Bill > HB3419

This bill amends the Illinois Income Tax Act to create a tax credit for manufacturers of renewable diesel in Illinois used by rail carriers. Starting in 2027, taxpayers who produce renewable diesel within the state specifically for rail carrier use can claim a $1 credit per gallon manufactured. To qualify, manufacturers must maintain detailed records documenting the number of gallons produced and provide verification that the diesel meets specific technical standards (ASTM D975 or D396). If the credit amount exceeds the taxpayer's tax liability in a given year, they can carry forward the excess credit for up to 10 subsequent years. The bill defines "renewable diesel" as a hydrocarbon fuel derived from biomass and "rail carrier" as Class I, II, or III railroads as defined by federal transportation regulations. The credit is designed to incentivize local renewable diesel production for the railroad industry, with strict documentation requirements to ensure compliance and proper accounting of the credits.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3419&GAID=18&DocTypeID=HB&SessionID=114&GA=104