Signed by Governor Pat Quinn

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that amends the corporate tax code.

Highlights:

• Authorizes any taxpayer that meets the following criteria to claim tax credits awarded under the Economic Development for a Growing Economy Tax Credit Act (Sec. 15):
  
  • The taxpayer is primarily engaged in the operation of a discount department store;
  • The taxpayer maintains its corporate headquarters in Illinois;
  • The taxpayer employs a minimum of 4,250 full-time employees at its corporate headquarters in Illinois;
  • The taxpayer retains at least 4,250 full-time jobs in Illinois that would have been at risk of being relocated outside of Illinois;
  • The taxpayer had a minimum of $40 billion in total revenue in 2010; and
  • The taxpayer makes a capital investment of at least $300 million at the economic development project location.

• Authorizes any taxpayer that meets the following criteria to claim tax credits awarded under the Economic Development for a Growing Economy Tax Credit Act for economic development agreements executed after July 1, 2011 but before March 31, 2013 (Sec. 15):
• The taxpayer is primarily engaged in the manufacture of original and aftermarket filtration parts and products for motor vehicles;
• The taxpayer employs a minimum of 1,000 full-time employees in Illinois;
• The taxpayer creates at least 250 full-time jobs in Illinois;
• The taxpayer relocates its corporate headquarters to Illinois from another state; and
• The taxpayer makes a capital investment of at least $4 million at the economic development project location.

• Establishes tax credits for live theater productions as follows (Sec. 10):
• A credit equal to 20 percent of Illinois labor expenditures for each tax year;
• A credit equal to 20 percent of Illinois production spending for each tax year; and
• A credit equal to 15 percent of Illinois labor expenditures generated by the employment of Illinois residents in areas of high poverty or high unemployment for each tax year.

• Limits tax credits for live theater productions to no more than $2 million per year, and prohibits the amount of the credit from exceeding the production’s total tax burden (Sec. 10).

• Increases the required number of jobs that an economic development project in an economic development project area must retain from 2,000 full-time jobs to 4,250 full-time jobs (Sec. 15).

• Authorizes businesses to claim up to $100,000 in business losses on their tax returns, effective December 31, 2012 until December 31, 2014 (Sec. 15).

• Extends the expiration date for the tax exemption for sales of majority blended ethanol fuel from December 31, 2013 to December 31, 2018 (Sec. 14).

• Extends the expiration date for the tax credit of 6.5 percent of qualifying expenditures for research and development activities from January 1, 2011 to January 1, 2016 (Sec. 15)

• Specifies that receipts from federally regulated financial exchanges shall be divided into receipts from exchanges executed on a physical trading floor located in Illinois, and receipts attributable to all other transactions, whereas existing law did not make such a distinction (Sec. 15).

• Specifies the percentage of receipts from federally regulated financial exchanges not executed on a physical trading floor that are subject to state taxes as follows (Sec. 15):
• 63.77 percent of receipts for taxable years ending on or after December 31, 2012 but before December 31, 2013; and
• 27.54 percent of receipts for taxable years ending on or after December 31, 2013.

• Increases the exclusion amount for the estate tax credit from $2 million for persons dying prior to January 1, 2012 to the following amounts (Sec. 15):
• $3.5 million for persons dying on or after January 1, 2012 and prior to January 1, 2013; and
• $4 million for persons dying on or after January 1, 2013.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the corporate tax code.

Highlights:

• Authorizes any taxpayer that meets the following criteria to claim tax credits awarded under the Economic Development for a Growing Economy Tax Credit Act (Sec. 15):
  
  • The taxpayer is primarily engaged in the operation of a discount department store;
  • The taxpayer maintains its corporate headquarters in Illinois;
  • The taxpayer employs a minimum of 4,250 full-time employees at its corporate headquarters in Illinois;
  • The taxpayer retains at least 4,250 full-time jobs in Illinois that would have been at risk of being relocated outside of Illinois;
  • The taxpayer had a minimum of $40 billion in total revenue in 2010; and
  • The taxpayer makes a capital investment of at least $300 million at the economic development project location.

• Authorizes any taxpayer that meets the following criteria to claim tax credits awarded under the Economic Development for a Growing Economy Tax Credit Act for economic development agreements executed after July 1, 2011 but before March 31, 2013 (Sec. 15):
• The taxpayer is primarily engaged in the manufacture of original and aftermarket filtration parts and products for motor vehicles;
• The taxpayer employs a minimum of 1,000 full-time employees in Illinois;
• The taxpayer creates at least 250 full-time jobs in Illinois;
• The taxpayer relocates its corporate headquarters to Illinois from another state; and
• The taxpayer makes a capital investment of at least $4 million at the economic development project location.

• Establishes tax credits for live theater productions as follows (Sec. 10):
• A credit equal to 20 percent of Illinois labor expenditures for each tax year;
• A credit equal to 20 percent of Illinois production spending for each tax year; and
• A credit equal to 15 percent of Illinois labor expenditures generated by the employment of Illinois residents in areas of high poverty or high unemployment for each tax year.

• Limits tax credits for live theater productions to no more than $2 million per year, and prohibits the amount of the credit from exceeding the production’s total tax burden (Sec. 10).

• Increases the required number of jobs that an economic development project in an economic development project area must retain from 2,000 full-time jobs to 4,250 full-time jobs (Sec. 15).

• Authorizes businesses to claim up to $100,000 in business losses on their tax returns, effective December 31, 2012 until December 31, 2014 (Sec. 15).

• Extends the expiration date for the tax exemption for sales of majority blended ethanol fuel from December 31, 2013 to December 31, 2018 (Sec. 14).

• Extends the expiration date for the tax credit of 6.5 percent of qualifying expenditures for research and development activities from January 1, 2011 to January 1, 2016 (Sec. 15)

• Specifies that receipts from federally regulated financial exchanges shall be divided into receipts from exchanges executed on a physical trading floor located in Illinois, and receipts attributable to all other transactions, whereas existing law did not make such a distinction (Sec. 15).

• Specifies the percentage of receipts from federally regulated financial exchanges not executed on a physical trading floor that are subject to state taxes as follows (Sec. 15):
• 63.77 percent of receipts for taxable years ending on or after December 31, 2012 but before December 31, 2013; and
• 27.54 percent of receipts for taxable years ending on or after December 31, 2013.

• Increases the exclusion amount for the estate tax credit from $2 million for persons dying prior to January 1, 2012 to the following amounts (Sec. 15):
• $3.5 million for persons dying on or after January 1, 2012 and prior to January 1, 2013; and
• $4 million for persons dying on or after January 1, 2013.

Full Bill Text