SB0805 EngrossedLRB103 03260 HLH 48266 b SB0805 Engrossed LRB103 03260 HLH 48266 b SB0805 Engrossed LRB103 03260 HLH 48266 b 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 5. The Economic Development for a Growing Economy 5 Tax Credit Act is amended by changing Sections 5-5 and 5-15 as 6 follows: 7 (35 ILCS 10/5-5) 8 Sec. 5-5. Definitions. As used in this Act: 9 "Agreement" means the Agreement between a Taxpayer and the 10 Department under the provisions of Section 5-50 of this Act. 11 "Applicant" means a Taxpayer that is operating a business 12 located or that the Taxpayer plans to locate within the State 13 of Illinois and that is engaged in interstate or intrastate 14 commerce for the purpose of manufacturing, processing, 15 assembling, warehousing, or distributing products, conducting 16 research and development, providing tourism services, or 17 providing services in interstate commerce, office industries, 18 or agricultural processing, but excluding retail, retail food, 19 health, or professional services. "Applicant" does not include 20 a Taxpayer who closes or substantially reduces an operation at 21 one location in the State and relocates substantially the same 22 operation to another location in the State. This does not 23 prohibit a Taxpayer from expanding its operations at another SB0805 Engrossed LRB103 03260 HLH 48266 b SB0805 Engrossed- 2 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 2 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 2 - LRB103 03260 HLH 48266 b 1 location in the State, provided that existing operations of a 2 similar nature located within the State are not closed or 3 substantially reduced. This also does not prohibit a Taxpayer 4 from moving its operations from one location in the State to 5 another location in the State for the purpose of expanding the 6 operation provided that the Department determines that 7 expansion cannot reasonably be accommodated within the 8 municipality in which the business is located, or in the case 9 of a business located in an incorporated area of the county, 10 within the county in which the business is located, after 11 conferring with the chief elected official of the municipality 12 or county and taking into consideration any evidence offered 13 by the municipality or county regarding the ability to 14 accommodate expansion within the municipality or county. 15 "Credit" means the amount agreed to between the Department 16 and Applicant under this Act, but not to exceed the lesser of: 17 (1) the sum of (i) 50% of the Incremental Income Tax 18 attributable to New Employees at the Applicant's project and 19 (ii) 10% of the training costs of New Employees; or (2) 100% of 20 the Incremental Income Tax attributable to New Employees at 21 the Applicant's project. However, if the project is located in 22 an underserved area, then the amount of the Credit may not 23 exceed the lesser of: (1) the sum of (i) 75% of the Incremental 24 Income Tax attributable to New Employees at the Applicant's 25 project and (ii) 10% of the training costs of New Employees; or 26 (2) 100% of the Incremental Income Tax attributable to New SB0805 Engrossed - 2 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 3 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 3 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 3 - LRB103 03260 HLH 48266 b 1 Employees at the Applicant's project. If the project is not 2 located in an underserved area and the Applicant agrees to 3 hire the required number of New Employees, then the maximum 4 amount of the Credit for that Applicant may be increased by an 5 amount not to exceed 25% of the Incremental Income Tax 6 attributable to retained employees at the Applicant's project. 7 If the project is located in an underserved area and the 8 Applicant agrees to hire the required number of New Employees, 9 then the maximum amount of the credit for that Applicant may be 10 increased by an amount not to exceed 50% of the Incremental 11 Income Tax attributable to retained employees at the 12 Applicant's project. 13 "Department" means the Department of Commerce and Economic 14 Opportunity. 15 "Director" means the Director of Commerce and Economic 16 Opportunity. 