HB3456 99TH GENERAL ASSEMBLY

LRB099 05584 HLH 25621 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3456

Introduced , by Rep. Charles E. Meier

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3-9 new
35 ILCS 110/3-9 new
35 ILCS 115/3-9 new
35 ILCS 120/1t new

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2015 and through June 30, 2025, certain tangible personal property to be used in the construction or operation of a data center is exempt from taxation under the Acts. Provides that the data center must sign an agreement with the Department of Commerce and Economic Opportunity containing the following elements: (1) the data center, including its colocation tenants, must create and maintain at least 30 full-time equivalent jobs; (2) those jobs must pay at least 125% of the median wage paid to full-time employees in the county where the data center is located, as determined by the U.S. Bureau of Labor Statistics; and (3) at least $25,000,000 in capital must be invested in the data center. Effective July 1, 2015.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Use Tax Act is amended by adding Section 3-9 as follows:

(35 ILCS 105/3-9 new)

Sec. 3-9. Data center exemption.

(a) Beginning on July 1, 2015 and through June 30, 2025, qualified tangible personal property to be used in the construction or operation of a data center is exempt from taxation under this Act if: (i) the data center signs an agreement with the Department of Commerce and Economic Opportunity, and (ii) the agreement contains the following elements:

(1) the data center, including its qualified colocation tenants, must create and maintain at least 30 full-time equivalent jobs;

(2) those jobs must pay at least 125% of the median wage paid to full-time employees in the county where the data center is located, as determined by the U.S. Bureau of Labor Statistics; and

(3) at least $25,000,000 in capital must be invested in the data center.

(b) As used in this Section:

"Data center" means a building rehabilitated or constructed to house a group of networked server computers in one physical location in order to centralize the storage, management, and dissemination of data and information pertaining to a particular business, taxonomy, or body of knowledge.

"Full-time equivalent job" means a job in which the employee works for the taxpayer or for a corporation under contract with the taxpayer at a rate of at least 35 hours per week. A taxpayer who employs labor or services at a specific site or facility under contract with another may declare one full-time equivalent job for every 1,820 man hours worked per year under that contract. Vacations, paid holidays, and sick time are included in this computation. Overtime is not considered a part of regular hours.

"Qualified colocation tenant" means an entity that contracts with the owner or operator of a computer data center described in subsection (a) of this Section to use or occupy all or part of the computer data center for at least 500 kilowatts per month for a period of 2 or more years.

"Qualified tangible personal property" means an electrical system; a cooling system; an emergency generator; hardware or a distributed mainframe computer or server; a data storage device; network connectivity equipment; a rack, cabinet, and raised floor system; a peripheral component or system; software; a mechanical, electrical, or plumbing system necessary to operate the foregoing property; any other item of equipment or system necessary to operate any of the foregoing, including a fixture; and a component part of any of the foregoing.

(c) This Section is repealed on July 1, 2025.

Section 10. The Service Use Tax Act is amended by adding Section 3-9 as follows:

(35 ILCS 110/3-9 new)

Sec. 3-9. Data center exemption.

(a) Beginning on July 1, 2015 and through June 30, 2025, qualified tangible personal property to be used in the construction or operation of a data center is exempt from taxation under this Act if: (i) the data center signs an agreement with the Department of Commerce and Economic Opportunity, and (ii) the agreement contains the following elements:

(1) the data center, including its qualified colocation tenants, must create and maintain at least 30 full-time equivalent jobs;

(2) those jobs must pay at least 125% of the median wage paid to full-time employees in the county where the data center is located, as determined by the U.S. Bureau of Labor Statistics; and

(3) at least $25,000,000 in capital must be invested in the data center.

(b) As used in this Section:

"Data center" means a building rehabilitated or constructed to house a group of networked server computers in one physical location in order to centralize the storage, management, and dissemination of data and information pertaining to a particular business, taxonomy, or body of knowledge.

"Full-time equivalent job" means a job in which the employee works for the taxpayer or for a corporation under contract with the taxpayer at a rate of at least 35 hours per week. A taxpayer who employs labor or services at a specific site or facility under contract with another may declare one full-time equivalent job for every 1,820 man hours worked per year under that contract. Vacations, paid holidays, and sick time are included in this computation. Overtime is not considered a part of regular hours.

"Qualified colocation tenant" means an entity that contracts with the owner or operator of a computer data center described in subsection (a) of this Section to use or occupy all or part of the computer data center for at least 500 kilowatts per month for a period of 2 or more years.

