98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3329
 
Introduced , by Rep. Wayne Rosenthal
 
SYNOPSIS AS INTRODUCED:



35 ILCS 5/224 new

 Amends the Illinois Income Tax Act. Creates an agriculture credit in an amount equal to 1.5% (for taxable years beginning on or after January 1, 2014 and prior to January 1, 2016) or 2.25% (for taxable years beginning on or after January 1, 2016) of the taxpayer's eligible qualified production activities income for the taxable year.



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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


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1 AN ACT concerning revenue.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Income Tax Act is amended by adding 
5Section 224 as follows:

6 (35 ILCS 5/224 new)
7 Sec. 224. Agriculture credit. 
8 (a) Each taxpayer who owns or rents and uses real property 
9for agricultural purposes is entitled to a credit against the 
10tax imposed by subsections (a) and (b) of Section 201 as 
11provided in this Section. For taxable years beginning on or 
12after January 1, 2014 and prior to January 1, 2016, the credit 
13shall be 1.5% of the taxpayer's eligible qualified production 
14activities income for the taxable year. For taxable years 
15beginning on or after January 1, 2016, the credit shall be 
162.25% of the taxpayer's eligible qualified production 
17activities income for the taxable year.
18 (b) As used in this Section:
19 "Direct costs" includes all of the taxpayer's ordinary and 
20necessary expenses paid or incurred during the taxable year in 
21carrying on the trade or business that are deductible under 
22Section 162 of the Internal Revenue Code and identified as 
23direct costs in the taxpayer's managerial or cost accounting 
 
 
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1records. 
2 "Indirect costs" includes all of the taxpayer's ordinary 
3and necessary expenses paid or incurred during the taxable year 
4in carrying on the trade or business that are deductible under 
5Section 162 of the Internal Revenue Code, other than the cost 
6of goods sold and direct costs, and identified as indirect 
7costs in the taxpayer's managerial or cost accounting records. 
8 "Production gross receipts" means gross receipts from the 
9lease, rental, license, sale, exchange, or other disposition of 
10qualified production property. 
11 "Production gross receipts factor" means a fraction, the 
12numerator of which is production gross receipts and the 
13denominator of which is the taxpayer's base income, as defined 
14under Section 203 of this Act. 
15 "Qualified production activities income" means the amount 
16of the taxpayer's production gross receipts for the taxable 
17year that exceeds the sum of the cost of goods sold that are 
18allocable to such receipts, the direct costs that are allocable 
19to such receipts, and the indirect costs multiplied by the 
20production gross receipts factor. "Qualified production 
21activities income" does not include any of the following: 
22  (1) Income from film production. 
23  (2) Income from producing, transmitting, or 
24 distributing electricity, natural gas, or potable water. 
25  (3) Income from constructing real property. 
26  (4) Income from engineering or architectural services 
 
 
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1 performed with respect to constructing real property. 
2  (5) Income from the sale of food and beverages prepared 
3 by the taxpayer at a retail establishment. 
4  (6) Income from the lease, rental, license, sale, 
5 exchange, or other disposition of land. 
6 "Qualified production property" means tangible personal 
7property produced, grown, or extracted in whole or in part by 
8the taxpayer on or from agricultural property. 
9 (c) This Section is exempt from the provisions of Section 
10250.