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Illinois House Bill HB1503

Illinois 2025-2026 Regular Session

Illinois House Bill HB1503 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1503 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED: 20 ILCS 605/605-1056 new30 ILCS 105/5.1030 new35 ILCS 5/21135 ILCS 10/5-45 Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2027 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately. LRB104 09248 HLH 19306 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1503 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED: 20 ILCS 605/605-1056 new30 ILCS 105/5.1030 new35 ILCS 5/21135 ILCS 10/5-45 20 ILCS 605/605-1056 new 30 ILCS 105/5.1030 new 35 ILCS 5/211 35 ILCS 10/5-45 Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2027 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately. LRB104 09248 HLH 19306 b LRB104 09248 HLH 19306 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1503 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED:
33 20 ILCS 605/605-1056 new30 ILCS 105/5.1030 new35 ILCS 5/21135 ILCS 10/5-45 20 ILCS 605/605-1056 new 30 ILCS 105/5.1030 new 35 ILCS 5/211 35 ILCS 10/5-45
44 20 ILCS 605/605-1056 new
55 30 ILCS 105/5.1030 new
66 35 ILCS 5/211
77 35 ILCS 10/5-45
88 Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2027 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately.
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1414 1 AN ACT concerning State government.
1515 2 Be it enacted by the People of the State of Illinois,
1616 3 represented in the General Assembly:
1717 4 Section 5. The Department of Commerce and Economic
1818 5 Opportunity Law of the Civil Administrative Code of Illinois
1919 6 is amended by adding Section 605-1056 as follows:
2020 7 (20 ILCS 605/605-1056 new)
2121 8 Sec. 605-1056. Veterans' Economic Center Pilot Program.
2222 9 Beginning on January 1, 2026 and continuing through December
2323 10 31, 2029, the Department shall establish and implement a
2424 11 Veterans' Economic Center pilot program for the purposes of
2525 12 assisting veterans in finding employment and addressing the
2626 13 problem of veteran homelessness. In conducting the program,
2727 14 the Department shall partner with local employers in order to
2828 15 better connect veterans with those employers. The Department
2929 16 shall report to the Governor and the General Assembly
3030 17 regarding the effectiveness of the program no later than
3131 18 December 31, 2029.
3232 19 This Section is repealed on January 1, 2031.
3333 20 Section 10. The State Finance Act is amended by adding
3434 21 Section 5.1030 as follows:
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3838 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1503 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED:
3939 20 ILCS 605/605-1056 new30 ILCS 105/5.1030 new35 ILCS 5/21135 ILCS 10/5-45 20 ILCS 605/605-1056 new 30 ILCS 105/5.1030 new 35 ILCS 5/211 35 ILCS 10/5-45
4040 20 ILCS 605/605-1056 new
4141 30 ILCS 105/5.1030 new
4242 35 ILCS 5/211
4343 35 ILCS 10/5-45
4444 Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2027 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately.
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7575 1 (30 ILCS 105/5.1030 new)
7676 2 Sec. 5.1030. The Veterans' Economic Center Fund.
7777 3 Section 15. The Illinois Income Tax Act is amended by
7878 4 changing Section 211 as follows:
7979 5 (35 ILCS 5/211)
8080 6 Sec. 211. Economic Development for a Growing Economy Tax
8181 7 Credit. For tax years beginning on or after January 1, 1999, a
8282 8 Taxpayer who has entered into an Agreement (including a New
8383 9 Construction EDGE Agreement) under the Economic Development
8484 10 for a Growing Economy Tax Credit Act is entitled to a credit
8585 11 against the taxes imposed under subsections (a) and (b) of
8686 12 Section 201 of this Act in an amount to be determined in the
8787 13 Agreement. If the Taxpayer is a partnership or Subchapter S
8888 14 corporation, the credit shall be allowed to the partners or
8989 15 shareholders in accordance with the determination of income
9090 16 and distributive share of income under Sections 702 and 704
9191 17 and subchapter S of the Internal Revenue Code. The Department,
9292 18 in cooperation with the Department of Commerce and Economic
9393 19 Opportunity, shall prescribe rules to enforce and administer
9494 20 the provisions of this Section. This Section is exempt from
9595 21 the provisions of Section 250 of this Act.
