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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,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Green | ||||||||||||||||||||||||||||||||||||||
5 | Energy Business Act. | ||||||||||||||||||||||||||||||||||||||
6 | Section 5. Definitions. As used in this Act, the following | ||||||||||||||||||||||||||||||||||||||
7 | words shall have the meanings ascribed to them below, unless | ||||||||||||||||||||||||||||||||||||||
8 | the context otherwise requires: | ||||||||||||||||||||||||||||||||||||||
9 | "Biodiesel" means a renewable diesel fuel derived from | ||||||||||||||||||||||||||||||||||||||
10 | biomass that is intended for use in diesel engines.
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11 | "Department" means the Department of Commerce and Economic | ||||||||||||||||||||||||||||||||||||||
12 | Opportunity.
| ||||||||||||||||||||||||||||||||||||||
13 | "Ethanol" means a product produced from agricultural | ||||||||||||||||||||||||||||||||||||||
14 | commodities or by-products used as a fuel or to be blended with | ||||||||||||||||||||||||||||||||||||||
15 | other fuels for use in motor vehicles.
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16 | "Green Energy Business" means a business that:
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17 | (i) produces or manufactures components used in the | ||||||||||||||||||||||||||||||||||||||
18 | production of electricity from renewable energy resources; | ||||||||||||||||||||||||||||||||||||||
19 | (ii) has the capacity to produce and produces at least | ||||||||||||||||||||||||||||||||||||||
20 | 5 megawatts of electricity from renewable energy resources | ||||||||||||||||||||||||||||||||||||||
21 | each year; | ||||||||||||||||||||||||||||||||||||||
22 | (iii) has the capacity to produce and produces no less | ||||||||||||||||||||||||||||||||||||||
23 | than 30,000,000 gallons of biodiesel or ethanol each year. |
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| |||||||
1 | "Renewable energy resources" means wind energy; solar | ||||||
2 | thermal energy; photovoltaic cells and panels; biodiesel; | ||||||
3 | crops; untreated and unadulterated organic waste biomass; | ||||||
4 | trees and tree trimmings; hydropower that does not involve new | ||||||
5 | construction or significant expansion of hydropower dams; and | ||||||
6 | other alternative sources of environmentally preferable | ||||||
7 | energy. For purposes of this Act, landfill gas produced in the | ||||||
8 | State is a renewable energy resource, but tires; garbage; | ||||||
9 | general household, institutional, and commercial waste; | ||||||
10 | industrial lunchroom or office waste; landscape waste (other | ||||||
11 | than trees and tree trimmings); railroad crossties; utility | ||||||
12 | poles; and construction or demolition debris (other than | ||||||
13 | untreated and unadulterated waste wood) are not. Renewable | ||||||
14 | energy resources also include any renewable energy credit or | ||||||
15 | credits associated with or generated by a source of energy that | ||||||
16 | otherwise qualifies as a renewable energy resource under this | ||||||
17 | Act. | ||||||
18 | Section 10. Green Energy Business. | ||||||
19 | (a) To assist in the encouragement, development, growth, | ||||||
20 | and expansion of the private sector through green energy | ||||||
21 | projects, the Department may receive and approve applications | ||||||
22 | for the designation of "Green Energy Business" in Illinois. | ||||||
23 | Applications may be submitted at any time. No later than 90 | ||||||
24 | days after an application is submitted, the Department shall | ||||||
25 | notify the applicant of the Department's determination as to |
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| |||||||
1 | the applicant's qualification to be designated as a Green | ||||||
2 | Energy Business under this Section. To qualify as a Green | ||||||
3 | Energy Business, a business must meet all of the following | ||||||
4 | conditions: | ||||||
5 | (1) It must not be located, at the time of designation, | ||||||
6 | in an enterprise zone designated under the Illinois | ||||||
7 | Enterprise Zone Act.
| ||||||
8 | (2) It must commit to (i) produce or manufacture | ||||||
9 | components used in the production of electricity from | ||||||
10 | renewable energy resources; (ii) produce at least 5 | ||||||
11 | megawatts of electricity from renewable energy resources | ||||||
12 | each year; or (iii) produce not less than 30,000,000 | ||||||
13 | gallons of biodiesel or ethanol each year.
| ||||||
14 | (3) It must commit to have the business placed in | ||||||
15 | service at a qualified property in Illinois.
| ||||||
16 | (4) It must certify in writing that (i) the investments | ||||||
17 | would not be placed in service at a qualified property | ||||||
18 | without the tax credits and exemptions referenced in | ||||||
19 | subsection (b) of this Section and (ii) the job creation or | ||||||
20 | job retention would not occur without the tax credits and | ||||||
21 | exemptions referenced in subsection (b) of this Section. | ||||||
22 | The terms "placed in service" and "qualified property" have | ||||||
23 | the same meanings as described in subsection (h) of Section | ||||||
24 | 201 of the Illinois Income Tax Act.
| ||||||
25 | (5) It must meet any additional criteria established by | ||||||
26 | the Department.
|
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| |||||||
1 | (b) Each business designated as a Green Energy Business by | ||||||
2 | the Department shall qualify for the credits and exemptions in | ||||||
3 | Sections 9-222 and 9-222.1A of the Public Utilities Act; | ||||||
4 | subsection (h) of Section 201 of the Illinois Income Tax Act; | ||||||
5 | and Section 1d of the Retailers' Occupation Tax Act. Each | ||||||
6 | business designated as a Green Energy Business under this | ||||||
7 | Section shall also qualify for the exemption described in | ||||||
8 | Section 5l of the Retailers' Occupation Tax Act. The credit | ||||||
9 | provided in subsection (h) of Section 201 of the Illinois | ||||||
10 | Income Tax Act shall be applicable to investments in qualified | ||||||
11 | property used to meet the requirements in subdivision (a)(2) of | ||||||
12 | this Section. | ||||||
13 | (c) The Department must revoke a Green Energy Business | ||||||
14 | designation if, within the Department's discretion, the | ||||||
15 | participating business fails to comply with the terms and | ||||||
16 | conditions of the designation. | ||||||
17 | Section 15. Project labor agreements | ||||||
18 | (a) Each business designated as a Green Energy Business by | ||||||
19 | the Department must enter into a project labor agreement. The | ||||||
20 | project labor agreement must include provisions establishing | ||||||
21 | (i) the minimum hourly wage for each class of labor | ||||||
22 | organization employee; (ii) the benefits and other | ||||||
23 | compensation for each class of labor organization employee; and | ||||||
24 | (iii) that no strike or disputes will be engaged in by the | ||||||
25 | labor organization employees; and (iv) that no lockout or |
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| |||||||
1 | disputes will be engaged in by the owner of a Green Energy | ||||||
2 | Business. The owner of a Green Energy Business and the labor | ||||||
3 | organizations shall have the authority to include other terms | ||||||
4 | and conditions as they deem necessary. | ||||||
5 | (b) Each project labor agreement shall be filed with the | ||||||
6 | Director in accordance with the procedures established by the | ||||||
7 | Department. At a minimum, the project labor agreement must | ||||||
8 | provide the names, addresses, and occupations of the owner of | ||||||
9 | the Green Energy Business and the individuals representing the | ||||||
10 | labor organization employees participating in the project | ||||||
11 | labor agreement. The agreement must also specify the terms and | ||||||
12 | conditions required in subsection (a) of this Section. | ||||||
13 | Section 20. The Illinois Income Tax Act is amended by | ||||||
14 | changing Section 201 as follows:
| ||||||
15 | (35 ILCS 5/201) (from Ch. 120, par. 2-201)
| ||||||
16 | Sec. 201. Tax Imposed.
| ||||||
17 | (a) In general. A tax measured by net income is hereby | ||||||
18 | imposed on every
individual, corporation, trust and estate for | ||||||
19 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
20 | of earning or receiving income in or
as a resident of this | ||||||
21 | State. Such tax shall be in addition to all other
occupation or | ||||||
22 | privilege taxes imposed by this State or by any municipal
| ||||||
23 | corporation or political subdivision thereof.
| ||||||
24 | (b) Rates. The tax imposed by subsection (a) of this |
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| |||||||
1 | Section shall be
determined as follows, except as adjusted by | ||||||
2 | subsection (d-1):
| ||||||
3 | (1) In the case of an individual, trust or estate, for | ||||||
4 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
5 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
6 | year.
| ||||||
7 | (2) In the case of an individual, trust or estate, for | ||||||
8 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
9 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
10 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
11 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
12 | 3% of the
taxpayer's net income for the period after June | ||||||
13 | 30, 1989, as calculated
under Section 202.3.
| ||||||
14 | (3) In the case of an individual, trust or estate, for | ||||||
15 | taxable years
beginning after June 30, 1989, an amount | ||||||
16 | equal to 3% of the taxpayer's net
income for the taxable | ||||||
17 | year.
| ||||||
18 | (4) (Blank).
| ||||||
19 | (5) (Blank).
| ||||||
20 | (6) In the case of a corporation, for taxable years
| ||||||
21 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
22 | taxpayer's net income for the taxable year.
| ||||||
23 | (7) In the case of a corporation, for taxable years | ||||||
24 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
25 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
26 | taxpayer's net income for the period prior to July 1, 1989,
|
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| |||||||
1 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
2 | taxpayer's net
income for the period after June 30, 1989, | ||||||
3 | as calculated under Section
202.3.
| ||||||
4 | (8) In the case of a corporation, for taxable years | ||||||
5 | beginning after
June 30, 1989, an amount equal to 4.8% of | ||||||
6 | the taxpayer's net income for the
taxable year.
| ||||||
7 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
8 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
9 | income
tax, there is also hereby imposed the Personal Property | ||||||
10 | Tax Replacement
Income Tax measured by net income on every | ||||||
11 | corporation (including Subchapter
S corporations), partnership | ||||||
12 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
13 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
14 | income in or as a resident of this State. The Personal Property
| ||||||
15 | Tax Replacement Income Tax shall be in addition to the income | ||||||
16 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
17 | addition to all other
occupation or privilege taxes imposed by | ||||||
18 | this State or by any municipal
corporation or political | ||||||
19 | subdivision thereof.
| ||||||
20 | (d) Additional Personal Property Tax Replacement Income | ||||||
21 | Tax Rates.
