Illinois 100th Regular Session Status: Enacted 1 D cosponsors

HB 5214 — INCOME TAX-ANGEL INVEST CREDIT

Last action — Public Act . . . . . . . . . 100-0686

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 15, 2018. Enacted.

Prognosis

Likely to advance 74% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 2 sponsors

    0 primary, 2 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Amends the Illinois Income Tax Act. Changes the definition of "applicant" and "related member". Provides that the annual allowable amounts shall be allocated by the Department of Commerce and Economic Opportunity if any portion of the unused allocated amount at the end of the first 3 calendar quarters of a calendar year (rather than 2 calendar quarters) are rolled into the total allocated amount for the next calendar quarter. Provides that the annual allowable amounts shall be allocated by the Department if tax credits for investments in minority-owned businesses, women-owned businesses, businesses owned by a person with a disability, or a business in a county with a population of 250,000 or less are limited to the first 3 calendar quarters of a calendar year and after which investors may claim the tax credits of any qualified new business venture.

Bill Text

What changed in the latest version

12 added · 12 removed

Plain-language change summary

The changes made to Bill HB 5214 update the definitions of "applicant" and "related member" and extend the timeframe for allocating tax credits related to investments in minority-owned, women-owned, and businesses owned by individuals with disabilities. Specifically, the bill now allows unused tax credits to be rolled over for three quarters instead of just two, giving businesses more flexibility and potential access to funding throughout the year. This extension is important as it can encourage investment in underserved business sectors, supporting economic growth in those communities.

