Rep. Michael J. Zalewski
Filed: 1/9/2023
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1 | AMENDMENT TO SENATE BILL 2951
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2 | AMENDMENT NO. ______. Amend Senate Bill 2951 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Invest in Illinois Act. | ||||||
6 | Section 5. Purpose. The General Assembly finds that the | ||||||
7 | State must encourage and promote the retention and expansion | ||||||
8 | of existing businesses and industry within the State and | ||||||
9 | recruit and attract new businesses and industry to the State | ||||||
10 | by providing businesses with ready access to the capital and | ||||||
11 | incentives needed to stimulate economic activity and create | ||||||
12 | new jobs. | ||||||
13 | Section 10. Definitions. As used in this Act: | ||||||
14 | "Agreement" means an agreement between an applicant and | ||||||
15 | the Department under Section 30 of this Act. |
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1 | "Applicant" means a taxpayer that operates or plans to | ||||||
2 | operate an eligible business in the State. | ||||||
3 | "Business" means a sole proprietorship, partnership, | ||||||
4 | corporation, or limited liability company. | ||||||
5 | "Capital improvement" means (i) the purchase, renovation, | ||||||
6 | rehabilitation, or construction, at an approved project site | ||||||
7 | in the State, of land, buildings, structures, equipment, or | ||||||
8 | furnishings and (ii) goods or services that are normally | ||||||
9 | capitalized, including organizational costs and research and | ||||||
10 | development costs incurred in Illinois. "Capital improvement" | ||||||
11 | does not include land, buildings, structures, and equipment | ||||||
12 | that are leased, unless the term of the lease equals or exceeds | ||||||
13 | the term of the agreement. For land, buildings, structures, | ||||||
14 | and equipment that are leased and are considered capital | ||||||
15 | improvements, the cost of the property shall be determined | ||||||
16 | from the present value of the lease payments, using the | ||||||
17 | corporate interest rate prevailing at the time of the | ||||||
18 | application. | ||||||
19 | "Capital investment" means the expenditure of money for | ||||||
20 | capital improvements. | ||||||
21 | "Department" means the Department of Commerce and Economic | ||||||
22 | Opportunity. | ||||||
23 | "Director" means the Director of Commerce and Economic | ||||||
24 | Opportunity. | ||||||
25 | "Eligible business" means a business that is engaged in | ||||||
26 | manufacturing, processing, assembling, warehousing, or |
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1 | distributing products, conducting research and development, | ||||||
2 | providing tourism services, or providing commercial services | ||||||
3 | in office industries or agricultural processing. "Eligible | ||||||
4 | business" does not include a retailer or a provider of health | ||||||
5 | services or professional services. | ||||||
6 | "Full-time employee" means an individual who is employed | ||||||
7 | for consideration for at least 35 hours each week or who | ||||||
8 | renders any other standard of service generally accepted by | ||||||
9 | industry custom or practice as full-time employment. Annually | ||||||
10 | scheduled periods for inventory or repairs, vacations, | ||||||
11 | holidays, and paid time for sick leave, vacation, or other | ||||||
12 | leave shall be included in this computation of full-time | ||||||
13 | employment. An individual for whom a W-2 is issued by a | ||||||
14 | Professional Employer Organization is a full-time employee if | ||||||
15 | employed in the service of the applicant for consideration for | ||||||
16 | at least 35 hours each week. | ||||||
17 | "Project" means for-profit economic development activity | ||||||
18 | or activities at a single site. For-profit economic | ||||||
19 | development activity or activities of one or more taxpayers at | ||||||
20 | multiple sites may be considered a project if the economic | ||||||
21 | activities are vertically integrated and designated by the | ||||||
22 | Department as a project and as the subject of an agreement that | ||||||
23 | includes capital improvement requirements and job creation | ||||||
24 | requirements and, if applicable, job retention requirements | ||||||
25 | for the project location or locations. The employees subject | ||||||
26 | to the agreement must be assigned to a specific project |
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1 | location and work there as their primary location. | ||||||
2 | "Qualified investment" means investment in this State | ||||||
3 | related to a project subject to an agreement under this Act. | ||||||
4 | "Taxpayer" means a business that is subject to any tax or | ||||||
5 | fee collected by the Department of Revenue or that will be | ||||||
6 | subject to any tax or fee collected by the Department of | ||||||
7 | Revenue upon the location of the business in the State. | ||||||
8 | Section 15. Eligibility. | ||||||
9 | (a) The Department may make non-competitive economic | ||||||
10 | incentive awards, including, but not limited to, grants and | ||||||
11 | loans, to assist applicants that pledge to make capital | ||||||
12 | investments and create new jobs in this State or retain jobs in | ||||||
13 | this State. | ||||||
14 | (b) To qualify for economic incentives under this Act, an
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15 | applicant must: | ||||||
16 | (1) be in good standing under the laws of this State
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17 | and the laws of all other states where the applicant was
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18 | formed or is organized; and
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19 | (2) owe no delinquent taxes to the State. | ||||||
20 | (c) The Department may not award economic incentives to an
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21 | applicant that (i) closes operations at one location in the
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22 | State or reduces those operations by more than 50% and (ii)
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23 | relocates substantially the same operations to another
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24 | location in the State. This prohibition does not apply if (i)
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25 | the applicant moves its operations from one location in the
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1 | State to another location in the State for the purpose of
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2 | expanding its operations in the State and (ii) the Department
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3 | determines that expansion could not reasonably be accommodated
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4 | within the municipality or county where the business was
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5 | located prior to the relocation. In making its determination,
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6 | the Department shall confer with the chief executive officer
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7 | of the municipality or county where the business was located
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8 | prior to the relocation and take into consideration any
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9 | evidence offered by the municipality or county regarding its
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10 | ability to accommodate expansion within the municipality or
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11 | county. | ||||||
12 | (d) Notwithstanding subsection (c), the Department shall | ||||||
13 | not award economic incentives to a professional sports | ||||||
14 | organization that moves its operations from one location in | ||||||
15 | the State to another location in the State. | ||||||
16 | (e) Nothing in this Act will diminish or remove diversity, | ||||||
17 | equity, inclusion, or jobs goals and commitments in other | ||||||
18 | State Programs related to any development project supported by | ||||||
19 | this Act. | ||||||
20 | Section 20. Application. An applicant seeking an economic | ||||||
21 | incentive under this Act shall submit a detailed application | ||||||
22 | to the Department. The application must, at a minimum, contain | ||||||
23 | the following information: | ||||||
24 | (1) the location of the project; | ||||||
25 | (2) the amount of the capital investment the applicant |
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1 | will make in the
project; | ||||||
2 | (3) the number of new jobs that will be created as a | ||||||
3 | result of the project; | ||||||
4 | (4) the number of jobs retained by an existing | ||||||
5 | applicant; and | ||||||
6 | (5) the average salary of the jobs to be created or | ||||||
7 | retained. | ||||||
8 | Section 25. Review of application. The Department shall | ||||||
9 | determine which projects will benefit the State and are | ||||||
10 | eligible to receive an economic incentive under this Act. In | ||||||
11 | making this determination, the Department may consider: | ||||||
12 | (1) the number of jobs to be created by the applicant; | ||||||
13 | (2) the number of jobs to be retained by the | ||||||
14 | applicant; | ||||||
15 | (3) the average salary of jobs created by the | ||||||
16 | applicant; | ||||||
17 | (4) the average salary of jobs retained by the | ||||||
18 | applicant; | ||||||
19 | (5) the total capital investment to be made by the | ||||||
20 | applicant; | ||||||
21 | (6) the likelihood of other businesses locating within | ||||||
22 | the same vicinity or within the State as a result of the | ||||||
23 | business activity to be conducted by the applicant | ||||||
24 | receiving the economic incentive; | ||||||
25 | (7) the impact on the economy of the area or community |
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1 | where the project is located; and | ||||||
2 | (8) any other factors the Department determines to be | ||||||
3 | relevant to accomplish the purposes of this Act. | ||||||
4 | Section 30. Agreement. | ||||||
5 | (a) Upon approval of an application under this Act, the | ||||||
6 | Department shall enter into an agreement with the applicant | ||||||
7 | that shall include, at a minimum, the following: | ||||||
8 | (1) a detailed description of the project that is the | ||||||
9 | subject of the agreement, as well as the performance | ||||||
10 | conditions, including the required amount of capital | ||||||
11 | investment and the number of jobs required to be created | ||||||
12 | or retained; | ||||||
13 | (2) the performance conditions that must be met to | ||||||
14 | obtain the award, including, but
not limited to, the | ||||||
15 | number of new jobs created, the average salary, and the | ||||||
16 | total capital investment; | ||||||
17 | (3) the schedule of payments;
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18 | (4) a requirement that the applicant maintain | ||||||
19 | operations at the project location for a minimum number of | ||||||
20 | years;
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21 | (5) a specific method for determining the number of | ||||||
22 | new employees and, if applicable, the number of retained | ||||||
23 | employees, to be employed during each taxable year covered | ||||||
24 | by the agreement;
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25 | (6) a requirement that the taxpayer annually report to |
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1 | the Department the number of new employees and any other | ||||||
2 | information the Department deems necessary and appropriate | ||||||
3 | to perform its duties under this Act; | ||||||
4 | (7) a detailed description of the number of new | ||||||
5 | employees to be hired and the occupation and payroll of | ||||||
6 | full-time jobs to be created or retained because of the | ||||||
7 | project;
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8 | (8) the minimum capital investment the taxpayer will | ||||||
9 | make, the time period for placing the property in service, | ||||||
10 | and the designated location in Illinois for the capital | ||||||
11 | investment; | ||||||
12 | (9) a requirement that the taxpayer provide written | ||||||
13 | notice to the Director and the Director's designee not | ||||||
14 | more than 30 days after the taxpayer determines that the | ||||||
15 | minimum job creation, job retention, employment payroll, | ||||||
16 | or capital investment is no longer or will no longer be | ||||||
17 | achieved or maintained as required in the agreement and | ||||||
18 | include in that notice the number of layoffs, the date of | ||||||
19 | the layoffs, and the taxpayer's efforts to provide career | ||||||
20 | and training counseling to the impacted workers with | ||||||
21 | industry-related certifications and trainings; | ||||||
22 | (10) a claw-back provision to recapture incentive | ||||||
23 | amounts for failure to meet the provisions contained in | ||||||
24 | the agreement; and | ||||||
25 | (11) a provision that the agreement shall not take | ||||||
26 | effect, nor may any funds be expended or transferred under |
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1 | the agreement, if the Department fails to comply with the | ||||||
2 | notification requirements under Section 32 or if the | ||||||
3 | Speaker of the House of Representatives or the Senate | ||||||
4 | President (or their designees, if applicable) submit a | ||||||
5 | letter of rejection under Section 32. | ||||||
6 | (b) Subject to the provisions of Section 32, the | ||||||
7 | Department may issue the incentive to the applicant within the | ||||||
8 | time period the Department deems appropriate in order to | ||||||
9 | ensure that the applicant achieves the performance conditions | ||||||
10 | set forth in the agreement. | ||||||
11 | Section 32. General Assembly notification. The Department | ||||||
12 | shall notify the President of the Senate, or his or her | ||||||
13 | designee, and the Speaker of the House of Representatives, or | ||||||
14 | his or her designee, when awards for the purposes of this Act | ||||||
15 | are nearing final negotiation with an applicant. The | ||||||
16 | notification shall include the prospective amount of the award | ||||||
17 | and other relevant information related to the application. The | ||||||
18 | President of the Senate and the Speaker of the House, or their | ||||||
19 | designees, if applicable, shall certify that they have been | ||||||
20 | notified of the planned awards and that they do not object. If | ||||||
21 | there is no objection certified from the President of the | ||||||
22 | Senate and the Speaker of the House, the Department may enter | ||||||
23 | into an agreement under this Act for the award amount | ||||||
24 | contained in the notification. If the Department enters into | ||||||
25 | an agreement under this Act for an award in an amount that is |
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1 | different than the amount contained in the notification, it | ||||||
2 | shall deliver a copy of the agreement to both the Speaker of | ||||||
3 | the House of Representatives, or his or her designee, and the | ||||||
4 | Senate President, or his or her designee, within 2 days after | ||||||
5 | the agreement is executed. Notwithstanding any other provision | ||||||
6 | of this Act, an agreement entered into under this Act shall not | ||||||
7 | take effect, nor may any funds be expended or transferred | ||||||
8 | under that agreement, if the Speaker of the House of | ||||||
9 | Representatives and the Senate President, or their designees, | ||||||
10 | if applicable, submit a letter to the Department noting an | ||||||
11 | objection to the agreement in writing within 2 days after the | ||||||
12 | notification is delivered to the Speaker of the House of | ||||||
13 | Representatives and the Senate President, or their designees, | ||||||
14 | if applicable. | ||||||
15 | Section 35. Penalties. | ||||||
16 | (a) If the applicant fails to comply with the performance | ||||||
17 | conditions set forth in an agreement entered into under this | ||||||
18 | Act, then the applicant may be required to repay some or all of | ||||||
19 | the grant, loan, or other economic incentive awarded to the | ||||||
20 | applicant, along with any applicable interest to the State at | ||||||
21 | the agreed upon rate and on the agreed terms set forth in the | ||||||
22 | agreement. | ||||||
23 | (b) The Department may also assess specified penalties for | ||||||
24 | noncompliance against the applicant. Those penalties shall be | ||||||
25 | contained in the Agreement. |
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1 | (c) If the applicant fails to comply with the terms of an | ||||||
2 | agreement, then the State may: | ||||||
3 | (1) obtain a lien or other interest in the capital | ||||||
4 | improvements in proportion to the percentage of the | ||||||
5 | incentive amount used to pay for those capital | ||||||
6 | improvements; and | ||||||
7 | (2) require the recipient of the incentive, if the | ||||||
8 | capital improvements are sold, to: | ||||||
9 | (A) repay to the State the funds used to pay for | ||||||
10 | the capital improvement, with interest at the rate and | ||||||
11 | according to the other terms provided by the | ||||||
12 | agreement; and | ||||||
13 | (B) share with the State a proportionate amount of | ||||||
14 | any profit realized from the sale. | ||||||
15 | Section 40. Powers of the Department. The Department, in | ||||||
16 | addition to those powers granted under the Civil | ||||||
17 | Administrative Code of Illinois, is granted and shall have all | ||||||
18 | the powers necessary or convenient to administer the program | ||||||
19 | established under this Act and to carry out and effectuate the | ||||||
20 | purposes and provisions of this Act, including, but not | ||||||
21 | limited to, the power and authority to: | ||||||
22 | (1) adopt emergency and permanent rules deemed | ||||||
23 | necessary and appropriate for the administration of this | ||||||
24 | Act; | ||||||
25 | (2) establish forms for applications, notifications, |
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1 | contracts, or any other agreements and accept applications | ||||||
2 | at any time during the year;
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3 | (3) assist applicants pursuant to the provisions of | ||||||
4 | this Act and cooperate with taxpayers that are parties to | ||||||
5 | agreements under this Act to promote, foster, and support | ||||||
6 | economic development, capital investment, and job creation | ||||||
7 | and retention within the State; | ||||||
8 | (4) establish, negotiate, and effectuate agreements | ||||||
9 | and other documents and terms with any person as necessary | ||||||
10 | or appropriate to accomplish the purposes of this Act and | ||||||
11 | to consent, subject to the provisions of an agreement with | ||||||
12 | another party, to the modification or restructuring of any | ||||||
13 | agreement to which the Department is a party; | ||||||
14 | (5) provide for sufficient personnel to permit | ||||||
15 | administration, staffing, operation, and related support | ||||||
16 | required to adequately discharge its duties and | ||||||
17 | responsibilities described in this Act from funds made | ||||||
18 | available through charges to applicants or from funds as | ||||||
19 | may be appropriated by the General Assembly for the | ||||||
20 | administration of this Act; | ||||||
21 | (6) take whatever actions are necessary or appropriate | ||||||
22 | to protect the State's interest in the event of | ||||||
23 | bankruptcy, default, foreclosure, or noncompliance with | ||||||
24 | the terms and conditions of financial assistance or | ||||||
25 | participation required under this Act, including the power | ||||||
26 | to sell, dispose, lease, or rent, upon terms and |
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1 | conditions determined by the Director to be appropriate, | ||||||
2 | real or personal property that the Department may receive | ||||||
3 | as a result of these actions. | ||||||
4 | Section 45. Annual report. On or before July 1 of each | ||||||
5 | year, the Department shall submit to the General Assembly and | ||||||
6 | the Governor a report on the program established under this | ||||||
7 | Act. The report shall include information on the number of | ||||||
8 | agreements that were entered into under this Act during the | ||||||
9 | preceding calendar year, a description of the project that is | ||||||
10 | the subject of each agreement, an update on the status of | ||||||
11 | projects under agreements entered into before the preceding | ||||||
12 | calendar year, and the amount of funds awarded under this Act. | ||||||
13 | The report must include, for each agreement: | ||||||
14 | (1) the number of new jobs to be created and, if | ||||||
15 | applicable, the number of retained jobs; | ||||||
16 | (2) any relevant modifications to existing agreements; | ||||||
17 | (3) a statement of the progress made by each applicant | ||||||
18 | in meeting the terms of the original agreement; | ||||||
19 | (4) a statement of wages paid to full-time employees | ||||||
20 | and, if applicable, retained employees in the State; and | ||||||
21 | (5) a copy of the original agreement or a link to the | ||||||
22 | agreement on the Department's website. | ||||||
23 | Section 50. Statutory exemptions. Awards of economic | ||||||
24 | incentives made pursuant to this Act are exempt from
the
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1 | Corporate Accountability for Tax Expenditures Act,
the | ||||||
2 | Illinois Works Jobs Program Act, and Section 45 of the State | ||||||
3 | Finance Act, and any rules adopted under those authorities. In | ||||||
4 | addition, non-competitive awards of economic incentives made | ||||||
5 | pursuant to this Act are exempt from the public notice of | ||||||
6 | funding opportunity (NOFO), merit review, audit, and grant | ||||||
7 | payment method provisions of the Grant Accountability and | ||||||
8 | Transparency Act (GATA) and the corresponding GATA rules | ||||||
9 | associated with NOFOs, merit reviews, audits, and grant | ||||||
10 | payment methods. | ||||||
11 | Section 55. Vendor diversity report. Each applicant shall, | ||||||
12 | no later than April 15 of each taxable year for which an | ||||||
13 | agreement under this Act between the applicant and the | ||||||
14 | Department is in effect, report on the diversity of the | ||||||
15 | vendors used by the applicant. The report shall be published | ||||||
16 | on the Department's website and shall include the following | ||||||
17 | information: | ||||||
18 | (1) a point of contact for potential vendors to | ||||||
19 | register with the applicant's project; | ||||||
20 | (2) certifications that the applicant accepts or | ||||||
21 | recognizes for minority-owned businesses and women-owned | ||||||
22 | businesses as entities; | ||||||
23 | (3) the applicant's goals to contract with diverse | ||||||
24 | vendors, if any, for the next fiscal year for the entire | ||||||
25 | budget of the applicant's project; |
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1 | (4) for the last fiscal year, the actual contractual | ||||||
2 | spending for the entire budget of the project and the | ||||||
3 | actual spending for minority-owned businesses and | ||||||
4 | women-owned businesses, expressed as a percentage of the | ||||||
5 | total budget for actual spending for the project; | ||||||
6 | (5) a narrative explaining the results of the report | ||||||
7 | and the applicant's plan to address the voluntary goals | ||||||
8 | for the next fiscal year; and | ||||||
9 | (6) a copy of the applicant's submission of vendor | ||||||
10 | diversity information to the federal government, including | ||||||
11 | but not limited to vendor diversity goals and actual | ||||||
12 | contractual spending for minority-owned businesses and | ||||||
13 | women-owned businesses, if the applicant is a federal | ||||||
14 | contractor and is required by the federal government to | ||||||
15 | submit that information to the federal government. | ||||||
16 | Section 900. The Illinois Administrative Procedure Act is | ||||||
17 | amended by adding Section 5-45.35 as follows: | ||||||
18 | (5 ILCS 100/5-45.35 new) | ||||||
19 | Sec. 5-45.35. Emergency rulemaking. To provide for the | ||||||
20 | expeditious and timely implementation of the Invest in | ||||||
21 | Illinois Act, emergency rules implementing the Invest in | ||||||
22 | Illinois Act may be adopted in accordance with Section 5-45 by | ||||||
23 | the Department of Commerce and Economic Opportunity. The | ||||||
24 | adoption of emergency rules authorized by Section 5-45 and |
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1 | this Section is deemed to be necessary for the public | ||||||
2 | interest, safety, and welfare. | ||||||
3 | This Section is repealed one year after the effective date | ||||||
4 | of this amendatory Act of the 102nd General Assembly. | ||||||
5 | Section 905. The Illinois Enterprise Zone Act is amended | ||||||
6 | by changing Sections 4, 5.5, and 6 as follows:
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7 | (20 ILCS 655/4) (from Ch. 67 1/2, par. 604)
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8 | Sec. 4. Qualifications for enterprise zones. | ||||||
9 | (1) An area is qualified to become an enterprise zone | ||||||
10 | which:
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11 | (a) is a contiguous area, provided that a zone area | ||||||
12 | may exclude wholly
surrounded territory within its | ||||||
13 | boundaries;
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14 | (b) comprises a minimum of one-half square mile and | ||||||
15 | not more than 14 12
square miles, or 20 15 square miles if | ||||||
16 | the zone is located within the
jurisdiction of 4 or more | ||||||
17 | counties or municipalities, in total area,
exclusive of | ||||||
18 | lakes and waterways;
however, in such cases where the | ||||||
19 | enterprise zone is a joint effort of
three or more units of | ||||||
20 | government, or two or more units of government if
situated | ||||||
21 | in a township which is divided by a municipality of | ||||||
22 | 1,000,000 or
more inhabitants, and where the certification | ||||||
23 | has been in
effect at least one year, the total area shall | ||||||
24 | comprise a minimum of
one-half square mile and not more |
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1 | than 16 thirteen square miles in total area
exclusive of | ||||||
2 | lakes and waterways;
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3 | (c) (blank);
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4 | (d) (blank);
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5 | (e) is (1) entirely within a municipality or (2) | ||||||
6 | entirely within
the unincorporated
areas of a county, | ||||||
7 | except where reasonable need is established for such
zone | ||||||
8 | to cover portions of more than one municipality or county | ||||||
9 | or (3)
both comprises (i) all or part of a municipality and | ||||||
10 | (ii) an unincorporated
area of a county; and
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11 | (f) meets 3 or more of the following criteria: | ||||||
12 | (1) all or part of the local labor market area has | ||||||
13 | had an annual average unemployment rate of at least | ||||||
14 | 120% of the State's annual average unemployment rate | ||||||
15 | for the most recent calendar year or the most recent | ||||||
16 | fiscal year as reported by the Department of | ||||||
17 | Employment Security; | ||||||
18 | (2) designation will result in the development of | ||||||
19 | substantial employment opportunities by creating or | ||||||
20 | retaining a minimum aggregate of 1,000 full-time | ||||||
21 | equivalent jobs due to an aggregate investment of | ||||||
22 | $100,000,000 or more, and will help alleviate the | ||||||
23 | effects of poverty and unemployment within the local | ||||||
24 | labor market area; | ||||||
25 | (3) all or part of the local labor market area has | ||||||
26 | a poverty rate of at least 20% according to American |
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1 | Community Survey; 35% or more of families
with | ||||||
2 | children in the area are living below 130% of the
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3 | poverty line, according to the latest American
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4 | Community Survey; or 20% or more households in the | ||||||
5 | local labor market area receive food stamps or | ||||||
6 | assistance
under Supplemental Nutrition Assistance | ||||||
7 | Program
("SNAP") according to the latest American | ||||||
8 | Community
Survey; | ||||||
9 | (4) an abandoned coal mine, a brownfield (as | ||||||
10 | defined in Section 58.2 of the Environmental | ||||||
11 | Protection Act), or an inactive nuclear-powered | ||||||
12 | electrical generation facility where spent nuclear | ||||||
13 | fuel is stored on-site is located in the proposed zone | ||||||
14 | area, or all or a portion of the proposed zone was | ||||||
15 | declared a federal disaster area in the 3 years | ||||||
16 | preceding the date of application; | ||||||
17 | (5) the local labor market area contains a | ||||||
18 | presence of large employers that have downsized over | ||||||
19 | the years, the labor market area has experienced plant | ||||||
20 | closures in the 5 years prior to the date of | ||||||
21 | application affecting more than 50 workers, or the | ||||||
22 | local labor market area has experienced State or | ||||||
23 | federal facility closures in the 5 years prior to the | ||||||
24 | date of application affecting more than 50 workers; | ||||||
25 | (6) based on data from Multiple Listing Service | ||||||
26 | information or other suitable sources, the local labor |
| |||||||
| |||||||
1 | market area contains a high floor vacancy rate of | ||||||
2 | industrial or commercial properties, vacant or | ||||||
3 | demolished commercial and industrial structures are | ||||||
4 | prevalent in the local labor market area, or | ||||||
5 | industrial structures in the local labor market area | ||||||
6 | are not used because of age, deterioration, relocation | ||||||
7 | of the former occupants, or cessation of operation; | ||||||
8 | (7) the applicant demonstrates a substantial plan | ||||||
9 | for using the designation to improve the State and | ||||||
10 | local government tax base, including income, sales, | ||||||
11 | and property taxes, including a plan for disposal of | ||||||
12 | publicly-owned real property by the methods described | ||||||
13 | in Section 10 of this Act; | ||||||
14 | (8) significant public infrastructure is present | ||||||
15 | in the local labor market area in addition to a plan | ||||||
16 | for infrastructure development and improvement; | ||||||
17 | (9) high schools or community colleges located | ||||||
18 | within the local labor market area are engaged in ACT | ||||||
19 | Work Keys, Manufacturing Skills Standard | ||||||
20 | Certification, or other industry-based credentials | ||||||
21 | that prepare students for careers; | ||||||
22 | (10) (blank); or | ||||||
23 | (11) the applicant demonstrates a substantial plan | ||||||
24 | for using the designation to encourage: (i) | ||||||
25 | participation by businesses owned by minorities, | ||||||
26 | women, and persons with disabilities, as those terms |
| |||||||
| |||||||
1 | are defined in the Business Enterprise for Minorities, | ||||||
2 | Women, and Persons with Disabilities Act; and (ii) the | ||||||
3 | hiring of minorities, women, and persons with | ||||||
4 | disabilities. | ||||||
5 | As provided in Section 10-5.3 of the River Edge | ||||||
6 | Redevelopment Zone Act, upon the expiration of the term of | ||||||
7 | each River Edge Redevelopment Zone in existence on August 7, | ||||||
8 | 2012 (the effective date of Public Act 97-905), that River | ||||||
9 | Edge Redevelopment Zone will become available for its previous | ||||||
10 | designee or a new applicant to compete for designation as an | ||||||
11 | enterprise zone. No preference for designation will be given | ||||||
12 | to the previous designee of the zone. | ||||||
13 | (2) Any criteria established by the Department or by law | ||||||
14 | which utilize the rate
of unemployment for a particular area | ||||||
15 | shall provide that all persons who
are not presently employed | ||||||
16 | and have exhausted all unemployment benefits
shall be | ||||||
17 | considered unemployed, whether or not such persons are | ||||||
18 | actively
seeking employment.
| ||||||
19 | (Source: P.A. 101-81, eff. 7-12-19; 102-108, eff. 1-1-22 .)
| ||||||
20 | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| ||||||
21 | Sec. 5.5. High Impact Business.
| ||||||
22 | (a) In order to respond to unique opportunities to assist | ||||||
23 | in the
encouragement, development, growth, and expansion of | ||||||
24 | the private sector through
large scale investment and | ||||||
25 | development projects, the Department is authorized
to receive |
| |||||||
| |||||||
1 | and approve applications for the designation of "High Impact
| ||||||
2 | Businesses" in Illinois , for an initial term of 20 years with | ||||||
3 | an option for renewal for a term not to exceed 20 years, | ||||||
4 | subject to the following conditions:
| ||||||
5 | (1) such applications may be submitted at any time | ||||||
6 | during the year;
| ||||||
7 | (2) such business is not located, at the time of | ||||||
8 | designation, in
an enterprise zone designated pursuant to | ||||||
9 | this Act;
| ||||||
10 | (3) the business intends to do one or more of the | ||||||
11 | following:
| ||||||
12 | (A) the business intends to make a minimum | ||||||
13 | investment of
$12,000,000 which will be placed in | ||||||
14 | service in qualified property and
intends to create | ||||||
15 | 500 full-time equivalent jobs at a designated location
| ||||||
16 | in Illinois or intends to make a minimum investment of | ||||||
17 | $30,000,000 which
will be placed in service in | ||||||
18 | qualified property and intends to retain 1,500
| ||||||
19 | full-time retained jobs at a designated location in | ||||||
20 | Illinois.
The business must certify in writing that | ||||||
21 | the investments would not be
placed in service in | ||||||
22 | qualified property and the job creation or job
| ||||||
23 | retention would not occur without the tax credits and | ||||||
24 | exemptions set forth
in subsection (b) of this | ||||||
25 | Section. The terms "placed in service" and
"qualified | ||||||
26 | property" have the same meanings as described in |
| |||||||
| |||||||
1 | subsection (h)
of Section 201 of the Illinois Income | ||||||
2 | Tax Act; or
| ||||||
3 | (B) the business intends to establish a new | ||||||
4 | electric generating
facility at a designated location | ||||||
5 | in Illinois. "New electric generating
facility", for | ||||||
6 | purposes of this Section, means a newly constructed
| ||||||
7 | electric
generation plant
or a newly constructed | ||||||
8 | generation capacity expansion at an existing electric
| ||||||
9 | generation
plant, including the transmission lines and | ||||||
10 | associated
equipment that transfers electricity from | ||||||
11 | points of supply to points of
delivery, and for which | ||||||
12 | such new foundation construction commenced not sooner
| ||||||
13 | than July 1,
2001. Such facility shall be designed to | ||||||
14 | provide baseload electric
generation and shall operate | ||||||
15 | on a continuous basis throughout the year;
and (i) | ||||||
16 | shall have an aggregate rated generating capacity of | ||||||
17 | at least 1,000
megawatts for all new units at one site | ||||||
18 | if it uses natural gas as its primary
fuel and | ||||||
19 | foundation construction of the facility is commenced | ||||||
20 | on
or before December 31, 2004, or shall have an | ||||||
21 | aggregate rated generating
capacity of at least 400 | ||||||
22 | megawatts for all new units at one site if it uses
coal | ||||||
23 | or gases derived from coal
as its primary fuel and
| ||||||
24 | shall support the creation of at least 150 new | ||||||
25 | Illinois coal mining jobs, or
(ii) shall be funded | ||||||
26 | through a federal Department of Energy grant before |
| |||||||
| |||||||
1 | December 31, 2010 and shall support the creation of | ||||||
2 | Illinois
coal-mining
jobs, or (iii) shall use coal | ||||||
3 | gasification or integrated gasification-combined cycle | ||||||
4 | units
that generate
electricity or chemicals, or both, | ||||||
5 | and shall support the creation of Illinois
coal-mining
| ||||||
6 | jobs.
The
business must certify in writing that the | ||||||
7 | investments necessary to establish
a new electric | ||||||
8 | generating facility would not be placed in service and | ||||||
9 | the
job creation in the case of a coal-fueled plant
| ||||||
10 | would not occur without the tax credits and exemptions | ||||||
11 | set forth in
subsection (b-5) of this Section. The | ||||||
12 | term "placed in service" has
the same meaning as | ||||||
13 | described in subsection
(h) of Section 201 of the | ||||||
14 | Illinois Income Tax Act; or
| ||||||
15 | (B-5) the business intends to establish a new | ||||||
16 | gasification
facility at a designated location in | ||||||
17 | Illinois. As used in this Section, "new gasification | ||||||
18 | facility" means a newly constructed coal gasification | ||||||
19 | facility that generates chemical feedstocks or | ||||||
20 | transportation fuels derived from coal (which may | ||||||
21 | include, but are not limited to, methane, methanol, | ||||||
22 | and nitrogen fertilizer), that supports the creation | ||||||
23 | or retention of Illinois coal-mining jobs, and that | ||||||
24 | qualifies for financial assistance from the Department | ||||||
25 | before December 31, 2010. A new gasification facility | ||||||
26 | does not include a pilot project located within |
| |||||||
| |||||||
1 | Jefferson County or within a county adjacent to | ||||||
2 | Jefferson County for synthetic natural gas from coal; | ||||||
3 | or | ||||||
4 | (C) the business intends to establish
production | ||||||
5 | operations at a new coal mine, re-establish production | ||||||
6 | operations at
a closed coal mine, or expand production | ||||||
7 | at an existing coal mine
at a designated location in | ||||||
8 | Illinois not sooner than July 1, 2001;
provided that | ||||||
9 | the
production operations result in the creation of | ||||||
10 | 150 new Illinois coal mining
jobs as described in | ||||||
11 | subdivision (a)(3)(B) of this Section, and further
| ||||||
12 | provided that the coal extracted from such mine is | ||||||
13 | utilized as the predominant
source for a new electric | ||||||
14 | generating facility.
