Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0805 Compare Versions

Version 1 (Old)

Version 2 (New)

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2		-	SB0805 Engrossed LRB103 03260 HLH 48266 b
	1	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0805 Introduced 2/2/2023, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: 35 ILCS 5/101 from Ch. 120, par. 1-101 Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title. LRB103 03260 HLH 48266 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0805 Introduced 2/2/2023, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: 35 ILCS 5/101 from Ch. 120, par. 1-101 35 ILCS 5/101 from Ch. 120, par. 1-101 Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title. LRB103 03260 HLH 48266 b LRB103 03260 HLH 48266 b A BILL FOR
	2	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0805 Introduced 2/2/2023, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
	3	+	35 ILCS 5/101 from Ch. 120, par. 1-101 35 ILCS 5/101 from Ch. 120, par. 1-101
	4	+	35 ILCS 5/101 from Ch. 120, par. 1-101
	5	+	Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
	6	+	LRB103 03260 HLH 48266 b LRB103 03260 HLH 48266 b
	7	+	LRB103 03260 HLH 48266 b
	8	+	A BILL FOR
	9	+	SB0805LRB103 03260 HLH 48266 b SB0805 LRB103 03260 HLH 48266 b
	10	+	SB0805 LRB103 03260 HLH 48266 b
3	11		1 AN ACT concerning revenue.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6		-	4 Section 5. The Economic Development for a Growing Economy
7		-	5 Tax Credit Act is amended by changing Sections 5-5 and 5-15 as
8		-	6 follows:
9		-	7 (35 ILCS 10/5-5)
10		-	8 Sec. 5-5. Definitions. As used in this Act:
11		-	9 "Agreement" means the Agreement between a Taxpayer and the
12		-	10 Department under the provisions of Section 5-50 of this Act.
13		-	11 "Applicant" means a Taxpayer that is operating a business
14		-	12 located or that the Taxpayer plans to locate within the State
15		-	13 of Illinois and that is engaged in interstate or intrastate
16		-	14 commerce for the purpose of manufacturing, processing,
17		-	15 assembling, warehousing, or distributing products, conducting
18		-	16 research and development, providing tourism services, or
19		-	17 providing services in interstate commerce, office industries,
20		-	18 or agricultural processing, but excluding retail, retail food,
21		-	19 health, or professional services. "Applicant" does not include
22		-	20 a Taxpayer who closes or substantially reduces an operation at
23		-	21 one location in the State and relocates substantially the same
24		-	22 operation to another location in the State. This does not
25		-	23 prohibit a Taxpayer from expanding its operations at another
	14	+	4 Section 5. The Illinois Income Tax Act is amended by
	15	+	5 changing Section 101 as follows:
	16	+	6 (35 ILCS 5/101) (from Ch. 120, par. 1-101)
	17	+	7 Sec. 101. Short Title. This Act shall be known and and may
	18	+	8 be cited as the "Illinois Income Tax Act."
	19	+	9 (Source: P.A. 76-261.)
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34		-	1 location in the State, provided that existing operations of a
35		-	2 similar nature located within the State are not closed or
36		-	3 substantially reduced. This also does not prohibit a Taxpayer
37		-	4 from moving its operations from one location in the State to
38		-	5 another location in the State for the purpose of expanding the
39		-	6 operation provided that the Department determines that
40		-	7 expansion cannot reasonably be accommodated within the
41		-	8 municipality in which the business is located, or in the case
42		-	9 of a business located in an incorporated area of the county,
43		-	10 within the county in which the business is located, after
44		-	11 conferring with the chief elected official of the municipality
45		-	12 or county and taking into consideration any evidence offered
46		-	13 by the municipality or county regarding the ability to
47		-	14 accommodate expansion within the municipality or county.
