| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Public Act 103-0268 | |
| 2 | 1 | HB2204 EnrolledLRB103 27545 KTG 53920 b HB2204 Enrolled LRB103 27545 KTG 53920 b | |
| 3 | 2 | HB2204 Enrolled LRB103 27545 KTG 53920 b | |
| 4 | - | AN ACT concerning State government. | |
| 5 | - | Be it enacted by the People of the State of Illinois, | |
| 6 | - | represented in the General Assembly: | |
| 7 | - | Section 1. Short title. This Act may be cited as the | |
| 8 | - | Hydrogen Fuel Replacement Tax Credit Act. | |
| 9 | - | Section 5. Legislative findings; purpose. The General | |
| 10 | - | Assembly finds that: | |
| 11 | - | (1) the health, welfare, and prosperity of all | |
| 12 | - | Illinois residents require that the State of Illinois act | |
| 13 | - | to reduce carbon emissions and other air pollutants in the | |
| 14 | - | State; | |
| 15 | - | (2) the State currently invests in a variety of | |
| 16 | - | strategies to reduce carbon emissions and other air | |
| 17 | - | pollutants, including, but not limited to, strategies that | |
| 18 | - | encourage the use of renewable energy, nuclear energy, | |
| 19 | - | energy efficient processes, and low-emission vehicles; | |
| 20 | - | (3) qualifying hydrogen can be produced through the | |
| 21 | - | electrolysis of water using electricity generated by | |
| 22 | - | emissions-free energy sources; | |
| 23 | - | (4) replacing fossil fuels and hydrogen produced from | |
| 24 | - | fossil fuels with qualifying hydrogen can reduce carbon | |
| 25 | - | emissions and other air pollutants and benefit the | |
| 26 | - | environment and public health of this State; and | |
| 3 | + | 1 AN ACT concerning State government. | |
| 4 | + | 2 Be it enacted by the People of the State of Illinois, | |
| 5 | + | 3 represented in the General Assembly: | |
| 6 | + | 4 Section 1. Short title. This Act may be cited as the | |
| 7 | + | 5 Hydrogen Fuel Replacement Tax Credit Act. | |
| 8 | + | 6 Section 5. Legislative findings; purpose. The General | |
| 9 | + | 7 Assembly finds that: | |
| 10 | + | 8 (1) the health, welfare, and prosperity of all | |
| 11 | + | 9 Illinois residents require that the State of Illinois act | |
| 12 | + | 10 to reduce carbon emissions and other air pollutants in the | |
| 13 | + | 11 State; | |
| 14 | + | 12 (2) the State currently invests in a variety of | |
| 15 | + | 13 strategies to reduce carbon emissions and other air | |
| 16 | + | 14 pollutants, including, but not limited to, strategies that | |
| 17 | + | 15 encourage the use of renewable energy, nuclear energy, | |
| 18 | + | 16 energy efficient processes, and low-emission vehicles; | |
| 19 | + | 17 (3) qualifying hydrogen can be produced through the | |
| 20 | + | 18 electrolysis of water using electricity generated by | |
| 21 | + | 19 emissions-free energy sources; | |
| 22 | + | 20 (4) replacing fossil fuels and hydrogen produced from | |
| 23 | + | 21 fossil fuels with qualifying hydrogen can reduce carbon | |
| 24 | + | 22 emissions and other air pollutants and benefit the | |
| 25 | + | 23 environment and public health of this State; and | |
| 27 | 26 | ||
| 28 | 27 | ||
| 29 | 28 | ||
| 30 | 29 | HB2204 Enrolled LRB103 27545 KTG 53920 b | |
| 31 | 30 | ||
| 32 | 31 | ||
| 33 | - | (5) qualifying hydrogen should be used only where it | |
| 34 | - | will reduce carbon emissions and other air pollutants and | |
| 35 | - | should primarily be used to replace hydrogen that is not | |
| 36 | - | qualifying hydrogen or in sectors where direct | |
| 37 | - | electrification is infeasible. | |
| 38 | - | This Act is intended to encourage the replacement of | |
| 39 | - | fossil fuels and hydrogen produced from fossil fuels with | |
| 40 | - | qualifying hydrogen for the purposes of promoting | |
| 41 | - | decarbonization and improving the State's air quality. | |
| 42 | - | Section 10. Definitions. As used in this Act: | |
| 43 | - | "Attestation" means a statement that is made under penalty | |
| 44 | - | of perjury by a producer under Section 27. | |
| 45 | - | "Department" means the Department of Commerce and Economic | |
| 46 | - | Opportunity. | |
| 47 | - | "Eligible taxpayer" means a taxpayer that: | |
| 48 | - | (1) is subject to subsections (a) and (b) of Section | |
| 49 | - | 201 of the Illinois Income Tax Act; | |
| 50 | - | (2) has eligible qualifying hydrogen use for which the | |
| 51 | - | producer has provided an attestation and verification | |
| 52 | - | under Section 27; | |
| 53 | - | (3) complies with subsections (e) and (f) of Section | |
| 54 | - | 15 if applicable; and | |
| 55 | - | (4) is allocated credits by the Department under | |
| 56 | - | Section 25. | |
| 57 | - | If the taxpayer is an individual, partnership, trust, | |
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| 33 | + | HB2204 Enrolled - 2 - LRB103 27545 KTG 53920 b | |
| 34 | + | 1 (5) qualifying hydrogen should be used only where it | |
| 35 | + | 2 will reduce carbon emissions and other air pollutants and | |
| 36 | + | 3 should primarily be used to replace hydrogen that is not | |
| 37 | + | 4 qualifying hydrogen or in sectors where direct | |
| 38 | + | 5 electrification is infeasible. | |
| 39 | + | 6 This Act is intended to encourage the replacement of | |
| 40 | + | 7 fossil fuels and hydrogen produced from fossil fuels with | |
| 41 | + | 8 qualifying hydrogen for the purposes of promoting | |
| 42 | + | 9 decarbonization and improving the State's air quality. | |
| 43 | + | 10 Section 10. Definitions. As used in this Act: | |
| 44 | + | 11 "Attestation" means a statement that is made under penalty | |
| 45 | + | 12 of perjury by a producer under Section 27. | |
| 46 | + | 13 "Department" means the Department of Commerce and Economic | |
| 47 | + | 14 Opportunity. | |
| 48 | + | 15 "Eligible taxpayer" means a taxpayer that: | |
| 49 | + | 16 (1) is subject to subsections (a) and (b) of Section | |
| 50 | + | 17 201 of the Illinois Income Tax Act; | |
| 51 | + | 18 (2) has eligible qualifying hydrogen use for which the | |
| 52 | + | 19 producer has provided an attestation and verification | |
| 53 | + | 20 under Section 27; | |
| 54 | + | 21 (3) complies with subsections (e) and (f) of Section | |
| 55 | + | 22 15 if applicable; and | |
| 56 | + | 23 (4) is allocated credits by the Department under | |
| 57 | + | 24 Section 25. | |
| 58 | + | 25 If the taxpayer is an individual, partnership, trust, | |
| 58 | 59 | ||
| 59 | 60 | ||
| 60 | - | estate, or Subchapter S corporation, then the taxpayer is an | |
| 61 | - | eligible taxpayer only to the extent that the taxpayer's | |
| 62 | - | Illinois income tax liability is due to an equity interest in a | |
| 63 | - | partnership that uses qualifying hydrogen, a Subchapter S | |
| 64 | - | corporation that uses qualifying hydrogen, or a similar | |
| 65 | - | pass-through entity that uses qualifying hydrogen. | |
| 66 | - | "Eligible qualifying hydrogen use" means the use, in | |
| 67 | - | Illinois, of qualifying hydrogen, except for the use of | |
| 68 | - | qualifying hydrogen in the following sectors or for the | |
| 69 | - | following purposes: | |
| 70 | - | (1) the use of qualifying hydrogen in all vehicles | |
| 71 | - | powered by combustion engines or in vehicles in classes 1, | |
| 72 | - | 2, 3, 4, 5, and 6 in the 8-category Gross Vehicle Weight | |
| 73 | - | Rating (GVWR) classification system, where Class 1 | |
| 74 | - | includes vehicles with a GVWR of less than 6,000 pounds | |
| 75 | - | (lbs); Class 2 includes vehicles with a GVWR of 6,001 to | |
| 76 | - | 10,000 lbs; Class 3 includes vehicles with a GVWR of | |
| 77 | - | 10,001 to 14,000 lbs; Class 4 includes vehicles with a | |
| 78 | - | GVWR of 14,001 to 16,000 lbs; Class 5 includes vehicles | |
| 79 | - | with a GVWR of 16,001 to 19,500 lbs; Class 6 includes | |
| 80 | - | vehicles with a GVWR of 19,501 to 26,000 lbs; Class 7 | |
| 81 | - | includes vehicles with a GVWR of 26,001 to 33,000 lbs; and | |
| 82 | - | Class 8 includes vehicles with a GVWR of greater than | |
| 83 | - | 33,001 lbs; | |
| 84 | - | (2) the use of qualifying hydrogen in heating or | |
| 85 | - | cooking in residential and commercial buildings, including | |
| 86 | 61 | ||
| 87 | 62 | ||
| 88 | - | space heating, water heating, and clothes drying, or in | |
| 89 | - | other cases where qualifying hydrogen is blended into the | |
| 90 | - | gas distribution system of a residential or commercial | |
| 91 | - | building; and | |
| 92 | - | (3) the use of qualifying hydrogen for the production | |
| 93 | - | of electricity generated using direct gas combustion, | |
| 94 | - | except when that use is (A) for the purpose of emissions | |
| 95 | - | reductions to achieve compliance with any rules or | |
| 96 | - | regulations promulgated by the United States Environmental | |
| 97 | - | Protection Agency, as interpreted and applied in State | |
| 98 | - | Implementation Plans under those rules and regulations, | |
| 99 | - | and (B) undertaken pursuant to an approved State | |
| 100 | - | Implementation Plan for the State of Illinois. | |
| 101 | - | "Environmental attribute credit" means a renewable energy | |
| 102 | - | credit, zero-emission credit, or carbon mitigation credit, as | |
| 103 | - | those terms are defined in Sections 1-10 and 1-75 of the | |
