102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5185

 

Introduced 1/31/2022, by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Department of Commerce and Economic Opportunity Law. Modifies duties and responsibilities of the Department concerning the Civil Administrative Code of Illinois and Programs and agencies under the Department. Amends the Illinois Main Street Act. Makes the Illinois Main Street Program subject appropriation. Further modifies duties of the Department of Commerce and Economic Opportunity concerning the Program. Amends the Opportunities for At-Risk Women Act. Requires the issuance of a report under the Act on or before January 1, 2023. Repeals the Act on January 1, 2023. Amends the Eliminate the Digital Divide Law. Removes provisions concerning the Digital Divide Elimination Advisory Committee and Working Group. Amends the Illinois Income Tax Act. Modifies requirements concerning the angel investment tax credit. Amends the Film Production Services Tax Credit Act of 2008. Modifies requirements concerning the tax credit created under the Act. Makes conforming and other changes concerning the Department of Commerce and Economic Opportunity. Effective immediately.


LRB102 24773 RJF 34015 b

 

 

A BILL FOR

 

HB5185LRB102 24773 RJF 34015 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by changing Sections 605-300, 605-615, and 605-680
7as follows:
 
8    (20 ILCS 605/605-300)  (was 20 ILCS 605/46.2)
9    Sec. 605-300. Economic and business development plans;
10Illinois Business Development Council. (a) Economic
11development plans. The Department shall develop a strategic
12economic development plan for the State by July 1, 2014. By no
13later than July 1, 2015, and by July 1 annually thereafter, the
14Department shall make modifications to the plan as
15modifications are warranted by changes in economic conditions
16or by other factors, including changes in policy. In addition
17to the annual modification, the plan shall be reviewed and
18redeveloped in full every 5 years. In the development of the
19annual economic development plan, the Department shall consult
20with representatives of the private sector, other State
21agencies, academic institutions, local economic development
22organizations, local governments, and not-for-profit
23organizations. The annual economic development plan shall set

 

 

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1specific, measurable, attainable, relevant, and time-sensitive
2goals and shall include a focus on areas of high unemployment
3or poverty.
4    The term "economic development" shall be construed broadly
5by the Department and may include, but is not limited to, job
6creation, job retention, tax base enhancements, development of
7human capital, workforce productivity, critical
8infrastructure, regional competitiveness, social inclusion,
9standard of living, environmental sustainability, energy
10independence, quality of life, the effective use of financial
11incentives, the utilization of public private partnerships
12where appropriate, and other metrics determined by the
13Department.
14    The plan shall be based on relevant economic data, focus
15on economic development as prescribed by this Section, and
16emphasize strategies to retain and create jobs.
17    The plan shall identify and develop specific strategies
18for utilizing the assets of regions within the State defined
19as counties and municipalities or other political subdivisions
20in close geographical proximity that share common economic
21traits such as commuting zones, labor market areas, or other
22economically integrated characteristics.
23    If the plan includes strategies that have a fiscal impact
24on the Department or any other agency, the plan shall include a
25detailed description of the estimated fiscal impact of such
26strategies.

 

 

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1    Prior to publishing the plan in its final form, the
2Department shall allow for a reasonable time for public input.
3    The Department shall transmit copies of the economic
4development plan to the Governor and the General Assembly no
5later than July 1, 2014, and by July 1 annually thereafter. The
6plan and its corresponding modifications shall be published
7and made available to the public in both paper and electronic
8media, on the Department's website, and by any other method
9that the Department deems appropriate.
10    The Department shall annually submit legislation to
11implement the strategic economic development plan or
12modifications to the strategic economic development plan to
13the Governor, the President and Minority Leader of the Senate,
14and the Speaker and the Minority Leader of the House of
15Representatives. The legislation shall be in the form of one
16or more substantive bills drafted by the Legislative Reference
17Bureau.
18    (b) Business development plans; Illinois Business
19Development Council.
20        (1) There is created the Illinois Business Development
21    Council, hereinafter referred to as the Council. The
22    Council shall consist of the Director, who shall serve as
23    co-chairperson, and 12 voting members who shall be
24    appointed by the Governor with the advice and consent of
25    the Senate.
26            (A) The voting members of the Council shall

 

 

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1        include one representative from each of the following
2        businesses and groups: small business, coal,
3        healthcare, large manufacturing, small or specialized
4        manufacturing, agriculture, high technology or applied
5        science, local economic development entities, private
6        sector organized labor, a local or state business
7        association or chamber of commerce.
8            (B) There shall be 2 at-large voting members who
9        reside within areas of high unemployment within
10        counties or municipalities that have had an annual
11        average unemployment rate of at least 120% of the
12        State's annual average unemployment rate as reported
13        by the Department of Employment Security for the 5
14        years preceding the date of appointment.
15        (2) All appointments shall be made in a geographically
16    diverse manner.
17        (3) For the initial appointments to the Council, 6
18    voting members shall be appointed to serve a 2-year term
19    and 6 voting members shall be appointed to serve a 4-year
20    term. Thereafter, all appointments shall be for terms of 4
21    years. The initial term of voting members shall commence
22    on the first Wednesday in February 2014. Thereafter, the
23    terms of voting members shall commence on the first
24    Wednesday in February, except in the case of an
25    appointment to fill a vacancy. Vacancies occurring among
26    the members shall be filled in the same manner as the