The business must certify in | ||||||
15 | writing that the
investments necessary to establish a | ||||||
16 | new, expanded, or reopened coal mine would
not
be | ||||||
17 | placed in service and the job creation would not
occur | ||||||
18 | without the tax credits and exemptions set forth in | ||||||
19 | subsection (b-5) of
this Section. The term "placed in | ||||||
20 | service" has
the same meaning as described in | ||||||
21 | subsection (h) of Section 201 of the
Illinois Income | ||||||
22 | Tax Act; or
| ||||||
23 | (D) the business intends to construct new | ||||||
24 | transmission facilities or
upgrade existing | ||||||
25 | transmission facilities at designated locations in | ||||||
26 | Illinois,
for which construction commenced not sooner |
| |||||||
| |||||||
1 | than July 1, 2001. For the
purposes of this Section, | ||||||
2 | "transmission facilities" means transmission lines
| ||||||
3 | with a voltage rating of 115 kilovolts or above, | ||||||
4 | including associated
equipment, that transfer | ||||||
5 | electricity from points of supply to points of
| ||||||
6 | delivery and that transmit a majority of the | ||||||
7 | electricity generated by a new
electric generating | ||||||
8 | facility designated as a High Impact Business in | ||||||
9 | accordance
with this Section. The business must | ||||||
10 | certify in writing that the investments
necessary to | ||||||
11 | construct new transmission facilities or upgrade | ||||||
12 | existing
transmission facilities would not be placed | ||||||
13 | in service
without the tax credits and exemptions set | ||||||
14 | forth in subsection (b-5) of this
Section. The term | ||||||
15 | "placed in service" has the
same meaning as described | ||||||
16 | in subsection (h) of Section 201 of the Illinois
| ||||||
17 | Income Tax Act; or
| ||||||
18 | (E) the business intends to establish a new wind | ||||||
19 | power facility at a designated location in Illinois. | ||||||
20 | For purposes of this Section, "new wind power | ||||||
21 | facility" means a newly constructed electric | ||||||
22 | generation facility, a newly constructed expansion of | ||||||
23 | an existing electric generation facility, or the | ||||||
24 | replacement of an existing electric generation | ||||||
25 | facility, including the demolition and removal of an | ||||||
26 | electric generation facility irrespective of whether |
| |||||||
| |||||||
1 | it will be replaced, placed in service or replaced on | ||||||
2 | or after July 1, 2009, that generates electricity | ||||||
3 | using wind energy devices, and such facility shall be | ||||||
4 | deemed to include any permanent structures associated | ||||||
5 | with the electric generation facility and all | ||||||
6 | associated transmission lines, substations, and other | ||||||
7 | equipment related to the generation of electricity | ||||||
8 | from wind energy devices. For purposes of this | ||||||
9 | Section, "wind energy device" means any device, with a | ||||||
10 | nameplate capacity of at least 0.5 megawatts, that is | ||||||
11 | used in the process of converting kinetic energy from | ||||||
12 | the wind to generate electricity; or | ||||||
13 | (E-5) the business intends to establish a new | ||||||
14 | utility-scale solar facility at a designated location | ||||||
15 | in Illinois. For purposes of this Section, "new | ||||||
16 | utility-scale solar power facility" means a newly | ||||||
17 | constructed electric generation facility, or a newly | ||||||
18 | constructed expansion of an existing electric | ||||||
19 | generation facility, placed in service on or after | ||||||
20 | July 1, 2021, that (i) generates electricity using | ||||||
21 | photovoltaic cells and (ii) has a nameplate capacity | ||||||
22 | that is greater than 5,000 kilowatts, and such | ||||||
23 | facility shall be deemed to include all associated | ||||||
24 | transmission lines, substations, energy storage | ||||||
25 | facilities, and other equipment related to the | ||||||
26 | generation and storage of electricity from |
| |||||||
| |||||||
1 | photovoltaic cells; or | ||||||
2 | (F) the business commits to (i) make a minimum | ||||||
3 | investment of $500,000,000, which will be placed in | ||||||
4 | service in a qualified property, (ii) create 125 | ||||||
5 | full-time equivalent jobs at a designated location in | ||||||
6 | Illinois, (iii) establish a fertilizer plant at a | ||||||
7 | designated location in Illinois that complies with the | ||||||
8 | set-back standards as described in Table 1: Initial | ||||||
9 | Isolation and Protective Action Distances in the 2012 | ||||||
10 | Emergency Response Guidebook published by the United | ||||||
11 | States Department of Transportation, (iv) pay a | ||||||
12 | prevailing wage for employees at that location who are | ||||||
13 | engaged in construction activities, and (v) secure an | ||||||
14 | appropriate level of general liability insurance to | ||||||
15 | protect against catastrophic failure of the fertilizer | ||||||
16 | plant or any of its constituent systems; in addition, | ||||||
17 | the business must agree to enter into a construction | ||||||
18 | project labor agreement including provisions | ||||||
19 | establishing wages, benefits, and other compensation | ||||||
20 | for employees performing work under the project labor | ||||||
21 | agreement at that location; for the purposes of this | ||||||
22 | Section, "fertilizer plant" means a newly constructed | ||||||
23 | or upgraded plant utilizing gas used in the production | ||||||
24 | of anhydrous ammonia and downstream nitrogen | ||||||
25 | fertilizer products for resale; for the purposes of | ||||||
26 | this Section, "prevailing wage" means the hourly cash |
| |||||||
| |||||||
1 | wages plus fringe benefits for training and
| ||||||
2 | apprenticeship programs approved by the U.S. | ||||||
3 | Department of Labor, Bureau of
Apprenticeship and | ||||||
4 | Training, health and welfare, insurance, vacations and
| ||||||
5 | pensions paid generally, in the
locality in which the | ||||||
6 | work is being performed, to employees engaged in
work | ||||||
7 | of a similar character on public works; this paragraph | ||||||
8 | (F) applies only to businesses that submit an | ||||||
9 | application to the Department within 60 days after | ||||||
10 | July 25, 2013 (the effective date of Public Act | ||||||
11 | 98-109); and | ||||||
12 | (4) no later than 90 days after an application is | ||||||
13 | submitted, the
Department shall notify the applicant of | ||||||
14 | the Department's determination of
the qualification of the | ||||||
15 | proposed High Impact Business under this Section.
| ||||||
16 | (b) Businesses designated as High Impact Businesses | ||||||
17 | pursuant to
subdivision (a)(3)(A) of this Section shall | ||||||
18 | qualify for the credits and
exemptions described in the
| ||||||
19 | following Acts: Section 9-222 and Section 9-222.1A of the | ||||||
20 | Public Utilities
Act,
subsection (h)
of Section 201 of the | ||||||
21 | Illinois Income Tax Act,
and Section 1d of
the
Retailers' | ||||||
22 | Occupation Tax Act; provided that these credits and
exemptions
| ||||||
23 | described in these Acts shall not be authorized until the | ||||||
24 | minimum
investments set forth in subdivision (a)(3)(A) of this
| ||||||
25 | Section have been placed in
service in qualified properties | ||||||
26 | and, in the case of the exemptions
described in the Public |
| |||||||
| |||||||
1 | Utilities Act and Section 1d of the Retailers'
Occupation Tax | ||||||
2 | Act, the minimum full-time equivalent jobs or full-time | ||||||
3 | retained jobs set
forth in subdivision (a)(3)(A) of this | ||||||
4 | Section have been
created or retained.
Businesses designated | ||||||
5 | as High Impact Businesses under
this Section shall also
| ||||||
6 | qualify for the exemption described in Section 5l of the | ||||||
7 | Retailers' Occupation
Tax Act. The credit provided in | ||||||
8 | subsection (h) of Section 201 of the Illinois
Income Tax Act | ||||||
9 | shall be applicable to investments in qualified property as | ||||||
10 | set
forth in subdivision (a)(3)(A) of this Section.
| ||||||
11 | (b-5) Businesses designated as High Impact Businesses | ||||||
12 | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | ||||||
13 | and (a)(3)(D) of this Section shall qualify
for the credits | ||||||
14 | and exemptions described in the following Acts: Section 51 of
| ||||||
15 | the Retailers' Occupation Tax Act, Section 9-222 and Section | ||||||
16 | 9-222.1A of the
Public Utilities Act, and subsection (h) of | ||||||
17 | Section 201 of the Illinois Income
Tax Act; however, the | ||||||
18 | credits and exemptions authorized under Section 9-222 and
| ||||||
19 | Section 9-222.1A of the Public Utilities Act, and subsection | ||||||
20 | (h) of Section 201
of the Illinois Income Tax Act shall not be | ||||||
21 | authorized until the new electric
generating facility, the new | ||||||
22 | gasification facility, the new transmission facility, or the | ||||||
23 | new, expanded, or
reopened coal mine is operational,
except | ||||||
24 | that a new electric generating facility whose primary fuel | ||||||
25 | source is
natural gas is eligible only for the exemption under | ||||||
26 | Section 5l of the
Retailers' Occupation Tax Act.
|
| |||||||
| |||||||
1 | (b-6) Businesses designated as High Impact Businesses | ||||||
2 | pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this | ||||||
3 | Section shall qualify for the exemptions described in Section | ||||||
4 | 5l of the Retailers' Occupation Tax Act; any business so | ||||||
5 | designated as a High Impact Business being, for purposes of | ||||||
6 | this Section, a "Wind Energy Business". | ||||||
7 | (b-7) Beginning on January 1, 2021, businesses designated | ||||||
8 | as High Impact Businesses by the Department shall qualify for | ||||||
9 | the High Impact Business construction jobs credit under | ||||||
10 | subsection (h-5) of Section 201 of the Illinois Income Tax Act | ||||||
11 | if the business meets the criteria set forth in subsection (i) | ||||||
12 | of this Section. The total aggregate amount of credits awarded | ||||||
13 | under the Blue Collar Jobs Act (Article 20 of Public Act 101-9) | ||||||
14 | shall not exceed $20,000,000 in any State fiscal year. | ||||||
15 | (c) High Impact Businesses located in federally designated | ||||||
16 | foreign trade
zones or sub-zones are also eligible for | ||||||
17 | additional credits, exemptions and
deductions as described in | ||||||
18 | the following Acts: Section 9-221 and Section
9-222.1 of the | ||||||
19 | Public
Utilities Act; and subsection (g) of Section 201, and | ||||||
20 | Section 203
of the Illinois Income Tax Act.
| ||||||
21 | (d) Except for businesses contemplated under subdivision | ||||||
22 | (a)(3)(E) or (a)(3)(E-5) of this Section, existing Illinois | ||||||
23 | businesses which apply for designation as a
High Impact | ||||||
24 | Business must provide the Department with the prospective plan
| ||||||
25 | for which 1,500 full-time retained jobs would be eliminated in | ||||||
26 | the event that the
business is not designated.
|
| |||||||
| |||||||
1 | (e) Except for new wind power facilities contemplated | ||||||
2 | under subdivision (a)(3)(E) of this Section, new proposed | ||||||
3 | facilities which apply for designation as High Impact
Business | ||||||
4 | must provide the Department with proof of alternative | ||||||
5 | non-Illinois
sites which would receive the proposed investment | ||||||
6 | and job creation in the
event that the business is not | ||||||
7 | designated as a High Impact Business.
| ||||||
8 | (f) Except for businesses contemplated under subdivision | ||||||
9 | (a)(3)(E) of this Section, in the event that a business is | ||||||
10 | designated a High Impact Business
and it is later determined | ||||||
11 | after reasonable notice and an opportunity for a
hearing as | ||||||
12 | provided under the Illinois Administrative Procedure Act, that
| ||||||
13 | the business would have placed in service in qualified | ||||||
14 | property the
investments and created or retained the requisite | ||||||
15 | number of jobs without
the benefits of the High Impact | ||||||
16 | Business designation, the Department shall
be required to | ||||||
17 | immediately revoke the designation and notify the Director
of | ||||||
18 | the Department of Revenue who shall begin proceedings to | ||||||
19 | recover all
wrongfully exempted State taxes with interest. The | ||||||
20 | business shall also be
ineligible for all State funded | ||||||
21 | Department programs for a period of 10 years.
| ||||||
22 | (g) The Department shall revoke a High Impact Business | ||||||
23 | designation if
the participating business fails to comply with | ||||||
24 | the terms and conditions of
the designation.
| ||||||
25 | (h) Prior to designating a business, the Department shall | ||||||
26 | provide the
members of the General Assembly and Commission on |
| |||||||
| |||||||
1 | Government Forecasting and Accountability
with a report | ||||||
2 | setting forth the terms and conditions of the designation and
| ||||||
3 | guarantees that have been received by the Department in | ||||||
4 | relation to the
proposed business being designated.
| ||||||
5 | (i) High Impact Business construction jobs credit. | ||||||
6 | Beginning on January 1, 2021, a High Impact Business may | ||||||
7 | receive a tax credit against the tax imposed under subsections | ||||||
8 | (a) and (b) of Section 201 of the Illinois Income Tax Act in an | ||||||
9 | amount equal to 50% of the amount of the incremental income tax | ||||||
10 | attributable to High Impact Business construction jobs credit | ||||||
11 | employees employed in the course of completing a High Impact | ||||||
12 | Business construction jobs project. However, the High Impact | ||||||
13 | Business construction jobs credit may equal 75% of the amount | ||||||
14 | of the incremental income tax attributable to High Impact | ||||||
15 | Business construction jobs credit employees if the High Impact | ||||||
16 | Business construction jobs credit project is located in an | ||||||
17 | underserved area. | ||||||
18 | The Department shall certify to the Department of Revenue: | ||||||
19 | (1) the identity of taxpayers that are eligible for the High | ||||||
20 | Impact Business construction jobs credit; and (2) the amount | ||||||
21 | of High Impact Business construction jobs credits that are | ||||||
22 | claimed pursuant to subsection (h-5) of Section 201 of the | ||||||
23 | Illinois Income Tax Act in each taxable year. Any business | ||||||
24 | entity that receives a High Impact Business construction jobs | ||||||
25 | credit shall maintain a certified payroll pursuant to | ||||||
26 | subsection (j) of this Section. |
| |||||||
| |||||||
1 | As used in this subsection (i): | ||||||
2 | "High Impact Business construction jobs credit" means an | ||||||
3 | amount equal to 50% (or 75% if the High Impact Business | ||||||
4 | construction project is located in an underserved area) of the | ||||||
5 | incremental income tax attributable to High Impact Business | ||||||
6 | construction job employees. The total aggregate amount of | ||||||
7 | credits awarded under the Blue Collar Jobs Act (Article 20 of | ||||||
8 | Public Act 101-9) shall not exceed $20,000,000 in any State | ||||||
9 | fiscal year | ||||||
10 | "High Impact Business construction job employee" means a | ||||||
11 | laborer or worker who is employed by an Illinois contractor or | ||||||
12 | subcontractor in the actual construction work on the site of a | ||||||
13 | High Impact Business construction job project. | ||||||
14 | "High Impact Business construction jobs project" means | ||||||
15 | building a structure or building or making improvements of any | ||||||
16 | kind to real property, undertaken and commissioned by a | ||||||
17 | business that was designated as a High Impact Business by the | ||||||
18 | Department. The term "High Impact Business construction jobs | ||||||
19 | project" does not include the routine operation, routine | ||||||
20 | repair, or routine maintenance of existing structures, | ||||||
21 | buildings, or real property. | ||||||
22 | "Incremental income tax" means the total amount withheld | ||||||
23 | during the taxable year from the compensation of High Impact | ||||||
24 | Business construction job employees. | ||||||
25 | "Underserved area" means a geographic area that meets one | ||||||
26 | or more of the following conditions: |
| |||||||
| |||||||
1 | (1) the area has a poverty rate of at least 20% | ||||||
2 | according to the latest American Community Survey; | ||||||
3 | (2) 35% or more of the families with children in the | ||||||
4 | area are living below 130% of the poverty line, according | ||||||
5 | to the latest American Community Survey; | ||||||
6 | (3) at least 20% of the households in the area receive | ||||||
7 | assistance under the Supplemental Nutrition Assistance | ||||||
8 | Program (SNAP); or | ||||||
9 | (4) the area has an average unemployment rate, as | ||||||
10 | determined by the Illinois Department of Employment | ||||||
11 | Security, that is more than 120% of the national | ||||||
12 | unemployment average, as determined by the U.S. Department | ||||||
13 | of Labor, for a period of at least 2 consecutive calendar | ||||||
14 | years preceding the date of the application. | ||||||
15 | (j) Each contractor and subcontractor who is engaged in | ||||||
16 | and executing a High Impact Business Construction jobs | ||||||
17 | project, as defined under subsection (i) of this Section, for | ||||||
18 | a business that is entitled to a credit pursuant to subsection | ||||||
19 | (i) of this Section shall: | ||||||
20 | (1) make and keep, for a period of 5 years from the | ||||||
21 | date of the last payment made on or after June 5, 2019 (the | ||||||
22 | effective date of Public Act 101-9) on a contract or | ||||||
23 | subcontract for a High Impact Business Construction Jobs | ||||||
24 | Project, records for all laborers and other workers | ||||||
25 | employed by the contractor or subcontractor on the | ||||||
26 | project; the records shall include: |
| |||||||
| |||||||
1 | (A) the worker's name; | ||||||
2 | (B) the worker's address; | ||||||
3 | (C) the worker's telephone number, if available; | ||||||
4 | (D) the worker's social security number; | ||||||
5 | (E) the worker's classification or | ||||||
6 | classifications; | ||||||
7 | (F) the worker's gross and net wages paid in each | ||||||
8 | pay period; | ||||||
9 | (G) the worker's number of hours worked each day; | ||||||
10 | (H) the worker's starting and ending times of work | ||||||
11 | each day; | ||||||
12 | (I) the worker's hourly wage rate; | ||||||
13 | (J) the worker's hourly overtime wage rate; | ||||||
14 | (K) the worker's race and ethnicity; and | ||||||
15 | (L) the worker's gender; | ||||||
16 | (2) no later than the 15th day of each calendar month, | ||||||
17 | provide a certified payroll for the immediately preceding | ||||||
18 | month to the taxpayer in charge of the High Impact | ||||||
19 | Business construction jobs project; within 5 business days | ||||||
20 | after receiving the certified payroll, the taxpayer shall | ||||||
21 | file the certified payroll with the Department of Labor | ||||||
22 | and the Department of Commerce and Economic Opportunity; a | ||||||
23 | certified payroll must be filed for only those calendar | ||||||
24 | months during which construction on a High Impact Business | ||||||
25 | construction jobs project has occurred; the certified | ||||||
26 | payroll shall consist of a complete copy of the records |
| |||||||
| |||||||
1 | identified in paragraph (1) of this subsection (j), but | ||||||
2 | may exclude the starting and ending times of work each | ||||||
3 | day; the certified payroll shall be accompanied by a | ||||||
4 | statement signed by the contractor or subcontractor or an | ||||||
5 | officer, employee, or agent of the contractor or | ||||||
6 | subcontractor which avers that: | ||||||
7 | (A) he or she has examined the certified payroll | ||||||
8 | records required to be submitted by the Act and such | ||||||
9 | records are true and accurate; and | ||||||
10 | (B) the contractor or subcontractor is aware that | ||||||
11 | filing a certified payroll that he or she knows to be | ||||||
12 | false is a Class A misdemeanor. | ||||||
13 | A general contractor is not prohibited from relying on a | ||||||
14 | certified payroll of a lower-tier subcontractor, provided the | ||||||
15 | general contractor does not knowingly rely upon a | ||||||
16 | subcontractor's false certification. | ||||||
17 | Any contractor or subcontractor subject to this | ||||||
18 | subsection, and any officer, employee, or agent of such | ||||||
19 | contractor or subcontractor whose duty as an officer, | ||||||
20 | employee, or agent it is to file a certified payroll under this | ||||||
21 | subsection, who willfully fails to file such a certified | ||||||
22 | payroll on or before the date such certified payroll is | ||||||
23 | required by this paragraph to be filed and any person who | ||||||
24 | willfully files a false certified payroll that is false as to | ||||||
25 | any material fact is in violation of this Act and guilty of a | ||||||
26 | Class A misdemeanor. |
| |||||||
| |||||||
1 | The taxpayer in charge of the project shall keep the | ||||||
2 | records submitted in accordance with this subsection on or | ||||||
3 | after June 5, 2019 (the effective date of Public Act 101-9) for | ||||||
4 | a period of 5 years from the date of the last payment for work | ||||||
5 | on a contract or subcontract for the High Impact Business | ||||||
6 | construction jobs project. | ||||||
7 | The records submitted in accordance with this subsection | ||||||
8 | shall be considered public records, except an employee's | ||||||
9 | address, telephone number, and social security number, and | ||||||
10 | made available in accordance with the Freedom of Information | ||||||
11 | Act. The Department of Labor shall share the information with | ||||||
12 | the Department in order to comply with the awarding of a High | ||||||
13 | Impact Business construction jobs credit. A contractor, | ||||||
14 | subcontractor, or public body may retain records required | ||||||
15 | under this Section in paper or electronic format. | ||||||
16 | (k) Upon 7 business days' notice, each contractor and | ||||||
17 | subcontractor shall make available for inspection and copying | ||||||
18 | at a location within this State during reasonable hours, the | ||||||
19 | records identified in this subsection (j) to the taxpayer in | ||||||
20 | charge of the High Impact Business construction jobs project, | ||||||
21 | its officers and agents, the Director of the Department of | ||||||
22 | Labor and his or her deputies and agents, and to federal, | ||||||
23 | State, or local law enforcement agencies and prosecutors. | ||||||
24 | (l) The changes made to this Section by this amendatory | ||||||
25 | Act of the 102nd General Assembly, other than the changes in | ||||||
26 | subsection (a), apply to high impact businesses that submit |
| |||||||
| |||||||
1 | applications on or after the effective date of this amendatory | ||||||
2 | Act of the 102nd General Assembly. | ||||||
3 | (Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22; | ||||||
4 | 102-558, eff. 8-20-21; 102-605, eff. 8-27-21; 102-662, eff. | ||||||
5 | 9-15-21; 102-673, eff. 11-30-21; 102-813, eff. 5-13-22.)
| ||||||
6 | (20 ILCS 655/6) (from Ch. 67 1/2, par. 610)
| ||||||
7 | Sec. 6. Powers and Duties of Department.
| ||||||
8 | (A) General Powers. The Department shall administer this | ||||||
9 | Act and shall
have the following powers and duties:
| ||||||
10 | (1) To monitor the implementation of this Act and | ||||||
11 | submit reports
evaluating
the effectiveness of the program | ||||||
12 | and any suggestions for legislation to
the Governor and | ||||||
13 | General Assembly by October 1 of every year preceding a
| ||||||
14 | regular Session of the General Assembly and to annually | ||||||
15 | report to the General
Assembly initial and current | ||||||
16 | population, employment, per capita income,
number of | ||||||
17 | business establishments, dollar value of new construction | ||||||
18 | and
improvements, and the aggregate value of each tax | ||||||
19 | incentive, based on information provided by the Department | ||||||
20 | of Revenue, for each Enterprise Zone.
| ||||||
21 | (2) To promulgate all necessary rules and regulations | ||||||
22 | to carry out the
purposes of this Act in accordance with | ||||||
23 | The Illinois Administrative Procedure
Act.
| ||||||
24 | (3) To assist municipalities and counties in obtaining | ||||||
25 | Federal status
as an Enterprise Zone.
|
| |||||||
| |||||||
1 | (4) To determine the conditions and processes for | ||||||
2 | renewal of high impact business designations, and any | ||||||
3 | incentives associated with that designation, awarded under | ||||||
4 | this Act in accordance with Section 5.5 of this Act. | ||||||
5 | (B) Specific Duties:
| ||||||
6 | (1) The Department shall provide information and | ||||||
7 | appropriate assistance
to persons desiring to locate and | ||||||
8 | engage in business in an enterprise zone,
to persons | ||||||
9 | engaged in business in an enterprise zone and to | ||||||
10 | designated zone
organizations operating there.
| ||||||
11 | (2) The Department shall, in cooperation with | ||||||
12 | appropriate units of local
government and State agencies, | ||||||
13 | coordinate and streamline existing State
business | ||||||
14 | assistance programs and permit and license application | ||||||
15 | procedures
for Enterprise Zone businesses.
| ||||||
16 | (3) The Department shall publicize existing tax | ||||||
17 | incentives and economic
development programs within the | ||||||
18 | Zone and upon request, offer technical
assistance
in | ||||||
19 | abatement and alternative revenue source development to | ||||||
20 | local units of
government which have enterprise Zones | ||||||
21 | within their jurisdiction.
| ||||||
22 | (4) The Department shall work together with the | ||||||
23 | responsible State and
Federal agencies to promote the | ||||||
24 | coordination of other relevant programs,
including but not | ||||||
25 | limited to housing, community and economic development,
| ||||||
26 | small business, banking, financial assistance, and |
| |||||||
| |||||||
1 | employment training programs
which are carried on in an | ||||||
2 | Enterprise Zone.
| ||||||
3 | (5) In order to stimulate employment opportunities for | ||||||
4 | Zone residents,
the Department, in cooperation with the | ||||||
5 | Department of Human Services and the
Department of | ||||||
6 | Employment Security, is to initiate a test of
the | ||||||
7 | following 2 programs within
the 12 month period following | ||||||
8 | designation and approval by the Department
of the first | ||||||
9 | enterprise zones: (i) the use of aid to families with | ||||||
10 | dependent
children benefits payable under Article IV of | ||||||
11 | the Illinois Public Aid Code,
General Assistance benefits | ||||||
12 | payable under Article VI of the Illinois Public
Aid Code,
| ||||||
13 | the unemployment insurance benefits payable under the | ||||||
14 | Unemployment Insurance
Act as training or employment | ||||||
15 | subsidies leading to unsubsidized employment;
and (ii) a | ||||||
16 | program for voucher reimbursement of the cost of training | ||||||
17 | zone
residents eligible under the Targeted Jobs Tax Credit | ||||||
18 | provisions of the
Internal Revenue Code for employment in | ||||||
19 | private industry. These programs
shall not be designed to | ||||||
20 | subsidize businesses, but are intended to open
up job and | ||||||
21 | training opportunities not otherwise available. Nothing in | ||||||
22 | this
paragraph (5) shall be deemed to require zone | ||||||
23 | businesses to utilize these
programs. These programs | ||||||
24 | should be designed (i) for those individuals whose
| ||||||
25 | opportunities for job-finding are minimal without program | ||||||
26 | participation,
(ii) to minimize the period of benefit |
| |||||||
| |||||||
1 | collection by such individuals, and
(iii) to accelerate | ||||||
2 | the transition of those individuals to unsubsidized
| ||||||
3 | employment. The Department is to seek agreement with | ||||||
4 | business, organized
labor and the appropriate State | ||||||
5 | Department and agencies on the design,
operation and | ||||||
6 | evaluation of the test programs.
| ||||||
7 | A report with recommendations including representative | ||||||
8 | comments of these
groups shall be submitted by the Department | ||||||
9 | to the county or municipality
which designated the area as an | ||||||
10 | Enterprise Zone, Governor and General Assembly
not later than | ||||||
11 | 12 months after such test programs have commenced, or not
| ||||||
12 | later than 3 months following the termination of such test | ||||||
13 | programs, whichever
first occurs.
| ||||||
14 | (Source: P.A. 97-905, eff. 8-7-12.)
| ||||||
15 | Section 910. The Reimagining Electric Vehicles in Illinois | ||||||
16 | Act is amended by changing Sections 1, 5, 10, 20, 30, 40, and | ||||||
17 | 45 as follows: | ||||||
18 | (20 ILCS 686/1)
| ||||||
19 | Sec. 1. Short title. This Act may be cited as the | ||||||
20 | Reimagining Energy and Electric Vehicles in Illinois Act.
| ||||||
21 | (Source: P.A. 102-669, eff. 11-16-21.) | ||||||
22 | (20 ILCS 686/5)
| ||||||
23 | Sec. 5. Purpose. It is the intent of the General Assembly |
| |||||||
| |||||||
1 | that Illinois should lead the nation in the production of | ||||||
2 | electric vehicles and other products essential to the growth | ||||||
3 | of the renewable energy sector . The General Assembly finds | ||||||
4 | that, through investments in electric vehicle manufacturing | ||||||
5 | and renewable energy manufacturing , Illinois will be on the | ||||||
6 | forefront of emerging technologies that are currently | ||||||
7 | transforming those industries the auto manufacturing industry . | ||||||
8 | This Act will reduce carbon emissions, create good paying | ||||||
9 | jobs, and generate long-term economic investment in the | ||||||
10 | Illinois business economy. Illinois must aggressively adopt | ||||||
11 | new business development investment tools so that Illinois is | ||||||
12 | more competitive in site location decision-making for | ||||||
13 | manufacturing facilities directly related to the electric | ||||||
14 | vehicle and renewable energy industry. Illinois' long-term | ||||||
15 | development benefits from rational, strategic use of State | ||||||
16 | resources in support of development and growth in the electric | ||||||
17 | vehicle and renewable energy industry. | ||||||
18 | The General Assembly finds that workers are essential to | ||||||
19 | the prosperity of our State's economy and play a critical role | ||||||
20 | in Illinois becoming leader in manufacturing. The General | ||||||
21 | Assembly further finds that, for the prosperity of our State, | ||||||
22 | workers in this industry must be afforded high quality jobs | ||||||
23 | that honor the dignity of work. Therefore, the General | ||||||
24 | Assembly finds that it is in the best interest of Illinois to | ||||||
25 | protect the work conditions, worker safety, and worker rights | ||||||
26 | in the manufacturing industry and further finds that employer |
| |||||||
| |||||||
1 | workplace policies shall be interpreted broadly to protect | ||||||
2 | employees.
