IL SB3300

Creates a tax credit for Illinois taxpayers based on qualified production activities income, calculated as a percentage of that income and applied against state income tax liability.

Credit rates increase over three periods: 2% for taxable years ending December 31, 2014 through December 30, 2015; 4% for taxable years ending December 31, 2015 through December 30, 2016; and 6.2% for taxable years ending December 31, 2016 and thereafter.

Excess credits that exceed a taxpayer's current year liability may be carried forward and applied to tax liability in the 15 taxable years following the excess credit year, with earlier credits applied first.

Defines "qualified production activities income" by reference to Section 199 of the federal Internal Revenue Code.

Takes effect immediately upon becoming law.