 

 

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1    original appointment for the remainder of the unexpired
2    term. For a vacancy occurring when the Senate is not in
3    session, the Governor may make a temporary appointment
4    until the next meeting of the Senate when a person shall be
5    nominated to fill the office, and, upon confirmation by
6    the Senate, he or she shall hold office during the
7    remainder of the term. A vacancy in membership does not
8    impair the ability of a quorum to exercise all rights and
9    perform all duties of the Council. A member is eligible
10    for reappointment.
11        (4) Members shall serve without compensation, but may
12    be reimbursed for necessary expenses incurred in the
13    performance of their duties from funds appropriated for
14    that purpose.
15        (5) In addition, the following shall serve as ex
16    officio, non-voting members of the Council in order to
17    provide specialized advice and support to the Council: the
18    Secretary of Transportation, or his or her designee; the
19    Director of Employment Security, or his or her designee;
20    the Executive Director of the Illinois Finance Authority,
21    or his or her designee; the Director of Agriculture, or
22    his or her designee; the Director of Revenue, or his or her
23    designee; the Director of Labor, or his or her designee;
24    and the Director of the Environmental Protection Agency,
25    or his or her designee. Ex officio members shall provide
26    staff and technical assistance to the Council when

 

 

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1    appropriate.
2        (6) In addition to the Director, the voting members
3    shall elect a co-chairperson.
4        (7) The Council shall meet at least twice annually and
5    at such other times as the co-chairpersons or any 5 voting
6    members consider necessary. Seven voting members shall
7    constitute a quorum of the Council.
8        (8) The Department shall provide staff assistance to
9    the Council.
10        (9) The Council shall provide the Department relevant
11    information in a timely manner pursuant to its duties as
12    enumerated in this Section that can be used by the
13    Department to enhance the State's strategic economic
14    development plan.
15        (10) The Council shall:
16            (A) Develop an overall strategic business
17        development plan for the State of Illinois and update
18        the plan at least annually; that plan shall include,
19        without limitation, (i) an assessment of the economic
20        development practices of states that border Illinois
21        and (ii) recommendations for best practices with
22        respect to economic development, business incentives,
23        business attraction, and business retention for
24        counties in Illinois that border at least one other
25        state.
26            (B) Develop business marketing plans for the State

 

 

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1        of Illinois to effectively solicit new company
2        investment and existing business expansion. Insofar as
3        allowed under the Illinois Procurement Code, and
4        subject to appropriations made by the General Assembly
5        for such purposes, the Council may assist the
6        Department in the procurement of outside vendors to
7        carry out such marketing plans.
8            (C) Seek input from local economic development
9        officials to develop specific strategies to
10        effectively link State and local business development
11        and marketing efforts focusing on areas of high
12        unemployment or poverty.
13            (D) Provide the Department with advice on
14        strategic business development and business marketing
15        for the State of Illinois.
16            (E) Provide the Department research and recommend
17        best practices for developing investment tools for
18        business attraction and retention.
19(Source: P.A. 98-397, eff. 8-16-13; 98-756, eff. 7-16-14;
2098-888, eff. 8-15-14.)
 
21    (20 ILCS 605/605-615)  (was 20 ILCS 605/46.19e)
22    Sec. 605-615. Assistance with exports. The Department
23shall have the following duties and responsibilities in regard
24to the Civil Administrative Code of Illinois:
25    (1) To establish or cosponsor mentoring conferences,

 

 

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1utilizing experienced manufacturing exporters, to explain and
2provide information to prospective export manufacturers and
3businesses concerning the process of exporting to both
4domestic and international opportunities.
5    (2) To provide technical assistance to prospective export
6manufacturers and businesses seeking to establish domestic and
7international export opportunities.
8    (3) To coordinate with the Department's Small Business
9Development Centers to link buyers with prospective export
10manufacturers and businesses.
11    (4) To promote, both domestically and abroad, products
12made in Illinois in order to inform consumers and buyers of
13their high quality standards and craftsmanship.
14    (5) To provide technical assistance toward establishment
15of export trade corporations in the private sector.
16    (6) To develop an electronic data base to compile
17information on international trade and investment activities
18in Illinois companies, provide access to research and business
19opportunities through external data bases, and connect this
20data base through international communication systems with
21appropriate domestic and worldwide networks users.
22    (7) To collect and distribute to foreign commercial
23libraries directories, catalogs, brochures, and other
24information of value to foreign businesses considering doing
25business in this State.
26    (8) To establish an export finance awareness program to

 

 

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1provide information to banking organizations about methods
2used by banks to provide financing for businesses engaged in
3exporting and about other State and federal programs to
4promote and expedite export financing.
5    (9) To undertake a survey of Illinois' businesses to
6identify exportable products and the businesses interested in
7exporting.
8(Source: P.A. 91-239, eff. 1-1-00; 91-357, eff. 7-29-99;
992-16, eff. 6-28-01.)
 
