Bill Text: IL SB2883 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for qualified businesses that install solar canopies or permeable surfaces in their parking areas during the taxable year. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB2883 Detail]

Download: Illinois-2023-SB2883-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2883 Introduced 1/24/2024, by Sen. Julie A. Morrison SYNOPSIS AS INTRODUCED:
35 ILCS 5/241 new
Amends the Illinois Income Tax Act. Creates an income tax credit for qualified businesses that install solar canopies or permeable surfaces in their parking areas during the taxable year. Effective immediately.
LRB103 38023 HLH 68155 b
A BILL FOR
SB2883 LRB103 38023 HLH 68155 b
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. Green parking tax credit.
(a) For taxable years beginning on or after January 1,
2024 and beginning before January 1, 2029, each taxpayer that
is a qualified business and that installs (i) solar canopies
or (ii) a permeable surface of more than 100 square feet in its
parking areas during the taxable year may apply to the
Department for a credit against the taxes imposed by
subsections (a) and (b) of Section 201 as provided in this
Section. Only one credit may be awarded for any single
contiguous parking area in any taxable year. If the taxpayer
installs a permeable surface parking area, the amount of the
credit shall be $10 per square foot of parking surface area but
not to exceed $10,000 per taxpayer in any one taxable year. If
the taxpayer installs solar canopies in a parking area, the
amount of the credit shall be $10 per kilowatt hour of energy
produced by the solar canopies during the taxable year but not
to exceed $10,000 per taxpayer in any one taxable year. The

SB2883 - 2 - LRB103 38023 HLH 68155 b
total amount of credits that may be awarded by the Department
in any given taxable year shall not exceed $10,000,000.
(b) In no event shall a credit under this Section reduce
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) Credits awarded under this Section to a partner or to a
shareholder of a subchapter S corporation shall be calculated
as provided in Section 251.
(d) In order to qualify for a tax credit award under this
Act, the taxpayer must file an application, on forms
prescribed by the Department, for each contiguous parking area
for which the taxpayer seeks a tax credit under this Act. The
application must provide information necessary to calculate
the tax credit award and any additional information as
reasonably required by the Department.
(e) Upon satisfactory review of the application, the
Department shall issue a tax credit award certificate to the
applicant stating the amount of the tax credit award to which
the applicant is entitled for that tax year. The certificate
must accompany the taxpayer's tax return for which the tax

SB2883 - 3 - LRB103 38023 HLH 68155 b
credit is awarded in the manner required by the Department.
(f) As used in this Section,
"Apartment complex" means premises that consist of (i) at
least one building that contains one or more residential
apartments and (ii) an area that is connected to or is
contiguous to the apartments and is used by occupants of the
apartments or their guests as a means of access to and egress
from the apartments or for the parking of motor vehicles of the
occupants or their guests.
"Condominium complex" means the units, common elements,
and limited common elements that are located on the parcel, as
those terms are defined in Section 2 of the Condominium
Property Act.
"Commercial or industrial facility" means premises
containing at least one commercial or industrial facility in
connection with which there is provided, on privately owned
property near or contiguous to the premises, one or more areas
of land that are used by the public as a means of access to and
egress from the commercial or industrial facility and for the
parking of motor vehicles of customers, patrons, and employees
of the commercial or industrial facility.
"Parking area" means an one or more areas of land near or
contiguous to a school, church, or hospital building; shopping
center; apartment complex; or condominium complex. "Parking
area" does not include public highways or alleys used by the
public as the means of access to and egress from those

SB2883 - 4 - LRB103 38023 HLH 68155 b
buildings and for the parking of motor vehicles.
"Qualified business" means a corporation, partnership,
sole proprietorship, or limited liability company that owns or
operates a commercial or industrial facility, including, but
not limited to, a shopping center, hospital, church, or
school, that has parking areas with more than 200 parking
spaces. "Qualified business" also includes a corporation,
partnership, sole proprietorship, or limited liability company
that owns or operates multifamily housing, including, but not
limited to, an apartment complex or condominium complex, that
includes a parking area with over 50 parking spaces.
"Shopping center" means premises having one or more stores
or business establishments in connection with which there is a
parking area.
"Solar canopy" means a ground-mounted or roof-mounted
steel structure topped with solar panels that are able to
produce over 10 kilowatt hours of energy per day on average.