INC TX-RECYCLING PROGRAMS
The proposed income tax credit is tiered, offering 25% for investments up to $250,000, 15% for the next $250,000, and 5% for the following $500,000, with a cap of $1 million on qualifying investments. Should the tax credit exceed a taxpayer's liability, they may carry the excess forward to offset future liabilities. This approach aims to encourage more businesses in Illinois to invest in recycling and reclamation efforts, contributing to statewide goals for greater sustainability and waste reduction.
SB2998, introduced in the Illinois General Assembly, amends the Illinois Income Tax Act to create an income tax credit designed to incentivize investments in depreciable property used primarily for collecting or processing reclaimable materials, or for manufacturing products from such materials. This bill aims to bolster recycling initiatives and support environmentally sustainable business practices in Illinois by easing the tax burden on businesses that make such investments. Effective immediately for tax matters beginning January 1, 2025, the bill outlines a structured credit scheme based on the amount invested in qualifying property.
Undoubtedly, the introduction of SB2998 may spark debates concerning its financial implications for state revenues, as tax credits inherently reduce the taxable income base. Supporters of the bill emphasize its potential to create jobs within recycling sectors and reduce landfill waste, while opponents may raise concerns about how much the state could afford to lose in tax revenue, particularly if many businesses take full advantage of the credits. The bill’s success will likely hinge on the balance between environmental benefits and fiscal responsibility.