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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Economic Development for a Growing Economy | |||||||||||||||||||
5 | Tax Credit Act is amended by changing Section 5-15 as follows: | |||||||||||||||||||
6 | (35 ILCS 10/5-15) | |||||||||||||||||||
7 | Sec. 5-15. Tax Credit Awards. Subject to the conditions | |||||||||||||||||||
8 | set forth in this
Act, a Taxpayer is
entitled to a Credit | |||||||||||||||||||
9 | against or, as described in subsection (g) of this Section, a | |||||||||||||||||||
10 | payment towards taxes imposed pursuant to subsections (a) and | |||||||||||||||||||
11 | (b)
of Section 201 of the Illinois
Income Tax Act that may be | |||||||||||||||||||
12 | imposed on the Taxpayer for a taxable year beginning
on or
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13 | after January 1, 1999,
if the Taxpayer is awarded a Credit by | |||||||||||||||||||
14 | the Department under this Act for that
taxable year. | |||||||||||||||||||
15 | (a) The Department shall make Credit awards under this Act | |||||||||||||||||||
16 | to foster job
creation and retention in Illinois. | |||||||||||||||||||
17 | (b) A person that proposes a project to create new jobs in | |||||||||||||||||||
18 | Illinois must
enter into an Agreement with the
Department for | |||||||||||||||||||
19 | the Credit under this Act. | |||||||||||||||||||
20 | (c) The Credit shall be claimed for the taxable years | |||||||||||||||||||
21 | specified in the
Agreement. | |||||||||||||||||||
22 | (d) The Credit shall not exceed the Incremental Income Tax | |||||||||||||||||||
23 | attributable to
the project that is the subject of the |
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1 | Agreement. | ||||||
2 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
3 | Applicant that uses a PEO if all other award criteria are | ||||||
4 | satisfied.
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5 | (f) In lieu of the Credit allowed under this Act against | ||||||
6 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
7 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
8 | ending on or after December 31, 2009, for Taxpayers that | ||||||
9 | entered into Agreements prior to January 1, 2015 and otherwise | ||||||
10 | meet the criteria set forth in this subsection (f), the | ||||||
11 | Taxpayer may elect to claim the Credit against its obligation | ||||||
12 | to pay over withholding under Section 704A of the Illinois | ||||||
13 | Income Tax Act. | ||||||
14 | (1) The election under this subsection (f) may be made | ||||||
15 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
16 | the following business activities: water purification and | ||||||
17 | treatment, motor vehicle metal stamping, automobile | ||||||
18 | manufacturing, automobile and light duty motor vehicle | ||||||
19 | manufacturing, motor vehicle manufacturing, light truck | ||||||
20 | and utility vehicle manufacturing, heavy duty truck | ||||||
21 | manufacturing, motor vehicle body manufacturing, cable | ||||||
22 | television infrastructure design or manufacturing, or | ||||||
23 | wireless telecommunication or computing terminal device | ||||||
24 | design or manufacturing for use on public networks and | ||||||
25 | (ii) meets the following criteria: | ||||||
26 | (A) the Taxpayer (i) had an Illinois net loss or an |
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1 | Illinois net loss deduction under Section 207 of the | ||||||
2 | Illinois Income Tax Act for the taxable year in which | ||||||
3 | the Credit is awarded, (ii) employed a minimum of | ||||||
4 | 1,000 full-time employees in this State during the | ||||||
5 | taxable year in which the Credit is awarded, (iii) has | ||||||
6 | an Agreement under this Act on December 14, 2009 (the | ||||||
7 | effective date of Public Act 96-834), and (iv) is in | ||||||
8 | compliance with all provisions of that Agreement; | ||||||
9 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
10 | Illinois net loss deduction under Section 207 of the | ||||||
11 | Illinois Income Tax Act for the taxable year in which | ||||||
12 | the Credit is awarded, (ii) employed a minimum of | ||||||
13 | 1,000 full-time employees in this State during the | ||||||
14 | taxable year in which the Credit is awarded, and (iii) | ||||||
15 | has applied for an Agreement within 365 days after | ||||||
16 | December 14, 2009 (the effective date of Public Act | ||||||
17 | 96-834); | ||||||
18 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
19 | loss carryforward under Section 207 of the Illinois | ||||||
20 | Income Tax Act in a taxable year ending during | ||||||
21 | calendar year 2008, (ii) has applied for an Agreement | ||||||
22 | within 150 days after the effective date of this | ||||||
23 | amendatory Act of the 96th General Assembly, (iii) | ||||||
24 | creates at least 400 new jobs in Illinois, (iv) | ||||||
25 | retains at least 2,000 jobs in Illinois that would | ||||||
26 | have been at risk of relocation out of Illinois over a |
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1 | 10-year period, and (v) makes a capital investment of | ||||||
2 | at least $75,000,000; | ||||||
3 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
4 | loss carryforward under Section 207 of the Illinois | ||||||
5 | Income Tax Act in a taxable year ending during | ||||||
6 | calendar year 2009, (ii) has applied for an Agreement | ||||||
7 | within 150 days after the effective date of this | ||||||
8 | amendatory Act of the 96th General Assembly, (iii) | ||||||
9 | creates at least 150 new jobs, (iv) retains at least | ||||||
10 | 1,000 jobs in Illinois that would have been at risk of | ||||||
11 | relocation out of Illinois over a 10-year period, and | ||||||
12 | (v) makes a capital investment of at least | ||||||
13 | $57,000,000; or | ||||||
14 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
15 | full-time employees in the State during the year in | ||||||
16 | which the Credit is awarded, (ii) commits to make at | ||||||
17 | least $500,000,000 in combined capital improvements | ||||||
18 | and project costs under the Agreement, (iii) applies | ||||||