| ||||||
3 | (Source: P.A. 102-669, eff. 11-16-21.) | ||||||
4 | (20 ILCS 686/10)
| ||||||
5 | Sec. 10. Definitions. As used in this Act: | ||||||
6 | "Advanced battery" means a battery that consists of a | ||||||
7 | battery cell that can be integrated into a module, pack, or | ||||||
8 | system to be used in energy storage applications, including a | ||||||
9 | battery used in an electric vehicle or the electric grid. | ||||||
10 | "Advanced battery component" means a component of an | ||||||
11 | advanced battery, including materials, enhancements, | ||||||
12 | enclosures, anodes, cathodes, electrolytes, cells, and other | ||||||
13 | associated technologies that comprise an advanced battery. | ||||||
14 | "Agreement" means the agreement between a taxpayer and the | ||||||
15 | Department under the provisions of Section 45 of this Act. | ||||||
16 | "Applicant" means a taxpayer that (i) operates a business | ||||||
17 | in Illinois or is planning to locate a business within the | ||||||
18 | State of Illinois and (ii) is engaged in interstate or | ||||||
19 | intrastate commerce as an for the purpose of manufacturing | ||||||
20 | electric vehicle manufacturer vehicles , an electric vehicle | ||||||
21 | component parts manufacturer , or an electric vehicle power | ||||||
22 | supply equipment manufacturer . For applications for credits | ||||||
23 | under this Act that are submitted on or after the effective | ||||||
24 | date of this amendatory Act of the 102nd General Assembly, | ||||||
25 | "applicant" also includes a taxpayer that (i) operates a |
| |||||||
| |||||||
1 | business in Illinois or is planning to locate a business | ||||||
2 | within the State of Illinois and (ii) is engaged in interstate | ||||||
3 | or intrastate commerce as a renewable energy manufacturer. | ||||||
4 | "Applicant" does not include a taxpayer who closes or | ||||||
5 | substantially reduces by more than 50% operations at one | ||||||
6 | location in the State and relocates substantially the same | ||||||
7 | operation to another location in the State. This does not | ||||||
8 | prohibit a Taxpayer from expanding its operations at another | ||||||
9 | location in the State. This also does not prohibit a Taxpayer | ||||||
10 | from moving its operations from one location in the State to | ||||||
11 | another location in the State for the purpose of expanding the | ||||||
12 | operation, provided that the Department determines that | ||||||
13 | expansion cannot reasonably be accommodated within the | ||||||
14 | municipality or county in which the business is located, or, | ||||||
15 | in the case of a business located in an incorporated area of | ||||||
16 | the county, within the county in which the business is | ||||||
17 | located, after conferring with the chief elected official of | ||||||
18 | the municipality or county and taking into consideration any | ||||||
19 | evidence offered by the municipality or county regarding the | ||||||
20 | ability to accommodate expansion within the municipality or | ||||||
21 | county. | ||||||
22 | "Battery raw materials" means the raw and processed form | ||||||
23 | of a mineral, metal, chemical, or other material used in an | ||||||
24 | advanced battery component. | ||||||
25 | "Battery raw materials refining service provider" means a | ||||||
26 | business that operates a facility that filters, sifts, and |
| |||||||
| |||||||
1 | treats battery raw materials for use in an advanced battery. | ||||||
2 | "Battery recycling and reuse manufacturer" means a | ||||||
3 | manufacturer that is primarily engaged in the recovery, | ||||||
4 | retrieval, processing, recycling, or recirculating of battery | ||||||
5 | raw materials for new use in electric vehicle batteries. | ||||||
6 | "Capital improvements" means the purchase, renovation, | ||||||
7 | rehabilitation, or construction of permanent tangible land, | ||||||
8 | buildings, structures, equipment, and furnishings in an | ||||||
9 | approved project sited in Illinois and expenditures for goods | ||||||
10 | or services that are normally capitalized, including | ||||||
11 | organizational costs and research and development costs | ||||||
12 | incurred in Illinois. For land, buildings, structures, and | ||||||
13 | equipment that are leased, the lease must equal or exceed the | ||||||
14 | term of the agreement, and the cost of the property shall be | ||||||
15 | determined from the present value, using the corporate | ||||||
16 | interest rate prevailing at the time of the application, of | ||||||
17 | the lease payments. | ||||||
18 | "Credit" means either a "REV Illinois Credit" or a "REV | ||||||
19 | Construction Jobs Credit" agreed to between the Department and | ||||||
20 | applicant under this Act. | ||||||
21 | "Department" means the Department of Commerce and Economic | ||||||
22 | Opportunity. | ||||||
23 | "Director" means the Director of Commerce and Economic | ||||||
24 | Opportunity. | ||||||
25 | "Electric vehicle" means a vehicle that is exclusively | ||||||
26 | powered by and refueled by electricity, including electricity |
| |||||||
| |||||||
1 | generated through a hydrogen fuel cells or solar technology. | ||||||
2 | "Electric vehicle" does not include hybrid electric vehicles, | ||||||
3 | electric bicycles, or extended-range electric vehicles that | ||||||
4 | are also equipped with conventional fueled propulsion or | ||||||
5 | auxiliary engines. | ||||||
6 | "Electric vehicle manufacturer" means a new or existing | ||||||
7 | manufacturer that is primarily focused on reequipping, | ||||||
8 | expanding, or establishing a manufacturing facility in | ||||||
9 | Illinois that produces electric vehicles as defined in this | ||||||
10 | Section. | ||||||
11 | "Electric vehicle component parts manufacturer" means a | ||||||
12 | new or existing manufacturer that is focused on reequipping, | ||||||
13 | expanding, or establishing a manufacturing facility in | ||||||
14 | Illinois that produces parts or accessories used
in electric | ||||||
15 | vehicles, as defined by this Section, including
advanced | ||||||
16 | battery component parts. The changes to this
definition of | ||||||
17 | "electric vehicle component parts manufacturer"
apply to | ||||||
18 | agreements under this Act that are entered into on or
after the | ||||||
19 | effective date of this amendatory Act of the 102nd
General | ||||||
20 | Assembly. | ||||||
21 | "Electric vehicle power supply equipment" means the | ||||||
22 | equipment used specifically for the purpose of delivering | ||||||
23 | electricity to an electric vehicle, including hydrogen fuel | ||||||
24 | cells or solar refueling infrastructure. | ||||||
25 | "Electric vehicle power supply manufacturer" means a new | ||||||
26 | or existing manufacturer that is focused on reequipping, |
| |||||||
| |||||||
1 | expanding, or establishing a manufacturing facility in | ||||||
2 | Illinois that produces electric vehicle power supply equipment | ||||||
3 | used for the purpose of delivering electricity to an electric | ||||||
4 | vehicle, including hydrogen fuel cell or solar refueling | ||||||
5 | infrastructure. | ||||||
6 | "Energy Transition Area" means a county with less than | ||||||
7 | 100,000 people or a municipality that contains one or more of | ||||||
8 | the following: | ||||||
9 | (1) a fossil fuel plant that was retired from service | ||||||
10 | or has significant reduced service within 6 years before | ||||||
11 | the time of the application or will be retired or have | ||||||
12 | service significantly reduced within 6 years following the | ||||||
13 | time of the application; or | ||||||
14 | (2) a coal mine that was closed or had operations | ||||||
15 | significantly reduced within 6 years before the time of | ||||||
16 | the application or is anticipated to be closed or have | ||||||
17 | operations significantly reduced within 6 years following | ||||||
18 | the time of the application. | ||||||
19 | "Full-time employee" means an individual who is employed | ||||||
20 | for consideration for at least 35 hours each week or who | ||||||
21 | renders any other standard of service generally accepted by | ||||||
22 | industry custom or practice as full-time employment. An | ||||||
23 | individual for whom a W-2 is issued by a Professional Employer | ||||||
24 | Organization (PEO) is a full-time employee if employed in the | ||||||
25 | service of the applicant for consideration for at least 35 | ||||||
26 | hours each week. |
| |||||||
| |||||||
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. | ||||||
6 | "Institution of higher education" or "institution" means | ||||||
7 | any accredited public or private university, college, | ||||||
8 | community college, business, technical, or vocational school, | ||||||
9 | or other accredited educational institution offering degrees | ||||||
10 | and instruction beyond the secondary school level. | ||||||
11 | "Minority person" means a minority person as defined in | ||||||
12 | the Business Enterprise for Minorities, Women, and Persons | ||||||
13 | with Disabilities Act. | ||||||
14 | "New employee" means a newly-hired full-time employee | ||||||
15 | employed to work at the project site and whose work is directly | ||||||
16 | related to the project. | ||||||
17 | "Noncompliance date" means, in the case of a taxpayer that | ||||||
18 | is not complying with the requirements of the agreement or the | ||||||
19 | provisions of this Act, the day following the last date upon | ||||||
20 | which the taxpayer was in compliance with the requirements of | ||||||
21 | the agreement and the provisions of this Act, as determined by | ||||||
22 | the Director, pursuant to Section 70. | ||||||
23 | "Pass-through entity" means an entity that is exempt from | ||||||
24 | the tax under subsection (b) or (c) of Section 205 of the | ||||||
25 | Illinois Income Tax Act. | ||||||
26 | "Placed in service" means the state or condition of |
| |||||||
| |||||||
1 | readiness, availability for a specifically assigned function, | ||||||
2 | and the facility is constructed and ready to conduct its | ||||||
3 | facility operations to manufacture goods. | ||||||
4 | "Professional employer organization" (PEO) means an | ||||||
5 | employee leasing company, as defined in Section 206.1 of the | ||||||
6 | Illinois Unemployment Insurance Act. | ||||||
7 | "Program" means the Reimagining Energy and Electric | ||||||
8 | Vehicles in Illinois Program (the REV Illinois Program) | ||||||
9 | established in this Act. | ||||||
10 | "Project" or "REV Illinois Project" means a for-profit | ||||||
11 | economic development activity for the manufacture of electric | ||||||
12 | vehicles, electric vehicle component parts, or electric | ||||||
13 | vehicle power supply equipment , or renewable energy products, | ||||||
14 | which is designated by the Department as a REV Illinois | ||||||
15 | Project and is the subject of an agreement. | ||||||
16 | "Recycling facility" means a location at which the | ||||||
17 | taxpayer disposes of batteries and other component parts in | ||||||
18 | manufacturing of electric vehicles, electric vehicle component | ||||||
19 | parts, or electric vehicle power supply equipment. | ||||||
20 | "Related member" means a person that, with respect to the | ||||||
21 | taxpayer during any portion of the taxable year, is any one of | ||||||
22 | the following: | ||||||
23 | (1) An individual stockholder, if the stockholder and | ||||||
24 | the members of the stockholder's family (as defined in | ||||||
25 | Section 318 of the Internal Revenue Code) own directly, | ||||||
26 | indirectly, beneficially, or constructively, in the |
| |||||||
| |||||||
1 | aggregate, at least 50% of the value of the taxpayer's | ||||||
2 | outstanding stock. | ||||||
3 | (2) A partnership, estate, trust and any partner or | ||||||
4 | beneficiary, if the partnership, estate, or trust, and its | ||||||
5 | partners or beneficiaries own directly, indirectly, | ||||||
6 | beneficially, or constructively, in the aggregate, at | ||||||
7 | least 50% of the profits, capital, stock, or value of the | ||||||
8 | taxpayer. | ||||||
9 | (3) A corporation, and any party related to the | ||||||
10 | corporation in a manner that would require an attribution | ||||||
11 | of stock from the corporation under the attribution rules | ||||||
12 | of Section 318 of the Internal Revenue Code, if the | ||||||
13 | Taxpayer owns directly, indirectly, beneficially, or | ||||||
14 | constructively at least 50% of the value of the | ||||||
15 | corporation's outstanding stock. | ||||||
16 | (4) A corporation and any party related to that | ||||||
17 | corporation in a manner that would require an attribution | ||||||
18 | of stock from the corporation to the party or from the | ||||||
19 | party to the corporation under the attribution rules of | ||||||
20 | Section 318 of the Internal Revenue Code, if the | ||||||
21 | corporation and all such related parties own in the | ||||||
22 | aggregate at least 50% of the profits, capital, stock, or | ||||||
23 | value of the taxpayer. | ||||||
24 | (5) A person to or from whom there is an attribution of | ||||||
25 | stock ownership in accordance with Section 1563(e) of the | ||||||
26 | Internal Revenue Code, except, for purposes of determining |
| |||||||
| |||||||
1 | whether a person is a related member under this paragraph, | ||||||
2 | 20% shall be substituted for 5% wherever 5% appears in | ||||||
3 | Section 1563(e) of the Internal Revenue Code. | ||||||
4 | "Renewable energy" means energy produced using the | ||||||
5 | materials and sources of energy through which renewable energy | ||||||
6 | resources are generated. | ||||||
7 | "Renewable energy manufacturer" means a manufacturer whose | ||||||
8 | primary function is to manufacture or assemble: (i) equipment, | ||||||
9 | systems, or products used to produce renewable or nuclear | ||||||
10 | energy; (ii) products used for energy conservation, storage, | ||||||
11 | or grid efficiency purposes; or (iii) component parts for that | ||||||
12 | equipment or those systems or products. | ||||||
13 | "Renewable energy resources" has the meaning ascribed to | ||||||
14 | that term in Section 1-10 of the Illinois Power Agency Act. | ||||||
15 | "Retained employee" means a full-time employee employed by | ||||||
16 | the taxpayer prior to the term of the Agreement who continues | ||||||
17 | to be employed during the term of the agreement whose job | ||||||
18 | duties are directly related to the project. The term "retained | ||||||
19 | employee" does not include any individual who has a direct or | ||||||
20 | an indirect ownership interest of at least 5% in the profits, | ||||||
21 | equity, capital, or value of the taxpayer or a child, | ||||||
22 | grandchild, parent, or spouse, other than a spouse who is | ||||||
23 | legally separated from the individual, of any individual who | ||||||
24 | has a direct or indirect ownership of at least 5% in the | ||||||
25 | profits, equity, capital, or value of the taxpayer. The | ||||||
26 | changes to this
definition of "retained employee" apply to |
| |||||||
| |||||||
1 | agreements for
credits under this Act that are entered into on | ||||||
2 | or after the
effective date of this amendatory Act of the 102nd | ||||||
3 | General
Assembly. | ||||||
4 | "REV Illinois credit" means a credit agreed to between the | ||||||
5 | Department and the applicant under this Act that is based on | ||||||
6 | the incremental income tax attributable to new employees and, | ||||||
7 | if applicable, retained employees, and on training costs for | ||||||
8 | such employees at the applicant's project. | ||||||
9 | "REV construction jobs credit" means a credit agreed to | ||||||
10 | between the Department and the applicant under this Act that | ||||||
11 | is based on the incremental income tax attributable to | ||||||
12 | construction wages paid in connection with construction of the | ||||||
13 | project facilities. | ||||||
14 | "Statewide baseline" means the total number of full-time | ||||||
15 | employees of the applicant and any related member employed by | ||||||
16 | such entities at the time of application for incentives under | ||||||
17 | this Act. | ||||||
18 | "Taxpayer" means an individual, corporation, partnership, | ||||||
19 | or other entity that has a legal obligation to pay Illinois | ||||||
20 | income taxes and file an Illinois income tax return. | ||||||
21 | "Training costs" means costs incurred to upgrade the | ||||||
22 | technological skills of full-time employees in Illinois and | ||||||
23 | includes: curriculum development; training materials | ||||||
24 | (including scrap product costs); trainee domestic travel | ||||||
25 | expenses; instructor costs (including wages, fringe benefits, | ||||||
26 | tuition and domestic travel expenses); rent, purchase or lease |
| |||||||
| |||||||
1 | of training equipment; and other usual and customary training | ||||||
2 | costs. "Training costs" do not include costs associated with | ||||||
3 | travel outside the United States (unless the Taxpayer receives | ||||||
4 | prior written approval for the travel by the Director based on | ||||||
5 | a showing of substantial need or other proof the training is | ||||||
6 | not reasonably available within the United States), wages and | ||||||
7 | fringe benefits of employees during periods of training, or | ||||||
8 | administrative cost related to full-time employees of the | ||||||
9 | taxpayer. | ||||||
10 | "Underserved area" means any geographic areas as defined | ||||||
11 | in Section 5-5 of the Economic Development for a Growing | ||||||
12 | Economy Tax Credit Act.
| ||||||
13 | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; | ||||||
14 | 102-1112, eff. 12-21-22.) | ||||||
15 | (20 ILCS 686/20)
| ||||||
16 | Sec. 20. REV Illinois Program; project applications. | ||||||
17 | (a) The Reimagining Energy and Electric Vehicles in | ||||||
18 | Illinois (REV Illinois) Program is hereby established and | ||||||
19 | shall be administered by the Department. The Program will | ||||||
20 | provide financial incentives to any one or more of the | ||||||
21 | following: (1) eligible manufacturers of electric vehicles, | ||||||
22 | electric vehicle component parts, and electric vehicle power | ||||||
23 | supply equipment; (2) battery recycling and reuse | ||||||
24 | manufacturers; or (3) battery raw materials refining service | ||||||
25 | providers ; or (4) renewable energy manufacturers . |
| |||||||
| |||||||
1 | (b) Any taxpayer planning a project to be located in | ||||||
2 | Illinois may request consideration for designation of its | ||||||
3 | project as a REV Illinois Project, by formal written letter of | ||||||
4 | request or by formal application to the Department, in which | ||||||
5 | the applicant states its intent to make at least a specified | ||||||
6 | level of investment and intends to hire a specified number of | ||||||
7 | full-time employees at a designated location in Illinois. As | ||||||
8 | circumstances require, the Department shall require a formal | ||||||
9 | application from an applicant and a formal letter of request | ||||||
10 | for assistance. | ||||||
11 | (c) In order to qualify for credits under the REV Illinois | ||||||
12 | Program, an applicant must: | ||||||
13 | (1) if the applicant is for an electric vehicle | ||||||
14 | manufacturer: | ||||||
15 | (A) make an investment of at least $1,500,000,000 | ||||||
16 | in capital improvements at the project site; | ||||||
17 | (B) to be placed in service within the State | ||||||
18 | within a 60-month period after approval of the | ||||||
19 | application; and | ||||||
20 | (C) create at least 500 new full-time employee | ||||||
21 | jobs; or | ||||||
22 | (2) if the applicant is for an electric vehicle | ||||||
23 | component parts manufacturer or a renewable energy
| ||||||
24 | manufacturer : | ||||||
25 | (A) make an investment of at least $300,000,000 in | ||||||
26 | capital improvements at the project site; |
| |||||||
| |||||||
1 | (B) manufacture one or more parts that are | ||||||
2 | primarily used for electric vehicle manufacturing; | ||||||
3 | (C) to be placed in service within the State | ||||||
4 | within a 60-month period after approval of the | ||||||
5 | application; and | ||||||
6 | (D) create at least 150 new full-time employee | ||||||
7 | jobs; or | ||||||
8 | (3) if the agreement is entered into before the
| ||||||
9 | effective date of this amendatory Act of the 102nd General
| ||||||
10 | Assembly and the applicant is for an electric vehicle | ||||||
11 | manufacturer, an electric vehicle power supply equipment | ||||||
12 | manufacturer, an electric vehicle component part | ||||||
13 | manufacturer that does not qualify under paragraph (2) | ||||||
14 | above, a battery recycling and reuse manufacturer, or a | ||||||
15 | battery raw materials refining service provider: | ||||||
16 | (A) make an investment of at least $20,000,000 in | ||||||
17 | capital improvements at the project site; | ||||||
18 | (B) for electric vehicle component part | ||||||
19 | manufacturers, manufacture one or more parts that are | ||||||
20 | primarily used for electric vehicle manufacturing; | ||||||
21 | (C) to be placed in service within the State | ||||||
22 | within a 48-month period after approval of the | ||||||
23 | application; and | ||||||
24 | (D) create at least 50 new full-time employee | ||||||
25 | jobs; or | ||||||
26 | (3.1) if the agreement is entered into on or after the |
| |||||||
| |||||||
1 | effective date of this amendatory Act of the 102nd General | ||||||
2 | Assembly and the applicant is an electric vehicle | ||||||
3 | manufacturer, an electric vehicle power supply equipment | ||||||
4 | manufacturer, an electric vehicle component part | ||||||
5 | manufacturer that does not qualify under paragraph (2) | ||||||
6 | above, a renewable energy manufacturer that does not | ||||||
7 | qualify under paragraph (2) above, a battery recycling and | ||||||
8 | reuse manufacturer, or a battery raw materials refining | ||||||
9 | service provider: | ||||||
10 | (A) make an investment of at least $2,500,000 in | ||||||
11 | capital improvements at the project site; | ||||||
12 | (B) in the case of electric vehicle component part | ||||||
13 | manufacturers, manufacture one or more parts that are | ||||||
14 | used for electric vehicle manufacturing; | ||||||
15 | (C) to be placed in service within the State | ||||||
16 | within a 48-month period after approval of the | ||||||
17 | application; and | ||||||
18 | (D) create the lesser of 50 new full-time employee | ||||||
19 | jobs or new full-time employee jobs equivalent to 10% | ||||||
20 | of the Statewide baseline applicable to the taxpayer | ||||||
21 | and any related member at the time of application; or | ||||||
22 | (4) if the agreement is entered into before the
| ||||||
23 | effective date of this amendatory Act of the 102nd General
| ||||||
24 | Assembly and the applicant is for an electric vehicle | ||||||
25 | manufacturer or electric vehicle component parts | ||||||
26 | manufacturer with existing operations within Illinois that |
| |||||||
| |||||||
1 | intends to convert or expand, in whole or in part, the | ||||||
2 | existing facility from traditional manufacturing to | ||||||
3 | primarily electric vehicle manufacturing, electric vehicle | ||||||
4 | component parts manufacturing, or electric vehicle power | ||||||
5 | supply equipment manufacturing: | ||||||
6 | (A) make an investment of at least $100,000,000 in | ||||||
7 | capital improvements at the project site; | ||||||
8 | (B) to be placed in service within the State | ||||||
9 | within a 60-month period after approval of the | ||||||
10 | application; and | ||||||
11 | (C) create the lesser of 75 new full-time employee | ||||||
12 | jobs or new full-time employee jobs equivalent to 10% | ||||||
13 | of the Statewide baseline applicable to the taxpayer | ||||||
14 | and any related member at the time of application ; or . | ||||||
15 | (4.1) if the agreement is entered into on or after the | ||||||
16 | effective date of this amendatory Act of the 102nd General | ||||||
17 | Assembly and the applicant (i) is an electric vehicle | ||||||
18 | manufacturer, an electric vehicle component parts | ||||||
19 | manufacturer, or a renewable energy manufacturer and (ii) | ||||||
20 | has existing operations within Illinois that the applicant | ||||||
21 | intends to convert or expand, in whole or in part, from | ||||||
22 | traditional manufacturing to electric vehicle | ||||||
23 | manufacturing, electric vehicle component parts | ||||||
24 | manufacturing, renewable energy manufacturing, or electric | ||||||
25 | vehicle power supply equipment manufacturing: | ||||||
26 | (A) make an investment of at least $100,000,000 in |
| |||||||
| |||||||
1 | capital improvements at the project site; | ||||||
2 | (B) to be placed in service within the State | ||||||
3 | within a 60-month period after approval of the | ||||||
4 | application; and | ||||||
5 | (C) create the lesser of 50 new full-time employee | ||||||
6 | jobs or new full-time employee jobs equivalent to 10% | ||||||
7 | of the Statewide baseline applicable to the taxpayer | ||||||
8 | and any related member at the time of application. | ||||||
9 | (d) For agreements entered into prior to April 19, 2022 | ||||||
10 | (the effective date of Public Act 102-700), for any applicant | ||||||
11 | creating the full-time employee jobs noted in subsection (c), | ||||||
12 | those jobs must have a total compensation equal to or greater | ||||||
13 | than 120% of the average wage paid to full-time employees in | ||||||
14 | the county where the project is located, as determined by the | ||||||
15 | U.S. Bureau of Labor Statistics. For agreements entered into | ||||||
16 | on or after April 19, 2022 (the effective date of Public Act | ||||||
17 | 102-700), for any applicant creating the full-time employee | ||||||
18 | jobs noted in subsection (c), those jobs must have a | ||||||
19 | compensation equal to or greater than 120% of the average wage | ||||||
20 | paid to full-time employees in a similar position within an | ||||||
21 | occupational group in the county where the project is located, | ||||||
22 | as determined by the Department. | ||||||
23 | (e) For any applicant, within 24 months after being placed | ||||||
24 | in service, it must certify to the Department that it is carbon | ||||||
25 | neutral or has attained certification under one of more of the | ||||||
26 | following green building standards: |
| |||||||
| |||||||
1 | (1) BREEAM for New Construction or BREEAM In-Use; | ||||||
2 | (2) ENERGY STAR; | ||||||
3 | (3) Envision; | ||||||
4 | (4) ISO 50001 - energy management; | ||||||
5 | (5) LEED for Building Design and Construction or LEED | ||||||
6 | for Building Operations and Maintenance; | ||||||
7 | (6) Green Globes for New Construction or Green Globes | ||||||
8 | for Existing Buildings; or | ||||||
9 | (7) UL 3223. | ||||||
10 | (f) Each applicant must outline its hiring plan and | ||||||
11 | commitment to recruit and hire full-time employee positions at | ||||||
12 | the project site. The hiring plan may include a partnership | ||||||
13 | with an institution of higher education to provide | ||||||
14 | internships, including, but not limited to, internships | ||||||
15 | supported by the Clean Jobs Workforce Network Program, or | ||||||
16 | full-time permanent employment for students at the project | ||||||
17 | site. Additionally, the applicant may create or utilize | ||||||
18 | participants from apprenticeship programs that are approved by | ||||||
19 | and registered with the United States Department of Labor's | ||||||
20 | Bureau of Apprenticeship and Training. The applicant may apply | ||||||
21 | for apprenticeship education expense credits in accordance | ||||||
22 | with the provisions set forth in 14 Ill. Adm. Code 522. Each | ||||||
23 | applicant is required to report annually, on or before April | ||||||
24 | 15, on the diversity of its workforce in accordance with | ||||||
25 | Section 50 of this Act. For existing facilities of applicants | ||||||
26 | under paragraph (3) of subsection (b) above, if the taxpayer |
| |||||||
| |||||||
1 | expects a reduction in force due to its transition to | ||||||
2 | manufacturing electric vehicle, electric vehicle component | ||||||
3 | parts, or electric vehicle power supply equipment, the plan | ||||||
4 | submitted under this Section must outline the taxpayer's plan | ||||||
5 | to assist with retraining its workforce aligned with the | ||||||
6 | taxpayer's adoption of new technologies and anticipated | ||||||
7 | efforts to retrain employees through employment opportunities | ||||||
8 | within the taxpayer's workforce. | ||||||
9 | (g) Each applicant must demonstrate a contractual or other | ||||||
10 | relationship with a recycling facility, or demonstrate its own | ||||||
11 | recycling capabilities, at the time of application and report | ||||||
12 | annually a continuing contractual or other relationship with a | ||||||
13 | recycling facility and the percentage of batteries used in | ||||||
14 | electric vehicles recycled throughout the term of the | ||||||
15 | agreement. | ||||||
16 | (h) A taxpayer may not enter into more than one agreement | ||||||
17 | under this Act with respect to a single address or location for | ||||||
18 | the same period of time. Also, a taxpayer may not enter into an | ||||||
19 | agreement under this Act with respect to a single address or | ||||||
20 | location for the same period of time for which the taxpayer | ||||||
21 | currently holds an active agreement under the Economic | ||||||
22 | Development for a Growing Economy Tax Credit Act. This | ||||||
23 | provision does not preclude the applicant from entering into | ||||||
24 | an additional agreement after the expiration or voluntary | ||||||
25 | termination of an earlier agreement under this Act or under | ||||||
26 | the Economic Development for a Growing Economy Tax Credit Act |
| |||||||
| |||||||
1 | to the extent that the taxpayer's application otherwise | ||||||
2 | satisfies the terms and conditions of this Act and is approved | ||||||
3 | by the Department. An applicant with an existing agreement | ||||||
4 | under the Economic Development for a Growing Economy Tax | ||||||
5 | Credit Act may submit an application for an agreement under | ||||||
6 | this Act after it terminates any existing agreement under the | ||||||
7 | Economic Development for a Growing Economy Tax Credit Act with | ||||||
8 | respect to the same address or location. If a project that is | ||||||
9 | subject to an existing agreement under the Economic
| ||||||
10 | Development for a Growing Economy Tax Credit Act meets the
| ||||||
11 | requirements to be designated as a REV Illinois project under
| ||||||
12 | this Act, including for actions undertaken prior to the
| ||||||
13 | effective date of this Act, the taxpayer that is subject to
| ||||||
14 | that existing agreement under the Economic Development for a
| ||||||
15 | Growing Economy Tax Credit Act may apply to the Department to
| ||||||
16 | amend the agreement to allow the project to become a
| ||||||
17 | designated REV Illinois project. Following the amendment, time
| ||||||
18 | accrued during which the project was eligible for credits
| ||||||
19 | under the existing agreement under the Economic Development
| ||||||
20 | for a Growing Economy Tax Credit Act shall count toward the
| ||||||
21 | duration of the credit subject to limitations described in
| ||||||
22 | Section 40 of this Act. | ||||||
23 | (i) If, at any time following the designation of a project
| ||||||
24 | as a REV Illinois Project by the Department and prior to the
| ||||||
25 | termination or expiration of an agreement under this Act, the
| ||||||
26 | project ceases to qualify as a REV Illinois project because
|
| |||||||
| |||||||
1 | the taxpayer is no longer an electric vehicle manufacturer, an
| ||||||
2 | electric vehicle component manufacturer, an electric vehicle
| ||||||
3 | power supply equipment manufacturer, a battery recycling and
| ||||||
4 | reuse manufacturer, or a battery raw materials refining
| ||||||
5 | service provider, that project may receive tax credit awards
| ||||||
6 | as described in Section 5-15 and Section 5-51 of the Economic
| ||||||
7 | Development for a Growing Economy Tax Credit Act, as long as
| ||||||
8 | the project continues to meet requirements to obtain those
| ||||||
9 | credits as described in the Economic Development for a Growing
| ||||||
10 | Economy Tax Credit Act and remains compliant with terms
| ||||||
11 | contained in the Agreement under this Act not related to their
| ||||||
12 | status as an electric vehicle manufacturer, an electric
| ||||||
13 | vehicle component manufacturer, an electric vehicle power
| ||||||
14 | supply equipment manufacturer, a battery recycling and reuse
| ||||||
15 | manufacturer, or a battery raw materials refining service
| ||||||
16 | provider. Time accrued during which the project was eligible
| ||||||
17 | for credits under an agreement under this Act shall count
| ||||||
18 | toward the duration of the credit subject to limitations
| ||||||
19 | described in Section 5-45 of the Economic Development for a
| ||||||
20 | Growing Economy Tax Credit Act.
| ||||||
21 | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; | ||||||
22 | 102-1112, eff. 12-21-22.) | ||||||
23 | (20 ILCS 686/30)
| ||||||
24 | Sec. 30. Tax credit awards. | ||||||
25 | (a) Subject to the conditions set forth in this Act, a |
| |||||||
| |||||||
1 | taxpayer is entitled to a credit against the tax imposed | ||||||
2 | pursuant to subsections (a) and (b) of Section 201 of the | ||||||
3 | Illinois Income Tax Act for a taxable year beginning on or | ||||||
4 | after January 1, 2025 if the taxpayer is awarded a credit by | ||||||
5 | the Department in accordance with an agreement under this Act. | ||||||
6 | The Department has authority to award credits under this Act | ||||||
7 | on and after January 1, 2022. | ||||||
8 | (b) REV Illinois Credits. A taxpayer may receive a tax | ||||||
9 | credit against the tax imposed under subsections (a) and (b) | ||||||
10 | of Section 201 of the Illinois Income Tax Act, not to exceed | ||||||
11 | the sum of (i) 75% of the incremental income tax attributable | ||||||
12 | to new employees at the applicant's project and (ii) 10% of the | ||||||
13 | training costs of the new employees. If the project is located | ||||||
14 | in an underserved area or an energy transition area, then the | ||||||
15 | amount of the credit may not exceed the sum of (i) 100% of the | ||||||
16 | incremental income tax attributable to new employees at the | ||||||
17 | applicant's project; and (ii) 10% of the training costs of the | ||||||
18 | new employees. The percentage of training costs includable in | ||||||
19 | the calculation may be increased by an additional 15% for | ||||||
20 | training costs associated with new employees that are recent | ||||||
21 | (2 years or less) graduates, certificate holders, or | ||||||
22 | credential recipients from an institution of higher education | ||||||
23 | in Illinois, or, if the training is provided by an institution | ||||||
24 | of higher education in Illinois, the Clean Jobs Workforce | ||||||
25 | Network Program, or an apprenticeship and training program | ||||||
26 | located in Illinois and approved by and registered with the |
| |||||||
| |||||||
1 | United States Department of Labor's Bureau of Apprenticeship | ||||||
2 | and Training. An applicant is also eligible for a training | ||||||
3 | credit that shall not exceed 10% of the training costs of | ||||||
4 | retained employees for the purpose of upskilling to meet the | ||||||
5 | operational needs of the applicant or the REV Illinois | ||||||
6 | Project. The percentage of training costs includable in the | ||||||
7 | calculation shall not exceed a total of 25%. If an applicant | ||||||
8 | agrees to hire the required number of new employees, then the | ||||||
9 | maximum amount of the credit for that applicant may be | ||||||
10 | increased by an amount not to exceed 75% of the incremental | ||||||
11 | income tax attributable to retained employees at the | ||||||
12 | applicant's project; provided that, in order to receive the | ||||||
13 | increase for retained employees, the applicant must, if | ||||||
14 | applicable, meet or exceed the statewide baseline. If the | ||||||
15 | Project is in an underserved area or an energy transition | ||||||
16 | area, the maximum amount of the credit attributable to | ||||||
17 | retained employees for the applicant may be increased to an | ||||||
18 | amount not to exceed 100% of the incremental income tax | ||||||
19 | attributable to retained employees at the applicant's project; | ||||||
20 | provided that, in order to receive the increase for retained | ||||||
21 | employees, the applicant must meet or exceed the statewide | ||||||
22 | baseline. REV Illinois Credits awarded may include credit | ||||||
23 | earned for incremental income tax withheld and training costs | ||||||
24 | incurred by the taxpayer beginning on or after January 1, | ||||||
25 | 2022. Credits so earned and certified by the Department may be | ||||||
26 | applied against the tax imposed by subsections (a) and (b) of |
| |||||||
| |||||||
1 | Section 201 of the Illinois Income Tax Act for taxable years | ||||||
2 | beginning on or after January 1, 2025. | ||||||
3 | (c) REV Construction Jobs Credit. For construction wages | ||||||
4 | associated with a project that qualified for a REV Illinois | ||||||
5 | Credit under subsection (b), the taxpayer may receive a tax | ||||||
6 | credit against the tax imposed under subsections (a) and (b) | ||||||
7 | of Section 201 of the Illinois Income Tax Act in an amount | ||||||
8 | equal to 50% of the incremental income tax attributable to | ||||||
9 | construction wages paid in connection with construction of the | ||||||
10 | project facilities, as a jobs credit for workers hired to | ||||||
11 | construct the project. | ||||||
12 | The REV Construction Jobs Credit may not exceed 75% of the | ||||||
13 | amount of the incremental income tax attributable to | ||||||
14 | construction wages paid in connection with construction of the | ||||||
15 | project facilities if the project is in an underserved area or | ||||||
16 | an energy transition area. | ||||||
17 | (d) The Department shall certify to the Department of | ||||||
18 | Revenue: (1) the identity of Taxpayers that are eligible for | ||||||
19 | the REV Illinois Credit and REV Construction Jobs Credit; (2) | ||||||
20 | the amount of the REV Illinois Credits and REV Construction | ||||||
21 | Jobs Credits awarded in each calendar year; and (3) the amount | ||||||
22 | of the REV Illinois Credit and REV Construction Jobs Credit | ||||||
23 | claimed in each calendar year. REV Illinois Credits awarded | ||||||
24 | may include credit earned for Incremental Income Tax withheld | ||||||
25 | and Training Costs incurred by the Taxpayer beginning on or | ||||||
26 | after January 1, 2022. Credits so earned and certified by the |
| |||||||
| |||||||
1 | Department may be applied against the tax imposed by Section | ||||||
2 | 201(a) and (b) of the Illinois Income Tax Act for taxable years | ||||||
3 | beginning on or after January 1, 2025. | ||||||
4 | (e) Applicants seeking certification for a tax credits | ||||||
5 | related to the construction of the project facilities in the | ||||||
6 | State shall require the contractor to enter into a project | ||||||
7 | labor agreement that conforms with the Project Labor | ||||||
8 | Agreements Act. | ||||||
9 | (f) Any applicant issued a certificate for a tax credit or | ||||||
10 | tax exemption under this Act must annually report to the | ||||||
11 | Department the total project tax benefits received. Reports | ||||||
12 | are due no later than May 31 of each year and shall cover the | ||||||
13 | previous calendar year. The first report is for the 2022 | ||||||
14 | calendar year and is due no later than May 31, 2023. For | ||||||
15 | applicants issued a certificate of exemption under Section 105 | ||||||
16 | of this Act, the report shall be the same as required for a | ||||||
17 | High Impact Business under subsection (a-5) of Section 8.1 of | ||||||
18 | the Illinois Enterprise Zone Act. Each person required to file | ||||||
19 | a return under the Gas Revenue Tax Act, the Electricity Excise | ||||||
20 | Tax Law, or the Telecommunications Excise Tax Act shall file a | ||||||
21 | report containing information about customers that are issued | ||||||
22 | an exemption certificate under Section 95 of this Act in the | ||||||
23 | same manner and form as they are required to report under | ||||||
24 | subsection (b) of Section 8.1 of the Illinois Enterprise Zone | ||||||
25 | Act. | ||||||
26 | (g) Nothing in this Act shall prohibit an award of credit |
| |||||||
| |||||||
1 | to an applicant that uses a PEO if all other award criteria are | ||||||
2 | satisfied. | ||||||
3 | (h) With respect to any portion of a REV Illinois Credit | ||||||
4 | that is based on the incremental income tax attributable to | ||||||
5 | new employees or retained employees, in lieu of the Credit | ||||||
6 | allowed under this Act against the taxes imposed pursuant to | ||||||
7 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
8 | Tax Act, a taxpayer that otherwise meets the criteria set | ||||||
9 | forth in this Section, the taxpayer may elect to claim the | ||||||
10 | credit, on or after January 1, 2025, against its obligation to | ||||||
11 | pay over withholding under Section 704A of the Illinois Income | ||||||
12 | Tax Act. The election shall be made in the manner prescribed by | ||||||
13 | the Department of Revenue and once made shall be irrevocable.