| 104 | - | Illinois Power Agency Act, or any other environmental | |
| 105 | - | attribute credit tracked by the Generation Attribute Tracking | |
| 106 | - | System administered by PJM Interconnection, LLC. | |
| 107 | - | "Equity investment eligible community" has the meaning | |
| 108 | - | provided in Section 5-5 of the Energy Transition Act. | |
| 109 | - | "MISO" means Midcontinent Independent System Operator, | |
| 110 | - | Inc. | |
| 111 | - | "MISO maximum generation event" has the same meaning as in | |
| 112 | - | MISO's Reliability Operating Procedures. | |
| 113 | - | "PJM" means PJM Interconnection, LLC, the regional | |
| 63 | + | ||
| 64 | + | HB2204 Enrolled - 2 - LRB103 27545 KTG 53920 b | |
| 114 | 65 | ||
| 115 | 66 | ||
| 116 | - | transmission organization (RTO) that coordinates the movement | |
| 117 | - | of wholesale electricity for portions of 13 states, including | |
| 118 | - | Illinois. | |
| 119 | - | "PJM performance assessment interval" has the same meaning | |
| 120 | - | as provided in the PJM Open Access Transmission Tariff. | |
| 121 | - | "Producer" means a producer of qualifying hydrogen. | |
| 122 | - | "Qualified renewable energy resource" means an electric | |
| 123 | - | generator that (1) is fueled by wind, solar thermal energy, | |
| 124 | - | photovoltaic cells and panels, geothermal energy, or | |
| 125 | - | hydropower that does not involve new construction or | |
| 126 | - | significant expansion of hydropower dams; and (2) produces | |
| 127 | - | renewable energy credits that are eligible to be counted | |
| 128 | - | toward the renewable energy requirements in subsection (c) of | |
| 129 | - | Section 1-75 of the Illinois Power Agency Act. | |
| 130 | - | "Qualifying hydrogen" means hydrogen that (i) receives | |
| 131 | - | 100% of the tax credit available under 26 U.S.C. 45V and (ii) | |
| 132 | - | meets the requirements of Section 27 of this Act. If any of the | |
| 133 | - | requirements of 26 U.S.C. 45v conflict with any of the | |
| 134 | - | requirements of Section 27, then the relevant requirement of | |
| 135 | - | Section 27 shall govern for purposes of determining | |
| 136 | - | eligibility for the allowable credit established under this | |
| 137 | - | Act. | |
| 138 | - | "Regional grid" means the territory served by a specific | |
| 139 | - | regional transmission organization. | |
| 140 | - | "Regional transmission organization" means PJM | |
| 141 | - | Interconnection, LLC; Midcontinent Independent System | |
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| 68 | + | HB2204 Enrolled - 3 - LRB103 27545 KTG 53920 b | |
| 69 | + | 1 estate, or Subchapter S corporation, then the taxpayer is an | |
| 70 | + | 2 eligible taxpayer only to the extent that the taxpayer's | |
| 71 | + | 3 Illinois income tax liability is due to an equity interest in a | |
| 72 | + | 4 partnership that uses qualifying hydrogen, a Subchapter S | |
| 73 | + | 5 corporation that uses qualifying hydrogen, or a similar | |
| 74 | + | 6 pass-through entity that uses qualifying hydrogen. | |
| 75 | + | 7 "Eligible qualifying hydrogen use" means the use, in | |
| 76 | + | 8 Illinois, of qualifying hydrogen, except for the use of | |
| 77 | + | 9 qualifying hydrogen in the following sectors or for the | |
| 78 | + | 10 following purposes: | |
| 79 | + | 11 (1) the use of qualifying hydrogen in all vehicles | |
| 80 | + | 12 powered by combustion engines or in vehicles in classes 1, | |
| 81 | + | 13 2, 3, 4, 5, and 6 in the 8-category Gross Vehicle Weight | |
| 82 | + | 14 Rating (GVWR) classification system, where Class 1 | |
| 83 | + | 15 includes vehicles with a GVWR of less than 6,000 pounds | |
| 84 | + | 16 (lbs); Class 2 includes vehicles with a GVWR of 6,001 to | |
| 85 | + | 17 10,000 lbs; Class 3 includes vehicles with a GVWR of | |
| 86 | + | 18 10,001 to 14,000 lbs; Class 4 includes vehicles with a | |
| 87 | + | 19 GVWR of 14,001 to 16,000 lbs; Class 5 includes vehicles | |
| 88 | + | 20 with a GVWR of 16,001 to 19,500 lbs; Class 6 includes | |
| 89 | + | 21 vehicles with a GVWR of 19,501 to 26,000 lbs; Class 7 | |
| 90 | + | 22 includes vehicles with a GVWR of 26,001 to 33,000 lbs; and | |
| 91 | + | 23 Class 8 includes vehicles with a GVWR of greater than | |
| 92 | + | 24 33,001 lbs; | |
| 93 | + | 25 (2) the use of qualifying hydrogen in heating or | |
| 94 | + | 26 cooking in residential and commercial buildings, including | |
| 142 | 95 | ||
| 143 | 96 | ||
| 144 | - | Operator; or any other entity charged with regional real-time | |
| 145 | - | balancing of electricity generation and load. | |
| 146 | - | "Zero-emission facility" has the same meaning as provided | |
| 147 | - | in Section 1-10 of the Illinois Power Agency Act as that Act | |
| 148 | - | exists on the effective date of this Act. | |
| 149 | - | Section 15. Allowable credit. | |
| 150 | - | (a) For tax years ending on or after December 31, 2027 and | |
| 151 | - | beginning before January 1, 2029, a credit is allowed against | |
| 152 | - | the taxes imposed on an eligible taxpayer under subsections | |
| 153 | - | (a) and (b) of Section 201 of the Illinois Income Tax Act in an | |
| 154 | - | amount equal to $1 per kilogram of eligible qualifying | |
| 155 | - | hydrogen used by the eligible taxpayer during the immediately | |
| 156 | - | preceding calendar year. If the use of the qualifying hydrogen | |
| 157 | - | by a taxpayer occurs in or impacts one or more equity | |
| 158 | - | investment eligible communities, then, to be eligible for this | |
| 159 | - | credit, the taxpayer must submit to the Department and make | |
| 160 | - | publicly available documentation that demonstrates that the | |
| 161 | - | use has led to a net reduction of negative environmental | |
| 162 | - | impacts in each impacted equity investment eligible community | |
| 163 | - | and demonstrates that all application requirements detailed in | |
| 164 | - | this Act, including those in subsection (c), have been met for | |
| 165 | - | the year in which the credit is sought. Those impacts shall | |
| 166 | - | include direct, indirect, and cumulative impacts, including, | |
| 167 | - | but not limited to, impacts from using, transporting, and | |
| 168 | - | storing qualifying hydrogen, and impacts to air, water, | |
| 169 | 97 | ||
| 170 | 98 | ||
| 171 | - | traffic, noise, and public health. This documentation must be | |
| 172 | - | specific, quantifiable, measurable, and verifiable. Continued | |
| 173 | - | receipt of tax credits is contingent upon the taxpayer making | |
| 174 | - | this demonstration each year. Failure to demonstrate a | |
| 175 | - | reduction of negative environmental impacts in each impacted | |
| 176 | - | equity investment eligible community shall result in the | |
| 177 | - | denial or forfeiture of tax credits. | |
| 178 | - | (b) The allowable credit provided in subsection (a) of | |
| 179 | - | this Section shall be increased by $0.15 per kilogram of | |
| 180 | - | eligible qualifying hydrogen for eligible qualifying hydrogen | |
| 181 | - | use impacting one or more equity investment eligible | |
| 182 | - | communities if an eligible taxpayer specifically, | |
| 183 | - | quantifiably, and verifiably demonstrates that the eligible | |
| 184 | - | qualifying hydrogen use satisfies both of the following | |
| 185 | - | criteria for the preceding tax year: | |
| 186 | - | (1) The eligible taxpayer's project workforce meets | |
| 187 | - | the minimum equity standards for equity eligible persons | |
| 188 | - | and equity eligible contractors determined by the Illinois | |
| 189 | - | Power Agency pursuant to subsection (c-10) of Section 1-75 | |
| 190 | - | of the Illinois Power Agency Act. This requirement shall | |
| 191 | - | apply to both construction employment and ongoing | |
| 192 | - | employment in areas such as, but not limited to, | |
| 193 | - | operations, production, and maintenance. | |
| 194 | - | (2) At least 40% of the total benefits provided by the | |
| 195 | - | use are received by the equity investment eligible | |
| 196 | - | communities impacted by the eligible qualifying hydrogen | |
| 99 | + | ||
| 100 | + | HB2204 Enrolled - 3 - LRB103 27545 KTG 53920 b | |
| 197 | 101 | ||
| 198 | 102 | ||
| 199 | - | use. Benefits to be considered shall include, but are not | |
| 200 | - | limited to: a decrease in the percentage of household | |
| 201 | - | income spent on energy costs; a decrease in environmental | |
| 202 | - | exposures and burdens; an increase in access to low-cost | |
| 203 | - | capital; an increase in employment and job training for | |
| 204 | - | residents; an increase in clean energy enterprise creation | |
| 205 | - | and contracting; increases in community energy ownership; | |
| 206 | - | increased parity in clean energy technology and adoption; | |
| 207 | - | and an increase in energy resilience. As used in this item | |
| 208 | - | (2), "energy resilience" means the ability to operate | |
| 209 | - | energy services in response to a major disruption. | |
| 210 | - | Employment and contracting benefits provided pursuant to | |
| 211 | - | paragraph (1) shall count toward this 40% requirement. | |
| 212 | - | (c) The Department shall develop an application process | |
| 213 | - | for tax credits under this Section that provides meaningful, | |
