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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Reimagining Electric Vehicles in Illinois Act. | ||||||
6 | Section 5. Purpose. It is the intent of the General | ||||||
7 | Assembly that Illinois should lead the nation in the | ||||||
8 | production of electric vehicles. The General Assembly finds | ||||||
9 | that, through investments in electric vehicle manufacturing, | ||||||
10 | Illinois will be on the forefront of emerging technologies | ||||||
11 | that are currently transforming the auto manufacturing | ||||||
12 | industry. This Act will reduce carbon emissions, create good | ||||||
13 | paying jobs, and generate long-term economic investment in the | ||||||
14 | Illinois business economy. Illinois must aggressively adopt | ||||||
15 | new business development investment tools so that Illinois is | ||||||
16 | more competitive in site location decision-making for | ||||||
17 | manufacturing facilities directly related to the electric | ||||||
18 | vehicle industry. Illinois' long-term development benefits | ||||||
19 | from rational, strategic use of State resources in support of | ||||||
20 | development and growth in the electric vehicle industry. | ||||||
21 | The General Assembly finds that workers are essential to | ||||||
22 | the prosperity of our State's economy and play a critical role | ||||||
23 | in Illinois becoming leader in manufacturing. The General |
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1 | Assembly further finds that, for the prosperity of our State, | ||||||
2 | workers in this industry must be afforded high quality jobs | ||||||
3 | that honor the dignity of work. Therefore, the General | ||||||
4 | Assembly finds that it is in the best interest of Illinois to | ||||||
5 | protect the work conditions, worker safety, and worker rights | ||||||
6 | in the manufacturing industry and further finds that employer | ||||||
7 | workplace policies shall be interpreted broadly to protect | ||||||
8 | employees. | ||||||
9 | Section 10. Definitions. As used in this Act: | ||||||
10 | "Agreement" means the agreement between a taxpayer and the | ||||||
11 | Department under the provisions of Section 45 of this Act. | ||||||
12 | "Applicant" means a taxpayer that (i) operates a business | ||||||
13 | in Illinois or is planning to locate a business within the | ||||||
14 | State of Illinois and (ii) is engaged in interstate or | ||||||
15 | intrastate commerce for the purpose of manufacturing electric | ||||||
16 | vehicles, electric vehicle component parts, or electric | ||||||
17 | vehicle power supply equipment. "Applicant" does not include a | ||||||
18 | taxpayer who closes or substantially reduces by more than 50% | ||||||
19 | operations at one location in the State and relocates | ||||||
20 | substantially the same operation to another location in the | ||||||
21 | State. This does not prohibit a Taxpayer from expanding its | ||||||
22 | operations at another location in the State. This also does | ||||||
23 | not prohibit a Taxpayer from moving its operations from one | ||||||
24 | location in the State to another location in the State for the | ||||||
25 | purpose of expanding the operation, provided that the |
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1 | Department determines that expansion cannot reasonably be | ||||||
2 | accommodated within the municipality or county in which the | ||||||
3 | business is located, or, in the case of a business located in | ||||||
4 | an incorporated area of the county, within the county in which | ||||||
5 | the business is located, after conferring with the chief | ||||||
6 | elected official of the municipality or county and taking into | ||||||
7 | consideration any evidence offered by the municipality or | ||||||
8 | county regarding the ability to accommodate expansion within | ||||||
9 | the municipality or county. | ||||||
10 | "Capital improvements" means the purchase, renovation, | ||||||
11 | rehabilitation, or construction of permanent tangible land, | ||||||
12 | buildings, structures, equipment, and furnishings in an | ||||||
13 | approved project sited in Illinois and expenditures for goods | ||||||
14 | or services that are normally capitalized, including | ||||||
15 | organizational costs and research and development costs | ||||||
16 | incurred in Illinois. For land, buildings, structures, and | ||||||
17 | equipment that are leased, the lease must equal or exceed the | ||||||
18 | term of the agreement, and the cost of the property shall be | ||||||
19 | determined from the present value, using the corporate | ||||||
20 | interest rate prevailing at the time of the application, of | ||||||
21 | the lease payments. | ||||||
22 | "Credit" means either a "REV Illinois Credit" or a "REV | ||||||
23 | Construction Jobs Credit" agreed to between the Department and | ||||||
24 | applicant under this Act. | ||||||
25 | "Department" means the Department of Commerce and Economic | ||||||
26 | Opportunity. |
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1 | "Director" means the Director of Commerce and Economic | ||||||
2 | Opportunity. | ||||||
3 | "Electric vehicle" means a vehicle that is exclusively | ||||||
4 | powered by and refueled by electricity, must be plugged in to | ||||||
5 | charge or utilize a pre-charged battery, and is permitted to | ||||||
6 | operate on public roadways. "Electric vehicle" does not | ||||||
7 | include hybrid electric vehicles and extended-range electric | ||||||
8 | vehicles that are also equipped with conventional fueled | ||||||
9 | propulsion or auxiliary engines. | ||||||
10 | "Electric vehicle manufacturer" means a new or existing | ||||||
11 | manufacturer that is focused on reequipping, expanding, or | ||||||
12 | establishing a manufacturing facility in Illinois that | ||||||
13 | produces electric vehicles as defined in this Section. | ||||||
14 | "Electric vehicle component parts manufacturer" means a | ||||||
15 | new or existing manufacturer that is primarily focused on | ||||||
16 | reequipping, expanding, or establishing a manufacturing | ||||||
17 | facility in Illinois that produces key components that | ||||||
18 | directly support the electric functions of electric vehicles, | ||||||
19 | as defined by this Section. | ||||||
20 | "Electric vehicle power supply equipment" means the | ||||||
21 | equipment used specifically for the purpose of delivering | ||||||
22 | electricity to an electric vehicle. | ||||||
23 | "Electric vehicle power supply manufacturer" means a new | ||||||
24 | or existing manufacturer that is focused on reequipping, | ||||||
25 | expanding, or establishing a manufacturing facility in | ||||||
26 | Illinois that produces electric vehicle power supply equipment |
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1 | used for the purpose of delivering electricity to an electric | ||||||
2 | vehicle. | ||||||
3 | "Energy Transition Area" means a county with less than | ||||||
4 | 100,000 people or a municipality that contains one or more of | ||||||
5 | the following: | ||||||
6 | (1)a fossil fuel plant that was retired from service | ||||||
7 | or has significant reduced service within 6 years before | ||||||
8 | the time of the application or will be retired or have | ||||||
9 | service significantly reduced within 6 years following the | ||||||
10 | time of the application; or | ||||||
11 | (2) a coal mine that was closed or had operations | ||||||
12 | significantly reduced within 6 years before the time of | ||||||
13 | the application or is anticipated to be closed or have | ||||||
14 | operations significantly reduced within 6 years following | ||||||
15 | the time of the application. | ||||||
16 | "Full-time employee" means an individual who is employed | ||||||
17 | for consideration for at least 35 hours each week or who | ||||||
18 | renders any other standard of service generally accepted by | ||||||
19 | industry custom or practice as full-time employment. An | ||||||
20 | individual for whom a W-2 is issued by a Professional Employer | ||||||
21 | Organization (PEO) is a full-time employee if employed in the | ||||||
22 | service of the applicant for consideration for at least 35 | ||||||
23 | hours each week. | ||||||
24 | "Incremental income tax" means the total amount withheld | ||||||
25 | during the taxable year from the compensation of new employees | ||||||
26 | and, if applicable, retained employees under Article 7 of the |
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1 | Illinois Income Tax Act arising from employment at a project | ||||||
2 | that is the subject of an agreement. | ||||||
3 | "Institution of higher education" or "institution" means | ||||||
4 | any accredited public or private university, college, | ||||||
5 | community college, business, technical, or vocational school, | ||||||
6 | or other accredited educational institution offering degrees | ||||||
7 | and instruction beyond the secondary school level. | ||||||
8 | "Minority person" means a minority person as defined in | ||||||
9 | the Business Enterprise for Minorities, Women, and Persons | ||||||
10 | with Disabilities Act. | ||||||
11 | "New employee" means a newly-hired full-time employee | ||||||
12 | employed to work at the project site and whose work is directly | ||||||
13 | related to the project. | ||||||
14 | "Noncompliance date" means, in the case of a taxpayer that | ||||||
15 | is not complying with the requirements of the agreement or the | ||||||
16 | provisions of this Act, the day following the last date upon | ||||||
17 | which the taxpayer was in compliance with the requirements of | ||||||
18 | the agreement and the provisions of this Act, as determined by | ||||||
19 | the Director, pursuant to Section 70. | ||||||
20 | "Pass-through entity" means an entity that is exempt from | ||||||
21 | the tax under subsection (b) or (c) of Section 205 of the | ||||||
22 | Illinois Income Tax Act. | ||||||
23 | "Placed in service" means the state or condition of | ||||||
24 | readiness, availability for a specifically assigned function, | ||||||
25 | and the facility is constructed and ready to conduct its | ||||||
26 | facility operations to manufacture goods. |
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1 | "Professional employer organization" (PEO) means an | ||||||
2 | employee leasing company, as defined in Section 206.1 of the | ||||||
3 | Illinois Unemployment Insurance Act. | ||||||
4 | "Program" means the Reimagining Electric Vehicles in | ||||||
5 | Illinois Program (the REV Illinois Program) established in | ||||||
6 | this Act. | ||||||
7 | "Project" or "REV Illinois Project" means a for-profit | ||||||
8 | economic development activity for the manufacture of electric | ||||||
9 | vehicles, electric vehicle component parts, or electric | ||||||
10 | vehicle power supply equipment which is designated by the | ||||||
11 | Department as a REV Illinois Project and is the subject of an | ||||||
12 | agreement. | ||||||
13 | "Recycling facility" means a location at which the | ||||||
14 | taxpayer disposes of batteries and other component parts in | ||||||
15 | manufacturing of electric vehicles, electric vehicle component | ||||||
16 | parts, or electric vehicle power supply equipment. | ||||||
17 | "Related member" means a person that, with respect to the | ||||||
18 | taxpayer during any portion of the taxable year, is any one of | ||||||
19 | the following: | ||||||
20 | (1) An individual stockholder, if the stockholder and | ||||||
21 | the members of the stockholder's family (as defined in | ||||||
22 | Section 318 of the Internal Revenue Code) own directly, | ||||||
23 | indirectly, beneficially, or constructively, in the | ||||||
24 | aggregate, at least 50% of the value of the taxpayer's | ||||||
25 | outstanding stock. | ||||||
26 | (2) A partnership, estate, trust and any partner or |
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1 | beneficiary, if the partnership, estate, or trust, and its | ||||||
2 | partners or beneficiaries own directly, indirectly, | ||||||
3 | beneficially, or constructively, in the aggregate, at | ||||||
4 | least 50% of the profits, capital, stock, or value of the | ||||||
5 | taxpayer. | ||||||
6 | (3) A corporation, and any party related to the | ||||||
7 | corporation in a manner that would require an attribution | ||||||
8 | of stock from the corporation under the attribution rules | ||||||
9 | of Section 318 of the Internal Revenue Code, if the | ||||||
10 | Taxpayer owns directly, indirectly, beneficially, or | ||||||
11 | constructively at least 50% of the value of the | ||||||
12 | corporation's outstanding stock. | ||||||
13 | (4) A corporation and any party related to that | ||||||
14 | corporation in a manner that would require an attribution | ||||||
15 | of stock from the corporation to the party or from the | ||||||
16 | party to the corporation under the attribution rules of | ||||||
17 | Section 318 of the Internal Revenue Code, if the | ||||||
18 | corporation and all such related parties own in the | ||||||
19 | aggregate at least 50% of the profits, capital, stock, or | ||||||
20 | value of the taxpayer. | ||||||
21 | (5) A person to or from whom there is an attribution of | ||||||
22 | stock ownership in accordance with Section 1563(e) of the | ||||||
23 | Internal Revenue Code, except, for purposes of determining | ||||||
24 | whether a person is a related member under this paragraph, | ||||||
25 | 20% shall be substituted for 5% wherever 5% appears in | ||||||
26 | Section 1563(e) of the Internal Revenue Code. |
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1 | "Retained employee" means a full-time employee employed by | ||||||
2 | the taxpayer prior to the term of the Agreement who continues | ||||||
3 | to be employed during the term of the agreement whose job | ||||||
4 | duties are directly and substantially related to the project. | ||||||
5 | For purposes of this definition, "directly and substantially | ||||||
6 | related to the project" means at least two-thirds of the | ||||||
7 | employee's job duties must be directly related to the project | ||||||
8 | and the employee must devote at least two-thirds of his or her | ||||||
9 | time to the project. The term "retained employee" does not | ||||||
10 | include any individual who has a direct or an indirect | ||||||
11 | ownership interest of at least 5% in the profits, equity, | ||||||
12 | capital, or value of the taxpayer or a child, grandchild, | ||||||
13 | parent, or spouse, other than a spouse who is legally | ||||||
14 | separated from the individual, of any individual who has a | ||||||
15 | direct or indirect ownership of at least 5% in the profits, | ||||||
16 | equity, capital, or value of the taxpayer. | ||||||
17 | "REV Illinois credit" means a credit agreed to between the | ||||||
18 | Department and the applicant under this Act that is based on | ||||||
19 | the incremental income tax attributable to new employees and, | ||||||
20 | if applicable, retained employees, and on training costs for | ||||||
21 | such employees at the applicant's project. | ||||||
22 | "REV construction jobs credit" means a credit agreed to | ||||||
23 | between the Department and the applicant under this Act that | ||||||
24 | is based on the incremental income tax attributable to | ||||||
25 | construction wages paid in connection with construction of the | ||||||
26 | project facilities. |
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1 | "Statewide baseline" means the total number of full-time | ||||||
2 | employees of the applicant and any related member employed by | ||||||
3 | such entities at the time of application for incentives under | ||||||
4 | this Act. | ||||||
5 | "Taxpayer" means an individual, corporation, partnership, | ||||||
6 | or other entity that has a legal obligation to pay Illinois | ||||||
7 | income taxes and file an Illinois income tax return. | ||||||
8 | "Training costs" means costs incurred to upgrade the | ||||||
9 | technological skills of full-time employees in Illinois and | ||||||
10 | includes: curriculum development; training materials | ||||||
11 | (including scrap product costs); trainee domestic travel | ||||||
12 | expenses; instructor costs (including wages, fringe benefits, | ||||||
13 | tuition and domestic travel expenses); rent, purchase or lease | ||||||
14 | of training equipment; and other usual and customary training | ||||||
15 | costs. "Training costs" do not include costs associated with | ||||||
16 | travel outside the United States (unless the Taxpayer receives | ||||||
17 | prior written approval for the travel by the Director based on | ||||||
18 | a showing of substantial need or other proof the training is | ||||||
19 | not reasonably available within the United States), wages and | ||||||
20 | fringe benefits of employees during periods of training, or | ||||||
21 | administrative cost related to Full-Time Employees of the | ||||||
22 | Taxpayer. | ||||||
23 | "Underserved area" means any geographic areas as defined | ||||||
24 | in Section 5-5 of the Economic Development for a Growing | ||||||
25 | Economy Tax Credit Act. |
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1 | Section 15. Powers of the Department. The Department, in | ||||||
2 | addition to those powers granted under the Civil | ||||||
3 | Administrative Code of Illinois, is granted and shall have all | ||||||
4 | the powers necessary or convenient to administer the program | ||||||
5 | under this Act and to carry out and effectuate the purposes and | ||||||
6 | provisions of this Act, including, but not limited to, the | ||||||
7 | power and authority to: | ||||||
8 | (1) adopt rules deemed necessary and appropriate for | ||||||
9 | the administration of the REV Illinois Program, the | ||||||
10 | designation of REV Illinois Projects, and the awarding of | ||||||
11 | credits; | ||||||
12 | (2) establish forms for applications, notifications, | ||||||
13 | contracts, or any other agreements and accept applications | ||||||
14 | at any time during the year; | ||||||
15 | (3) assist taxpayers pursuant to the provisions of | ||||||
16 | this Act and cooperate with taxpayers that are parties to | ||||||
17 | agreements under this Act to promote, foster, and support | ||||||
18 | economic development, capital investment, and job creation | ||||||
19 | or retention within the State; | ||||||
20 | (4) enter into agreements and memoranda of | ||||||
21 | understanding for participation of, and engage in | ||||||
22 | cooperation with, agencies of the federal government, | ||||||
23 | units of local government, universities, research | ||||||
24 | foundations or institutions, regional economic development | ||||||
25 | corporations, or other organizations to implement the | ||||||
26 | requirements and purposes of this Act; |
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1 | (5) gather information and conduct inquiries, in the | ||||||
2 | manner and by the methods it deems desirable, including | ||||||
3 | without limitation, gathering information with respect to | ||||||
4 | applicants for the purpose of making any designations or | ||||||
5 | certifications necessary or desirable or to gather | ||||||
6 | information to assist the Department with any | ||||||
7 | recommendation or guidance in the furtherance of the | ||||||
8 | purposes of this Act; | ||||||
9 | (6) establish, negotiate and effectuate agreements and | ||||||
10 | any term, agreement, or other document with any person, | ||||||
11 | necessary or appropriate to accomplish the purposes of | ||||||
12 | this Act; and to consent, subject to the provisions of any | ||||||
13 | agreement with another party, to the modification or | ||||||
14 | restructuring of any agreement to which the Department is | ||||||
15 | a party; | ||||||
16 | (7) fix, determine, charge, and collect any premiums, | ||||||
17 | fees, charges, costs, and expenses from applicants, | ||||||
18 | including, without limitation, any application fees, | ||||||
19 | commitment fees, program fees, financing charges, or | ||||||
20 | publication fees as deemed appropriate to pay expenses | ||||||
21 | necessary or incident to the administration, staffing, or | ||||||
22 | operation in connection with the Department's activities | ||||||
23 | under this Act, or for preparation, implementation, and | ||||||
24 | enforcement of the terms of the agreement, or for | ||||||
25 | consultation, advisory and legal fees, and other costs; | ||||||
26 | however, all fees and expenses incident thereto shall be |
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1 | the responsibility of the applicant; | ||||||
2 | (8) provide for sufficient personnel to permit | ||||||
3 | administration, staffing, operation, and related support | ||||||
4 | required to adequately discharge its duties and | ||||||
5 | responsibilities described in this Act from funds made | ||||||
6 | available through charges to applicants or from funds as | ||||||
7 | may be appropriated by the General Assembly for the | ||||||
8 | administration of this Act; | ||||||
9 | (9) require applicants, upon written request, to issue | ||||||
10 | any necessary authorization to the appropriate federal, | ||||||
11 | State, or local authority for the release of information | ||||||
12 | concerning a project being considered under the provisions | ||||||
13 | of this Act, with the information requested to include, | ||||||
14 | but not be limited to, financial reports, returns, or | ||||||
15 | records relating to the taxpayer or its project; | ||||||
16 | (10) require that a taxpayer shall at all times keep | ||||||
17 | proper books of record and account in accordance with | ||||||
18 | generally accepted accounting principles consistently | ||||||
19 | applied, with the books, records, or papers related to the | ||||||
20 | agreement in the custody or control of the taxpayer open | ||||||
21 | for reasonable Department inspection and audits, and | ||||||
22 | including, without limitation, the making of copies of the | ||||||
23 | books, records, or papers, and the inspection or appraisal | ||||||
24 | of any of the taxpayer or project assets; | ||||||
25 | (11) take whatever actions are necessary or | ||||||
26 | appropriate to protect the State's interest in the event |
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1 | of bankruptcy, default, foreclosure, or noncompliance with | ||||||
2 | the terms and conditions of financial assistance or | ||||||
3 | participation required under this Act, including the power | ||||||
4 | to sell, dispose, lease, or rent, upon terms and | ||||||
5 | conditions determined by the Director to be appropriate, | ||||||
6 | real or personal property that the Department may receive | ||||||
7 | as a result of these actions. | ||||||
8 | Section 20. REV Illinois Program; project applications. | ||||||
9 | (a) The Reimagining Electric Vehicles in Illinois (REV | ||||||
10 | Illinois) Program is hereby established and shall be | ||||||
11 | administered by the Department. The Program will provide | ||||||
12 | financial incentives to eligible manufacturers of electric | ||||||
13 | vehicles, electric vehicle component parts, and electric | ||||||
14 | vehicle power supply equipment. | ||||||
15 | (b) Any taxpayer planning a project to be located in | ||||||
16 | Illinois may request consideration for designation of its | ||||||
17 | project as a REV Illinois Project, by formal written letter of | ||||||
18 | request or by formal application to the Department, in which | ||||||
19 | the applicant states its intent to make at least a specified | ||||||
20 | level of investment and intends to hire a specified number of | ||||||
21 | full-time employees at a designated location in Illinois. As | ||||||
22 | circumstances require, the Department shall require a formal | ||||||
23 | application from an applicant and a formal letter of request | ||||||
24 | for assistance. | ||||||
25 | (c) In order to qualify for credits under the REV Illinois |
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1 | Program, an Applicant must: | ||||||
2 | (1) for an electric vehicle manufacturer: | ||||||
3 | (A) make an investment of at least $1,500,000,000 | ||||||
4 | in capital improvements at the project site; | ||||||
5 | (B) to be placed in service within the State | ||||||
6 | within a 60-month period after approval of the | ||||||
7 | application; and | ||||||
8 | (C) create at least 500 new full-time employee | ||||||
9 | jobs; or | ||||||
10 | (2) for an electric vehicle component parts | ||||||
11 | manufacturer: | ||||||
12 | (A) make an investment of at least $300,000,000 in | ||||||
13 | capital improvements at the project site; | ||||||
14 | (B) manufacture one or more parts that are | ||||||
15 | primarily used for electric vehicle manufacturing; | ||||||
16 | (C) to be placed in service within the State | ||||||
17 | within a 60-month period after approval of the | ||||||
18 | application; and | ||||||
19 | (D) create at least 150 new full-time employee | ||||||
20 | jobs; or | ||||||
21 | (3) for an electric vehicle manufacturer, electric | ||||||
