Rep. Jim Sacia
Filed: 3/21/2012
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO HOUSE BILL 4941
| ||||||
2 | AMENDMENT NO. ______. Amend House Bill 4941 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Economic Development for a Growing Economy | ||||||
5 | Tax Credit Act is amended by changing Section 5-15 as follows: | ||||||
6 | (35 ILCS 10/5-15) | ||||||
7 | (Text of Section before amendment by P.A. 97-636 ) | ||||||
8 | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||||||
9 | forth in this
Act, a Taxpayer is
entitled to a Credit against | ||||||
10 | or, as described in subsection (g) of this Section, a payment | ||||||
11 | towards taxes imposed pursuant to subsections (a) and (b)
of | ||||||
12 | Section 201 of the Illinois
Income Tax Act that may be imposed | ||||||
13 | on the Taxpayer for a taxable year beginning
on or
after | ||||||
14 | January 1, 1999,
if the Taxpayer is awarded a Credit by the | ||||||
15 | Department under this Act for that
taxable year. | ||||||
16 | (a) The Department shall make Credit awards under this Act |
| |||||||
| |||||||
1 | to foster job
creation and retention in Illinois. | ||||||
2 | (b) A person that proposes a project to create new jobs in | ||||||
3 | Illinois must
enter into an Agreement with the
Department for | ||||||
4 | the Credit under this Act. | ||||||
5 | (c) The Credit shall be claimed for the taxable years | ||||||
6 | specified in the
Agreement. | ||||||
7 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
8 | attributable to
the project that is the subject of the | ||||||
9 | Agreement. | ||||||
10 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
11 | Applicant that uses a PEO if all other award criteria are | ||||||
12 | satisfied.
| ||||||
13 | (f) In lieu of the Credit allowed under this Act against | ||||||
14 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
15 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
16 | ending on or after December 31, 2009, the Taxpayer may elect to | ||||||
17 | claim the Credit against its obligation to pay over withholding | ||||||
18 | under Section 704A of the Illinois Income Tax Act. | ||||||
19 | (1) The election under this subsection (f) may be made | ||||||
20 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
21 | the following business activities: water purification and | ||||||
22 | treatment, motor vehicle metal stamping, automobile | ||||||
23 | manufacturing, automobile and light duty motor vehicle | ||||||
24 | manufacturing, motor vehicle manufacturing, light truck | ||||||
25 | and utility vehicle manufacturing, heavy duty truck | ||||||
26 | manufacturing, motor vehicle body manufacturing, cable |
| |||||||
| |||||||
1 | television infrastructure design or manufacturing, or | ||||||
2 | wireless telecommunication or computing terminal device | ||||||
3 | design or manufacturing for use on public networks and (ii) | ||||||
4 | meets the following criteria: | ||||||
5 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
6 | Illinois net loss deduction under Section 207 of the | ||||||
7 | Illinois Income Tax Act for the taxable year in which | ||||||
8 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
9 | full-time employees in this State during the taxable | ||||||
10 | year in which the Credit is awarded, (iii) has an | ||||||
11 | Agreement under this Act on December 14, 2009 (the | ||||||
12 | effective date of Public Act 96-834), and (iv) is in | ||||||
13 | compliance with all provisions of that Agreement; | ||||||
14 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
15 | Illinois net loss deduction under Section 207 of the | ||||||
16 | Illinois Income Tax Act for the taxable year in which | ||||||
17 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
18 | full-time employees in this State during the taxable | ||||||
19 | year in which the Credit is awarded, and (iii) has | ||||||
20 | applied for an Agreement within 365 days after December | ||||||
21 | 14, 2009 (the effective date of Public Act 96-834); | ||||||
22 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
23 | loss carryforward under Section 207 of the Illinois | ||||||
24 | Income Tax Act in a taxable year ending during calendar | ||||||
25 | year 2008, (ii) has applied for an Agreement within 150 | ||||||
26 | days after the effective date of this amendatory Act of |
| |||||||
| |||||||