17 "Full-time Employee" means an individual who is employed 18 for consideration for at least 35 hours each week or who 19 renders any other standard of service generally accepted by 20 industry custom or practice as full-time employment. An 21 individual for whom a W-2 is issued by a Professional Employer 22 Organization (PEO) is a full-time employee if employed in the 23 service of the Applicant for consideration for at least 35 24 hours each week or who renders any other standard of service 25 generally accepted by industry custom or practice as full-time 26 employment to Applicant. SB0805 Engrossed - 3 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 4 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 4 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 4 - LRB103 03260 HLH 48266 b 1 "Incremental Income Tax" means the total amount withheld 2 during the taxable year from the compensation of New Employees 3 and, if applicable, retained employees under Article 7 of the 4 Illinois Income Tax Act arising from employment at a project 5 that is the subject of an Agreement. 6 "New Construction EDGE Agreement" means the Agreement 7 between a Taxpayer and the Department under the provisions of 8 Section 5-51 of this Act. 9 "New Construction EDGE Credit" means an amount agreed to 10 between the Department and the Applicant under this Act as 11 part of a New Construction EDGE Agreement that does not exceed 12 50% of the Incremental Income Tax attributable to New 13 Construction EDGE Employees at the Applicant's project; 14 however, if the New Construction EDGE Project is located in an 15 underserved area, then the amount of the New Construction EDGE 16 Credit may not exceed 75% of the Incremental Income Tax 17 attributable to New Construction EDGE Employees at the 18 Applicant's New Construction EDGE Project. 19 "New Construction EDGE Employee" means a laborer or worker 20 who is employed by an Illinois contractor or subcontractor in 21 the actual construction work on the site of a New Construction 22 EDGE Project, pursuant to a New Construction EDGE Agreement. 23 "New Construction EDGE Incremental Income Tax" means the 24 total amount withheld during the taxable year from the 25 compensation of New Construction EDGE Employees. 26 "New Construction EDGE Project" means the building of a SB0805 Engrossed - 4 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 5 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 5 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 5 - LRB103 03260 HLH 48266 b 1 Taxpayer's structure or building, or making improvements of 2 any kind to real property. "New Construction EDGE Project" 3 does not include the routine operation, routine repair, or 4 routine maintenance of existing structures, buildings, or real 5 property. 6 "New Employee" means: 7 (a) A Full-time Employee first employed by a Taxpayer 8 in the project that is the subject of an Agreement and who 9 is hired after the Taxpayer enters into the tax credit 10 Agreement. 11 (b) The term "New Employee" does not include: 12 (1) an employee of the Taxpayer who performs a job 13 that was previously performed by another employee, if 14 that job existed for at least 6 months before hiring 15 the employee; 16 (2) an employee of the Taxpayer who was previously 17 employed in Illinois by a Related Member of the 18 Taxpayer and whose employment was shifted to the 19 Taxpayer after the Taxpayer entered into the tax 20 credit Agreement; or 21 (3) a child, grandchild, parent, or spouse, other 22 than a spouse who is legally separated from the 23 individual, of any individual who has a direct or an 24 indirect ownership interest of at least 5% in the 25 profits, capital, or value of the Taxpayer. 26 (c) Notwithstanding paragraph (1) of subsection (b), SB0805 Engrossed - 5 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 6 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 6 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 6 - LRB103 03260 HLH 48266 b 1 an employee may be considered a New Employee under the 2 Agreement if the employee performs a job that was 3 previously performed by an employee who was: 4 (1) treated under the Agreement as a New Employee; 5 and 6 (2) promoted by the Taxpayer to another job. 7 (d) Notwithstanding subsection (a), the Department may 8 award Credit to an Applicant with respect to an employee 9 hired prior to the date of the Agreement if: 10 (1) the Applicant is in receipt of a letter from 11 the Department stating an intent to enter into a 12 credit Agreement; 13 (2) the letter described in paragraph (1) is 14 issued by the Department not later than 15 days after 15 the effective date of this Act; and 16 (3) the employee was hired after the date the 17 letter described in paragraph (1) was issued. 