Rep. Ryan Spain
Filed: 4/2/2024
 
 
 




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1
AMENDMENT TO HOUSE BILL 4565 


2 AMENDMENT NO. ______. Amend House Bill 4565 by replacing 
3everything after the enacting clause with the following:

4 "Section 5. The Illinois Income Tax Act is amended by 
5adding Section 241 as follows:

6 (35 ILCS 5/241 new)
7 Sec. 241. Biobased products credit.
8 (a) For taxable years beginning on or after January 1, 
92025, each taxpayer who incurs eligible costs during the 
10taxable year in connection with the production of a biobased 
11product may apply to the Department of Commerce and Economic 
12Opportunity for a credit against the taxes imposed by 
13subsections (a) and (b) of Section 201. The credit may not 
14exceed 25% of those eligible costs. Upon satisfactory review, 
15the Department of Commerce and Economic Opportunity shall 
16issue a tax credit certificate to the applicant stating the 
 
 
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1amount of the tax credit to which the applicant is entitled. 
2The total aggregate amount of credits awarded under this 
3Section shall not exceed $20,000,000 in any State fiscal year. 
4 To be eligible for the credit under this Section, the 
5biobased product must be produced in Illinois; however, the 
6raw materials are not required to be sourced from Illinois. 
7 (b) A credit under this Section that is awarded to a 
8partner of a partnership or a shareholder of a subchapter S 
9corporation shall be awarded as provided in Section 251. 
10 (c) If the amount of the credit exceeds the tax liability 
11for the year, the excess may be carried forward or carried back 
12and may be applied to the tax liability of the 5 taxable years 
13preceding or following the excess credit year. If the credit 
14is carried forward, the credit shall be applied to the 
15earliest year for which there is a tax liability. If there are 
16credits from more than one tax year that are available to 
17offset a liability, the earlier credit shall be applied first. 
18In no event shall a credit under this Section reduce the 
19taxpayer's liability to less than zero. 
20 (c-5) A credit awarded under this Section may, within one 
21year after the credit is awarded, be transferred, in 
22accordance with rules adopted by the Department of Commerce 
23and Economic Opportunity in consultation with the Department 
24of Revenue, by the taxpayer earning the credit. 
25 (d) As used in this Section: 
26 "Biobased product" means a commercial or industrial 
 
 
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1product (other than food, fuel, or animal feed) that is 
2derived from raw materials, such as plants and other renewable 
3agricultural, marine, or forestry materials, and that meets 
4either of the following criteria: 
5  (1) the product is primarily (at least 50% by weight) 
6 composed of biological products verified using ASTM D6866 
7 or equivalent radioisotope testing, including renewable 
8 domestic agricultural materials, renewable chemicals, or 
9 forestry materials; or 
10  (2) the product is an intermediate ingredient or 
11 feedstock and 100% of the carbon in the product is from 
12 renewable, biological sources verified using ASTM D6866 or 
13 equivalent radioisotope testing. 
14 "Eligible costs" means: 
15  (1) costs associated with studies, surveys, the 
16 development of plans and specifications, implementation, 
17 and program administration, including, but not limited to, 
18 professional services costs, architectural costs, 
19 engineering costs, legal costs, financial services costs, 
20 and planning and administrative costs; 
21  (2) research and development costs; 
22  (3) marketing costs; 
23  (4) property assembly costs, including, but not 
24 limited to, costs associated with the acquisition of land 
25 and other real or personal property or rights or interests 
26 in property, demolition of buildings, and site 
 
 
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1 preparation; 
2  (5) costs of rehabilitation, reconstruction, repair, 
3 or remodeling of existing buildings; 
4  (6) costs of construction of new buildings; 
5  (7) costs of construction of public works or 
6 improvements related to business development, including, 
7 but not limited to, streets, sidewalks, water service, and 
8 sanitary and storm sewer service; 
9  (8) costs of eliminating or removing contaminants and 
10 other impediments; including, but not limited to, site 
11 improvements, the installation of parking lots and other 
12 concrete or asphalt barriers, and the clearing or grading 
13 of land; 
14  (9) costs associated with job training and retraining; 
15  (10) up to 30% of the financing costs; and 
16  (11) costs of capital equipment purchases. 
17 (e) The Department of Commerce and Economic Opportunity 
18shall adopt rules to implement this Section. 
19 (f) This Section is exempt from the provisions of Section 
20250.