10    (20 ILCS 605/605-680)
11    Sec. 605-680. Illinois goods and services website.
12    (a) The Department, in consultation with the Department of
13Innovation and Technology, must establish and maintain an
14Internet website devoted to the marketing of Illinois goods
15and services by linking potential purchasers with producers of
16goods and services who are located in the State.
17    (b) The Department must, subject to appropriation,
18advertise the website to encourage inclusion of producers on
19the website and to encourage the use of the website by
20potential purchasers.
21(Source: P.A. 100-611, eff. 7-20-18.)
 
22    (20 ILCS 605/605-550 rep.)
23    (20 ILCS 605/605-1025 rep.)
24    Section 10. The Department of Commerce and Economic

 

 

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1Opportunity Law of the Civil Administrative Code of Illinois
2is amended by repealing Sections 605-550 and 605-1025.
 
3    Section 15. The Illinois Main Street Act is amended by
4changing Sections 15, 20, 25, and 30 as follows:
 
5    (20 ILCS 720/15)
6    Sec. 15. Illinois Main Street Program. The Illinois Main
7Street Program is created, subject to appropriation, within
8the Department. In order to implement the Illinois Main Street
9Program, the Department may shall do all of the following:
10        (1) Provide assistance to municipalities designated as
11    Main Street Communities, municipalities interested in
12    becoming designated through the program, and businesses,
13    property owners, organizations, and municipalities
14    undertaking a comprehensive downtown or neighborhood
15    commercial district revitalization initiative and
16    management strategy. Assistance may include, but is not
17    limited to, initial site evaluations and assessments,
18    training for local programs, training for local program
19    staff, site visits and assessments by technical
20    specialists, local program design assistance and
21    evaluation, and continued local program on-site
22    assistance.
23        (2) To the extent funds are made available, provide
24    financial assistance to municipalities or local

 

 

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1    organizations to assist in initial downtown or
2    neighborhood commercial district revitalization program
3    specialized training, specific project feasibility
4    studies, market studies, and design assistance.
5        (3) Operate the Illinois Main Street Program in
6    accordance with the plan developed by the Department.
7        (4) Consider other factors the Department deems
8    necessary for the implementation of this Act.
9(Source: P.A. 97-573, eff. 8-25-11.)
 
10    (20 ILCS 720/20)
11    Sec. 20. Main Street Community designation.
12    (a) The Department may shall adopt criteria for the
13designation of a Main Street Community. In establishing the
14criteria, the Department shall consider all of the following:
15        (1) The degree of interest and commitment to
16    comprehensive downtown or neighborhood commercial district
17    revitalization and, where applicable, historic
18    preservation by both the public and private sectors.
19        (2) The evidence of potential private sector
20    investment in the downtown or neighborhood commercial
21    district.
22        (3) Where applicable, a downtown or neighborhood
23    commercial district with sufficient historic fabric to
24    become a foundation for an enhanced community image.
25        (4) The capacity of the organization to undertake a

 

 

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1    comprehensive program and the financial commitment to
2    implement a long-term downtown or neighborhood commercial
3    district revitalization program that includes a commitment
4    to employ a professional program manager.
5        (5) The National Main Street Center's criteria for
6    designating official main street municipalities.
7        (6) Other factors the Department deems necessary for
8    the designation of a local program.
9    (b) Illinois Main Street shall designate local downtown or
10neighborhood commercial district revitalization programs and
11official local main street programs.
12    (c) The Department must approve all local downtown or
13neighborhood commercial district revitalization program
14boundaries. The boundaries of a local downtown or neighborhood
15commercial district revitalization program are typically
16defined using the pedestrian core of a traditional commercial
17district.
18(Source: P.A. 97-573, eff. 8-25-11.)
 
19    (20 ILCS 720/25)
20    Sec. 25. Illinois Main Street Plan. The Department may
21shall, in consultation with the Lieutenant Governor, develop a
22plan for the Illinois Main Street Program. The plan shall
23describe:
24        (1) the objectives and strategies of the Illinois Main
25    Street Program;

 

 

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1        (2) how the Illinois Main Street Program will be
2    coordinated with existing federal, state, local, and
3    private sector business development and historic
4    preservation efforts;
5        (3) the means by which private investment will be
6    solicited and employed;
7        (4) the methods of selecting and providing assistance
8    to participating local programs; and
9        (5) a means to solicit private contributions for State
10    and local operations of the Illinois Main Street Program.
11(Source: P.A. 97-573, eff. 8-25-11.)
 
12    (20 ILCS 720/30)
13    Sec. 30. Role of the Lieutenant Governor. The Lieutenant
14Governor shall, subject to appropriation, be the Ambassador of
15the Illinois Main Street Program. The Department shall,
16subject to appropriation, advise and consult with the
17Lieutenant Governor on the activities of the Illinois Main
18Street Program. The Lieutenant Governor, with the assistance
19of the Department, shall, subject to appropriation, promote
20and encourage the success of the Illinois Main Street Program.
21(Source: P.A. 97-573, eff. 8-25-11.)
 
