HB3672 100TH GENERAL ASSEMBLY

LRB100 10832 HLH 21066 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3672

Introduced , by Rep. Avery Bourne

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to $4 multiplied by the tons of qualified coal refuse used to generate electricity at an eligible facility in this State in the previous taxable year.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Coal Refuse Energy and Reclamation Tax Credit.

(a) For taxable years beginning on or after January 1, 2017, a qualified taxpayer shall receive a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to $4 multiplied by the tons of qualified coal refuse used to generate electricity at an eligible facility in this State in the previous taxable year. The qualified taxpayer may apply to the Department of Commerce and Economic Opportunity for a credit award under this Section. The application shall be in the form and manner required by the Department of Commerce and Economic Opportunity by rule. In the review of applications for tax credits, the Department of Commerce and Economic Opportunity shall consult with the Illinois Environmental Protection Agency with respect to whether a facility qualifies as an eligible facility and to review the eligible facility's calculation of the amount of qualified coal refuse used to generate electricity.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) As used in this Section:

"Affiliate" means a person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with a qualified taxpayer.

"Eligible facility" means an electric generating facility placed in service before the effective date of this amendatory Act of the 100th General Assembly consisting of one or more units placed in service before the effective date of this amendatory Act of the 100th General Assembly that generates electricity located on the same property and that:

(1) combusts qualified coal refuse or fuel composed of at least 75% qualified coal refuse by BTU energy value in the prior calendar year;

(2) utilizes at a minimum a circulating fluidized bed combustion unit or pressurized fluidized bed combustion unit equipped with a limestone injection system for control of acid gases and a fabric filter particulate emission control system; and

(3) beneficially uses ash produced by the facility in the prior calendar year to reclaim mining-affected sites in amounts equal to at least 50% of the ash produced by the facility in the prior calendar year.

"Qualified coal refuse" means any waste coal, rock, shale, slurry, slate, clay and related materials associated with or near a coal seam that are either brought above ground or otherwise removed from a coal mine in the process of mining coal or that are separated from coal during the cleaning or preparation operations. The term includes underground development wastes, coal processing wastes, and excess spoil, but does not include overburden from surface mining activities.

"Qualified taxpayer" means a person who owns an eligible facility in this State or is a transferor, purchaser, affiliate, or assignee of a person to whom a tax credit certificate is issued under this Section.

(c) This Section is exempt from the provisions of Section 250.