HB5412 Summary

• Amends the Reimagining Energy and Vehicles in Illinois (REV) Act and Manufacturing Illinois Chips for Real Opportunity (MICRO) Act to clarify tax credit eligibility and reporting requirements for energy and semiconductor manufacturing projects beginning January 1, 2025.

• Expands tax credit percentages for projects in underserved or energy transition areas: increases REV Illinois Credits from 75% to 100% of incremental income tax for new employees, and increases retained employee credits from 75% to 100% when statewide baseline is met.

• Requires applicants receiving tax credits or exemptions to annually report total project tax benefits by May 31, with failure to report resulting in potential ineligibility for future incentives; authorizes Department of Revenue to adopt rules governing ineligibility periods.

• Allows taxpayers to elect to claim REV and MICRO credits against withholding obligations under Section 704A of the Illinois Income Tax Act as an alternative to claiming credits against income tax liability.

• Clarifies building materials exemption certification requirements for REV Illinois and MICRO projects, requiring retailers to obtain purchaser certification containing six specific details including certificate number, project location, contractor information, and materials description.