Bill Text: IL HB5668 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who open and operate a supermarket or grocery store in a food desert community designated by the Department of Commerce and Economic Opportunity. Provides that the credit shall be in an amount equal to the total amount the taxpayer is assessed in property taxes for the location at which the supermarket or grocery store is located during the full taxable year that the supermarket or grocery store is open for business to the public. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB5668 Detail]

Download: Illinois-2023-HB5668-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5668 Introduced , by Rep. Kevin Schmidt SYNOPSIS AS INTRODUCED:
35 ILCS 5/241 new
Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who open and operate a supermarket or grocery store in a food desert community designated by the Department of Commerce and Economic Opportunity. Provides that the credit shall be in an amount equal to the total amount the taxpayer is assessed in property taxes for the location at which the supermarket or grocery store is located during the full taxable year that the supermarket or grocery store is open for business to the public. Effective immediately.
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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 241 as follows:
(35 ILCS 5/241 new)
Sec. 241. Food desert elimination credit.
(a) By July 1, 2024, the Department of Commerce and
Economic Opportunity shall designate not more than 75 separate
geographic areas throughout the State as food desert
communities. The Department of Commerce and Economic
Opportunity shall develop criteria for the designation of food
desert communities, but each separate food desert community
shall consist of a distinct geographic area with a single
defined border. The criteria shall, at a minimum, incorporate
analysis of the following:
(1) municipal or census tract population size and
population density;
(2) municipal or census tract poverty statistics;
(3) food desert information from the United States
Department of Agriculture's Economic Research Service; and
(4) healthier food retail tract information from the
federal Centers for Disease Control and Prevention.

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(b) For taxable years beginning on and after January 1,
2025 and beginning prior to January 1, 2029, the first
taxpayer to open and operate a supermarket or grocery store in
a food desert community on or after the date the food desert
community is established under subsection (a) is entitled to a
credit against the taxes imposed by subsections (a) and (b) of
Section 201 in an amount equal to the total amount the taxpayer
is assessed in property taxes for the location at which the
supermarket or grocery store is located during the full
taxable year that the supermarket or grocery store is open for
business to the public.
(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) For partners and shareholders of Subchapter S
corporations, there shall be allowed a credit under this
Section to be determined in accordance with Section 251.
(e) As used in this Section:
"Food desert community" means a physically contiguous area
in the State in which residents have limited access to

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nutritious foods, such as fresh fruits and vegetables, through
supermarkets and grocery stores.
"Supermarket or grocery store" means a retail facility of
at least 18,000 square feet, of which at least 90% is occupied
by a full-service supermarket or grocery store.