SB0805 Summary

• Amends the Economic Development for a Growing Economy Tax Credit Act to expand the "startup taxpayer" definition for agreements executed on or after the effective date, extending eligibility from businesses incorporated within 5 years to those incorporated within 10 years before application.

• Modifies the "startup taxpayer" definition to allow entities with no prior Illinois income tax liability (excluding related members' liabilities) to qualify for tax credit elections under Section 5-15(f)(1.8).

• Changes election timing for pass-through entities claiming credits against withholding obligations from "first calendar year" to "first calendar quarter" beginning after the taxable quarter in which the credit is awarded.

• Removes language restricting section 5-15(f)(1.8) elections to only agreements "applied for" after the effective date, limiting the provision to agreements "executed" on or after that date.

• Updates "underserved area" definitions effective July 1, 2022 to use American Community Survey data instead of federal census data and modifies poverty measurement to include families with children living below 130% of the poverty line.