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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Trade | ||||||||||||||||||||||||||
5 | Show Income Tax Credit Act.
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6 | Section 5. Purpose. The General Assembly finds that the | ||||||||||||||||||||||||||
7 | Illinois economy is highly vulnerable to other states that have | ||||||||||||||||||||||||||
8 | major financial incentive programs targeted to the trade show | ||||||||||||||||||||||||||
9 | industry. Because of the incentive programs of these competitor | ||||||||||||||||||||||||||
10 | locations, Illinois must move aggressively with new business | ||||||||||||||||||||||||||
11 | development investment tools so that Illinois is more | ||||||||||||||||||||||||||
12 | competitive in site location decision-making for trade shows, | ||||||||||||||||||||||||||
13 | especially large trade shows. In an increasingly global | ||||||||||||||||||||||||||
14 | economy, Illinois' long-term development will benefit from | ||||||||||||||||||||||||||
15 | rational, strategic use of State resources in support of trade | ||||||||||||||||||||||||||
16 | show development and growth. It is the purpose of this Act to | ||||||||||||||||||||||||||
17 | preserve and expand the existing human infrastructure for the | ||||||||||||||||||||||||||
18 | trade show industry in Illinois. It is the policy of this State | ||||||||||||||||||||||||||
19 | to promote and encourage the training and hiring of Illinois | ||||||||||||||||||||||||||
20 | residents who represent the diversity of the Illinois | ||||||||||||||||||||||||||
21 | population through the creation and implementation of | ||||||||||||||||||||||||||
22 | training, education, and recruitment programs organized in | ||||||||||||||||||||||||||
23 | cooperation with Illinois colleges and universities, labor |
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1 | organizations, and the trade show industry.
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2 | Section 10. Definitions. As used in this Act:
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3 | "Accredited trade show" means a trade show, not including a | ||||||
4 | show targeted to consumers or the general public, held in | ||||||
5 | Illinois that occupies over 50,000 square feet of exhibit space | ||||||
6 | and uses the customary labor associated with assembling the | ||||||
7 | show. The show itself must be from one to 11 days in duration, | ||||||
8 | and the time from the first day of installation to the last day | ||||||
9 | of dismantling must be no more than 25 days.
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10 | "Accredited trade show certificate" means a certificate | ||||||
11 | issued by the
Department certifying that the trade show is an | ||||||
12 | accredited trade show that
meets the guidelines of this Act.
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13 | "Applicant" means a taxpayer that is a trade show manager.
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14 | "Credit" means
an amount equal to 25% of the Illinois labor
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15 | expenditure approved by the Department, up to $10,000 per | ||||||
16 | applicant per trade show. For a trade show that is new to | ||||||
17 | Illinois or has not located in Illinois during the previous 5 | ||||||
18 | years, the percentage is 45%. For a trade show that enters into | ||||||
19 | a binding multi-year contract to locate in Illinois, the | ||||||
20 | percentage is 45% for the second and each subsequent year of | ||||||
21 | the contract.
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22 | "Department" means the Department of Commerce and Economic | ||||||
23 | Opportunity.
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24 | "Director" means the Director of Commerce and Economic | ||||||
25 | Opportunity.
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1 | "Illinois labor expenditure" means
salary or wages paid to | ||||||
2 | employees of the
applicant for installation and dismantling of | ||||||
3 | an accredited trade show. To qualify as an Illinois labor | ||||||
4 | expenditure, the expenditure must be:
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5 | (1) Reasonable in the circumstances.
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6 | (2) Directly attributable to the accredited trade | ||||||
7 | show.
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8 | (3) Paid in the tax year
for which the applicant is | ||||||
9 | claiming the credit
or no later than 60 days after the end | ||||||
10 | of the tax
year.
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11 | (4) Paid to persons resident in Illinois at the time | ||||||
12 | the payments were
made.
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13 | (5) Paid for services rendered in Illinois.
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14 | Section 15. Powers of the Department. The Department, in | ||||||
15 | addition to those
powers granted under the Civil Administrative | ||||||
16 | Code of Illinois, is granted and
has all the powers necessary | ||||||
17 | or convenient to carry out and effectuate the
purposes and | ||||||
18 | provisions of this Act, including, but not limited to, power | ||||||
19 | and
authority to:
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20 | (a) Adopt rules deemed necessary and appropriate for the | ||||||
21 | administration of
the tax credit program; establish forms for | ||||||
22 | applications, notifications,
contracts, or any other | ||||||
23 | agreements; and accept applications at any time during
the | ||||||
24 | year.
