Bill Text: IL SB1835 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of those expenditures. Provides that the total amount of credits awarded under these provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount awarded for any particular taxpayer in any taxable year shall be $20,000,000. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-06 - Referred to Assignments [SB1835 Detail]

Download: Illinois-2025-SB1835-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1835 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
35 ILCS 5/235 new
Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of those expenditures. Provides that the total amount of credits awarded under these provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount awarded for any particular taxpayer in any taxable year shall be $20,000,000. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
adding Section 235 as follows:
(35 ILCS 5/235 new)
Sec. 235. Manufacturing capital expenditure credit. For
taxable years that begin on or after January 1, 2025 and begin
prior to January 1, 2036, each taxpayer that is engaged in the
business of manufacturing (North American Industry
Classification System code 31-33) is entitled to a credit
against the taxes imposed by subsections (a) and (b) of
Section 201 in an amount equal to 10% of the capital
expenditures incurred by the taxpayer during the taxable year
that are related to manufacturing. The total amount of credits
awarded under this Section may not exceed $10,000,000 for any
particular taxpayer in any taxable year. However,
notwithstanding any other provision of this Section, if the
capital investment is made in a rural or economically
challenged area, as determined by the Department of Commerce
and Economic Opportunity, then the amount of the credit shall
be 15% of the capital expenditure, and the maximum amount
awarded under this Section for any particular taxpayer in any

SB1835 - 2 - LRB104 03835 HLH 13859 b
taxable year shall be $20,000,000. A taxpayer may not claim a
credit under this Section if the taxpayer claims a credit
against the taxes imposed by subsections (a) and (b) of
Section 201 for the same capital expenditure under any other
provision of law.
In no event shall a credit under this Section reduce the
taxpayer's liability under this Act to less than zero. The
credit may not be carried forward or back.