| 214 | - | timely, and effective public notice of a tax credit | |
| 215 | - | application to members of impacted communities, accounting for | |
| 216 | - | linguistic needs and other relevant characteristics, and | |
| 217 | - | provides meaningful opportunity for public comment on any tax | |
| 218 | - | credit application. The public notice and tax credit | |
| 219 | - | application shall be translated into non-English languages in | |
| 220 | - | impacted communities where a language other than English is | |
| 221 | - | widely spoken. The notice must, at a minimum, include all of | |
| 222 | - | the following: the name of the applicant, the location of the | |
| 223 | - | use, a brief description of the use and its impacts, and a link | |
| 224 | - | to a website where the application and more detailed | |
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| 104 | + | HB2204 Enrolled - 4 - LRB103 27545 KTG 53920 b | |
| 105 | + | 1 space heating, water heating, and clothes drying, or in | |
| 106 | + | 2 other cases where qualifying hydrogen is blended into the | |
| 107 | + | 3 gas distribution system of a residential or commercial | |
| 108 | + | 4 building; and | |
| 109 | + | 5 (3) the use of qualifying hydrogen for the production | |
| 110 | + | 6 of electricity generated using direct gas combustion, | |
| 111 | + | 7 except when that use is (A) for the purpose of emissions | |
| 112 | + | 8 reductions to achieve compliance with any rules or | |
| 113 | + | 9 regulations promulgated by the United States Environmental | |
| 114 | + | 10 Protection Agency, as interpreted and applied in State | |
| 115 | + | 11 Implementation Plans under those rules and regulations, | |
| 116 | + | 12 and (B) undertaken pursuant to an approved State | |
| 117 | + | 13 Implementation Plan for the State of Illinois. | |
| 118 | + | 14 "Environmental attribute credit" means a renewable energy | |
| 119 | + | 15 credit, zero-emission credit, or carbon mitigation credit, as | |
| 120 | + | 16 those terms are defined in Sections 1-10 and 1-75 of the | |
| 121 | + | 17 Illinois Power Agency Act, or any other environmental | |
| 122 | + | 18 attribute credit tracked by the Generation Attribute Tracking | |
| 123 | + | 19 System administered by PJM Interconnection, LLC. | |
| 124 | + | 20 "Equity investment eligible community" has the meaning | |
| 125 | + | 21 provided in Section 5-5 of the Energy Transition Act. | |
| 126 | + | 22 "MISO" means Midcontinent Independent System Operator, | |
| 127 | + | 23 Inc. | |
| 128 | + | 24 "MISO maximum generation event" has the same meaning as in | |
| 129 | + | 25 MISO's Reliability Operating Procedures. | |
| 130 | + | 26 "PJM" means PJM Interconnection, LLC, the regional | |
| 225 | 131 | ||
| 226 | 132 | ||
| 227 | - | information on the use and its impacts can be found. The notice | |
| 228 | - | shall be written at a third or fourth grade reading level to | |
| 229 | - | ensure ease of understanding for all members of the public. | |
| 230 | - | The opportunity for public comment must, at a minimum, include | |
| 231 | - | a public meeting held in a location within an impacted equity | |
| 232 | - | investment community and easily accessible to residents of | |
| 233 | - | other impacted equity investment eligible communities. Such | |
| 234 | - | public meeting shall be held not less than 30 days after public | |
| 235 | - | notice is provided and not less than 30 days before a decision | |
| 236 | - | is made on the application. The Department shall consider | |
| 237 | - | comments received when determining whether the requirements of | |
| 238 | - | this Section have been met. Applications, supporting | |
| 239 | - | materials, and comments submitted with respect to applications | |
| 240 | - | shall be maintained on the Department website in a publicly | |
| 241 | - | accessible manner. | |
| 242 | - | (d) An eligible taxpayer may not earn tax credits for a tax | |
| 243 | - | year for eligible qualifying hydrogen use in an amount that | |
| 244 | - | exceeds the amount of tax credit allocated to it for the tax | |
| 245 | - | year under Section 25. If the amount of the credit exceeds the | |
| 246 | - | tax liability for the year, the excess may be carried forward | |
| 247 | - | and applied to the tax liability of the 5 taxable years | |
| 248 | - | following the excess credit year. The credit shall be applied | |
| 249 | - | to the earliest year for which there is a tax liability. If | |
| 250 | - | there are credits from more than one tax year that are | |
| 251 | - | available to offset a liability, the earlier credit shall be | |
| 252 | - | applied first. In no event shall a credit under this Section | |
| 253 | 133 | ||
| 254 | 134 | ||
| 255 | - | reduce the taxpayer's liability to less than zero. | |
| 256 | - | (e) Labor performed on or after the effective date of this | |
| 257 | - | Act to convert the eligible taxpayer's existing equipment or | |
| 258 | - | to install new equipment for the eligible taxpayer to enable | |
| 259 | - | eligible qualifying hydrogen use for which a credit is claimed | |
| 260 | - | under this Act shall be performed by general contractors that | |
| 261 | - | enter into a project labor agreement, as defined by the | |
| 262 | - | Illinois Power Agency Act, prior to construction. The project | |
| 263 | - | labor agreement shall be filed with the Department. | |
| 264 | - | (f) Notwithstanding any provision of law to the contrary, | |
| 265 | - | any eligible taxpayer receiving tax credits under this Act | |
| 266 | - | shall be required to enter into a labor peace agreement with | |
| 267 | - | any bona fide labor organization that represents or is | |
| 268 | - | attempting to represent any of its employees. | |
| 269 | - | Section 20. Credit availability; applications. | |
| 270 | - | (a) The total amount of tax credits that may be allocated | |
| 271 | - | by the Department to taxpayers for eligible qualifying | |
| 272 | - | hydrogen use occurring in a calendar year shall not exceed | |
| 273 | - | $10,000,000 per year, plus the amount of tax credits that were | |
| 274 | - | available under this Section to be allocated for eligible | |
| 275 | - | qualifying hydrogen use in the immediately preceding calendar | |
| 276 | - | year but were not allocated. | |
| 277 | - | (b) In order to qualify for a tax credit under this Act, | |
| 278 | - | the applicant must apply with the Department on a form | |
| 279 | - | prescribed by the Department by rule. The application shall | |
| 135 | + | ||
| 136 | + | HB2204 Enrolled - 4 - LRB103 27545 KTG 53920 b | |
| 280 | 137 | ||
| 281 | 138 | ||
| 282 | - | contain information necessary to calculate the tax credit and | |
| 283 | - | any additional information required by the Department. | |
| 284 | - | (c) Upon satisfactory review of the application, the | |
| 285 | - | Department shall issue a tax credit certificate to the | |
| 286 | - | applicant stating the amount of the tax credit to which the | |
| 287 | - | applicant is entitled. The certificate shall be attached to | |
| 288 | - | the applicant's income tax return under the Illinois Income | |
| 289 | - | Tax Act. | |
| 290 | - | Section 25. Credit allocation by the Department. | |
| 291 | - | (a) As part of its application under Section 20, the | |
| 292 | - | taxpayer shall certify to the Department the amount of | |
| 293 | - | eligible qualifying hydrogen, in kilograms, used during the | |
| 294 | - | immediately preceding calendar year for which the application | |
| 295 | - | is filed. | |
| 296 | - | (b) The Department shall notify each taxpayer of the | |
| 297 | - | dollar amount of credit allocated to that taxpayer under this | |
| 298 | - | Act. The taxpayer must notify the Department within 30 days | |
| 299 | - | after the notification by the Department under this subsection | |
| 300 | - | (b) if it wishes to surrender its allocation. | |
| 301 | - | (c) In each State fiscal year for which tax credits are | |
| 302 | - | available pursuant to this Act, the Department shall not | |
| 303 | - | allocate more than 10% of the total amount of tax credits | |
| 304 | - | available under this Act to the use of qualifying hydrogen for | |
| 305 | - | electricity generation that uses direct gas combustion. | |
| 306 | - | (d) Subject to the limitations of this Section and | |
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| 140 | + | HB2204 Enrolled - 5 - LRB103 27545 KTG 53920 b | |
| 141 | + | 1 transmission organization (RTO) that coordinates the movement | |
| 142 | + | 2 of wholesale electricity for portions of 13 states, including | |
| 143 | + | 3 Illinois. | |
| 144 | + | 4 "PJM performance assessment interval" has the same meaning | |
| 145 | + | 5 as provided in the PJM Open Access Transmission Tariff. | |
| 146 | + | 6 "Producer" means a producer of qualifying hydrogen. | |
| 147 | + | 7 "Qualified renewable energy resource" means an electric | |
| 148 | + | 8 generator that (1) is fueled by wind, solar thermal energy, | |
| 149 | + | 9 photovoltaic cells and panels, geothermal energy, or | |
| 150 | + | 10 hydropower that does not involve new construction or | |
| 151 | + | 11 significant expansion of hydropower dams; and (2) produces | |
| 152 | + | 12 renewable energy credits that are eligible to be counted | |
