Rep. Mark L. Walker

Filed: 3/6/2020

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3318

2    AMENDMENT NO. ______. Amend House Bill 3318 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois is
6amended by adding Section 605-470 as follows:
 
7    (20 ILCS 605/605-470 new)
8    Sec. 605-470. Online central repository. The Department
9shall provide on its website a central repository for new and
10existing businesses that shall contain all permitting,
11licensing, and registration forms and documents needed to
12conduct business in Illinois, as well as content about how to
13start a business, industry-specific programming, connections
14to mentors, and referrals to investors. When submitting
15applications for tax credits administered by the Department,
16applicants may choose to allow the Department to share their

 

 

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1contact information on the central repository. The Department
2may adopt rules necessary to implement this Section.
 
3    Section 10. The Illinois Enterprise Zone Act is amended by
4changing Sections 5.4 and 8.1 as follows:
 
5    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
6    Sec. 5.4. Amendment and Decertification of Enterprise
7Zones.
8    (a) The terms of a certified enterprise zone designating
9ordinance may be amended to
10        (i) alter the boundaries of the Enterprise Zone, or
11        (ii) expand, limit or repeal tax incentives or benefits
12    provided in the ordinance, or
13        (iii) alter the termination date of the zone, or
14        (iv) make technical corrections in the enterprise zone
15    designating ordinance; but such amendment shall not be
16    effective unless the Department issues an amended
17    certificate for the Enterprise Zone, approving the amended
18    designating ordinance. Upon the adoption of any ordinance
19    amending or repealing the terms of a certified enterprise
20    zone designating ordinance, the municipality or county
21    shall promptly file with the Department an application for
22    approval thereof, containing substantially the same
23    information as required for an application under Section
24    5.1 insofar as material to the proposed changes. The

 

 

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1    municipality or county must hold a public hearing on the
2    proposed changes as specified in Section 5 and, if the
3    amendment is to effectuate the limitation of tax abatements
4    under Section 5.4.1, then the public notice of the hearing
5    shall state that property that is in both the enterprise
6    zone and a redevelopment project area may not receive tax
7    abatements unless within 60 days after the adoption of the
8    amendment to the designating ordinance the municipality
9    has determined that eligibility for tax abatements has been
10    established,
11        (v) include an area within another municipality or
12    county as part of the designated enterprise zone provided
13    the requirements of Section 4 are complied with, or
14        (vi) effectuate the limitation of tax abatements under
15    Section 5.4.1.
16    (b) The Department shall approve or disapprove a proposed
17amendment to a certified enterprise zone within 90 days of its
18receipt of the application from the municipality or county. The
19Department may not approve changes in a Zone which are not in
20conformity with this Act, as now or hereafter amended, or with
21other applicable laws. If the Department issues an amended
22certificate for an Enterprise Zone, the amended certificate,
23together with the amended zone designating ordinance, shall be
24filed, recorded and transmitted as provided in Section 5.3.
25    (c) An Enterprise Zone may be decertified by joint action
26of the Department and the designating county or municipality in

 

 

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1accordance with this Section. The designating county or
2municipality shall conduct at least one public hearing within
3the zone prior to its adoption of an ordinance of
4de-designation. The mayor of the designating municipality or
5the chairman of the county board of the designating county
6shall execute a joint decertification agreement with the
7Department. A decertification of an Enterprise Zone shall not
8become effective until at least 6 months after the execution of
9the decertification agreement, which shall be filed in the
10office of the Secretary of State.
11    (d) An Enterprise Zone may be decertified for cause by the
12Department in accordance with this Section. Prior to
13decertification: (1) the Department shall notify the chief
14elected official of the designating county or municipality in
15writing of the specific deficiencies which provide cause for
16decertification; (2) the Department shall place the
17designating county or municipality on probationary status for
18at least 6 months during which time corrective action may be
19achieved in the enterprise zone by the designating county or
20municipality; and, (3) the Department shall conduct at least
21one public hearing within the zone. If such corrective action
22is not achieved during the probationary period, the Department
23shall issue an amended certificate signed by the Director of
24the Department decertifying the enterprise zone, which
25certificate shall be filed in the office of the Secretary of
26State. A certified copy of the amended enterprise zone

 

 

