Illinois General Assembly - Full Text of SB3188
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Full Text of SB3188  93rd General Assembly

SB3188ham001 93RD GENERAL ASSEMBLY

Rep. John E. Bradley

Filed: 5/26/2004

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3188

2     AMENDMENT NO. ____. Amend Senate Bill 3188 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Department of Commerce and Economic
5 Opportunity Law of the Civil Administrative Code is amended by
6 changing Section 605-332 as follows:
 
7     (20 ILCS 605/605-332)
8     Sec. 605-332. Financial assistance to energy generation
9 facilities.
10     (a) As used in this Section:
11     "New electric generating facility" means a
12 newly-constructed electric generation plant or a newly
13 constructed generation capacity expansion at an existing
14 facility, including the transmission lines and associated
15 equipment that transfers electricity from points of supply to
16 points of delivery, and for which foundation construction
17 commenced not sooner than July 1, 2001, which is designed to
18 provide baseload electric generation operating on a continuous
19 basis throughout the year; and:
20         (1) which has an aggregate rated generating capacity of
21     at least 400 megawatts for all new units at one site, uses
22     coal or gases derived from coal as its primary fuel source,
23     and supports the creation of at least 150 new Illinois coal
24     mining jobs; or

 

 

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1         (2) is (i) funded through a federal Department of
2     Energy grant before July 1, 2005, and (ii) uses coal
3     gasification or integrated gasification-combined cycle
4     units that generate electricity or chemicals, or both, and
5     that supports the creation of Illinois coal-mining jobs.
6     "Eligible business" means an entity that proposes to
7 construct a new electric generating facility and that has
8 applied to the Department to receive financial assistance
9 pursuant to this Section. With respect to use and occupation
10 taxes, wherever there is a reference to taxes, that reference
11 means only those taxes paid on Illinois-mined coal used in a
12 new electric generating facility.
13     "Department" means the Illinois Department of Commerce and
14 Economic Opportunity Community Affairs.
15     (b) The Department is authorized to provide financial
16 assistance to eligible businesses for new electric generating
17 facilities from funds appropriated by the General Assembly as
18 further provided in this Section.
19     An eligible business seeking qualification for financial
20 assistance for a new electric generating facility, for purposes
21 of this Section only, shall apply to the Department in the
22 manner specified by the Department. Any projections provided by
23 an eligible business as part of the application shall be
24 independently verified in a manner as set forth by the
25 Department. An application shall include, but not be limited
26 to:
27         (1) the projected or actual completion date of the new
28     electric generating facility for which financial
29     assistance is sought;
30         (2) copies of documentation deemed acceptable by the
31     Department establishing either (i) the total State
32     occupation and use taxes paid on Illinois-mined coal used
33     at the new electric generating facility for a minimum of 4
34     preceding calendar quarters or (ii) the projected amount of

 

 

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1     State occupation and use taxes paid on Illinois-mined coal
2     used at the new electric generating facility in 4 calendar
3     year quarters after completion of the new electric
4     generating facility. Bond proceeds subject to this Section
5     shall not be allocated to an eligible business until the
6     eligible business has demonstrated the revenue stream
7     sufficient to service the debt on the bonds; and
8         (3) the actual or projected amount of capital
9     investment by the eligible business in the new electric
10     generating facility.
11     The Department shall determine the maximum amount of
12 financial assistance for eligible businesses in accordance
13 with this paragraph. The Department shall not provide financial
14 assistance from general obligation bond funds to any eligible
15 business unless it receives a written certification from the
16 Director of the Bureau of the Budget (now Governor's Office of
17 Management and Budget) that 80% of the State occupation and use
18 tax receipts for a minimum of the preceding 4 calendar quarters
19 for all eligible businesses or as included in projections on
20 approved applications by eligible businesses equal or exceed
21 110% of the maximum annual debt service required with respect
22 to general obligation bonds issued for that purpose. The
23 Department may provide financial assistance not to exceed the
24 amount of State general obligation debt calculated as above,
25 the amount of actual or projected capital investment in the
26 energy generation facility, or $100,000,000, whichever is
27 less. Financial assistance received pursuant to this Section
28 may be used for capital facilities consisting of buildings,
29 structures, durable equipment, and land at the new electric
30 generating facility. Subject to the provisions of the agreement
31 covering the financial assistance, a portion of the financial
32 assistance may be required to be repaid to the State if certain
33 conditions for the governmental purpose of the assistance were
34 not met.

