Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0135 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 SB0135 Introduced 1/17/2025, by Sen. Sally J. Turner SYNOPSIS AS INTRODUCED: 35 ILCS 5/21135 ILCS 10/5-45 Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the recipient of a credit under the Act may apply for a certificate of transferability of credit from the Department of Commerce and Economic Opportunity for the amount of the credit not previously claimed. Provides that the transferability certificate may be transferred or sold by the recipient to another Illinois taxpayer. Provides that unused Economic Development for a Growing Economy tax credits may be carried forward for a period of 10 years (currently, 5 years). Makes other changes. LRB104 03839 HLH 13863 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0135 Introduced 1/17/2025, by Sen. Sally J. Turner SYNOPSIS AS INTRODUCED: 35 ILCS 5/21135 ILCS 10/5-45 35 ILCS 5/211 35 ILCS 10/5-45 Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the recipient of a credit under the Act may apply for a certificate of transferability of credit from the Department of Commerce and Economic Opportunity for the amount of the credit not previously claimed. Provides that the transferability certificate may be transferred or sold by the recipient to another Illinois taxpayer. Provides that unused Economic Development for a Growing Economy tax credits may be carried forward for a period of 10 years (currently, 5 years). Makes other changes. LRB104 03839 HLH 13863 b LRB104 03839 HLH 13863 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0135 Introduced 1/17/2025, by Sen. Sally J. Turner SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/21135 ILCS 10/5-45 35 ILCS 5/211 35 ILCS 10/5-45
4	4	35 ILCS 5/211
5	5	35 ILCS 10/5-45
6	6	Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the recipient of a credit under the Act may apply for a certificate of transferability of credit from the Department of Commerce and Economic Opportunity for the amount of the credit not previously claimed. Provides that the transferability certificate may be transferred or sold by the recipient to another Illinois taxpayer. Provides that unused Economic Development for a Growing Economy tax credits may be carried forward for a period of 10 years (currently, 5 years). Makes other changes.
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9	9	A BILL FOR
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12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Illinois Income Tax Act is amended by
16	16	5 changing Section 211 as follows:
17	17	6 (35 ILCS 5/211)
18	18	7 Sec. 211. Economic Development for a Growing Economy Tax
19	19	8 Credit. For tax years beginning on or after January 1, 1999, a
20	20	9 Taxpayer who has entered into an Agreement (including a New
21	21	10 Construction EDGE Agreement) under the Economic Development
22	22	11 for a Growing Economy Tax Credit Act is entitled to a credit
23	23	12 against the taxes imposed under subsections (a) and (b) of
24	24	13 Section 201 of this Act in an amount to be determined in the
25	25	14 Agreement. If the Taxpayer is a partnership or Subchapter S
26	26	15 corporation, the credit shall be allowed to the partners or
27	27	16 shareholders in accordance with the determination of income
28	28	17 and distributive share of income under Sections 702 and 704
29	29	18 and subchapter S of the Internal Revenue Code. The Department,
30	30	19 in cooperation with the Department of Commerce and Economic
31	31	20 Opportunity, shall prescribe rules to enforce and administer
32	32	21 the provisions of this Section. This Section is exempt from
33	33	22 the provisions of Section 250 of this Act.
34	34	23 The credit shall be subject to the conditions set forth in
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38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0135 Introduced 1/17/2025, by Sen. Sally J. Turner SYNOPSIS AS INTRODUCED:
39	39	35 ILCS 5/21135 ILCS 10/5-45 35 ILCS 5/211 35 ILCS 10/5-45
40	40	35 ILCS 5/211
41	41	35 ILCS 10/5-45
42	42	Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the recipient of a credit under the Act may apply for a certificate of transferability of credit from the Department of Commerce and Economic Opportunity for the amount of the credit not previously claimed. Provides that the transferability certificate may be transferred or sold by the recipient to another Illinois taxpayer. Provides that unused Economic Development for a Growing Economy tax credits may be carried forward for a period of 10 years (currently, 5 years). Makes other changes.