| ||||||
14 | (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. | ||||||
15 | 12-21-22.) | ||||||
16 | (20 ILCS 686/40)
| ||||||
17 | Sec. 40. Amount and duration of the credits; limitation to | ||||||
18 | amount of costs of specified items. The Department shall | ||||||
19 | determine the amount and duration of the REV Illinois Credit | ||||||
20 | awarded under this Act, subject to the limitations set forth | ||||||
21 | in this Act. For a project that qualified under paragraph (1), | ||||||
22 | (2), or (4) , or (4.1) of subsection (c) of Section 20, the | ||||||
23 | duration of the credit may not exceed 15 taxable years, with an
| ||||||
24 | option to renew the agreement for no more than one term not to
| ||||||
25 | exceed an additional 15 taxable years. For project that |
| |||||||
| |||||||
1 | qualified under paragraph (3) or (3.1) of subsection (c) of | ||||||
2 | Section 20, the duration of the credit may not exceed 10 | ||||||
3 | taxable years, with an option to renew the agreement for no
| ||||||
4 | more than one term not to exceed an additional 10 taxable
| ||||||
5 | years. The credit may be stated as a percentage of the | ||||||
6 | incremental income tax and training costs attributable to the | ||||||
7 | applicant's project and may include a fixed dollar limitation. | ||||||
8 | Nothing in this Section shall prevent the Department, in | ||||||
9 | consultation with the Department of Revenue, from adopting | ||||||
10 | rules to extend the sunset of any earned, existing, and unused | ||||||
11 | tax credit or credits a taxpayer may be in possession of, as | ||||||
12 | provided for in Section 605-1055 of the Department of Commerce | ||||||
13 | and Economic Opportunity Law of the Civil Administrative Code | ||||||
14 | of Illinois, notwithstanding the carry-forward provisions | ||||||
15 | pursuant to paragraph (4) of Section 211 of the Illinois | ||||||
16 | Income Tax Act.
| ||||||
17 | (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. | ||||||
18 | 12-21-22.) | ||||||
19 | (20 ILCS 686/45)
| ||||||
20 | Sec. 45. Contents of agreements with applicants. | ||||||
21 | (a) The Department shall enter into an agreement with an | ||||||
22 | applicant that is awarded a credit under this Act. The | ||||||
23 | agreement shall include all of the following: | ||||||
24 | (1) A detailed description of the project that is the | ||||||
25 | subject of the agreement, including the location and |
| |||||||
| |||||||
1 | amount of the investment and jobs created or retained. | ||||||
2 | (2) The duration of the credit, the first taxable year | ||||||
3 | for which the credit may be awarded, and the first taxable | ||||||
4 | year in which the credit may be used by the taxpayer. | ||||||
5 | (3) The credit amount that will be allowed for each | ||||||
6 | taxable year. | ||||||
7 | (4) For a project qualified under paragraphs (1), (2), | ||||||
8 | or (4) of subsection (c) of Section 20, a requirement that | ||||||
9 | the taxpayer shall maintain operations at the project | ||||||
10 | location a minimum number of years not to exceed 15. For | ||||||
11 | project qualified under paragraph (3) of subsection (c) of | ||||||
12 | Section 20, a requirement that the taxpayer shall maintain | ||||||
13 | operations at the project location a minimum number of | ||||||
14 | years not to exceed 10. | ||||||
15 | (5) A specific method for determining the number of | ||||||
16 | new employees and if applicable, retained employees, | ||||||
17 | employed during a taxable year. | ||||||
18 | (6) A requirement that the taxpayer shall annually | ||||||
19 | report to the Department the number of new employees, the | ||||||
20 | incremental income tax withheld in connection with the new | ||||||
21 | employees, and any other information the Department deems | ||||||
22 | necessary and appropriate to perform its duties under this | ||||||
23 | Act. | ||||||
24 | (7) A requirement that the Director is authorized to | ||||||
25 | verify with the appropriate State agencies the amounts | ||||||
26 | reported under paragraph (6), and after doing so shall |
| |||||||
| |||||||
1 | issue a certificate to the taxpayer stating that the | ||||||
2 | amounts have been verified. | ||||||
3 | (8) A requirement that the taxpayer shall provide | ||||||
4 | written notification to the Director not more than 30 days | ||||||
5 | after the taxpayer makes or receives a proposal that would | ||||||
6 | transfer the taxpayer's State tax liability obligations to | ||||||
7 | a successor taxpayer. | ||||||
8 | (9) A detailed description of the number of new | ||||||
9 | employees to be hired, and the occupation and payroll of | ||||||
10 | full-time jobs to be created or retained because of the | ||||||
11 | project. | ||||||
12 | (10) The minimum investment the taxpayer will make in | ||||||
13 | capital improvements, the time period for placing the | ||||||
14 | property in service, and the designated location in | ||||||
15 | Illinois for the investment. | ||||||
16 | (11) A requirement that the taxpayer shall provide | ||||||
17 | written notification to the Director and the Director's | ||||||
18 | designee not more than 30 days after the taxpayer | ||||||
19 | determines that the minimum job creation or retention, | ||||||
20 | employment payroll, or investment no longer is or will be | ||||||
21 | achieved or maintained as set forth in the terms and | ||||||
22 | conditions of the agreement. Additionally, the | ||||||
23 | notification should outline to the Department the number | ||||||
24 | of layoffs, date of the layoffs, and detail taxpayer's | ||||||
25 | efforts to provide career and training counseling for the | ||||||
26 | impacted workers with industry-related certifications and |
| |||||||
| |||||||
1 | trainings. | ||||||
2 | (12) A provision that, if the total number of new | ||||||
3 | employees falls below a specified level, the allowance of | ||||||
4 | credit shall be suspended until the number of new | ||||||
5 | employees equals or exceeds the agreement amount. | ||||||
6 | (13) If applicable, a provision that specifies the | ||||||
7 | statewide baseline at the time of application for retained | ||||||
8 | employees. Additionally, the agreement must have a | ||||||
9 | provision addressing if the total number retained | ||||||
10 | employees falls below the statewide baseline, the | ||||||
11 | allowance of the credit shall be suspended until the | ||||||
12 | number of retained employees equals or exceeds the | ||||||
13 | agreement amount. | ||||||
14 | (14) A detailed description of the items for which the | ||||||
15 | costs incurred by the Taxpayer will be included in the | ||||||
16 | limitation on the Credit provided in Section 40. | ||||||
17 | (15) A provision stating that if the taxpayer fails to | ||||||
18 | meet either the investment or job creation and retention | ||||||
19 | requirements specified in the agreement during the entire | ||||||
20 | 5-year period beginning on the first day of the first | ||||||
21 | taxable year in which the agreement is executed and ending | ||||||
22 | on the last day of the fifth taxable year after the | ||||||
23 | agreement is executed, then the agreement is automatically | ||||||
24 | terminated on the last day of the fifth taxable year after | ||||||
25 | the agreement is executed, and the taxpayer is not | ||||||
26 | entitled to the award of any credits for any of that 5-year |
| |||||||
| |||||||
1 | period. | ||||||
2 | (16) A provision stating that if the taxpayer ceases | ||||||
3 | principal operations with the intent to permanently shut | ||||||
4 | down the project in the State during the term of the | ||||||
5 | Agreement, then the entire credit amount awarded to the | ||||||
6 | taxpayer prior to the date the taxpayer ceases principal | ||||||
7 | operations shall be returned to the Department and shall | ||||||
8 | be reallocated to the local workforce investment area in | ||||||
9 | which the project was located. | ||||||
10 | (17) A provision stating that the Taxpayer must | ||||||
11 | provide the reports outlined in Sections 50 and 55 on or | ||||||
12 | before April 15 each year. | ||||||
13 | (18) A provision requiring the taxpayer to report | ||||||
14 | annually its contractual obligations or otherwise with a | ||||||
15 | recycling facility for its operations. | ||||||
16 | (19) Any other performance conditions or contract | ||||||
17 | provisions the Department determines are necessary or | ||||||
18 | appropriate. | ||||||
19 | (20) Each taxpayer under paragraph (1) of subsection | ||||||
20 | (c) of Section 20 above shall maintain labor neutrality | ||||||
21 | toward any union organizing campaign for any employees of | ||||||
22 | the taxpayer assigned to work on the premises of the REV | ||||||
23 | Illinois Project Site. This paragraph shall not apply to | ||||||
24 | an electric vehicle manufacturer, electric vehicle | ||||||
25 | component part manufacturer, electric vehicle power supply | ||||||
26 | manufacturer , or renewable energy manufacturer, or any |
| |||||||
| |||||||
1 | joint venture including an electric vehicle manufacturer, | ||||||
2 | electric vehicle component part manufacturer, and electric | ||||||
3 | vehicle power supply manufacturer, or renewable energy | ||||||
4 | manufacturer, who is subject to collective bargaining | ||||||
5 | agreement entered into prior to the taxpayer filing an | ||||||
6 | application pursuant to this Act. | ||||||
7 | (b) The Department shall post on its website the terms of | ||||||
8 | each agreement entered into under this Act. Such information | ||||||
9 | shall be posted within 10 days after entering into the | ||||||
10 | agreement and must include the following: | ||||||
11 | (1) the name of the taxpayer; | ||||||
12 | (2) the location of the project; | ||||||
13 | (3) the estimated value of the credit; | ||||||
14 | (4) the number of new employee jobs and, if | ||||||
15 | applicable, number of retained employee jobs at the | ||||||
16 | project; and | ||||||
17 | (5) whether or not the project is in an underserved | ||||||
18 | area or energy transition area.
| ||||||
19 | (Source: P.A. 102-669, eff. 11-16-21.) | ||||||
20 | Section 915. The Build Illinois Act is amended by changing | ||||||
21 | Section 10-6 as follows:
| ||||||
22 | (30 ILCS 750/10-6) (from Ch. 127, par. 2710-6)
| ||||||
23 | Sec. 10-6. Large Business Attraction Fund.
| ||||||
24 | (a) There is created the Large Business Attraction Fund to
|
| |||||||
| |||||||
1 | be held as part of the State Treasury. The Department is
| ||||||
2 | authorized to make loans from the Fund for the purposes
| ||||||
3 | established under this Article. The State Treasurer shall have
| ||||||
4 | custody of the Fund and may invest in securities constituting
| ||||||
5 | direct obligations of the United States Government, in
| ||||||
6 | obligations the principal of and interest on which are
| ||||||
7 | guaranteed by the United States Government, or in certificates
| ||||||
8 | of deposit of any State or national bank that are fully
secured | ||||||
9 | by obligations guaranteed as to principal and interest
by the | ||||||
10 | United States Government. The purpose of the Fund is
to offer | ||||||
11 | loans to finance large firms considering the location
of a | ||||||
12 | proposed plant in the State and to provide financing to
carry | ||||||
13 | out the purposes and provisions of paragraph (h) of
Section | ||||||
14 | 10-3. Financing shall be in the
form of a loan, mortgage, or | ||||||
15 | other debt instrument. All loans
shall be conditioned on the | ||||||
16 | project receiving financing from
participating lenders or | ||||||
17 | other sources. Loan proceeds shall
be available for project | ||||||
18 | costs associated with an expansion
of business capacity and | ||||||
19 | employment, except for debt refinancing.
Targeted companies | ||||||
20 | for the program shall primarily
consist of established | ||||||
21 | industrial and service companies with
proven records of | ||||||
22 | earnings that will sell their product to
markets beyond | ||||||
23 | Illinois and have proven multistate
location options. New | ||||||
24 | ventures shall be considered only if
the entity is protected | ||||||
25 | with adequate security with regard to
its financing and | ||||||
26 | operation. The limitations and conditions
with respect to the |
| |||||||
| |||||||
1 | use of this Fund shall not apply in
carrying out the purposes | ||||||
2 | and provisions of paragraph (h) of Section 10-3.
| ||||||
3 | (b) Deposits into the Fund shall include, but are
not | ||||||
4 | limited to:
| ||||||
5 | (1) Any appropriations, grants, or gifts made to
the | ||||||
6 | Fund.
| ||||||
7 | (2) Any income received from interest on investments
| ||||||
8 | of amounts from the Fund not currently needed to meet
the | ||||||
9 | obligations of the Fund.
| ||||||
10 | (c) The State Comptroller and the State Treasurer shall | ||||||
11 | from time to
time, upon the written direction of the Governor, | ||||||
12 | transfer from the Fund to
the General Revenue Fund those | ||||||
13 | amounts that the Governor determines are in
excess of the | ||||||
14 | amounts required to meet the obligations of the Fund.
| ||||||
15 | (d) Notwithstanding subsection (a) of this Section, the | ||||||
16 | Large Business Attraction Fund may be used for the purposes | ||||||
17 | established under the Invest in Illinois Act, including for | ||||||
18 | awards, grants, loans, contracts, and administrative expenses. | ||||||
19 | (Source: P.A. 90-372, eff. 7-1-98.)
| ||||||
20 | Section 920. The Illinois Income Tax Act is amended by | ||||||
21 | changing Sections 236, 237, and 704A as follows: | ||||||
22 | (35 ILCS 5/236) | ||||||
23 | Sec. 236. Reimagining Energy and Electric Vehicles in | ||||||
24 | Illinois Tax credits. |
| |||||||
| |||||||
1 | (a) For tax years beginning on or after January 1, 2025, a | ||||||
2 | taxpayer who has entered into an agreement under the | ||||||
3 | Reimagining Energy and Electric Vehicles in Illinois Act is | ||||||
4 | entitled to a credit against the taxes imposed under | ||||||
5 | subsections (a) and (b) of Section 201 of this Act in an amount | ||||||
6 | to be determined in the Agreement. The taxpayer may elect to | ||||||
7 | claim the credit, on or after January 1, 2025, against its | ||||||
8 | obligation to pay over withholding under Section 704A of this | ||||||
9 | Act as provided in paragraph (6) of subsection (b). If the | ||||||
10 | taxpayer is a partnership or Subchapter S corporation, the | ||||||
11 | credit shall be allowed to the partners or shareholders in | ||||||
12 | accordance with the determination of income and distributive | ||||||
13 | share of income under Sections 702 and 704 and subchapter S of | ||||||
14 | the Internal Revenue Code. The Department, in cooperation with | ||||||
15 | the Department of Commerce and Economic Opportunity, shall | ||||||
16 | adopt rules to enforce and administer the provisions of this | ||||||
17 | Section. This Section is exempt from the provisions of Section | ||||||
18 | 250 of this Act. | ||||||
19 | (b) The credit is subject to the conditions set forth in | ||||||
20 | the agreement and the following limitations: | ||||||
21 | (1) The tax credit may be in the form of either or both | ||||||
22 | the REV Illinois Credit or the REV Construction Jobs | ||||||
23 | Credit (as defined in the Reimagining Energy and Electric | ||||||
24 | Vehicles in Illinois Act) and shall not exceed the | ||||||
25 | percentage of incremental income tax and percentage of | ||||||
26 | training costs permitted in that Act and in the agreement |
| |||||||
| |||||||
1 | with respect to the project. | ||||||
2 | (2) The amount of the credit allowed during a tax year | ||||||
3 | plus the sum of all amounts allowed in prior tax years | ||||||
4 | shall not exceed the maximum amount of credit established | ||||||
5 | in the agreement. | ||||||
6 | (3) The amount of the credit shall be determined on an | ||||||
7 | annual basis. Except as applied in a carryover year | ||||||
8 | pursuant to paragraph (4), the credit may not be applied | ||||||
9 | against any State income tax liability in more than 15 | ||||||
10 | taxable years. | ||||||
11 | (4) The credit may not exceed the amount of taxes | ||||||
12 | imposed pursuant to subsections (a) and (b) of Section 201 | ||||||
13 | of this Act. Any credit that is unused in the year the | ||||||
14 | credit is computed may be carried forward and applied to | ||||||
15 | the tax liability of the 5 taxable years following the | ||||||
16 | excess credit year. The credit shall be applied to the | ||||||
17 | earliest year for which there is a tax liability. If there | ||||||
18 | are credits from more than one tax year that are available | ||||||
19 | to offset a liability, the earlier credit shall be applied | ||||||
20 | first. | ||||||
21 | (5) No credit shall be allowed with respect to any | ||||||
22 | agreement for any taxable year ending after the | ||||||
23 | noncompliance date. Upon receiving notification by the | ||||||
24 | Department of Commerce and Economic Opportunity of the | ||||||
25 | noncompliance of a taxpayer with an agreement, the | ||||||
26 | Department shall notify the taxpayer that no credit is |
| |||||||
| |||||||
1 | allowed with respect to that agreement for any taxable | ||||||
2 | year ending after the noncompliance date, as stated in | ||||||
3 | such notification. If any credit has been allowed with | ||||||
4 | respect to an agreement for a taxable year ending after | ||||||
5 | the noncompliance date for that agreement, any refund paid | ||||||
6 | to the taxpayer for that taxable year shall, to the extent | ||||||
7 | of that credit allowed, be an erroneous refund within the | ||||||
8 | meaning of Section 912 of this Act. | ||||||
9 | If, during any taxable year, a taxpayer ceases | ||||||
10 | operations at a project location that is the subject of | ||||||
11 | that agreement with the intent to terminate operations in | ||||||
12 | the State, the tax imposed under subsections (a) and (b) | ||||||
13 | of Section 201 of this Act for such taxable year shall be | ||||||
14 | increased by the amount of any credit allowed under the | ||||||
15 | Agreement for that Project location prior to the date the | ||||||
16 | Taxpayer ceases operations. | ||||||
17 | (6) Instead of claiming the credit against the taxes | ||||||
18 | imposed under subsections (a) and (b) of Section 201 of | ||||||
19 | this Act, with respect to the portion of a REV Illinois | ||||||
20 | Credit that is calculated based on the Incremental Income | ||||||
21 | Tax attributable to new employees and retained employees, | ||||||
22 | the taxpayer may elect, in accordance with the Reimagining | ||||||
23 | Energy and Electric Vehicles in Illinois Act, to claim the | ||||||
24 | credit, on or after January 1, 2025, against its | ||||||
25 | obligation to pay over withholding under Section 704A of | ||||||
26 | the Illinois Income Tax Act. Any credit for which a |
| |||||||
| |||||||
1 | Taxpayer makes such an election shall not be claimed | ||||||
2 | against the taxes imposed under subsections (a) and (b) of | ||||||
3 | Section 201 of this Act.
| ||||||
4 | (Source: P.A. 102-669, eff. 11-16-21.) | ||||||
5 | (35 ILCS 5/237) | ||||||
6 | Sec. 237. REV Illinois Investment Tax credits. | ||||||
7 | (a) For tax years beginning on or after the effective date | ||||||
8 | of this amendatory Act of the 102nd General Assembly, a | ||||||
9 | taxpayer shall be allowed a credit against the tax imposed by | ||||||
10 | subsections (a) and (b) of Section 201 for investment in | ||||||
11 | qualified property which is placed in service at the site of a | ||||||
12 | REV Illinois Project subject to an agreement between the | ||||||
13 | taxpayer and the Department of Commerce and Economic | ||||||
14 | Opportunity pursuant to the Reimagining Energy and Electric | ||||||
15 | Vehicles in Illinois Act. For partners, shareholders of | ||||||
16 | Subchapter S corporations, and owners of limited liability | ||||||
17 | companies, if the liability company is treated as a | ||||||
18 | partnership for purposes of federal and State income taxation, | ||||||
19 | there shall be allowed a credit under this Section to be | ||||||
20 | determined in accordance with the determination of income and | ||||||
21 | distributive share of income under Sections 702 and 704 and | ||||||
22 | Subchapter S of the Internal Revenue Code. The credit shall be | ||||||
23 | 0.5% of the basis for such property. The credit shall be | ||||||
24 | available only in the taxable year in which the property is | ||||||
25 | placed in service and shall not be allowed to the extent that |
| |||||||
| |||||||
1 | it would reduce a taxpayer's liability for the tax imposed by | ||||||
2 | subsections (a) and (b) of Section 201 to below zero. The | ||||||
3 | credit shall be allowed for the tax year in which the property | ||||||
4 | is placed in service, or, if the amount of the credit exceeds | ||||||
5 | the tax liability for that year, whether it exceeds the | ||||||
6 | original liability or the liability as later amended, such | ||||||
7 | excess may be carried forward and applied to the tax liability | ||||||
8 | of the 5 taxable years following the excess credit year. The | ||||||
9 | credit shall be applied to the earliest year for which there is | ||||||
10 | a liability. If there is credit from more than one tax year | ||||||
11 | that is available to offset a liability, the credit accruing | ||||||
12 | first in time shall be applied first. | ||||||
13 | (b) The term qualified property means property which: | ||||||
14 | (1) is tangible, whether new or used, including | ||||||
15 | buildings and structural components of buildings; | ||||||
16 | (2) is depreciable pursuant to Section 167 of the | ||||||
17 | Internal Revenue Code, except that "3-year property" as | ||||||
18 | defined in Section 168(c)(2)(A) of that Code is not | ||||||
19 | eligible for the credit provided by this Section; | ||||||
20 | (3) is acquired by purchase as defined in Section | ||||||
21 | 179(d) of the Internal Revenue Code; | ||||||
22 | (4) is used at the site of the REV Illinois Project by | ||||||
23 | the taxpayer; and | ||||||
24 | (5) has not been previously used in Illinois in such a | ||||||
25 | manner and by such a person as would qualify for the credit | ||||||
26 | provided by this Section. |
| |||||||
| |||||||
1 | (c) The basis of qualified property shall be the basis | ||||||
2 | used to compute the depreciation deduction for federal income | ||||||
3 | tax purposes. | ||||||
4 | (d) If the basis of the property for federal income tax | ||||||
5 | depreciation purposes is increased after it has been placed in | ||||||
6 | service at the site of the REV Illinois Project by the | ||||||
7 | taxpayer, the amount of such increase shall be deemed property | ||||||
8 | placed in service on the date of such increase in basis. | ||||||
9 | (e) The term "placed in service" shall have the same | ||||||
10 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
11 | (f) If during any taxable year, any property ceases to be | ||||||
12 | qualified property in the hands of the taxpayer within 48 | ||||||
13 | months after being placed in service, or the situs of any | ||||||
14 | qualified property is moved from the REV Illinois Project site | ||||||
15 | within 48 months after being placed in service, the tax | ||||||
16 | imposed under subsections (a) and (b) of Section 201 for such | ||||||
17 | taxable year shall be increased. Such increase shall be | ||||||
18 | determined by (i) recomputing the investment credit which | ||||||
19 | would have been allowed for the year in which credit for such | ||||||
20 | property was originally allowed by eliminating such property | ||||||
21 | from such computation, and (ii) subtracting such recomputed | ||||||
22 | credit from the amount of credit previously allowed. For the | ||||||
23 | purposes of this subsection (f), a reduction of the basis of | ||||||
24 | qualified property resulting from a redetermination of the | ||||||
25 | purchase price shall be deemed a disposition of qualified | ||||||
26 | property to the extent of such reduction.
|
| |||||||
| |||||||
1 | (Source: P.A. 102-669, eff. 11-16-21.) | ||||||
2 | (35 ILCS 5/704A) | ||||||
3 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
4 | (a) In general, every employer who deducts and withholds | ||||||
5 | or is required to deduct and withhold tax under this Act on or | ||||||
6 | after January 1, 2008 shall make those payments and returns as | ||||||
7 | provided in this Section. | ||||||
8 | (b) Returns. Every employer shall, in the form and manner | ||||||
9 | required by the Department, make returns with respect to taxes | ||||||
10 | withheld or required to be withheld under this Article 7 for | ||||||
11 | each quarter beginning on or after January 1, 2008, on or | ||||||
12 | before the last day of the first month following the close of | ||||||
13 | that quarter. | ||||||
14 | (c) Payments. With respect to amounts withheld or required | ||||||
15 | to be withheld on or after January 1, 2008: | ||||||
16 | (1) Semi-weekly payments. For each calendar year, each | ||||||
17 | employer who withheld or was required to withhold more | ||||||
18 | than $12,000 during the one-year period ending on June 30 | ||||||
19 | of the immediately preceding calendar year, payment must | ||||||
20 | be made: | ||||||
21 | (A) on or before each Friday of the calendar year, | ||||||
22 | for taxes withheld or required to be withheld on the | ||||||
23 | immediately preceding Saturday, Sunday, Monday, or | ||||||
24 | Tuesday; | ||||||
25 | (B) on or before each Wednesday of the calendar |
| |||||||
| |||||||
1 | year, for taxes withheld or required to be withheld on | ||||||
2 | the immediately preceding Wednesday, Thursday, or | ||||||
3 | Friday. | ||||||
4 | Beginning with calendar year 2011, payments made under | ||||||
5 | this paragraph (1) of subsection (c) must be made by | ||||||
6 | electronic funds transfer. | ||||||
7 | (2) Semi-weekly payments. Any employer who withholds | ||||||
8 | or is required to withhold more than $12,000 in any | ||||||
9 | quarter of a calendar year is required to make payments on | ||||||
10 | the dates set forth under item (1) of this subsection (c) | ||||||
11 | for each remaining quarter of that calendar year and for | ||||||
12 | the subsequent calendar year.
