HB5556 104TH GENERAL ASSEMBLY

LRB104 18309 HLH 31749 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5556

Introduced 2/13/2026, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

See Index

Amends the Statewide Innovation Development and Economy Act. Creates a New Opportunities for Vacation and Adventure Urban District or NOVA urban district. Sets forth the capital investment and job creation requirements to be certified as a NOVA urban district. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law. Provides that property that receives a megaproject certificate from the Department of Commerce and Economic Opportunity is eligible for an assessment freeze. Contains provisions concerning megaproject incentive agreements.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Statewide Innovation Development and Economy Act is amended by changing Sections 5-5, 5-10, 5-15, 5-20, 5-30, 5-35, 5-45, and 5-70 as follows:

(50 ILCS 475/5-5)

Sec. 5-5. Purpose; findings.

(a) The General Assembly finds and declares that the purpose of this Act is to promote, stimulate, and develop the general and economic welfare of the State of Illinois and its communities and to assist in the development and redevelopment of major tourism, entertainment, retail, and related projects within eligible areas of the State, thereby creating new jobs, stimulating significant capital investment, and promoting the general welfare of the citizens of this State, by authorizing municipalities and counties to issue sales tax and revenue (STAR) bonds for the financing of STAR bond projects, as defined in Section 5-10, and to otherwise exercise the powers and authorities granted to municipalities.

(b) The General Assembly further finds and declares that:

(1) It is the policy of the State, in the interest of promoting the health, safety, morals, and general welfare of all the people of the State, to provide incentives to create new job opportunities, and to promote major tourism, entertainment, retail, and related projects within the State.

(2) It is in the public interest to limit the portion of the aggregate proceeds of STAR bonds issued that are derived from the State sales tax increment pledged to pay STAR bonds in any STAR bond district to not more than 50% of the total development costs for a STAR bond project in the STAR bond district as set forth in subsection (g) of Section 5-45.

(3) As a result of the costs of land assemblage, financing, and infrastructure and other project costs, the private sector, without the assistance contemplated in this Act, is unable to develop major tourism, entertainment, retail, and related projects in some parts of the State.

(4) The type of projects for which this Act is intended must be of a certain size and scope and must be developed in a cohesive and comprehensive manner.

(5) The eligible tracts of land are more likely to remain underused and undeveloped or to be developed in a piecemeal manner resulting in inefficient and poorly planned developments that do not maximize job creation, job retention, and tax revenue generation within the State.

(6) There are multiple eligible areas in the State that could benefit from this Act.

(7) Investment in major tourism, entertainment, retail, and related development within the State would stimulate economic activity in the State, including the creation and maintenance of jobs, the creation of new and lasting infrastructure and other improvements, and the attraction and retention of interstate tourists and entertainment events that generate significant economic activity.

(8) The continual encouragement, development, growth, and expansion of major tourism, entertainment, retail, and related projects within the State requires a cooperative and continuous partnership between government and the private sector.

(9) The State has a responsibility to help create a favorable climate for new and improved job opportunities for its citizens and to increase the tax base of the State and its political subdivisions by encouraging development of major retail and entertainment spaces within the State by the private sector.

(10) The provision of additional incentives by the State and its political subdivisions will relieve conditions of unemployment, maintain existing levels of employment, create new job opportunities, retain jobs within the State, increase commerce within the State, and increase the tax base of the State and its political subdivisions.

(11) The powers conferred by this Act promote and protect the health, safety, morals, and welfare of the State and are for a public purpose and public use for which public money and resources may be expended.

(12) The necessity in the public interest for the provisions of this Act is hereby declared as a matter of legislative determination.

(Source: P.A. 104-453, eff. 12-12-25.)

(50 ILCS 475/5-10)

Sec. 5-10. Definitions. In this Act:

"Base year" means the calendar year immediately before the calendar year in which the Office of the Governor approves the first STAR bond project within the STAR bond district.

"Commence work" means the manifest commencement of actual operations on the development site, such as erecting a building, site mobilization, general on-site and off-site grading and utility installations, commencing design and construction documentation, ordering lead-time materials, excavating the ground to lay a foundation or a basement, or work of like description that a reasonable person would recognize as being done with the intention and purpose to continue work until the project is completed.

"Corporate authority" or "corporate authorities" means the county board of a county; the mayor and alderpersons or similar body when the reference is to cities; the president and trustees or similar body when the reference is to villages or incorporated towns; and the council when the reference is to municipalities under the commission form of government.

"De minimis amount" means an amount less than 15% of the land area within a STAR bond district.

"Department" means the Department of Commerce and Economic Opportunity.

"Developer" means any individual, corporation, trust, estate, partnership, limited liability partnership, limited liability company, or other entity. "Developer" does not include a not-for-profit entity, political subdivision, or other agency or instrumentality of the State.

"Development user" means an owner, operator, licensee, codeveloper, subdeveloper, or tenant that: (i) operates a business within a STAR bond district that is a retail store, hotel, or entertainment venue; (ii) does not have another Illinois location within a 30-mile radius at the time of opening or, for a NOVA urban district, within a 2-mile radius; and (iii) makes an initial capital investment, including project costs and other direct costs, of not less than $30,000,000 for the business or, for a NOVA urban district, makes in aggregate with other development users capital investments, including project costs and other direct costs, of not less than $60,000,000.

"Director" means the Director of Commerce and Economic Opportunity.

"Economic development region" means the counties encompassed within any one of the 10 economic development regions recognized by the Department on the effective date of this Act.

"Eligible area" means, in respect of any STAR bond district other than a NOVA urban district, contiguous parcels of real property that meet all of the following: (i) the property is directly and substantially benefited by the proposed STAR bond district plan; (ii) at least 50% of the total land area of the real property is located within an underserved area, as defined by the Department at the time the STAR bond district plan is submitted; (iii) the property is located in an area with not less than 10,000 residents within a 5-mile radius of the proposed district; (iv) the property is located 15 miles or less from either a State highway or federal interstate highway. "Eligible area" means, in respect of a NOVA urban district, contiguous parcels of real property (land or air rights) that meet all of the following: (i) the property is directly and substantially benefited by the proposed STAR bond district plan; (ii) the property includes one or more parcel boundaries located within 2 miles or less from existing public assembly, convention, and other civic and cultural facilities and attractions directly and substantially benefited by the proposed STAR bond district plan; (iii) the property is located in an area with not less than 10,000 residents within a 2-mile radius of the proposed district; and (iv) the property is located one-quarter mile or less from a commuter rail station and either a State highway or federal interstate highway. ; and (v) the

For an area to be an eligible area, is found by the governing body of the political subdivision must find that the area meets to meet the following requirements:

(1) the use, condition, and character of the buildings in the area, if any, are not consistent with the purposes set forth in Section 5-5;

(2) a STAR bond district within the area is expected to create or retain job opportunities within the political subdivision;

(3) a STAR bond district within the area will serve to further the development of adjacent areas;

(4) without the availability of STAR bonds, the projects described in the STAR bond district plan would not be feasible in the area;

(5) a STAR bond district will strengthen the commercial sector of the political subdivision;

(6) a STAR bond district will enhance the tax base of the political subdivision; and

(7) with respect to a NOVA urban district, a STAR bond district will strengthen, grow, and enhance the visitation, business and operation of existing public assembly, convention, and other civic and cultural facilities and attractions; and

(8) the formation of a STAR bond district is in the best interest of the political subdivision.

The findings described in paragraphs (1) through (7) are subject to the review process provided in subsections (e) and (f) of Section 5-20.

For the purposes of this definition, the area may be bisected by streets, highways, roads, alleys, railways, bike paths, streams, rivers, and other waterways, and other public land and facilities and still be deemed contiguous.

"Entertainment venue" means a business that has a primary use of providing a venue for entertainment attractions, destination-oriented retail facilities, corporate brand development and entertainment-based media, rides, or other activities oriented toward the entertainment and amusement of its patrons.

"Feasibility study" means the feasibility study described in subsection (b) of Section 5-30.

"Hotel" has the same meaning given to that term in Section 2 of the Hotel Operators' Occupation Tax Act.

"Infrastructure" means the public improvements and private improvements that serve the public purposes set forth in Section 5-5 of this Act and that benefit the STAR bond district or any STAR bond projects, including, but not limited to, streets, drives and driveways, traffic and directional signs and signals, parking lots and parking facilities, interchanges, highways, sidewalks, bridges, underpasses and overpasses, bike and walking trails, landscaping and site features, sanitary and storm sewers, and lift stations, drainage conduits, channels, levees, canals, storm water detention and retention facilities, utilities and utility connections, utility distribution systems, railway and rail yard improvements, transit stations and related facilities, transit vehicles and mobility systems, digital media and signage, substructure and foundations, structural slabs and transfer structures, district energy facilities, low voltage systems, mobilization and site preparation, earthwork and earth retention systems, soil removal and remediation, building enclosure systems, site improvements that serve as an engineered barrier addressing ground level or below ground level environmental contamination and remediation, vertical circulation, water mains and extensions, and street and parking lot lighting and connections.

"Local sales taxes" means any locally imposed taxes received by a municipality, county, or other local governmental entity arising from sales by retailers and servicemen within a STAR bond district. "Local sales taxes" includes business district sales taxes, taxes imposed under Section 5-50, and that portion of the net revenue allocated from the Local Government Tax Fund and the County and Mass Transit District Fund to the municipality, county, or other governmental entity under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act from transactions at places of business located in a STAR bond district. "Local sales taxes" does not include (i) any taxes authorized under the Local Mass Transit District Act or the Metro-East Park and Recreation District Act for so long as the applicable taxing district does not impose a tax on real property, (ii) any county school facility and resources occupation taxes imposed under Section 5-1006.7 of the Counties Code, (iii) any taxes authorized under the Flood Prevention District Act, (iv) any taxes authorized under the Special County Occupation Tax For Public Safety, Public Facilities, Mental Health, Substance Abuse, or Transportation Law, (v) any taxes authorized under the Regional Transportation Authority Act, (vi) any taxes authorized under the County Motor Fuel Tax Law, or (vii) any taxes authorized under the Municipal Motor Fuel Tax Law.

