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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 Sections 5-5, 5-15, and | ||||||
6 | 5-20 as follows:
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7 | (35 ILCS 10/5-5)
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8 | Sec. 5-5. Definitions. As used in this Act:
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9 | "Agreement" means the Agreement between a Taxpayer and the | ||||||
10 | Department under
the provisions of Section 5-50 of this Act.
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11 | "Applicant" means a Taxpayer that is operating a business | ||||||
12 | located or that
the Taxpayer plans to locate within the State | ||||||
13 | of Illinois and that is engaged
in interstate or intrastate | ||||||
14 | commerce for the purpose of manufacturing,
processing, | ||||||
15 | assembling, warehousing, or distributing products, conducting
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16 | research and development, providing tourism services, or | ||||||
17 | providing services
in interstate commerce, office industries, | ||||||
18 | or agricultural processing, but
excluding retail, retail food, | ||||||
19 | health, or professional services.
"Applicant" does not include | ||||||
20 | a Taxpayer who closes or
substantially reduces an operation at | ||||||
21 | one location in the State and relocates
substantially the same | ||||||
22 | operation to another location in the State. This does
not | ||||||
23 | prohibit a Taxpayer from expanding its operations at another |
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1 | location in
the State, provided that existing operations of a | ||||||
2 | similar nature located within
the State are not closed or | ||||||
3 | substantially reduced. This also does not prohibit
a Taxpayer | ||||||
4 | from moving its operations from one location in the State to | ||||||
5 | another
location in the State for the purpose of expanding the | ||||||
6 | operation provided that
the Department determines that | ||||||
7 | expansion cannot reasonably be accommodated
within the | ||||||
8 | municipality in which the business is located, or in the case | ||||||
9 | of a
business located in an incorporated area of the county, | ||||||
10 | within the county in
which the business is located, after | ||||||
11 | conferring with the chief elected
official of the municipality | ||||||
12 | or county and taking into consideration any
evidence offered | ||||||
13 | by the municipality or county regarding the ability to
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14 | accommodate expansion within the municipality or county.
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15 | "Committee" means the Illinois Business Investment | ||||||
16 | Committee created under
Section 5-25 of this Act within the | ||||||
17 | Illinois Economic Development Board.
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18 | "Credit" means the amount agreed to between the Department | ||||||
19 | and Applicant
under this Act, but not to exceed the lesser of: | ||||||
20 | (1) the sum of (i) 50% of the Incremental Income Tax | ||||||
21 | attributable to
New Employees at the Applicant's project and | ||||||
22 | (ii) 10% of the training costs of New Employees; or (2) 100% of | ||||||
23 | the Incremental Income Tax attributable to
New Employees at | ||||||
24 | the Applicant's project. However, if the project is located in | ||||||
25 | an underserved area, then the amount of the Credit may not | ||||||
26 | exceed the lesser of: (1) the sum of (i) 75% of the Incremental |
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1 | Income Tax attributable to
New Employees at the Applicant's | ||||||
2 | project and (ii) 10% of the training costs of New Employees; or | ||||||
3 | (2) 100% of the Incremental Income Tax attributable to
New | ||||||
4 | Employees at the Applicant's project. If an Applicant agrees | ||||||
5 | to hire the required number of New Employees, then the maximum | ||||||
6 | amount of the Credit for that Applicant may be increased by an | ||||||
7 | amount not to exceed 25% of the Incremental Income Tax | ||||||
8 | attributable to retained employees at the Applicant's project; | ||||||
9 | provided that, in order to receive the increase for retained | ||||||
10 | employees, the Applicant must provide the additional evidence | ||||||
11 | required under paragraph (3) of subsection (b) of Section | ||||||
12 | 5-25.
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13 | "Department" means the Department of Commerce and Economic | ||||||
14 | Opportunity.
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15 | "Director" means the Director of Commerce and Economic | ||||||
16 | Opportunity.
