WeVote
Log In

Bill

Bill

SB 3665

INC TAX-ENERGY CHOICE

104th Regular Session Introduced by Chris Balkema and 2 co-sponsors

Implements a refundable 20% wage credit (max $2,000 per worker) for Illinois utilities or power companies to retain energy-choice workers during phaseouts, capped at $25M/year.

Rule 3-9(a) / Re-referred to Assignments
0
WeVote Research Nonpartisan
Bill Summary · SB 3665

Summary of SB 3665 (104th Illinois General Assembly)

Purpose and Intent

SB 3665 proposes a new Illinois income tax credit aimed at supporting Illinois-based energy choice operations and retaining the energy workforce amid the scheduled phaseouts of older generating units. It creates a refundable-style credit (subject to limitations) for eligible employers that are regulated utilities or power-generating companies with generation units subject to the phaseout schedule in Public Act 102-662. The program seeks to offset 20% of wages paid to qualifying energy choice workers in Illinois, with caps and eligibility criteria designed to target recruitment and retention during the transition away from older generation assets.

Key Provisions

Credit Details

  • Credit amount: 20% of wages paid to a qualified energy choice worker in the taxable year.
  • Per-employee cap: Maximum $2,000 tax credit per employee per year.
  • Per-employer cap: No more than 50 employees may claim the credit in a single taxable year.
  • Applicable years: Taxable years ending on or after December 31, 2026 and ending on or before December 31, 2030.

Eligibility and Qualifications

  • Qualifying taxpayer:
    • A regulated utility in Illinois, or
    • A power generating company providing baseload or intermediate generation in Illinois.
  • Must be subject to the provisions of Public Act 102-662.
  • Must demonstrate an adverse and material operational impact on its Illinois-based workforce or its ability to conduct business in Illinois due to the phaseout target dates (2030, 2035, 2040, 2045) for generational units in Illinois.
  • Qualified energy choice worker: An employee of the qualifying taxpayer who is employed and working in Illinois and directly employed at the taxpayer’s generational unit in Illinois.

Tax and Administrative Rules

  • Credit non-diminishing: The credit cannot reduce tax liability below zero. If the credit exceeds tax liability, excess can be carried forward.
  • Carryforward period: Any excess may be applied to the tax liability of the 5 taxable years following the year of excess, applying earliest-year rules when multiple credits exist.
  • Total program cap: Aggregate credits awarded under this section are limited to $25,000,000 in any State fiscal year.
  • Administration: The Department of Revenue, in consultation with:
    • Department of Commerce and Economic Opportunity
    • Illinois Power Agency
    • Illinois Commerce Commission
    • Illinois Environmental Protection Agency
    • Other relevant state agencies may adopt rules to implement and administer the program.

Definitions

  • Qualified energy choice worker: An employee of a qualified taxpayer who works in Illinois and is directly employed at the taxpayer’s generational unit in Illinois.
  • Qualified taxpayer: An employer in Illinois that is a regulated utility or a power generating company providing baseload/intermediate generation, subject to Public Act 102-662, and able to demonstrate adverse/operational impact tied to the phaseout dates.

Effective Date

  • The act takes effect immediately upon becoming law.

Who is Affected

  • Eligible employers: Regulated utilities and power generating companies operating in Illinois with generational units affected by the Public Act 102-662 phaseout schedule.
  • Energy choice workers: Employees directly employed at the qualifying taxpayer’s Illinois generational units.
  • State agencies: Department of Revenue administers the credit; other state agencies may issue implementing rules.

Timeline and Procedural Aspects

  • Introduction and referral: Filed February 5, 2026; assigned to Revenue.
  • Key dates under consideration: Committee deadlines established (Rule 2-10) with a third-reading deadline targeted for May 15, 2026.
  • Effective date: Immediate upon enactment (retroactive to taxable years starting 2026).

Notes

  • The bill includes a sunset-like window for the credit (taxable years 2026–2030) and a hard aggregate cap of $25 million per State fiscal year.
  • The credit emphasizes workforce retention during energy transition, tying eligibility to compliance with and impact from the phaseout in Public Act 102-662.

If you’d like, I can tailor this summary for a particular audience (e.g., fiscal analysts, utility executives, or public policymakers) or add a brief comparison to similar tax incentive programs.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.