Sen. Celina Villanueva

Filed: 1/10/2023

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3107

2    AMENDMENT NO. ______. Amend House Bill 3107 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Invest in Illinois Act.
 
6    Section 5. Purpose. The General Assembly finds that the
7State must encourage and promote the retention and expansion
8of existing businesses and industry within the State and
9recruit and attract new businesses and industry to the State
10by providing businesses with ready access to the capital and
11incentives needed to stimulate economic activity and create
12new jobs.
 
13    Section 10. Definitions. As used in this Act:
14    "Agreement" means an agreement between an applicant and
15the Department under Section 30 of this Act.

 

 

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1    "Applicant" means a taxpayer that operates or plans to
2operate an eligible business in the State.
3    "Business" means a sole proprietorship, partnership,
4corporation, or limited liability company.
5    "Capital improvement" means (i) the purchase, renovation,
6rehabilitation, or construction, at an approved project site
7in the State, of land, buildings, structures, equipment, or
8furnishings and (ii) goods or services that are normally
9capitalized, including organizational costs and research and
10development costs incurred in Illinois. "Capital improvement"
11does not include land, buildings, structures, and equipment
12that are leased, unless the term of the lease equals or exceeds
13the term of the agreement. For land, buildings, structures,
14and equipment that are leased and are considered capital
15improvements, the cost of the property shall be determined
16from the present value of the lease payments, using the
17corporate interest rate prevailing at the time of the
18application.
19    "Capital investment" means the expenditure of money for
20capital improvements.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Director" means the Director of Commerce and Economic
24Opportunity.
25    "Eligible business" means a business that is engaged in
26manufacturing, processing, assembling, warehousing, or

 

 

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1distributing products, conducting research and development,
2providing tourism services, or providing commercial services
3in office industries or agricultural processing. "Eligible
4business" does not include a retailer or a provider of health
5services or professional services.
6    "Full-time employee" means an individual who is employed
7for consideration for at least 35 hours each week or who
8renders any other standard of service generally accepted by
9industry custom or practice as full-time employment. Annually
10scheduled periods for inventory or repairs, vacations,
11holidays, and paid time for sick leave, vacation, or other
12leave shall be included in this computation of full-time
13employment. An individual for whom a W-2 is issued by a
14Professional Employer Organization is a full-time employee if
15employed in the service of the applicant for consideration for
16at least 35 hours each week.
17    "Project" means for-profit economic development activity
18or activities at a single site. For-profit economic
19development activity or activities of one or more taxpayers at
20multiple sites may be considered a project if the economic
21activities are vertically integrated and designated by the
22Department as a project and as the subject of an agreement that
23includes capital improvement requirements and job creation
24requirements and, if applicable, job retention requirements
25for the project location or locations. The employees subject
26to the agreement must be assigned to a specific project

 

 

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1location and work there as their primary location.
2    "Qualified investment" means investment in this State
3related to a project subject to an agreement under this Act.
4    "Taxpayer" means a business that is subject to any tax or
5fee collected by the Department of Revenue or that will be
6subject to any tax or fee collected by the Department of
7Revenue upon the location of the business in the State.
 
8    Section 15. Eligibility.
9    (a) The Department may make non-competitive economic
10incentive awards, including, but not limited to, grants and
11loans, to assist applicants that pledge to make capital
12investments and create new jobs in this State or retain jobs in
13this State.
14    (b) To qualify for economic incentives under this Act, an
15applicant must:
16        (1) be in good standing under the laws of this State
17    and the laws of all other states where the applicant was
18    formed or is organized; and
19        (2) owe no delinquent taxes to the State.
20    (c) The Department may not award economic incentives to an
21applicant that (i) closes operations at one location in the
22State or reduces those operations by more than 50% and (ii)
23relocates substantially the same operations to another
24location in the State. This prohibition does not apply if (i)
25the applicant moves its operations from one location in the

 

 

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1State to another location in the State for the purpose of
2expanding its operations in the State and (ii) the Department
3determines that expansion could not reasonably be accommodated
4within the municipality or county where the business was
5located prior to the relocation. In making its determination,
6the Department shall confer with the chief executive officer
7of the municipality or county where the business was located
8prior to the relocation and take into consideration any
9evidence offered by the municipality or county regarding its
10ability to accommodate expansion within the municipality or
11county.
12    (d) Notwithstanding subsection (c), the Department shall
13not award economic incentives to a professional sports
14organization that moves its operations from one location in
15the State to another location in the State.
16    (e) Nothing in this Act will diminish or remove diversity,
17equity, inclusion, or jobs goals and commitments in other
18State Programs related to any development project supported by
19this Act.
 
20    Section 20. Application. An applicant seeking an economic
21incentive under this Act shall submit a detailed application
22to the Department. The application must, at a minimum, contain
23the following information:
24        (1) the location of the project;
25        (2) the amount of the capital investment the applicant

 

 

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1    will make in the project;
2        (3) the number of new jobs that will be created as a
3    result of the project;
4        (4) the number of jobs retained by an existing
5    applicant; and
6        (5) the average salary of the jobs to be created or
7    retained.
 
8    Section 25. Review of application. The Department shall
9determine which projects will benefit the State and are
10eligible to receive an economic incentive under this Act. In
11making this determination, the Department may consider:
12        (1) the number of jobs to be created by the applicant;
13        (2) the number of jobs to be retained by the
14    applicant;
15        (3) the average salary of jobs created by the
16    applicant;
17        (4) the average salary of jobs retained by the
18    applicant;
19        (5) the total capital investment to be made by the
20    applicant;
21        (6) the likelihood of other businesses locating within
22    the same vicinity or within the State as a result of the
23    business activity to be conducted by the applicant
24    receiving the economic incentive;
25        (7) the impact on the economy of the area or community

 

 

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1    where the project is located; and
2        (8) any other factors the Department determines to be
3    relevant to accomplish the purposes of this Act.
 
4    Section 30. Agreement.
5    (a) Upon approval of an application under this Act, the
6Department shall enter into an agreement with the applicant
7that shall include, at a minimum, the following:
8        (1) a detailed description of the project that is the
9    subject of the agreement, as well as the performance
10    conditions, including the required amount of capital
11    investment and the number of jobs required to be created
12    or retained;
13        (2) the performance conditions that must be met to
14    obtain the award, including, but not limited to, the
15    number of new jobs created, the average salary, and the
16    total capital investment;
17        (3) the schedule of payments;
18        (4) a requirement that the applicant maintain
19    operations at the project location for a minimum number of
20    years;
21        (5) a specific method for determining the number of
22    new employees and, if applicable, the number of retained
23    employees, to be employed during each taxable year covered
24    by the agreement;
25        (6) a requirement that the taxpayer annually report to

 

 

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1    the Department the number of new employees and any other
2    information the Department deems necessary and appropriate
3    to perform its duties under this Act;
4        (7) a detailed description of the number of new
5    employees to be hired and the occupation and payroll of
6    full-time jobs to be created or retained because of the
7    project;
8        (8) the minimum capital investment the taxpayer will
9    make, the time period for placing the property in service,
10    and the designated location in Illinois for the capital
11    investment;
12        (9) a requirement that the taxpayer provide written
13    notice to the Director and the Director's designee not
14    more than 30 days after the taxpayer determines that the
15    minimum job creation, job retention, employment payroll,
16    or capital investment is no longer or will no longer be
17    achieved or maintained as required in the agreement and
18    include in that notice the number of layoffs, the date of
19    the layoffs, and the taxpayer's efforts to provide career
20    and training counseling to the impacted workers with
21    industry-related certifications and trainings;
22        (10) a claw-back provision to recapture incentive
23    amounts for failure to meet the provisions contained in
24    the agreement; and
25        (11) a provision that the agreement shall not take
26    effect, nor may any funds be expended or transferred under

 

 

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1    the agreement, if the Department fails to comply with the
2    notification requirements under Section 32 or if the
3    Speaker of the House of Representatives or the Senate
4    President (or their designees, if applicable) submit a
5    letter of rejection under Section 32.
6    (b) Subject to the provisions of Section 32, the
7Department may issue the incentive to the applicant within the
8time period the Department deems appropriate in order to
9ensure that the applicant achieves the performance conditions
10set forth in the agreement.
 
11    Section 32. General Assembly notification. The Department
12shall notify the President of the Senate, or his or her
13designee, and the Speaker of the House of Representatives, or
14his or her designee, when awards for the purposes of this Act
15are nearing final negotiation with an applicant. The
16notification shall include the prospective amount of the award
17and other relevant information related to the application. The
18President of the Senate and the Speaker of the House, or their
19designees, if applicable, shall certify that they have been
20notified of the planned awards and that they do not object. If
21there is no objection certified from the President of the
22Senate and the Speaker of the House, the Department may enter
23into an agreement under this Act for the award amount
24contained in the notification. If the Department enters into
25an agreement under this Act for an award in an amount that is

 

 

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1different than the amount contained in the notification, it
2shall deliver a copy of the agreement to both the Speaker of
3the House of Representatives, or his or her designee, and the
4Senate President, or his or her designee, within 2 days after
5the agreement is executed. Notwithstanding any other provision
6of this Act, an agreement entered into under this Act shall not
7take effect, nor may any funds be expended or transferred
8under that agreement, if the Speaker of the House of
9Representatives and the Senate President, or their designees,
10if applicable, submit a letter to the Department noting an
11objection to the agreement in writing within 2 days after the
12notification is delivered to the Speaker of the House of
13Representatives and the Senate President, or their designees,
14if applicable.
 
15    Section 35. Penalties.
16    (a) If the applicant fails to comply with the performance
17conditions set forth in an agreement entered into under this
18Act, then the applicant may be required to repay some or all of
19the grant, loan, or other economic incentive awarded to the
20applicant, along with any applicable interest to the State at
21the agreed upon rate and on the agreed terms set forth in the
22agreement.
23    (b) The Department may also assess specified penalties for
24noncompliance against the applicant. Those penalties shall be
25contained in the Agreement.

 

 

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1    (c) If the applicant fails to comply with the terms of an
2agreement, then the State may:
3        (1) obtain a lien or other interest in the capital
4    improvements in proportion to the percentage of the
5    incentive amount used to pay for those capital
6    improvements; and
7        (2) require the recipient of the incentive, if the
8    capital improvements are sold, to:
9            (A) repay to the State the funds used to pay for
10        the capital improvement, with interest at the rate and
11        according to the other terms provided by the
12        agreement; and
13            (B) share with the State a proportionate amount of
14        any profit realized from the sale.
 
15    Section 40. Powers of the Department. The Department, in
16addition to those powers granted under the Civil
17Administrative Code of Illinois, is granted and shall have all
18the powers necessary or convenient to administer the program
19established under this Act and to carry out and effectuate the
20purposes and provisions of this Act, including, but not
21limited to, the power and authority to:
22        (1) adopt emergency and permanent rules deemed
23    necessary and appropriate for the administration of this
24    Act;
25        (2) establish forms for applications, notifications,

 

 

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1    contracts, or any other agreements and accept applications
2    at any time during the year;
3        (3) assist applicants pursuant to the provisions of
4    this Act and cooperate with taxpayers that are parties to
5    agreements under this Act to promote, foster, and support
6    economic development, capital investment, and job creation
7    and retention within the State;
8        (4) establish, negotiate, and effectuate agreements
9    and other documents and terms with any person as necessary
10    or appropriate to accomplish the purposes of this Act and
11    to consent, subject to the provisions of an agreement with
12    another party, to the modification or restructuring of any
13    agreement to which the Department is a party;
14        (5) provide for sufficient personnel to permit
15    administration, staffing, operation, and related support
16    required to adequately discharge its duties and
17    responsibilities described in this Act from funds made
18    available through charges to applicants or from funds as
19    may be appropriated by the General Assembly for the
20    administration of this Act;
21        (6) take whatever actions are necessary or appropriate
22    to protect the State's interest in the event of
23    bankruptcy, default, foreclosure, or noncompliance with
24    the terms and conditions of financial assistance or
25    participation required under this Act, including the power
26    to sell, dispose, lease, or rent, upon terms and

 

 

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1    conditions determined by the Director to be appropriate,
2    real or personal property that the Department may receive
3    as a result of these actions.
 
4    Section 45. Annual report. On or before July 1 of each
5year, the Department shall submit to the General Assembly and
6the Governor a report on the program established under this
7Act. The report shall include information on the number of
8agreements that were entered into under this Act during the
9preceding calendar year, a description of the project that is
10the subject of each agreement, an update on the status of
11projects under agreements entered into before the preceding
12calendar year, and the amount of funds awarded under this Act.
13    The report must include, for each agreement:
14        (1) the number of new jobs to be created and, if
15    applicable, the number of retained jobs;
16        (2) any relevant modifications to existing agreements;
17        (3) a statement of the progress made by each applicant
18    in meeting the terms of the original agreement;
19        (4) a statement of wages paid to full-time employees
20    and, if applicable, retained employees in the State; and
21        (5) a copy of the original agreement or a link to the
22    agreement on the Department's website.
 
23    Section 50. Statutory exemptions. Awards of economic
24incentives made pursuant to this Act are exempt from the

 

 

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1Corporate Accountability for Tax Expenditures Act, the
2Illinois Works Jobs Program Act, and Section 45 of the State
3Finance Act, and any rules adopted under those authorities. In
4addition, non-competitive awards of economic incentives made
5pursuant to this Act are exempt from the public notice of
6funding opportunity (NOFO), merit review, audit, and grant
7payment method provisions of the Grant Accountability and
8Transparency Act (GATA) and the corresponding GATA rules
9associated with NOFOs, merit reviews, audits, and grant
10payment methods.
 
11    Section 55. Vendor diversity report. Each applicant shall,
12no later than April 15 of each taxable year for which an
13agreement under this Act between the applicant and the
14Department is in effect, report on the diversity of the
15vendors used by the applicant. The report shall be published
16on the Department's website and shall include the following
17information:
18        (1) a point of contact for potential vendors to
19    register with the applicant's project;
20        (2) certifications that the applicant accepts or
21    recognizes for minority-owned businesses and women-owned
22    businesses as entities;
23        (3) the applicant's goals to contract with diverse
24    vendors, if any, for the next fiscal year for the entire
25    budget of the applicant's project;

 

 

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1        (4) for the last fiscal year, the actual contractual
2    spending for the entire budget of the project and the
3    actual spending for minority-owned businesses and
4    women-owned businesses, expressed as a percentage of the
5    total budget for actual spending for the project;
6        (5) a narrative explaining the results of the report
7    and the applicant's plan to address the voluntary goals
8    for the next fiscal year; and
9        (6) a copy of the applicant'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-owned businesses and
13    women-owned businesses, if the applicant is a federal
14    contractor and is required by the federal government to
15    submit that information to the federal government.
 
16    Section 900. The Illinois Administrative Procedure Act is
17amended by adding Section 5-45.35 as follows:
 
18    (5 ILCS 100/5-45.35 new)
19    Sec. 5-45.35. Emergency rulemaking. To provide for the
20expeditious and timely implementation of the Invest in
21Illinois Act, emergency rules implementing the Invest in
22Illinois Act may be adopted in accordance with Section 5-45 by
23the Department of Commerce and Economic Opportunity. The
24adoption of emergency rules authorized by Section 5-45 and

 

 

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1this Section is deemed to be necessary for the public
2interest, safety, and welfare.
3    This Section is repealed one year after the effective date
4of this amendatory Act of the 102nd General Assembly.
 
5    Section 905. The Illinois Enterprise Zone Act is amended
6by changing Sections 4, 5.5, and 6 as follows:
 
7    (20 ILCS 655/4)  (from Ch. 67 1/2, par. 604)
8    Sec. 4. Qualifications for enterprise zones.
9    (1) An area is qualified to become an enterprise zone
10which:
11        (a) is a contiguous area, provided that a zone area
12    may exclude wholly surrounded territory within its
13    boundaries;
14        (b) comprises a minimum of one-half square mile and
15    not more than 14 12 square miles, or 20 15 square miles if
16    the zone is located within the jurisdiction of 4 or more
17    counties or municipalities, in total area, exclusive of
18    lakes and waterways; however, in such cases where the
19    enterprise zone is a joint effort of three or more units of
20    government, or two or more units of government if situated
21    in a township which is divided by a municipality of
22    1,000,000 or more inhabitants, and where the certification
23    has been in effect at least one year, the total area shall
24    comprise a minimum of one-half square mile and not more

 

 

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1    than 16 thirteen square miles in total area exclusive of
2    lakes and waterways;
3        (c) (blank);
4        (d) (blank);
5        (e) is (1) entirely within a municipality or (2)
6    entirely within the unincorporated areas of a county,
7    except where reasonable need is established for such zone
8    to cover portions of more than one municipality or county
9    or (3) both comprises (i) all or part of a municipality and
10    (ii) an unincorporated area of a county; and
11        (f) meets 3 or more of the following criteria:
12            (1) all or part of the local labor market area has
13        had an annual average unemployment rate of at least
14        120% of the State's annual average unemployment rate
15        for the most recent calendar year or the most recent
16        fiscal year as reported by the Department of
17        Employment Security;
18            (2) designation will result in the development of
19        substantial employment opportunities by creating or
20        retaining a minimum aggregate of 1,000 full-time
21        equivalent jobs due to an aggregate investment of
22        $100,000,000 or more, and will help alleviate the
23        effects of poverty and unemployment within the local
24        labor market area;
25            (3) all or part of the local labor market area has
26        a poverty rate of at least 20% according to American

 

 

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1        Community Survey; 35% or more of families with
2        children in the area are living below 130% of the
3        poverty line, according to the latest American
4        Community Survey; or 20% or more households in the
5        local labor market area receive food stamps or
6        assistance under Supplemental Nutrition Assistance
7        Program ("SNAP") according to the latest American
8        Community Survey;
9            (4) an abandoned coal mine, a brownfield (as
10        defined in Section 58.2 of the Environmental
11        Protection Act), or an inactive nuclear-powered
12        electrical generation facility where spent nuclear
13        fuel is stored on-site is located in the proposed zone
14        area, or all or a portion of the proposed zone was
15        declared a federal disaster area in the 3 years
16        preceding the date of application;
17            (5) the local labor market area contains a
18        presence of large employers that have downsized over
19        the years, the labor market area has experienced plant
20        closures in the 5 years prior to the date of
21        application affecting more than 50 workers, or the
22        local labor market area has experienced State or
23        federal facility closures in the 5 years prior to the
24        date of application affecting more than 50 workers;
25            (6) based on data from Multiple Listing Service
26        information or other suitable sources, the local labor

 

 

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1        market area contains a high floor vacancy rate of
2        industrial or commercial properties, vacant or
3        demolished commercial and industrial structures are
4        prevalent in the local labor market area, or
5        industrial structures in the local labor market area
6        are not used because of age, deterioration, relocation
7        of the former occupants, or cessation of operation;
8            (7) the applicant demonstrates a substantial plan
9        for using the designation to improve the State and
10        local government tax base, including income, sales,
11        and property taxes, including a plan for disposal of
12        publicly-owned real property by the methods described
13        in Section 10 of this Act;
14            (8) significant public infrastructure is present
15        in the local labor market area in addition to a plan
16        for infrastructure development and improvement;
17            (9) high schools or community colleges located
18        within the local labor market area are engaged in ACT
19        Work Keys, Manufacturing Skills Standard
20        Certification, or other industry-based credentials
21        that prepare students for careers;
22            (10) (blank); or
23            (11) the applicant demonstrates a substantial plan
24        for using the designation to encourage: (i)
25        participation by businesses owned by minorities,
26        women, and persons with disabilities, as those terms

 

 

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1        are defined in the Business Enterprise for Minorities,
2        Women, and Persons with Disabilities Act; and (ii) the
3        hiring of minorities, women, and persons with
4        disabilities.
5    As provided in Section 10-5.3 of the River Edge
6Redevelopment Zone Act, upon the expiration of the term of
7each River Edge Redevelopment Zone in existence on August 7,
82012 (the effective date of Public Act 97-905), that River
9Edge Redevelopment Zone will become available for its previous
10designee or a new applicant to compete for designation as an
11enterprise zone. No preference for designation will be given
12to the previous designee of the zone.
13    (2) Any criteria established by the Department or by law
14which utilize the rate of unemployment for a particular area
15shall provide that all persons who are not presently employed
16and have exhausted all unemployment benefits shall be
17considered unemployed, whether or not such persons are
18actively seeking employment.
19(Source: P.A. 101-81, eff. 7-12-19; 102-108, eff. 1-1-22.)
 
20    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
21    Sec. 5.5. High Impact Business.
22    (a) In order to respond to unique opportunities to assist
23in the encouragement, development, growth, and expansion of
24the private sector through large scale investment and
25development projects, the Department is authorized to receive

 

 

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1and approve applications for the designation of "High Impact
2Businesses" in Illinois, for an initial term of 20 years with
3an option for renewal for a term not to exceed 20 years,
4subject to the following conditions:
5        (1) such applications may be submitted at any time
6    during the year;
7        (2) such business is not located, at the time of
8    designation, in an enterprise zone designated pursuant to
9    this Act;
10        (3) the business intends to do one or more of the
11    following:
12            (A) the business intends to make a minimum
13        investment of $12,000,000 which will be placed in
14        service in qualified property and intends to create
15        500 full-time equivalent jobs at a designated location
16        in Illinois or intends to make a minimum investment of
17        $30,000,000 which will be placed in service in
18        qualified property and intends to retain 1,500
19        full-time retained jobs at a designated location in
20        Illinois. The business must certify in writing that
21        the investments would not be placed in service in
22        qualified property and the job creation or job
23        retention would not occur without the tax credits and
24        exemptions set forth in subsection (b) of this
25        Section. The terms "placed in service" and "qualified
26        property" have the same meanings as described in

 

 

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1        subsection (h) of Section 201 of the Illinois Income
2        Tax Act; or
3            (B) the business intends to establish a new
4        electric generating facility at a designated location
5        in Illinois. "New electric generating facility", for
6        purposes of this Section, means a newly constructed
7        electric generation plant or a newly constructed
8        generation capacity expansion at an existing electric
9        generation plant, including the transmission lines and
10        associated equipment that transfers electricity from
11        points of supply to points of delivery, and for which
12        such new foundation construction commenced not sooner
13        than July 1, 2001. Such facility shall be designed to
14        provide baseload electric generation and shall operate
15        on a continuous basis throughout the year; and (i)
16        shall have an aggregate rated generating capacity of
17        at least 1,000 megawatts for all new units at one site
18        if it uses natural gas as its primary fuel and
19        foundation construction of the facility is commenced
20        on or before December 31, 2004, or shall have an
21        aggregate rated generating capacity of at least 400
22        megawatts for all new units at one site if it uses coal
23        or gases derived from coal as its primary fuel and
24        shall support the creation of at least 150 new
25        Illinois coal mining jobs, or (ii) shall be funded
26        through a federal Department of Energy grant before

 

 

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1        December 31, 2010 and shall support the creation of
2        Illinois coal-mining jobs, or (iii) shall use coal
3        gasification or integrated gasification-combined cycle
4        units that generate electricity or chemicals, or both,
5        and shall support the creation of Illinois coal-mining
6        jobs. The business must certify in writing that the
7        investments necessary to establish a new electric
8        generating facility would not be placed in service and
9        the job creation in the case of a coal-fueled plant
10        would not occur without the tax credits and exemptions
11        set forth in subsection (b-5) of this Section. The
12        term "placed in service" has the same meaning as
13        described in subsection (h) of Section 201 of the
14        Illinois Income Tax Act; or
15            (B-5) the business intends to establish a new
16        gasification facility at a designated location in
17        Illinois. As used in this Section, "new gasification
18        facility" means a newly constructed coal gasification
19        facility that generates chemical feedstocks or
20        transportation fuels derived from coal (which may
21        include, but are not limited to, methane, methanol,
22        and nitrogen fertilizer), that supports the creation
23        or retention of Illinois coal-mining jobs, and that
24        qualifies for financial assistance from the Department
25        before December 31, 2010. A new gasification facility
26        does not include a pilot project located within

 

 

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1        Jefferson County or within a county adjacent to
2        Jefferson County for synthetic natural gas from coal;
3        or
4            (C) the business intends to establish production
5        operations at a new coal mine, re-establish production
6        operations at a closed coal mine, or expand production
7        at an existing coal mine at a designated location in
8        Illinois not sooner than July 1, 2001; provided that
9        the production operations result in the creation of
10        150 new Illinois coal mining jobs as described in
11        subdivision (a)(3)(B) of this Section, and further
12        provided that the coal extracted from such mine is
13        utilized as the predominant source for a new electric
14        generating facility. The business must certify in
15        writing that the investments necessary to establish a
16        new, expanded, or reopened coal mine would not be
17        placed in service and the job creation would not occur
18        without the tax credits and exemptions set forth in
19        subsection (b-5) of this Section. The term "placed in
20        service" has the same meaning as described in
21        subsection (h) of Section 201 of the Illinois Income
22        Tax Act; or
23            (D) the business intends to construct new
24        transmission facilities or upgrade existing
25        transmission facilities at designated locations in
26        Illinois, for which construction commenced not sooner

 

 

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1        than July 1, 2001. For the purposes of this Section,
2        "transmission facilities" means transmission lines
3        with a voltage rating of 115 kilovolts or above,
4        including associated equipment, that transfer
5        electricity from points of supply to points of
6        delivery and that transmit a majority of the
7        electricity generated by a new electric generating
8        facility designated as a High Impact Business in
9        accordance with this Section. The business must
10        certify in writing that the investments necessary to
11        construct new transmission facilities or upgrade
12        existing transmission facilities would not be placed
13        in service without the tax credits and exemptions set
14        forth in subsection (b-5) of this Section. The term
15        "placed in service" has the same meaning as described
16        in subsection (h) of Section 201 of the Illinois
17        Income Tax Act; or
18            (E) the business intends to establish a new wind
19        power facility at a designated location in Illinois.
20        For purposes of this Section, "new wind power
21        facility" means a newly constructed electric
22        generation facility, a newly constructed expansion of
23        an existing electric generation facility, or the
24        replacement of an existing electric generation
25        facility, including the demolition and removal of an
26        electric generation facility irrespective of whether

