Vote Smart's Synopsis:

Vote to pass a bill that authorizes municipalities to establish an economic development project area and establishes certain tax deductions and tax credits.

Highlights:

• Authorizes a municipality to establish an economic development project area (Sec. 4).

• Requires developers in the economic development project area to maintain at least 4,250 full-time equivalent jobs and ensure that at least $100 million in private investments occur in the economic development project area (Sec. 4).

• Increases the percentage of the federal Earned Income Tax Credit that may be claimed as a credit against state income taxes as follows (Sec. 212):
  
  • From 5 percent to 7.5 percent of the federal Earned Income Tax Credit for each taxable year beginning on or after January 1, 2012; and
  • From 7.5 percent to 10 percent of the federal Earned Income Tax Credit for each taxable year beginning on or after January 1, 2013.

• Increases the basic amount used to calculate the standard exemption for individual taxpayers as follows (Sec. 204):
  
  • From $1,650 to $2,000 for taxable years ending on or before December 31, 2012;
  • From $2,000 to $2,050 for taxable years ending after December 31, 2012 but before December 31, 2013; and
  • From $2,050 to $2,050 plus a cost-of-living adjustment for taxable years ending after December 31, 2013.

• Authorizes businesses in Illinois to claim a deduction of no more than $100,000 for business losses for all taxable years ending on or after December 31, 2012 but before December 31, 2014 (Sec. 207).

• Extends the research and development credit for taxpayers from January 1, 2011 to January 1, 2016 (Sec. 201).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes municipalities to establish an economic development project area and establishes certain tax deductions and tax credits.

Highlights:

• Authorizes a municipality to establish an economic development project area (Sec. 4).

• Requires developers in the economic development project area to maintain at least 4,250 full-time equivalent jobs and ensure that at least $100 million in private investments occur in the economic development project area (Sec. 4).

• Increases the percentage of the federal Earned Income Tax Credit that may be claimed as a credit against state income taxes as follows (Sec. 212):
  
  • From 5 percent to 7.5 percent of the federal Earned Income Tax Credit for each taxable year beginning on or after January 1, 2012; and
  • From 7.5 percent to 10 percent of the federal Earned Income Tax Credit for each taxable year beginning on or after January 1, 2013.

• Increases the basic amount used to calculate the standard exemption for individual taxpayers as follows (Sec. 204):
  
  • From $1,650 to $2,000 for taxable years ending on or before December 31, 2012;
  • From $2,000 to $2,050 for taxable years ending after December 31, 2012 but before December 31, 2013; and
  • From $2,050 to $2,050 plus a cost-of-living adjustment for taxable years ending after December 31, 2013.

• Authorizes businesses in Illinois to claim a deduction of no more than $100,000 for business losses for all taxable years ending on or after December 31, 2012 but before December 31, 2014 (Sec. 207).

• Extends the research and development credit for taxpayers from January 1, 2011 to January 1, 2016 (Sec. 201).

Full Bill Text