Illinois 2025-2026 Regular Session

Illinois House Bill HB2872 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2872 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: 35 ILCS 10/5-15 Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the business of pharmacy, health, and wellness may elect to claim the Credit under the Act against their obligation to pay over withholding taxes under the Illinois Income Tax Act. LRB104 11842 HLH 21932 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2872 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: 35 ILCS 10/5-15 35 ILCS 10/5-15 Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the business of pharmacy, health, and wellness may elect to claim the Credit under the Act against their obligation to pay over withholding taxes under the Illinois Income Tax Act. LRB104 11842 HLH 21932 b LRB104 11842 HLH 21932 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2872 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 10/5-15 35 ILCS 10/5-15
4	4	35 ILCS 10/5-15
5	5	Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the business of pharmacy, health, and wellness may elect to claim the Credit under the Act against their obligation to pay over withholding taxes under the Illinois Income Tax Act.
6	6	LRB104 11842 HLH 21932 b LRB104 11842 HLH 21932 b
7	7	LRB104 11842 HLH 21932 b
8	8	A BILL FOR
9	9	HB2872LRB104 11842 HLH 21932 b HB2872 LRB104 11842 HLH 21932 b
10	10	HB2872 LRB104 11842 HLH 21932 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Economic Development for a Growing Economy
15	15	5 Tax Credit Act is amended by changing Section 5-15 as follows:
16	16	6 (35 ILCS 10/5-15)
17	17	7 Sec. 5-15. Tax Credit Awards. Subject to the conditions
18	18	8 set forth in this Act, a Taxpayer is entitled to a Credit
19	19	9 against or, as described in subsection (g) of this Section, a
20	20	10 payment towards taxes imposed pursuant to subsections (a) and
21	21	11 (b) of Section 201 of the Illinois Income Tax Act that may be
22	22	12 imposed on the Taxpayer for a taxable year beginning on or
23	23	13 after January 1, 1999, if the Taxpayer is awarded a Credit by
24	24	14 the Department under this Act for that taxable year.
25	25	15 (a) The Department shall make Credit awards under this Act
26	26	16 to foster job creation and retention in Illinois.
27	27	17 (b) A person that proposes a project to create new jobs in
28	28	18 Illinois must enter into an Agreement with the Department for
29	29	19 the Credit under this Act.
30	30	20 (c) The Credit shall be claimed for the taxable years
31	31	21 specified in the Agreement.
32	32	22 (d) The Credit shall not exceed the Incremental Income Tax
33	33	23 attributable to the project that is the subject of the
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2872 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 10/5-15 35 ILCS 10/5-15
39	39	35 ILCS 10/5-15
40	40	Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the business of pharmacy, health, and wellness may elect to claim the Credit under the Act against their obligation to pay over withholding taxes under the Illinois Income Tax Act.
41	41	LRB104 11842 HLH 21932 b LRB104 11842 HLH 21932 b
42	42	LRB104 11842 HLH 21932 b
43	43	A BILL FOR
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49	49	35 ILCS 10/5-15
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68	68	1 Agreement.
69	69	2 (e) Nothing herein shall prohibit a Tax Credit Award to an
70	70	3 Applicant that uses a PEO if all other award criteria are
71	71	4 satisfied.
72	72	5 (f) In lieu of the Credit allowed under this Act against
73	73	6 the taxes imposed pursuant to subsections (a) and (b) of
74	74	7 Section 201 of the Illinois Income Tax Act for any taxable year
75	75	8 ending on or after December 31, 2009, for Taxpayers that
76	76	9 entered into Agreements prior to January 1, 2015 and otherwise
77	77	10 meet the criteria set forth in this subsection (f), the
78	78	11 Taxpayer may elect to claim the Credit against its obligation
79	79	12 to pay over withholding under Section 704A of the Illinois
80	80	13 Income Tax Act.
