IL HB4565

Creates an income tax credit for taxpayers incurring eligible costs in connection with producing biobased products in Illinois, effective for taxable years beginning January 1, 2025.

Credit amount equals 25% of eligible costs, with Department of Commerce and Economic Opportunity awarding credits and issuing tax credit certificates upon satisfactory review.

Total aggregate credits awarded statewide cannot exceed $20,000,000 in any state fiscal year.

Biobased products must be produced in Illinois (raw materials may be sourced elsewhere) and meet criteria: either at least 50% composed of biological/renewable materials, or 100% of carbon from renewable biological sources verified by ASTM D6866 testing.

Eligible costs include professional services, marketing, property assembly, building construction/rehabilitation, public works, site improvements, job training, financing costs (up to 30%), and capital equipment purchases; excess credits may be carried forward up to 5 years.