48		-	15 "Credit" means the amount agreed to between the Department
49		-	16 and Applicant under this Act, but not to exceed the lesser of:
50		-	17 (1) the sum of (i) 50% of the Incremental Income Tax
51		-	18 attributable to New Employees at the Applicant's project and
52		-	19 (ii) 10% of the training costs of New Employees; or (2) 100% of
53		-	20 the Incremental Income Tax attributable to New Employees at
54		-	21 the Applicant's project. However, if the project is located in
55		-	22 an underserved area, then the amount of the Credit may not
56		-	23 exceed the lesser of: (1) the sum of (i) 75% of the Incremental
57		-	24 Income Tax attributable to New Employees at the Applicant's
58		-	25 project and (ii) 10% of the training costs of New Employees; or
59		-	26 (2) 100% of the Incremental Income Tax attributable to New
	23	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0805 Introduced 2/2/2023, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
	24	+	35 ILCS 5/101 from Ch. 120, par. 1-101 35 ILCS 5/101 from Ch. 120, par. 1-101
	25	+	35 ILCS 5/101 from Ch. 120, par. 1-101
	26	+	Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
	27	+	LRB103 03260 HLH 48266 b LRB103 03260 HLH 48266 b
	28	+	LRB103 03260 HLH 48266 b
	29	+	A BILL FOR
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	35	+	35 ILCS 5/101 from Ch. 120, par. 1-101
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70		-	1 Employees at the Applicant's project. If the project is not
71		-	2 located in an underserved area and the Applicant agrees to
72		-	3 hire the required number of New Employees, then the maximum
73		-	4 amount of the Credit for that Applicant may be increased by an
74		-	5 amount not to exceed 25% of the Incremental Income Tax
75		-	6 attributable to retained employees at the Applicant's project.
76		-	7 If the project is located in an underserved area and the
77		-	8 Applicant agrees to hire the required number of New Employees,
78		-	9 then the maximum amount of the credit for that Applicant may be
79		-	10 increased by an amount not to exceed 50% of the Incremental
80		-	11 Income Tax attributable to retained employees at the
81		-	12 Applicant's project.
82		-	13 "Department" means the Department of Commerce and Economic
83		-	14 Opportunity.
84		-	15 "Director" means the Director of Commerce and Economic
85		-	16 Opportunity.
86		-	17 "Full-time Employee" means an individual who is employed
87		-	18 for consideration for at least 35 hours each week or who
88		-	19 renders any other standard of service generally accepted by
89		-	20 industry custom or practice as full-time employment. An
90		-	21 individual for whom a W-2 is issued by a Professional Employer
91		-	22 Organization (PEO) is a full-time employee if employed in the
92		-	23 service of the Applicant for consideration for at least 35
93		-	24 hours each week or who renders any other standard of service
94		-	25 generally accepted by industry custom or practice as full-time
95		-	26 employment to Applicant.
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106		-	1 "Incremental Income Tax" means the total amount withheld
107		-	2 during the taxable year from the compensation of New Employees
108		-	3 and, if applicable, retained employees under Article 7 of the
109		-	4 Illinois Income Tax Act arising from employment at a project
110		-	5 that is the subject of an Agreement.
111		-	6 "New Construction EDGE Agreement" means the Agreement
112		-	7 between a Taxpayer and the Department under the provisions of
113		-	8 Section 5-51 of this Act.
114		-	9 "New Construction EDGE Credit" means an amount agreed to
115		-	10 between the Department and the Applicant under this Act as
116		-	11 part of a New Construction EDGE Agreement that does not exceed
117		-	12 50% of the Incremental Income Tax attributable to New
118		-	13 Construction EDGE Employees at the Applicant's project;
119		-	14 however, if the New Construction EDGE Project is located in an
120		-	15 underserved area, then the amount of the New Construction EDGE
121		-	16 Credit may not exceed 75% of the Incremental Income Tax
122		-	17 attributable to New Construction EDGE Employees at the
123		-	18 Applicant's New Construction EDGE Project.
124		-	19 "New Construction EDGE Employee" means a laborer or worker
125		-	20 who is employed by an Illinois contractor or subcontractor in
126		-	21 the actual construction work on the site of a New Construction
127		-	22 EDGE Project, pursuant to a New Construction EDGE Agreement.
