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
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
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
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A BILL FOR
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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the Endow
5 Illinois Tax Credit Act.
6 Section 5. Definitions. For the purposes of this Act:
7 "Department" means the Department of Revenue.
8 "Endowment gift" means an irrevocable contribution to a
9 permanent endowment fund held by a qualified community
10 foundation.
11 "Permanent endowment fund" means a fund that (i) is held
12 by a qualified community foundation to provide benefit to
13 charitable causes in the State, (ii) is intended to exist in
14 perpetuity, and (iii) has an annual spending rate based on the
15 foundation spending policy, but not to exceed 7%.
16 "Qualified community foundation" means a community
17 foundation or similar publicly-supported organization
18 described in Section 170 (b)(1)(A)(vi) of the Internal Revenue
19 Code of 1986 that is organized or operating in this State and
20 that substantially complies with the national standards for
21 U.S. community foundations that are established by the
22 National Council on Foundations, as determined by the
23 Department.
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
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
LRB103 25745 HLH 52094 b
A BILL FOR
New Act
35 ILCS 5/234 new
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1 Section 10. Tax credit awards.
2 (a) The Department shall authorize an income tax credit to
3 taxpayers who provide an endowment gift to a permanent
4 endowment fund. The amount of the credit that may be
5 authorized to a taxpayer by the Department under this Act is an
6 amount equal to 50% of the endowment gift. A taxpayer that is a
7 business entity is not eligible to receive a credit under this
8 Act for the taxable year if the taxpayer's gross business
9 receipts exceed $10,000,000 for taxable years ending in 2022,
10 $25,000,000 for taxable years ending in 2024, or $50,000,000
11 for taxable years ending in 2025 or thereafter.
12 (b) The aggregate amount of all credits that the
13 Department may authorize under this Act may not exceed
14 $10,000,000 in 2023, $25,000,000 in 2024, or $50,000,000 in
15 2025 and each calendar year thereafter. The aggregate amount
16 of all credits that the Department may authorize to any single
17 taxpayer in a calendar year may not exceed 5% of the aggregate
18 amount of all credits authorized by the Department in that
19 calendar year. The aggregate amount of all credits that the
20 Department may authorize in any calendar year based on
21 endowment gifts to any specific community foundation may not
22 exceed 25% of aggregate credits authorized for that year.
23 (c) If the Department receives applications for tax credit
24 in excess of the amount available, then the applications must
25 be prioritized by the date that the Department received them.
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1 If the number of applications exceeds the amount of annual tax
2 credits available, then the Department must establish a wait
3 list for the next year's allocation of tax credits, and
4 applications must first be funded in the order listed on that
5 wait list.
6 Section 15. Applications for tax credits.
7 (a) The Department shall develop and make available a
8 standardized application pertaining to the allocation of tax
9 credits under this Act.
10 (b) Of the annual amount available for tax credits, 10%
11 must be reserved for those endowment gifts of $30,000 or less.
12 If the entire 10% that is reserved for permanent endowment
13 gifts totalling $30,000 or less is not allocated, then the
14 remaining amount is available in the following years for
15 endowment gifts of $30,000 or less.
16 (c) The Department must accept applications and authorize
17 credits in an ongoing basis. The Department must make public,
18 by June 1 and by December 1 of each year, the total number of
19 requests for tax credits and the total amount of requested tax
20 credits that have been submitted and awarded.
21 Section 20. Annual report. By January 31 of each year, the
22 Department must submit an annual report to the Governor and
23 the General Assembly concerning the activities conduced under
24 this Act during the previous calendar year. The report must
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1 include a detailed listing of tax credits authorized under
2 this Act by the Department.
3 Section 90. The Illinois Income Tax Act is amended by
4 adding Section 234 as follows:
5 (35 ILCS 5/234 new)
6 Sec. 234. The Endow Illinois tax credit.
7 (a) For taxable years ending on or after December 31,
8 2023, each taxpayer for whom a tax credit has been authorized
9 by the Department of Revenue under the Endow Illinois Tax
10 Credit Act, is entitled to a credit against the tax imposed
11 under subsections (a) and (b) of Section 201 in an amount equal
12 to the amount authorized under that Act.
13 (b) For partners, shareholders of Subchapter S
14 corporations, and members of limited liability companies, if
15 the liability company is treated as a partnership for purposes
16 of federal and State income taxation, there is allowed a
17 credit under this Section to be determined in accordance with
18 the determination of income and distributive share of income
19 under Sections 702 and 704 and Subchapter S of the Internal
20 Revenue Code.
21 (c) The credit may not be carried back and may not reduce
22 the taxpayer's liability to less than zero. If the amount of
23 the credit exceeds the tax liability for the year, the excess
24 may be carried forward and applied to the tax liability of the
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1 5 taxable years following the excess credit year. The tax
2 credit shall be applied to the earliest year for which there is
3 a tax liability. If there are credits for more than one year
4 that are available to offset a liability, the earlier credit
5 shall be applied first.
6 (d) This Section is exempt from the provisions of Section
7 250.
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.
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