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| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB1636 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED: |
| 20 ILCS 655/5.5 | from Ch. 67 1/2, par. 609.1 |
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Amends the Illinois Enterprise Zone Act. Provides that businesses that intend to establish a new qualified hydroponics facility or expand production at an existing qualified hydroponics facility to engage in the practice of hydroponics are considered high impact businesses. Define terms. Effective immediately.
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| | A BILL FOR |
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1 | | AN ACT concerning State government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Enterprise Zone Act is amended by |
5 | | changing Section 5.5 as follows:
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6 | | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
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7 | | Sec. 5.5. High Impact Business.
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8 | | (a) In order to respond to unique opportunities to assist |
9 | | in the
encouragement, development, growth and expansion of the |
10 | | private sector through
large scale investment and development |
11 | | projects, the Department is authorized
to receive and approve |
12 | | applications for the designation of "High Impact
Businesses" in |
13 | | Illinois subject to the following conditions:
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14 | | (1) such applications may be submitted at any time |
15 | | during the year;
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16 | | (2) such business is not located, at the time of |
17 | | designation, in
an enterprise zone designated pursuant to |
18 | | this Act;
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19 | | (3) the business intends to do one or more of the |
20 | | following:
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21 | | (A) the business intends to make a minimum |
22 | | investment of
$12,000,000 which will be placed in |
23 | | service in qualified property and
intends to create 500 |
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1 | | full-time equivalent jobs at a designated location
in |
2 | | Illinois or intends to make a minimum investment of |
3 | | $30,000,000 which
will be placed in service in |
4 | | qualified property and intends to retain 1,500
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5 | | full-time retained jobs at a designated location in |
6 | | Illinois.
The business must certify in writing that the |
7 | | investments would not be
placed in service in qualified |
8 | | property and the job creation or job
retention would |
9 | | not occur without the tax credits and exemptions set |
10 | | forth
in subsection (b) of this Section. The terms |
11 | | "placed in service" and
"qualified property" have the |
12 | | same meanings as described in subsection (h)
of Section |
13 | | 201 of the Illinois Income Tax Act; or
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14 | | (B) the business intends to establish a new |
15 | | electric generating
facility at a designated location |
16 | | in Illinois. "New electric generating
facility", for |
17 | | purposes of this Section, means a newly-constructed
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18 | | electric
generation plant
or a newly-constructed |
19 | | generation capacity expansion at an existing electric
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20 | | generation
plant, including the transmission lines and |
21 | | associated
equipment that transfers electricity from |
22 | | points of supply to points of
delivery, and for which |
23 | | such new foundation construction commenced not sooner
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24 | | than July 1,
2001. Such facility shall be designed to |
25 | | provide baseload electric
generation and shall operate |
26 | | on a continuous basis throughout the year;
and (i) |
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1 | | shall have an aggregate rated generating capacity of at |
2 | | least 1,000
megawatts for all new units at one site if |
3 | | it uses natural gas as its primary
fuel and foundation |
4 | | construction of the facility is commenced on
or before |
5 | | December 31, 2004, or shall have an aggregate rated |
6 | | generating
capacity of at least 400 megawatts for all |
7 | | new units at one site if it uses
coal or gases derived |
8 | | from coal
as its primary fuel and
shall support the |
9 | | creation of at least 150 new Illinois coal mining jobs, |
10 | | or
(ii) shall be funded through a federal Department of |
11 | | Energy grant before December 31, 2010 and shall support |
12 | | the creation of Illinois
coal-mining
jobs, or (iii) |
13 | | shall use coal gasification or integrated |
14 | | gasification-combined cycle units
that generate
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15 | | electricity or chemicals, or both, and shall support |
16 | | the creation of Illinois
coal-mining
jobs.
