HB5459 Summary

• Amends the Economic Development for a Growing Economy Tax Credit Act to allow steel product manufacturers to elect claiming the credit against withholding tax liability instead of income tax liability.

• Establishes eligibility criteria for steel manufacturers including: primary engagement in steel product manufacturing from purchased steel, agreement execution between January 1, 2011 and June 30, 2011, creation of at least 100 full-time jobs in Illinois, and capital investment of at least $9,000,000.

• Requires eligible steel manufacturers to relocate their North American corporate headquarters to Illinois from another state in accordance with the credit agreement.

• Makes the withholding tax election irrevocable once made and prevents further amendments to the agreement between the taxpayer and Department after the election date.

• Allows the credit to be claimed against withholding payments under Section 704A of the Illinois Income Tax Act beginning in the first calendar year after the taxable year in which the credit is awarded.