128		-	23 "New Construction EDGE Incremental Income Tax" means the
129		-	24 total amount withheld during the taxable year from the
130		-	25 compensation of New Construction EDGE Employees.
131		-	26 "New Construction EDGE Project" means the building of a
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142		-	1 Taxpayer's structure or building, or making improvements of
143		-	2 any kind to real property. "New Construction EDGE Project"
144		-	3 does not include the routine operation, routine repair, or
145		-	4 routine maintenance of existing structures, buildings, or real
146		-	5 property.
147		-	6 "New Employee" means:
148		-	7 (a) A Full-time Employee first employed by a Taxpayer
149		-	8 in the project that is the subject of an Agreement and who
150		-	9 is hired after the Taxpayer enters into the tax credit
151		-	10 Agreement.
152		-	11 (b) The term "New Employee" does not include:
153		-	12 (1) an employee of the Taxpayer who performs a job
154		-	13 that was previously performed by another employee, if
155		-	14 that job existed for at least 6 months before hiring
156		-	15 the employee;
157		-	16 (2) an employee of the Taxpayer who was previously
158		-	17 employed in Illinois by a Related Member of the
159		-	18 Taxpayer and whose employment was shifted to the
160		-	19 Taxpayer after the Taxpayer entered into the tax
161		-	20 credit Agreement; or
162		-	21 (3) a child, grandchild, parent, or spouse, other
163		-	22 than a spouse who is legally separated from the
164		-	23 individual, of any individual who has a direct or an
165		-	24 indirect ownership interest of at least 5% in the
166		-	25 profits, capital, or value of the Taxpayer.
167		-	26 (c) Notwithstanding paragraph (1) of subsection (b),
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178		-	1 an employee may be considered a New Employee under the
179		-	2 Agreement if the employee performs a job that was
180		-	3 previously performed by an employee who was:
181		-	4 (1) treated under the Agreement as a New Employee;
182		-	5 and
183		-	6 (2) promoted by the Taxpayer to another job.
184		-	7 (d) Notwithstanding subsection (a), the Department may
185		-	8 award Credit to an Applicant with respect to an employee
186		-	9 hired prior to the date of the Agreement if:
187		-	10 (1) the Applicant is in receipt of a letter from
188		-	11 the Department stating an intent to enter into a
189		-	12 credit Agreement;
190		-	13 (2) the letter described in paragraph (1) is
191		-	14 issued by the Department not later than 15 days after
192		-	15 the effective date of this Act; and
193		-	16 (3) the employee was hired after the date the
194		-	17 letter described in paragraph (1) was issued.
195		-	18 "Noncompliance Date" means, in the case of a Taxpayer that
196		-	19 is not complying with the requirements of the Agreement or the
197		-	20 provisions of this Act, the day following the last date upon
198		-	21 which the Taxpayer was in compliance with the requirements of
199		-	22 the Agreement and the provisions of this Act, as determined by
200		-	23 the Director, pursuant to Section 5-65.
201		-	24 "Pass Through Entity" means an entity that is exempt from
202		-	25 the tax under subsection (b) or (c) of Section 205 of the
203		-	26 Illinois Income Tax Act.
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214		-	1 "Professional Employer Organization" (PEO) means an
215		-	2 employee leasing company, as defined in Section 206.1(A)(2) of
216		-	3 the Illinois Unemployment Insurance Act.
217		-	4 "Related Member" means a person that, with respect to the
218		-	5 Taxpayer during any portion of the taxable year, is any one of
219		-	6 the following:
220		-	7 (1) An individual stockholder, if the stockholder and
221		-	8 the members of the stockholder's family (as defined in
222		-	9 Section 318 of the Internal Revenue Code) own directly,
223		-	10 indirectly, beneficially, or constructively, in the
224		-	11 aggregate, at least 50% of the value of the Taxpayer's
225		-	12 outstanding stock.
226		-	13 (2) A partnership, estate, or trust and any partner or
227		-	14 beneficiary, if the partnership, estate, or trust, and its
228		-	15 partners or beneficiaries own directly, indirectly,
229		-	16 beneficially, or constructively, in the aggregate, at
230		-	17 least 50% of the profits, capital, stock, or value of the
231		-	18 Taxpayer.
