(35 ILCS 5/Art. 2 heading)
(35 ILCS 5/201)
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby imposed on every
individual, corporation, trust and estate for each taxable year ending
after July 31, 1969 on the privilege of earning or receiving income in or
as a resident of this State. Such tax shall be in addition to all other
occupation or privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this Section shall be
determined as follows, except as adjusted by subsection (d-1):
The rates under this subsection (b) are subject to the provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties, and intangibles of organization gaming licensees. For each of taxable years 2019 through 2027, a surcharge is imposed on all taxpayers on income arising from the sale or exchange of capital assets, depreciable business property, real property used in the trade or business, and Section 197 intangibles (i) of an organization licensee under the Illinois Horse Racing Act of 1975 and (ii) of an organization gaming licensee under the Illinois Gambling Act. The amount of the surcharge is equal to the amount of federal income tax liability for the taxable year attributable to those sales and exchanges. The surcharge imposed shall not apply if:
The transfer of an organization gaming license, organization license, or racetrack property by a person other than the initial licensee to receive the organization gaming license is not subject to a surcharge. The Department shall adopt rules necessary to implement and administer this subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such income
tax, there is also hereby imposed the Personal Property Tax Replacement
Income Tax measured by net income on every corporation (including Subchapter
S corporations), partnership and trust, for each taxable year ending after
June 30, 1979. Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The Personal Property
Tax Replacement Income Tax shall be in addition to the income tax imposed
by subsections (a) and (b) of this Section and in addition to all other
occupation or privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income Tax Rates.
The personal property tax replacement income tax imposed by this subsection
and subsection (c) of this Section in the case of a corporation, other
than a Subchapter S corporation and except as adjusted by subsection (d-1),
shall be an additional amount equal to
2.85% of such taxpayer's net income for the taxable year, except that
beginning on January 1, 1981, and thereafter, the rate of 2.85% specified
in this subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an additional
amount equal to 1.5% of such taxpayer's net income for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the case of a
foreign insurer, as defined by Section 35A-5 of the Illinois Insurance Code,
whose state or country of domicile imposes on insurers domiciled in Illinois
a retaliatory tax (excluding any insurer
whose premiums from reinsurance assumed are 50% or more of its total insurance
premiums as determined under paragraph (2) of subsection (b) of Section 304,
except that for purposes of this determination premiums from reinsurance do
not include premiums from inter-affiliate reinsurance arrangements),
beginning with taxable years ending on or after December 31, 1999,
the sum of
the rates of tax imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed under this Act,
net of all credits allowed under this Act, shall equal (i) the total amount of
tax that would be imposed on the foreign insurer's net income allocable to
Illinois for the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes and taxes
measured by net income imposed by such foreign insurer's state or country of
domicile, net of all credits allowed or (ii) a rate of zero if no such tax is
imposed on such income by the foreign insurer's state of domicile.
For the purposes of this subsection (d-1), an inter-affiliate includes a
mutual insurer under common management.
equals 1.25% for taxable years ending prior to December 31, 2003, or 1.75% for taxable years ending on or after December 31, 2003, of the net taxable premiums written for the taxable year, as described by subsection (1) of Section 409 of the Illinois Insurance Code. This paragraph will in no event increase the rates imposed under subsections (b) and (d).
This subsection (d-1) is exempt from the provisions of Section 250.
(e) Investment credit. A taxpayer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
investment in qualified property.
(f) Investment credit; Enterprise Zone; River Edge Redevelopment Zone.
(g) (Blank).
(h) Investment credit; High Impact Business.
(h-5) High Impact Business construction jobs credit. For taxable years beginning on or after January 1, 2021, there shall also be allowed a High Impact Business construction jobs credit against the tax imposed under subsections (a) and (b) of this Section as provided in subsections (i) and (j) of Section 5.5 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's liability to less than zero. If the amount of the credit or credits exceeds the taxpayer's liability, the excess may be carried forward and applied against the taxpayer's liability in succeeding calendar years in the manner provided under paragraph (4) of Section 211 of this Act. The credit or credits shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one taxable year that are available to offset a liability, the earlier credit shall be applied first.
For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for the purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
The total aggregate amount of credits awarded under the Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not exceed $20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of Section 250.
(i) Credit for Personal Property Tax Replacement Income Tax.
For tax years ending prior to December 31, 2003, a credit shall be allowed
against the tax imposed by
subsections (a) and (b) of this Section for the tax imposed by subsections (c)
and (d) of this Section. This credit shall be computed by multiplying the tax
imposed by subsections (c) and (d) of this Section by a fraction, the numerator
of which is base income allocable to Illinois and the denominator of which is
Illinois base income, and further multiplying the product by the tax rate
imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under
this subsection which is unused in the year
the credit is computed because it exceeds the tax liability imposed by
subsections (a) and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried forward and
applied to the tax liability imposed by subsections (a) and (b) of the 5
taxable years following the excess credit year, provided that no credit may
be carried forward to any year ending on or
after December 31, 2003. This credit shall be
applied first to the earliest year for which there is a liability. If
there is a credit under this subsection from more than one tax year that is
available to offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December 31, 1986, the
tax imposed by subsections (c) and (d) of this Section for which a taxpayer
has claimed a credit under this subsection (i) is reduced, the amount of
credit for such tax shall also be reduced. Such reduction shall be
determined by recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different taxable year, an
amended return shall be filed for such taxable year to reduce the amount of
credit claimed.
(j) Training expense credit. Beginning with tax years ending on or
after December 31, 1986 and prior to December 31, 2003, a taxpayer shall be
allowed a credit against the
tax imposed by subsections (a) and (b) under this Section
for all amounts paid or accrued, on behalf of all persons
employed by the taxpayer in Illinois or Illinois residents employed
outside of Illinois by a taxpayer, for educational or vocational training in
semi-technical or technical fields or semi-skilled or skilled fields, which
were deducted from gross income in the computation of taxable income. The
credit against the tax imposed by subsections (a) and (b) shall be 1.6% of
such training expenses. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the liability
company is treated as a partnership for purposes of federal and State income
taxation, there shall be allowed a credit under this subsection (j) to be
determined in accordance with the determination of income and distributive
share of income under Sections 702 and 704 and subchapter S of the Internal
Revenue Code.
Any credit allowed under this subsection which is unused in the year
the credit is earned may be carried forward to each of the 5 taxable
years following the year for which the credit is first computed until it is
used. This credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this subsection from more
than one tax year that is available to offset a liability, the earliest
credit arising under this subsection shall be applied first. No carryforward
credit may be claimed in any tax year ending on or after
December 31, 2003.
(k) Research and development credit. For tax years ending after July 1, 1990 and prior to
December 31, 2003, and beginning again for tax years ending on or after December 31, 2004, and ending prior to January 1, 2027, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a) and (b) of this
Section for increasing research activities in this State. The credit
allowed against the tax imposed by subsections (a) and (b) shall be equal
to 6 1/2% of the qualifying expenditures for increasing research activities
in this State. For partners, shareholders of subchapter S corporations, and
owners of limited liability companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation, there shall be
allowed a credit under this subsection to be determined in accordance with the
determination of income and distributive share of income under Sections 702 and
704 and subchapter S of the Internal Revenue Code.
For purposes of this subsection, "qualifying expenditures" means the
qualifying expenditures as defined for the federal credit for increasing
research activities which would be allowable under Section 41 of the
Internal Revenue Code and which are conducted in this State, "qualifying
expenditures for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in which incurred
over qualifying expenditures for the base period, "qualifying expenditures
for the base period" means the average of the qualifying expenditures for
each year in the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the determination is
being made.
Any credit in excess of the tax liability for the taxable year
may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over as a credit
against the tax liability for the following 5 taxable years or until it has
been fully used, whichever occurs first; provided that no credit earned in a tax year ending prior to December 31, 2003 may be carried forward to any year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from 2 or more
earlier years, that credit arising in the earliest year will be applied
first against the tax liability for the given year. If a tax liability for
the given year still remains, the credit from the next earliest year will
then be applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused credit or
credits then will be carried forward to the next following year in which a
tax liability is incurred, except that no credit can be carried forward to
a year which is more than 5 years after the year in which the expense for
which the credit is given was incurred.
No inference shall be drawn from Public Act 91-644 in construing this Section for taxable years beginning before January
1, 1999.
It is the intent of the General Assembly that the research and development credit under this subsection (k) shall apply continuously for all tax years ending on or after December 31, 2004 and ending prior to January 1, 2027, including, but not limited to, the period beginning on January 1, 2016 and ending on July 6, 2017 (the effective date of Public Act 100-22). All actions taken in reliance on the continuation of the credit under this subsection (k) by any taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(m) Education expense credit. Beginning with tax years ending after
December 31, 1999, a taxpayer who
is the custodian of one or more qualifying pupils shall be allowed a credit
against the tax imposed by subsections (a) and (b) of this Section for
qualified education expenses incurred on behalf of the qualifying pupils.
The credit shall be equal to 25% of qualified education expenses, but in no
event may the total credit under this subsection claimed by a
family that is the
custodian of qualifying pupils exceed (i) $500 for tax years ending prior to December 31, 2017, and (ii) $750 for tax years ending on or after December 31, 2017. In no event shall a credit under
this subsection reduce the taxpayer's liability under this Act to less than
zero. Notwithstanding any other provision of law, for taxable years beginning on or after January 1, 2017, no taxpayer may claim a credit under this subsection (m) if the taxpayer's adjusted gross income for the taxable year exceeds (i) $500,000, in the case of spouses filing a joint federal tax return or (ii) $250,000, in the case of all other taxpayers. This subsection is exempt from the provisions of Section 250 of this
Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are residents of the State of
Illinois, (ii) are under the age of 21 at the close of the school year for
which a credit is sought, and (iii) during the school year for which a credit
is sought were full-time pupils enrolled in a kindergarten through twelfth
grade education program at any school, as defined in this subsection.
"Qualified education expense" means the amount incurred
on behalf of a qualifying pupil in excess of $250 for tuition, book fees, and
lab fees at the school in which the pupil is enrolled during the regular school
year.
"School" means any public or nonpublic elementary or secondary school in
Illinois that is in compliance with Title VI of the Civil Rights Act of 1964
and attendance at which satisfies the requirements of Section 26-1 of the
School Code, except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify for the credit
under this Section.
"Custodian" means, with respect to qualifying pupils, an Illinois resident
who is a parent, the parents, a legal guardian, or the legal guardians of the
qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax credit.
(o) For each of taxable years during the Compassionate Use of Medical Cannabis Program, a surcharge is imposed on all taxpayers on income arising from the sale or exchange of capital assets, depreciable business property, real property used in the trade or business, and Section 197 intangibles of an organization registrant under the Compassionate Use of Medical Cannabis Program Act. The amount of the surcharge is equal to the amount of federal income tax liability for the taxable year attributable to those sales and exchanges. The surcharge imposed does not apply if:
(p) Pass-through entity tax.
(35 ILCS 5/201.1)
Sec. 201.1. (Repealed).
(Source: P.A. 101-8. Repealed by P.A. 102-558, eff. 8-20-21.)
(35 ILCS 5/201.5)
Sec. 201.5. State spending limitation and tax reduction.
