HB3437sam001 102ND GENERAL ASSEMBLY

Sen. Michael E. Hastings

Filed: 5/13/2021

10200HB3437sam001 LRB102 14622 CPF 26429 a

AMENDMENT TO HOUSE BILL 3437

AMENDMENT NO. ______. Amend House Bill 3437, AS AMENDED, by replacing everything after the enacting clause with the following:

"ARTICLE 1. INVESTING IN ILLINOIS WORKS TAX CREDIT ACT

Section 1-1. Short title. This Article may be cited as the Investing in Illinois Works Tax Credit Act. References in this Article to "this Act" mean this Article.

Section 1-3. Legislative findings. The General Assembly finds that:

Economic research indicates that registered apprenticeship programs have positive economic impacts, and countries with more widespread usage of apprenticeship programs have shown to be more successful at transitioning young workers into stable jobs, resulting in lower youth unemployment rates.

The demographics of registered apprenticeship programs in our State do not mirror the diversity of Illinoisans. According to data from the U.S. Department of Labor's Office of Apprenticeship, from 2000 through 2016, only 8.8% of all construction apprentices were African-American and 17.6% were Hispanic or Latino/Latina, while 69.6% were white.

In order to work toward a level playing field for all who seek the training and economic stability apprenticeships provide, Illinois created the Illinois Works Preapprenticeship Program, which funds preapprenticeship skills training through community-based organizations serving populations that have, historically, been met with barriers to entry or advancement in the workforce.

By targeting historically underutilized communities whose members seek to access the upward mobility and career advancement apprenticeships bring, the Illinois Works Preapprenticeship Program is one part of many State initiatives to increase diversity in apprenticeship programs and careers in the construction and building trades.

The Investing in Illinois Works Tax Credit expands the goals of the Illinois Works Preapprenticeship Program to private construction projects and highly skilled training programs by incentivizing contractors to utilize graduates of preapprenticeship programs funded by the Illinois Works Preapprenticeship Program who are also participants in or graduates of registered apprenticeship programs as part of their skilled and trained workforces on projects at high-hazard facilities.

Section 1-5. Definitions. As used in this Act:

"Department" means the Department of Commerce and Economic Opportunity.

"Illinois Works Preapprenticeship Program" means a network of community-based, nonprofit organizations throughout Illinois that receive grant funding from the Illinois Department of Commerce and Economic Opportunity to recruit, prescreen, and provide preapprenticeship skill training to create a qualified, diverse pipeline of workers who are prepared for careers in the construction and building trades as prescribed in Section 20-15 of the Illinois Works Jobs Program Act.

"Owner or operator" has the meaning provided in Section 5 of the Illinois Hazardous Materials Workforce Training Act.

"Qualifying employee" means a qualifying graduate who was continuously employed by the owner or operator or a contractor engaged by the owner or operator in Illinois during all 4 reporting periods occurring in the calendar year directly preceding the calendar year in which the credit is claimed.

"Qualifying graduate" means an individual from an underrepresented population who has successfully completed a preapprenticeship program through the Illinois Works Preapprenticeship Program in compliance with the requirements of Section 20-15 of the Illinois Works Jobs Programs Act and who either is a registered apprentice as defined under Section 10-5 of the Illinois Hazardous Materials Workforce Training Act or has successfully completed a registered apprenticeship program as defined under Section 10-5 of the Illinois Hazardous Materials Workforce Training Act.

"Registered apprenticeship program" has the same meaning as provided in Section 10-5 of the Illinois Hazardous Materials Workforce Training Act.

"Reporting period" means the quarter for which a return is required to be filed under subsection (b) of Section 704A of the Illinois Income Tax Act.

"Skilled and trained workforce" has the same meaning provided in Section 10-5 of the Illinois Hazardous Materials Workforce Training Act.

"Tax credit certificate" means the certificate awarded by the Department under Section 1-20 of this Act.

"Underrepresented population" has the meaning provided in Section 20-10 of the Illinois Works Job Program Act.

Section 1-10. Credit amount. For taxable years beginning on or after January 1, 2023, subject to the limitations provided in this Act, an owner or operator may claim as a credit against the tax imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act an amount equal to the amount of Illinois income tax withheld from the compensation paid to each qualifying employee and paid to the Department of Revenue, not to exceed $2,500 per calendar year for each qualifying employee, as certified by the Department on a tax credit certificate awarded under this Act.

