86 Ill. Adm. Code 100.2161 — Quantum Computing Campuses Tax Credit (IITA Section 241)

# Quantum Computing Campuses Tax Credit (IITA Section 241)

TITLE 86: REVENUE CHAPTER I: DEPARTMENT OF REVENUE PART 100 INCOME TAX SECTION 100.2161 QUANTUM COMPUTING CAMPUSES TAX CREDIT (IITA SECTION 241)

Section 100.2161 Quantum Computing Campuses Tax Credit (IITA Section 241)

a) For tax years ending on or after June 26, 2024 (the effective date of Public Act 103-0595), each taxpayer who has been awarded a credit by the Department of Commerce and Economic Opportunity (DCEO) is allowed a credit against the taxes imposed under IITA Section 201(a) and (b) in an amount equal to 20% of the wages paid by the taxpayer during the taxable year to a full-time or part-time employee of a construction contractor employed in the construction of an eligible facility located on a quantum computing campus. (IITA Section 241(a))

b) For purposes of this Section, the term "quantum computing campus" shall have the same meaning as when used in Section 605-1115(a) of the Civil Administrative Code of Illinois ((Department of Commerce and Economic Opportunity Law) (DCEO Law)) [20 ILCS 605].

c) An "eligible facility" means a building used primarily to house one or more of the following:

1) A quantum computer operator;

2) A research facility;

3) A data center (as defined in Section 605-1115(a) of the DCEO Law);

4) A manufacturer and assembler of quantum computers and component parts;

5) A cryogenic or refrigeration facility; or 6) Any other facility determined, by industry and academic leaders, to be fundamental to the research and development of quantum computing for practical solutions. (IITA Section 241(e))

d) The amount of the credit shall be determined by DCEO and shall be the amount shown on the tax credit certificate issued by DCEO to the taxpayer.

e) In no event shall a credit under IITA Section 241 reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first. (IITA Section 241(b))

f) Partnerships and Subchapter S Corporations 1) If the taxpayer is a partnership or a Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code, or as otherwise agreed by the partners or shareholders, provided that such agreement shall be executed in writing prior to the due date of the return for the taxable year and meet such other requirements as the Department may establish by rule. Partnership has the meaning prescribed in IITA Section 1501(a)(16). (IITA Section 251)

2) The credit earned by a partnership or a subchapter S corporation will be treated as earned by its owners as of the last day of the taxable year of the partnership or subchapter S corporation in which the tax credit certificate is issued by DCEO under Section 605-1115(c) of the DCEO Law.

3) The credit shall be allowed to each owner in the taxable year of the owner in which the taxable year of the partnership or subchapter S corporation ends and may be carried forward to the 5 succeeding taxable years of the owner until used.

4) Any credit passed through to a partnership or subchapter S corporation under this subsection shall pass through to its partners or shareholders in the same manner as a credit earned by the partnership or subchapter S corporation.

g) To claim the credit, a taxpayer shall attach to its Illinois income tax return for the taxable year: 1) a copy of the tax credit certificate and annual certification (if any) issued by DCEO; and 2) in the case of a partner in a partnership or shareholder of a subchapter S corporation that earned the credit, a Schedule K-1-P or other written statement from the partnership or subchapter S corporation stating: A) the portion of the total credit shown on the tax credit certificate that is allowed to that partner or shareholder; and B) the taxable year of the partnership or subchapter S corporation in which the tax credit certificate was issued. (IITA Section 241(c))

h) The credit may not be transferred or sold.

i) This credit is exempt from the sunset provisions of IITA Section 250. (IITA Section 241(f)) (Source: Added at 49 Ill. Reg. 1861, effective January 31, 2025)

Section 100.2161 Quantum Computing Campuses Tax Credit (IITA Section 241)

a) For tax years ending on or after June 26, 2024 (the effective date of Public Act 103-0595), each taxpayer who has been awarded a credit by the Department of Commerce and Economic Opportunity (DCEO) is allowed a credit against the taxes imposed under IITA Section 201(a) and (b) in an amount equal to 20% of the wages paid by the taxpayer during the taxable year to a full-time or part-time employee of a construction contractor employed in the construction of an eligible facility located on a quantum computing campus. (IITA Section 241(a))

b) For purposes of this Section, the term "quantum computing campus" shall have the same meaning as when used in Section 605-1115(a) of the Civil Administrative Code of Illinois ((Department of Commerce and Economic Opportunity Law) (DCEO Law)) [20 ILCS 605].

c) An "eligible facility" means a building used primarily to house one or more of the following:

1) A quantum computer operator;

2) A research facility;

3) A data center (as defined in Section 605-1115(a) of the DCEO Law);

4) A manufacturer and assembler of quantum computers and component parts;

5) A cryogenic or refrigeration facility; or

6) Any other facility determined, by industry and academic leaders, to be fundamental to the research and development of quantum computing for practical solutions. (IITA Section 241(e))

d) The amount of the credit shall be determined by DCEO and shall be the amount shown on the tax credit certificate issued by DCEO to the taxpayer.

e) In no event shall a credit under IITA Section 241 reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first. (IITA Section 241(b))

f) Partnerships and Subchapter S Corporations

1) If the taxpayer is a partnership or a Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code, or as otherwise agreed by the partners or shareholders, provided that such agreement shall be executed in writing prior to the due date of the return for the taxable year and meet such other requirements as the Department may establish by rule. Partnership has the meaning prescribed in IITA Section 1501(a)(16). (IITA Section 251)

2) The credit earned by a partnership or a subchapter S corporation will be treated as earned by its owners as of the last day of the taxable year of the partnership or subchapter S corporation in which the tax credit certificate is issued by DCEO under Section 605-1115(c) of the DCEO Law.

3) The credit shall be allowed to each owner in the taxable year of the owner in which the taxable year of the partnership or subchapter S corporation ends and may be carried forward to the 5 succeeding taxable years of the owner until used.

4) Any credit passed through to a partnership or subchapter S corporation under this subsection shall pass through to its partners or shareholders in the same manner as a credit earned by the partnership or subchapter S corporation.

g) To claim the credit, a taxpayer shall attach to its Illinois income tax return for the taxable year:

1) a copy of the tax credit certificate and annual certification (if any) issued by DCEO; and

2) in the case of a partner in a partnership or shareholder of a subchapter S corporation that earned the credit, a Schedule K-1-P or other written statement from the partnership or subchapter S corporation stating:

A) the portion of the total credit shown on the tax credit certificate that is allowed to that partner or shareholder; and

B) the taxable year of the partnership or subchapter S corporation in which the tax credit certificate was issued. (IITA Section 241(c))

h) The credit may not be transferred or sold.

i) This credit is exempt from the sunset provisions of IITA Section 250. (IITA Section 241(f))

(Source: Added at 49 Ill. Reg. 1861, effective January 31, 2025)