Bill Text: IL SB3592 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Creates the Strengthening Community Media Act. Provides that a local news organization shall not be sold to a company without giving written notice 120 days before the sales occurs to specified individuals and organizations. Amends the Higher Education Student Assistance Act. Creates the Journalism Student Scholarship Program. Provides that the Illinois Student Assistance Commission shall award scholarships to students who will work at a local news organization in the State for a period of not less than 2 years.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-1021 [SB3592 Detail]

Download: Illinois-2023-SB3592-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3592 Introduced 2/9/2024, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
New Act
35 ILCS 5/201
35 ILCS 5/241 new
35 ILCS 5/242 new
110 ILCS 947/65.125 new
Creates the Strengthening Community Media Act. Provides that a State agency shall direct at least 50% of its total spending on advertising to local news organization publications. Sets forth exceptions and reporting requirements. Provides that a local news organization shall not be sold to an out-of-state company without giving written notice 120 days before the sales occurs to specified individuals and organizations. Amends the Illinois Income Tax Act. Provides that a taxpayer that is an eligible news journalist employer shall be allowed a credit against the Personal Property Tax Replacement Income Tax for each qualified journalist hired by the eligible news journalist employer during the taxable year. Provides that an eligible news journalist employer is entitled to a credit against taxes in an amount equal to 50% of the wages paid for up to 150 qualified journalists. Provides that an eligible small business is entitled to a credit against taxes in an amount equal to the amount paid by the eligible small business to local newspapers or broadcasters for advertising in the State. Amends the Higher Education Student Assistance Act. Creates the Journalism Student Scholarship Program. Provides that the Illinois Student Assistance Commission shall award scholarships to students who will work at a local news organization in the State for a period of not less than 2 years.
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A BILL FOR
SB3592 LRB103 38956 SPS 69093 b
AN ACT concerning journalism.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Strengthening Community Media Act.
Section 5. Findings.
(a) Illinois benefits from robust local news services that
provide trusted and essential information to the community
that limits corruption, encourages citizen participation,
helps combat misinformation, and mitigates community and
individual alienation.
(b) Local news in Illinois and throughout the country is
struggling with newspaper advertising dropping 82% nationally
since 2000, contributing to a 57% drop in the number of
reporters at newspapers and thousands of closures.
(c) Local news outlets are trusted sources of information
for communities throughout Illinois and advertising spending
with these outlets carries a substantial benefit for the
effective dissemination of important government information to
the communities it serves.
(d) Government initiatives to increase spending on local
news advertising has been manifestly successful in both
supporting local news outlets and improving the information

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diet of communities in several major cities.
(e) Illinois can and will implement such an initiative
while preserving the editorial independence of local news
outlets selling advertising space under this Act, and
recognizes that any diversion of advertising spending that has
the effect or appearance of an attempt to influence the
editorial content of a local news organization violates the
federal and State guarantees of freedom of the press and
freedom of speech.
Section 10. Definitions. As used in this Act:
"Department" means the Department of Commerce and Economic
Opportunity.
"Local news organization" means an entity that:
(1) engages professionals to create, edit, produce,
and distribute original content concerning matters of
public interest, through reporting activities, including
conducting interviews, observing current events, or
analyzing documents or other information;
(2) has at least one employee employed full-time for
30 hours a week or more dedicated to providing coverage of
Illinois or local Illinois community news and living
within 50 miles of the coverage area, who gathers,
prepares, collects, photographs, writes, edits, reports,
or publishes original local or State community news for
dissemination to the local or State community;