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1certificate, or a duplicate original thereof, shall be recorded
2in the office of recorder of the county in which the enterprise
3zone lies, and shall be provided to the chief elected official
4of the designating county or municipality. Decertification of
5an Enterprise Zone shall not become effective until 60 days
6after the date of filing.
7    (d-5) The Department shall decertify any Enterprise Zone
8that fails to report any capital investment, job creation or
9retention, or State tax expenditures for 3 consecutive calendar
10years. Prior to decertification: (1) the Department shall
11notify the chief elected official of the designating county or
12municipality in writing of the specific deficiencies which
13provide cause for decertification; (2) the Department shall
14place the designating county or municipality on probationary
15status for at least 6 months during which time corrective
16action may be achieved in the Enterprise Zone by the
17designating county or municipality; and (3) the Department
18shall conduct at least one public hearing within the Zone. If
19such corrective action is not achieved during the probationary
20period, the Department shall issue an amended certificate
21signed by the Director of the Department decertifying the
22Enterprise Zone as of the scheduled termination date of the
23then-current designation. If the decertified Zone was approved
24and designated after the 101st General Assembly and has been in
25existence for less than 15 years, such Zone shall not be
26eligible for an additional 10-year designation after the

 

 

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1expiration date of the original Zone set forth in subsection
2(c) of Section 5.3. Further, if such corrective action is not
3achieved during the probationary period provided for in this
4Section, following such probationary period the Zone becomes
5available for a different area to compete for designation.
6    (e) In the event of a decertification, or an amendment
7reducing the length of the term or the area of an Enterprise
8Zone or the adoption of an ordinance reducing or eliminating
9tax benefits in an Enterprise Zone, all benefits previously
10extended within the Zone pursuant to this Act or pursuant to
11any other Illinois law providing benefits specifically to or
12within Enterprise Zones shall remain in effect for the original
13stated term of the Enterprise Zone, with respect to business
14enterprises within the Zone on the effective date of such
15decertification or amendment, and with respect to individuals
16participating in urban homestead programs under this Act.
17    (f) Except as otherwise provided in Section 5.4.1, with
18respect to business enterprises (or expansions thereof) which
19are proposed or under development within a Zone at the time of
20a decertification or an amendment reducing the length of the
21term of the Zone, or excluding from the Zone area the site of
22the proposed enterprise, or an ordinance reducing or
23eliminating tax benefits in a Zone, such business enterprise
24shall be entitled to the benefits previously applicable within
25the Zone for the original stated term of the Zone, if the
26business enterprise establishes:

 

 

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1        (i) that the proposed business enterprise or expansion
2    has been committed to be located within the Zone;
3        (ii) that substantial and binding financial
4    obligations have been made towards the development of such
5    enterprise; and
6        (iii) that such commitments have been made in
7    reasonable reliance on the benefits and programs which were
8    to have been applicable to the enterprise by reason of the
9    Zone, including in the case of a reduction in term of a
10    zone, the original length of the term.
11    In declaratory judgment actions under this paragraph, the
12Department and the designating municipality or county shall be
13necessary parties defendant.
14(Source: P.A. 90-258, eff. 7-30-97.)
 
15    (20 ILCS 655/8.1)
16    Sec. 8.1. Accounting.
17    (a) Any business receiving tax incentives due to its
18location within an Enterprise Zone or its designation as a High
19Impact Business must annually report to the Department of
20Revenue information reasonably required by the Department of
21Revenue to enable the Department to verify and calculate the
22total Enterprise Zone or High Impact Business tax benefits for
23property taxes and taxes imposed by the State that are received
24by the business, broken down by incentive category and
25enterprise zone, if applicable. Reports will be due no later

 

 

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1than May 31 of each year and shall cover the previous calendar
2year. The first report will be for the 2012 calendar year and
3will be due no later than May 31, 2013. Failure to report data
4may result in ineligibility to receive incentives. To the
5extent that a business receiving tax incentives has obtained an
6Enterprise Zone Building Materials Exemption Certificate or a
7High Impact Business Building Materials Exemption Certificate,
8that business is required to report those building materials
9exemption benefits only under subsection (a-5) of this Section.
10No additional reporting for those building materials exemption
11benefits is required under this subsection (a). In addition, if
12the Department determines that 60% or more of the businesses
13receiving tax incentives because of their location within a
14particular Enterprise Zone failed to submit the information
15required under this subsection (a) to the Department in any
16calendar year, then the Enterprise Zone may be decertified by
17the Department. The Department, in consultation with the
18Department of Revenue, is authorized to adopt rules governing
19ineligibility to receive exemptions, including the length of
20ineligibility. Factors to be considered in determining whether
21a business is ineligible shall include, but are not limited to,
22prior compliance with the reporting requirements, cooperation
23in discontinuing and correcting violations, the extent of the
24violation, and whether the violation was willful or
25inadvertent.
26    (a-5) Each contractor or other entity that has been issued

