IL SB3562

Creates a tax credit for Illinois taxpayers based on qualified production activities income, effective for taxable years ending December 31, 2013 and later.

Credit rates increase over time: 2% for tax years ending 2013-2014, 4% for tax years ending 2014-2015, and 6.2% for tax years ending 2015 and thereafter.

Excess credits that exceed tax liability in a given year may be carried forward and applied to tax liability in the next 15 taxable years, with earlier credits applied first.

"Qualified production activities income" is defined by reference to Section 199 of the federal Internal Revenue Code.

Takes effect immediately upon becoming law.