Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0227 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 SB0227 Introduced 1/22/2025, by Sen. Lakesia Collins SYNOPSIS AS INTRODUCED: 35 ILCS 5/229 Amends the Illinois Income Tax Act. Provides that, if a taxpayer is awarded a credit by the Department of Commerce and Economic Opportunity in connection with a qualifying Illinois data center located in a qualified area or a data center developed by a minority-owned business, a women-owned business, or a business owned a person with a disability, then the taxpayer is entitled to an additional income tax credit in an amount equal to 5% of the taxpayer's investment in qualified tangible personal property used in the construction or operation of that data center. Effective immediately. LRB104 06844 HLH 16880 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0227 Introduced 1/22/2025, by Sen. Lakesia Collins SYNOPSIS AS INTRODUCED: 35 ILCS 5/229 35 ILCS 5/229 Amends the Illinois Income Tax Act. Provides that, if a taxpayer is awarded a credit by the Department of Commerce and Economic Opportunity in connection with a qualifying Illinois data center located in a qualified area or a data center developed by a minority-owned business, a women-owned business, or a business owned a person with a disability, then the taxpayer is entitled to an additional income tax credit in an amount equal to 5% of the taxpayer's investment in qualified tangible personal property used in the construction or operation of that data center. Effective immediately. LRB104 06844 HLH 16880 b LRB104 06844 HLH 16880 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0227 Introduced 1/22/2025, by Sen. Lakesia Collins SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/229 35 ILCS 5/229
4	4	35 ILCS 5/229
5	5	Amends the Illinois Income Tax Act. Provides that, if a taxpayer is awarded a credit by the Department of Commerce and Economic Opportunity in connection with a qualifying Illinois data center located in a qualified area or a data center developed by a minority-owned business, a women-owned business, or a business owned a person with a disability, then the taxpayer is entitled to an additional income tax credit in an amount equal to 5% of the taxpayer's investment in qualified tangible personal property used in the construction or operation of that data center. Effective immediately.
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8	8	A BILL FOR
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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 Illinois Income Tax Act is amended by
15	15	5 changing Section 229 as follows:
16	16	6 (35 ILCS 5/229)
17	17	7 Sec. 229. Data center construction employment tax credit.
18	18	8 (a) A taxpayer who has been awarded a credit by the
19	19	9 Department of Commerce and Economic Opportunity under Section
20	20	10 605-1025 of the Department of Commerce and Economic
21	21	11 Opportunity Law of the Civil Administrative Code of Illinois
22	22	12 is entitled to a credit against the taxes imposed under
23	23	13 subsections (a) and (b) of Section 201 of this Act. The amount
24	24	14 of the credit shall be 20% of the wages paid during the taxable
25	25	15 year to a full-time or part-time employee of a construction
26	26	16 contractor employed by a certified data center if those wages
27	27	17 are paid for the construction of a new data center in a
28	28	18 geographic area that meets any one of the following criteria:
29	29	19 (1) the area has a poverty rate of at least 20%,
30	30	20 according to the U.S. Census Bureau American Community
31	31	21 Survey 5-Year Estimates;
32	32	22 (2) 75% or more of the children in the area
33	33	23 participate in the federal free lunch program, according
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0227 Introduced 1/22/2025, by Sen. Lakesia Collins SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/229 35 ILCS 5/229
39	39	35 ILCS 5/229
40	40	Amends the Illinois Income Tax Act. Provides that, if a taxpayer is awarded a credit by the Department of Commerce and Economic Opportunity in connection with a qualifying Illinois data center located in a qualified area or a data center developed by a minority-owned business, a women-owned business, or a business owned a person with a disability, then the taxpayer is entitled to an additional income tax credit in an amount equal to 5% of the taxpayer's investment in qualified tangible personal property used in the construction or operation of that data center. Effective immediately.
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43	43	A BILL FOR
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49	49	35 ILCS 5/229
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68	68	1 to reported statistics from the State Board of Education;
69	69	2 (3) 20% or more of the households in the area receive
70	70	3 assistance under the Supplemental Nutrition Assistance
71	71	4 Program (SNAP), according to data from the U.S. Census
72	72	5 Bureau American Community Survey 5-year Estimates; or
73	73	6 (4) the area has an average unemployment rate, as
74	74	7 determined by the Department of Employment Security, that
75	75	8 is more than 120% of the national unemployment average, as
76	76	9 determined by the U.S. Department of Labor, for a period
77	77	10 of at least 2 consecutive calendar years preceding the
78	78	11 date of the application.