9696 22 The credit shall be subject to the conditions set forth in
9797 23 the Agreement and the following limitations:
9898 24 (1) The tax credit shall not exceed the Incremental
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109109 1 Income Tax (as defined in Section 5-5 of the Economic
110110 2 Development for a Growing Economy Tax Credit Act) with
111111 3 respect to the project; additionally, the New Construction
112112 4 EDGE Credit shall not exceed the New Construction EDGE
113113 5 Incremental Income Tax (as defined in Section 5-5 of the
114114 6 Economic Development for a Growing Economy Tax Credit
115115 7 Act).
116116 8 (2) The amount of the credit allowed during the tax
117117 9 year plus the sum of all amounts allowed in prior years
118118 10 shall not exceed 100% of the aggregate amount expended by
119119 11 the Taxpayer during all prior tax years on approved costs
120120 12 defined by Agreement.
121121 13 (3) The amount of the credit shall be determined on an
122122 14 annual basis. Except as applied in a carryover year
123123 15 pursuant to Section 211(4) of this Act, the credit may not
124124 16 be applied against any State income tax liability in more
125125 17 than 10 taxable years; provided, however, that (i) an
126126 18 eligible business certified by the Department of Commerce
127127 19 and Economic Opportunity under the Corporate Headquarters
128128 20 Relocation Act may not apply the credit against any of its
129129 21 State income tax liability in more than 15 taxable years
130130 22 and (ii) credits allowed to that eligible business are
131131 23 subject to the conditions and requirements set forth in
132132 24 Sections 5-35 and 5-45 of the Economic Development for a
133133 25 Growing Economy Tax Credit Act and Section 5-51 as
134134 26 applicable to New Construction EDGE Credits.
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145145 1 (4) The credit may not exceed the amount of taxes
146146 2 imposed pursuant to subsections (a) and (b) of Section 201
147147 3 of this Act. Any credit that is unused in the year the
148148 4 credit is computed may be carried forward and applied to
149149 5 the tax liability of the 5 taxable years following the
150150 6 excess credit year, except as otherwise provided under
151151 7 paragraph (4.5) of this Section. The credit shall be
152152 8 applied to the earliest year for which there is a tax
153153 9 liability. If there are credits from more than one tax
154154 10 year that are available to offset a liability, the earlier
155155 11 credit shall be applied first.
156156 12 (4.5) The Department of Commerce and Economic
157157 13 Opportunity, in consultation with the Department of
158158 14 Revenue, shall adopt rules to extend the sunset of any
159159 15 earned, existing, or unused credit as provided for in
160160 16 Section 605-1055 of the Department of Commerce and
161161 17 Economic Opportunity Law of the Civil Administrative Code
162162 18 of Illinois.
163163 19 (5) No credit shall be allowed with respect to any
164164 20 Agreement for any taxable year ending after the
165165 21 Noncompliance Date. Upon receiving notification by the
166166 22 Department of Commerce and Economic Opportunity of the
167167 23 noncompliance of a Taxpayer with an Agreement, the
168168 24 Department shall notify the Taxpayer that no credit is
169169 25 allowed with respect to that Agreement for any taxable
170170 26 year ending after the Noncompliance Date, as stated in
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181181 1 such notification. If any credit has been allowed with
182182 2 respect to an Agreement for a taxable year ending after
183183 3 the Noncompliance Date for that Agreement, any refund paid
184184 4 to the Taxpayer for that taxable year shall, to the extent
185185 5 of that credit allowed, be an erroneous refund within the
186186 6 meaning of Section 912 of this Act.
187187 7 If, during any taxable year, a taxpayer ceases
188188 8 operations at a project location that is the subject of
189189 9 that Agreement with the intent to terminate operations in
190190 10 the State, the tax imposed under subsections (a) and (b)
191191 11 of Section 201 of this Act for such taxable year shall be
192192 12 increased by the amount of any credit allowed under the
193193 13 Agreement for that project location prior to the date the
194194 14 taxpayer ceases operations.
195195 15 (6) For purposes of this Section, the terms
196196 16 "Agreement", "Incremental Income Tax", "New Construction
197197 17 EDGE Agreement", "New Construction EDGE Credit", "New
198198 18 Construction EDGE Incremental Income Tax", and
199199 19 "Noncompliance Date" have the same meaning as when used in
200200 20 the Economic Development for a Growing Economy Tax Credit
201201 21 Act.