 

 

10200HB3107sam001- 26 -LRB102 15737 HLH 42605 a

1        it will be replaced, placed in service or replaced on
2        or after July 1, 2009, that generates electricity
3        using wind energy devices, and such facility shall be
4        deemed to include any permanent structures associated
5        with the electric generation facility and all
6        associated transmission lines, substations, and other
7        equipment related to the generation of electricity
8        from wind energy devices. For purposes of this
9        Section, "wind energy device" means any device, with a
10        nameplate capacity of at least 0.5 megawatts, that is
11        used in the process of converting kinetic energy from
12        the wind to generate electricity; or
13            (E-5) the business intends to establish a new
14        utility-scale solar facility at a designated location
15        in Illinois. For purposes of this Section, "new
16        utility-scale solar power facility" means a newly
17        constructed electric generation facility, or a newly
18        constructed expansion of an existing electric
19        generation facility, placed in service on or after
20        July 1, 2021, that (i) generates electricity using
21        photovoltaic cells and (ii) has a nameplate capacity
22        that is greater than 5,000 kilowatts, and such
23        facility shall be deemed to include all associated
24        transmission lines, substations, energy storage
25        facilities, and other equipment related to the
26        generation and storage of electricity from

 

 

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1        photovoltaic cells; or
2            (F) the business commits to (i) make a minimum
3        investment of $500,000,000, which will be placed in
4        service in a qualified property, (ii) create 125
5        full-time equivalent jobs at a designated location in
6        Illinois, (iii) establish a fertilizer plant at a
7        designated location in Illinois that complies with the
8        set-back standards as described in Table 1: Initial
9        Isolation and Protective Action Distances in the 2012
10        Emergency Response Guidebook published by the United
11        States Department of Transportation, (iv) pay a
12        prevailing wage for employees at that location who are
13        engaged in construction activities, and (v) secure an
14        appropriate level of general liability insurance to
15        protect against catastrophic failure of the fertilizer
16        plant or any of its constituent systems; in addition,
17        the business must agree to enter into a construction
18        project labor agreement including provisions
19        establishing wages, benefits, and other compensation
20        for employees performing work under the project labor
21        agreement at that location; for the purposes of this
22        Section, "fertilizer plant" means a newly constructed
23        or upgraded plant utilizing gas used in the production
24        of anhydrous ammonia and downstream nitrogen
25        fertilizer products for resale; for the purposes of
26        this Section, "prevailing wage" means the hourly cash

 

 

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1        wages plus fringe benefits for training and
2        apprenticeship programs approved by the U.S.
3        Department of Labor, Bureau of Apprenticeship and
4        Training, health and welfare, insurance, vacations and
5        pensions paid generally, in the locality in which the
6        work is being performed, to employees engaged in work
7        of a similar character on public works; this paragraph
8        (F) applies only to businesses that submit an
9        application to the Department within 60 days after
10        July 25, 2013 (the effective date of Public Act
11        98-109); and
12        (4) no later than 90 days after an application is
13    submitted, the Department shall notify the applicant of
14    the Department's determination of the qualification of the
15    proposed High Impact Business under this Section.
16    (b) Businesses designated as High Impact Businesses
17pursuant to subdivision (a)(3)(A) of this Section shall
18qualify for the credits and exemptions described in the
19following Acts: Section 9-222 and Section 9-222.1A of the
20Public Utilities Act, subsection (h) of Section 201 of the
21Illinois Income Tax Act, and Section 1d of the Retailers'
22Occupation Tax Act; provided that these credits and exemptions
23described in these Acts shall not be authorized until the
24minimum investments set forth in subdivision (a)(3)(A) of this
25Section have been placed in service in qualified properties
26and, in the case of the exemptions described in the Public

 

 

10200HB3107sam001- 29 -LRB102 15737 HLH 42605 a

1Utilities Act and Section 1d of the Retailers' Occupation Tax
2Act, the minimum full-time equivalent jobs or full-time
3retained jobs set forth in subdivision (a)(3)(A) of this
4Section have been created or retained. Businesses designated
5as High Impact Businesses under this Section shall also
6qualify for the exemption described in Section 5l of the
7Retailers' Occupation Tax Act. The credit provided in
8subsection (h) of Section 201 of the Illinois Income Tax Act
9shall be applicable to investments in qualified property as
10set forth in subdivision (a)(3)(A) of this Section.
11    (b-5) Businesses designated as High Impact Businesses
12pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
13and (a)(3)(D) of this Section shall qualify for the credits
14and exemptions described in the following Acts: Section 51 of
15the Retailers' Occupation Tax Act, Section 9-222 and Section
169-222.1A of the Public Utilities Act, and subsection (h) of
17Section 201 of the Illinois Income Tax Act; however, the
18credits and exemptions authorized under Section 9-222 and
19Section 9-222.1A of the Public Utilities Act, and subsection
20(h) of Section 201 of the Illinois Income Tax Act shall not be
21authorized until the new electric generating facility, the new
22gasification facility, the new transmission facility, or the
23new, expanded, or reopened coal mine is operational, except
24that a new electric generating facility whose primary fuel
25source is natural gas is eligible only for the exemption under
26Section 5l of the Retailers' Occupation Tax Act.

 

 

10200HB3107sam001- 30 -LRB102 15737 HLH 42605 a

1    (b-6) Businesses designated as High Impact Businesses
2pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
3Section shall qualify for the exemptions described in Section
45l of the Retailers' Occupation Tax Act; any business so
5designated as a High Impact Business being, for purposes of
6this Section, a "Wind Energy Business".
7    (b-7) Beginning on January 1, 2021, businesses designated
8as High Impact Businesses by the Department shall qualify for
9the High Impact Business construction jobs credit under
10subsection (h-5) of Section 201 of the Illinois Income Tax Act
11if the business meets the criteria set forth in subsection (i)
12of this Section. The total aggregate amount of credits awarded
13under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
14shall not exceed $20,000,000 in any State fiscal year.
15    (c) High Impact Businesses located in federally designated
16foreign trade zones or sub-zones are also eligible for
17additional credits, exemptions and deductions as described in
18the following Acts: Section 9-221 and Section 9-222.1 of the
19Public Utilities Act; and subsection (g) of Section 201, and
20Section 203 of the Illinois Income Tax Act.
21    (d) Except for businesses contemplated under subdivision
22(a)(3)(E) or (a)(3)(E-5) of this Section, existing Illinois
23businesses which apply for designation as a High Impact
24Business must provide the Department with the prospective plan
25for which 1,500 full-time retained jobs would be eliminated in
26the event that the business is not designated.

 

 

10200HB3107sam001- 31 -LRB102 15737 HLH 42605 a

1    (e) Except for new wind power facilities contemplated
2under subdivision (a)(3)(E) of this Section, new proposed
3facilities which apply for designation as High Impact Business
4must provide the Department with proof of alternative
5non-Illinois sites which would receive the proposed investment
6and job creation in the event that the business is not
7designated as a High Impact Business.
8    (f) Except for businesses contemplated under subdivision
9(a)(3)(E) of this Section, in the event that a business is
10designated a High Impact Business and it is later determined
11after reasonable notice and an opportunity for a hearing as
12provided under the Illinois Administrative Procedure Act, that
13the business would have placed in service in qualified
14property the investments and created or retained the requisite
15number of jobs without the benefits of the High Impact
16Business designation, the Department shall be required to
17immediately revoke the designation and notify the Director of
18the Department of Revenue who shall begin proceedings to
19recover all wrongfully exempted State taxes with interest. The
20business shall also be ineligible for all State funded
21Department programs for a period of 10 years.
22    (g) The Department shall revoke a High Impact Business
23designation if the participating business fails to comply with
24the terms and conditions of the designation.
25    (h) Prior to designating a business, the Department shall
26provide the members of the General Assembly and Commission on

 

 

10200HB3107sam001- 32 -LRB102 15737 HLH 42605 a

1Government Forecasting and Accountability with a report
2setting forth the terms and conditions of the designation and
3guarantees that have been received by the Department in
4relation to the proposed business being designated.
5    (i) High Impact Business construction jobs credit.
6Beginning on January 1, 2021, a High Impact Business may
7receive a tax credit against the tax imposed under subsections
8(a) and (b) of Section 201 of the Illinois Income Tax Act in an
9amount equal to 50% of the amount of the incremental income tax
10attributable to High Impact Business construction jobs credit
11employees employed in the course of completing a High Impact
12Business construction jobs project. However, the High Impact
13Business construction jobs credit may equal 75% of the amount
14of the incremental income tax attributable to High Impact
15Business construction jobs credit employees if the High Impact
16Business construction jobs credit project is located in an
17underserved area.
18    The Department shall certify to the Department of Revenue:
19(1) the identity of taxpayers that are eligible for the High
20Impact Business construction jobs credit; and (2) the amount
21of High Impact Business construction jobs credits that are
22claimed pursuant to subsection (h-5) of Section 201 of the
23Illinois Income Tax Act in each taxable year. Any business
24entity that receives a High Impact Business construction jobs
25credit shall maintain a certified payroll pursuant to
26subsection (j) of this Section.

 

 

10200HB3107sam001- 33 -LRB102 15737 HLH 42605 a

1    As used in this subsection (i):
2    "High Impact Business construction jobs credit" means an
3amount equal to 50% (or 75% if the High Impact Business
4construction project is located in an underserved area) of the
5incremental income tax attributable to High Impact Business
6construction job employees. The total aggregate amount of
7credits awarded under the Blue Collar Jobs Act (Article 20 of
8Public Act 101-9) shall not exceed $20,000,000 in any State
9fiscal year
10    "High Impact Business construction job employee" means a
11laborer or worker who is employed by an Illinois contractor or
12subcontractor in the actual construction work on the site of a
13High Impact Business construction job project.
14    "High Impact Business construction jobs project" means
15building a structure or building or making improvements of any
16kind to real property, undertaken and commissioned by a
17business that was designated as a High Impact Business by the
18Department. The term "High Impact Business construction jobs
19project" does not include the routine operation, routine
20repair, or routine maintenance of existing structures,
21buildings, or real property.
22    "Incremental income tax" means the total amount withheld
23during the taxable year from the compensation of High Impact
24Business construction job employees.
25    "Underserved area" means a geographic area that meets one
26or more of the following conditions:

 

 

10200HB3107sam001- 34 -LRB102 15737 HLH 42605 a

1        (1) the area has a poverty rate of at least 20%
2    according to the latest American Community Survey;
3        (2) 35% or more of the families with children in the
4    area are living below 130% of the poverty line, according
5    to the latest American Community Survey;
6        (3) at least 20% of the households in the area receive
7    assistance under the Supplemental Nutrition Assistance
8    Program (SNAP); or
9        (4) the area has an average unemployment rate, as
10    determined by the Illinois Department of Employment
11    Security, that is more than 120% of the national
12    unemployment average, as determined by the U.S. Department
13    of Labor, for a period of at least 2 consecutive calendar
14    years preceding the date of the application.
15    (j) Each contractor and subcontractor who is engaged in
16and executing a High Impact Business Construction jobs
17project, as defined under subsection (i) of this Section, for
18a business that is entitled to a credit pursuant to subsection
19(i) of this Section shall:
20        (1) make and keep, for a period of 5 years from the
21    date of the last payment made on or after June 5, 2019 (the
22    effective date of Public Act 101-9) on a contract or
23    subcontract for a High Impact Business Construction Jobs
24    Project, records for all laborers and other workers
25    employed by the contractor or subcontractor on the
26    project; the records shall include:

 

 

10200HB3107sam001- 35 -LRB102 15737 HLH 42605 a

1            (A) the worker's name;
2            (B) the worker's address;
3            (C) the worker's telephone number, if available;
4            (D) the worker's social security number;
5            (E) the worker's classification or
6        classifications;
7            (F) the worker's gross and net wages paid in each
8        pay period;
9            (G) the worker's number of hours worked each day;
10            (H) the worker's starting and ending times of work
11        each day;
12            (I) the worker's hourly wage rate;
13            (J) the worker's hourly overtime wage rate;
14            (K) the worker's race and ethnicity; and
15            (L) the worker's gender;
16        (2) no later than the 15th day of each calendar month,
17    provide a certified payroll for the immediately preceding
18    month to the taxpayer in charge of the High Impact
19    Business construction jobs project; within 5 business days
20    after receiving the certified payroll, the taxpayer shall
21    file the certified payroll with the Department of Labor
22    and the Department of Commerce and Economic Opportunity; a
23    certified payroll must be filed for only those calendar
24    months during which construction on a High Impact Business
25    construction jobs project has occurred; the certified
26    payroll shall consist of a complete copy of the records

 

 

10200HB3107sam001- 36 -LRB102 15737 HLH 42605 a

1    identified in paragraph (1) of this subsection (j), but
2    may exclude the starting and ending times of work each
3    day; the certified payroll shall be accompanied by a
4    statement signed by the contractor or subcontractor or an
5    officer, employee, or agent of the contractor or
6    subcontractor which avers that:
7            (A) he or she has examined the certified payroll
8        records required to be submitted by the Act and such
9        records are true and accurate; and
10            (B) the contractor or subcontractor is aware that
11        filing a certified payroll that he or she knows to be
12        false is a Class A misdemeanor.
13    A general contractor is not prohibited from relying on a
14certified payroll of a lower-tier subcontractor, provided the
15general contractor does not knowingly rely upon a
16subcontractor's false certification.
17    Any contractor or subcontractor subject to this
18subsection, and any officer, employee, or agent of such
19contractor or subcontractor whose duty as an officer,
20employee, or agent it is to file a certified payroll under this
21subsection, who willfully fails to file such a certified
22payroll on or before the date such certified payroll is
23required by this paragraph to be filed and any person who
24willfully files a false certified payroll that is false as to
25any material fact is in violation of this Act and guilty of a
26Class A misdemeanor.

 

 

10200HB3107sam001- 37 -LRB102 15737 HLH 42605 a

1    The taxpayer in charge of the project shall keep the
2records submitted in accordance with this subsection on or
3after June 5, 2019 (the effective date of Public Act 101-9) for
4a period of 5 years from the date of the last payment for work
5on a contract or subcontract for the High Impact Business
6construction jobs project.
7    The records submitted in accordance with this subsection
8shall be considered public records, except an employee's
9address, telephone number, and social security number, and
10made available in accordance with the Freedom of Information
11Act. The Department of Labor shall share the information with
12the Department in order to comply with the awarding of a High
13Impact Business construction jobs credit. A contractor,
14subcontractor, or public body may retain records required
15under this Section in paper or electronic format.
16    (k) Upon 7 business days' notice, each contractor and
17subcontractor shall make available for inspection and copying
18at a location within this State during reasonable hours, the
19records identified in this subsection (j) to the taxpayer in
20charge of the High Impact Business construction jobs project,
21its officers and agents, the Director of the Department of
22Labor and his or her deputies and agents, and to federal,
23State, or local law enforcement agencies and prosecutors.
24    (l) The changes made to this Section by this amendatory
25Act of the 102nd General Assembly, other than the changes in
26subsection (a), apply to high impact businesses that submit

 

 

10200HB3107sam001- 38 -LRB102 15737 HLH 42605 a

1applications on or after the effective date of this amendatory
2Act of the 102nd General Assembly.
3(Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
4102-558, eff. 8-20-21; 102-605, eff. 8-27-21; 102-662, eff.
59-15-21; 102-673, eff. 11-30-21; 102-813, eff. 5-13-22.)
 
6    (20 ILCS 655/6)  (from Ch. 67 1/2, par. 610)
7    Sec. 6. Powers and Duties of Department.
8    (A) General Powers. The Department shall administer this
9Act and shall have the following powers and duties:
10        (1) To monitor the implementation of this Act and
11    submit reports evaluating the effectiveness of the program
12    and any suggestions for legislation to the Governor and
13    General Assembly by October 1 of every year preceding a
14    regular Session of the General Assembly and to annually
15    report to the General Assembly initial and current
16    population, employment, per capita income, number of
17    business establishments, dollar value of new construction
18    and improvements, and the aggregate value of each tax
19    incentive, based on information provided by the Department
20    of Revenue, for each Enterprise Zone.
21        (2) To promulgate all necessary rules and regulations
22    to carry out the purposes of this Act in accordance with
23    The Illinois Administrative Procedure Act.
24        (3) To assist municipalities and counties in obtaining
25    Federal status as an Enterprise Zone.

 

 

10200HB3107sam001- 39 -LRB102 15737 HLH 42605 a

1        (4) To determine the conditions and processes for
2    renewal of high impact business designations, and any
3    incentives associated with that designation, awarded under
4    this Act in accordance with Section 5.5 of this Act.
5    (B) Specific Duties:
6        (1) The Department shall provide information and
7    appropriate assistance to persons desiring to locate and
8    engage in business in an enterprise zone, to persons
9    engaged in business in an enterprise zone and to
10    designated zone organizations operating there.
11        (2) The Department shall, in cooperation with
12    appropriate units of local government and State agencies,
13    coordinate and streamline existing State business
14    assistance programs and permit and license application
15    procedures for Enterprise Zone businesses.
16        (3) The Department shall publicize existing tax
17    incentives and economic development programs within the
18    Zone and upon request, offer technical assistance in
19    abatement and alternative revenue source development to
20    local units of government which have enterprise Zones
21    within their jurisdiction.
22        (4) The Department shall work together with the
23    responsible State and Federal agencies to promote the
24    coordination of other relevant programs, including but not
25    limited to housing, community and economic development,
26    small business, banking, financial assistance, and

 

 

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1    employment training programs which are carried on in an
2    Enterprise Zone.
3        (5) In order to stimulate employment opportunities for
4    Zone residents, the Department, in cooperation with the
5    Department of Human Services and the Department of
6    Employment Security, is to initiate a test of the
7    following 2 programs within the 12 month period following
8    designation and approval by the Department of the first
9    enterprise zones: (i) the use of aid to families with
10    dependent children benefits payable under Article IV of
11    the Illinois Public Aid Code, General Assistance benefits
12    payable under Article VI of the Illinois Public Aid Code,
13    the unemployment insurance benefits payable under the
14    Unemployment Insurance Act as training or employment
15    subsidies leading to unsubsidized employment; and (ii) a
16    program for voucher reimbursement of the cost of training
17    zone residents eligible under the Targeted Jobs Tax Credit
18    provisions of the Internal Revenue Code for employment in
19    private industry. These programs shall not be designed to
20    subsidize businesses, but are intended to open up job and
21    training opportunities not otherwise available. Nothing in
22    this paragraph (5) shall be deemed to require zone
23    businesses to utilize these programs. These programs
24    should be designed (i) for those individuals whose
25    opportunities for job-finding are minimal without program
26    participation, (ii) to minimize the period of benefit

 

 

10200HB3107sam001- 41 -LRB102 15737 HLH 42605 a

1    collection by such individuals, and (iii) to accelerate
2    the transition of those individuals to unsubsidized
3    employment. The Department is to seek agreement with
4    business, organized labor and the appropriate State
5    Department and agencies on the design, operation and
6    evaluation of the test programs.
7    A report with recommendations including representative
8comments of these groups shall be submitted by the Department
9to the county or municipality which designated the area as an
10Enterprise Zone, Governor and General Assembly not later than
1112 months after such test programs have commenced, or not
12later than 3 months following the termination of such test
13programs, whichever first occurs.
14(Source: P.A. 97-905, eff. 8-7-12.)
 
15    Section 910. The Reimagining Electric Vehicles in Illinois
16Act is amended by changing Sections 1, 5, 10, 20, 30, 40, and
1745 as follows:
 
18    (20 ILCS 686/1)
19    Sec. 1. Short title. This Act may be cited as the
20Reimagining Energy and Electric Vehicles in Illinois Act.
21(Source: P.A. 102-669, eff. 11-16-21.)
 
22    (20 ILCS 686/5)
23    Sec. 5. Purpose. It is the intent of the General Assembly

 

 

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1that Illinois should lead the nation in the production of
2electric vehicles and other products essential to the growth
3of the renewable energy sector. The General Assembly finds
4that, through investments in electric vehicle manufacturing
5and renewable energy manufacturing, Illinois will be on the
6forefront of emerging technologies that are currently
7transforming those industries the auto manufacturing industry.
8This Act will reduce carbon emissions, create good paying
9jobs, and generate long-term economic investment in the
10Illinois business economy. Illinois must aggressively adopt
11new business development investment tools so that Illinois is
12more competitive in site location decision-making for
13manufacturing facilities directly related to the electric
14vehicle and renewable energy industry. Illinois' long-term
15development benefits from rational, strategic use of State
16resources in support of development and growth in the electric
17vehicle and renewable energy industry.
18    The General Assembly finds that workers are essential to
19the prosperity of our State's economy and play a critical role
20in Illinois becoming leader in manufacturing. The General
21Assembly further finds that, for the prosperity of our State,
22workers in this industry must be afforded high quality jobs
23that honor the dignity of work. Therefore, the General
24Assembly finds that it is in the best interest of Illinois to
25protect the work conditions, worker safety, and worker rights
26in the manufacturing industry and further finds that employer

 

 

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1workplace policies shall be interpreted broadly to protect
2employees.
3(Source: P.A. 102-669, eff. 11-16-21.)
 
4    (20 ILCS 686/10)
5    Sec. 10. Definitions. As used in this Act:
6    "Advanced battery" means a battery that consists of a
7battery cell that can be integrated into a module, pack, or
8system to be used in energy storage applications, including a
9battery used in an electric vehicle or the electric grid.
10    "Advanced battery component" means a component of an
11advanced battery, including materials, enhancements,
12enclosures, anodes, cathodes, electrolytes, cells, and other
13associated technologies that comprise an advanced battery.
14    "Agreement" means the agreement between a taxpayer and the
15Department under the provisions of Section 45 of this Act.
16    "Applicant" means a taxpayer that (i) operates a business
17in Illinois or is planning to locate a business within the
18State of Illinois and (ii) is engaged in interstate or
19intrastate commerce as an for the purpose of manufacturing
20electric vehicle manufacturer vehicles, an electric vehicle
21component parts manufacturer, or an electric vehicle power
22supply equipment manufacturer. For applications for credits
23under this Act that are submitted on or after the effective
24date of this amendatory Act of the 102nd General Assembly,
25"applicant" also includes a taxpayer that (i) operates a

 

 

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1business in Illinois or is planning to locate a business
2within the State of Illinois and (ii) is engaged in interstate
3or intrastate commerce as a renewable energy manufacturer.
4"Applicant" does not include a taxpayer who closes or
5substantially reduces by more than 50% operations at one
6location in the State and relocates substantially the same
7operation to another location in the State. This does not
8prohibit a Taxpayer from expanding its operations at another
9location in the State. This also does not prohibit a Taxpayer
10from moving its operations from one location in the State to
11another location in the State for the purpose of expanding the
12operation, provided that the Department determines that
13expansion cannot reasonably be accommodated within the
14municipality or county in which the business is located, or,
15in the case of a business located in an incorporated area of
16the county, within the county in which the business is
17located, after conferring with the chief elected official of
18the municipality or county and taking into consideration any
19evidence offered by the municipality or county regarding the
20ability to accommodate expansion within the municipality or
21county.
22    "Battery raw materials" means the raw and processed form
23of a mineral, metal, chemical, or other material used in an
24advanced battery component.
25    "Battery raw materials refining service provider" means a
26business that operates a facility that filters, sifts, and

 

 

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1treats battery raw materials for use in an advanced battery.
2    "Battery recycling and reuse manufacturer" means a
3manufacturer that is primarily engaged in the recovery,
4retrieval, processing, recycling, or recirculating of battery
5raw materials for new use in electric vehicle batteries.
6    "Capital improvements" means the purchase, renovation,
7rehabilitation, or construction of permanent tangible land,
8buildings, structures, equipment, and furnishings in an
9approved project sited in Illinois and expenditures for goods
10or services that are normally capitalized, including
11organizational costs and research and development costs
12incurred in Illinois. For land, buildings, structures, and
13equipment that are leased, the lease must equal or exceed the
14term of the agreement, and the cost of the property shall be
15determined from the present value, using the corporate
16interest rate prevailing at the time of the application, of
17the lease payments.
18    "Credit" means either a "REV Illinois Credit" or a "REV
19Construction Jobs Credit" agreed to between the Department and
20applicant under this Act.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Director" means the Director of Commerce and Economic
24Opportunity.
25    "Electric vehicle" means a vehicle that is exclusively
26powered by and refueled by electricity, including electricity

 

 

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1generated through a hydrogen fuel cells or solar technology.
2"Electric vehicle" does not include hybrid electric vehicles,
3electric bicycles, or extended-range electric vehicles that
4are also equipped with conventional fueled propulsion or
5auxiliary engines.
6    "Electric vehicle manufacturer" means a new or existing
7manufacturer that is primarily focused on reequipping,
8expanding, or establishing a manufacturing facility in
9Illinois that produces electric vehicles as defined in this
10Section.
11    "Electric vehicle component parts manufacturer" means a
12new or existing manufacturer that is focused on reequipping,
13expanding, or establishing a manufacturing facility in
14Illinois that produces parts or accessories used in electric
15vehicles, as defined by this Section, including advanced
16battery component parts. The changes to this definition of
17"electric vehicle component parts manufacturer" apply to
18agreements under this Act that are entered into on or after the
19effective date of this amendatory Act of the 102nd General
20Assembly.
21    "Electric vehicle power supply equipment" means the
22equipment used specifically for the purpose of delivering
23electricity to an electric vehicle, including hydrogen fuel
24cells or solar refueling infrastructure.
25    "Electric vehicle power supply manufacturer" means a new
26or existing manufacturer that is focused on reequipping,

 

 

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1expanding, or establishing a manufacturing facility in
2Illinois that produces electric vehicle power supply equipment
3used for the purpose of delivering electricity to an electric
4vehicle, including hydrogen fuel cell or solar refueling
5infrastructure.
6    "Energy Transition Area" means a county with less than
7100,000 people or a municipality that contains one or more of
8the following:
9        (1) a fossil fuel plant that was retired from service
10    or has significant reduced service within 6 years before
11    the time of the application or will be retired or have
12    service significantly reduced within 6 years following the
13    time of the application; or
14        (2) a coal mine that was closed or had operations
15    significantly reduced within 6 years before the time of
16    the application or is anticipated to be closed or have
17    operations significantly reduced within 6 years following
18    the time of the application.
19    "Full-time employee" means an individual who is employed
20for consideration for at least 35 hours each week or who
21renders any other standard of service generally accepted by
22industry custom or practice as full-time employment. An
23individual for whom a W-2 is issued by a Professional Employer
24Organization (PEO) is a full-time employee if employed in the
25service of the applicant for consideration for at least 35
26hours each week.

