You may take this credit if:

• you qualified for and earned Environmental Remediation Tax Credit during the original time frame the credit was offered; and
• you have an excess amount of credit that may be carried forward; and
• the original credit was earned within the past five years; or
• you received a Schedule K-1-P, Partners or Shareholders Share of Income, Deductions, Credits, and Recapture, showing a distribution amount from a partnership or S corporation that qualified for the credit.

The Environmental Remediation Tax Credit allowed a credit for tax years ending on or after January 1, 1998, through tax years ending on or before December 31, 2001, for certain amounts paid for unreimbursed eligible remediation costs.

For tax years ending on or after January 1, 2002, you may take this credit only if you are using a credit carryforward that was earned during the original time frame allowed for earning the credit. For more information, see FY Bulletin 2003-09, Claims for Environmental Remediation Tax Credit.

If you did not receive approval that you qualified for the unreimbursed eligible remediation costs from the Illinois Environmental Protection Agency during the allowable time frame, you are not eligible for this credit.

The amount of the Environmental Remediation Tax Credit may not exceed $40,000 per year. If you are a partner or a shareholder of an S corporation or partnership and you receive a Schedule K-1-P, you may claim only the amount indicated as your share on the Schedule K-1-P. The maximum allowable credit for any site is $150,000, after the first $100,000 in remediation costs is paid. The $100,000 expense threshold does not apply if the site is located in an enterprise zone certified by DCEO. Any unused credit may be carried forward for up to 5 years after the credit was earned.

Any unused credit and remaining carryforward period may be sold to a buyer as part of a sale of all or part of the remediation site for which the credit was granted. The seller must record the transfer in the chain of title and notify the director of the Illinois Department of Revenue, in writing, of the intent to sell the remediation site and the amount of tax credit that will be transferred as a portion of the sale. Our address is Illinois Department of Revenue, 101 West Jefferson Street, Springfield, Illinois 62702.

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