22    Section 20. The Outdoor Recreation Resources Act is
23amended by changing Sections 2 and 2a as follows:
 

 

 

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1    (20 ILCS 860/2)  (from Ch. 105, par. 532)
2    Sec. 2. The Department of Natural Resources is authorized
3to have prepared, with the Department of Commerce and Economic
4Opportunity, and to maintain and keep up-to-date a
5comprehensive plan for the development of the outdoor
6recreation resources of the State.
7(Source: P.A. 94-793, eff. 5-19-06.)
 
8    (20 ILCS 860/2a)  (from Ch. 105, par. 532a)
9    Sec. 2a. The Department of Natural Resources is authorized
10to have prepared with the Department of Commerce and Economic
11Opportunity and to maintain and keep up to date a
12comprehensive plan for the preservation of the historically
13significant properties and interests of the State.
14(Source: P.A. 100-695, eff. 8-3-18; 101-81, eff. 7-12-19.)
 
15    (20 ILCS 3953/15 rep.)
16    (20 ILCS 3953/20 rep.)
17    Section 25. The Government Buildings Energy Cost Reduction
18Act of 1991 is amended by repealing Sections 15 and 20.
 
19    Section 30. The Opportunities for At-Risk Women Act is
20amended by changing Section 15 and by adding Section 20 as
21follows:
 
22    (20 ILCS 5075/15)

 

 

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1    Sec. 15. Annual report. On or before January 1, 2023 2018,
2and on or before January 1 of each year thereafter, the Task
3Force shall report to the Governor and the General Assembly on
4its activities and shall include any recommendations for
5legislation or rulemaking to facilitate its work in the
6targeted areas of assistance and outsourcing.
7(Source: P.A. 99-416, eff. 1-1-16; 100-295, eff. 8-24-17.)
 
8    (20 ILCS 5075/20 new)
9    Sec. 20. Repeal. This Act is repealed on January 1, 2023.
 
10    Section 35. The Eliminate the Digital Divide Law is
11amended by changing Section 5-30 as follows:
 
12    (30 ILCS 780/5-30)
13    Sec. 5-30. Community Technology Center Grant Program.
14    (a) Subject to appropriation, the Department shall
15administer the Community Technology Center Grant Program under
16which the Department shall make grants in accordance with this
17Article for planning, establishment, administration, and
18expansion of Community Technology Centers and for assisting
19public hospitals, libraries, and park districts in eliminating
20the digital divide. The purposes of the grants shall include,
21but not be limited to, volunteer recruitment and management,
22training and instruction, infrastructure, and related goods
23and services, including case management, administration,

 

 

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1personal information management, and outcome-tracking tools
2and software for the purposes of reporting to the Department
3and for enabling participation in digital government and
4consumer services programs, for Community Technology Centers
5and public hospitals, libraries, and park districts. No
6Community Technology Center may receive a grant of more than
7$75,000 under this Section in a particular fiscal year.
8    (b) Public hospitals, libraries, park districts, and State
9educational agencies, local educational agencies, institutions
10of higher education, senior citizen homes, and other public
11and private nonprofit or for-profit agencies and organizations
12are eligible to receive grants under this Program, provided
13that a local educational agency or public or private
14educational agency or organization must, in order to be
15eligible to receive grants under this Program, provide
16computer access and educational services using information
17technology to the public at one or more of its educational
18buildings or facilities at least 12 hours each week. A group of
19eligible entities is also eligible to receive a grant if the
20group follows the procedures for group applications in 34 CFR
2175.127-129 of the Education Department General Administrative
22Regulations.
23    To be eligible to apply for a grant, a Community
24Technology Center must serve a community in which not less
25than 40% of the students are eligible for a free or reduced
26price lunch under the national school lunch program or in

 

 

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1which not less than 30% of the students are eligible for a free
2lunch under the national school lunch program; however, if
3funding is insufficient to approve all grant applications for
4a particular fiscal year, the Department may impose a higher
5minimum percentage threshold for that fiscal year.
6Determinations of communities and determinations of the
7percentage of students in a community who are eligible for a
8free or reduced price lunch under the national school lunch
9program shall be in accordance with rules adopted by the
10Department.
11    Any entities that have received a Community Technology
12Center grant under the federal Community Technology Centers
13Program are also eligible to apply for grants under this
14Program.
15    The Department shall provide assistance to Community
16Technology Centers in making those determinations for purposes
17of applying for grants.
18    The Department shall encourage Community Technology
19Centers to participate in public and private computer hardware
20equipment recycling initiatives that provide computers at
21reduced or no cost to low-income families, including programs
22authorized by the State Property Control Act. On an annual
23basis, the Department must provide the Director of Central
24Management Services with a list of Community Technology
25Centers that have applied to the Department for funding as
26potential recipients of surplus State-owned computer hardware

 

 

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1equipment under programs authorized by the State Property
2Control Act.
3    (c) Grant applications shall be submitted to the
4Department on a schedule of one or more deadlines established
5by the Department by rule.
6    (d) The Department shall adopt rules setting forth the
7required form and contents of grant applications.
8    (e) (Blank). There is created the Digital Divide
9Elimination Advisory Committee. The advisory committee shall
10consist of 7 members appointed one each by the Governor, the
11President of the Senate, the Senate Minority Leader, the
12Speaker of the House, and the House Minority Leader, and 2
13appointed by the Director of Commerce and Economic
14Opportunity, one of whom shall be a representative of the
15telecommunications industry and one of whom shall represent
16community technology centers. The members of the advisory
17committee shall receive no compensation for their services as
18members of the advisory committee but may be reimbursed for
19their actual expenses incurred in serving on the advisory
20committee. The Digital Divide Elimination Advisory Committee
21shall advise the Department in establishing criteria and
22priorities for identifying recipients of grants under this
23Act. The advisory committee shall obtain advice from the
24technology industry regarding current technological standards.
25The advisory committee shall seek any available federal
26funding.

