Bill Text: IL HB3263 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates a credit in an amount equal to a percentage of the taxpayer's qualified production activities income. Provides that, for taxable years ending on or after December 31, 2014 and prior to December 31, 2015, the credit shall be 2% of the taxpayer's qualified production activities income for the taxable year; for taxable years ending on or after December 31, 2015 and prior to December 31, 2016, the credit shall be 4% of the taxpayer's qualified production activities income for the taxable year; and for taxable years ending on or after December 31, 2016, the credit shall be 6.2% of the taxpayer's qualified production activities income for the taxable year. Provides that excess credit amounts may be carried forward and applied to the tax liability of the 15 taxable years following the excess credit year. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB3263 Detail]

Download: Illinois-2013-HB3263-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB3263 Introduced , by Rep. Keith Farnham SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
Amends the Illinois Income Tax Act. Creates a credit in an amount equal to a percentage of the taxpayer's qualified production activities income. Provides that, for taxable years ending on or after December 31, 2014 and prior to December 31, 2015, the credit shall be 2% of the taxpayer's qualified production activities income for the taxable year; for taxable years ending on or after December 31, 2015 and prior to December 31, 2016, the credit shall be 4% of the taxpayer's qualified production activities income for the taxable year; and for taxable years ending on or after December 31, 2016, the credit shall be 6.2% of the taxpayer's qualified production activities income for the taxable year. Provides that excess credit amounts may be carried forward and applied to the tax liability of the 15 taxable years following the excess credit year. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by adding
Section 224 as follows:
(35 ILCS 5/224 new)
Sec. 224. Credit for qualified production activities
income. For taxable years ending on or after December 31, 2014,
each taxpayer is entitled to a credit against the tax imposed
under subsections (a) and (b) of Section 201 in an amount equal
to a percentage of the taxpayer's qualified production
activities income as set forth in this Section. For taxable
years ending on or after December 31, 2014 and prior to
December 31, 2015, the credit shall be 2% of the taxpayer's
qualified production activities income for the taxable year.
For taxable years ending on or after December 31, 2015 and
prior to December 31, 2016, the credit shall be 4% of the
taxpayer's qualified production activities income for the
taxable year. For taxable years ending on or after December 31,
2016, the credit shall be 6.2% of the taxpayer's qualified
production activities income for the taxable year.
In no event shall a credit under this Section reduce the
taxpayer's liability under this Act to less than zero. If the

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amount of the credit exceeds the tax liability for the taxable
year, whether it exceeds the original liability or the
liability as later amended, the excess may be carried forward
and applied to the tax liability of the 15 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, earlier credit shall be applied first.
For the purposes of this Section "qualified production
activities income" has the meaning ascribed to that term in
subsection (c) of Section 199 of the federal Internal Revenue
Code.
This Section is exempt from the provisions of Section 250.
Section 99. Effective date. This Act takes effect upon
becoming law.