The
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17 | | business must certify in writing that the investments |
18 | | necessary to establish
a new electric generating |
19 | | facility would not be placed in service and the
job |
20 | | creation in the case of a coal-fueled plant
would not |
21 | | occur without the tax credits and exemptions set forth |
22 | | in
subsection (b-5) of this Section. The term "placed |
23 | | in service" has
the same meaning as described in |
24 | | subsection
(h) of Section 201 of the Illinois Income |
25 | | Tax Act; or
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26 | | (B-5) the business intends to establish a new |
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1 | | gasification
facility at a designated location in |
2 | | Illinois. As used in this Section, "new gasification |
3 | | facility" means a newly constructed coal gasification |
4 | | facility that generates chemical feedstocks or |
5 | | transportation fuels derived from coal (which may |
6 | | include, but are not limited to, methane, methanol, and |
7 | | nitrogen fertilizer), that supports the creation or |
8 | | retention of Illinois coal-mining jobs, and that |
9 | | qualifies for financial assistance from the Department |
10 | | before December 31, 2010. A new gasification facility |
11 | | does not include a pilot project located within |
12 | | Jefferson County or within a county adjacent to |
13 | | Jefferson County for synthetic natural gas from coal; |
14 | | or
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15 | | (C) the business intends to establish
production |
16 | | operations at a new coal mine, re-establish production |
17 | | operations at
a closed coal mine, or expand production |
18 | | at an existing coal mine
at a designated location in |
19 | | Illinois not sooner than July 1, 2001;
provided that |
20 | | the
production operations result in the creation of 150 |
21 | | new Illinois coal mining
jobs as described in |
22 | | subdivision (a)(3)(B) of this Section, and further
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23 | | provided that the coal extracted from such mine is |
24 | | utilized as the predominant
source for a new electric |
25 | | generating facility.
The business must certify in |
26 | | writing that the
investments necessary to establish a |
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1 | | new, expanded, or reopened coal mine would
not
be |
2 | | placed in service and the job creation would not
occur |
3 | | without the tax credits and exemptions set forth in |
4 | | subsection (b-5) of
this Section. The term "placed in |
5 | | service" has
the same meaning as described in |
6 | | subsection (h) of Section 201 of the
Illinois Income |
7 | | Tax Act; or
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8 | | (D) the business intends to construct new |
9 | | transmission facilities or
upgrade existing |
10 | | transmission facilities at designated locations in |
11 | | Illinois,
for which construction commenced not sooner |
12 | | than July 1, 2001. For the
purposes of this Section, |
13 | | "transmission facilities" means transmission lines
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14 | | with a voltage rating of 115 kilovolts or above, |
15 | | including associated
equipment, that transfer |
16 | | electricity from points of supply to points of
delivery |
17 | | and that transmit a majority of the electricity |
18 | | generated by a new
electric generating facility |
19 | | designated as a High Impact Business in accordance
with |
20 | | this Section. The business must certify in writing that |
21 | | the investments
necessary to construct new |
22 | | transmission facilities or upgrade existing
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23 | | transmission facilities would not be placed in service
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24 | | without the tax credits and exemptions set forth in |
25 | | subsection (b-5) of this
Section. The term "placed in |
26 | | service" has the
same meaning as described in |
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1 | | subsection (h) of Section 201 of the Illinois
Income |
2 | | Tax Act; or
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3 | | (E) the business intends to establish a new wind |
4 | | power facility at a designated location in Illinois. |
5 | | For purposes of this Section, "new wind power facility" |
6 | | means a newly constructed electric generation |
7 | | facility, or a newly constructed expansion of an |
8 | | existing electric generation facility, placed in |
9 | | service on or after July 1, 2009, that generates |
10 | | electricity using wind energy devices, and such |
11 | | facility shall be deemed to include all associated |
12 | | transmission lines, substations, and other equipment |
13 | | related to the generation of electricity from wind |
14 | | energy devices. For purposes of this Section, "wind |
15 | | energy device" means any device, with a nameplate |
16 | | capacity of at least 0.5 megawatts, that is used in the |
17 | | process of converting kinetic energy from the wind to |
18 | | generate electricity; or |
19 | | (F) the business commits to (i) make a minimum |
20 | | investment of $500,000,000, which will be placed in |
21 | | service in a qualified property, (ii) create 125 |
22 | | full-time equivalent jobs at a designated location in |
23 | | Illinois, (iii) establish a fertilizer plant at a |
24 | | designated location in Illinois that complies with the |