19 | for an Agreement between January 1, 2011 and June 30, | ||||||
20 | 2011, (iv) executes an Agreement for the Credit during | ||||||
21 | calendar year 2011, and (v) was incorporated no more | ||||||
22 | than 5 years before the filing of an application for an | ||||||
23 | Agreement. | ||||||
24 | (1.5) The election under this subsection (f) may also | ||||||
25 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
26 | agreement that was executed between January 1, 2011 and |
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1 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
2 | the manufacture of inner tubes or tires, or both, from | ||||||
3 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
4 | 2,400 full-time employees in Illinois at the time of | ||||||
5 | application, (iii) creates at least 350 full-time jobs and | ||||||
6 | retains at least 250 full-time jobs in Illinois that would | ||||||
7 | have been at risk of being created or retained outside of | ||||||
8 | Illinois, and (iv) makes a capital investment of at least | ||||||
9 | $200,000,000 at the project location. | ||||||
10 | (1.6) The election under this subsection (f) may also | ||||||
11 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
12 | agreement that was executed within 150 days after the | ||||||
13 | effective date of this amendatory Act of the 97th General | ||||||
14 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
15 | operation of a discount department store, (ii) maintains | ||||||
16 | its corporate headquarters in Illinois, (iii) employs a | ||||||
17 | minimum of 4,250 full-time employees at its corporate | ||||||
18 | headquarters in Illinois at the time of application, (iv) | ||||||
19 | retains at least 4,250 full-time jobs in Illinois that | ||||||
20 | would have been at risk of being relocated outside of | ||||||
21 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
22 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
23 | least $300,000,000 at the project location. | ||||||
24 | (1.7) Notwithstanding any other provision of law, the | ||||||
25 | election under this subsection (f) may also be made by a | ||||||
26 | Taxpayer for any Credit awarded pursuant to an agreement |
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1 | that was executed or applied for on or after July 1, 2011 | ||||||
2 | and on or before March 31, 2012, if the Taxpayer is | ||||||
3 | primarily engaged in the manufacture of original and | ||||||
4 | aftermarket filtration parts and products for automobiles, | ||||||
5 | motor vehicles, light duty motor vehicles, light trucks | ||||||
6 | and utility vehicles, and heavy duty trucks, (ii) employs | ||||||
7 | a minimum of 1,000 full-time employees in Illinois at the | ||||||
8 | time of application, (iii) creates at least 250 full-time | ||||||
9 | jobs in Illinois, (iv) relocates its corporate | ||||||
10 | headquarters to Illinois from another state, and (v) makes | ||||||
11 | a capital investment of at least $4,000,000 at the project | ||||||
12 | location. | ||||||
13 | (2) An election under this subsection shall allow the | ||||||
14 | credit to be taken against payments otherwise due under | ||||||
15 | Section 704A of the Illinois Income Tax Act during the | ||||||
16 | first calendar year beginning after the end of the taxable | ||||||
17 | year in which the credit is awarded under this Act. | ||||||
18 | (3) The election shall be made in the form and manner | ||||||
19 | required by the Illinois Department of Revenue and, once | ||||||
20 | made, shall be irrevocable. | ||||||
21 | (4) If a Taxpayer who meets the requirements of | ||||||
22 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
23 | elects to claim the Credit against its withholdings as | ||||||
24 | provided in this subsection (f), then, on and after the | ||||||
25 | date of the election, the terms of the Agreement between | ||||||
26 | the Taxpayer and the Department may not be further amended |
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1 | during the term of the Agreement. | ||||||
2 | (5) If a Taxpayer makes an election under this | ||||||
3 | subsection (f) for a calendar year beginning on or after | ||||||
4 | the effective date of this amendatory Act of the 102nd | ||||||
5 | General Assembly, and, during the term of the Agreement or | ||||||
6 | at any time within 20 years after the expiration of the | ||||||
7 | Agreement, the Taxpayer sells its operations or the | ||||||
8 | principal part of the portion of its operations that is | ||||||
9 | located in the State, then the entire credit amount | ||||||
10 | awarded to the Taxpayer prior to the date the Taxpayer | ||||||
11 | sells its operations shall be returned to the Department | ||||||
12 | and shall be reallocated to the local workforce investment | ||||||
13 | area in which the project was located. This paragraph (5) | ||||||
14 | shall not apply if: (i) the Taxpayer as a whole is sold at | ||||||
15 | a loss to its owners; or (ii) the principal part of that | ||||||
16 | portion of its operations that is located in the State is | ||||||
17 | sold at a loss to the Taxpayer. For purposes of this | ||||||
18 | subparagraph, "loss" shall be as defined in 26 U.S.C. 65. | ||||||
19 | (g) A pass-through entity that has been awarded a credit | ||||||
20 | under this Act, its shareholders, or its partners may treat | ||||||
21 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
22 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
23 | "tax payment" means a payment as described in Article 6 or | ||||||
24 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
25 | made by a pass-through entity on behalf of any of its | ||||||
26 | shareholders or partners to satisfy such shareholders' or |
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1 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
2 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
3 | the amount of the award credited pursuant to this Act exceed | ||||||
4 | the Illinois income tax liability of the pass-through entity | ||||||
5 | or its shareholders or partners for the taxable year. | ||||||
6 | (Source: P.A. 100-511, eff. 9-18-17.)
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