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
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
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
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A BILL FOR
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HB1503 LRB104 09248 HLH 19306 b
1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Department of Commerce and Economic
5 Opportunity Law of the Civil Administrative Code of Illinois
6 is amended by adding Section 605-1056 as follows:
7 (20 ILCS 605/605-1056 new)
8 Sec. 605-1056. Veterans' Economic Center Pilot Program.
9 Beginning on January 1, 2026 and continuing through December
10 31, 2029, the Department shall establish and implement a
11 Veterans' Economic Center pilot program for the purposes of
12 assisting veterans in finding employment and addressing the
13 problem of veteran homelessness. In conducting the program,
14 the Department shall partner with local employers in order to
15 better connect veterans with those employers. The Department
16 shall report to the Governor and the General Assembly
17 regarding the effectiveness of the program no later than
18 December 31, 2029.
19 This Section is repealed on January 1, 2031.
20 Section 10. The State Finance Act is amended by adding
21 Section 5.1030 as follows:
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
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
LRB104 09248 HLH 19306 b
A BILL FOR
20 ILCS 605/605-1056 new
30 ILCS 105/5.1030 new
35 ILCS 5/211
35 ILCS 10/5-45
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1 (30 ILCS 105/5.1030 new)
2 Sec. 5.1030. The Veterans' Economic Center Fund.
3 Section 15. The Illinois Income Tax Act is amended by
4 changing Section 211 as follows:
5 (35 ILCS 5/211)
6 Sec. 211. Economic Development for a Growing Economy Tax
7 Credit. For tax years beginning on or after January 1, 1999, a
8 Taxpayer who has entered into an Agreement (including a New
9 Construction EDGE Agreement) under the Economic Development
10 for a Growing Economy Tax Credit Act is entitled to a credit
11 against the taxes imposed under subsections (a) and (b) of
12 Section 201 of this Act in an amount to be determined in the
13 Agreement. If the Taxpayer is a partnership or Subchapter S
14 corporation, the credit shall be allowed to the partners or
15 shareholders in accordance with the determination of income
16 and distributive share of income under Sections 702 and 704
17 and subchapter S of the Internal Revenue Code. The Department,
18 in cooperation with the Department of Commerce and Economic
19 Opportunity, shall prescribe rules to enforce and administer
20 the provisions of this Section. This Section is exempt from
21 the provisions of Section 250 of this Act.
22 The credit shall be subject to the conditions set forth in
23 the Agreement and the following limitations:
24 (1) The tax credit shall not exceed the Incremental
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1 Income Tax (as defined in Section 5-5 of the Economic
2 Development for a Growing Economy Tax Credit Act) with
3 respect to the project; additionally, the New Construction
4 EDGE Credit shall not exceed the New Construction EDGE
5 Incremental Income Tax (as defined in Section 5-5 of the
6 Economic Development for a Growing Economy Tax Credit
7 Act).
8 (2) The amount of the credit allowed during the tax
9 year plus the sum of all amounts allowed in prior years
10 shall not exceed 100% of the aggregate amount expended by
11 the Taxpayer during all prior tax years on approved costs
12 defined by Agreement.
13 (3) The amount of the credit shall be determined on an
14 annual basis. Except as applied in a carryover year
15 pursuant to Section 211(4) of this Act, the credit may not
16 be applied against any State income tax liability in more
17 than 10 taxable years; provided, however, that (i) an
18 eligible business certified by the Department of Commerce
19 and Economic Opportunity under the Corporate Headquarters
20 Relocation Act may not apply the credit against any of its
21 State income tax liability in more than 15 taxable years
22 and (ii) credits allowed to that eligible business are
23 subject to the conditions and requirements set forth in
24 Sections 5-35 and 5-45 of the Economic Development for a
25 Growing Economy Tax Credit Act and Section 5-51 as
26 applicable to New Construction EDGE Credits.
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1 (4) The credit may not exceed the amount of taxes
2 imposed pursuant to subsections (a) and (b) of Section 201
3 of this Act. Any credit that is unused in the year the
4 credit is computed may be carried forward and applied to
5 the tax liability of the 5 taxable years following the
6 excess credit year, except as otherwise provided under
7 paragraph (4.5) of this Section. The credit shall be
8 applied to the earliest year for which there is a tax
9 liability. If there are credits from more than one tax
10 year that are available to offset a liability, the earlier
11 credit shall be applied first.
12 (4.5) The Department of Commerce and Economic
13 Opportunity, in consultation with the Department of
14 Revenue, shall adopt rules to extend the sunset of any
15 earned, existing, or unused credit as provided for in
16 Section 605-1055 of the Department of Commerce and
17 Economic Opportunity Law of the Civil Administrative Code
18 of Illinois.