Section 1-15. Application process.

(a) An owner or operator may apply to the Department for a certificate to receive a credit under Section 1-10.

(b) The Department shall establish an application process to certify an owner or operator for the credit under Section 1-10 as necessary for implementation of this Act. As part of the application process, the Department shall require the owner or operator to provide:

(1) the name, year, and name of the organization that sponsored or administered the program through which each qualifying employee completed his or her Illinois Works Preapprenticeship Program and apprenticeship program;

(2) the receipt provided to the worker by the Department of Labor stating that the qualifying employee has provided a certificate to the Department of Labor certifying that they have completed the minimum approved safety training required by the Illinois Hazardous Materials Workforce Training Act and when their certification in that training expires;

(3) the hours worked by the qualifying employee that go to meeting his or her apprenticeship requirements at the time of the application;

(4) a signed affidavit from the owner or operator attesting that: (i) the qualifying employee was employed by the owner and operator or a contractor engaged by the owner or operator during all 4 reporting periods occurring during the calendar year preceding the calendar year in which the credit will be applied; (ii) the qualifying employee performed work in his or her prevailing wage classification for the duration of his or her employment in the calendar year preceding the calendar year in which the credit will be applied; (iii) the documents provided in the application are true; and (iv) the owner or operator will comply with all applicable laws; and

(5) any other material required by the Department.

Section 1-20. Credit awards.

(a) Upon satisfactory review, the Department shall issue a tax credit certificate stating the amount of the tax credit to which an owner or operator is entitled under this Act. Each certificate shall include a unique identifying number. The credit shall be claimed on the return for the taxable year during which the certificate is issued by the Department. The credit shall be equal to the amount shown on the certificate but may not reduce the taxpayer's obligation for any payment due under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act to less than zero. For partners and shareholders of Subchapter S corporations, there shall be allowed a credit under this subsection to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code. If the amount of the credit exceeds the total payments due as described below, the excess may be carried forward and applied against the taxpayer's liability under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act in the 5 succeeding taxable years. The credit shall be applied to the earliest taxable year for which there is a tax liability. If there are credits from more than one taxable year that are available to offset a liability, the earlier credit shall be applied first. No credit awarded under this Act shall be sold or otherwise transferred.

(b) The Department shall award not more than an aggregate of $20,000,000 in total annual tax credits under this Act. If applications for a greater amount are received, credits shall be allowed on a first-come, first-served basis based on the date on which each properly completed application for certification is received by the Department. If more than one properly completed application for certification is received on the same day, the credits shall be awarded based on the time of submission for that particular day.

Section 1-25. Penalties; recapture.

(a) False or fraudulent claims for credits under this Act may be subject to penalties as provided under Sections 3-5 or 3-6 of the Uniform Penalty and Interest Act, as applicable.

(b) If the Department determines that an owner or operator who has received a credit under this Act does not comply with the requirements of this Act or that a certification the owner or operator made in his or her application are false, the Department may initiate recapture procedures against the owner or operator and, after notice and an opportunity for hearing, recapture the entire credit amount awarded under any tax credit certificate under issued under this Act. The Department shall notify the Department of Revenue of any credits recaptured under this subsection.

(c) If a previously awarded credit is required to be recaptured under subsection (b), the tax due under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act shall be increased by the amount of the recaptured credit in the taxable year during which recapture is required.

Section 1-30. Rulemaking. The Department shall adopt rules for the implementation and administration of this Act. In order to provide for the expeditious and timely implementation of this Act, the Department and the Department of Revenue may adopt emergency rules. The adoption of emergency rules authorized by this Section is deemed to be necessary for the public interest, safety, and welfare.

ARTICLE 5. ACCESS TO APPRENTICESHIP ACT

Section 5-1. Short title. This Article may be cited as the Access to Apprenticeship Act. References in this Article to "this Act" mean this Article.

Section 5-5. Restrictions on application requirements. Notwithstanding any law to the contrary, in order to ensure fair and equal access to apprenticeship programs, no application for a preapprenticeship or apprenticeship program, whether run by the State, a community-based organization, a community college, a public university, a private employer, a union, or joint labor-management program, may require a recommendation from a union member or any other person as a condition of acceptance to the preapprenticeship or apprenticeship program. An intent to hire letter from a signatory contractor shall not be considered a recommendation for purposes of this Act.