22 | vehicle power supply equipment Manufacturer, or electric | ||||||
23 | vehicle component part manufacturer that does not quality | ||||||
24 | under paragraph (2) above: | ||||||
25 | (A) make an investment of at least $20,000,000 in | ||||||
26 | capital improvements at the project site; |
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1 | (B) for electric vehicle component part | ||||||
2 | manufacturers, manufacture one or more parts that are | ||||||
3 | primarily used for electric vehicle manufacturing; | ||||||
4 | (C) to be placed in service within the State | ||||||
5 | within a 48-month period after approval of the | ||||||
6 | application; and | ||||||
7 | (D) create at least 50 new full-time employee | ||||||
8 | jobs; or | ||||||
9 | (4) for an electric vehicle manufacturer or electric | ||||||
10 | vehicle component parts manufacturer with existing | ||||||
11 | operations within Illinois that intends to convert or | ||||||
12 | expand, in whole or in part, the existing facility from | ||||||
13 | traditional manufacturing to electric vehicle | ||||||
14 | manufacturing, electric vehicle component parts | ||||||
15 | manufacturing, or electric vehicle power supply equipment | ||||||
16 | manufacturing: | ||||||
17 | (A) make an investment of at least $100,000,000 in | ||||||
18 | capital improvements at the project site; | ||||||
19 | (B) to be placed in service within the State | ||||||
20 | within a 60-month period after approval of the | ||||||
21 | application; and | ||||||
22 | (C) create the lesser of 75 new full-time employee | ||||||
23 | jobs or new full-time employee jobs equivalent to 10% | ||||||
24 | of the Statewide baseline applicable to the taxpayer | ||||||
25 | and any related member at the time of application. | ||||||
26 | (d) For any applicant creating the full-time employee jobs |
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1 | noted in subsection (c), those jobs must have a total | ||||||
2 | compensation equal to or greater than 120% of the average wage | ||||||
3 | paid to full-time employees in the county where the project is | ||||||
4 | located, as determined by the U.S. Bureau of Labor Statistics. | ||||||
5 | (e) For any applicant, within 24 months after being placed | ||||||
6 | in service, it must certify to the Department that it is carbon | ||||||
7 | neutral or has attained certification under one of more of the | ||||||
8 | following green building standards: | ||||||
9 | (1) BREEAM for New Construction or BREEAM In-Use; | ||||||
10 | (2) ENERGY STAR; | ||||||
11 | (3) Envision; | ||||||
12 | (4) ISO 50001 – energy management; | ||||||
13 | (5) LEED for Building Design and Construction or LEED | ||||||
14 | for Building Operations and Maintenance; | ||||||
15 | (6) Green Globes for New Construction or Green Globes | ||||||
16 | for Existing Buildings; or | ||||||
17 | (7) UL 3223. | ||||||
18 | (f) Each applicant must outline its hiring plan and | ||||||
19 | commitment to recruit and hire full-time employee positions at | ||||||
20 | the project site. The hiring plan may include a partnership | ||||||
21 | with an institution of higher education to provide | ||||||
22 | internships, including, but not limited to, internships | ||||||
23 | supported by the Clean Jobs Workforce Network Program, or | ||||||
24 | full-time permanent employment for students at the project | ||||||
25 | site. Additionally, the applicant may create or utilize | ||||||
26 | participants from apprenticeship programs that are approved by |
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1 | and registered with the United States Department of Labor's | ||||||
2 | Bureau of Apprenticeship and Training. The Applicant may apply | ||||||
3 | for apprenticeship education expense credits in accordance | ||||||
4 | with the provisions set forth in 14 Ill. Admin. Code 522. Each | ||||||
5 | applicant is required to report annually, on or before April | ||||||
6 | 15, on the diversity of its workforce in accordance with | ||||||
7 | Section 50 of this Act. For existing facilities of applicants | ||||||
8 | under paragraph (3) of subsection (b) above, if the taxpayer | ||||||
9 | expects a reduction in force due to its transition to | ||||||
10 | manufacturing electric vehicle, electric vehicle component | ||||||
11 | parts, or electric vehicle power supply equipment, the plan | ||||||
12 | submitted under this Section must outline the taxpayer's plan | ||||||
13 | to assist with retraining its workforce aligned with the | ||||||
14 | taxpayer's adoption of new technologies and anticipated | ||||||
15 | efforts to retrain employees through employment opportunities | ||||||
16 | within the taxpayer's workforce. | ||||||
17 | (g) Each applicant must demonstrate a contractual or other | ||||||
18 | relationship with a recycling facility, or demonstrate its own | ||||||
19 | recycling capabilities, at the time of application and report | ||||||
20 | annually a continuing contractual or other relationship with a | ||||||
21 | recycling facility and the percentage of batteries used in | ||||||
22 | electric vehicles recycled throughout the term of the | ||||||
23 | agreement. | ||||||
24 | (h) A taxpayer may not enter into more than one agreement | ||||||
25 | under this Act with respect to a single address or location for | ||||||
26 | the same period of time. Also, a taxpayer may not enter into an |
| |||||||
| |||||||
1 | agreement under this Act with respect to a single address or | ||||||
2 | location for the same period of time for which the taxpayer | ||||||
3 | currently holds an active agreement under the Economic | ||||||
4 | Development for a Growing Economy Tax Credit Act. This | ||||||
5 | provision does not preclude the applicant from entering into | ||||||
6 | an additional agreement after the expiration or voluntary | ||||||
7 | termination of an earlier agreement under this Act or under | ||||||
8 | the Economic Development for a Growing Economy Tax Credit Act | ||||||
9 | to the extent that the taxpayer's application otherwise | ||||||
10 | satisfies the terms and conditions of this Act and is approved | ||||||
11 | by the Department. An applicant with an existing agreement | ||||||
12 | under the Economic Development for a Growing Economy Tax | ||||||
13 | Credit Act may submit an application for an agreement under | ||||||
14 | this Act after it terminates any existing agreement under the | ||||||
15 | Economic Development for a Growing Economy Tax Credit Act with | ||||||
16 | respect to the same address or location. | ||||||
17 | Section 25. Review of application. The Department shall | ||||||
18 | determine which projects will benefit the State. In making its | ||||||
19 | recommendation that an applicant's application for credit | ||||||
20 | should or should not be accepted, which shall occur within a | ||||||
21 | reasonable time frame as determined by the nature of the | ||||||
22 | application, the Department shall determine that all the | ||||||
23 | following conditions exist: | ||||||
24 | (1) the applicant intends to make the required | ||||||
25 | investment in the State and intends to hire the required |
| |||||||
| |||||||
1 | number of full-time employees; | ||||||
2 | (2) the applicant's project is economically sound, | ||||||
3 | will benefit the people of the State by increasing | ||||||
4 | opportunities for employment, and will strengthen the | ||||||
5 | economy of the State; | ||||||
6 | (3) awarding the credit will result in an overall | ||||||
7 | positive fiscal impact to the State, as certified by the | ||||||
8 | Department using the best available data; and | ||||||
9 | (4) the credit is not prohibited under this Act. | ||||||
10 | Section 30. Tax credit awards. | ||||||
11 | (a) Subject to the conditions set forth in this Act, a | ||||||
12 | taxpayer is entitled to a credit against the tax imposed | ||||||
13 | pursuant to subsections (a) and (b) of Section 201 of the | ||||||
14 | Illinois Income Tax Act for a taxable year beginning on or | ||||||
15 | after January 1, 2025 if the taxpayer is awarded a credit by | ||||||
16 | the Department in accordance with an agreement under this Act. | ||||||
17 | The Department has authority to award credits under this Act | ||||||
18 | on and after January 1, 2022. | ||||||
19 | (b) REV Illinois Credits. A taxpayer may receive a tax | ||||||
20 | credit against the tax imposed under subsections (a) and (b) | ||||||
21 | of Section 201 of the Illinois Income Tax Act, not to exceed | ||||||
22 | the sum of (i) 75% of the incremental income tax attributable | ||||||
23 | to new employees at the applicant's project and (ii) 10% of the | ||||||
24 | training costs of the new employees. If the project is located | ||||||
25 | in an underserved area or an energy transition area, then the |
| |||||||
| |||||||
1 | amount of the credit may not exceed the sum of (i) 100% of the | ||||||
2 | incremental income tax attributable to new employees at the | ||||||
3 | applicant's project; and (ii) 10% of the training costs of the | ||||||
4 | new employees. The percentage of training costs includable in | ||||||
5 | the calculation may be increased by an additional 15% for | ||||||
6 | training costs associated with new employees that are recent | ||||||
7 | (2 years or less) graduates, certificate holders, or | ||||||
8 | credential recipients from an institution of higher education | ||||||
9 | in Illinois, or, if the training is provided by an institution | ||||||
10 | of higher education in Illinois, the Clean Jobs Workforce | ||||||
11 | Network Program, or an apprenticeship and training program | ||||||
12 | located in Illinois and approved by and registered with the | ||||||
13 | United States Department of Labor's Bureau of Apprenticeship | ||||||
14 | and Training. An applicant is also eligible for a training | ||||||
15 | credit that shall not exceed 10% of the training costs of | ||||||
16 | retained employees for the purpose of upskilling to meet the | ||||||
17 | operational needs of the applicant or the REV Illinois | ||||||
18 | Project. The percentage of training costs includable in the | ||||||
19 | calculation shall not exceed a total of 25%. If an applicant | ||||||
20 | agrees to hire the required number of new employees, then the | ||||||
21 | maximum amount of the credit for that applicant may be | ||||||
22 | increased by an amount not to exceed 25% of the incremental | ||||||
23 | income tax attributable to retained employees at the | ||||||
24 | applicant's project; provided that, in order to receive the | ||||||
25 | increase for retained employees, the applicant must, if | ||||||
26 | applicable, meet or exceed the statewide baseline. If the |
| |||||||
| |||||||
1 | Project is in an underserved area or an energy transition | ||||||
2 | area, the maximum amount of the credit attributable to | ||||||
3 | retained employees for the applicant may be increased to an | ||||||
4 | amount not to exceed 50% of the incremental income tax | ||||||
5 | attributable to retained employees at the applicant's project; | ||||||
6 | provided that, in order to receive the increase for retained | ||||||
7 | employees, the applicant must meet or exceed the statewide | ||||||
8 | baseline. REV Illinois Credits awarded may include credit | ||||||
9 | earned for incremental income tax withheld and training costs | ||||||
10 | incurred by the taxpayer beginning on or after January 1, | ||||||
11 | 2022. Credits so earned and certified by the Department may be | ||||||
12 | applied against the tax imposed by subsections (a) and (b) of | ||||||
13 | Section 201 of the Illinois Income Tax Act for taxable years | ||||||
14 | beginning on or after January 1, 2025. | ||||||
15 | (c) REV Construction Jobs Credit. For construction wages | ||||||
16 | associated with a project that qualified for a REV Illinois | ||||||
17 | Credit under subsection (b), the taxpayer may receive a tax | ||||||
18 | credit against the tax imposed under subsections (a) and (b) | ||||||
19 | of Section 201 of the Illinois Income Tax Act in an amount | ||||||
20 | equal to 50% of the incremental income tax attributable to | ||||||
21 | construction wages paid in connection with construction of the | ||||||
22 | project facilities, as a jobs credit for workers hired to | ||||||
23 | construct the project. | ||||||
24 | The REV Construction Jobs Credit may not exceed 75% of the | ||||||
25 | amount of the incremental income tax attributable to | ||||||
26 | construction wages paid in connection with construction of the |
| |||||||
| |||||||
1 | project facilities if the project is in an underserved area or | ||||||
2 | an energy transition area. | ||||||
3 | (d) The Department shall certify to the Department of | ||||||
4 | Revenue: (1) the identity of Taxpayers that are eligible for | ||||||
5 | the REV Illinois Credit and REV Construction Jobs Credit; (2) | ||||||
6 | the amount of the REV Illinois Credits and REV Construction | ||||||
7 | Jobs Credits awarded in each calendar year; and (3) the amount | ||||||
8 | of the REV Illinois Credit and REV Construction Jobs Credit | ||||||
9 | claimed in each calendar year. REV Illinois Credits awarded | ||||||
10 | may include credit earned for Incremental Income Tax withheld | ||||||
11 | and Training Costs incurred by the Taxpayer beginning on or | ||||||
12 | after January 1, 2022. Credits so earned and certified by the | ||||||
13 | Department may be applied against the tax imposed by Section | ||||||
14 | 201(a) and (b) of the Illinois Income Tax Act for taxable years | ||||||
15 | beginning on or after January 1, 2025. | ||||||
16 | (e) Applicants seeking certification for a tax credits | ||||||
17 | related to the construction of the project facilities in the | ||||||
18 | State shall require the contractor to enter into a project | ||||||
19 | labor agreement that conforms with the Project Labor | ||||||
20 | Agreements Act. | ||||||
21 | (f) Any applicant issued a certificate for a tax credit or | ||||||
22 | tax exemption under this Act must annually report to the | ||||||
23 | Department the total project tax benefits received. Reports | ||||||
24 | are due no later than May 31 of each year and shall cover the | ||||||
25 | previous calendar year. The first report is for the 2022 | ||||||
26 | calendar year and is due no later than May 31, 2023. |
| |||||||
| |||||||
1 | (g) Nothing in this Act shall prohibit an award of credit | ||||||
2 | to an applicant that uses a PEO if all other award criteria are | ||||||
3 | satisfied. | ||||||
4 | (h) With respect to any portion of a REV Illinois Credit | ||||||
5 | that is based on the incremental income tax attributable to | ||||||
6 | new employees or retained employees, in lieu of the Credit | ||||||
7 | allowed under this Act against the taxes imposed pursuant to | ||||||
8 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
9 | Tax Act, a taxpayer that otherwise meets the criteria set | ||||||
10 | forth in this Section, the taxpayer may elect to claim the | ||||||
11 | credit, on or after January 1, 2025, against its obligation to | ||||||
12 | pay over withholding under Section 704A of the Illinois Income | ||||||
13 | Tax Act. The election shall be made in the manner prescribed by | ||||||
14 | the Department of Revenue and once made shall be irrevocable. | ||||||
15 | Section 35. Relocation of jobs in Illinois. A taxpayer is | ||||||
16 | not entitled to claim a credit provided by this Act with | ||||||
17 | respect to any jobs that the Taxpayer relocates from one site | ||||||
18 | in Illinois to another site in Illinois. Any full-time | ||||||
19 | employee relocated to Illinois in connection with a qualifying | ||||||
20 | project is deemed to be a new employee for purposes of this | ||||||
21 | Act. Determinations under this Section shall be made by the | ||||||
22 | Department. | ||||||
23 | Section 40. Amount and duration of the credits; limitation | ||||||
24 | to amount of costs of specified items. The Department shall |
| |||||||
| |||||||
1 | determine the amount and duration of the REV Illinois Credit | ||||||
2 | awarded under this Act, subject to the limitations set forth | ||||||
3 | in this Act. For a project that qualified under paragraph (1), | ||||||
4 | (2), or (4) of subsection (c) of Section 20, the duration of | ||||||
5 | the credit may not exceed 15 taxable years. For project that | ||||||
6 | qualified under paragraph (3) of subsection (c) of Section 20, | ||||||
7 | the duration of the credit may not exceed 10 taxable years. The | ||||||
8 | credit may be stated as a percentage of the incremental income | ||||||
9 | tax and training costs attributable to the applicant's project | ||||||
10 | and may include a fixed dollar limitation. | ||||||
11 | Nothing in this Section shall prevent the Department, in | ||||||
12 | consultation with the Department of Revenue, from adopting | ||||||
13 | rules to extend the sunset of any earned, existing, and unused | ||||||
14 | tax credit or credits a taxpayer may be in possession of, as | ||||||
15 | provided for in Section 605-1055 of the Department of Commerce | ||||||
16 | and Economic Opportunity Law of the Civil Administrative Code | ||||||
17 | of Illinois, notwithstanding the carry-forward provisions | ||||||
18 | pursuant to paragraph (4) of Section 211 of the Illinois | ||||||
19 | Income Tax Act. | ||||||
20 | Section 45. Contents of agreements with applicants. | ||||||
21 | (a) The Department shall enter into an agreement with an | ||||||
22 | applicant that is awarded a credit under this Act. The | ||||||
23 | agreement shall include all of the following: | ||||||
24 | (1) A detailed description of the project that is the | ||||||
25 | subject of the agreement, including the location and |
| |||||||
| |||||||
1 | amount of the investment and jobs created or retained. | ||||||
2 | (2) The duration of the credit, the first taxable year | ||||||
3 | for which the credit may be awarded, and the first taxable | ||||||
4 | year in which the credit may be used by the taxpayer. | ||||||
5 | (3) The credit amount that will be allowed for each | ||||||
6 | taxable year. | ||||||
7 | (4) For a project qualified under paragraphs (1), (2), | ||||||
8 | or (4) of subsection (c) of Section 20, a requirement that | ||||||
9 | the taxpayer shall maintain operations at the project | ||||||
10 | location a minimum number of years not to exceed 15. For | ||||||
11 | project qualified under paragraph (3) of subsection (c) of | ||||||
12 | Section 20, a requirement that the taxpayer shall maintain | ||||||
13 | operations at the project location a minimum number of | ||||||
14 | years not to exceed 10. | ||||||
15 | (5) A specific method for determining the number of | ||||||
16 | new employees and if applicable, retained employees, | ||||||
17 | employed during a taxable year. | ||||||
18 | (6) A requirement that the taxpayer shall annually | ||||||
19 | report to the Department the number of new employees, the | ||||||
20 | incremental income tax withheld in connection with the new | ||||||
21 | employees, and any other information the Department deems | ||||||
22 | necessary and appropriate to perform its duties under this | ||||||
23 | Act. | ||||||
24 | (7) A requirement that the Director is authorized to | ||||||
25 | verify with the appropriate State agencies the amounts | ||||||
26 | reported under paragraph (6), and after doing so shall |
| |||||||
| |||||||
1 | issue a certificate to the taxpayer stating that the | ||||||
2 | amounts have been verified. | ||||||
3 | (8) A requirement that the taxpayer shall provide | ||||||
4 | written notification to the Director not more than 30 days | ||||||
5 | after the taxpayer makes or receives a proposal that would | ||||||
6 | transfer the taxpayer's State tax liability obligations to | ||||||
7 | a successor taxpayer. | ||||||
8 | (9) A detailed description of the number of new | ||||||
9 | employees to be hired, and the occupation and payroll of | ||||||
10 | full-time jobs to be created or retained because of the | ||||||
11 | project. | ||||||
12 | (10) The minimum investment the taxpayer will make in | ||||||
13 | capital improvements, the time period for placing the | ||||||
14 | property in service, and the designated location in | ||||||
15 | Illinois for the investment. | ||||||
16 | (11) A requirement that the taxpayer shall provide | ||||||
17 | written notification to the Director and the Director's | ||||||
18 | designee not more than 30 days after the taxpayer | ||||||
19 | determines that the minimum job creation or retention, | ||||||
20 | employment payroll, or investment no longer is or will be | ||||||
21 | achieved or maintained as set forth in the terms and | ||||||
22 | conditions of the agreement. Additionally, the | ||||||
23 | notification should outline to the Department the number | ||||||
24 | of layoffs, date of the layoffs, and detail taxpayer's | ||||||
25 | efforts to provide career and training counseling for the | ||||||
26 | impacted workers with industry-related certifications and |
| |||||||
| |||||||
1 | trainings. | ||||||
2 | (12) A provision that, if the total number of new | ||||||
3 | employees falls below a specified level, the allowance of | ||||||
4 | credit shall be suspended until the number of new | ||||||
5 | employees equals or exceeds the agreement amount. | ||||||
6 | (13) If applicable, a provision that specifies the | ||||||
7 | statewide baseline at the time of application for retained | ||||||
8 | employees. Additionally, the agreement must have a | ||||||
9 | provision addressing if the total number retained | ||||||
10 | employees falls below the statewide baseline, the | ||||||
11 | allowance of the credit shall be suspended until the | ||||||
12 | number of retained employees equals or exceeds the | ||||||
13 | agreement amount. | ||||||
14 | (14) A detailed description of the items for which the | ||||||
15 | costs incurred by the Taxpayer will be included in the | ||||||
16 | limitation on the Credit provided in Section 40. | ||||||
17 | (15) A provision stating that if the taxpayer fails to | ||||||
18 | meet either the investment or job creation and retention | ||||||
19 | requirements specified in the agreement during the entire | ||||||
20 | 5-year period beginning on the first day of the first | ||||||
21 | taxable year in which the agreement is executed and ending | ||||||
22 | on the last day of the fifth taxable year after the | ||||||
23 | agreement is executed, then the agreement is automatically | ||||||
24 | terminated on the last day of the fifth taxable year after | ||||||
25 | the agreement is executed, and the taxpayer is not | ||||||
26 | entitled to the award of any credits for any of that 5-year |
| |||||||
| |||||||
1 | period. | ||||||
2 | (16) A provision stating that if the taxpayer ceases | ||||||
3 | principal operations with the intent to permanently shut | ||||||
4 | down the project in the State during the term of the | ||||||
5 | Agreement, then the entire credit amount awarded to the | ||||||
6 | taxpayer prior to the date the taxpayer ceases principal | ||||||
7 | operations shall be returned to the Department and shall | ||||||
8 | be reallocated to the local workforce investment area in | ||||||
9 | which the project was located. | ||||||
10 | (17) A provision stating that the Taxpayer must | ||||||
11 | provide the reports outlined in Sections 50 and 55 on or | ||||||
12 | before April 15 each year. | ||||||
13 | (18) A provision requiring the taxpayer to report | ||||||
14 | annually its contractual obligations or otherwise with a | ||||||
15 | recycling facility for its operations. | ||||||
16 | (19) Any other performance conditions or contract | ||||||
17 | provisions the Department determines are necessary or | ||||||
18 | appropriate. | ||||||
19 | (20) Each taxpayer under paragraph (1) of subsection | ||||||
20 | (c) of Section 20 above shall maintain labor neutrality | ||||||
21 | toward any union organizing campaign for any employees of | ||||||
22 | the taxpayer assigned to work on the premises of the REV | ||||||
23 | Illinois Project Site. This paragraph shall not apply to | ||||||
24 | an electric vehicle manufacturer, electric vehicle | ||||||
25 | component part manufacturer, electric vehicle power supply | ||||||
26 | manufacturer or any joint venture including an electric |
| |||||||
| |||||||
1 | vehicle manufacturer, electric vehicle component part | ||||||
2 | manufacturer, and electric vehicle power supply | ||||||
3 | manufacturer, who is subject to collective bargaining | ||||||
4 | agreement entered into prior to the taxpayer filing an | ||||||
5 | application pursuant to this Act. | ||||||
6 | (b) The Department shall post on its website the terms of | ||||||
7 | each agreement entered into under this Act. Such information | ||||||
8 | shall be posted within 10 days after entering into the | ||||||
9 | agreement and must include the following: | ||||||
10 | (1) the name of the taxpayer; | ||||||
11 | (2) the location of the project; | ||||||
12 | (3) the estimated value of the credit; | ||||||