25 | | set-back standards as described in Table 1: Initial |
26 | | Isolation and Protective Action Distances in the 2012 |
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1 | | Emergency Response Guidebook published by the United |
2 | | States Department of Transportation, (iv) pay a |
3 | | prevailing wage for employees at that location who are |
4 | | engaged in construction activities, and (v) secure an |
5 | | appropriate level of general liability insurance to |
6 | | protect against catastrophic failure of the fertilizer |
7 | | plant or any of its constituent systems; in addition, |
8 | | the business must agree to enter into a construction |
9 | | project labor agreement including provisions |
10 | | establishing wages, benefits, and other compensation |
11 | | for employees performing work under the project labor |
12 | | agreement at that location; for the purposes of this |
13 | | Section, "fertilizer plant" means a newly constructed |
14 | | or upgraded plant utilizing gas used in the production |
15 | | of anhydrous ammonia and downstream nitrogen |
16 | | fertilizer products for resale; for the purposes of |
17 | | this Section, "prevailing wage" means the hourly cash |
18 | | wages plus fringe benefits for training and
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19 | | apprenticeship programs approved by the U.S. |
20 | | Department of Labor, Bureau of
Apprenticeship and |
21 | | Training, health and welfare, insurance, vacations and
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22 | | pensions paid generally, in the
locality in which the |
23 | | work is being performed, to employees engaged in
work |
24 | | of a similar character on public works; this paragraph |
25 | | (F) applies only to businesses that submit an |
26 | | application to the Department within 60 days after the |
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1 | | effective date of this amendatory Act of the 98th |
2 | | General Assembly; or and |
3 | | (G) the business intends to establish a new |
4 | | qualified hydroponics facility or expand production at |
5 | | an existing qualified hydroponics facility to engage |
6 | | in the practice of hydroponics, provided that the |
7 | | production operations result in the creation of at |
8 | | least 25 full-time-equivalent Illinois jobs; for the |
9 | | purposes of this paragraph: |
10 | | "hydroponics" means a system in which |
11 | | water-soluble nutrients are placed in intimate |
12 | | contact with a plant's root system, being grown in |
13 | | an inert supportive medium, which inert supportive |
14 | | medium itself supplies physical support for the |
15 | | roots and does not add or subtract plant nutrients; |
16 | | "hydroponics production" means the production |
17 | | of normally terrestrial, vascular plants in |
18 | | nutrient rich solutions or in an inert, porous, |
19 | | solid matrix bathed in nutrient rich solutions; |
20 | | and |
21 | | "qualified hydroponics facility" means real |
22 | | property used for an indoor agriculture production |
23 | | operation using hydroponics techniques or |
24 | | practices for growing plants produced by |
25 | | agriculture that are useful for human beings, |
26 | | including, but not limited to, forages, field |
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1 | | crops, sod, berries, herbs, fruits, vegetables, |
2 | | flowers, seeds, and nursery stock; "qualified |
3 | | hydroponics facility" does not include an indoor |
4 | | agriculture production operation for growing |
5 | | plants that are illegal under federal law; and
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6 | | (4) no later than 90 days after an application is |
7 | | submitted, the
Department shall notify the applicant of the |
8 | | Department's determination of
the qualification of the |
9 | | proposed High Impact Business under this Section.
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10 | | (b) Businesses designated as High Impact Businesses |
11 | | pursuant to
subdivision (a)(3)(A) of this Section shall qualify |
12 | | for the credits and
exemptions described in the
following Acts: |
13 | | Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
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14 | | subsection (h)
of Section 201 of the Illinois Income Tax Act,
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15 | | and Section 1d of
the
Retailers' Occupation Tax Act; provided |
16 | | that these credits and
exemptions
described in these Acts shall |
17 | | not be authorized until the minimum
investments set forth in |
18 | | subdivision (a)(3)(A) of this
Section have been placed in
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19 | | service in qualified properties and, in the case of the |
20 | | exemptions
described in the Public Utilities Act and Section 1d |
21 | | of the Retailers'
Occupation Tax Act, the minimum full-time |
22 | | equivalent jobs or full-time retained jobs set
forth in |
23 | | subdivision (a)(3)(A) of this Section have been
created or |
24 | | retained.
Businesses designated as High Impact Businesses |
25 | | under
this Section shall also
qualify for the exemption |
26 | | described in Section 5l of the Retailers' Occupation
Tax Act. |
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1 | | The credit provided in subsection (h) of Section 201 of the |
2 | | Illinois
Income Tax Act shall be applicable to investments in |
3 | | qualified property as set
forth in subdivision (a)(3)(A) of |
4 | | this Section.