| ||||||
13 | (3) Monthly payments. Each employer, other than an | ||||||
14 | employer described in items (1) or (2) of this subsection, | ||||||
15 | shall pay to the Department, on or before the 15th day of | ||||||
16 | each month the taxes withheld or required to be withheld | ||||||
17 | during the immediately preceding month. | ||||||
18 | (4) Payments with returns. Each employer shall pay to | ||||||
19 | the Department, on or before the due date for each return | ||||||
20 | required to be filed under this Section, any tax withheld | ||||||
21 | or required to be withheld during the period for which the | ||||||
22 | return is due and not previously paid to the Department. | ||||||
23 | (d) Regulatory authority. The Department may, by rule: | ||||||
24 | (1) Permit employers, in lieu of the requirements of | ||||||
25 | subsections (b) and (c), to file annual returns due on or | ||||||
26 | before January 31 of the year for taxes withheld or |
| |||||||
| |||||||
1 | required to be withheld during the previous calendar year | ||||||
2 | and, if the aggregate amounts required to be withheld by | ||||||
3 | the employer under this Article 7 (other than amounts | ||||||
4 | required to be withheld under Section 709.5) do not exceed | ||||||
5 | $1,000 for the previous calendar year, to pay the taxes | ||||||
6 | required to be shown on each such return no later than the | ||||||
7 | due date for such return. | ||||||
8 | (2) Provide that any payment required to be made under | ||||||
9 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
10 | extent paid by electronic funds transfer on or before the | ||||||
11 | due date for deposit of federal income taxes withheld | ||||||
12 | from, or federal employment taxes due with respect to, the | ||||||
13 | wages from which the Illinois taxes were withheld. | ||||||
14 | (3) Designate one or more depositories to which | ||||||
15 | payment of taxes required to be withheld under this | ||||||
16 | Article 7 must be paid by some or all employers. | ||||||
17 | (4) Increase the threshold dollar amounts at which | ||||||
18 | employers are required to make semi-weekly payments under | ||||||
19 | subsection (c)(1) or (c)(2). | ||||||
20 | (e) Annual return and payment. Every employer who deducts | ||||||
21 | and withholds or is required to deduct and withhold tax from a | ||||||
22 | person engaged in domestic service employment, as that term is | ||||||
23 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
24 | comply with the requirements of this Section with respect to | ||||||
25 | such employees by filing an annual return and paying the taxes | ||||||
26 | required to be deducted and withheld on or before the 15th day |
| |||||||
| |||||||
1 | of the fourth month following the close of the employer's | ||||||
2 | taxable year. The Department may allow the employer's return | ||||||
3 | to be submitted with the employer's individual income tax | ||||||
4 | return or to be submitted with a return due from the employer | ||||||
5 | under Section 1400.2 of the Unemployment Insurance Act. | ||||||
6 | (f) Magnetic media and electronic filing. With respect to | ||||||
7 | taxes withheld in calendar years prior to 2017, any W-2 Form | ||||||
8 | that, under the Internal Revenue Code and regulations | ||||||
9 | promulgated thereunder, is required to be submitted to the | ||||||
10 | Internal Revenue Service on magnetic media or electronically | ||||||
11 | must also be submitted to the Department on magnetic media or | ||||||
12 | electronically for Illinois purposes, if required by the | ||||||
13 | Department. | ||||||
14 | With respect to taxes withheld in 2017 and subsequent | ||||||
15 | calendar years, the Department may, by rule, require that any | ||||||
16 | return (including any amended return) under this Section and | ||||||
17 | any W-2 Form that is required to be submitted to the Department | ||||||
18 | must be submitted on magnetic media or electronically. | ||||||
19 | The due date for submitting W-2 Forms shall be as | ||||||
20 | prescribed by the Department by rule. | ||||||
21 | (g) For amounts deducted or withheld after December 31, | ||||||
22 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
23 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
24 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
25 | against payments due under this Section for amounts withheld | ||||||
26 | during the first calendar year beginning after the end of that |
| |||||||
| |||||||
1 | taxable year equal to the amount of the credit for the | ||||||
2 | incremental income tax attributable to full-time employees of | ||||||
3 | the taxpayer awarded to the taxpayer by the Department of | ||||||
4 | Commerce and Economic Opportunity under the Economic | ||||||
5 | Development for a Growing Economy Tax Credit Act for the | ||||||
6 | taxable year and credits not previously claimed and allowed to | ||||||
7 | be carried forward under Section 211(4) of this Act as | ||||||
8 | provided in subsection (f) of Section 5-15 of the Economic | ||||||
9 | Development for a Growing Economy Tax Credit Act. The credit | ||||||
10 | or credits may not reduce the taxpayer's obligation for any | ||||||
11 | payment due under this Section to less than zero. If the amount | ||||||
12 | of the credit or credits exceeds the total payments due under | ||||||
13 | this Section with respect to amounts withheld during the | ||||||
14 | calendar year, the excess may be carried forward and applied | ||||||
15 | against the taxpayer's liability under this Section in the | ||||||
16 | succeeding calendar years as allowed to be carried forward | ||||||
17 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
18 | credits shall be applied to the earliest year for which there | ||||||
19 | is a tax liability. If there are credits from more than one | ||||||
20 | taxable year that are available to offset a liability, the | ||||||
21 | earlier credit shall be applied first. Each employer who | ||||||
22 | deducts and withholds or is required to deduct and withhold | ||||||
23 | tax under this Act and who retains income tax withholdings | ||||||
24 | under subsection (f) of Section 5-15 of the Economic | ||||||
25 | Development for a Growing Economy Tax Credit Act must make a | ||||||
26 | return with respect to such taxes and retained amounts in the |
| |||||||
| |||||||
1 | form and manner that the Department, by rule, requires and pay | ||||||
2 | to the Department or to a depositary designated by the | ||||||
3 | Department those withheld taxes not retained by the taxpayer. | ||||||
4 | For purposes of this subsection (g), the term taxpayer shall | ||||||
5 | include taxpayer and members of the taxpayer's unitary | ||||||
6 | business group as defined under paragraph (27) of subsection | ||||||
7 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
8 | the provisions of Section 250 of this Act. No credit awarded | ||||||
9 | under the Economic Development for a Growing Economy Tax | ||||||
10 | Credit Act for agreements entered into on or after January 1, | ||||||
11 | 2015 may be credited against payments due under this Section. | ||||||
12 | (g-1) For amounts deducted or withheld after December 31, | ||||||
13 | 2024, a taxpayer who makes an election under the Reimagining | ||||||
14 | Energy and Electric Vehicles in Illinois Act shall be allowed | ||||||
15 | a credit against payments due under this Section for amounts | ||||||
16 | withheld during the first quarterly reporting period beginning | ||||||
17 | after the certificate is issued equal to the portion of the REV | ||||||
18 | Illinois Credit attributable to the incremental income tax | ||||||
19 | attributable to new employees and retained employees as | ||||||
20 | certified by the Department of Commerce and Economic | ||||||
21 | Opportunity pursuant to an agreement with the taxpayer under | ||||||
22 | the Reimagining Energy and Electric Vehicles in Illinois Act | ||||||
23 | for the taxable year. The credit or credits may not reduce the | ||||||
24 | taxpayer's obligation for any payment due under this Section | ||||||
25 | to less than zero. If the amount of the credit or credits | ||||||
26 | exceeds the total payments due under this Section with respect |
| |||||||
| |||||||
1 | to amounts withheld during the quarterly reporting period, the | ||||||
2 | excess may be carried forward and applied against the | ||||||
3 | taxpayer's liability under this Section in the succeeding | ||||||
4 | quarterly reporting period as allowed to be carried forward | ||||||
5 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
6 | credits shall be applied to the earliest quarterly reporting | ||||||
7 | period for which there is a tax liability. If there are credits | ||||||
8 | from more than one quarterly reporting period that are | ||||||
9 | available to offset a liability, the earlier credit shall be | ||||||
10 | applied first. Each employer who deducts and withholds or is | ||||||
11 | required to deduct and withhold tax under this Act and who | ||||||
12 | retains income tax withholdings this subsection must make a | ||||||
13 | return with respect to such taxes and retained amounts in the | ||||||
14 | form and manner that the Department, by rule, requires and pay | ||||||
15 | to the Department or to a depositary designated by the | ||||||
16 | Department those withheld taxes not retained by the taxpayer. | ||||||
17 | For purposes of this subsection (g-1), the term taxpayer shall | ||||||
18 | include taxpayer and members of the taxpayer's unitary | ||||||
19 | business group as defined under paragraph (27) of subsection | ||||||
20 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
21 | the provisions of Section 250 of this Act. | ||||||
22 | (g-2) For amounts deducted or withheld after December 31, | ||||||
23 | 2024, a taxpayer who makes an election under the Manufacturing | ||||||
24 | Illinois Chips for Real Opportunity (MICRO) Act shall be | ||||||
25 | allowed a credit against payments due under this Section for | ||||||
26 | amounts withheld during the first quarterly reporting period |
| |||||||
| |||||||
1 | beginning after the certificate is issued equal to the portion | ||||||
2 | of the MICRO Illinois Credit attributable to the incremental | ||||||
3 | income tax attributable to new employees and retained | ||||||
4 | employees as certified by the Department of Commerce and | ||||||
5 | Economic Opportunity pursuant to an agreement with the | ||||||
6 | taxpayer under the Manufacturing Illinois Chips for Real | ||||||
7 | Opportunity (MICRO) Act for the taxable year. The credit or | ||||||
8 | credits may not reduce the taxpayer's obligation for any | ||||||
9 | payment due under this Section to less than zero. If the amount | ||||||
10 | of the credit or credits exceeds the total payments due under | ||||||
11 | this Section with respect to amounts withheld during the | ||||||
12 | quarterly reporting period, the excess may be carried forward | ||||||
13 | and applied against the taxpayer's liability under this | ||||||
14 | Section in the succeeding quarterly reporting period as | ||||||
15 | allowed to be carried forward under paragraph (4) of Section | ||||||
16 | 211 of this Act. The credit or credits shall be applied to the | ||||||
17 | earliest quarterly reporting period for which there is a tax | ||||||
18 | liability. If there are credits from more than one quarterly | ||||||
19 | reporting period that are available to offset a liability, the | ||||||
20 | earlier credit shall be applied first. Each employer who | ||||||
21 | deducts and withholds or is required to deduct and withhold | ||||||
22 | tax under this Act and who retains income tax withholdings | ||||||
23 | this subsection must make a return with respect to such taxes | ||||||
24 | and retained amounts in the form and manner that the | ||||||
25 | Department, by rule, requires and pay to the Department or to a | ||||||
26 | depositary designated by the Department those withheld taxes |
| |||||||
| |||||||
1 | not retained by the taxpayer. For purposes of this subsection, | ||||||
2 | the term taxpayer shall include taxpayer and members of the | ||||||
3 | taxpayer's unitary business group as defined under paragraph | ||||||
4 | (27) of subsection (a) of Section 1501 of this Act. This | ||||||
5 | Section is exempt from the provisions of Section 250 of this | ||||||
6 | Act. | ||||||
7 | (h) An employer may claim a credit against payments due | ||||||
8 | under this Section for amounts withheld during the first | ||||||
9 | calendar year ending after the date on which a tax credit | ||||||
10 | certificate was issued under Section 35 of the Small Business | ||||||
11 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
12 | amount shown on the certificate, but may not reduce the | ||||||
13 | taxpayer's obligation for any payment due under this Section | ||||||
14 | to less than zero. If the amount of the credit exceeds the | ||||||
15 | total payments due under this Section with respect to amounts | ||||||
16 | withheld during the calendar year, the excess may be carried | ||||||
17 | forward and applied against the taxpayer's liability under | ||||||
18 | this Section in the 5 succeeding calendar years. The credit | ||||||
19 | shall be applied to the earliest year for which there is a tax | ||||||
20 | liability. If there are credits from more than one calendar | ||||||
21 | year that are available to offset a liability, the earlier | ||||||
22 | credit shall be applied first. This Section is exempt from the | ||||||
23 | provisions of Section 250 of this Act. | ||||||
24 | (i) Each employer with 50 or fewer full-time equivalent | ||||||
25 | employees during the reporting period may claim a credit | ||||||
26 | against the payments due under this Section for each qualified |
| |||||||
| |||||||
1 | employee in an amount equal to the maximum credit allowable. | ||||||
2 | The credit may be taken against payments due for reporting | ||||||
3 | periods that begin on or after January 1, 2020, and end on or | ||||||
4 | before December 31, 2027. An employer may not claim a credit | ||||||
5 | for an employee who has worked fewer than 90 consecutive days | ||||||
6 | immediately preceding the reporting period; however, such | ||||||
7 | credits may accrue during that 90-day period and be claimed | ||||||
8 | against payments under this Section for future reporting | ||||||
9 | periods after the employee has worked for the employer at | ||||||
10 | least 90 consecutive days. In no event may the credit exceed | ||||||
11 | the employer's liability for the reporting period. Each | ||||||
12 | employer who deducts and withholds or is required to deduct | ||||||
13 | and withhold tax under this Act and who retains income tax | ||||||
14 | withholdings under this subsection must make a return with | ||||||
15 | respect to such taxes and retained amounts in the form and | ||||||
16 | manner that the Department, by rule, requires and pay to the | ||||||
17 | Department or to a depositary designated by the Department | ||||||
18 | those withheld taxes not retained by the employer. | ||||||
19 | For each reporting period, the employer may not claim a | ||||||
20 | credit or credits for more employees than the number of | ||||||
21 | employees making less than the minimum or reduced wage for the | ||||||
22 | current calendar year during the last reporting period of the | ||||||
23 | preceding calendar year. Notwithstanding any other provision | ||||||
24 | of this subsection, an employer shall not be eligible for | ||||||
25 | credits for a reporting period unless the average wage paid by | ||||||
26 | the employer per employee for all employees making less than |
| |||||||
| |||||||
1 | $55,000 during the reporting period is greater than the | ||||||
2 | average wage paid by the employer per employee for all | ||||||
3 | employees making less than $55,000 during the same reporting | ||||||
4 | period of the prior calendar year. | ||||||
5 | For purposes of this subsection (i): | ||||||
6 | "Compensation paid in Illinois" has the meaning ascribed | ||||||
7 | to that term under Section 304(a)(2)(B) of this Act. | ||||||
8 | "Employer" and "employee" have the meaning ascribed to | ||||||
9 | those terms in the Minimum Wage Law, except that "employee" | ||||||
10 | also includes employees who work for an employer with fewer | ||||||
11 | than 4 employees. Employers that operate more than one | ||||||
12 | establishment pursuant to a franchise agreement or that | ||||||
13 | constitute members of a unitary business group shall aggregate | ||||||
14 | their employees for purposes of determining eligibility for | ||||||
15 | the credit. | ||||||
16 | "Full-time equivalent employees" means the ratio of the | ||||||
17 | number of paid hours during the reporting period and the | ||||||
18 | number of working hours in that period. | ||||||
19 | "Maximum credit" means the percentage listed below of the | ||||||
20 | difference between the amount of compensation paid in Illinois | ||||||
21 | to employees who are paid not more than the required minimum | ||||||
22 | wage reduced by the amount of compensation paid in Illinois to | ||||||
23 | employees who were paid less than the current required minimum | ||||||
24 | wage during the reporting period prior to each increase in the | ||||||
25 | required minimum wage on January 1. If an employer pays an | ||||||
26 | employee more than the required minimum wage and that employee |
| |||||||
| |||||||
1 | previously earned less than the required minimum wage, the | ||||||
2 | employer may include the portion that does not exceed the | ||||||
3 | required minimum wage as compensation paid in Illinois to | ||||||
4 | employees who are paid not more than the required minimum | ||||||
5 | wage. | ||||||
6 | (1) 25% for reporting periods beginning on or after | ||||||
7 | January 1, 2020 and ending on or before December 31, 2020; | ||||||
8 | (2) 21% for reporting periods beginning on or after | ||||||
9 | January 1, 2021 and ending on or before December 31, 2021; | ||||||
10 | (3) 17% for reporting periods beginning on or after | ||||||
11 | January 1, 2022 and ending on or before December 31, 2022; | ||||||
12 | (4) 13% for reporting periods beginning on or after | ||||||
13 | January 1, 2023 and ending on or before December 31, 2023; | ||||||
14 | (5) 9% for reporting periods beginning on or after | ||||||
15 | January 1, 2024 and ending on or before December 31, 2024; | ||||||
16 | (6) 5% for reporting periods beginning on or after | ||||||
17 | January 1, 2025 and ending on or before December 31, 2025. | ||||||
18 | The amount computed under this subsection may continue to | ||||||
19 | be claimed for reporting periods beginning on or after January | ||||||
20 | 1, 2026 and: | ||||||
21 | (A) ending on or before December 31, 2026 for | ||||||
22 | employers with more than 5 employees; or | ||||||
23 | (B) ending on or before December 31, 2027 for | ||||||
24 | employers with no more than 5 employees. | ||||||
25 | "Qualified employee" means an employee who is paid not | ||||||
26 | more than the required minimum wage and has an average wage |
| |||||||
| |||||||
1 | paid per hour by the employer during the reporting period | ||||||
2 | equal to or greater than his or her average wage paid per hour | ||||||
3 | by the employer during each reporting period for the | ||||||
4 | immediately preceding 12 months. A new qualified employee is | ||||||
5 | deemed to have earned the required minimum wage in the | ||||||
6 | preceding reporting period. | ||||||
7 | "Reporting period" means the quarter for which a return is | ||||||
8 | required to be filed under subsection (b) of this Section. | ||||||
9 | (j) For reporting periods beginning on or after January 1, | ||||||
10 | 2023, if a private employer grants all of its employees the | ||||||
11 | option of taking a paid leave of absence of at least 30 days | ||||||
12 | for the purpose of serving as an organ donor or bone marrow | ||||||
13 | donor, then the private employer may take a credit against the | ||||||
14 | payments due under this Section in an amount equal to the | ||||||
15 | amount withheld under this Section with respect to wages paid | ||||||
16 | while the employee is on organ donation leave, not to exceed | ||||||
17 | $1,000 in withholdings for each employee who takes organ | ||||||
18 | donation leave. To be eligible for the credit, such a leave of | ||||||
19 | absence must be taken without loss of pay, vacation time,
| ||||||
20 | compensatory time, personal days, or sick time for at least | ||||||
21 | the first 30 days of the leave of absence. The private employer | ||||||
22 | shall adopt rules governing organ donation leave, including | ||||||
23 | rules that (i) establish conditions and procedures for | ||||||
24 | requesting and approving leave and (ii) require medical | ||||||
25 | documentation of the proposed organ or bone marrow donation | ||||||
26 | before leave is approved by the private employer. A private |
| |||||||
| |||||||
1 | employer must provide, in the manner required by the | ||||||
2 | Department, documentation from the employee's medical | ||||||
3 | provider, which the private employer receives from the | ||||||
4 | employee, that verifies the employee's organ donation. The | ||||||
5 | private employer must also provide, in the manner required by | ||||||
6 | the Department, documentation that shows that a qualifying | ||||||
7 | organ donor leave policy was in place and offered to all | ||||||
8 | qualifying employees at the time the leave was taken. For the | ||||||
9 | private employer to receive the tax credit, the employee | ||||||
10 | taking organ donor leave must allow for the applicable medical | ||||||
11 | records to be disclosed to the Department. If the private | ||||||
12 | employer cannot provide the required documentation to the | ||||||
13 | Department, then the private employer is ineligible for the | ||||||
14 | credit under this Section. A private employer must also | ||||||
15 | provide, in the form required by the Department, any | ||||||
16 | additional documentation or information required by the | ||||||
17 | Department to administer the credit under this Section. The | ||||||
18 | credit under this subsection (j) shall be taken within one | ||||||
19 | year after the date upon which the organ donation leave | ||||||
20 | begins. If the leave taken spans into a second tax year, the | ||||||
21 | employer qualifies for the allowable credit in the later of | ||||||
22 | the 2 years. If the amount of credit exceeds the tax liability | ||||||
23 | for the year, the excess may be carried and applied to the tax | ||||||
24 | liability for the 3 taxable years following the excess credit | ||||||
25 | year. The tax credit shall be applied to the earliest year for | ||||||
26 | which there is a tax liability. If there are credits for more |
| |||||||
| |||||||
1 | than one year that are available to offset liability, the | ||||||
2 | earlier credit shall be applied first. | ||||||
3 | Nothing in this subsection (j) prohibits a private | ||||||
4 | employer from providing an unpaid leave of absence to its | ||||||
5 | employees for the purpose of serving as an organ donor or bone | ||||||
6 | marrow donor; however, if the employer's policy provides for | ||||||
7 | fewer than 30 days of paid leave for organ or bone marrow | ||||||
8 | donation, then the employer shall not be eligible for the | ||||||
9 | credit under this Section. | ||||||
10 | As used in this subsection (j): | ||||||
11 | "Organ" means any biological tissue of the human body that | ||||||
12 | may be donated by a living donor, including, but not limited | ||||||
13 | to, the kidney, liver, lung, pancreas, intestine, bone, skin, | ||||||
14 | or any subpart of those organs. | ||||||
15 | "Organ donor" means a person from whose body an organ is | ||||||
16 | taken to be transferred to the body of another person. | ||||||
17 | "Private employer" means a sole proprietorship, | ||||||
18 | corporation, partnership, limited liability company, or other | ||||||
19 | entity with one or more employees. "Private employer" does not | ||||||
20 | include a municipality, county, State agency, or other public | ||||||
21 | employer. | ||||||
22 | This subsection (j) is exempt from the provisions of | ||||||
23 | Section 250 of this Act. | ||||||
24 | (Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21; | ||||||
25 | 102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700, | ||||||
26 | Article 110, Section 110-905, eff. 4-19-22; revised 6-1-22.) |
| |||||||
| |||||||
1 | Section 925. The Economic Development for a Growing | ||||||
2 | Economy Tax Credit Act is amended by changing Sections 5-5, | ||||||
3 | 5-25, and 5-50 as follows:
| ||||||
4 | (35 ILCS 10/5-5)
| ||||||
5 | Sec. 5-5. Definitions. As used in this Act:
| ||||||
6 | "Agreement" means the Agreement between a Taxpayer and the | ||||||
7 | Department under
the provisions of Section 5-50 of this Act.
| ||||||
8 | "Applicant" means a Taxpayer that is operating a business | ||||||
9 | located or that
the Taxpayer plans to locate within the State | ||||||
10 | of Illinois and that is engaged
in interstate or intrastate | ||||||
11 | commerce for the purpose of manufacturing,
processing, | ||||||
12 | assembling, warehousing, or distributing products, conducting
| ||||||
13 | research and development, providing tourism services, or | ||||||
14 | providing services
in interstate commerce, office industries, | ||||||
15 | or agricultural processing, but
excluding retail, retail food, | ||||||
16 | health, or professional services.
"Applicant" does not include | ||||||
17 | a Taxpayer who closes or
substantially reduces an operation at | ||||||
18 | one location in the State and relocates
substantially the same | ||||||
19 | operation to another location in the State. This does
not | ||||||
20 | prohibit a Taxpayer from expanding its operations at another | ||||||
21 | location in
the State, provided that existing operations of a | ||||||
22 | similar nature located within
the State are not closed or | ||||||
23 | substantially reduced. This also does not prohibit
a Taxpayer | ||||||
24 | from moving its operations from one location in the State to |
| |||||||
| |||||||
1 | another
location in the State for the purpose of expanding the | ||||||
2 | operation provided that
the Department determines that | ||||||
3 | expansion cannot reasonably be accommodated
within the | ||||||
4 | municipality in which the business is located, or in the case | ||||||
5 | of a
business located in an incorporated area of the county, | ||||||
6 | within the county in
which the business is located, after | ||||||
7 | conferring with the chief elected
official of the municipality | ||||||
8 | or county and taking into consideration any
evidence offered | ||||||
9 | by the municipality or county regarding the ability to
| ||||||
10 | accommodate expansion within the municipality or county.
| ||||||
11 | "Credit" means the amount agreed to between the Department | ||||||
12 | and Applicant
under this Act, but not to exceed the lesser of: | ||||||
13 | (1) the sum of (i) 50% of the Incremental Income Tax | ||||||
14 | attributable to
New Employees at the Applicant's project and | ||||||
15 | (ii) 10% of the training costs of New Employees; or (2) 100% of | ||||||
16 | the Incremental Income Tax attributable to
New Employees at | ||||||
17 | the Applicant's project. However, if the project is located in | ||||||
18 | an underserved area, then the amount of the Credit may not | ||||||
19 | exceed the lesser of: (1) the sum of (i) 75% of the Incremental | ||||||
20 | Income Tax attributable to
New Employees at the Applicant's | ||||||
21 | project and (ii) 10% of the training costs of New Employees; or | ||||||
22 | (2) 100% of the Incremental Income Tax attributable to
New | ||||||
23 | Employees at the Applicant's project. If the project is not | ||||||
24 | located in an underserved area and the an Applicant agrees to | ||||||
25 | hire the required number of New Employees, then the maximum | ||||||
26 | amount of the Credit for that Applicant may be increased by an |
| |||||||
| |||||||
1 | amount not to exceed 25% of the Incremental Income Tax | ||||||
2 | attributable to retained employees at the Applicant's project ; | ||||||
3 | provided that, in order to receive the increase for retained | ||||||
4 | employees, the Applicant must provide the additional evidence | ||||||
5 | required under paragraph (3) of subsection (b) of Section | ||||||
6 | 5-25 . If the project is located in an underserved area and the | ||||||
7 | Applicant agrees to hire the required number of New Employees, | ||||||
8 | then the maximum amount of the credit for that Applicant may be | ||||||
9 | increased by an amount not to exceed 50% of the Incremental | ||||||
10 | Income Tax attributable to retained employees at the | ||||||
11 | Applicant's project.
| ||||||
12 | "Department" means the Department of Commerce and Economic | ||||||
13 | Opportunity.
| ||||||
14 | "Director" means the Director of Commerce and Economic | ||||||
15 | Opportunity.
| ||||||
16 | "Full-time Employee" means an individual who is employed | ||||||
17 | for consideration
for at least 35 hours each week or who | ||||||
18 | renders any other standard of service
generally accepted by | ||||||
19 | industry custom or practice as full-time employment. An | ||||||
20 | individual for whom a W-2 is issued by a Professional Employer | ||||||
21 | Organization (PEO) is a full-time employee if employed in the | ||||||
22 | service of the Applicant for consideration for at least 35 | ||||||
23 | hours each week or who renders any other standard of service | ||||||
24 | generally accepted by industry custom or practice as full-time | ||||||
25 | employment to Applicant.
| ||||||
26 | "Incremental Income Tax" means the total amount withheld |
| |||||||
| |||||||
1 | during the taxable
year from the compensation of New Employees | ||||||
2 | and, if applicable, retained employees under Article 7 of the | ||||||
3 | Illinois
Income Tax Act arising from employment at a project | ||||||
4 | that is the subject of an
Agreement.
| ||||||
5 | "New Construction EDGE Agreement" means the Agreement | ||||||
6 | between a Taxpayer and the Department under the provisions of | ||||||
7 | Section 5-51 of this Act. | ||||||
8 | "New Construction EDGE Credit" means an amount agreed to | ||||||
9 | between the Department and the Applicant under this Act as | ||||||
10 | part of a New Construction EDGE Agreement that does not exceed | ||||||
11 | 50% of the Incremental Income Tax attributable to New | ||||||
12 | Construction EDGE Employees at the Applicant's project; | ||||||
13 | however, if the New Construction EDGE Project is located in an | ||||||
14 | underserved area, then the amount of the New Construction EDGE | ||||||
15 | Credit may not exceed 75% of the Incremental Income Tax | ||||||
16 | attributable to New Construction EDGE Employees at the | ||||||
17 | Applicant's New Construction EDGE Project. | ||||||
18 | "New Construction EDGE Employee" means a laborer or worker | ||||||
19 | who is employed by an Illinois contractor or subcontractor in | ||||||
20 | the actual construction work on the site of a New Construction | ||||||
21 | EDGE Project, pursuant to a New Construction EDGE Agreement. | ||||||
22 | "New Construction EDGE Incremental Income Tax" means the | ||||||
23 | total amount withheld during the taxable year from the | ||||||
24 | compensation of New Construction EDGE Employees. | ||||||
25 | "New Construction EDGE Project" means the building of a | ||||||
26 | Taxpayer's structure or building, or making improvements of |
| |||||||
| |||||||
1 | any kind to real property. "New Construction EDGE Project" | ||||||
2 | does not include the routine operation, routine repair, or | ||||||
3 | routine maintenance of existing structures, buildings, or real | ||||||
4 | property. | ||||||
5 | "New Employee" means:
| ||||||
6 | (a) A Full-time Employee first employed by a Taxpayer | ||||||
7 | in the project
that is the subject of an Agreement and who | ||||||
8 | is hired after the Taxpayer
enters into the tax credit | ||||||
9 | Agreement.
| ||||||
10 | (b) The term "New Employee" does not include:
| ||||||
11 | (1) an employee of the Taxpayer who performs a job | ||||||
12 | that was previously
performed by another employee, if | ||||||
13 | that job existed for at least 6
months before hiring | ||||||
14 | the employee;
| ||||||
15 | (2) an employee of the Taxpayer who was previously | ||||||
16 | employed in
Illinois by a Related Member of the | ||||||
17 | Taxpayer and whose employment was
shifted to the | ||||||
18 | Taxpayer after the Taxpayer entered into the tax | ||||||
19 | credit
Agreement; or
| ||||||
20 | (3) a child, grandchild, parent, or spouse, other | ||||||
21 | than a spouse who
is legally separated from the | ||||||
22 | individual, of any individual who has a direct
or an | ||||||
23 | indirect ownership interest of at least 5% in the | ||||||
24 | profits, capital, or
value of the Taxpayer.
| ||||||
25 | (c) Notwithstanding paragraph (1) of subsection (b), | ||||||
26 | an employee may be
considered a New Employee under the |
| |||||||
| |||||||
1 | Agreement if the employee performs a job
that was | ||||||
2 | previously performed by an employee who was:
| ||||||
3 | (1) treated under the Agreement as a New Employee; | ||||||
4 | and
| ||||||
5 | (2) promoted by the Taxpayer to another job.
| ||||||
6 | (d) Notwithstanding subsection (a), the Department may | ||||||
7 | award Credit to an
Applicant with respect to an employee | ||||||
8 | hired prior to the date of the Agreement
if:
| ||||||
9 | (1) the Applicant is in receipt of a letter from | ||||||
10 | the Department stating
an
intent to enter into a | ||||||
11 | credit Agreement;
| ||||||
12 | (2) the letter described in paragraph (1) is | ||||||
13 | issued by the
Department not later than 15 days after | ||||||
14 | the effective date of this Act; and
| ||||||
15 | (3) the employee was hired after the date the | ||||||
16 | letter described in
paragraph (1) was issued.
| ||||||
17 | "Noncompliance Date" means, in the case of a Taxpayer that | ||||||
18 | is not complying
with the requirements of the Agreement or the | ||||||
19 | provisions of this Act, the day
following the last date upon | ||||||
20 | which the Taxpayer was in compliance with the
requirements of | ||||||
21 | the Agreement and the provisions of this Act, as determined
by | ||||||
22 | the Director, pursuant to Section 5-65.
| ||||||
23 | "Pass Through Entity" means an entity that is exempt from | ||||||
24 | the tax under
subsection (b) or (c) of Section 205 of the | ||||||
25 | Illinois Income Tax Act.
| ||||||
26 | "Professional Employer Organization" (PEO) means an |
| |||||||
| |||||||
1 | employee leasing company, as defined in Section 206.1(A)(2) of | ||||||
2 | the Illinois Unemployment Insurance Act.
| ||||||
3 | "Related Member" means a person that, with respect to the | ||||||
4 | Taxpayer during
any portion of the taxable year, is any one of | ||||||
5 | the following:
| ||||||
6 | (1) An individual stockholder, if the stockholder and | ||||||
7 | the members of the
stockholder's family (as defined in | ||||||
8 | Section 318 of the Internal Revenue Code)
own directly, | ||||||
9 | indirectly, beneficially, or constructively, in the | ||||||
10 | aggregate,
at least 50% of the value of the Taxpayer's | ||||||
11 | outstanding stock.
| ||||||
12 | (2) A partnership, estate, or trust and any partner or | ||||||
13 | beneficiary,
if the partnership, estate, or trust, and its | ||||||
14 | partners or beneficiaries own
directly, indirectly, | ||||||
15 | beneficially, or constructively, in the aggregate, at
| ||||||
16 | least 50% of the profits, capital, stock, or value of the
| ||||||
17 | Taxpayer.
| ||||||
18 | (3) A corporation, and any party related to the | ||||||
19 | corporation in a manner
that would require an attribution | ||||||
20 | of stock from the corporation to the
party or from the | ||||||
21 | party to the corporation under the attribution rules
of | ||||||
22 | Section 318 of the Internal Revenue Code, if the Taxpayer | ||||||
23 | owns
directly, indirectly, beneficially, or constructively | ||||||
24 | at least
50% of the value of the corporation's outstanding | ||||||
25 | stock.
| ||||||
26 | (4) A corporation and any party related to that |
| |||||||
| |||||||
1 | corporation in a manner
that would require an attribution | ||||||
2 | of stock from the corporation to the party or
from the | ||||||
3 | party to the corporation under the attribution rules of | ||||||
4 | Section 318 of
the Internal Revenue Code, if the | ||||||
5 | corporation and all such related parties own
in the | ||||||
6 | aggregate at least 50% of the profits, capital, stock, or | ||||||
7 | value of the
Taxpayer.
| ||||||
8 | (5) A person to or from whom there is attribution of | ||||||
9 | stock ownership
in accordance with Section 1563(e) of the | ||||||
10 | Internal Revenue Code, except,
for purposes of determining | ||||||
11 | whether a person is a Related Member under
this paragraph, | ||||||
12 | 20% shall be substituted for 5% wherever 5% appears in
| ||||||
13 | Section 1563(e) of the Internal Revenue Code.
| ||||||
14 | "Startup taxpayer" means a corporation, partnership, or | ||||||
15 | other entity incorporated or organized no more than 5 years | ||||||
16 | before the filing of an application for an Agreement that has | ||||||
17 | never had any Illinois income tax liability, excluding any | ||||||
18 | Illinois income tax liability of a Related Member which shall | ||||||
19 | not be attributed to the startup taxpayer. | ||||||
20 | "Taxpayer" means an individual, corporation, partnership, | ||||||
21 | or other entity
that has any Illinois Income Tax liability.
| ||||||
22 | Until July 1, 2022, "underserved area" means a geographic | ||||||
23 | area that meets one or more of the following conditions: | ||||||
24 | (1) the area has a poverty rate of at least 20% | ||||||
25 | according to the latest federal decennial census; | ||||||
26 | (2) 75% or more of the children in the area |
| |||||||
| |||||||
1 | participate in the federal free lunch program according to | ||||||
2 | reported statistics from the State Board of Education; | ||||||
3 | (3) at least 20% of the households in the area receive | ||||||
4 | assistance under the Supplemental Nutrition Assistance | ||||||
5 | Program (SNAP); or | ||||||
6 | (4) the area has
an average unemployment rate, as | ||||||
7 | determined by the Illinois Department of
Employment | ||||||
8 | Security, that is more than 120% of the national | ||||||
9 | unemployment average, as
determined by the U.S. Department | ||||||
10 | of Labor, for a period of at least 2 consecutive calendar | ||||||
11 | years preceding the date of the application. | ||||||
12 | On and after July 1, 2022, "underserved area" means a | ||||||
13 | geographic area that meets one or more of the following | ||||||
14 | conditions: | ||||||
15 | (1) the area has a poverty rate of at least 20% | ||||||
16 | according to the latest American Community Survey; | ||||||
17 | (2) 35% or more of the families with children in the | ||||||
18 | area are living below 130% of the poverty line, according | ||||||
19 | to the latest American Community Survey; | ||||||
20 | (3) at least 20% of the households in the area receive | ||||||
21 | assistance under the Supplemental Nutrition Assistance | ||||||
22 | Program (SNAP); or | ||||||
23 | (4) the area has an average unemployment rate, as | ||||||
24 | determined by the Illinois Department of Employment | ||||||
25 | Security, that is more than 120% of the national | ||||||
26 | unemployment average, as determined by the U.S. Department |
| |||||||
| |||||||
1 | of Labor, for a period of at least 2 consecutive calendar | ||||||
2 | years preceding the date of the application. | ||||||
3 | (Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22; | ||||||
4 | 102-700, eff. 4-19-22.)
| ||||||
5 | (35 ILCS 10/5-25)
| ||||||
6 | Sec. 5-25. Review of Application.
| ||||||
7 | (a) (Blank).
| ||||||
8 | (b) The Department shall determine which projects will | ||||||
9 | benefit the State. In making its recommendation that
an | ||||||
10 | Applicant's application for Credit should or should not be | ||||||
11 | accepted, which
shall occur
within a reasonable time frame
as | ||||||
12 | determined by the nature of the application, the Department | ||||||
13 | shall determine
that
all the following conditions
exist:
| ||||||
14 | (1) The Applicant's project intends, as required by | ||||||
15 | subsection (b) of
Section 5-20 to make
the required | ||||||
16 | investment in the State and intends to hire the required
| ||||||
17 | number of
New Employees in Illinois as a result of that | ||||||
18 | project.
| ||||||
19 | (2) The Applicant's project is economically sound and | ||||||
20 | will benefit the
people of the State of
Illinois by | ||||||
21 | increasing opportunities for employment and strengthen the | ||||||
22 | economy
of Illinois.
| ||||||
23 | (3) The Applicant has certified that That , if not for | ||||||
24 | the Credit, the project would not occur in Illinois ,
which | ||||||
25 | may be demonstrated
by evidence that receipt of the Credit |
| |||||||
| |||||||
1 | is essential to the Applicant's decision to create new | ||||||
2 | jobs in the State, such as the magnitude of the cost | ||||||
3 | differential between Illinois and a competing State; in | ||||||
4 | addition, if the Applicant is seeking an increase in the | ||||||
5 | maximum amount of the Credit for retained employees, the | ||||||
6 | Applicant must provide evidence the Applicant has
| ||||||
7 | multi-state
location options and
could reasonably and | ||||||
8 | efficiently locate outside of the State or demonstrate
| ||||||
9 | that at least one other
state is being considered for the | ||||||
10 | project .
| ||||||
11 | (4) A cost differential is identified, using best | ||||||
12 | available
data, in the projected costs for the Applicant's | ||||||
13 | project compared to
the costs in the competing state, | ||||||
14 | including the impact of the competing
state's incentive | ||||||
15 | programs. The competing state's incentive
programs shall | ||||||
16 | include state, local, private, and federal funds
| ||||||
17 | available. This paragraph (4) applies only to agreements | ||||||
18 | entered into before the effective date of this amendatory | ||||||
19 | Act of the 102nd General Assembly.
| ||||||
20 | (5) The political subdivisions affected by the project | ||||||
21 | have
committed local incentives with respect to the | ||||||
22 | project, considering local
ability to assist.
| ||||||
23 | (6) Awarding the Credit will result in an overall | ||||||
24 | positive fiscal
impact to the State, as certified by the | ||||||
25 | Department using
the best
available data.
| ||||||
26 | (7) The Credit is not prohibited by Section 5-35 of |
| |||||||
| |||||||
1 | this Act.
| ||||||
2 | (Source: P.A. 102-330, eff. 1-1-22 .)
| ||||||
3 | (35 ILCS 10/5-50)
| ||||||
4 | Sec. 5-50. Contents of Agreements with Applicants. The | ||||||
5 | Department shall
enter into an Agreement with an
Applicant | ||||||
6 | that is awarded a Credit under this Act. The Agreement
must | ||||||
7 | include all of the following:
| ||||||
8 | (1) A detailed description of the project that is the | ||||||
9 | subject of the
Agreement, including the location and | ||||||
10 | amount of the investment and jobs created
or retained.
| ||||||
11 | (2) The duration of the Credit and the first taxable | ||||||
12 | year for which
the Credit may be claimed.
| ||||||
13 | (3) The Credit amount that will be allowed for each | ||||||
14 | taxable year.
| ||||||
15 | (4) A requirement that the Taxpayer shall maintain | ||||||
16 | operations at the
project location that shall be stated as | ||||||
17 | a minimum number of years not to
exceed 10.
| ||||||
18 | (5) A specific method for determining the number of | ||||||
19 | New Employees
employed during a taxable year.
| ||||||
20 | (6) A requirement that the Taxpayer shall annually | ||||||
21 | report to the
Department the number of New Employees,
the | ||||||
22 | Incremental Income Tax
withheld in connection with the New | ||||||
23 | Employees, and any other
information the Director needs to | ||||||
24 | perform the Director's duties under
this Act.
| ||||||
25 | (7) A requirement that the Director is authorized to |
| |||||||
| |||||||
1 | verify with the
appropriate State agencies the amounts | ||||||
2 | reported under paragraph
(6), and after doing so shall | ||||||
3 | issue a certificate to the Taxpayer
stating that the | ||||||
4 | amounts have been verified.
| ||||||
5 | (8) A requirement that the Taxpayer shall provide | ||||||
6 | written
notification to the Director not more than 30
days | ||||||
7 | after the Taxpayer makes or receives a proposal that would
| ||||||
8 | transfer the Taxpayer's State tax liability obligations to | ||||||
9 | a
successor Taxpayer.
| ||||||
10 | (9) A detailed description of the number of New | ||||||
11 | Employees to be
hired, and the occupation and
payroll of | ||||||
12 | the full-time jobs to be created or retained as a result of | ||||||
13 | the
project.
| ||||||
14 | (10) The minimum investment the business enterprise | ||||||
15 | will make in
capital improvements, the time period
for | ||||||
16 | placing the property in service, and the designated | ||||||
17 | location in Illinois
for the investment.
| ||||||
18 | (11) A requirement that the Taxpayer shall provide | ||||||
19 | written
notification to the Director and
the Committee not | ||||||
20 | more than 30 days after the Taxpayer determines
that the | ||||||
21 | minimum
job creation or retention, employment payroll, or | ||||||
22 | investment no longer is being
or will be achieved or
| ||||||
23 | maintained as set forth in the terms and conditions of the
| ||||||
24 | Agreement.
| ||||||
25 | (12) A provision that, if the total number of New | ||||||
26 | Employees falls
below a specified level, the
allowance of |
| |||||||
| |||||||
1 | Credit shall be suspended until the number of New
| ||||||
2 | Employees equals or exceeds
the Agreement amount.
| ||||||
3 | (13) A detailed description of the items for which the | ||||||
4 | costs incurred by
the Taxpayer will be included
in the | ||||||
5 | limitation on the Credit provided in Section 5-30.
| ||||||
6 | (13.5) A provision that, if the Taxpayer never meets | ||||||
7 | either the investment or job creation and retention | ||||||
8 | requirements specified in the Agreement during the entire | ||||||
9 | 5-year period beginning on the effective date of first day | ||||||
10 | of the first taxable year in which the Agreement is | ||||||
11 | executed and ending 5 years after the effective date of | ||||||
12 | the Agreement on the last day of the fifth taxable year | ||||||
13 | after the Agreement is executed , then the Agreement is | ||||||
14 | automatically terminated on the last day of the fifth | ||||||
15 | taxable year after the Agreement is executed and the | ||||||
16 | Taxpayer is not entitled to the award of any credits for | ||||||
17 | any of that 5-year period. | ||||||
18 | (13.7) A provision specifying that, if the Taxpayer | ||||||
19 | ceases principal operations with the intent to shut down | ||||||
20 | the project in the State permanently during the term of | ||||||
21 | the Agreement, then the entire credit amount awarded to | ||||||
22 | the Taxpayer prior to the date the Taxpayer ceases | ||||||
23 | principal operations shall be returned to the Department | ||||||
24 | and shall be reallocated to the local workforce investment | ||||||
25 | area in which the project was located. | ||||||
26 | (14) Any other performance conditions or contract |
| |||||||
| |||||||
1 | provisions as the
Department determines are
appropriate.
| ||||||
2 | The Department shall post on its website the terms of each | ||||||
3 | Agreement entered into under this Act on or after the | ||||||
4 | effective date of this amendatory Act of the 97th General | ||||||
5 | Assembly. Such information shall be posted within 10 days | ||||||
6 | after entering into the Agreement and must include the | ||||||
7 | following: | ||||||
8 | (1) the name of the recipient business; | ||||||
9 | (2) the location of the project; | ||||||
10 | (3) the estimated value of the credit; | ||||||
11 | (4) the number of new jobs and, if applicable, | ||||||
12 | retained jobs pledged as a result of the project; and | ||||||
13 | (5) whether or not the project is located in an | ||||||
14 | underserved area. | ||||||
15 | (Source: P.A. 100-511, eff. 9-18-17.)
| ||||||
16 | Section 930. The Film
Production Services Tax Credit Act | ||||||
17 | of 2008 is amended by changing Sections 10 and 42 as follows: | ||||||
18 | (35 ILCS 16/10)
| ||||||
19 | Sec. 10. Definitions. As used in this Act:
| ||||||
20 | "Accredited production" means: (i) for productions | ||||||
21 | commencing before May 1, 2006, a film, video, or television | ||||||
22 | production that
has been certified by the Department in which | ||||||
23 | the aggregate Illinois labor
expenditures
included in the cost | ||||||
24 | of the production, in the period that ends 12 months after
the |
| |||||||
| |||||||
1 | time principal filming or taping of the production began, | ||||||
2 | exceed $100,000
for productions of 30 minutes or longer, or | ||||||
3 | $50,000 for productions of less
than 30
minutes; and (ii) for | ||||||
4 | productions commencing on or after May 1, 2006, a film, video, | ||||||
5 | or television production that has been certified by the | ||||||
6 | Department in which the Illinois production spending included | ||||||
7 | in the cost of production in the period that ends 12 months | ||||||
8 | after the time principal filming or taping of the production | ||||||
9 | began exceeds $100,000 for productions of 30 minutes or longer | ||||||
10 | or exceeds $50,000 for productions of less than 30 minutes. | ||||||
11 | "Accredited production" does not include a production that:
| ||||||
12 | (1) is news, current events, or public programming, or | ||||||
13 | a program that
includes weather or market reports;
| ||||||
14 | (2) is a talk show;
| ||||||
15 | (3) is a production in respect of a game, | ||||||
16 | questionnaire, or contest;
| ||||||
17 | (4) is a sports event or activity;
| ||||||
18 | (5) is a gala presentation or awards show;
| ||||||
19 | (6) is a finished production that solicits funds;
| ||||||
20 | (7) is a production produced by a film production | ||||||
21 | company if records, as
required
by 18
U.S.C. 2257, are to | ||||||
22 | be maintained by that film production company with respect
| ||||||
23 | to any
performer portrayed in that single media or | ||||||
24 | multimedia program; or
| ||||||
25 | (8) is a production produced primarily for industrial, | ||||||
26 | corporate, or
institutional purposes.
|
| |||||||
| |||||||
1 | "Accredited animated production" means an accredited | ||||||
2 | production in which movement and characters' performances are | ||||||
3 | created using a frame-by-frame technique and a significant | ||||||
4 | number of major characters are animated. Motion capture by | ||||||
5 | itself is not an animation technique. | ||||||
6 | "Accredited production certificate" means a certificate | ||||||
7 | issued by the
Department certifying that the production is an | ||||||
8 | accredited production that
meets the guidelines of this Act.
| ||||||
9 | "Applicant" means a taxpayer that is a film production | ||||||
10 | company that is
operating or has operated an accredited | ||||||
11 | production located within the State of
Illinois and that
(i) | ||||||
12 | owns the copyright in the accredited production throughout the
| ||||||
13 | Illinois production period or (ii)
has contracted directly | ||||||
14 | with the owner of the copyright in the
accredited production
| ||||||
15 | or a person acting on behalf of the owner
to provide services | ||||||
16 | for the production, where the owner
of the copyright is not an | ||||||
17 | eligible production corporation.
| ||||||
18 | "Credit" means:
| ||||||
19 | (1) for an accredited production approved by the | ||||||
20 | Department on or before January 1, 2005 and commencing | ||||||
21 | before May 1, 2006, the amount equal to 25% of the Illinois | ||||||
22 | labor
expenditure approved by the Department.
