Ill. Admin. Code tit. 86, § 100.2171 - Angel Investment Credit (IITA 220)
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.
Notes
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