79	79	12 (a-5) For taxable years beginning on or after January 1,
80	80	13 2026, if the taxpayer is awarded a credit under Section
81	81	14 605-1025 of the Department of Commerce and Economic
82	82	15 Opportunity Law of the Civil Administrative Code of Illinois
83	83	16 in connection with a qualifying Illinois data center located
84	84	17 in a qualified area or a data center developed by a qualified
85	85	18 business enterprise, then the taxpayer is entitled to an
86	86	19 additional credit against the tax imposed by subsections (a)
87	87	20 and (b) of Section 201 in an amount equal to 5% of the
88	88	21 taxpayer's investment in qualified tangible personal property
89	89	22 used in the construction or operation of that data center. The
90	90	23 credit shall be available for a period of 5 taxable years after
91	91	24 the property is placed in service. The taxpayer may transfer
92	92	25 the credit in accordance with rules adopted by the Department
93	93	26 of Commerce and Economic Opportunity.
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104	104	1 (a-10) For taxable years ending before December 31, 2023,
105	105	2 if the taxpayer is a partnership, a Subchapter S corporation,
106	106	3 or a limited liability company that has elected partnership
107	107	4 tax treatment, the credit shall be allowed to the partners,
108	108	5 shareholders, or members in accordance with the determination
109	109	6 of income and distributive share of income under Sections 702
110	110	7 and 704 and subchapter S of the Internal Revenue Code, as
111	111	8 applicable. For taxable years ending on or after December 31,
112	112	9 2023, if the taxpayer is a partnership or a Subchapter S
113	113	10 corporation, then the provisions of Section 251 apply. The
114	114	11 Department, in cooperation with the Department of Commerce and
115	115	12 Economic Opportunity, shall adopt rules to enforce and
116	116	13 administer this Section. This Section is exempt from the
117	117	14 provisions of Section 250 of this Act.
118	118	15 (b) In no event shall a credit under this Section reduce
119	119	16 the taxpayer's liability to less than zero. If the amount of
120	120	17 the credit exceeds the tax liability for the year, the excess
121	121	18 may be carried forward and applied to the tax liability of the
122	122	19 5 taxable years following the excess credit year. The tax
123	123	20 credit shall be applied to the earliest year for which there is
124	124	21 a tax liability. If there are credits for more than one year
125	125	22 that are available to offset a liability, the earlier credit
126	126	23 shall be applied first.
127	127	24 (c) No credit shall be allowed with respect to any
128	128	25 certification for any taxable year ending after the revocation
129	129	26 of the certification by the Department of Commerce and
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140	140	1 Economic Opportunity. Upon receiving notification by the
141	141	2 Department of Commerce and Economic Opportunity of the
142	142	3 revocation of certification, the Department shall notify the
143	143	4 taxpayer that no credit is allowed for any taxable year ending
144	144	5 after the revocation date, as stated in such notification. If
145	145	6 any credit has been allowed with respect to a certification
146	146	7 for a taxable year ending after the revocation date, any
147	147	8 refund paid to the taxpayer for that taxable year shall, to the
148	148	9 extent of that credit allowed, be an erroneous refund within
149	149	10 the meaning of Section 912 of this Act.
150	150	11 (d) As used in this Section:
151	151	12 "Qualified area" means an opportunity zone, an area
152	152	13 designated as an R3 community pursuant to the Cannabis
153	153	14 Regulation and Tax Act, or a community designated as a
154	154	15 Disproportionately Impacted Area that is eligible for
155	155	16 participation in the Illinois Adult-Use Cannabis Social Equity
156	156	17 Program administered by the Department of Commerce and
157	157	18 Economic Opportunity.
158	158	19 "Qualified business enterprise" means a minority-owned
159	159	20 business, a women-owned business, or a business owned a person
160	160	21 with a disability, as those terms are defined in the Business
161	161	22 Enterprise for Minorities, Women, and Persons with
162	162	23 Disabilities Act.
163	163	24 "Qualified tangible personal property" has the meaning
164	164	25 given to that term in Section 605-1025 of the Department of
165	165	26 Commerce and Economic Opportunity Law of the Civil
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176	176	1 Administrative Code of Illinois.
177	177	2 (e) This Section is exempt from the provisions of Section
178	178	3 250.
179	179	4 (Source: P.A. 102-558, eff. 8-20-21; 103-396, eff. 1-1-24.)
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