IL HB4864

Creates an income tax credit for taxpayers engaged in manufacturing (NAICS codes 31-33) equal to 10% of capital expenditures related to manufacturing during the taxable year.

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.

Caps the annual credit at $10,000,000 per taxpayer, or $20,000,000 for investments in rural or economically challenged areas.

Applies to taxable years beginning on or after January 1, 2024 and prior to January 1, 2035.

Prohibits taxpayers from claiming this credit if they claim another credit for the same capital expenditure, and prevents the credit from reducing tax liability below zero or being carried forward or back.