 

 

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1    "Incremental income tax" means the total amount withheld
2during the taxable year from the compensation of new employees
3and, if applicable, retained employees under Article 7 of the
4Illinois Income Tax Act arising from employment at a project
5that is the subject of an agreement.
6    "Institution of higher education" or "institution" means
7any accredited public or private university, college,
8community college, business, technical, or vocational school,
9or other accredited educational institution offering degrees
10and instruction beyond the secondary school level.
11    "Minority person" means a minority person as defined in
12the Business Enterprise for Minorities, Women, and Persons
13with Disabilities Act.
14    "New employee" means a newly-hired full-time employee
15employed to work at the project site and whose work is directly
16related to the project.
17    "Noncompliance date" means, in the case of a taxpayer that
18is not complying with the requirements of the agreement or the
19provisions of this Act, the day following the last date upon
20which the taxpayer was in compliance with the requirements of
21the agreement and the provisions of this Act, as determined by
22the Director, pursuant to Section 70.
23    "Pass-through entity" means an entity that is exempt from
24the tax under subsection (b) or (c) of Section 205 of the
25Illinois Income Tax Act.
26    "Placed in service" means the state or condition of

 

 

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1readiness, availability for a specifically assigned function,
2and the facility is constructed and ready to conduct its
3facility operations to manufacture goods.
4    "Professional employer organization" (PEO) means an
5employee leasing company, as defined in Section 206.1 of the
6Illinois Unemployment Insurance Act.
7    "Program" means the Reimagining Energy and Electric
8Vehicles in Illinois Program (the REV Illinois Program)
9established in this Act.
10    "Project" or "REV Illinois Project" means a for-profit
11economic development activity for the manufacture of electric
12vehicles, electric vehicle component parts, or electric
13vehicle power supply equipment, or renewable energy products,
14which is designated by the Department as a REV Illinois
15Project and is the subject of an agreement.
16    "Recycling facility" means a location at which the
17taxpayer disposes of batteries and other component parts in
18manufacturing of electric vehicles, electric vehicle component
19parts, or electric vehicle power supply equipment.
20    "Related member" means a person that, with respect to the
21taxpayer during any portion of the taxable year, is any one of
22the following:
23        (1) An individual stockholder, if the stockholder and
24    the members of the stockholder's family (as defined in
25    Section 318 of the Internal Revenue Code) own directly,
26    indirectly, beneficially, or constructively, in the

 

 

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1    aggregate, at least 50% of the value of the taxpayer's
2    outstanding stock.
3        (2) A partnership, estate, trust and any partner or
4    beneficiary, if the partnership, estate, or trust, and its
5    partners or beneficiaries own directly, indirectly,
6    beneficially, or constructively, in the aggregate, at
7    least 50% of the profits, capital, stock, or value of the
8    taxpayer.
9        (3) A corporation, and any party related to the
10    corporation in a manner that would require an attribution
11    of stock from the corporation under the attribution rules
12    of Section 318 of the Internal Revenue Code, if the
13    Taxpayer owns directly, indirectly, beneficially, or
14    constructively at least 50% of the value of the
15    corporation's outstanding stock.
16        (4) A corporation and any party related to that
17    corporation in a manner that would require an attribution
18    of stock from the corporation to the party or from the
19    party to the corporation under the attribution rules of
20    Section 318 of the Internal Revenue Code, if the
21    corporation and all such related parties own in the
22    aggregate at least 50% of the profits, capital, stock, or
23    value of the taxpayer.
24        (5) A person to or from whom there is an attribution of
25    stock ownership in accordance with Section 1563(e) of the
26    Internal Revenue Code, except, for purposes of determining

 

 

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1    whether a person is a related member under this paragraph,
2    20% shall be substituted for 5% wherever 5% appears in
3    Section 1563(e) of the Internal Revenue Code.
4    "Renewable energy" means energy produced using the
5materials and sources of energy through which renewable energy
6resources are generated.
7    "Renewable energy manufacturer" means a manufacturer whose
8primary function is to manufacture or assemble: (i) equipment,
9systems, or products used to produce renewable or nuclear
10energy; (ii) products used for energy conservation, storage,
11or grid efficiency purposes; or (iii) component parts for that
12equipment or those systems or products.
13    "Renewable energy resources" has the meaning ascribed to
14that term in Section 1-10 of the Illinois Power Agency Act.
15    "Retained employee" means a full-time employee employed by
16the taxpayer prior to the term of the Agreement who continues
17to be employed during the term of the agreement whose job
18duties are directly related to the project. The term "retained
19employee" does not include any individual who has a direct or
20an indirect ownership interest of at least 5% in the profits,
21equity, capital, or value of the taxpayer or a child,
22grandchild, parent, or spouse, other than a spouse who is
23legally separated from the individual, of any individual who
24has a direct or indirect ownership of at least 5% in the
25profits, equity, capital, or value of the taxpayer. The
26changes to this definition of "retained employee" apply to

 

 

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1agreements for credits under this Act that are entered into on
2or after the effective date of this amendatory Act of the 102nd
3General Assembly.
4    "REV Illinois credit" means a credit agreed to between the
5Department and the applicant under this Act that is based on
6the incremental income tax attributable to new employees and,
7if applicable, retained employees, and on training costs for
8such employees at the applicant's project.
9    "REV construction jobs credit" means a credit agreed to
10between the Department and the applicant under this Act that
11is based on the incremental income tax attributable to
12construction wages paid in connection with construction of the
13project facilities.
14    "Statewide baseline" means the total number of full-time
15employees of the applicant and any related member employed by
16such entities at the time of application for incentives under
17this Act.
18    "Taxpayer" means an individual, corporation, partnership,
19or other entity that has a legal obligation to pay Illinois
20income taxes and file an Illinois income tax return.
21    "Training costs" means costs incurred to upgrade the
22technological skills of full-time employees in Illinois and
23includes: curriculum development; training materials
24(including scrap product costs); trainee domestic travel
25expenses; instructor costs (including wages, fringe benefits,
26tuition and domestic travel expenses); rent, purchase or lease

 

 

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1of training equipment; and other usual and customary training
2costs. "Training costs" do not include costs associated with
3travel outside the United States (unless the Taxpayer receives
4prior written approval for the travel by the Director based on
5a showing of substantial need or other proof the training is
6not reasonably available within the United States), wages and
7fringe benefits of employees during periods of training, or
8administrative cost related to full-time employees of the
9taxpayer.
10    "Underserved area" means any geographic areas as defined
11in Section 5-5 of the Economic Development for a Growing
12Economy Tax Credit Act.
13(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
14102-1112, eff. 12-21-22.)
 
15    (20 ILCS 686/20)
16    Sec. 20. REV Illinois Program; project applications.
17    (a) The Reimagining Energy and Electric Vehicles in
18Illinois (REV Illinois) Program is hereby established and
19shall be administered by the Department. The Program will
20provide financial incentives to any one or more of the
21following: (1) eligible manufacturers of electric vehicles,
22electric vehicle component parts, and electric vehicle power
23supply equipment; (2) battery recycling and reuse
24manufacturers; or (3) battery raw materials refining service
25providers; or (4) renewable energy manufacturers.

 

 

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1    (b) Any taxpayer planning a project to be located in
2Illinois may request consideration for designation of its
3project as a REV Illinois Project, by formal written letter of
4request or by formal application to the Department, in which
5the applicant states its intent to make at least a specified
6level of investment and intends to hire a specified number of
7full-time employees at a designated location in Illinois. As
8circumstances require, the Department shall require a formal
9application from an applicant and a formal letter of request
10for assistance.
11    (c) In order to qualify for credits under the REV Illinois
12Program, an applicant must:
13        (1) if the applicant is for an electric vehicle
14    manufacturer:
15            (A) make an investment of at least $1,500,000,000
16        in capital improvements at the project site;
17            (B) to be placed in service within the State
18        within a 60-month period after approval of the
19        application; and
20            (C) create at least 500 new full-time employee
21        jobs; or
22        (2) if the applicant is for an electric vehicle
23    component parts manufacturer or a renewable energy
24    manufacturer:
25            (A) make an investment of at least $300,000,000 in
26        capital improvements at the project site;

 

 

10200HB3107sam001- 55 -LRB102 15737 HLH 42605 a

1            (B) manufacture one or more parts that are
2        primarily used for electric vehicle manufacturing;
3            (C) to be placed in service within the State
4        within a 60-month period after approval of the
5        application; and
6            (D) create at least 150 new full-time employee
7        jobs; or
8        (3) if the agreement is entered into before the
9    effective date of this amendatory Act of the 102nd General
10    Assembly and the applicant is for an electric vehicle
11    manufacturer, an electric vehicle power supply equipment
12    manufacturer, an electric vehicle component part
13    manufacturer that does not qualify under paragraph (2)
14    above, a battery recycling and reuse manufacturer, or a
15    battery raw materials refining service provider:
16            (A) make an investment of at least $20,000,000 in
17        capital improvements at the project site;
18            (B) for electric vehicle component part
19        manufacturers, manufacture one or more parts that are
20        primarily used for electric vehicle manufacturing;
21            (C) to be placed in service within the State
22        within a 48-month period after approval of the
23        application; and
24            (D) create at least 50 new full-time employee
25        jobs; or
26        (3.1) if the agreement is entered into on or after the

 

 

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1    effective date of this amendatory Act of the 102nd General
2    Assembly and the applicant is an electric vehicle
3    manufacturer, an electric vehicle power supply equipment
4    manufacturer, an electric vehicle component part
5    manufacturer that does not qualify under paragraph (2)
6    above, a renewable energy manufacturer that does not
7    qualify under paragraph (2) above, a battery recycling and
8    reuse manufacturer, or a battery raw materials refining
9    service provider:
10            (A) make an investment of at least $2,500,000 in
11        capital improvements at the project site;
12            (B) in the case of electric vehicle component part
13        manufacturers, manufacture one or more parts that are
14        used for electric vehicle manufacturing;
15            (C) to be placed in service within the State
16        within a 48-month period after approval of the
17        application; and
18            (D) create the lesser of 50 new full-time employee
19        jobs or new full-time employee jobs equivalent to 10%
20        of the Statewide baseline applicable to the taxpayer
21        and any related member at the time of application; or
22        (4) if the agreement is entered into before the
23    effective date of this amendatory Act of the 102nd General
24    Assembly and the applicant is for an electric vehicle
25    manufacturer or electric vehicle component parts
26    manufacturer with existing operations within Illinois that

 

 

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1    intends to convert or expand, in whole or in part, the
2    existing facility from traditional manufacturing to
3    primarily electric vehicle manufacturing, electric vehicle
4    component parts manufacturing, or electric vehicle power
5    supply equipment manufacturing:
6            (A) make an investment of at least $100,000,000 in
7        capital improvements at the project site;
8            (B) to be placed in service within the State
9        within a 60-month period after approval of the
10        application; and
11            (C) create the lesser of 75 new full-time employee
12        jobs or new full-time employee jobs equivalent to 10%
13        of the Statewide baseline applicable to the taxpayer
14        and any related member at the time of application; or .
15        (4.1) if the agreement is entered into on or after the
16    effective date of this amendatory Act of the 102nd General
17    Assembly and the applicant (i) is an electric vehicle
18    manufacturer, an electric vehicle component parts
19    manufacturer, or a renewable energy manufacturer and (ii)
20    has existing operations within Illinois that the applicant
21    intends to convert or expand, in whole or in part, from
22    traditional manufacturing to electric vehicle
23    manufacturing, electric vehicle component parts
24    manufacturing, renewable energy manufacturing, or electric
25    vehicle power supply equipment manufacturing:
26            (A) make an investment of at least $100,000,000 in

 

 

10200HB3107sam001- 58 -LRB102 15737 HLH 42605 a

1        capital improvements at the project site;
2            (B) to be placed in service within the State
3        within a 60-month period after approval of the
4        application; and
5            (C) create the lesser of 50 new full-time employee
6        jobs or new full-time employee jobs equivalent to 10%
7        of the Statewide baseline applicable to the taxpayer
8        and any related member at the time of application.
9    (d) For agreements entered into prior to April 19, 2022
10(the effective date of Public Act 102-700), for any applicant
11creating the full-time employee jobs noted in subsection (c),
12those jobs must have a total compensation equal to or greater
13than 120% of the average wage paid to full-time employees in
14the county where the project is located, as determined by the
15U.S. Bureau of Labor Statistics. For agreements entered into
16on or after April 19, 2022 (the effective date of Public Act
17102-700), for any applicant creating the full-time employee
18jobs noted in subsection (c), those jobs must have a
19compensation equal to or greater than 120% of the average wage
20paid to full-time employees in a similar position within an
21occupational group in the county where the project is located,
22as determined by the Department.
23    (e) For any applicant, within 24 months after being placed
24in service, it must certify to the Department that it is carbon
25neutral or has attained certification under one of more of the
26following green building standards:

 

 

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1        (1) BREEAM for New Construction or BREEAM In-Use;
2        (2) ENERGY STAR;
3        (3) Envision;
4        (4) ISO 50001 - energy management;
5        (5) LEED for Building Design and Construction or LEED
6    for Building Operations and Maintenance;
7        (6) Green Globes for New Construction or Green Globes
8    for Existing Buildings; or
9        (7) UL 3223.
10    (f) Each applicant must outline its hiring plan and
11commitment to recruit and hire full-time employee positions at
12the project site. The hiring plan may include a partnership
13with an institution of higher education to provide
14internships, including, but not limited to, internships
15supported by the Clean Jobs Workforce Network Program, or
16full-time permanent employment for students at the project
17site. Additionally, the applicant may create or utilize
18participants from apprenticeship programs that are approved by
19and registered with the United States Department of Labor's
20Bureau of Apprenticeship and Training. The applicant may apply
21for apprenticeship education expense credits in accordance
22with the provisions set forth in 14 Ill. Adm. Code 522. Each
23applicant is required to report annually, on or before April
2415, on the diversity of its workforce in accordance with
25Section 50 of this Act. For existing facilities of applicants
26under paragraph (3) of subsection (b) above, if the taxpayer

 

 

10200HB3107sam001- 60 -LRB102 15737 HLH 42605 a

1expects a reduction in force due to its transition to
2manufacturing electric vehicle, electric vehicle component
3parts, or electric vehicle power supply equipment, the plan
4submitted under this Section must outline the taxpayer's plan
5to assist with retraining its workforce aligned with the
6taxpayer's adoption of new technologies and anticipated
7efforts to retrain employees through employment opportunities
8within the taxpayer's workforce.
9    (g) Each applicant must demonstrate a contractual or other
10relationship with a recycling facility, or demonstrate its own
11recycling capabilities, at the time of application and report
12annually a continuing contractual or other relationship with a
13recycling facility and the percentage of batteries used in
14electric vehicles recycled throughout the term of the
15agreement.
16    (h) A taxpayer may not enter into more than one agreement
17under this Act with respect to a single address or location for
18the same period of time. Also, a taxpayer may not enter into an
19agreement under this Act with respect to a single address or
20location for the same period of time for which the taxpayer
21currently holds an active agreement under the Economic
22Development for a Growing Economy Tax Credit Act. This
23provision does not preclude the applicant from entering into
24an additional agreement after the expiration or voluntary
25termination of an earlier agreement under this Act or under
26the Economic Development for a Growing Economy Tax Credit Act

 

 

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1to the extent that the taxpayer's application otherwise
2satisfies the terms and conditions of this Act and is approved
3by the Department. An applicant with an existing agreement
4under the Economic Development for a Growing Economy Tax
5Credit Act may submit an application for an agreement under
6this Act after it terminates any existing agreement under the
7Economic Development for a Growing Economy Tax Credit Act with
8respect to the same address or location. If a project that is
9subject to an existing agreement under the Economic
10Development for a Growing Economy Tax Credit Act meets the
11requirements to be designated as a REV Illinois project under
12this Act, including for actions undertaken prior to the
13effective date of this Act, the taxpayer that is subject to
14that existing agreement under the Economic Development for a
15Growing Economy Tax Credit Act may apply to the Department to
16amend the agreement to allow the project to become a
17designated REV Illinois project. Following the amendment, time
18accrued during which the project was eligible for credits
19under the existing agreement under the Economic Development
20for a Growing Economy Tax Credit Act shall count toward the
21duration of the credit subject to limitations described in
22Section 40 of this Act.
23    (i) If, at any time following the designation of a project
24as a REV Illinois Project by the Department and prior to the
25termination or expiration of an agreement under this Act, the
26project ceases to qualify as a REV Illinois project because

 

 

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1the taxpayer is no longer an electric vehicle manufacturer, an
2electric vehicle component manufacturer, an electric vehicle
3power supply equipment manufacturer, a battery recycling and
4reuse manufacturer, or a battery raw materials refining
5service provider, that project may receive tax credit awards
6as described in Section 5-15 and Section 5-51 of the Economic
7Development for a Growing Economy Tax Credit Act, as long as
8the project continues to meet requirements to obtain those
9credits as described in the Economic Development for a Growing
10Economy Tax Credit Act and remains compliant with terms
11contained in the Agreement under this Act not related to their
12status as an electric vehicle manufacturer, an electric
13vehicle component manufacturer, an electric vehicle power
14supply equipment manufacturer, a battery recycling and reuse
15manufacturer, or a battery raw materials refining service
16provider. Time accrued during which the project was eligible
17for credits under an agreement under this Act shall count
18toward the duration of the credit subject to limitations
19described in Section 5-45 of the Economic Development for a
20Growing Economy Tax Credit Act.
21(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
22102-1112, eff. 12-21-22.)
 
23    (20 ILCS 686/30)
24    Sec. 30. Tax credit awards.
25    (a) Subject to the conditions set forth in this Act, a

 

 

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1taxpayer is entitled to a credit against the tax imposed
2pursuant to subsections (a) and (b) of Section 201 of the
3Illinois Income Tax Act for a taxable year beginning on or
4after January 1, 2025 if the taxpayer is awarded a credit by
5the Department in accordance with an agreement under this Act.
6The Department has authority to award credits under this Act
7on and after January 1, 2022.
8    (b) REV Illinois Credits. A taxpayer may receive a tax
9credit against the tax imposed under subsections (a) and (b)
10of Section 201 of the Illinois Income Tax Act, not to exceed
11the sum of (i) 75% of the incremental income tax attributable
12to new employees at the applicant's project and (ii) 10% of the
13training costs of the new employees. If the project is located
14in an underserved area or an energy transition area, then the
15amount of the credit may not exceed the sum of (i) 100% of the
16incremental income tax attributable to new employees at the
17applicant's project; and (ii) 10% of the training costs of the
18new employees. The percentage of training costs includable in
19the calculation may be increased by an additional 15% for
20training costs associated with new employees that are recent
21(2 years or less) graduates, certificate holders, or
22credential recipients from an institution of higher education
23in Illinois, or, if the training is provided by an institution
24of higher education in Illinois, the Clean Jobs Workforce
25Network Program, or an apprenticeship and training program
26located in Illinois and approved by and registered with the

 

 

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1United States Department of Labor's Bureau of Apprenticeship
2and Training. An applicant is also eligible for a training
3credit that shall not exceed 10% of the training costs of
4retained employees for the purpose of upskilling to meet the
5operational needs of the applicant or the REV Illinois
6Project. The percentage of training costs includable in the
7calculation shall not exceed a total of 25%. If an applicant
8agrees to hire the required number of new employees, then the
9maximum amount of the credit for that applicant may be
10increased by an amount not to exceed 75% of the incremental
11income tax attributable to retained employees at the
12applicant's project; provided that, in order to receive the
13increase for retained employees, the applicant must, if
14applicable, meet or exceed the statewide baseline. If the
15Project is in an underserved area or an energy transition
16area, the maximum amount of the credit attributable to
17retained employees for the applicant may be increased to an
18amount not to exceed 100% of the incremental income tax
19attributable to retained employees at the applicant's project;
20provided that, in order to receive the increase for retained
21employees, the applicant must meet or exceed the statewide
22baseline. REV Illinois Credits awarded may include credit
23earned for incremental income tax withheld and training costs
24incurred by the taxpayer beginning on or after January 1,
252022. Credits so earned and certified by the Department may be
26applied against the tax imposed by subsections (a) and (b) of

 

 

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1Section 201 of the Illinois Income Tax Act for taxable years
2beginning on or after January 1, 2025.
3    (c) REV Construction Jobs Credit. For construction wages
4associated with a project that qualified for a REV Illinois
5Credit under subsection (b), the taxpayer may receive a tax
6credit against the tax imposed under subsections (a) and (b)
7of Section 201 of the Illinois Income Tax Act in an amount
8equal to 50% of the incremental income tax attributable to
9construction wages paid in connection with construction of the
10project facilities, as a jobs credit for workers hired to
11construct the project.
12    The REV Construction Jobs Credit may not exceed 75% of the
13amount of the incremental income tax attributable to
14construction wages paid in connection with construction of the
15project facilities if the project is in an underserved area or
16an energy transition area.
17    (d) The Department shall certify to the Department of
18Revenue: (1) the identity of Taxpayers that are eligible for
19the REV Illinois Credit and REV Construction Jobs Credit; (2)
20the amount of the REV Illinois Credits and REV Construction
21Jobs Credits awarded in each calendar year; and (3) the amount
22of the REV Illinois Credit and REV Construction Jobs Credit
23claimed in each calendar year. REV Illinois Credits awarded
24may include credit earned for Incremental Income Tax withheld
25and Training Costs incurred by the Taxpayer beginning on or
26after January 1, 2022. Credits so earned and certified by the

 

 

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1Department may be applied against the tax imposed by Section
2201(a) and (b) of the Illinois Income Tax Act for taxable years
3beginning on or after January 1, 2025.
4    (e) Applicants seeking certification for a tax credits
5related to the construction of the project facilities in the
6State shall require the contractor to enter into a project
7labor agreement that conforms with the Project Labor
8Agreements Act.
9    (f) Any applicant issued a certificate for a tax credit or
10tax exemption under this Act must annually report to the
11Department the total project tax benefits received. Reports
12are due no later than May 31 of each year and shall cover the
13previous calendar year. The first report is for the 2022
14calendar year and is due no later than May 31, 2023. For
15applicants issued a certificate of exemption under Section 105
16of this Act, the report shall be the same as required for a
17High Impact Business under subsection (a-5) of Section 8.1 of
18the Illinois Enterprise Zone Act. Each person required to file
19a return under the Gas Revenue Tax Act, the Electricity Excise
20Tax Law, or the Telecommunications Excise Tax Act shall file a
21report containing information about customers that are issued
22an exemption certificate under Section 95 of this Act in the
23same manner and form as they are required to report under
24subsection (b) of Section 8.1 of the Illinois Enterprise Zone
25Act.
26    (g) Nothing in this Act shall prohibit an award of credit

 

 

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1to an applicant that uses a PEO if all other award criteria are
2satisfied.
3    (h) With respect to any portion of a REV Illinois Credit
4that is based on the incremental income tax attributable to
5new employees or retained employees, in lieu of the Credit
6allowed under this Act against the taxes imposed pursuant to
7subsections (a) and (b) of Section 201 of the Illinois Income
8Tax Act, a taxpayer that otherwise meets the criteria set
9forth in this Section, the taxpayer may elect to claim the
10credit, on or after January 1, 2025, against its obligation to
11pay over withholding under Section 704A of the Illinois Income
12Tax Act. The election shall be made in the manner prescribed by
13the Department of Revenue and once made shall be irrevocable.
14(Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff.
1512-21-22.)
 
16    (20 ILCS 686/40)
17    Sec. 40. Amount and duration of the credits; limitation to
18amount of costs of specified items. The Department shall
19determine the amount and duration of the REV Illinois Credit
20awarded under this Act, subject to the limitations set forth
21in this Act. For a project that qualified under paragraph (1),
22(2), or (4), or (4.1) of subsection (c) of Section 20, the
23duration of the credit may not exceed 15 taxable years, with an
24option to renew the agreement for no more than one term not to
25exceed an additional 15 taxable years. For project that

 

 

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1qualified under paragraph (3) or (3.1) of subsection (c) of
2Section 20, the duration of the credit may not exceed 10
3taxable years, with an option to renew the agreement for no
4more than one term not to exceed an additional 10 taxable
5years. The credit may be stated as a percentage of the
6incremental income tax and training costs attributable to the
7applicant's project and may include a fixed dollar limitation.
8    Nothing in this Section shall prevent the Department, in
9consultation with the Department of Revenue, from adopting
10rules to extend the sunset of any earned, existing, and unused
11tax credit or credits a taxpayer may be in possession of, as
12provided for in Section 605-1055 of the Department of Commerce
13and Economic Opportunity Law of the Civil Administrative Code
14of Illinois, notwithstanding the carry-forward provisions
15pursuant to paragraph (4) of Section 211 of the Illinois
16Income Tax Act.
17(Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff.
1812-21-22.)
 