(a) If, beginning in State fiscal year 2012 and continuing through State fiscal year 2015, State spending for any fiscal year exceeds the State spending limitation set forth in subsection (b) of this Section, then the tax rates set forth in subsection (b) of Section 201 of this Act shall be reduced, according to the procedures set forth in this Section, to 3% of the taxpayer's net income for individuals, trusts, and estates and to 4.8% of the taxpayer's net income for corporations. For all taxable years following the taxable year in which the rate has been reduced pursuant to this Section, the tax rate set forth in subsection (b) of Section 201 of this Act shall be 3% of the taxpayer's net income for individuals, trusts, and estates and 4.8% of the taxpayer's net income for corporations.
(b) The State spending limitation for fiscal years 2012 through 2015 shall be as follows: (i) for fiscal year 2012, $36,818,000,000; (ii) for fiscal year 2013, $37,554,000,000; (iii) for fiscal year 2014, $38,305,000,000; and (iv) for fiscal year 2015, $39,072,000,000.
(c) Notwithstanding any other provision of law to the contrary, the Auditor General shall examine each Public Act authorizing State spending from State general funds and prepare a report no later than 30 days after receiving notification of the Public Act from the Secretary of State or 60 days after the effective date of the Public Act, whichever is earlier. The Auditor General shall file the report with the Secretary of State and copies with the Governor, the State Treasurer, the State Comptroller, the Senate, and the House of Representatives. The report shall indicate: (i) the amount of State spending set forth in the applicable Public Act; (ii) the total amount of State spending authorized by law for the applicable fiscal year as of the date of the report; and (iii) whether State spending exceeds the State spending limitation set forth in subsection (b). The Auditor General may examine multiple Public Acts in one consolidated report, provided that each Public Act is examined within the time period mandated by this subsection (c). The Auditor General shall issue reports in accordance with this Section through June 30, 2015 or the effective date of a reduction in the rate of tax imposed by subsections (a) and (b) of Section 201 of this Act pursuant to this Section, whichever is earlier.
At the request of the Auditor General, each State agency shall, without delay, make available to the Auditor General or his or her designated representative any record or information requested and shall provide for examination or copying all records, accounts, papers, reports, vouchers, correspondence, books and other documentation in the custody of that agency, including information stored in electronic data processing systems, which is related to or within the scope of a report prepared under this Section. The Auditor General shall report to the Governor each instance in which a State agency fails to cooperate promptly and fully with his or her office as required by this Section.
The Auditor General's report shall not be in the nature of a post-audit or examination and shall not lead to the issuance of an opinion as that term is defined in generally accepted government auditing standards.
(d) If the Auditor General reports that State spending has exceeded the State spending limitation set forth in subsection (b) and if the Governor has not been presented with a bill or bills passed by the General Assembly to reduce State spending to a level that does not exceed the State spending limitation within 45 calendar days of receipt of the Auditor General's report, then the Governor may, for the purpose of reducing State spending to a level that does not exceed the State spending limitation set forth in subsection (b), designate amounts to be set aside as a reserve from the amounts appropriated from the State general funds for all boards, commissions, agencies, institutions, authorities, colleges, universities, and bodies politic and corporate of the State, but not other constitutional officers, the legislative or judicial branch, the office of the Executive Inspector General, or the Executive Ethics Commission. Such a designation must be made within 15 calendar days after the end of that 45-day period. If the Governor designates amounts to be set aside as a reserve, the Governor shall give notice of the designation to the Auditor General, the State Treasurer, the State Comptroller, the Senate, and the House of Representatives. The amounts placed in reserves shall not be transferred, obligated, encumbered, expended, or otherwise committed unless so authorized by law. Any amount placed in reserves is not State spending and shall not be considered when calculating the total amount of State spending. Any Public Act authorizing the use of amounts placed in reserve by the Governor is considered State spending, unless such Public Act authorizes the use of amounts placed in reserves in response to a fiscal emergency under subsection (g).
(e) If the Auditor General reports under subsection (c) that State spending has exceeded the State spending limitation set forth in subsection (b), then the Auditor General shall issue a supplemental report no sooner than the 61st day and no later than the 65th day after issuing the report pursuant to subsection (c). The supplemental report shall: (i) summarize details of actions taken by the General Assembly and the Governor after the issuance of the initial report to reduce State spending, if any, (ii) indicate whether the level of State spending has changed since the initial report, and (iii) indicate whether State spending exceeds the State spending limitation. The Auditor General shall file the report with the Secretary of State and copies with the Governor, the State Treasurer, the State Comptroller, the Senate, and the House of Representatives. If the supplemental report of the Auditor General provides that State spending exceeds the State spending limitation, then the rate of tax imposed by subsections (a) and (b) of Section 201 is reduced as provided in this Section beginning on the first day of the first month to occur not less than 30 days after issuance of the supplemental report.
(f) For any taxable year in which the rates of tax have been reduced under this Section, the tax imposed by subsections (a) and (b) of Section 201 shall be determined as follows:
(g) Notwithstanding the State spending limitation set forth in subsection (b) of this Section, the Governor may declare a fiscal emergency by filing a declaration with the Secretary of State and copies with the State Treasurer, the State Comptroller, the Senate, and the House of Representatives. The declaration must be limited to only one State fiscal year, set forth compelling reasons for declaring a fiscal emergency, and request a specific dollar amount. Unless, within 10 calendar days of receipt of the Governor's declaration, the State Comptroller or State Treasurer notifies the Senate and the House of Representatives that he or she does not concur in the Governor's declaration, State spending authorized by law to address the fiscal emergency in an amount no greater than the dollar amount specified in the declaration shall not be considered "State spending" for purposes of the State spending limitation.
(h) As used in this Section:
"State general funds" means the General Revenue Fund, the Common School Fund, the General Revenue Common School Special Account Fund, the Education Assistance Fund, and the Budget Stabilization Fund.
"State spending" means (i) the total amount authorized for spending by appropriation or statutory transfer from the State general funds in the applicable fiscal year, and (ii) any amounts the Governor places in reserves in accordance with subsection (d) that are subsequently released from reserves following authorization by a Public Act. For the purpose of this definition, "appropriation" means authority to spend money from a State general fund for a specific amount, purpose, and time period, including any supplemental appropriation or continuing appropriation, but does not include reappropriations from a previous fiscal year. For the purpose of this definition, "statutory transfer" means authority to transfer funds from one State general fund to any other fund in the State treasury, but does not include transfers made from one State general fund to another State general fund.
"State spending limitation" means the amount described in subsection (b) of this Section for the applicable fiscal year.
(Source: P.A. 96-1496, eff. 1-13-11; 97-813, eff. 7-13-12.)
(35 ILCS 5/202) (from Ch. 120, par. 2-202)
Sec. 202.
Net Income Defined.
In general. For purposes of this Act,
a taxpayer's net income for
a taxable year shall be that portion of his base income for such year which
is allocable to this State under the provisions of Article 3, less the
standard exemption allowed by Section 204 and the deduction allowed by Section
207.
(Source: P.A. 92-846, eff. 8-23-02.)
(35 ILCS 5/202.3) (from Ch. 120, par. 2-202.3)
Sec. 202.3.
Net income attributable to the period prior to July 1, 1989
and net income attributable to the period after June 30, 1989.
(a) In general. With respect to the taxable year of a taxpayer beginning
prior to July 1, 1989 and ending after June 30, 1989, net income for the
period after June 30, 1989 shall be that amount which bears
the same ratio to the taxpayer's net income for the entire taxable year
as the number of days in such year after June 30, 1989 bears to the total
number of days in such year, and the net income for the period prior to
July 1, 1989 shall be that amount which bears the same ratio to the
taxpayer's net income for the entire taxable year as the number of days in
such year prior to July 1, 1989 bears to the total number of days in such year.
(b) Election to attribute income and deduction items specifically to
the respective portions of a taxable year prior to July 1, 1989
and after June 30, 1989. In the case of a taxpayer with a
taxable year beginning prior to July 1, 1989 and ending after June 30,
1989, the taxpayer may elect, in lieu of the procedure established in
subsection (a) of this Section, to determine net income on a specific
accounting basis for the 2 portions of his taxable year:
(i) from the beginning of the taxable year through June 30, 1989, and
(ii) from July 1, 1989 through the end of the taxable year.
If the taxpayer elects specific accounting under this subsection, there
shall be taken into account in computing base income for each of the 2 portions
of the taxable year only those items earned, received, paid, incurred or
accrued in each such period. The standard exemption provided by Section
204 shall be divided between the respective periods in amounts which bear
the same ratio to the total exemption allowable under Section 204 (determined
without regard to this Section) as the total number of days in each such
period bears to the total number of days in the taxable year. The election
provided by this subsection shall be made in such manner and at such time
as the Department may by forms or regulations prescribe, but shall be made
not later than the due date (including any extensions thereof) for the filing
of the return for the taxable year, and shall be irrevocable.
(Source: P.A. 86-18.)
(35 ILCS 5/202.4)
Sec. 202.4.
(Repealed).
(Source: Repealed by P.A. 88-89.)
(35 ILCS 5/202.5)
Sec. 202.5. Net income attributable to the period beginning prior to the first day of a month and ending after the last day of the preceding month.
(a) In general. With respect to the taxable year of a taxpayer beginning prior to the first day of a month and ending after the last day of the preceding month, net income for the period after the last day of the preceding month, is that amount that bears the same ratio to the taxpayer's net income for the entire taxable year as the number of days in that taxable year after the last day of the preceding month bears to the total number of days in that taxable year, and the net income for the period prior to the first day of the month is that amount that bears the same ratio to the taxpayer's net income for the entire taxable year as the number of days in that taxable year prior to the first day of the month bears to the total number of days in that taxable year.
(b) Election to attribute income and deduction items specifically to the respective portions of a taxable year prior to the first day of a month and ending after the last day of the preceding month. In the case of a taxpayer with a taxable year beginning prior to the first day of a month and ending after the last day of the preceding month, the taxpayer may elect, instead of the procedure established in subsection (a) of this Section, to determine net income on a specific accounting basis for the 2 portions of the taxable year:
The election provided by this subsection must be made in the form and manner that the Department requires by rule, and must be made no later than the due date (including any extensions thereof) for the filing of the return for the taxable year, and is irrevocable.
(c) If the taxpayer elects specific accounting under subsection (b):
(Source: P.A. 100-22, eff. 7-6-17.)
(35 ILCS 5/203) (from Ch. 120, par. 2-203)
Sec. 203. Base income defined.
(a) Individuals.
and by deducting from the total so obtained the sum of the following amounts:
(b) Corporations.
and by deducting from the total so obtained the sum of the following amounts:
(c) Trusts and estates.
and by deducting from the total so obtained the sum of the following amounts:
(d) Partnerships.
and by deducting from the total so obtained the following amounts:
(e) Gross income; adjusted gross income; taxable income.
(f) Valuation limitation amount.
(g) Double deductions. Unless specifically provided otherwise, nothing
in this Section shall permit the same item to be deducted more than once.
(h) Legislative intention. Except as expressly provided by this
Section there shall be no modifications or limitations on the amounts
of income, gain, loss or deduction taken into account in determining
gross income, adjusted gross income or taxable income for federal income
tax purposes for the taxable year, or in the amount of such items
entering into the computation of base income and net income under this
Act for such taxable year, whether in respect of property values as of
August 1, 1969 or otherwise.
(Source: P.A. 101-9, eff. 6-5-19; 101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 12-21-22.)
(35 ILCS 5/204) (from Ch. 120, par. 2-204)
Sec. 204. Standard exemption.
(a) Allowance of exemption. In computing net income under this Act, there
shall be allowed as an exemption the sum of the amounts determined under
subsections (b), (c) and (d), multiplied by a fraction the numerator of which
is the amount of the taxpayer's base income allocable to this State for the
taxable year and the denominator of which is the taxpayer's total base income
for the taxable year.
