SB3875 Summary: Illinois Innovation Credit

• Amends the Illinois Income Tax Act to create a new "Illinois Innovation Credit" allowing taxpayers a credit equal to 1.3% of qualified research expenses made in Illinois for tax years ending on or after December 31, 2020.

• Defines "qualified research" to include activities promoting new computer modeling technology, 3D modeling or imaging technology, new public infrastructure materials, and new public infrastructure design.

• Specifies that "qualified research expenses" include wages for qualified services, supplies used in research, and amounts paid to third parties for qualified research activities.

• Eliminates the requirement that a taxpayer obtain a federal research and development credit to qualify for the Illinois credit.

• Allows unused credits to be carried forward for up to 5 taxable years and exempts the credit from sunset provisions in Section 250 of the Income Tax Act.