"Local sales tax increment" means:

(1) with respect to local sales taxes administered by a municipality, county, or other unit of local government, that portion of the local sales tax that is in excess of the aggregate local sales tax in the district for the same month in the base year, as determined by the respective municipality, county, or other unit of local government; the Department of Revenue shall allocate the local sales tax increment only if the local sales tax is administered by the Department; and

(2) with respect to local sales taxes administered by the Department of Revenue:

(A) except with respect to the 0.25% county portion of the 6.25% State rate, all the local sales tax paid by taxpayers in the district that is in excess of the aggregate local sales tax paid by taxpayers in the district for the same month in the base year, as determined by the Department of Revenue; and

(B) with respect to the 0.25% county portion of the 6.25% State rate, in the case of a STAR bond district that is partially or wholly within a municipality, that portion of the 0.25% county portion of the 6.25% rate paid by taxpayers in the district for sales made within the corporate limits of the municipality that is in excess of the aggregate local sales tax paid by taxpayers in the district for sales made within the corporate limits of the municipality for the same month in the base year, as determined by the Department of Revenue, but only if the corporate authorities of the county adopt an ordinance, and file a copy of the ordinance with the Department of Revenue within the same time frames as required for STAR bond occupation taxes under Section 5-50, that designates the taxes as part of the local sales tax increment under this Act.

"Market study" means a study to determine the ability of the proposed STAR bond project to gain market share locally and regionally and to remain profitable after the term of repayment of STAR bonds.

"Master developer" means a developer cooperating with a political subdivision to plan, develop, and implement a STAR bond project plan for a STAR bond district. Subject to the limitations of Section 5-40, the master developer may work with and transfer certain development rights to other developers for the purpose of implementing STAR bond project plans and achieving the purposes of this Act. A master developer for a STAR bond district shall be appointed by a political subdivision in the resolution establishing the STAR bond district or, in the case of a NOVA urban district, by the State or the political subdivision, and the master developer or its affiliate must, at the time of appointment, own or have control of, through purchase agreements, option contracts, or other means, not less than 50% of the acreage within the STAR bond district. "Master developer" also means any successor developer who has assumed the role and responsibilities of the original master developer through the execution of an amended master development agreement and has been approved as the master developer through resolution by the applicable political subdivision.

"Master development agreement" means an agreement between the master developer (or any approved successor developers) and the political subdivision or, in the case of a NOVA urban district, the State, to govern a STAR bond district and any STAR bond projects.

"Municipality" means the city, village, or incorporated town in which a proposed STAR bond district is located.

"New Opportunities for Vacation and Adventure District" or "NOVA district" means a STAR bond district that encompasses a minimum of 500 contiguous acres and, during the STAR bond district plan approval process, demonstrates a reasonable expectation of (1) producing a capital investment of at least $500,000,000, (2) generating not less than $300,000,000 in average annual gross sales over the life of the district, (3) attracting at least 1,000,000 average annual visitors over the life of the district annually, and (4) creating a minimum of 1,500 average annual jobs over the life of the district.

"New Opportunities for Vacation and Adventure Urban District" or "NOVA urban district" means a STAR bond district that encompasses a minimum of 20 contiguous acres of land or air rights and, during the STAR bond district plan approval process, demonstrates a reasonable expectation of (1) producing an initial capital investment of at least $1,000,000,000, of which 75% shall be infrastructure project costs, (2) generating not less than $450,000,000 in average annual gross sales over the life of the district, (3) attracting at least 2,000,000 average annual visitors over the life of the district, and (4) creating a minimum of 3,000 average annual jobs over the life of the district.

"Pledged STAR revenues" means those sales tax revenues and other sources of funds that are pledged to pay debt service on STAR bonds or to pay project costs under Section 5-45. Notwithstanding any provision of law to the contrary, any State sales tax increment or local sales tax increment from a retail entity initiating operations in a STAR bond district while terminating operations at another Illinois location within 25 miles of the STAR bond district or, for a NOVA urban district, within 2 miles of the STAR bond district shall not constitute pledged STAR revenues or be available to pay principal and interest on STAR bonds. For purposes of this definition, "terminating operations" means a closing of a retail operation that is directly related to the opening of the same operation or like retail entity owned or operated by more than 50% of the original ownership in a STAR bond district within one year before or after initiating operations in the STAR bond district, but it does not mean closing an operation for reasons beyond the control of the retail entity, as documented by the retail entity, subject to a reasonable finding by the municipality (or county if such retail operation is not located within a municipality) in which the terminated operations were located that the closed location contained inadequate space, had become economically obsolete, or was no longer a viable location for the retailer or serviceperson.

"Political subdivision" means a municipality or county that undertakes to establish a STAR bond district under the provisions of this Act.

"Professional sports" means any of the following sports at the major league level: baseball, basketball, football, or ice hockey.

"Project costs" means the total of all costs incurred or estimated to be incurred on or after the date of establishment of a STAR bond district or, for a NOVA urban district, following the date of establishment or prior to the date of establishment of the STAR bond district as approved by the office of the Governor, that are reasonable or necessary to implement a STAR bond district plan or any STAR bond project plans, or both, including costs incurred for public improvements and private improvements that serve the public purposes set forth in Section 5-5 of this Act. "Project costs" includes, without limitation:

(1) costs of studies, surveys, development of plans and specifications, formation, implementation, and administration of a STAR bond district, STAR bond district plan, any STAR bond projects, or any STAR bond project plans incurred before or after the establishment of the STAR bond district, including, but not limited to, staff and professional service costs for architectural, engineering, development, legal, financial, planning, marketing, operations, or other professional services; however, no charges for professional services may be based on a percentage of the tax increment collected, and no contracts for professional services, excluding architectural and engineering services, development and finance services, and operations services, may be entered into if the terms of the contract extend beyond a period of 3 years or, for a NOVA urban district, 7 years;

(2) property assembly costs, including, but not limited to, costs related to:

(A) the acquisition of land and other real property or rights or interests in the land or other real property located within the boundaries of a STAR bond district;

(B) the demolition of buildings, site mobilization and preparation, and site improvements that serve as an engineered barrier addressing ground level or below ground environmental contamination and remediation, including, but not limited to, parking lots and other concrete or asphalt barriers; and

(C) the clearing and grading of land and the importing of additional soil and fill materials or the removal of soil and fill materials from the site;

(3) subject to paragraph (6), the costs of buildings and other vertical improvements that are located within the boundaries of a STAR bond district and are owned by a political subdivision or other public entity, including without limitation police and fire stations, educational facilities, and public restrooms and rest areas;

(4) costs of buildings and other vertical improvements that are located within: (i) the boundaries of a STAR bond district and are owned by a development user, except that only 4 development users, other than a hotel or entertainment venue, in a STAR bond district and one hotel are eligible to include the cost of those vertical improvements as project costs, or (ii) the boundaries of a NOVA district or a NOVA urban district;

(5) costs of the following vertical improvements that are located within (i) the boundaries of a STAR bond district and owned by an entertainment venue, except that only one entertainment venue in a STAR bond district is eligible to include the cost of those vertical improvements as project costs, or (ii) a NOVA district or a NOVA urban district:

(A) buildings;

(B) rides and attractions, including, but not limited to, carousels, slides, roller coasters, displays, models, towers, works of art, and similar theme and amusement park improvements; and

(C) other vertical improvements;

(6) costs of the design and construction of infrastructure and public works located within the boundaries of a STAR bond district that are reasonable or necessary to implement a STAR bond district plan or any STAR bond project plans, or both, except that "project costs" does not include the cost of constructing a new municipal public building principally used to provide offices, storage space, or conference facilities or vehicle storage, maintenance, or repair for administrative, public safety, or public works personnel and that is not intended to replace an existing public building unless the political subdivision makes a reasonable determination in a STAR bond district plan or any STAR bond project plans, supported by information that provides the basis for that determination, that the new municipal building is required to meet an increase in the need for public safety purposes anticipated to result from the implementation of the STAR bond district plan or any STAR bond project plans; provided, however, for a NOVA urban district, this prohibition shall not apply to any commuter rail or transit and transit-related facilities, whether public or private;

(7) costs of the design and construction of the following improvements located outside the boundaries of a STAR bond district if the costs are essential to further the purpose and development of a STAR bond district plan and either (i) part of and connected to sewer, water, or utility service lines and district energy and utility distribution systems that physically connect to the STAR bond district, or (ii) digital media, related infrastructure, signage and interactive displays, or (iii) significant improvements for adjacent off-site highways, streets, roadways, railway and related transportation systems, and interchanges that are approved by the Department of Transportation. No other cost of infrastructure and public works improvements located outside the boundaries of a STAR bond district may be deemed project costs;

(8) costs of job training and retraining projects for current and future employees of development users, including programs implemented by businesses located within a STAR bond district;

(9) financing costs, including, but not limited to, all necessary and incidental expenses related to the issuance of obligations and the payment of interest on any obligations issued under this Act, including interest accruing during the estimated period of construction of any improvements in a STAR bond district or any STAR bond projects for which such obligations are issued and for not exceeding 36 months thereafter or, for a NOVA urban district, 60 months thereafter, and including reasonable reserves related thereto;

(10) interest costs incurred by a developer for project costs related to the acquisition, formation, implementation, development, construction, and administration of a STAR bond district, STAR bond district plan, STAR bond projects, or any STAR bond project plans if:

(A) except for a NOVA urban district, payment of the costs in any one year may not exceed 30% of the annual interest costs incurred by the developer with regard to the STAR bond district or any STAR bond projects during that year; and

(B) except for a NOVA urban district, the total of the interest payments paid under this Act may not exceed 30% of the total cost paid or incurred by the developer for a STAR bond district or STAR bond projects, plus project costs, excluding any property assembly costs incurred by a political subdivision under this Act;

(11) to the extent the political subdivision by written agreement accepts and approves the same, all or a portion of a taxing district's capital costs resulting from a STAR bond district or STAR bond projects necessarily incurred or to be incurred within a taxing district in furtherance of the objectives of a STAR bond district plan or STAR bond project plans;

(12) costs of common areas located within the boundaries of a STAR bond district;

(13) costs of landscaping and plantings, retaining walls and fences, artificial lakes and ponds, shelters, benches, lighting, and similar amenities located within the boundaries of a STAR bond district;

(14) costs of mounted building signs, digital media, site monuments, and pylon signs located within the boundaries of a STAR bond district; or

(15) if included in the STAR bond district plan and approved in writing by the Director, salaries or a portion of salaries for local government employees to the extent the same are directly attributable to the work of those employees on the establishment and management of a STAR bond district or any STAR bond project.

Except as specified in items (1) through (15) of this definition, "project costs" does not include:

(A) the cost of construction of buildings that are owned by a municipality or county and leased to a development user for uses other than as a retail store, hotel, or entertainment venue;

(B) moving expenses for employees of the businesses locating within the STAR bond district;

(C) property taxes for property located in the STAR bond district;

(D) lobbying costs; and

(E) general overhead or administrative costs of the political subdivision that would still have been incurred by the political subdivision if the political subdivision had not established a STAR bond district.

"Project development agreement" means any one or more agreements, including any amendments to that agreement or those agreements, between a master developer and any codeveloper or subdeveloper in connection with a STAR bond project, which project development agreement may include the political subdivision as a party.