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17 | "Full-time Employee" means an individual who is employed | ||||||
18 | for consideration
for at least 35 hours each week or who | ||||||
19 | renders any other standard of service
generally accepted by | ||||||
20 | industry custom or practice as full-time employment. An | ||||||
21 | individual for whom a W-2 is issued by a Professional Employer | ||||||
22 | Organization (PEO) is a full-time employee if employed in the | ||||||
23 | service of the Applicant for consideration for at least 35 | ||||||
24 | hours each week or who renders any other standard of service | ||||||
25 | generally accepted by industry custom or practice as full-time | ||||||
26 | employment to Applicant.
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1 | "Incremental Income Tax" means the total amount withheld | ||||||
2 | during the taxable
year from the compensation of New Employees | ||||||
3 | and, if applicable, retained employees under Article 7 of the | ||||||
4 | Illinois
Income Tax Act arising from employment at a project | ||||||
5 | that is the subject of an
Agreement.
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6 | "New Construction EDGE Agreement" means the Agreement | ||||||
7 | between a Taxpayer and the Department under the provisions of | ||||||
8 | Section 5-51 of this Act. | ||||||
9 | "New Construction EDGE Credit" means an amount agreed to | ||||||
10 | between the Department and the Applicant under this Act as | ||||||
11 | part of a New Construction EDGE Agreement that does not exceed | ||||||
12 | 50% of the Incremental Income Tax attributable to New | ||||||
13 | Construction EDGE Employees at the Applicant's project; | ||||||
14 | however, if the New Construction EDGE Project is located in an | ||||||
15 | underserved area, then the amount of the New Construction EDGE | ||||||
16 | Credit may not exceed 75% of the Incremental Income Tax | ||||||
17 | attributable to New Construction EDGE Employees at the | ||||||
18 | Applicant's New Construction EDGE Project. | ||||||
19 | "New Construction EDGE Employee" means a laborer or worker | ||||||
20 | who is employed by an Illinois contractor or subcontractor in | ||||||
21 | the actual construction work on the site of a New Construction | ||||||
22 | EDGE Project, pursuant to a New Construction EDGE Agreement. | ||||||
23 | "New Construction EDGE Incremental Income Tax" means the | ||||||
24 | total amount withheld during the taxable year from the | ||||||
25 | compensation of New Construction EDGE Employees. | ||||||
26 | "New Construction EDGE Project" means the building of a |
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1 | Taxpayer's structure or building, or making improvements of | ||||||
2 | any kind to real property. "New Construction EDGE Project" | ||||||
3 | does not include the routine operation, routine repair, or | ||||||
4 | routine maintenance of existing structures, buildings, or real | ||||||
5 | property. | ||||||
6 | "New Employee" means:
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7 | (a) A Full-time Employee first employed by a Taxpayer | ||||||
8 | in the project
that is the subject of an Agreement and who | ||||||
9 | is hired after the Taxpayer
enters into the tax credit | ||||||
10 | Agreement.
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11 | (b) The term "New Employee" does not include:
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12 | (1) an employee of the Taxpayer who performs a job | ||||||
13 | that was previously
performed by another employee, if | ||||||
14 | that job existed for at least 6
months before hiring | ||||||
15 | the employee;
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16 | (2) an employee of the Taxpayer who was previously | ||||||
17 | employed in
Illinois by a Related Member of the | ||||||
18 | Taxpayer and whose employment was
shifted to the | ||||||
19 | Taxpayer after the Taxpayer entered into the tax | ||||||
20 | credit
Agreement; or
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21 | (3) a child, grandchild, parent, or spouse, other | ||||||
22 | than a spouse who
is legally separated from the | ||||||
23 | individual, of any individual who has a direct
or an | ||||||
24 | indirect ownership interest of at least 5% in the | ||||||
25 | profits, capital, or
value of the Taxpayer.