 

 

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1    (f) (Blank). There is created the Digital Divide
2Elimination Working Group. The Working Group shall consist of
3the Director of Commerce and Economic Opportunity, or his or
4her designee, the Director of Central Management Services, or
5his or her designee, and the Executive Director of the
6Illinois Commerce Commission, or his or her designee. The
7Director of Commerce and Economic Opportunity, or his or her
8designee, shall serve as chair of the Working Group. The
9Working Group shall consult with the members of the Digital
10Divide Elimination Advisory Committee and may consult with
11various groups including, but not limited to,
12telecommunications providers, telecommunications-related
13technology producers and service providers, community
14technology providers, community and consumer organizations,
15businesses and business organizations, and federal government
16agencies.
17    (g) Duties of the Digital Divide Elimination Working Group
18include all of the following:
19        (1) Undertaking a thorough review of grant programs
20    available through the federal government, local agencies,
21    telecommunications providers, and business and charitable
22    entities for the purpose of identifying appropriate
23    sources of revenues for the Digital Divide Elimination
24    Fund and attempting to update available grants on a
25    regular basis.
26        (2) Researching and cataloging programs designed to

 

 

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1    advance digital literacy and computer access that are
2    available through the federal government, local agencies,
3    telecommunications providers, and business and charitable
4    entities and attempting to update available programs on a
5    regular basis.
6        (3) Presenting the information compiled from items (1)
7    and (2) to the Department of Commerce and Economic
8    Opportunity, which shall serve as a single point of
9    contact for applying for funding for the Digital Divide
10    Elimination Fund and for distributing information to the
11    public regarding all programs designed to advance digital
12    literacy and computer access.
13(Source: P.A. 94-734, eff. 4-28-06; 95-740, eff. 1-1-09.)
 
14    Section 40. The Illinois Income Tax Act is amended by
15changing Section 220 as follows:
 
16    (35 ILCS 5/220)
17    Sec. 220. Angel investment credit.
18    (a) As used in this Section:
19    "Applicant" means a corporation, partnership, limited
20liability company, or a natural person that makes an
21investment in a qualified new business venture. The term
22"applicant" does not include (i) a corporation, partnership,
23limited liability company, or a natural person who has a
24direct or indirect ownership interest of at least 51% in the

 

 

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

 

 

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

 

 

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1    that is the recipient of the applicant's investment in
2    accordance with Section 1563(e) of the Internal Revenue
3    Code, except that for purposes of determining whether a
4    person is a related member under this paragraph, "20%"
5    shall be substituted for "5%" whenever "5%" appears in
6    Section 1563(e) of the Internal Revenue Code.
7    (b) For taxable years beginning after December 31, 2010,
8and ending on or before December 31, 2026, subject to the
9limitations provided in this Section, a claimant may claim, as
10a credit against the tax imposed under subsections (a) and (b)
11of Section 201 of this Act, an amount equal to 25% of the
12claimant's investment made directly in a qualified new
13business venture. In order for an investment in a qualified
14new business venture to be eligible for tax credits, the
15business must have applied for and received certification
16under subsection (e) for the taxable year in which the
17investment was made prior to the date on which the investment
18was made. The credit under this Section may not exceed the
19taxpayer's Illinois income tax liability for the taxable year.
20If the amount of the credit exceeds the tax liability for the
21year, the excess may be carried forward and applied to the tax
22liability of the 5 taxable years following the excess credit
23year. The credit shall be applied to the earliest year for
24which there is a tax liability. If there are credits from more
25than one tax year that are available to offset a liability, the
26earlier credit shall be applied first. In the case of a

 

 

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1partnership or Subchapter S Corporation, the credit is allowed
2to the partners or shareholders in accordance with the
3determination of income and distributive share of income under
4Sections 702 and 704 and Subchapter S of the Internal Revenue
5Code.
6    (c) The minimum amount an applicant must invest in any
7single qualified new business venture in order to be eligible
8for a credit under this Section is $10,000. The maximum amount
9of an applicant's total investment made in any single
10qualified new business venture that may be used as the basis
11for a credit under this Section is $2,000,000.
12    (d) The Department shall implement a program to certify an
13applicant for an angel investment credit. Upon satisfactory
14review, the Department shall issue a tax credit certificate
15stating the amount of the tax credit to which the applicant is
16entitled. The Department shall annually certify that: (i) each
17qualified new business venture that receives an angel
18investment after January 1, 2018 under this Section has
19maintained a minimum employment threshold, as defined by rule,
20in the State (and continues to maintain a minimum employment
21threshold in the State for a period of no less than 3 years
22from the issue date of the last tax credit certificate issued
23by the Department with respect to such business pursuant to
24this Section); and (ii) the claimant's investment has been
25made and remains, except in the event of a qualifying
26liquidity event, in the qualified new business venture for no