The personal property tax replacement income tax | ||||||
22 | imposed by this subsection
and subsection (c) of this Section | ||||||
23 | in the case of a corporation, other
than a Subchapter S | ||||||
24 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
25 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
26 | income for the taxable year, except that
beginning on January |
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| |||||||
1 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
2 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
3 | partnership, trust or a Subchapter S corporation shall be an | ||||||
4 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
5 | for the taxable year.
| ||||||
6 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
7 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
8 | Illinois Insurance Code,
whose state or country of domicile | ||||||
9 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
10 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
11 | are 50% or more of its total insurance
premiums as determined | ||||||
12 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
13 | that for purposes of this determination premiums from | ||||||
14 | reinsurance do
not include premiums from inter-affiliate | ||||||
15 | reinsurance arrangements),
beginning with taxable years ending | ||||||
16 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
17 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
18 | increased) to the rate at which the total amount of tax imposed | ||||||
19 | under this Act,
net of all credits allowed under this Act, | ||||||
20 | shall equal (i) the total amount of
tax that would be imposed | ||||||
21 | on the foreign insurer's net income allocable to
Illinois for | ||||||
22 | the taxable year by such foreign insurer's state or country of
| ||||||
23 | domicile if that net income were subject to all income taxes | ||||||
24 | and taxes
measured by net income imposed by such foreign | ||||||
25 | insurer's state or country of
domicile, net of all credits | ||||||
26 | allowed or (ii) a rate of zero if no such tax is
imposed on such |
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| |||||||
1 | income by the foreign insurer's state of domicile.
For the | ||||||
2 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
3 | a
mutual insurer under common management.
| ||||||
4 | (1) For the purposes of subsection (d-1), in no event | ||||||
5 | shall the sum of the
rates of tax imposed by subsections | ||||||
6 | (b) and (d) be reduced below the rate at
which the sum of:
| ||||||
7 | (A) the total amount of tax imposed on such foreign | ||||||
8 | insurer under
this Act for a taxable year, net of all | ||||||
9 | credits allowed under this Act, plus
| ||||||
10 | (B) the privilege tax imposed by Section 409 of the | ||||||
11 | Illinois Insurance
Code, the fire insurance company | ||||||
12 | tax imposed by Section 12 of the Fire
Investigation | ||||||
13 | Act, and the fire department taxes imposed under | ||||||
14 | Section 11-10-1
of the Illinois Municipal Code,
| ||||||
15 | equals 1.25% for taxable years ending prior to December 31, | ||||||
16 | 2003, or
1.75% for taxable years ending on or after | ||||||
17 | December 31, 2003, of the net
taxable premiums written for | ||||||
18 | the taxable year,
as described by subsection (1) of Section | ||||||
19 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
20 | no event increase the rates imposed under subsections
(b) | ||||||
21 | and (d).
| ||||||
22 | (2) Any reduction in the rates of tax imposed by this | ||||||
23 | subsection shall be
applied first against the rates imposed | ||||||
24 | by subsection (b) and only after the
tax imposed by | ||||||
25 | subsection (a) net of all credits allowed under this | ||||||
26 | Section
other than the credit allowed under subsection (i) |
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| |||||||
1 | has been reduced to zero,
against the rates imposed by | ||||||
2 | subsection (d).
| ||||||
3 | This subsection (d-1) is exempt from the provisions of | ||||||
4 | Section 250.
| ||||||
5 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
6 | against the Personal Property Tax Replacement Income Tax for
| ||||||
7 | investment in qualified property.
| ||||||
8 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
9 | of
the basis of qualified property placed in service during | ||||||
10 | the taxable year,
provided such property is placed in | ||||||
11 | service on or after
July 1, 1984. There shall be allowed an | ||||||
12 | additional credit equal
to .5% of the basis of qualified | ||||||
13 | property placed in service during the
taxable year, | ||||||
14 | provided such property is placed in service on or
after | ||||||
15 | July 1, 1986, and the taxpayer's base employment
within | ||||||
16 | Illinois has increased by 1% or more over the preceding | ||||||
17 | year as
determined by the taxpayer's employment records | ||||||
18 | filed with the
Illinois Department of Employment Security. | ||||||
19 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
20 | met the 1% growth in base employment for
the first year in | ||||||
21 | which they file employment records with the Illinois
| ||||||
22 | Department of Employment Security. The provisions added to | ||||||
23 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
24 | Act 87-895) shall be
construed as declaratory of existing | ||||||
25 | law and not as a new enactment. If,
in any year, the | ||||||
26 | increase in base employment within Illinois over the
|
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| |||||||
1 | preceding year is less than 1%, the additional credit shall | ||||||
2 | be limited to that
percentage times a fraction, the | ||||||
3 | numerator of which is .5% and the denominator
of which is | ||||||
4 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
5 | not be
allowed to the extent that it would reduce a | ||||||
6 | taxpayer's liability in any tax
year below zero, nor may | ||||||
7 | any credit for qualified property be allowed for any
year | ||||||
8 | other than the year in which the property was placed in | ||||||
9 | service in
Illinois. For tax years ending on or after | ||||||
10 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
11 | credit shall be allowed for the tax year in
which the | ||||||
12 | property is placed in service, or, if the amount of the | ||||||
13 | credit
exceeds the tax liability for that year, whether it | ||||||
14 | exceeds the original
liability or the liability as later | ||||||
15 | amended, such excess may be carried
forward and applied to | ||||||
16 | the tax liability of the 5 taxable years following
the | ||||||
17 | excess credit years if the taxpayer (i) makes investments | ||||||
18 | which cause
the creation of a minimum of 2,000 full-time | ||||||
19 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
20 | enterprise zone established pursuant to the Illinois
| ||||||
21 | Enterprise Zone Act and (iii) is certified by the | ||||||
22 | Department of Commerce
and Community Affairs (now | ||||||
23 | Department of Commerce and Economic Opportunity) as | ||||||
24 | complying with the requirements specified in
clause (i) and | ||||||
25 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
26 | Community Affairs (now Department of Commerce and Economic |
| |||||||
| |||||||
1 | Opportunity) shall notify the Department of Revenue of all | ||||||
2 | such
certifications immediately. For tax years ending | ||||||
3 | after December 31, 1988,
the credit shall be allowed for | ||||||
4 | the tax year in which the property is
placed in service, | ||||||
5 | or, if the amount of the credit exceeds the tax
liability | ||||||
6 | for that year, whether it exceeds the original liability or | ||||||
7 | the
liability as later amended, such excess may be carried | ||||||
8 | forward and applied
to the tax liability of the 5 taxable | ||||||
9 | years following the excess credit
years. The credit shall | ||||||
10 | be applied to the earliest year for which there is
a | ||||||
11 | liability. If there is credit from more than one tax year | ||||||
12 | that is
available to offset a liability, earlier credit | ||||||
13 | shall be applied first.
| ||||||
14 | (2) The term "qualified property" means property | ||||||
15 | which:
| ||||||
16 | (A) is tangible, whether new or used, including | ||||||
17 | buildings and structural
components of buildings and | ||||||
18 | signs that are real property, but not including
land or | ||||||
19 | improvements to real property that are not a structural | ||||||
20 | component of a
building such as landscaping, sewer | ||||||
21 | lines, local access roads, fencing, parking
lots, and | ||||||
22 | other appurtenances;
| ||||||
23 | (B) is depreciable pursuant to Section 167 of the | ||||||
24 | Internal Revenue Code,
except that "3-year property" | ||||||
25 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
26 | eligible for the credit provided by this subsection |
| |||||||
| |||||||
1 | (e);
| ||||||
2 | (C) is acquired by purchase as defined in Section | ||||||
3 | 179(d) of
the Internal Revenue Code;
| ||||||
4 | (D) is used in Illinois by a taxpayer who is | ||||||
5 | primarily engaged in
manufacturing, or in mining coal | ||||||
6 | or fluorite, or in retailing, or was placed in service | ||||||
7 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
8 | Zone established pursuant to the River Edge | ||||||
9 | Redevelopment Zone Act; and
| ||||||
10 | (E) has not previously been used in Illinois in | ||||||
11 | such a manner and by
such a person as would qualify for | ||||||
12 | the credit provided by this subsection
(e) or | ||||||
13 | subsection (f).
