Illinois Administrative Code
Title 14 - COMMERCE
Part 120 - MANUFACTURING ILLINOIS CHIPS FOR REAL OPPORTUNITY (MICRO) ACT
Subpart B - TAX CREDITS
Section 120.70 - Tax Credit Award
Universal Citation: 14 IL Admin Code ยง 120.70
Current through Register Vol. 48, No. 38, September 20, 2024
Subject to the conditions set forth in the Act, a taxpayer is entitled to a credit against the tax imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act [35 ILCS 5/201 ]for a taxable year beginning on or after January 1, 2025 if the taxpayer is awarded a credit by the Department in accordance with an agreement under the Act. The Department has authority to award credits under the Act on and after January 1, 2023. [35 ILCS 45/110-30]
a) MICRO Illinois Credit
1)
A taxpayer may receive a tax
credit against the tax imposed under subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act, not to exceed the sum of:
A)
75% of the incremental income tax
attributable to new employees at the applicant's project;
and
B)
10% of
training costs of the new employees.
2)
If the project is in an
underserved area or an energy transition area, then the amount of the credit
may not exceed the sum of:
A)
100% of the incremental income tax attributable to new employees at the
applicant's project; and
B)
10% of the training costs of the
new employees.
3)
The percentage of training costs
includable in the calculation may be increased by an additional 15% for
training costs associated with new employees that are recent (2 years or less)
graduates, certificate holders, or credential recipients from any of
the following:
A)
an
institution of higher education in Illinois;
B)
Clean Jobs Workforce Network
Program; or
C)
apprenticeship and training program located in Illinois and approved by
and registered with the United States Department of Labor's Bureau of
Apprenticeship and Training.
4)
An applicant is also eligible for
a training credit that shall not exceed 10% of the training costs of retained
employees for the purpose of upskilling to meet the operational needs of the
applicant or the project.
5)
The percentage of training costs
includable in the calculation shall not exceed a total of
25%.
6)
If an
applicant agrees to hire the required number of new employees, then the maximum
amount of the credit for that applicant may be increased by an amount not to
exceed 75% of the incremental income tax attributable to retained employees at
the applicant's project; provided that, in order to receive the increase for
retained employees, the applicant must, if applicable, meet or exceed the
statewide baseline that is specified in the agreement. If the
project is an underserved area or an energy transition area, the maximum amount
of the credit attributable to retained employees for the applicant may be
increased to an amount not to exceed 100% of the incremental income tax
attributable to retained employees at the applicant's project; provided that,
in order to receive the increase for retained employees, the applicant must
meet or exceed the statewide baseline that is specified in the
agreement.
7)
Credits awarded may include credit earned for incremental income tax
withheld and training costs incurred by the taxpayer beginning on or after
January 1, 2023. Credits so earned and certified by the Department may be
applied against the tax imposed by subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act for taxable years beginning on or after January 1,
2025. [35 ILCS
45/110-30(b)]
b) MICRO Construction Jobs Credit:
1)
For construction wages associated
with a project that qualified for a credit under subsection (b) of
Section 110-30 of the Act, the taxpayer may receive a tax credit
against the tax imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act in an amount equal to 50% of the incremental income tax
attributable to construction wages paid in connection with construction of the
project facilities, as a jobs credit for workers hired to construct the
project.
2)
The
MICRO Construction Jobs Credit may not exceed 75% of the amount of the
incremental income tax attributable to construction wages paid in connection
with construction of the project facilities if the project is in an underserved
area or an energy transition area. [35 ILCS
45/110-30(c)]
3) The applicant seeking certification for a
MICRO construction jobs credit shall require the contractor to enter
into a project labor agreement that conforms with the Project Labor Agreements
Act. [35 ILCS
45/110-30(e)]
c) Tax Credit Certification to the Department of Revenue. The Department shall certify to the Department of Revenue the following information regarding the tax credit award for each taxpayer outlined in subsections (a) and (b) of Section 120.70:
1)
The identity of taxpayers that are
eligible for the MICRO Illinois credit and MICRO construction jobs
credit;
2)
The
amount of the MICRO Illinois credit and MICRO construction jobs credit awarded
in each calendar year; and
3)
The amount of the MICRO Illinois
credit and MICRO construction jobs credit claimed in each calendar
year as detailed in Section 30(d) of the Act). [35 ILCS
45/110-30(d)]
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