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HB5214 Engrossed LRB100 19638 HLH 34911 b AN ACT concerning revenue.
HB5214 Enrolled LRB100 19638 HLH 34911 b AN ACT concerning revenue.
"Investment" means money (or its equivalent) given to a qualified new business venture, at a risk of loss, in consideration for an equity interest of the qualified new HB5214 Engrossed - 2 - LRB100 19638 HLH 34911 b business venture.
"Investment" means money (or its equivalent) given to a qualified new business venture, at a risk of loss, in consideration for an equity interest of the qualified new HB5214 Enrolled - 2 - LRB100 19638 HLH 34911 b business venture.
(3) A corporation, and any party related to the corporation in a manner that would require an attribution of stock from the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the HB5214 Engrossed - 3 - LRB100 19638 HLH 34911 b applicant and any other related member own, in the aggregate, directly, indirectly, beneficially, or constructively, at least 50% of the value of the corporation's outstanding stock of the qualified new business venture that is the recipient of the applicant's investment.
(3) A corporation, and any party related to the corporation in a manner that would require an attribution of stock from the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the HB5214 Enrolled - 3 - LRB100 19638 HLH 34911 b applicant and any other related member own, in the aggregate, directly, indirectly, beneficially, or constructively, at least 50% of the value of the corporation's outstanding stock of the qualified new business venture that is the recipient of the applicant's investment.
(b) For taxable years beginning after December 31, 2010, and ending on or before December 31, 2021, subject to the HB5214 Engrossed - 4 - LRB100 19638 HLH 34911 b limitations provided in this Section, a claimant may claim, as a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act, an amount equal to 25% of the claimant's investment made directly in a qualified new business venture.
(b) For taxable years beginning after December 31, 2010, and ending on or before December 31, 2021, subject to the HB5214 Enrolled - 4 - LRB100 19638 HLH 34911 b limitations provided in this Section, a claimant may claim, as a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act, an amount equal to 25% of the claimant's investment made directly in a qualified new business venture.
The maximum amount of an applicant's total investment made in any single qualified HB5214 Engrossed - 5 - LRB100 19638 HLH 34911 b new business venture that may be used as the basis for a credit under this Section is $2,000,000.
The maximum amount of an applicant's total investment made in any single qualified HB5214 Enrolled - 5 - LRB100 19638 HLH 34911 b new business venture that may be used as the basis for a credit under this Section is $2,000,000.
If the Department determines that a qualified new business HB5214 Engrossed - 6 - LRB100 19638 HLH 34911 b venture failed to maintain a minimum employment threshold in the State through the date which is 3 years from the issue date of the last tax credit certificate issued by the Department with respect to the subject business pursuant to this Section, the claimant or claimants shall pay to the Department of Revenue, in the manner prescribed by the Department of Revenue, the aggregate amount of the disqualified credits that claimant or claimants received related to investments in that business.
If the Department determines that a qualified new business HB5214 Enrolled - 6 - LRB100 19638 HLH 34911 b venture failed to maintain a minimum employment threshold in the State through the date which is 3 years from the issue date of the last tax credit certificate issued by the Department with respect to the subject business pursuant to this Section, the claimant or claimants shall pay to the Department of Revenue, in the manner prescribed by the Department of Revenue, the aggregate amount of the disqualified credits that claimant or claimants received related to investments in that business.
Any failure of a business to promptly provide the foregoing information to the Department may, at the discretion of the Department, result in a revocation of a previously approved application for that business, or disqualification of the HB5214 Engrossed - 7 - LRB100 19638 HLH 34911 b business from future registration under this Section, or both.
Any failure of a business to promptly provide the foregoing information to the Department may, at the discretion of the Department, result in a revocation of a previously approved application for that business, or disqualification of the HB5214 Enrolled - 7 - LRB100 19638 HLH 34911 b business from future registration under this Section, or both.
or (B) it is undertaking pre-commercialization activity related to proprietary technology that includes conducting research, developing a new product or business process, or developing a service that is HB5214 Engrossed - 8 - LRB100 19638 HLH 34911 b principally reliant on applying proprietary technology;
or (B) it is undertaking pre-commercialization activity related to proprietary technology that includes conducting research, developing a new product or business process, or developing a service that is HB5214 Enrolled - 8 - LRB100 19638 HLH 34911 b principally reliant on applying proprietary technology;
and (7) it has received not more than $4,000,000 in investments that qualified for tax credits under this HB5214 Engrossed - 9 - LRB100 19638 HLH 34911 b Section.
and (7) it has received not more than $4,000,000 in investments that qualified for tax credits under this HB5214 Enrolled - 9 - LRB100 19638 HLH 34911 b Section.
and (iii) the HB5214 Engrossed - 10 - LRB100 19638 HLH 34911 b reservation of tax credits for investments in minority-owned businesses, women-owned businesses, businesses owned by a person with a disability, and in businesses in counties with a population of not more than 250,000 is limited to the first 3 calendar quarters of a given calendar year, after which they may be claimed by investors in any qualified new business venture.
and (iii) the HB5214 Enrolled - 10 - LRB100 19638 HLH 34911 b reservation of tax credits for investments in minority-owned businesses, women-owned businesses, businesses owned by a person with a disability, and in businesses in counties with a population of not more than 250,000 is limited to the first 3 calendar quarters of a given calendar year, after which they may be claimed by investors in any qualified new business venture.
HB5214 Engrossed - 11 - LRB100 19638 HLH 34911 b (2) The report must also include:
HB5214 Enrolled - 11 - LRB100 19638 HLH 34911 b (2) The report must also include:
Each business registered by the Department as a qualified new business venture that receives an investment giving rise to the issuance of a tax credit certificate HB5214 Engrossed - 12 - LRB100 19638 HLH 34911 b pursuant to this Section shall, for each of the 3 years following the issue date of the last tax credit certificate issued by the Department with respect to such business pursuant to this Section, report to the Department the following:
Each business registered by the Department as a qualified new business venture that receives an investment giving rise to the issuance of a tax credit certificate HB5214 Enrolled - 12 - LRB100 19638 HLH 34911 b pursuant to this Section shall, for each of the 3 years following the issue date of the last tax credit certificate issued by the Department with respect to such business pursuant to this Section, report to the Department the following:
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Action History