(b) Basic amount. For the purpose of subsection (a) of this Section,
except as provided by subsection (a) of Section 205 and in this
subsection, each taxpayer shall be allowed a basic amount of $1000, except
that for corporations the basic amount shall be zero for tax years ending on
or
after December 31, 2003, and for individuals the basic amount shall be:
(c) Additional amount for individuals. In the case of an individual
taxpayer, there shall be allowed for the purpose of subsection (a), in
addition to the basic amount provided by subsection (b), an additional
exemption equal to the basic amount for each
exemption in excess of one
allowable to such individual taxpayer for the taxable year under Section
151 of the Internal Revenue Code.
(d) Additional exemptions for an individual taxpayer and his or her
spouse. In the case of an individual taxpayer and his or her spouse, he or
she shall each be allowed additional exemptions as follows:
(d-5) Cost-of-living adjustment. For purposes of item (5) of subsection (b), the cost-of-living adjustment for any calendar year and for taxable years ending prior to the end of the subsequent calendar year is equal to $2,050 times the percentage (if any) by which:
The Consumer Price Index for any calendar year is the average of the Consumer Price Index as of the close of the 12-month period ending on August 31 of that calendar year.
The term "Consumer Price Index" means the last Consumer Price Index for All Urban Consumers published by the United States Department of Labor or any successor agency.
If any cost-of-living adjustment is not a multiple of $25, that adjustment shall be rounded to the next lowest multiple of $25.
(e) Cross reference. See Article 3 for the manner of determining
base income allocable to this State.
(f) Application of Section 250. Section 250 does not apply to the
amendments to this Section made by Public Act 90-613.
(g) Notwithstanding any other provision of law, for taxable years beginning on or after January 1, 2017, no taxpayer may claim an exemption under this Section if the taxpayer's adjusted gross income for the taxable year exceeds (i) $500,000, in the case of spouses filing a joint federal tax return or (ii) $250,000, in the case of all other taxpayers.
(Source: P.A. 100-22, eff. 7-6-17; 100-865, eff. 8-14-18.)
(35 ILCS 5/205) (from Ch. 120, par. 2-205)
Sec. 205. Exempt organizations.
(a) Charitable, etc. organizations. For tax years beginning before January 1, 2019, the base income of an
organization which is exempt from the federal income tax by reason of the Internal Revenue Code shall not be determined
under section 203 of this Act, but shall be its unrelated business
taxable income as determined under section 512 of the Internal Revenue
Code, without any deduction for the tax imposed by this Act. The
standard exemption provided by section 204 of this Act shall not be
allowed in determining the net income of an organization to which this
subsection applies.
For tax years beginning on or after January 1, 2019, the base income of an organization which is exempt from the federal income tax by reason of the Internal Revenue Code shall not be determined under Section 203 of this Act, but shall be its unrelated business taxable income as determined under Section 512 of the Internal Revenue Code, without regard to Section 512(a)(7) of the Internal Revenue Code and without any deduction for the tax imposed by this Act. The standard exemption provided by Section 204 of this Act shall not be allowed in determining the net income of an organization to which this subsection applies. This exclusion is exempt from the provisions of Section 250.
(b) Partnerships. A partnership as such shall not be subject to
the tax imposed by subsection 201 (a) and (b) of this Act, but shall be
subject to the replacement tax imposed by subsection 201 (c) and (d) of
this Act and shall compute its base income as described in subsection (d)
of Section 203 of this Act. For taxable years ending on or after December 31, 2004, an investment partnership, as defined in Section 1501(a)(11.5) of this Act, shall not be subject to the tax imposed by subsections (c) and (d) of Section 201 of this Act.
A partnership shall file such returns and other
information at such
time and in such manner as may be required under Article 5 of this Act.
The partners in a partnership shall be liable for the replacement tax imposed
by subsection 201 (c) and (d) of this Act on such partnership, to the extent
such tax is not paid by the partnership, as provided under the laws of Illinois
governing the liability of partners for the obligations of a partnership.
Persons carrying on business as partners shall be liable for the tax
imposed by subsection 201 (a) and (b) of this Act only in their separate
or individual capacities.
(c) Subchapter S corporations. A Subchapter S corporation shall not
be subject to the tax imposed by subsection 201 (a) and
(b) of this Act but shall be subject to the replacement tax imposed by subsection
201 (c) and (d) of this Act and shall file such returns
and other information
at such time and in such manner as may be required under Article 5 of this Act.
(d) Combat zone, terrorist attack, and certain other deaths. An individual relieved from the federal
income tax for any taxable year by reason of section 692 of the Internal
Revenue Code shall not be subject to the tax imposed by this Act for
such taxable year.
(e) Certain trusts. A common trust fund described in Section 584
of the Internal Revenue Code, and any other trust to the extent that the
grantor is treated as the owner thereof under sections 671 through 678
of the Internal Revenue Code shall not be subject to the tax imposed by
this Act.
(f) Certain business activities. A person not otherwise subject to the tax
imposed by this Act shall not become subject to the tax imposed by this Act by
reason of:
(g) A nonprofit risk organization that holds a certificate of authority under Article VIID of the Illinois Insurance Code is exempt from the tax imposed under this Act with respect to its activities or operations in furtherance of the powers conferred upon it under that Article VIID of the Illinois Insurance Code.
(Source: P.A. 101-545, eff. 8-23-19.)
(35 ILCS 5/206) (from Ch. 120, par. 2-206)
Sec. 206.
Tax credits for coal research and coal utilization equipment.
(a) Until January 1, 2005, each corporation subject to this Act
shall be
entitled to a credit against the tax imposed by subsections (a) and (b) of
Section 201 in an amount equal to 20% of the amount donated to the Illinois
Center for Research on Sulfur in Coal.
(b) Until January 1, 2005, each corporation subject to this Act
shall
be entitled to a credit against the tax imposed by subsections (a) and (b)
of Section 201 in an amount equal to 5% of the amount spent during the
taxable year by the corporation on equipment purchased for the purpose of
maintaining or increasing the use of Illinois coal at any Illinois facility
owned, leased or operated by the corporation. Such equipment shall be
limited to direct coal combustion equipment and pollution control equipment
necessary thereto. For purposes of this credit, the amount spent on
qualifying equipment shall be defined as the basis of the equipment used to
compute the depreciation deduction for federal income tax purposes.
For tax years ending on or after December 31, 1987, the credit shall be
allowed for the tax year in which the amount is donated or the equipment
purchased is placed in service, or, if
the amount of the credit exceeds the tax liability for that year, whether
it exceeds the original liability or the liability as later amended, such
excess may be carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The credit shall be
applied to the earliest year for which there is a liability. If there is
credit from more than one tax year that is available to offset a liability,
earlier credit shall be applied first.
(Source: P.A. 88-599, eff. 9-1-94.)
(35 ILCS 5/207) (from Ch. 120, par. 2-207)
Sec. 207. Net Losses.
(a) If after applying all of the (i) modifications
provided for in paragraph (2) of Section 203(b), paragraph (2) of Section
203(c) and paragraph (2) of Section 203(d) and (ii) the allocation and
apportionment provisions of Article 3 of this
Act and subsection (c) of this Section, the taxpayer's net income results in a loss;
(a-5) Election to relinquish carryback and order of application of
losses.
(b) Any loss determined under subsection (a) of this Section must be carried
back or carried forward in the same manner for purposes of subsections (a)
and (b) of Section 201 of this Act as for purposes of subsections (c) and
(d) of Section 201 of this Act.
(c) Notwithstanding any other provision of this Act, for each taxable year ending on or after December 31, 2008, for purposes of computing the loss for the taxable year under subsection (a) of this Section and the deduction taken into account for the taxable year for a net operating loss carryover under paragraphs (1), (2), and (3) of subsection (a) of this Section, the loss and net operating loss carryover shall be reduced in an amount equal to the reduction to the net operating loss and net operating loss carryover to the taxable year, respectively, required under Section 108(b)(2)(A) of the Internal Revenue Code, multiplied by a fraction, the numerator of which is the amount of discharge of indebtedness income that is excluded from gross income for the taxable year (but only if the taxable year ends on or after December 31, 2008) under Section 108(a) of the Internal Revenue Code and that would have been allocated and apportioned to this State under Article 3 of this Act but for that exclusion, and the denominator of which is the total amount of discharge of indebtedness income excluded from gross income under Section 108(a) of the Internal Revenue Code for the taxable year. The reduction required under this subsection (c) shall be made after the determination of Illinois net income for the taxable year in which the indebtedness is discharged.
(d) In the case of a corporation (other than a Subchapter S corporation), no carryover deduction shall be allowed under this Section for any taxable year ending after December 31, 2010 and prior to December 31, 2012, and no carryover deduction shall exceed $100,000 for any taxable year ending on or after December 31, 2012 and prior to December 31, 2014 and for any taxable year ending on or after December 31, 2021 and prior to December 31, 2024; provided that, for purposes of determining the taxable years to which a net loss may be carried under subsection (a) of this Section, no taxable year for which a deduction is disallowed under this subsection, or for which the deduction would exceed $100,000 if not for this subsection, shall be counted.
(e) In the case of a residual interest holder in a real estate mortgage investment conduit subject to Section 860E of the Internal Revenue Code, the net loss in subsection (a) shall be equal to:
The modification in this subsection (e) is exempt from the provisions of Section 250.
(Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)
(35 ILCS 5/208) (from Ch. 120, par. 2-208)
Sec. 208. Tax credit for residential real property taxes. Beginning with tax years ending on or after December 31, 1991,
every individual taxpayer shall be entitled to a tax credit equal
to 5% of real property taxes paid by such taxpayer during the
taxable year on the principal residence of the taxpayer. In the
case of multi-unit or multi-use structures and farm dwellings,
the taxes on the taxpayer's principal residence shall be that
portion of the total taxes which is attributable to such principal
residence. Notwithstanding any other provision of law, for taxable years beginning on or after January 1, 2017, no taxpayer may claim a credit under this Section if the taxpayer's adjusted gross income for the taxable year exceeds (i) $500,000, in the case of spouses filing a joint federal tax return, or (ii) $250,000, in the case of all other taxpayers.
(Source: P.A. 101-8, see Section 99 for effective date; 102-558, eff. 8-20-21.)
(35 ILCS 5/208.1)
Sec. 208.1. (Repealed).
(Source: P.A. 91-703, eff. 5-16-00. Repealed by P.A. 100-621, eff. 7-20-18.)
(35 ILCS 5/208.5)
(Section scheduled to be repealed on January 1, 2024)
Sec. 208.5. Residential real estate tax rebate.
(a) The Department shall pay a one-time rebate to every individual taxpayer who files with the Department, on or before October 17, 2022, an Illinois income tax return for tax year 2021 and who qualifies, in that tax year, under rules adopted by the Department, for the income tax credit provided under Section 208 of this Act. The amount of the one-time rebate provided under this Section shall be the lesser of: (1) the amount of the credit provided under Section 208 for tax year 2021, including any amounts that would otherwise reduce a taxpayer's liability to less than zero, or (2) $300 per principal residence. The Department shall develop a process to claim a rebate for taxpayers who otherwise would be eligible for the rebate under this Section but who did not have an obligation to file a 2021 Illinois income tax return because their exemption allowance exceeded their Illinois base income.
(b) On the effective date of this amendatory Act of the 102nd General Assembly, or as soon thereafter as practical, but no later than June 30, 2022, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $470,000,000 from the General Revenue Fund to the Income Tax Refund Fund.