18 "Noncompliance Date" means, in the case of a Taxpayer that 19 is not complying with the requirements of the Agreement or the 20 provisions of this Act, the day following the last date upon 21 which the Taxpayer was in compliance with the requirements of 22 the Agreement and the provisions of this Act, as determined by 23 the Director, pursuant to Section 5-65. 24 "Pass Through Entity" means an entity that is exempt from 25 the tax under subsection (b) or (c) of Section 205 of the 26 Illinois Income Tax Act. SB0805 Engrossed - 6 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 7 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 7 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 7 - LRB103 03260 HLH 48266 b 1 "Professional Employer Organization" (PEO) means an 2 employee leasing company, as defined in Section 206.1(A)(2) of 3 the Illinois Unemployment Insurance Act. 4 "Related Member" means a person that, with respect to the 5 Taxpayer during any portion of the taxable year, is any one of 6 the following: 7 (1) An individual stockholder, if the stockholder and 8 the members of the stockholder's family (as defined in 9 Section 318 of the Internal Revenue Code) own directly, 10 indirectly, beneficially, or constructively, in the 11 aggregate, at least 50% of the value of the Taxpayer's 12 outstanding stock. 13 (2) A partnership, estate, or trust and any partner or 14 beneficiary, if the partnership, estate, or trust, and its 15 partners or beneficiaries own directly, indirectly, 16 beneficially, or constructively, in the aggregate, at 17 least 50% of the profits, capital, stock, or value of the 18 Taxpayer. 19 (3) A corporation, and any party related to the 20 corporation in a manner that would require an attribution 21 of stock from the corporation to the party or from the 22 party to the corporation under the attribution rules of 23 Section 318 of the Internal Revenue Code, if the Taxpayer 24 owns directly, indirectly, beneficially, or constructively 25 at least 50% of the value of the corporation's outstanding 26 stock. SB0805 Engrossed - 7 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 8 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 8 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 8 - LRB103 03260 HLH 48266 b 1 (4) A corporation and any party related to that 2 corporation in a manner that would require an attribution 3 of stock from the corporation to the party or from the 4 party to the corporation under the attribution rules of 5 Section 318 of the Internal Revenue Code, if the 6 corporation and all such related parties own in the 7 aggregate at least 50% of the profits, capital, stock, or 8 value of the Taxpayer. 9 (5) A person to or from whom there is attribution of 10 stock ownership in accordance with Section 1563(e) of the 11 Internal Revenue Code, except, for purposes of determining 12 whether a person is a Related Member under this paragraph, 13 20% shall be substituted for 5% wherever 5% appears in 14 Section 1563(e) of the Internal Revenue Code. 15 "Startup taxpayer" means, for Agreements that are executed 16 before the effective date of this amendatory Act of the 103rd 17 General Assembly, a corporation, partnership, or other entity 18 incorporated or organized no more than 5 years before the 19 filing of an application for an Agreement that has never had 20 any Illinois income tax liability, excluding any Illinois 21 income tax liability of a Related Member which shall not be 22 attributed to the startup taxpayer. "Startup taxpayer" means, 23 for Agreements that are executed on or after the effective 24 date of this amendatory Act of the 103rd General Assembly, a 25 corporation, partnership, or other entity incorporated or 26 organized no more than 10 years before the filing of an SB0805 Engrossed - 8 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 9 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 9 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 9 - LRB103 03260 HLH 48266 b 1 application for an Agreement that has never had any Illinois 2 income tax liability, excluding any Illinois income tax 3 liability of a Related Member which shall not be attributed to 4 the startup taxpayer. 5 "Taxpayer" means an individual, corporation, partnership, 6 or other entity that has any Illinois Income Tax liability. 