1 | the 96th General Assembly, (iii) creates at least 400 | ||||||
2 | new jobs in Illinois, (iv) retains at least 2,000 jobs | ||||||
3 | in Illinois that would have been at risk of relocation | ||||||
4 | out of Illinois over a 10-year period, and (v) makes a | ||||||
5 | capital investment of at least $75,000,000; | ||||||
6 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
7 | loss carryforward under Section 207 of the Illinois | ||||||
8 | Income Tax Act in a taxable year ending during calendar | ||||||
9 | year 2009, (ii) has applied for an Agreement within 150 | ||||||
10 | days after the effective date of this amendatory Act of | ||||||
11 | the 96th General Assembly, (iii) creates at least 150 | ||||||
12 | new jobs, (iv) retains at least 1,000 jobs in Illinois | ||||||
13 | that would have been at risk of relocation out of | ||||||
14 | Illinois over a 10-year period, and (v) makes a capital | ||||||
15 | investment of at least $57,000,000; or | ||||||
16 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
17 | full-time employees in the State during the year in | ||||||
18 | which the Credit is awarded, (ii) commits to make at | ||||||
19 | least $500,000,000 in combined capital improvements | ||||||
20 | and project costs under the Agreement, (iii) applies | ||||||
21 | for an Agreement between January 1, 2011 and June 30, | ||||||
22 | 2011, (iv) executes an Agreement for the Credit during | ||||||
23 | calendar year 2011, and (v) was incorporated no more | ||||||
24 | than 5 years before the filing of an application for an | ||||||
25 | Agreement. | ||||||
26 | (1.5) The election under this subsection (f) may also |
| |||||||
| |||||||
1 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
2 | agreement that was executed between January 1, 2011 and | ||||||
3 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
4 | the manufacture of inner tubes or tires, or both, from | ||||||
5 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
6 | 2,400 full-time employees in Illinois at the time of | ||||||
7 | application, (iii) creates at least 350 full-time jobs and | ||||||
8 | retains at least 250 full-time jobs in Illinois that would | ||||||
9 | have been at risk of being created or retained outside of | ||||||
10 | Illinois, and (iv) makes a capital investment of at least | ||||||
11 | $200,000,000 at the project location. | ||||||
12 | (1.8) The election under this subsection (f) may also | ||||||
13 | be made by a Taxpayer that is primarily engaged in the | ||||||
14 | manufacturing of food products if the Taxpayer: (i) employs | ||||||
15 | a minimum of 300 full-time employees in Illinois at the | ||||||
16 | time of application; (ii) intends to create at least 5 | ||||||
17 | additional jobs in Illinois after the approval of the | ||||||
18 | Taxpayer's application; (iii) pledges to make a capital | ||||||
19 | investment of at least $4,000,000 at either the project | ||||||
20 | location or elsewhere in Illinois; (iv) states, as a part | ||||||
21 | of its application, that, as a consequence of tax laws in | ||||||
22 | jurisdictions located outside of Illinois, the election is | ||||||
23 | necessary for the Taxpayer's maximum enjoyment of net | ||||||
24 | benefits under this Act; and (v) states, as a part of its | ||||||
25 | application, that it has received an offer of tax | ||||||
26 | incentives to relocate the facility to another state. The |
| |||||||
| |||||||
1 | election under this item (1.8) must be made between | ||||||
2 | September 1, 2012 and December 31, 2012. | ||||||
3 | (2) An election under this subsection shall allow the | ||||||
4 | credit to be taken against payments otherwise due under | ||||||
5 | Section 704A of the Illinois Income Tax Act during the | ||||||
6 | first calendar year beginning after the end of the taxable | ||||||
7 | year in which the credit is awarded under this Act. | ||||||
8 | (3) The election shall be made in the form and manner | ||||||
9 | required by the Illinois Department of Revenue and, once | ||||||
10 | made, shall be irrevocable. | ||||||
11 | (4) If a Taxpayer who meets the requirements of | ||||||
12 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
13 | elects to claim the Credit against its withholdings as | ||||||
14 | provided in this subsection (f), then, on and after the | ||||||
15 | date of the election, the terms of the Agreement between | ||||||
