Bill Text: IL SB3131 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that each taxpayer that manufactures renewable diesel in Illinois is eligible for an income tax credit equal to $1 per whole gallon of renewable diesel manufactured by the taxpayer in Illinois and sold to a purchaser in Illinois. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB3131 Detail]
Download: Illinois-2023-SB3131-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||
5 | adding Section 241 as follows:
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6 | (35 ILCS 5/241 new) | |||||||||||||||||||
7 | Sec. 241. Renewable Diesel Tax Credit. | |||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, | |||||||||||||||||||
9 | 2027, each taxpayer that manufactures and sells renewable | |||||||||||||||||||
10 | diesel in Illinois is eligible for a credit against the tax | |||||||||||||||||||
11 | imposed by subsections (a) and (b) of Section 201 as provided | |||||||||||||||||||
12 | in this Section. The credit shall be in an amount equal to $1 | |||||||||||||||||||
13 | per whole gallon of renewable diesel that is both manufactured | |||||||||||||||||||
14 | in Illinois and sold to a purchaser in Illinois. The credit | |||||||||||||||||||
15 | under this Section is not available for the manufacture of | |||||||||||||||||||
16 | partial gallons of renewable diesel. | |||||||||||||||||||
17 | (b) To qualify for the credit, the taxpayer must retain in | |||||||||||||||||||
18 | its books and records: | |||||||||||||||||||
19 | (1) records indicating the number of whole gallons of | |||||||||||||||||||
20 | renewable diesel manufactured by the taxpayer in Illinois | |||||||||||||||||||
21 | and sold to a purchaser in Illinois; and | |||||||||||||||||||
22 | (2) a verification that the renewable diesel | |||||||||||||||||||
23 | manufactured by the taxpayer meets the definition of |
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1 | renewable diesel as defined in this Act. | ||||||
2 | The documentation must include detail sufficient for the | ||||||
3 | Department to determine the number of gallons of renewable | ||||||
4 | diesel manufactured and purchased within Illinois, as well as | ||||||
5 | any other information reasonably required by the Department. | ||||||
6 | All documentation must be submitted to the Department by the | ||||||
7 | date and manner in which the Department requires. | ||||||
8 | (c) If the amount of the credit exceeds the tax liability | ||||||
9 | for the year, the excess may be carried forward and applied to | ||||||
10 | the tax liability of the 10 taxable years following the excess | ||||||
11 | credit year. The credit shall be applied to the earliest year | ||||||
12 | for which there is a tax liability. If there are credits from | ||||||
13 | more than one tax year that are available to offset a | ||||||
14 | liability, the earlier credit shall be applied first. In no | ||||||
15 | event shall a credit under this Section reduce the taxpayer's | ||||||
16 | liability to less than zero. | ||||||
17 | (d) This Section is exempt from the provisions of Section | ||||||
18 | 250. | ||||||
19 | (e) As used in this Section: | ||||||
20 | "Department" means the Department of Revenue. | ||||||
21 | "Renewable diesel" means diesel fuel that is a hydrocarbon | ||||||
22 | fuel derived from biomass meeting the requirements of the | ||||||
23 | latest version of ASTM standards D975 or D396. Fuel that has | ||||||
24 | been co-processed is not considered renewable diesel.
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