| 153 | + | 13 toward the renewable energy requirements in subsection (c) of | |
| 154 | + | 14 Section 1-75 of the Illinois Power Agency Act. | |
| 155 | + | 15 "Qualifying hydrogen" means hydrogen that (i) receives | |
| 156 | + | 16 100% of the tax credit available under 26 U.S.C. 45V and (ii) | |
| 157 | + | 17 meets the requirements of Section 27 of this Act. If any of the | |
| 158 | + | 18 requirements of 26 U.S.C. 45v conflict with any of the | |
| 159 | + | 19 requirements of Section 27, then the relevant requirement of | |
| 160 | + | 20 Section 27 shall govern for purposes of determining | |
| 161 | + | 21 eligibility for the allowable credit established under this | |
| 162 | + | 22 Act. | |
| 163 | + | 23 "Regional grid" means the territory served by a specific | |
| 164 | + | 24 regional transmission organization. | |
| 165 | + | 25 "Regional transmission organization" means PJM | |
| 166 | + | 26 Interconnection, LLC; Midcontinent Independent System | |
| 307 | 167 | ||
| 308 | 168 | ||
| 309 | - | Sections 20 and 30, the amount of the credit allocated to a | |
| 310 | - | taxpayer by the Department in subsection (b) of this Section | |
| 311 | - | shall be the maximum credit that the taxpayer is permitted to | |
| 312 | - | earn for the calendar year. | |
| 313 | - | (e) Allocations may not be rolled forward to a subsequent | |
| 314 | - | year. | |
| 315 | - | Section 27. Attestation and verification required. | |
| 316 | - | (a) Each taxpayer seeking credits under this Act shall | |
| 317 | - | submit with its application for credits under this Act an | |
| 318 | - | attestation from the producer, made under penalty of perjury. | |
| 319 | - | The attestation shall also confirm that the hydrogen for which | |
| 320 | - | a tax credit is claimed has not been produced during an | |
| 321 | - | applicable PJM performance assessment interval or an | |
| 322 | - | applicable MISO maximum generation event. Each taxpayer | |
| 323 | - | seeking credits under this Act shall also be required to | |
| 324 | - | submit to the Department, at the time of the tax filing for the | |
| 325 | - | applicable year, documentation verifying the facts set forth | |
| 326 | - | in the attestation required by this Section. | |
| 327 | - | (b) Each taxpayer seeking credits under this Act shall | |
| 328 | - | submit with its application for credits under this Act | |
| 329 | - | documentation verifiably demonstrating that the hydrogen use | |
| 330 | - | or uses for which the tax credit is sought was entirely used | |
| 331 | - | for an eligible qualifying hydrogen use, as defined in Section | |
| 332 | - | 10 of this Act. | |
| 333 | - | (c) Each taxpayer seeking credits under this Act shall | |
| 334 | 169 | ||
| 335 | 170 | ||
| 336 | - | submit with its application for credits under this Act | |
| 337 | - | verifiable documentation of the following information, to be | |
| 338 | - | provided to the taxpayer by the producer: | |
| 339 | - | (i) the type of power generation used to produce the | |
| 340 | - | qualifying hydrogen during each hour that the qualifying | |
| 341 | - | hydrogen was produced, if this information is available; | |
| 342 | - | (ii) the year or years in which the power generation | |
| 343 | - | source or sources identified in item (i) went into | |
| 344 | - | operation; | |
| 345 | - | (iii) if the power generation identified in item (i) | |
| 346 | - | would have been curtailed or otherwise would not have | |
| 347 | - | occurred but for the production of qualifying hydrogen, to | |
| 348 | - | the extent determined by PJM, MISO, or another grid | |
| 349 | - | operator; and | |
| 350 | - | (iv) to the extent available, the marginal emissions | |
| 351 | - | intensity of the regional grid in the same location where | |
| 352 | - | the qualifying hydrogen was produced during each hour that | |
| 353 | - | the qualifying hydrogen was produced, as determined by the | |
| 354 | - | marginal fuel type reported by PJM, MISO, or another grid | |
| 355 | - | operator, as appropriate, and an average emissions | |
| 356 | - | intensity for that fuel. | |
| 357 | - | Section 30. Prioritization of tax credit allocation. If | |
| 358 | - | the total amount of tax credits sought by taxpayers under | |
| 359 | - | Section 25 exceeds the total amount of tax credits that are | |
| 360 | - | allowed to be allocated under Section 20, the Department shall | |
| 171 | + | ||
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| 361 | 173 | ||
| 362 | 174 | ||
| 363 | - | prioritize allocation as follows: | |
| 364 | - | (1) Up to 90% of the tax credits shall be allocated to | |
| 365 | - | the following eligible taxpayers in proportion to their | |
| 366 | - | requested allocation up to their requested allocation: | |
| 367 | - | (A) taxpayers who participate in a United States | |
| 368 | - | Department of Energy Hydrogen Hub for their associated | |
| 369 | - | eligible qualifying hydrogen use; | |
| 370 | - | (B) taxpayers who purchase hydrogen from a | |
| 371 | - | participant in a United States Department of Energy | |
| 372 | - | Hydrogen Hub for their associated qualifying hydrogen | |
| 373 | - | use; or | |
| 374 | - | (C) taxpayers who purchase electricity to produce | |
| 375 | - | and use qualifying hydrogen from a participant in a | |
| 376 | - | United States Department of Energy Hydrogen Hub for | |
| 377 | - | their associated eligible qualifying hydrogen use. | |
| 378 | - | (2) Next, any remaining credits shall be allocated to | |
| 379 | - | eligible taxpayers who do not qualify under paragraph (1); | |
| 380 | - | however, if there are insufficient remaining credits | |
| 381 | - | available to make the allocations under this paragraph | |
| 382 | - | (2), then the remaining credits shall be allocated in | |
| 383 | - | proportion to the requested allocation up to the eligible | |
| 384 | - | taxpayer's requested allocation. | |
| 385 | - | (3) Next, any remaining credits shall be allocated to | |
| 386 | - | taxpayers in proportion to their requested allocation, up | |
| 387 | - | to their requested allocation, excluding any amount | |
| 388 | - | already allocated to a taxpayer pursuant to subsections | |
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| 177 | + | 1 Operator; or any other entity charged with regional real-time | |
| 178 | + | 2 balancing of electricity generation and load. | |
| 179 | + | 3 "Zero-emission facility" has the same meaning as provided | |
| 180 | + | 4 in Section 1-10 of the Illinois Power Agency Act as that Act | |
| 181 | + | 5 exists on the effective date of this Act. | |
| 182 | + | 6 Section 15. Allowable credit. | |
| 183 | + | 7 (a) For tax years ending on or after December 31, 2027 and | |
| 184 | + | 8 beginning before January 1, 2029, a credit is allowed against | |
| 185 | + | 9 the taxes imposed on an eligible taxpayer under subsections | |
| 186 | + | 10 (a) and (b) of Section 201 of the Illinois Income Tax Act in an | |
| 187 | + | 11 amount equal to $1 per kilogram of eligible qualifying | |
| 188 | + | 12 hydrogen used by the eligible taxpayer during the immediately | |
| 189 | + | 13 preceding calendar year. If the use of the qualifying hydrogen | |
| 190 | + | 14 by a taxpayer occurs in or impacts one or more equity | |
| 191 | + | 15 investment eligible communities, then, to be eligible for this | |
| 192 | + | 16 credit, the taxpayer must submit to the Department and make | |
| 193 | + | 17 publicly available documentation that demonstrates that the | |
| 194 | + | 18 use has led to a net reduction of negative environmental | |
| 195 | + | 19 impacts in each impacted equity investment eligible community | |
| 196 | + | 20 and demonstrates that all application requirements detailed in | |
| 197 | + | 21 this Act, including those in subsection (c), have been met for | |
| 198 | + | 22 the year in which the credit is sought. Those impacts shall | |
| 199 | + | 23 include direct, indirect, and cumulative impacts, including, | |
| 200 | + | 24 but not limited to, impacts from using, transporting, and | |
| 201 | + | 25 storing qualifying hydrogen, and impacts to air, water, | |
| 389 | 202 | ||
| 390 | 203 | ||
| 391 | - | (1) and (2) of this Section. | |
| 392 | - | (4) Finally, any remaining credits shall be allocated | |
| 393 | - | to taxpayers receiving an allocation pursuant to | |
| 394 | - | subsection (1) in proportion to their requested | |
| 395 | - | allocation, such that the allocation provided under | |
| 396 | - | subsection (1) and subsection (4) combined does not exceed | |
| 397 | - | their requested allocation. | |
| 398 | - | Section 35. Transfer of credits. A transfer of credits | |
| 399 | - | earned under this Act may be made, in accordance with rules | |
| 400 | - | adopted by the Department, by the taxpayer earning the credits | |
| 401 | - | within one year after the credits are awarded. The Department | |
| 402 | - | shall issue a certificate of transfer to each transferor and | |
| 403 | - | transferee, identifying the amount of the credit transferred. | |
| 404 | - | The transfer certificate shall be attached to the transferor's | |
| 405 | - | and transferee's income tax return under the Illinois Income | |
| 406 | - | Tax Act. | |
| 407 | - | Section 36. Analysis of hydrogen production and | |