13 | (4) the number of new employee jobs and, if | ||||||
14 | applicable, number of retained employee jobs at the | ||||||
15 | project; and | ||||||
16 | (5) whether or not the project is in an underserved | ||||||
17 | area or energy transition area. | ||||||
18 | Section 50. Diversity report on the taxpayer's workforce, | ||||||
19 | board of directors, and vendors. | ||||||
20 | (a) Each taxpayer with a workforce of 100 or more | ||||||
21 | employees and with an agreement for a REV Illinois project | ||||||
22 | under this Act shall, starting on April 15, 2025, and every | ||||||
23 | year thereafter prior to April 15, for which the Taxpayer has | ||||||
24 | an Agreement under this Act, submit to the Department an | ||||||
25 | annual report detailing the diversity of the taxpayer's own |
| |||||||
| |||||||
1 | workforce, including full-time and part-time employees, | ||||||
2 | contractors, and board of directors' membership. Any taxpayer | ||||||
3 | seeking to claim a credit under this Act that fails to timely | ||||||
4 | submit the required report shall not receive a credit for that | ||||||
5 | taxable year unless and until such report is finalized and | ||||||
6 | submitted to the Department. The report should also address | ||||||
7 | the Taxpayer's best efforts to meet or exceed the recruitment | ||||||
8 | and hiring plan outlined in the application referenced in | ||||||
9 | Section 20. Those reports shall be submitted in the form and | ||||||
10 | manner required by the Department. | ||||||
11 | (b) Vendor diversity and annual report. Each taxpayer with | ||||||
12 | a workforce of 100 or more full-time employees shall, starting | ||||||
13 | on April 15, 2025 and every year thereafter for which the | ||||||
14 | taxpayer has an Agreement under this Act, report on the | ||||||
15 | diversity of the vendors that it utilizes, for publication on | ||||||
16 | the Department's website, and include the following | ||||||
17 | information: | ||||||
18 | (1) a point of contact for potential vendors to | ||||||
19 | register with the taxpayer's REV Illinois Project; | ||||||
20 | (2) certifications that the taxpayer accepts or | ||||||
21 | recognizes for minority and women-owned businesses as | ||||||
22 | entities; | ||||||
23 | (3) the taxpayers goals to contract with diverse | ||||||
24 | vendors, if any, for the next fiscal year for the entire | ||||||
25 | budget of the Taxpayer's REV Illinois Project; | ||||||
26 | (4) for the last fiscal year, the actual contractual |
| |||||||
| |||||||
1 | spending for the entire budget of the REV Illinois Project | ||||||
2 | and the actual spending for minority-owned businesses and | ||||||
3 | women-owned businesses, expressed as a percentage of the | ||||||
4 | total budget for actual spending for the REV Illinois | ||||||
5 | project; | ||||||
6 | (5) A narrative explaining the results of the report | ||||||
7 | and the taxpayer's plan to address the voluntary goals for | ||||||
8 | the next fiscal year; and | ||||||
9 | (6) A copy of the taxpayer's submission of vendor | ||||||
10 | diversity information to the federal government, including | ||||||
11 | but not limited to vendor diversity goals and actual | ||||||
12 | contractual spending for minority-and women-owned | ||||||
13 | businesses, if the Taxpayer is a federal contractor and is | ||||||
14 | required by the federal government to submit such | ||||||
15 | information. | ||||||
16 | Section 55. Sexual harassment policy report. Each taxpayer | ||||||
17 | claiming a credit under this Act shall, prior to April 15 of | ||||||
18 | each taxable year for which the taxpayer claims a credit under | ||||||
19 | this Act, submit to the Department a report detailing that | ||||||
20 | taxpayer's sexual harassment policy, which contains, at a | ||||||
21 | minimum, the following information: (i) the illegality of | ||||||
22 | sexual harassment; (ii) the definition of sexual harassment | ||||||
23 | under State law; (iii) a description of sexual harassment, | ||||||
24 | utilizing examples; (iv) the vendor's internal complaint | ||||||
25 | process, including penalties; (v) the legal recourse and |
| |||||||
| |||||||
1 | investigative and complaint processes available through the | ||||||
2 | Department; (vi) directions on how to contact the Department; | ||||||
3 | and (vii) protection against retaliation as provided by | ||||||
4 | Section 6-101 of the Illinois Human Rights Act. A copy of the | ||||||
5 | policy shall be provided to the Department upon request. The | ||||||
6 | reports required under this Section shall be submitted in a | ||||||
7 | form and manner determined by the Department. | ||||||
8 | Section 60. Certificate of verification; submission to the | ||||||
9 | Department of Revenue. | ||||||
10 | (a) A taxpayer claiming a credit under this Act shall | ||||||
11 | submit to the Department of Revenue a copy of the Director's | ||||||
12 | certificate of verification under this Act for the taxable | ||||||
13 | year. However, failure to submit a copy of the certificate | ||||||
14 | with the taxpayer's tax return shall not invalidate a claim | ||||||
15 | for a credit. | ||||||
16 | (b) For a taxpayer to be eligible for a certificate of | ||||||
17 | verification, the taxpayer shall provide proof as required by | ||||||
18 | the Department, prior to the end of each calendar year, | ||||||
19 | including, but not limited to, attestation by the taxpayer | ||||||
20 | that: | ||||||
21 | (1) The project has achieved the level of new employee | ||||||
22 | jobs specified in the agreement. | ||||||
23 | (2) The project has achieved the level of annual | ||||||
24 | payroll in Illinois specified in its agreement. | ||||||
25 | (3) The project has achieved the level of capital |
| |||||||
| |||||||
1 | improvements in Illinois specified in its agreement. | ||||||
2 | (4) The project has achieved and maintained carbon | ||||||
3 | neutrality or one of the certifications specified in this | ||||||
4 | Act. | ||||||
5 | Section 65. Certified payroll. | ||||||
6 | (a) Each contractor and subcontractor that is engaged in | ||||||
7 | construction work on project facilities for a taxpayer who | ||||||
8 | seeks to apply for a REV Construction Jobs credit shall: | ||||||
9 | (1) make and keep, for a period of 5 years from the | ||||||
10 | date of the last payment made on a contract or subcontract | ||||||
11 | for construction of facilities for a REV Illinois Project | ||||||
12 | pursuant to an agreement, records of all laborers and | ||||||
13 | other workers employed by the contractor or subcontractor | ||||||
14 | on the project; the records shall include: | ||||||
15 | (A) the worker's name; | ||||||
16 | (B) the worker's address; | ||||||
17 | (C) the worker's telephone number, if available; | ||||||
18 | (D) the worker's social security number; | ||||||
19 | (E) the worker's classification or | ||||||
20 | classifications; | ||||||
21 | (F) the worker's gross and net wages paid in each | ||||||
22 | pay period; | ||||||
23 | (G) the worker's number of hours worked in each | ||||||
24 | day; | ||||||
25 | (H) the worker's starting and ending times of work |
| |||||||
| |||||||
1 | each day; | ||||||
2 | (I) the worker's hourly wage rate; and | ||||||
3 | (J) the worker's hourly overtime wage rate; and | ||||||
4 | (2) no later than the 15th day of each calendar month, | ||||||
5 | provide a certified payroll for the immediately preceding | ||||||
6 | month to the taxpayer in charge of the project; within 5 | ||||||
7 | business days after receiving the certified payroll, the | ||||||
8 | Taxpayer shall file the certified payroll with the | ||||||
9 | Department of Labor and the Department; a certified | ||||||
10 | payroll must be filed for only those calendar months | ||||||
11 | during which construction on the REV Illinois Project | ||||||
12 | facilities has occurred; the certified payroll shall | ||||||
13 | consist of a complete copy of the records identified in | ||||||
14 | paragraph (1), but may exclude the starting and ending | ||||||
15 | times of work each day; the certified payroll shall be | ||||||
16 | accompanied by a statement signed by the contractor or | ||||||
17 | subcontractor or an officer, employee, or agent of the | ||||||
18 | contractor or subcontractor which avers that: | ||||||
19 | (A) he or she has examined the certified payroll | ||||||
20 | records required to be submitted by the Act and such | ||||||
21 | records are true and accurate; and | ||||||
22 | (B) the contractor or subcontractor is aware that | ||||||
23 | filing a certified payroll that he or she knows to be | ||||||
24 | false is a Class A misdemeanor. | ||||||
25 | A general contractor is not prohibited from relying on a | ||||||
26 | certified payroll of a lower-tier subcontractor, provided the |
| |||||||
| |||||||
1 | general contractor does not knowingly rely upon a | ||||||
2 | subcontractor's false certification. | ||||||
3 | (b) Any contractor or subcontractor subject to this | ||||||
4 | Section, and any officer, employee, or agent of such | ||||||
5 | contractor or subcontractor whose duty as an officer, | ||||||
6 | employee, or agent it is to file a certified payroll under this | ||||||
7 | Section, who willfully fails to file such a certified payroll, | ||||||
8 | on or before the date such certified payroll is required to be | ||||||
9 | filed and any person who willfully files a false certified | ||||||
10 | payroll as to any material fact is in violation of this Act and | ||||||
11 | guilty of a Class A misdemeanor and may be enforced by the | ||||||
12 | Illinois Department of Labor or the Department. The Attorney | ||||||
13 | General shall represented the Illinois Department of Labor or | ||||||
14 | the Department in the proceeding. | ||||||
15 | (c) The taxpayer in charge of the project shall keep the | ||||||
16 | records submitted in accordance with this Section for a period | ||||||
17 | of 5 years from the date of the last payment for work on a | ||||||
18 | contract or subcontract for the project. | ||||||
19 | (d) The records submitted in accordance with this Section | ||||||
20 | shall be considered public records, except an employee's | ||||||
21 | address, telephone number, and social security number, which | ||||||
22 | shall be redacted. The records shall be made publicly | ||||||
23 | available in accordance with the Freedom of Information Act. | ||||||
24 | The contractor or subcontractor shall submit reports to the | ||||||
25 | Department of Labor electronically that meet the requirements | ||||||
26 | of this subsection and shall share the information with the |
| |||||||
| |||||||
1 | Department to comply with the awarding of the REV Construction | ||||||
2 | Jobs Credit. A contractor, subcontractor, or public body may | ||||||
3 | retain records required under this Section in paper or | ||||||
4 | electronic format. | ||||||
5 | (e) Upon 7 business days' notice, the contractor and each | ||||||
6 | subcontractor shall make available for inspection and copying | ||||||
7 | at a location within this State during reasonable hours, the | ||||||
8 | records identified in paragraph (1) of this subsection to the | ||||||
9 | Taxpayer in charge of the Project, its officers and agents, | ||||||
10 | the Director of the Department of Labor and his/her deputies | ||||||
11 | and agents, and to federal, State, or local law enforcement | ||||||
12 | agencies and prosecutors. | ||||||
13 | Section 70. Noncompliance; notice; assessment. If the | ||||||
14 | Director determines that a taxpayer who has received a credit | ||||||
15 | under this Act is not complying with the requirements of the | ||||||
16 | agreement or all of the provisions of this Act, the Director | ||||||
17 | shall provide notice to the taxpayer of the alleged | ||||||
18 | noncompliance and allow the taxpayer a hearing under the | ||||||
19 | provisions of the Illinois Administrative Procedure Act. If, | ||||||
20 | after such notice and any hearing, the Director determines | ||||||
21 | that a noncompliance exists, the Director shall issue to the | ||||||
22 | Department of Revenue notice to that effect, stating the | ||||||
23 | noncompliance date. If, during the term of an agreement, the | ||||||
24 | taxpayer ceases operations at a project location that is the | ||||||
25 | subject of that agreement with the intent to terminate |
| |||||||
| |||||||
1 | operations in the State, the Department and the Department of | ||||||
2 | Revenue shall recapture from the taxpayer the entire credit | ||||||
3 | amount awarded under that agreement prior to the date the | ||||||
4 | taxpayer ceases operations. The Department shall, subject to | ||||||
5 | appropriation, reallocate the recaptured amounts within 6 | ||||||
6 | months to the local workforce investment area in which the | ||||||
7 | project was located for purposes of workforce development, | ||||||
8 | expanded opportunities for unemployed persons, and expanded | ||||||
9 | opportunities for women and minority persons in the workforce. | ||||||
10 | The taxpayer will be ineligible for future funding under other | ||||||
11 | State tax credit or exemption programs for a 36-month period. | ||||||
12 | Noncompliance of the agreement with result in a default of | ||||||
13 | other agreements for State tax credits and exemption programs | ||||||
14 | for the project. | ||||||
15 | Section 75. Annual report. | ||||||
16 | (a) On or before July 1 each year, the Department shall | ||||||
17 | submit a report on the tax credit program under this Act to the | ||||||
18 | Governor and the General Assembly. The report shall include | ||||||
19 | information on the number of agreements that were entered into | ||||||
20 | under this Act during the preceding calendar year, a | ||||||
21 | description of the project that is the subject of each | ||||||
22 | agreement, an update on the status of projects under | ||||||
23 | agreements entered into before the preceding calendar year, | ||||||
24 | and the sum of the credits awarded under this Act. A copy of | ||||||
25 | the report shall be delivered to the Governor and to each |
| |||||||
| |||||||
1 | member of the General Assembly. | ||||||
2 | (b) The report must include, for each agreement: | ||||||
3 | (1) the original estimates of the value of the credit | ||||||
4 | and the number of new employee jobs to be created and, if | ||||||
5 | applicable, the number of retained employee jobs; | ||||||
6 | (2) any relevant modifications to existing agreements; | ||||||
7 | (3) a statement of the progress made by each taxpayer | ||||||
8 | in meeting the terms of the original agreement; | ||||||
9 | (4) a statement of wages paid to new employees and, if | ||||||
10 | applicable, retained employees in the State; and | ||||||
11 | (5) a copy of the original agreement or link to the | ||||||
12 | agreement on the Department's website. | ||||||
13 | Section 80. Evaluation of tax credit program. The | ||||||
14 | Department shall evaluate the tax credit program every three | ||||||
15 | years and issue a report. The evaluation shall include an | ||||||
16 | assessment of the effectiveness of the program in creating new | ||||||
17 | jobs in Illinois and of the revenue impact of the program and | ||||||
18 | may include a review of the practices and experiences of other | ||||||
19 | states with similar programs. The Director shall submit a | ||||||
20 | report on the evaluation to the Governor and the General | ||||||
21 | Assembly three years after the Effective Date of the Act and | ||||||
22 | every three years thereafter. | ||||||
23 | Section 85. Sunset of new agreements. The Department shall | ||||||
24 | not enter into any new Agreements under the provisions of this |
| |||||||
| |||||||
1 | Act after December 31, 2027. | ||||||
2 | Section 90. Prioritization of project review with the | ||||||
3 | Department of Transportation. A project that would directly | ||||||
4 | assist in the feasibility of locating an electric vehicle | ||||||
5 | manufacturing facility, component parts manufacturing | ||||||
6 | facility, or electric vehicle power supply manufacturing | ||||||
7 | facility may be prioritized by the Secretary of Transportation | ||||||
8 | if: (i) such project is included in the Highway Improvement | ||||||
9 | Program; and (ii) the company will operate the facility that | ||||||
10 | was approved to receive a REV Construction Jobs credit or a REV | ||||||
11 | Illinois credit. Under no circumstances should a project be | ||||||
12 | prioritized if it would compromise the delivery of a project | ||||||
13 | to remediate an immediate threat to safety. | ||||||
14 | Section 95. Utility tax exemptions for REV Illinois | ||||||
15 | Project sites. The Department may certify a taxpayer with a | ||||||
16 | REV Illinois credit for a Project that meets the | ||||||
17 | qualifications under Section paragraphs (1), (2), and (4) of | ||||||
18 | subsection (c) of Section 20, subject to an agreement under | ||||||
19 | this Act for an exemption from the tax imposed at the project | ||||||
20 | site by Section 2-4 of the Electricity Excise Tax Law. To | ||||||
21 | receive such certification, the taxpayer must be registered to | ||||||
22 | self-assess that tax. The taxpayer is also exempt from any | ||||||
23 | additional charges added to the taxpayer's utility bills at | ||||||
24 | the project site as a pass-on of State utility taxes under |
| |||||||
| |||||||
1 | Section 9-222 of the Public Utilities Act. The taxpayer must | ||||||
2 | meet any other the criteria for certification set by the | ||||||
3 | Department. | ||||||
4 | The Department shall determine the period during which the | ||||||
5 | exemption from the Electricity Excise Tax Law and the charges | ||||||
6 | imposed under Section 9-222 of the Public Utilities Act are in | ||||||
7 | effect, which shall not exceed 10 years from the date of the | ||||||
8 | taxpayer's initial receipt of certification from the | ||||||
9 | Department under this Section. | ||||||
10 | The Department is authorized to adopt rules to carry out | ||||||
11 | the provisions of this Section, including procedures to apply | ||||||
12 | for the exemptions; to define the amounts and types of | ||||||
13 | eligible investments that an applicant must make in order to | ||||||
14 | receive electricity excise tax exemptions or exemptions from | ||||||
15 | the additional charges imposed under Section 9-222 and the | ||||||
16 | Public Utilities Act; to approve such electricity excise tax | ||||||
17 | exemptions for applicants whose investments are not yet placed | ||||||
18 | in service; and to require that an applicant granted an | ||||||
19 | electricity excise tax exemption or an exemption from | ||||||
20 | additional charges under Section 9-222 of the Public Utilities | ||||||
21 | Act repay the exempted amount if the Applicant fails to comply | ||||||
22 | with the terms and conditions of the agreement. | ||||||
23 | Upon certification by the Department under this Section, | ||||||
24 | the Department shall notify the Department of Revenue of the | ||||||
25 | certification. The Department of Revenue shall notify the | ||||||
26 | public utilities of the exempt status of any taxpayer |
| |||||||
| |||||||
1 | certified for exemption under this Act from the electricity | ||||||
2 | excise tax or pass-on charges. The exemption status shall take | ||||||
3 | effect within 3 months after certification of the taxpayer and | ||||||
4 | notice to the Department of Revenue by the Department. | ||||||
5 | Section 100. Investment tax credits for REV Illinois | ||||||
6 | Projects. Subject to the conditions set forth in this Act, a | ||||||
7 | Taxpayer is entitled to an investment tax credit toward taxes | ||||||
8 | imposed pursuant to subsections (a) and (b) of Section 201 of | ||||||
9 | the Illinois Income Tax Act for a taxable year in which the | ||||||
10 | Taxpayer, in accordance with an Agreement under this Act for | ||||||
11 | that taxable year, invests in qualified property which is | ||||||
12 | placed in service at the site of a REV Illinois Project. The | ||||||
13 | Department has authority to certify the amount of such | ||||||
14 | investment tax credits to the Department of Revenue. The | ||||||
15 | credit shall be 0.5% of the basis for such property and shall | ||||||
16 | be determined in accordance with Section 237 of the Illinois | ||||||
17 | Income Tax Act. The credit shall be available only in the | ||||||
18 | taxable year in which the property is placed in service and | ||||||
19 | shall not be allowed to the extent that it would reduce a | ||||||
20 | taxpayer's liability for the tax imposed by subsections (a) | ||||||
21 | and (b) of Section 201 of the Illinois Income Tax Act to below | ||||||
22 | zero. Unused credit may be carried forward in accordance with | ||||||
23 | Section 237 of the Illinois Income Tax Act for use in future | ||||||
24 | taxable years. Any taxpayer qualifying for the REV Illinois | ||||||
25 | Investment Tax Credit shall not be eligible for either the |
| |||||||
| |||||||
1 | investment tax credits in Section 201(e), (f), or (h) of the | ||||||
2 | Illinois Income Tax Act. | ||||||
3 | Section 105. Building materials exemptions for REV | ||||||
4 | Illinois Project sites. | ||||||
5 | (a) The Department may certify a Taxpayer with a REV | ||||||
6 | Illinois Project that meets the qualifications under | ||||||
7 | paragraphs (1), (2), or (4) of subsection (c) of Section 20, | ||||||
8 | subject to an agreement under this Act, for an exemption from | ||||||
9 | any State or local use tax or retailers' occupation tax on | ||||||
10 | building materials for the construction of its project | ||||||
11 | facilities. The taxpayer must meet any criteria for | ||||||
12 | certification set by the Department under this Act. | ||||||
13 | The Department shall determine the period during which the | ||||||
14 | exemption from State and local use tax and retailers' | ||||||
15 | occupation tax are in effect, but in no event shall exceed 5 | ||||||
16 | years in accordance with Section 5m of the Retailers' | ||||||
17 | Occupation Tax Act. | ||||||
18 | The Department is authorized to promulgate rules and | ||||||
19 | regulations to carry out the provisions of this Section, | ||||||
20 | including procedures to apply for the exemption; to define the | ||||||
21 | amounts and types of eligible investments that an applicant | ||||||
22 | must make in order to receive tax exemption; to approve such | ||||||
23 | tax exemption for an applicant whose investments are not yet | ||||||
24 | placed in service; and to require that an applicant granted | ||||||
25 | exemption repay the exempted amount if the applicant fails to |
| |||||||
| |||||||
1 | comply with the terms and conditions of the agreement with the | ||||||
2 | Department. | ||||||
3 | Upon certification by the Department under this Section, | ||||||
4 | the Department shall notify the Department of Revenue of the | ||||||
5 | certification. The exemption status shall take effect within 3 | ||||||
6 | months after certification of the taxpayer and notice to the | ||||||
7 | Department of Revenue by the Department. | ||||||
8 | Section 900. The Illinois Procurement Code is amended by | ||||||
9 | adding Section 45-100 as follows: | ||||||
10 | (30 ILCS 500/45-100 new) | ||||||
11 | Sec. 45-100. Electric vehicles. For purposes of this | ||||||
12 | Section, "electric vehicle" means a vehicle that is | ||||||
13 | exclusively powered by and refueled by electricity, must be | ||||||
14 | plugged in to charge or utilize a pre-charged battery, and is | ||||||
15 | permitted to operate on public roadways. "Electric vehicle" | ||||||
16 | does not include hybrid electric vehicles and extended-range | ||||||
17 | electric vehicles that are also equipped with conventional | ||||||
18 | fueled propulsion or auxiliary engines. For purposes of this | ||||||
19 | section, "Manufactured in Illinois" means, in the case of | ||||||
20 | electric vehicles, that design, final assembly, processing, | ||||||
21 | packaging, testing, or other process that adds value, quality, | ||||||
22 | or reliability occurs in Illinois. | ||||||
23 | In awarding contracts requiring the procurement of | ||||||
24 | electric vehicles, preference shall be given to an otherwise |
| |||||||
| |||||||
1 | qualified bidder or offeror who will fulfill the contract | ||||||
2 | through the use of electric vehicles manufactured in Illinois. | ||||||
3 | Specifications for contracts for electric vehicles shall | ||||||
4 | include a price preference of 20% for electric vehicles | ||||||
5 | manufactured in Illinois. The purchasing agency may require | ||||||
6 | additional information from bidders or offerors to verify | ||||||
7 | whether an electric vehicle is manufactured in Illinois as | ||||||
8 | defined by this Section. | ||||||
9 | Section 905. The Illinois Income Tax Act is amended by | ||||||
10 | changing Sections 207 and 704A and by adding Sections 236 and | ||||||
11 | 237 as follows:
| ||||||
12 | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
| ||||||
13 | Sec. 207. Net Losses.
