SB2024 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 manufactured in the state for that purpose. The bill applies to taxable years beginning on or after January 1, 2027, and is effective immediately upon enactment.
To claim the credit, taxpayers must keep records showing the number of gallons manufactured in Illinois for rail carrier use and documentation verifying that the fuel meets the bill’s definition of renewable diesel. The Department of Revenue may require additional information and prescribes the form, manner, and deadline for submission. 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 liability below zero.
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 transportation use. It would affect taxpayers engaged in manufacturing renewable diesel in Illinois, while also giving the Department of Revenue authority to administer documentation and verification requirements. The credit would be exempt from Section 250 of the Act and would allow a 10-year carryforward of unused credits.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition in the available materials. Based on the bill text and caption, the measure appears to be framed as a clean energy and transportation fuel incentive, suggesting a pro-renewable-fuels policy approach. The absence of recorded debate or votes means overall sentiment cannot be reliably assessed beyond the bill’s apparent policy intent.
Contention
The main policy questions likely concern the cost of the tax credit to state revenues, whether the incentive is narrowly tailored enough to benefit Illinois manufacturing and rail fuel use, and how the Department of Revenue will verify eligibility. Potential points of contention include the definition of renewable diesel, the documentation burden on taxpayers, and whether the credit should be limited to rail carriers rather than broader transportation or fuel markets. No specific objections or supporters are identified in the available record.
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.