IL SB2261

Creates a manufacturing capital expenditure income tax credit for taxpayers engaged in manufacturing (NAICS codes 31-33) for taxable years beginning January 1, 2022 through December 31, 2032.

Provides a credit equal to 10% of manufacturing-related capital expenditures incurred during the taxable year, with a maximum annual credit of $10,000,000 per taxpayer.

Increases the credit to 15% of capital expenditures for investments made in rural or economically challenged areas as determined by the Department of Commerce and Economic Opportunity, with a maximum annual credit of $20,000,000.

Prohibits taxpayers from claiming this credit for the same capital expenditure under any other tax provision and prevents the credit from reducing tax liability below zero or being carried forward or back.

Becomes effective immediately upon enactment.