Bill Text: IL SB0489 | 2009-2010 | 96th General Assembly | Engrossed

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Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed - Dead) 2010-03-23 - Referred to Rules Committee [SB0489 Detail]

Download: Illinois-2009-SB0489-Engrossed.html

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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 219 as follows:
(35 ILCS 5/219 new)
Sec. 219. Venture capital tax credit.
(a) Beginning in taxable year 2010 and through taxable year
2014, each taxpayer who makes an investment in a qualified
venture capital fund in Illinois is entitled to a credit
against the tax imposed under subsections (a) and (b) of
Section 201 of this Act. For the purposes of this Section, a
"qualified venture capital fund" is a fund (i) with its primary
office in Illinois and (ii) that has at least 50% of the total
number of investments in its portfolio in eligible companies
based in Illinois. For the purposes of this Section, an
eligible company is a company that meets one or more of the
following criteria:
(1) the company is located in an enterprise zone, a
River Edge Redevelopment Zone, or a federally designated
Foreign Trade Zone or Sub-Zone;
(2) the company is a minority-owned business or a
female-owned business, as defined in the Business

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Enterprise for Minorities, Females, and Persons with
Disabilities Act;
(3) the company has been in existence for 4 years or
less;
(4) the company is engaged in manufacturing; or
(5) the company's products, services, or operations
encourage the conservation of water, energy, or both.
(b) The credit shall be in the amount of (i) 10% of the
taxpayer's investment if the investment is made in an eligible
company that meets one of the criteria set forth in items (1)
through (5) of subsection (a) and (ii) 20% of the taxpayer's
investment if the investment is made in an eligible company
that meets more than one of the criteria set forth in items (1)
through (5) of subsection (a). The credit shall be taken in the
taxable year in which the qualified venture capital fund makes
the investment in the eligible business.
(c) A credit under this Section shall not reduce that
taxpayer's income tax liability to less than zero. If the
amount of the tax 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 credit must be applied to the earliest year for which
there is a tax liability. If there are credits from more than
one tax year that are available to offset a liability, then the
earlier credit must be applied first.
Section 99. Effective date. This Act takes effect upon

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becoming law.