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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 New Markets Development Program Act is | ||||||||||||||||||||||||||
5 | amended by changing Sections 20 and 25 as follows: | ||||||||||||||||||||||||||
6 | (20 ILCS 663/20)
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7 | Sec. 20. Annual cap on credits. The Department shall limit | ||||||||||||||||||||||||||
8 | the monetary amount of qualified equity investments permitted | ||||||||||||||||||||||||||
9 | under this Act to a level necessary to limit tax credit use at | ||||||||||||||||||||||||||
10 | no more than $40,000,000 $10,000,000 of tax credits in any | ||||||||||||||||||||||||||
11 | fiscal year. This limitation on qualified equity investments | ||||||||||||||||||||||||||
12 | shall be based on the anticipated use of credits without regard | ||||||||||||||||||||||||||
13 | to the potential for taxpayers to carry forward tax credits to | ||||||||||||||||||||||||||
14 | later tax years.
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15 | (Source: P.A. 95-1024, eff. 12-31-08.) | ||||||||||||||||||||||||||
16 | (20 ILCS 663/25)
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17 | Sec. 25. Certification of qualified equity investments. | ||||||||||||||||||||||||||
18 | (a) A qualified community development entity that seeks to | ||||||||||||||||||||||||||
19 | have an equity investment or long-term debt security designated | ||||||||||||||||||||||||||
20 | as a qualified equity investment and eligible for tax credits | ||||||||||||||||||||||||||
21 | under this Section shall apply to the Department. The qualified | ||||||||||||||||||||||||||
22 | community development entity must submit an application on a |
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1 | form that the Department provides that includes: | ||||||
2 | (1) The name, address, tax identification number of the | ||||||
3 | entity, and evidence of the entity's certification as a | ||||||
4 | qualified community development entity. | ||||||
5 | (2) A copy of the allocation agreement executed by the | ||||||
6 | entity, or its controlling entity, and the Community | ||||||
7 | Development Financial Institutions Fund. | ||||||
8 | (3) A certificate executed by an executive officer of | ||||||
9 | the entity attesting that the allocation agreement remains | ||||||
10 | in effect and has not been revoked or cancelled by the | ||||||
11 | Community Development Financial Institutions Fund. | ||||||
12 | (4) A description of the proposed amount, structure, | ||||||
13 | and purchaser of the equity investment or long-term debt | ||||||
14 | security. | ||||||
15 | (5) The name and tax identification number of any | ||||||
16 | taxpayer eligible to utilize tax credits earned as a result | ||||||
17 | of the issuance of the qualified equity investment. | ||||||
18 | (6) Information regarding the proposed use of proceeds | ||||||
19 | from the issuance of the qualified equity investment. | ||||||
20 | (7) A nonrefundable application fee of $5,000. This fee | ||||||
21 | shall be paid to the Department and shall be required of | ||||||
22 | each application submitted. | ||||||
23 | (b) Within 30 days after receipt of a completed application | ||||||
24 | containing the information necessary for the Department to | ||||||
25 | certify a potential qualified equity investment, including the | ||||||
26 | payment of the application fee, the Department shall grant or |
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1 | deny the application in full or in part. If the Department | ||||||
2 | denies any part of the application, it shall inform the | ||||||
3 | qualified community development entity of the grounds for the | ||||||
4 | denial. If the qualified community development entity provides | ||||||
5 | any additional information required by the Department or | ||||||
6 | otherwise completes its application within 15 days of the | ||||||
7 | notice of denial, the application shall be considered completed | ||||||
8 | as of the original date of submission. If the qualified | ||||||
9 | community development entity fails to provide the information | ||||||
10 | or complete its application within the 15-day period, the | ||||||
11 | application remains denied and must be resubmitted in full with | ||||||
12 | a new submission date. | ||||||
13 | (c) If the application is deemed complete, the Department | ||||||
14 | shall certify the proposed equity investment or long-term debt | ||||||
15 | security as a qualified equity investment that is eligible for | ||||||
16 | tax credits under this Section, subject to the limitations | ||||||
17 | contained in Section 20. The Department shall provide written | ||||||
18 | notice of the certification to the qualified community | ||||||
19 | development entity. The notice shall include the names of those | ||||||
20 | taxpayers who are eligible to utilize the credits and their | ||||||
21 | respective credit amounts. If the names of the taxpayers who | ||||||
22 | are eligible to utilize the credits change due to a transfer of | ||||||
23 | a qualified equity investment or a change in an allocation | ||||||
24 | pursuant to Section 15, the qualified community development | ||||||
25 | entity shall notify the Department of such change. | ||||||
26 | (d) The Department shall certify qualified equity |
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1 | investments in the order applications are received by the | ||||||
2 | Department. Applications received on the same day shall be | ||||||
3 | deemed to have been received simultaneously. For applications | ||||||
4 | received on the same day and deemed complete, the Department | ||||||
5 | shall certify, consistent with remaining tax credit capacity, | ||||||
6 | qualified equity investments in proportionate percentages | ||||||
7 | based upon the ratio of the amount of qualified equity | ||||||
8 | investment requested in an application to the total amount of | ||||||
9 | qualified equity investments requested in all applications | ||||||
10 | received on the same day. | ||||||
11 | (e) Once the Department has certified qualified equity | ||||||
12 | investments that, on a cumulative basis, are eligible for | ||||||
13 | $40,000,000 $10,000,000 in tax credits, the Department may not | ||||||
14 | certify any more qualified equity investments. If a pending | ||||||
15 | request cannot be fully certified, the Department shall certify | ||||||
16 | the portion that may be certified unless the qualified | ||||||
17 | community development entity elects to withdraw its request | ||||||
18 | rather than receive partial credit. | ||||||
19 | (f) Within 30 days after receiving notice of certification, | ||||||
20 | the qualified community development entity shall issue the | ||||||
21 | qualified equity investment and receive cash in the amount of | ||||||
22 | the certified amount. The qualified community development | ||||||
23 | entity must provide the Department with evidence of the receipt | ||||||
24 | of the cash investment within 10 business days after receipt. | ||||||
25 | If the qualified community development entity does not receive | ||||||
26 | the cash investment and issue the qualified equity investment |
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1 | within 30 days following receipt of the certification notice, | ||||||
2 | the certification shall lapse and the entity may not issue the | ||||||
3 | qualified equity investment without reapplying to the | ||||||
4 | Department for certification. A certification that lapses | ||||||
5 | reverts back to the Department and may be reissued only in | ||||||
6 | accordance with the application process outline in this Section | ||||||
7 | 25.
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8 | (Source: P.A. 95-1024, eff. 12-31-08.)
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9 | Section 99. Effective date. This Act takes effect July 1, | ||||||
10 | 2010.
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