19    (20 ILCS 686/45)
20    Sec. 45. Contents of agreements with applicants.
21    (a) The Department shall enter into an agreement with an
22applicant that is awarded a credit under this Act. The
23agreement 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

 

 

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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

 

 

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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

 

 

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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

 

 

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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 renewable energy manufacturer, or any

 

 

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1    joint venture including an electric vehicle manufacturer,
2    electric vehicle component part manufacturer, and electric
3    vehicle power supply manufacturer, or renewable energy
4    manufacturer, who is subject to collective bargaining
5    agreement entered into prior to the taxpayer filing an
6    application pursuant to this Act.
7    (b) The Department shall post on its website the terms of
8each agreement entered into under this Act. Such information
9shall be posted within 10 days after entering into the
10agreement and must include the following:
11        (1) the name of the taxpayer;
12        (2) the location of the project;
13        (3) the estimated value of the credit;
14        (4) the number of new employee jobs and, if
15    applicable, number of retained employee jobs at the
16    project; and
17        (5) whether or not the project is in an underserved
18    area or energy transition area.
19(Source: P.A. 102-669, eff. 11-16-21.)
 
20    Section 915. The Build Illinois Act is amended by changing
21Section 10-6 as follows:
 
22    (30 ILCS 750/10-6)  (from Ch. 127, par. 2710-6)
23    Sec. 10-6. Large Business Attraction Fund.
24    (a) There is created the Large Business Attraction Fund to

 

 

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1be held as part of the State Treasury. The Department is
2authorized to make loans from the Fund for the purposes
3established under this Article. The State Treasurer shall have
4custody of the Fund and may invest in securities constituting
5direct obligations of the United States Government, in
6obligations the principal of and interest on which are
7guaranteed by the United States Government, or in certificates
8of deposit of any State or national bank that are fully secured
9by obligations guaranteed as to principal and interest by the
10United States Government. The purpose of the Fund is to offer
11loans to finance large firms considering the location of a
12proposed plant in the State and to provide financing to carry
13out the purposes and provisions of paragraph (h) of Section
1410-3. Financing shall be in the form of a loan, mortgage, or
15other debt instrument. All loans shall be conditioned on the
16project receiving financing from participating lenders or
17other sources. Loan proceeds shall be available for project
18costs associated with an expansion of business capacity and
19employment, except for debt refinancing. Targeted companies
20for the program shall primarily consist of established
21industrial and service companies with proven records of
22earnings that will sell their product to markets beyond
23Illinois and have proven multistate location options. New
24ventures shall be considered only if the entity is protected
25with adequate security with regard to its financing and
26operation. The limitations and conditions with respect to the

 

 

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1use of this Fund shall not apply in carrying out the purposes
2and provisions of paragraph (h) of Section 10-3.
3    (b) Deposits into the Fund shall include, but are not
4limited to:
5        (1) Any appropriations, grants, or gifts made to the
6    Fund.
7        (2) Any income received from interest on investments
8    of amounts from the Fund not currently needed to meet the
9    obligations of the Fund.
10    (c) The State Comptroller and the State Treasurer shall
11from time to time, upon the written direction of the Governor,
12transfer from the Fund to the General Revenue Fund those
13amounts that the Governor determines are in excess of the
14amounts required to meet the obligations of the Fund.
15    (d) Notwithstanding subsection (a) of this Section, the
16Large Business Attraction Fund may be used for the purposes
17established under the Invest in Illinois Act, including for
18awards, grants, loans, contracts, and administrative expenses.
19(Source: P.A. 90-372, eff. 7-1-98.)
 
20    Section 920. The Illinois Income Tax Act is amended by
21changing Sections 236, 237, and 704A as follows:
 
22    (35 ILCS 5/236)
23    Sec. 236. Reimagining Energy and Electric Vehicles in
24Illinois Tax credits.

 

 

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1    (a) For tax years beginning on or after January 1, 2025, a
2taxpayer who has entered into an agreement under the
3Reimagining Energy and Electric Vehicles in Illinois Act is
4entitled to a credit against the taxes imposed under
5subsections (a) and (b) of Section 201 of this Act in an amount
6to be determined in the Agreement. The taxpayer may elect to
7claim the credit, on or after January 1, 2025, against its
8obligation to pay over withholding under Section 704A of this
9Act as provided in paragraph (6) of subsection (b). If the
10taxpayer is a partnership or Subchapter S corporation, the
11credit shall be allowed to the partners or shareholders in
12accordance with the determination of income and distributive
13share of income under Sections 702 and 704 and subchapter S of
14the Internal Revenue Code. The Department, in cooperation with
15the Department of Commerce and Economic Opportunity, shall
16adopt rules to enforce and administer the provisions of this
17Section. This Section is exempt from the provisions of Section
18250 of this Act.
19    (b) The credit is subject to the conditions set forth in
20the agreement and the following limitations:
21        (1) The tax credit may be in the form of either or both
22    the REV Illinois Credit or the REV Construction Jobs
23    Credit (as defined in the Reimagining Energy and Electric
24    Vehicles in Illinois Act) and shall not exceed the
25    percentage of incremental income tax and percentage of
26    training costs permitted in that Act and in the agreement

 

 

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1    with respect to the project.
2        (2) The amount of the credit allowed during a tax year
3    plus the sum of all amounts allowed in prior tax years
4    shall not exceed the maximum amount of credit established
5    in the agreement.
6        (3) The amount of the credit shall be determined on an
7    annual basis. Except as applied in a carryover year
8    pursuant to paragraph (4), the credit may not be applied
9    against any State income tax liability in more than 15
10    taxable years.
11        (4) The credit may not exceed the amount of taxes
12    imposed pursuant to subsections (a) and (b) of Section 201
13    of this Act. Any credit that is unused in the year the
14    credit is computed may be carried forward and applied to
15    the tax liability of the 5 taxable years following the
16    excess credit year. The credit shall be applied to the
17    earliest year for which there is a tax liability. If there
18    are credits from more than one tax year that are available
19    to offset a liability, the earlier credit shall be applied
20    first.
21        (5) No credit shall be allowed with respect to any
22    agreement for any taxable year ending after the
23    noncompliance date. Upon receiving notification by the
24    Department of Commerce and Economic Opportunity of the
25    noncompliance of a taxpayer with an agreement, the
26    Department shall notify the taxpayer that no credit is

 

 

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1    allowed with respect to that agreement for any taxable
2    year ending after the noncompliance date, as stated in
3    such notification. If any credit has been allowed with
4    respect to an agreement for a taxable year ending after
5    the noncompliance date for that agreement, any refund paid
6    to the taxpayer for that taxable year shall, to the extent
7    of that credit allowed, be an erroneous refund within the
8    meaning of Section 912 of this Act.
9        If, during any taxable year, a taxpayer ceases
10    operations at a project location that is the subject of
11    that agreement with the intent to terminate operations in
12    the State, the tax imposed under subsections (a) and (b)
13    of Section 201 of this Act for such taxable year shall be
14    increased by the amount of any credit allowed under the
15    Agreement for that Project location prior to the date the
16    Taxpayer ceases operations.
17        (6) Instead of claiming the credit against the taxes
18    imposed under subsections (a) and (b) of Section 201 of
19    this Act, with respect to the portion of a REV Illinois
20    Credit that is calculated based on the Incremental Income
21    Tax attributable to new employees and retained employees,
22    the taxpayer may elect, in accordance with the Reimagining
23    Energy and Electric Vehicles in Illinois Act, to claim the
24    credit, on or after January 1, 2025, against its
25    obligation to pay over withholding under Section 704A of
26    the Illinois Income Tax Act. Any credit for which a

 

 

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1    Taxpayer makes such an election shall not be claimed
2    against the taxes imposed under subsections (a) and (b) of
3    Section 201 of this Act.
4(Source: P.A. 102-669, eff. 11-16-21.)
 
5    (35 ILCS 5/237)
6    Sec. 237. REV Illinois Investment Tax credits.
7    (a) For tax years beginning on or after the effective date
8of this amendatory Act of the 102nd General Assembly, a
9taxpayer shall be allowed a credit against the tax imposed by
10subsections (a) and (b) of Section 201 for investment in
11qualified property which is placed in service at the site of a
12REV Illinois Project subject to an agreement between the
13taxpayer and the Department of Commerce and Economic
14Opportunity pursuant to the Reimagining Energy and Electric
15Vehicles in Illinois Act. For partners, shareholders of
16Subchapter S corporations, and owners of limited liability
17companies, if the liability company is treated as a
18partnership for purposes of federal and State income taxation,
19there shall be allowed a credit under this Section to be
20determined in accordance with the determination of income and
21distributive share of income under Sections 702 and 704 and
22Subchapter S of the Internal Revenue Code. The credit shall be
230.5% of the basis for such property. The credit shall be
24available only in the taxable year in which the property is
25placed in service and shall not be allowed to the extent that

 

 

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1it would reduce a taxpayer's liability for the tax imposed by
2subsections (a) and (b) of Section 201 to below zero. The
3credit shall be allowed for the tax year in which the property
4is placed in service, or, if the amount of the credit exceeds
5the tax liability for that year, whether it exceeds the
6original liability or the liability as later amended, such
7excess may be carried forward and applied to the tax liability
8of the 5 taxable years following the excess credit year. The
9credit shall be applied to the earliest year for which there is
10a liability. If there is credit from more than one tax year
11that is available to offset a liability, the credit accruing
12first in time shall be applied first.
13    (b) The term qualified property means property which:
14        (1) is tangible, whether new or used, including
15    buildings and structural components of buildings;
16        (2) is depreciable pursuant to Section 167 of the
17    Internal Revenue Code, except that "3-year property" as
18    defined in Section 168(c)(2)(A) of that Code is not
19    eligible for the credit provided by this Section;
20        (3) is acquired by purchase as defined in Section
21    179(d) of the Internal Revenue Code;
22        (4) is used at the site of the REV Illinois Project by
23    the taxpayer; and
24        (5) has not been previously used in Illinois in such a
25    manner and by such a person as would qualify for the credit
26    provided by this Section.

 

 

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1    (c) The basis of qualified property shall be the basis
2used to compute the depreciation deduction for federal income
3tax purposes.
4    (d) If the basis of the property for federal income tax
5depreciation purposes is increased after it has been placed in
6service at the site of the REV Illinois Project by the
7taxpayer, the amount of such increase shall be deemed property
8placed in service on the date of such increase in basis.
9    (e) The term "placed in service" shall have the same
10meaning as under Section 46 of the Internal Revenue Code.
11    (f) If during any taxable year, any property ceases to be
12qualified property in the hands of the taxpayer within 48
13months after being placed in service, or the situs of any
14qualified property is moved from the REV Illinois Project site
15within 48 months after being placed in service, the tax
16imposed under subsections (a) and (b) of Section 201 for such
17taxable year shall be increased. Such increase shall be
18determined by (i) recomputing the investment credit which
19would have been allowed for the year in which credit for such
20property was originally allowed by eliminating such property
21from such computation, and (ii) subtracting such recomputed
22credit from the amount of credit previously allowed. For the
23purposes of this subsection (f), a reduction of the basis of
24qualified property resulting from a redetermination of the
25purchase price shall be deemed a disposition of qualified
26property to the extent of such reduction.

 

 

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1(Source: P.A. 102-669, eff. 11-16-21.)
 
2    (35 ILCS 5/704A)
3    Sec. 704A. Employer's return and payment of tax withheld.
4    (a) In general, every employer who deducts and withholds
5or is required to deduct and withhold tax under this Act on or
6after January 1, 2008 shall make those payments and returns as
7provided in this Section.
8    (b) Returns. Every employer shall, in the form and manner
9required by the Department, make returns with respect to taxes
10withheld or required to be withheld under this Article 7 for
11each quarter beginning on or after January 1, 2008, on or
12before the last day of the first month following the close of
13that quarter.
14    (c) Payments. With respect to amounts withheld or required
15to be withheld on or after January 1, 2008:
16        (1) Semi-weekly payments. For each calendar year, each
17    employer who withheld or was required to withhold more
18    than $12,000 during the one-year period ending on June 30
19    of the immediately preceding calendar year, payment must
20    be made:
21            (A) on or before each Friday of the calendar year,
22        for taxes withheld or required to be withheld on the
23        immediately preceding Saturday, Sunday, Monday, or
24        Tuesday;
25            (B) on or before each Wednesday of the calendar

 

 

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1        year, for taxes withheld or required to be withheld on
2        the immediately preceding Wednesday, Thursday, or
3        Friday.
4        Beginning with calendar year 2011, payments made under
5    this paragraph (1) of subsection (c) must be made by
6    electronic funds transfer.
7        (2) Semi-weekly payments. Any employer who withholds
8    or is required to withhold more than $12,000 in any
9    quarter of a calendar year is required to make payments on
10    the dates set forth under item (1) of this subsection (c)
11    for each remaining quarter of that calendar year and for
12    the subsequent calendar year.
13        (3) Monthly payments. Each employer, other than an
14    employer described in items (1) or (2) of this subsection,
15    shall pay to the Department, on or before the 15th day of
16    each month the taxes withheld or required to be withheld
17    during the immediately preceding month.
18        (4) Payments with returns. Each employer shall pay to
19    the Department, on or before the due date for each return
20    required to be filed under this Section, any tax withheld
21    or required to be withheld during the period for which the
22    return is due and not previously paid to the Department.
23    (d) Regulatory authority. The Department may, by rule:
24        (1) Permit employers, in lieu of the requirements of
25    subsections (b) and (c), to file annual returns due on or
26    before January 31 of the year for taxes withheld or

 

 

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1    required to be withheld during the previous calendar year
2    and, if the aggregate amounts required to be withheld by
3    the employer under this Article 7 (other than amounts
4    required to be withheld under Section 709.5) do not exceed
5    $1,000 for the previous calendar year, to pay the taxes
6    required to be shown on each such return no later than the
7    due date for such return.
8        (2) Provide that any payment required to be made under
9    subsection (c)(1) or (c)(2) is deemed to be timely to the
10    extent paid by electronic funds transfer on or before the
11    due date for deposit of federal income taxes withheld
12    from, or federal employment taxes due with respect to, the
13    wages from which the Illinois taxes were withheld.
14        (3) Designate one or more depositories to which
15    payment of taxes required to be withheld under this
16    Article 7 must be paid by some or all employers.
17        (4) Increase the threshold dollar amounts at which
18    employers are required to make semi-weekly payments under
19    subsection (c)(1) or (c)(2).
20    (e) Annual return and payment. Every employer who deducts
21and withholds or is required to deduct and withhold tax from a
22person engaged in domestic service employment, as that term is
23defined in Section 3510 of the Internal Revenue Code, may
24comply with the requirements of this Section with respect to
25such employees by filing an annual return and paying the taxes
26required to be deducted and withheld on or before the 15th day

 

 

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1of the fourth month following the close of the employer's
2taxable year. The Department may allow the employer's return
3to be submitted with the employer's individual income tax
4return or to be submitted with a return due from the employer
5under Section 1400.2 of the Unemployment Insurance Act.
6    (f) Magnetic media and electronic filing. With respect to
7taxes withheld in calendar years prior to 2017, any W-2 Form
8that, under the Internal Revenue Code and regulations
9promulgated thereunder, is required to be submitted to the
10Internal Revenue Service on magnetic media or electronically
11must also be submitted to the Department on magnetic media or
12electronically for Illinois purposes, if required by the
13Department.
14    With respect to taxes withheld in 2017 and subsequent
15calendar years, the Department may, by rule, require that any
16return (including any amended return) under this Section and
17any W-2 Form that is required to be submitted to the Department
18must be submitted on magnetic media or electronically.
19    The due date for submitting W-2 Forms shall be as
20prescribed by the Department by rule.
21    (g) For amounts deducted or withheld after December 31,
222009, a taxpayer who makes an election under subsection (f) of
23Section 5-15 of the Economic Development for a Growing Economy
24Tax Credit Act for a taxable year shall be allowed a credit
25against payments due under this Section for amounts withheld
26during the first calendar year beginning after the end of that

 

 

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1taxable year equal to the amount of the credit for the
2incremental income tax attributable to full-time employees of
3the taxpayer awarded to the taxpayer by the Department of
4Commerce and Economic Opportunity under the Economic
5Development for a Growing Economy Tax Credit Act for the
6taxable year and credits not previously claimed and allowed to
7be carried forward under Section 211(4) of this Act as
8provided in subsection (f) of Section 5-15 of the Economic
9Development for a Growing Economy Tax Credit Act. The credit
10or credits may not reduce the taxpayer's obligation for any
11payment due under this Section to less than zero. If the amount
12of the credit or credits exceeds the total payments due under
13this Section with respect to amounts withheld during the
14calendar year, the excess may be carried forward and applied
15against the taxpayer's liability under this Section in the
16succeeding calendar years as allowed to be carried forward
17under paragraph (4) of Section 211 of this Act. The credit or
18credits shall be applied to the earliest year for which there
19is a tax liability. If there are credits from more than one
20taxable year that are available to offset a liability, the
21earlier credit shall be applied first. Each employer who
22deducts and withholds or is required to deduct and withhold
23tax under this Act and who retains income tax withholdings
24under subsection (f) of Section 5-15 of the Economic
25Development for a Growing Economy Tax Credit Act must make a
26return with respect to such taxes and retained amounts in the

 

 

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1form and manner that the Department, by rule, requires and pay
2to the Department or to a depositary designated by the
3Department those withheld taxes not retained by the taxpayer.
4For purposes of this subsection (g), the term taxpayer shall
5include taxpayer and members of the taxpayer's unitary
6business group as defined under paragraph (27) of subsection
7(a) of Section 1501 of this Act. This Section is exempt from
8the provisions of Section 250 of this Act. No credit awarded
9under the Economic Development for a Growing Economy Tax
10Credit Act for agreements entered into on or after January 1,
112015 may be credited against payments due under this Section.
12    (g-1) For amounts deducted or withheld after December 31,
132024, a taxpayer who makes an election under the Reimagining
14Energy and Electric Vehicles in Illinois Act shall be allowed
15a credit against payments due under this Section for amounts
16withheld during the first quarterly reporting period beginning
17after the certificate is issued equal to the portion of the REV
18Illinois Credit attributable to the incremental income tax
19attributable to new employees and retained employees as
20certified by the Department of Commerce and Economic
21Opportunity pursuant to an agreement with the taxpayer under
22the Reimagining Energy and Electric Vehicles in Illinois Act
23for the taxable year. The credit or credits may not reduce the
24taxpayer's obligation for any payment due under this Section
25to less than zero. If the amount of the credit or credits
26exceeds the total payments due under this Section with respect

 

 

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1to amounts withheld during the quarterly reporting period, the
2excess may be carried forward and applied against the
3taxpayer's liability under this Section in the succeeding
4quarterly reporting period as allowed to be carried forward
5under paragraph (4) of Section 211 of this Act. The credit or
6credits shall be applied to the earliest quarterly reporting
7period for which there is a tax liability. If there are credits
8from more than one quarterly reporting period that are
9available to offset a liability, the earlier credit shall be
10applied first. Each employer who deducts and withholds or is
11required to deduct and withhold tax under this Act and who
12retains income tax withholdings this subsection must make a
13return with respect to such taxes and retained amounts in the
14form and manner that the Department, by rule, requires and pay
15to the Department or to a depositary designated by the
16Department those withheld taxes not retained by the taxpayer.
17For purposes of this subsection (g-1), the term taxpayer shall
18include taxpayer and members of the taxpayer's unitary
19business group as defined under paragraph (27) of subsection
20(a) of Section 1501 of this Act. This Section is exempt from
21the provisions of Section 250 of this Act.
22    (g-2) For amounts deducted or withheld after December 31,
232024, a taxpayer who makes an election under the Manufacturing
24Illinois Chips for Real Opportunity (MICRO) Act shall be
25allowed a credit against payments due under this Section for
26amounts withheld during the first quarterly reporting period

 

 

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1beginning after the certificate is issued equal to the portion
2of the MICRO Illinois Credit attributable to the incremental
3income tax attributable to new employees and retained
4employees as certified by the Department of Commerce and
5Economic Opportunity pursuant to an agreement with the
6taxpayer under the Manufacturing Illinois Chips for Real
7Opportunity (MICRO) Act for the taxable year. The credit or
8credits may not reduce the taxpayer's obligation for any
9payment due under this Section to less than zero. If the amount
10of the credit or credits exceeds the total payments due under
11this Section with respect to amounts withheld during the
12quarterly reporting period, the excess may be carried forward
13and applied against the taxpayer's liability under this
14Section in the succeeding quarterly reporting period as
15allowed to be carried forward under paragraph (4) of Section
16211 of this Act. The credit or credits shall be applied to the
17earliest quarterly reporting period for which there is a tax
18liability. If there are credits from more than one quarterly
19reporting period that are available to offset a liability, the
20earlier credit shall be applied first. Each employer who
21deducts and withholds or is required to deduct and withhold
22tax under this Act and who retains income tax withholdings
23this subsection must make a return with respect to such taxes
24and retained amounts in the form and manner that the
25Department, by rule, requires and pay to the Department or to a
26depositary designated by the Department those withheld taxes

 

 

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1not retained by the taxpayer. For purposes of this subsection,
2the term taxpayer shall include taxpayer and members of the
3taxpayer's unitary business group as defined under paragraph
4(27) of subsection (a) of Section 1501 of this Act. This
5Section is exempt from the provisions of Section 250 of this
6Act.
7    (h) An employer may claim a credit against payments due
8under this Section for amounts withheld during the first
9calendar year ending after the date on which a tax credit
10certificate was issued under Section 35 of the Small Business
11Job Creation Tax Credit Act. The credit shall be equal to the
12amount shown on the certificate, but may not reduce the
13taxpayer's obligation for any payment due under this Section
14to less than zero. If the amount of the credit exceeds the
15total payments due under this Section with respect to amounts
16withheld during the calendar year, the excess may be carried
17forward and applied against the taxpayer's liability under
18this Section in the 5 succeeding calendar years. The credit
19shall be applied to the earliest year for which there is a tax
20liability. If there are credits from more than one calendar
21year that are available to offset a liability, the earlier
22credit shall be applied first. This Section is exempt from the
23provisions of Section 250 of this Act.
24    (i) Each employer with 50 or fewer full-time equivalent
25employees during the reporting period may claim a credit
26against the payments due under this Section for each qualified

 

 

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1employee in an amount equal to the maximum credit allowable.
2The credit may be taken against payments due for reporting
3periods that begin on or after January 1, 2020, and end on or
4before December 31, 2027. An employer may not claim a credit
5for an employee who has worked fewer than 90 consecutive days
6immediately preceding the reporting period; however, such
7credits may accrue during that 90-day period and be claimed
8against payments under this Section for future reporting
9periods after the employee has worked for the employer at
10least 90 consecutive days. In no event may the credit exceed
11the employer's liability for the reporting period. Each
12employer who deducts and withholds or is required to deduct
13and withhold tax under this Act and who retains income tax
14withholdings under this subsection must make a return with
15respect to such taxes and retained amounts in the form and
16manner that the Department, by rule, requires and pay to the
17Department or to a depositary designated by the Department
18those withheld taxes not retained by the employer.
19    For each reporting period, the employer may not claim a
20credit or credits for more employees than the number of
21employees making less than the minimum or reduced wage for the
22current calendar year during the last reporting period of the
23preceding calendar year. Notwithstanding any other provision
24of this subsection, an employer shall not be eligible for
25credits for a reporting period unless the average wage paid by
26the employer per employee for all employees making less than

 

 

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1$55,000 during the reporting period is greater than the
2average wage paid by the employer per employee for all
3employees making less than $55,000 during the same reporting
4period of the prior calendar year.
5    For purposes of this subsection (i):
6    "Compensation paid in Illinois" has the meaning ascribed
7to that term under Section 304(a)(2)(B) of this Act.
8    "Employer" and "employee" have the meaning ascribed to
9those terms in the Minimum Wage Law, except that "employee"
10also includes employees who work for an employer with fewer
11than 4 employees. Employers that operate more than one
12establishment pursuant to a franchise agreement or that
13constitute members of a unitary business group shall aggregate
14their employees for purposes of determining eligibility for
15the credit.
16    "Full-time equivalent employees" means the ratio of the
17number of paid hours during the reporting period and the
18number of working hours in that period.
19    "Maximum credit" means the percentage listed below of the
20difference between the amount of compensation paid in Illinois
21to employees who are paid not more than the required minimum
22wage reduced by the amount of compensation paid in Illinois to
23employees who were paid less than the current required minimum
24wage during the reporting period prior to each increase in the
25required minimum wage on January 1. If an employer pays an
26employee more than the required minimum wage and that employee

 

 

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1previously earned less than the required minimum wage, the
2employer may include the portion that does not exceed the
3required minimum wage as compensation paid in Illinois to
4employees who are paid not more than the required minimum
5wage.
6        (1) 25% for reporting periods beginning on or after
7    January 1, 2020 and ending on or before December 31, 2020;
8        (2) 21% for reporting periods beginning on or after
9    January 1, 2021 and ending on or before December 31, 2021;
10        (3) 17% for reporting periods beginning on or after
11    January 1, 2022 and ending on or before December 31, 2022;
12        (4) 13% for reporting periods beginning on or after
13    January 1, 2023 and ending on or before December 31, 2023;
14        (5) 9% for reporting periods beginning on or after
15    January 1, 2024 and ending on or before December 31, 2024;
16        (6) 5% for reporting periods beginning on or after
17    January 1, 2025 and ending on or before December 31, 2025.
18    The amount computed under this subsection may continue to
19be claimed for reporting periods beginning on or after January
201, 2026 and:
21        (A) ending on or before December 31, 2026 for
22    employers with more than 5 employees; or
23        (B) ending on or before December 31, 2027 for
24    employers with no more than 5 employees.
25    "Qualified employee" means an employee who is paid not
26more than the required minimum wage and has an average wage