 

 

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1an Enterprise Zone Building Materials Exemption Certificate
2under Section 5k of the Retailers' Occupation Tax Act or a High
3Impact Business Building Materials Exemption Certificate under
4Section 5l of the Retailers' Occupation Tax Act shall annually
5report to the Department of Revenue the total value of the
6Enterprise Zone or High Impact Business building materials
7exemption from State taxes. Reports shall contain information
8reasonably required by the Department of Revenue to enable it
9to verify and calculate the total tax benefits for taxes
10imposed by the State, and shall be broken down by Enterprise
11Zone. Reports are due no later than May 31 of each year and
12shall cover the previous calendar year. The first report will
13be for the 2013 calendar year and will be due no later than May
1431, 2014. Failure to report data may result in revocation of
15the Enterprise Zone Building Materials Exemption Certificate
16or High Impact Business Building Materials Exemption
17Certificate issued to the contractor or other entity.
18    The Department of Revenue is authorized to adopt rules
19governing revocation determinations, including the length of
20revocation. Factors to be considered in revocations shall
21include, but are not limited to, prior compliance with the
22reporting requirements, cooperation in discontinuing and
23correcting violations, and whether the certificate was used
24unlawfully during the preceding year.
25    (b) Each person required to file a return under the Gas
26Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise

 

 

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1Tax Act, or the Telecommunications Excise Tax Act shall file,
2on or before May 31 of each year, a report with the Department
3of Revenue, in the manner and form required by the Department
4of Revenue, containing information reasonably required by the
5Department of Revenue to enable the Department of Revenue to
6calculate the amount of the deduction for taxes imposed by the
7State that is taken under each Act, respectively, due to the
8location of a business in an Enterprise Zone or its designation
9as a High Impact Business. The report shall be itemized by
10business and the business location address.
11    (c) Employers shall report their job creation, retention,
12and capital investment numbers within the zone annually to the
13Department of Revenue no later than May 31 of each calendar
14year. High Impact Businesses shall report their job creation,
15retention, and capital investment numbers to the Department of
16Revenue no later than May 31 of each year.
17    (d) The Department of Revenue will aggregate and collect
18the tax, job, and capital investment data by Enterprise Zone
19and High Impact Business and report this information, formatted
20to exclude company-specific proprietary information, to the
21Department and the Board by August 1, 2013, and by August 1 of
22every calendar year thereafter. The Department will include
23this information in their required reports under Section 6 of
24this Act. The Board shall consider this information during the
25reviews required under subsection (d-5) of Section 5.4 of this
26Act and subsection (c) of Section 5.3 of this Act.

 

 

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1    (e) The Department of Revenue, in its discretion, may
2require that the reports filed under this Section be submitted
3electronically.
4    (f) The Department of Revenue shall have the authority to
5adopt rules as are reasonable and necessary to implement the
6provisions of this Section.
7(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
8    Section 15. The Illinois Income Tax Act is amended by
9changing Section 220 and by adding Sections 232 and 233 as
10follows:
 
11    (35 ILCS 5/220)
12    Sec. 220. Angel investment credit.
13    (a) As used in this Section:
14    "Applicant" means a corporation, partnership, limited
15liability company, or a natural person that makes an investment
16in a qualified new business venture. The term "applicant" does
17not include (i) a corporation, partnership, limited liability
18company, or a natural person who has a direct or indirect
19ownership interest of at least 33% 51% in the profits, capital,
20or value of the qualified new business venture receiving the
21investment or (ii) a related member.
22    "Claimant" means an applicant certified by the Department
23who files a claim for a credit under this Section.
24    "Department" means the Department of Commerce and Economic

 

 