 

 

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1less than 3 years.
2    If an investment for which a claimant is allowed a credit
3under subsection (b) is held by the claimant for less than 3
4years, other than as a result of a permitted sale of the
5investment to person who is not a related member, the claimant
6shall pay to the Department of Revenue, in the manner
7prescribed by the Department of Revenue, the aggregate amount
8of the disqualified credits that the claimant received related
9to the subject investment.
10    If the Department determines that a qualified new business
11venture failed to maintain a minimum employment threshold in
12the State through the date which is 3 years from the issue date
13of the last tax credit certificate issued by the Department
14with respect to the subject business pursuant to this Section,
15the claimant or claimants shall pay to the Department of
16Revenue, in the manner prescribed by the Department of
17Revenue, the aggregate amount of the disqualified credits that
18claimant or claimants received related to investments in that
19business.
20    (e) The Department shall implement a program to register
21qualified new business ventures for purposes of this Section.
22A business desiring registration under this Section shall be
23required to submit a full and complete application to the
24Department. A submitted application shall be effective only
25for the taxable year in which it is submitted, and a business
26desiring registration under this Section shall be required to

 

 

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

 

 

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1        processing or assembling products, including medical
2        devices, pharmaceuticals, computer software, computer
3        hardware, semiconductors, other innovative technology
4        products, or other products that are produced using
5        manufacturing methods that are enabled by applying
6        proprietary technology; or providing services that are
7        enabled by applying proprietary technology; or
8            (B) it is undertaking pre-commercialization
9        activity related to proprietary technology that
10        includes conducting research, developing a new product
11        or business process, or developing a service that is
12        principally reliant on applying proprietary
13        technology;
14        (4) it is not principally engaged in real estate
15    development, insurance, banking, lending, lobbying,
16    political consulting, professional services provided by
17    attorneys, accountants, business consultants, physicians,
18    or health care consultants, wholesale or retail trade,
19    leisure, hospitality, transportation, or construction,
20    except construction of power production plants that derive
21    energy from a renewable energy resource, as defined in
22    Section 1 of the Illinois Power Agency Act;
23        (5) at the time it is first certified:
24            (A) it has fewer than 100 employees;
25            (B) it has been in operation in Illinois for not
26        more than 10 consecutive years prior to the year of

 

 

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1        certification; and
2            (C) it has received not more than $10,000,000 in
3        aggregate investments;
4        (5.1) it agrees to maintain a minimum employment
5    threshold in the State of Illinois prior to the date which
6    is 3 years from the issue date of the last tax credit
7    certificate issued by the Department with respect to that
8    business pursuant to this Section;
9        (6) (blank); and
10        (7) it has received not more than $4,000,000 in
11    investments that qualified for tax credits under this
12    Section.
13    (f) The Department, in consultation with the Department of
14Revenue, shall adopt rules to administer this Section. The
15aggregate amount of the tax credits that may be claimed under
16this Section for investments made in qualified new business
17ventures shall be limited at $10,000,000 per calendar year, of
18which $500,000 shall be reserved for investments made in
19qualified new business ventures which are minority-owned
20businesses, women-owned businesses, or businesses owned by a
21person with a disability (as those terms are used and defined
22in the Business Enterprise for Minorities, Women, and Persons
23with Disabilities Act), and an additional $500,000 shall be
24reserved for investments made in qualified new business
25ventures with their principal place of business in counties
26with a population of not more than 250,000. The foregoing

 

 

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1annual allowable amounts shall be allocated by the Department,
2on a per calendar quarter basis and prior to the commencement
3of each calendar year, in such proportion as determined by the
4Department, provided that: (i) the amount initially allocated
5by the Department for any one calendar quarter shall not
6exceed 35% of the total allowable amount; (ii) any portion of
7the allocated allowable amount remaining unused as of the end
8of any of the first 3 calendar quarters of a given calendar
9year shall be rolled into, and added to, the total allocated
10amount for the next available calendar quarter; and (iii) the
11reservation of tax credits for investments in minority-owned
12businesses, women-owned businesses, businesses owned by a
13person with a disability, and in businesses in counties with a
14population of not more than 250,000 is limited to the first 3
15calendar quarters of a given calendar year, after which they
16may be claimed by investors in any qualified new business
17venture.
18    (g) A claimant may not sell or otherwise transfer a credit
19awarded under this Section to another person.
20    (h) On or before March 1 of each year, the Department shall
21report to the Governor and to the General Assembly on the tax
22credit certificates awarded under this Section for the prior
23calendar year.
24        (1) This report must include, for each tax credit
25    certificate awarded:
26            (A) the name of the claimant and the amount of

 

 