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(3) in the case of print publications, has published
at least one print publication per month over the previous
12 months, and either holds a valid United States Postal
Service periodical permit or has at least 25% of its
content dedicated to local news;
(4) in the case of digital-only entities, has
published one piece about the community per week over the
previous 12 months and has at least 33% of its digital
audience in Illinois, averaged over a 12-month period;
(5) in the case of hybrid entities that that have both
print and digital outlets, meets the requirements in
either paragraph (3) or (4) of this definition;
(6) has disclosed in its print publication or on its
website its beneficial ownership or, in the case of a
not-for-profit entity, its board of directors;
(7) in the case of an entity that maintains tax status
under Section 501(c)(3) of the federal Internal Revenue
Code, has declared the coverage of local or State news as
the stated mission in its filings with the Internal
Revenue Service; and
(8) has not received more than 50% of its gross
receipts for the previous year from political action
committees or other entities described in Section 527 of
the federal Internal Revenue Code, or from an organization
that maintains Section 501(c)(4) or 501(c)(6) status under
the federal Internal Revenue Code.

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"State agencies" means all officers, boards, commissions,
and agencies created by the Illinois Constitution, whether in
the executive, legislative, or judicial branch, but other than
the circuit court; all officers, departments, boards,
commissions, agencies, institutions, authorities,
universities, bodies politic and corporate of the State; and
administrative units or corporate outgrowths of the State
government which are created pursuant to statute, other than
units of local government and their officers, school districts
and boards of elected commissioners; and all administrative
units and corporate outgrowths of the above and as may be
created by executive order of the Governor.
Section 15. Advertising with local news organizations.
(a) For the fiscal year following the effective date of
this Act, and each fiscal year thereafter, a State agency
shall direct at least 50% of its total spending on advertising
to local news organization publications, provided that a State
agency may seek an exemption from this requirement upon a
showing to the Department that the purposes of the advertising
are inconsistent with placement in a local news organization.
If a State agency seeks an exemption, the Department shall
direct the advertising spending to a local news organization
if it determined that the objectives of the advertising can be
served as effectively or better through the local news
organization.

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(b) The Department shall maintain a list of eligible local
news organizations.
(c) The Department shall determine whether an entity
qualifies as a local news organization in accordance with the
definition provided in Section 10.
(d) All State agencies are prohibited from discriminating
among local news organizations based on editorial content,
unless that content is objectively relevant to the target
audience and articulated purposes of the advertising.
(e) If an entity is denied eligibility as a local news
organization, the Department shall provide, in writing and
upon request, an explanation to the entity of the reasons for
the denial as described in subsection (c).
Section 20. Reporting requirements.
(a) No later than 3 months after the effective date of this
Act, the Department shall publish on its website a report on
the implementation of this Act, including information on the
criteria used to make determinations under subsection (a) of
Section 15.
(b) For the first full fiscal year following the effective
date of this Act, and each fiscal year thereafter, the
Department shall publish an annual report that includes, but
it not limited to:
(1) the operative list of local news organizations at
the date of publication;

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(2) the advertising spending by each State agency; and
(3) the recipients of the spending, including which
entity received which individual advertising contract and
the amount of the contract.
Section 25. Notice of sale of a local news organization. A
local news organization shall not be sold to an out-of-state
company without giving written notice 120 days before the
sales occurs to the following:
(1) affected employees and representatives of affected
employees;
(2) the Department of Commerce and Economic
Opportunity and the county government in which the local
news organization is located; and
(3) any in-State nonprofit organization in the
business of buying local news organizations.
Section 90. The Illinois Income Tax Act is amended by
changing Section 201 and by adding Sections 241 and 242 as
follows:
(35 ILCS 5/201)
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege

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of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior

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to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2011,
and ending prior to January 1, 2015, an amount equal to 5%
of the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section
202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period
prior to July 1, 2017, as calculated under Section 202.5,
and (ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.

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(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years

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beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1,
2017, as calculated under Section 202.5, and (ii) 7% of
the taxpayer's net income for the period after June 30,
2017, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.

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(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing
Act of 1975 and (ii) of an organization gaming licensee under
the Illinois Gambling Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in

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a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.

