ADMINISTRATIVE CODE
TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 565 ADVANCING INNOVATIVE MANUFACTURING (AIM) FOR ILLINOIS TAX CREDIT PROGRAM
SECTION 565.70 DETERMINATION OF AMOUNT AND TERM OF THE CREDIT

 

Section 565.70  Determination of Amount and Term of the Credit

 

a)         A taxpayer is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act for taxable years beginning on or after January 1, 2026.  The Department may award credits under the Act on and after January 1, 2027. [35 ILCS 65/77-25(a)]

 

b)         The credit amount shall be determined based on the total amount of the capital improvement investment made by the taxpayer:

 

1)         A capital improvement investment of $10,000,000 or more but less than $50,000,000 shall result in a maximum credit of 3% of the capital improvement amount;

 

2)         A capital improvement investment of $50,000,000 or more but less than $100,000,000 shall result in a maximum credit of 5% of the capital improvement amount;

 

3)         A capital improvement investment of $100,000,000 or more shall result in a maximum credit of 7% of the capital improvement amount.

 

c)         Projects may be granted tax credit awards that reflect investments made within a maximum 5-year period. [35 ILCS 65/77-25(e)]

 

d)         Credits awarded under the Act shall not reduce a taxpayer's liability for the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act to less than zero. [35 ILCS 65/77-25(b)]

 

e)         Unused credit may be carried forward for a maximum of 10 years for use in future taxable years.  [35 ILCS 65/77-25(b)]

 

f)         Any taxpayer qualifying for credits under the Act shall not be eligible for the credits under subsections (e), (f), or (h) of Section 201 of the Illinois Income Tax Act for the same expenditures for the same taxable period. [35 ILCS 65/77-25(b)]

 

g)         The Department shall certify to the Department of Revenue:

 

1)         the identity of taxpayers that are eligible to receive tax credits under the Act; and

 

2)         the amount of the credits awarded in each calendar year. 

 

h)         Credits so earned and certified by the Department may be applied against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act for taxable years beginning on or after January 1, 2026. [35 ILCS 65/77-25(c)]