in which that real | ||||||
3 | estate is located;
| ||||||
4 | (4) a description of the building materials being | ||||||
5 | purchased;
| ||||||
6 | (5) on and after July 1, 2013, the purchaser's | ||||||
7 | Enterprise Zone Building Materials Exemption Certificate | ||||||
8 | number issued by the Department; and | ||||||
9 | (6) the purchaser's signature and date of purchase.
| ||||||
10 | (d) The deduction allowed by
this Section for the sale of | ||||||
11 | building materials may be limited, to the
extent authorized by | ||||||
12 | ordinance, adopted after the effective date of this
amendatory | ||||||
13 | Act of 1992, by the municipality or county that created the
| ||||||
14 | enterprise zone
into which the
building materials will be | ||||||
15 | incorporated.
The ordinance, however, may neither require nor | ||||||
16 | prohibit the purchase of
building materials from any retailer | ||||||
17 | or class of retailers in order to qualify
for the exemption | ||||||
18 | allowed under this Section. The provisions of this Section
are | ||||||
19 | exempt from Section
2-70.
| ||||||
20 | (e) Notwithstanding anything to the contrary in this | ||||||
21 | Section, for enterprise zone projects already in existence and | ||||||
22 | for which construction contracts are already in place on July | ||||||
23 | 1, 2013, the request for Enterprise Zone Building Materials | ||||||
24 | Exemption Certificates from the enterprise zone administrator | ||||||
25 | to the Department for these pre-existing construction | ||||||
26 | contractors and other entities must include the information |
| |||||||
| |||||||
1 | required under subsection (b), but not including the | ||||||
2 | information listed in items (4) and (5). For any new | ||||||
3 | construction contract entered into on or after July 1, 2013, | ||||||
4 | however, all of the information in subsection (b) must be | ||||||
5 | provided. | ||||||
6 | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| ||||||
7 | Section 15. The Environmental Protection Act is amended by | ||||||
8 | changing Section 58.14a as follows:
| ||||||
9 | (415 ILCS 5/58.14a) | ||||||
10 | Sec. 58.14a. River Edge Redevelopment Zone Site | ||||||
11 | Remediation Tax Credit Review. | ||||||
12 | (a) Prior to applying for the River Edge Redevelopment Zone | ||||||
13 | site remediation tax credit under subsection (n) of Section 201 | ||||||
14 | of the Illinois Income Tax Act or an investment zone site | ||||||
15 | remediation tax credit under subsection (n-5) of the Illinois | ||||||
16 | Income Tax Act , a Remediation Applicant must first submit to | ||||||
17 | the Agency an application for review of remediation costs. The | ||||||
18 | Agency shall review the application in consultation with the | ||||||
19 | Department of Commerce and Economic Opportunity. The | ||||||
20 | application and review process must be conducted in accordance | ||||||
21 | with the requirements of this Section and the rules adopted | ||||||
22 | under subsection (g). A preliminary review of the estimated | ||||||
23 | remediation costs for development and implementation of the | ||||||
24 | Remedial Action Plan may be obtained in accordance with |
| |||||||
| |||||||
1 | subsection (d). | ||||||
2 | (b) No application for review may be submitted until a No | ||||||
3 | Further Remediation Letter has been issued by the Agency and | ||||||
4 | recorded in the chain of title for the site in accordance with | ||||||
5 | Section 58.10. The Agency shall review the application to | ||||||
6 | determine whether the costs submitted are remediation costs and | ||||||
7 | whether the costs incurred are reasonable. The application must | ||||||
8 | be on forms prescribed and provided by the Agency. At a | ||||||
9 | minimum, the application must include the following: | ||||||
10 | (1) information identifying the Remediation Applicant, | ||||||
11 | the site for which the tax credit is being sought, and the | ||||||
12 | date of acceptance of the site into the Site Remediation | ||||||
13 | Program; | ||||||
14 | (2) a copy of the No Further Remediation Letter with | ||||||
15 | official verification that the letter has been recorded in | ||||||
16 | the chain of title for the site and a demonstration that | ||||||
17 | the site for which the application is submitted is the same | ||||||
18 | site as the one for which the No Further Remediation Letter | ||||||
19 | is issued; | ||||||
20 | (3) a demonstration that the release of the regulated | ||||||
21 | substances of concern for which the No Further Remediation | ||||||
22 | Letter was issued were not caused or contributed to in any | ||||||
23 | material respect by the Remediation Applicant. | ||||||
24 | Determinations as to credit availability shall be made | ||||||
25 | consistent with the Pollution Control Board rules for the | ||||||
26 | administration and enforcement of Section 58.9 of this Act; |
| |||||||
| |||||||
1 | (4) an itemization and documentation, including | ||||||
2 | receipts, of the remediation costs incurred; | ||||||
3 | (5) a demonstration that the costs incurred are | ||||||
4 | remediation costs as defined in this Act and its rules; | ||||||
5 | (6) a demonstration that the costs submitted for review | ||||||
6 | were incurred by the Remediation Applicant who received the | ||||||
7 | No Further Remediation Letter; | ||||||
8 | (7) an application fee in the amount set forth in | ||||||
9 | subsection (e) for each site for which review of | ||||||
10 | remediation costs is requested and, if applicable, | ||||||
11 | certification from the Department of Commerce and Economic | ||||||
12 | Opportunity that the site is located in a River Edge | ||||||
13 | Redevelopment Zone or an Investment Zone ; and | ||||||
14 | (8) any other information deemed appropriate by the | ||||||
15 | Agency. | ||||||
16 | (c) Within 60 days after receipt by the Agency of an | ||||||
17 | application meeting the requirements of subsection (b), the | ||||||
18 | Agency shall issue a letter to the applicant approving, | ||||||
19 | disapproving, or modifying the remediation costs submitted in | ||||||
20 | the application. If the remediation costs are approved as | ||||||
21 | submitted, then the Agency's letter must state the amount of | ||||||
22 | the remediation costs to be applied toward the River Edge | ||||||
23 | Redevelopment Zone site remediation tax credit. If an | ||||||
24 | application is disapproved or approved with modification of | ||||||
25 | remediation costs, then the Agency's letter must set forth the | ||||||
26 | reasons for the disapproval or modification and must state the |
| |||||||
| |||||||
1 | amount of the remediation costs, if any, to be applied toward | ||||||
2 | the River Edge Redevelopment Zone site remediation tax credit. | ||||||
3 | If a preliminary review of a budget plan has been obtained | ||||||
4 | under subsection (d), then the Remediation Applicant may | ||||||
5 | submit, with the application and supporting documentation | ||||||
6 | under subsection (b), a copy of the Agency's final | ||||||
7 | determination accompanied by a certification that the actual | ||||||
8 | remediation costs incurred for the development and | ||||||
9 | implementation of the Remedial Action Plan are equal to or less | ||||||
10 | than the costs approved in the Agency's final determination on | ||||||
11 | the budget plan. The certification must be signed by the | ||||||
12 | Remediation Applicant and notarized. Based on that submission, | ||||||
13 | the Agency is not required to conduct further review of the | ||||||
14 | costs incurred for development and implementation of the | ||||||
15 | Remedial Action Plan, and it may approve the costs as | ||||||
16 | submitted.