19 (5) No credit shall be allowed with respect to any
20 Agreement for any taxable year ending after the
21 Noncompliance Date. Upon receiving notification by the
22 Department of Commerce and Economic Opportunity of the
23 noncompliance of a Taxpayer with an Agreement, the
24 Department shall notify the Taxpayer that no credit is
25 allowed with respect to that Agreement for any taxable
26 year ending after the Noncompliance Date, as stated in
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1 such notification. If any credit has been allowed with
2 respect to an Agreement for a taxable year ending after
3 the Noncompliance Date for that Agreement, any refund paid
4 to the Taxpayer for that taxable year shall, to the extent
5 of that credit allowed, be an erroneous refund within the
6 meaning of Section 912 of this Act.
7 If, during any taxable year, a taxpayer ceases
8 operations at a project location that is the subject of
9 that Agreement with the intent to terminate operations in
10 the State, the tax imposed under subsections (a) and (b)
11 of Section 201 of this Act for such taxable year shall be
12 increased by the amount of any credit allowed under the
13 Agreement for that project location prior to the date the
14 taxpayer ceases operations.
15 (6) For purposes of this Section, the terms
16 "Agreement", "Incremental Income Tax", "New Construction
17 EDGE Agreement", "New Construction EDGE Credit", "New
18 Construction EDGE Incremental Income Tax", and
19 "Noncompliance Date" have the same meaning as when used in
20 the Economic Development for a Growing Economy Tax Credit
21 Act.
22 (7) Agreements entered into on or after the effective
23 date of this amendatory Act of the 104th General Assembly
24 are subject to the limitations set forth in subsection (d)
25 of Section 5-45 of the Economic Development for a Growing
26 Economy Tax Credit Act.
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1 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
2 102-40, eff. 6-25-21; 102-687, eff. 12-17-21.)
3 Section 20. The Economic Development for a Growing Economy
4 Tax Credit Act is amended by changing Section 5-45 as follows:
5 (35 ILCS 10/5-45)
6 Sec. 5-45. Amount and duration of the credit.
7 (a) The Department shall determine the amount and duration
8 of the credit awarded under this Act. The duration of the
9 credit may not exceed 10 taxable years for projects qualified
10 under paragraph (1), (1.5), or (1.6) of subsection (b) of
11 Section 5-20 or 15 taxable years for projects qualified under
12 paragraph (1.7) of subsection (b) of Section 5-20. The credit
13 may be stated as a percentage of the Incremental Income Tax
14 attributable to the applicant's project and may include a
15 fixed dollar limitation.
16 (b) Notwithstanding subsection (a), and except as the
17 credit may be applied in a carryover year pursuant to Section
18 211(4) of the Illinois Income Tax Act, the credit may be
19 applied against the State income tax liability in more than 10
20 taxable years but not in more than 15 taxable years for an
21 eligible business that (i) qualifies under this Act and the
22 Corporate Headquarters Relocation Act and has in fact
23 undertaken a qualifying project within the time frame
24 specified by the Department of Commerce and Economic
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1 Opportunity under that Act, and (ii) applies against its State
2 income tax liability, during the entire 15-year period, no
3 more than 60% of the maximum credit per year that would
4 otherwise be available under this Act.
5 (c) Nothing in this Section shall prevent the Department,
6 in consultation with the Department of Revenue, from adopting
7 rules to extend the sunset of any earned, existing, and unused
8 tax credit or credits a taxpayer may be in possession of, as
9 provided for in Section 605-1070 of the Department of Commerce
10 and Economic Opportunity Law of the Civil Administrative Code
11 of Illinois, notwithstanding the carry-forward provisions
12 pursuant to paragraph (4) of Section 211 of the Illinois
13 Income Tax Act.
14 (d) Notwithstanding any other provision of law, a taxpayer
15 who receives a credit under this Act for a taxable year ending
16 on or before December 31, 2027 pursuant to an Agreement
17 entered into on or after the effective date of this amendatory
18 Act of the 104th General Assembly may apply only 98% of that
19 credit amount against his or her State income tax liability in
20 any taxable year. By July 1, 2025, and by July 1 of each
21 calendar year thereafter through calendar year 2028, the
22 Department shall certify to the Comptroller an amount equal to
23 2% of the total credits awarded under this Section pursuant to
24 an Agreement entered into on or after the effective date of
25 this amendatory Act of the 104th General Assembly for a
26 taxable year ending during the previous calendar year.
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1 Immediately upon receipt of the certification, the State
2 Comptroller shall direct and the State Treasurer shall
3 transfer the certified amount from the General Revenue Fund
4 into the Veterans' Economic Center Fund, a special fund
5 created in the State treasury. Moneys in the Veterans'
6 Economic Center Fund shall be used by the Department of
7 Commerce and Economic Opportunity to administer the Veterans'
8 Economic Center pilot program established under Section
9 605-1056 of the Department of Commerce and Economic
10 Opportunity Law of the Civil Administrative Code of Illinois.
11 (Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22;
12 103-595, eff. 6-26-24.)
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