 

 

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1paid per hour by the employer during the reporting period
2equal to or greater than his or her average wage paid per hour
3by the employer during each reporting period for the
4immediately preceding 12 months. A new qualified employee is
5deemed to have earned the required minimum wage in the
6preceding reporting period.
7    "Reporting period" means the quarter for which a return is
8required to be filed under subsection (b) of this Section.
9    (j) For reporting periods beginning on or after January 1,
102023, if a private employer grants all of its employees the
11option of taking a paid leave of absence of at least 30 days
12for the purpose of serving as an organ donor or bone marrow
13donor, then the private employer may take a credit against the
14payments due under this Section in an amount equal to the
15amount withheld under this Section with respect to wages paid
16while the employee is on organ donation leave, not to exceed
17$1,000 in withholdings for each employee who takes organ
18donation leave. To be eligible for the credit, such a leave of
19absence must be taken without loss of pay, vacation time,
20compensatory time, personal days, or sick time for at least
21the first 30 days of the leave of absence. The private employer
22shall adopt rules governing organ donation leave, including
23rules that (i) establish conditions and procedures for
24requesting and approving leave and (ii) require medical
25documentation of the proposed organ or bone marrow donation
26before leave is approved by the private employer. A private

 

 

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1employer must provide, in the manner required by the
2Department, documentation from the employee's medical
3provider, which the private employer receives from the
4employee, that verifies the employee's organ donation. The
5private employer must also provide, in the manner required by
6the Department, documentation that shows that a qualifying
7organ donor leave policy was in place and offered to all
8qualifying employees at the time the leave was taken. For the
9private employer to receive the tax credit, the employee
10taking organ donor leave must allow for the applicable medical
11records to be disclosed to the Department. If the private
12employer cannot provide the required documentation to the
13Department, then the private employer is ineligible for the
14credit under this Section. A private employer must also
15provide, in the form required by the Department, any
16additional documentation or information required by the
17Department to administer the credit under this Section. The
18credit under this subsection (j) shall be taken within one
19year after the date upon which the organ donation leave
20begins. If the leave taken spans into a second tax year, the
21employer qualifies for the allowable credit in the later of
22the 2 years. If the amount of credit exceeds the tax liability
23for the year, the excess may be carried and applied to the tax
24liability for the 3 taxable years following the excess credit
25year. The tax credit shall be applied to the earliest year for
26which there is a tax liability. If there are credits for more

 

 

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1than one year that are available to offset liability, the
2earlier credit shall be applied first.
3    Nothing in this subsection (j) prohibits a private
4employer from providing an unpaid leave of absence to its
5employees for the purpose of serving as an organ donor or bone
6marrow donor; however, if the employer's policy provides for
7fewer than 30 days of paid leave for organ or bone marrow
8donation, then the employer shall not be eligible for the
9credit under this Section.
10    As used in this subsection (j):
11    "Organ" means any biological tissue of the human body that
12may be donated by a living donor, including, but not limited
13to, the kidney, liver, lung, pancreas, intestine, bone, skin,
14or any subpart of those organs.
15    "Organ donor" means a person from whose body an organ is
16taken to be transferred to the body of another person.
17    "Private employer" means a sole proprietorship,
18corporation, partnership, limited liability company, or other
19entity with one or more employees. "Private employer" does not
20include a municipality, county, State agency, or other public
21employer.
22    This subsection (j) is exempt from the provisions of
23Section 250 of this Act.
24(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
25102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
26Article 110, Section 110-905, eff. 4-19-22; revised 6-1-22.)
 

 

 

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1    Section 925. The Economic Development for a Growing
2Economy Tax Credit Act is amended by changing Sections 5-5,
35-25, and 5-50 as follows:
 
4    (35 ILCS 10/5-5)
5    Sec. 5-5. Definitions. As used in this Act:
6    "Agreement" means the Agreement between a Taxpayer and the
7Department under the provisions of Section 5-50 of this Act.
8    "Applicant" means a Taxpayer that is operating a business
9located or that the Taxpayer plans to locate within the State
10of Illinois and that is engaged in interstate or intrastate
11commerce for the purpose of manufacturing, processing,
12assembling, warehousing, or distributing products, conducting
13research and development, providing tourism services, or
14providing services in interstate commerce, office industries,
15or agricultural processing, but excluding retail, retail food,
16health, or professional services. "Applicant" does not include
17a Taxpayer who closes or substantially reduces an operation at
18one location in the State and relocates substantially the same
19operation to another location in the State. This does not
20prohibit a Taxpayer from expanding its operations at another
21location in the State, provided that existing operations of a
22similar nature located within the State are not closed or
23substantially reduced. This also does not prohibit a Taxpayer
24from moving its operations from one location in the State to

 

 

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1another location in the State for the purpose of expanding the
2operation provided that the Department determines that
3expansion cannot reasonably be accommodated within the
4municipality in which the business is located, or in the case
5of a business located in an incorporated area of the county,
6within the county in which the business is located, after
7conferring with the chief elected official of the municipality
8or county and taking into consideration any evidence offered
9by the municipality or county regarding the ability to
10accommodate expansion within the municipality or county.
11    "Credit" means the amount agreed to between the Department
12and Applicant under this Act, but not to exceed the lesser of:
13(1) the sum of (i) 50% of the Incremental Income Tax
14attributable to New Employees at the Applicant's project and
15(ii) 10% of the training costs of New Employees; or (2) 100% of
16the Incremental Income Tax attributable to New Employees at
17the Applicant's project. However, if the project is located in
18an underserved area, then the amount of the Credit may not
19exceed the lesser of: (1) the sum of (i) 75% of the Incremental
20Income Tax attributable to New Employees at the Applicant's
21project and (ii) 10% of the training costs of New Employees; or
22(2) 100% of the Incremental Income Tax attributable to New
23Employees at the Applicant's project. If the project is not
24located in an underserved area and the an Applicant agrees to
25hire the required number of New Employees, then the maximum
26amount of the Credit for that Applicant may be increased by an

 

 

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1amount not to exceed 25% of the Incremental Income Tax
2attributable to retained employees at the Applicant's project;
3provided that, in order to receive the increase for retained
4employees, the Applicant must provide the additional evidence
5required under paragraph (3) of subsection (b) of Section
65-25. If the project is located in an underserved area and the
7Applicant agrees to hire the required number of New Employees,
8then the maximum amount of the credit for that Applicant may be
9increased by an amount not to exceed 50% of the Incremental
10Income Tax attributable to retained employees at the
11Applicant's project.
12    "Department" means the Department of Commerce and Economic
13Opportunity.
14    "Director" means the Director of Commerce and Economic
15Opportunity.
16    "Full-time Employee" means an individual who is employed
17for consideration for at least 35 hours each week or who
18renders any other standard of service generally accepted by
19industry custom or practice as full-time employment. An
20individual for whom a W-2 is issued by a Professional Employer
21Organization (PEO) is a full-time employee if employed in the
22service of the Applicant for consideration for at least 35
23hours each week or who renders any other standard of service
24generally accepted by industry custom or practice as full-time
25employment to Applicant.
26    "Incremental Income Tax" means the total amount withheld

 

 

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1during the taxable year from the compensation of New Employees
2and, if applicable, retained employees under Article 7 of the
3Illinois Income Tax Act arising from employment at a project
4that is the subject of an Agreement.
5    "New Construction EDGE Agreement" means the Agreement
6between a Taxpayer and the Department under the provisions of
7Section 5-51 of this Act.
8    "New Construction EDGE Credit" means an amount agreed to
9between the Department and the Applicant under this Act as
10part of a New Construction EDGE Agreement that does not exceed
1150% of the Incremental Income Tax attributable to New
12Construction EDGE Employees at the Applicant's project;
13however, if the New Construction EDGE Project is located in an
14underserved area, then the amount of the New Construction EDGE
15Credit may not exceed 75% of the Incremental Income Tax
16attributable to New Construction EDGE Employees at the
17Applicant's New Construction EDGE Project.
18    "New Construction EDGE Employee" means a laborer or worker
19who is employed by an Illinois contractor or subcontractor in
20the actual construction work on the site of a New Construction
21EDGE Project, pursuant to a New Construction EDGE Agreement.
22    "New Construction EDGE Incremental Income Tax" means the
23total amount withheld during the taxable year from the
24compensation of New Construction EDGE Employees.
25    "New Construction EDGE Project" means the building of a
26Taxpayer's structure or building, or making improvements of

 

 

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1any kind to real property. "New Construction EDGE Project"
2does not include the routine operation, routine repair, or
3routine maintenance of existing structures, buildings, or real
4property.
5    "New Employee" means:
6        (a) A Full-time Employee first employed by a Taxpayer
7    in the project that is the subject of an Agreement and who
8    is hired after the Taxpayer enters into the tax credit
9    Agreement.
10        (b) The term "New Employee" does not include:
11            (1) an employee of the Taxpayer who performs a job
12        that was previously performed by another employee, if
13        that job existed for at least 6 months before hiring
14        the employee;
15            (2) an employee of the Taxpayer who was previously
16        employed in Illinois by a Related Member of the
17        Taxpayer and whose employment was shifted to the
18        Taxpayer after the Taxpayer entered into the tax
19        credit Agreement; or
20            (3) a child, grandchild, parent, or spouse, other
21        than a spouse who is legally separated from the
22        individual, of any individual who has a direct or an
23        indirect ownership interest of at least 5% in the
24        profits, capital, or value of the Taxpayer.
25        (c) Notwithstanding paragraph (1) of subsection (b),
26    an employee may be considered a New Employee under the

 

 

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1    Agreement if the employee performs a job that was
2    previously performed by an employee who was:
3            (1) treated under the Agreement as a New Employee;
4        and
5            (2) promoted by the Taxpayer to another job.
6        (d) Notwithstanding subsection (a), the Department may
7    award Credit to an Applicant with respect to an employee
8    hired prior to the date of the Agreement if:
9            (1) the Applicant is in receipt of a letter from
10        the Department stating an intent to enter into a
11        credit Agreement;
12            (2) the letter described in paragraph (1) is
13        issued by the Department not later than 15 days after
14        the effective date of this Act; and
15            (3) the employee was hired after the date the
16        letter described in paragraph (1) was issued.
17    "Noncompliance Date" means, in the case of a Taxpayer that
18is not complying with the requirements of the Agreement or the
19provisions of this Act, the day following the last date upon
20which the Taxpayer was in compliance with the requirements of
21the Agreement and the provisions of this Act, as determined by
22the Director, pursuant to Section 5-65.
23    "Pass Through Entity" means an entity that is exempt from
24the tax under subsection (b) or (c) of Section 205 of the
25Illinois Income Tax Act.
26    "Professional Employer Organization" (PEO) means an

 

 

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1employee leasing company, as defined in Section 206.1(A)(2) of
2the Illinois Unemployment Insurance Act.
3    "Related Member" means a person that, with respect to the
4Taxpayer during any portion of the taxable year, is any one of
5the following:
6        (1) An individual stockholder, if the stockholder and
7    the members of the stockholder's family (as defined in
8    Section 318 of the Internal Revenue Code) own directly,
9    indirectly, beneficially, or constructively, in the
10    aggregate, at least 50% of the value of the Taxpayer's
11    outstanding stock.
12        (2) A partnership, estate, or trust and any partner or
13    beneficiary, if the partnership, estate, or trust, and its
14    partners or beneficiaries own directly, indirectly,
15    beneficially, or constructively, in the aggregate, at
16    least 50% of the profits, capital, stock, or value of the
17    Taxpayer.
18        (3) A corporation, and any party related to the
19    corporation in a manner that would require an attribution
20    of stock from the corporation to the party or from the
21    party to the corporation under the attribution rules of
22    Section 318 of the Internal Revenue Code, if the Taxpayer
23    owns directly, indirectly, beneficially, or constructively
24    at least 50% of the value of the corporation's outstanding
25    stock.
26        (4) A corporation and any party related to that

 

 

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1    corporation in a manner that would require an attribution
2    of stock from the corporation to the party or from the
3    party to the corporation under the attribution rules of
4    Section 318 of the Internal Revenue Code, if the
5    corporation and all such related parties own in the
6    aggregate at least 50% of the profits, capital, stock, or
7    value of the Taxpayer.
8        (5) A person to or from whom there is attribution of
9    stock ownership in accordance with Section 1563(e) of the
10    Internal Revenue Code, except, for purposes of determining
11    whether a person is a Related Member under this paragraph,
12    20% shall be substituted for 5% wherever 5% appears in
13    Section 1563(e) of the Internal Revenue Code.
14    "Startup taxpayer" means a corporation, partnership, or
15other entity incorporated or organized no more than 5 years
16before the filing of an application for an Agreement that has
17never had any Illinois income tax liability, excluding any
18Illinois income tax liability of a Related Member which shall
19not be attributed to the startup taxpayer.
20    "Taxpayer" means an individual, corporation, partnership,
21or other entity that has any Illinois Income Tax liability.
22    Until July 1, 2022, "underserved area" means a geographic
23area that meets one or more of the following conditions:
24        (1) the area has a poverty rate of at least 20%
25    according to the latest federal decennial census;
26        (2) 75% or more of the children in the area

 

 

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1    participate in the federal free lunch program according to
2    reported statistics from the State Board of Education;
3        (3) at least 20% of the households in the area receive
4    assistance under the Supplemental Nutrition Assistance
5    Program (SNAP); or
6        (4) the area has an average unemployment rate, as
7    determined by the Illinois Department of Employment
8    Security, that is more than 120% of the national
9    unemployment average, as determined by the U.S. Department
10    of Labor, for a period of at least 2 consecutive calendar
11    years preceding the date of the application.
12    On and after July 1, 2022, "underserved area" means a
13geographic area that meets one or more of the following
14conditions:
15        (1) the area has a poverty rate of at least 20%
16    according to the latest American Community Survey;
17        (2) 35% or more of the families with children in the
18    area are living below 130% of the poverty line, according
19    to the latest American Community Survey;
20        (3) at least 20% of the households in the area receive
21    assistance under the Supplemental Nutrition Assistance
22    Program (SNAP); or
23        (4) the area has an average unemployment rate, as
24    determined by the Illinois Department of Employment
25    Security, that is more than 120% of the national
26    unemployment average, as determined by the U.S. Department

 

 

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1    of Labor, for a period of at least 2 consecutive calendar
2    years preceding the date of the application.
3(Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22;
4102-700, eff. 4-19-22.)
 
5    (35 ILCS 10/5-25)
6    Sec. 5-25. Review of Application.
7    (a) (Blank).
8    (b) The Department shall determine which projects will
9benefit the State. In making its recommendation that an
10Applicant's application for Credit should or should not be
11accepted, which shall occur within a reasonable time frame as
12determined by the nature of the application, the Department
13shall determine that all the following conditions exist:
14        (1) The Applicant's project intends, as required by
15    subsection (b) of Section 5-20 to make the required
16    investment in the State and intends to hire the required
17    number of New Employees in Illinois as a result of that
18    project.
19        (2) The Applicant's project is economically sound and
20    will benefit the people of the State of Illinois by
21    increasing opportunities for employment and strengthen the
22    economy of Illinois.
23        (3) The Applicant has certified that That, if not for
24    the Credit, the project would not occur in Illinois, which
25    may be demonstrated by evidence that receipt of the Credit

 

 

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1    is essential to the Applicant's decision to create new
2    jobs in the State, such as the magnitude of the cost
3    differential between Illinois and a competing State; in
4    addition, if the Applicant is seeking an increase in the
5    maximum amount of the Credit for retained employees, the
6    Applicant must provide evidence the Applicant has
7    multi-state location options and could reasonably and
8    efficiently locate outside of the State or demonstrate
9    that at least one other state is being considered for the
10    project.
11        (4) A cost differential is identified, using best
12    available data, in the projected costs for the Applicant's
13    project compared to the costs in the competing state,
14    including the impact of the competing state's incentive
15    programs. The competing state's incentive programs shall
16    include state, local, private, and federal funds
17    available. This paragraph (4) applies only to agreements
18    entered into before the effective date of this amendatory
19    Act of the 102nd General Assembly.
20        (5) The political subdivisions affected by the project
21    have committed local incentives with respect to the
22    project, considering local ability to assist.
23        (6) Awarding the Credit will result in an overall
24    positive fiscal impact to the State, as certified by the
25    Department using the best available data.
26        (7) The Credit is not prohibited by Section 5-35 of

 

 

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1    this Act.
2(Source: P.A. 102-330, eff. 1-1-22.)
 
3    (35 ILCS 10/5-50)
4    Sec. 5-50. Contents of Agreements with Applicants. The
5Department shall enter into an Agreement with an Applicant
6that is awarded a Credit under this Act. The Agreement must
7include all of the following:
8        (1) A detailed description of the project that is the
9    subject of the Agreement, including the location and
10    amount of the investment and jobs created or retained.
11        (2) The duration of the Credit and the first taxable
12    year for which the Credit may be claimed.
13        (3) The Credit amount that will be allowed for each
14    taxable year.
15        (4) A requirement that the Taxpayer shall maintain
16    operations at the project location that shall be stated as
17    a minimum number of years not to exceed 10.
18        (5) A specific method for determining the number of
19    New Employees employed during a taxable year.
20        (6) A requirement that the Taxpayer shall annually
21    report to the Department the number of New Employees, the
22    Incremental Income Tax withheld in connection with the New
23    Employees, and any other information the Director needs to
24    perform the Director's duties under this Act.
25        (7) A requirement that the Director is authorized to

 

 

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1    verify with the appropriate State agencies the amounts
2    reported under paragraph (6), and after doing so shall
3    issue a certificate to the Taxpayer stating that the
4    amounts have been verified.
5        (8) A requirement that the Taxpayer shall provide
6    written notification to the Director not more than 30 days
7    after the Taxpayer makes or receives a proposal that would
8    transfer the Taxpayer's State tax liability obligations to
9    a successor Taxpayer.
10        (9) A detailed description of the number of New
11    Employees to be hired, and the occupation and payroll of
12    the full-time jobs to be created or retained as a result of
13    the project.
14        (10) The minimum investment the business enterprise
15    will make in capital improvements, the time period for
16    placing the property in service, and the designated
17    location in Illinois for the investment.
18        (11) A requirement that the Taxpayer shall provide
19    written notification to the Director and the Committee not
20    more than 30 days after the Taxpayer determines that the
21    minimum job creation or retention, employment payroll, or
22    investment no longer is being or will be achieved or
23    maintained as set forth in the terms and conditions of the
24    Agreement.
25        (12) A provision that, if the total number of New
26    Employees falls below a specified level, the allowance of

 

 

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1    Credit shall be suspended until the number of New
2    Employees equals or exceeds the Agreement amount.
3        (13) A detailed description of the items for which the
4    costs incurred by the Taxpayer will be included in the
5    limitation on the Credit provided in Section 5-30.
6        (13.5) A provision that, if the Taxpayer never meets
7    either the investment or job creation and retention
8    requirements specified in the Agreement during the entire
9    5-year period beginning on the effective date of first day
10    of the first taxable year in which the Agreement is
11    executed and ending 5 years after the effective date of
12    the Agreement on the last day of the fifth taxable year
13    after the Agreement is executed, then the Agreement is
14    automatically terminated on the last day of the fifth
15    taxable year after the Agreement is executed and the
16    Taxpayer is not entitled to the award of any credits for
17    any of that 5-year period.
18        (13.7) A provision specifying that, if the Taxpayer
19    ceases principal operations with the intent to shut down
20    the project in the State permanently during the term of
21    the Agreement, then the entire credit amount awarded to
22    the Taxpayer prior to the date the Taxpayer ceases
23    principal operations shall be returned to the Department
24    and shall be reallocated to the local workforce investment
25    area in which the project was located.
26        (14) Any other performance conditions or contract

 

 

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1    provisions as the Department determines are appropriate.
2    The Department shall post on its website the terms of each
3Agreement entered into under this Act on or after the
4effective date of this amendatory Act of the 97th General
5Assembly. Such information shall be posted within 10 days
6after entering into the Agreement and must include the
7following:
8        (1) the name of the recipient business;
9        (2) the location of the project;
10        (3) the estimated value of the credit;
11        (4) the number of new jobs and, if applicable,
12    retained jobs pledged as a result of the project; and
13        (5) whether or not the project is located in an
14    underserved area.
15(Source: P.A. 100-511, eff. 9-18-17.)
 
16    Section 930. The Film Production Services Tax Credit Act
17of 2008 is amended by changing Sections 10 and 42 as follows:
 
18    (35 ILCS 16/10)
19    Sec. 10. Definitions. As used in this Act:
20    "Accredited production" means: (i) for productions
21commencing before May 1, 2006, a film, video, or television
22production that has been certified by the Department in which
23the aggregate Illinois labor expenditures included in the cost
24of the production, in the period that ends 12 months after the

 

 

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1time principal filming or taping of the production began,
2exceed $100,000 for productions of 30 minutes or longer, or
3$50,000 for productions of less than 30 minutes; and (ii) for
4productions commencing on or after May 1, 2006, a film, video,
5or television production that has been certified by the
6Department in which the Illinois production spending included
7in the cost of production in the period that ends 12 months
8after the time principal filming or taping of the production
9began exceeds $100,000 for productions of 30 minutes or longer
10or exceeds $50,000 for productions of less than 30 minutes.
11"Accredited production" does not include a production that:
12        (1) is news, current events, or public programming, or
13    a program that includes weather or market reports;
14        (2) is a talk show;
15        (3) is a production in respect of a game,
16    questionnaire, or contest;
17        (4) is a sports event or activity;
18        (5) is a gala presentation or awards show;
19        (6) is a finished production that solicits funds;
20        (7) is a production produced by a film production
21    company if records, as required by 18 U.S.C. 2257, are to
22    be maintained by that film production company with respect
23    to any performer portrayed in that single media or
24    multimedia program; or
25        (8) is a production produced primarily for industrial,
26    corporate, or institutional purposes.