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26 | (c) Notwithstanding paragraph (1) of subsection (b), |
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1 | an employee may be
considered a New Employee under the | ||||||
2 | Agreement if the employee performs a job
that was | ||||||
3 | previously performed by an employee who was:
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4 | (1) treated under the Agreement as a New Employee; | ||||||
5 | and
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6 | (2) promoted by the Taxpayer to another job.
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7 | (d) Notwithstanding subsection (a), the Department may | ||||||
8 | award Credit to an
Applicant with respect to an employee | ||||||
9 | hired prior to the date of the Agreement
if:
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10 | (1) the Applicant is in receipt of a letter from | ||||||
11 | the Department stating
an
intent to enter into a | ||||||
12 | credit Agreement;
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13 | (2) the letter described in paragraph (1) is | ||||||
14 | issued by the
Department not later than 15 days after | ||||||
15 | the effective date of this Act; and
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16 | (3) the employee was hired after the date the | ||||||
17 | letter described in
paragraph (1) was issued.
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18 | "Noncompliance Date" means, in the case of a Taxpayer that | ||||||
19 | is not complying
with the requirements of the Agreement or the | ||||||
20 | provisions of this Act, the day
following the last date upon | ||||||
21 | which the Taxpayer was in compliance with the
requirements of | ||||||
22 | the Agreement and the provisions of this Act, as determined
by | ||||||
23 | the Director, pursuant to Section 5-65.
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24 | "Pass Through Entity" means an entity that is exempt from | ||||||
25 | the tax under
subsection (b) or (c) of Section 205 of the | ||||||
26 | Illinois Income Tax Act.
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1 | "Professional Employer Organization" (PEO) means an | ||||||
2 | employee leasing company, as defined in Section 206.1(A)(2) of | ||||||
3 | the Illinois Unemployment Insurance Act.
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4 | "Related Member" means a person that, with respect to the | ||||||
5 | Taxpayer during
any portion of the taxable year, is any one of | ||||||
6 | the following:
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7 | (1) An individual stockholder, if the stockholder and | ||||||
8 | the members of the
stockholder's family (as defined in | ||||||
9 | Section 318 of the Internal Revenue Code)
own directly, | ||||||
10 | indirectly, beneficially, or constructively, in the | ||||||
11 | aggregate,
at least 50% of the value of the Taxpayer's | ||||||
12 | outstanding stock.
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13 | (2) A partnership, estate, or trust and any partner or | ||||||
14 | beneficiary,
if the partnership, estate, or trust, and its | ||||||
15 | partners or beneficiaries own
directly, indirectly, | ||||||
16 | beneficially, or constructively, in the aggregate, at
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17 | least 50% of the profits, capital, stock, or value of the
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18 | Taxpayer.
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19 | (3) A corporation, and any party related to the | ||||||
20 | corporation in a manner
that would require an attribution | ||||||
21 | of stock from the corporation to the
party or from the | ||||||
22 | party to the corporation under the attribution rules
of | ||||||
23 | Section 318 of the Internal Revenue Code, if the Taxpayer | ||||||
24 | owns
directly, indirectly, beneficially, or constructively | ||||||
25 | at least
50% of the value of the corporation's outstanding | ||||||
26 | stock.
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1 | (4) A corporation and any party related to that | ||||||
2 | corporation in a manner
that would require an attribution | ||||||
3 | of stock from the corporation to the party or
from the | ||||||
4 | party to the corporation under the attribution rules of | ||||||
5 | Section 318 of
the Internal Revenue Code, if the | ||||||
6 | corporation and all such related parties own
in the | ||||||
7 | aggregate at least 50% of the profits, capital, stock, or | ||||||
8 | value of the
Taxpayer.
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9 | (5) A person to or from whom there is attribution of | ||||||
10 | stock ownership
in accordance with Section 1563(e) of the | ||||||
11 | Internal Revenue Code, except,
for purposes of determining | ||||||
12 | whether a person is a Related Member under
this paragraph, | ||||||
13 | 20% shall be substituted for 5% wherever 5% appears in
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14 | Section 1563(e) of the Internal Revenue Code.