  1. Public Act . . . . . . . . . 100-0686

  2. Effective Date January 1, 2019

  3. Governor Approved

  4. Sent to the Governor

  5. Passed Both Houses

  6. Third Reading - Passed; 046-000-000

  7. Added as Alternate Co-Sponsor Sen. Julie A. Morrison

  8. Added as Alternate Chief Co-Sponsor Sen. Melinda Bush

  9. Placed on Calendar Order of 3rd Reading May 16, 2018

  10. Second Reading

  11. Placed on Calendar Order of 2nd Reading May 15, 2018

  12. Do Pass Revenue; 005-000-000

  13. Assigned to Revenue

  14. Referred to Assignments

  15. First Reading

  16. Chief Senate Sponsor Sen. Elgie R. Sims, Jr.

  17. Placed on Calendar Order of First Reading April 24, 2018

  18. Arrive in Senate

  19. Third Reading - Short Debate - Passed 110-000-000

  20. Added Chief Co-Sponsor Rep. Jerry Costello, II

  21. Added Chief Co-Sponsor Rep. Robert W. Pritchard

  22. Added Chief Co-Sponsor Rep. Sam Yingling

  23. Added Chief Co-Sponsor Rep. Grant Wehrli

  24. Removed Co-Sponsor Rep. Jerry Costello, II

  25. Removed Co-Sponsor Rep. Robert W. Pritchard

  26. Removed Co-Sponsor Rep. Sam Yingling

  27. Removed Co-Sponsor Rep. Grant Wehrli

  28. Placed on Calendar Order of 3rd Reading - Short Debate

  29. Second Reading - Short Debate

  30. Placed on Calendar 2nd Reading - Short Debate

  31. Do Pass / Short Debate Revenue & Finance Committee; 009-000-000

  32. Added Co-Sponsor Rep. Silvana Tabares

  33. Added Co-Sponsor Rep. Sonya M. Harper

  34. Added Co-Sponsor Rep. Kathleen Willis

  35. Added Co-Sponsor Rep. Natalie A. Manley

  36. Added Co-Sponsor Rep. Jaime M. Andrade, Jr.

  37. Added Co-Sponsor Rep. Jerry Costello, II

  38. Added Co-Sponsor Rep. Lawrence Walsh, Jr.

  39. Added Co-Sponsor Rep. Avery Bourne

  40. Added Co-Sponsor Rep. Grant Wehrli

  41. Added Co-Sponsor Rep. Robert W. Pritchard

  42. Added Co-Sponsor Rep. Sam Yingling

  43. Assigned to Revenue & Finance Committee

  44. Referred to Rules Committee

  45. First Reading

  46. Filed with the Clerk by Rep. Carol Sente

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 2 co-sponsors · 181 not signed on

Sponsors (0)

None.

Co-sponsors (2)

Not signed on (181)

181 members have not signed on to this bill.

Show all 181 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 46 Yea · 0 Nay · 13 Other
Party YeaNayPresentNot Voting
Unaffiliated 27008
Republican 9000
Democrat 10005
Total 460013
% of votes cast 78%0%0%22%
How each member voted (59)
Member Party Vote
Barickman — Yea
Bertino-Tarrant — Yea
Biss — Not Voting
Bivins — Yea
Bush — Yea
Mulroe — Yea
Haine — Yea
McCarter — Yea
McConnaughay — Yea
Rooney — Yea
Bennett — Yea
Landek — Not Voting
McGuire — Yea
Link — Yea
McCann — Not Voting
Muñoz — Yea
Brady — Yea
Raoul — Not Voting
Silverstein — Not Voting
Cullerton — Yea
Harris — Not Voting
Cullerton, T. — Not Voting
Clayborne — Yea
Connelly — Yea
Hutchinson — Yea
Nybo — Not Voting
Oberweis — Yea
Righter — Yea
Sandoval — Yea
Schimpf — Yea
Steans — Yea
Manar — Yea
Althoff — Yea
Martinez — Yea
Van Pelt — Yea
Bill Cunningham Democrat Yea
Cristina Castro Democrat Not Voting
David Koehler Democrat Yea
Don Harmon Democrat Yea
Elgie R. Sims, Jr. Democrat Yea
Emil Jones, III Democrat Yea
Julie A. Morrison Democrat Not Voting
Kimberly A. Lightford Democrat Not Voting
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Michael E. Hastings Democrat Not Voting
Omar Aquino Democrat Yea
Steve Stadelman Democrat Not Voting
Chapin Rose Republican Yea
Dale Fowler Republican Yea
Dan McConchie Republican Yea
Dave Syverson Republican Yea
Jil Tracy Republican Yea
John F. Curran Republican Yea
Neil Anderson Republican Yea
Sue Rezin Republican Yea
Travis Weaver Republican Yea