16 | the Taxpayer and the Department may not be further amended | ||||||
17 | during the term of the Agreement. | ||||||
18 | (g) A pass-through entity that has been awarded a credit | ||||||
19 | under this Act, its shareholders, or its partners may treat | ||||||
20 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
21 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
22 | "tax payment" means a payment as described in Article 6 or | ||||||
23 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
24 | made by a pass-through entity on behalf of any of its | ||||||
25 | shareholders or partners to satisfy such shareholders' or | ||||||
26 | partners' taxes imposed pursuant to subsections (a) and (b) of |
| |||||||
| |||||||
1 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
2 | the amount of the award credited pursuant to this Act exceed | ||||||
3 | the Illinois income tax liability of the pass-through entity or | ||||||
4 | its shareholders or partners for the taxable year. | ||||||
5 | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | ||||||
6 | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | ||||||
7 | 3-4-11; 97-2, eff. 5-6-11.) | ||||||
8 | (Text of Section after amendment by P.A. 97-636 ) | ||||||
9 | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||||||
10 | forth in this
Act, a Taxpayer is
entitled to a Credit against | ||||||
11 | or, as described in subsection (g) of this Section, a payment | ||||||
12 | towards taxes imposed pursuant to subsections (a) and (b)
of | ||||||
13 | Section 201 of the Illinois
Income Tax Act that may be imposed | ||||||
14 | on the Taxpayer for a taxable year beginning
on or
after | ||||||
15 | January 1, 1999,
if the Taxpayer is awarded a Credit by the | ||||||
16 | Department under this Act for that
taxable year. | ||||||
17 | (a) The Department shall make Credit awards under this Act | ||||||
18 | to foster job
creation and retention in Illinois. | ||||||
19 | (b) A person that proposes a project to create new jobs in | ||||||
20 | Illinois must
enter into an Agreement with the
Department for | ||||||
21 | the Credit under this Act. | ||||||
22 | (c) The Credit shall be claimed for the taxable years | ||||||
23 | specified in the
Agreement. | ||||||
24 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
25 | attributable to
the project that is the subject of the |
| |||||||
| |||||||
1 | Agreement. | ||||||
2 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
3 | Applicant that uses a PEO if all other award criteria are | ||||||
4 | satisfied.
| ||||||
5 | (f) In lieu of the Credit allowed under this Act against | ||||||
6 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
7 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
8 | ending on or after December 31, 2009, the Taxpayer may elect to | ||||||
9 | claim the Credit against its obligation to pay over withholding | ||||||
10 | under Section 704A of the Illinois Income Tax Act. | ||||||
11 | (1) The election under this subsection (f) may be made | ||||||
12 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
13 | the following business activities: water purification and | ||||||
14 | treatment, motor vehicle metal stamping, automobile | ||||||
15 | manufacturing, automobile and light duty motor vehicle | ||||||
16 | manufacturing, motor vehicle manufacturing, light truck | ||||||
17 | and utility vehicle manufacturing, heavy duty truck | ||||||
18 | manufacturing, motor vehicle body manufacturing, cable | ||||||
19 | television infrastructure design or manufacturing, or | ||||||
20 | wireless telecommunication or computing terminal device | ||||||
21 | design or manufacturing for use on public networks and (ii) | ||||||
22 | meets the following criteria: | ||||||
23 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
24 | Illinois net loss deduction under Section 207 of the | ||||||
25 | Illinois Income Tax Act for the taxable year in which | ||||||
26 | the Credit is awarded, (ii) employed a minimum of 1,000 |
| |||||||
| |||||||
1 | full-time employees in this State during the taxable | ||||||
2 | year in which the Credit is awarded, (iii) has an | ||||||
3 | Agreement under this Act on December 14, 2009 (the | ||||||
4 | effective date of Public Act 96-834), and (iv) is in | ||||||
5 | compliance with all provisions of that Agreement; | ||||||
6 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
