IL HB3277

Allows qualified taxpayers undertaking eligible brownfield remediation projects to apply for an income tax credit with the Department of Commerce and Economic Opportunity, effective for taxable years beginning January 1, 2013.

Tax credit cannot exceed 100% of eligible project costs and is distributed as 75% initially upon application approval, with remaining 25% awarded upon receipt of "No Further Remediation" determination from Illinois EPA or certified closure reports for asbestos and lead abatement.

Eligible projects include remodeling, rehabilitation, modernization, or remediation of abandoned or underutilized contaminated property; projects must be approved by municipality and county and must create at least 10 new jobs, retain 25 jobs, or a combination thereof.

Qualified taxpayers must own the site, be current on all state taxes with no criminal record, and must not be responsible for the contamination; credits may be sold, transferred, or assigned to other taxpayers or nonprofits multiple times and are not subject to recapture.

Annual credit awards are capped at $50,000,000 per fiscal year, with unused portions rolling over to the next year; excess credits can be carried forward up to 5 taxable years and cannot reduce tax liability below zero.