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1Opportunity.
2    "Investment" means money (or its equivalent) given to a
3qualified new business venture, at a risk of loss, in
4consideration for an equity interest of the qualified new
5business venture. The Department may adopt rules to permit
6certain forms of contingent equity investments to be considered
7eligible for a tax credit under this Section.
8    "Qualified new business venture" means a business that is
9registered with the Department under this Section.
10    "Related member" means a person that, with respect to the
11applicant, is any one of the following:
12        (1) An individual, if the individual and the members of
13    the individual's family (as defined in Section 318 of the
14    Internal Revenue Code) own directly, indirectly,
15    beneficially, or constructively, in the aggregate, at
16    least 50% of the value of the outstanding profits, capital,
17    stock, or other ownership interest in the qualified new
18    business venture that is the recipient of the applicant's
19    investment.
20        (2) A partnership, estate, or trust and any partner or
21    beneficiary, if the partnership, estate, or trust and its
22    partners or beneficiaries own directly, indirectly,
23    beneficially, or constructively, in the aggregate, at
24    least 50% of the profits, capital, stock, or other
25    ownership interest in the qualified new business venture
26    that is the recipient of the applicant's investment.

 

 

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1        (3) A corporation, and any party related to the
2    corporation in a manner that would require an attribution
3    of stock from the corporation under the attribution rules
4    of Section 318 of the Internal Revenue Code, if the
5    applicant and any other related member own, in the
6    aggregate, directly, indirectly, beneficially, or
7    constructively, at least 50% of the value of the
8    outstanding stock of the qualified new business venture
9    that is the recipient of the applicant's investment.
10        (4) A corporation and any party related to that
11    corporation in a manner that would require an attribution
12    of stock from the corporation to the party or from the
13    party to the corporation under the attribution rules of
14    Section 318 of the Internal Revenue Code, if the
15    corporation and all such related parties own, in the
16    aggregate, at least 50% of the profits, capital, stock, or
17    other ownership interest in the qualified new business
18    venture that is the recipient of the applicant's
19    investment.
20        (5) A person to or from whom there is attribution of
21    ownership of stock in the qualified new business venture
22    that is the recipient of the applicant's investment in
23    accordance with Section 1563(e) of the Internal Revenue
24    Code, except that for purposes of determining whether a
25    person is a related member under this paragraph, "20%"
26    shall be substituted for "5%" whenever "5%" appears in

 

 

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1    Section 1563(e) of the Internal Revenue Code.
2    "Social equity business" means a business that is a
3qualified social equity applicant, as defined in Section 1-10
4of the Cannabis Regulation and Tax Act.
5    (b) For taxable years beginning after December 31, 2010,
6and ending on or before December 31, 2021, subject to the
7limitations provided in this Section, a claimant may claim, as
8a credit against the tax imposed under subsections (a) and (b)
9of Section 201 of this Act, an amount equal to 25% of the
10claimant's investment made directly in a qualified new business
11venture. However, if the investment is made in: (1) a qualified
12new business venture that is minority-owned, women-owned, or is
13a business owned a person with a disability (as those terms are
14used and defined in the Business Enterprise for Minorities,
15Women, and Persons with Disabilities Act); or (2) a qualified
16new business venture in which the principal place of business
17is located in a county with a population of not more than
18250,000, then the amount of the credit is 35% of the claimant's
19investment made directly in a qualified new business venture.
20In order for an investment in a qualified new business venture
21to be eligible for tax credits, the business must have applied
22for and received certification under subsection (e) for the
23taxable year in which the investment was made prior to the date
24on which the investment was made. The credit under this Section
25may not exceed the taxpayer's Illinois income tax liability for
26the taxable year. If the amount of the credit exceeds the tax

 

 

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1liability for the year, the excess may be carried forward and
2applied to the tax liability of the 5 taxable years following
3the excess credit year. The credit shall be applied to the
4earliest year for which there is a tax liability. If there are
5credits from more than one tax year that are available to
6offset a liability, the earlier credit shall be applied first.
7In the case of a partnership or Subchapter S Corporation, the
8credit is allowed to the partners or shareholders in accordance
9with the determination of income and distributive share of
10income under Sections 702 and 704 and Subchapter S of the
11Internal Revenue Code.
12    (c) The minimum amount an applicant must invest in any
13single qualified new business venture in order to be eligible
14for a credit under this Section is $10,000. The maximum amount
15of an applicant's total investment made in any single qualified
16new business venture that may be used as the basis for a credit
17under this Section is $1,000,000 $2,000,000.
18    (d) The Department shall implement a program to certify an
19applicant for an angel investment credit. Upon satisfactory
20review, the Department shall issue a tax credit certificate
21stating the amount of the tax credit to which the applicant is
22entitled. The Department shall annually certify that: (i) each
23qualified new business venture that receives an angel
24investment under this Section has maintained a minimum
25employment threshold, as defined by rule, in the State (and
26continues to maintain a minimum employment threshold in the