(c) On July 1, 2022, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $50,000,000 from the General Revenue Fund to the Income Tax Refund Fund.
(d) In addition to any other transfers that may be provided for by law, beginning on the effective date of this amendatory Act of the 102nd General Assembly and until June 30, 2023, the Director may certify additional transfer amounts needed beyond the amounts specified in subsections (b) and (c). The State Comptroller shall direct and the State Treasurer shall transfer the amounts certified by the Director from the General Revenue Fund to the Income Tax Refund Fund.
(e) The one-time rebate payments provided under this Section shall be paid from the Income Tax Refund Fund.
(f) Beginning on July 5, 2022, the Department shall certify to the Comptroller the names of the taxpayers who are eligible for a one-time rebate under this Section, the amounts of those rebates, and any other information that the Comptroller requires to direct the payment of the rebates provided under this Section to taxpayers.
(g) The amount of a rebate under this Section shall not be included in the taxpayer's income or resources for the purposes of determining eligibility or benefit level in any means-tested benefit program administered by a governmental entity unless required by federal law.
(h) Notwithstanding any other law to the contrary, the rebates shall not be subject to offset by the Comptroller against any liability owed either to the State or to any unit of local government.
(i) This Section is repealed on January 1, 2024.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 5/209)
Sec. 209.
Tax Credit for "TECH-PREP" youth vocational programs.
(a) Beginning with tax years ending on or after June 30, 1995, every
taxpayer
who is primarily engaged in manufacturing is allowed a credit against the tax
imposed by subsections (a) and (b) of Section 201 in an amount equal to 20% of
the taxpayer's direct payroll expenditures for which a credit has not already
been claimed under subsection (j) of Section 201 of this Act, in the tax year
for which the
credit is claimed, for cooperative secondary school youth vocational programs
in Illinois which are certified as qualifying TECH-PREP programs by the State
Board of Education because the programs
prepare
students to be technically skilled workers and meet the performance standards
of business and industry and the admission standards of higher education.
The credit may also be claimed for personal services rendered to the taxpayer
by a TECH-PREP student or instructor (i) which would be subject to the
provisions of Article 7 of this Act if the student or instructor was an
employee of the taxpayer and (ii) for which no credit under this Section is
claimed by another taxpayer.
(b) If the amount of the credit exceeds the tax liability for the year, the
excess may be carried forward and applied to the tax liability of the 2 taxable
years following the excess credit year. The credit
shall be applied to the earliest year for which there is a tax liability. If
there are credits from more than one tax year that are available to offset a
liability, the earlier credit shall be applied first.
(c) A taxpayer claiming the credit provided by this Section shall maintain
and record such information regarding its participation in a qualifying
TECH-PREP program as the Department may require by regulation. When claiming
the
credit provided by this Section, the taxpayer shall provide such information
regarding the taxpayer's participation in a qualifying TECH-PREP program as the
Department of Revenue may require by regulation.
(d) This Section does not apply to those programs with national standards
that have been or in the future are approved by the U.S. Department of Labor,
Bureau of Apprenticeship Training or any federal agency succeeding to the
responsibilities of that Bureau.
(Source: P.A. 92-846, eff. 8-23-02.)
(35 ILCS 5/210)
Sec. 210.
Dependent care assistance program tax credit.
(a) Beginning with tax years ending on or after June 30, 1995, each taxpayer
who is primarily engaged in manufacturing is entitled to a credit against the
tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 5%
of the amount of expenditures by the taxpayer in the tax year for which the
credit is claimed, reported pursuant to Section 129(d)(7) of the Internal
Revenue Code, to provide in the Illinois premises of the taxpayer's workplace
an on-site facility dependent care assistance program under Section 129 of the
Internal Revenue Code.
(b) If the amount of credit exceeds the tax liability for the year, the
excess may be carried forward and applied to the tax liability of the 2 taxable
years following the excess credit year. The credit shall be applied to the
earliest year for which there is a tax liability. If there are credits from
more than one tax year that are available to offset a liability, the earlier
credit shall be applied first.
(c) A taxpayer claiming the credit provided by this Section shall maintain
and record such information as the Department may require by regulation
regarding the dependent care assistance program for which credit is claimed.
When claiming the credit provided by this Section, the taxpayer shall provide
such information regarding the taxpayer's provision of a dependent care
assistance program under Section 129 of the Internal Revenue Code.
(Source: P.A. 88-505.)
(35 ILCS 5/210.5)
Sec. 210.5. Tax credit for employee child care.
(a) Each corporate taxpayer is entitled
to a credit against the tax imposed by subsections (a) and (b) of Section 201
in an amount equal to (i) for taxable years ending on or after December 31,
2000 and on or before December 31, 2004 and for taxable years ending on or after December 31, 2007, 30% of the start-up costs expended by
the corporate taxpayer to provide a child care
facility for the children of its employees and
(ii) for taxable years ending on or after December 31, 2000, 5% of the annual
amount paid
by the corporate taxpayer in providing the child care facility for the children
of its employees. The provisions of Section 250 do not apply to the credits allowed under this Section. If the 5% credit authorized under item
(ii) of this subsection is claimed, the 5% credit authorized under Section 210
cannot also be claimed.
To receive the tax credit under this Section a corporate taxpayer may either
independently provide and operate a child care facility for the children of its
employees or it may join in a partnership with one or more other corporations
to jointly provide and operate a child care facility for the children of
employees of the corporations in the partnership.
(b) The tax credit may not reduce the taxpayer's liability to less than
zero. If the amount of the tax credit exceeds the tax liability for the year,
the excess may be carried forward and applied to the tax liability of the 5
taxable years following the excess credit year. The credit must be applied to
the earliest year for which there is a tax liability. If there are credits
from more than one tax year that are available to offset a liability, then the
earlier credit must be applied first.
(c) As used in this Section, "start-up costs" means planning,
site-preparation, construction, renovation, or acquisition of a child care
facility. As used in this Section, "child care facility" is limited to a child
care facility located in Illinois.
(d) A corporate taxpayer claiming the credit provided by this Section
shall maintain and record such information as the Department may require by
rule regarding the child care facility for which the credit is claimed.
(Source: P.A. 95-648, eff. 10-11-07.)
(35 ILCS 5/211)
Sec. 211. Economic Development for a Growing Economy Tax Credit. For tax years beginning on or after January 1, 1999, a Taxpayer
who has entered into an Agreement (including a New Construction EDGE Agreement) under the Economic Development for a Growing
Economy Tax Credit Act is entitled to a credit against the taxes imposed
under subsections (a) and (b) of Section 201 of this Act in an amount to be
determined in the Agreement. If the Taxpayer is a partnership or Subchapter
S corporation, the credit shall be allowed to the partners or shareholders in
accordance with the determination of income and distributive share of income
under Sections 702 and 704 and subchapter S of the Internal Revenue Code.
The Department, in cooperation with the Department
of Commerce and Economic Opportunity, shall prescribe rules to enforce and
administer the provisions of this Section. This Section is
exempt from the provisions of Section 250 of this Act.
The credit shall be subject to the conditions set forth in
the Agreement and the following limitations:
(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21; 102-40, eff. 6-25-21; 102-687, eff. 12-17-21.)
(35 ILCS 5/212)
Sec. 212. Earned income tax credit.
(a) With respect to the federal earned income tax credit allowed for the
taxable year under Section 32 of the federal Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer is entitled to a credit against the tax imposed by
subsections (a) and (b) of Section 201 in an amount equal to
(i) 5% of the federal tax credit for each taxable year beginning on or after
January 1,
2000 and ending prior to December 31, 2012, (ii) 7.5% of the federal tax credit for each taxable year beginning on or after January 1, 2012 and ending prior to December 31, 2013, (iii) 10% of the federal tax credit for each taxable year beginning on or after January 1, 2013 and beginning prior to January 1, 2017, (iv) 14% of the federal tax credit for each taxable year beginning on or after January 1, 2017 and beginning prior to January 1, 2018, (v) 18% of the federal tax credit for each taxable year beginning on or after January 1, 2018 and beginning prior to January 1, 2023, and (vi) 20% of the federal tax credit for each taxable year beginning on or after January 1, 2023.
For a non-resident or part-year resident, the amount of the credit under this
Section shall be in proportion to the amount of income attributable to this
State.
(b) For taxable years beginning before January 1, 2003, in no event
shall a credit under this Section reduce the taxpayer's
liability to less than zero. For each taxable year beginning on or after
January 1, 2003, if the amount of the credit exceeds the income tax liability
for the applicable tax year, then the excess credit shall be refunded to the
taxpayer. The amount of a refund shall not be included in the taxpayer's
income or resources for the purposes of determining eligibility or benefit
level in any means-tested benefit program administered by a governmental entity
unless required by federal law.
(b-5) For taxable years beginning on or after January 1, 2023, each individual taxpayer who has attained the age of 18 during the taxable year but has not yet attained the age of 25 is entitled to the credit under paragraph (a) based on the federal tax credit for which the taxpayer would have been eligible without regard to any age requirements that would otherwise apply to individuals without a qualifying child in Section 32(c)(1)(A)(ii) of the federal Internal Revenue Code.
(b-10) For taxable years beginning on or after January 1, 2023, each individual taxpayer who has attained the age of 65 or older during the taxable year is entitled to the credit under paragraph (a) based on the federal tax credit for which the taxpayer would have been eligible without regard to any age requirements that would otherwise apply to individuals without a qualifying child in Section 32(c)(1)(A)(ii) of the federal Internal Revenue Code.
(b-15) For taxable years beginning on or after January 1, 2023, each individual taxpayer filing a return using an individual taxpayer identification number (ITIN) as prescribed under Section 6109 of the Internal Revenue Code, other than a Social Security number issued pursuant to Section 205(c)(2)(A) of the Social Security Act, is entitled to the credit under paragraph (a) based on the federal tax credit for which they would have been eligible without applying the restrictions regarding social security numbers in Section 32(m) of the federal Internal Revenue Code.
(c) This Section is exempt from the provisions of Section 250.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 5/212.1)
(Section scheduled to be repealed on April 19, 2023)
Sec. 212.1. Individual income tax rebates.
(a) Each taxpayer who files an individual income tax return under this Act, on or before October 17, 2022, for the taxable year that began on January 1, 2021 and whose adjusted gross income for the taxable year is less than (i) $400,000, in the case of spouses filing a joint federal tax return, or (ii) $200,000, in the case of all other taxpayers, is entitled to a one-time rebate under this Section. The amount of the rebate shall be $50 for single filers and $100 for spouses filing a joint return, plus an additional $100 for each person who is claimed as a dependent, up to 3 dependents, on the taxpayer's federal income tax return for the taxable year that began on January 1, 2021. A taxpayer who files an individual income tax return under this Act for the taxable year that began on January 1, 2021, and who is claimed as a dependent on another individual's return for that year, is ineligible for the rebate provided under this Section. Spouses who qualify for a rebate under this Section and who file a joint return shall be treated as a single taxpayer for the purposes of the rebate under this Section. For a part-year resident, the amount of the rebate under this Section shall be in proportion to the amount of the taxpayer's income that is attributable to this State for the taxable year that began on January 1, 2021. Taxpayers who were non-residents for the taxable year that began on January 1, 2021 are not entitled to a rebate under this Section.
(b) Beginning on July 5, 2022, the Department shall certify to the Comptroller the names of the taxpayers who are eligible for a one-time rebate under this Section, the amounts of those rebates, and any other information that the Comptroller requires to direct the payment of the rebates provided under this Section to taxpayers.