232		-	19 (3) A corporation, and any party related to the
233		-	20 corporation in a manner that would require an attribution
234		-	21 of stock from the corporation to the party or from the
235		-	22 party to the corporation under the attribution rules of
236		-	23 Section 318 of the Internal Revenue Code, if the Taxpayer
237		-	24 owns directly, indirectly, beneficially, or constructively
238		-	25 at least 50% of the value of the corporation's outstanding
239		-	26 stock.
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250		-	1 (4) A corporation and any party related to that
251		-	2 corporation in a manner that would require an attribution
252		-	3 of stock from the corporation to the party or from the
253		-	4 party to the corporation under the attribution rules of
254		-	5 Section 318 of the Internal Revenue Code, if the
255		-	6 corporation and all such related parties own in the
256		-	7 aggregate at least 50% of the profits, capital, stock, or
257		-	8 value of the Taxpayer.
258		-	9 (5) A person to or from whom there is attribution of
259		-	10 stock ownership in accordance with Section 1563(e) of the
260		-	11 Internal Revenue Code, except, for purposes of determining
261		-	12 whether a person is a Related Member under this paragraph,
262		-	13 20% shall be substituted for 5% wherever 5% appears in
263		-	14 Section 1563(e) of the Internal Revenue Code.
264		-	15 "Startup taxpayer" means, for Agreements that are executed
265		-	16 before the effective date of this amendatory Act of the 103rd
266		-	17 General Assembly, a corporation, partnership, or other entity
267		-	18 incorporated or organized no more than 5 years before the
268		-	19 filing of an application for an Agreement that has never had
269		-	20 any Illinois income tax liability, excluding any Illinois
270		-	21 income tax liability of a Related Member which shall not be
271		-	22 attributed to the startup taxpayer. "Startup taxpayer" means,
272		-	23 for Agreements that are executed on or after the effective
273		-	24 date of this amendatory Act of the 103rd General Assembly, a
274		-	25 corporation, partnership, or other entity incorporated or
275		-	26 organized no more than 10 years before the filing of an
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286		-	1 application for an Agreement that has never had any Illinois
287		-	2 income tax liability, excluding any Illinois income tax
288		-	3 liability of a Related Member which shall not be attributed to
289		-	4 the startup taxpayer.
290		-	5 "Taxpayer" means an individual, corporation, partnership,
291		-	6 or other entity that has any Illinois Income Tax liability.
292		-	7 Until July 1, 2022, "underserved area" means a geographic
293		-	8 area that meets one or more of the following conditions:
294		-	9 (1) the area has a poverty rate of at least 20%
295		-	10 according to the latest federal decennial census;
296		-	11 (2) 75% or more of the children in the area
297		-	12 participate in the federal free lunch program according to
298		-	13 reported statistics from the State Board of Education;
299		-	14 (3) at least 20% of the households in the area receive
300		-	15 assistance under the Supplemental Nutrition Assistance
301		-	16 Program (SNAP); or
302		-	17 (4) the area has an average unemployment rate, as
303		-	18 determined by the Illinois Department of Employment
304		-	19 Security, that is more than 120% of the national
305		-	20 unemployment average, as determined by the U.S. Department
306		-	21 of Labor, for a period of at least 2 consecutive calendar
307		-	22 years preceding the date of the application.
308		-	23 On and after July 1, 2022, "underserved area" means a
309		-	24 geographic area that meets one or more of the following
310		-	25 conditions:
311		-	26 (1) the area has a poverty rate of at least 20%
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322		-	1 according to the latest American Community Survey;
323		-	2 (2) 35% or more of the families with children in the
324		-	3 area are living below 130% of the poverty line, according
325		-	4 to the latest American Community Survey;
326		-	5 (3) at least 20% of the households in the area receive
327		-	6 assistance under the Supplemental Nutrition Assistance
328		-	7 Program (SNAP); or
329		-	8 (4) the area has an average unemployment rate, as
330		-	9 determined by the Illinois Department of Employment
331		-	10 Security, that is more than 120% of the national
332		-	11 unemployment average, as determined by the U.S. Department
333		-	12 of Labor, for a period of at least 2 consecutive calendar
334		-	13 years preceding the date of the application.