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25 | (b) Assist applicants pursuant to the provisions of this |
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1 | Act
to promote, foster, and
support trade shows and the related | ||||||
2 | job creation or retention within the
State.
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3 | (c) Gather information and conduct inquiries, in the manner | ||||||
4 | and by the
methods as it deems desirable, including any | ||||||
5 | information required for the Department to comply with Section | ||||||
6 | 45 and, without limitation, gathering
information with respect | ||||||
7 | to applicants for the purpose of making any
designations or | ||||||
8 | certifications necessary or desirable or to gather information
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9 | to assist the Department with any recommendation or guidance in | ||||||
10 | the furtherance
of the purposes of this Act, including, but not | ||||||
11 | limited to, information as to
whether the applicant | ||||||
12 | participated in training, education, and recruitment
programs | ||||||
13 | that are organized in cooperation with Illinois colleges and
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14 | universities, labor organizations, and the trade show | ||||||
15 | industry, and are
designed to promote and encourage the | ||||||
16 | training and hiring of Illinois residents
who represent the | ||||||
17 | diversity of the Illinois population.
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18 | (d) Provide for sufficient personnel to permit | ||||||
19 | administration, staffing,
operation, and related support | ||||||
20 | required to adequately discharge its duties and
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21 | responsibilities described in this Act from funds as may be | ||||||
22 | appropriated by the
General Assembly for the administration of | ||||||
23 | this Act.
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24 | (e) Require applicants, upon written request, to issue any | ||||||
25 | necessary
authorization to the appropriate federal, state, or | ||||||
26 | local authority for the
release of information concerning a |
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1 | project being considered under the
provisions of this Act, with | ||||||
2 | the information requested to include, but not be
limited to, | ||||||
3 | financial reports, returns, or records relating to the
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4 | applicant or the accredited trade show.
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5 | (f) Require that an applicant must at all times keep proper | ||||||
6 | books of record
and account in accordance with generally | ||||||
7 | accepted accounting principles
consistently applied, with the | ||||||
8 | books, records, or papers related to the
accredited trade show | ||||||
9 | in the custody or control of the taxpayer open for
reasonable
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10 | Department inspection and audits, and including, without | ||||||
11 | limitation, the making
of copies of the books, records, or | ||||||
12 | papers, and the inspection or appraisal of
any of the
assets of | ||||||
13 | the applicant or the accredited trade show.
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14 | (g) Take whatever actions are necessary or appropriate to | ||||||
15 | protect the
State's interest in the event of bankruptcy, | ||||||
16 | default, foreclosure, or
noncompliance with the terms and | ||||||
17 | conditions of financial assistance or
participation required | ||||||
18 | under this Act, including the power to sell, dispose,
lease, or | ||||||
19 | rent, upon terms and conditions determined by the Director to | ||||||
20 | be
appropriate, real or personal property that the Department | ||||||
21 | may receive as a
result of these actions.
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22 | Section 20. Tax credit awards. Subject to the conditions | ||||||
23 | set forth in this Act, an applicant is entitled to a credit as | ||||||
24 | approved by the Department under Section 40 of this Act.
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1 | Section 25. Application for certification of accredited | ||||||
2 | trade show.
Any applicant proposing a trade show located or
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3 | planned to be located in Illinois may request an accredited | ||||||
4 | trade show
certificate
by formal application to the Department.
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5 | Section 30. Review of application for accredited trade show | ||||||
6 | certificate.
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7 | (a) In
determining whether to issue an accredited trade | ||||||
8 | show certificate,
the Department must determine that a | ||||||
9 | preponderance of the following conditions
exist:
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10 | (1) The applicant's trade show intends to make the | ||||||
11 | expenditure in the
State required for certification.
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12 | (2) The applicant's trade show is economically sound | ||||||
13 | and will benefit the
people of the State of Illinois by | ||||||
14 | increasing opportunities for employment and
strengthen the | ||||||
15 | economy of Illinois.