"Project labor agreement" means a prehire collective bargaining agreement that covers all terms and conditions of employment between the general contractor and all subcontractors hired by the master developer, developer, codeveloper, or subdeveloper, as applicable, of a STAR bond project. A "project labor agreement" must include the following provisions: (1) a provision establishing the minimum hourly wage for each class of labor organization employee; (2) a provision establishing the benefits and other compensation for each class of labor organization employee; (3) a provision requiring that no strike or dispute will be engaged in by the labor organization employees; (4) a provision requiring that no lockout or dispute will be engaged in by the general contractor and all subcontractors building the project; and (5) a provision establishing goals for apprenticeship hours to be performed by minority persons and women and goals for total hours to be performed by minority persons and women, as those terms are defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. A "project labor agreement" may include other terms and conditions as necessary.

"Projected market area" means any area within the State in which a STAR bond district or STAR bond project is projected to have a significant fiscal or market impact as determined by the Director.

"Resolution" means a resolution, order, ordinance, or other appropriate form of legislative action of a political subdivision or other applicable public entity approved by a vote of a majority of a quorum at a meeting of the governing body of the political subdivision or applicable public entity.

"STAR bond" means a sales tax and revenue bond, note, or other obligation payable from pledged STAR revenues and issued by a political subdivision, the proceeds of which shall be used only to pay project costs as defined in this Act.

"STAR bond district" means the specific area that is declared to be an eligible area by the political subdivision, that has received approval by the State, and in which the political subdivision may develop one or more STAR bond projects.

"STAR bond district plan" means the preliminary or conceptual plan that generally identifies the proposed STAR bond project areas and identifies in a general manner the buildings, facilities, and improvements to be constructed or improved in each STAR bond project area or, for a NOVA urban district, the STAR bond district plan may also include a specific STAR bond project.

"STAR bond project" means a project that is located within a STAR bond district and that is approved under Section 5-30.

"STAR bond project area" means the geographic area within a STAR bond district in which there may be one or more STAR bond projects.

"STAR bond project plan" means the written plan adopted by a political subdivision for the development of a STAR bond project in a STAR bond district; the plan may include, but is not limited to, (i) project costs incurred prior to the date of the STAR bond project plan and estimated future STAR bond project costs, (ii) proposed sources of funds to pay those costs, (iii) the nature and estimated term of any obligations to be issued by the political subdivision to pay those costs, (iv) the most recent equalized assessed valuation of the STAR bond project area, (v) an estimate of the equalized assessed valuation of the STAR bond district or applicable project area after completion of a STAR bond project, (vi) a general description of the types of any known or proposed developers or development , users, or tenants of the STAR bond project or projects included in the plan, (vii) a general description of the type, structure, and character of the property or facilities to be developed or improved, (viii) a description of the general land uses to apply to the STAR bond project, and (ix) a general description or an estimate of the type, class, and number of employees to be employed in the operation of the STAR bond project.

"State sales tax" means all the net revenue realized under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act from transactions at places of business located within a STAR bond district, excluding that portion of the net revenue realized under the Retailers' Occupation Tax Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act from transactions at places of business located within a STAR bond district that is deposited into the Local Government Tax Fund and the County and Mass Transit District Fund.

"State sales tax increment" means:

(1) with respect to all STAR bond districts that do not qualify as NOVA districts or NOVA urban districts:

(A) 100% of that portion of the aggregate State sales tax that is in excess of the aggregate State sales tax for the same month in the base year, as determined by the Department of Revenue, from transactions at up to 4 development users located within a STAR bond district, which development users shall be designated by the master developer and approved by the political subdivision and the Director of Revenue in conjunction with the applicable STAR bond project approval; and

(B) 25% of that portion of the aggregate State sales tax that is in excess of the aggregate State sales tax for the same month in the base year, as determined by the Department of Revenue from all other transactions within a STAR bond district; and

(2) with respect to all NOVA districts:

(A) 100% of that portion of the State sales tax that is in excess of the State sales tax for the same month in the base year, as determined by the Department of Revenue, from transactions at up to 4 development users located, which development users shall be designated by the master developer and approved by the political subdivision and the Director of Revenue in conjunction with the applicable STAR bond project approval; and

(B) 50% of that portion of the State sales tax that is in excess of the State sales tax for the same month in the base year from all other transactions within the NOVA district; and .

(3) with respect to all NOVA urban districts, 100% of that portion of the State sales tax that is in excess of the State sales tax for the same month in the base year, as determined by the Department of Revenue, from all transactions within the NOVA urban district.

"Substantial change" means a change in which the proposed STAR bond project plan differs substantially in size, scope, or use from the approved STAR bond district plan or STAR bond project plan.

"Taxpayer" means an individual, partnership, corporation, limited liability company, trust, estate, or other entity that is subject to the Illinois Income Tax Act.

"Total development costs" means the aggregate public and private investment in a STAR bond district, including project costs and other direct and indirect costs related to the development of the STAR bond district over the life of the STAR bond district.

"Underserved area" has the meaning given to that term in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act.

"Vacant" means that portion of the land in a proposed STAR bond district that is not occupied by a building, facility, or other vertical improvement.

(Source: P.A. 104-453, eff. 12-12-25.)

(50 ILCS 475/5-15)

Sec. 5-15. Limitations on STAR bond districts and STAR bond projects. The Office of the Governor, in consultation with the Department, the Department of Revenue, and the Governor's Office of Management and Budget, shall have final approval of all STAR bond districts and STAR bond projects established under this Act, which may be established throughout the 10 Economic Development Regions in the State as established by the Department. Regardless of the number of STAR bond districts established within any Economic Development Region: (i) only one STAR bond project may be approved for each Economic Development Region having a population of less than 600,000; (ii) up to 3 STAR bond projects may be approved for each Economic Development Region having a population of between 600,000 and 999,999; and (iii) up to 4 STAR bond projects may be approved for each Economic Development Region having a population of 1,000,000 or more, excluding projects located in STAR bond districts established under the Innovation Development and Economy Act. Other than a NOVA urban district, a A STAR bond district under this Act may not be located either entirely or partially inside of a municipality with a population in excess of 2,000,000.

A STAR bond project that is not located in a NOVA district may not receive reimbursement from the proceeds of bonds secured by State sales tax increment that exceeds the lesser of (1) 50% of the total development costs or (2) an aggregate amount of $75,000,000. A STAR bond project that is located in a NOVA district may not receive reimbursement from the proceeds of bonds secured by State sales tax increment that exceeds the lesser of (1) 50% of the total development costs or (2) an aggregate amount of $800,000,000. A STAR bond project that is located in a NOVA urban district may not receive reimbursement from the proceeds of bonds secured by State sales tax increment that exceeds the lesser of (1) 75% of the total development costs or (2) an aggregate amount of $1,600,000,000.

(Source: P.A. 104-453, eff. 12-12-25.)

(50 ILCS 475/5-20)

Sec. 5-20. Establishment of STAR bond district.

(a) The corporate authorities of a municipality may establish a STAR bond district within an eligible area within the municipality or partially outside the boundaries of the municipality in an unincorporated area of the county. A STAR bond district that is partially outside the boundaries of the municipality must also be approved by the corporate authorities of the county by the passage of a resolution. The corporate authorities of a county may establish a STAR bond district in an eligible area in any unincorporated area of the county.

(b) When a political subdivision is interested in establishing a STAR bond district, the political subdivision must first provide notice to the Director of Commerce and Economic Opportunity and the Director of Revenue on or before June 1, 2026 of its intention to establish a STAR bond district. After filing notice, the political subdivision shall determine whether the area satisfies the statutory criteria to establish a STAR bond district consistent with this Act. The corporate authorities of the political subdivision shall adopt a resolution stating that the political subdivision is considering the establishment of a STAR bond district. The resolution shall:

(1) give notice, in the same manner as set forth in subsection (e) of Section 5-30, that a public hearing will be held to consider the establishment of a STAR bond district and fix the date, hour, and place of the public hearing, which shall be at a location that is within 20 miles of the STAR bond district, in a facility that can accommodate a large crowd, and in a facility that is accessible to persons with disabilities;

(2) describe the proposed general boundaries of the STAR bond district;

(3) describe the STAR bond district plan;

(4) require that a description and map of the proposed STAR bond district are available for inspection at a time and place designated;

(5) identify the master developer for the STAR bond district; and

(6) require that the corporate authorities consider findings necessary for the establishment of a STAR bond district.

(c) Upon the conclusion of the public hearing the corporate authorities of the political subdivision may adopt a resolution to establish the STAR bond district. The corporate authorities of a municipality with a population of 2,000,000 or more may proceed directly to consider a resolution to establish a NOVA urban district.

(1) A resolution to establish a STAR bond district shall:

(A) make findings that the proposed STAR bond district is to be developed with a STAR bond project;

(B) make findings that the STAR bond district is an eligible area;

(C) contain a STAR bond district plan that identifies in a general manner the buildings and facilities that are proposed to be constructed or improved as part of the STAR bond project and that includes plans for at least one development user;

(D) contain the legal description of the STAR bond district;

(E) appoint the master developer for the STAR bond district, subject to the provisions of Section 5-25, and, if applicable, verify that master developer has a signed project labor agreement for the construction of future improvements within any STAR bond projects;

(F) if applicable, make a finding that the STAR bond district plan demonstrates a reasonable expectation that it will meet the acreage, capital investment, sales, and job creation thresholds necessary to qualify as a NOVA district or NOVA urban district and contains a request for a NOVA district designation or NOVA urban district; and

(G) establish the STAR bond district, contingent upon approval of the State as set forth in subsection (e).

(2) For STAR bond districts other than a NOVA urban district, if If the resolution to establish a STAR bond district is not adopted by the political subdivision within 60 days after the conclusion of the public hearing, then the STAR bond district shall not be established.

(3) Upon adoption of a resolution to establish a STAR bond district, the political subdivision shall send a certified copy of the resolution to the Director of Commerce and Economic Opportunity, the Director of Revenue, and the Director of the Governor's Office of Management and Budget within 60 days after the adoption of the resolution.