"Qualified tangible personal property" means an electrical system; a cooling system; an emergency generator; hardware or a distributed mainframe computer or server; a data storage device; network connectivity equipment; a rack, cabinet, and raised floor system; a peripheral component or system; software; a mechanical, electrical, or plumbing system necessary to operate the foregoing property; any other item of equipment or system necessary to operate any of the foregoing, including a fixture; and a component part of any of the foregoing.

(c) This Section is repealed on July 1, 2025.

Section 15. The Service Occupation Tax Act is amended by adding Section 3-9 as follows:

(35 ILCS 115/3-9 new)

Sec. 3-9. Data center exemption.

(a) Beginning on July 1, 2015 and through June 30, 2025, qualified tangible personal property to be used in the construction or operation of a data center is exempt from taxation under this Act if: (i) the data center signs an agreement with the Department of Commerce and Economic Opportunity, and (ii) the agreement contains the following elements:

(1) the data center, including its qualified colocation tenants, must create and maintain at least 30 full-time equivalent jobs;

(2) those jobs must pay at least 125% of the median wage paid to full-time employees in the county where the data center is located, as determined by the U.S. Bureau of Labor Statistics; and

(3) at least $25,000,000 in capital must be invested in the data center.

(b) As used in this Section:

"Data center" means a building rehabilitated or constructed to house a group of networked server computers in one physical location in order to centralize the storage, management, and dissemination of data and information pertaining to a particular business, taxonomy, or body of knowledge.

"Full-time equivalent job" means a job in which the employee works for the taxpayer or for a corporation under contract with the taxpayer at a rate of at least 35 hours per week. A taxpayer who employs labor or services at a specific site or facility under contract with another may declare one full-time equivalent job for every 1,820 man hours worked per year under that contract. Vacations, paid holidays, and sick time are included in this computation. Overtime is not considered a part of regular hours.

"Qualified colocation tenant" means an entity that contracts with the owner or operator of a computer data center described in subsection (a) of this Section to use or occupy all or part of the computer data center for at least 500 kilowatts per month for a period of 2 or more years.

"Qualified tangible personal property" means an electrical system; a cooling system; an emergency generator; hardware or a distributed mainframe computer or server; a data storage device; network connectivity equipment; a rack, cabinet, and raised floor system; a peripheral component or system; software; a mechanical, electrical, or plumbing system necessary to operate the foregoing property; any other item of equipment or system necessary to operate any of the foregoing, including a fixture; and a component part of any of the foregoing.

(c) This Section is repealed on July 1, 2025.

Section 20. The Retailers' Occupation Tax Act is amended by adding Section 1t as follows:

(35 ILCS 120/1t new)

Sec. 1t. Data center exemption.

(a) Beginning on July 1, 2015 and through June 30, 2025, qualified tangible personal property to be used in the construction or operation of a data center is exempt from taxation under this Act if: (i) the data center signs an agreement with the Department of Commerce and Economic Opportunity, and (ii) the agreement contains the following elements:

(1) the data center, including its qualified colocation tenants, must create and maintain at least 30 full-time equivalent jobs;

(2) those jobs must pay at least 125% of the median wage paid to full-time employees in the county where the data center is located, as determined by the U.S. Bureau of Labor Statistics; and

(3) at least $25,000,000 in capital must be invested in the data center.

(b) As used in this Section:

"Data center" means a building rehabilitated or constructed to house a group of networked server computers in one physical location in order to centralize the storage, management, and dissemination of data and information pertaining to a particular business, taxonomy, or body of knowledge.

"Full-time equivalent job" means a job in which the employee works for the taxpayer or for a corporation under contract with the taxpayer at a rate of at least 35 hours per week. A taxpayer who employs labor or services at a specific site or facility under contract with another may declare one full-time equivalent job for every 1,820 man hours worked per year under that contract. Vacations, paid holidays, and sick time are included in this computation. Overtime is not considered a part of regular hours.

"Qualified colocation tenant" means an entity that contracts with the owner or operator of a computer data center described in subsection (a) of this Section to use or occupy all or part of the computer data center for at least 500 kilowatts per month for a period of 2 or more years.

"Qualified tangible personal property" means an electrical system; a cooling system; an emergency generator; hardware or a distributed mainframe computer or server; a data storage device; network connectivity equipment; a rack, cabinet, and raised floor system; a peripheral component or system; software; a mechanical, electrical, or plumbing system necessary to operate the foregoing property; any other item of equipment or system necessary to operate any of the foregoing, including a fixture; and a component part of any of the foregoing.

(c) This Section is repealed on July 1, 2025.

Section 99. Effective date. This Act takes effect July 1, 2015.