Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart B - CREDITS › Section 100.2171 - Angel Investment Credit (IITA 220)

Current through Register Vol. 48, No. 28, July 12, 2024
a) For taxable years beginning on and after
				January 1, 2011, and ending on or before December 31, 2026, a claimant (as
				defined under 14 Ill. Adm. Code
				531.20) may claim a
				credit against the tax imposed under IITA Sections 201(a) and (b) in an amount
				equal to 25% of the Angel Investment (as defined under 14 Ill. Adm. Code
				531.20) made by the claimant and that is shown on the Tax Credit Certificate
				issued by the Department of Commerce and Economic Opportunity (DCEO) under 14
				Ill. Adm. Code
				531.70.
A claimant may not sell or otherwise transfer a credit awarded under
				this
Section
to another person.
(IITA Section
				220(g))
b) Year in Which Credit is
				Taken. The credit allowed under this Section shall be taken in the taxable year
				that includes the date of the Tax Credit Certificate issued by DCEO under 14
				Ill. Adm. Code 531.70.
c) In the
				case of a credit earned by a partnership or subchapter S corporation, the
				credit passes through to the owners as provided in the partnership agreement
				under IRC section 704(a) or in proportion to their ownership of the stock of
				the subchapter S corporation under IRC section 1366(a). The credit earned by a
				partnership or subchapter S corporation will be treated as earned by its owners
				as of the last day of the taxable year of the partnership or subchapter S
				corporation in which the Tax Credit Certificate is issued by DCEO under 14 Ill.
				Adm. Code 531.70, and shall be allowed to each owner in the taxable year of the
				owner in which the taxable year of the partnership or subchapter S corporation
				ends.
d)
The credit under
				this Section may not exceed the taxpayer's Illinois income tax liability under
				IITA Section 201(a) and (b) for the taxable year. If the amount of the credit
				exceeds the tax liability for the year, the excess may be carried forward and
				applied to the tax liability of the 5 taxable years following the excess credit
				year. The credit shall be applied to the earliest year for which there is a tax
				liability. If there are credits from more than one tax year that are available
				to offset a liability, the earlier credit shall be applied first.
(IITA Section 220(b))
e) Recapture.
If,
as determined by DCEO,
an investment for which a
				claimant is allowed a credit under this Section is held by the claimant for
				less than 3 years, or, if within that period of time the qualified new business
				venture is moved from the State, the claimant shall pay to the Department of
				Revenue,
on forms prescribed by the Department of Revenue
, the
				amount of the credit that the claimant received related to the investment. DCEO
				shall annually certify that the claimant's investment has been made and remains
				in the qualified new business venture for no less than 3 years.
(IITA
				Section 220(d))
f) Documentation of
				the Credit. A claimant shall attach to its Illinois income tax return a copy of
				the Tax Credit Certificate and/or annual certification (if any) issued by DCEO
				and, in the case of a partner in a partnership or shareholder of a subchapter S
				corporation that earned the credit, a Schedule K-1-P or other written statement
				from the partnership or subchapter S corporation stating the portion of the
				total credit shown on the Tax Credit Certificate that is allowed to that
				partner or shareholder and the taxable year of the partnership or subchapter S
				corporation in which the Tax Credit Certificate was issued.