Illinois 2023-2024 Regular Session

Illinois House Bill HB2990 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2990 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/234 new Creates the Endow Illinois Tax Credit Act and makes conforming changes in the Illinois Income Tax Act. Requires the Department of Revenue to authorize an income tax credit to taxpayers who provide an endowment gift to a permanent endowment fund. Sets forth procedures and criteria for authorizing the credits. Provides that the aggregate amount of all credits that the Department of Revenue may authorize may not exceed $10,000,000 in 2023, $25,000,000 in 2024, or $50,000,000 in 2025 and each calendar year thereafter. Provides conditions for eligibility. Requires the Department of Revenue to make an annual report concerning the credits. Provides that the credit may be carried forward for 5 years. Exempts the credit from the Act's sunset provisions. Effective immediately. LRB103 25745 HLH 52094 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2990 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/234 new New Act 35 ILCS 5/234 new Creates the Endow Illinois Tax Credit Act and makes conforming changes in the Illinois Income Tax Act. Requires the Department of Revenue to authorize an income tax credit to taxpayers who provide an endowment gift to a permanent endowment fund. Sets forth procedures and criteria for authorizing the credits. Provides that the aggregate amount of all credits that the Department of Revenue may authorize may not exceed $10,000,000 in 2023, $25,000,000 in 2024, or $50,000,000 in 2025 and each calendar year thereafter. Provides conditions for eligibility. Requires the Department of Revenue to make an annual report concerning the credits. Provides that the credit may be carried forward for 5 years. Exempts the credit from the Act's sunset provisions. Effective immediately. LRB103 25745 HLH 52094 b LRB103 25745 HLH 52094 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2990 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED:
3	3	New Act35 ILCS 5/234 new New Act 35 ILCS 5/234 new
4	4	New Act
5	5	35 ILCS 5/234 new
6	6	Creates the Endow Illinois Tax Credit Act and makes conforming changes in the Illinois Income Tax Act. Requires the Department of Revenue to authorize an income tax credit to taxpayers who provide an endowment gift to a permanent endowment fund. Sets forth procedures and criteria for authorizing the credits. Provides that the aggregate amount of all credits that the Department of Revenue may authorize may not exceed $10,000,000 in 2023, $25,000,000 in 2024, or $50,000,000 in 2025 and each calendar year thereafter. Provides conditions for eligibility. Requires the Department of Revenue to make an annual report concerning the credits. Provides that the credit may be carried forward for 5 years. Exempts the credit from the Act's sunset provisions. Effective immediately.
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9	9	A BILL FOR
10	10	HB2990LRB103 25745 HLH 52094 b HB2990 LRB103 25745 HLH 52094 b
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12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the Endow
16	16	5 Illinois Tax Credit Act.
17	17	6 Section 5. Definitions. For the purposes of this Act:
18	18	7 "Department" means the Department of Revenue.
19	19	8 "Endowment gift" means an irrevocable contribution to a
20	20	9 permanent endowment fund held by a qualified community
21	21	10 foundation.
22	22	11 "Permanent endowment fund" means a fund that (i) is held
23	23	12 by a qualified community foundation to provide benefit to
24	24	13 charitable causes in the State, (ii) is intended to exist in
25	25	14 perpetuity, and (iii) has an annual spending rate based on the
26	26	15 foundation spending policy, but not to exceed 7%.
27	27	16 "Qualified community foundation" means a community
28	28	17 foundation or similar publicly-supported organization
29	29	18 described in Section 170 (b)(1)(A)(vi) of the Internal Revenue
30	30	19 Code of 1986 that is organized or operating in this State and
31	31	20 that substantially complies with the national standards for
32	32	21 U.S. community foundations that are established by the
33	33	22 National Council on Foundations, as determined by the
34	34	23 Department.
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2990 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED:
39	39	New Act35 ILCS 5/234 new New Act 35 ILCS 5/234 new
40	40	New Act
41	41	35 ILCS 5/234 new
42	42	Creates the Endow Illinois Tax Credit Act and makes conforming changes in the Illinois Income Tax Act. Requires the Department of Revenue to authorize an income tax credit to taxpayers who provide an endowment gift to a permanent endowment fund. Sets forth procedures and criteria for authorizing the credits. Provides that the aggregate amount of all credits that the Department of Revenue may authorize may not exceed $10,000,000 in 2023, $25,000,000 in 2024, or $50,000,000 in 2025 and each calendar year thereafter. Provides conditions for eligibility. Requires the Department of Revenue to make an annual report concerning the credits. Provides that the credit may be carried forward for 5 years. Exempts the credit from the Act's sunset provisions. Effective immediately.
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45	45	A BILL FOR
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71	71	1 Section 10. Tax credit awards.