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16 | (3) The applicant has filed a diversity plan with the | ||||||
17 | Department outlining specific goals (i) for hiring | ||||||
18 | minority persons and females, as defined in the Business | ||||||
19 | Enterprise for Minorities, Females, and Persons with | ||||||
20 | Disabilities Act, and (ii) for using vendors receiving | ||||||
21 | certification under the Business Enterprise for | ||||||
22 | Minorities, Females, and Persons with Disabilities Act; | ||||||
23 | the Department has approved the plan as meeting the | ||||||
24 | requirements established by the Department; and the | ||||||
25 | Department has verified that the applicant has met or made |
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1 | good-faith efforts in achieving those goals. The | ||||||
2 | Department must adopt any rules that are necessary to | ||||||
3 | ensure compliance with the provisions of this item (3) and | ||||||
4 | that are necessary to require that the applicant's plan | ||||||
5 | reflects the diversity of this State.
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6 | (4) The applicant's trade show application
indicates | ||||||
7 | whether the applicant intends to participate in training, | ||||||
8 | education,
and
recruitment programs that are organized in | ||||||
9 | cooperation with Illinois colleges
and
universities,
labor | ||||||
10 | organizations, and the trade show industry and are designed | ||||||
11 | to
promote
and
encourage the training and hiring of | ||||||
12 | Illinois residents who represent the
diversity of the
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13 | Illinois population.
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14 | (5) That, if not for the credit, the applicant's trade | ||||||
15 | show would not
occur in
Illinois, which may be demonstrated | ||||||
16 | by any means including, but not limited to,
evidence that | ||||||
17 | the applicant has multi-state or international location | ||||||
18 | options
and could reasonably and efficiently locate | ||||||
19 | outside of the State, or
demonstration that at least one | ||||||
20 | other state or nation is being considered for
the trade | ||||||
21 | show, or evidence that the receipt of the credit is a major | ||||||
22 | factor in
the
applicant's decision and that without the | ||||||
23 | credit the applicant likely would
not create or retain jobs | ||||||
24 | in Illinois, or demonstration that receiving the
credit is | ||||||
25 | essential to the applicant's decision to create or retain | ||||||
26 | new jobs in
the State.
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1 | (6) Awarding the credit will result in an overall | ||||||
2 | positive impact
to the State, as determined by the | ||||||
3 | Department using the best available
data.
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4 | (b) If any of the provisions in this Section conflict with | ||||||
5 | any existing
collective
bargaining agreements, the terms and | ||||||
6 | conditions of those collective bargaining
agreements shall | ||||||
7 | control.
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8 | Section 35. Issuance of Tax Credit Certificate.
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9 | (a) In order to qualify for a tax credit under this Act, an | ||||||
10 | applicant must
file an application, on forms prescribed by the | ||||||
11 | Department, providing
information necessary to calculate the | ||||||
12 | tax credit, and any additional
information as required by the | ||||||
13 | Department.
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14 | (b) Upon satisfactory review of the application, the | ||||||
15 | Department shall issue a
Tax Credit Certificate stating the | ||||||
16 | amount of the tax credit to which the
applicant is entitled.
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17 | Section 40. Amount, duration, and transfer of the credit. | ||||||
18 | The amount of the credit awarded under this Act is based on the | ||||||
19 | amount of the Illinois labor expenditure and Illinois | ||||||
20 | production spending approved by the Department for the | ||||||
21 | production as set forth under Section 10. The duration of the | ||||||
22 | credit may not exceed one taxable year. All or part of a credit | ||||||
23 | may be transferred to another taxpayer for at least 75% but not | ||||||
24 | more than 85% of the amount of the credit.
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1 | Section 43. Training programs for skills in critical | ||||||
2 | demand. To accomplish the purposes of this Act, the Department | ||||||
3 | may use the training programs provided for Illinois under | ||||||
4 | Section 605-800 of the Department of Commerce and Economic | ||||||
5 | Opportunity Law of the Civil Administrative Code of Illinois.
