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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Enterprise Zone Act is amended by | ||||||||||||||||||||||||
5 | changing Section 5.5 as follows:
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6 | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
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7 | Sec. 5.5. High Impact Business.
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8 | (a) In order to respond to unique opportunities to assist | ||||||||||||||||||||||||
9 | in the
encouragement, development, growth and expansion of the | ||||||||||||||||||||||||
10 | private sector through
large scale investment and development | ||||||||||||||||||||||||
11 | projects, the Department is authorized
to receive and approve | ||||||||||||||||||||||||
12 | applications for the designation of "High Impact
Businesses" in | ||||||||||||||||||||||||
13 | Illinois subject to the following conditions:
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14 | (1) such applications may be submitted at any time | ||||||||||||||||||||||||
15 | during the year;
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16 | (1.5) any application submitted by a business seeking | ||||||||||||||||||||||||
17 | designation as a High Impact Business pursuant to | ||||||||||||||||||||||||
18 | subdivision (a)(3)(E) of this Section shall include a | ||||||||||||||||||||||||
19 | certification by that business that it intends to pay not | ||||||||||||||||||||||||
20 | less than the general prevailing hourly wages to all | ||||||||||||||||||||||||
21 | laborers and workers employed by or on behalf of that | ||||||||||||||||||||||||
22 | business at the site of that business's new wind power | ||||||||||||||||||||||||
23 | facility in the construction of that new wind power |
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1 | facility; for purposes of this item (1.5), "general | ||||||
2 | prevailing hourly wages" means the hourly prevailing wages | ||||||
3 | published by the Illinois Department of Labor for the | ||||||
4 | county in which the new wind power facility is located (or | ||||||
5 | the average of such prevailing wages if the new wind power | ||||||
6 | facility is located in more than one county);
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7 | (2) such business is not located, at the time of | ||||||
8 | designation, in
an enterprise zone designated pursuant to | ||||||
9 | this Act;
| ||||||
10 | (3) the business intends to do one or more of the | ||||||
11 | following:
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12 | (A) the business intends to make a minimum | ||||||
13 | investment of
$12,000,000 which will be placed in | ||||||
14 | service in qualified property and
intends to create 500 | ||||||
15 | full-time equivalent jobs at a designated location
in | ||||||
16 | Illinois or intends to make a minimum investment of | ||||||
17 | $30,000,000 which
will be placed in service in | ||||||
18 | qualified property and intends to retain 1,500
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19 | full-time jobs at a designated location in Illinois.
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20 | The business must certify in writing that the | ||||||
21 | investments would not be
placed in service in qualified | ||||||
22 | property and the job creation or job
retention would | ||||||
23 | not occur without the tax credits and exemptions set | ||||||
24 | forth
in subsection (b) of this Section. The terms | ||||||
25 | "placed in service" and
"qualified property" have the | ||||||
26 | same meanings as described in subsection (h)
of Section |
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1 | 201 of the Illinois Income Tax Act; or
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2 | (B) the business intends to establish a new | ||||||
3 | electric generating
facility at a designated location | ||||||
4 | in Illinois. "New electric generating
facility", for | ||||||
5 | purposes of this Section, means a newly-constructed
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6 | electric
generation plant
or a newly-constructed | ||||||
7 | generation capacity expansion at an existing electric
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8 | generation
plant, including the transmission lines and | ||||||
9 | associated
equipment that transfers electricity from | ||||||
10 | points of supply to points of
delivery, and for which | ||||||
11 | such new foundation construction commenced not sooner
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12 | than July 1,
2001. Such facility shall be designed to | ||||||
13 | provide baseload electric
generation and shall operate | ||||||
14 | on a continuous basis throughout the year;
and (i) | ||||||
15 | shall have an aggregate rated generating capacity of at | ||||||
16 | least 1,000
megawatts for all new units at one site if | ||||||
17 | it uses natural gas as its primary
fuel and foundation | ||||||
18 | construction of the facility is commenced on
or before | ||||||
19 | December 31, 2004, or shall have an aggregate rated | ||||||
20 | generating
capacity of at least 400 megawatts for all | ||||||
21 | new units at one site if it uses
coal or gases derived | ||||||
22 | from coal
as its primary fuel and
shall support the | ||||||
23 | creation of at least 150 new Illinois coal mining jobs, | ||||||
24 | or
(ii) shall be funded through a federal Department of | ||||||
25 | Energy grant before December 31, 2010 and shall support | ||||||
26 | the creation of Illinois
coal-mining
jobs, or (iii) |
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1 | shall use coal gasification or integrated | ||||||
2 | gasification-combined cycle units
that generate
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3 | electricity or chemicals, or both, and shall support | ||||||
4 | the creation of Illinois
coal-mining
jobs.