(d) Upon adoption of a resolution to establish a STAR bond district, the STAR bond district and any STAR bond project shall be governed by a master development agreement between the political subdivision and the master developer. A STAR bond district that is partially outside the boundaries of a municipality shall require only one master development agreement, which shall be between the municipality and the master developer. In no event shall there be more than one master development agreement governing the terms and conditions of a STAR bond district. The master development agreement shall require the master developer to ensure compliance with the following requirements to reduce the ecological impact of the STAR bond district development: (i) inclusion of pollution prevention, erosion, and sedimentation control plans during construction; (ii) protection of endangered species' habitat and wetlands mitigation; (iii) preservation of at least 20% of the STAR bond district as green space, including lawns, parks, landscaped areas, paths, lakes, ponds, and other water features or, for a NOVA urban district, inclusion of such green space, including lawns, parks, landscaped areas, paths, lakes, ponds, and other water features, as set forth in the STAR bond project plan; (iv) promotion of the use of renewable energy to the extent commercially feasible; (v) implementation of recycling programs during construction and at completed STAR bond projects; (vi) preservation of water quality and promotion of water conservation through the use of techniques such as reusing storm water and landscaping with native and low-maintenance vegetation to reduce the need for irrigation and fertilization; (vii) inclusion of comprehensive lighting programs that reduce light pollution within the STAR bond district; and (viii) promotion of shared parking between different users and the political subdivision to reduce the impact on project sites.

(e) Upon adoption of a resolution to establish a STAR bond district, the political subdivision shall submit the proposed STAR bond district plan to the Department, the Department of Revenue, and the Governor's Office of Management and Budget for consideration. All proposed STAR bond district plans must be submitted on or before January 1, 2027 for consideration. The Department, the Department of Revenue, and the Governor's Office of Management and Budget shall make a joint recommendation to approve a STAR bond district if the agencies find that: (i) the proposed STAR bond district is an eligible area; (ii) the STAR bond district plan includes a STAR bond project that would entail a projected capital investment of at least $30,000,000 for a STAR bond district that is not proposed to be designated as a NOVA district, or $500,000,000 for a STAR bond district that is proposed to be designated as a NOVA district, or $1,000,000,000 for a STAR bond district that is proposed to be designated as a NOVA urban district; (iii) the STAR bond district plan includes a STAR bond project that is reasonably projected to produce at least $60,000,000 of annual gross sales and at least 300 new jobs or, for a STAR bond district proposed to be designated as a NOVA district, at least $300,000,000 of annual gross sales and 1,500 new jobs or, for a STAR bond district proposed to be designated as a NOVA urban district, at least $450,000,000 of annual gross sales and 3,000 new jobs; (iv) the STAR bond district plan includes potential development users; (v) the creation of the STAR bond district and STAR bond district plan are in accordance with the purpose of this Act and the public interest; and (vi) the STAR bond district and STAR bond district plan meet any other requirement that the State deems appropriate. The agencies shall send a copy of their written findings and recommendation for approval or denial of a STAR bond district to the Office of the Governor for review and final action. In the case of any NOVA district or NOVA urban district, those written findings and recommendations shall be submitted to the Office of the Governor within 60 days following the agencies' receipt of the District Plan proposing the NOVA district or NOVA urban district.

(f) Upon receipt of the written findings and recommendations, the Office of the Governor shall review the submission and issue a final approval or denial of the STAR bond district and send written notice of its approval or denial to the requesting political subdivision and to the agencies. If requested by the political subdivision under paragraph (F) of subsection (c) of this Section, the written notice shall also include a determination as to whether the proposed STAR bond district qualifies for designation as a NOVA district or NOVA urban district and shall be issued within 30 days after the Office of the Governor receives the written findings of the agencies as provided in subsection (e).

(g) Starting on the fifth anniversary of the first date of distribution of State sales tax increment from the approved STAR bond project in the STAR bond district, or, if the project is in a NOVA district, the earlier of (i) the fifteenth anniversary of that date or (ii) the date requested by the master developer, and continuing each anniversary thereafter, the Director shall, in consultation with the political subdivision and the master developer, determine the total number of new jobs created within the STAR bond district, the total development cost to date, and the master developer's compliance with its obligations under any written agreements with the State. If, on the fifth anniversary of the first date of distribution of State sales tax increment from the approved STAR bond project in the STAR bond district, or the earlier of (i) the fifteenth anniversary of that date or (ii) the date requested by the master developer if the project is in a NOVA district or NOVA urban district, the Director determines that the total development cost to date is not equal to or greater than (i) $30,000,000 if the project is not in a NOVA district or NOVA urban district, (ii) $500,000,000 if the project is in a NOVA district, or (iii) $1,000,000,000 if the project is in a NOVA urban district, or that the master developer is in breach of any written agreement with the State, then no new STAR bonds may be issued in the STAR bond district until the total development cost exceeds $30,000,000, or $500,000,000, or $1,000,000,000, as applicable, or the breach of agreement is cured, or both. If, on the fifth anniversary of the first date of distribution of State sales tax increment from the approved STAR bond project in the STAR bond district, or the earlier of (i) the fifteenth anniversary of that date or (ii) the date requested by the master developer if the project is in a NOVA district or a NOVA urban district, there are not at least (i) 300 new jobs existing in the STAR bond district if the project is not in a NOVA district or a NOVA urban district, (ii) 1,500 new jobs existing in the STAR bond district if the project is in a NOVA district, or (iii) 3,000 new jobs existing in the STAR bond district if the project is in a NOVA urban district, the State may require the master developer to pay the State a penalty of $1,500 per job under 300, or 1,500, or 3,000, as applicable, each year until the earlier of (i) the twenty-third anniversary of the first date of distribution of State sales tax increment from the approved STAR bond project in the STAR bond district, (ii) the date that all STAR bonds issued in the STAR bond district have been paid off, or (iii) the date on which at least 300 jobs, or 1,500 jobs, or 3,000 jobs, as applicable, have been created in the STAR bond district. Upon creation of 300 jobs, or 1,500 jobs, or 3,000 jobs, as applicable, in the STAR bond district, there shall not be an ongoing obligation to maintain those jobs after the fifth anniversary of the first date of distribution of State sales tax increment from the approved STAR bond project in the STAR bond district, and the master developer shall be relieved of any liability with respect to job creation under this subsection. Notwithstanding anything to the contrary in this subsection, the master developer shall not be liable for the penalties set forth in this subsection if the breach of agreement, failure to reach the required amount in total development costs, or failure to create the required number of jobs is due to delays caused by force majeure, as that term is defined in the master development agreement.

(Source: P.A. 104-453, eff. 12-12-25.)

(50 ILCS 475/5-30)

Sec. 5-30. Approval of STAR bond projects.

(a) The corporate authorities of a political subdivision seeking to establish a STAR bond project in an approved STAR bond district must submit a proposed STAR bond project plan to the Department, the Department of Revenue, and the Governor's Office of Management and Budget on or before June 1, 2028. A STAR bond project plan for a NOVA urban district may be submitted to the Department of Commerce and Economic Opportunity, the Department of Revenue, and the Governor's Office of Management and Budget concurrent with the process for approval of a STAR bond district in Section 5-20 of this Act. A STAR bond project which is partially outside the boundaries of a municipality must also be approved by the corporate authorities of the county by resolution.

After the establishment of a STAR bond district, the master developer may propose a STAR bond project to a political subdivision, and the master developer shall, in cooperation with the political subdivision, prepare a STAR bond project plan in consultation with the planning commission of the political subdivision, if any. The STAR bond project plan may be implemented in separate development stages.

(b) Any political subdivision considering a STAR bond project within a STAR bond district shall cause to be prepared an independent feasibility study. The feasibility study shall be prepared by a feasibility consultant approved by the Department. The feasibility consultant shall provide certified copies of the feasibility study to the political subdivision, the Department, the Department of Revenue, and the Governor's Office of Management and Budget. The feasibility study shall include the following:

(1) the estimated amount of pledged STAR revenues expected to be collected in each year through the maturity date of the proposed STAR bonds;

(2) a statement of how the jobs and taxes obtained from the STAR bond project will contribute significantly to the economic development of the State and region;

(3) visitation expectations;

(4) the unique quality of the project;

(5) an economic impact study;

(6) a market study;

(7) current and anticipated infrastructure analysis;

(8) integration and collaboration with other resources or businesses;

(9) the quality of service and experience provided, as measured against national consumer standards for the specific target market;

(10) project accountability, measured according to best industry practices;

(11) the expected return on State and local investment that the STAR bond project is anticipated to produce; and

(12) an anticipated principal and interest payment schedule on the STAR bonds.

The feasibility consultant, along with any other consultants commissioned to perform the studies and other analysis required by the feasibility study, shall be selected by the political subdivision but approved by the Department. The consultants shall be retained by the political subdivision. The political subdivision may seek reimbursement from the master developer.

The failure to include all information enumerated in this subsection in the feasibility study for a STAR bond project shall not affect the validity of STAR bonds issued under this Act. A feasibility study for a NOVA urban district completed for the Office of the Governor and the Department of Commerce and Economic Opportunity within 12 months after the effective date of this amendatory Act of the 104th General Assembly shall meet the requirements of this Section.

(c) If the political subdivision determines the STAR bond project is feasible, the STAR bond project plan shall include:

(1) a summary of the feasibility study;

(2) a reference to the STAR bond district plan that identifies the STAR bond project area that is set forth in the STAR bond project plan that is being considered;

(3) a legal description and map of the STAR bond project area to be developed or redeveloped;

(4) a description of the buildings and facilities proposed to be constructed or improved in the STAR bond project area, including development users, as applicable;

(5) a copy of letters of intent to locate within the STAR bond district signed by both the master developer and the appropriate corporate officer of at least one development user for the STAR bond project proposed within the district;

(6) a copy of a project labor agreement entered into by the master developer and a commitment by the master developer, other developers, contractors, and subcontractors to comply with the requirements of Section 30-22 of the Illinois Procurement Code as they apply to responsible bidders; and

(7) any other information the corporate authorities of the political subdivision deems reasonable and necessary to advise the public of the intent of the STAR bond project plan.

(d) Before a political subdivision may hold a public hearing to consider a STAR bond project plan, the political subdivision must apply to the Department, the Department of Revenue, and the Governor's Office of Management and Budget for joint review and recommendation and ultimate approval or denial by the Office of the Governor of the STAR bond project plan. The corporate authorities of a political subdivision seeking to establish a STAR bond project in an approved STAR bond district must submit a proposed STAR bond project plan to the Department, the Department of Revenue, and the Governor's Office of Management and Budget by June 1, 2028 for consideration.