7 Until July 1, 2022, "underserved area" means a geographic 8 area that meets one or more of the following conditions: 9 (1) the area has a poverty rate of at least 20% 10 according to the latest federal decennial census; 11 (2) 75% or more of the children in the area 12 participate in the federal free lunch program according to 13 reported statistics from the State Board of Education; 14 (3) at least 20% of the households in the area receive 15 assistance under the Supplemental Nutrition Assistance 16 Program (SNAP); or 17 (4) the area has an average unemployment rate, as 18 determined by the Illinois Department of Employment 19 Security, that is more than 120% of the national 20 unemployment average, as determined by the U.S. Department 21 of Labor, for a period of at least 2 consecutive calendar 22 years preceding the date of the application. 23 On and after July 1, 2022, "underserved area" means a 24 geographic area that meets one or more of the following 25 conditions: 26 (1) the area has a poverty rate of at least 20% SB0805 Engrossed - 9 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 10 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 10 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 10 - LRB103 03260 HLH 48266 b 1 according to the latest American Community Survey; 2 (2) 35% or more of the families with children in the 3 area are living below 130% of the poverty line, according 4 to the latest American Community Survey; 5 (3) at least 20% of the households in the area receive 6 assistance under the Supplemental Nutrition Assistance 7 Program (SNAP); or 8 (4) the area has an average unemployment rate, as 9 determined by the Illinois Department of Employment 10 Security, that is more than 120% of the national 11 unemployment average, as determined by the U.S. Department 12 of Labor, for a period of at least 2 consecutive calendar 13 years preceding the date of the application. 14 (Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22; 15 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.) 16 (35 ILCS 10/5-15) 17 Sec. 5-15. Tax Credit Awards. Subject to the conditions 18 set forth in this Act, a Taxpayer is entitled to a Credit 19 against or, as described in subsection (g) of this Section, a 20 payment towards taxes imposed pursuant to subsections (a) and 21 (b) of Section 201 of the Illinois Income Tax Act that may be 22 imposed on the Taxpayer for a taxable year beginning on or 23 after January 1, 1999, if the Taxpayer is awarded a Credit by 24 the Department under this Act for that taxable year. 25 (a) The Department shall make Credit awards under this Act SB0805 Engrossed - 10 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 11 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 11 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 11 - LRB103 03260 HLH 48266 b 1 to foster job creation and retention in Illinois. 2 (b) A person that proposes a project to create new jobs in 3 Illinois must enter into an Agreement with the Department for 4 the Credit under this Act. 5 (c) The Credit shall be claimed for the taxable years 6 specified in the Agreement. 7 (d) The Credit shall not exceed the Incremental Income Tax 8 attributable to the project that is the subject of the 9 Agreement. 10 (e) Nothing herein shall prohibit a Tax Credit Award to an 11 Applicant that uses a PEO if all other award criteria are 12 satisfied. 13 (f) In lieu of the Credit allowed under this Act against 14 the taxes imposed pursuant to subsections (a) and (b) of 15 Section 201 of the Illinois Income Tax Act for any taxable year 16 ending on or after December 31, 2009, for Taxpayers that 17 entered into Agreements prior to January 1, 2015 and otherwise 18 meet the criteria set forth in this subsection (f), the 19 Taxpayer may elect to claim the Credit against its obligation 20 to pay over withholding under Section 704A of the Illinois 21 Income Tax Act. 22 (1) The election under this subsection (f) may be made 23 only by a Taxpayer that (i) is primarily engaged in one of 24 the following business activities: water purification and 25 treatment, motor vehicle metal stamping, automobile 26 manufacturing, automobile and light duty motor vehicle SB0805 Engrossed - 11 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 12 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 12 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 12 - LRB103 03260 HLH 48266 b 1 manufacturing, motor vehicle manufacturing, light truck 2 and utility vehicle manufacturing, heavy duty truck 3 manufacturing, motor vehicle body manufacturing, cable 4 television infrastructure design or manufacturing, or 5 wireless telecommunication or computing