7 | Illinois net loss deduction under Section 207 of the | ||||||
8 | Illinois Income Tax Act for the taxable year in which | ||||||
9 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
10 | full-time employees in this State during the taxable | ||||||
11 | year in which the Credit is awarded, and (iii) has | ||||||
12 | applied for an Agreement within 365 days after December | ||||||
13 | 14, 2009 (the effective date of Public Act 96-834); | ||||||
14 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
15 | loss carryforward under Section 207 of the Illinois | ||||||
16 | Income Tax Act in a taxable year ending during calendar | ||||||
17 | year 2008, (ii) has applied for an Agreement within 150 | ||||||
18 | days after the effective date of this amendatory Act of | ||||||
19 | the 96th General Assembly, (iii) creates at least 400 | ||||||
20 | new jobs in Illinois, (iv) retains at least 2,000 jobs | ||||||
21 | in Illinois that would have been at risk of relocation | ||||||
22 | out of Illinois over a 10-year period, and (v) makes a | ||||||
23 | capital investment of at least $75,000,000; | ||||||
24 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
25 | loss carryforward under Section 207 of the Illinois | ||||||
26 | Income Tax Act in a taxable year ending during calendar |
| |||||||
| |||||||
1 | year 2009, (ii) has applied for an Agreement within 150 | ||||||
2 | days after the effective date of this amendatory Act of | ||||||
3 | the 96th General Assembly, (iii) creates at least 150 | ||||||
4 | new jobs, (iv) retains at least 1,000 jobs in Illinois | ||||||
5 | that would have been at risk of relocation out of | ||||||
6 | Illinois over a 10-year period, and (v) makes a capital | ||||||
7 | investment of at least $57,000,000; or | ||||||
8 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
9 | full-time employees in the State during the year in | ||||||
10 | which the Credit is awarded, (ii) commits to make at | ||||||
11 | least $500,000,000 in combined capital improvements | ||||||
12 | and project costs under the Agreement, (iii) applies | ||||||
13 | for an Agreement between January 1, 2011 and June 30, | ||||||
14 | 2011, (iv) executes an Agreement for the Credit during | ||||||
15 | calendar year 2011, and (v) was incorporated no more | ||||||
16 | than 5 years before the filing of an application for an | ||||||
17 | Agreement. | ||||||
18 | (1.5) The election under this subsection (f) may also | ||||||
19 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
20 | agreement that was executed between January 1, 2011 and | ||||||
21 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
22 | the manufacture of inner tubes or tires, or both, from | ||||||
23 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
24 | 2,400 full-time employees in Illinois at the time of | ||||||
25 | application, (iii) creates at least 350 full-time jobs and | ||||||
26 | retains at least 250 full-time jobs in Illinois that would |
| |||||||
| |||||||
1 | have been at risk of being created or retained outside of | ||||||
2 | Illinois, and (iv) makes a capital investment of at least | ||||||
3 | $200,000,000 at the project location. | ||||||
4 | (1.6) The election under this subsection (f) may also | ||||||
5 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
6 | agreement that was executed within 150 days after the | ||||||
7 | effective date of this amendatory Act of the 97th General | ||||||
8 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
9 | operation of a discount department store, (ii) maintains | ||||||
10 | its corporate headquarters in Illinois, (iii) employs a | ||||||
11 | minimum of 4,250 full-time employees at its corporate | ||||||
12 | headquarters in Illinois at the time of application, (iv) | ||||||
13 | retains at least 4,250 full-time jobs in Illinois that | ||||||
14 | would have been at risk of being relocated outside of | ||||||
15 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
16 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
17 | least $300,000,000 at the project location. | ||||||
18 | (1.7) Notwithstanding any other provision of law, the | ||||||
19 | election under this subsection (f) may also be made by a | ||||||
20 | Taxpayer for any Credit awarded pursuant to an agreement | ||||||
21 | that was executed or applied for on or after July 1, 2011 | ||||||
22 | and on or before March 31, 2012, if the Taxpayer is | ||||||