| ||||||
14 | (3) For purposes of this subsection (e), | ||||||
15 | "manufacturing" means
the material staging and production | ||||||
16 | of tangible personal property by
procedures commonly | ||||||
17 | regarded as manufacturing, processing, fabrication, or
| ||||||
18 | assembling which changes some existing material into new | ||||||
19 | shapes, new
qualities, or new combinations. For purposes of | ||||||
20 | this subsection
(e) the term "mining" shall have the same | ||||||
21 | meaning as the term "mining" in
Section 613(c) of the | ||||||
22 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
23 | the term "retailing" means the sale of tangible personal | ||||||
24 | property for use or consumption and not for resale, or
| ||||||
25 | services rendered in conjunction with the sale of tangible | ||||||
26 | personal property for use or consumption and not for |
| |||||||
| |||||||
1 | resale. For purposes of this subsection (e), "tangible | ||||||
2 | personal property" has the same meaning as when that term | ||||||
3 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
4 | taxable years ending after December 31, 2008, does not | ||||||
5 | include the generation, transmission, or distribution of | ||||||
6 | electricity.
| ||||||
7 | (4) The basis of qualified property shall be the basis
| ||||||
8 | used to compute the depreciation deduction for federal | ||||||
9 | income tax purposes.
| ||||||
10 | (5) If the basis of the property for federal income tax | ||||||
11 | depreciation
purposes is increased after it has been placed | ||||||
12 | in service in Illinois by
the taxpayer, the amount of such | ||||||
13 | increase shall be deemed property placed
in service on the | ||||||
14 | date of such increase in basis.
| ||||||
15 | (6) The term "placed in service" shall have the same
| ||||||
16 | meaning as under Section 46 of the Internal Revenue Code.
| ||||||
17 | (7) If during any taxable year, any property ceases to
| ||||||
18 | be qualified property in the hands of the taxpayer within | ||||||
19 | 48 months after
being placed in service, or the situs of | ||||||
20 | any qualified property is
moved outside Illinois within 48 | ||||||
21 | months after being placed in service, the
Personal Property | ||||||
22 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
23 | increased. Such increase shall be determined by (i) | ||||||
24 | recomputing the
investment credit which would have been | ||||||
25 | allowed for the year in which
credit for such property was | ||||||
26 | originally allowed by eliminating such
property from such |
| |||||||
| |||||||
1 | computation and, (ii) subtracting such recomputed credit
| ||||||
2 | from the amount of credit previously allowed. For the | ||||||
3 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
4 | qualified property resulting
from a redetermination of the | ||||||
5 | purchase price shall be deemed a disposition
of qualified | ||||||
6 | property to the extent of such reduction.
| ||||||
7 | (8) Unless the investment credit is extended by law, | ||||||
8 | the
basis of qualified property shall not include costs | ||||||
9 | incurred after
December 31, 2013, except for costs incurred | ||||||
10 | pursuant to a binding
contract entered into on or before | ||||||
11 | December 31, 2013.
| ||||||
12 | (9) Each taxable year ending before December 31, 2000, | ||||||
13 | a partnership may
elect to pass through to its
partners the | ||||||
14 | credits to which the partnership is entitled under this | ||||||
15 | subsection
(e) for the taxable year. A partner may use the | ||||||
16 | credit allocated to him or her
under this paragraph only | ||||||
17 | against the tax imposed in subsections (c) and (d) of
this | ||||||
18 | Section. If the partnership makes that election, those | ||||||
19 | credits shall be
allocated among the partners in the | ||||||
20 | partnership in accordance with the rules
set forth in | ||||||
21 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
22 | promulgated under that Section, and the allocated amount of | ||||||
23 | the credits shall
be allowed to the partners for that | ||||||
24 | taxable year. The partnership shall make
this election on | ||||||
25 | its Personal Property Tax Replacement Income Tax return for
| ||||||
26 | that taxable year. The election to pass through the credits |
| |||||||
| |||||||
1 | shall be
irrevocable.
| ||||||
2 | For taxable years ending on or after December 31, 2000, | ||||||
3 | a
partner that qualifies its
partnership for a subtraction | ||||||
4 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
5 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
6 | S
corporation for a subtraction under subparagraph (S) of | ||||||
7 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
8 | allowed a credit under this subsection
(e) equal to its | ||||||
9 | share of the credit earned under this subsection (e) during
| ||||||
10 | the taxable year by the partnership or Subchapter S | ||||||
11 | corporation, determined in
accordance with the | ||||||
12 | determination of income and distributive share of
income | ||||||
13 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
14 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
15 | of Section 250.
| ||||||
16 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
17 | Redevelopment Zone.
| ||||||
18 | (1) A taxpayer shall be allowed a credit against the | ||||||
19 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
20 | investment in qualified
property which is placed in service | ||||||
21 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
22 | Enterprise Zone Act or, for property placed in service on | ||||||
23 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
24 | established pursuant to the River Edge Redevelopment Zone | ||||||
25 | Act. For partners, shareholders
of Subchapter S | ||||||
26 | corporations, and owners of limited liability companies,
|
| |||||||
| |||||||
1 | if the liability company is treated as a partnership for | ||||||
2 | purposes of
federal and State income taxation, there shall | ||||||
3 | be allowed a credit under
this subsection (f) to be | ||||||
4 | determined in accordance with the determination
of income | ||||||
5 | and distributive share of income under Sections 702 and 704 | ||||||
6 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
7 | shall be .5% of the
basis for such property. The credit | ||||||
8 | shall be available only in the taxable
year in which the | ||||||
9 | property is placed in service in the Enterprise Zone or | ||||||
10 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
11 | the extent that it would reduce a taxpayer's
liability for | ||||||
12 | the tax imposed by subsections (a) and (b) of this Section | ||||||
13 | to
below zero. For tax years ending on or after December | ||||||
14 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
15 | which the property is placed in
service, or, if the amount | ||||||
16 | of the credit exceeds the tax liability for that
year, | ||||||
17 | whether it exceeds the original liability or the liability | ||||||
18 | as later
amended, such excess may be carried forward and | ||||||
19 | applied to the tax
liability of the 5 taxable years | ||||||
20 | following the excess credit year.
The credit shall be | ||||||
21 | applied to the earliest year for which there is a
| ||||||
22 | liability. If there is credit from more than one tax year | ||||||
23 | that is available
to offset a liability, the credit | ||||||
24 | accruing first in time shall be applied
first.
| ||||||
25 | (2) The term qualified property means property which:
| ||||||
26 | (A) is tangible, whether new or used, including |
| |||||||
| |||||||
1 | buildings and
structural components of buildings;
| ||||||
2 | (B) is depreciable pursuant to Section 167 of the | ||||||
3 | Internal Revenue
Code, except that "3-year property" | ||||||
4 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
5 | eligible for the credit provided by this subsection | ||||||
6 | (f);
| ||||||
7 | (C) is acquired by purchase as defined in Section | ||||||
8 | 179(d) of
the Internal Revenue Code;
| ||||||
9 | (D) is used in the Enterprise Zone or River Edge | ||||||
10 | Redevelopment Zone by the taxpayer; and
| ||||||
11 | (E) has not been previously used in Illinois in | ||||||
12 | such a manner and by
such a person as would qualify for | ||||||
13 | the credit provided by this subsection
(f) or | ||||||
14 | subsection (e).
| ||||||
15 | (3) The basis of qualified property shall be the basis | ||||||
16 | used to compute
the depreciation deduction for federal | ||||||
17 | income tax purposes.
| ||||||
18 | (4) If the basis of the property for federal income tax | ||||||
19 | depreciation
purposes is increased after it has been placed | ||||||
20 | in service in the Enterprise
Zone or River Edge | ||||||
21 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
22 | increase shall be deemed property
placed in service on the | ||||||
23 | date of such increase in basis.
| ||||||
24 | (5) The term "placed in service" shall have the same | ||||||
25 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
26 | (6) If during any taxable year, any property ceases to |
| |||||||
| |||||||
1 | be qualified
property in the hands of the taxpayer within | ||||||
2 | 48 months after being placed
in service, or the situs of | ||||||
3 | any qualified property is moved outside the
Enterprise Zone | ||||||
4 | or River Edge Redevelopment Zone within 48 months after | ||||||
5 | being placed in service, the tax
imposed under subsections | ||||||
6 | (a) and (b) of this Section for such taxable year
shall be | ||||||
7 | increased. Such increase shall be determined by (i) | ||||||
8 | recomputing
the investment credit which would have been | ||||||
9 | allowed for the year in which
credit for such property was | ||||||
10 | originally allowed by eliminating such
property from such | ||||||
11 | computation, and (ii) subtracting such recomputed credit
| ||||||
12 | from the amount of credit previously allowed. For the | ||||||
13 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
14 | qualified property resulting
from a redetermination of the | ||||||
15 | purchase price shall be deemed a disposition
of qualified | ||||||
16 | property to the extent of such reduction.