 

 

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1    "Accredited animated production" means an accredited
2production in which movement and characters' performances are
3created using a frame-by-frame technique and a significant
4number of major characters are animated. Motion capture by
5itself is not an animation technique.
6    "Accredited production certificate" means a certificate
7issued by the Department certifying that the production is an
8accredited production that meets the guidelines of this Act.
9    "Applicant" means a taxpayer that is a film production
10company that is operating or has operated an accredited
11production located within the State of Illinois and that (i)
12owns the copyright in the accredited production throughout the
13Illinois production period or (ii) has contracted directly
14with the owner of the copyright in the accredited production
15or a person acting on behalf of the owner to provide services
16for the production, where the owner of the copyright is not an
17eligible production corporation.
18    "Credit" means:
19        (1) for an accredited production approved by the
20    Department on or before January 1, 2005 and commencing
21    before May 1, 2006, the amount equal to 25% of the Illinois
22    labor expenditure approved by the Department. The
23    applicant is deemed to have paid, on its balance due day
24    for the year, an amount equal to 25% of its qualified
25    Illinois labor expenditure for the tax year. For Illinois
26    labor expenditures generated by the employment of

 

 

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1    residents of geographic areas of high poverty or high
2    unemployment, as determined by the Department, in an
3    accredited production commencing before May 1, 2006 and
4    approved by the Department after January 1, 2005, the
5    applicant shall receive an enhanced credit of 10% in
6    addition to the 25% credit; and
7        (2) for an accredited production commencing on or
8    after May 1, 2006 and before January 1, 2009, the amount
9    equal to:
10            (i) 20% of the Illinois production spending for
11        the taxable year; plus
12            (ii) 15% of the Illinois labor expenditures
13        generated by the employment of residents of geographic
14        areas of high poverty or high unemployment, as
15        determined by the Department; and
16        (3) for an accredited production commencing on or
17    after January 1, 2009, the amount equal to:
18            (i) 30% of the Illinois production spending for
19        the taxable year; plus
20            (ii) 15% of the Illinois labor expenditures
21        generated by the employment of residents of geographic
22        areas of high poverty or high unemployment, as
23        determined by the Department.
24    "Department" means the Department of Commerce and Economic
25Opportunity.
26    "Director" means the Director of Commerce and Economic

 

 

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1Opportunity.
2    "Illinois labor expenditure" means salary or wages paid to
3employees of the applicant for services on the accredited
4production.
5    To qualify as an Illinois labor expenditure, the
6expenditure must be:
7        (1) Reasonable in the circumstances.
8        (2) Included in the federal income tax basis of the
9    property.
10        (3) Incurred by the applicant for services on or after
11    January 1, 2004.
12        (4) Incurred for the production stages of the
13    accredited production, from the final script stage to the
14    end of the post-production stage.
15        (5) Limited to the first $25,000 of wages paid or
16    incurred to each employee of a production commencing
17    before May 1, 2006 and the first $100,000 of wages paid or
18    incurred to each employee of a production commencing on or
19    after May 1, 2006 and prior to July 1, 2022. For
20    productions commencing on or after July 1, 2022, limited
21    to the first $500,000 of wages paid or incurred to each
22    eligible nonresident or resident employee of a production
23    company or loan out company that provides in-State
24    services to a production, whether those wages are paid or
25    incurred by the production company, loan out company, or
26    both, subject to withholding payments provided for in

 

 

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1    Article 7 of the Illinois Income Tax Act. For purposes of
2    calculating Illinois labor expenditures for a television
3    series, the eligible nonresident wage limitations provided
4    under this subparagraph are applied to the entire season.
5    For the purpose of this paragraph (5), an eligible
6    nonresident is a nonresident whose wages qualify as an
7    Illinois labor expenditure under the provisions of
8    paragraph (9) that apply to that production.
9        (6) For a production commencing before May 1, 2006,
10    exclusive of the salary or wages paid to or incurred for
11    the 2 highest paid employees of the production.
12        (7) Directly attributable to the accredited
13    production.
14        (8) (Blank).
15        (9) Prior to July 1, 2022, paid to persons resident in
16    Illinois at the time the payments were made. For a
17    production commencing on or after July 1, 2022, paid to
18    persons resident in Illinois and nonresidents at the time
19    the payments were made.
20        For purposes of this subparagraph, if the production
21    is accredited by the Department before the effective date
22    of this amendatory Act of the 102nd General Assembly, only
23    wages paid to nonresidents working in the following
24    positions shall be considered Illinois labor expenditures:
25    Writer, Director, Director of Photography, Production
26    Designer, Costume Designer, Production Accountant, VFX

 

 

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1    Supervisor, Editor, Composer, and Actor, subject to the
2    limitations set forth under this subparagraph. For an
3    accredited Illinois production spending of $25,000,000 or
4    less, no more than 2 nonresident actors' wages shall
5    qualify as an Illinois labor expenditure. For an
6    accredited production with Illinois production spending of
7    more than $25,000,000, no more than 4 nonresident actor's
8    wages shall qualify as Illinois labor expenditures.
9        For purposes of this subparagraph, if the production
10    is accredited by the Department on or after the effective
11    date of this amendatory Act of the 102nd General Assembly,
12    wages paid to nonresidents shall qualify as Illinois labor
13    expenditures only under the following conditions:
14            (A) the nonresident must be employed in a
15        qualified position;
16            (B) for each of those accredited productions, the
17        wages of not more than 9 nonresidents who are employed
18        in a qualified position other than Actor shall qualify
19        as Illinois labor expenditures;
20            (C) for an accredited production with Illinois
21        production spending of $25,000,000 or less, no more
22        than 2 nonresident actors' wages shall qualify as
23        Illinois labor expenditures; and
24            (D) for an accredited production with Illinois
25        production spending of more than $25,000,000, no more
26        than 4 nonresident actors' wages shall qualify as

 

 

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1        Illinois labor expenditures.
2        As used in this paragraph (9), "qualified position"
3    means: Writer, Director, Director of Photography,
4    Production Designer, Costume Designer, Production
5    Accountant, VFX Supervisor, Editor, Composer, or Actor.
6        (10) Paid for services rendered in Illinois.
7    "Illinois production spending" means the expenses incurred
8by the applicant for an accredited production, including,
9without limitation, all of the following:
10        (1) expenses to purchase, from vendors within
11    Illinois, tangible personal property that is used in the
12    accredited production;
13        (2) expenses to acquire services, from vendors in
14    Illinois, for film production, editing, or processing; and
15        (3) for a production commencing before July 1, 2022,
16    the compensation, not to exceed $100,000 for any one
17    employee, for contractual or salaried employees who are
18    Illinois residents performing services with respect to the
19    accredited production. For a production commencing on or
20    after July 1, 2022, the compensation, not to exceed
21    $500,000 for any one employee, for contractual or salaried
22    employees who are Illinois residents or nonresident
23    employees, subject to the limitations set forth under
24    Section 10 of this Act.
25    "Loan out company" means a personal service corporation or
26other entity that is under contract with the taxpayer to

 

 

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1provide specified individual personnel, such as artists, crew,
2actors, producers, or directors for the performance of
3services used directly in a production. "Loan out company"
4does not include entities contracted with by the taxpayer to
5provide goods or ancillary contractor services such as
6catering, construction, trailers, equipment, or
7transportation.
8    "Qualified production facility" means stage facilities in
9the State in which television shows and films are or are
10intended to be regularly produced and that contain at least
11one sound stage of at least 15,000 square feet.
12    Rulemaking authority to implement Public Act 95-1006, if
13any, is conditioned on the rules being adopted in accordance
14with all provisions of the Illinois Administrative Procedure
15Act and all rules and procedures of the Joint Committee on
16Administrative Rules; any purported rule not so adopted, for
17whatever reason, is unauthorized.
18(Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22.)
 
19    (35 ILCS 16/42)
20    Sec. 42. Sunset of credits. The application of credits
21awarded pursuant to this Act shall be limited by a reasonable
22and appropriate sunset date. A taxpayer shall not be awarded
23any new credits pursuant to this Act for tax years beginning on
24or after January 1, 2033 January 1, 2027.
25(Source: P.A. 101-178, eff. 8-1-19; 102-700, eff. 4-19-22.)
 

 

 

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1    Section 935. The Manufacturing Illinois Chips for Real
2Opportunity (MICRO) Act is amended by changing Sections
3110-15, 110-20, 110-30, and 110-40 as follows:
 
4    (35 ILCS 45/110-15)
5    Sec. 110-15. Powers of the Department. The Department, in
6addition to those powers granted under the Civil
7Administrative Code of Illinois, is granted and shall have all
8the powers necessary or convenient to administer the program
9under this Act and to carry out and effectuate the purposes and
10provisions of this Act, including, but not limited to, the
11power and authority to:
12        (1) adopt rules deemed necessary and appropriate for
13    the administration of the program, the designation of
14    projects, and the awarding of credits;
15        (2) establish forms for applications, notifications,
16    contracts, or any other agreements and accept applications
17    at any time during the year;
18        (3) assist taxpayers pursuant to the provisions of
19    this Act and cooperate with taxpayers that are parties to
20    agreements under this Act to promote, foster, and support
21    economic development, capital investment, and job creation
22    or retention within the State;
23        (4) enter into agreements and memoranda of
24    understanding for participation of, and engage in

 

 

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1    cooperation with, agencies of the federal government,
2    units of local government, universities, research
3    foundations or institutions, regional economic development
4    corporations, or other organizations to implement the
5    requirements and purposes of this Act;
6        (5) gather information and conduct inquiries, in the
7    manner and by the methods it deems desirable, including
8    without limitation, gathering information with respect to
9    applicants for the purpose of making any designations or
10    certifications necessary or desirable or to gather
11    information to assist the Department with any
12    recommendation or guidance in the furtherance of the
13    purposes of this Act;
14        (6) establish, negotiate and effectuate agreements and
15    any term, agreement, or other document with any person,
16    necessary or appropriate to accomplish the purposes of
17    this Act; and to consent, subject to the provisions of any
18    agreement with another party, to the modification or
19    restructuring of any agreement to which the Department is
20    a party;
21        (7) fix, determine, charge, and collect any premiums,
22    fees, charges, costs, and expenses from applicants,
23    including, without limitation, any application fees,
24    commitment fees, program fees, financing charges, or
25    publication fees as deemed appropriate to pay expenses
26    necessary or incident to the administration, staffing, or

 

 

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1    operation in connection with the Department's activities
2    under this Act, or for preparation, implementation, and
3    enforcement of the terms of the agreement, or for
4    consultation, advisory and legal fees, and other costs;
5    however, all fees and expenses incident thereto shall be
6    the responsibility of the applicant;
7        (8) provide for sufficient personnel to permit
8    administration, staffing, operation, and related support
9    required to adequately discharge its duties and
10    responsibilities described in this Act from funds made
11    available through charges to applicants or from funds as
12    may be appropriated by the General Assembly for the
13    administration of this Act;
14        (9) require applicants, upon written request, to issue
15    any necessary authorization to the appropriate federal,
16    State, or local authority for the release of information
17    concerning a project being considered under the provisions
18    of this Act, with the information requested to include,
19    but not be limited to, financial reports, returns, or
20    records relating to the taxpayer or its project;
21        (10) require that a taxpayer shall at all times keep
22    proper books of record and account in accordance with
23    generally accepted accounting principles consistently
24    applied, with the books, records, or papers related to the
25    agreement in the custody or control of the taxpayer open
26    for reasonable Department inspection and audits, and

 

 

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1    including, without limitation, the making of copies of the
2    books, records, or papers, and the inspection or appraisal
3    of any of the taxpayer or project assets;
4        (11) take whatever actions are necessary or
5    appropriate to protect the State's interest in the event
6    of bankruptcy, default, foreclosure, or noncompliance with
7    the terms and conditions of financial assistance or
8    participation required under this Act, including the power
9    to sell, dispose, lease, or rent, upon terms and
10    conditions determined by the Director to be appropriate,
11    real or personal property that the Department may receive
12    as a result of these actions; and .
13        (12) determine the conditions and process for renewal
14    of the Manufacturing Illinois Chips for Real Opportunity
15    incentives awarded under this Act in accordance with
16    Section 110-40 of this Act.
17(Source: P.A. 102-700, eff. 4-19-22.)
 
18    (35 ILCS 45/110-20)
19    Sec. 110-20. Manufacturing Illinois Chips for Real
20Opportunity (MICRO) Program; project applications.
21    (a) The Manufacturing Illinois Chips for Real Opportunity
22(MICRO) Program is hereby established and shall be
23administered by the Department. The Program will provide
24financial incentives to eligible semiconductor manufacturers
25and microchip manufacturers.

 

 

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1    (b) Any taxpayer planning a project to be located in
2Illinois may request consideration for designation of its
3project as a MICRO project, by formal written letter of
4request or by formal application to the Department, in which
5the applicant states its intent to make at least a specified
6level of investment and intends to hire a specified number of
7full-time employees at a designated location in Illinois. As
8circumstances require, the Department shall require a formal
9application from an applicant and a formal letter of request
10for assistance.
11    (c) In order to qualify for credits under the program, an
12applicant must:
13        (1) for a semiconductor manufacturer or microchip
14    manufacturer:
15            (A) make an investment of at least $1,500,000,000
16        in capital improvements at the project site;
17            (B) to be placed in service within the State
18        within a 60-month period after approval of the
19        application; and
20            (C) create at least 500 new full-time employee
21        jobs; or
22        (2) for a semiconductor or microchip component parts
23    manufacturer:
24            (A) make an investment of at least $300,000,000 in
25        capital improvements at the project site;
26            (B) manufacture one or more parts that are

 

 

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1        primarily used for the manufacture of semiconductors
2        or microchips;
3            (C) to be placed in service within the State
4        within a 60-month period after approval of the
5        application; and
6            (D) create at least 150 new full-time employee
7        jobs; or
8        (3) for a semiconductor manufacturer or microchip
9    manufacturer or a semiconductor or microchip component
10    parts manufacturer that does not quality under paragraph
11    (2) above:
12            (A) make an investment of at least $20,000,000 in
13        capital improvements at the project site;
14            (B) to be placed in service within the State
15        within a 48-month period after approval of the
16        application; and
17            (C) create at least 50 new full-time employee
18        jobs; or
19        (4) for a semiconductor manufacturer or microchip
20    manufacturer or a semiconductor or microchip component
21    parts manufacturer with existing operations in Illinois
22    that intends to convert or expand, in whole or in part, the
23    existing facility from traditional manufacturing to
24    semiconductor manufacturing or microchip manufacturing or
25    semiconductor or microchip component parts manufacturing:
26            (A) make an investment of at least $100,000,000 in

 

 

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1        capital improvements at the project site;
2            (B) to be placed in service within the State
3        within a 60-month period after approval of the
4        application; and
5            (C) create the lesser of 75 new full-time employee
6        jobs or new full-time employee jobs equivalent to 10%
7        of the Statewide baseline applicable to the taxpayer
8        and any related member at the time of application.
9    (d) For any applicant creating the full-time employee jobs
10noted in subsection (c), those jobs must have a total
11compensation equal to or greater than 120% of the average wage
12paid to full-time employees in the county where the project is
13located, as determined by the Department U.S. Bureau of Labor
14Statistics.
15    (e) Each applicant must outline its hiring plan and
16commitment to recruit and hire full-time employee positions at
17the project site. The hiring plan may include a partnership
18with an institution of higher education to provide
19internships, including, but not limited to, internships
20supported by the Clean Jobs Workforce Network Program, or
21full-time permanent employment for students at the project
22site. Additionally, the applicant may create or utilize
23participants from apprenticeship programs that are approved by
24and registered with the United States Department of Labor's
25Bureau of Apprenticeship and Training. The Applicant may apply
26for apprenticeship education expense credits in accordance

 

 

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1with the provisions set forth in 14 Ill. Admin. Code 522. Each
2applicant is required to report annually, on or before April
315, on the diversity of its workforce in accordance with
4Section 110-50 of this Act. For existing facilities of
5applicants under paragraph (3) of subsection (b) above, if the
6taxpayer expects a reduction in force due to its transition to
7manufacturing semiconductors, microchips, or semiconductor or
8microchip component parts, the plan submitted under this
9Section must outline the taxpayer's plan to assist with
10retraining its workforce aligned with the taxpayer's adoption
11of new technologies and anticipated efforts to retrain
12employees through employment opportunities within the
13taxpayer's workforce.
14    (f) A taxpayer may not enter into more than one agreement
15under this Act with respect to a single address or location for
16the same period of time. Also, a taxpayer may not enter into an
17agreement under this Act with respect to a single address or
18location for the same period of time for which the taxpayer
19currently holds an active agreement under the Economic
20Development for a Growing Economy Tax Credit Act. This
21provision does not preclude the applicant from entering into
22an additional agreement after the expiration or voluntary
23termination of an earlier agreement under this Act or under
24the Economic Development for a Growing Economy Tax Credit Act
25to the extent that the taxpayer's application otherwise
26satisfies the terms and conditions of this Act and is approved

 

 

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1by the Department. An applicant with an existing agreement
2under the Economic Development for a Growing Economy Tax
3Credit Act may submit an application for an agreement under
4this Act after it terminates any existing agreement under the
5Economic Development for a Growing Economy Tax Credit Act with
6respect to the same address or location.
7(Source: P.A. 102-700, eff. 4-19-22.)
 
8    (35 ILCS 45/110-30)
9    Sec. 110-30. Tax credit awards.
10    (a) Subject to the conditions set forth in this Act, a
11taxpayer is entitled to a credit against the tax imposed
12pursuant to subsections (a) and (b) of Section 201 of the
13Illinois Income Tax Act for a taxable year beginning on or
14after January 1, 2025 if the taxpayer is awarded a credit by
15the Department in accordance with an agreement under this Act.
16The Department has authority to award credits under this Act
17on and after January 1, 2023.
18    (b) A taxpayer may receive a tax credit against the tax
19imposed under subsections (a) and (b) of Section 201 of the
20Illinois Income Tax Act, not to exceed the sum of (i) 75% of
21the incremental income tax attributable to new employees at
22the applicant's project and (ii) 10% of the training costs of
23the new employees. If the project is located in an underserved
24area or an energy transition area, then the amount of the
25credit may not exceed the sum of (i) 100% of the incremental

 

 

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1income tax attributable to new employees at the applicant's
2project; and (ii) 10% of the training costs of the new
3employees. The percentage of training costs includable in the
4calculation may be increased by an additional 15% for training
5costs associated with new employees that are recent (2 years
6or less) graduates, certificate holders, or credential
7recipients from an institution of higher education in
8Illinois, or, if the training is provided by an institution of
9higher education in Illinois, the Clean Jobs Workforce Network
10Program, or an apprenticeship and training program located in
11Illinois and approved by and registered with the United States
12Department of Labor's Bureau of Apprenticeship and Training.
13An applicant is also eligible for a training credit that shall
14not exceed 10% of the training costs of retained employees for
15the purpose of upskilling to meet the operational needs of the
16applicant or the project. The percentage of training costs
17includable in the calculation shall not exceed a total of 25%.
18If an applicant agrees to hire the required number of new
19employees, then the maximum amount of the credit for that
20applicant may be increased by an amount not to exceed 75% 25%
21of the incremental income tax attributable to retained
22employees at the applicant's project; provided that, in order
23to receive the increase for retained employees, the applicant
24must, if applicable, meet or exceed the statewide baseline. If
25the Project is in an underserved area or an energy transition
26area, the maximum amount of the credit attributable to

 

 

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1retained employees for the applicant may be increased to an
2amount not to exceed 100% 50% of the incremental income tax
3attributable to retained employees at the applicant's project;
4provided that, in order to receive the increase for retained
5employees, the applicant must meet or exceed the statewide
6baseline. Credits awarded may include credit earned for
7incremental income tax withheld and training costs incurred by
8the taxpayer beginning on or after January 1, 2023. Credits so
9earned and certified by the Department may be applied against
10the tax imposed by subsections (a) and (b) of Section 201 of
11the Illinois Income Tax Act for taxable years beginning on or
12after January 1, 2025.
13    (c) MICRO Construction Jobs Credit. For construction wages
14associated with a project that qualified for a credit under
15subsection (b), the taxpayer may receive a tax credit against
16the tax imposed under subsections (a) and (b) of Section 201 of
17the Illinois Income Tax Act in an amount equal to 50% of the
18incremental income tax attributable to construction wages paid
19in connection with construction of the project facilities, as
20a jobs credit for workers hired to construct the project.
21    The MICRO Construction Jobs Credit may not exceed 75% of
22the amount of the incremental income tax attributable to
23construction wages paid in connection with construction of the
24project facilities if the project is in an underserved area or
25an energy transition area.
26    (d) The Department shall certify to the Department of

 

 

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1Revenue: (1) the identity of taxpayers that are eligible for
2the MICRO Credit and MICRO Construction Jobs Credit; (2) the
3amount of the MICRO Credits and MICRO Construction Jobs
4Credits awarded in each calendar year; and (3) the amount of
5the MICRO Credit and MICRO Construction Jobs Credit claimed in
6each calendar year. MICRO Credits awarded may include credit
7earned for incremental income tax withheld and training costs
8incurred by the taxpayer beginning on or after January 1,
92023. Credits so earned and certified by the Department may be
10applied against the tax imposed by Section 201(a) and (b) of
11the Illinois Income Tax Act for taxable years beginning on or
12after January 1, 2025.
13    (e) Applicants seeking certification for a tax credits
14related to the construction of the project facilities in the
15State shall require the contractor to enter into a project
16labor agreement that conforms with the Project Labor
17Agreements Act.
18    (f) Any applicant issued a certificate for a tax credit or
19tax exemption under this Act must annually report to the
20Department the total project tax benefits received. Reports
21are due no later than May 31 of each year and shall cover the
22previous calendar year. The first report is for the 2023
23calendar year and is due no later than May 31, 2023. For
24applicants issued a certificate of exemption under Section
25110-105 of this Act, the report shall be the same as required
26for a High Impact Business under subsection (a-5) of Section

 

 

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18.1 of the Illinois Enterprise Zone Act. Each person required
2to file a return under the Gas Revenue Tax Act, the Electricity
3Excise Tax Act, or the Telecommunications Excise Tax Act shall
4file a report on customers issued an exemption certificate
5under Section 110-95 of this Act in the same manner and form as
6they are required to report under subsection (b) of Section
78.1 of the Illinois Enterprise Zone Act.
8    (g) Nothing in this Act shall prohibit an award of credit
9to an applicant that uses a PEO if all other award criteria are
10satisfied.
11    (h) With respect to any portion of a credit that is based
12on the incremental income tax attributable to new employees or
13retained employees, in lieu of the credit allowed under this
14Act against the taxes imposed pursuant to subsections (a) and
15(b) of Section 201 of the Illinois Income Tax Act, a taxpayer
16that otherwise meets the criteria set forth in this Section,
17the taxpayer may elect to claim the credit, on or after January
181, 2025, against its obligation to pay over withholding under
19Section 704A of the Illinois Income Tax Act. The election
20shall be made in the manner prescribed by the Department of
21Revenue and once made shall be irrevocable.
22(Source: P.A. 102-700, eff. 4-19-22.)
 
23    (35 ILCS 45/110-40)
24    Sec. 110-40. Amount and duration of the credits;
25limitation to amount of costs of specified items. The

 

 

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1Department shall determine the amount and duration of the
2credit awarded under this Act, subject to the limitations set
3forth in this Act. For a project that qualified under
4paragraph (1), (2), or (4) of subsection (c) of Section
5110-20, the duration of the credit may not exceed 15 taxable
6years, with an option to renew the agreement for no more than
7one term not to exceed an additional 15 taxable years. For
8project that qualified under paragraph (3) of subsection (c)
9of Section 110-20, the duration of the credit may not exceed 10
10taxable years, with an option to renew the agreement for no
11more than one term not to exceed an additional 10 taxable
12years. The credit may be stated as a percentage of the
13incremental income tax and training costs attributable to the
14applicant's project and may include a fixed dollar limitation.
15    Nothing in this Section shall prevent the Department, in
16consultation with the Department of Revenue, from adopting
17rules to extend the sunset of any earned, existing, and unused
18tax credit or credits a taxpayer may be in possession of.
19(Source: P.A. 102-700, eff. 4-19-22.)
 
20    Section 940. The Use Tax Act is amended by adding Section
213-87 as follows:
 
22    (35 ILCS 105/3-87 new)
23    Sec. 3-87. Sustainable Aviation Fuel Purchase Credit.
24    (a) From June 1, 2023 through January 1, 2033, sustainable

 

 

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1aviation fuel sold to or used by an air carrier, certified by
2the carrier to the Department to be used in Illinois, earns a
3credit in the amount of $1.50 per gallon of sustainable
4aviation fuel purchased. The credit earned shall be referred
5to as the Sustainable Aviation Fuel Credit.
6    The purchaser of sustainable aviation fuel shall certify
7to the seller of the aviation fuel that the purchaser is
8satisfying all or part of its liability under the Use Tax Act
9or the Service Use Tax Act that is due on the purchase of
10aviation fuel by use of the sustainable aviation fuel purchase
11credit.
12    The Sustainable Aviation Fuel Purchase Credit
13certification must be dated and shall include the name and
14address of the purchaser, the purchaser's registration number,
15if registered, the credit being applied, and a statement that
16the State use tax or service use tax liability is being
17satisfied with the air carrier's accumulated sustainable
18aviation fuel purchase credit.
19    Until July 1, 2033, on an annual basis, no credit may be
20earned by an air carrier for soybean oil-derived sustainable
21aviation fuel once air carriers in this State have
22collectively purchased sustainable aviation fuel containing
2310,000,000 gallons of soybean oil feedstock.
24    A Sustainable Aviation Fuel Purchase Credit certification
25provided by the air carrier may be used to satisfy the
26retailer's or serviceman's liability on aviation fuel under

 

 

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1the Retailers' Occupation Tax Act or Service Occupation Tax
2Act for the credit claimed.
3    (b) As used in this Section, "sustainable aviation fuel"
4means liquid fuel that meets the criteria set forth in
5subsections (d) and (e) of Section 40B of the federal Internal
6Revenue Code of 1986 or:
7        (1) consists of synthesized hydrocarbons and meets the
8    requirements of:
9            (A) the American Society for Testing and Materials
10        International Standard D7566; or
11            (B) the Fischer-Tropsch provisions of American
12        Society for Testing and Materials International
13        Standard D1655, Annex A1;
14        (2) prior to June 1, 2028, is derived from biomass
15    resources, waste streams, renewable energy sources, or
16    gaseous carbon oxides, and beginning on June 1, 2028 is
17    derived from domestic biomass resources;
18        (3) is not derived from any palm derivatives; and
19        (4) achieves at least a 50% lifecycle greenhouse gas
20    emissions reduction in comparison with petroleum-based jet
21    fuel, as determined by a test that shows:
22            (A) that the fuel production pathway achieves at
23        least a 50% reduction of the aggregate attributional
24        core lifecycle emissions and the positive induced land
25        use change values under the lifecycle methodology for
26        sustainable aviation fuels adopted by the

 

 

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1        International Civil Aviation Organization with the
2        agreement of the United States; or
3            (B) that the fuel production pathway achieves at
4        least a 50% reduction of the aggregate attributional
5        core lifecycle greenhouse gas emissions values
6        utilizing the most recent version of Argonne National
7        Laboratory's GREET model, inclusive of agricultural
8        practices and carbon capture and sequestration.
 
9    Section 950. The Service Use Tax Act is amended by adding
10Section 3-72 as follows:
 
11    (35 ILCS 110/3-72 new)
12    Sec. 3-72. Sustainable Aviation Fuel Purchase Credit.
13    (a) From June 1, 2023 through January 1, 2033, sustainable
14aviation fuel sold to or used by an air carrier, certified by
15the carrier to the Department to be used in Illinois, earns a
16credit in the amount of $1.50 per gallon of sustainable
17aviation fuel purchased. The credit earned shall be referred
18to as the Sustainable Aviation Fuel Credit.
19    The purchaser of sustainable aviation fuel shall certify
20to the seller of the aviation fuel that the purchaser is
21satisfying all or part of its liability under the Use Tax Act
22or the Service Use Tax Act that is due on the purchase of
23aviation fuel by use of the sustainable aviation fuel purchase
24credit.