| ||||||
14 | (a) If after applying all of the (i) modifications
| ||||||
15 | provided for in paragraph (2) of Section 203(b), paragraph (2) | ||||||
16 | of Section
203(c) and paragraph (2) of Section 203(d) and (ii) | ||||||
17 | the allocation and
apportionment provisions of Article 3 of | ||||||
18 | this
Act and subsection (c) of this Section, the taxpayer's | ||||||
19 | net income results in a loss;
| ||||||
20 | (1) for any taxable year ending prior to December 31, | ||||||
21 | 1999, such loss
shall be allowed
as a carryover or | ||||||
22 | carryback deduction in the manner allowed under Section
| ||||||
23 | 172 of the Internal Revenue Code;
| ||||||
24 | (2) for any taxable year ending on or after December |
| |||||||
| |||||||
1 | 31, 1999 and prior
to December 31, 2003, such loss
shall be | ||||||
2 | allowed as a carryback to each of the 2 taxable years | ||||||
3 | preceding the
taxable year of such loss and shall be a net | ||||||
4 | operating loss carryover to each of the
20 taxable years | ||||||
5 | following the taxable year of such loss; and
| ||||||
6 | (3) for any taxable year ending on or after December | ||||||
7 | 31, 2003 and prior to December 31, 2021 , such loss
shall be | ||||||
8 | allowed as a net operating loss carryover to each of the 12 | ||||||
9 | taxable years
following the taxable year of such loss, | ||||||
10 | except as provided in subsection (d) ; and .
| ||||||
11 | (4) for any taxable year ending on or after December
| ||||||
12 | 31, 2021, and for any net loss incurred in a taxable year | ||||||
13 | prior to a taxable year ending on or after December
31, | ||||||
14 | 2021 for which the statute of limitation for utilization | ||||||
15 | of such net loss has not expired, such loss shall be | ||||||
16 | allowed as a net operating loss carryover to each of the 20 | ||||||
17 | taxable years following the taxable year of such loss, | ||||||
18 | except as provided in subsection (d). | ||||||
19 | (a-5) Election to relinquish carryback and order of | ||||||
20 | application of
losses.
| ||||||
21 | (A) For losses incurred in tax years ending prior | ||||||
22 | to December 31,
2003, the taxpayer may elect to | ||||||
23 | relinquish the entire carryback period
with respect to | ||||||
24 | such loss. Such election shall be made in the form and | ||||||
25 | manner
prescribed by the Department and shall be made | ||||||
26 | by the due date (including
extensions of time) for |
| |||||||
| |||||||
1 | filing the taxpayer's return for the taxable year in
| ||||||
2 | which such loss is incurred, and such election, once | ||||||
3 | made, shall be
irrevocable.
| ||||||
4 | (B) The entire amount of such loss shall be | ||||||
5 | carried to the earliest
taxable year to which such | ||||||
6 | loss may be carried. The amount of such loss which
| ||||||
7 | shall be carried to each of the other taxable years | ||||||
8 | shall be the excess, if
any, of the amount of such loss | ||||||
9 | over the sum of the deductions for carryback or
| ||||||
10 | carryover of such loss allowable for each of the prior | ||||||
11 | taxable years to which
such loss may be carried.
| ||||||
12 | (b) Any loss determined under subsection (a) of this | ||||||
13 | Section must be carried
back or carried forward in the same | ||||||
14 | manner for purposes of subsections (a)
and (b) of Section 201 | ||||||
15 | of this Act as for purposes of subsections (c) and
(d) of | ||||||
16 | Section 201 of this Act.
| ||||||
17 | (c) Notwithstanding any other provision of this Act, for | ||||||
18 | each taxable year ending on or after December 31, 2008, for | ||||||
19 | purposes of computing the loss for the taxable year under | ||||||
20 | subsection (a) of this Section and the deduction taken into | ||||||
21 | account for the taxable year for a net operating loss | ||||||
22 | carryover under paragraphs (1), (2), and (3) of subsection (a) | ||||||
23 | of this Section, the loss and net operating loss carryover | ||||||
24 | shall be reduced in an amount equal to the reduction to the net | ||||||
25 | operating loss and net operating loss carryover to the taxable | ||||||
26 | year, respectively, required under Section 108(b)(2)(A) of the |
| |||||||
| |||||||
1 | Internal Revenue Code, multiplied by a fraction, the numerator | ||||||
2 | of which is the amount of discharge of indebtedness income | ||||||
3 | that is excluded from gross income for the taxable year (but | ||||||
4 | only if the taxable year ends on or after December 31, 2008) | ||||||
5 | under Section 108(a) of the Internal Revenue Code and that | ||||||
6 | would have been allocated and apportioned to this State under | ||||||
7 | Article 3 of this Act but for that exclusion, and the | ||||||
8 | denominator of which is the total amount of discharge of | ||||||
9 | indebtedness income excluded from gross income under Section | ||||||
10 | 108(a) of the Internal Revenue Code for the taxable year. The | ||||||
11 | reduction required under this subsection (c) shall be made | ||||||
12 | after the determination of Illinois net income for the taxable | ||||||
13 | year in which the indebtedness is discharged.
| ||||||
14 | (d) In the case of a corporation (other than a Subchapter S | ||||||
15 | corporation), no carryover deduction shall be allowed under | ||||||
16 | this Section for any taxable year ending after December 31, | ||||||
17 | 2010 and prior to December 31, 2012, and no carryover | ||||||
18 | deduction shall exceed $100,000 for any taxable year ending on | ||||||
19 | or after December 31, 2012 and prior to December 31, 2014 and | ||||||
20 | for any taxable year ending on or after December 31, 2021 and | ||||||
21 | prior to December 31, 2024; provided that, for purposes of | ||||||
22 | determining the taxable years to which a net loss may be | ||||||
23 | carried under subsection (a) of this Section, no taxable year | ||||||
24 | for which a deduction is disallowed under this subsection, or | ||||||
25 | for which the deduction would exceed $100,000 if not for this | ||||||
26 | subsection, shall be counted. |
| |||||||
| |||||||
1 | (e) In the case of a residual interest holder in a real | ||||||
2 | estate mortgage investment conduit subject to Section 860E of | ||||||
3 | the Internal Revenue Code, the net loss in subsection (a) | ||||||
4 | shall be equal to: | ||||||
5 | (1) the amount computed under subsection (a), without | ||||||
6 | regard to this subsection (e), or if that amount is | ||||||
7 | positive, zero; | ||||||
8 | (2) minus an amount equal to the amount computed under | ||||||
9 | subsection (a), without regard to this subsection (e), | ||||||
10 | minus the amount that would be computed under subsection | ||||||
11 | (a) if the taxpayer's federal taxable income were computed | ||||||
12 | without regard to Section 860E of the Internal Revenue | ||||||
13 | Code and without regard to this subsection (e). | ||||||
14 | The modification in this subsection (e) is exempt from the | ||||||
15 | provisions of Section 250. | ||||||
16 | (Source: P.A. 102-16, eff. 6-17-21.)
| ||||||
17 | (35 ILCS 5/236 new) | ||||||
18 | Sec. 236. Reimagining Electric Vehicles in Illinois Tax | ||||||
19 | credits. | ||||||
20 | (a) For tax years beginning on or after January 1, 2025, a | ||||||
21 | taxpayer who has entered into an agreement under the | ||||||
22 | Reimagining Electric Vehicles in Illinois Act is entitled to a | ||||||
23 | credit against the taxes imposed under subsections (a) and (b) | ||||||
24 | of Section 201 of this Act in an amount to be determined in the | ||||||
25 | Agreement. The taxpayer may elect to claim the credit, on or |
| |||||||
| |||||||
1 | after January 1, 2025, against its obligation to pay over | ||||||
2 | withholding under Section 704A of this Act as provided in | ||||||
3 | paragraph (6) of subsection (b). If the taxpayer is a | ||||||
4 | partnership or Subchapter S corporation, the credit shall be | ||||||
5 | allowed to the partners or shareholders in accordance with the | ||||||
6 | determination of income and distributive share of income under | ||||||
7 | Sections 702 and 704 and subchapter S of the Internal Revenue | ||||||
8 | Code. The Department, in cooperation with the Department of | ||||||
9 | Commerce and Economic Opportunity, shall adopt rules to | ||||||
10 | enforce and administer the provisions of this Section. This | ||||||
11 | Section is exempt from the provisions of Section 250 of this | ||||||
12 | Act. | ||||||
13 | (b) The credit is subject to the conditions set forth in | ||||||
14 | the agreement and the following limitations: | ||||||
15 | (1) The tax credit may be in the form of either or both | ||||||
16 | the REV Illinois Credit or the REV Construction Jobs | ||||||
17 | Credit (as defined in the Reimagining Electric Vehicles in | ||||||
18 | Illinois Act) and shall not exceed the percentage of | ||||||
19 | incremental income tax and percentage of training costs | ||||||
20 | permitted in that Act and in the agreement with respect to | ||||||
21 | the project. | ||||||
22 | (2) The amount of the credit allowed during a tax year | ||||||
23 | plus the sum of all amounts allowed in prior tax years | ||||||
24 | shall not exceed the maximum amount of credit established | ||||||
25 | in the agreement. | ||||||
26 | (3) The amount of the credit shall be determined on an |
| |||||||
| |||||||
1 | annual basis. Except as applied in a carryover year | ||||||
2 | pursuant to paragraph (4), the credit may not be applied | ||||||
3 | against any State income tax liability in more than 15 | ||||||
4 | taxable years. | ||||||
5 | (4) The credit may not exceed the amount of taxes | ||||||
6 | imposed pursuant to subsections (a) and (b) of Section 201 | ||||||
7 | of this Act. Any credit that is unused in the year the | ||||||
8 | credit is computed may be carried forward and applied to | ||||||
9 | the tax liability of the 5 taxable years following the | ||||||
10 | excess credit year. The credit shall be applied to the | ||||||
11 | earliest year for which there is a tax liability. If there | ||||||
12 | are credits from more than one tax year that are available | ||||||
13 | to offset a liability, the earlier credit shall be applied | ||||||
14 | first. | ||||||
15 | (5) No credit shall be allowed with respect to any | ||||||
16 | agreement for any taxable year ending after the | ||||||
17 | noncompliance date. Upon receiving notification by the | ||||||
18 | Department of Commerce and Economic Opportunity of the | ||||||
19 | noncompliance of a taxpayer with an agreement, the | ||||||
20 | Department shall notify the taxpayer that no credit is | ||||||
21 | allowed with respect to that agreement for any taxable | ||||||
22 | year ending after the noncompliance date, as stated in | ||||||
23 | such notification. If any credit has been allowed with | ||||||
24 | respect to an agreement for a taxable year ending after | ||||||
25 | the noncompliance date for that agreement, any refund paid | ||||||
26 | to the taxpayer for that taxable year shall, to the extent |
| |||||||
| |||||||
1 | of that credit allowed, be an erroneous refund within the | ||||||
2 | meaning of Section 912 of this Act. | ||||||
3 | If, during any taxable year, a taxpayer ceases | ||||||
4 | operations at a project location that is the subject of | ||||||
5 | that agreement with the intent to terminate operations in | ||||||
6 | the State, the tax imposed under subsections (a) and (b) | ||||||
7 | of Section 201 of this Act for such taxable year shall be | ||||||
8 | increased by the amount of any credit allowed under the | ||||||
9 | Agreement for that Project location prior to the date the | ||||||
10 | Taxpayer ceases operations. | ||||||
11 | (6) Instead of claiming the credit against the taxes | ||||||
12 | imposed under subsections (a) and (b) of Section 201 of | ||||||
13 | this Act, with respect to the portion of a REV Illinois | ||||||
14 | Credit that is calculated based on the Incremental Income | ||||||
15 | Tax attributable to new employees and retained employees, | ||||||
16 | the taxpayer may elect, in accordance with the Reimagining | ||||||
17 | Electric Vehicles in Illinois Act, to claim the credit, on | ||||||
18 | or after January 1, 2025, against its obligation to pay | ||||||
19 | over withholding under Section 704A of the Illinois Income | ||||||
20 | Tax Act. Any credit for which a Taxpayer makes such an | ||||||
21 | election shall not be claimed against the taxes imposed | ||||||
22 | under subsections (a) and (b) of Section 201 of this Act. | ||||||
23 | (35 ILCS 5/237 new) | ||||||
24 | Sec. 237. REV Illinois Investment Tax credits. | ||||||
25 | (a) For tax years beginning on or after the effective date |
| |||||||
| |||||||
1 | of this amendatory Act of the 102nd General Assembly, a | ||||||
2 | taxpayer shall be allowed a credit against the tax imposed by | ||||||
3 | subsections (a) and (b) of Section 201 for investment in | ||||||
4 | qualified property which is placed in service at the site of a | ||||||
5 | REV Illinois Project subject to an agreement between the | ||||||
6 | taxpayer and the Department of Commerce and Economic | ||||||
7 | Opportunity pursuant to the Reimagining Electric Vehicles in | ||||||
8 | Illinois Act. For partners, shareholders of Subchapter S | ||||||
9 | corporations, and owners of limited liability companies, if | ||||||
10 | the liability company is treated as a partnership for purposes | ||||||
11 | of federal and State income taxation, there shall be allowed a | ||||||
12 | credit under this Section to be determined in accordance with | ||||||
13 | the determination of income and distributive share of income | ||||||
14 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
15 | Revenue Code. The credit shall be 0.5% of the basis for such | ||||||
16 | property. The credit shall be available only in the taxable | ||||||
17 | year in which the property is placed in service and shall not | ||||||
18 | be allowed to the extent that it would reduce a taxpayer's | ||||||
19 | liability for the tax imposed by subsections (a) and (b) of | ||||||
20 | Section 201 to below zero. The credit shall be allowed for the | ||||||
21 | tax year in which the property is placed in service, or, if the | ||||||
22 | amount of the credit exceeds the tax liability for that year, | ||||||
23 | whether it exceeds the original liability or the liability as | ||||||
24 | later amended, such excess may be carried forward and applied | ||||||
25 | to the tax liability of the 5 taxable years following the | ||||||
26 | excess credit year. The credit shall be applied to the |
| |||||||
| |||||||
1 | earliest year for which there is a liability. If there is | ||||||
2 | credit from more than one tax year that is available to offset | ||||||
3 | a liability, the credit accruing first in time shall be | ||||||
4 | applied first. | ||||||
5 | (b) The term qualified property means property which: | ||||||
6 | (1) is tangible, whether new or used, including | ||||||
7 | buildings and structural components of buildings; | ||||||
8 | (2) is depreciable pursuant to Section 167 of the | ||||||
9 | Internal Revenue Code, except that "3-year property" as | ||||||
10 | defined in Section 168(c)(2)(A) of that Code is not | ||||||
11 | eligible for the credit provided by this Section; | ||||||
12 | (3) is acquired by purchase as defined in Section | ||||||
13 | 179(d) of the Internal Revenue Code; | ||||||
14 | (4) is used at the site of the REV Illinois Project by | ||||||
15 | the taxpayer; and | ||||||
16 | (5) has not been previously used in Illinois in such a | ||||||
17 | manner and by such a person as would qualify for the credit | ||||||
18 | provided by this Section. | ||||||
19 | (c) The basis of qualified property shall be the basis | ||||||
20 | used to compute the depreciation deduction for federal income | ||||||
21 | tax purposes. | ||||||
22 | (d) If the basis of the property for federal income tax | ||||||
23 | depreciation purposes is increased after it has been placed in | ||||||
24 | service at the site of the REV Illinois Project by the | ||||||
25 | taxpayer, the amount of such increase shall be deemed property | ||||||
26 | placed in service on the date of such increase in basis. |
| |||||||
| |||||||
1 | (e) The term "placed in service" shall have the same | ||||||
2 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
3 | (f) If during any taxable year, any property ceases to be | ||||||
4 | qualified property in the hands of the taxpayer within 48 | ||||||
5 | months after being placed in service, or the situs of any | ||||||
6 | qualified property is moved from the REV Illinois Project site | ||||||
7 | within 48 months after being placed in service, the tax | ||||||
8 | imposed under subsections (a) and (b) of Section 201 for such | ||||||
9 | taxable year shall be increased. Such increase shall be | ||||||
10 | determined by (i) recomputing the investment credit which | ||||||
11 | would have been allowed for the year in which credit for such | ||||||
12 | property was originally allowed by eliminating such property | ||||||
13 | from such computation, and (ii) subtracting such recomputed | ||||||
14 | credit from the amount of credit previously allowed. For the | ||||||
15 | purposes of this subsection (f), a reduction of the basis of | ||||||
16 | qualified property resulting from a redetermination of the | ||||||
17 | purchase price shall be deemed a disposition of qualified | ||||||
18 | property to the extent of such reduction. | ||||||
19 | (35 ILCS 5/704A) | ||||||
20 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
21 | (a) In general, every employer who deducts and withholds | ||||||
22 | or is required to deduct and withhold tax under this Act on or | ||||||
23 | after January 1, 2008 shall make those payments and returns as | ||||||
24 | provided in this Section. | ||||||
25 | (b) Returns. Every employer shall, in the form and manner |
| |||||||
| |||||||
1 | required by the Department, make returns with respect to taxes | ||||||
2 | withheld or required to be withheld under this Article 7 for | ||||||
3 | each quarter beginning on or after January 1, 2008, on or | ||||||
4 | before the last day of the first month following the close of | ||||||
5 | that quarter. | ||||||
6 | (c) Payments. With respect to amounts withheld or required | ||||||
7 | to be withheld on or after January 1, 2008: | ||||||
8 | (1) Semi-weekly payments. For each calendar year, each | ||||||
9 | employer who withheld or was required to withhold more | ||||||
10 | than $12,000 during the one-year period ending on June 30 | ||||||
11 | of the immediately preceding calendar year, payment must | ||||||
12 | be made: | ||||||
13 | (A) on or before each Friday of the calendar year, | ||||||
14 | for taxes withheld or required to be withheld on the | ||||||
15 | immediately preceding Saturday, Sunday, Monday, or | ||||||
16 | Tuesday; | ||||||
17 | (B) on or before each Wednesday of the calendar | ||||||
18 | year, for taxes withheld or required to be withheld on | ||||||
19 | the immediately preceding Wednesday, Thursday, or | ||||||
20 | Friday. | ||||||
21 | Beginning with calendar year 2011, payments made under | ||||||
22 | this paragraph (1) of subsection (c) must be made by | ||||||
23 | electronic funds transfer. | ||||||
24 | (2) Semi-weekly payments. Any employer who withholds | ||||||
25 | or is required to withhold more than $12,000 in any | ||||||
26 | quarter of a calendar year is required to make payments on |
| |||||||
| |||||||
1 | the dates set forth under item (1) of this subsection (c) | ||||||
2 | for each remaining quarter of that calendar year and for | ||||||
3 | the subsequent calendar year.