(c) If a taxpayer files an amended return indicating that the taxpayer is entitled to a rebate under this Section that the taxpayer did not receive, or indicating that the taxpayer did not receive the full rebate amount to which the taxpayer is entitled, then the rebate shall be processed in the same manner as a claim for refund under Article 9. If the taxpayer files an amended return indicating that the taxpayer received a rebate under this Section to which the taxpayer is not entitled, then the Department shall issue a notice of deficiency as provided in Article 9.
(d) The Department shall make the rebate payments authorized by this Section from the Income Tax Refund Fund.
(e) The amount of a rebate under this Section shall not be included in the taxpayer's income or resources for the purposes of determining eligibility or benefit level in any means-tested benefit program administered by a governmental entity unless required by federal law.
(f) Nothing in this Section prevents a taxpayer from receiving the earned income tax credit and the rebate under this Section for the same taxable year.
(g) Notwithstanding any other law to the contrary, the rebates shall not be subject to offset by the Comptroller against any liability owed either to the State or to any unit of local government.
(h) The Department shall adopt rules for the implementation of this Section, including emergency rules under Section 5-45.21 of the Illinois Administrative Procedure Act.
(i) This Section is repealed one year after the effective date of this amendatory Act of the 102nd General Assembly.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 5/213)
Sec. 213. Film production services credit. For tax years beginning on or
after January 1, 2004, a taxpayer who has been awarded a tax credit under the
Film Production Services Tax Credit Act or under the Film Production Services Tax Credit Act of 2008 is entitled to a credit against the
taxes imposed under subsections (a) and (b) of Section 201 of this Act in an
amount determined by the Department of Commerce and Economic Opportunity under those Acts. If the taxpayer is a partnership or
Subchapter S corporation, the credit is allowed to the partners or shareholders
in accordance with the determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
A transfer of this credit may be made by the taxpayer earning the credit within one year after the credit is awarded in accordance with rules adopted by the Department of Commerce and Economic Opportunity.
Beginning July 1, 2023, if a credit is transferred under this Section by the taxpayer, then the transferor taxpayer shall pay to the Department of Commerce and Economic Opportunity, upon notification of a transfer, a fee equal to 2.5% of the transferred credit amount eligible for nonresident wages, as described in Section 10 of the Film Production Services Tax Credit Act of 2008, and an additional fee of 0.25% of the total amount of the transferred credit that is not calculated on nonresident wages, which shall be deposited into the Illinois Production Workforce Development Fund.
The
Department, in cooperation with the Department of Commerce and Economic Opportunity, must prescribe rules to enforce and administer the provisions of this
Section. This Section is exempt from the provisions of Section 250 of this
Act.
The credit may not be carried back. If the amount of the credit exceeds the tax liability for the year, the
excess may be carried forward and applied to the tax liability of the 5 taxable
years following the excess credit year. The credit
shall be applied to the earliest year for which there is a tax liability. If
there are credits from more than one tax year that are available to offset a
liability, the earlier credit shall be applied first. In no event shall a credit
under this Section reduce the taxpayer's
liability to less than
zero.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 5/214)
Sec. 214. Tax credit for affordable housing donations.
(a) Beginning with taxable years ending on or after December 31, 2001 and
until the taxable year ending on December 31, 2026, a taxpayer who makes a
donation under Section 7.28 of the Illinois Housing Development Act is entitled to a credit
against the tax imposed by subsections (a) and (b) of Section 201 in an amount
equal
to 50% of the value of the donation. Partners, shareholders of subchapter S
corporations, and owners of limited liability companies (if the limited
liability company is treated as a partnership for purposes of federal and State
income
taxation) are entitled to a credit under this Section to be determined in
accordance with the determination of income and distributive share of income
under Sections 702 and 703 and subchapter S of the Internal Revenue Code.
Persons or entities not subject to the tax imposed by subsections (a) and (b)
of Section 201 and who make a donation under Section 7.28 of the Illinois
Housing Development Act are entitled to a credit as described in this
subsection and may transfer that credit as described in subsection (c).
(b) If the amount of the credit exceeds the tax liability for the year, the
excess may be carried forward and applied to the tax liability of the 5 taxable
years following the excess credit year. The tax credit shall be applied to the
earliest year for which there is a tax liability. If there are credits for
more than one year that are available to offset a liability, the earlier credit
shall be applied first.
(c) The transfer of the tax credit allowed under this Section may be made
(i) to the purchaser of land that has been designated solely for affordable
housing projects in accordance with the Illinois Housing Development Act or
(ii) to another donor who has also made a donation in accordance with Section 7.28 of the
Illinois Housing
Development Act.
(d) A taxpayer claiming the credit provided by this Section must maintain
and record any information that the Department may require by regulation
regarding the project for which the credit is claimed.
When
claiming the credit provided by this Section, the taxpayer must provide
information regarding the taxpayer's donation to the project under the Illinois Housing Development Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-175, eff. 7-29-21.)
(35 ILCS 5/215)
Sec. 215. (Repealed).
(Source: P.A. 93-23, eff. 6-20-03. Repealed by P.A. 93-1033, eff. 9-3-04.)
(35 ILCS 5/216)
Sec. 216. Credit for wages paid to ex-felons.
(a) For each taxable year beginning on or after January 1, 2007, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 5% of qualified wages paid by the taxpayer during the taxable year to one or more Illinois residents who are qualified ex-offenders. The total credit allowed to a taxpayer with respect to each qualified ex-offender may not exceed $1,500 for all taxable years. For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(b) For purposes of this Section, "qualified wages":
If the taxpayer has received any payment from a program established under Section 482(e)(1) of the federal Social Security Act with respect to a qualified ex-offender, then, for purposes of calculating the credit under this Section, the amount of the qualified wages paid to that qualified ex-offender must be reduced by the amount of the payment.
(c) For purposes of this Section, "qualified ex-offender" means any person who:
(d) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.
(e) This Section is exempt from the provisions of Section 250.
(Source: P.A. 98-165, eff. 8-5-13.)
(35 ILCS 5/217)
Sec. 217. Credit for wages paid to qualified veterans.
(a) For each taxable year beginning on or after January 1, 2007 and ending on or before December 30, 2010, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 5%, but in no event to exceed $600, of the gross wages paid by the taxpayer to a qualified veteran in the course of that veteran's sustained employment during the taxable year. For each taxable year beginning on or after January 1, 2010, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 10%, but in no event to exceed $1,200, of the gross wages paid by the taxpayer to a qualified veteran in the course of that veteran's sustained employment during the taxable year. For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(b) For purposes of this Section:
"Qualified veteran" means an Illinois resident who: (i) was a member of the Armed Forces of the United States, a member of the Illinois National Guard, or a member of any reserve component of the Armed Forces of the United States; (ii) served on active duty in connection with Operation Desert Storm, Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) has provided, to the taxpayer, documentation showing that he or she was honorably discharged; and (iv) was initially hired by the taxpayer on or after January 1, 2007.
"Sustained employment" means a period of employment that is not less than 185 days during the taxable year.
(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.
(d) A taxpayer who claims a credit under this Section for a taxable year with respect to a veteran shall not be allowed a credit under Section 217.1 of this Act with respect to the same veteran for that taxable year.
(Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.)
(35 ILCS 5/217.1)
Sec. 217.1. Credit for wages paid to qualified unemployed veterans.
(a) For each taxable year ending on or after December 31, 2012 and on or before December 31, 2016, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in the amount equal to 20%, but in no event to exceed $5,000, of the gross wages paid by the taxpayer to a qualified veteran in the course of that veteran's sustained employment during each taxable year ending on or after the date of hire by the taxpayer if that veteran was unemployed for an aggregate period of 4 weeks or more during the 6-week period ending on the Saturday immediately preceding the date he or she was hired by the taxpayer. For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for the purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(b) For the purposes of this Section:
"Qualified veteran" means an Illinois resident who: (i) was a member of the Armed Forces of the United States, a member of the Illinois National Guard, or a member of any reserve component of the Armed Forces of the United States; (ii) served on active duty on or after September 11, 2001; (iii) has provided, to the taxpayer, documentation showing that he or she was honorably discharged; and (iv) was initially hired by the taxpayer on or after June 1, 2012.
"Sustained employment" means (i) a period of employment that is not less than 185 days following the date of hire or (ii) in the case of a veteran who was unemployed for an aggregate period of 6 months or more during the one-year period ending on the date the veteran was hired by the taxpayer, a period of employment that is more than 30 days following the date of hire. The period of sustained employment may be completed after the end of the taxable year in which the veteran is hired.
A veteran is "unemployed" for a week if he or she (i) has received unemployment benefits (as defined in Section 202 of the Unemployment Insurance Act, including but not limited to federally funded unemployment benefits) for the week, or (ii) has not been employed since being honorably discharged.
(c) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset liability, the earlier credit shall be applied first.
(d) A taxpayer who claims a credit under this Section for a taxable year with respect to a veteran shall not be allowed a credit under Section 217 of this Act with respect to the same veteran for that taxable year.
(Source: P.A. 97-767, eff. 7-9-12.)
(35 ILCS 5/218)
Sec. 218. Credit for student-assistance contributions.
(a) For taxable years ending on or after December 31, 2009 and on or before December 31, 2024, each taxpayer who, during the taxable year, makes a contribution (i) to a specified individual College Savings Pool Account under Section 16.5 of the State Treasurer Act or (ii) to the Illinois Prepaid Tuition Trust Fund in an amount matching a contribution made in the same taxable year by an employee of the taxpayer to that Account or Fund is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 in an amount equal to 25% of that matching contribution, but not to exceed $500 per contributing employee per taxable year.
(b) For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there is allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(c) The credit may not be carried back. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.
(d) A taxpayer claiming the credit under this Section must maintain and record any information that the Illinois Student Assistance Commission, the Office of the State Treasurer, or the Department may require regarding the matching contribution for which the credit is claimed.
(Source: P.A. 101-645, eff. 6-26-20; 102-289, eff. 8-6-21.)
(35 ILCS 5/219)
Sec. 219. Historic preservation credit. For tax years
beginning on or after January 1, 2010 and ending on or before December 31, 2015, a taxpayer who qualifies
for a credit under the Historic Preservation Tax Credit Pilot Program Act is
entitled to a credit against the taxes imposed under
subsections (a) and (b) of Section 201 of this Act as provided
in that Act. If the taxpayer is a partnership or Subchapter S
corporation, the credit shall be allowed to the partners or
shareholders in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
Subchapter S of the Internal Revenue Code.
If the amount of any tax credit awarded under this Section exceeds the qualified taxpayer's income tax liability for the year in which the qualified rehabilitation plan was placed in service, the excess amount may be carried forward or back as provided in the Historic Preservation Tax Credit Pilot Program Act.
(Source: P.A. 96-933, eff. 6-21-10.)
(35 ILCS 5/220)
Sec. 220. Angel investment credit.
(a) As used in this Section:
"Applicant" means a corporation, partnership, limited liability company, or a natural person that makes an investment in a qualified new business venture. The term "applicant" does not include (i) a corporation, partnership, limited liability company, or a natural person who has a direct or indirect ownership interest of at least 51% in the profits, capital, or value of the qualified new business venture receiving the investment or (ii) a related member.
"Claimant" means an applicant certified by the Department who files a claim for a credit under this Section.
"Department" means the Department of Commerce and Economic Opportunity.
"Investment" means money (or its equivalent) given to a qualified new business venture, at a risk of loss, in consideration for an equity interest of the qualified new business venture. The Department may adopt rules to permit certain forms of contingent equity investments to be considered eligible for a tax credit under this Section.