 

 

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1    The Sustainable Aviation Fuel Purchase Credit
2certification must be dated and shall include the name and
3address of the purchaser, the purchaser's registration number,
4if registered, the credit being applied, and a statement that
5the State use tax or service use tax liability is being
6satisfied with the air carrier's accumulated sustainable
7aviation fuel purchase credit.
8    Until July 1, 2033, on an annual basis, no credit may be
9earned by an air carrier for soybean oil-derived sustainable
10aviation fuel once air carriers in this State have
11collectively purchased sustainable aviation fuel containing
1210,000,000 gallons of soybean oil feedstock.
13    A Sustainable Aviation Fuel Purchase Credit certification
14provided by the air carrier may be used to satisfy the
15retailer's or serviceman's liability on aviation fuel under
16the Retailers' Occupation Tax Act or Service Occupation Tax
17Act for the credit claimed.
18    (b) As used in this Section, "sustainable aviation fuel"
19means liquid fuel that meets the criteria set forth in
20subsections (d) and (e) of Section 40B of the federal Internal
21Revenue Code of 1986 or:
22        (1) consists of synthesized hydrocarbons and meets the
23    requirements of:
24            (A) the American Society for Testing and Materials
25        International Standard D7566; or
26            (B) the Fischer-Tropsch provisions of American

 

 

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1        Society for Testing and Materials International
2        Standard D1655, Annex A1;
3        (2) prior to June 1, 2028, is derived from biomass
4    resources, waste streams, renewable energy sources, or
5    gaseous carbon oxides, and beginning on June 1, 2028 is
6    derived from domestic biomass resources;
7        (3) is not derived from any palm derivatives; and
8        (4) achieves at least a 50% lifecycle greenhouse gas
9    emissions reduction in comparison with petroleum-based jet
10    fuel, as determined by a test that shows:
11            (A) that the fuel production pathway achieves at
12        least a 50% reduction of the aggregate attributional
13        core lifecycle emissions and the positive induced land
14        use change values under the lifecycle methodology for
15        sustainable aviation fuels adopted by the
16        International Civil Aviation Organization with the
17        agreement of the United States; or
18            (B) that the fuel production pathway achieves at
19        least a 50% reduction of the aggregate attributional
20        core lifecycle greenhouse gas emissions values
21        utilizing the most recent version of Argonne National
22        Laboratory's GREET model, inclusive of agricultural
23        practices and carbon capture and sequestration.
 
24    Section 965. The Retailers' Occupation Tax Act is amended
25by changing Section 5m as follows:
 

 

 

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1    (35 ILCS 120/5m)
2    Sec. 5m. Building materials exemption; REV Illinois
3projects electric vehicle manufacturer, electric vehicle
4component parts manufacturer, and electric vehicle power
5supply manufacturer. Each retailer who makes a sale of
6building materials that will be incorporated into a real
7estate in an electric vehicle manufacturing facility, an
8electric vehicle component parts manufacturing facility, or an
9electric vehicle power supply manufacturing facility REV
10Illinois Project which meets the qualifications under
11paragraphs (1), (2), or (4) of subsection (c) of Section 20 of
12the Reimagining Electric Vehicles in Illinois Act for which a
13certificate of exemption has been issued by the Department of
14Commerce and Economic Opportunity under Section 105 of the
15Reimagining Energy and Electric Vehicles in Illinois Act, may
16deduct receipts from those such sales when calculating any
17State or local use and occupation taxes. No retailer who is
18eligible for the deduction or credit under Section 5k of this
19Act related to enterprise zones or Section 5l of this Act
20related to High Impact Businesses for a given sale shall be
21eligible for the deduction or credit authorized under this
22Section for that same sale.
23    In addition to any other requirements to document the
24exemption allowed under this Section, the retailer must obtain
25from the purchaser's REV Illinois Building Materials Exemption

 

 

10200HB3107sam001- 140 -LRB102 15737 HLH 42605 a

1certificate number issued by the Department. A construction
2contractor or other entity shall not make tax-free purchases
3under this Section unless it has an active REV Illinois
4Building Materials Exemption Certificate issued by the
5Department at the time of purchase.
6    Upon request from the certified manufacturer electric
7vehicle manufacturer, electric vehicle component parts
8manufacturer, or electric vehicle power supply manufacturer
9certified by the Department of Commerce and Economic
10Opportunity under REV Illinois Act, the Department shall issue
11a REV Illinois Building Materials Exemption Certificate for
12each construction contractor or other entity identified by the
13certified manufacturer electric vehicle manufacturer, electric
14vehicle component parts manufacturer, or electric vehicle
15power supply manufacturer. The Department shall make the REV
16Illinois Building Materials Exemption Certificates available
17to each construction contractor or other entity identified by
18the certified manufacturer and to the certified electric
19vehicle manufacturer, electric vehicle component parts
20manufacturer, or electric vehicle power supply manufacturer.
21The request for REV Illinois Building Materials Exemption
22Certificates under this Section from the certified electric
23vehicle manufacturer, electric vehicle component parts
24manufacturer, or electric vehicle power supply manufacturer to
25the Department must include the following information:
26        (1) the name and address of the construction

 

 

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1    contractor or other entity;
2        (2) the name and location or address of the building
3    project site;
4        (3) the estimated amount of the exemption for each
5    construction contractor or other entity for which a
6    request for a REV Illinois Building Materials Exemption
7    Certificate is made, based on a stated estimated average
8    tax rate and the percentage of the contract that consists
9    of materials;
10        (4) the period of time over which supplies for the
11    project are expected to be purchased; and
12        (5) other reasonable information as the Department may
13    require, including but not limited to FEIN numbers, to
14    determine if the contractor or other entity, or any
15    partner, or a corporate officer, and in the case of a
16    limited liability company, any manager or member, of the
17    construction contractor or other entity, is or has been
18    the owner, a partner, a corporate officer, and in the case
19    of a limited liability company, a manager or member, of a
20    person that is in default for moneys due to the Department
21    under this Act or any other tax or fee Act administered by
22    the Department.
23    The Department shall issue the REV Illinois Building
24Materials Exemption Certificates within 3 business days after
25receipt of the request from the certified electric vehicle
26manufacturer, electric vehicle component parts manufacturer,

 

 

10200HB3107sam001- 142 -LRB102 15737 HLH 42605 a

1or electric vehicle power supply manufacturer. This
2requirement does not apply in circumstances where the
3Department, for reasonable cause, is unable to issue the
4Exemption Certificate within 3 business days. The Department
5may refuse to issue a REV Illinois Building Materials
6Exemption Certificate if the owner, any partner, or a
7corporate officer, and in the case of a limited liability
8company, any manager or member, of the construction contractor
9or other entity is or has been the owner, a partner, a
10corporate officer, and in the case of a limited liability
11company, a manager or member, of a person that is in default
12for moneys due to the Department under this Act or any other
13tax or fee Act administered by the Department.
14    The REV Illinois Building Materials Exemption Certificate
15shall contain language stating that if the construction
16contractor or other entity who is issued the Exemption
17Certificate makes a tax-exempt purchase, as described in this
18Section, that is not eligible for exemption under this Section
19or allows another person to make a tax-exempt purchase, as
20described in this Section, that is not eligible for exemption
21under this Section, then, in addition to any tax or other
22penalty imposed, the construction contractor or other entity
23is subject to a penalty equal to the tax that would have been
24paid by the retailer under this Act as well as any applicable
25local retailers' occupation tax on the purchase that is not
26eligible for the exemption.

 

 

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1    The Department, in its discretion, may require that the
2request for REV Illinois Building Materials Exemption
3Certificates be submitted electronically. The Department may,
4in its discretion, issue the Exemption Certificates
5electronically. The REV Illinois Building Materials Exemption
6Certificate number shall be designed in such a way that the
7Department can identify from the unique number on the
8Exemption Certificate issued to a given construction
9contractor or other entity, the name of the REV Illinois
10project designated electric vehicle manufacturing, electric
11vehicle component parts manufacturing, or electric vehicle
12power supply manufacturing site and the construction
13contractor or other entity to whom the Exemption Certificate
14is issued. The REV Illinois Building Materials Exemption
15Certificate shall contain an expiration date, which shall be
16no more than 5 years after the date of issuance. At the request
17of the designated certified electric vehicle manufacturer,
18electric vehicle component parts manufacturer, or electric
19vehicle power supply manufacturer, the Department may renew a
20REV Illinois Building Materials Exemption Certificate. After
21the Department issues Exemption Certificates for a given REV
22Illinois project designated electric vehicle manufacturing,
23electric vehicle component parts manufacturing, or electric
24vehicle power supply manufacturing site, the certified
25electric vehicle manufacturer, electric vehicle component
26parts manufacturer, or electric vehicle power supply

 

 

10200HB3107sam001- 144 -LRB102 15737 HLH 42605 a

1manufacturer may notify the Department of additional
2construction contractors or other entities that are eligible
3for a REV Illinois Building Materials Exemption Certificate.
4Upon receiving such a notification by the certified electric
5vehicle manufacturer, electric vehicle component parts
6manufacturer, or electric vehicle power supply manufacturer
7and subject to the other provisions of this Section, the
8Department shall issue a REV Illinois Building Materials
9Exemption Certificate to each additional construction
10contractor or other entity so identified by the certified
11electric vehicle manufacturer, electric vehicle component
12parts manufacturer, or electric vehicle power supply
13manufacturer. A certified electric vehicle manufacturer,
14electric vehicle component parts manufacturer, or electric
15vehicle power supply manufacturer may ask notify the
16Department to rescind a REV Illinois Building Materials
17Exemption Certificate previously issued by the Department to a
18construction contractor or other entity working at that
19certified manufacturer's REV Illinois project site if that REV
20Illinois Building Materials Exemption Certificate but that has
21not yet expired. Upon receiving such a request notification by
22the certified electric vehicle manufacturer, electric vehicle
23component parts manufacturer, or electric vehicle power supply
24manufacturer and subject to the other provisions of this
25Section, the Department shall issue the rescission of the REV
26Illinois Building Materials Exemption Certificate to the

 

 

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1construction contractor or other entity identified by the
2certified manufacturer electric vehicle manufacturer, electric
3vehicle component parts manufacturer, or electric vehicle
4power supply manufacturer and provide a copy of the rescission
5to the construction contractor or other entity and to the
6certified electric vehicle manufacturer, electric vehicle
7component parts manufacturer, or electric vehicle power supply
8manufacturer.
9    If the Department of Revenue determines that a
10construction contractor or other entity that was issued an
11Exemption Certificate under this Section made a tax-exempt
12purchase, as described in this Section, that was not eligible
13for exemption under this Section or allowed another person to
14make a tax-exempt purchase, as described in this Section, that
15was not eligible for exemption under this Section, then, in
16addition to any tax or other penalty imposed, the construction
17contractor or other entity is subject to a penalty equal to the
18tax that would have been paid by the retailer under this Act as
19well as any applicable local retailers' occupation tax on the
20purchase that was not eligible for the exemption.
21    This Section is exempt from the provisions of Section
222-70.
23    As used in this Section, "certified manufacturer" means a
24person certified by the Department of Commerce and Economic
25Opportunity under Section 105 of the Reimagining Energy and
26Vehicles in Illinois Act.

 

 

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1(Source: P.A. 102-669, eff. 11-16-21.)
 
2    Section 975. The Property Tax Code is amended by changing
3Section 18-184.15 as follows:
 
4    (35 ILCS 200/18-184.15)
5    Sec. 18-184.15. REV Illinois project facilities for
6electric vehicles, electric vehicle component parts, or
7electric vehicle power supply equipment; abatement. Any taxing
8district, upon a majority vote of its governing body, may,
9after determination of the assessed value as set forth in this
10Code, order the clerk of the appropriate municipality or
11county to abate any portion of real property taxes otherwise
12levied or extended by the taxing district on a REV Illinois
13Project facility owned by an electric vehicle manufacturer,
14electric vehicle component parts manufacturer, or an electric
15vehicle power supply manufacturer that is subject to an
16agreement with the Department of Commerce and Economic
17Opportunity under Section 45 of the Reimagining Energy and
18Electric Vehicles in Illinois Act, during the period of time
19such agreement is in effect as specified by the Department of
20Commerce and Economic Opportunity.
21(Source: P.A. 102-669, eff. 11-16-21.)
 
22    Section 980. The Telecommunications Excise Tax Act is
23amended by changing Section 2 as follows:
 

 

 

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1    (35 ILCS 630/2)  (from Ch. 120, par. 2002)
2    Sec. 2. As used in this Article, unless the context
3clearly requires otherwise:
4    (a) "Gross charge" means the amount paid for the act or
5privilege of originating or receiving telecommunications in
6this State and for all services and equipment provided in
7connection therewith by a retailer, valued in money whether
8paid in money or otherwise, including cash, credits, services
9and property of every kind or nature, and shall be determined
10without any deduction on account of the cost of such
11telecommunications, the cost of materials used, labor or
12service costs or any other expense whatsoever. In case credit
13is extended, the amount thereof shall be included only as and
14when paid. "Gross charges" for private line service shall
15include charges imposed at each channel termination point
16within this State, charges for the channel mileage between
17each channel termination point within this State, and charges
18for that portion of the interstate inter-office channel
19provided within Illinois. Charges for that portion of the
20interstate inter-office channel provided in Illinois shall be
21determined by the retailer as follows: (i) for interstate
22inter-office channels having 2 channel termination points,
23only one of which is in Illinois, 50% of the total charge
24imposed; or (ii) for interstate inter-office channels having
25more than 2 channel termination points, one or more of which

 

 

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1are in Illinois, an amount equal to the total charge
2multiplied by a fraction, the numerator of which is the number
3of channel termination points within Illinois and the
4denominator of which is the total number of channel
5termination points. Prior to January 1, 2004, any method
6consistent with this paragraph or other method that reasonably
7apportions the total charges for interstate inter-office
8channels among the states in which channel terminations points
9are located shall be accepted as a reasonable method to
10determine the charges for that portion of the interstate
11inter-office channel provided within Illinois for that period.
12However, "gross charges" shall not include any of the
13following:
14        (1) Any amounts added to a purchaser's bill because of
15    a charge made pursuant to (i) the tax imposed by this
16    Article; (ii) charges added to customers' bills pursuant
17    to the provisions of Sections 9-221 or 9-222 of the Public
18    Utilities Act, as amended, or any similar charges added to
19    customers' bills by retailers who are not subject to rate
20    regulation by the Illinois Commerce Commission for the
21    purpose of recovering any of the tax liabilities or other
22    amounts specified in such provisions of such Act; (iii)
23    the tax imposed by Section 4251 of the Internal Revenue
24    Code; (iv) 911 surcharges; or (v) the tax imposed by the
25    Simplified Municipal Telecommunications Tax Act.
26        (2) Charges for a sent collect telecommunication

 

 

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1    received outside of the State.
2        (3) Charges for leased time on equipment or charges
3    for the storage of data or information for subsequent
4    retrieval or the processing of data or information
5    intended to change its form or content. Such equipment
6    includes, but is not limited to, the use of calculators,
7    computers, data processing equipment, tabulating equipment
8    or accounting equipment and also includes the usage of
9    computers under a time-sharing agreement.
10        (4) Charges for customer equipment, including such
11    equipment that is leased or rented by the customer from
12    any source, wherein such charges are disaggregated and
13    separately identified from other charges.
14        (5) Charges to business enterprises certified under
15    Section 9-222.1 of the Public Utilities Act, as amended,
16    or to electric vehicle manufacturers, electric vehicle
17    component parts manufacturers, or electric vehicle power
18    supply manufacturers at REV Illinois Project sites for
19    which a certificate of exemption has been issued by the
20    Department of Commerce and Economic Opportunity under
21    Section 95 of the Reimagining Energy and Electric Vehicles
22    in Illinois Act, to the extent of such exemption and
23    during the period of time specified by the Department of
24    Commerce and Economic Opportunity.
25        (5.1) Charges to business enterprises certified under
26    the Manufacturing Illinois Chips for Real Opportunity

 

 

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1    (MICRO) Act, to the extent of the exemption and during the
2    period of time specified by the Department of Commerce and
3    Economic Opportunity.
4        (6) Charges for telecommunications and all services
5    and equipment provided in connection therewith between a
6    parent corporation and its wholly owned subsidiaries or
7    between wholly owned subsidiaries when the tax imposed
8    under this Article has already been paid to a retailer and
9    only to the extent that the charges between the parent
10    corporation and wholly owned subsidiaries or between
11    wholly owned subsidiaries represent expense allocation
12    between the corporations and not the generation of profit
13    for the corporation rendering such service.
14        (7) Bad debts. Bad debt means any portion of a debt
15    that is related to a sale at retail for which gross charges
16    are not otherwise deductible or excludable that has become
17    worthless or uncollectable, as determined under applicable
18    federal income tax standards. If the portion of the debt
19    deemed to be bad is subsequently paid, the retailer shall
20    report and pay the tax on that portion during the
21    reporting period in which the payment is made.
22        (8) Charges paid by inserting coins in coin-operated
23    telecommunication devices.
24        (9) Amounts paid by telecommunications retailers under
25    the Telecommunications Municipal Infrastructure
26    Maintenance Fee Act.

 

 

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1        (10) Charges for nontaxable services or
2    telecommunications if (i) those charges are aggregated
3    with other charges for telecommunications that are
4    taxable, (ii) those charges are not separately stated on
5    the customer bill or invoice, and (iii) the retailer can
6    reasonably identify the nontaxable charges on the
7    retailer's books and records kept in the regular course of
8    business. If the nontaxable charges cannot reasonably be
9    identified, the gross charge from the sale of both taxable
10    and nontaxable services or telecommunications billed on a
11    combined basis shall be attributed to the taxable services
12    or telecommunications. The burden of proving nontaxable
13    charges shall be on the retailer of the
14    telecommunications.
15    (b) "Amount paid" means the amount charged to the
16taxpayer's service address in this State regardless of where
17such amount is billed or paid.
18    (c) "Telecommunications", in addition to the meaning
19ordinarily and popularly ascribed to it, includes, without
20limitation, messages or information transmitted through use of
21local, toll and wide area telephone service; private line
22services; channel services; telegraph services;
23teletypewriter; computer exchange services; cellular mobile
24telecommunications service; specialized mobile radio;
25stationary two way radio; paging service; or any other form of
26mobile and portable one-way or two-way communications; or any

 

 

10200HB3107sam001- 152 -LRB102 15737 HLH 42605 a

1other transmission of messages or information by electronic or
2similar means, between or among points by wire, cable,
3fiber-optics, laser, microwave, radio, satellite or similar
4facilities. As used in this Act, "private line" means a
5dedicated non-traffic sensitive service for a single customer,
6that entitles the customer to exclusive or priority use of a
7communications channel or group of channels, from one or more
8specified locations to one or more other specified locations.
9The definition of "telecommunications" shall not include value
10added services in which computer processing applications are
11used to act on the form, content, code and protocol of the
12information for purposes other than transmission.
13"Telecommunications" shall not include purchases of
14telecommunications by a telecommunications service provider
15for use as a component part of the service provided by him to
16the ultimate retail consumer who originates or terminates the
17taxable end-to-end communications. Carrier access charges,
18right of access charges, charges for use of inter-company
19facilities, and all telecommunications resold in the
20subsequent provision of, used as a component of, or integrated
21into end-to-end telecommunications service shall be
22non-taxable as sales for resale.
23    (d) "Interstate telecommunications" means all
24telecommunications that either originate or terminate outside
25this State.
26    (e) "Intrastate telecommunications" means all

 

 

10200HB3107sam001- 153 -LRB102 15737 HLH 42605 a

1telecommunications that originate and terminate within this
2State.
3    (f) "Department" means the Department of Revenue of the
4State of Illinois.
5    (g) "Director" means the Director of Revenue for the
6Department of Revenue of the State of Illinois.
7    (h) "Taxpayer" means a person who individually or through
8his agents, employees or permittees engages in the act or
9privilege of originating or receiving telecommunications in
10this State and who incurs a tax liability under this Article.
11    (i) "Person" means any natural individual, firm, trust,
12estate, partnership, association, joint stock company, joint
13venture, corporation, limited liability company, or a
14receiver, trustee, guardian or other representative appointed
15by order of any court, the Federal and State governments,
16including State universities created by statute or any city,
17town, county or other political subdivision of this State.
18    (j) "Purchase at retail" means the acquisition,
19consumption or use of telecommunication through a sale at
20retail.
21    (k) "Sale at retail" means the transmitting, supplying or
22furnishing of telecommunications and all services and
23equipment provided in connection therewith for a consideration
24to persons other than the Federal and State governments, and
25State universities created by statute and other than between a
26parent corporation and its wholly owned subsidiaries or

 

 

10200HB3107sam001- 154 -LRB102 15737 HLH 42605 a

1between wholly owned subsidiaries for their use or consumption
2and not for resale.
3    (l) "Retailer" means and includes every person engaged in
4the business of making sales at retail as defined in this
5Article. The Department may, in its discretion, upon
6application, authorize the collection of the tax hereby
7imposed by any retailer not maintaining a place of business
8within this State, who, to the satisfaction of the Department,
9furnishes adequate security to insure collection and payment
10of the tax. Such retailer shall be issued, without charge, a
11permit to collect such tax. When so authorized, it shall be the
12duty of such retailer to collect the tax upon all of the gross
13charges for telecommunications in this State in the same
14manner and subject to the same requirements as a retailer
15maintaining a place of business within this State. The permit
16may be revoked by the Department at its discretion.
17    (m) "Retailer maintaining a place of business in this
18State", or any like term, means and includes any retailer
19having or maintaining within this State, directly or by a
20subsidiary, an office, distribution facilities, transmission
21facilities, sales office, warehouse or other place of
22business, or any agent or other representative operating
23within this State under the authority of the retailer or its
24subsidiary, irrespective of whether such place of business or
25agent or other representative is located here permanently or
26temporarily, or whether such retailer or subsidiary is

 

 

10200HB3107sam001- 155 -LRB102 15737 HLH 42605 a

1licensed to do business in this State.
2    (n) "Service address" means the location of
3telecommunications equipment from which the telecommunications
4services are originated or at which telecommunications
5services are received by a taxpayer. In the event this may not
6be a defined location, as in the case of mobile phones, paging
7systems, maritime systems, service address means the
8customer's place of primary use as defined in the Mobile
9Telecommunications Sourcing Conformity Act. For air-to-ground
10systems and the like, service address shall mean the location
11of a taxpayer's primary use of the telecommunications
12equipment as defined by telephone number, authorization code,
13or location in Illinois where bills are sent.
14    (o) "Prepaid telephone calling arrangements" mean the
15right to exclusively purchase telephone or telecommunications
16services that must be paid for in advance and enable the
17origination of one or more intrastate, interstate, or
18international telephone calls or other telecommunications
19using an access number, an authorization code, or both,
20whether manually or electronically dialed, for which payment
21to a retailer must be made in advance, provided that, unless
22recharged, no further service is provided once that prepaid
23amount of service has been consumed. Prepaid telephone calling
24arrangements include the recharge of a prepaid calling
25arrangement. For purposes of this subsection, "recharge" means
26the purchase of additional prepaid telephone or

 

 

10200HB3107sam001- 156 -LRB102 15737 HLH 42605 a

1telecommunications services whether or not the purchaser
2acquires a different access number or authorization code.
3"Prepaid telephone calling arrangement" does not include an
4arrangement whereby a customer purchases a payment card and
5pursuant to which the service provider reflects the amount of
6such purchase as a credit on an invoice issued to that customer
7under an existing subscription plan.
8(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22.)
 
9    Section 985. The Telecommunications Infrastructure
10Maintenance Fee Act is amended by changing Section 10 as
11follows:
 
12    (35 ILCS 635/10)
13    Sec. 10. Definitions.
14    (a) "Gross charges" means the amount paid to a
15telecommunications retailer for the act or privilege of
16originating or receiving telecommunications in this State and
17for all services rendered in connection therewith, valued in
18money whether paid in money or otherwise, including cash,
19credits, services, and property of every kind or nature, and
20shall be determined without any deduction on account of the
21cost of such telecommunications, the cost of the materials
22used, labor or service costs, or any other expense whatsoever.
23In case credit is extended, the amount thereof shall be
24included only as and when paid. "Gross charges" for private

 

 

10200HB3107sam001- 157 -LRB102 15737 HLH 42605 a

1line service shall include charges imposed at each channel
2termination point within this State, charges for the channel
3mileage between each channel termination point within this
4State, and charges for that portion of the interstate
5inter-office channel provided within Illinois. Charges for
6that portion of the interstate inter-office channel provided
7in Illinois shall be determined by the retailer as follows:
8(i) for interstate inter-office channels having 2 channel
9termination points, only one of which is in Illinois, 50% of
10the total charge imposed; or (ii) for interstate inter-office
11channels having more than 2 channel termination points, one or
12more of which are in Illinois, an amount equal to the total
13charge multiplied by a fraction, the numerator of which is the
14number of channel termination points within Illinois and the
15denominator of which is the total number of channel
16termination points. Prior to January 1, 2004, any method
17consistent with this paragraph or other method that reasonably
18apportions the total charges for interstate inter-office
19channels among the states in which channel terminations points
20are located shall be accepted as a reasonable method to
21determine the charges for that portion of the interstate
22inter-office channel provided within Illinois for that period.
23However, "gross charges" shall not include any of the
24following:
25        (1) Any amounts added to a purchaser's bill because of
26    a charge made under: (i) the fee imposed by this Section,

 

 

10200HB3107sam001- 158 -LRB102 15737 HLH 42605 a

1    (ii) additional charges added to a purchaser's bill under
2    Section 9-221 or 9-222 of the Public Utilities Act, (iii)
3    the tax imposed by the Telecommunications Excise Tax Act,
4    (iv) 911 surcharges, (v) the tax imposed by Section 4251
5    of the Internal Revenue Code, or (vi) the tax imposed by
6    the Simplified Municipal Telecommunications Tax Act.
7        (2) Charges for a sent collect telecommunication
8    received outside of this State.
9        (3) Charges for leased time on equipment or charges
10    for the storage of data or information or subsequent
11    retrieval or the processing of data or information
12    intended to change its form or content. Such equipment
13    includes, but is not limited to, the use of calculators,
14    computers, data processing equipment, tabulating
15    equipment, or accounting equipment and also includes the
16    usage of computers under a time-sharing agreement.
17        (4) Charges for customer equipment, including such
18    equipment that is leased or rented by the customer from
19    any source, wherein such charges are disaggregated and
20    separately identified from other charges.
21        (5) Charges to business enterprises certified under
22    Section 9-222.1 of the Public Utilities Act to the extent
23    of such exemption and during the period of time specified
24    by the Department of Commerce and Economic Opportunity.
25        (5.1) Charges to business enterprises certified under
26    Section 95 of the Reimagining Energy and Vehicles in

 

 

10200HB3107sam001- 159 -LRB102 15737 HLH 42605 a

1    Illinois Act, to the extent of the exemption and during
2    the period of time specified by the Department of Commerce
3    and Economic Opportunity.
4        (5.2) Charges to business enterprises certified under
5    Section 110-95 of the Manufacturing Illinois Chips for
6    Real Opportunity (MICRO) Act, to the extent of the
7    exemption and during the period of time specified by the
8    Department of Commerce and Economic Opportunity.
9        (6) Charges for telecommunications and all services
10    and equipment provided in connection therewith between a
11    parent corporation and its wholly owned subsidiaries or
12    between wholly owned subsidiaries, and only to the extent
13    that the charges between the parent corporation and wholly
14    owned subsidiaries or between wholly owned subsidiaries
15    represent expense allocation between the corporations and
16    not the generation of profit other than a regulatory
17    required profit for the corporation rendering such
18    services.
19        (7) Bad debts ("bad debt" means any portion of a debt
20    that is related to a sale at retail for which gross charges
21    are not otherwise deductible or excludable that has become
22    worthless or uncollectible, as determined under applicable
23    federal income tax standards; if the portion of the debt
24    deemed to be bad is subsequently paid, the retailer shall
25    report and pay the tax on that portion during the
26    reporting period in which the payment is made).