Official roll call →

Third Reading

Passed 110 Yea · 0 Nay · 8 Other
Party YeaNayPresentNot Voting
Unaffiliated 69005
Republican 12000
Democrat 29003
Total 110008
% of votes cast 93%0%0%7%
How each member voted (118)
Member Party Vote
Batinick — Yea
Bellock — Yea
Bourne — Yea
Breen — Yea
Bristow — Yea
Butler — Yea
Carroll — Yea
Conroy — Yea
Conyears-Ervin — Yea
Costello — Yea
McAuliffe — Yea
Flowers — Yea
Lang — Yea
Long — Yea
Jones — Yea
McDermed — Not Voting
McSweeney — Yea
Davis — Yea
Pritchard — Not Voting
Stewart — Yea
Wheeler, Barbara — Yea
Wheeler, Keith — Yea
Mitchell, Bill — Yea
Stratton — Yea
Williams — Yea
Mitchell, Christian — Yea
Finnie, Natalie — Yea
Tabares — Yea
Thapedi — Yea
Turner — Yea
Wallace — Yea
Welter — Yea
Cavaletto — Yea
Connor — Yea
Currie — Yea
D'Amico — Yea
Demmer — Yea
Drury — Not Voting
Durkin — Yea
Fortner — Yea
Jesiel — Yea
Willis — Yea
Yingling — Yea
Zalewski — Yea
Frese — Yea
Greenwood — Yea
Phillips — Yea
Sente — Yea
Bennett — Yea
Sauer — Yea
Brady — Yea
Harris, David — Yea
Harris, Gregory — Yea
Hernandez — Yea
Burke, Daniel — Yea
Burke, Kelly — Yea
Hays — Yea
Hurley — Yea
Ives — Yea
Jimenez — Yea
Olsen — Yea
Parkhurst — Yea
Reis — Yea
Riley — Yea
Skillicorn — Not Voting
Sommer — Yea
Soto — Not Voting
Unes — Yea
Wehrli — Yea
Winger — Yea
Madigan — Yea
Andersson — Yea
Arroyo — Yea
Chapa LaVia — Yea
Anna Moeller Democrat Yea
Anthony DeLuca Democrat Yea
Camille Y. Lilly Democrat Yea
Carol Ammons Democrat Yea
Emanuel "Chris" Welch Democrat Yea
Fred Crespo Democrat Not Voting
Jaime M. Andrade, Jr. Democrat Yea
Jay Hoffman Democrat Yea
Jehan Gordon-Booth Democrat Yea
Julie A. Morrison Democrat Yea
Justin Slaughter Democrat Yea
Katie Stuart Democrat Yea
Kelly M. Cassidy Democrat Yea
La Shawn K. Ford Democrat Yea
Laura Fine Democrat Yea
Lawrence "Larry" Walsh, Jr. Democrat Yea
Marcus C. Evans, Jr. Democrat Not Voting
Martin J. Moylan Democrat Yea
Michael W. Halpin Democrat Yea
Michelle Mussman Democrat Yea
Natalie A. Manley Democrat Yea
Nicholas K. Smith Democrat Yea
Rita Mayfield Democrat Yea
Robert "Bob" Rita Democrat Yea
Robert F. Martwick Democrat Yea
Robyn Gabel Democrat Not Voting
Sara Feigenholtz Democrat Yea
Sonya M. Harper Democrat Yea
Stephanie A. Kifowit Democrat Yea
Sue Scherer Democrat Yea
Theresa Mah Democrat Yea
Will Guzzardi Democrat Yea
Brad Halbrook Republican Yea
Charles Meier Republican Yea
Christopher "C.D." Davidsmeyer Republican Yea
Dan Swanson Republican Yea
Dave Severin Republican Yea
Joe C. Sosnowski Republican Yea
John M. Cabello Republican Yea
Norine K. Hammond Republican Yea
Ryan Spain Republican Yea
Steven Reick Republican Yea
Terri Bryant Republican Yea
Tony M. McCombie Republican Yea

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HB 5214 do?
Amends the Illinois Income Tax Act. Changes the definition of "applicant" and "related member". Provides that the annual allowable amounts shall be allocated by the Department of Commerce and Economic Opportunity if any portion of the unused allocated amount at the end of the first 3 calendar quarters of a calendar year (rather than 2 calendar quarters) are rolled into the total allocated amount for the next calendar quarter. Provides that the annual allowable amounts shall be allocated by the Department if tax credits for investments in minority-owned businesses, women-owned businesses, businesses owned by a person with a disability, or a business in a county with a population of 250,000 or less are limited to the first 3 calendar quarters of a calendar year and after which investors may claim the tax credits of any qualified new business venture.
Who sponsors HB 5214?
HB 5214 is sponsored by Carol Sente and Julie A. Morrison (Democrat).
What is the current status of HB 5214?
This bill has been enacted into law. Introduced February 15, 2018. Enacted.
Where can I track HB 5214?
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