Proposed Innovation Zone Bill To Provide Benefits for Certain Illinois Businesses

Posted in Alerts, Tax Highlights May 2010

Keywords: state and local tax, tax

Illinois SB 3638 has been passed by the legislature and would create the Illinois Innovation Zone Act. Innovation Zones are certain areas in Illinois that would provide a variety of tax benefits for Illinois taxpayers. Benefits include an expansion of other credits Illinois has enacted, including the enterprise zone investment tax credit, jobs tax credit, R&D credit, and EDGE credit.

Innovation Zones could include existing Technology Parks or areas zoned for commercial industrial activity that meet very specific requirements. Innovation Zones must be designated by ordinance by a municipality or county. If designated by the locality, the Innovation Zone would then apply to the Department of Commerce and Economic Opportunity for certification. There can only be up to eight zones for 2010 and up to fifteen at any one time in the future.

In addition to expanding the number of companies qualifying for credits, the bill would expand the definition of qualified property to include “provision of advanced healthcare services or treatments.” Innovation Zones also add use-tax exemptions for tangible personal property used or consumed in an Innovation Zone in manufacturing of tangible personal property for wholesale or retail sales.

The above-mentioned bill could create great benefits for Illinois-based businesses located in Innovation Zones. Because of the anticipated budget deficit, passage of this bill is far from certain and it will be important to follow the bill as it continues through the Illinois legislature. (You can check the status of the bill at http://www.ilga.gov/legislation/billstatus.asp?DocNum=3638&GAID=10&GA=96&DocTypeID=SB&LegID=51825&SessionID=76.) In fact, if your business could benefit from this bill’s enactment, consider contacting your state representative as soon as possible to encourage the bill’s passage.

Blackman Kallick’s state and local tax (SALT) group has the insight and experience to properly advise and help taxpayer’s with their responsibilities. For more information or to discuss any concerns regarding this potential credit please call Deb Rood at (312) 980-2995 or Jason Parish at (312) 980-2959.

 

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.


Contact

Blackman Kallick
10 South Riverside Plaza
9th Floor
Chicago, IL 60606-3770

p 312-207-1040
f 312-207-1066
info@BlackmanKallick.com

Get Directions

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.