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5 | | (b-5) Businesses designated as High Impact Businesses |
6 | | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), |
7 | | and (a)(3)(D) of this Section shall qualify
for the credits and |
8 | | exemptions described in the following Acts: Section 51 of
the |
9 | | Retailers' Occupation Tax Act, Section 9-222 and Section |
10 | | 9-222.1A of the
Public Utilities Act, and subsection (h) of |
11 | | Section 201 of the Illinois Income
Tax Act; however, the |
12 | | credits and exemptions authorized under Section 9-222 and
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13 | | Section 9-222.1A of the Public Utilities Act, and subsection |
14 | | (h) of Section 201
of the Illinois Income Tax Act shall not be |
15 | | authorized until the new electric
generating facility, the new |
16 | | gasification facility, the new transmission facility, or the |
17 | | new, expanded, or
reopened coal mine is operational,
except |
18 | | that a new electric generating facility whose primary fuel |
19 | | source is
natural gas is eligible only for the exemption under |
20 | | Section 5l of the
Retailers' Occupation Tax Act.
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21 | | (b-6) Businesses designated as High Impact Businesses |
22 | | pursuant to subdivision (a)(3)(E) of this Section shall qualify |
23 | | for the exemptions described in Section 5l of the Retailers' |
24 | | Occupation Tax Act; any business so designated as a High Impact |
25 | | Business being, for purposes of this Section, a "Wind Energy |
26 | | Business". |
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1 | | (c) High Impact Businesses located in federally designated |
2 | | foreign trade
zones or sub-zones are also eligible for |
3 | | additional credits, exemptions and
deductions as described in |
4 | | the following Acts: Section 9-221 and Section
9-222.1 of the |
5 | | Public
Utilities Act; and subsection (g) of Section 201, and |
6 | | Section 203
of the Illinois Income Tax Act.
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7 | | (d) Except for businesses contemplated under subdivision |
8 | | (a)(3)(E) of this Section, existing Illinois businesses which |
9 | | apply for designation as a
High Impact Business must provide |
10 | | the Department with the prospective plan
for which 1,500 |
11 | | full-time retained jobs would be eliminated in the event that |
12 | | the
business is not designated.
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13 | | (e) Except for new wind power facilities contemplated under |
14 | | subdivision (a)(3)(E) of this Section, new proposed facilities |
15 | | which apply for designation as High Impact
Business must |
16 | | provide the Department with proof of alternative non-Illinois
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17 | | sites which would receive the proposed investment and job |
18 | | creation in the
event that the business is not designated as a |
19 | | High Impact Business.
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20 | | (f) Except for businesses contemplated under subdivision |
21 | | (a)(3)(E) of this Section, in the event that a business is |
22 | | designated a High Impact Business
and it is later determined |
23 | | after reasonable notice and an opportunity for a
hearing as |
24 | | provided under the Illinois Administrative Procedure Act, that
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25 | | the business would have placed in service in qualified property |
26 | | the
investments and created or retained the requisite number of |
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1 | | jobs without
the benefits of the High Impact Business |
2 | | designation, the Department shall
be required to immediately |
3 | | revoke the designation and notify the Director
of the |
4 | | Department of Revenue who shall begin proceedings to recover |
5 | | all
wrongfully exempted State taxes with interest. The business |
6 | | shall also be
ineligible for all State funded Department |
7 | | programs for a period of 10 years.
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8 | | (g) The Department shall revoke a High Impact Business |
9 | | designation if
the participating business fails to comply with |
10 | | the terms and conditions of
the designation. However, the |
11 | | penalties for new wind power facilities or Wind Energy |
12 | | Businesses for failure to comply with any of the terms or |
13 | | conditions of the Illinois Prevailing Wage Act shall be only |
14 | | those penalties identified in the Illinois Prevailing Wage Act, |
15 | | and the Department shall not revoke a High Impact Business |
16 | | designation as a result of the failure to comply with any of |
17 | | the terms or conditions of the Illinois Prevailing Wage Act in |
18 | | relation to a new wind power facility or a Wind Energy |
19 | | Business.
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20 | | (h) Prior to designating a business, the Department shall |
21 | | provide the
members of the General Assembly and Commission on |
22 | | Government Forecasting and Accountability
with a report |
23 | | setting forth the terms and conditions of the designation and
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24 | | guarantees that have been received by the Department in |
25 | | relation to the
proposed business being designated.
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26 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
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