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(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The
Personal Property Tax Replacement Income Tax shall be in
addition to the income tax imposed by subsections (a) and (b)
of this Section and in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the

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case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on
such income by the foreign insurer's state of domicile. For
the purposes of this subsection (d-1), an inter-affiliate
includes a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:

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(A) the total amount of tax imposed on such
foreign insurer under this Act for a taxable year, net
of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of
the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% for taxable years ending prior to December
31, 2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of
Section 409 of the Illinois Insurance Code. This paragraph
will in no event increase the rates imposed under
subsections (b) and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a

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credit against the Personal Property Tax Replacement Income
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be allowed
an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment
records filed with the Illinois Department of Employment
Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for the
first year in which they file employment records with the
Illinois Department of Employment Security. The provisions
added to this Section by Public Act 85-1200 (and restored
by Public Act 87-895) shall be construed as declaratory of
existing law and not as a new enactment. If, in any year,
the increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit
shall be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a

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taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i)
and (ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability

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for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, earlier
credit shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land
or improvements to real property that are not a
structural component of a building such as
landscaping, sewer lines, local access roads, fencing,
parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal

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or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection
(e), the term "retailing" means the sale of tangible
personal property for use or consumption and not for
resale, or services rendered in conjunction with the sale
of tangible personal property for use or consumption and
not for resale. For purposes of this subsection (e),
"tangible personal property" has the same meaning as when
that term is used in the Retailers' Occupation Tax Act,
and, for taxable years ending after December 31, 2008,
does not include the generation, transmission, or

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distribution of electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal
Property Tax Replacement Income Tax for such taxable year
shall be increased. Such increase shall be determined by
(i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be

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deemed a disposition of qualified property to the extent
of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners
the credits to which the partnership is entitled under
this subsection (e) for the taxable year. A partner may
use the credit allocated to him or her under this
paragraph only against the tax imposed in subsections (c)
and (d) of this Section. If the partnership makes that
election, those credits shall be allocated among the
partners in the partnership in accordance with the rules
set forth in Section 704(b) of the Internal Revenue Code,
and the rules promulgated under that Section, and the
allocated amount of the credits shall be allowed to the
partners for that taxable year. The partnership shall make
this election on its Personal Property Tax Replacement
Income Tax return for that taxable year. The election to
pass through the credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a
subtraction under subparagraph (I) of paragraph (2) of

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subsection (d) of Section 203 or a shareholder that
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the
partnership or Subchapter S corporation, determined 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. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in
service in an Enterprise Zone created pursuant to the
Illinois Enterprise Zone Act or, for property placed in
service on or after July 1, 2006, a River Edge
Redevelopment Zone established pursuant to the River Edge
Redevelopment Zone Act. For partners, shareholders of
Subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income
taxation, for taxable years ending before December 31,
2023, there shall be allowed a credit under this

SB3592 - 23 - LRB103 38956 SPS 69093 b
subsection (f) to be determined 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. For taxable years ending on or
after December 31, 2023, for partners and shareholders of
Subchapter S corporations, the provisions of Section 251
shall apply with respect to the credit under this
subsection. The credit shall be .5% of the basis for such
property. The credit shall be available only in the
taxable year in which the property is placed in service in
the Enterprise Zone or River Edge Redevelopment Zone and
shall not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections
(a) and (b) of this Section to below zero. For tax years
ending on or after December 31, 1985, the credit shall be
allowed for the tax year in which the property is placed in
service, or, if the amount of the credit exceeds the tax
liability for that year, whether it exceeds the original
liability or the liability as later amended, such excess
may be carried forward and applied to the tax liability of
the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, the
credit accruing first in time shall be applied first.
(2) The term qualified property means property which:

SB3592 - 24 - LRB103 38956 SPS 69093 b
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.

