HB1525 Summary

• Amends the Economic Development for a Growing Economy Tax Credit Act to allow taxpayers in specified manufacturing and water treatment industries to claim tax credits against employee withholding obligations under Section 704A of the Illinois Income Tax Act for taxable years ending on or after December 31, 2009.

• Establishes three eligibility pathways for the withholding credit election: (A) taxpayers with an Illinois net loss, at least 1,000 full-time employees, and an existing agreement as of December 14, 2009; (B) taxpayers with an Illinois net loss and 1,000 employees who applied within 365 days of December 14, 2009; and (C) taxpayers with a net operating loss carryforward from 2008 who create 400 new jobs, retain 2,000 jobs, and invest at least $75,000,000.

• Adds a fourth eligibility pathway (D) for taxpayers with a net operating loss carryforward from 2009 who create at least 150 new jobs, retain 1,000 jobs, and make a capital investment of at least $57,000,000 within 150 days of the act's effective date.

• Requires that the withholding credit election be made in the form prescribed by the Illinois Department of Revenue and be irrevocable once made.

• Permits pass-through entities and their shareholders or partners to treat awarded credits as tax payments under the Illinois Income Tax Act, with the total credit not exceeding the entity's or shareholders'/partners' Illinois income tax liability for the taxable year.