 

 

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1State for a period of no less than 3 years from the issue date
2of the last tax credit certificate issued by the Department
3with respect to such business pursuant to this Section); and
4(ii) the claimant's investment has been made and remains,
5except in the event of a qualifying liquidity event, in the
6qualified new business venture for no less than 3 years.
7    If an investment for which a claimant is allowed a credit
8under subsection (b) is held by the claimant for less than 3
9years, other than as a result of a permitted sale of the
10investment to person who is not a related member, the claimant
11shall pay to the Department of Revenue, in the manner
12prescribed by the Department of Revenue, the aggregate amount
13of the disqualified credits that the claimant received related
14to the subject investment.
15    If the Department determines that a qualified new business
16venture failed to maintain a minimum employment threshold in
17the State through the date which is 3 years from the issue date
18of the last tax credit certificate issued by the Department
19with respect to the subject business pursuant to this Section,
20the claimant or claimants shall pay to the Department of
21Revenue, in the manner prescribed by the Department of Revenue,
22the aggregate amount of the disqualified credits that claimant
23or claimants received related to investments in that business.
24    (e) The Department shall implement a program to register
25qualified new business ventures for purposes of this Section. A
26business desiring registration under this Section shall be

 

 

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1required to submit a full and complete application to the
2Department. A submitted application shall be effective only for
3the taxable year in which it is submitted, and a business
4desiring registration under this Section shall be required to
5submit a separate application in and for each taxable year for
6which the business desires registration. Further, if at any
7time prior to the acceptance of an application for registration
8under this Section by the Department one or more events occurs
9which makes the information provided in that application
10materially false or incomplete (in whole or in part), the
11business shall promptly notify the Department of the same. Any
12failure of a business to promptly provide the foregoing
13information to the Department may, at the discretion of the
14Department, result in a revocation of a previously approved
15application for that business, or disqualification of the
16business from future registration under this Section, or both.
17The Department may register the business only if all of the
18following conditions are satisfied:
19        (1) it has its principal place of business in this
20    State;
21        (2) at least 51% of the employees employed by the
22    business are employed in this State;
23        (3) the business has the potential for increasing jobs
24    in this State, increasing capital investment in this State,
25    or both, as determined by the Department, and any either of
26    the following apply:

 

 

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1            (A) it is principally engaged in innovation in any
2        of the following: manufacturing; biotechnology;
3        nanotechnology; communications; agricultural sciences;
4        clean energy creation or storage technology;
5        processing or assembling products, including medical
6        devices, pharmaceuticals, computer software, computer
7        hardware, semiconductors, other innovative technology
8        products, or other products that are produced using
9        manufacturing methods that are enabled by applying
10        proprietary technology; or providing services that are
11        enabled by applying proprietary technology; or
12            (B) it is undertaking pre-commercialization
13        activity related to proprietary technology that
14        includes conducting research, developing a new product
15        or business process, or developing a service that is
16        principally reliant on applying proprietary
17        technology; or
18            (C) the business is a social equity business and is
19        engaged in innovation in the field of cannabis
20        cultivation, extraction, processing, distribution,
21        infusion, or dispensing, or is undertaking
22        pre-commercialization activity within the adult use
23        cannabis industry related to proprietary technology
24        that includes conducting research, developing a new
25        product or business process, or developing a service
26        that is principally reliant on applying proprietary

 

 

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1        technology;
2        (4) it is not principally engaged in real estate
3    development, insurance, banking, lending, lobbying,
4    political consulting, professional services provided by
5    attorneys, accountants, business consultants, physicians,
6    or health care consultants, wholesale or retail trade,
7    leisure, hospitality, transportation, or construction,
8    except construction of power production plants that derive
9    energy from a renewable energy resource, as defined in
10    Section 1 of the Illinois Power Agency Act; however, the
11    restrictions in this Section relating to wholesale or
12    retail trade and transportation shall not apply to social
13    equity businesses;
14        (5) at the time it is first certified:
15            (A) it has fewer than 100 employees;
16            (B) it has been in operation in Illinois for not
17        more than 10 consecutive years prior to the year of
18        certification; and
19            (C) it has received not more than $5,000,000
20        $10,000,000 in aggregate investments;
21        (5.1) it agrees to maintain a minimum employment
22    threshold in the State of Illinois prior to the date which
23    is 3 years from the issue date of the last tax credit
24    certificate issued by the Department with respect to that
25    business pursuant to this Section;
26        (6) (blank); and

