Ill. Admin. Code tit. 14, § 528.85 - Transfer of Tax Credit

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.

Notes

Ill. Admin. Code tit. 14, § 528.85

Added at 31 Ill. Reg. 2253, effective January 18, 2007

Amended at 45 Ill. Reg. 5342, effective 4/12/2021 Amended at 47 Ill. Reg. 3693, effective 3/1/2023