72	72	2 (a) The Department shall authorize an income tax credit to
73	73	3 taxpayers who provide an endowment gift to a permanent
74	74	4 endowment fund. The amount of the credit that may be
75	75	5 authorized to a taxpayer by the Department under this Act is an
76	76	6 amount equal to 50% of the endowment gift. A taxpayer that is a
77	77	7 business entity is not eligible to receive a credit under this
78	78	8 Act for the taxable year if the taxpayer's gross business
79	79	9 receipts exceed $10,000,000 for taxable years ending in 2022,
80	80	10 $25,000,000 for taxable years ending in 2024, or $50,000,000
81	81	11 for taxable years ending in 2025 or thereafter.
82	82	12 (b) The aggregate amount of all credits that the
83	83	13 Department may authorize under this Act may not exceed
84	84	14 $10,000,000 in 2023, $25,000,000 in 2024, or $50,000,000 in
85	85	15 2025 and each calendar year thereafter. The aggregate amount
86	86	16 of all credits that the Department may authorize to any single
87	87	17 taxpayer in a calendar year may not exceed 5% of the aggregate
88	88	18 amount of all credits authorized by the Department in that
89	89	19 calendar year. The aggregate amount of all credits that the
90	90	20 Department may authorize in any calendar year based on
91	91	21 endowment gifts to any specific community foundation may not
92	92	22 exceed 25% of aggregate credits authorized for that year.
93	93	23 (c) If the Department receives applications for tax credit
94	94	24 in excess of the amount available, then the applications must
95	95	25 be prioritized by the date that the Department received them.
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106	106	1 If the number of applications exceeds the amount of annual tax
107	107	2 credits available, then the Department must establish a wait
108	108	3 list for the next year's allocation of tax credits, and
109	109	4 applications must first be funded in the order listed on that
110	110	5 wait list.
111	111	6 Section 15. Applications for tax credits.
112	112	7 (a) The Department shall develop and make available a
113	113	8 standardized application pertaining to the allocation of tax
114	114	9 credits under this Act.
115	115	10 (b) Of the annual amount available for tax credits, 10%
116	116	11 must be reserved for those endowment gifts of $30,000 or less.
117	117	12 If the entire 10% that is reserved for permanent endowment
118	118	13 gifts totalling $30,000 or less is not allocated, then the
119	119	14 remaining amount is available in the following years for
120	120	15 endowment gifts of $30,000 or less.
121	121	16 (c) The Department must accept applications and authorize
122	122	17 credits in an ongoing basis. The Department must make public,
123	123	18 by June 1 and by December 1 of each year, the total number of
124	124	19 requests for tax credits and the total amount of requested tax
125	125	20 credits that have been submitted and awarded.
126	126	21 Section 20. Annual report. By January 31 of each year, the
127	127	22 Department must submit an annual report to the Governor and
128	128	23 the General Assembly concerning the activities conduced under
129	129	24 this Act during the previous calendar year. The report must
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140	140	1 include a detailed listing of tax credits authorized under
141	141	2 this Act by the Department.
142	142	3 Section 90. The Illinois Income Tax Act is amended by
143	143	4 adding Section 234 as follows:
144	144	5 (35 ILCS 5/234 new)
145	145	6 Sec. 234. The Endow Illinois tax credit.
146	146	7 (a) For taxable years ending on or after December 31,
147	147	8 2023, each taxpayer for whom a tax credit has been authorized
148	148	9 by the Department of Revenue under the Endow Illinois Tax
149	149	10 Credit Act, is entitled to a credit against the tax imposed
150	150	11 under subsections (a) and (b) of Section 201 in an amount equal
151	151	12 to the amount authorized under that Act.
152	152	13 (b) For partners, shareholders of Subchapter S
153	153	14 corporations, and members of limited liability companies, if
154	154	15 the liability company is treated as a partnership for purposes
155	155	16 of federal and State income taxation, there is allowed a
156	156	17 credit under this Section to be determined in accordance with
157	157	18 the determination of income and distributive share of income
158	158	19 under Sections 702 and 704 and Subchapter S of the Internal
159	159	20 Revenue Code.
160	160	21 (c) The credit may not be carried back and may not reduce
161	161	22 the taxpayer's liability to less than zero. If the amount of
162	162	23 the credit exceeds the tax liability for the year, the excess
163	163	24 may be carried forward and applied to the tax liability of the
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174	174	1 5 taxable years following the excess credit year. The tax
175	175	2 credit shall be applied to the earliest year for which there is
176	176	3 a tax liability. If there are credits for more than one year
177	177	4 that are available to offset a liability, the earlier credit
178	178	5 shall be applied first.
179	179	6 (d) This Section is exempt from the provisions of Section
180	180	7 250.
181	181	8 Section 99. Effective date. This Act takes effect upon
182	182	9 becoming law.
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