 

 

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1        (7) it has received not more than $2,000,000 $4,000,000
2    in investments that qualified for tax credits under this
3    Section.
4    (f) The Department, in consultation with the Department of
5Revenue, shall adopt rules to administer this Section. The
6aggregate amount of the tax credits that may be claimed under
7this Section for investments made in qualified new business
8ventures shall be limited at $10,000,000 per calendar year, of
9which $1,500,000 $500,000 shall be reserved for investments
10made in qualified new business ventures which are
11minority-owned businesses, women-owned businesses, or
12businesses owned by a person with a disability (as those terms
13are used and defined in the Business Enterprise for Minorities,
14Women, and Persons with Disabilities Act), and an additional
15$1,500,000 $500,000 shall be reserved for investments made in
16qualified new business ventures with their principal place of
17business in counties with a population of not more than
18250,000. The foregoing annual allowable amounts shall be
19allocated by the Department, on a per calendar quarter basis
20and prior to the commencement of each calendar year, in such
21proportion as determined by the Department, provided that: (i)
22the amount initially allocated by the Department for any one
23calendar quarter shall not exceed 35% of the total allowable
24amount; (ii) any portion of the allocated allowable amount
25remaining unused as of the end of any of the first 3 calendar
26quarters of a given calendar year shall be rolled into, and

 

 

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1added to, the total allocated amount for the next available
2calendar quarter; and (iii) the reservation of tax credits for
3investments in minority-owned businesses, women-owned
4businesses, businesses owned by a person with a disability, and
5in businesses in counties with a population of not more than
6250,000 is limited to the first 3 calendar quarters of a given
7calendar year, after which they may be claimed by investors in
8any qualified new business venture.
9    (g) A claimant may not sell or otherwise transfer a credit
10awarded under this Section to another person.
11    (h) On or before March 1 of each year, the Department shall
12report to the Governor and to the General Assembly on the tax
13credit certificates awarded under this Section for the prior
14calendar year.
15        (1) This report must include, for each tax credit
16    certificate awarded:
17            (A) the name of the claimant and the amount of
18        credit awarded or allocated to that claimant;
19            (B) the name and address (including the county) of
20        the qualified new business venture that received the
21        investment giving rise to the credit, the North
22        American Industry Classification System (NAICS) code
23        applicable to that qualified new business venture, and
24        the number of employees of the qualified new business
25        venture; and
26            (C) the date of approval by the Department of each

 

 

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1        claimant's tax credit certificate.
2        (2) The report must also include:
3            (A) the total number of applicants and the total
4        number of claimants, including the amount of each tax
5        credit certificate awarded to a claimant under this
6        Section in the prior calendar year;
7            (B) the total number of applications from
8        businesses seeking registration under this Section,
9        the total number of new qualified business ventures
10        registered by the Department, and the aggregate amount
11        of investment upon which tax credit certificates were
12        issued in the prior calendar year; and
13            (C) the total amount of tax credit certificates
14        sought by applicants, the amount of each tax credit
15        certificate issued to a claimant, the aggregate amount
16        of all tax credit certificates issued in the prior
17        calendar year and the aggregate amount of tax credit
18        certificates issued as authorized under this Section
19        for all calendar years.
20    (i) For each business seeking registration under this
21Section after December 31, 2016, the Department shall require
22the business to include in its application the North American
23Industry Classification System (NAICS) code applicable to the
24business and the number of employees of the business at the
25time of application. Each business registered by the Department
26as a qualified new business venture that receives an investment

 

 

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1giving rise to the issuance of a tax credit certificate
2pursuant to this Section shall, for each of the 3 years
3following the issue date of the last tax credit certificate
4issued by the Department with respect to such business pursuant
5to this Section, report to the Department the following:
6        (1) the number of employees and the location at which
7    those employees are employed, both as of the end of each
8    year;
9        (2) the amount of additional new capital investment
10    raised as of the end of each year, if any; and
11        (3) the terms of any liquidity event occurring during
12    such year; for the purposes of this Section, a "liquidity
13    event" means any event that would be considered an exit for
14    an illiquid investment, including any event that allows the
15    equity holders of the business (or any material portion
16    thereof) to cash out some or all of their respective equity
17    interests.
18(Source: P.A. 100-328, eff. 1-1-18; 100-686, eff. 1-1-19;
19100-863, eff. 8-14-18; 101-81, eff. 7-12-19.)
 