| ||||||
4 | (3) Monthly payments. Each employer, other than an | ||||||
5 | employer described in items (1) or (2) of this subsection, | ||||||
6 | shall pay to the Department, on or before the 15th day of | ||||||
7 | each month the taxes withheld or required to be withheld | ||||||
8 | during the immediately preceding month. | ||||||
9 | (4) Payments with returns. Each employer shall pay to | ||||||
10 | the Department, on or before the due date for each return | ||||||
11 | required to be filed under this Section, any tax withheld | ||||||
12 | or required to be withheld during the period for which the | ||||||
13 | return is due and not previously paid to the Department. | ||||||
14 | (d) Regulatory authority. The Department may, by rule: | ||||||
15 | (1) Permit employers, in lieu of the requirements of | ||||||
16 | subsections (b) and (c), to file annual returns due on or | ||||||
17 | before January 31 of the year for taxes withheld or | ||||||
18 | required to be withheld during the previous calendar year | ||||||
19 | and, if the aggregate amounts required to be withheld by | ||||||
20 | the employer under this Article 7 (other than amounts | ||||||
21 | required to be withheld under Section 709.5) do not exceed | ||||||
22 | $1,000 for the previous calendar year, to pay the taxes | ||||||
23 | required to be shown on each such return no later than the | ||||||
24 | due date for such return. | ||||||
25 | (2) Provide that any payment required to be made under | ||||||
26 | subsection (c)(1) or (c)(2) is deemed to be timely to the |
| |||||||
| |||||||
1 | extent paid by electronic funds transfer on or before the | ||||||
2 | due date for deposit of federal income taxes withheld | ||||||
3 | from, or federal employment taxes due with respect to, the | ||||||
4 | wages from which the Illinois taxes were withheld. | ||||||
5 | (3) Designate one or more depositories to which | ||||||
6 | payment of taxes required to be withheld under this | ||||||
7 | Article 7 must be paid by some or all employers. | ||||||
8 | (4) Increase the threshold dollar amounts at which | ||||||
9 | employers are required to make semi-weekly payments under | ||||||
10 | subsection (c)(1) or (c)(2). | ||||||
11 | (e) Annual return and payment. Every employer who deducts | ||||||
12 | and withholds or is required to deduct and withhold tax from a | ||||||
13 | person engaged in domestic service employment, as that term is | ||||||
14 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
15 | comply with the requirements of this Section with respect to | ||||||
16 | such employees by filing an annual return and paying the taxes | ||||||
17 | required to be deducted and withheld on or before the 15th day | ||||||
18 | of the fourth month following the close of the employer's | ||||||
19 | taxable year. The Department may allow the employer's return | ||||||
20 | to be submitted with the employer's individual income tax | ||||||
21 | return or to be submitted with a return due from the employer | ||||||
22 | under Section 1400.2 of the Unemployment Insurance Act. | ||||||
23 | (f) Magnetic media and electronic filing. With respect to | ||||||
24 | taxes withheld in calendar years prior to 2017, any W-2 Form | ||||||
25 | that, under the Internal Revenue Code and regulations | ||||||
26 | promulgated thereunder, is required to be submitted to the |
| |||||||
| |||||||
1 | Internal Revenue Service on magnetic media or electronically | ||||||
2 | must also be submitted to the Department on magnetic media or | ||||||
3 | electronically for Illinois purposes, if required by the | ||||||
4 | Department. | ||||||
5 | With respect to taxes withheld in 2017 and subsequent | ||||||
6 | calendar years, the Department may, by rule, require that any | ||||||
7 | return (including any amended return) under this Section and | ||||||
8 | any W-2 Form that is required to be submitted to the Department | ||||||
9 | must be submitted on magnetic media or electronically. | ||||||
10 | The due date for submitting W-2 Forms shall be as | ||||||
11 | prescribed by the Department by rule. | ||||||
12 | (g) For amounts deducted or withheld after December 31, | ||||||
13 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
14 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
15 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
16 | against payments due under this Section for amounts withheld | ||||||
17 | during the first calendar year beginning after the end of that | ||||||
18 | taxable year equal to the amount of the credit for the | ||||||
19 | incremental income tax attributable to full-time employees of | ||||||
20 | the taxpayer awarded to the taxpayer by the Department of | ||||||
21 | Commerce and Economic Opportunity under the Economic | ||||||
22 | Development for a Growing Economy Tax Credit Act for the | ||||||
23 | taxable year and credits not previously claimed and allowed to | ||||||
24 | be carried forward under Section 211(4) of this Act as | ||||||
25 | provided in subsection (f) of Section 5-15 of the Economic | ||||||
26 | Development for a Growing Economy Tax Credit Act. The credit |
| |||||||
| |||||||
1 | or credits may not reduce the taxpayer's obligation for any | ||||||
2 | payment due under this Section to less than zero. If the amount | ||||||
3 | of the credit or credits exceeds the total payments due under | ||||||
4 | this Section with respect to amounts withheld during the | ||||||
5 | calendar year, the excess may be carried forward and applied | ||||||
6 | against the taxpayer's liability under this Section in the | ||||||
7 | succeeding calendar years as allowed to be carried forward | ||||||
8 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
9 | credits shall be applied to the earliest year for which there | ||||||
10 | is a tax liability. If there are credits from more than one | ||||||
11 | taxable year that are available to offset a liability, the | ||||||
12 | earlier credit shall be applied first. Each employer who | ||||||
13 | deducts and withholds or is required to deduct and withhold | ||||||
14 | tax under this Act and who retains income tax withholdings | ||||||
15 | under subsection (f) of Section 5-15 of the Economic | ||||||
16 | Development for a Growing Economy Tax Credit Act must make a | ||||||
17 | return with respect to such taxes and retained amounts in the | ||||||
18 | form and manner that the Department, by rule, requires and pay | ||||||
19 | to the Department or to a depositary designated by the | ||||||
20 | Department those withheld taxes not retained by the taxpayer. | ||||||
21 | For purposes of this subsection (g), the term taxpayer shall | ||||||
22 | include taxpayer and members of the taxpayer's unitary | ||||||
23 | business group as defined under paragraph (27) of subsection | ||||||
24 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
25 | the provisions of Section 250 of this Act. No credit awarded | ||||||
26 | under the Economic Development for a Growing Economy Tax |
| |||||||
| |||||||
1 | Credit Act for agreements entered into on or after January 1, | ||||||
2 | 2015 may be credited against payments due under this Section. | ||||||
3 | (g-1) For amounts deducted or withheld after December 31, | ||||||
4 | 2024, a taxpayer who makes an election under the Reimagining | ||||||
5 | Electric Vehicles in Illinois Act shall be allowed a credit | ||||||
6 | against payments due under this Section for amounts withheld | ||||||
7 | during the first quarterly reporting period beginning after | ||||||
8 | the certificate is issued equal to the portion of the REV | ||||||
9 | Illinois Credit attributable to the incremental income tax | ||||||
10 | attributable to new employees and retained employees as | ||||||
11 | certified by the Department of Commerce and Economic | ||||||
12 | Opportunity pursuant to an agreement with the taxpayer under | ||||||
13 | the Reimagining Electric Vehicles in Illinois Act for the | ||||||
14 | taxable year. The credit or credits may not reduce the | ||||||
15 | taxpayer's obligation for any payment due under this Section | ||||||
16 | to less than zero. If the amount of the credit or credits | ||||||
17 | exceeds the total payments due under this Section with respect | ||||||
18 | to amounts withheld during the quarterly reporting period, the | ||||||
19 | excess may be carried forward and applied against the | ||||||
20 | taxpayer's liability under this Section in the succeeding | ||||||
21 | quarterly reporting period as allowed to be carried forward | ||||||
22 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
23 | credits shall be applied to the earliest quarterly reporting | ||||||
24 | period for which there is a tax liability. If there are credits | ||||||
25 | from more than one quarterly reporting period that are | ||||||
26 | available to offset a liability, the earlier credit shall be |
| |||||||
| |||||||
1 | applied first. Each employer who deducts and withholds or is | ||||||
2 | required to deduct and withhold tax under this Act and who | ||||||
3 | retains income tax withholdings this subsection must make a | ||||||
4 | return with respect to such taxes and retained amounts in the | ||||||
5 | form and manner that the Department, by rule, requires and pay | ||||||
6 | to the Department or to a depositary designated by the | ||||||
7 | Department those withheld taxes not retained by the taxpayer. | ||||||
8 | For purposes of this subsection (g-1), the term taxpayer shall | ||||||
9 | include taxpayer and members of the taxpayer's unitary | ||||||
10 | business group as defined under paragraph (27) of subsection | ||||||
11 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
12 | the provisions of Section 250 of this Act. | ||||||
13 | (h) An employer may claim a credit against payments due | ||||||
14 | under this Section for amounts withheld during the first | ||||||
15 | calendar year ending after the date on which a tax credit | ||||||
16 | certificate was issued under Section 35 of the Small Business | ||||||
17 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
18 | amount shown on the certificate, but may not reduce the | ||||||
19 | taxpayer's obligation for any payment due under this Section | ||||||
20 | to less than zero. If the amount of the credit exceeds the | ||||||
21 | total payments due under this Section with respect to amounts | ||||||
22 | withheld during the calendar year, the excess may be carried | ||||||
23 | forward and applied against the taxpayer's liability under | ||||||
24 | this Section in the 5 succeeding calendar years. The credit | ||||||
25 | shall be applied to the earliest year for which there is a tax | ||||||
26 | liability. If there are credits from more than one calendar |
| |||||||
| |||||||
1 | year that are available to offset a liability, the earlier | ||||||
2 | credit shall be applied first. This Section is exempt from the | ||||||
3 | provisions of Section 250 of this Act. | ||||||
4 | (i) Each employer with 50 or fewer full-time equivalent | ||||||
5 | employees during the reporting period may claim a credit | ||||||
6 | against the payments due under this Section for each qualified | ||||||
7 | employee in an amount equal to the maximum credit allowable. | ||||||
8 | The credit may be taken against payments due for reporting | ||||||
9 | periods that begin on or after January 1, 2020, and end on or | ||||||
10 | before December 31, 2027. An employer may not claim a credit | ||||||
11 | for an employee who has worked fewer than 90 consecutive days | ||||||
12 | immediately preceding the reporting period; however, such | ||||||
13 | credits may accrue during that 90-day period and be claimed | ||||||
14 | against payments under this Section for future reporting | ||||||
15 | periods after the employee has worked for the employer at | ||||||
16 | least 90 consecutive days. In no event may the credit exceed | ||||||
17 | the employer's liability for the reporting period. Each | ||||||
18 | employer who deducts and withholds or is required to deduct | ||||||
19 | and withhold tax under this Act and who retains income tax | ||||||
20 | withholdings under this subsection must make a return with | ||||||
21 | respect to such taxes and retained amounts in the form and | ||||||
22 | manner that the Department, by rule, requires and pay to the | ||||||
23 | Department or to a depositary designated by the Department | ||||||
24 | those withheld taxes not retained by the employer. | ||||||
25 | For each reporting period, the employer may not claim a | ||||||
26 | credit or credits for more employees than the number of |
| |||||||
| |||||||
1 | employees making less than the minimum or reduced wage for the | ||||||
2 | current calendar year during the last reporting period of the | ||||||
3 | preceding calendar year. Notwithstanding any other provision | ||||||
4 | of this subsection, an employer shall not be eligible for | ||||||
5 | credits for a reporting period unless the average wage paid by | ||||||
6 | the employer per employee for all employees making less than | ||||||
7 | $55,000 during the reporting period is greater than the | ||||||
8 | average wage paid by the employer per employee for all | ||||||
9 | employees making less than $55,000 during the same reporting | ||||||
10 | period of the prior calendar year. | ||||||
11 | For purposes of this subsection (i): | ||||||
12 | "Compensation paid in Illinois" has the meaning ascribed | ||||||
13 | to that term under Section 304(a)(2)(B) of this Act. | ||||||
14 | "Employer" and "employee" have the meaning ascribed to | ||||||
15 | those terms in the Minimum Wage Law, except that "employee" | ||||||
16 | also includes employees who work for an employer with fewer | ||||||
17 | than 4 employees. Employers that operate more than one | ||||||
18 | establishment pursuant to a franchise agreement or that | ||||||
19 | constitute members of a unitary business group shall aggregate | ||||||
20 | their employees for purposes of determining eligibility for | ||||||
21 | the credit. | ||||||
22 | "Full-time equivalent employees" means the ratio of the | ||||||
23 | number of paid hours during the reporting period and the | ||||||
24 | number of working hours in that period. | ||||||
25 | "Maximum credit" means the percentage listed below of the | ||||||
26 | difference between the amount of compensation paid in Illinois |
| |||||||
| |||||||
1 | to employees who are paid not more than the required minimum | ||||||
2 | wage reduced by the amount of compensation paid in Illinois to | ||||||
3 | employees who were paid less than the current required minimum | ||||||
4 | wage during the reporting period prior to each increase in the | ||||||
5 | required minimum wage on January 1. If an employer pays an | ||||||
6 | employee more than the required minimum wage and that employee | ||||||
7 | previously earned less than the required minimum wage, the | ||||||
8 | employer may include the portion that does not exceed the | ||||||
9 | required minimum wage as compensation paid in Illinois to | ||||||
10 | employees who are paid not more than the required minimum | ||||||
11 | wage. | ||||||
12 | (1) 25% for reporting periods beginning on or after | ||||||
13 | January 1, 2020 and ending on or before December 31, 2020; | ||||||
14 | (2) 21% for reporting periods beginning on or after | ||||||
15 | January 1, 2021 and ending on or before December 31, 2021; | ||||||
16 | (3) 17% for reporting periods beginning on or after | ||||||
17 | January 1, 2022 and ending on or before December 31, 2022; | ||||||
18 | (4) 13% for reporting periods beginning on or after | ||||||
19 | January 1, 2023 and ending on or before December 31, 2023; | ||||||
20 | (5) 9% for reporting periods beginning on or after | ||||||
21 | January 1, 2024 and ending on or before December 31, 2024; | ||||||
22 | (6) 5% for reporting periods beginning on or after | ||||||
23 | January 1, 2025 and ending on or before December 31, 2025. | ||||||
24 | The amount computed under this subsection may continue to | ||||||
25 | be claimed for reporting periods beginning on or after January | ||||||
26 | 1, 2026 and: |
| |||||||
| |||||||
1 | (A) ending on or before December 31, 2026 for | ||||||
2 | employers with more than 5 employees; or | ||||||
3 | (B) ending on or before December 31, 2027 for | ||||||
4 | employers with no more than 5 employees. | ||||||
5 | "Qualified employee" means an employee who is paid not | ||||||
6 | more than the required minimum wage and has an average wage | ||||||
7 | paid per hour by the employer during the reporting period | ||||||
8 | equal to or greater than his or her average wage paid per hour | ||||||
9 | by the employer during each reporting period for the | ||||||
10 | immediately preceding 12 months. A new qualified employee is | ||||||
11 | deemed to have earned the required minimum wage in the | ||||||
12 | preceding reporting period. | ||||||
13 | "Reporting period" means the quarter for which a return is | ||||||
14 | required to be filed under subsection (b) of this Section. | ||||||
15 | (Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17; | ||||||
16 | 100-863, eff. 8-14-18; 101-1, eff. 2-19-19.) | ||||||
17 | Section 910. The Retailers' Occupation Tax Act is amended | ||||||
18 | by adding Section 5m as follows: | ||||||
19 | (35 ILCS 120/5m new) | ||||||
20 | Sec. 5m. Building materials exemption; electric vehicle | ||||||
21 | manufacturer, electric vehicle component parts manufacturer, | ||||||
22 | and electric vehicle power supply manufacturer. Each retailer | ||||||
23 | who makes a sale of building materials that will be | ||||||
24 | incorporated into real estate in an electric vehicle |
| |||||||
| |||||||
1 | manufacturing facility, an electric vehicle component parts | ||||||
2 | manufacturing facility, or an electric vehicle power supply | ||||||
3 | manufacturing facility REV Illinois Project which meets the | ||||||
4 | qualifications under paragraphs (1), (2), or (4) of subsection | ||||||
5 | (c) of Section 20 of the Reimagining Electric Vehicles in | ||||||
6 | Illinois Act for which a certificate of exemption has been | ||||||
7 | issued by the Department of Commerce and Economic Opportunity | ||||||
8 | under the Reimagining Electric Vehicles in Illinois Act, may | ||||||
9 | deduct receipts from such sales when calculating any State or | ||||||
10 | local use and occupation taxes. No retailer who is eligible | ||||||
11 | for the deduction or credit under Section 5k of this Act | ||||||
12 | related to enterprise zones or Section 5l of this Act related | ||||||
13 | to High Impact Businesses for a given sale shall be eligible | ||||||
14 | for the deduction or credit authorized under this Section for | ||||||
15 | that same sale. | ||||||
16 | In addition to any other requirements to document the | ||||||
17 | exemption allowed under this Section, the retailer must obtain | ||||||
18 | from the purchaser's REV Illinois Building Materials Exemption | ||||||
19 | certificate number issued by the Department. A construction | ||||||
20 | contractor or other entity shall not make tax-free purchases | ||||||
21 | unless it has an active REV Illinois Building Materials | ||||||
22 | Exemption Certificate issued by the Department at the time of | ||||||
23 | purchase. | ||||||
24 | Upon request from the electric vehicle manufacturer, | ||||||
25 | electric vehicle component parts manufacturer, or electric | ||||||
26 | vehicle power supply manufacturer certified by the Department |
| |||||||
| |||||||
1 | of Commerce and Economic Opportunity under REV Illinois Act, | ||||||
2 | the Department shall issue a REV Illinois Building Materials | ||||||
3 | Exemption Certificate for each construction contractor or | ||||||
4 | other entity identified by the certified electric vehicle | ||||||
5 | manufacturer, electric vehicle component parts manufacturer, | ||||||
6 | or electric vehicle power supply manufacturer. The Department | ||||||
7 | shall make the REV Illinois Building Materials Exemption | ||||||
8 | Certificates available to each construction contractor or | ||||||
9 | other entity and the certified electric vehicle manufacturer, | ||||||
10 | electric vehicle component parts manufacturer, or electric | ||||||
11 | vehicle power supply manufacturer. The request for REV | ||||||
12 | Illinois Building Materials Exemption Certificates from the | ||||||
13 | certified electric vehicle manufacturer, electric vehicle | ||||||
14 | component parts manufacturer, or electric vehicle power supply | ||||||
15 | manufacturer to the Department must include the following | ||||||
16 | information: | ||||||
17 | (1) the name and address of the construction | ||||||
18 | contractor or other entity; | ||||||
19 | (2) the name and location or address of the building | ||||||
20 | project site; | ||||||
21 | (3) the estimated amount of the exemption for each | ||||||
22 | construction contractor or other entity for which a | ||||||
23 | request for a REV Illinois Building Materials Exemption | ||||||
24 | Certificate is made, based on a stated estimated average | ||||||
25 | tax rate and the percentage of the contract that consists | ||||||
26 | of materials; |
| |||||||
| |||||||
1 | (4) the period of time over which supplies for the | ||||||
2 | project are expected to be purchased; and | ||||||
3 | (5) other reasonable information as the Department may | ||||||
4 | require, including but not limited to FEIN numbers, to | ||||||
5 | determine if the contractor or other entity, or any | ||||||
6 | partner, or a corporate officer, and in the case of a | ||||||
7 | limited liability company, any manager or member, of the | ||||||
8 | construction contractor or other entity, is or has been | ||||||
9 | the owner, a partner, a corporate officer, and in the case | ||||||
10 | of a limited liability company, a manager or member, of a | ||||||
11 | person that is in default for moneys due to the Department | ||||||
12 | under this Act or any other tax or fee Act administered by | ||||||
13 | the Department. | ||||||