SB3592 - 25 - LRB103 38956 SPS 69093 b
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise
Zone or River Edge Redevelopment Zone within 48 months
after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more
over the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of

SB3592 - 26 - LRB103 38956 SPS 69093 b
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file
employment records with the Illinois Department of
Employment Security. If, in any year, the increase in base
employment within Illinois over the preceding year is less
than 1%, the additional credit shall be limited to that
percentage times a fraction, the numerator of which is
0.5% and the denominator of which is 1%, but shall not
exceed 0.5%.
(8) For taxable years beginning on or after January 1,
2021, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may
be carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest
year for which there is a tax liability. If there are
credits from more than one taxable year that are available
to offset a liability, the earlier credit shall be applied
first.

SB3592 - 27 - LRB103 38956 SPS 69093 b
For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, for
taxable years ending before December 31, 2023, there shall
be allowed a credit under this Section to be determined 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. For taxable
years ending on or after December 31, 2023, for partners
and shareholders of Subchapter S corporations, the
provisions of Section 251 shall apply with respect to the
credit under this subsection.
The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
shall not exceed $20,000,000 in any State fiscal year.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
be allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact

SB3592 - 28 - LRB103 38956 SPS 69093 b
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in
the taxable year in which such investments have been
completed. The credit for additional investments beyond
the minimum investment by a designated high impact
business authorized under subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act shall be available
only in the taxable year in which the property is placed in
service and shall not be allowed to the extent that it
would reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1987, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the

SB3592 - 29 - LRB103 38956 SPS 69093 b
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal

SB3592 - 30 - LRB103 38956 SPS 69093 b
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the
amount of such increase shall be deemed property placed in
service on the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent

SB3592 - 31 - LRB103 38956 SPS 69093 b
of such reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under
Section 18-183 of the Property Tax Code, the tax imposed
under subsections (a) and (b) of this Section shall be
increased for the taxable year in which the taxpayer
relocated its facility by an amount equal to the amount of
credit received by the taxpayer under this subsection (h).
(h-5) High Impact Business construction jobs credit. For
taxable years beginning on or after January 1, 2021, there
shall also be allowed a High Impact Business construction jobs
credit against the tax imposed under subsections (a) and (b)
of this Section as provided in subsections (i) and (j) of
Section 5.5 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier

SB3592 - 32 - LRB103 38956 SPS 69093 b
credit shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, for taxable years
ending before December 31, 2023, if the liability company is
treated as a partnership for the purposes of federal and State
income taxation, there shall be allowed a credit under this
Section to be determined 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. For
taxable years ending on or after December 31, 2023, for
partners and shareholders of Subchapter S corporations, the
provisions of Section 251 shall apply with respect to the
credit under this subsection.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
exceed $20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a)
and (b) of this Section for the tax imposed by subsections (c)
and (d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois

SB3592 - 33 - LRB103 38956 SPS 69093 b
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections
(a) and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year, provided that no credit may be carried
forward to any year ending on or after December 31, 2003. This
credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such
taxable year to reduce the amount of credit claimed.

SB3592 - 34 - LRB103 38956 SPS 69093 b
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed
outside of Illinois by a taxpayer, for educational or
vocational training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from gross
income in the computation of taxable income. The credit
against the tax imposed by subsections (a) and (b) shall be
1.6% of such training expenses. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
for taxable years ending before December 31, 2023, there shall
be allowed a credit under this subsection (j) to be determined
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. For taxable years
ending on or after December 31, 2023, for partners and
shareholders of Subchapter S corporations, the provisions of
Section 251 shall apply with respect to the credit under this
subsection.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to each

SB3592 - 35 - LRB103 38956 SPS 69093 b
of the 5 taxable years following the year for which the credit
is first computed until it is used. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a liability,
the earliest credit arising under this subsection shall be
applied first. No carryforward credit may be claimed in any
tax year ending on or after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2027, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for increasing research activities in
this State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, for taxable years ending
before December 31, 2023, there shall be allowed a credit
under this subsection to be determined 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. For taxable years ending on or after December 31, 2023,

