IL SB0141

Creates an income tax credit for taxpayers investing in depreciable property used to collect, process, or manufacture products from reclaimable material, effective for tax years beginning January 1, 2024.

Credit amounts are tiered: 25% on the first $250,000 invested, 15% on the next $250,000, and 5% on the next $500,000, with a maximum investment cap of $1,000,000.

Excess credits that exceed tax liability may be carried forward and applied to tax liability in the 5 following taxable years, with earlier credits applied first.

Credit is allocated to partners, shareholders, or members of partnerships, S-corporations, and LLCs based on their distributive share of income under Internal Revenue Code sections 702, 704, and subchapter S.

Section 250 limitations on tax credits do not apply to this credit.