HB5185- 30 -LRB102 24773 RJF 34015 b

1        credit awarded or allocated to that claimant;
2            (B) the name and address (including the county) of
3        the qualified new business venture that received the
4        investment giving rise to the credit, the North
5        American Industry Classification System (NAICS) code
6        applicable to that qualified new business venture, and
7        the number of employees of the qualified new business
8        venture; and
9            (C) the date of approval by the Department of each
10        claimant's tax credit certificate.
11        (2) The report must also include:
12            (A) the total number of applicants and the total
13        number of claimants, including the amount of each tax
14        credit certificate awarded to a claimant under this
15        Section in the prior calendar year;
16            (B) the total number of applications from
17        businesses seeking registration under this Section,
18        the total number of new qualified business ventures
19        registered by the Department, and the aggregate amount
20        of investment upon which tax credit certificates were
21        issued in the prior calendar year; and
22            (C) the total amount of tax credit certificates
23        sought by applicants, the amount of each tax credit
24        certificate issued to a claimant, the aggregate amount
25        of all tax credit certificates issued in the prior
26        calendar year and the aggregate amount of tax credit

 

 

HB5185- 31 -LRB102 24773 RJF 34015 b

1        certificates issued as authorized under this Section
2        for all calendar years.
3    (i) For each business seeking registration under this
4Section after December 31, 2016, the Department shall require
5the business to include in its application the North American
6Industry Classification System (NAICS) code applicable to the
7business and the number of employees of the business at the
8time of application. Each business registered by the
9Department as a qualified new business venture that receives
10an investment giving rise to the issuance of a tax credit
11certificate pursuant to this Section shall, for each of the 3
12years following the issue date of the last tax credit
13certificate issued by the Department with respect to such
14business pursuant to this Section, report to the Department
15the following:
16        (1) the number of employees and the location at which
17    those employees are employed, both as of the end of each
18    year;
19        (2) the amount of additional new capital investment
20    raised as of the end of each year, if any; and
21        (3) the terms of any liquidity event occurring during
22    such year; for the purposes of this Section, a "liquidity
23    event" means any event that would be considered an exit
24    for an illiquid investment, including any event that
25    allows the equity holders of the business (or any material
26    portion thereof) to cash out some or all of their

 

 

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1    respective equity interests.
2(Source: P.A. 101-81, eff. 7-12-19; 102-16, eff. 6-17-21.)
 
3    Section 45. The Film Production Services Tax Credit Act of
42008 is amended by changing Section 45 as follows:
 
5    (35 ILCS 16/45)
6    Sec. 45. Evaluation of tax credit program; reports to the
7General Assembly.
8    (a) The Department shall evaluate the tax credit program.
9The evaluation must include an assessment of the effectiveness
10of the program in creating and retaining new jobs in Illinois
11and of the revenue impact of the program, and may include a
12review of the practices and experiences of other states or
13nations with similar programs. Upon completion of this
14evaluation, the Department shall determine the overall success
15of the program, and may make a recommendation to extend,
16modify, or not extend the program based on this evaluation.
17    (b) At the end of each fiscal quarter, the Department must
18submit to the General Assembly a report that includes, without
19limitation, the following information:
20        (1) the economic impact of the tax credit program,
21    including the number of jobs created and retained,
22    including whether the job positions are above-the-line,
23    below-the-line, or extras entry level, management,
24    talent-related, vendor-related, or production-related;

 

 

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1        (2) the amount of film production spending brought to
2    Illinois, including the amount of spending and type of
3    Illinois vendors hired in connection with an accredited
4    production; and
5        (3) an overall picture of whether the human
6    infrastructure of the motion picture industry in Illinois
7    reflects the geographical, racial and ethnic, gender, and
8    income-level diversity of the State of Illinois.
9    (c) At the end of each fiscal year, the Department must
10submit to the General Assembly a report that includes the
11following information:
12        (1) an identification of each vendor that provided
13    goods or services that were included in an accredited
14    production's Illinois production spending, provided that
15    the accredited production's Illinois production spending
16    attributable to that vendor exceeds, in the aggregate,
17    $10,000 or 10% of the accredited production's Illinois
18    production spending, whichever is less;
19        (2) the amount paid to each identified vendor by the
20    accredited production;
21        (3) for each identified vendor, a statement as to
22    whether the vendor is a minority-owned business or a
23    women-owned business, as defined under Section 2 of the
24    Business Enterprise for Minorities, Women, and Persons
25    with Disabilities Act, based on the best efforts of an
26    accredited production; and

 

 

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1        (4) a description of any steps taken by the Department
2    to encourage accredited productions to use vendors who are
3    a minority-owned business or a women-owned business.
4(Source: P.A. 100-391, eff. 8-25-17; 100-603, eff. 7-13-18;
5101-81, eff. 7-12-19.)
 
6    Section 50. The Southwestern Illinois Metropolitan and
7Regional Planning Act is amended by changing Section 35 as
8follows:
 
9    (70 ILCS 1710/35)  (from Ch. 85, par. 1185)
10    Sec. 35. At the close of each fiscal year, the Commission
11shall prepare a complete report of its receipts and
12expenditures during the fiscal year. A copy of this report
13shall be filed with the Governor and with the treasurer of each
14county included in the Metropolitan and Regional Counties
15Area. In addition, on or before December 31 of each even
16numbered year, the Commission shall prepare jointly with the
17Department of Commerce and Economic Opportunity, a report of
18its activities during the biennium indicating how its funds
19were expended, indicating the amount of the appropriation
20requested for the next biennium and explaining how the
21appropriation will be utilized to carry out its
22responsibilities. A copy of this report shall be filed with
23the Governor, the Senate and the House of Representatives.
24(Source: P.A. 94-793, eff. 5-19-06.)
 