"Qualified new business venture" means a business that is registered with the Department under this Section.
"Related member" means a person that, with respect to the
applicant, is any one of the following:
(b) For taxable years beginning after December 31, 2010, and ending on or before December 31, 2026, subject to the limitations provided in this Section, a claimant may claim, as a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act, an amount equal to 25% of the claimant's investment made directly in a qualified new business venture. In order for an investment in a qualified new business venture to be eligible for tax credits, the business must have applied for and received certification under subsection (e) for the taxable year in which the investment was made prior to the date on which the investment was made. The credit under this Section may not exceed the taxpayer's Illinois income tax liability for the taxable year. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, the earlier credit shall be applied first. In the case of a partnership or Subchapter S Corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(c) The minimum amount an applicant must invest in any single qualified new business venture in order to be eligible for a credit under this Section is $10,000. The maximum amount of an applicant's total investment made in any single qualified new business venture that may be used as the basis for a credit under this Section is $2,000,000.
(d) The Department shall implement a program to certify an applicant for an angel investment credit. Upon satisfactory review, the Department shall issue a tax credit certificate stating the amount of the tax credit to which the applicant is entitled. The Department shall annually certify that: (i) each qualified new business venture that receives an angel investment under this Section has maintained a minimum employment threshold, as defined by rule, in the State (and continues to maintain a minimum employment threshold in the State for a period of no less than 3 years from the issue date of the last tax credit certificate issued by the Department with respect to such business pursuant to this Section); and (ii) the claimant's investment has been made and remains, except in the event of a qualifying liquidity event, in the qualified new business venture for no less than 3 years.
If an investment for which a claimant is allowed a credit under subsection (b) is held by the claimant for less than 3 years, other than as a result of a permitted sale of the investment to person who is not a related member, the claimant shall pay to the Department of Revenue, in the manner prescribed by the Department of Revenue, the aggregate amount of the disqualified credits that the claimant received related to the subject investment.
If the Department determines that a qualified new business venture failed to maintain a minimum employment threshold in the State through the date which is 3 years from the issue date of the last tax credit certificate issued by the Department with respect to the subject business pursuant to this Section, the claimant or claimants shall pay to the Department of Revenue, in the manner prescribed by the Department of Revenue, the aggregate amount of the disqualified credits that claimant or claimants received related to investments in that business.
(e) The Department shall implement a program to register qualified new business ventures for purposes of this Section. A business desiring registration under this Section shall be required to submit a full and complete application to the Department. A submitted application shall be effective only for the taxable year in which it is submitted, and a business desiring registration under this Section shall be required to submit a separate application in and for each taxable year for which the business desires registration. Further, if at any time prior to the acceptance of an application for registration under this Section by the Department one or more events occurs which makes the information provided in that application materially false or incomplete (in whole or in part), the business shall promptly notify the Department of the same. Any failure of a business to promptly provide the foregoing information to the Department may, at the discretion of the Department, result in a revocation of a previously approved application for that business, or disqualification of the business from future registration under this Section, or both. The Department may register the business only if all of the following conditions are satisfied:
(f) The Department, in consultation with the Department of Revenue, shall adopt rules to administer this Section. The aggregate amount of the tax credits that may be claimed under this Section for investments made in qualified new business ventures shall be limited at $10,000,000 per calendar year, of which $500,000 shall be reserved for investments made in qualified new business ventures which are minority-owned businesses, women-owned businesses, or businesses owned by a person with a disability (as those terms are used and defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act), and an additional $500,000 shall be reserved for investments made in qualified new business ventures with their principal place of business in counties with a population of not more than 250,000. The foregoing annual allowable amounts shall be allocated by the Department, on a per calendar quarter basis and prior to the commencement of each calendar year, in such proportion as determined by the Department, provided that: (i) the amount initially allocated by the Department for any one calendar quarter shall not exceed 35% of the total allowable amount; (ii) any portion of the allocated allowable amount remaining unused as of the end of any of the first 3 calendar quarters of a given calendar year shall be rolled into, and added to, the total allocated amount for the next available calendar quarter; and (iii) the reservation of tax credits for investments in minority-owned businesses, women-owned businesses, businesses owned by a person with a disability, and in businesses in counties with a population of not more than 250,000 is limited to the first 3 calendar quarters of a given calendar year, after which they may be claimed by investors in any qualified new business venture.
(g) A claimant may not sell or otherwise transfer a credit awarded under this Section to another person.
(h) On or before March 1 of each year, the Department shall report to the Governor and to the General Assembly on the tax credit certificates awarded under this Section for the prior calendar year.
(i) For each business seeking registration under this Section after December 31, 2016, the Department shall require the business to include in its application the North American Industry Classification System (NAICS) code applicable to the business and the number of employees of the business at the time of application. Each business registered by the Department as a qualified new business venture that receives an investment giving rise to the issuance of a tax credit certificate pursuant to this Section shall, for each of the 3 years following the issue date of the last tax credit certificate issued by the Department with respect to such business pursuant to this Section, report to the Department the following:
(35 ILCS 5/221)
Sec. 221. Rehabilitation costs; qualified historic properties; River Edge Redevelopment Zone.
(a) For taxable years that begin on or after January 1, 2012 and begin prior to January 1, 2018, there shall be allowed a tax credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 25% of qualified expenditures incurred by a qualified taxpayer during the taxable year in the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone pursuant to a qualified rehabilitation plan, provided that the total amount of such expenditures (i) must equal $5,000 or more and (ii) must exceed 50% of the purchase price of the property.
(a-1) For taxable years that begin on or after January 1, 2018 and end prior to January 1, 2027, there shall be allowed a tax credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an aggregate amount equal to 25% of qualified expenditures incurred by a qualified taxpayer in the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone pursuant to a qualified rehabilitation plan, provided that the total amount of such expenditures must (i) equal $5,000 or more and (ii) exceed the adjusted basis of the qualified historic structure on the first day the qualified rehabilitation plan begins. For any rehabilitation project, regardless of duration or number of phases, the project's compliance with the foregoing provisions (i) and (ii) shall be determined based on the aggregate amount of qualified expenditures for the entire project and may include expenditures incurred under subsection (a), this subsection, or both subsection (a) and this subsection. If the qualified rehabilitation plan spans multiple years, the aggregate credit for the entire project shall be allowed in the last taxable year, except for phased rehabilitation projects, which may receive credits upon completion of each phase. Before obtaining the first phased credit: (A) the total amount of such expenditures must meet the requirements of provisions (i) and (ii) of this subsection; (B) the rehabilitated portion of the qualified historic structure must be placed in service; and (C) the requirements of subsection (b) must be met.
(a-2) For taxable years beginning on or after January 1, 2021 and ending prior to January 1, 2027, there shall be allowed a tax credit against the tax imposed by subsections (a) and (b) of Section 201 as provided in Section 10-10.3 of the River Edge Redevelopment Zone Act. The credit allowed under this subsection (a-2) shall apply only to taxpayers that make a capital investment of at least $1,000,000 in a qualified rehabilitation plan.
The credit or credits may not reduce the taxpayer's liability to less than zero. If the amount of the credit or credits exceeds the taxpayer's liability, the excess may be carried forward and applied against the taxpayer's liability in succeeding calendar years in the manner provided under paragraph (4) of Section 211 of this Act. The credit or credits shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one taxable year that are available to offset a liability, the earlier credit shall be applied first.
For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for the purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
The total aggregate amount of credits awarded under the Blue Collar Jobs Act (Article 20 of this amendatory Act of the 101st General Assembly) shall not exceed $20,000,000 in any State fiscal year.
(b) To obtain a tax credit pursuant to this Section, the taxpayer must apply with the Department of Natural Resources. The Department of Natural Resources shall determine the amount of eligible rehabilitation costs and expenses in addition to the amount of the River Edge construction jobs credit within 45 days of receipt of a complete application. The taxpayer must submit a certification of costs prepared by an independent certified public accountant that certifies (i) the project expenses, (ii) whether those expenses are qualified expenditures, and (iii) that the qualified expenditures exceed the adjusted basis of the qualified historic structure on the first day the qualified rehabilitation plan commenced. The Department of Natural Resources is authorized, but not required, to accept this certification of costs to determine the amount of qualified expenditures and the amount of the credit. The Department of Natural Resources shall provide guidance as to the minimum standards to be followed in the preparation of such certification. The Department of Natural Resources and the National Park Service shall determine whether the rehabilitation is consistent with the United States Secretary of the Interior's Standards for Rehabilitation.
(b-1) Upon completion of the project and approval of the complete application, the Department of Natural Resources shall issue a single certificate in the amount of the eligible credits equal to 25% of qualified expenditures incurred during the eligible taxable years, as defined in subsections (a) and (a-1), excepting any credits awarded under subsection (a) prior to January 1, 2019 (the effective date of Public Act 100-629) and any phased credits issued prior to the eligible taxable year under subsection (a-1). At the time the certificate is issued, an issuance fee up to the maximum amount of 2% of the amount of the credits issued by the certificate may be collected from the applicant to administer the provisions of this Section. If collected, this issuance fee shall be deposited into the Historic Property Administrative Fund, a special fund created in the State treasury. Subject to appropriation, moneys in the Historic Property Administrative Fund shall be provided to the Department of Natural Resources as reimbursement for the costs associated with administering this Section.
(c) The taxpayer must attach the certificate to the tax return on which the credits are to be claimed. The tax credit under this Section may not reduce the taxpayer's liability to less than
zero. If the amount of the credit exceeds the tax liability for the year, the excess credit may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year.
(c-1) Subject to appropriation, moneys in the Historic Property Administrative Fund shall be used, on a biennial basis beginning at the end of the second fiscal year after January 1, 2019 (the effective date of Public Act 100-629), to hire a qualified third party to prepare a biennial report to assess the overall economic impact to the State from the qualified rehabilitation projects under this Section completed in that year and in previous years. The overall economic impact shall include at least: (1) the direct and indirect or induced economic impacts of completed projects; (2) temporary, permanent, and construction jobs created; (3) sales, income, and property tax generation before, during construction, and after completion; and (4) indirect neighborhood impact after completion. The report shall be submitted to the Governor and the General Assembly. The report to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct.
(c-2) The Department of Natural Resources may adopt rules to implement this Section in addition to the rules expressly authorized in this Section.
(d) As used in this Section, the following terms have the following meanings.
"Phased rehabilitation" means a project that is completed in phases, as defined under Section 47 of the federal Internal Revenue Code and pursuant to National Park Service regulations at 36 C.F.R. 67.
"Placed in service" means the date when the property is placed in a condition or state of readiness and availability for a specifically assigned function as defined under Section 47 of the federal Internal Revenue Code and federal Treasury Regulation Sections 1.46 and 1.48.
"Qualified expenditure" means all the costs and expenses defined as qualified rehabilitation expenditures under Section 47 of the federal Internal Revenue Code that were incurred in connection with a qualified historic structure.
"Qualified historic structure" means a certified historic structure as defined under Section 47(c)(3) of the federal Internal Revenue Code.
"Qualified rehabilitation plan" means a project that is approved by the Department of Natural Resources and the National Park Service as being consistent with the United States Secretary of the Interior's Standards for Rehabilitation.
"Qualified taxpayer" means the owner of the qualified historic structure or any other person who qualifies for the federal rehabilitation credit allowed by Section 47 of the federal Internal Revenue Code with respect to that qualified historic structure. Partners, shareholders of subchapter S corporations, and owners of limited liability companies (if the limited liability company is treated as a partnership for purposes of federal and State income taxation) are entitled to a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 703 and subchapter S of the Internal Revenue Code, provided that credits granted to a partnership, a limited liability company taxed as a partnership, or other multiple owners of property shall be passed through to the partners, members, or owners respectively on a pro rata basis or pursuant to an executed agreement among the partners, members, or owners documenting any alternate distribution method.
