summary
Introduced
02/06/2025
02/06/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of the manufacturing capital expenditures. Provides that the total amount of credits awarded under those provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount of the credit shall be $20,000,000. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to create a tax credit for manufacturing businesses that make capital expenditures. Specifically, manufacturers (those classified under North American Industry Classification System codes 31-33) can receive a tax credit equal to 10% of their manufacturing-related capital expenditures for taxable years between January 1, 2025, and January 1, 2036. If these capital investments are made in rural or economically challenged areas (as determined by the Department of Commerce and Economic Opportunity), the credit increases to 15%. The total credit is capped at $10,000,000 per taxpayer per year, or $20,000,000 for investments in rural or economically challenged areas. Importantly, taxpayers cannot claim this credit for capital expenditures already claimed under another provision of law, the credit cannot reduce tax liability below zero, and it cannot be carried forward or backward. The bill aims to incentivize manufacturing investment in Illinois, particularly in areas that may need economic development.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3236&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3236.htm |
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