 

 

HB5185- 35 -LRB102 24773 RJF 34015 b

1    Section 55. The Illinois Groundwater Protection Act is
2amended by changing Section 4 as follows:
 
3    (415 ILCS 55/4)  (from Ch. 111 1/2, par. 7454)
4    Sec. 4. (a) There shall be established within State
5government an interagency committee which shall be known as
6the Interagency Coordinating Committee on Groundwater. The
7Committee shall be composed of the Director, or his designee,
8of the following agencies:
9        (1) The Illinois Environmental Protection Agency, who
10    shall chair the Committee.
11        (2) The Illinois Department of Natural Resources.
12        (3) The Illinois Department of Public Health.
13        (4) The Office of Mines and Minerals within the
14    Department of Natural Resources.
15        (5) The Office of the State Fire Marshal.
16        (6) The Division of Water Resources of the Department
17    of Natural Resources.
18        (7) The Illinois Department of Agriculture.
19        (8) The Illinois Emergency Management Agency.
20        (9) The Illinois Department of Nuclear Safety.
21        (10) The Illinois Department of Commerce and Economic
22    Opportunity.
23    (b) The Committee shall meet not less than twice each
24calendar year and shall:

 

 

HB5185- 36 -LRB102 24773 RJF 34015 b

1        (1) Review and coordinate the State's policy on
2    groundwater protection.
3        (2) Review and evaluate State laws, regulations and
4    procedures that relate to groundwater protection.
5        (3) Review and evaluate the status of the State's
6    efforts to improve the quality of the groundwater and of
7    the State enforcement efforts for protection of the
8    groundwater and make recommendations on improving the
9    State efforts to protect the groundwater.
10        (4) Recommend procedures for better coordination among
11    State groundwater programs and with local programs related
12    to groundwater protection.
13        (5) Review and recommend procedures to coordinate the
14    State's response to specific incidents of groundwater
15    pollution and coordinate dissemination of information
16    between agencies responsible for the State's response.
17        (6) Make recommendations for and prioritize the
18    State's groundwater research needs.
19        (7) Review, coordinate and evaluate groundwater data
20    collection and analysis.
21        (8) Beginning on January 1, 1990, report biennially to
22    the Governor and the General Assembly on groundwater
23    quality, quantity, and the State's enforcement efforts.
24    (c) The Chairman of the Committee shall propose a
25groundwater protection regulatory agenda for consideration by
26the Committee and the Council. The principal purpose of the

 

 

HB5185- 37 -LRB102 24773 RJF 34015 b

1agenda shall be to systematically consider the groundwater
2protection aspects of relevant federal and State regulatory
3programs and to identify any areas where improvements may be
4warranted. To the extent feasible, the agenda may also serve
5to facilitate a more uniform and coordinated approach toward
6protection of groundwaters in Illinois. Upon adoption of the
7final agenda by the Committee, the Chairman of the Committee
8shall assign a lead agency and any support agencies to prepare
9a regulatory assessment report for each item on the agenda.
10Each regulatory assessment report shall specify the nature of
11the groundwater protection provisions being implemented and
12shall evaluate the results achieved therefrom. Special
13attention shall be given to any preventive measures being
14utilized for protection of groundwaters. The reports shall be
15completed in a timely manner. After review and consideration
16by the Committee, the reports shall become the basis for
17recommending further legislative or regulatory action.
18    (d) No later than January 1, 1992, the Interagency
19Coordinating Committee on Groundwater shall provide a
20comprehensive status report to the Governor and the General
21Assembly concerning implementation of this Act.
22    (e) The Committee shall consider findings and
23recommendations that are provided by the Council, and respond
24in writing regarding such matters. The Chairman of the
25Committee shall designate a liaison person to serve as a
26facilitator of communications with the Council.

 

 

HB5185- 38 -LRB102 24773 RJF 34015 b

1(Source: P.A. 94-793, eff. 5-19-06.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.

 

 

HB5185- 39 -LRB102 24773 RJF 34015 b

1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 605/605-300was 20 ILCS 605/46.2
4    20 ILCS 605/605-615was 20 ILCS 605/46.19e
5    20 ILCS 605/605-680
6    20 ILCS 605/605-550 rep.
7    20 ILCS 605/605-1025 rep.
8    20 ILCS 720/15
9    20 ILCS 720/20
10    20 ILCS 720/25
11    20 ILCS 720/30
12    20 ILCS 860/2from Ch. 105, par. 532
13    20 ILCS 860/2afrom Ch. 105, par. 532a
14    20 ILCS 3953/15 rep.
15    20 ILCS 3953/20 rep.
16    20 ILCS 5075/15
17    20 ILCS 5075/20 new
18    30 ILCS 780/5-30
19    35 ILCS 5/220
20    35 ILCS 16/45
21    70 ILCS 1710/35from Ch. 85, par. 1185
22    415 ILCS 55/4from Ch. 111 1/2, par. 7454