202202 22 (7) Agreements entered into on or after the effective
203203 23 date of this amendatory Act of the 104th General Assembly
204204 24 are subject to the limitations set forth in subsection (d)
205205 25 of Section 5-45 of the Economic Development for a Growing
206206 26 Economy Tax Credit Act.
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217217 1 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
218218 2 102-40, eff. 6-25-21; 102-687, eff. 12-17-21.)
219219 3 Section 20. The Economic Development for a Growing Economy
220220 4 Tax Credit Act is amended by changing Section 5-45 as follows:
221221 5 (35 ILCS 10/5-45)
222222 6 Sec. 5-45. Amount and duration of the credit.
223223 7 (a) The Department shall determine the amount and duration
224224 8 of the credit awarded under this Act. The duration of the
225225 9 credit may not exceed 10 taxable years for projects qualified
226226 10 under paragraph (1), (1.5), or (1.6) of subsection (b) of
227227 11 Section 5-20 or 15 taxable years for projects qualified under
228228 12 paragraph (1.7) of subsection (b) of Section 5-20. The credit
229229 13 may be stated as a percentage of the Incremental Income Tax
230230 14 attributable to the applicant's project and may include a
231231 15 fixed dollar limitation.
232232 16 (b) Notwithstanding subsection (a), and except as the
233233 17 credit may be applied in a carryover year pursuant to Section
234234 18 211(4) of the Illinois Income Tax Act, the credit may be
235235 19 applied against the State income tax liability in more than 10
236236 20 taxable years but not in more than 15 taxable years for an
237237 21 eligible business that (i) qualifies under this Act and the
238238 22 Corporate Headquarters Relocation Act and has in fact
239239 23 undertaken a qualifying project within the time frame
240240 24 specified by the Department of Commerce and Economic
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251251 1 Opportunity under that Act, and (ii) applies against its State
252252 2 income tax liability, during the entire 15-year period, no
253253 3 more than 60% of the maximum credit per year that would
254254 4 otherwise be available under this Act.
255255 5 (c) Nothing in this Section shall prevent the Department,
256256 6 in consultation with the Department of Revenue, from adopting
257257 7 rules to extend the sunset of any earned, existing, and unused
258258 8 tax credit or credits a taxpayer may be in possession of, as
259259 9 provided for in Section 605-1070 of the Department of Commerce
260260 10 and Economic Opportunity Law of the Civil Administrative Code
261261 11 of Illinois, notwithstanding the carry-forward provisions
262262 12 pursuant to paragraph (4) of Section 211 of the Illinois
263263 13 Income Tax Act.
264264 14 (d) Notwithstanding any other provision of law, a taxpayer
265265 15 who receives a credit under this Act for a taxable year ending
266266 16 on or before December 31, 2027 pursuant to an Agreement
267267 17 entered into on or after the effective date of this amendatory
268268 18 Act of the 104th General Assembly may apply only 98% of that
269269 19 credit amount against his or her State income tax liability in
270270 20 any taxable year. By July 1, 2025, and by July 1 of each
271271 21 calendar year thereafter through calendar year 2028, the
272272 22 Department shall certify to the Comptroller an amount equal to
273273 23 2% of the total credits awarded under this Section pursuant to
274274 24 an Agreement entered into on or after the effective date of
275275 25 this amendatory Act of the 104th General Assembly for a
276276 26 taxable year ending during the previous calendar year.
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287287 1 Immediately upon receipt of the certification, the State
288288 2 Comptroller shall direct and the State Treasurer shall
289289 3 transfer the certified amount from the General Revenue Fund
290290 4 into the Veterans' Economic Center Fund, a special fund
291291 5 created in the State treasury. Moneys in the Veterans'
292292 6 Economic Center Fund shall be used by the Department of
293293 7 Commerce and Economic Opportunity to administer the Veterans'
294294 8 Economic Center pilot program established under Section
295295 9 605-1056 of the Department of Commerce and Economic
296296 10 Opportunity Law of the Civil Administrative Code of Illinois.
297297 11 (Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22;
298298 12 103-595, eff. 6-26-24.)
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