IL SB2998

Creates an income tax credit for taxpayers investing in depreciable property used to collect, process, or manufacture products from reclaimable material, effective for taxable years beginning January 1, 2025.

Tiered credit structure: 25% of the first $250,000 invested, 15% of the next $250,000 invested, and 5% of the next $500,000 invested, with a maximum investment cap of $1,000,000.

Credits exceeding tax liability in a given year may be carried forward and applied to tax liability in the following 5 taxable years, with earlier credits applied first.

For partnerships, Subchapter S corporations, and limited liability companies with partnership tax treatment, credits are allocated to partners, shareholders, or members based on their distributive share of income.

Credit may not reduce tax liability below zero and is exempt from Section 250 provisions of the Illinois Income Tax Act.