335		-	14 (Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22;
336		-	15 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
337		-	16 (35 ILCS 10/5-15)
338		-	17 Sec. 5-15. Tax Credit Awards. Subject to the conditions
339		-	18 set forth in this Act, a Taxpayer is entitled to a Credit
340		-	19 against or, as described in subsection (g) of this Section, a
341		-	20 payment towards taxes imposed pursuant to subsections (a) and
342		-	21 (b) of Section 201 of the Illinois Income Tax Act that may be
343		-	22 imposed on the Taxpayer for a taxable year beginning on or
344		-	23 after January 1, 1999, if the Taxpayer is awarded a Credit by
345		-	24 the Department under this Act for that taxable year.
346		-	25 (a) The Department shall make Credit awards under this Act
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357		-	1 to foster job creation and retention in Illinois.
358		-	2 (b) A person that proposes a project to create new jobs in
359		-	3 Illinois must enter into an Agreement with the Department for
360		-	4 the Credit under this Act.
361		-	5 (c) The Credit shall be claimed for the taxable years
362		-	6 specified in the Agreement.
363		-	7 (d) The Credit shall not exceed the Incremental Income Tax
364		-	8 attributable to the project that is the subject of the
365		-	9 Agreement.
366		-	10 (e) Nothing herein shall prohibit a Tax Credit Award to an
367		-	11 Applicant that uses a PEO if all other award criteria are
368		-	12 satisfied.
369		-	13 (f) In lieu of the Credit allowed under this Act against
370		-	14 the taxes imposed pursuant to subsections (a) and (b) of
371		-	15 Section 201 of the Illinois Income Tax Act for any taxable year
372		-	16 ending on or after December 31, 2009, for Taxpayers that
373		-	17 entered into Agreements prior to January 1, 2015 and otherwise
374		-	18 meet the criteria set forth in this subsection (f), the
375		-	19 Taxpayer may elect to claim the Credit against its obligation
376		-	20 to pay over withholding under Section 704A of the Illinois
377		-	21 Income Tax Act.
378		-	22 (1) The election under this subsection (f) may be made
379		-	23 only by a Taxpayer that (i) is primarily engaged in one of
380		-	24 the following business activities: water purification and
381		-	25 treatment, motor vehicle metal stamping, automobile
382		-	26 manufacturing, automobile and light duty motor vehicle
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393		-	1 manufacturing, motor vehicle manufacturing, light truck
394		-	2 and utility vehicle manufacturing, heavy duty truck
395		-	3 manufacturing, motor vehicle body manufacturing, cable
396		-	4 television infrastructure design or manufacturing, or
397		-	5 wireless telecommunication or computing terminal device
398		-	6 design or manufacturing for use on public networks and
399		-	7 (ii) meets the following criteria:
400		-	8 (A) the Taxpayer (i) had an Illinois net loss or an
401		-	9 Illinois net loss deduction under Section 207 of the
402		-	10 Illinois Income Tax Act for the taxable year in which
403		-	11 the Credit is awarded, (ii) employed a minimum of
404		-	12 1,000 full-time employees in this State during the
405		-	13 taxable year in which the Credit is awarded, (iii) has
406		-	14 an Agreement under this Act on December 14, 2009 (the
407		-	15 effective date of Public Act 96-834), and (iv) is in
408		-	16 compliance with all provisions of that Agreement;
409		-	17 (B) the Taxpayer (i) had an Illinois net loss or an
410		-	18 Illinois net loss deduction under Section 207 of the
411		-	19 Illinois Income Tax Act for the taxable year in which
412		-	20 the Credit is awarded, (ii) employed a minimum of
413		-	21 1,000 full-time employees in this State during the
414		-	22 taxable year in which the Credit is awarded, and (iii)
415		-	23 has applied for an Agreement within 365 days after
416		-	24 December 14, 2009 (the effective date of Public Act