terminal device 6 design or manufacturing for use on public networks and 7 (ii) meets the following criteria: 8 (A) the Taxpayer (i) had an Illinois net loss or an 9 Illinois net loss deduction under Section 207 of the 10 Illinois Income Tax Act for the taxable year in which 11 the Credit is awarded, (ii) employed a minimum of 12 1,000 full-time employees in this State during the 13 taxable year in which the Credit is awarded, (iii) has 14 an Agreement under this Act on December 14, 2009 (the 15 effective date of Public Act 96-834), and (iv) is in 16 compliance with all provisions of that Agreement; 17 (B) the Taxpayer (i) had an Illinois net loss or an 18 Illinois net loss deduction under Section 207 of the 19 Illinois Income Tax Act for the taxable year in which 20 the Credit is awarded, (ii) employed a minimum of 21 1,000 full-time employees in this State during the 22 taxable year in which the Credit is awarded, and (iii) 23 has applied for an Agreement within 365 days after 24 December 14, 2009 (the effective date of Public Act 25 96-834); 26 (C) the Taxpayer (i) had an Illinois net operating SB0805 Engrossed - 12 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 13 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 13 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 13 - LRB103 03260 HLH 48266 b 1 loss carryforward under Section 207 of the Illinois 2 Income Tax Act in a taxable year ending during 3 calendar year 2008, (ii) has applied for an Agreement 4 within 150 days after the effective date of this 5 amendatory Act of the 96th General Assembly, (iii) 6 creates at least 400 new jobs in Illinois, (iv) 7 retains at least 2,000 jobs in Illinois that would 8 have been at risk of relocation out of Illinois over a 9 10-year period, and (v) makes a capital investment of 10 at least $75,000,000; 11 (D) the Taxpayer (i) had an Illinois net operating 12 loss carryforward under Section 207 of the Illinois 13 Income Tax Act in a taxable year ending during 14 calendar year 2009, (ii) has applied for an Agreement 15 within 150 days after the effective date of this 16 amendatory Act of the 96th General Assembly, (iii) 17 creates at least 150 new jobs, (iv) retains at least 18 1,000 jobs in Illinois that would have been at risk of 19 relocation out of Illinois over a 10-year period, and 20 (v) makes a capital investment of at least 21 $57,000,000; or 22 (E) the Taxpayer (i) employed at least 2,500 23 full-time employees in the State during the year in 24 which the Credit is awarded, (ii) commits to make at 25 least $500,000,000 in combined capital improvements 26 and project costs under the Agreement, (iii) applies SB0805 Engrossed - 13 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 14 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 14 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 14 - LRB103 03260 HLH 48266 b 1 for an Agreement between January 1, 2011 and June 30, 2 2011, (iv) executes an Agreement for the Credit during 3 calendar year 2011, and (v) was incorporated no more 4 than 5 years before the filing of an application for an 5 Agreement. 6 (1.5) The election under this subsection (f) may also 7 be made by a Taxpayer for any Credit awarded pursuant to an 8 agreement that was executed between January 1, 2011 and 9 June 30, 2011, if the Taxpayer (i) is primarily engaged in 10 the manufacture of inner tubes or tires, or both, from 11 natural and synthetic rubber, (ii) employs a minimum of 12 2,400 full-time employees in Illinois at the time of 13 application, (iii) creates at least 350 full-time jobs and 14 retains at least 250 full-time jobs in Illinois that would 15 have been at risk of being created or retained outside of 16 Illinois, and (iv) makes a capital investment of at least 17 $200,000,000 at the project location. 18 (1.6) The election under this subsection (f) may also 19 be made by a Taxpayer for any Credit awarded pursuant to an 20 agreement that was executed within 150 days after the 21 effective date of this amendatory Act of the 97th General 22 Assembly, if the Taxpayer (i) is primarily engaged in the 23 operation of a discount department store, (ii) maintains 24 its corporate headquarters in Illinois, (iii) employs a 25 minimum of 4,250 full-time employees at its corporate 26 headquarters in Illinois at the time of application, (iv) SB0805 Engrossed - 14 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 15 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 15 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 15 - LRB103 03260 HLH 48266 b 1 retains at least 4,250 full-time jobs in Illinois that 2 would have been at risk of being relocated outside of 3 Illinois, (v) had a minimum of $40,000,000,000 in total 4 revenue in 2010, and (vi) makes a capital investment of at 5 least $300,000,000 at the project location. 