| ||||||
17 | (7) There shall be allowed an additional credit equal | ||||||
18 | to 0.5% of the basis of qualified property placed in | ||||||
19 | service during the taxable year in a River Edge | ||||||
20 | Redevelopment Zone, provided such property is placed in | ||||||
21 | service on or after July 1, 2006, and the taxpayer's base | ||||||
22 | employment within Illinois has increased by 1% or more over | ||||||
23 | the preceding year as determined by the taxpayer's | ||||||
24 | employment records filed with the Illinois Department of | ||||||
25 | Employment Security. Taxpayers who are new to Illinois | ||||||
26 | shall be deemed to have met the 1% growth in base |
| |||||||
| |||||||
1 | employment for the first year in which they file employment | ||||||
2 | records with the Illinois Department of Employment | ||||||
3 | Security. If, in any year, the increase in base employment | ||||||
4 | within Illinois over the preceding year is less than 1%, | ||||||
5 | the additional credit shall be limited to that percentage | ||||||
6 | times a fraction, the numerator of which is 0.5% and the | ||||||
7 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
8 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
9 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
| ||||||
10 | (1) A taxpayer conducting a trade or business in an | ||||||
11 | enterprise zone
or a High Impact Business designated by the | ||||||
12 | Department of Commerce and
Economic Opportunity or for | ||||||
13 | taxable years ending on or after December 31, 2006, in a | ||||||
14 | River Edge Redevelopment Zone conducting a trade or | ||||||
15 | business in a federally designated
Foreign Trade Zone or | ||||||
16 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
17 | by subsections (a) and (b) of this Section in the amount of | ||||||
18 | $500
per eligible employee hired to work in the zone during | ||||||
19 | the taxable year.
| ||||||
20 | (2) To qualify for the credit:
| ||||||
21 | (A) the taxpayer must hire 5 or more eligible | ||||||
22 | employees to work in an
enterprise zone, River Edge | ||||||
23 | Redevelopment Zone, or federally designated Foreign | ||||||
24 | Trade Zone or Sub-Zone
during the taxable year;
| ||||||
25 | (B) the taxpayer's total employment within the | ||||||
26 | enterprise zone, River Edge Redevelopment Zone, or
|
| |||||||
| |||||||
1 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
2 | must
increase by 5 or more full-time employees beyond | ||||||
3 | the total employed in that
zone at the end of the | ||||||
4 | previous tax year for which a jobs tax
credit under | ||||||
5 | this Section was taken, or beyond the total employed by | ||||||
6 | the
taxpayer as of December 31, 1985, whichever is | ||||||
7 | later; and
| ||||||
8 | (C) the eligible employees must be employed 180 | ||||||
9 | consecutive days in
order to be deemed hired for | ||||||
10 | purposes of this subsection.
| ||||||
11 | (3) An "eligible employee" means an employee who is:
| ||||||
12 | (A) Certified by the Department of Commerce and | ||||||
13 | Economic Opportunity
as "eligible for services" | ||||||
14 | pursuant to regulations promulgated in
accordance with | ||||||
15 | Title II of the Job Training Partnership Act, Training
| ||||||
16 | Services for the Disadvantaged or Title III of the Job | ||||||
17 | Training Partnership
Act, Employment and Training | ||||||
18 | Assistance for Dislocated Workers Program.
| ||||||
19 | (B) Hired after the enterprise zone, River Edge | ||||||
20 | Redevelopment Zone, or federally designated Foreign
| ||||||
21 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
22 | business was located in that zone, whichever is later.
| ||||||
23 | (C) Employed in the enterprise zone, River Edge | ||||||
24 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
25 | An employee is employed in an
enterprise zone or | ||||||
26 | federally designated Foreign Trade Zone or Sub-Zone
if |
| |||||||
| |||||||
1 | his services are rendered there or it is the base of
| ||||||
2 | operations for the services performed.
| ||||||
3 | (D) A full-time employee working 30 or more hours | ||||||
4 | per week.
| ||||||
5 | (4) For tax years ending on or after December 31, 1985 | ||||||
6 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
7 | for the tax year in which
the eligible employees are hired. | ||||||
8 | For tax years ending on or after
December 31, 1988, the | ||||||
9 | credit shall be allowed for the tax year immediately
| ||||||
10 | following the tax year in which the eligible employees are | ||||||
11 | hired. If the
amount of the credit exceeds the tax | ||||||
12 | liability for that year, whether it
exceeds the original | ||||||
13 | liability or the liability as later amended, such
excess | ||||||
14 | may be carried forward and applied to the tax liability of | ||||||
15 | the 5
taxable years following the excess credit year. The | ||||||
16 | credit shall be
applied to the earliest year for which | ||||||
17 | there is a liability. If there is
credit from more than one | ||||||
18 | tax year that is available to offset a liability,
earlier | ||||||
19 | credit shall be applied first.
| ||||||
20 | (5) The Department of Revenue shall promulgate such | ||||||
21 | rules and regulations
as may be deemed necessary to carry | ||||||
22 | out the purposes of this subsection (g).
| ||||||
23 | (6) The credit shall be available for eligible | ||||||
24 | employees hired on or
after January 1, 1986.
| ||||||
25 | (h) Investment credit; High Impact Business ; Green Energy | ||||||
26 | Business .
|
| |||||||
| |||||||
1 | (1) Subject to subsection (a) of Section 10 of the | ||||||
2 | Green Energy Business Act, or subsections (b) and (b-5) of | ||||||
3 | Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer | ||||||
4 | shall be allowed a credit
against the tax imposed by | ||||||
5 | subsections (a) and (b) of this Section for
investment in | ||||||
6 | qualified
property which is placed in service by a | ||||||
7 | Department of Commerce and Economic Opportunity
designated | ||||||
8 | Green Energy Business or High Impact Business. The credit | ||||||
9 | shall be .5% of the basis
for such property. The credit | ||||||
10 | shall not be available (i) until the minimum
investments in | ||||||
11 | qualified property set forth in subdivision (a)(3)(A) of
| ||||||
12 | Section 5.5 of the Illinois
Enterprise Zone Act have been | ||||||
13 | satisfied
or (ii) until the Department of Commerce and | ||||||
14 | Economic Opportunity designates the business as a Green | ||||||
15 | Energy Business under the Green Energy Business Act, or | ||||||
16 | until the time authorized in subsection (b-5) of the | ||||||
17 | Illinois
Enterprise Zone Act for entities designated as | ||||||
18 | High Impact Businesses under
subdivisions (a)(3)(B), | ||||||
19 | (a)(3)(C), and (a)(3)(D) of Section 5.5 of the Illinois
| ||||||
20 | Enterprise Zone Act, and shall not be allowed to the extent | ||||||
21 | that it would
reduce a taxpayer's liability for the tax | ||||||
22 | imposed by subsections (a) and (b) of
this Section to below | ||||||
23 | zero. The credit applicable to such investments shall be
| ||||||
24 | taken in the taxable year in which such investments have | ||||||
25 | been completed. The
credit for additional investments | ||||||
26 | beyond the minimum investment by a designated
high impact |
| |||||||
| |||||||
1 | business authorized under subdivision (a)(3)(A) of Section | ||||||
2 | 5.5 of
the Illinois Enterprise Zone Act shall be available | ||||||
3 | only in the taxable year in
which the property is placed in | ||||||
4 | service and shall not be allowed to the extent
that it | ||||||
5 | would reduce a taxpayer's liability for the tax imposed by | ||||||
6 | subsections
(a) and (b) of this Section to below zero.