(Source: P.A. 101-9, eff. 6-5-19; 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.)
(35 ILCS 5/222)
Sec. 222. Live theater production credit.
(a) For tax years beginning on or after January 1, 2012 and beginning prior to January 1, 2027, a taxpayer who has received a tax credit award under the Live Theater Production Tax Credit Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act in an amount determined under that Act by the Department of Commerce and Economic Opportunity.
(b) If the taxpayer is a partnership, limited liability partnership, limited liability company, or Subchapter S corporation, the tax credit award is allowed to the partners, unit holders, or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(c) A sale, assignment, or transfer of the tax credit award may be made by the taxpayer earning the credit within one year after the credit is awarded in accordance with rules adopted by the Department of Commerce and Economic Opportunity.
(d) The Department of Revenue, in cooperation with the Department of Commerce and Economic Opportunity, shall adopt rules to enforce and administer the provisions of this Section.
(e) The tax credit award may not be carried back. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 tax years following the excess credit year. The tax credit award shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset liability, the earlier credit shall be applied first. In no event may a credit under this Section reduce the taxpayer's liability to less than zero.
(Source: P.A. 102-16, eff. 6-17-21.)
(35 ILCS 5/223)
Sec. 223. Hospital credit.
(a) For tax years ending on or after December 31, 2012 and ending on or before December 31, 2027, a taxpayer that is the owner of a hospital licensed under the Hospital Licensing Act, but not including an organization that is exempt from federal income taxes under the Internal Revenue Code, is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act in an amount equal to the lesser of the amount of real property taxes paid during the tax year on real property used for hospital purposes during the prior tax year or the cost of free or discounted services provided during the tax year pursuant to the hospital's charitable financial assistance policy, measured at cost.
(b) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code. A transfer of this credit may be made by the taxpayer earning the credit within one year after the credit is earned in accordance with rules adopted by the Department. The Department shall prescribe rules to enforce and administer provisions of this Section. If the amount of the credit exceeds the tax liability for the year, then the excess credit may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, the earlier credit shall be applied first. In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.
(Source: P.A. 102-700, eff. 4-19-22; 102-886, eff. 5-17-22.)
(35 ILCS 5/224)
Sec. 224. Invest in Kids credit.
(a) For taxable years beginning on or after January 1, 2018 and ending before January 1, 2024, each taxpayer for whom a tax credit has been awarded by the Department under the Invest in Kids Act is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act in an amount equal to the amount awarded under the Invest in Kids Act.
(b) For partners, shareholders of subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, the credit under this Section shall be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code.
(c) The credit may not be carried back and may not reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset the liability, the earlier credit shall be applied first.
(d) A tax credit awarded by the Department under the Invest in Kids Act may not be claimed for any qualified contribution for which the taxpayer claims a federal income tax deduction.
(Source: P.A. 102-699, eff. 4-19-22.)
(35 ILCS 5/225)
Sec. 225. Credit for instructional materials and supplies. For taxable years beginning on and after January 1, 2017, a taxpayer shall be allowed a credit in the amount paid by the taxpayer during the taxable year for instructional materials and supplies with respect to classroom based instruction in a qualified school, or the maximum credit amount, whichever is less, provided that the taxpayer is a teacher, instructor, counselor, principal, or aide in a qualified school for at least 900 hours during a school year.
The credit may not be carried back and may not reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.
For purposes of this Section, the term "materials and supplies" means amounts paid for instructional materials or supplies that are designated for classroom use in any qualified school. For purposes of this Section, the term "qualified school" means a public school or non-public school located in Illinois.
For purposes of this Section, the term "maximum credit amount" means (i) $250 for taxable years beginning prior to January 1, 2023 and (ii) $500 for taxable years beginning on or after January 1, 2023.
This Section is exempt from the provisions of Section 250.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 5/226)
Sec. 226. Natural disaster credit.
(a) For taxable years that begin on or after January 1, 2017 and begin prior to January 1, 2019, each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor due to flooding in 2017 or 2018 is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to the lesser of $750 or the deduction allowed (whether or not the taxpayer determines taxable income under subsection (b) of Section 63 of the Internal Revenue Code) with respect to the qualified property under Section 165 of the Internal Revenue Code, determined without regard to the limitations imposed under subsection (h) of that Section. The township assessor or, if the township assessor is unable, the chief county assessment officer of the county in which the property is located, shall issue a certificate to the taxpayer identifying the taxpayer's property as damaged as a result of the natural disaster. The certificate shall include the name and address of the property owner, as well as the property index number or permanent index number (PIN) of the damaged property. The taxpayer shall attach a copy of such certificate to the taxpayer's return for the taxable year for which the credit is allowed.
(b) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset liability, the earlier credit shall be applied first.
(c) If the taxpayer is a partnership or Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(d) A taxpayer is not entitled to the credit under this Section if the taxpayer receives a Natural Disaster Homestead Exemption under Section 15-173 of the Property Tax Code with respect to the qualified real property as a result of the natural disaster.
(e) The township assessor or, if the township assessor is unable to certify, the chief county assessment officer of the county in which the property is located, shall certify to the Department a listing of the properties located within the county that have been damaged as a result of the natural disaster (including the name and address of the property owner and the property index number or permanent index number (PIN) of each damage property).
(f) As used in this Section:
(g) Nothing in this Act prohibits the disclosure of information by officials of a county or municipality involving reports of damaged property or the owners of damaged property if that disclosure is made to a township or county assessment official in connection with a credit obtained or sought under this Section.
(Source: P.A. 100-555, eff. 11-16-17; 100-587, eff. 6-4-18; 100-731, eff. 1-1-19; 101-81, eff. 7-12-19.)
(35 ILCS 5/227)
Sec. 227. Adoption credit.
(a) Beginning with tax years ending on or after December 31, 2018, in the case of an individual taxpayer there shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to the amount of the federal adoption tax credit received pursuant to Section 23 of the Internal Revenue Code with respect to the adoption of a qualifying dependent child, subject to the limitations set forth in this subsection and subsection (b). The aggregate amount of qualified adoption expenses which may be taken into account under this Section for all taxable years with respect to the adoption of a qualifying dependent child by the taxpayer shall not exceed $2,000 ($1,000 in the case of a married individual filing a separate return). The credit under this Section shall be allowed: (i) in the case of any expense paid or incurred before the taxable year in which such adoption becomes final, for the taxable year following the taxable year during which such expense is paid or incurred, and (ii) in the case of an expense paid or incurred during or after the taxable year in which such adoption becomes final, for the taxable year in which such expense is paid or incurred. No credit shall be allowed under this Section for any expense to the extent that funds for such expense are received under any federal, State, or local program. For purposes of this Section, spouses filing a joint return shall be considered one taxpayer.
For a non-resident or part-year resident, the amount of the credit under this Section shall be in proportion to the amount of income attributable to this State.
(b) Increased credit amount for resident children. With respect to the adoption of an eligible child who is at least one year old and resides in Illinois at the time the expenses are paid or incurred, subsection (a) shall be applied by substituting $5,000 ($2,500 in the case of a married individual filing a separate return) for $2,000.
(c) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the income tax liability for the applicable tax year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one year that are available to offset a liability, the earlier credit shall be applied first.
(d) The term "qualified adoption expenses" shall have the same meaning as under Section 23(d) of the Internal Revenue Code.
(Source: P.A. 100-587, eff. 6-4-18; 101-81, eff. 7-12-19.)
(35 ILCS 5/228)
Sec. 228. Historic preservation credit. For
tax years beginning on or after January 1, 2019 and ending on
or before December 31, 2023, a taxpayer who qualifies for a
credit under the Historic Preservation Tax Credit Act is entitled to a credit against the taxes
imposed under subsections (a) and (b) of Section 201 of this
Act as provided in that Act. If the taxpayer is a partnership,
Subchapter S corporation, or a limited liability company the credit shall be allowed to the
partners, shareholders, or members in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code provided that credits granted to a partnership, a limited liability company taxed as a partnership, or other multiple owners of property shall be passed through to the partners, members, or owners respectively on a pro rata basis or pursuant to an executed agreement among the partners, members, or owners documenting any alternate distribution method.
If the amount of any tax credit awarded under this Section
exceeds the qualified taxpayer's income tax liability for the
year in which the qualified rehabilitation plan was placed in
service, the excess amount may be carried forward as
provided in the Historic Preservation Tax Credit Act.
(Source: P.A. 101-81, eff. 7-12-19; 102-741, eff. 5-6-22.)
(35 ILCS 5/229)
Sec. 229. Data center construction employment tax credit.
(a) A taxpayer who has been awarded a credit by the Department of Commerce and Economic Opportunity under Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act. The amount of the credit shall be 20% of the wages paid during the taxable year to a full-time or part-time employee of a construction contractor employed by a certified data center if those wages are paid for the construction of a new data center in a geographic area that meets any one of the following criteria:
If the taxpayer is a partnership, a Subchapter S corporation, or a limited liability company that has elected partnership tax treatment, the credit shall be allowed to the partners, shareholders, or members in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code, as applicable. The Department, in cooperation with the Department of Commerce and Economic Opportunity, shall adopt rules to enforce and administer this Section. This Section is exempt from the provisions of Section 250 of this Act.
(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.
(c) No credit shall be allowed with respect to any certification for any taxable year ending after the revocation of the certification by the Department of Commerce and Economic Opportunity. Upon receiving notification by the Department of Commerce and Economic Opportunity of the revocation of certification, the Department shall notify the taxpayer that no credit is allowed for any taxable year ending after the revocation date, as stated in such notification. If any credit has been allowed with respect to a certification for a taxable year ending after the revocation date, any refund paid to the taxpayer for that taxable year shall, to the extent of that credit allowed, be an erroneous refund within the meaning of Section 912 of this Act.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19; 102-558, eff. 8-20-21.)
(35 ILCS 5/230)
Sec. 230. (Repealed).
(Source: P.A. 102-558, Section 220, eff. 8-20-21. Repealed by P.A. 102-558, Section 880, eff. 8-20-21)
(35 ILCS 5/231)
Sec. 231. Apprenticeship education expense credit.
(a) As used in this Section:
"Department" means the Department of Commerce and Economic Opportunity.
"Employer" means an Illinois taxpayer who is the employer of the qualifying apprentice.
"Qualifying apprentice" means an individual who: (i) is a resident of the State of Illinois; (ii) is at least 16 years old at the close of the school year for which a credit is sought; (iii) during the school year for which a credit is sought, was a full-time apprentice enrolled in an apprenticeship program which is registered with the United States Department of Labor, Office of Apprenticeship; and (iv) is employed in Illinois by the taxpayer who is the employer.
"Qualified education expense" means the amount incurred on behalf of a qualifying apprentice not to exceed $3,500 for tuition, book fees, and lab fees at the school or community college in which the apprentice is enrolled during the regular school year.
"School" means any public or nonpublic secondary school in Illinois that is: (i) an institution of higher education that provides a program that leads to an industry-recognized postsecondary credential or degree; (ii) an entity that carries out programs registered under the federal National Apprenticeship Act; or (iii) another public or private provider of a program of training services, which may include a joint labor-management organization.