14 | The Department shall issue the REV Illinois Building | ||||||
15 | Materials Exemption Certificates within 3 business days after | ||||||
16 | receipt of request from the certified electric vehicle | ||||||
17 | manufacturer, electric vehicle component parts manufacturer, | ||||||
18 | or electric vehicle power supply manufacturer. This | ||||||
19 | requirement does not apply in circumstances where the | ||||||
20 | Department, for reasonable cause, is unable to issue the | ||||||
21 | Exemption Certificate within 3 business days. The Department | ||||||
22 | may refuse to issue a REV Illinois Building Materials | ||||||
23 | Exemption Certificate if the owner, any partner, or a | ||||||
24 | corporate officer, and in the case of a limited liability | ||||||
25 | company, any manager or member, of the construction contractor | ||||||
26 | or other entity is or has been the owner, a partner, a |
| |||||||
| |||||||
1 | corporate officer, and in the case of a limited liability | ||||||
2 | company, a manager or member, of a person that is in default | ||||||
3 | for moneys due to the Department under this Act or any other | ||||||
4 | tax or fee Act administered by the Department. | ||||||
5 | The REV Illinois Building Materials Exemption Certificate | ||||||
6 | shall contain language stating that if the construction | ||||||
7 | contractor or other entity who is issued the Exemption | ||||||
8 | Certificate makes a tax-exempt purchase, as described in this | ||||||
9 | Section, that is not eligible for exemption under this Section | ||||||
10 | or allows another person to make a tax-exempt purchase, as | ||||||
11 | described in this Section, that is not eligible for exemption | ||||||
12 | under this Section, then, in addition to any tax or other | ||||||
13 | penalty imposed, the construction contractor or other entity | ||||||
14 | is subject to a penalty equal to the tax that would have been | ||||||
15 | paid by the retailer under this Act as well as any applicable | ||||||
16 | local retailers' occupation tax on the purchase that is not | ||||||
17 | eligible for the exemption. | ||||||
18 | The Department, in its discretion, may require that the | ||||||
19 | request for REV Illinois Building Materials Exemption | ||||||
20 | Certificates be submitted electronically. The Department may, | ||||||
21 | in its discretion, issue the Exemption Certificates | ||||||
22 | electronically. The REV Illinois Building Materials Exemption | ||||||
23 | Certificate number shall be designed in such a way that the | ||||||
24 | Department can identify from the unique number on the | ||||||
25 | Exemption Certificate issued to a given construction | ||||||
26 | contractor or other entity, the name of the designated |
| |||||||
| |||||||
1 | electric vehicle manufacturing, electric vehicle component | ||||||
2 | parts manufacturing, or electric vehicle power supply | ||||||
3 | manufacturing site and the construction contractor or other | ||||||
4 | entity to whom the Exemption Certificate is issued. The REV | ||||||
5 | Illinois Building Materials Exemption Certificate shall | ||||||
6 | contain an expiration date, which shall be no more than 5 years | ||||||
7 | after the date of issuance. At the request of the designated | ||||||
8 | certified electric vehicle manufacturer, electric vehicle | ||||||
9 | component parts manufacturer, or electric vehicle power supply | ||||||
10 | manufacturer, the Department may renew a REV Illinois Building | ||||||
11 | Materials Exemption Certificate. After the Department issues | ||||||
12 | Exemption Certificates for a given designated electric vehicle | ||||||
13 | manufacturing, electric vehicle component parts manufacturing, | ||||||
14 | or electric vehicle power supply manufacturing site, the | ||||||
15 | certified electric vehicle manufacturer, electric vehicle | ||||||
16 | component parts manufacturer, or electric vehicle power supply | ||||||
17 | manufacturer may notify the Department of additional | ||||||
18 | construction contractors or other entities eligible for a REV | ||||||
19 | Illinois Building Materials Exemption Certificate. Upon | ||||||
20 | notification by the certified electric vehicle manufacturer, | ||||||
21 | electric vehicle component parts manufacturer, or electric | ||||||
22 | vehicle power supply manufacturer and subject to the other | ||||||
23 | provisions of this Section, the Department shall issue a REV | ||||||
24 | Illinois Building Materials Exemption Certificate to each | ||||||
25 | additional construction contractor or other entity identified | ||||||
26 | by the certified electric vehicle manufacturer, electric |
| |||||||
| |||||||
1 | vehicle component parts manufacturer, or electric vehicle | ||||||
2 | power supply manufacturer. A certified electric vehicle | ||||||
3 | manufacturer, electric vehicle component parts manufacturer, | ||||||
4 | or electric vehicle power supply manufacturer may notify the | ||||||
5 | Department to rescind a REV Illinois Building Materials | ||||||
6 | Exemption Certificate previously issued by the Department but | ||||||
7 | that has not yet expired. Upon notification by the certified | ||||||
8 | electric vehicle manufacturer, electric vehicle component | ||||||
9 | parts manufacturer, or electric vehicle power supply | ||||||
10 | manufacturer and subject to the other provisions of this | ||||||
11 | Section, the Department shall issue the rescission of the REV | ||||||
12 | Illinois Building Materials Exemption Certificate to the | ||||||
13 | construction contractor or other entity identified by the | ||||||
14 | certified electric vehicle manufacturer, electric vehicle | ||||||
15 | component parts manufacturer, or electric vehicle power supply | ||||||
16 | manufacturer and provide a copy to the certified electric | ||||||
17 | vehicle manufacturer, electric vehicle component parts | ||||||
18 | manufacturer, or electric vehicle power supply manufacturer. | ||||||
19 | If the Department of Revenue determines that a | ||||||
20 | construction contractor or other entity that was issued an | ||||||
21 | Exemption Certificate under this Section made a tax-exempt | ||||||
22 | purchase, as described in this Section, that was not eligible | ||||||
23 | for exemption under this Section or allowed another person to | ||||||
24 | make a tax-exempt purchase, as described in this Section, that | ||||||
25 | was not eligible for exemption under this Section, then, in | ||||||
26 | addition to any tax or other penalty imposed, the construction |
| |||||||
| |||||||
1 | contractor or other entity is subject to a penalty equal to the | ||||||
2 | tax that would have been paid by the retailer under this Act as | ||||||
3 | well as any applicable local retailers' occupation tax on the | ||||||
4 | purchase that was not eligible for the exemption. | ||||||
5 | This Section is exempt from the provisions of Section | ||||||
6 | 2-70. | ||||||
7 | Section 915. The Property Tax Code is amended by adding | ||||||
8 | Section 18-184.15 as follows: | ||||||
9 | (35 ILCS 200/18-184.15 new) | ||||||
10 | Sec. 18-184.15. REV Illinois project facilities for | ||||||
11 | electric vehicles, electric vehicle component parts, or | ||||||
12 | electric vehicle power supply equipment; abatement. Any taxing | ||||||
13 | district, upon a majority vote of its governing body, may, | ||||||
14 | after determination of the assessed value as set forth in this | ||||||
15 | Code, order the clerk of the appropriate municipality or | ||||||
16 | county to abate any portion of real property taxes otherwise | ||||||
17 | levied or extended by the taxing district on a REV Illinois | ||||||
18 | Project facility owned by an electric vehicle manufacturer, | ||||||
19 | electric vehicle component parts manufacturer, or an electric | ||||||
20 | vehicle power supply manufacturer that is subject to an | ||||||
21 | agreement with the Department of Commerce and Economic | ||||||
22 | Opportunity under Section 45 of the Reimagining Electric | ||||||
23 | Vehicles in Illinois Act, during the period of time such | ||||||
24 | agreement is in effect as specified by the Department of |
| |||||||
| |||||||
1 | Commerce and Economic Opportunity. | ||||||
2 | Section 920. The Telecommunications Excise Tax Act is | ||||||
3 | amended by changing Section 2 as follows:
| ||||||
4 | (35 ILCS 630/2) (from Ch. 120, par. 2002)
| ||||||
5 | Sec. 2. As used in this Article, unless the context | ||||||
6 | clearly requires
otherwise:
| ||||||
7 | (a) "Gross charge" means the amount paid for the act or
| ||||||
8 | privilege of originating or receiving telecommunications in | ||||||
9 | this State and
for all services and equipment provided in | ||||||
10 | connection therewith by a
retailer, valued in money whether | ||||||
11 | paid in money or otherwise, including
cash, credits, services | ||||||
12 | and property of every kind or nature, and shall be
determined | ||||||
13 | without any deduction on account of the cost of such
| ||||||
14 | telecommunications, the cost of materials used, labor or | ||||||
15 | service costs or
any other expense whatsoever. In case credit | ||||||
16 | is extended, the amount
thereof shall be included only as and | ||||||
17 | when paid.
"Gross charges" for private line service shall | ||||||
18 | include charges imposed at
each channel termination point | ||||||
19 | within this State, charges for the channel
mileage
between | ||||||
20 | each channel termination point within this State, and charges | ||||||
21 | for
that portion
of the interstate inter-office channel | ||||||
22 | provided within Illinois. Charges for
that portion of the | ||||||
23 | interstate inter-office channel provided in Illinois shall
be | ||||||
24 | determined by the retailer as follows: (i) for interstate
|
| |||||||
| |||||||
1 | inter-office channels having 2 channel termination points, | ||||||
2 | only one of which
is in Illinois, 50% of the total charge | ||||||
3 | imposed; or (ii) for interstate
inter-office channels having | ||||||
4 | more than 2 channel termination points, one or
more of which
| ||||||
5 | are in Illinois, an amount equal to the total charge
| ||||||
6 | multiplied by a fraction, the numerator of which is the number | ||||||
7 | of channel
termination points within Illinois and the | ||||||
8 | denominator of which is the total
number of channel | ||||||
9 | termination points. Prior to January 1,
2004, any method | ||||||
10 | consistent with this
paragraph or other method that reasonably | ||||||
11 | apportions the total charges for
interstate inter-office | ||||||
12 | channels among the states in which channel terminations
points | ||||||
13 | are located shall be accepted as a reasonable method to | ||||||
14 | determine the
charges for
that portion of the interstate | ||||||
15 | inter-office channel provided within Illinois
for that period. | ||||||
16 | However, "gross charges" shall not include any of the
| ||||||
17 | following:
| ||||||
18 | (1) Any amounts added to a purchaser's bill because of | ||||||
19 | a charge made
pursuant to (i) the tax imposed by this | ||||||
20 | Article; (ii) charges added to
customers' bills pursuant | ||||||
21 | to the provisions of Sections 9-221 or 9-222 of
the Public | ||||||
22 | Utilities Act, as amended, or any similar charges added to
| ||||||
23 | customers' bills by retailers who are not subject to rate | ||||||
24 | regulation by
the Illinois Commerce Commission for the | ||||||
25 | purpose of recovering any of the
tax liabilities or other | ||||||
26 | amounts specified in such provisions of such
Act; (iii) |
| |||||||
| |||||||
1 | the tax imposed by Section 4251 of the Internal Revenue | ||||||
2 | Code;
(iv) 911 surcharges; or (v) the tax imposed by the | ||||||
3 | Simplified Municipal
Telecommunications Tax Act.
| ||||||
4 | (2) Charges for a sent collect telecommunication | ||||||
5 | received outside of the
State.
| ||||||
6 | (3) Charges for leased time on equipment or charges | ||||||
7 | for the storage of
data or information for subsequent | ||||||
8 | retrieval or the processing of data or
information | ||||||
9 | intended to change its form or content. Such equipment
| ||||||
10 | includes, but is not limited to, the use of calculators, | ||||||
11 | computers, data
processing equipment, tabulating equipment | ||||||
12 | or accounting equipment and also
includes the usage of | ||||||
13 | computers under a time-sharing agreement.
| ||||||
14 | (4) Charges for customer equipment, including such | ||||||
15 | equipment that is
leased or rented by the customer from | ||||||
16 | any source, wherein such charges are
disaggregated and | ||||||
17 | separately identified from other charges.
| ||||||
18 | (5) Charges to business enterprises certified under | ||||||
19 | Section 9-222.1
of the Public Utilities Act, as amended, | ||||||
20 | or to electric vehicle manufacturers, electric vehicle | ||||||
21 | component parts manufacturers, or electric vehicle power | ||||||
22 | supply manufacturers at REV Illinois Project sites for | ||||||
23 | which a certificate of exemption has been issued by the | ||||||
24 | Department of Commerce and Economic Opportunity under | ||||||
25 | Section 95 of the Reimagining Electric Vehicles in | ||||||
26 | Illinois Act, to the extent of such exemption
and during |
| |||||||
| |||||||
1 | the period of time specified by the Department of Commerce | ||||||
2 | and
Economic Opportunity.
| ||||||
3 | (6) Charges for telecommunications and all services | ||||||
4 | and equipment
provided in connection therewith between a | ||||||
5 | parent corporation and its
wholly owned subsidiaries or | ||||||
6 | between wholly owned subsidiaries when the tax
imposed | ||||||
7 | under this Article has already been paid to a
retailer and | ||||||
8 | only to the extent that the charges between the parent
| ||||||
9 | corporation and wholly owned subsidiaries or between | ||||||
10 | wholly owned
subsidiaries represent expense allocation
| ||||||
11 | between the corporations and not the generation of profit | ||||||
12 | for the
corporation rendering such service.
| ||||||
13 | (7) Bad debts. Bad debt means any portion of a debt | ||||||
14 | that is related
to a sale at retail for which gross charges | ||||||
15 | are not otherwise deductible or
excludable that has become | ||||||
16 | worthless or uncollectable, as determined under
applicable | ||||||
17 | federal income tax standards. If the portion of the debt | ||||||
18 | deemed to
be bad is subsequently paid, the retailer shall | ||||||
19 | report and pay the tax on that
portion during the | ||||||
20 | reporting period in which the payment is made.
| ||||||
21 | (8) Charges paid by inserting coins in coin-operated | ||||||
22 | telecommunication
devices.
| ||||||
23 | (9) Amounts paid by telecommunications retailers under | ||||||
24 | the
Telecommunications Municipal Infrastructure | ||||||
25 | Maintenance Fee Act.
| ||||||
26 | (10) Charges for nontaxable services or |
| |||||||
| |||||||
1 | telecommunications if (i) those
charges are
aggregated
| ||||||
2 | with other
charges for telecommunications that are | ||||||
3 | taxable, (ii) those charges are not
separately stated
on | ||||||
4 | the
customer bill or invoice, and (iii) the retailer can | ||||||
5 | reasonably identify the
nontaxable
charges on
the | ||||||
6 | retailer's books and records kept in the regular course of | ||||||
7 | business. If the
nontaxable
charges cannot reasonably be | ||||||
8 | identified, the gross charge from the sale of both
taxable
| ||||||
9 | and nontaxable services or telecommunications billed on a | ||||||
10 | combined basis shall
be
attributed to the taxable services | ||||||
11 | or telecommunications. The burden of proving
nontaxable
| ||||||
12 | charges
shall be on the retailer of the | ||||||
13 | telecommunications.
| ||||||
14 | (b) "Amount paid" means the amount charged to the | ||||||
15 | taxpayer's service
address in this State regardless of where | ||||||
16 | such amount is billed or paid.
| ||||||
17 | (c) "Telecommunications", in addition to the meaning | ||||||
18 | ordinarily and
popularly ascribed to it, includes, without | ||||||
19 | limitation, messages or
information transmitted through use of | ||||||
20 | local, toll and wide area telephone
service; private line | ||||||
21 | services; channel services; telegraph services;
| ||||||
22 | teletypewriter; computer exchange services; cellular mobile
| ||||||
23 | telecommunications service; specialized mobile radio; | ||||||
24 | stationary two way
radio; paging service; or any other form of | ||||||
25 | mobile and portable one-way or
two-way communications; or any | ||||||
26 | other transmission of messages or
information by electronic or |
| |||||||
| |||||||
1 | similar means, between or among points by
wire, cable, | ||||||
2 | fiber-optics, laser, microwave, radio, satellite or similar
| ||||||
3 | facilities. As used in this Act, "private line" means a | ||||||
4 | dedicated non-traffic
sensitive service for a single customer, | ||||||
5 | that entitles the customer to
exclusive or priority use of a | ||||||
6 | communications channel or group of channels,
from one or more | ||||||
7 | specified locations to one or more other specified
locations. | ||||||
8 | The definition of "telecommunications" shall not include value
| ||||||
9 | added services in which computer processing applications are | ||||||
10 | used to act on
the form, content, code and protocol of the | ||||||
11 | information for purposes other
than transmission. | ||||||
12 | "Telecommunications" shall not include purchases of
| ||||||
13 | telecommunications by a telecommunications service provider | ||||||
14 | for use as a
component part of the service provided by him to | ||||||
15 | the ultimate retail
consumer who originates or terminates the | ||||||
16 | taxable end-to-end
communications. Carrier access charges, | ||||||
17 | right of access charges, charges
for use of inter-company | ||||||
18 | facilities, and all telecommunications resold in
the | ||||||
19 | subsequent provision of, used as a component of, or integrated | ||||||
20 | into
end-to-end telecommunications service shall be | ||||||
21 | non-taxable as sales for resale.
| ||||||
22 | (d) "Interstate telecommunications" means all | ||||||
23 | telecommunications that
either originate or terminate outside | ||||||
24 | this State.
| ||||||
25 | (e) "Intrastate telecommunications" means all | ||||||
26 | telecommunications that
originate and terminate within this |
| |||||||
| |||||||
1 | State.
| ||||||
2 | (f) "Department" means the Department of Revenue of the | ||||||
3 | State of Illinois.
| ||||||
4 | (g) "Director" means the Director of Revenue for the | ||||||
5 | Department of
Revenue of the State of Illinois.
| ||||||
6 | (h) "Taxpayer" means a person who individually or through | ||||||
7 | his agents,
employees or permittees engages in the act or | ||||||
8 | privilege of originating or
receiving telecommunications in | ||||||
9 | this State and who incurs a tax liability
under this Article.
| ||||||
10 | (i) "Person" means any natural individual, firm, trust, | ||||||
11 | estate, partnership,
association, joint stock company, joint | ||||||
12 | venture, corporation, limited liability
company, or a | ||||||
13 | receiver, trustee, guardian or other representative appointed | ||||||
14 | by
order of any court, the Federal and State governments, | ||||||
15 | including State
universities created by statute or any city, | ||||||
16 | town, county or other political
subdivision of this State.
| ||||||
17 | (j) "Purchase at retail" means the acquisition, | ||||||
18 | consumption or use of
telecommunication through a sale at | ||||||
19 | retail.
| ||||||
20 | (k) "Sale at retail" means the transmitting, supplying or | ||||||
21 | furnishing of
telecommunications and all services and | ||||||
22 | equipment provided in connection
therewith for a consideration | ||||||
23 | to persons other than the Federal and State
governments, and | ||||||
24 | State universities created by statute and other than between
a | ||||||
25 | parent corporation and its wholly owned subsidiaries or | ||||||
26 | between wholly
owned subsidiaries for their use or consumption |
| |||||||
| |||||||
1 | and not for resale.
| ||||||
2 | (l) "Retailer" means and includes every person engaged in | ||||||
3 | the business
of making sales at retail as defined in this | ||||||
4 | Article. The Department may, in
its discretion, upon | ||||||
5 | application, authorize the collection of the tax
hereby | ||||||
6 | imposed by any retailer not maintaining a place of business | ||||||
7 | within
this State, who, to the satisfaction of the Department, | ||||||
8 | furnishes adequate
security to insure collection and payment | ||||||
9 | of the tax. Such retailer shall
be issued, without charge, a | ||||||
10 | permit to collect such tax. When so
authorized, it shall be the | ||||||
11 | duty of such retailer to collect the tax upon
all of the gross | ||||||
12 | charges for telecommunications in this State in the same
| ||||||
13 | manner and subject to the same requirements as a retailer | ||||||
14 | maintaining a
place of business within this State. The permit | ||||||
15 | may be revoked by the
Department at its discretion.
| ||||||
16 | (m) "Retailer maintaining a place of business in this | ||||||
17 | State", or any
like term, means and includes any retailer | ||||||
18 | having or maintaining within
this State, directly or by a | ||||||
19 | subsidiary, an office, distribution
facilities, transmission | ||||||
20 | facilities, sales office, warehouse or other place
of | ||||||
21 | business, or any agent or other representative operating | ||||||
22 | within this
State under the authority of the retailer or its | ||||||
23 | subsidiary, irrespective
of whether such place of business or | ||||||
24 | agent or other representative is
located here permanently or | ||||||
25 | temporarily, or whether such retailer or
subsidiary is | ||||||
26 | licensed to do business in this State.