For | ||||||
7 | tax years ending on or after December 31, 1987, the credit | ||||||
8 | shall be
allowed for the tax year in which the property is | ||||||
9 | placed in service, or, if
the amount of the credit exceeds | ||||||
10 | the tax liability for that year, whether
it exceeds the | ||||||
11 | original liability or the liability as later amended, such
| ||||||
12 | excess may be carried forward and applied to the tax | ||||||
13 | liability of the 5
taxable years following the excess | ||||||
14 | credit year. The credit shall be
applied to the earliest | ||||||
15 | year for which there is a liability. If there is
credit | ||||||
16 | from more than one tax year that is available to offset a | ||||||
17 | liability,
the credit accruing first in time shall be | ||||||
18 | applied first.
| ||||||
19 | Changes made in this subdivision (h)(1) by Public Act | ||||||
20 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
21 | reflect existing law.
| ||||||
22 | (2) The term qualified property means property which:
| ||||||
23 | (A) is tangible, whether new or used, including | ||||||
24 | buildings and
structural components of buildings;
| ||||||
25 | (B) is depreciable pursuant to Section 167 of the | ||||||
26 | Internal Revenue
Code, except that "3-year property" |
| |||||||
| |||||||
1 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
2 | eligible for the credit provided by this subsection | ||||||
3 | (h);
| ||||||
4 | (C) is acquired by purchase as defined in Section | ||||||
5 | 179(d) of the
Internal Revenue Code; and
| ||||||
6 | (D) is not eligible for the Enterprise Zone | ||||||
7 | Investment Credit provided
by subsection (f) of this | ||||||
8 | Section.
| ||||||
9 | (3) The basis of qualified property shall be the basis | ||||||
10 | used to compute
the depreciation deduction for federal | ||||||
11 | income tax purposes.
| ||||||
12 | (4) If the basis of the property for federal income tax | ||||||
13 | depreciation
purposes is increased after it has been placed | ||||||
14 | in service in a federally
designated Foreign Trade Zone or | ||||||
15 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
16 | such increase shall be deemed property placed in service on
| ||||||
17 | the date of such increase in basis.
| ||||||
18 | (5) The term "placed in service" shall have the same | ||||||
19 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
20 | (6) If during any taxable year ending on or before | ||||||
21 | December 31, 1996,
any property ceases to be qualified
| ||||||
22 | property in the hands of the taxpayer within 48 months | ||||||
23 | after being placed
in service, or the situs of any | ||||||
24 | qualified property is moved outside
Illinois within 48 | ||||||
25 | months after being placed in service, the tax imposed
under | ||||||
26 | subsections (a) and (b) of this Section for such taxable |
| |||||||
| |||||||
1 | year shall
be increased. Such increase shall be determined | ||||||
2 | by (i) recomputing the
investment credit which would have | ||||||
3 | been allowed for the year in which
credit for such property | ||||||
4 | was originally allowed by eliminating such
property from | ||||||
5 | such computation, and (ii) subtracting such recomputed | ||||||
6 | credit
from the amount of credit previously allowed. For | ||||||
7 | the purposes of this
paragraph (6), a reduction of the | ||||||
8 | basis of qualified property resulting
from a | ||||||
9 | redetermination of the purchase price shall be deemed a | ||||||
10 | disposition
of qualified property to the extent of such | ||||||
11 | reduction.
| ||||||
12 | (7) Beginning with tax years ending after December 31, | ||||||
13 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
14 | subsection (h) and thereby is
granted a tax abatement and | ||||||
15 | the taxpayer relocates its entire facility in
violation of | ||||||
16 | the explicit terms and length of the contract under Section
| ||||||
17 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
18 | subsections
(a) and (b) of this Section shall be increased | ||||||
19 | for the taxable year
in which the taxpayer relocated its | ||||||
20 | facility by an amount equal to the
amount of credit | ||||||
21 | received by the taxpayer under this subsection (h).
| ||||||
22 | (i) Credit for Personal Property Tax Replacement Income | ||||||
23 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
24 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
25 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
26 | (d) of this Section. This credit shall be computed by |
| |||||||
| |||||||
1 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
2 | Section by a fraction, the numerator
of which is base income | ||||||
3 | allocable to Illinois and the denominator of which is
Illinois | ||||||
4 | base income, and further multiplying the product by the tax | ||||||
5 | rate
imposed by subsections (a) and (b) of this Section.
| ||||||
6 | Any credit earned on or after December 31, 1986 under
this | ||||||
7 | subsection which is unused in the year
the credit is computed | ||||||
8 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
9 | and (b) for that year (whether it exceeds the original
| ||||||
10 | liability or the liability as later amended) may be carried | ||||||
11 | forward and
applied to the tax liability imposed by subsections | ||||||
12 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
13 | year, provided that no credit may
be carried forward to any | ||||||
14 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
15 | applied first to the earliest year for which there is a | ||||||
16 | liability. If
there is a credit under this subsection from more | ||||||
17 | than one tax year that is
available to offset a liability the | ||||||
18 | earliest credit arising under this
subsection shall be applied | ||||||
19 | first.
| ||||||
20 | If, during any taxable year ending on or after December 31, | ||||||
21 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
22 | Section for which a taxpayer
has claimed a credit under this | ||||||
23 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
24 | shall also be reduced. Such reduction shall be
determined by | ||||||
25 | recomputing the credit to take into account the reduced tax
| ||||||
26 | imposed by subsections (c) and (d). If any portion of the
|
| |||||||
| |||||||
1 | reduced amount of credit has been carried to a different | ||||||
2 | taxable year, an
amended return shall be filed for such taxable | ||||||
3 | year to reduce the amount of
credit claimed.
| ||||||
4 | (j) Training expense credit. Beginning with tax years | ||||||
5 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
6 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
7 | imposed by subsections (a) and (b) under this Section
for all | ||||||
8 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
9 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
10 | of Illinois by a taxpayer, for educational or vocational | ||||||
11 | training in
semi-technical or technical fields or semi-skilled | ||||||
12 | or skilled fields, which
were deducted from gross income in the | ||||||
13 | computation of taxable income. The
credit against the tax | ||||||
14 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
15 | training expenses. For partners, shareholders of subchapter S
| ||||||
16 | corporations, and owners of limited liability companies, if the | ||||||
17 | liability
company is treated as a partnership for purposes of | ||||||
18 | federal and State income
taxation, there shall be allowed a | ||||||
19 | credit under this subsection (j) to be
determined in accordance | ||||||
20 | with the determination of income and distributive
share of | ||||||
21 | income under Sections 702 and 704 and subchapter S of the | ||||||
22 | Internal
Revenue Code.
| ||||||
23 | Any credit allowed under this subsection which is unused in | ||||||
24 | the year
the credit is earned may be carried forward to each of | ||||||
25 | the 5 taxable
years following the year for which the credit is | ||||||
26 | first computed until it is
used. This credit shall be applied |
| |||||||
| |||||||
1 | first to the earliest year for which
there is a liability. If | ||||||
2 | there is a credit under this subsection from more
than one tax | ||||||
3 | year that is available to offset a liability the earliest
| ||||||
4 | credit arising under this subsection shall be applied first. No | ||||||
5 | carryforward
credit may be claimed in any tax year ending on or | ||||||
6 | after
December 31, 2003.
| ||||||
7 | (k) Research and development credit.
| ||||||
8 | For tax years ending after July 1, 1990 and prior to
| ||||||
9 | December 31, 2003, and beginning again for tax years ending on | ||||||
10 | or after December 31, 2004, a taxpayer shall be
allowed a | ||||||
11 | credit against the tax imposed by subsections (a) and (b) of | ||||||
12 | this
Section for increasing research activities in this State. | ||||||
13 | The credit
allowed against the tax imposed by subsections (a) | ||||||
14 | and (b) shall be equal
to 6 1/2% of the qualifying expenditures | ||||||
15 | for increasing research activities
in this State. For partners, | ||||||
16 | shareholders of subchapter S corporations, and
owners of | ||||||
17 | limited liability companies, if the liability company is | ||||||
18 | treated as a
partnership for purposes of federal and State | ||||||
19 | income taxation, there shall be
allowed a credit under this | ||||||
20 | subsection to be determined in accordance with the
| ||||||
21 | determination of income and distributive share of income under | ||||||
22 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
23 | Code.
| ||||||
24 | For purposes of this subsection, "qualifying expenditures" | ||||||
25 | means the
qualifying expenditures as defined for the federal | ||||||
26 | credit for increasing
research activities which would be |
| |||||||
| |||||||
1 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
2 | which are conducted in this State, "qualifying
expenditures for | ||||||
3 | increasing research activities in this State" means the
excess | ||||||
4 | of qualifying expenditures for the taxable year in which | ||||||
5 | incurred
over qualifying expenditures for the base period, | ||||||
6 | "qualifying expenditures
for the base period" means the average | ||||||
7 | of the qualifying expenditures for
each year in the base | ||||||
8 | period, and "base period" means the 3 taxable years
immediately | ||||||
9 | preceding the taxable year for which the determination is
being | ||||||
10 | made.
| ||||||
11 | Any credit in excess of the tax liability for the taxable | ||||||
12 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
13 | unused credit shown on its final completed return carried over | ||||||
14 | as a credit
against the tax liability for the following 5 | ||||||
15 | taxable years or until it has
been fully used, whichever occurs | ||||||
16 | first; provided that no credit earned in a tax year ending | ||||||
17 | prior to December 31, 2003 may be carried forward to any year | ||||||
18 | ending on or after December 31, 2003.
| ||||||
19 | If an unused credit is carried forward to a given year from | ||||||
20 | 2 or more
earlier years, that credit arising in the earliest | ||||||
21 | year will be applied
first against the tax liability for the | ||||||
22 | given year. If a tax liability for
the given year still | ||||||
23 | remains, the credit from the next earliest year will
then be | ||||||
24 | applied, and so on, until all credits have been used or no tax
| ||||||
25 | liability for the given year remains. Any remaining unused | ||||||
26 | credit or
credits then will be carried forward to the next |
| |||||||
| |||||||
1 | following year in which a
tax liability is incurred, except | ||||||
2 | that no credit can be carried forward to
a year which is more | ||||||
3 | than 5 years after the year in which the expense for
which the | ||||||
4 | credit is given was incurred.
| ||||||
5 | No inference shall be drawn from this amendatory Act of the | ||||||
6 | 91st General
Assembly in construing this Section for taxable | ||||||
7 | years beginning before January
1, 1999.
| ||||||
8 | (l) Environmental Remediation Tax Credit.
| ||||||
9 | (i) For tax years ending after December 31, 1997 and on | ||||||
10 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
11 | credit against the tax
imposed by subsections (a) and (b) | ||||||
12 | of this Section for certain amounts paid
for unreimbursed | ||||||
13 | eligible remediation costs, as specified in this | ||||||
14 | subsection.