Section 5-97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

ARTICLE 10. ILLINOIS HAZARDOUS MATERIALS WORKFORCE TRAINING

ACT

Section 10-1. Short title. This Article may be cited as the Illinois Hazardous Materials Workforce Training Act. References in this Article to "this Act" mean this Article.

Section 10-3. Legislative findings. The General Assembly recognizes its duty to protect the health and safety of the public. The General Assembly finds that this legislation is consistent with that duty. Facilities such as refineries and chemical plants are inherently dangerous and present substantial risk to workers and communities. According to the U.S. Bureau of Labor Statistics data from 2003-2018, 418 deaths have occurred in the refining and chemical industries (51 and 366 respectively) nationwide. Research supports the finding that registered construction apprenticeship programs are correlated with higher workplace safety due to the quality of safety, the skills training provided, and adherence to required federal standards. Moreover, the State of Illinois has recognized that registered apprenticeship programs provide substantial economic value to the State and serve as an important pathway for workers to enter the industry. The absence of area wage standards, especially in hazardous industries such as refining and chemical production, incentivizes the use of less-skilled, low-wage workers and increases the risk of danger to the public. The General Assembly recognizes and affirms that maintaining area wage standards prioritizes the use of better trained and higher-skilled workers while contributing to the State's economic growth.

Section 10-5. Definitions. As used in this Act:

"Apprenticeable occupation" means an occupation in the building and construction trades for which training and apprenticeship programs have been approved by and registered with the United States Department of Labor's Employment and Training Administration.

"Building and construction trades council" means any labor organization that represents multiple construction trades and monitors or is attentive to compliance with public or workers' safety laws, wage and hour requirements, or other statutory requirements and negotiates and maintains collective bargaining agreements.

"Construction" means all work at a stationary source involving laborers, workers, or mechanics, including any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

"Department" means the Department of Labor.

"Director" means the Director of Labor.

"Labor agreement" means a form of prehire collective bargaining agreement covering all terms and conditions of employment.

"Labor organization" means an organization that is the exclusive representative of an employer's employees recognized or certified under the federal National Labor Relations Act of 1935.

"Minimum approved safety training for workers at high-hazard facilities" means a minimum 30-hour OSHA Outreach Training Program for the Construction Industry class consisting of a curriculum of OSHA-designated training topics with training performed by an authorized OSHA Outreach Training Program Trainer and that is intended to provide workers with information about their rights, employer responsibilities, safety and health hazards a worker may encounter on a work site, as well as how to identify, abate, avoid, and prevent job-related hazards by emphasizing hazard identification, avoidance, control, and prevention.

"OSHA" means the United States Department of Labor's Occupational Safety and Health Administration.

"Owner or operator" means an owner or operator of a stationary source that is engaged in activities described in Code 324110, 325110, 325193, or 325199 of the 2017 North American Industry Classification System (NAICS), and has one or more covered processes that are required to prepare and submit a Risk Management Plan. "Owner or operator" does not include oil and gas extraction operations.

"Prevailing hourly wage rate" means hourly wages plus fringe benefits that are equal to or greater than the prevailing wage rate for the occupation in the locality in which the work is being performed, as published by the Illinois Department of Labor, and may include apprentice wage rate scales as filed with the United States Department of Labor by an apprenticeship program.

"Registered apprentice" means an apprentice registered in an applicable apprenticeship program for an apprenticeable occupation approved by and registered with the United States Department of Labor's Employment and Training Administration and who is being paid at least a rate equivalent to the prevailing hourly wage rate for an apprentice of his or her experience level, as permitted by this Act, in the applicable occupation and locality.

"Registered apprenticeship program" means an applicable training and apprenticeship program that is approved by and registered with the United States Department of Labor's Employment and Training Administration.

"Shift" means a set standard period of time an employer requires its employees to perform his or her work-related duties on a daily basis. For purposes of this definition, there may be multiple shifts per day.

"Skilled journeyperson" means a worker who meets all of the following criteria:

(1) the worker either graduated from a registered apprenticeship program for the applicable occupation or has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from a registered apprenticeship program for the applicable occupation;

(2) the worker is being paid at least a rate equivalent to the prevailing hourly wage rate for a journeyperson in the applicable occupation and locality; and

(3) beginning on or after July 1, 2024, the worker has completed, within the prior 3 calendar years, minimum approved safety training for workers at high-hazard facilities and has filed a certificate of completion with the Department.

