Bill Amendment: IL HB4565 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: INC TX-BIOBASED PRODUCTS

Status: 2024-04-05 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB4565 Detail]

Download: Illinois-2023-HB4565-House_Amendment_001.html

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Rep. Ryan Spain

Filed: 4/2/2024

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AMENDMENT TO HOUSE BILL 4565
AMENDMENT NO. ______. Amend House Bill 4565 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Income Tax Act is amended by
adding Section 241 as follows:
(35 ILCS 5/241 new)
Sec. 241. Biobased products credit.
(a) For taxable years beginning on or after January 1,
2025, each taxpayer who incurs eligible costs during the
taxable year in connection with the production of a biobased
product may apply to the Department of Commerce and Economic
Opportunity for a credit against the taxes imposed by
subsections (a) and (b) of Section 201. The credit may not
exceed 25% of those eligible costs. Upon satisfactory review,
the Department of Commerce and Economic Opportunity shall
issue a tax credit certificate to the applicant stating the

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amount of the tax credit to which the applicant is entitled.
The total aggregate amount of credits awarded under this
Section shall not exceed $20,000,000 in any State fiscal year.
To be eligible for the credit under this Section, the
biobased product must be produced in Illinois; however, the
raw materials are not required to be sourced from Illinois.
(b) A credit under this Section that is awarded to a
partner of a partnership or a shareholder of a subchapter S
corporation shall be awarded as provided in Section 251.
(c) If the amount of the credit exceeds the tax liability
for the year, the excess may be carried forward or carried back
and may be applied to the tax liability of the 5 taxable years
preceding or following the excess credit year. If the credit
is carried forward, 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.
(c-5) A credit awarded under this Section may, within one
year after the credit is awarded, be transferred, in
accordance with rules adopted by the Department of Commerce
and Economic Opportunity in consultation with the Department
of Revenue, by the taxpayer earning the credit.
(d) As used in this Section:
"Biobased product" means a commercial or industrial

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product (other than food, fuel, or animal feed) that is
derived from raw materials, such as plants and other renewable
agricultural, marine, or forestry materials, and that meets
either of the following criteria:
(1) the product is primarily (at least 50% by weight)
composed of biological products verified using ASTM D6866
or equivalent radioisotope testing, including renewable
domestic agricultural materials, renewable chemicals, or
forestry materials; or
(2) the product is an intermediate ingredient or
feedstock and 100% of the carbon in the product is from
renewable, biological sources verified using ASTM D6866 or
equivalent radioisotope testing.
"Eligible costs" means:
(1) costs associated with studies, surveys, the
development of plans and specifications, implementation,
and program administration, including, but not limited to,
professional services costs, architectural costs,
engineering costs, legal costs, financial services costs,
and planning and administrative costs;
(2) research and development costs;
(3) marketing costs;
(4) property assembly costs, including, but not
limited to, costs associated with the acquisition of land
and other real or personal property or rights or interests
in property, demolition of buildings, and site

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preparation;
(5) costs of rehabilitation, reconstruction, repair,
or remodeling of existing buildings;
(6) costs of construction of new buildings;
(7) costs of construction of public works or
improvements related to business development, including,
but not limited to, streets, sidewalks, water service, and
sanitary and storm sewer service;
(8) costs of eliminating or removing contaminants and
other impediments; including, but not limited to, site
improvements, the installation of parking lots and other
concrete or asphalt barriers, and the clearing or grading
of land;
(9) costs associated with job training and retraining;
(10) up to 30% of the financing costs; and
(11) costs of capital equipment purchases.
(e) The Department of Commerce and Economic Opportunity
shall adopt rules to implement this Section.
(f) This Section is exempt from the provisions of Section
250.