The | ||||||
23 | applicant is deemed to have paid, on its balance due day | ||||||
24 | for the year, an
amount equal to 25% of its qualified | ||||||
25 | Illinois labor expenditure for the tax
year. For Illinois | ||||||
26 | labor expenditures generated by the employment of |
| |||||||
| |||||||
1 | residents of geographic areas of high poverty or high | ||||||
2 | unemployment, as determined by the Department, in an | ||||||
3 | accredited production commencing before May 1, 2006 and
| ||||||
4 | approved by the Department after January 1, 2005, the | ||||||
5 | applicant shall receive an enhanced credit of 10% in | ||||||
6 | addition to the 25% credit; and | ||||||
7 | (2) for an accredited production commencing on or | ||||||
8 | after May 1, 2006 and before January 1, 2009 , the amount | ||||||
9 | equal to: | ||||||
10 | (i) 20% of the Illinois production spending for | ||||||
11 | the taxable year; plus | ||||||
12 | (ii) 15% of the Illinois labor expenditures | ||||||
13 | generated by the employment of residents of geographic | ||||||
14 | areas of high poverty or high unemployment, as | ||||||
15 | determined by the Department; and
| ||||||
16 | (3) for an accredited production commencing on or | ||||||
17 | after January 1, 2009, the amount equal to: | ||||||
18 | (i) 30% of the Illinois production spending for | ||||||
19 | the taxable year; plus | ||||||
20 | (ii) 15% of the Illinois labor expenditures | ||||||
21 | generated by the employment of residents of geographic | ||||||
22 | areas of high poverty or high unemployment, as | ||||||
23 | determined by the Department. | ||||||
24 | "Department" means the Department of Commerce and Economic | ||||||
25 | Opportunity.
| ||||||
26 | "Director" means the Director of Commerce and Economic |
| |||||||
| |||||||
1 | Opportunity.
| ||||||
2 | "Illinois labor expenditure" means
salary or wages paid to | ||||||
3 | employees of the
applicant for services on the accredited
| ||||||
4 | production.
| ||||||
5 | To qualify as an Illinois labor expenditure, the | ||||||
6 | expenditure must be:
| ||||||
7 | (1) Reasonable in the circumstances.
| ||||||
8 | (2) Included in the federal income tax basis of the | ||||||
9 | property.
| ||||||
10 | (3) Incurred by the applicant for services on or after | ||||||
11 | January 1, 2004.
| ||||||
12 | (4) Incurred for the production stages of the | ||||||
13 | accredited production, from
the final
script stage to the | ||||||
14 | end of the post-production stage.
| ||||||
15 | (5) Limited to the first $25,000 of wages paid or | ||||||
16 | incurred to each
employee of a production commencing | ||||||
17 | before May 1, 2006 and the first $100,000 of wages paid or | ||||||
18 | incurred to each
employee of
a production commencing on or | ||||||
19 | after May 1, 2006 and prior to July 1, 2022. For | ||||||
20 | productions commencing on or after July 1, 2022, limited | ||||||
21 | to the first $500,000 of wages paid or incurred to each | ||||||
22 | eligible nonresident or resident employee of a production | ||||||
23 | company or loan out company that provides in-State | ||||||
24 | services to a production, whether those wages are paid or | ||||||
25 | incurred by the production company, loan out company, or | ||||||
26 | both, subject to withholding payments provided for in |
| |||||||
| |||||||
1 | Article 7 of the Illinois Income Tax Act. For purposes of | ||||||
2 | calculating Illinois labor expenditures for a television | ||||||
3 | series, the eligible nonresident wage limitations provided | ||||||
4 | under this subparagraph are applied to the entire season. | ||||||
5 | For the purpose of this paragraph (5), an eligible | ||||||
6 | nonresident is a nonresident whose wages qualify as an | ||||||
7 | Illinois labor expenditure under the provisions of | ||||||
8 | paragraph (9) that apply to that production.
| ||||||
9 | (6) For a production commencing before May 1, 2006, | ||||||
10 | exclusive of the salary or wages paid to or incurred for | ||||||
11 | the 2 highest
paid
employees of the production.
| ||||||
12 | (7) Directly attributable to the accredited | ||||||
13 | production.
| ||||||
14 | (8) (Blank).
| ||||||
15 | (9) Prior to July 1, 2022, paid to persons resident in | ||||||
16 | Illinois at the time the payments were
made.
For a | ||||||
17 | production commencing on or after July 1, 2022, paid to | ||||||
18 | persons resident in Illinois and nonresidents at the time | ||||||
19 | the payments were made. | ||||||
20 | For purposes of this subparagraph, if the production | ||||||
21 | is accredited by the Department before the effective date | ||||||
22 | of this amendatory Act of the 102nd General Assembly, only | ||||||
23 | wages paid to nonresidents working in the following | ||||||
24 | positions shall be considered Illinois labor expenditures: | ||||||
25 | Writer, Director, Director of Photography, Production | ||||||
26 | Designer, Costume Designer, Production Accountant, VFX |
| |||||||
| |||||||
1 | Supervisor, Editor, Composer, and Actor, subject to the | ||||||
2 | limitations set forth under this subparagraph. For an | ||||||
3 | accredited Illinois production spending of $25,000,000 or | ||||||
4 | less, no more than 2 nonresident actors' wages shall | ||||||
5 | qualify as an Illinois labor expenditure. For an | ||||||
6 | accredited production with Illinois production spending of | ||||||
7 | more than $25,000,000, no more than 4 nonresident actor's | ||||||
8 | wages shall qualify as Illinois labor expenditures.
| ||||||
9 | For purposes of this subparagraph, if the production | ||||||
10 | is accredited by the Department on or after the effective | ||||||
11 | date of this amendatory Act of the 102nd General Assembly, | ||||||
12 | wages paid to nonresidents shall qualify as Illinois labor | ||||||
13 | expenditures only under the following conditions: | ||||||
14 | (A) the nonresident must be employed in a | ||||||
15 | qualified position; | ||||||
16 | (B) for each of those accredited productions, the | ||||||
17 | wages of not more than 9 nonresidents who are employed | ||||||
18 | in a qualified position other than Actor shall qualify | ||||||
19 | as Illinois labor expenditures; | ||||||
20 | (C) for an accredited production with Illinois | ||||||
21 | production spending of $25,000,000 or less, no more | ||||||
22 | than 2 nonresident actors' wages shall qualify as | ||||||
23 | Illinois labor expenditures; and | ||||||
24 | (D) for an accredited production with Illinois | ||||||
25 | production spending of more than $25,000,000, no more | ||||||
26 | than 4 nonresident actors' wages shall qualify as |
| |||||||
| |||||||
1 | Illinois labor expenditures. | ||||||
2 | As used in this paragraph (9), "qualified position" | ||||||
3 | means: Writer, Director, Director of Photography, | ||||||
4 | Production Designer, Costume Designer, Production | ||||||
5 | Accountant, VFX Supervisor, Editor, Composer, or Actor. | ||||||
6 | (10) Paid for services rendered in Illinois.
| ||||||
7 | "Illinois production spending" means the expenses incurred | ||||||
8 | by the applicant for an accredited production, including, | ||||||
9 | without limitation, all of the following: | ||||||
10 | (1) expenses to purchase, from vendors within | ||||||
11 | Illinois, tangible personal property that is used in the | ||||||
12 | accredited production; | ||||||
13 | (2) expenses to acquire services, from vendors in | ||||||
14 | Illinois, for film production, editing, or processing; and | ||||||
15 | (3) for a production commencing before July 1, 2022, | ||||||
16 | the compensation, not to exceed $100,000 for any one | ||||||
17 | employee, for contractual or salaried employees who are | ||||||
18 | Illinois residents performing services with respect to the | ||||||
19 | accredited production. For a production commencing on or | ||||||
20 | after July 1, 2022, the compensation, not to exceed | ||||||
21 | $500,000 for any one employee, for contractual or salaried | ||||||
22 | employees who are Illinois residents or nonresident | ||||||
23 | employees, subject to the limitations set forth under | ||||||
24 | Section 10 of this Act. | ||||||
25 | "Loan out company" means a personal service corporation or | ||||||
26 | other entity that is under contract with the taxpayer to |
| |||||||
| |||||||
1 | provide specified individual personnel, such as artists, crew, | ||||||
2 | actors, producers, or directors for the performance of | ||||||
3 | services used directly in a production. "Loan out company" | ||||||
4 | does not include entities contracted with by the taxpayer to | ||||||
5 | provide goods or ancillary contractor services such as | ||||||
6 | catering, construction, trailers, equipment, or | ||||||
7 | transportation. | ||||||
8 | "Qualified production facility" means stage facilities in | ||||||
9 | the State in which television shows and films are or are | ||||||
10 | intended to be regularly produced and that contain at least | ||||||
11 | one sound stage of at least 15,000 square feet.
| ||||||
12 | Rulemaking authority to implement Public Act 95-1006, if | ||||||
13 | any, is conditioned on the rules being adopted in accordance | ||||||
14 | with all provisions of the Illinois Administrative Procedure | ||||||
15 | Act and all rules and procedures of the Joint Committee on | ||||||
16 | Administrative Rules; any purported rule not so adopted, for | ||||||
17 | whatever reason, is unauthorized. | ||||||
18 | (Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22.) | ||||||
19 | (35 ILCS 16/42) | ||||||
20 | Sec. 42. Sunset of credits. The application of credits | ||||||
21 | awarded pursuant to this Act shall be limited by a reasonable | ||||||
22 | and appropriate sunset date. A taxpayer shall not be awarded | ||||||
23 | any new credits pursuant to this Act for tax years beginning on | ||||||
24 | or after January 1, 2033 January 1, 2027 .
| ||||||
25 | (Source: P.A. 101-178, eff. 8-1-19; 102-700, eff. 4-19-22.)
|
| |||||||
| |||||||
1 | Section 935. The Manufacturing Illinois Chips for Real | ||||||
2 | Opportunity (MICRO) Act is amended by changing Sections | ||||||
3 | 110-15, 110-20, 110-30, and 110-40 as follows: | ||||||
4 | (35 ILCS 45/110-15)
| ||||||
5 | Sec. 110-15. Powers of the Department. The Department, in | ||||||
6 | addition to those powers granted under the Civil | ||||||
7 | Administrative Code of Illinois, is granted and shall have all | ||||||
8 | the powers necessary or convenient to administer the program | ||||||
9 | under this Act and to carry out and effectuate the purposes and | ||||||
10 | provisions of this Act, including, but not limited to, the | ||||||
11 | power and authority to: | ||||||
12 | (1) adopt rules deemed necessary and appropriate for | ||||||
13 | the administration of the program, the designation of | ||||||
14 | projects, and the awarding of credits; | ||||||
15 | (2) establish forms for applications, notifications, | ||||||
16 | contracts, or any other agreements and accept applications | ||||||
17 | at any time during the year; | ||||||
18 | (3) assist taxpayers pursuant to the provisions of | ||||||
19 | this Act and cooperate with taxpayers that are parties to | ||||||
20 | agreements under this Act to promote, foster, and support | ||||||
21 | economic development, capital investment, and job creation | ||||||
22 | or retention within the State; | ||||||
23 | (4) enter into agreements and memoranda of | ||||||
24 | understanding for participation of, and engage in |
| |||||||
| |||||||
1 | cooperation with, agencies of the federal government, | ||||||
2 | units of local government, universities, research | ||||||
3 | foundations or institutions, regional economic development | ||||||
4 | corporations, or other organizations to implement the | ||||||
5 | requirements and purposes of this Act; | ||||||
6 | (5) gather information and conduct inquiries, in the | ||||||
7 | manner and by the methods it deems desirable, including | ||||||
8 | without limitation, gathering information with respect to | ||||||
9 | applicants for the purpose of making any designations or | ||||||
10 | certifications necessary or desirable or to gather | ||||||
11 | information to assist the Department with any | ||||||
12 | recommendation or guidance in the furtherance of the | ||||||
13 | purposes of this Act; | ||||||
14 | (6) establish, negotiate and effectuate agreements and | ||||||
15 | any term, agreement, or other document with any person, | ||||||
16 | necessary or appropriate to accomplish the purposes of | ||||||
17 | this Act; and to consent, subject to the provisions of any | ||||||
18 | agreement with another party, to the modification or | ||||||
19 | restructuring of any agreement to which the Department is | ||||||
20 | a party; | ||||||
21 | (7) fix, determine, charge, and collect any premiums, | ||||||
22 | fees, charges, costs, and expenses from applicants, | ||||||
23 | including, without limitation, any application fees, | ||||||
24 | commitment fees, program fees, financing charges, or | ||||||
25 | publication fees as deemed appropriate to pay expenses | ||||||
26 | necessary or incident to the administration, staffing, or |
| |||||||
| |||||||
1 | operation in connection with the Department's activities | ||||||
2 | under this Act, or for preparation, implementation, and | ||||||
3 | enforcement of the terms of the agreement, or for | ||||||
4 | consultation, advisory and legal fees, and other costs; | ||||||
5 | however, all fees and expenses incident thereto shall be | ||||||
6 | the responsibility of the applicant; | ||||||
7 | (8) provide for sufficient personnel to permit | ||||||
8 | administration, staffing, operation, and related support | ||||||
9 | required to adequately discharge its duties and | ||||||
10 | responsibilities described in this Act from funds made | ||||||
11 | available through charges to applicants or from funds as | ||||||
12 | may be appropriated by the General Assembly for the | ||||||
13 | administration of this Act; | ||||||
14 | (9) require applicants, upon written request, to issue | ||||||
15 | any necessary authorization to the appropriate federal, | ||||||
16 | State, or local authority for the release of information | ||||||
17 | concerning a project being considered under the provisions | ||||||
18 | of this Act, with the information requested to include, | ||||||
19 | but not be limited to, financial reports, returns, or | ||||||
20 | records relating to the taxpayer or its project; | ||||||
21 | (10) require that a taxpayer shall at all times keep | ||||||
22 | proper books of record and account in accordance with | ||||||
23 | generally accepted accounting principles consistently | ||||||
24 | applied, with the books, records, or papers related to the | ||||||
25 | agreement in the custody or control of the taxpayer open | ||||||
26 | for reasonable Department inspection and audits, and |
| |||||||
| |||||||
1 | including, without limitation, the making of copies of the | ||||||
2 | books, records, or papers, and the inspection or appraisal | ||||||
3 | of any of the taxpayer or project assets; | ||||||
4 | (11) take whatever actions are necessary or | ||||||
5 | appropriate to protect the State's interest in the event | ||||||
6 | of bankruptcy, default, foreclosure, or noncompliance with | ||||||
7 | the terms and conditions of financial assistance or | ||||||
8 | participation required under this Act, including the power | ||||||
9 | to sell, dispose, lease, or rent, upon terms and | ||||||
10 | conditions determined by the Director to be appropriate, | ||||||
11 | real or personal property that the Department may receive | ||||||
12 | as a result of these actions ; and .
| ||||||
13 | (12) determine the conditions and process for renewal | ||||||
14 | of the Manufacturing Illinois Chips for Real Opportunity | ||||||
15 | incentives awarded under this Act in accordance with | ||||||
16 | Section 110-40 of this Act. | ||||||
17 | (Source: P.A. 102-700, eff. 4-19-22.) | ||||||
18 | (35 ILCS 45/110-20)
| ||||||
19 | Sec. 110-20. Manufacturing Illinois Chips for Real | ||||||
20 | Opportunity (MICRO) Program; project applications. | ||||||
21 | (a) The Manufacturing Illinois Chips for Real Opportunity | ||||||
22 | (MICRO) Program is hereby established and shall be | ||||||
23 | administered by the Department. The Program will provide | ||||||
24 | financial incentives to eligible semiconductor manufacturers | ||||||
25 | and microchip manufacturers. |
| |||||||
| |||||||
1 | (b) Any taxpayer planning a project to be located in | ||||||
2 | Illinois may request consideration for designation of its | ||||||
3 | project as a MICRO project, by formal written letter of | ||||||
4 | request or by formal application to the Department, in which | ||||||
5 | the applicant states its intent to make at least a specified | ||||||
6 | level of investment and intends to hire a specified number of | ||||||
7 | full-time employees at a designated location in Illinois. As | ||||||
8 | circumstances require, the Department shall require a formal | ||||||
9 | application from an applicant and a formal letter of request | ||||||
10 | for assistance. | ||||||
11 | (c) In order to qualify for credits under the program, an | ||||||
12 | applicant must: | ||||||
13 | (1) for a semiconductor manufacturer or microchip | ||||||
14 | manufacturer: | ||||||
15 | (A) make an investment of at least $1,500,000,000 | ||||||
16 | in capital improvements at the project site; | ||||||
17 | (B) to be placed in service within the State | ||||||
18 | within a 60-month period after approval of the | ||||||
19 | application; and | ||||||
20 | (C) create at least 500 new full-time employee | ||||||
21 | jobs; or | ||||||
22 | (2) for a semiconductor or microchip component parts | ||||||
23 | manufacturer: | ||||||
24 | (A) make an investment of at least $300,000,000 in | ||||||
25 | capital improvements at the project site; | ||||||
26 | (B) manufacture one or more parts that are |
| |||||||
| |||||||
1 | primarily used for the manufacture of semiconductors | ||||||
2 | or microchips; | ||||||
3 | (C) to be placed in service within the State | ||||||
4 | within a 60-month period after approval of the | ||||||
5 | application; and | ||||||
6 | (D) create at least 150 new full-time employee | ||||||
7 | jobs; or | ||||||
8 | (3) for a semiconductor manufacturer or microchip | ||||||
9 | manufacturer or a semiconductor or microchip component | ||||||
10 | parts manufacturer that does not quality under paragraph | ||||||
11 | (2) above: | ||||||
12 | (A) make an investment of at least $20,000,000 in | ||||||
13 | capital improvements at the project site; | ||||||
14 | (B) to be placed in service within the State | ||||||
15 | within a 48-month period after approval of the | ||||||
16 | application; and | ||||||
17 | (C) create at least 50 new full-time employee | ||||||
18 | jobs; or | ||||||
19 | (4) for a semiconductor manufacturer or microchip | ||||||
20 | manufacturer or a semiconductor or microchip component | ||||||
21 | parts manufacturer with existing operations in Illinois | ||||||
22 | that intends to convert or expand, in whole or in part, the | ||||||
23 | existing facility from traditional manufacturing to | ||||||
24 | semiconductor manufacturing or microchip manufacturing or | ||||||
25 | semiconductor or microchip component parts manufacturing: | ||||||
26 | (A) make an investment of at least $100,000,000 in |
| |||||||
| |||||||
1 | capital improvements at the project site; | ||||||
2 | (B) to be placed in service within the State | ||||||
3 | within a 60-month period after approval of the | ||||||
4 | application; and | ||||||
5 | (C) create the lesser of 75 new full-time employee | ||||||
6 | jobs or new full-time employee jobs equivalent to 10% | ||||||
7 | of the Statewide baseline applicable to the taxpayer | ||||||
8 | and any related member at the time of application. | ||||||
9 | (d) For any applicant creating the full-time employee jobs | ||||||
10 | noted in subsection (c), those jobs must have a total | ||||||
11 | compensation equal to or greater than 120% of the average wage | ||||||
12 | paid to full-time employees in the county where the project is | ||||||
13 | located, as determined by the Department U.S. Bureau of Labor | ||||||
14 | Statistics . | ||||||
15 | (e) Each applicant must outline its hiring plan and | ||||||
16 | commitment to recruit and hire full-time employee positions at | ||||||
17 | the project site. The hiring plan may include a partnership | ||||||
18 | with an institution of higher education to provide | ||||||
19 | internships, including, but not limited to, internships | ||||||
20 | supported by the Clean Jobs Workforce Network Program, or | ||||||
21 | full-time permanent employment for students at the project | ||||||
22 | site. Additionally, the applicant may create or utilize | ||||||
23 | participants from apprenticeship programs that are approved by | ||||||
24 | and registered with the United States Department of Labor's | ||||||
25 | Bureau of Apprenticeship and Training. The Applicant may apply | ||||||
26 | for apprenticeship education expense credits in accordance |
| |||||||
| |||||||
1 | with the provisions set forth in 14 Ill. Admin. Code 522. Each | ||||||
2 | applicant is required to report annually, on or before April | ||||||
3 | 15, on the diversity of its workforce in accordance with | ||||||
4 | Section 110-50 of this Act. For existing facilities of | ||||||
5 | applicants under paragraph (3) of subsection (b) above, if the | ||||||
6 | taxpayer expects a reduction in force due to its transition to | ||||||
7 | manufacturing semiconductors, microchips, or semiconductor or | ||||||
8 | microchip component parts, the plan submitted under this | ||||||
9 | Section must outline the taxpayer's plan to assist with | ||||||
10 | retraining its workforce aligned with the taxpayer's adoption | ||||||
11 | of new technologies and anticipated efforts to retrain | ||||||
12 | employees through employment opportunities within the | ||||||
13 | taxpayer's workforce. | ||||||
14 | (f) A taxpayer may not enter into more than one agreement | ||||||
15 | under this Act with respect to a single address or location for | ||||||
16 | the same period of time. Also, a taxpayer may not enter into an | ||||||
17 | agreement under this Act with respect to a single address or | ||||||
18 | location for the same period of time for which the taxpayer | ||||||
19 | currently holds an active agreement under the Economic | ||||||
20 | Development for a Growing Economy Tax Credit Act. This | ||||||
21 | provision does not preclude the applicant from entering into | ||||||
22 | an additional agreement after the expiration or voluntary | ||||||
23 | termination of an earlier agreement under this Act or under | ||||||
24 | the Economic Development for a Growing Economy Tax Credit Act | ||||||
25 | to the extent that the taxpayer's application otherwise | ||||||
26 | satisfies the terms and conditions of this Act and is approved |
| |||||||
| |||||||
1 | by the Department. An applicant with an existing agreement | ||||||
2 | under the Economic Development for a Growing Economy Tax | ||||||
3 | Credit Act may submit an application for an agreement under | ||||||
4 | this Act after it terminates any existing agreement under the | ||||||
5 | Economic Development for a Growing Economy Tax Credit Act with | ||||||
6 | respect to the same address or location.
| ||||||
7 | (Source: P.A. 102-700, eff. 4-19-22.) | ||||||
8 | (35 ILCS 45/110-30)
| ||||||
9 | Sec. 110-30. Tax credit awards. | ||||||
10 | (a) Subject to the conditions set forth in this Act, a | ||||||
11 | taxpayer is entitled to a credit against the tax imposed | ||||||
12 | pursuant to subsections (a) and (b) of Section 201 of the | ||||||
13 | Illinois Income Tax Act for a taxable year beginning on or | ||||||
14 | after January 1, 2025 if the taxpayer is awarded a credit by | ||||||
15 | the Department in accordance with an agreement under this Act. | ||||||
16 | The Department has authority to award credits under this Act | ||||||
17 | on and after January 1, 2023. | ||||||
18 | (b) A taxpayer may receive a tax credit against the tax | ||||||
19 | imposed under subsections (a) and (b) of Section 201 of the | ||||||
20 | Illinois Income Tax Act, not to exceed the sum of (i) 75% of | ||||||
21 | the incremental income tax attributable to new employees at | ||||||
22 | the applicant's project and (ii) 10% of the training costs of | ||||||
23 | the new employees. If the project is located in an underserved | ||||||
24 | area or an energy transition area, then the amount of the | ||||||
25 | credit may not exceed the sum of (i) 100% of the incremental |
| |||||||
| |||||||
1 | income tax attributable to new employees at the applicant's | ||||||
2 | project; and (ii) 10% of the training costs of the new | ||||||
3 | employees. The percentage of training costs includable in the | ||||||
4 | calculation may be increased by an additional 15% for training | ||||||
5 | costs associated with new employees that are recent (2 years | ||||||
6 | or less) graduates, certificate holders, or credential | ||||||
7 | recipients from an institution of higher education in | ||||||
8 | Illinois, or, if the training is provided by an institution of | ||||||
9 | higher education in Illinois, the Clean Jobs Workforce Network | ||||||
10 | Program, or an apprenticeship and training program located in | ||||||
11 | Illinois and approved by and registered with the United States | ||||||
12 | Department of Labor's Bureau of Apprenticeship and Training. | ||||||
13 | An applicant is also eligible for a training credit that shall | ||||||
14 | not exceed 10% of the training costs of retained employees for | ||||||
15 | the purpose of upskilling to meet the operational needs of the | ||||||
16 | applicant or the project. The percentage of training costs | ||||||
17 | includable in the calculation shall not exceed a total of 25%. | ||||||
18 | If an applicant agrees to hire the required number of new | ||||||
19 | employees, then the maximum amount of the credit for that | ||||||
20 | applicant may be increased by an amount not to exceed 75% 25% | ||||||
21 | of the incremental income tax attributable to retained | ||||||
22 | employees at the applicant's project; provided that, in order | ||||||
23 | to receive the increase for retained employees, the applicant | ||||||
24 | must, if applicable, meet or exceed the statewide baseline. If | ||||||
25 | the Project is in an underserved area or an energy transition | ||||||
26 | area, the maximum amount of the credit attributable to |
| |||||||
| |||||||
1 | retained employees for the applicant may be increased to an | ||||||
2 | amount not to exceed 100% 50% of the incremental income tax | ||||||
3 | attributable to retained employees at the applicant's project; | ||||||
4 | provided that, in order to receive the increase for retained | ||||||
5 | employees, the applicant must meet or exceed the statewide | ||||||
6 | baseline. Credits awarded may include credit earned for | ||||||
7 | incremental income tax withheld and training costs incurred by | ||||||
8 | the taxpayer beginning on or after January 1, 2023. Credits so | ||||||
9 | earned and certified by the Department may be applied against | ||||||
10 | the tax imposed by subsections (a) and (b) of Section 201 of | ||||||
11 | the Illinois Income Tax Act for taxable years beginning on or | ||||||
12 | after January 1, 2025. | ||||||
13 | (c) MICRO Construction Jobs Credit. For construction wages | ||||||
14 | associated with a project that qualified for a credit under | ||||||
15 | subsection (b), the taxpayer may receive a tax credit against | ||||||
16 | the tax imposed under subsections (a) and (b) of Section 201 of | ||||||
17 | the Illinois Income Tax Act in an amount equal to 50% of the | ||||||
18 | incremental income tax attributable to construction wages paid | ||||||
19 | in connection with construction of the project facilities, as | ||||||
20 | a jobs credit for workers hired to construct the project. | ||||||
21 | The MICRO Construction Jobs Credit may not exceed 75% of | ||||||
22 | the amount of the incremental income tax attributable to | ||||||
23 | construction wages paid in connection with construction of the | ||||||
24 | project facilities if the project is in an underserved area or | ||||||
25 | an energy transition area. | ||||||
26 | (d) The Department shall certify to the Department of |
| |||||||
| |||||||
1 | Revenue: (1) the identity of taxpayers that are eligible for | ||||||
2 | the MICRO Credit and MICRO Construction Jobs Credit; (2) the | ||||||
3 | amount of the MICRO Credits and MICRO Construction Jobs | ||||||
4 | Credits awarded in each calendar year; and (3) the amount of | ||||||
5 | the MICRO Credit and MICRO Construction Jobs Credit claimed in | ||||||
6 | each calendar year. MICRO Credits awarded may include credit | ||||||
7 | earned for incremental income tax withheld and training costs | ||||||
8 | incurred by the taxpayer beginning on or after January 1, | ||||||
9 | 2023. Credits so earned and certified by the Department may be | ||||||
10 | applied against the tax imposed by Section 201(a) and (b) of | ||||||
11 | the Illinois Income Tax Act for taxable years beginning on or | ||||||
12 | after January 1, 2025. | ||||||
13 | (e) Applicants seeking certification for a tax credits | ||||||
14 | related to the construction of the project facilities in the | ||||||
15 | State shall require the contractor to enter into a project | ||||||
16 | labor agreement that conforms with the Project Labor | ||||||
17 | Agreements Act. | ||||||
18 | (f) Any applicant issued a certificate for a tax credit or | ||||||
19 | tax exemption under this Act must annually report to the | ||||||
20 | Department the total project tax benefits received. Reports | ||||||
21 | are due no later than May 31 of each year and shall cover the | ||||||
22 | previous calendar year. The first report is for the 2023 | ||||||
23 | calendar year and is due no later than May 31, 2023. For | ||||||
24 | applicants issued a certificate of exemption under Section | ||||||
25 | 110-105 of this Act, the report shall be the same as required | ||||||
26 | for a High Impact Business under subsection (a-5) of Section |
| |||||||
| |||||||
1 | 8.1 of the Illinois Enterprise Zone Act. Each person required | ||||||
2 | to file a return under the Gas Revenue Tax Act, the Electricity | ||||||
3 | Excise Tax Act, or the Telecommunications Excise Tax Act shall | ||||||
4 | file a report on customers issued an exemption certificate | ||||||
5 | under Section 110-95 of this Act in the same manner and form as | ||||||
6 | they are required to report under subsection (b) of Section | ||||||
7 | 8.1 of the Illinois Enterprise Zone Act. | ||||||
8 | (g) Nothing in this Act shall prohibit an award of credit | ||||||
9 | to an applicant that uses a PEO if all other award criteria are | ||||||
10 | satisfied. | ||||||
11 | (h) With respect to any portion of a credit that is based | ||||||
12 | on the incremental income tax attributable to new employees or | ||||||
13 | retained employees, in lieu of the credit allowed under this | ||||||
14 | Act against the taxes imposed pursuant to subsections (a) and | ||||||
15 | (b) of Section 201 of the Illinois Income Tax Act, a taxpayer | ||||||
16 | that otherwise meets the criteria set forth in this Section, | ||||||
17 | the taxpayer may elect to claim the credit, on or after January | ||||||
18 | 1, 2025, against its obligation to pay over withholding under | ||||||
19 | Section 704A of the Illinois Income Tax Act. The election | ||||||
20 | shall be made in the manner prescribed by the Department of | ||||||
21 | Revenue and once made shall be irrevocable.