"Skilled and trained workforce" means a workforce that meets all of the following criteria:

(1) all the workers are either registered apprentices or skilled journeypersons;

(2) beginning on July 1, 2023, at least 45% of the skilled journeypersons are graduates of an apprenticeship program for the applicable occupation;

(3) beginning on July 1, 2024, at least 60% of the skilled journeypersons are graduates of an apprenticeship program for the applicable occupation; and

(4) beginning on July 1, 2025, at least 80% of the skilled journeypersons are graduates of an apprenticeship program for the applicable occupation.

"Stationary source" means that term as it is defined under Section 39.5 of the Environmental Protection Act.

Section 10-10. Minimum approved safety training.

(a) A person who has completed minimum approved safety training for workers at high-hazard facilities shall file his or her certificate of completion with the Department in a manner prescribed by the Department.

(b) The owner or operator, when contracting for the performance of construction work at the stationary source, shall require that its contractors and any subcontractors use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades, and shall include this requirement in any and all contracts executed between an owner or operator and a contractor or subcontractor.

(c) The requirements of this Section shall not immediately apply to contracts awarded before July 1, 2023, unless the contract is extended or renewed after that date. Contracts awarded before July 1, 2023 shall meet the requirements of this Section no later than July 1, 2024.

(d) The requirements of this Section shall only apply to the skilled and trained workforce, contracted with an owner or operator to perform construction work at the stationary source site.

(e) The skilled and trained workforce requirements under this Section shall not apply to:

(1) Contractors that have requested qualified workers from the local hiring halls that dispatch workers in the apprenticeable occupation and that, due to workforce shortages, are unable to obtain sufficient qualified workers within 48 hours of the request, Saturdays, Sundays, and holidays excepted. This Act shall not prevent contractors from obtaining workers from any source.

(2) An emergency where compliance is impracticable; namely, an emergency requiring immediate action to prevent imminent harm to public health or safety or to the environment. Within 3 days of an emergency resulting in a failure to comply with this Act, the owner or operator must notify the Department that such an event occurred and provide documentation supporting its claim that compliance was impracticable. Within 14 days of receiving such documentation, the Department must issue a finding of whether or not the emergency warranted noncompliance with this Act. An owner's or operator's failures to notify the Department of an emergency as required shall constitute a violation of this Act.

Section 10-12. Violations of Section 10-10. Any interested party may file a complaint with the Department against an owner, operator, or construction contractor covered under this Act if there is reasonable belief that the owner, operator, or construction contractor is in violation of Section 10-10 of this Act.

Section 10-15. Enforcement. The Director of Labor or his or her authorized representative may interview workers, administer oaths, take or cause to be taken the depositions of witnesses, and require by subpoena the attendance and testimony of witnesses and the production of all books, records, and other evidence relative to the matter under investigation or hearing, including any contract entered into between the owner or operator and construction contractor, and a transcript of the contractor's payroll, broken down by classification and skill level. Such subpoena shall be signed and issued by the Director or his or her authorized representative.

Upon request by the Director of Labor or his or her deputy or agent, records shall be copied and submitted for evidence at no cost to the Department. Every employer upon request shall furnish to the Director or his or her authorized representative, on demand, a sworn statement of the accuracy of the records. Any employer who refuses to furnish a sworn statement of the records is in violation of this Act.

In case of failure of any person to comply with any subpoena lawfully issued under this Section or on the refusal of any witness to produce evidence or to testify to any matter regarding which he or she may be lawfully interrogated, it is the duty of any circuit court, upon application of the Director of Labor or his or her authorized representative, to compel obedience by proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued by such court or a refusal to testify therein. The Director may certify official acts.

If the Department finds that an owner, operator, or construction contractor has not complied with this Act, the Department shall refer the matter to the Attorney General for enforcement.

Section 10-20. Exemptions. This Act does not apply to any owner or operator that has an executed national or local labor agreement in effect pertaining to the performance of construction work at a given facility or site under the terms of the agreement. The labor agreement must be negotiated with and approved by a local building and construction trades council that has geographic jurisdiction over the stationary source.

Section 10-21. Reporting.

(a) Any registered apprenticeship program or contractor subject to this Act shall file an annual report with the Department of Commerce and Economic Opportunity and the Illinois Works Review Panel, in the form and manner required by the Department of Commerce and Economic Opportunity, within 6 months after the effective date of this Act and by January 31 of each year thereafter. The report shall contain the following information:

(1) A report submitted by an applicable registered apprenticeship program providing minimum approved safety training for workers in high-hazard facilities shall contain the following information:

(A) A description of the registered apprenticeship program's recruitment efforts and screening efforts and a general description of training efforts.