417		-	25 96-834);
418		-	26 (C) the Taxpayer (i) had an Illinois net operating
419		-
420		-
421		-
422		-
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429		-	1 loss carryforward under Section 207 of the Illinois
430		-	2 Income Tax Act in a taxable year ending during
431		-	3 calendar year 2008, (ii) has applied for an Agreement
432		-	4 within 150 days after the effective date of this
433		-	5 amendatory Act of the 96th General Assembly, (iii)
434		-	6 creates at least 400 new jobs in Illinois, (iv)
435		-	7 retains at least 2,000 jobs in Illinois that would
436		-	8 have been at risk of relocation out of Illinois over a
437		-	9 10-year period, and (v) makes a capital investment of
438		-	10 at least $75,000,000;
439		-	11 (D) the Taxpayer (i) had an Illinois net operating
440		-	12 loss carryforward under Section 207 of the Illinois
441		-	13 Income Tax Act in a taxable year ending during
442		-	14 calendar year 2009, (ii) has applied for an Agreement
443		-	15 within 150 days after the effective date of this
444		-	16 amendatory Act of the 96th General Assembly, (iii)
445		-	17 creates at least 150 new jobs, (iv) retains at least
446		-	18 1,000 jobs in Illinois that would have been at risk of
447		-	19 relocation out of Illinois over a 10-year period, and
448		-	20 (v) makes a capital investment of at least
449		-	21 $57,000,000; or
450		-	22 (E) the Taxpayer (i) employed at least 2,500
451		-	23 full-time employees in the State during the year in
452		-	24 which the Credit is awarded, (ii) commits to make at
453		-	25 least $500,000,000 in combined capital improvements
454		-	26 and project costs under the Agreement, (iii) applies
455		-
456		-
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458		-
459		-
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461		-
462		-
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465		-	1 for an Agreement between January 1, 2011 and June 30,
466		-	2 2011, (iv) executes an Agreement for the Credit during
467		-	3 calendar year 2011, and (v) was incorporated no more
468		-	4 than 5 years before the filing of an application for an
469		-	5 Agreement.
470		-	6 (1.5) The election under this subsection (f) may also
471		-	7 be made by a Taxpayer for any Credit awarded pursuant to an
472		-	8 agreement that was executed between January 1, 2011 and
473		-	9 June 30, 2011, if the Taxpayer (i) is primarily engaged in
474		-	10 the manufacture of inner tubes or tires, or both, from
475		-	11 natural and synthetic rubber, (ii) employs a minimum of
476		-	12 2,400 full-time employees in Illinois at the time of
477		-	13 application, (iii) creates at least 350 full-time jobs and
478		-	14 retains at least 250 full-time jobs in Illinois that would
479		-	15 have been at risk of being created or retained outside of
480		-	16 Illinois, and (iv) makes a capital investment of at least
481		-	17 $200,000,000 at the project location.
482		-	18 (1.6) The election under this subsection (f) may also
483		-	19 be made by a Taxpayer for any Credit awarded pursuant to an
484		-	20 agreement that was executed within 150 days after the
485		-	21 effective date of this amendatory Act of the 97th General
486		-	22 Assembly, if the Taxpayer (i) is primarily engaged in the
487		-	23 operation of a discount department store, (ii) maintains
488		-	24 its corporate headquarters in Illinois, (iii) employs a
489		-	25 minimum of 4,250 full-time employees at its corporate
490		-	26 headquarters in Illinois at the time of application, (iv)
491		-
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501		-	1 retains at least 4,250 full-time jobs in Illinois that
502		-	2 would have been at risk of being relocated outside of
503		-	3 Illinois, (v) had a minimum of $40,000,000,000 in total
504		-	4 revenue in 2010, and (vi) makes a capital investment of at
505		-	5 least $300,000,000 at the project location.
