Illinois Compiled Statutes (Tax)

35 ILCS 5/252

Advancing Innovative Manufacturing for Illinois Tax Credit

Official textilga.gov

Sec. 252. Advancing Innovative Manufacturing for Illinois Tax Credit.

# (a)

For tax years beginning on or after January 1, 2026, a taxpayer who has entered into an agreement under the Advancing Innovative Manufacturing for Illinois Tax Credit Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act in an amount to be determined in the Agreement. If the taxpayer is a partnership or Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the provisions of Section 251. The Department, in cooperation with the Department of Commerce and Economic Opportunity, shall adopt rules to enforce and administer the provisions of this Section. This Section is exempt from the provisions of Section 250 of this Act.

# (b)

The credit established under this Section is subject to the conditions set forth in the agreement and the following limitations:

# (1)

The amount of the credit shall be as stated in the agreement between the taxpayer and the Department of Commerce and Economic Opportunity. The production of a tax credit certificate shall occur after the project is placed in service and the taxpayer adequately completes all required reporting demonstrating completion of the capital improvement investment as outlined within the program agreement. The credit shall be available only in the taxable year in which the project is placed in service. Except as applied in a carryover year pursuant to paragraph (2), the credit may not be applied against any State income tax liability in more than 10 taxable years.

# (2)

The credit shall be claimed for the taxable year in which the tax credit award certificate is issued, and the certificate shall be attached to the return. The credit may not exceed the amount of the taxpayer's liability under subsections (a) and (b) of Section 201 of this Act. Any credit that is unused in the year the credit is computed may be carried forward and applied to the tax liability for 10 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a tax liability.

# (3)

No credit shall be allowed with respect to any agreement for any taxable year ending after the noncompliance date. Upon receiving notification by the Department of Commerce and Economic Opportunity of the noncompliance of a taxpayer with an agreement, the Department shall notify the taxpayer that no credit is allowed with respect to that agreement for any taxable year ending after the noncompliance date, as stated in the notification. If any credit has been allowed with respect to an agreement for a taxable year ending after the noncompliance date for that agreement, any refund paid to the taxpayer for that taxable year shall, to the extent of that credit allowed, be an erroneous refund within the meaning of Section 912 of this Act.

# (4)

If the credit awarded under this Section is required to be recaptured under the provisions of Section 77-40 of the Advancing Innovative Manufacturing for Illinois Tax Credit Act, the tax imposed under subsections (a) and (b) of Section 201 shall be increased by the amount of the recapture for the taxable year in which recapture is made. (Source: P.A. 104-6, eff. 6-16-25.)

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