81	81	14 (1) The election under this subsection (f) may be made
82	82	15 only by a Taxpayer that (i) is primarily engaged in one of
83	83	16 the following business activities: water purification and
84	84	17 treatment, motor vehicle metal stamping, automobile
85	85	18 manufacturing, automobile and light duty motor vehicle
86	86	19 manufacturing, motor vehicle manufacturing, light truck
87	87	20 and utility vehicle manufacturing, heavy duty truck
88	88	21 manufacturing, motor vehicle body manufacturing, cable
89	89	22 television infrastructure design or manufacturing, or
90	90	23 wireless telecommunication or computing terminal device
91	91	24 design or manufacturing for use on public networks and
92	92	25 (ii) meets the following criteria:
93	93	26 (A) the Taxpayer (i) had an Illinois net loss or an
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104	104	1 Illinois net loss deduction under Section 207 of the
105	105	2 Illinois Income Tax Act for the taxable year in which
106	106	3 the Credit is awarded, (ii) employed a minimum of
107	107	4 1,000 full-time employees in this State during the
108	108	5 taxable year in which the Credit is awarded, (iii) has
109	109	6 an Agreement under this Act on December 14, 2009 (the
110	110	7 effective date of Public Act 96-834), and (iv) is in
111	111	8 compliance with all provisions of that Agreement;
112	112	9 (B) the Taxpayer (i) had an Illinois net loss or an
113	113	10 Illinois net loss deduction under Section 207 of the
114	114	11 Illinois Income Tax Act for the taxable year in which
115	115	12 the Credit is awarded, (ii) employed a minimum of
116	116	13 1,000 full-time employees in this State during the
117	117	14 taxable year in which the Credit is awarded, and (iii)
118	118	15 has applied for an Agreement within 365 days after
119	119	16 December 14, 2009 (the effective date of Public Act
120	120	17 96-834);
121	121	18 (C) the Taxpayer (i) had an Illinois net operating
122	122	19 loss carryforward under Section 207 of the Illinois
123	123	20 Income Tax Act in a taxable year ending during
124	124	21 calendar year 2008, (ii) has applied for an Agreement
125	125	22 within 150 days after the effective date of this
126	126	23 amendatory Act of the 96th General Assembly, (iii)
127	127	24 creates at least 400 new jobs in Illinois, (iv)
128	128	25 retains at least 2,000 jobs in Illinois that would
129	129	26 have been at risk of relocation out of Illinois over a
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140	140	1 10-year period, and (v) makes a capital investment of
141	141	2 at least $75,000,000;
142	142	3 (D) the Taxpayer (i) had an Illinois net operating
143	143	4 loss carryforward under Section 207 of the Illinois
144	144	5 Income Tax Act in a taxable year ending during
145	145	6 calendar year 2009, (ii) has applied for an Agreement
146	146	7 within 150 days after the effective date of this
147	147	8 amendatory Act of the 96th General Assembly, (iii)
148	148	9 creates at least 150 new jobs, (iv) retains at least
149	149	10 1,000 jobs in Illinois that would have been at risk of
150	150	11 relocation out of Illinois over a 10-year period, and
151	151	12 (v) makes a capital investment of at least
152	152	13 $57,000,000; or
153	153	14 (E) the Taxpayer (i) employed at least 2,500
154	154	15 full-time employees in the State during the year in
155	155	16 which the Credit is awarded, (ii) commits to make at
156	156	17 least $500,000,000 in combined capital improvements
157	157	18 and project costs under the Agreement, (iii) applies
158	158	19 for an Agreement between January 1, 2011 and June 30,
159	159	20 2011, (iv) executes an Agreement for the Credit during
160	160	21 calendar year 2011, and (v) was incorporated no more
161	161	22 than 5 years before the filing of an application for an
162	162	23 Agreement.
163	163	24 (1.5) The election under this subsection (f) may also
164	164	25 be made by a Taxpayer for any Credit awarded pursuant to an
165	165	26 agreement that was executed between January 1, 2011 and
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176	176	1 June 30, 2011, if the Taxpayer (i) is primarily engaged in
177	177	2 the manufacture of inner tubes or tires, or both, from
178	178	3 natural and synthetic rubber, (ii) employs a minimum of
179	179	4 2,400 full-time employees in Illinois at the time of
180	180	5 application, (iii) creates at least 350 full-time jobs and
181	181	6 retains at least 250 full-time jobs in Illinois that would
182	182	7 have been at risk of being created or retained outside of
183	183	8 Illinois, and (iv) makes a capital investment of at least
184	184	9 $200,000,000 at the project location.
185	185	10 (1.6) The election under this subsection (f) may also
186	186	11 be made by a Taxpayer for any Credit awarded pursuant to an
187	187	12 agreement that was executed within 150 days after the
188	188	13 effective date of this amendatory Act of the 97th General
189	189	14 Assembly, if the Taxpayer (i) is primarily engaged in the
190	190	15 operation of a discount department store, (ii) maintains
191	191	16 its corporate headquarters in Illinois, (iii) employs a
192	192	17 minimum of 4,250 full-time employees at its corporate
193	193	18 headquarters in Illinois at the time of application, (iv)
194	194	19 retains at least 4,250 full-time jobs in Illinois that
195	195	20 would have been at risk of being relocated outside of
196	196	21 Illinois, (v) had a minimum of $40,000,000,000 in total
197	197	22 revenue in 2010, and (vi) makes a capital investment of at
198	198	23 least $300,000,000 at the project location.