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45	45	A BILL FOR
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52	52	35 ILCS 10/5-45
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71	71	1 the Agreement and the following limitations:
72	72	2 (1) The tax credit shall not exceed the Incremental
73	73	3 Income Tax (as defined in Section 5-5 of the Economic
74	74	4 Development for a Growing Economy Tax Credit Act) with
75	75	5 respect to the project; additionally, the New Construction
76	76	6 EDGE Credit shall not exceed the New Construction EDGE
77	77	7 Incremental Income Tax (as defined in Section 5-5 of the
78	78	8 Economic Development for a Growing Economy Tax Credit
79	79	9 Act).
80	80	10 (2) The amount of the credit allowed during the tax
81	81	11 year plus the sum of all amounts allowed in prior years
82	82	12 shall not exceed 100% of the aggregate amount expended by
83	83	13 the Taxpayer during all prior tax years on approved costs
84	84	14 defined by Agreement.
85	85	15 (3) The amount of the credit shall be determined on an
86	86	16 annual basis. Except as applied in a carryover year
87	87	17 pursuant to Section 211(4) of this Act, the credit may not
88	88	18 be applied against any State income tax liability in more
89	89	19 than 10 taxable years; provided, however, that (i) an
90	90	20 eligible business certified by the Department of Commerce
91	91	21 and Economic Opportunity under the Corporate Headquarters
92	92	22 Relocation Act may not apply the credit against any of its
93	93	23 State income tax liability in more than 15 taxable years
94	94	24 and (ii) credits allowed to that eligible business are
95	95	25 subject to the conditions and requirements set forth in
96	96	26 Sections 5-35 and 5-45 of the Economic Development for a
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107	107	1 Growing Economy Tax Credit Act and Section 5-51 as
108	108	2 applicable to New Construction EDGE Credits.
109	109	3 (4) The credit may not exceed the amount of taxes
110	110	4 imposed pursuant to subsections (a) and (b) of Section 201
111	111	5 of this Act. Any credit that is unused in the year the
112	112	6 credit is computed may be carried forward and applied to
113	113	7 the tax liability of the 10 5 taxable years following the
114	114	8 excess credit year, except as otherwise provided under
115	115	9 paragraph (4.5) of this Section. It is the intent of the
116	116	10 General Assembly that the carry forward period for all
117	117	11 credits that have not expired as of the effective date of
118	118	12 this amendatory Act of the 104th General Assembly shall be
119	119	13 extended to 10 years. The credit shall be applied to the
120	120	14 earliest year for which there is a tax liability. If there
121	121	15 are credits from more than one tax year that are available
122	122	16 to offset a liability, the earlier credit shall be applied
123	123	17 first.
124	124	18 (4.5) The Department of Commerce and Economic
125	125	19 Opportunity, in consultation with the Department of
126	126	20 Revenue, shall adopt rules to extend the sunset of any
127	127	21 earned, existing, or unused credit as provided for in
128	128	22 Section 605-1055 of the Department of Commerce and
129	129	23 Economic Opportunity Law of the Civil Administrative Code
130	130	24 of Illinois.
131	131	25 (5) No credit shall be allowed with respect to any
132	132	26 Agreement for any taxable year ending after the
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143	143	1 Noncompliance Date. Upon receiving notification by the
144	144	2 Department of Commerce and Economic Opportunity of the
145	145	3 noncompliance of a Taxpayer with an Agreement, the
146	146	4 Department shall notify the Taxpayer that no credit is
147	147	5 allowed with respect to that Agreement for any taxable
148	148	6 year ending after the Noncompliance Date, as stated in
149	149	7 such notification. If any credit has been allowed with
150	150	8 respect to an Agreement for a taxable year ending after
151	151	9 the Noncompliance Date for that Agreement, any refund paid
152	152	10 to the Taxpayer for that taxable year shall, to the extent
153	153	11 of that credit allowed, be an erroneous refund within the
154	154	12 meaning of Section 912 of this Act.