(B) The number of individuals who (i) applied to, (ii) participated in, and (iii) completed the minimum approved safety training for workers at high-hazard facilities in the prior calendar year, broken down by race, ethnicity, gender, jurisdiction, apprentice or journeyperson level, age, and veteran status.

(C) The demographic data of the county where the registered apprenticeship program is located.

(D) A statement of the registered apprenticeship program's minimum diversity goal, which shall equal the demographic makeup of its jurisdiction, the demographic makeup of the participants and graduates of the registered apprenticeship program, and a comparison of whether the demographic makeup of the participants of the apprenticeship program who are working at the high-hazard facility are meeting that goal.

(E) An action plan to increase or maintain diversity to meet or exceed the stated minimum diversity goal. An action plan may include, but shall not be limited to, taking the following actions if the diversity goal is not met:

(i) Providing information on this Act for all high schools and field offices of the Department of Employment Security in the jurisdiction.

(ii) Entering into a joint agreement with the Department of Employment Security for outreach and employment services.

(iii) Entering into a joint agreement with educational institutions or an approved Illinois Works Preapprenticeship Program established under subsection (a) of Section 20-15 of the Illinois Works Jobs Program Act to enhance recruitment efforts.

(iv) Evaluating and eliminating experience requirements that may pose barriers to recruiting or admitting diverse individuals as apprentices, when feasible.

(2) A report submitted by a contractor who employs workers operating in high-hazard facilities shall contain the following information:

(A) A description of the contractor's recruitment efforts and screening efforts and a general description of training efforts.

(B) The number of workers employed by the contractor to work in high-hazard facilities in the prior calendar year, broken down by race, ethnicity, gender, jurisdiction, apprentice or journeyperson level, age, and veteran status.

(C) The demographic data of the county where the majority of the contractor's high-hazard facility work was performed in the last calendar year.

(D) A statement of the contractor's minimum diversity goal, which shall equal the demographic makeup of its jurisdiction, and whether the demographic makeup of the workers employed by the contractor to work at the high-hazard facility is meeting that goal.

(E) An action plan to increase or maintain diversity to meet or exceed the stated minimum diversity goal. An action plan may include but not limited to, taking the following actions if the diversity goal is not met:

(i) Providing information on this Act for all high schools and field offices of the Department of Employment Security in the jurisdiction.

(ii) Entering into a joint agreement with the Department of Employment Security for outreach and employment services.

(iii) Entering into a joint agreement with educational institutions or approved Illinois Works Preapprenticeship Programs established under subsection (a) of Section 20-15 of the Illinois Works Jobs Program Act in the jurisdiction to enhance recruitment efforts.

(iv) Evaluating and eliminating experience requirements that may pose barriers to recruiting or admitting diverse individuals as apprentices when feasible.

(b) The Department of Commerce and Economic Opportunity shall review the annual reports and, in consultation with the Illinois Works Review Panel, conduct an assessment of whether the reports meet the requirements of this Act.

(c) If the Department of Commerce and Economic Opportunity concludes that a report submitted under this Section does not meet or is unlikely to meet the minimum diversity goal under subparagraph (D) of paragraph (1) of subsection (a) or (a) subparagraph (D) of paragraph (2) of subsection (a) within 12 months after filing its report, or that the action plan was not followed, the Department of Commerce and Economic Opportunity, in consultation with the Illinois Works Review Panel, shall recommend that the action plan be revised to provide additional steps and opportunities for minority participation.

(d) If the Department of Commerce and Economic Opportunity, in consultation with the Illinois Works Review Panel, concludes that the applicable registered apprenticeship program providing workers in a high-hazard facility or the contractor operating at a high-hazard facility failed to follow its action plan under subsection subparagraph (E) of paragraph (1) of subsection (a), subparagraph (E) of paragraph (2) of subsection (a), paragraph (5) of subsection (a), or the recommended changes to its action plan provided by the Department of Commerce and Economic Opportunity and the Illinois Works Review Panel under subsection (b) within 12 months after filing the entity's report, the Department of Commerce and Economic Opportunity may refer the matter to the Department for investigation and enforcement.