199	199	24 (1.7) Notwithstanding any other provision of law, the
200	200	25 election under this subsection (f) may also be made by a
201	201	26 Taxpayer for any Credit awarded pursuant to an agreement
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212	212	1 that was executed or applied for on or after July 1, 2011
213	213	2 and on or before March 31, 2012, if the Taxpayer is
214	214	3 primarily engaged in the manufacture of original and
215	215	4 aftermarket filtration parts and products for automobiles,
216	216	5 motor vehicles, light duty motor vehicles, light trucks
217	217	6 and utility vehicles, and heavy duty trucks, (ii) employs
218	218	7 a minimum of 1,000 full-time employees in Illinois at the
219	219	8 time of application, (iii) creates at least 250 full-time
220	220	9 jobs in Illinois, (iv) relocates its corporate
221	221	10 headquarters to Illinois from another state, and (v) makes
222	222	11 a capital investment of at least $4,000,000 at the project
223	223	12 location.
224	224	13 (1.8) Notwithstanding any other provision of law, the
225	225	14 election under this subsection (f) may also be made by a
226	226	15 startup taxpayer for any Credit awarded pursuant to an
227	227	16 Agreement that was executed on or after the effective date
228	228	17 of this amendatory Act of the 102nd General Assembly. Any
229	229	18 such election under this paragraph (1.8) shall be
230	230	19 effective unless and until such startup taxpayer has any
231	231	20 Illinois income tax liability. This election under this
232	232	21 paragraph (1.8) shall automatically terminate when the
233	233	22 startup taxpayer has any Illinois income tax liability at
234	234	23 the end of any taxable year during the term of the
235	235	24 Agreement. Thereafter, the startup taxpayer may receive a
236	236	25 Credit, taking into account any benefits previously
237	237	26 enjoyed or received by way of the election under this
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248	248	1 paragraph (1.8), so long as the startup taxpayer remains
249	249	2 in compliance with the terms and conditions of the
250	250	3 Agreement.
251	251	4 (1.9) Notwithstanding any other provision of law, the
252	252	5 election under this subsection (f) may also be made by an
253	253	6 applicant qualified under paragraph (1.7) of subsection
254	254	7 (b) of Section 5-20 for any Credit awarded pursuant to an
255	255	8 Agreement that was executed on or after the effective date
256	256	9 of this amendatory Act of the 103rd General Assembly. Any
257	257	10 such election under this paragraph (1.9) shall be
258	258	11 effective unless and until such taxpayer has any Illinois
259	259	12 income tax liability. This election under this paragraph
260	260	13 (1.9) shall automatically terminate when the taxpayer has
261	261	14 any Illinois income tax liability at the end of any
262	262	15 taxable year during the term of the Agreement. Thereafter,
263	263	16 the startup taxpayer may receive a Credit, taking into
264	264	17 account any benefits previously enjoyed or received by way
265	265	18 of the election under this paragraph (1.9), so long as the
266	266	19 startup taxpayer remains in compliance with the terms and
267	267	20 conditions of the Agreement.
268	268	21 (1.10) Notwithstanding any other provision of law, the
269	269	22 election under this subsection (f) may also be made by a
270	270	23 taxpayer that: (i) is primarily engaged in the business of
271	271	24 pharmacy, health, and wellness; (ii) maintains its
272	272	25 corporate headquarters in Illinois; (iii) maintains a
273	273	26 minimum of 500 retail locations throughout the State; (iv)
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284	284	1 employs at least 2,500 employees in full-time jobs or
285	285	2 full-time equivalent jobs, some of whom would be at risk
286	286	3 of termination if not for the use of the Credit as provided
287	287	4 in this paragraph; (v) had an Illinois net loss or an
288	288	5 Illinois net loss deduction under Section 207 of the
289	289	6 Illinois Income Tax Act for the taxable year in which the
290	290	7 Credit is awarded or within the 2 years immediately
291	291	8 preceding the taxable year in which the Credit is awarded;
292	292	9 and (vi) and makes an application for an Agreement within
293	293	10 120 days after the effective date of this amendatory Act
294	294	11 of the 104th General Assembly.
295	295	12 (2) An election under this subsection shall allow the
296	296	13 credit to be taken against payments otherwise due under
297	297	14 Section 704A of the Illinois Income Tax Act during the
298	298	15 first calendar quarter beginning after the end of the
299	299	16 taxable quarter in which the credit is awarded under this
300	300	17 Act.
301	301	18 (3) The election shall be made in the form and manner
302	302	19 required by the Illinois Department of Revenue and, once
303	303	20 made, shall be irrevocable.
304	304	21 (4) If a Taxpayer who meets the requirements of
305	305	22 subparagraph (A) of paragraph (1) of this subsection (f)
306	306	23 elects to claim the Credit against its withholdings as
307	307	24 provided in this subsection (f), then, on and after the
308	308	25 date of the election, the terms of the Agreement between
309	309	26 the Taxpayer and the Department may not be further amended
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