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15 | "Startup taxpayer" means a corporation, partnership, or | ||||||
16 | other entity incorporated no more than 5 years before the | ||||||
17 | filing of an application for an Agreement that has never had | ||||||
18 | any Illinois income tax liability, excluding any Illinois | ||||||
19 | income tax liability of a Related Member which shall not be | ||||||
20 | attributed to the startup taxpayer. | ||||||
21 | "Taxpayer" means an individual, corporation, partnership, | ||||||
22 | or other entity
that has any Illinois Income Tax liability.
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23 | "Underserved area" means a geographic area that meets one | ||||||
24 | or more of the following conditions: | ||||||
25 | (1) the area has a poverty rate of at least 20% | ||||||
26 | according to the latest American Community Survey federal |
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1 | decennial census ; | ||||||
2 | (2) 35% or more of the families with children in the | ||||||
3 | area are living below 130% of the poverty line, according | ||||||
4 | to the latest American Community Survey 75% or more of the | ||||||
5 | children in the area participate in the federal free lunch | ||||||
6 | program according to reported statistics from the State | ||||||
7 | Board of Education ; | ||||||
8 | (3) at least 20% of the households in the area receive | ||||||
9 | assistance under the Supplemental Nutrition Assistance | ||||||
10 | Program (SNAP); or | ||||||
11 | (4) the area has
an average unemployment rate, as | ||||||
12 | determined by the Illinois Department of
Employment | ||||||
13 | Security, that is more than 120% of the national | ||||||
14 | unemployment average, as
determined by the U.S. Department | ||||||
15 | of Labor, for a period of at least 2 consecutive calendar | ||||||
16 | years preceding the date of the application. | ||||||
17 | (Source: P.A. 100-511, eff. 9-18-17; 101-9, eff. 6-5-19.)
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18 | (35 ILCS 10/5-15) | ||||||
19 | Sec. 5-15. Tax Credit Awards. Subject to the conditions | ||||||
20 | set forth in this
Act, a Taxpayer is
entitled to a Credit | ||||||
21 | against or, as described in subsection (g) of this Section, a | ||||||
22 | payment towards taxes imposed pursuant to subsections (a) and | ||||||
23 | (b)
of Section 201 of the Illinois
Income Tax Act that may be | ||||||
24 | imposed on the Taxpayer for a taxable year beginning
on or
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25 | after January 1, 1999,
if the Taxpayer is awarded a Credit by |
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1 | the Department under this Act for that
taxable year. | ||||||
2 | (a) The Department shall make Credit awards under this Act | ||||||
3 | to foster job
creation and retention in Illinois. | ||||||
4 | (b) A person that proposes a project to create new jobs in | ||||||
5 | Illinois must
enter into an Agreement with the
Department for | ||||||
6 | the Credit under this Act. | ||||||
7 | (c) The Credit shall be claimed for the taxable years | ||||||
8 | specified in the
Agreement. | ||||||
9 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
10 | attributable to
the project that is the subject of the | ||||||
11 | Agreement. | ||||||
12 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
13 | Applicant that uses a PEO if all other award criteria are | ||||||
14 | satisfied.