(b) For taxable years beginning on or after January 1, 2020, and beginning on or before January 1, 2025, the employer of one or more qualifying apprentices shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act for qualified education expenses incurred on behalf of a qualifying apprentice. The credit shall be equal to 100% of the qualified education expenses, but in no event may the total credit amount awarded to a single taxpayer in a single taxable year exceed $3,500 per qualifying apprentice. A taxpayer shall be entitled to an additional $1,500 credit against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act if (i) the qualifying apprentice resides in an underserved area as defined in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act during the school year for which a credit is sought by an employer or (ii) the employer's principal place of business is located in an underserved area, as defined in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act. In no event shall a credit under this Section reduce the taxpayer's liability under this Act to less than zero.
For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(c) The Department shall implement a program to certify applicants for an apprenticeship credit under this Section. Upon satisfactory review, the Department shall issue a tax credit certificate to an employer incurring costs on behalf of a qualifying apprentice stating the amount of the tax credit to which the employer is entitled. If the employer is seeking a tax credit for multiple qualifying apprentices, the Department may issue a single tax credit certificate that encompasses the aggregate total of tax credits for qualifying apprentices for a single employer.
(d) The Department, in addition to those powers granted under the Civil Administrative Code of Illinois, is granted and shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this Section, including, but not limited to, power and authority to:
(e) The Department, in consultation with the Department of Revenue, shall adopt rules to administer this Section. The aggregate amount of the tax credits that may be claimed under this Section for qualified education expenses incurred by an employer on behalf of a qualifying apprentice shall be limited to $5,000,000 per calendar year. If applications for a greater amount are received, credits shall be allowed on a first-come first-served basis, based on the date on which each properly completed application for a certificate of eligibility is received by the Department. If more than one certificate is received on the same day, the credits will be awarded based on the time of submission for that particular day.
(f) An employer may not sell or otherwise transfer a credit awarded under this Section to another person or taxpayer.
(g) The employer shall provide the Department such information as the Department may require, including but not limited to: (i) the name, age, and taxpayer identification number of each qualifying apprentice employed by the taxpayer during the taxable year; (ii) the amount of qualified education expenses incurred with respect to each qualifying apprentice; and (iii) the name of the school at which the qualifying apprentice is enrolled and the qualified education expenses are incurred.
(h) On or before July 1 of each year, the Department shall report to the Governor and the General Assembly on the tax credit certificates awarded under this Section for the prior calendar year. The report must include:
(Source: P.A. 101-207, eff. 8-2-19; 102-558, eff. 8-20-21.)
(35 ILCS 5/232)
(Text of Section from P.A. 102-700)
Sec. 232. Tax credit for agritourism liability insurance.
(a) For taxable years beginning on or after January 1, 2022 and ending on or before December 31, 2023, any individual or entity that operates an agritourism operation in the State during the taxable year shall be entitled to a tax credit against the tax imposed by subsections (a) and (b) of Section 201 equal to the lesser of 100% of the liability insurance premiums paid by that individual or entity during the taxable year or $1,000. To claim the credit, the taxpayer must apply to the Department of Agriculture for a certificate of credit in the form and manner required by the Department of Agriculture by rule. If granted, the taxpayer shall attach a copy of the certificate of credit to his or her Illinois income tax return for the taxable year. The total amount of credits that may be awarded by the Department of Agriculture may not exceed $1,000,000 in any calendar year.
(b) For the purposes of this Section:
"Agricultural property" means property that is used in whole or in part for production agriculture, as defined in Section 3-35 of the Use Tax Act, or used in connection with one or more of the following:
"Agritourism activities" includes, but is not limited to, the following:
"Agritourism activities" does not include the following activities:
"Agritourism operation" means an individual or entity that carries out agricultural activities on agricultural property and allows members of the general public, for recreational, entertainment, or educational purposes, to view or enjoy those activities.
(c) If the taxpayer is a partnership or Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(d) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.
(Source: P.A. 102-700, eff. 4-19-22.)
(Text of Section from P.A. 102-1053)
Sec. 232. Recovery and Mental Health Tax Credit Act. For taxable years beginning on or after January 1, 2023, a
taxpayer who has been awarded a credit under the Recovery and
Mental Health Tax Credit Act is entitled to a credit against
the tax imposed by subsections (a) and (b) of Section 201 as
provided in that Act. This Section is exempt from the
provisions of Section 250.
(Source: P.A. 102-1053, eff. 6-10-22.)
(35 ILCS 5/236)
Sec. 236. Reimagining Electric Vehicles in Illinois Tax credits.
(a) For tax years beginning on or after January 1, 2025, a taxpayer who has entered into an agreement under the Reimagining Electric Vehicles in Illinois Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act in an amount to be determined in the Agreement. The taxpayer may elect to claim the credit, on or after January 1, 2025, against its obligation to pay over withholding under Section 704A of this Act as provided in paragraph (6) of subsection (b). If the taxpayer is a partnership or Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code. The Department, in cooperation with the Department of Commerce and Economic Opportunity, shall adopt rules to enforce and administer the provisions of this Section. This Section is exempt from the provisions of Section 250 of this Act.
(b) The credit is subject to the conditions set forth in the agreement and the following limitations:
(Source: P.A. 102-669, eff. 11-16-21.)
(35 ILCS 5/237)
Sec. 237. REV Illinois Investment Tax credits.
(a) For tax years beginning on or after the effective date of this amendatory Act of the 102nd General Assembly, a taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 for investment in qualified property which is placed in service at the site of a REV Illinois Project subject to an agreement between the taxpayer and the Department of Commerce and Economic Opportunity pursuant to the Reimagining Electric Vehicles in Illinois Act. For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code. The credit shall be 0.5% of the basis for such property. The credit shall be available only in the taxable year in which the property is placed in service and shall not be allowed to the extent that it would reduce a taxpayer's liability for the tax imposed by subsections (a) and (b) of Section 201 to below zero. The credit shall be allowed for the tax year in which the property is placed in service, or, if the amount of the credit exceeds the tax liability for that year, whether it exceeds the original liability or the liability as later amended, such excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a liability. If there is credit from more than one tax year that is available to offset a liability, the credit accruing first in time shall be applied first.
(b) The term qualified property means property which:
(c) The basis of qualified property shall be the basis used to compute the depreciation deduction for federal income tax purposes.
(d) If the basis of the property for federal income tax depreciation purposes is increased after it has been placed in service at the site of the REV Illinois Project by the taxpayer, the amount of such increase shall be deemed property placed in service on the date of such increase in basis.
(e) The term "placed in service" shall have the same meaning as under Section 46 of the Internal Revenue Code.
(f) If during any taxable year, any property ceases to be qualified property in the hands of the taxpayer within 48 months after being placed in service, or the situs of any qualified property is moved from the REV Illinois Project site within 48 months after being placed in service, the tax imposed under subsections (a) and (b) of Section 201 for such taxable year shall be increased. Such increase shall be determined by (i) recomputing the investment credit which would have been allowed for the year in which credit for such property was originally allowed by eliminating such property from such computation, and (ii) subtracting such recomputed credit from the amount of credit previously allowed. For the purposes of this subsection (f), a reduction of the basis of qualified property resulting from a redetermination of the purchase price shall be deemed a disposition of qualified property to the extent of such reduction.
(Source: P.A. 102-669, eff. 11-16-21.)
(35 ILCS 5/238)
Sec. 238. MICRO credits.
(a) For tax years beginning on or after January 1, 2025, a taxpayer who has entered into an agreement under the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act in an amount to be determined in the agreement. The taxpayer may elect to claim the credit, on or after January 1, 2026, against its obligation to pay over withholding under Section 704A of this Act as provided in this Section. If the taxpayer is a partnership or Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code. The Department, in cooperation with the Department of Commerce and Economic Opportunity, shall adopt rules to enforce and administer the provisions of this Section. This Section is exempt from the provisions of Section 250 of this Act.
(b) The credit is subject to the conditions set forth in the agreement and the following limitations:
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 5/239)
Sec. 239. MICRO Investment Tax credits.
(a) For tax years beginning on or after January 1, 2025, a taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 for investment in qualified property which is placed in service at the site of a project that is subject to an agreement between the taxpayer and the Department of Commerce and Economic Opportunity pursuant to the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act. If the taxpayer is a partnership or a Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code. The credit shall be 0.5% of the basis for such property. The credit shall be available only in the taxable year in which the property is placed in service and shall not be allowed to the extent that it would reduce a taxpayer's liability for the tax imposed by subsections (a) and (b) of Section 201 to below zero. The credit shall be allowed for the tax year in which the property is placed in service, or, if the amount of the credit exceeds the tax liability for that year, whether it exceeds the original liability or the liability as later amended, such excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a liability. If there is credit from more than one tax year that is available to offset a liability, the credit accruing first in time shall be applied first.
(b) The term qualified property means property which:
(c) The basis of qualified property shall be the basis used to compute the depreciation deduction for federal income tax purposes.
(d) If the basis of the property for federal income tax depreciation purposes is increased after it has been placed in service at the site of the project by the taxpayer, the amount of such increase shall be deemed property placed in service on the date of such increase in basis.
(e) The term "placed in service" shall have the same meaning as under Section 46 of the Internal Revenue Code.
(f) If during any taxable year, any property ceases to be qualified property in the hands of the taxpayer within 48 months after being placed in service, or the situs of any qualified property is moved from the project site within 48 months after being placed in service, the tax imposed under subsections (a) and (b) of Section 201 for such taxable year shall be increased. Such increase shall be determined by (i) recomputing the investment credit which would have been allowed for the year in which credit for such property was originally allowed by eliminating such property from such computation, and (ii) subtracting such recomputed credit from the amount of credit previously allowed. For the purposes of this subsection (f), a reduction of the basis of qualified property resulting from a redetermination of the purchase price shall be deemed a disposition of qualified property to the extent of such reduction.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 5/245)
Sec. 245. (Repealed).
(Source: P.A. 90-553, eff. 6-1-98. Repealed by P.A. 99-933, eff. 1-27-17.)
(35 ILCS 5/250)
Sec. 250. Sunset of exemptions, credits, and deductions.
(a) The application
of every exemption, credit, and deduction against tax imposed by this Act that
becomes law after the effective date of this amendatory Act of 1994 shall be
limited by a reasonable and appropriate sunset date. A taxpayer is not
entitled to take the exemption, credit, or deduction for tax years beginning on
or after the sunset
date. Except as provided in subsection (b) of this Section, if a reasonable and appropriate sunset date is not
specified in the Public Act that creates the exemption, credit, or deduction, a
taxpayer shall not be entitled to take the exemption, credit, or deduction for
tax years beginning on or after 5 years after the effective date of the Public
Act creating the
exemption, credit, or deduction and thereafter; provided, however, that in
the case of any Public Act authorizing the issuance of tax-exempt obligations
that does not specify a sunset date for the exemption or deduction of income
derived from the obligations, the exemption or deduction shall not terminate
until after the obligations have been paid by the issuer.
(b) Notwithstanding the provisions of subsection (a) of this Section, the sunset date of any exemption, credit, or deduction that is scheduled to expire in 2011, 2012, or 2013 by operation of this Section shall be extended by 5 years.
(Source: P.A. 97-636, eff. 6-1-12.)
Structure Illinois Compiled Statutes
35 ILCS 5/ - Illinois Income Tax Act.
Article 1 - Short Title And Construction
Article 3 - Allocation And Apportionment Of Base Income
Article 5 - Records, Returns And Notices
Article 8 - Declaration And Payment Of Estimated Tax
Article 9 - Procedure And Administration
Article 10 - Penalties And Interest
Article 11 - Liens And Jeopardy Assessment
Article 14 - Miscellaneous Provisions