|
| |||||||
| |||||||
1 | (n) "Service address" means the location of | ||||||
2 | telecommunications equipment
from which the telecommunications | ||||||
3 | services are originated or at which
telecommunications | ||||||
4 | services are received by a taxpayer. In the event this may
not | ||||||
5 | be a defined location, as in the case of mobile phones, paging | ||||||
6 | systems,
maritime systems, service address means the | ||||||
7 | customer's place of primary use
as defined in the Mobile | ||||||
8 | Telecommunications Sourcing Conformity Act. For
air-to-ground | ||||||
9 | systems and the like, service address shall mean the location
| ||||||
10 | of a taxpayer's primary use of the telecommunications | ||||||
11 | equipment as defined by
telephone number, authorization code, | ||||||
12 | or location in Illinois where bills are
sent.
| ||||||
13 | (o) "Prepaid telephone calling arrangements" mean the | ||||||
14 | right to exclusively
purchase telephone or telecommunications | ||||||
15 | services that must be paid for in
advance and enable the | ||||||
16 | origination of one or more intrastate, interstate, or
| ||||||
17 | international telephone calls or other telecommunications | ||||||
18 | using an access
number, an authorization code, or both, | ||||||
19 | whether manually or electronically
dialed, for which payment | ||||||
20 | to a retailer must be made in advance, provided
that, unless | ||||||
21 | recharged, no further service is provided once that prepaid
| ||||||
22 | amount of service has been consumed. Prepaid telephone calling | ||||||
23 | arrangements
include the recharge of a prepaid calling | ||||||
24 | arrangement. For purposes of this
subsection, "recharge" means | ||||||
25 | the purchase of additional prepaid telephone or
| ||||||
26 | telecommunications services whether or not the purchaser |
| |||||||
| |||||||
1 | acquires a different
access number or authorization code. | ||||||
2 | "Prepaid telephone calling arrangement"
does not include an | ||||||
3 | arrangement whereby a customer purchases a payment card and
| ||||||
4 | pursuant to which the service provider reflects the amount of | ||||||
5 | such purchase as
a credit on an invoice issued to that customer | ||||||
6 | under an existing subscription
plan.
| ||||||
7 | (Source: P.A. 93-286, 1-1-04; 94-793, eff. 5-19-06.)
| ||||||
8 | Section 925. The Electricity Excise Tax Law is amended by | ||||||
9 | changing Section 2-4 as follows:
| ||||||
10 | (35 ILCS 640/2-4)
| ||||||
11 | Sec. 2-4. Tax imposed.
| ||||||
12 | (a) Except as provided in subsection (b), a tax is
imposed | ||||||
13 | on the privilege
of using in this State electricity purchased | ||||||
14 | for use or
consumption and not for resale, other than by | ||||||
15 | municipal corporations owning and
operating a local | ||||||
16 | transportation system for public service, at the following
| ||||||
17 | rates per
kilowatt-hour delivered to the purchaser:
| ||||||
18 | (i) For the first 2000 kilowatt-hours used or
consumed | ||||||
19 | in a month: 0.330 cents per kilowatt-hour;
| ||||||
20 | (ii) For the next 48,000 kilowatt-hours used or
| ||||||
21 | consumed in a month: 0.319 cents per kilowatt-hour;
| ||||||
22 | (iii) For the next 50,000 kilowatt-hours used or
| ||||||
23 | consumed in a month: 0.303 cents per kilowatt-hour;
| ||||||
24 | (iv) For the next 400,000 kilowatt-hours used or
|
| |||||||
| |||||||
1 | consumed in a month: 0.297 cents per kilowatt-hour;
| ||||||
2 | (v) For the next 500,000 kilowatt-hours used or
| ||||||
3 | consumed in a month: 0.286 cents per kilowatt-hour;
| ||||||
4 | (vi) For the next 2,000,000 kilowatt-hours used or
| ||||||
5 | consumed in a month: 0.270 cents per kilowatt-hour;
| ||||||
6 | (vii) For the next 2,000,000 kilowatt-hours used or
| ||||||
7 | consumed in a month: 0.254 cents per kilowatt-hour;
| ||||||
8 | (viii) For the next 5,000,000 kilowatt-hours used
or | ||||||
9 | consumed in a month: 0.233 cents per kilowatt-hour;
| ||||||
10 | (ix) For the next 10,000,000 kilowatt-hours used or
| ||||||
11 | consumed in a month: 0.207 cents per kilowatt-hour;
| ||||||
12 | (x) For all electricity in excess of 20,000,000
| ||||||
13 | kilowatt-hours used or consumed in a month: 0.202 cents
| ||||||
14 | per kilowatt-hour.
| ||||||
15 | Provided, that in lieu of the foregoing rates, the tax
is | ||||||
16 | imposed on a self-assessing purchaser at the rate of 5.1%
of | ||||||
17 | the self-assessing purchaser's purchase price for
all | ||||||
18 | electricity distributed, supplied, furnished, sold,
| ||||||
19 | transmitted and delivered to the self-assessing purchaser in a
| ||||||
20 | month.
| ||||||
21 | (b) A tax is imposed on the privilege of using in this | ||||||
22 | State electricity
purchased from a municipal system or | ||||||
23 | electric cooperative, as defined in
Article XVII of the Public | ||||||
24 | Utilities Act, which has not made an election as
permitted by | ||||||
25 | either Section 17-200 or Section 17-300 of such Act, at the | ||||||
26 | lesser
of 0.32 cents per kilowatt hour of all electricity |
| |||||||
| |||||||
1 | distributed, supplied,
furnished, sold, transmitted, and | ||||||
2 | delivered by such municipal system or
electric cooperative to | ||||||
3 | the purchaser or 5% of each such purchaser's purchase
price | ||||||
4 | for all electricity distributed, supplied, furnished, sold, | ||||||
5 | transmitted,
and delivered by such municipal system or | ||||||
6 | electric cooperative to the
purchaser, whichever is the lower | ||||||
7 | rate as applied to each purchaser in each
billing period.
| ||||||
8 | (c) The tax imposed by this Section 2-4 is not imposed with
| ||||||
9 | respect to any use of electricity by business enterprises
| ||||||
10 | certified under Section 9-222.1 or 9-222.1A of the Public | ||||||
11 | Utilities Act,
as amended, to the extent of such exemption and | ||||||
12 | during the
time specified by the Department of Commerce and | ||||||
13 | Economic Opportunity; or with respect to any transaction in | ||||||
14 | interstate
commerce, or otherwise, to the extent to which such
| ||||||
15 | transaction may not, under the Constitution and statutes of
| ||||||
16 | the United States, be made the subject of taxation by this
| ||||||
17 | State.
| ||||||
18 | (d) The tax imposed by this Section 2-4 is not imposed with | ||||||
19 | respect to any use of electricity at a REV Illinois Project | ||||||
20 | site that has received a certification for tax exemption from | ||||||
21 | the Department of Commerce and Economic Opportunity pursuant | ||||||
22 | to Section 95 of the Reimagining Electric Vehicles in Illinois | ||||||
23 | Act, to the extent of such exemption, which shall be no more | ||||||
24 | than 10 years. | ||||||
25 | (Source: P.A. 94-793, eff. 5-19-06.)
|
| |||||||
| |||||||
1 | Section 930. The Public Utilities Act is amended by | ||||||
2 | changing Section 9-222 as follows:
| ||||||
3 | (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
| ||||||
4 | Sec. 9-222.
Whenever a tax is imposed upon a public | ||||||
5 | utility
engaged in the business of distributing, supplying,
| ||||||
6 | furnishing, or selling gas for use or consumption pursuant to | ||||||
7 | Section 2 of
the Gas Revenue Tax Act, or whenever a tax is
| ||||||
8 | required to be collected by a delivering supplier pursuant to | ||||||
9 | Section 2-7 of
the Electricity Excise Tax Act, or whenever a | ||||||
10 | tax is imposed upon a public
utility pursuant to Section
2-202 | ||||||
11 | of this Act, such utility may charge its customers, other than
| ||||||
12 | customers who are high impact businesses under Section 5.5
of | ||||||
13 | the Illinois Enterprise Zone Act, electric vehicle | ||||||
14 | manufacturers, electric vehicle component parts manufacturers, | ||||||
15 | or electric vehicle power supply equipment manufacturers at | ||||||
16 | REV Illinois Project sites as certified under Section 95 of | ||||||
17 | the Reimagining Electric Vehicles in Illinois Act, or | ||||||
18 | certified business enterprises
under Section 9-222.1 of this | ||||||
19 | Act, to the extent of such exemption and
during the period in | ||||||
20 | which such exemption is in effect,
in addition to any rate | ||||||
21 | authorized by this Act, an additional
charge equal to the | ||||||
22 | total amount of such taxes. The exemption of this
Section | ||||||
23 | relating to high impact businesses shall be subject to the
| ||||||
24 | provisions of subsections (a), (b), and (b-5) of Section 5.5 | ||||||
25 | of
the Illinois
Enterprise Zone Act. This requirement shall |
| |||||||
| |||||||
1 | not
apply to taxes on invested capital imposed pursuant to the | ||||||
2 | Messages Tax
Act, the Gas Revenue Tax Act and the Public | ||||||
3 | Utilities Revenue Act.
Such utility shall file with the | ||||||
4 | Commission
a supplemental schedule which shall specify such | ||||||
5 | additional charge and
which shall become effective upon filing | ||||||
6 | without further notice. Such
additional charge shall be shown | ||||||
7 | separately on the utility bill to each
customer. The | ||||||
8 | Commission shall have the power to investigate whether or
not | ||||||
9 | such supplemental schedule correctly specifies such additional | ||||||
10 | charge,
but shall have no power to suspend such supplemental | ||||||
11 | schedule. If the
Commission finds, after a hearing, that such | ||||||
12 | supplemental schedule does not
correctly specify such | ||||||
13 | additional charge, it shall by order require a
refund to the | ||||||
14 | appropriate customers of the excess, if any, with interest,
in | ||||||
15 | such manner as it shall deem just and reasonable, and in and by | ||||||
16 | such
order shall require the utility to file an amended | ||||||
17 | supplemental schedule
corresponding to the finding and order | ||||||
18 | of the Commission.
Except with respect to taxes imposed on | ||||||
19 | invested capital,
such tax liabilities shall be recovered from | ||||||
20 | customers solely by means of
the additional charges authorized | ||||||
21 | by this Section.
| ||||||
22 | (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
| ||||||
23 | Section 935. The Environmental Protection Act is amended | ||||||
24 | by adding Section 52.10 as follows: |
| |||||||
| |||||||
1 | (415 ILCS 5/52.10 new) | ||||||
2 | Sec. 52.10. Electric Vehicle Permitting Task Force. | ||||||
3 | (a) The Electric Vehicle Permitting Task Force is hereby | ||||||
4 | created within the Environmental Protection Agency. | ||||||
5 | (b) The Task Force shall consist of the following members, | ||||||
6 | which shall represent the diversity of the people of Illinois: | ||||||
7 | (1) The Director of the Environmental Protection | ||||||
8 | Agency or his or her designee; | ||||||
9 | (2) The Director of Natural Resources or his or her | ||||||
10 | designee; | ||||||
11 | (3) The Secretary of Transportation or their designee; | ||||||
12 | (4) 8 members appointed by the Governor as follows: | ||||||
13 | (A) one member of a statewide organization | ||||||
14 | representing manufacturers; | ||||||
15 | (B) one member of a statewide organization | ||||||
16 | representing business interests; | ||||||
17 | (C) one member representing an environmental | ||||||
18 | justice organization; | ||||||
19 | (D) one member representing a statewide | ||||||
20 | environmental advocacy organization; | ||||||
21 | (E) one member representing the electric vehicle | ||||||
22 | industry; | ||||||
23 | (F) one member representing the waste management | ||||||
24 | industry; | ||||||
25 | (G) one member of a statewide organization | ||||||
26 | representing agricultural interests; and |
| |||||||
| |||||||
1 | (H) one member representing a labor organization. | ||||||
2 | (c) The duties and responsibilities of the Task Force | ||||||
3 | include the following: | ||||||
4 | (1) identify existing and potential challenges faced | ||||||
5 | by the electric vehicle industry with respect to the | ||||||
6 | process for obtaining necessary permits from the | ||||||
7 | Environmental Protection Agency, the Department of Natural | ||||||
8 | Resources, and the Department of Transportation, and | ||||||
9 | potential solutions; | ||||||
10 | (2) conduct an assessment of State permitting fees, | ||||||
11 | including those necessary for electric vehicle investment | ||||||
12 | in Illinois, and the revenue generated by those fees; | ||||||
13 | (3) assess the permitting needs of the electric | ||||||
14 | vehicle industry, including electric vehicle | ||||||
15 | manufacturers, electric vehicle power supply equipment | ||||||
16 | manufacturers, and electric vehicle component parts | ||||||
17 | manufacturers; | ||||||
18 | (4) recommend changes to expedite permitting processes | ||||||
19 | to support the rapid growth of the electric vehicle | ||||||
20 | industry in Illinois, including support for electric | ||||||
21 | vehicle businesses locating or relocating in Illinois; | ||||||
22 | (5) analyze anticipated staffing needs across State | ||||||
23 | agencies to support expedited permitting efforts; | ||||||
24 | (6) recommend adjustments to the fee structure for | ||||||
25 | state permits, including those permits necessary for | ||||||
26 | electric vehicle investment in Illinois, that will support |
| |||||||
| |||||||
1 | increased staffing at state agencies; | ||||||
2 | (7) Consider the impact of State and local permitting | ||||||
3 | issues on electric vehicle charging station deployments, | ||||||
4 | and make recommendations on best practices to streamline | ||||||
5 | permitting related to electric vehicle charging stations; | ||||||
6 | and | ||||||
7 | (8) recommend legislative and regulatory actions that | ||||||
8 | are necessary to support changes to permitting processes. | ||||||
9 | (d) The Task Force shall not consider or recommend changes | ||||||
10 | to environmental permitting standards outside of the scope of | ||||||
11 | the duties and responsibilities outlined in subsection (c). | ||||||
12 | (e) Appointments for the Task Force shall be made no later | ||||||
13 | than December 15, 2021. The Task Force shall issue a final | ||||||
14 | report based upon its findings and recommendations and submit | ||||||
15 | the report to the Governor and the General Assembly no later | ||||||
16 | than March 1, 2022. | ||||||
17 | (f) Members of the Task Force shall serve without | ||||||
18 | compensation. The Environmental Protection Agency shall | ||||||
19 | provide administrative support to the Task Force. | ||||||
20 | (g) The Task Force shall be dissolved upon the filing of | ||||||
21 | its report. | ||||||
22 | (h) This Section is repealed on December 31, 2022. | ||||||
23 | Section 940. The Motor Vehicle Franchise Act is amended by | ||||||
24 | changing Section 6 as follows:
|
| |||||||
| |||||||
1 | (815 ILCS 710/6) (from Ch. 121 1/2, par. 756)
| ||||||
2 | (Text of Section before amendment by P.A. 102-232 )
| ||||||
3 | Sec. 6. Warranty agreements; claims; approval; payment; | ||||||
4 | written
disapproval. | ||||||
5 | (a) Every manufacturer, distributor, wholesaler, | ||||||
6 | distributor branch
or division, factory branch or division, or | ||||||
7 | wholesale branch or division
shall properly fulfill any | ||||||
8 | warranty agreement and adequately and fairly
compensate each | ||||||
9 | of its motor vehicle dealers for labor and parts.
| ||||||
10 | (b) In no event shall such compensation fail to include | ||||||
11 | reasonable
compensation for diagnostic work, as well as repair | ||||||
12 | service, labor, and
parts. Time allowances for the diagnosis | ||||||
13 | and performance of warranty
work and service shall be
| ||||||
14 | reasonable and adequate for the work to be performed. In the | ||||||
15 | determination
of what constitutes reasonable compensation | ||||||
16 | under this Section, the principal
factor to be given | ||||||
17 | consideration shall be the prevailing wage rates being
paid by | ||||||
18 | the dealer in the relevant market area in which the motor | ||||||
19 | vehicle
dealer is doing business, and in no event shall such | ||||||
20 | compensation of a motor
vehicle dealer for warranty service be | ||||||
21 | less than the rates charged by such
dealer for like service to | ||||||
22 | retail customers for nonwarranty service and
repairs. The | ||||||
23 | franchiser shall reimburse the franchisee for any parts
| ||||||
24 | provided in satisfaction of a warranty at the prevailing | ||||||
25 | retail price charged
by that dealer for the same parts when not | ||||||
26 | provided in satisfaction of a
warranty; provided that such |
| |||||||
| |||||||
1 | motor vehicle franchisee's prevailing retail price
is not | ||||||
2 | unreasonable when compared with that of the holders of motor | ||||||
3 | vehicle
franchises from the same motor vehicle franchiser for | ||||||
4 | identical merchandise
in the geographic area in which the | ||||||
5 | motor vehicle franchisee is engaged in
business. All claims, | ||||||
6 | either original or resubmitted, made by motor vehicle
dealers | ||||||
7 | hereunder and under Section 5 for such labor and parts shall be | ||||||
8 | either
approved or disapproved within 30 days following their | ||||||
9 | submission. All
approved claims shall be paid within 30 days | ||||||
10 | following their approval. The
motor vehicle dealer who submits | ||||||
11 | a claim which is disapproved shall be notified
in writing of | ||||||
12 | the disapproval within the same period, and each such notice
| ||||||
13 | shall state the specific grounds upon which the disapproval is | ||||||
14 | based. The
motor vehicle dealer shall be permitted to correct | ||||||
15 | and resubmit such
disapproved claims within 30 days of receipt | ||||||
16 | of disapproval. Any claims not
specifically disapproved in | ||||||
17 | writing within 30 days from their submission shall
be deemed | ||||||
18 | approved and payment shall follow within 30 days. The | ||||||
19 | manufacturer
or franchiser shall have the right to require | ||||||
20 | reasonable documentation for
claims and to audit such claims | ||||||
21 | within a one year period from the date the
claim was paid or | ||||||
22 | credit issued by the manufacturer or franchiser, and to
charge | ||||||
23 | back any false or unsubstantiated claims. The audit and charge | ||||||
24 | back
provisions of this Section also apply to all other | ||||||
25 | incentive and reimbursement
programs for a period of one year | ||||||
26 | after the date the claim was paid or credit issued by the |
| |||||||
| |||||||
1 | manufacturer or franchiser. However, the manufacturer retains | ||||||
2 | the
right to charge back any fraudulent claim if the | ||||||
3 | manufacturer establishes in
a court of competent jurisdiction | ||||||
4 | in this State that the claim is fraudulent.
| ||||||
5 | (c) The motor vehicle franchiser shall not, by agreement, | ||||||
6 | by restrictions
upon reimbursement, or otherwise, restrict the | ||||||
7 | nature and extent of services to
be rendered or parts to be | ||||||
8 | provided so that such restriction prevents the motor
vehicle | ||||||
9 | franchisee from satisfying the warranty by rendering services | ||||||
10 | in a good
and workmanlike manner and providing parts which are | ||||||
11 | required in accordance
with generally accepted standards. Any | ||||||
12 | such restriction shall constitute a
prohibited practice.
| ||||||
13 | (d) For the purposes of this Section, the "prevailing | ||||||
14 | retail price
charged by that dealer for the same parts" means | ||||||
15 | the price paid by
the motor vehicle franchisee for parts, | ||||||
16 | including all shipping and other
charges, multiplied by the | ||||||
17 | sum of 1.0 and the franchisee's average percentage
markup over | ||||||
18 | the price paid by the motor vehicle franchisee for parts | ||||||
19 | purchased
by the motor vehicle franchisee from the motor | ||||||
20 | vehicle franchiser and sold at
retail. The motor vehicle | ||||||
21 | franchisee may establish average percentage markup
under this | ||||||
22 | Section by submitting to the motor vehicle franchiser 100 | ||||||
23 | sequential
customer paid service repair orders or 90 days of | ||||||
24 | customer paid service repair
orders, whichever is less, | ||||||
25 | covering repairs made no more than 180 days before
the | ||||||
26 | submission, and declaring what the average percentage markup |
| |||||||
| |||||||
1 | is. The
average percentage markup so declared shall go into | ||||||
2 | effect 30 days following
the declaration, subject to audit of | ||||||
3 | the submitted repair orders by the motor
vehicle franchiser | ||||||
4 | and adjustment of the average percentage markup based on
that | ||||||
5 | audit. Any audit must be conducted within 30 days following | ||||||
6 | the
declaration. Only retail sales not involving warranty | ||||||
7 | repairs, parts covered
by subsection (e) of this Section, or | ||||||
8 | parts supplied for routine vehicle
maintenance, shall be | ||||||
9 | considered in calculating average percentage markup. No
motor | ||||||
10 | vehicle franchiser shall require a motor vehicle franchisee to | ||||||
11 | establish
average percentage markup by a methodology, or by | ||||||
12 | requiring information, that
is unduly burdensome or time | ||||||
13 | consuming to provide, including, but not limited
to, part by | ||||||
14 | part or transaction by transaction calculations. A motor | ||||||
15 | vehicle
franchisee shall not request a change in the average | ||||||
16 | percentage markup more
than twice in one calendar year.
| ||||||
17 | (e) If a motor vehicle franchiser supplies a part or parts | ||||||
18 | for use in a
repair rendered under a warranty other than by | ||||||
19 | sale of that part or parts to
the motor vehicle franchisee, the | ||||||
20 | motor vehicle franchisee shall be entitled to
compensation | ||||||
21 | equivalent to the motor vehicle franchisee's average | ||||||
22 | percentage
markup on the part or parts, as if the part or parts | ||||||
23 | had been sold to the motor
vehicle franchisee by the motor | ||||||
24 | vehicle franchiser. The requirements of this
subsection (e) | ||||||
25 | shall not apply to entire engine assemblies and entire
| ||||||
26 | transmission
assemblies. In the case of those assemblies, the |
| |||||||
| |||||||
1 | motor vehicle franchiser
shall reimburse the motor vehicle | ||||||
2 | franchisee in the amount of 30% of what the
motor vehicle | ||||||
3 | franchisee would have paid the motor vehicle franchiser for | ||||||
4 | the
assembly if the assembly had not been supplied by the | ||||||
5 | franchiser other than by
the sale of that assembly to the motor | ||||||
6 | vehicle franchisee.
| ||||||
7 | (f) The obligations imposed on motor vehicle franchisers | ||||||
8 | by this Section
shall apply to any parent, subsidiary, | ||||||
9 | affiliate, or agent of the motor vehicle
franchiser, any | ||||||
10 | person under common ownership or control, any employee of the
| ||||||
11 | motor vehicle franchiser, and any person holding 1% or more of | ||||||
12 | the shares of
any class of securities or other ownership | ||||||
13 | interest in the motor vehicle
franchiser, if a warranty or | ||||||
14 | service or repair plan is issued by that person
instead of or | ||||||
15 | in addition to one issued by the motor vehicle franchiser.
| ||||||
16 | (g) (1) Any motor vehicle franchiser and at least a | ||||||
17 | majority of its
Illinois franchisees of the same line make may | ||||||
18 | agree in an express written
contract citing this Section upon | ||||||
19 | a uniform warranty reimbursement policy used
by contracting | ||||||
20 | franchisees to perform warranty repairs. The policy shall only
| ||||||
21 | involve either reimbursement for parts used in warranty | ||||||
22 | repairs or the use
of a Uniform Time Standards Manual, or both. | ||||||
23 | Reimbursement for parts under the
agreement shall be used | ||||||
24 | instead of the franchisees' "prevailing retail price
charged | ||||||
25 | by that dealer for the same parts" as defined in this Section | ||||||
26 | to
calculate compensation due from the franchiser for parts |
| |||||||
| |||||||
1 | used in warranty
repairs. This Section does not authorize a | ||||||
2 | franchiser and its Illinois
franchisees to establish a uniform | ||||||
3 | hourly labor reimbursement.
| ||||||
4 | Each franchiser shall only have one such agreement with | ||||||
5 | each line make.