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15 | (f) In lieu of the Credit allowed under this Act against | ||||||
16 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
17 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
18 | ending on or after December 31, 2009, for Taxpayers that | ||||||
19 | entered into Agreements prior to January 1, 2015 and otherwise | ||||||
20 | meet the criteria set forth in this subsection (f), the | ||||||
21 | Taxpayer may elect to claim the Credit against its obligation | ||||||
22 | to pay over withholding under Section 704A of the Illinois | ||||||
23 | Income Tax Act. | ||||||
24 | (1) The election under this subsection (f) may be made | ||||||
25 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
26 | the following business activities: water purification and |
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1 | treatment, motor vehicle metal stamping, automobile | ||||||
2 | manufacturing, automobile and light duty motor vehicle | ||||||
3 | manufacturing, motor vehicle manufacturing, light truck | ||||||
4 | and utility vehicle manufacturing, heavy duty truck | ||||||
5 | manufacturing, motor vehicle body manufacturing, cable | ||||||
6 | television infrastructure design or manufacturing, or | ||||||
7 | wireless telecommunication or computing terminal device | ||||||
8 | design or manufacturing for use on public networks and | ||||||
9 | (ii) meets the following criteria: | ||||||
10 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
11 | Illinois net loss deduction under Section 207 of the | ||||||
12 | Illinois Income Tax Act for the taxable year in which | ||||||
13 | the Credit is awarded, (ii) employed a minimum of | ||||||
14 | 1,000 full-time employees in this State during the | ||||||
15 | taxable year in which the Credit is awarded, (iii) has | ||||||
16 | an Agreement under this Act on December 14, 2009 (the | ||||||
17 | effective date of Public Act 96-834), and (iv) is in | ||||||
18 | compliance with all provisions of that Agreement; | ||||||
19 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
20 | Illinois net loss deduction under Section 207 of the | ||||||
21 | Illinois Income Tax Act for the taxable year in which | ||||||
22 | the Credit is awarded, (ii) employed a minimum of | ||||||
23 | 1,000 full-time employees in this State during the | ||||||
24 | taxable year in which the Credit is awarded, and (iii) | ||||||
25 | has applied for an Agreement within 365 days after | ||||||
26 | December 14, 2009 (the effective date of Public Act |
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1 | 96-834); | ||||||
2 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
3 | loss carryforward under Section 207 of the Illinois | ||||||
4 | Income Tax Act in a taxable year ending during | ||||||
5 | calendar year 2008, (ii) has applied for an Agreement | ||||||
6 | within 150 days after the effective date of this | ||||||
7 | amendatory Act of the 96th General Assembly, (iii) | ||||||
8 | creates at least 400 new jobs in Illinois, (iv) | ||||||
9 | retains at least 2,000 jobs in Illinois that would | ||||||
10 | have been at risk of relocation out of Illinois over a | ||||||
11 | 10-year period, and (v) makes a capital investment of | ||||||
12 | at least $75,000,000; | ||||||
13 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
14 | loss carryforward under Section 207 of the Illinois | ||||||
15 | Income Tax Act in a taxable year ending during | ||||||
16 | calendar year 2009, (ii) has applied for an Agreement | ||||||
17 | within 150 days after the effective date of this | ||||||
18 | amendatory Act of the 96th General Assembly, (iii) | ||||||
19 | creates at least 150 new jobs, (iv) retains at least | ||||||
20 | 1,000 jobs in Illinois that would have been at risk of | ||||||
21 | relocation out of Illinois over a 10-year period, and | ||||||
22 | (v) makes a capital investment of at least | ||||||
23 | $57,000,000; or | ||||||
24 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
25 | full-time employees in the State during the year in | ||||||
26 | which the Credit is awarded, (ii) commits to make at |
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1 | least $500,000,000 in combined capital improvements | ||||||
2 | and project costs under the Agreement, (iii) applies | ||||||
3 | for an Agreement between January 1, 2011 and June 30, | ||||||
4 | 2011, (iv) executes an Agreement for the Credit during | ||||||
5 | calendar year 2011, and (v) was incorporated no more | ||||||
6 | than 5 years before the filing of an application for an | ||||||
7 | Agreement. | ||||||
8 | (1.5) The election under this subsection (f) may also | ||||||
9 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
10 | agreement that was executed between January 1, 2011 and | ||||||
11 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
12 | the manufacture of inner tubes or tires, or both, from | ||||||
13 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
14 | 2,400 full-time employees in Illinois at the time of | ||||||
15 | application, (iii) creates at least 350 full-time jobs and | ||||||
16 | retains at least 250 full-time jobs in Illinois that would | ||||||
17 | have been at risk of being created or retained outside of | ||||||
18 | Illinois, and (iv) makes a capital investment of at least | ||||||
