Bill Text: IL HB4152 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity shall administer the Business to Business Revolving Loan Fund. Provides that moneys in the Business to Business Revolving Loan Fund shall be used by the Department of Commerce and Economic Opportunity to make revolving loans and grants to new and expanding businesses in the State. Sets limits on the amount of grants and loans. Creates an advisory committee to propose rules concerning eligibility for the loan and grant program. Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the amount of the taxpayer's donation to the Business to Business Revolving Loan Fund, subject to approval by the Department of Commerce and Economic Opportunity. Provides that the Department of Commerce and Economic Opportunity may not approve more than $200,000,000 in credits for those donations in the aggregate in any calendar year. Amends the State Finance Act to create the Business to Business Revolving Loan Fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB4152 Detail]

Download: Illinois-2017-HB4152-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB4152 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
20 ILCS 605/605-427 new
35 ILCS 5/226 new
30 ILCS 105/5.886 new
Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity shall administer the Business to Business Revolving Loan Fund. Provides that moneys in the Business to Business Revolving Loan Fund shall be used by the Department of Commerce and Economic Opportunity to make revolving loans and grants to new and expanding businesses in the State. Sets limits on the amount of grants and loans. Creates an advisory committee to propose rules concerning eligibility for the loan and grant program. Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the amount of the taxpayer's donation to the Business to Business Revolving Loan Fund, subject to approval by the Department of Commerce and Economic Opportunity. Provides that the Department of Commerce and Economic Opportunity may not approve more than $200,000,000 in credits for those donations in the aggregate in any calendar year. Amends the State Finance Act to create the Business to Business Revolving Loan Fund.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois is
amended by adding Section 605-427 as follows:
(20 ILCS 605/605-427 new)
Sec. 605-427. Business to Business Revolving Loan Fund.
(a) The Department shall administer the Business to
Business Revolving Loan Fund, a special fund in the State
treasury. Moneys in the Fund shall be used by the Department,
subject to appropriation, to make revolving loans and grants to
new and expanding businesses in the State. Loan and grant
amounts may not exceed (i) $50,000 for an expanding business or
(ii) $100,000 for a start up business. No business may receive
a grant or loan under this Section if the business or a related
member of the business receives a credit under Section 226 of
the Illinois Income Tax Act for a contribution to the Fund.
(b) An advisory committee is hereby established within the
Department to propose rules concerning eligibility for loans
and grants under this Section. The committee shall hold at
least 3 public hearings in the City of Springfield prior to
establishing the loan and grant program. The committee shall be

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composed of the following members:
(1) an individual representing the business community
appointed by the Governor;
(2) an individual representing financial institutions
appointed by the Governor;
(3) one member of the House of Representatives
appointed by the Speaker of the House of Representatives;
(4) one member of the House of Representatives
appointed by the Minority Leader of the House of
Representatives;
(5) one member of the Senate appointed by the Senate
President; and
(6) one member of the Senate appointed by the Minority
Leader of the Senate.
(c) The Department shall adopt rules for the implementation
of this Section.
(d) As used in this Section:
"Expanding business" means a business that agrees to
increase its employment head count in the State over its
average employment head count for the calendar year immediately
preceding its application for grant or loan funds under this
Section.
"Related member" means a person or entity that, with
respect to the business, is any one of the following:
(1) an individual stockholder, if the stockholder and
the members of the stockholder's family (as defined in

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Section 318 of the Internal Revenue Code) own directly,
indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the outstanding
stock of the business;
(2) a partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
business;
(3) a corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the business; or
(4) a person to or from whom there is attribution of
stock ownership in accordance with Section 1563(e) of the
Internal Revenue Code, except, for purposes of determining
whether a person is a related member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
Section 10. The Illinois Income Tax Act is amended by

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adding Section 226 as follows:
(35 ILCS 5/226 new)
Sec. 226. Business to Business Revolving Loan Fund credit.
(a) For taxable years beginning on or after January 1,
2018, a taxpayer who (i) makes a contribution to the Business
to Business Revolving Loan Fund established under Section
506-427 of the Department of Commerce and Economic Opportunity
Law of the Civil Administrative Code of Illinois and (ii)
receives approval from the Department of Commerce and Economic
Opportunity for a credit under this Section is entitled to a
credit against the tax imposed by subsections (a) and (b) of
Section 201 in an amount equal to the approved amount of the
donation. The Department of Commerce and Economic Opportunity
may not approve more than $200,000,000 in credits under this
Section in the aggregate in any calendar year.
(b) If the taxpayer is 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.
(c) The tax credit may not reduce the taxpayer's liability
to less than zero. If the amount of the tax credit exceeds the
tax liability for the year, the excess may be carried forward
and applied to the tax liability of the 5 taxable years
following the excess credit year. The credit must be applied to

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the earliest year for which there is a tax liability. If there
are credits from more than one tax year that are available to
offset a liability, then the earlier credit must be applied
first.
(d) This Section is exempt from the provisions of Section
250.
Section 15. The State Finance Act is amended by adding
Section 5.886 as follows:
(30 ILCS 105/5.886 new)
Sec. 5.886. The Business to Business Revolving Loan Fund