| 408 | - | utilization. | |
| 409 | - | (a) No later than April 1, 2028, the Illinois | |
| 410 | - | Environmental Protection Agency, in consultation with the | |
| 411 | - | Department, the Illinois Power Agency, the Illinois Commerce | |
| 412 | - | Commission, and other State agencies, as needed, shall publish | |
| 413 | - | a report analyzing the greenhouse gas and copollutant | |
| 414 | - | emissions impacts of hydrogen production and utilization in | |
| 415 | 204 | ||
| 416 | 205 | ||
| 417 | - | the State from January 1, 2026 through December 31, 2027. The | |
| 418 | - | report shall separately measure each of the following: | |
| 419 | - | (1) life-cycle greenhouse gas and copollutant emission | |
| 420 | - | impacts of producing qualifying hydrogen; | |
| 421 | - | (2) life-cycle greenhouse gas and copollutant emission | |
| 422 | - | impacts of eligible qualifying hydrogen use for which an | |
| 423 | - | eligible taxpayer receives a credit under this Act; | |
| 424 | - | (3) any greenhouse gas and copollutant emissions | |
| 425 | - | avoided by eligible use of qualifying hydrogen, such as by | |
| 426 | - | displacing diesel in long-haul, heavy-duty trucking and | |
| 427 | - | displacing hydrogen created using fossil fuel feedstock or | |
| 428 | - | through electrolysis powered by fossil-fuel generated | |
| 429 | - | electricity, where avoidance can be determined with | |
| 430 | - | reasonable certainty; and | |
| 431 | - | (4) economic activity and jobs attributable to | |
| 432 | - | investments in qualifying hydrogen production and eligible | |
| 433 | - | qualifying hydrogen use in the State across sectors. | |
| 434 | - | The report shall also include the following separate | |
| 435 | - | provisions: | |
| 436 | - | (1) an analysis of opportunities to increase the | |
| 437 | - | production of qualifying hydrogen from electrolysis that | |
| 438 | - | is powered entirely by electricity generated from | |
| 439 | - | qualified renewable energy resources in the State; | |
| 440 | - | (2) a comparison of the cost of qualifying hydrogen to | |
| 441 | - | the cost of hydrogen produced from fossil fuels; | |
| 442 | - | (3) an analysis of whether energy sources other than | |
| 206 | + | ||
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| 443 | 208 | ||
| 444 | 209 | ||
| 445 | - | hydrogen are available alternatives for qualified uses, | |
| 446 | - | and if so, whether those alternatives would achieve | |
| 447 | - | greater emissions reductions, economic savings, or both; | |
| 448 | - | (4) an analysis of the efficacy of this tax credit at | |
| 449 | - | incentivizing the transition of industries with eligible | |
| 450 | - | uses to use clean hydrogen as a means of decarbonization; | |
| 451 | - | (5) an analysis of Illinois' competitiveness in the | |
| 452 | - | clean hydrogen economy relative to other states; this | |
| 453 | - | analysis shall include, but not be limited to, a review of | |
| 454 | - | the Department of Energy's Hydrogen Hub awards, other | |
| 455 | - | states' incentives for clean hydrogen, the amount of | |
| 456 | - | eligible use of clean hydrogen in Illinois relative to | |
| 457 | - | other states, and the amount of production of clean | |
| 458 | - | hydrogen in Illinois relative to other states; this | |
| 459 | - | analysis should also recommend policy changes the State | |
| 460 | - | can make to be more competitive with other states in the | |
| 461 | - | clean hydrogen economy to the extent that such | |
| 462 | - | competitiveness is consistent with the State's emissions | |
| 463 | - | reductions goals and is economically beneficial; | |
| 464 | - | (6) an analysis of areas where clean hydrogen use, | |
| 465 | - | clean energy use, or both can increase emissions | |
| 466 | - | reduction, and policy measures the State can take to | |
| 467 | - | incentivize those uses, including, but not limited to, an | |
| 468 | - | extension of this tax credit and changes to the total | |
| 469 | - | annual amount of this tax credit; and | |
| 470 | - | (7) an analysis of the expected arc of production, | |
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| 212 | + | 1 traffic, noise, and public health. This documentation must be | |
| 213 | + | 2 specific, quantifiable, measurable, and verifiable. Continued | |
| 214 | + | 3 receipt of tax credits is contingent upon the taxpayer making | |
| 215 | + | 4 this demonstration each year. Failure to demonstrate a | |
| 216 | + | 5 reduction of negative environmental impacts in each impacted | |
| 217 | + | 6 equity investment eligible community shall result in the | |
| 218 | + | 7 denial or forfeiture of tax credits. | |
| 219 | + | 8 (b) The allowable credit provided in subsection (a) of | |
| 220 | + | 9 this Section shall be increased by $0.15 per kilogram of | |
| 221 | + | 10 eligible qualifying hydrogen for eligible qualifying hydrogen | |
| 222 | + | 11 use impacting one or more equity investment eligible | |
| 223 | + | 12 communities if an eligible taxpayer specifically, | |
| 224 | + | 13 quantifiably, and verifiably demonstrates that the eligible | |
| 225 | + | 14 qualifying hydrogen use satisfies both of the following | |
| 226 | + | 15 criteria for the preceding tax year: | |
| 227 | + | 16 (1) The eligible taxpayer's project workforce meets | |
| 228 | + | 17 the minimum equity standards for equity eligible persons | |
| 229 | + | 18 and equity eligible contractors determined by the Illinois | |
| 230 | + | 19 Power Agency pursuant to subsection (c-10) of Section 1-75 | |
| 231 | + | 20 of the Illinois Power Agency Act. This requirement shall | |
| 232 | + | 21 apply to both construction employment and ongoing | |
| 233 | + | 22 employment in areas such as, but not limited to, | |
| 234 | + | 23 operations, production, and maintenance. | |
| 235 | + | 24 (2) At least 40% of the total benefits provided by the | |
| 236 | + | 25 use are received by the equity investment eligible | |
| 237 | + | 26 communities impacted by the eligible qualifying hydrogen | |
| 471 | 238 | ||
| 472 | 239 | ||
| 473 | - | relative costs of different methods of hydrogen | |
| 474 | - | production, relative costs and emissions reductions | |
| 475 | - | benefits of clean energy produced by other methods, | |
| 476 | - | including renewables, for eligible and other uses to help | |
| 477 | - | right-size the total tax credit amount. | |
| 478 | - | The Illinois Environmental Protection Agency may consider | |
| 479 | - | application and attestation information provided by eligible | |
| 480 | - | taxpayers pursuant to this Act and any other data it deems | |
| 481 | - | relevant. | |
| 482 | - | Data relied upon for the report and methods of measurement | |
| 483 | - | shall be identified in the report and be made publicly | |
| 484 | - | available in easily accessible, machine-readable format. | |
| 485 | - | The Illinois Environmental Protection Agency shall | |
| 486 | - | determine and state in its report the impact of the production | |
| 487 | - | of qualifying hydrogen and eligible qualifying hydrogen uses | |
| 488 | - | receiving a tax credit pursuant to this Act on greenhouse gas | |
| 489 | - | and copollutant emissions. | |
| 490 | - | (b) A draft of the report shall be made available for | |
| 491 | - | public comment no less than 30 days prior to its final | |
| 492 | - | publication. The final report and comments received shall be | |
| 493 | - | made publicly available in both English and Spanish, and | |
| 494 | - | copies of the final report shall be filed with the General | |
| 495 | - | Assembly and the Governor. | |
| 496 | - | Section 37. Rules. The Department may adopt rules to | |
| 497 | - | implement and administer this Act. | |
| 498 | 240 | ||
| 499 | 241 | ||
| 500 | - | Section 40. Severability. If any provision of this Act or | |
| 501 | - | its application to any person or circumstance is held invalid, | |
| 502 | - | the invalidity of that provision or application does not | |
| 503 | - | affect other provisions or applications of this Act that can | |
| 504 | - | be given effect without the invalid provision or application. | |
| 505 | - | Section 900. The Illinois Income Tax Act is amended by | |
| 506 | - | adding Section 240 as follows: | |
| 507 | - | (35 ILCS 5/240 new) | |
| 508 | - | Sec. 240. Hydrogen fuel replacement tax credits. | |
| 509 | - | (a) For tax years ending on or after December 31, 2027 and | |
| 510 | - | beginning before January 1, 2029, an eligible taxpayer who | |
| 511 | - | qualifies for a credit under the Hydrogen Fuel Replacement Tax | |
| 512 | - | Credit Act is entitled to a credit against the taxes imposed | |
| 513 | - | under subsections (a) and (b) of Section 201 of this Act as | |
| 514 | - | provided in that Act. If the eligible taxpayer is a | |
| 515 | - | partnership or Subchapter S corporation, the credit shall be | |
| 516 | - | allowed to the partners or shareholders in accordance with the | |
| 517 | - | determination of income and distributive share of income under | |
| 518 | - | Sections 702 and 704 and Subchapter S of the Internal Revenue | |
| 519 | - | Code. | |
| 520 | - | (b) If the amount of the credit exceeds the tax liability | |
| 521 | - | for the year, the excess may be carried forward and applied to | |