23 | primarily engaged in the manufacture of original and | ||||||
24 | aftermarket filtration parts and products for automobiles, | ||||||
25 | motor vehicles, light duty motor vehicles, light trucks and | ||||||
26 | utility vehicles, and heavy duty trucks, (ii) employs a |
| |||||||
| |||||||
1 | minimum of 1,000 full-time employees in Illinois at the | ||||||
2 | time of application, (iii) creates at least 250 full-time | ||||||
3 | jobs in Illinois, (iv) relocates its corporate | ||||||
4 | headquarters to Illinois from another state, and (v) makes | ||||||
5 | a capital investment of at least $4,000,000 at the project | ||||||
6 | location. | ||||||
7 | (1.8) The election under this subsection (f) may also | ||||||
8 | be made by a Taxpayer that is primarily engaged in the | ||||||
9 | manufacturing of food products if the Taxpayer: (i) employs | ||||||
10 | a minimum of 300 full-time employees in Illinois at the | ||||||
11 | time of application; (ii) intends to create at least 5 | ||||||
12 | additional jobs in Illinois after the approval of the | ||||||
13 | Taxpayer's application; (iii) pledges to make a capital | ||||||
14 | investment of at least $4,000,000 at either the project | ||||||
15 | location or elsewhere in Illinois; (iv) states, as a part | ||||||
16 | of its application, that, as a consequence of tax laws in | ||||||
17 | jurisdictions located outside of Illinois, the election is | ||||||
18 | necessary for the Taxpayer's maximum enjoyment of net | ||||||
19 | benefits under this Act; and (v) states, as a part of its | ||||||
20 | application, that it has received an offer of tax | ||||||
21 | incentives to relocate the facility to another state. The | ||||||
22 | election under this item (1.8) must be made between | ||||||
23 | September 1, 2012 and December 31, 2012. | ||||||
24 | (2) An election under this subsection shall allow the | ||||||
25 | credit to be taken against payments otherwise due under | ||||||
26 | Section 704A of the Illinois Income Tax Act during the |
| |||||||
| |||||||
1 | first calendar year beginning after the end of the taxable | ||||||
2 | year in which the credit is awarded under this Act. | ||||||
3 | (3) The election shall be made in the form and manner | ||||||
4 | required by the Illinois Department of Revenue and, once | ||||||
5 | made, shall be irrevocable. | ||||||
6 | (4) If a Taxpayer who meets the requirements of | ||||||
7 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
8 | elects to claim the Credit against its withholdings as | ||||||
9 | provided in this subsection (f), then, on and after the | ||||||
10 | date of the election, the terms of the Agreement between | ||||||
11 | the Taxpayer and the Department may not be further amended | ||||||
12 | during the term of the Agreement. | ||||||
13 | (g) A pass-through entity that has been awarded a credit | ||||||
14 | under this Act, its shareholders, or its partners may treat | ||||||
15 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
16 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
17 | "tax payment" means a payment as described in Article 6 or | ||||||
18 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
19 | made by a pass-through entity on behalf of any of its | ||||||
20 | shareholders or partners to satisfy such shareholders' or | ||||||
21 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
22 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
23 | the amount of the award credited pursuant to this Act exceed | ||||||
24 | the Illinois income tax liability of the pass-through entity or | ||||||
25 | its shareholders or partners for the taxable year. | ||||||
26 | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; |
| |||||||
| |||||||
1 | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | ||||||
2 | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.) | ||||||
3 | Section 95. No acceleration or delay. Where this Act makes | ||||||
4 | changes in a statute that is represented in this Act by text | ||||||
5 | that is not yet or no longer in effect (for example, a Section | ||||||
6 | represented by multiple versions), the use of that text does | ||||||
7 | not accelerate or delay the taking effect of (i) the changes | ||||||
8 | made by this Act or (ii) provisions derived from any other | ||||||
9 | Public Act.
| ||||||
10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.".
|