SB3592 - 36 - LRB103 38956 SPS 69093 b
for partners and shareholders of Subchapter S corporations,
the provisions of Section 251 shall apply with respect to the
credit under this subsection.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures
for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in
which incurred over qualifying expenditures for the base
period, "qualifying expenditures for the base period" means
the average of the qualifying expenditures for each year in
the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the
determination is being made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever
occurs first; provided that no credit earned in a tax year
ending prior to December 31, 2003 may be carried forward to any
year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest

SB3592 - 37 - LRB103 38956 SPS 69093 b
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from Public Act 91-644 in
construing this Section for taxable years beginning before
January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2027, including, but not
limited to, the period beginning on January 1, 2016 and ending
on July 6, 2017 (the effective date of Public Act 100-22). All
actions taken in reliance on the continuation of the credit
under this subsection (k) by any taxpayer are hereby
validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and
on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections

SB3592 - 38 - LRB103 38956 SPS 69093 b
(a) and (b) of this Section for certain amounts paid for
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs
approved by the Illinois Environmental Protection Agency
("Agency") under Section 58.14 of the Environmental
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. After the Pollution
Control Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue

SB3592 - 39 - LRB103 38956 SPS 69093 b
Code and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of
being a related taxpayer, as well as any of its partners.
The credit allowed against the tax imposed by subsections
(a) and (b) shall be equal to 25% of the unreimbursed
eligible remediation costs in excess of $100,000 per site,
except that the $100,000 threshold shall not apply to any
site contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year
with a maximum total of $150,000 per site. For partners
and shareholders of subchapter S corporations, there shall
be allowed a credit under this subsection to be determined
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.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year

SB3592 - 40 - LRB103 38956 SPS 69093 b
for which there is a liability. If there is a credit under
this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A
credit allowed under this subsection may be sold to a
buyer as part of a sale of all or part of the remediation
site for which the credit was granted. The purchaser of a
remediation site and the tax credit shall succeed to the
unused credit and remaining carry-forward period of the
seller. To perfect the transfer, the assignor shall record
the transfer in the chain of title for the site and provide
written notice to the Director of the Illinois Department
of Revenue of the assignor's intent to sell the
remediation site and the amount of the tax credit to be
transferred as a portion of the sale. In no event may a
credit be transferred to any taxpayer if the taxpayer or a
related party would not be eligible under the provisions
of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the
custodian of one or more qualifying pupils shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for qualified education expenses incurred on

SB3592 - 41 - LRB103 38956 SPS 69093 b
behalf of the qualifying pupils. The credit shall be equal to
25% of qualified education expenses, but in no event may the
total credit under this subsection claimed by a family that is
the custodian of qualifying pupils exceed (i) $500 for tax
years ending prior to December 31, 2017, and (ii) $750 for tax
years ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as
defined in this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is

SB3592 - 42 - LRB103 38956 SPS 69093 b
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify
for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31,
2006, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must

SB3592 - 43 - LRB103 38956 SPS 69093 b
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. Determinations as to
credit availability for purposes of this Section shall be
made consistent with rules adopted by the Pollution
Control Board pursuant to the Illinois Administrative
Procedure Act for the administration and enforcement of
Section 58.9 of the Environmental Protection Act. For
purposes of this Section, "taxpayer" includes a person
whose tax attributes the taxpayer has succeeded to under
Section 381 of the Internal Revenue Code and "related
party" includes the persons disallowed a deduction for
losses by paragraphs (b), (c), and (f)(1) of Section 267
of the Internal Revenue Code by virtue of being a related
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and (b)
shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year

SB3592 - 44 - LRB103 38956 SPS 69093 b
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available
to offset a liability, the earliest credit arising under
this subsection shall be applied first. A credit allowed
under this subsection may be sold to a buyer as part of a
sale of all or part of the remediation site for which the
credit was granted. The purchaser of a remediation site
and the tax credit shall succeed to the unused credit and
remaining carry-forward period of the seller. To perfect
the transfer, the assignor shall record the transfer in
the chain of title for the site and provide written notice
to the Director of the Illinois Department of Revenue of
the assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Program, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property