(e) It is a violation of this Act for an applicable registered apprenticeship program providing workers in a high-hazard facility to fail to submit a report as required by this Act. The Department of Commerce and Economic Opportunity shall refer such violations to the Director of the Department investigation and enforcement.

(f) For reporting purposes, the jurisdiction is the Illinois county where the applicable apprenticeship and training program, approved by and registered with the U.S. Department of Labor's Office of Apprenticeship, is located. For a contractor, the jurisdiction is the county where the contractor's workers perform the majority of work in a high-hazard facility within the last calendar year.

Section 10-25. Penalties; noncompliant reporting; reinstatement.

(a) Except as provided in subsection (b), an owner or operator who violates the requirements of this Act shall be subject to a minimum civil penalty of $10,000 for each violation. The Department shall consider the gravity of the violation in determining the amount of the penalty. Each shift a violation of this Act occurs shall be considered a separate violation. The penalty may be recovered in a civil action brought by the Director in any circuit court. In the civil action, the Director shall be represented by the Attorney General. All moneys received by the Department as fees and civil penalties under this Act, other than moneys collected as unpaid or underpaid wages plus a 5% monthly penalty as provided in subsection (b), shall be deposited into the Illinois Works Fund to be used to recruit, prescreen, and provide preapprenticeship skills training for which participants may attend free of charge and receive a stipend to create a qualified, diverse pipeline of workers who are prepared to work in high-hazard facilities.

(b) In addition to the penalty provisions of subsection (a), if the Department finds that a contractor or owner or operator failed to pay the prevailing rate of wages to construction workers at a stationary source as required under this Act, the Department shall have the ability to recover unpaid or underpaid wages, plus a 5% monthly penalty, on behalf of and payable to the workers. Wages owed may be recovered in a civil action brought by the Director in any circuit court. In a civil action, the Director shall be represented by the Attorney General.

(c) Notwithstanding subsections (a) and (b), if the Department of Commerce and Economic Opportunity, in consultation with the Illinois Works Review Panel, refer a violation of Section 10-21 to the Department for investigation and enforcement, the Department shall provide reasonable notice of noncompliance to the violator within 90 days after the violation and inform the violator that the violator has 45 days to comply with Section 10-21 without penalty. If the noncompliance is not remedied, the violator shall be in violation of this Act and may be deemed unfit to provide workers or operate at high-hazard facilities for a period of up to one year. If the Department determines that the violator has remedied the violation and is in compliance with Section 10-21, the Department shall have 45 days to reinstate the authorization for the violator to provide workers or operate at high-hazard facilities. The Department may not unreasonably withhold reinstatement under this subsection when the applicable registered apprenticeship program providing workers in high-hazard facilities or the contractor operating at high-hazard facilities is found to be in compliance with Section 10-21.

Section 10-97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

ARTICLE 15. AMENDATORY PROVISIONS

Section 15-5. The Illinois Administrative Procedure Act is amended by adding Section 5-45.8 as follows:

(5 ILCS 100/5-45.8 new)

Sec. 5-45.8. Emergency rulemaking. To provide for the expeditious and timely implementation of this amendatory Act of the 102nd General Assembly, the Department of Commerce and Economic Opportunity shall, and the Department of Revenue may, adopt emergency rules. The adoption of emergency rules authorized by this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed on January 1, 2026.

Section 15-10. The Illinois Income Tax Act is amended by adding Section 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. The Investing in Illinois Works Tax Credit. An eligible taxpayer who has been awarded a credit by the Department of Commerce and Economic Opportunity under Section 1-20 of the Investing in Illinois Works Tax Credit Act may claim a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act for amounts due during the first taxable year in which a tax credit certificate was awarded. The credit shall be equal to the amount shown on the certificate. For partners and shareholders of Subchapter S corporations, there shall be allowed a credit under this subsection to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code. The credit may not reduce the taxpayer's tax due under subsections (a) and (b) of Section 201 to less than zero. However, if the amount of the credit exceeds the total tax due for the taxable year, the excess credit may be carried forward and applied against the taxpayer's liability under subsections (a) and (b) of Section 201 in the 5 succeeding taxable years. The credit shall be applied to the earliest taxable year for which there is a tax liability. If there are credits from more than one reporting period that are available to offset the liability, the earlier credit shall be applied first.

ARTICLE 99. EFFECTIVE DATE

Section 99-99. Effective date. This Act takes effect January 1, 2023.".