An application for approval of a STAR bond project plan must not be approved by the State unless all the components of the feasibility study set forth in paragraphs (1) through (12) of subsection (b) have been completed and submitted for review and recommendation for approval or denial. In addition to reviewing all the other elements of the STAR bond project plan required under subsection (c), which must be included in the application and include a letter of intent as required under paragraph (5) of subsection (c) in order to receive State approval, the Department, the Department of Revenue, and the Governor's Office of Management and Budget must review the feasibility study and consider all the components of the feasibility study set forth in paragraphs (1) through (12) of subsection (b), including, without limitation, the economic impact study and the financial benefit of the proposed STAR bond project to the local, regional, and State economies, the proposed adverse impacts on similar businesses and projects as well as municipalities within the market area, and the net effect of the proposed STAR bond project on the local, regional, and State economies. In addition to the economic impact study, the political subdivision must also submit to the agencies, as part of its application, the financial and other information that substantiates the basis for the conclusion of the economic impact study, in the form and manner as required by the agencies, so that the agencies can verify the results of the study. In addition to any other criteria in this subsection, the State may not approve the STAR bond project plan unless the agencies are satisfied that the proposed development users are, in fact, true development users and find that the STAR bond project plan is in accordance with the purpose of this Act and the public interest. As part of the review, the agencies shall evaluate the conclusions of the feasibility study as it relates to the projected State and local sales tax increments expected to be generated in the STAR bond district. The Department, the Department of Revenue, and the Governor's Office of Management and Budget shall jointly recommend the approval of a STAR bond project plan. In making the recommendation, the agencies shall consider the proximity of a proposed STAR bond project to another proposed or existing STAR bond project. Notwithstanding any other provision of this Act, the Department, the Department of Revenue, and the Governor's Office of Management and Budget shall not approve any STAR bond project plan that includes as part of the plan the development of any facility, stadium, arena, or other structure if: (1) the purpose of the facility, stadium, arena, or other structure is the holding of professional sports contests; or (2) the facility, stadium, arena, or other structure is within a one-mile radius of any structure that is developed on or after the effective date of this Act and has as one of its purposes the holding of professional sports contests except, in respect of a STAR bond project in a NOVA urban district, for a structure that is within a one-mile radius of an existing stadium that may be redeveloped on or after the effective date of this Act and has as one of its purposes the holding of professional sports contests. The agencies shall send a copy of their written findings and recommended approval or denial of the STAR bond project plan to the Office of the Governor for final action. Upon receipt of the Director's written findings and recommendation, the Office of the Governor shall issue a final approval or denial of the STAR bond project plan based on the criteria in this subsection and Section 5-15 and send a written approval or denial to the requesting political subdivision. Notwithstanding any other provision of law, for STAR bond districts designated as NOVA districts or NOVA urban districts, the Office of the Governor shall issue a final approval or denial of the STAR bond project plan based on the criteria in this subsection and Section 5-15 and send written approval or denial to the requesting political subdivision within 180 days or, for a NOVA urban district, 60 days, after the political subdivision applies for approval, as set out in this subsection (d). In granting its approval, the Office of the Governor may require the political subdivision to execute a binding agreement or memorandum of understanding with the State. The terms of the agreement or memorandum may include, among other things, the political subdivision's repayment of the State sales tax increment distributed to it if any violation of the agreement or memorandum or this Act occurs.

(e) Upon a finding by the planning and zoning commission of the political subdivision, if any, that the STAR bond project plan is consistent with the intent of the comprehensive plan for the development of the political subdivision and upon issuance of written approval of the STAR bond project plan from the Office of the Governor under subsection (d) of this Section, the corporate authorities of the political subdivision shall adopt a resolution stating that the political subdivision is considering the adoption of the STAR bond project plan. The resolution shall:

(1) give notice that a public hearing will be held to consider the adoption of the STAR bond project plan and fix the date, hour, and place of the public hearing;

(2) describe the general boundaries of the STAR bond district within which the STAR bond project will be located and the date of establishment of the STAR bond district;

(3) describe the general boundaries of the area proposed to be included within the STAR bond project area;

(4) provide that the STAR bond project plan and map of the area to be redeveloped or developed are available for inspection during regular office hours in the offices of the political subdivision; and

(5) contain a summary of the terms and conditions of any proposed project development agreement with the political subdivision.

(f) A public hearing shall be conducted to consider the adoption of any STAR bond project plan.

(1) The date fixed for the public hearing to consider the adoption of the STAR bond project plan shall be not less than 20 nor more than 90 days following the date of the adoption of the resolution fixing the date of the hearing.

(2) A copy of the political subdivision's resolution providing for the public hearing shall be sent by certified mail, return receipt requested, to the corporate authorities of the county. A copy of the political subdivision's resolution providing for the public hearing shall be sent by certified mail, return receipt requested, to each person or persons in whose name the general taxes for the last preceding year were paid on each parcel of land lying within the proposed STAR bond project area within 10 days following the date of the adoption of the resolution. The resolution shall be published once in a newspaper of general circulation in the political subdivision not less than one week nor more than 3 weeks before the date fixed for the public hearing. A map or aerial photo clearly delineating the area of land proposed to be included within the STAR bond project area shall be published with the resolution.

(3) The hearing shall be held at a location that is within 20 miles of the STAR bond district or, for a NOVA urban district, within 2 miles of the STAR bond district, in a facility that can accommodate a large crowd is accessible to persons with disabilities.

(4) At the public hearing, a representative of the political subdivision or master developer shall present the STAR bond project plan. Following the presentation of the STAR bond project plan, all interested persons shall be given an opportunity to be heard. The corporate authorities may continue the date and time of the public hearing.

(g) Upon conclusion of the public hearing, the governing body of the political subdivision may adopt the STAR bond project plan by a resolution approving the STAR bond project plan.

(h) After the adoption by the corporate authorities of the political subdivision of a STAR bond project plan, the political subdivision may enter into a project development agreement if the master developer has requested the political subdivision to be a party to the project development agreement under subsection (b) of Section 5-40.

(i) Within 30 days after the adoption by the political subdivision of a STAR bond project plan, the clerk of the political subdivision shall transmit a copy of the legal description of the land and a list of all new and existing mailing addresses within the STAR bond district, a copy of the resolution adopting the STAR bond project plan, and a map or plat indicating the boundaries of the STAR bond project area and STAR bond district to the clerk, treasurer, and governing body of the county and to the Department and Department of Revenue. Within 30 days of creation of any new mailing address within a STAR bond district, the clerk of the political subdivision shall provide written notice of that new address to the Department and the Department of Revenue.

If a certified copy of the resolution adopting the STAR bond project plan is filed with the Department of Revenue on or before the first day of April, the Department of Revenue, if all other requirements of this subsection are met, shall proceed to collect and allocate any local sales tax increment and any State sales tax increment in accordance with the provisions of this Act on the first day of July next following the adoption and filing. If a certified copy of the resolution adopting the STAR bond project plan is filed with the Department of Revenue after April 1 but on or before the first day of October, the Department of Revenue, if all other requirements of this subsection are met, shall proceed to collect and allocate any local sales tax increment and any State sales tax increment in accordance with the provisions of this Act as of the first day of January next following the adoption and filing.

Any substantial changes to a STAR bond project plan as adopted shall be subject to a public hearing following publication of notice thereof in a newspaper of general circulation in the political subdivision and approval by resolution of the governing body of the political subdivision.

The Department of Revenue shall not collect or allocate any local sales tax increment or State sales tax increment until the political subdivision also provides, in the manner prescribed by the Department of Revenue, the boundaries of the STAR bond district and each address in the STAR bond district in such a way that the Department of Revenue can determine by its address whether a business is located in the STAR bond district. The political subdivision must provide this boundary and address information to the Department of Revenue, with a copy to the Department, on or before April 1 for administration and enforcement under this Act by the Department of Revenue beginning on the following July 1 and on or before October 1 for administration and enforcement under this Act by the Department of Revenue beginning on the following January 1. The Department of Revenue shall not administer or enforce any change made to the boundaries of a STAR bond district or any address change, addition, or deletion until the political subdivision reports the boundary change or address change, addition, or deletion to the Department of Revenue, with a copy to the Department, in the manner prescribed by the Department of Revenue. The political subdivision must provide this boundary change or address change, addition, or deletion information to the Department of Revenue, with a copy to the Department, on or before April 1 for administration and enforcement by the Department of Revenue of the change, addition, or deletion beginning on the following July 1 and on or before October 1 for administration and enforcement by the Department of Revenue of the change, addition, or deletion beginning on the following January 1. If a retailer is incorrectly included or excluded from the list of those located in the STAR bond district, the Department of Revenue shall be held harmless if the Department reasonably relied on information provided by the political subdivision.

(j) Any STAR bond project must be approved by the political subdivision within 23 years after the date of the approval of the STAR bond district; however, any amendments to the STAR bond project may occur following that date.

(k) Any developer of a STAR bond project shall commence work on the STAR bond project within 3 years from the date of adoption of the STAR bond project plan. If the developer fails to commence work on the STAR bond project within the 3-year period, funding for the project shall cease and the developer of the project or complex shall have one year to appeal to the political subdivision for a one-time reapproval of the project and funding. If the project is reapproved, the 3-year period for commencement shall begin again on the date of the reapproval. If the project is not reapproved or if the developer again fails to commence work on the STAR bond project within the second 3-year period, the project shall be terminated, and the Department may accept applications for a new STAR bond project in the Economic Development Region.

(l) After the adoption of a STAR bond project plan by the corporate authorities of the political subdivision and approval by the Office of the Governor under subsection (d), the political subdivision may authorize the issuance of STAR bonds in one or more series to finance the STAR bond project or pay or reimburse any eligible project cost within the STAR bond district in accordance with the provisions of this Act.

(m) Except as otherwise provided in subsection (n), the maximum maturity of STAR bonds issued to finance a STAR bond project shall not exceed 23 years from the first date of distribution of State sales tax increment from the STAR bond project to the political subdivision unless the political subdivision extends that maturity by resolution up to a maximum of 35 years from such first distribution date. Any such extension shall require the approval of the Office of the Governor, upon the recommendation of the Directors. In no event shall the maximum maturity date for any STAR bonds exceed that date which is 35 years from the first distribution date of the first STAR bonds issued in a STAR bond district.

(n) The maximum maturity of STAR bonds issued to finance a STAR bond project located within a NOVA district or a NOVA urban district shall not exceed 35 years from the first date of distribution of State sales tax increment from the STAR bond project to the political subdivision.

(Source: P.A. 104-453, eff. 12-12-25.)

(50 ILCS 475/5-35)

Sec. 5-35. Approval of STAR bond projects in NOVA districts and NOVA urban districts. Notwithstanding any other provision of this Act, a STAR bond project may be approved within each STAR bond district designated as a NOVA district or a NOVA urban district. Except as otherwise provided in this Act, approval of a NOVA district or a NOVA urban district shall follow the same procedures applicable to STAR bond district approval as provided in Section 5-20, and that designation shall be determined by the Office of the Governor during the STAR bond district approval process. The NOVA district or NOVA urban district must satisfy the criteria set forth to be considered a NOVA district or NOVA urban district, as applicable, under Section 5-10. Except as otherwise provided in this Act, establishment of a NOVA district or NOVA urban district shall be construed to have the same application and effect as a STAR bond district.