506		-	6 (1.7) Notwithstanding any other provision of law, the
507		-	7 election under this subsection (f) may also be made by a
508		-	8 Taxpayer for any Credit awarded pursuant to an agreement
509		-	9 that was executed or applied for on or after July 1, 2011
510		-	10 and on or before March 31, 2012, if the Taxpayer is
511		-	11 primarily engaged in the manufacture of original and
512		-	12 aftermarket filtration parts and products for automobiles,
513		-	13 motor vehicles, light duty motor vehicles, light trucks
514		-	14 and utility vehicles, and heavy duty trucks, (ii) employs
515		-	15 a minimum of 1,000 full-time employees in Illinois at the
516		-	16 time of application, (iii) creates at least 250 full-time
517		-	17 jobs in Illinois, (iv) relocates its corporate
518		-	18 headquarters to Illinois from another state, and (v) makes
519		-	19 a capital investment of at least $4,000,000 at the project
520		-	20 location.
521		-	21 (1.8) Notwithstanding any other provision of law, the
522		-	22 election under this subsection (f) may also be made by a
523		-	23 startup taxpayer for any Credit awarded pursuant to an
524		-	24 Agreement that was executed or applied for on or after the
525		-	25 effective date of this amendatory Act of the 102nd General
526		-	26 Assembly, if the startup taxpayer, without considering any
527		-
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530		-
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537		-	1 Related Member or other investor, (i) has never had any
538		-	2 Illinois income tax liability and (ii) was incorporated no
539		-	3 more than 5 years before the filing of an application for
540		-	4 an Agreement. Any such election under this paragraph (1.8)
541		-	5 shall be effective unless and until such startup taxpayer
542		-	6 has any Illinois income tax liability. This election under
543		-	7 this paragraph (1.8) shall automatically terminate when
544		-	8 the startup taxpayer has any Illinois income tax liability
545		-	9 at the end of any taxable year during the term of the
546		-	10 Agreement. Thereafter, the startup taxpayer may receive a
547		-	11 Credit, taking into account any benefits previously
548		-	12 enjoyed or received by way of the election under this
549		-	13 paragraph (1.8), so long as the startup taxpayer remains
550		-	14 in compliance with the terms and conditions of the
551		-	15 Agreement.
552		-	16 (2) An election under this subsection shall allow the
553		-	17 credit to be taken against payments otherwise due under
554		-	18 Section 704A of the Illinois Income Tax Act during the
555		-	19 first calendar quarter year beginning after the end of the
556		-	20 taxable quarter year in which the credit is awarded under
557		-	21 this Act.
558		-	22 (3) The election shall be made in the form and manner
559		-	23 required by the Illinois Department of Revenue and, once
560		-	24 made, shall be irrevocable.
561		-	25 (4) If a Taxpayer who meets the requirements of
562		-	26 subparagraph (A) of paragraph (1) of this subsection (f)
563		-
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573		-	1 elects to claim the Credit against its withholdings as
574		-	2 provided in this subsection (f), then, on and after the
575		-	3 date of the election, the terms of the Agreement between
576		-	4 the Taxpayer and the Department may not be further amended
577		-	5 during the term of the Agreement.
578		-	6 (g) A pass-through entity that has been awarded a credit
579		-	7 under this Act, its shareholders, or its partners may treat
580		-	8 some or all of the credit awarded pursuant to this Act as a tax
581		-	9 payment for purposes of the Illinois Income Tax Act. The term
582		-	10 "tax payment" means a payment as described in Article 6 or
583		-	11 Article 8 of the Illinois Income Tax Act or a composite payment
584		-	12 made by a pass-through entity on behalf of any of its
585		-	13 shareholders or partners to satisfy such shareholders' or
586		-	14 partners' taxes imposed pursuant to subsections (a) and (b) of
587		-	15 Section 201 of the Illinois Income Tax Act. In no event shall
588		-	16 the amount of the award credited pursuant to this Act exceed
589		-	17 the Illinois income tax liability of the pass-through entity
590		-	18 or its shareholders or partners for the taxable year.
591		-	19 (Source: P.A. 102-700, eff. 4-19-22.)
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