 

 

10200HB3107sam001- 160 -LRB102 15737 HLH 42605 a

1        (8) Charges paid by inserting coins in coin-operated
2    telecommunication devices.
3        (9) Charges for nontaxable services or
4    telecommunications if (i) those charges are aggregated
5    with other charges for telecommunications that are
6    taxable, (ii) those charges are not separately stated on
7    the customer bill or invoice, and (iii) the retailer can
8    reasonably identify the nontaxable charges on the
9    retailer's books and records kept in the regular course of
10    business. If the nontaxable charges cannot reasonably be
11    identified, the gross charge from the sale of both taxable
12    and nontaxable services or telecommunications billed on a
13    combined basis shall be attributed to the taxable services
14    or telecommunications. The burden of proving nontaxable
15    charges shall be on the retailer of the
16    telecommunications.
17    (a-5) "Department" means the Illinois Department of
18Revenue.
19    (b) "Telecommunications" includes, but is not limited to,
20messages or information transmitted through use of local,
21toll, and wide area telephone service, channel services,
22telegraph services, teletypewriter service, computer exchange
23services, private line services, specialized mobile radio
24services, or any other transmission of messages or information
25by electronic or similar means, between or among points by
26wire, cable, fiber optics, laser, microwave, radio, satellite,

 

 

10200HB3107sam001- 161 -LRB102 15737 HLH 42605 a

1or similar facilities. Unless the context clearly requires
2otherwise, "telecommunications" shall also include wireless
3telecommunications as hereinafter defined.
4"Telecommunications" shall not include value added services in
5which computer processing applications are used to act on the
6form, content, code, and protocol of the information for
7purposes other than transmission. "Telecommunications" shall
8not include purchase of telecommunications by a
9telecommunications service provider for use as a component
10part of the service provided by him or her to the ultimate
11retail consumer who originates or terminates the end-to-end
12communications. Retailer access charges, right of access
13charges, charges for use of intercompany facilities, and all
14telecommunications resold in the subsequent provision and used
15as a component of, or integrated into, end-to-end
16telecommunications service shall not be included in gross
17charges as sales for resale. "Telecommunications" shall not
18include the provision of cable services through a cable system
19as defined in the Cable Communications Act of 1984 (47 U.S.C.
20Sections 521 and following) as now or hereafter amended or
21through an open video system as defined in the Rules of the
22Federal Communications Commission (47 C.D.F. 76.1550 and
23following) as now or hereafter amended. Beginning January 1,
242001, prepaid telephone calling arrangements shall not be
25considered "telecommunications" subject to the tax imposed
26under this Act. For purposes of this Section, "prepaid

 

 

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1telephone calling arrangements" means that term as defined in
2Section 2-27 of the Retailers' Occupation Tax Act.
3    (c) "Wireless telecommunications" includes cellular mobile
4telephone services, personal wireless services as defined in
5Section 704(C) of the Telecommunications Act of 1996 (Public
6Law No. 104-104) as now or hereafter amended, including all
7commercial mobile radio services, and paging services.
8    (d) "Telecommunications retailer" or "retailer" or
9"carrier" means and includes every person engaged in the
10business of making sales of telecommunications at retail as
11defined in this Section. The Department may, in its
12discretion, upon applications, authorize the collection of the
13fee hereby imposed by any retailer not maintaining a place of
14business within this State, who, to the satisfaction of the
15Department, furnishes adequate security to insure collection
16and payment of the fee. When so authorized, it shall be the
17duty of such retailer to pay the fee upon all of the gross
18charges for telecommunications in the same manner and subject
19to the same requirements as a retailer maintaining a place of
20business within this State.
21    (e) "Retailer maintaining a place of business in this
22State", or any like term, means and includes any retailer
23having or maintaining within this State, directly or by a
24subsidiary, an office, distribution facilities, transmission
25facilities, sales office, warehouse, or other place of
26business, or any agent or other representative operating

 

 

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1within this State under the authority of the retailer or its
2subsidiary, irrespective of whether such place of business or
3agent or other representative is located here permanently or
4temporarily, or whether such retailer or subsidiary is
5licensed to do business in this State.
6    (f) "Sale of telecommunications at retail" means the
7transmitting, supplying, or furnishing of telecommunications
8and all services rendered in connection therewith for a
9consideration, other than between a parent corporation and its
10wholly owned subsidiaries or between wholly owned
11subsidiaries, when the gross charge made by one such
12corporation to another such corporation is not greater than
13the gross charge paid to the retailer for their use or
14consumption and not for sale.
15    (g) "Service address" means the location of
16telecommunications equipment from which telecommunications
17services are originated or at which telecommunications
18services are received. If this is not a defined location, as in
19the case of wireless telecommunications, paging systems,
20maritime systems, service address means the customer's place
21of primary use as defined in the Mobile Telecommunications
22Sourcing Conformity Act. For air-to-ground systems, and the
23like, "service address" shall mean the location of the
24customer's primary use of the telecommunications equipment as
25defined by the location in Illinois where bills are sent.
26(Source: P.A. 93-286, eff. 1-1-04; 94-793, eff. 5-19-06.)
 

 

 

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1    Section 990. The Simplified Municipal Telecommunications
2Tax Act is amended by changing Section 5-7 as follows:
 
3    (35 ILCS 636/5-7)
4    Sec. 5-7. Definitions. For purposes of the taxes
5authorized by this Act:
6    "Amount paid" means the amount charged to the taxpayer's
7service address in such municipality regardless of where such
8amount is billed or paid.
9    "Department" means the Illinois Department of Revenue.
10    "Gross charge" means the amount paid for the act or
11privilege of originating or receiving telecommunications in
12such municipality and for all services and equipment provided
13in connection therewith by a retailer, valued in money whether
14paid in money or otherwise, including cash, credits, services
15and property of every kind or nature, and shall be determined
16without any deduction on account of the cost of such
17telecommunications, the cost of the materials used, labor or
18service costs or any other expense whatsoever. In case credit
19is extended, the amount thereof shall be included only as and
20when paid. "Gross charges" for private line service shall
21include charges imposed at each channel termination point
22within a municipality that has imposed a tax under this
23Section and charges for the portion of the inter-office
24channels provided within that municipality. Charges for that

 

 

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1portion of the inter-office channel connecting 2 or more
2channel termination points, one or more of which is located
3within the jurisdictional boundary of such municipality, shall
4be determined by the retailer by multiplying an amount equal
5to the total charge for the inter-office channel by a
6fraction, the numerator of which is the number of channel
7termination points that are located within the jurisdictional
8boundary of the municipality and the denominator of which is
9the total number of channel termination points connected by
10the inter-office channel. Prior to January 1, 2004, any method
11consistent with this paragraph or other method that reasonably
12apportions the total charges for inter-office channels among
13the municipalities in which channel termination points are
14located shall be accepted as a reasonable method to determine
15the taxable portion of an inter-office channel provided within
16a municipality for that period. However, "gross charge" shall
17not include any of the 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 Act,
20    (ii) the tax imposed by the Telecommunications Excise Tax
21    Act, (iii) the tax imposed by Section 4251 of the Internal
22    Revenue Code, (iv) 911 surcharges, or (v) charges added to
23    customers' bills pursuant to the provisions of Section
24    9-221 or 9-222 of the Public Utilities Act, as amended, or
25    any similar charges added to customers' bills by retailers
26    who are not subject to rate regulation by the Illinois

 

 

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1    Commerce Commission for the purpose of recovering any of
2    the tax liabilities or other amounts specified in those
3    provisions of the Public Utilities Act.
4        (2) Charges for a sent collect telecommunication
5    received outside of such municipality.
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 as
19    exempt under Section 9-222.1 of the Public Utilities Act
20    to the extent of such exemption and during the period of
21    time specified by the Department of Commerce and Economic
22    Opportunity.
23        (5.1) Charges to business enterprises certified under
24    Section 95 of the Reimagining Energy and Vehicles in
25    Illinois Act, to the extent of the exemption and during
26    the period of time specified by the Department of Commerce

 

 

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1    and Economic Opportunity.
2        (5.2) Charges to business enterprises certified under
3    Section 110-95 of the Manufacturing Illinois Chips for
4    Real Opportunity (MICRO) Act, to the extent of the
5    exemption and during the period of time specified by the
6    Department of Commerce and Economic Opportunity.
7        (6) Charges for telecommunications and all services
8    and equipment provided in connection therewith between a
9    parent corporation and its wholly owned subsidiaries or
10    between wholly owned subsidiaries when the tax imposed
11    under this Act has already been paid to a retailer and only
12    to the extent that the charges between the parent
13    corporation and wholly owned subsidiaries or between
14    wholly owned subsidiaries represent expense allocation
15    between the corporations and not the generation of profit
16    for the corporation rendering such service.
17        (7) Bad debts ("bad debt" means any portion of a debt
18    that is related to a sale at retail for which gross charges
19    are not otherwise deductible or excludable that has become
20    worthless or uncollectible, as determined under applicable
21    federal income tax standards; if the portion of the debt
22    deemed to be bad is subsequently paid, the retailer shall
23    report and pay the tax on that portion during the
24    reporting period in which the payment is made).
25        (8) Charges paid by inserting coins in coin-operated
26    telecommunication devices.

 

 

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1        (9) Amounts paid by telecommunications retailers under
2    the Telecommunications Infrastructure Maintenance Fee Act.
3        (10) Charges for nontaxable services or
4    telecommunications if (i) those charges are aggregated
5    with other charges for telecommunications that are
6    taxable, (ii) those charges are not separately stated on
7    the customer bill or invoice, and (iii) the retailer can
8    reasonably identify the nontaxable charges on the
9    retailer's books and records kept in the regular course of
10    business. If the nontaxable charges cannot reasonably be
11    identified, the gross charge from the sale of both taxable
12    and nontaxable services or telecommunications billed on a
13    combined basis shall be attributed to the taxable services
14    or telecommunications. The burden of proving nontaxable
15    charges shall be on the retailer of the
16    telecommunications.
17    "Interstate telecommunications" means all
18telecommunications that either originate or terminate outside
19this State.
20    "Intrastate telecommunications" means all
21telecommunications that originate and terminate within this
22State.
23    "Person" means any natural individual, firm, trust,
24estate, partnership, association, joint stock company, joint
25venture, corporation, limited liability company, or a
26receiver, trustee, guardian, or other representative appointed

 

 

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1by order of any court, the Federal and State governments,
2including State universities created by statute, or any city,
3town, county, or other political subdivision of this State.
4    "Purchase at retail" means the acquisition, consumption or
5use of telecommunications through a sale at retail.
6    "Retailer" means and includes every person engaged in the
7business of making sales at retail as defined in this Section.
8The Department may, in its discretion, upon application,
9authorize the collection of the tax hereby imposed by any
10retailer not maintaining a place of business within this
11State, who, to the satisfaction of the Department, furnishes
12adequate security to insure collection and payment of the tax.
13Such retailer shall be issued, without charge, a permit to
14collect such tax. When so authorized, it shall be the duty of
15such retailer to collect the tax upon all of the gross charges
16for telecommunications in this State in the same manner and
17subject to the same requirements as a retailer maintaining a
18place of business within this State. The permit may be revoked
19by the Department at its discretion.
20    "Retailer maintaining a place of business in this State",
21or any like term, means and includes any retailer having or
22maintaining within this State, directly or by a subsidiary, an
23office, distribution facilities, transmission facilities,
24sales office, warehouse or other place of business, or any
25agent or other representative operating within this State
26under the authority of the retailer or its subsidiary,

 

 

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1irrespective of whether such place of business or agent or
2other representative is located here permanently or
3temporarily, or whether such retailer or subsidiary is
4licensed to do business in this State.
5    "Sale at retail" means the transmitting, supplying or
6furnishing of telecommunications and all services and
7equipment provided in connection therewith for a
8consideration, to persons other than the Federal and State
9governments, and State universities created by statute and
10other than between a parent corporation and its wholly owned
11subsidiaries or between wholly owned subsidiaries for their
12use or consumption and not for resale.
13    "Service address" means the location of telecommunications
14equipment from which telecommunications services are
15originated or at which telecommunications services are
16received by a taxpayer. In the event this may not be a defined
17location, as in the case of mobile phones, paging systems, and
18maritime systems, service address means the customer's place
19of primary use as defined in the Mobile Telecommunications
20Sourcing Conformity Act. For air-to-ground systems and the
21like, "service address" shall mean the location of a
22taxpayer's primary use of the telecommunications equipment as
23defined by telephone number, authorization code, or location
24in Illinois where bills are sent.
25    "Taxpayer" means a person who individually or through his
26or her agents, employees, or permittees engages in the act or

 

 

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1privilege of originating or receiving telecommunications in a
2municipality and who incurs a tax liability as authorized by
3this Act.
4    "Telecommunications", in addition to the meaning
5ordinarily and popularly ascribed to it, includes, without
6limitation, messages or information transmitted through use of
7local, toll, and wide area telephone service, private line
8services, channel services, telegraph services,
9teletypewriter, computer exchange services, cellular mobile
10telecommunications service, specialized mobile radio,
11stationary two-way radio, paging service, or any other form of
12mobile and portable one-way or two-way communications, or any
13other transmission of messages or information by electronic or
14similar means, between or among points by wire, cable, fiber
15optics, laser, microwave, radio, satellite, or similar
16facilities. As used in this Act, "private line" means a
17dedicated non-traffic sensitive service for a single customer,
18that entitles the customer to exclusive or priority use of a
19communications channel or group of channels, from one or more
20specified locations to one or more other specified locations.
21The definition of "telecommunications" shall not include value
22added services in which computer processing applications are
23used to act on the form, content, code, and protocol of the
24information for purposes other than transmission.
25"Telecommunications" shall not include purchases of
26telecommunications by a telecommunications service provider

 

 

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1for use as a component part of the service provided by such
2provider to the ultimate retail consumer who originates or
3terminates the taxable end-to-end communications. Carrier
4access charges, right of access charges, charges for use of
5inter-company facilities, and all telecommunications resold in
6the subsequent provision of, used as a component of, or
7integrated into, end-to-end telecommunications service shall
8be non-taxable as sales for resale. Prepaid telephone calling
9arrangements shall not be considered "telecommunications"
10subject to the tax imposed under this Act. For purposes of this
11Section, "prepaid telephone calling arrangements" means that
12term as defined in Section 2-27 of the Retailers' Occupation
13Tax Act.
14(Source: P.A. 93-286, eff. 1-1-04; 94-793, eff. 5-19-06.)
 
15    Section 995. The Electricity Excise Tax Law is amended by
16changing Section 2-4 as follows:
 
17    (35 ILCS 640/2-4)
18    Sec. 2-4. Tax imposed.
19    (a) Except as provided in subsection (b), a tax is imposed
20on the privilege of using in this State electricity purchased
21for use or consumption and not for resale, other than by
22municipal corporations owning and operating a local
23transportation system for public service, at the following
24rates per kilowatt-hour delivered to the purchaser:

 

 

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1        (i) For the first 2000 kilowatt-hours used or consumed
2    in a month: 0.330 cents per kilowatt-hour;
3        (ii) For the next 48,000 kilowatt-hours used or
4    consumed in a month: 0.319 cents per kilowatt-hour;
5        (iii) For the next 50,000 kilowatt-hours used or
6    consumed in a month: 0.303 cents per kilowatt-hour;
7        (iv) For the next 400,000 kilowatt-hours used or
8    consumed in a month: 0.297 cents per kilowatt-hour;
9        (v) For the next 500,000 kilowatt-hours used or
10    consumed in a month: 0.286 cents per kilowatt-hour;
11        (vi) For the next 2,000,000 kilowatt-hours used or
12    consumed in a month: 0.270 cents per kilowatt-hour;
13        (vii) For the next 2,000,000 kilowatt-hours used or
14    consumed in a month: 0.254 cents per kilowatt-hour;
15        (viii) For the next 5,000,000 kilowatt-hours used or
16    consumed in a month: 0.233 cents per kilowatt-hour;
17        (ix) For the next 10,000,000 kilowatt-hours used or
18    consumed in a month: 0.207 cents per kilowatt-hour;
19        (x) For all electricity in excess of 20,000,000
20    kilowatt-hours used or consumed in a month: 0.202 cents
21    per kilowatt-hour.
22    Provided, that in lieu of the foregoing rates, the tax is
23imposed on a self-assessing purchaser at the rate of 5.1% of
24the self-assessing purchaser's purchase price for all
25electricity distributed, supplied, furnished, sold,
26transmitted and delivered to the self-assessing purchaser in a

 

 

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1month.
2    (b) A tax is imposed on the privilege of using in this
3State electricity purchased from a municipal system or
4electric cooperative, as defined in Article XVII of the Public
5Utilities Act, which has not made an election as permitted by
6either Section 17-200 or Section 17-300 of such Act, at the
7lesser of 0.32 cents per kilowatt hour of all electricity
8distributed, supplied, furnished, sold, transmitted, and
9delivered by such municipal system or electric cooperative to
10the purchaser or 5% of each such purchaser's purchase price
11for all electricity distributed, supplied, furnished, sold,
12transmitted, and delivered by such municipal system or
13electric cooperative to the purchaser, whichever is the lower
14rate as applied to each purchaser in each billing period.
15    (c) The tax imposed by this Section 2-4 is not imposed with
16respect to any use of electricity by business enterprises
17certified under Section 9-222.1 or 9-222.1A of the Public
18Utilities Act, as amended, to the extent of such exemption and
19during the time specified by the Department of Commerce and
20Economic Opportunity; or with respect to any transaction in
21interstate commerce, or otherwise, to the extent to which such
22transaction may not, under the Constitution and statutes of
23the United States, be made the subject of taxation by this
24State.
25    (d) The tax imposed by this Section 2-4 is not imposed with
26respect to any use of electricity at a REV Illinois Project

 

 

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1site that has received a certification for tax exemption from
2the Department of Commerce and Economic Opportunity pursuant
3to Section 95 of the Reimagining Energy and Electric Vehicles
4in Illinois Act, to the extent of such exemption, which shall
5be no more than 10 years.
6    (e) The tax imposed by this Section 2-4 is not imposed with
7respect to any use of electricity at a project site that has
8received a certification for tax exemption from the Department
9of Commerce and Economic Opportunity pursuant to the
10Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
11to the extent of such exemption, which shall be no more than 10
12years.
13(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22.)
 
14    Section 1000. The Public Utilities Act is amended by
15changing Sections 9-222 and 9-222.1A as follows:
 
16    (220 ILCS 5/9-222)  (from Ch. 111 2/3, par. 9-222)
17    Sec. 9-222. Whenever a tax is imposed upon a public
18utility engaged in the business of distributing, supplying,
19furnishing, or selling gas for use or consumption pursuant to
20Section 2 of the Gas Revenue Tax Act, or whenever a tax is
21required to be collected by a delivering supplier pursuant to
22Section 2-7 of the Electricity Excise Tax Act, or whenever a
23tax is imposed upon a public utility pursuant to Section 2-202
24of this Act, such utility may charge its customers, other than

 

 

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1customers who are high impact businesses under Section 5.5 of
2the Illinois Enterprise Zone Act, customers who are electric
3vehicle manufacturers, electric vehicle component parts
4manufacturers, or electric vehicle power supply equipment
5manufacturers at REV Illinois Project sites as certified under
6Section 95 of the Reimagining Energy and Electric Vehicles in
7Illinois Act, manufacturers under the Manufacturing Illinois
8Chips for Real Opportunity (MICRO) Act, or certified business
9enterprises under Section 9-222.1 of this Act, to the extent
10of such exemption and during the period in which such
11exemption is in effect, in addition to any rate authorized by
12this Act, an additional charge equal to the total amount of
13such taxes. The exemption of this Section relating to high
14impact businesses shall be subject to the provisions of
15subsections (a), (b), and (b-5) of Section 5.5 of the Illinois
16Enterprise Zone Act. This requirement shall not apply to taxes
17on invested capital imposed pursuant to the Messages Tax Act,
18the Gas Revenue Tax Act and the Public Utilities Revenue Act.
19Such utility shall file with the Commission a supplemental
20schedule which shall specify such additional charge and which
21shall become effective upon filing without further notice.
22Such additional charge shall be shown separately on the
23utility bill to each customer. The Commission shall have the
24power to investigate whether or not such supplemental schedule
25correctly specifies such additional charge, but shall have no
26power to suspend such supplemental schedule. If the Commission

 

 

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1finds, after a hearing, that such supplemental schedule does
2not correctly specify such additional charge, it shall by
3order require a refund to the appropriate customers of the
4excess, if any, with interest, in such manner as it shall deem
5just and reasonable, and in and by such order shall require the
6utility to file an amended supplemental schedule corresponding
7to the finding and order of the Commission. Except with
8respect to taxes imposed on invested capital, such tax
9liabilities shall be recovered from customers solely by means
10of the additional charges authorized by this Section.
11(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22.)
 
12    (220 ILCS 5/9-222.1A)
13    Sec. 9-222.1A. High impact business. Beginning on August
141, 1998 and thereafter, a business enterprise that is
15certified as a High Impact Business by the Department of
16Commerce and Economic Opportunity (formerly Department of
17Commerce and Community Affairs) is exempt from the tax imposed
18by Section 2-4 of the Electricity Excise Tax Law, if the High
19Impact Business is registered to self-assess that tax, and is
20exempt from any additional charges added to the business
21enterprise's utility bills as a pass-on of State utility taxes
22under Section 9-222 of this Act, to the extent the tax or
23charges are exempted by the percentage specified by the
24Department of Commerce and Economic Opportunity for State
25utility taxes, provided the business enterprise meets the

 

 

10200HB3107sam001- 178 -LRB102 15737 HLH 42605 a

1following criteria:
2        (1) (A) it intends either (i) to make a minimum
3        eligible investment of $12,000,000 that will be placed
4        in service in qualified property in Illinois and is
5        intended to create at least 500 full-time equivalent
6        jobs at a designated location in Illinois; or (ii) to
7        make a minimum eligible investment of $30,000,000 that
8        will be placed in service in qualified property in
9        Illinois and is intended to retain at least 1,500
10        full-time equivalent jobs at a designated location in
11        Illinois; or
12            (B) it meets the criteria of subdivision
13        (a)(3)(B), (a)(3)(C), (a)(3)(D), or (a)(3)(F) of
14        Section 5.5 of the Illinois Enterprise Zone Act;
15        (2) it is designated as a High Impact Business by the
16    Department of Commerce and Economic Opportunity; and
17        (3) it is certified by the Department of Commerce and
18    Economic Opportunity as complying with the requirements
19    specified in clauses (1) and (2) of this Section.
20    The Department of Commerce and Economic Opportunity shall
21determine the period during which the exemption from the
22Electricity Excise Tax Law and the charges imposed under
23Section 9-222 are in effect, which shall not exceed 20 years
24from the date of initial certification, and shall specify the
25percentage of the exemption from those taxes or additional
26charges.

 

 

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1    The Department of Commerce and Economic Opportunity is
2authorized to promulgate rules and regulations to carry out
3the provisions of this Section, including procedures for
4complying with the requirements specified in clauses (1) and
5(2) of this Section and procedures for applying for the
6exemptions authorized under this Section; to define the
7amounts and types of eligible investments that business
8enterprises must make in order to receive State utility tax
9exemptions or exemptions from the additional charges imposed
10under Section 9-222 and this Section; to approve such utility
11tax exemptions for business enterprises whose investments are
12not yet placed in service; and to require that business
13enterprises granted tax exemptions or exemptions from
14additional charges under Section 9-222 repay the exempted
15amount if the business enterprise fails to comply with the
16terms and conditions of the certification.
17    Upon certification of the business enterprises by the
18Department of Commerce and Economic Opportunity, the
19Department of Commerce and Economic Opportunity shall notify
20the Department of Revenue of the certification. The Department
21of Revenue shall notify the public utilities of the exemption
22status of business enterprises from the tax or pass-on charges
23of State utility taxes. The exemption status shall take effect
24within 3 months after certification of the business
25enterprise.
26(Source: P.A. 98-109, eff. 7-25-13.)
 

 

 

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1    Section 9999. Effective date. This Act takes effect upon
2becoming law.".