(Source: P.A. 104-453, eff. 12-12-25.)

(50 ILCS 475/5-45)

Sec. 5-45. STAR bonds; source of payment.

(a) Any political subdivision shall have the power to issue STAR bonds in one or more series to finance the undertaking of any STAR bond project in accordance with the provisions of this Act and the Omnibus Bond Acts. Any STAR bond project approved under this Act may be completed in one or more phases, and STAR bonds may be issued, in one or more series, to finance any STAR bond project or phase thereof. STAR bonds may be issued as revenue bonds, alternate bonds, or general obligation bonds as defined in and subject to the procedures provided in the Local Government Debt Reform Act.

STAR bonds may be made payable, both as to principal and interest, from the following revenues, which, to the extent pledged by each respective political subdivision or other public entity for that purpose, shall constitute pledged STAR revenues:

(1) revenues of the political subdivision derived from or held in connection with the undertaking and carrying out of any STAR bond project or projects under this Act;

(2) available private funds and contributions, grants, tax credits, or other financial assistance from the State or federal government;

(3) any taxes created under Section 5-50 and designated as pledged STAR revenues by the political subdivision;

(4) all the local sales tax increment of a municipality, county, or other unit of local government, including an amount equal to the sales tax increment that is received by a municipality from a sales tax securitization corporation based on sales of revenues as of the date of this Act, which amount shall be pledged as a first lien on such receipts;

(5) any special service area taxes collected within the STAR bond district under the Special Service Area Tax Act, which may be used for the purposes of funding project costs or paying debt service on STAR bonds in addition to the purposes contained in the special service area plan;

(6) all the State sales tax increment;

(7) any other revenues appropriated by the political subdivision; and

(8) any combination of these methods.

(b) The political subdivision may pledge the pledged STAR revenues to the repayment of STAR bonds before, simultaneously with, or after the issuance of the STAR bonds.

(c) Bonds issued as revenue bonds shall not be general obligations of the political subdivision, nor, in any event, shall they give rise to a charge against the political subdivision's general credit or taxing powers or be payable out of any funds or properties other than those set forth in subsection (a). The bonds shall so state on their face.

(d) For each STAR bond project financed with STAR bonds payable from the pledged STAR revenues, the political subdivision shall prepare and submit to the Department, the Department of Revenue, the Office of the Governor, and the Governor's Office of Management and Budget by June 1 of each year a report describing the status of the STAR bond project, any expenditures of the proceeds of STAR bonds that have occurred for the preceding calendar year, and any expenditures of the proceeds of the bonds expected to occur in the future, including the amount of pledged STAR revenue, the amount of revenue that has been spent, the projected amount of the revenue, and the anticipated use of the revenue. Each annual report shall be accompanied by an affidavit of the master developer certifying the contents of the report as true to the best of the master developer's knowledge. The Department shall have the right, but not the obligation, to request the Auditor General to review the annual report and the political subdivision's records containing the source information for the report for the purpose of verifying the report's contents. If the Auditor General declines the request for review, the Department shall have the right to select an independent third-party auditor to conduct an audit of the annual report and the political subdivision's records containing the source information for the report. The reasonable cost of the audit shall be paid by the master developer. The master development agreement shall grant the Department and the Auditor General the right to review the records of the political subdivision containing the source information for the report.

(e) As soon as possible after the first day of each month, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer, from the General Revenue Fund to the STAR Bonds Revenue Fund, the State sales tax increment for the second preceding month, less 3% of that amount, which shall be transferred into the Tax Compliance and Administration Fund and shall be used by the Department of Revenue, subject to appropriation, to cover the costs of the Department of Revenue in administering this Act. As soon as possible after the first day of each month, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer, from the Local Government Tax Fund to the STAR Bonds Revenue Fund, the local sales tax increment for the second preceding month, as provided in Section 6z-18 of the State Finance Act and from the County and Mass Transit District Fund to the STAR Bonds Revenue Fund the local sales tax increment for the second preceding month, as provided in Section 6z-20 of the State Finance Act. On or before the 25th day of each calendar month, the Department of Revenue shall prepare and certify to the Comptroller the disbursement of stated sums of money out of the STAR Bonds Revenue Fund to named municipalities and counties, the municipalities and counties to be those entitled to distribution of taxes or penalties paid to the Department of Revenue during the second preceding calendar month. The amount to be paid to each municipality or county shall be the amount of the State sales tax increment and the local sales tax increment (not including credit memoranda or the amount transferred into the Tax Compliance and Administration Fund) collected during the second preceding calendar month by the Department of Revenue from retailers and servicepersons on transactions at places of business located within a STAR bond district in that municipality or county, plus an amount the Department of Revenue determines is necessary to offset any amounts which were erroneously paid to a different taxing body, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department of Revenue, and not including any amount which the Department of Revenue determines is necessary to offset any amounts which are payable to a different taxing body but were erroneously paid to the municipality or county. Within 10 days after receipt by the Comptroller of the disbursement certification to the municipalities and counties, which shall be given to the Comptroller by the Department of Revenue, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in the certification. When certifying the amount of monthly disbursement to a municipality or county under this subsection, the Department of Revenue shall increase or decrease that amount by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall be the amount erroneously disbursed within the 6 months preceding the time a misallocation is discovered.

(f) The corporate authorities of the political subdivision shall deposit the proceeds for the STAR Bonds Revenue Fund into a special fund of the political subdivision called the "[Name of political subdivision] STAR Bond District Revenue Fund" for the purpose of paying or reimbursing STAR bond project costs and obligations incurred in the payment of those costs. If the political subdivision fails to issue STAR bonds within 180 days after the first distribution to the political subdivision from the STAR Bonds Revenue Fund, the Department of Revenue shall cease distribution of the State sales tax increment to the political subdivision, shall transfer any State sales tax increment in the STAR Bonds Revenue Fund to the General Revenue Fund, and shall cease deposits of State sales tax increment amounts into the STAR Bonds Revenue Fund. The political subdivision shall repay all the State sales tax increment distributed to the political subdivision to date, which amounts shall be deposited into the General Revenue Fund. If not repaid within 90 days after notice from the State, the Department of Revenue shall withhold distributions to the political subdivision from the Local Government Tax Fund until the excess amount is repaid, which withheld amounts shall be transferred to the General Revenue Fund. At such time as the political subdivision notifies the Department of Revenue in writing that it has issued STAR Bonds in accordance with this Act and provides the Department with a copy of the political subdivision's official statement, bond purchase agreements, indenture, or other evidence of bond sale, the Department of Revenue shall resume deposits of the State sales tax increment into the STAR Bonds Revenue Fund and distribution of the State sales tax increment to the political subdivision in accordance with this Section.

(g) If at any time after the seventh anniversary of the date of distribution of State sales tax increment from a STAR bond project the Auditor General determines that the percentage of the aggregate proceeds of STAR bonds issued to date that is derived from the State sales tax increment has exceeded 50% of the total development costs of that STAR Bonds project, no additional STAR bonds may be issued for that STAR Bonds project until that percentage is reduced to 50% or below. When the percentage has been reduced to 50% or below, the master developer shall have the right, at its own cost, to obtain a new audit prepared by an independent third-party auditor verifying compliance and shall provide such audit to the Auditor General for review and approval. Upon the Auditor General's determination from the audit that the percentage has been reduced to 50% or below, STAR bonds may again be issued for the STAR bond project.

(h) A new tax increment financing district in a NOVA urban district may be established concurrent with or following the establishment of the NOVA urban district or other arrangement in respect of a property tax assessment freeze and special payment.

(Source: P.A. 104-453, eff. 12-12-25.)

(50 ILCS 475/5-70)

Sec. 5-70. Restrictions. STAR bond districts may lie within an enterprise zone. During any period of time that STAR bonds are outstanding for a STAR bond district, a developer may not use any land located in the STAR bond district, except for a NOVA urban district, for any retail store whose primary business is the sale of automobiles, including trucks and other automotive vehicles with 4 wheels designed for passenger transportation on public streets and thoroughfares. No STAR bond district other than a NOVA urban district may contain more than 900,000 square feet of floor space devoted to traditional retail use, which does not include space devoted to entertainment venues, hotels, warehouse space, storage space, or approved development users.

(Source: P.A. 104-453, eff. 12-12-25.)

Section 10. The Property Tax Code is amended by adding Division 23 to Article 10 and changing as follows:

(35 ILCS 200/Art. 10 Div. 23 heading new)

Division 23. Megaprojects

(35 ILCS 200/10-1005 new)

Sec. 10-1005. Megaproject Assessment Freeze and Payment Law; definitions. This Division 23 may be cited as the Megaproject Assessment Freeze and Payment Law.

As used in this Division:

"Assessment officer" means the chief county assessment officer of the county in which the megaproject is located.

"Assessment period" means the period beginning on the first day of the calendar year after the calendar year in which a megaproject is placed in service and ending on the date when the megaproject no longer qualifies as a megaproject under this Division.

"Base tax year" means the tax year prior to the first calendar year during which the Department issues a megaproject certificate under this Division.

"Base year" means:

(1) the calendar year prior to the calendar year in which the Department issues the megaproject certificate, if the Department issues a megaproject certificate for a project located on the property without granting preliminary approval for the project pursuant to Section 10-940; or

(2) the calendar year prior to the calendar year in which the Department grants that preliminary approval, if the Department grants preliminary approval pursuant to Section 10-940 for a megaproject located on the property.

"Base year valuation" means the assessed value, in the base year, of the property comprising the megaproject.

"Company" means one or more entities whose aggregate investment in the megaproject meets the minimum investment required under this Division. The term "company" includes a company affiliate unless the context clearly indicates otherwise.

"Company affiliate" means an entity that joins with or is an affiliate of a company and that participates in the investment in, or financing of, a megaproject.

"Consumer Price Index" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100.

"Department" means the Department of Commerce and Economic Opportunity.

"Eligible costs" means all costs incurred by or on behalf of, or allocated to, a company, prior to the Department's issuance of the megaproject certificate or during the investment period, to create or construct a megaproject. "Eligible costs" includes, without limitation:

(1) the purchase, site preparation, renovation, rehabilitation, and construction of land, buildings, structures, equipment, and furnishings used for or in the megaproject;

(2) any goods or services for the megaproject that are purchased and capitalized under generally accepted accounting principles, including any organizational costs and research and development costs incurred in Illinois;

(3) capitalized lease costs for land, buildings, structures, and equipment valued at their present value using the interest rate at which the company borrows funds prevailing at the time the company entered into the lease;

(4) infrastructure development costs;

(5) debt service and project financing costs;

(6) noncapitalized research and development costs;

(7) job training and education costs;

(8) lease and relocation costs; and

(9) amounts expended by a company or company affiliate as a nonresponsible party pursuant to a voluntary program of site remediation, including amounts expended to obtain a No Further Remediation Letter from the Illinois Environmental Protection Agency.

