Bill Text: IL HB3797 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the investment made by the taxpayer during the taxable year in a Qualified Opportunity Fund. Provides that no such credit may be taken for any taxable year that begins prior to January 1, 2023. Provides that excess credits may be carried forward or back. Provides that the aggregate amount of the Qualified Opportunity Fund tax credit shall be limited to $10,000 per taxpayer per calendar year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB3797 Detail]

Download: Illinois-2023-HB3797-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3797 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the investment made by the taxpayer during the taxable year in a Qualified Opportunity Fund. Provides that no such credit may be taken for any taxable year that begins prior to January 1, 2023. Provides that excess credits may be carried forward or back. Provides that the aggregate amount of the Qualified Opportunity Fund tax credit shall be limited to $10,000 per taxpayer per calendar year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.
LRB103 30156 HLH 56580 b
A BILL FOR
HB3797 LRB103 30156 HLH 56580 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
adding Section 234 as follows:
(35 ILCS 5/234 new)
Sec. 234. Qualified Opportunity Fund credit.
(a) As used in this Section:
"Applicant" means a corporation, partnership, limited
liability company, or a natural person that makes an
investment in a Qualified Opportunity Fund established under
Section 1400Z-2 of the Internal Revenue Code.
"Claimant" means an applicant that is awarded a credit
under this Section by the Department.
"Department" means the Department of Commerce and Economic
Opportunity.
(b) A claimant may claim a credit against the tax imposed
under subsections (a) and (b) of Section 201 of this Act in an
amount equal to the claimant's investment during the taxable
year in a Qualified Opportunity Fund established under Section
1400Z-2 of the Internal Revenue Code.
(c) Credits may be awarded for investments made on or
after the date on which the Qualified Opportunity Fund is

HB3797 - 2 - LRB103 30156 HLH 56580 b
created; however, no credit may be taken for any taxable year
that begins prior to January 1, 2023. The credit under this
Section may not exceed the taxpayer's Illinois income tax
liability for the taxable year. If the amount of the credit
exceeds the tax liability for the year, then the excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit year or carried back
and applied to the tax liability of the 3 taxable years
immediately preceding the excess credit year. The credit shall
be applied to the earliest year for which there is a tax
liability. If there are credits from more than one tax year
that are available to offset a liability, the earlier credit
shall be applied first. In the case of a partnership or
Subchapter S Corporation, the credit is allowed to the
partners or shareholders in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code.
(d) A transfer of the credit may be made by the taxpayer,
in accordance with rules adopted by the Department, within one
year after the credit is awarded.
(e) In no event shall a credit under this Section exceed
$10,000 for any taxpayer in any taxable year.
(f) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.