Any such agreement shall:
| ||||||
6 | (A) Establish a uniform parts reimbursement rate. The | ||||||
7 | uniform parts
reimbursement rate shall be greater than the | ||||||
8 | franchiser's nationally
established
parts reimbursement | ||||||
9 | rate in effect at the time the first such agreement | ||||||
10 | becomes
effective; however, any subsequent agreement shall | ||||||
11 | result in a uniform
reimbursement rate that is greater or | ||||||
12 | equal to the rate set forth in the
immediately prior | ||||||
13 | agreement.
| ||||||
14 | (B) Apply to all warranty repair orders written during | ||||||
15 | the period that
the agreement is effective.
| ||||||
16 | (C) Be available, during the period it is effective, | ||||||
17 | to any motor
vehicle franchisee of the same line make at | ||||||
18 | any time and on the same terms.
| ||||||
19 | (D) Be for a term not to exceed 3 years so long as any | ||||||
20 | party to the
agreement may terminate the agreement upon | ||||||
21 | the annual anniversary of the
agreement and with 30 days' | ||||||
22 | prior written notice; however, the agreement shall
remain | ||||||
23 | in effect for the term of the agreement regardless of the | ||||||
24 | number of
dealers of the same line make that may terminate | ||||||
25 | the agreement.
| ||||||
26 | (2) A franchiser that enters into an agreement with its |
| |||||||
| |||||||
1 | franchisees
pursuant to paragraph (1) of this subsection (g) | ||||||
2 | may seek to recover its costs
from only those franchisees that | ||||||
3 | are receiving their "prevailing retail price
charged by that | ||||||
4 | dealer" under subsections (a) through (f) of this Section,
| ||||||
5 | subject to the following requirements:
| ||||||
6 | (A) "costs" means the difference between the uniform | ||||||
7 | reimbursement rate
set forth in an agreement entered into | ||||||
8 | pursuant to paragraph (1) of this
subsection (g) and the | ||||||
9 | "prevailing retail price charged by that dealer"
received | ||||||
10 | by those franchisees of the same line make. "Costs" do not | ||||||
11 | include the following: legal fees or expenses; | ||||||
12 | administrative expenses; a profit mark-up; or any other | ||||||
13 | item;
| ||||||
14 | (B) the costs shall be recovered only by increasing | ||||||
15 | the invoice price on
new vehicles received by those | ||||||
16 | franchisees; and
| ||||||
17 | (C) price increases imposed for the purpose of | ||||||
18 | recovering costs imposed
by this Section may vary from | ||||||
19 | time to time and from model to model, but shall
apply | ||||||
20 | uniformly to all franchisees of the same line make in the | ||||||
21 | State of
Illinois that have requested reimbursement for | ||||||
22 | warranty repairs at their
"prevailing retail price charged | ||||||
23 | by that dealer", except that a franchiser may
make an | ||||||
24 | exception for vehicles that are titled in the name of a | ||||||
25 | consumer in
another state.
| ||||||
26 | (3) If a franchiser contracts with its Illinois dealers |
| |||||||
| |||||||
1 | pursuant to
paragraph (1) of this subsection (g), the | ||||||
2 | franchiser shall certify under oath
to the Motor Vehicle | ||||||
3 | Review Board that a majority of the franchisees of that
line | ||||||
4 | make did agree to such an agreement and file a sample copy of | ||||||
5 | the
agreement. On an annual basis, each franchiser shall | ||||||
6 | certify under oath to
the Motor Vehicle Review Board that the | ||||||
7 | reimbursement costs it recovers under
paragraph (2) of this | ||||||
8 | subsection (g) do not exceed the amounts authorized by
| ||||||
9 | paragraph (2) of this subsection (g). The franchiser shall | ||||||
10 | maintain for a
period of 3 years a file that contains the | ||||||
11 | information upon which its
certification is based. | ||||||
12 | (3.1) A franchiser subject to subdivision (g)(2) of this | ||||||
13 | Section, upon request of a dealer subject to that subdivision, | ||||||
14 | shall disclose to the dealer, in writing or in person if | ||||||
15 | requested by the dealer, the method by which the franchiser | ||||||
16 | calculated the amount of the costs to be reimbursed by the | ||||||
17 | dealer. The franchiser shall also provide aggregate data | ||||||
18 | showing (i) the total costs the franchiser incurred and (ii) | ||||||
19 | the total number of new vehicles invoiced to each dealer that | ||||||
20 | received the "prevailing retail price charged by that dealer" | ||||||
21 | during the relevant period of time. In responding to a | ||||||
22 | dealer's request under this subdivision (g)(3.1), a franchiser | ||||||
23 | may not disclose any confidential or competitive information | ||||||
24 | regarding any other dealer. Any dealer who receives | ||||||
25 | information from a franchiser under this subdivision (g)(3.1) | ||||||
26 | may not disclose that information to any third party unless |
| |||||||
| |||||||
1 | the disclosure occurs in the course of a lawful proceeding | ||||||
2 | before, or upon the order of, the Motor Vehicle Review Board or | ||||||
3 | a court of competent jurisdiction.
| ||||||
4 | (4) If a franchiser and its franchisees do not enter into | ||||||
5 | an agreement
pursuant to paragraph (1) of this subsection (g), | ||||||
6 | and for any matter that is
not the subject of an agreement, | ||||||
7 | this subsection (g) shall have no effect
whatsoever.
| ||||||
8 | (5) For purposes of this subsection (g), a Uniform Time | ||||||
9 | Standard Manual
is a document created by a franchiser that | ||||||
10 | establishes the time allowances for
the diagnosis and | ||||||
11 | performance of warranty work and service. The allowances
shall | ||||||
12 | be reasonable and adequate for the work and service to be | ||||||
13 | performed.
Each franchiser shall have a reasonable and fair | ||||||
14 | process that allows a
franchisee to request a modification or | ||||||
15 | adjustment of a standard or standards
included in such a | ||||||
16 | manual. | ||||||
17 | (6) A franchiser may not take any adverse action against a | ||||||
18 | franchisee for not having executed an agreement contemplated | ||||||
19 | by this subsection (g) or for receiving the "prevailing retail | ||||||
20 | price charged by that dealer". Nothing in this subsection | ||||||
21 | shall be construed to prevent a franchiser from making a | ||||||
22 | determination of a franchisee's "prevailing retail price | ||||||
23 | charged by that dealer", as provided by this Section.
| ||||||
24 | (Source: P.A. 96-11, eff. 5-22-09.)
| ||||||
25 | (Text of Section after amendment by P.A. 102-232 )
|
| |||||||
| |||||||
1 | Sec. 6. Warranty agreements; claims; approval; payment; | ||||||
2 | written
disapproval. | ||||||
3 | (a) Every manufacturer, distributor, wholesaler, | ||||||
4 | distributor branch
or division, factory branch or division, or | ||||||
5 | wholesale branch or division
shall properly fulfill any | ||||||
6 | warranty agreement and adequately and fairly
compensate each | ||||||
7 | of its motor vehicle dealers for labor and parts.
| ||||||
8 | (b) Adequate and fair compensation requires the | ||||||
9 | manufacturer to pay each dealer no less than the amount the | ||||||
10 | retail customer pays for the same services with regard to rate | ||||||
11 | and time. | ||||||
12 | Any time guide previously agreed to by the manufacturer | ||||||
13 | and the dealer for extended warranty repairs may be used in | ||||||
14 | lieu of actual time expended. In the event that a time guide | ||||||
15 | has not been agreed to for warranty repairs, or said time guide | ||||||
16 | does not define time for an applicable warranty repair, the | ||||||
17 | manufacturer's time guide shall be used, multiplied by 1.5. | ||||||
18 | In no event shall such compensation fail to include full
| ||||||
19 | compensation for diagnostic work, as well as repair service, | ||||||
20 | labor, and
parts. Time allowances for the diagnosis and | ||||||
21 | performance of warranty
work and service shall be no less than | ||||||
22 | charged to retail customers
for the same work to be performed. | ||||||
23 | No warranty or factory compensated repairs shall be | ||||||
24 | excluded from this requirement, including recalls or other | ||||||
25 | voluntary stop-sell repairs required by the manufacturer. If a | ||||||
26 | manufacturer is required to issue a recall, the dealer will be |
| |||||||
| |||||||
1 | compensated for labor time as above stated. | ||||||
2 | Furthermore, manufacturers shall pay the dealer the same | ||||||
3 | effective labor rate (using the 100 sequential repair orders | ||||||
4 | chosen and submitted by the dealer less simple maintenance | ||||||
5 | repair orders) that the dealer receives for customer-pay | ||||||
6 | repairs. This requirement includes vehicle diagnostic times | ||||||
7 | for all warranty repairs. Additionally, if a technician is | ||||||
8 | required to communicate with a Technical Assistance | ||||||
9 | Center/Engineering/or some external manufacturer source in | ||||||
10 | order to provide a warranty repair, the manufacturer shall pay | ||||||
11 | for the time from start of communications (including hold | ||||||
12 | time) until the communication is complete. | ||||||
13 | The dealer may submit a request to the manufacturer for | ||||||
14 | warranty labor rate increases a maximum of once per calendar | ||||||
15 | year. | ||||||
16 | A claim made by a franchised motor vehicle dealer for | ||||||
17 | compensation under this Section shall be either approved or | ||||||
18 | disapproved within 30 days after the claim is submitted to the | ||||||
19 | manufacturer in the manner and on the forms the manufacturer | ||||||
20 | reasonably prescribes. An approved claim shall be paid within | ||||||
21 | 30 days after its approval. If a claim is not specifically | ||||||
22 | disapproved in writing or by electronic transmission within 30 | ||||||
23 | days after the date on which the manufacturer receives it, the | ||||||
24 | claim shall be considered to be approved and payment shall | ||||||
25 | follow within 30 days. | ||||||
26 | In no event shall compensation to a motor
vehicle dealer |
| |||||||
| |||||||
1 | for labor times and labor rates be less than the rates charged | ||||||
2 | by such
dealer for like service to retail customers for | ||||||
3 | nonwarranty service and
repairs. Additionally, the | ||||||
4 | manufacturer shall reimburse the dealer for any parts provided | ||||||
5 | in satisfaction of a warranty at the prevailing retail price | ||||||
6 | charged by that dealer for the same parts when not provided in | ||||||
7 | satisfaction of a warranty; provided that such dealer's | ||||||
8 | prevailing retail price is not unreasonable when compared with | ||||||
9 | that of the holders of motor vehicle franchises from the same | ||||||
10 | manufacturer for identical parts in the geographic area in | ||||||
11 | which the dealer is engaged in business. Additionally, the | ||||||
12 | manufacturer shall reimburse the dealer for any parts
provided | ||||||
13 | in satisfaction of a warranty at the prevailing retail price | ||||||
14 | charged
by that dealer for the same parts when sold to a retail | ||||||
15 | customer. | ||||||
16 | There shall be no reduction in payments due to | ||||||
17 | preestablished market norms or market averages.
Manufacturers | ||||||
18 | are prohibited from establishing restrictions or limitations | ||||||
19 | of customer repair frequency due to failure rate indexes or | ||||||
20 | national failure averages. | ||||||
21 | No debit reduction or charge back of any item on a warranty | ||||||
22 | repair order may be made absent a finding of fraud or illegal | ||||||
23 | actions by the dealer. | ||||||
24 | A warranty claim timely made shall not be deemed invalid | ||||||
25 | solely because unavailable parts cause additional use and | ||||||
26 | mileage on the vehicle. |
| |||||||
| |||||||
1 | If a manufacturer imposes a recall or stop sale on any new | ||||||
2 | vehicle in a dealer's inventory that prevents the sale of the | ||||||
3 | vehicle, the manufacturer shall compensate the dealer for any | ||||||
4 | interest and storage until the vehicle is repaired and made | ||||||
5 | ready for sale. | ||||||
6 | Manufacturers are not permitted to impose any form of cost | ||||||
7 | recovery fees or surcharges against a franchised auto | ||||||
8 | dealership for payments made in accordance with this Section. | ||||||
9 | All claims, either original or resubmitted, made by motor | ||||||
10 | vehicle
dealers hereunder and under Section 5 for such labor | ||||||
11 | and parts shall be either
approved or disapproved within 30 | ||||||
12 | days following their submission. All
approved claims shall be | ||||||
13 | paid within 30 days following their approval. The
motor | ||||||
14 | vehicle dealer who submits a claim which is disapproved shall | ||||||
15 | be notified
in writing of the disapproval within the same | ||||||
16 | period, and each such notice
shall state the specific grounds | ||||||
17 | upon which the disapproval is based. The
motor vehicle dealer | ||||||
18 | shall be permitted to correct and resubmit such
disapproved | ||||||
19 | claims within 30 days of receipt of disapproval. Any claims | ||||||
20 | not
specifically disapproved in writing within 30 days from | ||||||
21 | their submission shall
be deemed approved and payment shall | ||||||
22 | follow within 30 days. The manufacturer
or franchiser shall | ||||||
23 | have the right to require reasonable documentation for
claims | ||||||
24 | and to audit such claims within a one year period from the date | ||||||
25 | the
claim was paid or credit issued by the manufacturer or | ||||||
26 | franchiser, and to
charge back any false or unsubstantiated |
| |||||||
| |||||||
1 | claims. The audit and charge back
provisions of this Section | ||||||
2 | also apply to all other incentive and reimbursement
programs | ||||||
3 | for a period of one year after the date the claim was paid or | ||||||
4 | credit issued by the manufacturer or franchiser. However, the | ||||||
5 | manufacturer retains the
right to charge back any fraudulent | ||||||
6 | claim if the manufacturer establishes in
a court of competent | ||||||
7 | jurisdiction in this State that the claim is fraudulent.
| ||||||
8 | (c) The motor vehicle franchiser shall not, by agreement, | ||||||
9 | by restrictions
upon reimbursement, or otherwise, restrict the | ||||||
10 | nature and extent of services to
be rendered or parts to be | ||||||
11 | provided so that such restriction prevents the motor
vehicle | ||||||
12 | franchisee from satisfying the warranty by rendering services | ||||||
13 | in a good
and workmanlike manner and providing parts which are | ||||||
14 | required in accordance
with generally accepted standards. Any | ||||||
15 | such restriction shall constitute a
prohibited practice.
| ||||||
16 | (d) For the purposes of this Section, the "prevailing | ||||||
17 | retail price
charged by that dealer for the same parts" means | ||||||
18 | the price paid by
the motor vehicle franchisee for parts, | ||||||
19 | including all shipping and other
charges, multiplied by the | ||||||
20 | sum of 1.0 and the franchisee's average percentage
markup over | ||||||
21 | the price paid by the motor vehicle franchisee for parts | ||||||
22 | purchased
by the motor vehicle franchisee from the motor | ||||||
23 | vehicle franchiser and sold at
retail. The motor vehicle | ||||||
24 | franchisee may establish average percentage markup
under this | ||||||
25 | Section by submitting to the motor vehicle franchiser 100 | ||||||
26 | sequential
customer paid service repair orders or 90 days of |
| |||||||
| |||||||
1 | customer paid service repair
orders, whichever is less, | ||||||
2 | covering repairs made no more than 180 days before
the | ||||||
3 | submission, and declaring what the average percentage markup | ||||||
4 | is. The
average percentage markup so declared shall go into | ||||||
5 | effect 30 days following
the declaration, subject to audit of | ||||||
6 | the submitted repair orders by the motor
vehicle franchiser | ||||||
7 | and adjustment of the average percentage markup based on
that | ||||||
8 | audit. Any audit must be conducted within 30 days following | ||||||
9 | the
declaration. Only retail sales not involving warranty | ||||||
10 | repairs, parts covered
by subsection (e) of this Section, or | ||||||
11 | parts supplied for routine vehicle
maintenance, shall be | ||||||
12 | considered in calculating average percentage markup. No
motor | ||||||
13 | vehicle franchiser shall require a motor vehicle franchisee to | ||||||
14 | establish
average percentage markup by a methodology, or by | ||||||
15 | requiring information, that
is unduly burdensome or time | ||||||
16 | consuming to provide, including, but not limited
to, part by | ||||||
17 | part or transaction by transaction calculations. A motor | ||||||
18 | vehicle
franchisee shall not request a change in the average | ||||||
19 | percentage markup more
than twice in one calendar year.
| ||||||
20 | (e) If a motor vehicle franchiser supplies a part or parts | ||||||
21 | for use in a
repair rendered under a warranty other than by | ||||||
22 | sale of that part or parts to
the motor vehicle franchisee, the | ||||||
23 | motor vehicle franchisee shall be entitled to
compensation | ||||||
24 | equivalent to the motor vehicle franchisee's average | ||||||
25 | percentage
markup on the part or parts, as if the part or parts | ||||||
26 | had been sold to the motor
vehicle franchisee by the motor |
| |||||||
| |||||||
1 | vehicle franchiser. The requirements of this
subsection (e) | ||||||
2 | shall not apply to entire engine assemblies , propulsion engine | ||||||
3 | assemblies, including electric vehicle batteries, and entire | ||||||
4 | transmission assemblies. In the case of those assemblies, the | ||||||
5 | motor vehicle franchiser shall reimburse the motor vehicle | ||||||
6 | franchisee up to and including 30% of what the motor vehicle | ||||||
7 | franchisee would have paid the motor vehicle franchiser for | ||||||
8 | the assembly if the assembly had not been supplied by the | ||||||
9 | franchiser other than by the sale of that assembly to the motor | ||||||
10 | vehicle franchisee and entire
transmission
assemblies .
| ||||||
11 | (f) The obligations imposed on motor vehicle franchisers | ||||||
12 | by this Section
shall apply to any parent, subsidiary, | ||||||
13 | affiliate, or agent of the motor vehicle
franchiser, any | ||||||
14 | person under common ownership or control, any employee of the
| ||||||
15 | motor vehicle franchiser, and any person holding 1% or more of | ||||||
16 | the shares of
any class of securities or other ownership | ||||||
17 | interest in the motor vehicle
franchiser, if a warranty or | ||||||
18 | service or repair plan is issued by that person
instead of or | ||||||
19 | in addition to one issued by the motor vehicle franchiser.
| ||||||
20 | (g) (Blank).
| ||||||
21 | (Source: P.A. 102-232, eff. 1-1-22.)
| ||||||
22 | Section 995. No acceleration or delay. Where this Act | ||||||
23 | makes changes in a statute that is represented in this Act by | ||||||
24 | text that is not yet or no longer in effect (for example, a | ||||||
25 | Section represented by multiple versions), the use of that |
| |||||||
| |||||||
1 | text does not accelerate or delay the taking effect of (i) the | ||||||
2 | changes made by this Act or (ii) provisions derived from any | ||||||
3 | other Public Act.
| ||||||
4 | Section 999. Effective date. This Act takes effect upon | ||||||
5 | becoming law.
|