IL HB3797

Creates a tax credit against Illinois income tax for investments made in Qualified Opportunity Funds established under Section 1400Z-2 of the Internal Revenue Code, effective for taxable years beginning on or after January 1, 2023.

Limits the credit to $10,000 per taxpayer per calendar year, with the credit amount equal to the taxpayer's investment in a Qualified Opportunity Fund during the taxable year.

Allows excess credits exceeding the taxpayer's annual tax liability to be carried forward up to 5 years or carried back up to 3 years.

Permits credits to be transferred by the taxpayer within one year after the credit is awarded, subject to Department of Commerce and Economic Opportunity rules.

Exempts the credit from the automatic sunset provision in Section 250 of the Illinois Income Tax Act, making it permanent.