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used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Program Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a

SB3592 - 46 - LRB103 38956 SPS 69093 b
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in
which no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(p) Pass-through entity tax.
(1) For taxable years ending on or after December 31,
2021 and beginning prior to January 1, 2026, a partnership
(other than a publicly traded partnership under Section
7704 of the Internal Revenue Code) or Subchapter S
corporation may elect to apply the provisions of this
subsection. A separate election shall be made for each
taxable year. Such election shall be made at such time,
and in such form and manner as prescribed by the
Department, and, once made, is irrevocable.
(2) Entity-level tax. A partnership or Subchapter S
corporation electing to apply the provisions of this

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subsection shall be subject to a tax for the privilege of
earning or receiving income in this State in an amount
equal to 4.95% of the taxpayer's net income for the
taxable year.
(3) Net income defined.
(A) In general. For purposes of paragraph (2), the
term net income has the same meaning as defined in
Section 202 of this Act, except that, for tax years
ending on or after December 31, 2023, a deduction
shall be allowed in computing base income for
distributions to a retired partner to the extent that
the partner's distributions are exempt from tax under
Section 203(a)(2)(F) of this Act. In addition, the
following modifications shall not apply:
(i) the standard exemption allowed under
Section 204;
(ii) the deduction for net losses allowed
under Section 207;
(iii) in the case of an S corporation, the
modification under Section 203(b)(2)(S); and
(iv) in the case of a partnership, the
modifications under Section 203(d)(2)(H) and
Section 203(d)(2)(I).
(B) Special rule for tiered partnerships. If a
taxpayer making the election under paragraph (1) is a
partner of another taxpayer making the election under

SB3592 - 48 - LRB103 38956 SPS 69093 b
paragraph (1), net income shall be computed as
provided in subparagraph (A), except that the taxpayer
shall subtract its distributive share of the net
income of the electing partnership (including its
distributive share of the net income of the electing
partnership derived as a distributive share from
electing partnerships in which it is a partner).
(4) Credit for entity level tax. Each partner or
shareholder of a taxpayer making the election under this
Section shall be allowed a credit against the tax imposed
under subsections (a) and (b) of Section 201 of this Act
for the taxable year of the partnership or Subchapter S
corporation for which an election is in effect ending
within or with the taxable year of the partner or
shareholder in an amount equal to 4.95% times the partner
or shareholder's distributive share of the net income of
the electing partnership or Subchapter S corporation, but
not to exceed the partner's or shareholder's share of the
tax imposed under paragraph (1) which is actually paid by
the partnership or Subchapter S corporation. If the
taxpayer is a partnership or Subchapter S corporation that
is itself a partner of a partnership making the election
under paragraph (1), the credit under this paragraph shall
be allowed to the taxpayer's partners or shareholders (or
if the partner is a partnership or Subchapter S
corporation then its partners or shareholders) in

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accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. If the
amount of the credit allowed under this paragraph exceeds
the partner's or shareholder's liability for tax imposed
under subsections (a) and (b) of Section 201 of this Act
for the taxable year, such excess shall be treated as an
overpayment for purposes of Section 909 of this Act.
(5) Nonresidents. A nonresident individual who is a
partner or shareholder of a partnership or Subchapter S
corporation for a taxable year for which an election is in
effect under paragraph (1) shall not be required to file
an income tax return under this Act for such taxable year
if the only source of net income of the individual (or the
individual and the individual's spouse in the case of a
joint return) is from an entity making the election under
paragraph (1) and the credit allowed to the partner or
shareholder under paragraph (4) equals or exceeds the
individual's liability for the tax imposed under
subsections (a) and (b) of Section 201 of this Act for the
taxable year.
(6) Liability for tax. Except as provided in this
paragraph, a partnership or Subchapter S making the
election under paragraph (1) is liable for the
entity-level tax imposed under paragraph (2). If the
electing partnership or corporation fails to pay the full

