Current through Register Vol. 48, No. 38, September 20, 2024
a)
A transfer of the credit may be made by the applicant earning the
credit within one year after the credit is awarded in accordance with rules
adopted by the Department of Commerce and Economic Opportunity. Beginning July
1, 2023, credits transferred under this Section are subject to a transfer
fee pursuant to Section
528.85(e)(2)
. (Section 213 of the Illinois Income Tax Act)
b) For purposes of this provision, a tax
credit is earned on the date that the tax credit certificate is issued under
Section 528.70.
c) Tax credits earned by an applicant in a
taxable year ending prior to July 11, 2005 may not be transferred.
d) For purposes of this Section, a tax credit
earned by a partnership or subchapter S corporation shall be treated as having
been earned by its partners in the amounts determined under 86 Ill. Adm. Code
100.2185(c).
e) Transfer of a tax credit shall be made as
follows:
1) The applicant earning the credit
shall request the transfer from the Department, in writing, identifying the
transferees (name, tax identification number, mailing address) and the amount
to be transferred to each transferee, and the applicant shall return the tax
credit certificate to the Department, together with its transfer request. The
applicant is allowed to transfer or allocate a single credit to no more than 10
transferees.
2)
Beginning
July 1, 2023 the transferor shall pay to the Department, upon notification of a
transfer, a fee equal to
2.5 % of the transferred credit
amount eligible for nonresident wages, as described in Section 10 of the Film
Production Services Tax Credit Act of 2008, and an additional fee of
0.25 % of the total amount of
the transferred credit that is not calculated on nonresident wages, which shall
be deposited into the Illinois Production Workforce Development
Fund.
3) A request for
transfer may be submitted with the applicant's request for the tax credit
certificate under Section 528.70. The Department may issue the requested
certificates of transfer in lieu of the tax credit certificate.
4) If the transfer request is made within one
year of issuance and meets the requirements of this Section, the Department
shall issue a certificate of transfer to each transferee, identifying the
original tax credit certificate and stating the amount of the credit
transferred.
5) If the applicant
earning the credit transfers less than the full amount of the credit, the
Department shall issue a certificate of transfer to the applicant identifying
the original tax credit certificate and stating the amount of tax credit
retained by the applicant.
6) If
the person transferring the credit is a partner or shareholder in a partnership
or subchapter S corporation that earned the credit, that person shall submit to
the Department, either the original tax credit certificate or copies of the tax
credit certificates and copies of the Schedule K-1-P received by that person
from the partnership or subchapter S corporation stating that person's share of
the credit.