"Entity" means a sole proprietor, partnership, firm, corporation, limited liability company, association, or other business enterprise.

"Full-time employee" means an individual who is employed for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as a full-time employee. An individual for whom a W-2 is issued by a professional employer organization is a full-time employee if he or she is employed in the service of the applicant for at least 35 hours each week or renders any other standard of service generally accepted by industry custom or practice as a full-time employment. An owner, operator, or tenant who employs labor or services at a specific site or facility under contract with another may declare one full-time job for every 1,820 man-hours worked per year under the contract. Vacations, paid holidays, and sick time are included in this computation, but overtime is not considered a part of regular hours.

"High Impact Business" means a project that has been designated by the Department as a High Impact Business under Section 5.5 of the Illinois Enterprise Zone Act.

"Incentive agreement" means an agreement between a company, a local municipality, and the taxing districts obligating the company to make the special payment under this Division, in addition to paying property taxes, during the incentive period for a megaproject.

"Incentive period" means the period beginning on the first day of the calendar year after the calendar year in which the megaproject is placed in service and each calendar year thereafter until the earlier of (i) the expiration or termination of the incentive agreement or (ii) the revocation of the megaproject certificate.

"Inducement resolution" means a resolution adopted by the local municipality setting forth the commitment of the local municipality to enter into an incentive agreement.

"Investment period" means the period ending 7 years after the date on which the Department issues the megaproject certificate, or such other longer period of time as the local municipality, the taxing districts, and the company may agree to, not to exceed an initial period of 10 years.

"Local municipality" means the city, village, or incorporated town in which the megaproject is located or, if the megaproject is located in an unincorporated area, the county in which the megaproject is located.

"Megaproject" means the project set forth in the company's tax credit agreement or high impact business designation.

"Megaproject certificate" means a certificate issued by the Department that authorizes an assessment freeze as provided in this Division.

"Minimum investment" means an investment in the megaproject of at least $100,000,000 in eligible costs within the investment period.

"Minority person" means a person who is a citizen or lawful permanent resident of the United States and who is any of the following:

(1) American Indian or Alaska Native (a person having origins in any of the original peoples of North and South America, including Central America, and who maintains tribal affiliation or community attachment).

(2) Asian (a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, but not limited to, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam).

(3) Black or African American (a person having origins in any of the black racial groups of Africa).

(4) Hispanic or Latino (a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race).

(5) Native Hawaiian or Other Pacific Islander (a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands).

"Minority-owned business" means a business that is at least 51% owned by one or more minority persons, or that, in the case of a corporation, has at least 51% of its stock owned by one or more minority persons, and that, in either case, is managed and operated on a daily basis by one or more of the minority individuals who own the business.

"New full-time employee" means a full-time employee who first became employed by the owner, operator, contractor, or tenant of the megaproject during the incentive period or investment period and whose hiring results in a net increase in the owner, operator, contractor, or tenant's total number of full-time Illinois employees.

"New full-time employee" does not include:

(1) a person who was previously employed in Illinois by the applicant or a related family member prior to the onset of the investment or incentive period; or

(2) an individual who has a direct or indirect ownership interest of at least 5% in the profits, capital, or value of the applicant.

"Placed in service" means that the company has commenced its business operations at the megaproject site and has met its job creation requirements under this Section by hiring or causing to be hired at least 100 new full-time employees who provide support to the megaproject's business operations and work in the State of Illinois. If a company pauses or shuts down its business operations for a period of more than 30 days, then the megaproject shall no longer be considered placed in service.

"Project" means land, buildings, and other improvements on the land, including water facilities, sewage treatment and disposal facilities, and all other machinery, apparatuses, equipment, office facilities, related infrastructure, and furnishings that are considered necessary, suitable, or useful by a company and comprise the megaproject, including all such property subject to assessment under the Property Tax Code.

"Special payment" means the annual amount paid in addition to property taxes paid during the incentive period as provided in the incentive agreement.

"Sports stadium" means a facility, stadium, arena, or other structure where athletic contests are held and sports teams practice and perform.

"Tax credit agreement" means an agreement entered into by the company and the Department under the Economic Development for Growing Economy Tax Credit Act, the Reimagining Energy and Vehicles in Illinois Act, or the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act.

"Taxing district" has the meaning given to that term in Section 1-150.

"Termination date" means the last day of a calendar year that is no later than the 23rd year following the first calendar year in which a megaproject is placed in service. A company may apply to the local municipality and taxing districts prior to the termination date for an extension of the termination date beyond the 23rd year for up to 17 additional years, for a total of 40 years, which 17-year extension may, in the case of a megaproject located within a local municipality with a population of 2,000,000 or more, be applied for by the company and approved by the corporate authorities of the local municipality upon the initial application by the company. The corporate authorities of the local municipality and the taxing districts shall approve an extension by resolution upon a finding of substantial public benefit. A copy of the resolution must be delivered to the Department within 30 days of the date the resolution was adopted. If the incentive agreement is terminated under Section 10-1035, then the termination date is the date the agreement is terminated.

(35 ILCS 200/10-1010 new)

Sec. 10-1010. Valuation during incentive period; eligibility.

(a) Property that receives a megaproject certificate from the Department is eligible for an assessment freeze, as provided in this Division, eliminating from consideration, for assessment purposes during the incentive period, the value added to the property by the project and limiting the total valuation of the property during the incentive period to the base year valuation. If the company does not anticipate completing the project within the investment period, then the local municipality and taxing districts may approve one or more extensions of time to complete the project. However, the local municipality and taxing districts may not extend the project for a period that exceeds 5 years after the last day of the investment period. Unless approved as part of the original incentive agreement, the corporate authorities of the local municipality and taxing districts may approve an extension under this subsection by resolution, a copy of which must be delivered to the Department within 30 days after the date the resolution is adopted.

(b) To qualify for a megaproject certificate, the company must:

(1) make the minimum investment in the megaproject during the investment period;

(2) enter into an incentive agreement with the local municipality and taxing districts as described in this Division;

(3) enter into a project labor agreement with the applicable local building trades council prior to the commencement of any demolition, building construction, or building renovation related to the megaproject;

(4) establish the goal of awarding 20% of the total dollar amount of contracts that are related to the megaproject and are awarded by the company during each calendar year to minority-owned businesses;

(5) create at least 100 new full-time jobs as a result of the megaproject; and

(6) have executed a tax credit agreement with the Department or received a high impact business designation from the Department.

(c) For purposes of this Division, if a single company enters into a financing arrangement of the type described in subsection (b) of Section 10-1055, the investment in or financing of the property by a developer, lessor, financing entity, or other third party in accordance with this arrangement is considered investment by the company. Investment by a related person to the company is considered investment by the company.

(35 ILCS 200/10-1015 new)

Sec. 10-1015. Incentive agreement; assessment freeze for megaprojects; incentive period; inducement resolution; location of the project; criteria to qualify.

(a) To obtain the benefits provided in this Division, the company shall apply in writing to the local municipality and taxing districts to enter into an incentive agreement with the municipality and taxing districts, in the form and manner required by the local municipality and taxing districts, respectively, and shall certify to the facts asserted in the application.

(b) The corporate authorities of the local municipality, prior to entering into an incentive agreement under this Section, shall hold a public hearing to consider the application. The amount and terms of the proposed special payment and the duration of the incentive agreement shall be considered at the public hearing.

(c) Copies of the completed application shall be provided to each taxing district for which property taxes were assessed on the property for the immediately preceding tax year. Those copies shall be provided at least 30 days prior to the scheduled public hearing at which the corporate authorities of the local municipality will consider the application.

(d) The company, the local municipality, and the taxing districts shall enter into an incentive agreement requiring the special payment described in Section 10-1020. The corporate authorities of the local municipality shall adopt an ordinance approving the incentive agreement.

(e) If an incentive agreement is not executed within 5 years after the local municipality's adoption of an inducement resolution, expenditures incurred by the company more than 5 years prior to the execution of the incentive agreement or, in the case of a megaproject located within a local municipality with a population of 2,000,000 or more, more than 10 years prior to the execution of the incentive agreement, shall not qualify as part of the minimum investment.

(f) To be eligible to enter into an incentive agreement under this Division, the company must commit to a project that meets the investment and new job creation requirements set forth in the company's tax credit agreement or high impact business designation. In no event shall the company be required to invest less than $100,000,000 or create fewer than 100 new full-time jobs.

(35 ILCS 200/10-1020 new)

Sec. 10-1020. Contents of incentive agreement.

(a) The incentive agreement under Section 10-1015 must require the company to pay, or be responsible for the payment of, an annual special payment to the local municipality and the taxing districts, beginning with the first tax year for which the assessment freeze under this Division is applied to the megaproject. The amount of the special payment shall be established by the local municipality and taxing districts in the incentive agreement and may be a fixed amount for the duration of the incentive period or may be subject to adjustment (downward or upward) based on factors memorialized in the incentive agreement.

Unless the special payment is negotiated as a fixed payment for the duration of the incentive period, the parties shall conduct an impact analysis study on the megaproject every 5 years, and the special payment shall be adjusted based on the results of that study; provided, however, the adjustment shall not be less than the initial special payment adjusted for inflation as measured by the Consumer Price Index.

The portion of the special payment due to the local school districts shall be increased annually by the lesser of (i) 5% or (ii) the percentage increase, if any, in the Consumer Price Index for the 12 months ending in September of the immediately preceding calendar year, and may be further increased or decreased every 5 years based on the results of the impact analysis study.

(b) The incentive agreement shall obligate the company to operate the megaproject at the designated project location for a minimum of 20 years.

(c) The incentive agreement may contain such other terms and conditions as are mutually agreeable to the local municipality, the taxing districts, and the company and are consistent with the requirements of this Division, including, without limitation, operational and additional job creation requirements.

(d) In addition, all incentive agreements entered into pursuant to Section 10-1015 must include, as the first portion of the document, a recapitulation of the remaining contents of the document, which shall include the following:

(1) the legal name of each party to the agreement;

(2) the street address of the project and the property subject to the agreement;

(3) the agreed minimum investment, which shall not be less than the investment amount required in the tax credit agreement or high impact business designation;

(3.5) the agreed number of new jobs to be created, which shall not be less than the number of new jobs required in the tax credit agreement or high impact business designation;

(4) the term of the agreement;

(5) a schedule showing the amount of the special payment and its calculation for each year of the agreement;

(6) a schedule showing the amount to be distributed annually to each taxing district, as set forth in the incentive agreement;

(7) any other feature or aspect of the agreement which may affect the calculation of items (5) and (6) of this subsection; and

(8) the party or parties to the agreement who are responsible for updating the information contained in the summary document.