Within 35 days after the receipt of an Agency letter | ||||||
17 | disapproving or modifying an application for approval of | ||||||
18 | remediation costs, the Remediation Applicant may appeal the | ||||||
19 | Agency's decision to the Board in the manner provided for the | ||||||
20 | review of permits under Section 40 of this Act. | ||||||
21 | (d) A Remediation Applicant may obtain a preliminary review | ||||||
22 | of estimated remediation costs for the development and | ||||||
23 | implementation of the Remedial Action Plan by submitting a | ||||||
24 | budget plan along with the Remedial Action Plan. The budget | ||||||
25 | plan must be set forth on forms prescribed and provided by the | ||||||
26 | Agency and must include, without limitation, line-item |
| |||||||
| |||||||
1 | estimates of the costs associated with each line item (such as | ||||||
2 | personnel, equipment, and materials) that the Remediation | ||||||
3 | Applicant anticipates will be incurred for the development and | ||||||
4 | implementation of the Remedial Action Plan. The Agency shall | ||||||
5 | review the budget plan along with the Remedial Action Plan to | ||||||
6 | determine whether the estimated costs submitted are | ||||||
7 | remediation costs and whether the costs estimated for the | ||||||
8 | activities are reasonable. | ||||||
9 | If the Remedial Action Plan is amended by the Remediation | ||||||
10 | Applicant or as a result of Agency action, then the | ||||||
11 | corresponding budget plan must be revised accordingly and | ||||||
12 | resubmitted for Agency review. | ||||||
13 | The budget plan must be accompanied by the applicable fee | ||||||
14 | as set forth in subsection (e). | ||||||
15 | The submittal of a budget plan is deemed to be an automatic | ||||||
16 | 60-day waiver of the Remedial Action Plan review deadlines set | ||||||
17 | forth in this Section and its rules. | ||||||
18 | Within the applicable period of review, the Agency shall | ||||||
19 | issue a letter to the Remediation Applicant approving, | ||||||
20 | disapproving, or modifying the estimated remediation costs | ||||||
21 | submitted in the budget plan. If a budget plan is disapproved | ||||||
22 | or approved with modification of estimated remediation costs, | ||||||
23 | then the Agency's letter must set forth the reasons for the | ||||||
24 | disapproval or modification. | ||||||
25 | Within 35 days after receipt of an Agency letter | ||||||
26 | disapproving or modifying a budget plan, the Remediation |
| |||||||
| |||||||
1 | Applicant may appeal the Agency's decision to the Board in the | ||||||
2 | manner provided for the review of permits under Section 40 of | ||||||
3 | this Act. | ||||||
4 | (e) Any fee for a review conducted under this Section is in | ||||||
5 | addition to any other fees or payments for Agency services | ||||||
6 | rendered under the Site Remediation Program. The fees under | ||||||
7 | this Section are as follows: | ||||||
8 | (1) the fee for an application for review of | ||||||
9 | remediation costs is $250 for each site reviewed; and | ||||||
10 | (2) there is no fee for the review of the budget plan | ||||||
11 | submitted under subsection (d). | ||||||
12 | The application fee must be made payable to the State of | ||||||
13 | Illinois, for deposit into the Hazardous Waste Fund.
Pursuant | ||||||
14 | to appropriation, the Agency shall use the fees collected under | ||||||
15 | this subsection for development and administration of the | ||||||
16 | review program. | ||||||
17 | (f) The Agency has the authority to enter into any | ||||||
18 | contracts or agreements that may be necessary to carry out its | ||||||
19 | duties and responsibilities under this Section. | ||||||
20 | (g) The Agency shall adopt rules prescribing procedures and | ||||||
21 | standards for its administration of this Section. Prior to the
| ||||||
22 | effective date of rules adopted under this Section, the Agency | ||||||
23 | may conduct reviews of applications under this Section. The | ||||||
24 | Agency may publish informal guidelines concerning this Section | ||||||
25 | to provide guidance.
| ||||||
26 | (Source: P.A. 95-454, eff. 8-27-07.)
|