19 | $200,000,000 at the project location. | ||||||
20 | (1.6) The election under this subsection (f) may also | ||||||
21 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
22 | agreement that was executed within 150 days after the | ||||||
23 | effective date of this amendatory Act of the 97th General | ||||||
24 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
25 | operation of a discount department store, (ii) maintains | ||||||
26 | its corporate headquarters in Illinois, (iii) employs a |
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1 | minimum of 4,250 full-time employees at its corporate | ||||||
2 | headquarters in Illinois at the time of application, (iv) | ||||||
3 | retains at least 4,250 full-time jobs in Illinois that | ||||||
4 | would have been at risk of being relocated outside of | ||||||
5 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
6 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
7 | least $300,000,000 at the project location. | ||||||
8 | (1.7) Notwithstanding any other provision of law, the | ||||||
9 | election under this subsection (f) may also be made by a | ||||||
10 | Taxpayer for any Credit awarded pursuant to an agreement | ||||||
11 | that was executed or applied for on or after July 1, 2011 | ||||||
12 | and on or before March 31, 2012, if the Taxpayer is | ||||||
13 | primarily engaged in the manufacture of original and | ||||||
14 | aftermarket filtration parts and products for automobiles, | ||||||
15 | motor vehicles, light duty motor vehicles, light trucks | ||||||
16 | and utility vehicles, and heavy duty trucks, (ii) employs | ||||||
17 | a minimum of 1,000 full-time employees in Illinois at the | ||||||
18 | time of application, (iii) creates at least 250 full-time | ||||||
19 | jobs in Illinois, (iv) relocates its corporate | ||||||
20 | headquarters to Illinois from another state, and (v) makes | ||||||
21 | a capital investment of at least $4,000,000 at the project | ||||||
22 | location. | ||||||
23 | (1.8) Notwithstanding any other provision of law, the | ||||||
24 | election under this subsection (f) may also be made by a | ||||||
25 | startup taxpayer for any Credit awarded pursuant to an | ||||||
26 | Agreement that was executed or applied for on or after the |
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| |||||||
1 | effective date of this amendatory Act of the 102nd General | ||||||
2 | Assembly, if the startup taxpayer, without considering any | ||||||
3 | Related Member or other investor, (i) has never had any | ||||||
4 | Illinois income tax liability and (ii) was incorporated no | ||||||
5 | more than 5 years before the filing of an application for | ||||||
6 | an Agreement. Any such election under this paragraph (1.8) | ||||||
7 | shall be effective unless and until such startup taxpayer | ||||||
8 | has any Illinois income tax liability. This election under | ||||||
9 | this paragraph (1.8) shall automatically terminate when | ||||||
10 | the startup taxpayer has any Illinois income tax liability | ||||||
11 | at the end of any taxable year during the term of the | ||||||
12 | Agreement. Thereafter, the startup taxpayer may receive a | ||||||
13 | Credit, taking into account any benefits previously | ||||||
14 | enjoyed or received by way of the election under this | ||||||
15 | paragraph (1.8), so long as the startup taxpayer remains | ||||||
16 | in compliance with the terms and conditions of the | ||||||
17 | Agreement. | ||||||
18 | (2) An election under this subsection shall allow the | ||||||
19 | credit to be taken against payments otherwise due under | ||||||
20 | Section 704A of the Illinois Income Tax Act during the | ||||||
21 | first calendar year beginning after the end of the taxable | ||||||
22 | year in which the credit is awarded under this Act. | ||||||
23 | (3) The election shall be made in the form and manner | ||||||
24 | required by the Illinois Department of Revenue and, once | ||||||
25 | made, shall be irrevocable. | ||||||
26 | (4) If a Taxpayer who meets the requirements of |
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| |||||||
1 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
2 | elects to claim the Credit against its withholdings as | ||||||
3 | provided in this subsection (f), then, on and after the | ||||||
4 | date of the election, the terms of the Agreement between | ||||||
5 | the Taxpayer and the Department may not be further amended | ||||||
6 | during the term of the Agreement. | ||||||
7 | (g) A pass-through entity that has been awarded a credit | ||||||
8 | under this Act, its shareholders, or its partners may treat | ||||||
9 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
10 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
11 | "tax payment" means a payment as described in Article 6 or | ||||||
12 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
13 | made by a pass-through entity on behalf of any of its | ||||||
14 | shareholders or partners to satisfy such shareholders' or | ||||||
15 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
16 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
17 | the amount of the award credited pursuant to this Act exceed | ||||||
18 | the Illinois income tax liability of the pass-through entity | ||||||
19 | or its shareholders or partners for the taxable year. | ||||||
20 | (Source: P.A. 100-511, eff. 9-18-17.)
