HB3419 amends the Illinois Income Tax Act to create a new income tax credit for taxpayers that manufacture renewable diesel in Illinois for use by a rail carrier. The credit is set at $1 per gallon, or fraction of a gallon, of renewable diesel produced in the state for rail carrier use, and it applies to taxable years beginning on or after January 1, 2027. The bill is effective immediately, though the credit itself is not available until the later taxable years specified in the measure.
To claim the credit, a taxpayer must keep records showing the amount of renewable diesel manufactured in Illinois for rail carriers and documentation verifying that the fuel meets the bill’s definition of renewable diesel, including applicable ASTM standards. If the credit exceeds a taxpayer’s liability, the unused amount may be carried forward for up to 10 taxable years, and the credit cannot reduce tax liability below zero. The bill also exempts the new section from Section 250 of the Income Tax Act, which generally governs the use of certain credits.
Impact
The bill would add a new Section 246 to the Illinois Income Tax Act and create a targeted tax incentive for renewable diesel production tied specifically to rail carrier use. It would affect manufacturers of renewable diesel in Illinois, rail-related fuel supply chains, and the Department of Revenue, which would be responsible for administering documentation and verification requirements. The measure would reduce state income tax receipts to the extent eligible taxpayers claim the credit, while encouraging in-state production of low-carbon transportation fuel for the rail sector.
Sentiment
Based on the available record, there is no committee transcript or vote history showing debate, support, or opposition. The bill was introduced without recorded action in the provided materials, so the overall sentiment cannot be measured from formal proceedings. The bill’s structure suggests a pro-incentive, pro-renewable-energy policy approach, but no explicit legislative sentiment is documented here.
Contention
No specific points of contention are documented in the provided materials because there are no committee transcripts or votes. Potential areas of debate, based on the bill text alone, could include the fiscal cost of the credit, whether the incentive is narrowly targeted enough to benefit only rail-related fuel production, and the administrative burden of verifying gallons produced and fuel compliance. Any such concerns are inferred from the bill’s design rather than from recorded testimony or debate.
Creates "Manufacturing Reboot Program" in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.
Creates "Manufacturing Reboot Program" in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.