SB3592 - 50 - LRB103 38956 SPS 69093 b
amount of tax deemed assessed under paragraph (2), the
partners or shareholders shall be liable to pay the tax
assessed (including penalties and interest). Each partner
or shareholder shall be liable for the unpaid assessment
based on the ratio of the partner's or shareholder's share
of the net income of the partnership over the total net
income of the partnership. If the partnership or
Subchapter S corporation fails to pay the tax assessed
(including penalties and interest) and thereafter an
amount of such tax is paid by the partners or
shareholders, such amount shall not be collected from the
partnership or corporation.
(7) Foreign tax. For purposes of the credit allowed
under Section 601(b)(3) of this Act, tax paid by a
partnership or Subchapter S corporation to another state
which, as determined by the Department, is substantially
similar to the tax imposed under this subsection, shall be
considered tax paid by the partner or shareholder to the
extent that the partner's or shareholder's share of the
income of the partnership or Subchapter S corporation
allocated and apportioned to such other state bears to the
total income of the partnership or Subchapter S
corporation allocated or apportioned to such other state.
(8) Suspension of withholding. The provisions of
Section 709.5 of this Act shall not apply to a partnership
or Subchapter S corporation for the taxable year for which

SB3592 - 51 - LRB103 38956 SPS 69093 b
an election under paragraph (1) is in effect.
(9) Requirement to pay estimated tax. For each taxable
year for which an election under paragraph (1) is in
effect, a partnership or Subchapter S corporation is
required to pay estimated tax for such taxable year under
Sections 803 and 804 of this Act if the amount payable as
estimated tax can reasonably be expected to exceed $500.
(10) The provisions of this subsection shall apply
only with respect to taxable years for which the
limitation on individual deductions applies under Section
164(b)(6) of the Internal Revenue Code.
(q) Local news organization exemption. A taxpayer that is
an eligible news journalist employer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
each qualified journalist hired by the eligible news
journalist employer during the taxable year.
For purposes of this subsection:
"Eligible news journalist employer" has the meaning
ascribed to the term "local news organization" in the
Strengthening Community Media Act.
"Qualified journalist" means a person:
(1) employed for an average of at least 30 hours per
week during a taxable year by an eligible news journalist
employer; and
(2) responsible for gathering, developing, preparing,
directing the recording of, producing, collecting,

SB3592 - 52 - LRB103 38956 SPS 69093 b
photographing, recording, writing, editing, reporting,
designing, presenting, distributing, or publishing
original news or information that concerns local,
regional, national, or international matters of public
interest.
(Source: P.A. 102-558, eff. 8-20-21; 102-658, eff. 8-27-21;
103-9, eff. 6-7-23; 103-396, eff. 1-1-24; revised 12-12-23.)
(35 ILCS 5/241 new)
Sec. 241. Local journalism employment support tax credit.
(a) As used in this Section:
"Eligible news journalist employer" has the meaning
ascribed to the term "local news organization" in the
Strengthening Community Media Act.
"Qualified journalist" means a person:
(1) employed for an average of at least 30 hours per
week during a taxable year by an eligible news journalist
employer; and
(2) responsible for gathering, developing, preparing,
directing the recording of, producing, collecting,
photographing, recording, writing, editing, reporting,
designing, presenting, distributing, or publishing
original news or information that concerns local,
regional, national, or international matters of public
interest.
(b) For the taxable years beginning on or after January 1,