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21 | (35 ILCS 10/5-20)
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22 | Sec. 5-20. Application for a project to create and retain | ||||||
23 | new jobs.
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24 | (a) Any Taxpayer proposing a project located or planned to | ||||||
25 | be located in
Illinois may request consideration
for |
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| |||||||
1 | designation of its project, by formal written letter of | ||||||
2 | request or by
formal application to the Department,
in which | ||||||
3 | the Applicant states its intent to make at least a specified | ||||||
4 | level of
investment and
intends to hire or retain a
specified | ||||||
5 | number of full-time employees at a designated location in | ||||||
6 | Illinois.
As
circumstances require, the
Department may require | ||||||
7 | a formal application from an Applicant and a formal
letter of | ||||||
8 | request for
assistance.
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9 | (b) In order to qualify for Credits under this Act, an | ||||||
10 | Applicant's project
must:
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11 | (1) if the Applicant has more than 100 employees, | ||||||
12 | involve an investment of at least $2,500,000 in capital | ||||||
13 | improvements
to be placed in service within the
State as a | ||||||
14 | direct result of the project; if the Applicant has 100 or | ||||||
15 | fewer employees, then there is no capital investment | ||||||
16 | requirement;
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17 | (1.5) if the Applicant has more than 100 employees, | ||||||
18 | employ a number of new employees in the State equal to the | ||||||
19 | lesser of (A) 10% of the number of full-time employees | ||||||
20 | employed by the applicant world-wide on the date the | ||||||
21 | application is filed with the Department or (B) 50 New | ||||||
22 | Employees; and, if the Applicant has 100 or fewer | ||||||
23 | employees, employ a number of new employees in the State | ||||||
24 | equal to the lesser of (A) 5% of the number of full-time | ||||||
25 | employees employed by the applicant world-wide on the date | ||||||
26 | the application is filed with the Department or (B) 50 New |
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1 | Employees; | ||||||
2 | (1.6) if the Applicant is a startup taxpayer, the | ||||||
3 | employees employed by Related Members shall not be | ||||||
4 | attributed to the Applicant for purposes of determining | ||||||
5 | the capital investment or job creation requirements under | ||||||
6 | this subsection (b); | ||||||
7 | (2) (blank); | ||||||
8 | (3) (blank);
and
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9 | (4) include an annual sexual harassment policy report | ||||||
10 | as provided under Section 5-58. | ||||||
11 | (c) After receipt of an application, the Department may | ||||||
12 | enter into an
Agreement with the Applicant if the
application | ||||||
13 | is accepted in accordance with Section 5-25.
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14 | (Source: P.A. 100-511, eff. 9-18-17; 100-698, eff. 1-1-19; | ||||||
15 | 101-81, eff. 7-12-19.)
|