Bill > HB3621

This bill amends the Illinois Income Tax Act to create a new tax credit for investments in Qualified Opportunity Funds (QOFs), which are investment vehicles designed to spur economic development in designated low-income communities. Specifically, the bill allows taxpayers (including corporations, partnerships, limited liability companies, and individuals) to claim a credit equal to their investment in a QOF, up to $10,000 per taxpayer per year. The credit can be used against Illinois income tax and can be carried forward for up to 5 years or carried back for up to 3 years if the credit exceeds the taxpayer's current tax liability. Importantly, no credits can be claimed for taxable years before January 1, 2025, and the credit is transferable within one year of being awarded. The credit will be administered by the Department of Commerce and Economic Opportunity, and it is exempt from the state's standard automatic sunset provision. The bill aims to incentivize investment in economically distressed areas by providing a state-level tax benefit that complements federal Opportunity Zone investment incentives.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3621&GAID=18&DocTypeID=HB&SessionID=114&GA=104