For purposes of this Section, "unreimbursed | ||||||
15 | eligible remediation costs" means
costs approved by the | ||||||
16 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
17 | Section 58.14 of the Environmental Protection Act that were | ||||||
18 | paid in performing
environmental remediation at a site for | ||||||
19 | which a No Further Remediation Letter
was issued by the | ||||||
20 | Agency and recorded under Section 58.10 of the | ||||||
21 | Environmental
Protection Act. The credit must be claimed | ||||||
22 | for the taxable year in which
Agency approval of the | ||||||
23 | eligible remediation costs is granted. The credit is
not | ||||||
24 | available to any taxpayer if the taxpayer or any related | ||||||
25 | party caused or
contributed to, in any material respect, a | ||||||
26 | release of regulated substances on,
in, or under the site |
| |||||||
| |||||||
1 | that was identified and addressed by the remedial
action | ||||||
2 | pursuant to the Site Remediation Program of the | ||||||
3 | Environmental Protection
Act. After the Pollution Control | ||||||
4 | Board rules are adopted pursuant to the
Illinois | ||||||
5 | Administrative Procedure Act for the administration and | ||||||
6 | enforcement of
Section 58.9 of the Environmental | ||||||
7 | Protection Act, determinations as to credit
availability | ||||||
8 | for purposes of this Section shall be made consistent with | ||||||
9 | those
rules. For purposes of this Section, "taxpayer" | ||||||
10 | includes a person whose tax
attributes the taxpayer has | ||||||
11 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
12 | and "related party" includes the persons disallowed a | ||||||
13 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
14 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
15 | a related taxpayer, as well as any of its
partners. The | ||||||
16 | credit allowed against the tax imposed by subsections (a) | ||||||
17 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
18 | remediation costs in
excess of $100,000 per site, except | ||||||
19 | that the $100,000 threshold shall not apply
to any site | ||||||
20 | contained in an enterprise zone as determined by the | ||||||
21 | Department of
Commerce and Community Affairs (now | ||||||
22 | Department of Commerce and Economic Opportunity). The | ||||||
23 | total credit allowed shall not exceed
$40,000 per year with | ||||||
24 | a maximum total of $150,000 per site. For partners and
| ||||||
25 | shareholders of subchapter S corporations, there shall be | ||||||
26 | allowed a credit
under this subsection to be determined in |
| |||||||
| |||||||
1 | accordance with the determination of
income and | ||||||
2 | distributive share of income under Sections 702 and 704 and
| ||||||
3 | subchapter S of the Internal Revenue Code.
| ||||||
4 | (ii) A credit allowed under this subsection that is | ||||||
5 | unused in the year
the credit is earned may be carried | ||||||
6 | forward to each of the 5 taxable years
following the year | ||||||
7 | for which the credit is first earned until it is used.
The | ||||||
8 | term "unused credit" does not include any amounts of | ||||||
9 | unreimbursed eligible
remediation costs in excess of the | ||||||
10 | maximum credit per site authorized under
paragraph (i). | ||||||
11 | This credit shall be applied first to the earliest year
for | ||||||
12 | which there is a liability. If there is a credit under this | ||||||
13 | subsection
from more than one tax year that is available to | ||||||
14 | offset a liability, the
earliest credit arising under this | ||||||
15 | subsection shall be applied first. A
credit allowed under | ||||||
16 | this subsection may be sold to a buyer as part of a sale
of | ||||||
17 | all or part of the remediation site for which the credit | ||||||
18 | was granted. The
purchaser of a remediation site and the | ||||||
19 | tax credit shall succeed to the unused
credit and remaining | ||||||
20 | carry-forward period of the seller. To perfect the
| ||||||
21 | transfer, the assignor shall record the transfer in the | ||||||
22 | chain of title for the
site and provide written notice to | ||||||
23 | the Director of the Illinois Department of
Revenue of the | ||||||
24 | assignor's intent to sell the remediation site and the | ||||||
25 | amount of
the tax credit to be transferred as a portion of | ||||||
26 | the sale. In no event may a
credit be transferred to any |
| |||||||
| |||||||
1 | taxpayer if the taxpayer or a related party would
not be | ||||||
2 | eligible under the provisions of subsection (i).
| ||||||
3 | (iii) For purposes of this Section, the term "site" | ||||||
4 | shall have the same
meaning as under Section 58.2 of the | ||||||
5 | Environmental Protection Act.
| ||||||
6 | (m) Education expense credit. Beginning with tax years | ||||||
7 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
8 | of one or more qualifying pupils shall be allowed a credit
| ||||||
9 | against the tax imposed by subsections (a) and (b) of this | ||||||
10 | Section for
qualified education expenses incurred on behalf of | ||||||
11 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
12 | qualified education expenses, but in no
event may the total | ||||||
13 | credit under this subsection claimed by a
family that is the
| ||||||
14 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
15 | credit under
this subsection reduce the taxpayer's liability | ||||||
16 | under this Act to less than
zero. This subsection is exempt | ||||||
17 | from the provisions of Section 250 of this
Act.
| ||||||
18 | For purposes of this subsection:
| ||||||
19 | "Qualifying pupils" means individuals who (i) are | ||||||
20 | residents of the State of
Illinois, (ii) are under the age of | ||||||
21 | 21 at the close of the school year for
which a credit is | ||||||
22 | sought, and (iii) during the school year for which a credit
is | ||||||
23 | sought were full-time pupils enrolled in a kindergarten through | ||||||
24 | twelfth
grade education program at any school, as defined in | ||||||
25 | this subsection.
| ||||||
26 | "Qualified education expense" means the amount incurred
on |
| |||||||
| |||||||
1 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
2 | book fees, and
lab fees at the school in which the pupil is | ||||||
3 | enrolled during the regular school
year.
| ||||||
4 | "School" means any public or nonpublic elementary or | ||||||
5 | secondary school in
Illinois that is in compliance with Title | ||||||
6 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
7 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
8 | except that nothing shall be construed to require a child to
| ||||||
9 | attend any particular public or nonpublic school to qualify for | ||||||
10 | the credit
under this Section.
| ||||||
11 | "Custodian" means, with respect to qualifying pupils, an | ||||||
12 | Illinois resident
who is a parent, the parents, a legal | ||||||
13 | guardian, or the legal guardians of the
qualifying pupils.
| ||||||
14 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
15 | credit.
| ||||||
16 | (i) For tax years ending on or after December 31, 2006, | ||||||
17 | a taxpayer shall be allowed a credit against the tax | ||||||
18 | imposed by subsections (a) and (b) of this Section for | ||||||
19 | certain amounts paid for unreimbursed eligible remediation | ||||||
20 | costs, as specified in this subsection. For purposes of | ||||||
21 | this Section, "unreimbursed eligible remediation costs" | ||||||
22 | means costs approved by the Illinois Environmental | ||||||
23 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
24 | Environmental Protection Act that were paid in performing | ||||||
25 | environmental remediation at a site within a River Edge | ||||||
26 | Redevelopment Zone for which a No Further Remediation |
| |||||||
| |||||||
1 | Letter was issued by the Agency and recorded under Section | ||||||
2 | 58.10 of the Environmental Protection Act. The credit must | ||||||
3 | be claimed for the taxable year in which Agency approval of | ||||||
4 | the eligible remediation costs is granted. The credit is | ||||||
5 | not available to any taxpayer if the taxpayer or any | ||||||
6 | related party caused or contributed to, in any material | ||||||
7 | respect, a release of regulated substances on, in, or under | ||||||
8 | the site that was identified and addressed by the remedial | ||||||
9 | action pursuant to the Site Remediation Program of the | ||||||
10 | Environmental Protection Act. Determinations as to credit | ||||||
11 | availability for purposes of this Section shall be made | ||||||
12 | consistent with rules adopted by the Pollution Control | ||||||
13 | Board pursuant to the Illinois Administrative Procedure | ||||||
14 | Act for the administration and enforcement of Section 58.9 | ||||||
15 | of the Environmental Protection Act. For purposes of this | ||||||
16 | Section, "taxpayer" includes a person whose tax attributes | ||||||
17 | the taxpayer has succeeded to under Section 381 of the | ||||||
18 | Internal Revenue Code and "related party" includes the | ||||||
19 | persons disallowed a deduction for losses by paragraphs | ||||||
20 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
21 | Code by virtue of being a related taxpayer, as well as any | ||||||
22 | of its partners. The credit allowed against the tax imposed | ||||||
23 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
24 | unreimbursed eligible remediation costs in excess of | ||||||
25 | $100,000 per site. | ||||||
26 | (ii) A credit allowed under this subsection that is |
| |||||||
| |||||||
1 | unused in the year the credit is earned may be carried | ||||||
2 | forward to each of the 5 taxable years following the year | ||||||
3 | for which the credit is first earned until it is used. This | ||||||
4 | credit shall be applied first to the earliest year for | ||||||
5 | which there is a liability. If there is a credit under this | ||||||
6 | subsection from more than one tax year that is available to | ||||||
7 | offset a liability, the earliest credit arising under this | ||||||
8 | subsection shall be applied first. A credit allowed under | ||||||
9 | this subsection may be sold to a buyer as part of a sale of | ||||||
10 | all or part of the remediation site for which the credit | ||||||
11 | was granted. The purchaser of a remediation site and the | ||||||
12 | tax credit shall succeed to the unused credit and remaining | ||||||
13 | carry-forward period of the seller. To perfect the | ||||||
14 | transfer, the assignor shall record the transfer in the | ||||||
15 | chain of title for the site and provide written notice to | ||||||
16 | the Director of the Illinois Department of Revenue of the | ||||||
17 | assignor's intent to sell the remediation site and the | ||||||
18 | amount of the tax credit to be transferred as a portion of | ||||||
19 | the sale. In no event may a credit be transferred to any | ||||||
20 | taxpayer if the taxpayer or a related party would not be | ||||||
21 | eligible under the provisions of subsection (i). | ||||||
22 | (iii) For purposes of this Section, the term "site" | ||||||
23 | shall have the same meaning as under Section 58.2 of the | ||||||
24 | Environmental Protection Act. | ||||||
25 | (iv) This subsection is exempt from the provisions of | ||||||
26 | Section 250.