SB3592 - 53 - LRB103 38956 SPS 69093 b
2025, an eligible news journalist employer is entitled to a
credit against the tax imposed by subsections (a) and (b) of
Section 201 of this Act in an amount equal to 50% of the wages
paid for up to 150 qualified journalists, but not to exceed a
total credit amount of $25,000 per qualifying journalist in a
single taxable year.
(c) If the amount of the credit exceeds the income tax
liability for the applicable tax year, then the excess credit
shall be refunded to the taxpayer. The amount of a refund shall
not be included in the taxpayer's income or resources for the
purposes of determining eligibility or benefit level in any
means-tested benefit program administered by a governmental
entity unless required by federal law.
(35 ILCS 5/242 new)
Sec. 242. Small business income tax credit for local
journalism advertising.
(a) As used in this Section:
"Advertising" means providing consideration for the
publication, dissemination, solicitation, or circulation or
visual, oral, or written communication to directly or
indirectly induce any person to purchase a good or service.
"Disqualified organization" means any organization:
(1) described in Section 502(c)(4) of the Internal
Revenue Code and exempt from taxation under Section 501(a)
of the Internal Revenue Code;

SB3592 - 54 - LRB103 38956 SPS 69093 b
(2) described in Section 527 of the Internal Revenue
Code; or
(3) owned or controlled by one or more organizations
described in Section 527 of the Internal Revenue Code.
"Eligible local news journalist employer" means any
employer that:
(1) is an eligible local newspaper; or
(2) is a qualifying broadcast station; and
(3) employs local news journalists.
"Eligible small business" means a business with fewer than
50 employees.
"Local newspaper" means a print or digital publication
that:
(1) primarily serves the needs of the State or a
regional or local community in the State;
(2) primarily has content derived from primary sources
relating to news and current events; and
(3) employs at least one journalist who resides in
this State and who regularly gathers, collects,
photographs, records, writes, or reports news or
information that concerns local events or other matters of
local public interest.
"Local broadcast station" means a broadcast entity
licensed by the Federal Communications Commission that:
(1) primarily serves the needs of the State or a
regional or local community within the State with news,

SB3592 - 55 - LRB103 38956 SPS 69093 b
weather, and emergency information;
(2) primarily has content derived from primary sources
relating to news and current events;
(3) employs at least one journalist who resides in
Illinois and who regularly gathers, collects, photographs,
records, writes, or reports news or information that
concerns local events of other matters or local public
interest.
(b) For the taxable years beginning on or after January 1,
2025, an eligible small business is entitled to a credit
against the tax imposed by subsections (a) and (b) of Section
201 of this Act in an amount equal to the amount paid by the
eligible small business to local newspapers or broadcasters
for advertising in this State, but not to exceed a total credit
amount of $2,500.
Section 95. The Higher Education Student Assistance Act is
amended by adding Section 65.125 as follows:
(110 ILCS 947/65.125 new)
Sec. 65.125. Journalism Student Scholarship Program.
(a) As used in this Section:
"Local news organization" has the meaning ascribed to that
term in the Strengthening Community Media Act.
"Qualified institution of higher learning" means a public
university or a public community college under the Public

SB3592 - 56 - LRB103 38956 SPS 69093 b
Community College Act.
(b) In order to encourage academically talented Illinois
students to pursue careers in journalism, especially in
underserved areas of the State, and to provide those students
with financial assistance to significantly increase the
likelihood that they will complete their full academic
commitment and elect to remain in Illinois to pursue a career
in journalism, subject to appropriation, the Commission shall
implement and administer the Journalism Student Scholarship
Program. The Commission shall annually award scholarships to
persons preparing to work in Illinois, with preference given
to those preparing to work in underserved areas. These
scholarships shall be awarded to individuals who make
application to the Commission and agree to sign an agreement
under which the recipient pledges that, within the 2-year
period following the termination of the academic program for
which the recipient was awarded a scholarship, the recipient
shall:
(1) begin working in journalism in this State for a
period of not less than 2 years;
(2) fulfill this obligation at local news
organization; and
(3) upon request of the Commission, provide the
Commission with evidence that he or she is fulfilling or
has fulfilled the terms of the teaching agreement provided
for in this subsection.

SB3592 - 57 - LRB103 38956 SPS 69093 b