20    (35 ILCS 5/232 new)
21    Sec. 232. Credit for full-time employees in a county with
22fewer than 250,000 inhabitants.
23    (a) For taxable years beginning on or after January 1,
242021, each taxpayer that hires a full-time employee to fill a
25position at a location in a county with fewer than 250,000

 

 

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1inhabitants is entitled to a credit against the taxes imposed
2by subsections (a) and (b) of Section 201 of this Act in an
3amount not to exceed $5,000 per eligible employee in any
4taxable year. The credit may be taken for the taxable year in
5which the employee is hired and for the next taxable year if
6the employee remains employed with that taxpayer in the next
7taxable year. The amount of the credit shall be $5,000 in each
8taxable year, multiplied by a fraction the numerator of which
9is the number of days the employee is employed by the taxpayer
10during the taxable year and the denominator of which is 365.
11    (b) For partners, shareholders of Subchapter S
12corporations, and owners of limited liability companies, if the
13liability company is treated as a partnership for purposes of
14federal and State income taxation, there shall be allowed a
15credit under this Section to be determined in accordance with
16the determination of income and distributive share of income
17under Sections 702 and 704 and Subchapter S of the Internal
18Revenue Code.
19    (c) In no event shall a credit under this Section reduce
20the taxpayer's liability to less than zero. If the amount of
21the credit exceeds the tax liability for the year, the excess
22may be carried forward and applied to the tax liability of the
235 taxable years following the excess credit year. The tax
24credit shall be applied to the earliest year for which there is
25a tax liability. If there are credits for more than one year
26that are available to offset a liability, the earlier credit

 

 

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1shall be applied first.
2    (d) As used in this Section, "full-time employee" means an
3individual who is employed for consideration for at least 35
4hours each week or who renders any other standard of service
5generally accepted by industry custom or practice as full-time
6employment. An individual for whom a W-2 is issued by a
7Professional Employer Organization (PEO) is a full-time
8employee if employed in the service of the taxpayer for
9consideration for at least 35 hours each week or who renders
10any other standard of service generally accepted by industry
11custom or practice as full-time employment to the taxpayer.
12    (e) This Section is exempt from the provisions of Section
13250.
 
14    (35 ILCS 5/233 new)
15    Sec. 233. Student loan repayment credit.
16    (a) For taxable years beginning on or after January 1,
172021, a qualified taxpayer may apply to the Department for a
18credit against the tax imposed by subsections (a) and (b) of
19Section 201. The amount of the credit shall be equal to the
20taxpayer's student loan repayment expenses for each qualified
21education loan for the taxable year, but not to exceed the
22maximum credit amount set forth in subsection (b) for the
23taxpayer's highest level of education.
24    (b) The maximum credit amount shall be:
25        (1) $6,000 per taxable year for a taxpayer with a

 

 

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1    master's degree or higher;
2        (2) $4,000 per taxable year for a taxpayer with a
3    bachelor's degree; or
4        (3) $1,000 per taxable year for a taxpayer with an
5    associate's degree.
6    In no event shall a credit under this Section reduce the
7taxpayer's liability to less than zero. If the amount of the
8credit exceeds the tax liability for the year, the excess may
9be carried forward and applied to the tax liability of the 5
10taxable years following the excess credit year. The tax credit
11shall be applied to the earliest year for which there is a tax
12liability. If there are credits for more than one year that are
13available to offset a liability, the earlier credit shall be
14applied first.
15    (c) As used in this Section:
16    "Qualified education loan" has the meaning given to that
17term in Section 221 of the Internal Revenue Code.
18    "Qualified taxpayer" means a taxpayer who (i) has an
19Associate's degree, a Bachelor's degree, or a graduate degree
20from an institution of higher education accredited by the U.S.
21Department of Education; (ii) has annual student loan repayment
22expenses; and (iii) is employed full-time in the State in one
23or more of the following fields: life, natural, or
24environmental sciences; computer, information, or software
25technology; advanced mathematics or finance; engineering;
26industrial design or other commercially related design field;

 

 

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1or medicine or medical device technology. For the purposes of
2this Section, a taxpayer is employed full-time if the taxpayer
3works in any of the listed fields at a rate of at least 35 hours
4per week.
5    (d) The Department of Revenue may adopt rules to implement
6this Section.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".