|
| |||||||
| |||||||
1 | (Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09; | ||||||
2 | 96-116, eff. 7-31-09; revised 8-20-09.)
| ||||||
3 | Section 25. The Retailers' Occupation Tax Act is amended by | ||||||
4 | changing Sections 1d, 1e, 1f, and 5l as follows:
| ||||||
5 | (35 ILCS 120/1d) (from Ch. 120, par. 440d)
| ||||||
6 | Sec. 1d. Subject to the provisions of Section 1f, all | ||||||
7 | tangible personal
property to be used or consumed within an | ||||||
8 | enterprise zone established
pursuant to the "Illinois | ||||||
9 | Enterprise Zone Act", as amended, or subject to
the provisions | ||||||
10 | of Section 5.5 of the Illinois Enterprise Zone Act, or subject | ||||||
11 | to the provisions of Section 10 of the Green Energy Business | ||||||
12 | Act, all
tangible personal property to be used or consumed by | ||||||
13 | any High Impact Business or Green Energy Business ,
in the | ||||||
14 | process of the manufacturing or assembly of tangible personal | ||||||
15 | property
for wholesale or retail sale or lease or in the | ||||||
16 | process of graphic arts
production if used or consumed at a | ||||||
17 | facility which is a Department of
Commerce and Economic | ||||||
18 | Opportunity certified business and located in a county
of more | ||||||
19 | than 4,000 persons and less than 45,000 persons is exempt from
| ||||||
20 | the tax imposed by
this Act. This exemption includes repair and | ||||||
21 | replacement parts for
machinery and equipment used primarily in | ||||||
22 | the process of manufacturing or
assembling tangible personal | ||||||
23 | property or in the process of graphic arts
production if used | ||||||
24 | or consumed at a facility which is a Department of
Commerce and |
| |||||||
| |||||||
1 | Economic Opportunity certified business and located in a county
| ||||||
2 | of more than 4,000 persons and less than 45,000 persons for | ||||||
3 | wholesale or retail sale, or
lease, and equipment, | ||||||
4 | manufacturing or graphic arts fuels, material and
supplies for | ||||||
5 | the
maintenance, repair or operation of such manufacturing or | ||||||
6 | assembling
or graphic arts machinery or equipment.
| ||||||
7 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
8 | (35 ILCS 120/1e) (from Ch. 120, par. 440e)
| ||||||
9 | Sec. 1e.
Subject to the provisions of Section 1f, or | ||||||
10 | subject to the
provisions of Section 5.5 of the Illinois | ||||||
11 | Enterprise Zone Act, or subject to the provisions of Section 10 | ||||||
12 | of the Green Energy Business Act, all tangible
personal | ||||||
13 | property to be used or consumed in the operation of pollution
| ||||||
14 | control facilities, as defined in Section 1a of this Act, | ||||||
15 | within an
enterprise zone established pursuant to the "Illinois | ||||||
16 | Enterprise Zone Act",
as amended, shall be exempt from the tax | ||||||
17 | imposed by this Act.
| ||||||
18 | (Source: P.A. 85-1182.)
| ||||||
19 | (35 ILCS 120/1f) (from Ch. 120, par. 440f)
| ||||||
20 | Sec. 1f. Except for High Impact Businesses or Green Energy | ||||||
21 | Businesses , the exemption stated in
Sections 1d and 1e of this | ||||||
22 | Act shall only apply to business enterprises which:
| ||||||
23 | (1) either (i) make investments which cause the | ||||||
24 | creation of a minimum of
200 full-time equivalent jobs in |
| |||||||
| |||||||
1 | Illinois or (ii) make investments which
cause the retention | ||||||
2 | of a minimum of 2000 full-time jobs in Illinois or
(iii) | ||||||
3 | make investments of a minimum of $40,000,000 and retain at | ||||||
4 | least
90% of the jobs in place on the date on which the | ||||||
5 | exemption is granted and
for the duration of the exemption; | ||||||
6 | and
| ||||||
7 | (2) are located in an Enterprise Zone established | ||||||
8 | pursuant to the
Illinois Enterprise Zone Act; and
| ||||||
9 | (3) are certified by the Department of Commerce and | ||||||
10 | Economic Opportunity as
complying with the requirements | ||||||
11 | specified in clauses (1), (2) and (3).
| ||||||
12 | Any business enterprise seeking to avail itself of the | ||||||
13 | exemptions stated
in Sections 1d or 1e, or both, shall make | ||||||
14 | application to the Department of
Commerce and Economic | ||||||
15 | Opportunity in such form and providing such information
as may | ||||||
16 | be prescribed by the Department of Commerce and Economic | ||||||
17 | Opportunity.
However, no business enterprise shall be | ||||||
18 | required, as a condition for
certification under clause (4) of | ||||||
19 | this Section, to attest that its decision
to invest under | ||||||
20 | clause (1) of this Section and to locate under clause (2)
of | ||||||
21 | this Section is predicated upon the availability of the | ||||||
22 | exemptions
authorized by Sections 1d or 1e.
| ||||||
23 | The Department of Commerce and Economic Opportunity shall | ||||||
24 | determine whether
the business enterprise meets the criteria | ||||||
25 | prescribed in this Section. If
the Department of Commerce and | ||||||
26 | Economic Opportunity determines that such
business enterprise |
| |||||||
| |||||||
1 | meets the criteria, it shall issue a certificate of
eligibility | ||||||
2 | for exemption to the business enterprise in such form as is
| ||||||
3 | prescribed by the Department of Revenue. The Department of | ||||||
4 | Commerce and
Economic Opportunity shall act upon such | ||||||
5 | certification requests within 60 days
after receipt of the | ||||||
6 | application, and shall file with the Department of
Revenue a | ||||||
7 | copy of each certificate of eligibility for exemption.
| ||||||
8 | The Department of Commerce and Economic Opportunity shall | ||||||
9 | have the power to
promulgate rules and regulations to carry out | ||||||
10 | the provisions of this
Section including the power to define | ||||||
11 | the amounts and types of eligible
investments not specified in | ||||||
12 | this Section which business enterprises
must make in order to | ||||||
13 | receive the exemptions stated in Sections 1d and 1e
of this | ||||||
14 | Act; and to require that any business enterprise that is | ||||||
15 | granted a
tax exemption repay the exempted tax if the business | ||||||
16 | enterprise fails to
comply with the terms and conditions of the | ||||||
17 | certification.
| ||||||
18 | Such certificate of eligibility for exemption shall be | ||||||
19 | presented by the
business enterprise to its supplier when | ||||||
20 | making the initial purchase of
tangible personal property for | ||||||
21 | which an exemption is granted by Section 1d or
Section 1e, or | ||||||
22 | both, together with a certification by the business enterprise
| ||||||
23 | that such tangible personal property is exempt from taxation | ||||||
24 | under Section
1d or Section 1e and by indicating the exempt | ||||||
25 | status of each subsequent
purchase on the face of the purchase | ||||||
26 | order.
|
| |||||||
| |||||||
1 | The Department of Commerce and Economic Opportunity shall | ||||||
2 | determine the
period during which such exemption from the taxes | ||||||
3 | imposed under this Act is
in effect which shall not exceed 20 | ||||||
4 | years.