| ||||||
22 | (Source: P.A. 102-700, eff. 4-19-22.) | ||||||
23 | (35 ILCS 45/110-40)
| ||||||
24 | Sec. 110-40. Amount and duration of the credits; | ||||||
25 | limitation to amount of costs of specified items. The |
| |||||||
| |||||||
1 | Department shall determine the amount and duration of the | ||||||
2 | credit awarded under this Act, subject to the limitations set | ||||||
3 | forth in this Act. For a project that qualified under | ||||||
4 | paragraph (1), (2), or (4) of subsection (c) of Section | ||||||
5 | 110-20, the duration of the credit may not exceed 15 taxable | ||||||
6 | years , with an option to renew the agreement for no more than | ||||||
7 | one term not to exceed an additional 15 taxable years . For | ||||||
8 | project that qualified under paragraph (3) of subsection (c) | ||||||
9 | of Section 110-20, the duration of the credit may not exceed 10 | ||||||
10 | taxable years , with an option to renew the agreement for no | ||||||
11 | more than one term not to exceed an additional 10 taxable | ||||||
12 | years . The credit may be stated as a percentage of the | ||||||
13 | incremental income tax and training costs attributable to the | ||||||
14 | applicant's project and may include a fixed dollar limitation. | ||||||
15 | Nothing in this Section shall prevent the Department, in | ||||||
16 | consultation with the Department of Revenue, from adopting | ||||||
17 | rules to extend the sunset of any earned, existing, and unused | ||||||
18 | tax credit or credits a taxpayer may be in possession of.
| ||||||
19 | (Source: P.A. 102-700, eff. 4-19-22.) | ||||||
20 | Section 940. The Use Tax Act is amended by adding Section | ||||||
21 | 3-87 as follows: | ||||||
22 | (35 ILCS 105/3-87 new) | ||||||
23 | Sec. 3-87. Sustainable Aviation Fuel Purchase Credit. | ||||||
24 | (a) From June 1, 2023 through January 1, 2033, sustainable |
| |||||||
| |||||||
1 | aviation fuel sold to or used by an air carrier, certified by | ||||||
2 | the carrier to the Department to be used in Illinois, earns a | ||||||
3 | credit in the amount of $1.50 per gallon of sustainable | ||||||
4 | aviation fuel purchased. The credit earned shall be referred | ||||||
5 | to as the Sustainable Aviation Fuel Credit. | ||||||
6 | The purchaser of sustainable aviation fuel shall certify | ||||||
7 | to the seller of the aviation fuel that the purchaser is | ||||||
8 | satisfying all or part of its liability under the Use Tax Act | ||||||
9 | or the Service Use Tax Act that is due on the purchase of | ||||||
10 | aviation fuel by use of the sustainable aviation fuel purchase | ||||||
11 | credit. | ||||||
12 | The Sustainable Aviation Fuel Purchase Credit | ||||||
13 | certification must be dated and shall include the name and | ||||||
14 | address of the purchaser, the purchaser's registration number, | ||||||
15 | if registered, the credit being applied, and a statement that | ||||||
16 | the State use tax or service use tax liability is being | ||||||
17 | satisfied with the air carrier's accumulated sustainable | ||||||
18 | aviation fuel purchase credit. | ||||||
19 | Until July 1, 2033, on an annual basis, no credit may be | ||||||
20 | earned by an air carrier for soybean oil-derived sustainable | ||||||
21 | aviation fuel once air carriers in this State have | ||||||
22 | collectively purchased sustainable aviation fuel containing | ||||||
23 | 10,000,000 gallons of soybean oil feedstock. | ||||||
24 | A Sustainable Aviation Fuel Purchase Credit certification | ||||||
25 | provided by the air carrier may be used to satisfy the | ||||||
26 | retailer's or serviceman's liability on aviation fuel under |
| |||||||
| |||||||
1 | the Retailers' Occupation Tax Act or Service Occupation Tax | ||||||
2 | Act for the credit claimed. | ||||||
3 | (b) As used in this Section, "sustainable aviation fuel" | ||||||
4 | means liquid fuel that meets the criteria set forth in | ||||||
5 | subsections (d) and (e) of Section 40B of the federal Internal | ||||||
6 | Revenue Code of 1986 or: | ||||||
7 | (1) consists of synthesized hydrocarbons and meets the | ||||||
8 | requirements of: | ||||||
9 | (A) the American Society for Testing and Materials | ||||||
10 | International Standard D7566; or | ||||||
11 | (B) the Fischer-Tropsch provisions of American | ||||||
12 | Society for Testing and Materials International | ||||||
13 | Standard D1655, Annex A1; | ||||||
14 | (2) prior to June 1, 2028, is derived from biomass | ||||||
15 | resources, waste streams, renewable energy sources, or | ||||||
16 | gaseous carbon oxides, and beginning on June 1, 2028 is | ||||||
17 | derived from domestic biomass resources; | ||||||
18 | (3) is not derived from any palm derivatives; and | ||||||
19 | (4) achieves at least a 50% lifecycle greenhouse gas | ||||||
20 | emissions reduction in comparison with petroleum-based jet | ||||||
21 | fuel, as determined by a test that shows: | ||||||
22 | (A) that the fuel production pathway achieves at | ||||||
23 | least a 50% reduction of the aggregate attributional | ||||||
24 | core lifecycle emissions and the positive induced land | ||||||
25 | use change values under the lifecycle methodology for | ||||||
26 | sustainable aviation fuels adopted by the |
| |||||||
| |||||||
1 | International Civil Aviation Organization with the | ||||||
2 | agreement of the United States; or | ||||||
3 | (B) that the fuel production pathway achieves at | ||||||
4 | least a 50% reduction of the aggregate attributional | ||||||
5 | core lifecycle greenhouse gas emissions values | ||||||
6 | utilizing the most recent version of Argonne National | ||||||
7 | Laboratory's GREET model, inclusive of agricultural | ||||||
8 | practices and carbon capture and sequestration. | ||||||
9 | Section 950. The Service Use Tax Act is amended by adding | ||||||
10 | Section 3-72 as follows: | ||||||
11 | (35 ILCS 110/3-72 new) | ||||||
12 | Sec. 3-72. Sustainable Aviation Fuel Purchase Credit. | ||||||
13 | (a) From June 1, 2023 through January 1, 2033, sustainable | ||||||
14 | aviation fuel sold to or used by an air carrier, certified by | ||||||
15 | the carrier to the Department to be used in Illinois, earns a | ||||||
16 | credit in the amount of $1.50 per gallon of sustainable | ||||||
17 | aviation fuel purchased. The credit earned shall be referred | ||||||
18 | to as the Sustainable Aviation Fuel Credit. | ||||||
19 | The purchaser of sustainable aviation fuel shall certify | ||||||
20 | to the seller of the aviation fuel that the purchaser is | ||||||
21 | satisfying all or part of its liability under the Use Tax Act | ||||||
22 | or the Service Use Tax Act that is due on the purchase of | ||||||
23 | aviation fuel by use of the sustainable aviation fuel purchase | ||||||
24 | credit. |
| |||||||
| |||||||
1 | The Sustainable Aviation Fuel Purchase Credit | ||||||
2 | certification must be dated and shall include the name and | ||||||
3 | address of the purchaser, the purchaser's registration number, | ||||||
4 | if registered, the credit being applied, and a statement that | ||||||
5 | the State use tax or service use tax liability is being | ||||||
6 | satisfied with the air carrier's accumulated sustainable | ||||||
7 | aviation fuel purchase credit. | ||||||
8 | Until July 1, 2033, on an annual basis, no credit may be | ||||||
9 | earned by an air carrier for soybean oil-derived sustainable | ||||||
10 | aviation fuel once air carriers in this State have | ||||||
11 | collectively purchased sustainable aviation fuel containing | ||||||
12 | 10,000,000 gallons of soybean oil feedstock. | ||||||
13 | A Sustainable Aviation Fuel Purchase Credit certification | ||||||
14 | provided by the air carrier may be used to satisfy the | ||||||
15 | retailer's or serviceman's liability on aviation fuel under | ||||||
16 | the Retailers' Occupation Tax Act or Service Occupation Tax | ||||||
17 | Act for the credit claimed. | ||||||
18 | (b) As used in this Section, "sustainable aviation fuel" | ||||||
19 | means liquid fuel that meets the criteria set forth in | ||||||
20 | subsections (d) and (e) of Section 40B of the federal Internal | ||||||
21 | Revenue Code of 1986 or: | ||||||
22 | (1) consists of synthesized hydrocarbons and meets the | ||||||
23 | requirements of: | ||||||
24 | (A) the American Society for Testing and Materials | ||||||
25 | International Standard D7566; or | ||||||
26 | (B) the Fischer-Tropsch provisions of American |
| |||||||
| |||||||
1 | Society for Testing and Materials International | ||||||
2 | Standard D1655, Annex A1; | ||||||
3 | (2) prior to June 1, 2028, is derived from biomass | ||||||
4 | resources, waste streams, renewable energy sources, or | ||||||
5 | gaseous carbon oxides, and beginning on June 1, 2028 is | ||||||
6 | derived from domestic biomass resources; | ||||||
7 | (3) is not derived from any palm derivatives; and | ||||||
8 | (4) achieves at least a 50% lifecycle greenhouse gas | ||||||
9 | emissions reduction in comparison with petroleum-based jet | ||||||
10 | fuel, as determined by a test that shows: | ||||||
11 | (A) that the fuel production pathway achieves at | ||||||
12 | least a 50% reduction of the aggregate attributional | ||||||
13 | core lifecycle emissions and the positive induced land | ||||||
14 | use change values under the lifecycle methodology for | ||||||
15 | sustainable aviation fuels adopted by the | ||||||
16 | International Civil Aviation Organization with the | ||||||
17 | agreement of the United States; or | ||||||
18 | (B) that the fuel production pathway achieves at | ||||||
19 | least a 50% reduction of the aggregate attributional | ||||||
20 | core lifecycle greenhouse gas emissions values | ||||||
21 | utilizing the most recent version of Argonne National | ||||||
22 | Laboratory's GREET model, inclusive of agricultural | ||||||
23 | practices and carbon capture and sequestration. | ||||||
24 | Section 965. The Retailers' Occupation Tax Act is amended | ||||||
25 | by changing Section 5m as follows: |
| |||||||
| |||||||
1 | (35 ILCS 120/5m) | ||||||
2 | Sec. 5m. Building materials exemption; REV Illinois | ||||||
3 | projects electric vehicle manufacturer, electric vehicle | ||||||
4 | component parts manufacturer, and electric vehicle power | ||||||
5 | supply manufacturer . Each retailer who makes a sale of | ||||||
6 | building materials that will be incorporated into a real | ||||||
7 | estate in an electric vehicle manufacturing facility, an | ||||||
8 | electric vehicle component parts manufacturing facility, or an | ||||||
9 | electric vehicle power supply manufacturing facility REV | ||||||
10 | Illinois Project which meets the qualifications under | ||||||
11 | paragraphs (1), (2), or (4) of subsection (c) of Section 20 of | ||||||
12 | the Reimagining Electric Vehicles in Illinois Act for which a | ||||||
13 | certificate of exemption has been issued by the Department of | ||||||
14 | Commerce and Economic Opportunity under Section 105 of the | ||||||
15 | Reimagining Energy and Electric Vehicles in Illinois Act , may | ||||||
16 | deduct receipts from those such sales when calculating any | ||||||
17 | State or local use and occupation taxes. No retailer who is | ||||||
18 | eligible for the deduction or credit under Section 5k of this | ||||||
19 | Act related to enterprise zones or Section 5l of this Act | ||||||
20 | related to High Impact Businesses for a given sale shall be | ||||||
21 | eligible for the deduction or credit authorized under this | ||||||
22 | Section for that same sale. | ||||||
23 | In addition to any other requirements to document the | ||||||
24 | exemption allowed under this Section, the retailer must obtain | ||||||
25 | from the purchaser's REV Illinois Building Materials Exemption |
| |||||||
| |||||||
1 | certificate number issued by the Department. A construction | ||||||
2 | contractor or other entity shall not make tax-free purchases | ||||||
3 | under this Section unless it has an active REV Illinois | ||||||
4 | Building Materials Exemption Certificate issued by the | ||||||
5 | Department at the time of purchase. | ||||||
6 | Upon request from the certified manufacturer electric | ||||||
7 | vehicle manufacturer, electric vehicle component parts | ||||||
8 | manufacturer, or electric vehicle power supply manufacturer | ||||||
9 | certified by the Department of Commerce and Economic | ||||||
10 | Opportunity under REV Illinois Act , the Department shall issue | ||||||
11 | a REV Illinois Building Materials Exemption Certificate for | ||||||
12 | each construction contractor or other entity identified by the | ||||||
13 | certified manufacturer electric vehicle manufacturer, electric | ||||||
14 | vehicle component parts manufacturer, or electric vehicle | ||||||
15 | power supply manufacturer . The Department shall make the REV | ||||||
16 | Illinois Building Materials Exemption Certificates available | ||||||
17 | to each construction contractor or other entity identified by | ||||||
18 | the certified manufacturer and to the certified electric | ||||||
19 | vehicle manufacturer , electric vehicle component parts | ||||||
20 | manufacturer, or electric vehicle power supply manufacturer . | ||||||
21 | The request for REV Illinois Building Materials Exemption | ||||||
22 | Certificates under this Section from the certified electric | ||||||
23 | vehicle manufacturer, electric vehicle component parts | ||||||
24 | manufacturer, or electric vehicle power supply manufacturer to | ||||||
25 | the Department must include the following information: | ||||||
26 | (1) the name and address of the construction |
| |||||||
| |||||||
1 | contractor or other entity; | ||||||
2 | (2) the name and location or address of the building | ||||||
3 | project site; | ||||||
4 | (3) the estimated amount of the exemption for each | ||||||
5 | construction contractor or other entity for which a | ||||||
6 | request for a REV Illinois Building Materials Exemption | ||||||
7 | Certificate is made, based on a stated estimated average | ||||||
8 | tax rate and the percentage of the contract that consists | ||||||
9 | of materials; | ||||||
10 | (4) the period of time over which supplies for the | ||||||
11 | project are expected to be purchased; and | ||||||
12 | (5) other reasonable information as the Department may | ||||||
13 | require, including but not limited to FEIN numbers, to | ||||||
14 | determine if the contractor or other entity, or any | ||||||
15 | partner, or a corporate officer, and in the case of a | ||||||
16 | limited liability company, any manager or member, of the | ||||||
17 | construction contractor or other entity, is or has been | ||||||
18 | the owner, a partner, a corporate officer, and in the case | ||||||
19 | of a limited liability company, a manager or member, of a | ||||||
20 | person that is in default for moneys due to the Department | ||||||
21 | under this Act or any other tax or fee Act administered by | ||||||
22 | the Department. | ||||||
23 | The Department shall issue the REV Illinois Building | ||||||
24 | Materials Exemption Certificates within 3 business days after | ||||||
25 | receipt of the request from the certified electric vehicle | ||||||
26 | manufacturer , electric vehicle component parts manufacturer, |
| |||||||
| |||||||
1 | or electric vehicle power supply manufacturer . This | ||||||
2 | requirement does not apply in circumstances where the | ||||||
3 | Department, for reasonable cause, is unable to issue the | ||||||
4 | Exemption Certificate within 3 business days. The Department | ||||||
5 | may refuse to issue a REV Illinois Building Materials | ||||||
6 | Exemption Certificate if the owner, any partner, or a | ||||||
7 | corporate officer, and in the case of a limited liability | ||||||
8 | company, any manager or member, of the construction contractor | ||||||
9 | or other entity is or has been the owner, a partner, a | ||||||
10 | corporate officer, and in the case of a limited liability | ||||||
11 | company, a manager or member, of a person that is in default | ||||||
12 | for moneys due to the Department under this Act or any other | ||||||
13 | tax or fee Act administered by the Department. | ||||||
14 | The REV Illinois Building Materials Exemption Certificate | ||||||
15 | shall contain language stating that if the construction | ||||||
16 | contractor or other entity who is issued the Exemption | ||||||
17 | Certificate makes a tax-exempt purchase, as described in this | ||||||
18 | Section, that is not eligible for exemption under this Section | ||||||
19 | or allows another person to make a tax-exempt purchase, as | ||||||
20 | described in this Section, that is not eligible for exemption | ||||||
21 | under this Section, then, in addition to any tax or other | ||||||
22 | penalty imposed, the construction contractor or other entity | ||||||
23 | is subject to a penalty equal to the tax that would have been | ||||||
24 | paid by the retailer under this Act as well as any applicable | ||||||
25 | local retailers' occupation tax on the purchase that is not | ||||||
26 | eligible for the exemption. |
| |||||||
| |||||||
1 | The Department, in its discretion, may require that the | ||||||
2 | request for REV Illinois Building Materials Exemption | ||||||
3 | Certificates be submitted electronically. The Department may, | ||||||
4 | in its discretion, issue the Exemption Certificates | ||||||
5 | electronically. The REV Illinois Building Materials Exemption | ||||||
6 | Certificate number shall be designed in such a way that the | ||||||
7 | Department can identify from the unique number on the | ||||||
8 | Exemption Certificate issued to a given construction | ||||||
9 | contractor or other entity, the name of the REV Illinois | ||||||
10 | project designated electric vehicle manufacturing, electric | ||||||
11 | vehicle component parts manufacturing, or electric vehicle | ||||||
12 | power supply manufacturing site and the construction | ||||||
13 | contractor or other entity to whom the Exemption Certificate | ||||||
14 | is issued. The REV Illinois Building Materials Exemption | ||||||
15 | Certificate shall contain an expiration date, which shall be | ||||||
16 | no more than 5 years after the date of issuance. At the request | ||||||
17 | of the designated certified electric vehicle manufacturer, | ||||||
18 | electric vehicle component parts manufacturer, or electric | ||||||
19 | vehicle power supply manufacturer, the Department may renew a | ||||||
20 | REV Illinois Building Materials Exemption Certificate. After | ||||||
21 | the Department issues Exemption Certificates for a given REV | ||||||
22 | Illinois project designated electric vehicle manufacturing, | ||||||
23 | electric vehicle component parts manufacturing, or electric | ||||||
24 | vehicle power supply manufacturing site, the certified | ||||||
25 | electric vehicle manufacturer , electric vehicle component | ||||||
26 | parts manufacturer, or electric vehicle power supply |
| |||||||
| |||||||
1 | manufacturer may notify the Department of additional | ||||||
2 | construction contractors or other entities that are eligible | ||||||
3 | for a REV Illinois Building Materials Exemption Certificate. | ||||||
4 | Upon receiving such a notification by the certified electric | ||||||
5 | vehicle manufacturer, electric vehicle component parts | ||||||
6 | manufacturer, or electric vehicle power supply manufacturer | ||||||
7 | and subject to the other provisions of this Section, the | ||||||
8 | Department shall issue a REV Illinois Building Materials | ||||||
9 | Exemption Certificate to each additional construction | ||||||
10 | contractor or other entity so identified by the certified | ||||||
11 | electric vehicle manufacturer, electric vehicle component | ||||||
12 | parts manufacturer, or electric vehicle power supply | ||||||
13 | manufacturer . A certified electric vehicle manufacturer , | ||||||
14 | electric vehicle component parts manufacturer, or electric | ||||||
15 | vehicle power supply manufacturer may ask notify the | ||||||
16 | Department to rescind a REV Illinois Building Materials | ||||||
17 | Exemption Certificate previously issued by the Department to a | ||||||
18 | construction contractor or other entity working at that | ||||||
19 | certified manufacturer's REV Illinois project site if that REV | ||||||
20 | Illinois Building Materials Exemption Certificate but that has | ||||||
21 | not yet expired. Upon receiving such a request notification by | ||||||
22 | the certified electric vehicle manufacturer, electric vehicle | ||||||
23 | component parts manufacturer, or electric vehicle power supply | ||||||
24 | manufacturer and subject to the other provisions of this | ||||||
25 | Section, the Department shall issue the rescission of the REV | ||||||
26 | Illinois Building Materials Exemption Certificate to the |
| |||||||
| |||||||
1 | construction contractor or other entity identified by the | ||||||
2 | certified manufacturer electric vehicle manufacturer, electric | ||||||
3 | vehicle component parts manufacturer, or electric vehicle | ||||||
4 | power supply manufacturer and provide a copy of the rescission | ||||||
5 | to the construction contractor or other entity and to the | ||||||
6 | certified electric vehicle manufacturer, electric vehicle | ||||||
7 | component parts manufacturer, or electric vehicle power supply | ||||||
8 | manufacturer. | ||||||
9 | If the Department of Revenue determines that a | ||||||
10 | construction contractor or other entity that was issued an | ||||||
11 | Exemption Certificate under this Section made a tax-exempt | ||||||
12 | purchase, as described in this Section, that was not eligible | ||||||
13 | for exemption under this Section or allowed another person to | ||||||
14 | make a tax-exempt purchase, as described in this Section, that | ||||||
15 | was not eligible for exemption under this Section, then, in | ||||||
16 | addition to any tax or other penalty imposed, the construction | ||||||
17 | contractor or other entity is subject to a penalty equal to the | ||||||
18 | tax that would have been paid by the retailer under this Act as | ||||||
19 | well as any applicable local retailers' occupation tax on the | ||||||
20 | purchase that was not eligible for the exemption. | ||||||
21 | This Section is exempt from the provisions of Section | ||||||
22 | 2-70.
| ||||||
23 | As used in this Section, "certified manufacturer" means a | ||||||
24 | person certified by the Department of Commerce and Economic | ||||||
25 | Opportunity under Section 105 of the Reimagining Energy and | ||||||
26 | Vehicles in Illinois Act. |
| |||||||
| |||||||
1 | (Source: P.A. 102-669, eff. 11-16-21.) | ||||||
2 | Section 975. The Property Tax Code is amended by changing | ||||||
3 | Section 18-184.15 as follows: | ||||||
4 | (35 ILCS 200/18-184.15) | ||||||
5 | Sec. 18-184.15. REV Illinois project facilities for | ||||||
6 | electric vehicles, electric vehicle component parts, or | ||||||
7 | electric vehicle power supply equipment; abatement. Any taxing | ||||||
8 | district, upon a majority vote of its governing body, may, | ||||||
9 | after determination of the assessed value as set forth in this | ||||||
10 | Code, order the clerk of the appropriate municipality or | ||||||
11 | county to abate any portion of real property taxes otherwise | ||||||
12 | levied or extended by the taxing district on a REV Illinois | ||||||
13 | Project facility owned by an electric vehicle manufacturer, | ||||||
14 | electric vehicle component parts manufacturer, or an electric | ||||||
15 | vehicle power supply manufacturer that is subject to an | ||||||
16 | agreement with the Department of Commerce and Economic | ||||||
17 | Opportunity under Section 45 of the Reimagining Energy and | ||||||
18 | Electric Vehicles in Illinois Act, during the period of time | ||||||
19 | such agreement is in effect as specified by the Department of | ||||||
20 | Commerce and Economic Opportunity.
| ||||||
21 | (Source: P.A. 102-669, eff. 11-16-21.) | ||||||
22 | Section 980. The Telecommunications Excise Tax Act is | ||||||
23 | amended by changing Section 2 as follows:
|
| |||||||
| |||||||
1 | (35 ILCS 630/2) (from Ch. 120, par. 2002)
| ||||||
2 | Sec. 2. As used in this Article, unless the context | ||||||
3 | clearly requires
otherwise:
| ||||||
4 | (a) "Gross charge" means the amount paid for the act or
| ||||||
5 | privilege of originating or receiving telecommunications in | ||||||
6 | this State and
for all services and equipment provided in | ||||||
7 | connection therewith by a
retailer, valued in money whether | ||||||
8 | paid in money or otherwise, including
cash, credits, services | ||||||
9 | and property of every kind or nature, and shall be
determined | ||||||
10 | without any deduction on account of the cost of such
| ||||||
11 | telecommunications, the cost of materials used, labor or | ||||||
12 | service costs or
any other expense whatsoever. In case credit | ||||||
13 | is extended, the amount
thereof shall be included only as and | ||||||
14 | when paid.
"Gross charges" for private line service shall | ||||||
15 | include charges imposed at
each channel termination point | ||||||
16 | within this State, charges for the channel
mileage
between | ||||||
17 | each channel termination point within this State, and charges | ||||||
18 | for
that portion
of the interstate inter-office channel | ||||||
19 | provided within Illinois. Charges for
that portion of the | ||||||
20 | interstate inter-office channel provided in Illinois shall
be | ||||||
21 | determined by the retailer as follows: (i) for interstate
| ||||||
22 | inter-office channels having 2 channel termination points, | ||||||
23 | only one of which
is in Illinois, 50% of the total charge | ||||||
24 | imposed; or (ii) for interstate
inter-office channels having | ||||||
25 | more than 2 channel termination points, one or
more of which
|
| |||||||
| |||||||
1 | are in Illinois, an amount equal to the total charge
| ||||||
2 | multiplied by a fraction, the numerator of which is the number | ||||||
3 | of channel
termination points within Illinois and the | ||||||
4 | denominator of which is the total
number of channel | ||||||
5 | termination points. Prior to January 1,
2004, any method | ||||||
6 | consistent with this
paragraph or other method that reasonably | ||||||
7 | apportions the total charges for
interstate inter-office | ||||||
8 | channels among the states in which channel terminations
points | ||||||
9 | are located shall be accepted as a reasonable method to | ||||||
10 | determine the
charges for
that portion of the interstate | ||||||
11 | inter-office channel provided within Illinois
for that period. | ||||||
12 | However, "gross charges" shall not include any of the
| ||||||
13 | following:
| ||||||
14 | (1) Any amounts added to a purchaser's bill because of | ||||||
15 | a charge made
pursuant to (i) the tax imposed by this | ||||||
16 | Article; (ii) charges added to
customers' bills pursuant | ||||||
17 | to the provisions of Sections 9-221 or 9-222 of
the Public | ||||||
18 | Utilities Act, as amended, or any similar charges added to
| ||||||
19 | customers' bills by retailers who are not subject to rate | ||||||
20 | regulation by
the Illinois Commerce Commission for the | ||||||
21 | purpose of recovering any of the
tax liabilities or other | ||||||
22 | amounts specified in such provisions of such
Act; (iii) | ||||||
23 | the tax imposed by Section 4251 of the Internal Revenue | ||||||
24 | Code;
(iv) 911 surcharges; or (v) the tax imposed by the | ||||||
25 | Simplified Municipal
Telecommunications Tax Act.
| ||||||
26 | (2) Charges for a sent collect telecommunication |
| |||||||
| |||||||
1 | received outside of the
State.
| ||||||
2 | (3) Charges for leased time on equipment or charges | ||||||
3 | for the storage of
data or information for subsequent | ||||||
4 | retrieval or the processing of data or
information | ||||||
5 | intended to change its form or content. Such equipment
| ||||||
6 | includes, but is not limited to, the use of calculators, | ||||||
7 | computers, data
processing equipment, tabulating equipment | ||||||
8 | or accounting equipment and also
includes the usage of | ||||||
9 | computers under a time-sharing agreement.
| ||||||
10 | (4) Charges for customer equipment, including such | ||||||
11 | equipment that is
leased or rented by the customer from | ||||||
12 | any source, wherein such charges are
disaggregated and | ||||||
13 | separately identified from other charges.
| ||||||
14 | (5) Charges to business enterprises certified under | ||||||
15 | Section 9-222.1
of the Public Utilities Act, as amended, | ||||||
16 | or to electric vehicle manufacturers, electric vehicle | ||||||
17 | component parts manufacturers, or electric vehicle power | ||||||
18 | supply manufacturers at REV Illinois Project sites for | ||||||
19 | which a certificate of exemption has been issued by the | ||||||
20 | Department of Commerce and Economic Opportunity under | ||||||
21 | Section 95 of the Reimagining Energy and Electric Vehicles | ||||||
22 | in Illinois Act, to the extent of such exemption
and | ||||||
23 | during the period of time specified by the Department of | ||||||
24 | Commerce and
Economic Opportunity.
| ||||||
25 | (5.1) Charges to business enterprises certified under | ||||||
26 | the Manufacturing Illinois Chips for Real Opportunity |
| |||||||
| |||||||
1 | (MICRO) Act , to the extent of the exemption and during the | ||||||
2 | period of time specified by the Department of Commerce and | ||||||
3 | Economic Opportunity . | ||||||
4 | (6) Charges for telecommunications and all services | ||||||
5 | and equipment
provided in connection therewith between a | ||||||
6 | parent corporation and its
wholly owned subsidiaries or | ||||||
7 | between wholly owned subsidiaries when the tax
imposed | ||||||
8 | under this Article has already been paid to a
retailer and | ||||||
9 | only to the extent that the charges between the parent
| ||||||
10 | corporation and wholly owned subsidiaries or between | ||||||
11 | wholly owned
subsidiaries represent expense allocation
| ||||||
12 | between the corporations and not the generation of profit | ||||||
13 | for the
corporation rendering such service.
| ||||||
14 | (7) Bad debts. Bad debt means any portion of a debt | ||||||
15 | that is related
to a sale at retail for which gross charges | ||||||
16 | are not otherwise deductible or
excludable that has become | ||||||
17 | worthless or uncollectable, as determined under
applicable | ||||||
18 | federal income tax standards. If the portion of the debt | ||||||
19 | deemed to
be bad is subsequently paid, the retailer shall | ||||||
20 | report and pay the tax on that
portion during the | ||||||
21 | reporting period in which the payment is made.
| ||||||
22 | (8) Charges paid by inserting coins in coin-operated | ||||||
23 | telecommunication
devices.
| ||||||
24 | (9) Amounts paid by telecommunications retailers under | ||||||
25 | the
Telecommunications Municipal Infrastructure | ||||||
26 | Maintenance Fee Act.
|
| |||||||
| |||||||
1 | (10) Charges for nontaxable services or | ||||||
2 | telecommunications if (i) those
charges are
aggregated
| ||||||
3 | with other
charges for telecommunications that are | ||||||
4 | taxable, (ii) those charges are not
separately stated
on | ||||||
5 | the
customer bill or invoice, and (iii) the retailer can | ||||||
6 | reasonably identify the
nontaxable
charges on
the | ||||||
7 | retailer's books and records kept in the regular course of | ||||||
8 | business. If the
nontaxable
charges cannot reasonably be | ||||||
9 | identified, the gross charge from the sale of both
taxable
| ||||||
10 | and nontaxable services or telecommunications billed on a | ||||||
11 | combined basis shall
be
attributed to the taxable services | ||||||
12 | or telecommunications. The burden of proving
nontaxable
| ||||||
13 | charges
shall be on the retailer of the | ||||||
14 | telecommunications.
| ||||||
15 | (b) "Amount paid" means the amount charged to the | ||||||
16 | taxpayer's service
address in this State regardless of where | ||||||
17 | such amount is billed or paid.
| ||||||
18 | (c) "Telecommunications", in addition to the meaning | ||||||
19 | ordinarily and
popularly ascribed to it, includes, without | ||||||
20 | limitation, messages or
information transmitted through use of | ||||||
21 | local, toll and wide area telephone
service; private line | ||||||
22 | services; channel services; telegraph services;
| ||||||
23 | teletypewriter; computer exchange services; cellular mobile
| ||||||
24 | telecommunications service; specialized mobile radio; | ||||||
25 | stationary two way
radio; paging service; or any other form of | ||||||
26 | mobile and portable one-way or
two-way communications; or any |
| |||||||
| |||||||
1 | other transmission of messages or
information by electronic or | ||||||
2 | similar means, between or among points by
wire, cable, | ||||||
3 | fiber-optics, laser, microwave, radio, satellite or similar
| ||||||
4 | facilities. As used in this Act, "private line" means a | ||||||
5 | dedicated non-traffic
sensitive service for a single customer, | ||||||
6 | that entitles the customer to
exclusive or priority use of a | ||||||
7 | communications channel or group of channels,
from one or more | ||||||
8 | specified locations to one or more other specified
locations. | ||||||
9 | The definition of "telecommunications" shall not include value
| ||||||
10 | added services in which computer processing applications are | ||||||
11 | used to act on
the form, content, code and protocol of the | ||||||
12 | information for purposes other
than transmission. | ||||||
13 | "Telecommunications" shall not include purchases of
| ||||||
14 | telecommunications by a telecommunications service provider | ||||||
15 | for use as a
component part of the service provided by him to | ||||||
16 | the ultimate retail
consumer who originates or terminates the | ||||||
17 | taxable end-to-end
communications. Carrier access charges, | ||||||
18 | right of access charges, charges
for use of inter-company | ||||||
19 | facilities, and all telecommunications resold in
the | ||||||
20 | subsequent provision of, used as a component of, or integrated | ||||||
21 | into
end-to-end telecommunications service shall be | ||||||
22 | non-taxable as sales for resale.
| ||||||
23 | (d) "Interstate telecommunications" means all | ||||||
24 | telecommunications that
either originate or terminate outside | ||||||
25 | this State.
| ||||||
26 | (e) "Intrastate telecommunications" means all |
| |||||||
| |||||||
1 | telecommunications that
originate and terminate within this | ||||||
2 | State.
| ||||||
3 | (f) "Department" means the Department of Revenue of the | ||||||
4 | State of Illinois.
| ||||||
5 | (g) "Director" means the Director of Revenue for the | ||||||
6 | Department of
Revenue of the State of Illinois.
| ||||||
7 | (h) "Taxpayer" means a person who individually or through | ||||||
8 | his agents,
employees or permittees engages in the act or | ||||||
9 | privilege of originating or
receiving telecommunications in | ||||||
10 | this State and who incurs a tax liability
under this Article.
| ||||||
11 | (i) "Person" means any natural individual, firm, trust, | ||||||
12 | estate, partnership,
association, joint stock company, joint | ||||||
13 | venture, corporation, limited liability
company, or a | ||||||
14 | receiver, trustee, guardian or other representative appointed | ||||||
15 | by
order of any court, the Federal and State governments, | ||||||
16 | including State
universities created by statute or any city, | ||||||
17 | town, county or other political
subdivision of this State.