| 522 | - | the tax liability of the 5 taxable years following the excess | |
| 242 | + | ||
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| 523 | 244 | ||
| 524 | 245 | ||
| 525 | - | credit year. The credit shall be applied to the earliest year | |
| 526 | - | for which there is a tax liability. If there are credits from | |
| 527 | - | more than one tax year that are available to offset a | |
| 528 | - | liability, the earlier credit shall be applied first. In no | |
| 529 | - | event shall a credit under this Section reduce the taxpayer's | |
| 530 | - | liability to less than zero. | |
| 531 | - | (c) A sale, assignment, or transfer of the tax credit may | |
| 532 | - | be made by the taxpayer earning the credit within one year | |
| 533 | - | after the credit is awarded in accordance with rules adopted | |
| 534 | - | by the Department of Commerce and Economic Opportunity. | |
| 535 | - | (d) A person claiming the credit allowed under this | |
| 536 | - | Section shall attach to its Illinois income tax return a copy | |
| 537 | - | of the tax credit certificate or the transfer certificate | |
| 538 | - | issued by the Department of Commerce and Economic Opportunity. | |
| 539 | - | Section 999. Effective date. This Act takes effect upon | |
| 540 | - | becoming law. | |
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| 248 | + | 1 use. Benefits to be considered shall include, but are not | |
| 249 | + | 2 limited to: a decrease in the percentage of household | |
| 250 | + | 3 income spent on energy costs; a decrease in environmental | |
| 251 | + | 4 exposures and burdens; an increase in access to low-cost | |
| 252 | + | 5 capital; an increase in employment and job training for | |
| 253 | + | 6 residents; an increase in clean energy enterprise creation | |
| 254 | + | 7 and contracting; increases in community energy ownership; | |
| 255 | + | 8 increased parity in clean energy technology and adoption; | |
| 256 | + | 9 and an increase in energy resilience. As used in this item | |
| 257 | + | 10 (2), "energy resilience" means the ability to operate | |
| 258 | + | 11 energy services in response to a major disruption. | |
| 259 | + | 12 Employment and contracting benefits provided pursuant to | |
| 260 | + | 13 paragraph (1) shall count toward this 40% requirement. | |
| 261 | + | 14 (c) The Department shall develop an application process | |
| 262 | + | 15 for tax credits under this Section that provides meaningful, | |
| 263 | + | 16 timely, and effective public notice of a tax credit | |
| 264 | + | 17 application to members of impacted communities, accounting for | |
| 265 | + | 18 linguistic needs and other relevant characteristics, and | |
| 266 | + | 19 provides meaningful opportunity for public comment on any tax | |
| 267 | + | 20 credit application. The public notice and tax credit | |
| 268 | + | 21 application shall be translated into non-English languages in | |
| 269 | + | 22 impacted communities where a language other than English is | |
| 270 | + | 23 widely spoken. The notice must, at a minimum, include all of | |
| 271 | + | 24 the following: the name of the applicant, the location of the | |
| 272 | + | 25 use, a brief description of the use and its impacts, and a link | |
| 273 | + | 26 to a website where the application and more detailed | |
| 274 | + | ||
| 275 | + | ||
| 276 | + | ||
| 277 | + | ||
| 278 | + | ||
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| 281 | + | ||
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| 284 | + | 1 information on the use and its impacts can be found. The notice | |
| 285 | + | 2 shall be written at a third or fourth grade reading level to | |
| 286 | + | 3 ensure ease of understanding for all members of the public. | |
| 287 | + | 4 The opportunity for public comment must, at a minimum, include | |
| 288 | + | 5 a public meeting held in a location within an impacted equity | |
| 289 | + | 6 investment community and easily accessible to residents of | |
| 290 | + | 7 other impacted equity investment eligible communities. Such | |
| 291 | + | 8 public meeting shall be held not less than 30 days after public | |
| 292 | + | 9 notice is provided and not less than 30 days before a decision | |
| 293 | + | 10 is made on the application. The Department shall consider | |
| 294 | + | 11 comments received when determining whether the requirements of | |
| 295 | + | 12 this Section have been met. Applications, supporting | |
| 296 | + | 13 materials, and comments submitted with respect to applications | |
| 297 | + | 14 shall be maintained on the Department website in a publicly | |
| 298 | + | 15 accessible manner. | |
| 299 | + | 16 (d) An eligible taxpayer may not earn tax credits for a tax | |
| 300 | + | 17 year for eligible qualifying hydrogen use in an amount that | |
| 301 | + | 18 exceeds the amount of tax credit allocated to it for the tax | |
| 302 | + | 19 year under Section 25. If the amount of the credit exceeds the | |
| 303 | + | 20 tax liability for the year, the excess may be carried forward | |
| 304 | + | 21 and applied to the tax liability of the 5 taxable years | |
| 305 | + | 22 following the excess credit year. The credit shall be applied | |
| 306 | + | 23 to the earliest year for which there is a tax liability. If | |
| 307 | + | 24 there are credits from more than one tax year that are | |
| 308 | + | 25 available to offset a liability, the earlier credit shall be | |
| 309 | + | 26 applied first. In no event shall a credit under this Section | |
| 310 | + | ||
| 311 | + | ||
| 312 | + | ||
| 313 | + | ||
| 314 | + | ||
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| 317 | + | ||
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| 320 | + | 1 reduce the taxpayer's liability to less than zero. | |
| 321 | + | 2 (e) Labor performed on or after the effective date of this | |
| 322 | + | 3 Act to convert the eligible taxpayer's existing equipment or | |
| 323 | + | 4 to install new equipment for the eligible taxpayer to enable | |
| 324 | + | 5 eligible qualifying hydrogen use for which a credit is claimed | |
| 325 | + | 6 under this Act shall be performed by general contractors that | |
| 326 | + | 7 enter into a project labor agreement, as defined by the | |
| 327 | + | 8 Illinois Power Agency Act, prior to construction. The project | |
| 328 | + | 9 labor agreement shall be filed with the Department. | |
| 329 | + | 10 (f) Notwithstanding any provision of law to the contrary, | |
| 330 | + | 11 any eligible taxpayer receiving tax credits under this Act | |
| 331 | + | 12 shall be required to enter into a labor peace agreement with | |
| 332 | + | 13 any bona fide labor organization that represents or is | |
| 333 | + | 14 attempting to represent any of its employees. | |
| 334 | + | 15 Section 20. Credit availability; applications. | |
| 335 | + | 16 (a) The total amount of tax credits that may be allocated | |
| 336 | + | 17 by the Department to taxpayers for eligible qualifying | |
| 337 | + | 18 hydrogen use occurring in a calendar year shall not exceed | |
| 338 | + | 19 $10,000,000 per year, plus the amount of tax credits that were | |
| 339 | + | 20 available under this Section to be allocated for eligible | |
| 340 | + | 21 qualifying hydrogen use in the immediately preceding calendar | |
| 341 | + | 22 year but were not allocated. | |
| 342 | + | 23 (b) In order to qualify for a tax credit under this Act, | |
| 343 | + | 24 the applicant must apply with the Department on a form | |
| 344 | + | 25 prescribed by the Department by rule. The application shall | |
| 345 | + | ||
| 346 | + | ||
| 347 | + | ||
| 348 | + | ||
| 349 | + | ||
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| 352 | + | ||
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| 355 | + | 1 contain information necessary to calculate the tax credit and | |
| 356 | + | 2 any additional information required by the Department. | |
| 357 | + | 3 (c) Upon satisfactory review of the application, the | |
| 358 | + | 4 Department shall issue a tax credit certificate to the | |
| 359 | + | 5 applicant stating the amount of the tax credit to which the | |
| 360 | + | 6 applicant is entitled. The certificate shall be attached to | |
| 361 | + | 7 the applicant's income tax return under the Illinois Income | |
| 362 | + | 8 Tax Act. | |
| 363 | + | 9 Section 25. Credit allocation by the Department. | |
| 364 | + | 10 (a) As part of its application under Section 20, the | |
| 365 | + | 11 taxpayer shall certify to the Department the amount of | |
| 366 | + | 12 eligible qualifying hydrogen, in kilograms, used during the | |
| 367 | + | 13 immediately preceding calendar year for which the application | |
| 368 | + | 14 is filed. | |
| 369 | + | 15 (b) The Department shall notify each taxpayer of the | |
| 370 | + | 16 dollar amount of credit allocated to that taxpayer under this | |
| 371 | + | 17 Act. The taxpayer must notify the Department within 30 days | |
| 372 | + | 18 after the notification by the Department under this subsection | |
| 373 | + | 19 (b) if it wishes to surrender its allocation. | |
| 374 | + | 20 (c) In each State fiscal year for which tax credits are | |
| 375 | + | 21 available pursuant to this Act, the Department shall not | |
| 376 | + | 22 allocate more than 10% of the total amount of tax credits | |
