IL SB2259

Creates an income tax credit for taxpayers making investments in depreciable property used to collect, process, or manufacture products from reclaimable material, effective for taxable years beginning January 1, 2022.

Credit amounts are: 25% of costs on the first $250,000 invested, 15% on the next $250,000 invested, and 5% on the next $500,000 invested, with a maximum investment of $1,000,000.

Excess credits that exceed tax liability in a given year may be carried forward and applied to tax liability in the next 5 taxable years, with earlier credits applied first.

For pass-through entities (partnerships, S-corporations, and LLCs with partnership tax treatment), the credit is allowed to partners, shareholders, or members according to their distributive share of income.

This section is exempt from the provisions of Section 250 of the Illinois Income Tax Act.