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    AN ACT concerning revenue.

 
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    Be it enacted by the People of the State of Illinois, 
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represented in the General Assembly: 



 
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    Section 5. The Economic Development for a Growing Economy 
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Tax Credit Act is amended  by changing Section 5-15 as follows:
 
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    (35 ILCS 10/5-15)
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    Sec. 5-15. Tax Credit Awards. Subject to the conditions set 
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forth in this
Act, a Taxpayer is
entitled to a Credit against 
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or, as described in subsection (g) (f) of this Section, a 
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payment towards taxes imposed pursuant to subsections (a) and 
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(b)
of Section 201 of the Illinois
Income Tax Act that may be 
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imposed on the Taxpayer for a taxable year beginning
on or

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after January 1, 1999,
if the Taxpayer is awarded a Credit by 
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the Department under this Act for that
taxable year.
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    (a) The Department shall make Credit awards under this Act 
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to foster job
creation and retention in Illinois.
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    (b) A person that proposes a project to create new jobs in 
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Illinois must
enter into an Agreement with the
Department for 
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the Credit under this Act.
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    (c) The Credit shall be claimed for the taxable years 
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specified in the
Agreement.
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    (d) The Credit shall not exceed the Incremental Income Tax 
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attributable to
the project that is the subject of the 
 


 






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Agreement.
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    (e) Nothing herein shall prohibit a Tax Credit Award to an 
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Applicant that uses a PEO if all other award criteria are 
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satisfied.

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    (f) In lieu of the Credit allowed under this Act against 
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the taxes imposed pursuant to subsections (a) and (b) of 
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Section 201 of the Illinois Income Tax Act for any taxable year 
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ending on or after December 31, 2009, the Taxpayer may elect to 
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claim the Credit against its obligation to pay over withholding 
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under Section 704A of the Illinois Income Tax Act. 
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        (1) The election under this subsection (f) may be made 
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    only by a Taxpayer that (i) is primarily engaged in one of 
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    the following business activities: motor vehicle metal 
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    stamping, automobile manufacturing, automobile and light 
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    duty motor vehicle manufacturing, motor vehicle 
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    manufacturing, light truck and utility vehicle 
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    manufacturing, or motor vehicle body manufacturing and 
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    (ii) meets the following criteria: 
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            (A) the Taxpayer (i) had an Illinois net loss or an 
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        Illinois net loss deduction under Section 207 of the 
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        Illinois Income Tax Act for the taxable year in which 
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        the Credit is awarded, (ii) employed a minimum of 1,000 
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        full-time employees in this State during the taxable 
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        year in which the Credit is awarded, (iii) has an 
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        Agreement under this Act on the effective date of this 
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        amendatory Act of the 96th General Assembly, and (iii) 
 


 






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        (iv) is in compliance with all provisions of that 
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        Agreement; or 
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            (B) the Taxpayer (i) had an Illinois net loss or an 
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        Illinois net loss deduction under Section 207 of the 
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        Illinois Income Tax Act for the taxable year in which 
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        the Credit is awarded and (ii) , (ii) employed a 
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        minimum of 1,000 full-time employees in this State 
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        during the taxable year in which the Credit is awarded,  
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        and (iii) has applied for an Agreement by July 1, 2010 
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        or within 30 days after the effective date of this 
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        amendatory Act of the 96th General Assembly, whichever 
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        is later within 180 days after the effective date of 
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        this amendatory Act of the 96th General Assembly. 
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        (2) An election under this subsection shall allow the 
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    credit to be taken against payments otherwise due under 
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    Section 704A of the Illinois Income Tax Act during the 
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    first calendar year beginning after the end of the taxable 
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    year in which the credit is awarded under this Act. 
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        (3) The election shall be made in the form and manner 
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    required by the Illinois Department of Revenue and, once 
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    made, shall be irrevocable. 
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        (4)  If a Taxpayer who meets the requirements of 
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    subparagraph (A) of paragraph (1) of this subsection (f) 
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    elects to claim the Credit against its withholdings as 
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    provided in this subsection (f), then, on and after the 
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    date of the election, the terms of the Agreement between 
 


 






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    the Taxpayer and the Department may not be further amended 
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    during the term of the Agreement. 
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    (g) (f)  A pass-through entity that has been awarded a 
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credit under this Act, its shareholders, or its partners may 
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treat some or all of the credit awarded pursuant to this Act as 
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a tax payment for purposes of the Illinois Income Tax Act. The 
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term "tax payment" means a payment as described in Article 6 or 
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Article 8 of the Illinois Income Tax Act or a composite payment 
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made by a pass-through entity on behalf of any of its 
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shareholders or partners to satisfy such shareholders' or 
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partners' taxes imposed pursuant to subsections (a) and (b) of 
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Section 201 of the Illinois Income Tax Act. In no event shall 
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the amount of the award credited pursuant to this Act exceed 
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the Illinois income tax liability of the pass-through entity or 
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its shareholders or partners for the taxable year. 
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(Source: P.A. 95-375, eff. 8-23-07; 96-834, eff. 12-14-09; 
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96-836, eff. 12-16-09; revised 12-21-09.)

 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.