(35 ILCS 200/10-1025 new)

Sec. 10-1025. Minimum job creation requirements.

(a) The company must hire the same number of new full-time employees as is required in the company's tax credit agreement or high impact business designation, which in no event shall be less than 100. These new full-time employees must be hired to support the business operations of the megaproject and be located within the State of Illinois.

(b) A company may not satisfy the requirements of this Section by relocating jobs from one site in Illinois to another site in Illinois.

(35 ILCS 200/10-1030 new)

Sec. 10-1030. Installment bills; distribution of special payments.

(a) The local municipality shall prepare a bill for the company for each installment of the special payment according to the schedule set forth in paragraph (5) of subsection (d) of Section 10-1020, or as modified pursuant to paragraph (7) of subsection (d) of Section 10-925, and the company shall make direct payments to the affected taxing entities according to the schedule in paragraph (6) of subsection (d) of Section 10-1020 or as modified in paragraph (7) of subsection (d) of Section 10-1020.

(b) The company shall make direct payments of the special payment to the taxing districts associated with the megaproject within 30 days after receipt by the company of the bill prepared by the local municipality.

(c) Misallocations of the special payments may be corrected by adjusting later distributions, but these adjustments must be made in the next succeeding year following identification and resolution of the misallocation. To the extent that distributions have been made improperly in previous years, claims for adjustment must be made within one year of the distribution.

(35 ILCS 200/10-1035 new)

Sec. 10-1035. Termination of incentive agreement; automatic termination; minimum level of investment and new job creation required to remain qualified for assessment freeze.

(a) The local municipality, the taxing districts, and the company may mutually agree to terminate the incentive agreement at any time. From the date of termination, the megaproject is subject to assessment on the basis of the then-current fair cash value.

(b) An incentive agreement shall be terminated if the company fails to satisfy the minimum investment level or the job creation requirements provided in this Division. If the incentive agreement is terminated under this subsection, the megaproject is subject to assessment on the basis of the then-current fair cash value beginning in the tax year during which the termination occurs.

(c) An incentive agreement shall terminate if, at any time, the company no longer has the minimum level of new job creation and investment as provided in this Division, without regard to depreciation.

(35 ILCS 200/10-1040 new)

Sec. 10-1040. Megaproject administration. The administration of a megaproject shall be under the jurisdiction of the local municipality that approved the incentive agreement by ordinance. Each local municipality that approves an incentive agreement by ordinance shall, by ordinance, designate a Megaproject Administrator for the megaproject within its jurisdiction. A Megaproject Administrator must be an officer or employee of the municipality or county. The Megaproject Administrator shall be the liaison between the approving municipality or county, the Department, and the Department of Revenue.

(35 ILCS 200/10-1045 new)

Sec. 10-1045. Megaproject applications; certification as a megaproject and revocation of certification.

(a) The Department shall receive applications for megaproject certificates under this Division. The Department shall promptly notify the assessment officer when the Department receives an application under this Section. The Department's rules shall provide that an applicant may request preliminary approval of the megaproject before the project begins, before the applicant has entered into a fully executed incentive agreement with the local municipality and taxing districts, or before the project has been placed in service.

(b) An applicant for a megaproject certificate under this Division must provide evidence to the Department of a fully executed incentive agreement between the company, the local municipality, and the taxing districts as described in this Division.

(c) An applicant for a megaproject certificate under this Division must provide evidence to the Department of a fully executed project labor agreement entered into with the applicable local building trades council prior to the commencement of any demolition, building construction, or building renovation at the project. If the demolition, building construction, or building renovation begins after the application is approved, then the applicant must transmit a copy of the fully executed project labor agreement to the Department as soon as possible after the agreement is executed.

(d) An applicant for a megaproject certificate under this Division must provide evidence to the Department that the company has established the goal of awarding 20% of the total dollar amount of contracts awarded during each calendar year by the company, that are related to the project, to minority-owned businesses.

(e) The Department shall approve an application for a megaproject certificate if the Department finds that the project meets the requirements of this Division.

(f) Upon approval of the application, the Department shall issue a megaproject certificate to the applicant and transmit a copy to the assessment officer and the Department of Revenue. The certificate shall identify the property on which the megaproject is located.

(g) For each calendar year following issuance of the megaproject certificate, until the minimum investment and new job creation requirements have been met and the megaproject has been placed in service, the company shall deliver a report to the Department on the status of construction or creation of the megaproject and the amount of minimum investment made in the megaproject during the preceding calendar year. If the Department determines, in accordance with the Administrative Review Law and the Illinois Administrative Procedure Act, that a project for which a certificate has been issued has not met the minimum investment and job creation requirements of this Division within the investment period, the Department shall revoke the certificate by written notice to the taxpayer of record and transmit a copy of the revocation to the assessment officer.

(h) If the local municipality notifies the Department that the incentive agreement between the company, the local municipality, and the taxing districts has been terminated, the Department shall revoke the certificate by written notice to the taxpayer of record and transmit a copy of the revocation to the assessment officer.

(35 ILCS 200/10-1050 new)

Sec. 10-1050. Computation of valuation.

(a) Upon receipt of the megaproject certificate from the Department, the assessment officer shall determine the base year valuation and shall make a notation on each statement of assessment during the assessment period that the valuation of the project is based upon the issuance of a megaproject certificate.

(b) Upon revocation of a megaproject certificate, the assessment officer shall compute the assessed valuation of the project on the basis of the then-current fair cash value of the property.

(35 ILCS 200/10-1055 new)

Sec. 10-1055. Transfers of interest in a megaproject; sale-leaseback arrangement; requirements.

(a) Subject to the terms of the incentive agreement between the company, the local municipality, and the taxing district, ownership of or any interest in the megaproject and any and all related project property, including, without limitation, transfers of indirect beneficial interests and equity interests in a company owning a megaproject, shall not affect the assessment freeze or the validity of the megaproject certificate issued under this Division. Notwithstanding the provisions of this subsection, the incentive agreement shall be a covenant running with the land.

(b) A company may enter into lending, financing, security, leasing, or similar arrangements, or a succession of such arrangements, with a financing entity concerning all or part of a project including, without limitation, a sale-leaseback arrangement, equipment lease, build-to-suit lease, synthetic lease, nordic lease, defeased tax benefit, or transfer lease, an assignment, sublease, or similar arrangement, or succession of those arrangements, with one or more financing entities concerning all or part of a project, regardless of the identity of the income tax or fee owner of the megaproject. Neither the original transfer to the financing entity nor the later transfer from the financing entity back to the company, pursuant to terms in the sale-leaseback agreement, shall affect the assessment freeze or the validity of the megaproject certificate issued under this Division, regardless of whether the income tax basis is changed for income tax purposes.

(c) The Department must receive notice of all transfers undertaken with respect to other projects to effect a financing. Notice shall be made in writing within 60 days after the transfer, shall identify each transferee, and shall contain other information required by the Department with the appropriate returns. Failure to meet this notice requirement does not adversely affect the assessment freeze.

(35 ILCS 200/10-1060 new)

Sec. 10-1060. Minimum investment by company affiliates. To be eligible for the benefits of this Division, a company must invest the minimum investment. Investments by company affiliates during the investment period may be applied toward the minimum investment under this Division regardless of whether the company affiliate was part of the project. To qualify for the assessment freeze, the minimum investment must be made in connection with the megaproject.

(35 ILCS 200/10-1065 new)

Sec. 10-1065. Projects to be valued at fair cash value for purposes of bonded indebtedness and limitations on property tax extensions. Projects to which an assessment freeze applies pursuant to this Division shall be valued at their fair cash value for purposes of calculating a municipality's general obligation bond limits and a taxing district's limitation on tax extensions.

(35 ILCS 200/10-1070 new)

Sec. 10-1070. Abatements. Any taxing district, upon a majority vote of its governing authority, may, after the determination of the assessed valuation as set forth in this Division, order the clerk of the appropriate municipality or county to abate any portion of real property taxes otherwise levied or extended by the taxing district on a megaproject.

(35 ILCS 200/10-1075 new)

Sec. 10-1075. Filing of returns, contracts, and other information; due date of payments and returns.

(a) The company and the local municipality shall file notices, reports, and other information as required by the Department.

(b) Special payments are due at the same time as property tax payments and property tax returns are due for the megaproject property.

(c) Failure to make a timely special payment results in the assessment of penalties as if the payment were a delinquent property tax payment or return.

(d) Within 30 days after the date of execution of an incentive agreement, a copy of the incentive agreement must be filed with the Department, the chief county assessment officer, and the county auditor for the county in which the megaproject is located.

(35 ILCS 200/10-1080 new)

Sec. 10-1080. Rules. The Department may issue rulings and adopt rules as necessary to carry out the purpose of this Division.

(35 ILCS 200/10-1085 new)

Sec. 10-1085. Prohibition on multiple credits, exemptions, and freezes. An applicant for a megaproject certificate who qualifies for an assessment freeze under this Section is not entitled to any other property tax credits, exemptions, or assessment freezes relating to the megaproject.

(35 ILCS 200/10-1090 new)

Sec. 10-1090. Building materials exemption for megaprojects. An applicant that is eligible for a megaproject certificate under this Division 23 of Article 10 is also eligible for the building materials exemption under Section 605-1115 of the Civil Administrative Code of Illinois.

(35 ILCS 200/10-1095 new)

Sec. 10-1095. Professional Sports stadiums. Notwithstanding any other provision of this Act, the Department shall not approve any megaproject certificate application that includes as part of the application the development of any facility, stadium, arena or other structure if: (1) a purpose of the location, facility, stadium, arena, or other structure is the holding of professional sports contests; or (2) the megaproject location, facility, stadium, arena, or other structure is within a one-mile radius of any structure that is developed on or after the effective date of this Act and has as one of its purposes the holding of professional sports contests, except for a megaproject located within a one-mile radius of an existing stadium that may be redeveloped on or after the effective date of this Act and has as one of its purposes the holding of professional sports contents

(35 ILCS 200/10-1096 new)

Sec. 10-1096. Tax Increment Financing districts. A project that is located and operated in a Tax Increment Financing (TIF) district or TIF designated area is not eligible for a megaproject assessment freeze under this Section. The agreement shall provide that the megaproject certificate is void if an area on which the megaproject is located is designated as a TIF district or TIF designated area.

(35 ILCS 200/10-1097 new)

Sec. 10-1097. Invalidity. If all or any part of this Division is determined to be unconstitutional or otherwise unenforceable by a court of competent jurisdiction, a company has 180 days from the date of the determination to transfer the megaproject's title to an authorized economic development authority that qualifies for property tax assessment under this Division.