| ||||||
5 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
6 | (35 ILCS 120/5l) (from Ch. 120, par. 444l)
| ||||||
7 | Sec. 5l. Beginning January 1, 1995, each retailer who makes | ||||||
8 | a sale of
building materials that will be incorporated into a | ||||||
9 | High Impact Business
location as designated by the Department | ||||||
10 | of Commerce and Economic Opportunity
under Section 5.5 of the | ||||||
11 | Illinois Enterprise Zone Act or Section 10 of the Green Energy | ||||||
12 | Business Act may deduct receipts from
such sales when | ||||||
13 | calculating only the 6.25% State rate of tax
imposed by this | ||||||
14 | Act. Beginning on the effective date of this amendatory Act of
| ||||||
15 | 1995, a retailer may also deduct receipts from such sales when | ||||||
16 | calculating any
applicable local taxes. However, until the | ||||||
17 | effective date of this amendatory
Act of 1995, a retailer may | ||||||
18 | file claims for credit or refund to recover the
amount of any | ||||||
19 | applicable local tax paid on such sales. No retailer who is
| ||||||
20 | eligible for the deduction or credit
under Section 5k of this | ||||||
21 | Act for making a sale of building materials to be
incorporated | ||||||
22 | into real estate in an enterprise zone by rehabilitation,
| ||||||
23 | remodeling or new construction shall be eligible for the | ||||||
24 | deduction or
credit authorized under this Section.
| ||||||
25 | (Source: P.A. 94-793, eff. 5-19-06.)
|
| |||||||
| |||||||
1 | Section 30. The Public Utilities Act is amended by changing | ||||||
2 | Sections 9-222 and 9-222.1A as follows:
| ||||||
3 | (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
| ||||||
4 | Sec. 9-222.
Whenever a tax is imposed upon a public utility
| ||||||
5 | engaged in the business of distributing, supplying,
| ||||||
6 | furnishing, or selling gas for use or consumption pursuant to | ||||||
7 | Section 2 of
the Gas Revenue Tax Act, or whenever a tax is
| ||||||
8 | required to be collected by a delivering supplier pursuant to | ||||||
9 | Section 2-7 of
the Electricity Excise Tax Act, or whenever a | ||||||
10 | tax is imposed upon a public
utility pursuant to Section
2-202 | ||||||
11 | of this Act, such utility may charge its customers, other than
| ||||||
12 | customers who are Green Energy Businesses under Section 10 of | ||||||
13 | the Green Energy Business Act, High Impact Businesses high | ||||||
14 | impact businesses under Section 5.5
of the Illinois Enterprise | ||||||
15 | Zone Act, or certified business enterprises
under Section | ||||||
16 | 9-222.1 of this Act, to the extent of such exemption and
during | ||||||
17 | the period in which such exemption is in effect,
in addition to | ||||||
18 | any rate authorized by this Act, an additional
charge equal to | ||||||
19 | the total amount of such taxes. The exemption of this
Section | ||||||
20 | relating to High Impact Businesses high impact businesses shall | ||||||
21 | be subject to the
provisions of subsections (a), (b), and (b-5) | ||||||
22 | of Section 5.5 of
the Illinois
Enterprise Zone Act. The | ||||||
23 | exemption of this Section relating to Green Energy Businesses | ||||||
24 | shall be subject to the provisions of subsection (a) of Section |
| |||||||
| |||||||
1 | 10 of the Green Energy Business Act. This requirement shall not
| ||||||
2 | apply to taxes on invested capital imposed pursuant to the | ||||||
3 | Messages Tax
Act, the Gas Revenue Tax Act and the Public | ||||||
4 | Utilities Revenue Act.
Such utility shall file with the | ||||||
5 | Commission
a supplemental schedule which shall specify such | ||||||
6 | additional charge and
which shall become effective upon filing | ||||||
7 | without further notice. Such
additional charge shall be shown | ||||||
8 | separately on the utility bill to each
customer. The Commission | ||||||
9 | shall have the power to investigate whether or
not such | ||||||
10 | supplemental schedule correctly specifies such additional | ||||||
11 | charge,
but shall have no power to suspend such supplemental | ||||||
12 | schedule. If the
Commission finds, after a hearing, that such | ||||||
13 | supplemental schedule does not
correctly specify such | ||||||
14 | additional charge, it shall by order require a
refund to the | ||||||
15 | appropriate customers of the excess, if any, with interest,
in | ||||||
16 | such manner as it shall deem just and reasonable, and in and by | ||||||
17 | such
order shall require the utility to file an amended | ||||||
18 | supplemental schedule
corresponding to the finding and order of | ||||||
19 | the Commission.
Except with respect to taxes imposed on | ||||||
20 | invested capital,
such tax liabilities shall be recovered from | ||||||
21 | customers solely by means of
the additional charges authorized | ||||||
22 | by this Section.
| ||||||
23 | (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
| ||||||
24 | (220 ILCS 5/9-222.1A)
| ||||||
25 | Sec. 9-222.1A. High impact business or green energy |
| |||||||
| |||||||
1 | business . Beginning on August 1, 1998 and
thereafter, a | ||||||
2 | business enterprise that is certified as a High Impact Business | ||||||
3 | or a Green Energy Business
by the Department of Commerce and | ||||||
4 | Economic Opportunity (formerly Department of Commerce and | ||||||
5 | Community Affairs) is exempt from the tax
imposed by Section | ||||||
6 | 2-4 of the Electricity Excise Tax Law, if the High Impact
| ||||||
7 | Business or Green Energy Business is registered to self-assess | ||||||
8 | that tax, and is exempt from any
additional charges added to | ||||||
9 | the business enterprise's utility bills as a
pass-on of State | ||||||
10 | utility taxes under Section 9-222 of this Act, to the extent
| ||||||
11 | the tax or charges are exempted by the percentage specified by | ||||||
12 | the Department
of Commerce and Economic Opportunity for State | ||||||
13 | utility taxes, provided the
business enterprise meets the | ||||||
14 | following criteria:
| ||||||
15 | (1) (A) it intends either (i) to make a minimum | ||||||
16 | eligible investment
of
$12,000,000 that will be placed | ||||||
17 | in service in qualified property in Illinois
and is | ||||||
18 | intended to create at least 500 full-time equivalent | ||||||
19 | jobs at a
designated
location in Illinois; or (ii) to | ||||||
20 | make a minimum eligible investment of
$30,000,000 that | ||||||
21 | will be placed in service in qualified property in
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22 | Illinois and is intended to retain at least 1,500 | ||||||
23 | full-time equivalent jobs at
a designated location in | ||||||
24 | Illinois; or
| ||||||
25 | (B) it meets the criteria of subdivision | ||||||
26 | (a)(3)(B), (a)(3)(C), or
(a)(3)(D) of
Section 5.5 of |
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1 | the
Illinois Enterprise Zone Act , or of subsection (a) | ||||||
2 | of Section 10 of the Green Energy Business Act ;
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3 | (2) it is designated as a High Impact Business or
Green | ||||||
4 | Energy Business by the Department of
Commerce and Economic | ||||||
5 | Opportunity; and
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6 | (3) it is certified by the Department of Commerce and | ||||||
7 | Economic Opportunity as complying with the requirements | ||||||
8 | specified in clauses (1) and (2) of
this Section.
| ||||||
9 | The Department of Commerce and Economic Opportunity shall | ||||||
10 | determine the period
during which the exemption from the | ||||||
11 | Electricity Excise Tax Law and the
charges imposed under | ||||||
12 | Section 9-222 are in effect, which shall not exceed 20
years | ||||||
13 | from the date of initial certification, and shall specify the | ||||||
14 | percentage
of the exemption from those taxes or additional | ||||||
15 | charges.
| ||||||
16 | The Department of Commerce and Economic Opportunity is | ||||||
17 | authorized to
promulgate rules and regulations to carry out the | ||||||
18 | provisions of this Section,
including procedures for complying | ||||||
19 | with the requirements specified in
clauses (1) and (2) of this | ||||||
20 | Section and procedures for applying for the
exemptions | ||||||
21 | authorized under this Section; to define the amounts and types | ||||||
22 | of
eligible investments that business enterprises must make in | ||||||
23 | order to receive
State utility tax exemptions or exemptions | ||||||
24 | from the additional charges imposed
under Section 9-222 and | ||||||
25 | this Section; to
approve such utility tax exemptions for | ||||||
26 | business enterprises whose investments
are not yet placed in |
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| |||||||
1 | service; and to require that business enterprises
granted tax | ||||||
2 | exemptions or exemptions from additional charges under Section
| ||||||
3 | 9-222 repay the exempted amount if the business enterprise | ||||||
4 | fails
to comply with the terms and conditions of the | ||||||
5 | certification.
| ||||||
6 | Upon certification of the business enterprises by the | ||||||
7 | Department of Commerce
and Economic Opportunity, the | ||||||
8 | Department of Commerce and Economic Opportunity shall
notify | ||||||
9 | the Department of Revenue of the certification. The Department | ||||||
10 | of
Revenue shall notify the public utilities of the exemption | ||||||
11 | status of business
enterprises from the tax or pass-on charges | ||||||
12 | of State utility taxes. The
exemption
status shall take effect | ||||||
13 | within 3 months after certification of the
business enterprise.
| ||||||
14 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
|