| 377 | + | 23 available under this Act to the use of qualifying hydrogen for | |
| 378 | + | 24 electricity generation that uses direct gas combustion. | |
| 379 | + | 25 (d) Subject to the limitations of this Section and | |
| 380 | + | ||
| 381 | + | ||
| 382 | + | ||
| 383 | + | ||
| 384 | + | ||
| 385 | + | HB2204 Enrolled - 11 - LRB103 27545 KTG 53920 b | |
| 386 | + | ||
| 387 | + | ||
| 388 | + | HB2204 Enrolled- 12 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 12 - LRB103 27545 KTG 53920 b | |
| 389 | + | HB2204 Enrolled - 12 - LRB103 27545 KTG 53920 b | |
| 390 | + | 1 Sections 20 and 30, the amount of the credit allocated to a | |
| 391 | + | 2 taxpayer by the Department in subsection (b) of this Section | |
| 392 | + | 3 shall be the maximum credit that the taxpayer is permitted to | |
| 393 | + | 4 earn for the calendar year. | |
| 394 | + | 5 (e) Allocations may not be rolled forward to a subsequent | |
| 395 | + | 6 year. | |
| 396 | + | 7 Section 27. Attestation and verification required. | |
| 397 | + | 8 (a) Each taxpayer seeking credits under this Act shall | |
| 398 | + | 9 submit with its application for credits under this Act an | |
| 399 | + | 10 attestation from the producer, made under penalty of perjury. | |
| 400 | + | 11 The attestation shall also confirm that the hydrogen for which | |
| 401 | + | 12 a tax credit is claimed has not been produced during an | |
| 402 | + | 13 applicable PJM performance assessment interval or an | |
| 403 | + | 14 applicable MISO maximum generation event. Each taxpayer | |
| 404 | + | 15 seeking credits under this Act shall also be required to | |
| 405 | + | 16 submit to the Department, at the time of the tax filing for the | |
| 406 | + | 17 applicable year, documentation verifying the facts set forth | |
| 407 | + | 18 in the attestation required by this Section. | |
| 408 | + | 19 (b) Each taxpayer seeking credits under this Act shall | |
| 409 | + | 20 submit with its application for credits under this Act | |
| 410 | + | 21 documentation verifiably demonstrating that the hydrogen use | |
| 411 | + | 22 or uses for which the tax credit is sought was entirely used | |
| 412 | + | 23 for an eligible qualifying hydrogen use, as defined in Section | |
| 413 | + | 24 10 of this Act. | |
| 414 | + | 25 (c) Each taxpayer seeking credits under this Act shall | |
| 415 | + | ||
| 416 | + | ||
| 417 | + | ||
| 418 | + | ||
| 419 | + | ||
| 420 | + | HB2204 Enrolled - 12 - LRB103 27545 KTG 53920 b | |
| 421 | + | ||
| 422 | + | ||
| 423 | + | HB2204 Enrolled- 13 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 13 - LRB103 27545 KTG 53920 b | |
| 424 | + | HB2204 Enrolled - 13 - LRB103 27545 KTG 53920 b | |
| 425 | + | 1 submit with its application for credits under this Act | |
| 426 | + | 2 verifiable documentation of the following information, to be | |
| 427 | + | 3 provided to the taxpayer by the producer: | |
| 428 | + | 4 (i) the type of power generation used to produce the | |
| 429 | + | 5 qualifying hydrogen during each hour that the qualifying | |
| 430 | + | 6 hydrogen was produced, if this information is available; | |
| 431 | + | 7 (ii) the year or years in which the power generation | |
| 432 | + | 8 source or sources identified in item (i) went into | |
| 433 | + | 9 operation; | |
| 434 | + | 10 (iii) if the power generation identified in item (i) | |
| 435 | + | 11 would have been curtailed or otherwise would not have | |
| 436 | + | 12 occurred but for the production of qualifying hydrogen, to | |
| 437 | + | 13 the extent determined by PJM, MISO, or another grid | |
| 438 | + | 14 operator; and | |
| 439 | + | 15 (iv) to the extent available, the marginal emissions | |
| 440 | + | 16 intensity of the regional grid in the same location where | |
| 441 | + | 17 the qualifying hydrogen was produced during each hour that | |
| 442 | + | 18 the qualifying hydrogen was produced, as determined by the | |
| 443 | + | 19 marginal fuel type reported by PJM, MISO, or another grid | |
| 444 | + | 20 operator, as appropriate, and an average emissions | |
| 445 | + | 21 intensity for that fuel. | |
| 446 | + | 22 Section 30. Prioritization of tax credit allocation. If | |
| 447 | + | 23 the total amount of tax credits sought by taxpayers under | |
| 448 | + | 24 Section 25 exceeds the total amount of tax credits that are | |
| 449 | + | 25 allowed to be allocated under Section 20, the Department shall | |
| 450 | + | ||
| 451 | + | ||
| 452 | + | ||
| 453 | + | ||
| 454 | + | ||
| 455 | + | HB2204 Enrolled - 13 - LRB103 27545 KTG 53920 b | |
| 456 | + | ||
| 457 | + | ||
| 458 | + | HB2204 Enrolled- 14 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 14 - LRB103 27545 KTG 53920 b | |
| 459 | + | HB2204 Enrolled - 14 - LRB103 27545 KTG 53920 b | |
| 460 | + | 1 prioritize allocation as follows: | |
| 461 | + | 2 (1) Up to 90% of the tax credits shall be allocated to | |
| 462 | + | 3 the following eligible taxpayers in proportion to their | |
| 463 | + | 4 requested allocation up to their requested allocation: | |
| 464 | + | 5 (A) taxpayers who participate in a United States | |
| 465 | + | 6 Department of Energy Hydrogen Hub for their associated | |
| 466 | + | 7 eligible qualifying hydrogen use; | |
| 467 | + | 8 (B) taxpayers who purchase hydrogen from a | |
| 468 | + | 9 participant in a United States Department of Energy | |
| 469 | + | 10 Hydrogen Hub for their associated qualifying hydrogen | |
| 470 | + | 11 use; or | |
| 471 | + | 12 (C) taxpayers who purchase electricity to produce | |
| 472 | + | 13 and use qualifying hydrogen from a participant in a | |
| 473 | + | 14 United States Department of Energy Hydrogen Hub for | |
| 474 | + | 15 their associated eligible qualifying hydrogen use. | |
| 475 | + | 16 (2) Next, any remaining credits shall be allocated to | |
| 476 | + | 17 eligible taxpayers who do not qualify under paragraph (1); | |
| 477 | + | 18 however, if there are insufficient remaining credits | |
| 478 | + | 19 available to make the allocations under this paragraph | |
| 479 | + | 20 (2), then the remaining credits shall be allocated in | |
| 480 | + | 21 proportion to the requested allocation up to the eligible | |
| 481 | + | 22 taxpayer's requested allocation. | |
| 482 | + | 23 (3) Next, any remaining credits shall be allocated to | |
| 483 | + | 24 taxpayers in proportion to their requested allocation, up | |
| 484 | + | 25 to their requested allocation, excluding any amount | |
| 485 | + | 26 already allocated to a taxpayer pursuant to subsections | |
| 486 | + | ||
| 487 | + | ||
| 488 | + | ||
| 489 | + | ||
| 490 | + | ||
| 491 | + | HB2204 Enrolled - 14 - LRB103 27545 KTG 53920 b | |
| 492 | + | ||
| 493 | + | ||
| 494 | + | HB2204 Enrolled- 15 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 15 - LRB103 27545 KTG 53920 b | |
| 495 | + | HB2204 Enrolled - 15 - LRB103 27545 KTG 53920 b | |
| 496 | + | 1 (1) and (2) of this Section. | |
| 497 | + | 2 (4) Finally, any remaining credits shall be allocated | |
| 498 | + | 3 to taxpayers receiving an allocation pursuant to | |
| 499 | + | 4 subsection (1) in proportion to their requested | |
| 500 | + | 5 allocation, such that the allocation provided under | |
| 501 | + | 6 subsection (1) and subsection (4) combined does not exceed | |
| 502 | + | 7 their requested allocation. | |
| 503 | + | 8 Section 35. Transfer of credits. A transfer of credits | |
| 504 | + | 9 earned under this Act may be made, in accordance with rules | |
| 505 | + | 10 adopted by the Department, by the taxpayer earning the credits | |
| 506 | + | 11 within one year after the credits are awarded. The Department | |
| 507 | + | 12 shall issue a certificate of transfer to each transferor and | |
| 508 | + | 13 transferee, identifying the amount of the credit transferred. | |
| 509 | + | 14 The transfer certificate shall be attached to the transferor's | |
| 510 | + | 15 and transferee's income tax return under the Illinois Income | |
| 511 | + | 16 Tax Act. | |
| 512 | + | 17 Section 36. Analysis of hydrogen production and | |
| 513 | + | 18 utilization. | |
| 514 | + | 19 (a) No later than April 1, 2028, the Illinois | |
| 515 | + | 20 Environmental Protection Agency, in consultation with the | |
| 516 | + | 21 Department, the Illinois Power Agency, the Illinois Commerce | |
| 517 | + | 22 Commission, and other State agencies, as needed, shall publish | |
| 518 | + | 23 a report analyzing the greenhouse gas and copollutant | |
| 519 | + | 24 emissions impacts of hydrogen production and utilization in | |
| 520 | + | ||
| 521 | + | ||
| 522 | + | ||
| 523 | + | ||
| 524 | + | ||
| 525 | + | HB2204 Enrolled - 15 - LRB103 27545 KTG 53920 b | |
| 526 | + | ||
| 527 | + | ||
| 528 | + | HB2204 Enrolled- 16 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 16 - LRB103 27545 KTG 53920 b | |
| 529 | + | HB2204 Enrolled - 16 - LRB103 27545 KTG 53920 b | |
| 530 | + | 1 the State from January 1, 2026 through December 31, 2027. The | |
| 531 | + | 2 report shall separately measure each of the following: | |
| 532 | + | 3 (1) life-cycle greenhouse gas and copollutant emission | |
| 533 | + | 4 impacts of producing qualifying hydrogen; | |
| 534 | + | 5 (2) life-cycle greenhouse gas and copollutant emission | |
| 535 | + | 6 impacts of eligible qualifying hydrogen use for which an | |