The
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5 | business must certify in writing that the investments | ||||||
6 | necessary to establish
a new electric generating | ||||||
7 | facility would not be placed in service and the
job | ||||||
8 | creation in the case of a coal-fueled plant
would not | ||||||
9 | occur without the tax credits and exemptions set forth | ||||||
10 | in
subsection (b-5) of this Section. The term "placed | ||||||
11 | in service" has
the same meaning as described in | ||||||
12 | subsection
(h) of Section 201 of the Illinois Income | ||||||
13 | Tax Act; or
| ||||||
14 | (B-5) the business intends to establish a new | ||||||
15 | gasification
facility at a designated location in | ||||||
16 | Illinois. As used in this Section, "new gasification | ||||||
17 | facility" means a newly constructed coal gasification | ||||||
18 | facility that generates chemical feedstocks or | ||||||
19 | transportation fuels derived from coal (which may | ||||||
20 | include, but are not limited to, methane, methanol, and | ||||||
21 | nitrogen fertilizer), that supports the creation or | ||||||
22 | retention of Illinois coal-mining jobs, and that | ||||||
23 | qualifies for financial assistance from the Department | ||||||
24 | before December 31, 2010. A new gasification facility | ||||||
25 | does not include a pilot project located within | ||||||
26 | Jefferson County or within a county adjacent to |
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1 | Jefferson County for synthetic natural gas from coal; | ||||||
2 | or
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3 | (C) the business intends to establish
production | ||||||
4 | operations at a new coal mine, re-establish production | ||||||
5 | operations at
a closed coal mine, or expand production | ||||||
6 | at an existing coal mine
at a designated location in | ||||||
7 | Illinois not sooner than July 1, 2001;
provided that | ||||||
8 | the
production operations result in the creation of 150 | ||||||
9 | new Illinois coal mining
jobs as described in | ||||||
10 | subdivision (a)(3)(B) of this Section, and further
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11 | provided that the coal extracted from such mine is | ||||||
12 | utilized as the predominant
source for a new electric | ||||||
13 | generating facility.
The business must certify in | ||||||
14 | writing that the
investments necessary to establish a | ||||||
15 | new, expanded, or reopened coal mine would
not
be | ||||||
16 | placed in service and the job creation would not
occur | ||||||
17 | without the tax credits and exemptions set forth in | ||||||
18 | subsection (b-5) of
this Section. The term "placed in | ||||||
19 | service" has
the same meaning as described in | ||||||
20 | subsection (h) of Section 201 of the
Illinois Income | ||||||
21 | Tax Act; or
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22 | (D) the business intends to construct new | ||||||
23 | transmission facilities or
upgrade existing | ||||||
24 | transmission facilities at designated locations in | ||||||
25 | Illinois,
for which construction commenced not sooner | ||||||
26 | than July 1, 2001. For the
purposes of this Section, |
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1 | "transmission facilities" means transmission lines
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2 | with a voltage rating of 115 kilovolts or above, | ||||||
3 | including associated
equipment, that transfer | ||||||
4 | electricity from points of supply to points of
delivery | ||||||
5 | and that transmit a majority of the electricity | ||||||
6 | generated by a new
electric generating facility | ||||||
7 | designated as a High Impact Business in accordance
with | ||||||
8 | this Section. The business must certify in writing that | ||||||
9 | the investments
necessary to construct new | ||||||
10 | transmission facilities or upgrade existing
| ||||||
11 | transmission facilities would not be placed in service
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12 | without the tax credits and exemptions set forth in | ||||||
13 | subsection (b-5) of this
Section. The term "placed in | ||||||
14 | service" has the
same meaning as described in | ||||||
15 | subsection (h) of Section 201 of the Illinois
Income | ||||||
16 | Tax Act; or and
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17 | (E) the business intends to establish a new wind | ||||||
18 | power facility at a designated location in Illinois. | ||||||
19 | For purposes of this Section, "new wind power facility" | ||||||
20 | means a newly constructed electric generation | ||||||
21 | facility, or a newly constructed expansion of an | ||||||
22 | existing electric generation facility, that generates | ||||||
23 | electricity using wind energy devices, and such | ||||||
24 | facility shall be deemed to include all associated | ||||||
25 | transmission lines, substations, and other equipment | ||||||
26 | related to the generation of electricity from wind |
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1 | energy devices. For purposes of this Section, "wind | ||||||
2 | energy device" means any device, with a nameplate | ||||||
3 | capacity of at least 0.5 megawatts, that is used in the | ||||||
4 | process of converting kinetic energy from the wind to | ||||||
5 | generate electricity; and
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6 | (4) no later than 90 days after an application is | ||||||
7 | submitted, the
Department shall notify the applicant of the | ||||||
8 | Department's determination of
the qualification of the | ||||||
9 | proposed High Impact Business under this Section.
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10 | (b) Businesses designated as High Impact Businesses | ||||||
11 | pursuant to
subdivision (a)(3)(A) of this Section shall qualify | ||||||
12 | for the credits and
exemptions described in the
following Acts: | ||||||
13 | Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
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14 | subsection (h)
of Section 201 of the Illinois Income Tax Act,
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15 | and Section 1d of
the
Retailers' Occupation Tax Act; provided | ||||||
16 | that these credits and
exemptions
described in these Acts shall | ||||||
17 | not be authorized until the minimum
investments set forth in | ||||||
18 | subdivision (a)(3)(A) of this
Section have been placed in
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19 | service in qualified properties and, in the case of the | ||||||
20 | exemptions
described in the Public Utilities Act and Section 1d | ||||||
21 | of the Retailers'
Occupation Tax Act, the minimum full-time | ||||||
22 | equivalent jobs or full-time jobs set
forth in subdivision | ||||||
23 | (a)(3)(A) of this Section have been
created or retained.