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6 | Section 45. Evaluation of tax credit program; reports to | ||||||
7 | the General Assembly. | ||||||
8 | (a) The Department shall evaluate the tax credit program. | ||||||
9 | The evaluation must include an assessment of the effectiveness | ||||||
10 | of the program in creating and retaining new jobs in Illinois | ||||||
11 | and of the revenue impact of the program, and may include a | ||||||
12 | review of the practices and experiences of other states or | ||||||
13 | nations with similar programs. Upon completion of this | ||||||
14 | evaluation, the Department shall determine the overall success | ||||||
15 | of the program, and may make a recommendation to extend, | ||||||
16 | modify, or not extend the program based on this evaluation. | ||||||
17 | (b) At the end of each fiscal quarter, the Department must | ||||||
18 | submit to the General Assembly a report that includes, without | ||||||
19 | limitation, the following information: | ||||||
20 | (1) the economic impact of the tax credit program,
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21 | including the number of jobs created and retained, | ||||||
22 | including whether the job positions are entry level, | ||||||
23 | management, talent-related, vendor-related, or trade | ||||||
24 | show-related; |
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1 | (2) the amount of trade show spending brought to
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2 | Illinois, including the amount of spending and type of | ||||||
3 | Illinois vendors hired in connection with an accredited | ||||||
4 | trade show; and | ||||||
5 | (3) an overall picture of whether the human
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6 | infrastructure of the trade show industry in Illinois | ||||||
7 | reflects the geographical, racial and ethnic, gender, and | ||||||
8 | income-level diversity of the State of Illinois.
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9 | (c) At the end of each fiscal year, the Department must
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10 | submit to the General Assembly a report that includes, without | ||||||
11 | limitation, the following information: | ||||||
12 | (1) an identification of each vendor that provided
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13 | goods or services that were included in an accredited trade | ||||||
14 | show's Illinois production spending; | ||||||
15 | (2) the amount paid to each identified vendor by the
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16 | accredited trade show; | ||||||
17 | (3) for each identified vendor, a statement as to
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18 | whether the vendor is a minority owned business or a female | ||||||
19 | owned business, as defined under Section 2 of the Business | ||||||
20 | Enterprise for Minorities, Females, and Persons with | ||||||
21 | Disabilities Act; and | ||||||
22 | (4) a description of any steps taken by the
Department | ||||||
23 | to encourage accredited trade shows to use vendors who are | ||||||
24 | a minority owned business or a female owned business. | ||||||
25 | Section 50. Program terms and conditions.
Any documentary |
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1 | materials or data made available or received by
any agent or | ||||||
2 | employee of the
Department are confidential and are not public | ||||||
3 | records to the extent that the
materials or data consist of | ||||||
4 | commercial or financial information
regarding the operation of | ||||||
5 | the trade show of the applicant for or
recipient of any tax | ||||||
6 | credit under this Act.
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7 | Section 90. The Illinois Income Tax Act is amended by | ||||||
8 | adding Section 218 as follows: | ||||||
9 | (35 ILCS 5/218 new)
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10 | Sec. 218. Trade show income tax credit. For tax years | ||||||
11 | beginning on or
after January 1, 2010, a taxpayer who has been | ||||||
12 | awarded a tax credit under the
Trade Show Income Tax Credit Act | ||||||
13 | is entitled to a credit against the
taxes imposed under | ||||||
14 | subsections (a) and (b) of Section 201 of this Act in an
amount | ||||||
15 | determined by the Department of Commerce and Economic | ||||||
16 | Opportunity under those Acts. If the taxpayer is a partnership | ||||||
17 | or
Subchapter S corporation, the credit is allowed to the | ||||||
18 | partners or shareholders
in accordance with the determination | ||||||
19 | of income and distributive share of income
under Sections 702 | ||||||
20 | and 704 and Subchapter S of the Internal Revenue Code. | ||||||
21 | A transfer of this credit may be made by the taxpayer | ||||||
22 | earning the credit within one year after the credit is awarded | ||||||
23 | in accordance with rules adopted by the Department of Commerce | ||||||
24 | and Economic Opportunity.
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1 | The
Department, in cooperation with the Department of | ||||||
2 | Commerce and Economic Opportunity, must prescribe rules to | ||||||
3 | enforce and administer the provisions of this
Section. This | ||||||
4 | Section is exempt from the provisions of Section 250 of this
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5 | Act.
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6 | The credit may not be carried back. If the amount of the | ||||||
7 | credit exceeds the tax liability for the year, the
excess may | ||||||
8 | be carried forward and applied to the tax liability of the 5 | ||||||
9 | taxable
years following the excess credit year. The credit
| ||||||
10 | shall be applied to the earliest year for which there is a tax | ||||||
11 | liability. If
there are credits from more than one tax year | ||||||
12 | that are available to offset a
liability, the earlier credit | ||||||
13 | shall be applied first. In no event shall a credit
under this | ||||||
14 | Section reduce the taxpayer's
liability to less than
zero.
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15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
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