| 536 | + | 7 eligible taxpayer receives a credit under this Act; | |
| 537 | + | 8 (3) any greenhouse gas and copollutant emissions | |
| 538 | + | 9 avoided by eligible use of qualifying hydrogen, such as by | |
| 539 | + | 10 displacing diesel in long-haul, heavy-duty trucking and | |
| 540 | + | 11 displacing hydrogen created using fossil fuel feedstock or | |
| 541 | + | 12 through electrolysis powered by fossil-fuel generated | |
| 542 | + | 13 electricity, where avoidance can be determined with | |
| 543 | + | 14 reasonable certainty; and | |
| 544 | + | 15 (4) economic activity and jobs attributable to | |
| 545 | + | 16 investments in qualifying hydrogen production and eligible | |
| 546 | + | 17 qualifying hydrogen use in the State across sectors. | |
| 547 | + | 18 The report shall also include the following separate | |
| 548 | + | 19 provisions: | |
| 549 | + | 20 (1) an analysis of opportunities to increase the | |
| 550 | + | 21 production of qualifying hydrogen from electrolysis that | |
| 551 | + | 22 is powered entirely by electricity generated from | |
| 552 | + | 23 qualified renewable energy resources in the State; | |
| 553 | + | 24 (2) a comparison of the cost of qualifying hydrogen to | |
| 554 | + | 25 the cost of hydrogen produced from fossil fuels; | |
| 555 | + | 26 (3) an analysis of whether energy sources other than | |
| 556 | + | ||
| 557 | + | ||
| 558 | + | ||
| 559 | + | ||
| 560 | + | ||
| 561 | + | HB2204 Enrolled - 16 - LRB103 27545 KTG 53920 b | |
| 562 | + | ||
| 563 | + | ||
| 564 | + | HB2204 Enrolled- 17 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 17 - LRB103 27545 KTG 53920 b | |
| 565 | + | HB2204 Enrolled - 17 - LRB103 27545 KTG 53920 b | |
| 566 | + | 1 hydrogen are available alternatives for qualified uses, | |
| 567 | + | 2 and if so, whether those alternatives would achieve | |
| 568 | + | 3 greater emissions reductions, economic savings, or both; | |
| 569 | + | 4 (4) an analysis of the efficacy of this tax credit at | |
| 570 | + | 5 incentivizing the transition of industries with eligible | |
| 571 | + | 6 uses to use clean hydrogen as a means of decarbonization; | |
| 572 | + | 7 (5) an analysis of Illinois' competitiveness in the | |
| 573 | + | 8 clean hydrogen economy relative to other states; this | |
| 574 | + | 9 analysis shall include, but not be limited to, a review of | |
| 575 | + | 10 the Department of Energy's Hydrogen Hub awards, other | |
| 576 | + | 11 states' incentives for clean hydrogen, the amount of | |
| 577 | + | 12 eligible use of clean hydrogen in Illinois relative to | |
| 578 | + | 13 other states, and the amount of production of clean | |
| 579 | + | 14 hydrogen in Illinois relative to other states; this | |
| 580 | + | 15 analysis should also recommend policy changes the State | |
| 581 | + | 16 can make to be more competitive with other states in the | |
| 582 | + | 17 clean hydrogen economy to the extent that such | |
| 583 | + | 18 competitiveness is consistent with the State's emissions | |
| 584 | + | 19 reductions goals and is economically beneficial; | |
| 585 | + | 20 (6) an analysis of areas where clean hydrogen use, | |
| 586 | + | 21 clean energy use, or both can increase emissions | |
| 587 | + | 22 reduction, and policy measures the State can take to | |
| 588 | + | 23 incentivize those uses, including, but not limited to, an | |
| 589 | + | 24 extension of this tax credit and changes to the total | |
| 590 | + | 25 annual amount of this tax credit; and | |
| 591 | + | 26 (7) an analysis of the expected arc of production, | |
| 592 | + | ||
| 593 | + | ||
| 594 | + | ||
| 595 | + | ||
| 596 | + | ||
| 597 | + | HB2204 Enrolled - 17 - LRB103 27545 KTG 53920 b | |
| 598 | + | ||
| 599 | + | ||
| 600 | + | HB2204 Enrolled- 18 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 18 - LRB103 27545 KTG 53920 b | |
| 601 | + | HB2204 Enrolled - 18 - LRB103 27545 KTG 53920 b | |
| 602 | + | 1 relative costs of different methods of hydrogen | |
| 603 | + | 2 production, relative costs and emissions reductions | |
| 604 | + | 3 benefits of clean energy produced by other methods, | |
| 605 | + | 4 including renewables, for eligible and other uses to help | |
| 606 | + | 5 right-size the total tax credit amount. | |
| 607 | + | 6 The Illinois Environmental Protection Agency may consider | |
| 608 | + | 7 application and attestation information provided by eligible | |
| 609 | + | 8 taxpayers pursuant to this Act and any other data it deems | |
| 610 | + | 9 relevant. | |
| 611 | + | 10 Data relied upon for the report and methods of measurement | |
| 612 | + | 11 shall be identified in the report and be made publicly | |
| 613 | + | 12 available in easily accessible, machine-readable format. | |
| 614 | + | 13 The Illinois Environmental Protection Agency shall | |
| 615 | + | 14 determine and state in its report the impact of the production | |
| 616 | + | 15 of qualifying hydrogen and eligible qualifying hydrogen uses | |
| 617 | + | 16 receiving a tax credit pursuant to this Act on greenhouse gas | |
| 618 | + | 17 and copollutant emissions. | |
| 619 | + | 18 (b) A draft of the report shall be made available for | |
| 620 | + | 19 public comment no less than 30 days prior to its final | |
| 621 | + | 20 publication. The final report and comments received shall be | |
| 622 | + | 21 made publicly available in both English and Spanish, and | |
| 623 | + | 22 copies of the final report shall be filed with the General | |
| 624 | + | 23 Assembly and the Governor. | |
| 625 | + | 24 Section 37. Rules. The Department may adopt rules to | |
| 626 | + | 25 implement and administer this Act. | |
| 627 | + | ||
| 628 | + | ||
| 629 | + | ||
| 630 | + | ||
| 631 | + | ||
| 632 | + | HB2204 Enrolled - 18 - LRB103 27545 KTG 53920 b | |
| 633 | + | ||
| 634 | + | ||
| 635 | + | HB2204 Enrolled- 19 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 19 - LRB103 27545 KTG 53920 b | |
| 636 | + | HB2204 Enrolled - 19 - LRB103 27545 KTG 53920 b | |
| 637 | + | 1 Section 40. Severability. If any provision of this Act or | |
| 638 | + | 2 its application to any person or circumstance is held invalid, | |
| 639 | + | 3 the invalidity of that provision or application does not | |
| 640 | + | 4 affect other provisions or applications of this Act that can | |
| 641 | + | 5 be given effect without the invalid provision or application. | |
| 642 | + | 6 Section 900. The Illinois Income Tax Act is amended by | |
| 643 | + | 7 adding Section 240 as follows: | |
| 644 | + | 8 (35 ILCS 5/240 new) | |
| 645 | + | 9 Sec. 240. Hydrogen fuel replacement tax credits. | |
| 646 | + | 10 (a) For tax years ending on or after December 31, 2027 and | |
| 647 | + | 11 beginning before January 1, 2029, an eligible taxpayer who | |
| 648 | + | 12 qualifies for a credit under the Hydrogen Fuel Replacement Tax | |
| 649 | + | 13 Credit Act is entitled to a credit against the taxes imposed | |
| 650 | + | 14 under subsections (a) and (b) of Section 201 of this Act as | |
| 651 | + | 15 provided in that Act. If the eligible taxpayer is a | |
| 652 | + | 16 partnership or Subchapter S corporation, the credit shall be | |
| 653 | + | 17 allowed to the partners or shareholders in accordance with the | |
| 654 | + | 18 determination of income and distributive share of income under | |
| 655 | + | 19 Sections 702 and 704 and Subchapter S of the Internal Revenue | |
| 656 | + | 20 Code. | |
| 657 | + | 21 (b) If the amount of the credit exceeds the tax liability | |
| 658 | + | 22 for the year, the excess may be carried forward and applied to | |
| 659 | + | 23 the tax liability of the 5 taxable years following the excess | |
| 660 | + | ||
| 661 | + | ||
| 662 | + | ||
| 663 | + | ||
| 664 | + | ||
| 665 | + | HB2204 Enrolled - 19 - LRB103 27545 KTG 53920 b | |
| 666 | + | ||
| 667 | + | ||
| 668 | + | HB2204 Enrolled- 20 -LRB103 27545 KTG 53920 b HB2204 Enrolled - 20 - LRB103 27545 KTG 53920 b | |
| 669 | + | HB2204 Enrolled - 20 - LRB103 27545 KTG 53920 b | |
| 670 | + | 1 credit year. The credit shall be applied to the earliest year | |
| 671 | + | 2 for which there is a tax liability. If there are credits from | |
| 672 | + | 3 more than one tax year that are available to offset a | |
| 673 | + | 4 liability, the earlier credit shall be applied first. In no | |
| 674 | + | 5 event shall a credit under this Section reduce the taxpayer's | |
| 675 | + | 6 liability to less than zero. | |
| 676 | + | 7 (c) A sale, assignment, or transfer of the tax credit may | |
| 677 | + | 8 be made by the taxpayer earning the credit within one year | |
| 678 | + | 9 after the credit is awarded in accordance with rules adopted | |
| 679 | + | 10 by the Department of Commerce and Economic Opportunity. | |
| 680 | + | 11 (d) A person claiming the credit allowed under this | |
| 681 | + | 12 Section shall attach to its Illinois income tax return a copy | |
| 682 | + | 13 of the tax credit certificate or the transfer certificate | |
| 683 | + | 14 issued by the Department of Commerce and Economic Opportunity. | |
| 684 | + | 15 Section 999. Effective date. This Act takes effect upon | |
| 685 | + | 16 becoming law. | |
| 686 | + | ||
| 687 | + | ||
| 688 | + | ||
| 689 | + | ||
| 690 | + | ||
| 691 | + | HB2204 Enrolled - 20 - LRB103 27545 KTG 53920 b |