SB3967 Summary

• Creates a new "Growing and Reinvesting in our Workforce Tax Credit" allowing taxpayers a 2% credit on the basis of qualified property (tangible depreciable property) placed in service during the taxable year in manufacturing, mining, or retail operations.

• Provides an additional 2% credit if the taxpayer's base employment in Illinois increases by 1% or more over the preceding year, with the additional credit proportionally reduced if employment growth is less than 1% but greater than 0%.

• Requires qualified property to be placed in service on or after January 1, 2011, and limits the credit basis to costs incurred by December 31, 2013 (unless extended by law), with an exception for binding contracts entered into by that date.

• Imposes a 48-month recapture rule: if qualified property ceases to be qualified or is moved outside Illinois within 48 months after being placed in service, the taxpayer must add back the previously claimed credit to their base income.

• Allows unused credits to be carried forward for up to 5 years, and permits partnerships to pass through credits to partners; disqualifies taxpayers who received an Economic Development for a Growing Economy Tax Credit within the prior 10 years.