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24 | Businesses designated as High Impact Businesses under
this | ||||||
25 | Section shall also
qualify for the exemption described in | ||||||
26 | Section 5l of the Retailers' Occupation
Tax Act. The credit |
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1 | provided in subsection (h) of Section 201 of the Illinois
| ||||||
2 | Income Tax Act shall be applicable to investments in qualified | ||||||
3 | property as set
forth in subdivision (a)(3)(A) of this Section.
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4 | (b-5) Businesses designated as High Impact Businesses | ||||||
5 | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | ||||||
6 | and (a)(3)(D) of this Section shall qualify
for the credits and | ||||||
7 | exemptions described in the following Acts: Section 51 of
the | ||||||
8 | Retailers' Occupation Tax Act, Section 9-222 and Section | ||||||
9 | 9-222.1A of the
Public Utilities Act, and subsection (h) of | ||||||
10 | Section 201 of the Illinois Income
Tax Act; however, the | ||||||
11 | credits and exemptions authorized under Section 9-222 and
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12 | Section 9-222.1A of the Public Utilities Act, and subsection | ||||||
13 | (h) of Section 201
of the Illinois Income Tax Act shall not be | ||||||
14 | authorized until the new electric
generating facility, the new | ||||||
15 | gasification facility, the new transmission facility, or the | ||||||
16 | new, expanded, or
reopened coal mine is operational,
except | ||||||
17 | that a new electric generating facility whose primary fuel | ||||||
18 | source is
natural gas is eligible only for the exemption under | ||||||
19 | Section 5l of the
Retailers' Occupation Tax Act.
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20 | (b-6) Businesses designated as High Impact Businesses | ||||||
21 | pursuant to subdivision (a)(3)(E) of this Section shall qualify | ||||||
22 | for the exemptions described in Section 5l of the Retailers' | ||||||
23 | Occupation Tax Act. | ||||||
24 | (c) High Impact Businesses located in federally designated | ||||||
25 | foreign trade
zones or sub-zones are also eligible for | ||||||
26 | additional credits, exemptions and
deductions as described in |
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1 | the following Acts: Section 9-221 and Section
9-222.1 of the | ||||||
2 | Public
Utilities Act; and subsection (g) of Section 201, and | ||||||
3 | Section 203
of the Illinois Income Tax Act.
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4 | (d) Except for businesses contemplated under subsection | ||||||
5 | (a)(3)(E) of this Section, existing Existing Illinois | ||||||
6 | businesses which apply for designation as a
High Impact | ||||||
7 | Business must provide the Department with the prospective plan
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8 | for which 1,500 full-time jobs would be eliminated in the event | ||||||
9 | that the
business is not designated.
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10 | (e) Except for new wind power facilities contemplated under | ||||||
11 | subsection (a)(3)(E) of this Section, new New proposed | ||||||
12 | facilities which apply for designation as High Impact
Business | ||||||
13 | must provide the Department with proof of alternative | ||||||
14 | non-Illinois
sites which would receive the proposed investment | ||||||
15 | and job creation in the
event that the business is not | ||||||
16 | designated as a High Impact Business.
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17 | (f) Except for businesses contemplated under subsection | ||||||
18 | (a)(3)(E) of this Section, in In the event that a business is | ||||||
19 | designated a High Impact Business
and it is later determined | ||||||
20 | after reasonable notice and an opportunity for a
hearing as | ||||||
21 | provided under the Illinois Administrative Procedure Act, that
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22 | the business would have placed in service in qualified property | ||||||
23 | the
investments and created or retained the requisite number of | ||||||
24 | jobs without
the benefits of the High Impact Business | ||||||
25 | designation, the Department shall
be required to immediately | ||||||
26 | revoke the designation and notify the Director
of the |
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1 | Department of Revenue who shall begin proceedings to recover | ||||||
2 | all
wrongfully exempted State taxes with interest. The business | ||||||
3 | shall also be
ineligible for all State funded Department | ||||||
4 | programs for a period of 10 years.
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5 | (g) The Department shall revoke a High Impact Business | ||||||
6 | designation if
the participating business fails to comply with | ||||||
7 | the terms and conditions of
the designation.
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8 | (h) Prior to designating a business, the Department shall | ||||||
9 | provide the
members of the General Assembly and Commission on | ||||||
10 | Government Forecasting and Accountability
with a report | ||||||
11 | setting forth the terms and conditions of the designation and
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12 | guarantees that have been received by the Department in | ||||||
13 | relation to the
proposed business being designated.
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14 | (Source: P.A. 94-65, eff. 6-21-05; 95-18, eff. 7-30-07.)
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