Bill > SB1620

This bill amends the Illinois Income Tax Act by creating a new tax credit for manufacturers to encourage capital investments in manufacturing equipment and facilities. The credit is available for taxable years between 2025 and 2036 and applies to businesses classified under North American Industry Classification System (NAICS) codes 31-33, which cover manufacturing industries. Manufacturers can claim a tax credit equal to 10% of their capital expenditures related to manufacturing, with a maximum credit of $10,000,000 per taxable year. However, if the capital investment is made in a rural or economically challenged area (as determined by the Department of Commerce and Economic Opportunity), the credit increases to 15% of capital expenditures, with a higher maximum credit of $20,000,000. Importantly, taxpayers cannot claim this credit for the same capital expenditure under any other law, the credit cannot reduce tax liability below zero, and it cannot be carried forward or backward to other tax years. The bill aims to incentivize manufacturing investments and support economic development, particularly in rural and economically disadvantaged regions of Illinois.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1620&GAID=18&DocTypeID=SB&SessionID=114&GA=104