Bill > SB3539

This bill amends the Illinois Income Tax Act to create a new tax credit for businesses engaged in manufacturing, defined by specific North American Industry Classification System codes (31-33), for taxable years beginning on or after January 1, 2026, and before January 1, 2036. Manufacturers can receive a credit equal to 10% of their qualifying manufacturing capital expenditures, which are investments in property used for manufacturing. However, if these capital investments are made in a rural or economically challenged area, as determined by the Department of Commerce and Economic Opportunity, the credit increases to 15% of the expenditure. There are also limits on the total credit a single taxpayer can receive annually: $10,000,000 for general manufacturing investments and $20,000,000 for investments in rural or economically challenged areas. The bill also specifies that a taxpayer cannot claim this credit for the same capital expenditure under any other law and that the credit cannot reduce the tax liability below zero, nor can it be carried forward or back to other tax years. This new provision takes effect immediately upon becoming law.

Budget and Finance

https://www.ilga.gov/Legislation/BillStatus?DocNum=3539&GAID=18&DocTypeID=SB&SessionID=114&GA=104