6 (1.7) Notwithstanding any other provision of law, the 7 election under this subsection (f) may also be made by a 8 Taxpayer for any Credit awarded pursuant to an agreement 9 that was executed or applied for on or after July 1, 2011 10 and on or before March 31, 2012, if the Taxpayer is 11 primarily engaged in the manufacture of original and 12 aftermarket filtration parts and products for automobiles, 13 motor vehicles, light duty motor vehicles, light trucks 14 and utility vehicles, and heavy duty trucks, (ii) employs 15 a minimum of 1,000 full-time employees in Illinois at the 16 time of application, (iii) creates at least 250 full-time 17 jobs in Illinois, (iv) relocates its corporate 18 headquarters to Illinois from another state, and (v) makes 19 a capital investment of at least $4,000,000 at the project 20 location. 21 (1.8) Notwithstanding any other provision of law, the 22 election under this subsection (f) may also be made by a 23 startup taxpayer for any Credit awarded pursuant to an 24 Agreement that was executed or applied for on or after the 25 effective date of this amendatory Act of the 102nd General 26 Assembly, if the startup taxpayer, without considering any SB0805 Engrossed - 15 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 16 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 16 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 16 - LRB103 03260 HLH 48266 b 1 Related Member or other investor, (i) has never had any 2 Illinois income tax liability and (ii) was incorporated no 3 more than 5 years before the filing of an application for 4 an Agreement. Any such election under this paragraph (1.8) 5 shall be effective unless and until such startup taxpayer 6 has any Illinois income tax liability. This election under 7 this paragraph (1.8) shall automatically terminate when 8 the startup taxpayer has any Illinois income tax liability 9 at the end of any taxable year during the term of the 10 Agreement. Thereafter, the startup taxpayer may receive a 11 Credit, taking into account any benefits previously 12 enjoyed or received by way of the election under this 13 paragraph (1.8), so long as the startup taxpayer remains 14 in compliance with the terms and conditions of the 15 Agreement. 16 (2) An election under this subsection shall allow the 17 credit to be taken against payments otherwise due under 18 Section 704A of the Illinois Income Tax Act during the 19 first calendar quarter year beginning after the end of the 20 taxable quarter year in which the credit is awarded under 21 this Act. 22 (3) The election shall be made in the form and manner 23 required by the Illinois Department of Revenue and, once 24 made, shall be irrevocable. 25 (4) If a Taxpayer who meets the requirements of 26 subparagraph (A) of paragraph (1) of this subsection (f) SB0805 Engrossed - 16 - LRB103 03260 HLH 48266 b SB0805 Engrossed- 17 -LRB103 03260 HLH 48266 b SB0805 Engrossed - 17 - LRB103 03260 HLH 48266 b SB0805 Engrossed - 17 - LRB103 03260 HLH 48266 b 1 elects to claim the Credit against its withholdings as 2 provided in this subsection (f), then, on and after the 3 date of the election, the terms of the Agreement between 4 the Taxpayer and the Department may not be further amended 5 during the term of the Agreement. 6 (g) A pass-through entity that has been awarded a credit 7 under this Act, its shareholders, or its partners may treat 8 some or all of the credit awarded pursuant to this Act as a tax 9 payment for purposes of the Illinois Income Tax Act. The term 10 "tax payment" means a payment as described in Article 6 or 11 Article 8 of the Illinois Income Tax Act or a composite payment 12 made by a pass-through entity on behalf of any of its 13 shareholders or partners to satisfy such shareholders' or 14 partners' taxes imposed pursuant to subsections (a) and (b) of 15 Section 201 of the Illinois Income Tax Act. In no event shall 16 the amount of the award credited pursuant to this Act exceed 17 the Illinois income tax liability of the pass-through entity 18 or its shareholders or partners for the taxable year. 19 (Source: P.A. 102-700, eff. 4-19-22.) SB0805 Engrossed - 17 - LRB103 03260 HLH 48266 b