HB0392 Summary

• Creates an Illinois Innovation Credit allowing a tax credit of 1.3% of qualified research expenses made by taxpayers in Illinois for tax years ending on or after December 31, 2021.

• Defines qualified research as activities promoting new computer modeling technology, 3D modeling/imaging technology, public infrastructure materials, or public infrastructure design.

• Defines qualified research expenses to include wages for employees performing qualified services, supplies used in qualified research, and amounts paid to third parties for qualified research.

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

• Clarifies that taxpayers are not required to have obtained a federal research and development credit to qualify for the Illinois Innovation Credit.