155	155	13 If, during any taxable year, a taxpayer ceases
156	156	14 operations at a project location that is the subject of
157	157	15 that Agreement with the intent to terminate operations in
158	158	16 the State, the tax imposed under subsections (a) and (b)
159	159	17 of Section 201 of this Act for such taxable year shall be
160	160	18 increased by the amount of any credit allowed under the
161	161	19 Agreement for that project location prior to the date the
162	162	20 taxpayer ceases operations.
163	163	21 (6) For purposes of this Section, the terms
164	164	22 "Agreement", "Incremental Income Tax", "New Construction
165	165	23 EDGE Agreement", "New Construction EDGE Credit", "New
166	166	24 Construction EDGE Incremental Income Tax", and
167	167	25 "Noncompliance Date" have the same meaning as when used in
168	168	26 the Economic Development for a Growing Economy Tax Credit
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179	179	1 Act.
180	180	2 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
181	181	3 102-40, eff. 6-25-21; 102-687, eff. 12-17-21.)
182	182	4 Section 10. The Economic Development for a Growing Economy
183	183	5 Tax Credit Act is amended by changing Section 5-45 as follows:
184	184	6 (35 ILCS 10/5-45)
185	185	7 Sec. 5-45. Amount and duration of the credit.
186	186	8 (a) The Department shall determine the amount and duration
187	187	9 of the credit awarded under this Act. The duration of the
188	188	10 credit may not exceed 10 taxable years for projects qualified
189	189	11 under paragraph (1), (1.5), or (1.6) of subsection (b) of
190	190	12 Section 5-20 or 15 taxable years for projects qualified under
191	191	13 paragraph (1.7) of subsection (b) of Section 5-20. The credit
192	192	14 may be stated as a percentage of the Incremental Income Tax
193	193	15 attributable to the applicant's project and may include a
194	194	16 fixed dollar limitation.
195	195	17 (b) Notwithstanding subsection (a), and except as the
196	196	18 credit may be applied in a carryover year pursuant to Section
197	197	19 211(4) of the Illinois Income Tax Act, the credit may be
198	198	20 applied against the State income tax liability in more than 10
199	199	21 taxable years but not in more than 15 taxable years for an
200	200	22 eligible business that (i) qualifies under this Act and the
201	201	23 Corporate Headquarters Relocation Act and has in fact
202	202	24 undertaken a qualifying project within the time frame
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213	213	1 specified by the Department of Commerce and Economic
214	214	2 Opportunity under that Act, and (ii) applies against its State
215	215	3 income tax liability, during the entire 15-year period, no
216	216	4 more than 60% of the maximum credit per year that would
217	217	5 otherwise be available under this Act.
218	218	6 (b-5) Notwithstanding subsection (a) or (b), a recipient
219	219	7 of a credit may request a certificate of transferability of
220	220	8 credit from the Department for the amount of credit not
221	221	9 previously claimed. A transferability certificate so issued
222	222	10 may be transferred or sold by the recipient to another
223	223	11 Illinois taxpayer. Transferors and sellers shall submit to the
224	224	12 Department of Revenue a notification of any transfer or sale
225	225	13 of tax credits within 30 days after the transfer or sale of
226	226	14 those tax credits. The notification, which shall be in the
227	227	15 form prescribed by the Department, shall include the
228	228	16 transferor's tax credit balance prior to transfer, the credit
229	229	17 certificate number, the identifying number of the EDGE
230	230	18 agreement, the transferor's remaining tax credit balance after
231	231	19 transfer, all tax identification numbers for both transferor
232	232	20 and transferee, the date of transfer, the amount transferred,
233	233	21 a copy of the credit certificate, and any other information
234	234	22 required by the Department of Revenue. The transfer or sale of
235	235	23 the credit does not extend the time in which the credit can be
236	236	24 used. The carry forward period for a credit that is
237	237	25 transferred or sold begins on the date on which the credit was
238	238	26 originally granted by the Department. To the extent the
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