 

 

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1     An eligible business shall file a monthly report with the
2 Illinois Department of Revenue stating the amount of
3 Illinois-mined coal purchased during the previous month for use
4 in the new electric generating facility, the purchase price of
5 that coal, the amount of State occupation and use taxes paid on
6 that purchase to the seller of the Illinois-mined coal, and
7 such other information as that Department may reasonably
8 require. In sales of Illinois-mined coal between related
9 parties, the purchase price of the coal must have been
10 determined in an arms-length transaction. The report shall be
11 filed with the Illinois Department of Revenue on or before the
12 20th day of each month on a form provided by that Department.
13 However, no report need be filed by an eligible business in a
14 month when it made no reportable purchases of coal in the
15 previous month. The Illinois Department of Revenue shall
16 provide a summary of such reports to the Governor's Office of
17 Management and Budget Bureau of the Budget.
18     Upon granting financial assistance to an eligible
19 business, the Department shall certify the name of the eligible
20 business to the Illinois Department of Revenue. Beginning with
21 the receipt of the first report of State occupation and use
22 taxes paid by an eligible business and continuing for a 25-year
23 period, the Illinois Department of Revenue shall each month pay
24 into the Energy Infrastructure Fund 80% of the net revenue
25 realized from the 6.25% general rate on the selling price of
26 Illinois-mined coal that was sold to an eligible business.
27 (Source: P.A. 92-12, eff. 7-1-01; 93-167, eff. 7-10-03; revised
28 8-23-03.)
 
29     Section 10. The Illinois Enterprise Zone Act is amended by
30 changing Section 5.5 as follows:
 
31     (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
32     Sec. 5.5. High Impact Business.

 

 

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1     (a) In order to respond to unique opportunities to assist
2 in the encouragement, development, growth and expansion of the
3 private sector through large scale investment and development
4 projects, the Department is authorized to receive and approve
5 applications for the designation of "High Impact Businesses" in
6 Illinois subject to the following conditions:
7         (1) such applications may be submitted at any time
8     during the year;
9         (2) such business is not located, at the time of
10     designation, in an enterprise zone designated pursuant to
11     this Act;
12         (3) (A) the business intends to make a minimum
13         investment of $12,000,000 which will be placed in
14         service in qualified property and intends to create 500
15         full-time equivalent jobs at a designated location in
16         Illinois or intends to make a minimum investment of
17         $30,000,000 which will be placed in service in
18         qualified property and intends to retain 1,500
19         full-time jobs at a designated location in Illinois.
20         The business must certify in writing that the
21         investments would not be placed in service in qualified
22         property and the job creation or job retention would
23         not occur without the tax credits and exemptions set
24         forth in subsection (b) of this Section. The terms
25         "placed in service" and "qualified property" have the
26         same meanings as described in subsection (h) of Section
27         201 of the Illinois Income Tax Act; or
28             (B) the business intends to establish a new
29         electric generating facility at a designated location
30         in Illinois. "New electric generating facility", for
31         purposes of this Section, means a newly-constructed
32         electric generation plant or a newly-constructed
33         generation capacity expansion at an existing electric
34         generation plant, including the transmission lines and

 

 

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1         associated equipment that transfers electricity from
2         points of supply to points of delivery, and for which
3         such new foundation construction commenced not sooner
4         than July 1, 2001. Such facility shall be designed to
5         provide baseload electric generation and shall operate
6         on a continuous basis throughout the year; and shall
7         have an aggregate rated generating capacity of at least
8         1,000 megawatts for all new units at one site if it
9         uses natural gas as its primary fuel and foundation
10         construction of the facility is commenced on or before
11         December 31, 2004, or shall have an aggregate rated
12         generating capacity of at least 400 megawatts for all
13         new units at one site if it uses coal or gases derived
14         from coal as its primary fuel and shall support the
15         creation of at least 150 new Illinois coal mining jobs,
16         or, is (i) funded through a federal Department of
17         Energy grant before July 1, 2005, and (ii) uses coal
18         gasification or integrated gasification-combined cycle
19         units that generate electricity or chemicals, or both,
20         and shall support the creation of Illinois coal-mining
21         jobs. The business must certify in writing that the
22         investments necessary to establish a new electric
23         generating facility would not be placed in service and
24         the job creation in the case of a coal-fueled plant
25         would not occur without the tax credits and exemptions
26         set forth in subsection (b-5) of this Section. The term
27         "placed in service" has the same meaning as described
28         in subsection (h) of Section 201 of the Illinois Income
29         Tax Act; or
30             (C) the business intends to establish production
31         operations at a new coal mine, re-establish production
32         operations at a closed coal mine, or expand production
33         at an existing coal mine at a designated location in
34         Illinois not sooner than July 1, 2001; provided that

 

 

