Illinois ~ Corporate, Personal Income Taxes: Business Location Efficiency Incentive Act Continued; Changes Made to Angel Investment Credit

Illinois legislation provides for the continuation, validation, and re-enactment of the Business Location Efficiency Incentive Act and also makes changes to the conditions under which a business venture may be registered as a qualified business for the angel investment credit against the corporate and personal income tax.

The legislation declares that the repeal date set for the Business Location Efficiency Incentive Act is changed from December 31, 2011, to December 31, 2016. Furthermore, the Business Location Efficiency Incentive Act is deemed to have been in continuous effect since January 1, 2007, and it will continue to be in effect henceforward until it is otherwise lawfully repealed.

The bill also clarifies that to be registered as a qualified business for the angel investment credit at the time it is first certified a business venture must:

have fewer than 100 employees;

have been in operation in Illinois for not more than 10 consecutive years prior to the year of certification;

have received not more than $10,000,000 in aggregate private equity investment in cash; and

have received not more than $4,000,000 in investments that qualified for tax credits under 35 ILCS 5/220.

The legislation clarifies that the businesses must have applied for and received certification for the taxable year in which the investment was made prior to the date on which the investment was made.

P.A. 97-1097 (S.B. 3619 ), Laws 2012, effective August 24, 2012, applicable as noted

 

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Wolters Kluwer Tax and Accounting

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