IL HB0686

Creates an income tax credit equal to the full amount invested by taxpayers during a taxable year for installation or operation of an anaerobic digester, effective for taxable years ending on or after December 31, 2021.

Defines an "anaerobic digester" as a sealed environment or facility where organic food waste is broken down to produce methane and carbon dioxide for use as a renewable energy source.

Allows excess credits that exceed tax liability in a year to be carried forward and applied to tax liability in the following 5 taxable years, with earlier credits applied first.

Extends credit eligibility to partners, S-corporation shareholders, and limited liability company members based on their distributive share of income under the Internal Revenue Code.

Credit is exempt from Section 250 provisions and takes effect immediately upon becoming law.