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1         the production operations result in the creation of 150
2         new Illinois coal mining jobs as described in
3         subdivision (a)(3)(B) of this Section, and further
4         provided that the coal extracted from such mine is
5         utilized as the predominant source for a new electric
6         generating facility. The business must certify in
7         writing that the investments necessary to establish a
8         new, expanded, or reopened coal mine would not be
9         placed in service and the job creation would not occur
10         without the tax credits and exemptions set forth in
11         subsection (b-5) of this Section. The term "placed in
12         service" has the same meaning as described in
13         subsection (h) of Section 201 of the Illinois Income
14         Tax Act; or
15             (D) the business intends to construct new
16         transmission facilities or upgrade existing
17         transmission facilities at designated locations in
18         Illinois, for which construction commenced not sooner
19         than July 1, 2001. For the purposes of this Section,
20         "transmission facilities" means transmission lines
21         with a voltage rating of 115 kilovolts or above,
22         including associated equipment, that transfer
23         electricity from points of supply to points of delivery
24         and that transmit a majority of the electricity
25         generated by a new electric generating facility
26         designated as a High Impact Business in accordance with
27         this Section. The business must certify in writing that
28         the investments necessary to construct new
29         transmission facilities or upgrade existing
30         transmission facilities would not be placed in service
31         without the tax credits and exemptions set forth in
32         subsection (b-5) of this Section. The term "placed in
33         service" has the same meaning as described in
34         subsection (h) of Section 201 of the Illinois Income

 

 

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1         Tax Act; and
2         (4) no later than 90 days after an application is
3     submitted, the Department shall notify the applicant of the
4     Department's determination of the qualification of the
5     proposed High Impact Business under this Section.
6     (b) Businesses designated as High Impact Businesses
7 pursuant to subdivision (a)(3)(A) of this Section shall qualify
8 for the credits and exemptions described in the following Acts:
9 Section 9-222 and Section 9-222.1A of the Public Utilities Act,
10 subsection (h) of Section 201 of the Illinois Income Tax Act, ;
11 and, Section 1d of the Retailers' Occupation Tax Act; , provided
12 that these credits and exemptions described in these Acts shall
13 not be authorized until the minimum investments set forth in
14 subdivision (a)(3)(A) of this Section have been placed in
15 service in qualified properties and, in the case of the
16 exemptions described in the Public Utilities Act and Section 1d
17 of the Retailers' Occupation Tax Act, the minimum full-time
18 equivalent jobs or full-time jobs set forth in subdivision
19 (a)(3)(A) of this Section have been created or retained.
20 Businesses designated as High Impact Businesses under this
21 Section shall also qualify for the exemption described in
22 Section 5l of the Retailers' Occupation Tax Act. The credit
23 provided in subsection (h) of Section 201 of the Illinois
24 Income Tax Act shall be applicable to investments in qualified
25 property as set forth in subdivision (a)(3)(A) of this Section.
26     (b-5) Businesses designated as High Impact Businesses
27 pursuant to subdivisions (a)(3)(B), (a)(3)(C), and (a)(3)(D)
28 of this Section shall qualify for the credits and exemptions
29 described in the following Acts: Section 51 of the Retailers'
30 Occupation Tax Act, Section 9-222 and Section 9-222.1A of the
31 Public Utilities Act, and subsection (h) of Section 201 of the
32 Illinois Income Tax Act; however, the credits and exemptions
33 authorized under Section 9-222 and Section 9-222.1A of the
34 Public Utilities Act, and subsection (h) of Section 201 of the

 

 

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1 Illinois Income Tax Act shall not be authorized until the new
2 electric generating facility, the new transmission facility,
3 or the new, expanded, or reopened coal mine is operational,
4 except that a new electric generating facility whose primary
5 fuel source is natural gas is eligible only for the exemption
6 under Section 5l of the Retailers' Occupation Tax Act.
7     (c) High Impact Businesses located in federally designated
8 foreign trade zones or sub-zones are also eligible for
9 additional credits, exemptions and deductions as described in
10 the following Acts: Section 9-221 and Section 9-222.1 of the
11 Public Utilities Act; and subsection (g) of Section 201, and
12 Section 203 of the Illinois Income Tax Act.
13     (d) Existing Illinois businesses which apply for
14 designation as a High Impact Business must provide the
15 Department with the prospective plan for which 1,500 full-time
16 jobs would be eliminated in the event that the business is not
17 designated.
18     (e) New proposed facilities which apply for designation as
19 High Impact Business must provide the Department with proof of
20 alternative non-Illinois sites which would receive the
21 proposed investment and job creation in the event that the
22 business is not designated as a High Impact Business.
23     (f) In the event that a business is designated a High
24 Impact Business and it is later determined after reasonable
25 notice and an opportunity for a hearing as provided under the
26 Illinois Administrative Procedure Act, that the business would
27 have placed in service in qualified property the investments
28 and created or retained the requisite number of jobs without
29 the benefits of the High Impact Business designation, the
30 Department shall be required to immediately revoke the
31 designation and notify the Director of the Department of
32 Revenue who shall begin proceedings to recover all wrongfully
33 exempted State taxes with interest. The business shall also be
34 ineligible for all State funded Department programs for a

 

 

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1 period of 10 years.
2     (g) The Department shall revoke a High Impact Business
3 designation if the participating business fails to comply with
4 the terms and conditions of the designation.
5     (h) Prior to designating a business, the Department shall
6 provide the members of the General Assembly and Illinois
7 Economic and Fiscal Commission with a report setting forth the
8 terms and conditions of the designation and guarantees that
9 have been received by the Department in relation to the
10 proposed business being designated.
11 (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01; revised
12 3-7-02.)".