Bill Text: IL SB0141 | 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 make an investment in depreciable property used primarily to collect or process reclaimable material or to manufacture products from reclaimed material. Sets forth the amount of the credit. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-03-10 - Rule 3-9(a) / Re-referred to Assignments [SB0141 Detail]

Download: Illinois-2023-SB0141-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0141 Introduced 1/24/2023, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who make an investment in depreciable property used primarily to collect or process reclaimable material or to manufacture products from reclaimed material. Sets forth the amount of the credit. 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 234 as follows:
(35 ILCS 5/234 new)
Sec. 234. Reclaimable material.
(a) For taxable years beginning on or after January 1,
2024, a taxpayer who makes an investment in depreciable
property used primarily to collect or process reclaimable
material or to manufacture products from reclaimed material is
entitled to a credit against the taxes imposed by subsections
(a) and (b) of Section 201 as provided in this Section. The
amount of the credit shall be as follows:
(1) 25% of the cost of the property on the first
$250,000 invested;
(2) 15% of the cost of the property on the next
$250,000 invested; and
(3) 5% of the cost of the property on the next $500,000
invested.
A credit may not be claimed for investments in depreciable
property in excess of $1,000,000.
(b) In no event shall a credit under this Section reduce

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the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of 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 a liability, the earlier credit
shall be applied first.
(c) If the taxpayer is a partnership, a Subchapter S
corporation, or a limited liability company that has elected
partnership tax treatment, the credit shall be allowed to the
partners, shareholders, or members in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and subchapter S of the Internal Revenue
Code, as applicable.
(d) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.