| ||||||
18 | (j) "Purchase at retail" means the acquisition, | ||||||
19 | consumption or use of
telecommunication through a sale at | ||||||
20 | retail.
| ||||||
21 | (k) "Sale at retail" means the transmitting, supplying or | ||||||
22 | furnishing of
telecommunications and all services and | ||||||
23 | equipment provided in connection
therewith for a consideration | ||||||
24 | to persons other than the Federal and State
governments, and | ||||||
25 | State universities created by statute and other than between
a | ||||||
26 | parent corporation and its wholly owned subsidiaries or |
| |||||||
| |||||||
1 | between wholly
owned subsidiaries for their use or consumption | ||||||
2 | and not for resale.
| ||||||
3 | (l) "Retailer" means and includes every person engaged in | ||||||
4 | the business
of making sales at retail as defined in this | ||||||
5 | Article. The Department may, in
its discretion, upon | ||||||
6 | application, authorize the collection of the tax
hereby | ||||||
7 | imposed by any retailer not maintaining a place of business | ||||||
8 | within
this State, who, to the satisfaction of the Department, | ||||||
9 | furnishes adequate
security to insure collection and payment | ||||||
10 | of the tax. Such retailer shall
be issued, without charge, a | ||||||
11 | permit to collect such tax. When so
authorized, it shall be the | ||||||
12 | duty of such retailer to collect the tax upon
all of the gross | ||||||
13 | charges for telecommunications in this State in the same
| ||||||
14 | manner and subject to the same requirements as a retailer | ||||||
15 | maintaining a
place of business within this State. The permit | ||||||
16 | may be revoked by the
Department at its discretion.
| ||||||
17 | (m) "Retailer maintaining a place of business in this | ||||||
18 | State", or any
like term, means and includes any retailer | ||||||
19 | having or maintaining within
this State, directly or by a | ||||||
20 | subsidiary, an office, distribution
facilities, transmission | ||||||
21 | facilities, sales office, warehouse or other place
of | ||||||
22 | business, or any agent or other representative operating | ||||||
23 | within this
State under the authority of the retailer or its | ||||||
24 | subsidiary, irrespective
of whether such place of business or | ||||||
25 | agent or other representative is
located here permanently or | ||||||
26 | temporarily, or whether such retailer or
subsidiary is |
| |||||||
| |||||||
1 | licensed to do business in this State.
| ||||||
2 | (n) "Service address" means the location of | ||||||
3 | telecommunications equipment
from which the telecommunications | ||||||
4 | services are originated or at which
telecommunications | ||||||
5 | services are received by a taxpayer. In the event this may
not | ||||||
6 | be a defined location, as in the case of mobile phones, paging | ||||||
7 | systems,
maritime systems, service address means the | ||||||
8 | customer's place of primary use
as defined in the Mobile | ||||||
9 | Telecommunications Sourcing Conformity Act. For
air-to-ground | ||||||
10 | systems and the like, service address shall mean the location
| ||||||
11 | of a taxpayer's primary use of the telecommunications | ||||||
12 | equipment as defined by
telephone number, authorization code, | ||||||
13 | or location in Illinois where bills are
sent.
| ||||||
14 | (o) "Prepaid telephone calling arrangements" mean the | ||||||
15 | right to exclusively
purchase telephone or telecommunications | ||||||
16 | services that must be paid for in
advance and enable the | ||||||
17 | origination of one or more intrastate, interstate, or
| ||||||
18 | international telephone calls or other telecommunications | ||||||
19 | using an access
number, an authorization code, or both, | ||||||
20 | whether manually or electronically
dialed, for which payment | ||||||
21 | to a retailer must be made in advance, provided
that, unless | ||||||
22 | recharged, no further service is provided once that prepaid
| ||||||
23 | amount of service has been consumed. Prepaid telephone calling | ||||||
24 | arrangements
include the recharge of a prepaid calling | ||||||
25 | arrangement. For purposes of this
subsection, "recharge" means | ||||||
26 | the purchase of additional prepaid telephone or
|
| |||||||
| |||||||
1 | telecommunications services whether or not the purchaser | ||||||
2 | acquires a different
access number or authorization code. | ||||||
3 | "Prepaid telephone calling arrangement"
does not include an | ||||||
4 | arrangement whereby a customer purchases a payment card and
| ||||||
5 | pursuant to which the service provider reflects the amount of | ||||||
6 | such purchase as
a credit on an invoice issued to that customer | ||||||
7 | under an existing subscription
plan.
| ||||||
8 | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22.)
| ||||||
9 | Section 985. The Telecommunications Infrastructure | ||||||
10 | Maintenance Fee Act is amended by changing Section 10 as | ||||||
11 | follows:
| ||||||
12 | (35 ILCS 635/10)
| ||||||
13 | Sec. 10. Definitions.
| ||||||
14 | (a) "Gross charges" means the amount paid to a | ||||||
15 | telecommunications retailer
for the act or privilege of | ||||||
16 | originating or receiving telecommunications in this
State and | ||||||
17 | for all services rendered in connection therewith, valued in | ||||||
18 | money
whether paid in money or otherwise, including cash, | ||||||
19 | credits, services, and
property of every kind or nature, and | ||||||
20 | shall be determined without any deduction
on account of the | ||||||
21 | cost of such telecommunications, the cost of the materials
| ||||||
22 | used, labor or service costs, or any other expense whatsoever. | ||||||
23 | In case credit
is extended, the amount thereof shall be | ||||||
24 | included only as and when paid.
"Gross charges" for private |
| |||||||
| |||||||
1 | line service shall include charges imposed at each
channel | ||||||
2 | termination point within this State, charges for the channel
| ||||||
3 | mileage between each
channel termination point within this | ||||||
4 | State, and charges for that portion
of the interstate
| ||||||
5 | inter-office channel provided within Illinois. Charges for | ||||||
6 | that portion of
the interstate inter-office channel provided | ||||||
7 | in Illinois shall be determined
by the retailer as follows: | ||||||
8 | (i) for interstate inter-office
channels having 2 channel | ||||||
9 | termination points, only one of which is in
Illinois, 50% of | ||||||
10 | the total charge imposed; or (ii) for interstate
inter-office | ||||||
11 | channels having more than 2 channel termination points, one or
| ||||||
12 | more of which are in Illinois, an amount equal to the total | ||||||
13 | charge
multiplied by a fraction, the numerator of which is the | ||||||
14 | number of channel
termination points within Illinois and the | ||||||
15 | denominator of which is the total
number of channel | ||||||
16 | termination points. Prior to January 1,
2004, any method | ||||||
17 | consistent with this
paragraph
or other method that reasonably | ||||||
18 | apportions the total charges for interstate
inter-office
| ||||||
19 | channels among the states in which channel terminations points | ||||||
20 | are located
shall be accepted as a reasonable method to | ||||||
21 | determine the charges for
that portion of the interstate | ||||||
22 | inter-office channel provided within Illinois
for that period. | ||||||
23 | However, "gross charges" shall not include any of the
| ||||||
24 | following:
| ||||||
25 | (1) Any amounts added to a purchaser's bill because of | ||||||
26 | a charge made
under: (i) the fee imposed by this Section, |
| |||||||
| |||||||
1 | (ii) additional charges added
to a purchaser's bill under | ||||||
2 | Section 9-221 or 9-222 of the Public Utilities
Act, (iii) | ||||||
3 | the tax imposed by the Telecommunications Excise Tax Act, | ||||||
4 | (iv) 911
surcharges, (v) the tax imposed by Section 4251 | ||||||
5 | of the Internal Revenue Code,
or (vi) the tax imposed by | ||||||
6 | the Simplified Municipal Telecommunications Tax
Act.
| ||||||
7 | (2) Charges for a sent collect telecommunication | ||||||
8 | received outside of this
State.
| ||||||
9 | (3) Charges for leased time on equipment or charges | ||||||
10 | for the storage of
data or information or subsequent | ||||||
11 | retrieval or the processing of data or
information | ||||||
12 | intended to change its form or content. Such equipment | ||||||
13 | includes,
but is not limited to, the use of calculators, | ||||||
14 | computers, data processing
equipment, tabulating | ||||||
15 | equipment, or accounting equipment and also includes the
| ||||||
16 | usage of computers under a time-sharing agreement.
| ||||||
17 | (4) Charges for customer equipment, including such | ||||||
18 | equipment that is
leased or rented by the customer from | ||||||
19 | any source, wherein such charges are
disaggregated and | ||||||
20 | separately identified from other charges.
| ||||||
21 | (5) Charges to business enterprises certified under | ||||||
22 | Section 9-222.1 of the
Public Utilities Act to the extent | ||||||
23 | of such exemption and during the period of
time specified | ||||||
24 | by the Department of Commerce and Economic Opportunity.
| ||||||
25 | (5.1) Charges to business enterprises certified under | ||||||
26 | Section 95 of the Reimagining Energy and Vehicles in |
| |||||||
| |||||||
1 | Illinois Act, to the extent of the exemption and during | ||||||
2 | the period of time specified by the Department of Commerce | ||||||
3 | and Economic Opportunity. | ||||||
4 | (5.2) Charges to business enterprises certified under | ||||||
5 | Section 110-95 of the Manufacturing Illinois Chips for | ||||||
6 | Real Opportunity (MICRO) Act, to the extent of the | ||||||
7 | exemption and during the period of time specified by the | ||||||
8 | Department of Commerce and Economic Opportunity.
| ||||||
9 | (6) Charges for telecommunications and all services | ||||||
10 | and equipment provided
in connection therewith between a | ||||||
11 | parent corporation and its wholly owned
subsidiaries or | ||||||
12 | between wholly owned subsidiaries, and only to the extent | ||||||
13 | that
the charges between the parent corporation and wholly | ||||||
14 | owned subsidiaries or
between wholly owned subsidiaries | ||||||
15 | represent expense allocation between the
corporations and | ||||||
16 | not the generation of profit other than a regulatory | ||||||
17 | required
profit for the corporation rendering such | ||||||
18 | services.
| ||||||
19 | (7) Bad debts ("bad debt" means any portion of a debt | ||||||
20 | that is related
to a sale at retail for which gross charges | ||||||
21 | are not otherwise deductible or
excludable that has become | ||||||
22 | worthless or uncollectible, as determined under
applicable | ||||||
23 | federal income tax standards; if the portion of the debt | ||||||
24 | deemed
to be bad is subsequently paid, the retailer shall | ||||||
25 | report and pay the tax on
that portion during the | ||||||
26 | reporting period in which the payment is made).
|
| |||||||
| |||||||
1 | (8) Charges paid by inserting coins in coin-operated | ||||||
2 | telecommunication
devices.
| ||||||
3 | (9) Charges for nontaxable services or | ||||||
4 | telecommunications if (i) those
charges are aggregated | ||||||
5 | with other charges for telecommunications that are
| ||||||
6 | taxable, (ii) those charges are not separately stated on | ||||||
7 | the customer bill or
invoice, and (iii) the retailer can | ||||||
8 | reasonably identify the nontaxable charges
on the | ||||||
9 | retailer's books and records kept in the regular course of | ||||||
10 | business.
If the nontaxable charges cannot reasonably be | ||||||
11 | identified, the gross charge
from the sale of both taxable | ||||||
12 | and nontaxable services or telecommunications
billed on a | ||||||
13 | combined basis shall be attributed to the taxable services | ||||||
14 | or
telecommunications. The burden of proving nontaxable | ||||||
15 | charges shall be on the
retailer of the | ||||||
16 | telecommunications.
| ||||||
17 | (a-5) "Department" means the Illinois Department of | ||||||
18 | Revenue.
| ||||||
19 | (b) "Telecommunications" includes, but is not limited to, | ||||||
20 | messages or
information transmitted through use of local, | ||||||
21 | toll, and wide area telephone
service, channel services, | ||||||
22 | telegraph services, teletypewriter service, computer
exchange | ||||||
23 | services, private line services, specialized mobile radio | ||||||
24 | services,
or any other transmission of messages or information | ||||||
25 | by electronic or similar
means, between or among points by | ||||||
26 | wire, cable, fiber optics, laser, microwave,
radio, satellite, |
| |||||||
| |||||||
1 | or similar facilities. Unless the context clearly requires
| ||||||
2 | otherwise, "telecommunications" shall also include wireless | ||||||
3 | telecommunications
as hereinafter defined. | ||||||
4 | "Telecommunications" shall not include value added
services in | ||||||
5 | which computer processing applications are used to act on the
| ||||||
6 | form, content, code, and protocol of the information for | ||||||
7 | purposes other than
transmission. "Telecommunications" shall | ||||||
8 | not include purchase of
telecommunications by a | ||||||
9 | telecommunications service provider for use as a
component | ||||||
10 | part of the service provided by him or her to the ultimate | ||||||
11 | retail
consumer who originates or terminates the end-to-end | ||||||
12 | communications. Retailer
access charges, right of access | ||||||
13 | charges, charges for use of intercompany
facilities, and all | ||||||
14 | telecommunications resold in the subsequent provision and
used | ||||||
15 | as a component of, or integrated into, end-to-end | ||||||
16 | telecommunications
service shall not be included in gross | ||||||
17 | charges as sales for resale.
"Telecommunications" shall not | ||||||
18 | include the provision of cable services through
a cable system | ||||||
19 | as defined in the Cable Communications Act of 1984 (47 U.S.C.
| ||||||
20 | Sections 521 and following) as now or hereafter amended or | ||||||
21 | through an open
video system as defined in the Rules of the | ||||||
22 | Federal Communications Commission
(47 C.D.F. 76.1550 and | ||||||
23 | following) as now or hereafter amended. Beginning
January 1, | ||||||
24 | 2001, prepaid telephone calling arrangements shall not be | ||||||
25 | considered
"telecommunications" subject to the tax imposed | ||||||
26 | under this Act. For purposes
of this Section, "prepaid |
| |||||||
| |||||||
1 | telephone calling arrangements" means that term as
defined in | ||||||
2 | Section 2-27 of the Retailers' Occupation Tax Act.
| ||||||
3 | (c) "Wireless telecommunications" includes cellular mobile | ||||||
4 | telephone
services, personal wireless services as defined in | ||||||
5 | Section 704(C) of the
Telecommunications Act of 1996 (Public | ||||||
6 | Law No. 104-104) as now or hereafter
amended, including all | ||||||
7 | commercial mobile radio services, and paging
services.
| ||||||
8 | (d) "Telecommunications retailer" or "retailer" or | ||||||
9 | "carrier" means and
includes every person engaged in the | ||||||
10 | business of making sales of
telecommunications at retail as | ||||||
11 | defined in this Section. The Department may,
in its | ||||||
12 | discretion, upon applications, authorize the collection of the | ||||||
13 | fee
hereby imposed by any retailer not maintaining a place of | ||||||
14 | business within this
State, who, to the satisfaction of the | ||||||
15 | Department, furnishes adequate security
to insure collection | ||||||
16 | and payment of the fee. When so authorized, it shall be
the | ||||||
17 | duty of such retailer to pay the fee upon all of the gross | ||||||
18 | charges for
telecommunications in the same manner and subject | ||||||
19 | to the same requirements as
a retailer maintaining a place of | ||||||
20 | business within this State.
| ||||||
21 | (e) "Retailer maintaining a place of business in this | ||||||
22 | State", or any like
term, means and includes any retailer | ||||||
23 | having or maintaining within this State,
directly or by a | ||||||
24 | subsidiary, an office, distribution facilities, transmission
| ||||||
25 | facilities, sales office, warehouse, or other place of | ||||||
26 | business, or any agent
or other representative operating |
| |||||||
| |||||||
1 | within this State under the authority of the
retailer or its | ||||||
2 | subsidiary, irrespective of whether such place of business or
| ||||||
3 | agent or other representative is located here permanently or | ||||||
4 | temporarily, or
whether such retailer or subsidiary is | ||||||
5 | licensed to do business in this State.
| ||||||
6 | (f) "Sale of telecommunications at retail" means the | ||||||
7 | transmitting,
supplying, or furnishing of telecommunications | ||||||
8 | and all services rendered in
connection therewith for a | ||||||
9 | consideration, other than between a parent
corporation and its | ||||||
10 | wholly owned subsidiaries or between wholly owned
| ||||||
11 | subsidiaries, when the gross charge made by one such | ||||||
12 | corporation to another
such corporation is not greater than | ||||||
13 | the gross charge paid to the retailer
for their use or | ||||||
14 | consumption and not for sale.
| ||||||
15 | (g) "Service address" means the location of | ||||||
16 | telecommunications equipment
from which telecommunications | ||||||
17 | services are originated or at which
telecommunications | ||||||
18 | services are received. If this is not a defined location,
as in | ||||||
19 | the case of wireless telecommunications, paging systems, | ||||||
20 | maritime
systems, service address means the customer's place | ||||||
21 | of primary use as defined
in the Mobile Telecommunications | ||||||
22 | Sourcing Conformity Act. For air-to-ground
systems, and the | ||||||
23 | like, "service address" shall mean the location of the
| ||||||
24 | customer's primary use of the telecommunications equipment as | ||||||
25 | defined by the
location in Illinois where bills are sent.
| ||||||
26 | (Source: P.A. 93-286, eff. 1-1-04; 94-793, eff. 5-19-06.)
|
| |||||||
| |||||||
1 | Section 990. The Simplified Municipal Telecommunications | ||||||
2 | Tax Act is amended by changing Section 5-7 as follows:
| ||||||
3 | (35 ILCS 636/5-7)
| ||||||
4 | Sec. 5-7. Definitions. For purposes of the taxes | ||||||
5 | authorized by this Act:
| ||||||
6 | "Amount paid" means the amount charged to the taxpayer's | ||||||
7 | service
address in such municipality regardless of where such | ||||||
8 | amount is billed
or paid.
| ||||||
9 | "Department" means the Illinois Department of Revenue.
| ||||||
10 | "Gross charge" means the amount paid for the act or | ||||||
11 | privilege of originating
or receiving telecommunications in | ||||||
12 | such municipality and for all services and
equipment provided | ||||||
13 | in connection therewith by a retailer, valued in money
whether | ||||||
14 | paid in money or otherwise, including cash, credits, services | ||||||
15 | and
property of every kind or nature, and shall be determined | ||||||
16 | without any deduction
on account of the cost of such | ||||||
17 | telecommunications, the cost of the materials
used, labor or | ||||||
18 | service costs or any other expense whatsoever. In case credit
| ||||||
19 | is extended, the amount thereof shall be included only as and | ||||||
20 | when paid. "Gross
charges" for private line service shall | ||||||
21 | include charges imposed at each channel
termination point | ||||||
22 | within a municipality that has imposed a tax under this
| ||||||
23 | Section and charges for the portion of the
inter-office | ||||||
24 | channels provided within that municipality. Charges for that |
| |||||||
| |||||||
1 | portion of
the inter-office channel
connecting 2 or more | ||||||
2 | channel termination points, one or more of which is
located
| ||||||
3 | within
the jurisdictional boundary of such municipality, shall | ||||||
4 | be determined by the
retailer by
multiplying an amount equal | ||||||
5 | to the total charge for the inter-office channel by
a | ||||||
6 | fraction,
the numerator of which is the number of channel | ||||||
7 | termination points that are
located
within the jurisdictional | ||||||
8 | boundary of the municipality and the denominator of
which is
| ||||||
9 | the total number of channel termination points connected by | ||||||
10 | the inter-office
channel.
Prior to January 1, 2004, any method | ||||||
11 | consistent with this paragraph or other
method that
reasonably | ||||||
12 | apportions the total charges for inter-office channels among | ||||||
13 | the
municipalities
in which channel termination points are | ||||||
14 | located shall be accepted as a
reasonable method
to determine | ||||||
15 | the taxable portion of an inter-office channel provided within | ||||||
16 | a
municipality
for that period. However, "gross charge" shall | ||||||
17 | not include any of the
following:
| ||||||
18 | (1) Any amounts added to a purchaser's bill because
of | ||||||
19 | a charge made pursuant to: (i) the tax imposed by this
Act, | ||||||
20 | (ii) the tax imposed by the Telecommunications Excise
Tax | ||||||
21 | Act, (iii) the tax imposed by Section 4251 of the
Internal | ||||||
22 | Revenue Code, (iv) 911 surcharges, or (v) charges added to | ||||||
23 | customers'
bills pursuant to the provisions of Section | ||||||
24 | 9-221 or 9-222 of the Public
Utilities Act, as amended, or | ||||||
25 | any similar charges added to customers' bills by
retailers | ||||||
26 | who are not subject to rate regulation by the Illinois |
| |||||||
| |||||||
1 | Commerce
Commission for the purpose of recovering any of | ||||||
2 | the tax liabilities or other
amounts specified in those | ||||||
3 | provisions of the Public Utilities Act.
| ||||||
4 | (2) Charges for a sent collect telecommunication
| ||||||
5 | received outside of such municipality.
| ||||||
6 | (3) Charges for leased time on equipment or charges
| ||||||
7 | for the storage of data or information for subsequent
| ||||||
8 | retrieval or the processing of data or information | ||||||
9 | intended
to change its form or content. Such equipment | ||||||
10 | includes, but
is not limited to, the use of calculators, | ||||||
11 | computers, data
processing equipment, tabulating equipment | ||||||
12 | or accounting
equipment and also includes the usage of | ||||||
13 | computers under a
time-sharing agreement.
| ||||||
14 | (4) Charges for customer equipment, including such
| ||||||
15 | equipment that is leased or rented by the customer from | ||||||
16 | any
source, wherein such charges are disaggregated and
| ||||||
17 | separately identified from other charges.
| ||||||
18 | (5) Charges to business enterprises certified as | ||||||
19 | exempt under
Section 9-222.1 of the Public Utilities Act | ||||||
20 | to the extent of
such exemption and during the period of | ||||||
21 | time specified by
the Department of Commerce and Economic | ||||||
22 | Opportunity.
| ||||||
23 | (5.1) Charges to business enterprises certified under | ||||||
24 | Section 95 of the Reimagining Energy and Vehicles in | ||||||
25 | Illinois Act, to the extent of the exemption and during | ||||||
26 | the period of time specified by the Department of Commerce |
| |||||||
| |||||||
1 | and Economic Opportunity. | ||||||
2 | (5.2) Charges to business enterprises certified under | ||||||
3 | Section 110-95 of the Manufacturing Illinois Chips for | ||||||
4 | Real Opportunity (MICRO) Act, to the extent of the | ||||||
5 | exemption and during the period of time specified by the | ||||||
6 | Department of Commerce and Economic Opportunity.
| ||||||
7 | (6) Charges for telecommunications and all services
| ||||||
8 | and equipment provided in connection therewith between a
| ||||||
9 | parent corporation and its wholly owned subsidiaries or
| ||||||
10 | between wholly owned subsidiaries when the tax imposed | ||||||
11 | under
this Act has already been paid to a retailer and only | ||||||
12 | to the
extent that the charges between the parent | ||||||
13 | corporation and
wholly owned subsidiaries or between | ||||||
14 | wholly owned
subsidiaries represent expense allocation | ||||||
15 | between the
corporations and not the generation of profit | ||||||
16 | for the
corporation rendering such service.
| ||||||
17 | (7) Bad debts ("bad debt" means any portion of a debt
| ||||||
18 | that is related to a sale at retail for which gross charges
| ||||||
19 | are not otherwise deductible or excludable that has become
| ||||||
20 | worthless or uncollectible, as determined under applicable
| ||||||
21 | federal income tax standards; if the portion of the debt
| ||||||
22 | deemed to be bad is subsequently paid, the retailer shall
| ||||||
23 | report and pay the tax on that portion during the | ||||||
24 | reporting
period in which the payment is made).
| ||||||
25 | (8) Charges paid by inserting coins in coin-operated
| ||||||
26 | telecommunication devices.
|
| |||||||
| |||||||
1 | (9) Amounts paid by telecommunications retailers under | ||||||
2 | the
Telecommunications Infrastructure Maintenance Fee
Act.
| ||||||
3 | (10) Charges for nontaxable services or | ||||||
4 | telecommunications if (i) those
charges are
aggregated
| ||||||
5 | with other
charges for telecommunications that are | ||||||
6 | taxable, (ii) those charges are not
separately stated
on | ||||||
7 | the
customer bill or invoice, and (iii) the retailer can | ||||||
8 | reasonably identify the
nontaxable
charges on
the | ||||||
9 | retailer's books and records kept in the regular course of | ||||||
10 | business. If the
nontaxable
charges cannot reasonably be | ||||||
11 | identified, the gross charge from the sale of both
taxable
| ||||||
12 | and nontaxable services or telecommunications billed on a | ||||||
13 | combined basis shall
be
attributed to the taxable services | ||||||
14 | or telecommunications. The burden of proving
nontaxable
| ||||||
15 | charges
shall be on the retailer of the | ||||||
16 | telecommunications.
| ||||||
17 | "Interstate telecommunications" means all | ||||||
18 | telecommunications
that either originate or terminate outside | ||||||
19 | this State.
| ||||||
20 | "Intrastate telecommunications" means all | ||||||
21 | telecommunications
that originate and terminate within this | ||||||
22 | State.
| ||||||
23 | "Person" means any natural individual, firm, trust, | ||||||
24 | estate,
partnership, association, joint stock company, joint | ||||||
25 | venture,
corporation, limited liability company, or a | ||||||
26 | receiver, trustee,
guardian, or other representative appointed |
| |||||||
| |||||||
1 | by order of any court, the
Federal and State governments, | ||||||
2 | including State universities created by
statute, or any city, | ||||||
3 | town, county, or other political subdivision of
this State.
| ||||||
4 | "Purchase at retail" means the acquisition, consumption or
| ||||||
5 | use of telecommunications through a sale at retail.
| ||||||
6 | "Retailer" means and includes every person engaged in the
| ||||||
7 | business of making sales at retail as defined in this Section.
| ||||||
8 | The Department may, in
its discretion, upon application, | ||||||
9 | authorize the collection of the tax
hereby imposed by any | ||||||
10 | retailer not maintaining a place of business within
this | ||||||
11 | State, who, to the satisfaction of the Department, furnishes | ||||||
12 | adequate
security to insure collection and payment of the tax. | ||||||
13 | Such retailer shall
be issued, without charge, a permit to | ||||||
14 | collect such tax. When so
authorized, it shall be the duty of | ||||||
15 | such retailer to collect the tax upon
all of the gross charges | ||||||
16 | for telecommunications in this State in the same
manner and | ||||||
17 | subject to the same requirements as a retailer maintaining a
| ||||||
18 | place of business within this State. The permit may be revoked | ||||||
19 | by the
Department at its discretion.
| ||||||
20 | "Retailer maintaining a place of business in this State", | ||||||
21 | or any
like term, means and includes any retailer having or | ||||||
22 | maintaining within
this State, directly or by a subsidiary, an | ||||||
23 | office, distribution
facilities, transmission facilities, | ||||||
24 | sales office, warehouse or other place
of business, or any | ||||||
25 | agent or other representative operating within this
State | ||||||
26 | under the authority of the retailer or its subsidiary, |
| |||||||
| |||||||
1 | irrespective
of whether such place of business or agent or | ||||||
2 | other representative is
located here permanently or | ||||||
3 | temporarily, or whether such retailer or
subsidiary is | ||||||
4 | licensed to do business in this State.
| ||||||
5 | "Sale at retail" means the transmitting, supplying or
| ||||||
6 | furnishing of telecommunications and all services and | ||||||
7 | equipment provided in
connection therewith for a | ||||||
8 | consideration, to persons other than the
Federal and State | ||||||
9 | governments, and State universities created by
statute and | ||||||
10 | other than between a parent corporation and its wholly
owned | ||||||
11 | subsidiaries or between wholly owned subsidiaries
for their | ||||||
12 | use or consumption and not for resale.
| ||||||
13 | "Service address" means the location of telecommunications
| ||||||
14 | equipment from which telecommunications services are | ||||||
15 | originated or at
which telecommunications services are | ||||||
16 | received by a taxpayer. In the event
this may not be a defined | ||||||
17 | location, as in the case of mobile phones, paging
systems, and | ||||||
18 | maritime systems,
service address means the customer's place | ||||||
19 | of primary use as defined in the
Mobile Telecommunications | ||||||
20 | Sourcing Conformity Act. For
air-to-ground systems and the | ||||||
21 | like,
"service address" shall mean the location of a | ||||||
22 | taxpayer's primary use
of the telecommunications equipment as | ||||||
23 | defined by telephone number,
authorization code, or location | ||||||
24 | in Illinois where bills are sent.
| ||||||
25 | "Taxpayer" means a person who individually or through his | ||||||
26 | or her
agents, employees, or permittees engages in the act or |
| |||||||
| |||||||
1 | privilege of
originating or receiving telecommunications in a | ||||||
2 | municipality and who incurs a
tax liability as authorized by | ||||||
3 | this Act.
| ||||||
4 | "Telecommunications", in addition to the meaning | ||||||
5 | ordinarily
and popularly ascribed to it, includes, without | ||||||
6 | limitation, messages or
information transmitted through use of | ||||||
7 | local, toll, and wide area
telephone service, private line | ||||||
8 | services, channel services, telegraph
services, | ||||||
9 | teletypewriter, computer exchange services, cellular
mobile | ||||||
10 | telecommunications service, specialized mobile radio,
| ||||||
11 | stationary two-way radio, paging service, or any other form of | ||||||
12 | mobile
and portable one-way or two-way communications, or any | ||||||
13 | other
transmission of messages or information by electronic or | ||||||
14 | similar
means, between or among points by wire, cable, fiber | ||||||
15 | optics, laser,
microwave, radio, satellite, or similar | ||||||
16 | facilities. As used in this
Act, "private line" means a | ||||||
17 | dedicated non-traffic sensitive
service for a single customer, | ||||||
18 | that entitles the customer to exclusive
or priority use of a | ||||||
19 | communications channel or group of channels, from
one or more | ||||||
20 | specified locations to one or more other specified
locations. | ||||||
21 | The definition of "telecommunications" shall not include
value | ||||||
22 | added services in which computer processing applications are
| ||||||
23 | used to act on the form, content, code, and protocol of the | ||||||
24 | information
for purposes other than transmission. | ||||||
25 | "Telecommunications" shall not
include purchases of | ||||||
26 | telecommunications by a telecommunications service
provider |
| |||||||
| |||||||
1 | for use as a component part of the service provided by such | ||||||
2 | provider
to the ultimate retail consumer who originates or | ||||||
3 | terminates the taxable
end-to-end communications. Carrier | ||||||
4 | access charges, right of access
charges, charges for use of | ||||||
5 | inter-company facilities, and all
telecommunications resold in | ||||||
6 | the subsequent provision of, used as a
component of, or | ||||||
7 | integrated into, end-to-end telecommunications
service shall | ||||||
8 | be non-taxable as sales for resale. Prepaid telephone
calling | ||||||
9 | arrangements shall not be considered "telecommunications"
| ||||||
10 | subject to the tax imposed under this Act. For purposes of this | ||||||
11 | Section,
"prepaid telephone calling arrangements" means that | ||||||
12 | term as defined in
Section 2-27 of the Retailers' Occupation | ||||||
13 | Tax Act.
| ||||||
14 | (Source: P.A. 93-286, eff. 1-1-04; 94-793, eff. 5-19-06.)
| ||||||
15 | Section 995. The Electricity Excise Tax Law is amended by | ||||||
16 | changing Section 2-4 as follows:
| ||||||
17 | (35 ILCS 640/2-4)
| ||||||
18 | Sec. 2-4. Tax imposed.
| ||||||
19 | (a) Except as provided in subsection (b), a tax is
imposed | ||||||
20 | on the privilege
of using in this State electricity purchased | ||||||
21 | for use or
consumption and not for resale, other than by | ||||||
22 | municipal corporations owning and
operating a local | ||||||
23 | transportation system for public service, at the following
| ||||||
24 | rates per
kilowatt-hour delivered to the purchaser:
|
| |||||||
| |||||||
1 | (i) For the first 2000 kilowatt-hours used or
consumed | ||||||
2 | in a month: 0.330 cents per kilowatt-hour;
| ||||||
3 | (ii) For the next 48,000 kilowatt-hours used or
| ||||||
4 | consumed in a month: 0.319 cents per kilowatt-hour;
| ||||||
5 | (iii) For the next 50,000 kilowatt-hours used or
| ||||||
6 | consumed in a month: 0.303 cents per kilowatt-hour;
| ||||||
7 | (iv) For the next 400,000 kilowatt-hours used or
| ||||||
8 | consumed in a month: 0.297 cents per kilowatt-hour;
| ||||||
9 | (v) For the next 500,000 kilowatt-hours used or
| ||||||
10 | consumed in a month: 0.286 cents per kilowatt-hour;
| ||||||
11 | (vi) For the next 2,000,000 kilowatt-hours used or
| ||||||
12 | consumed in a month: 0.270 cents per kilowatt-hour;
| ||||||
13 | (vii) For the next 2,000,000 kilowatt-hours used or
| ||||||
14 | consumed in a month: 0.254 cents per kilowatt-hour;
| ||||||
15 | (viii) For the next 5,000,000 kilowatt-hours used
or | ||||||
16 | consumed in a month: 0.233 cents per kilowatt-hour;
| ||||||
17 | (ix) For the next 10,000,000 kilowatt-hours used or
| ||||||
18 | consumed in a month: 0.207 cents per kilowatt-hour;
| ||||||
19 | (x) For all electricity in excess of 20,000,000
| ||||||
20 | kilowatt-hours used or consumed in a month: 0.202 cents
| ||||||
21 | per kilowatt-hour.
| ||||||
22 | Provided, that in lieu of the foregoing rates, the tax
is | ||||||
23 | imposed on a self-assessing purchaser at the rate of 5.1%
of | ||||||
24 | the self-assessing purchaser's purchase price for
all | ||||||
25 | electricity distributed, supplied, furnished, sold,
| ||||||
26 | transmitted and delivered to the self-assessing purchaser in a
|
| |||||||
| |||||||
1 | month.
| ||||||
2 | (b) A tax is imposed on the privilege of using in this | ||||||
3 | State electricity
purchased from a municipal system or | ||||||
4 | electric cooperative, as defined in
Article XVII of the Public | ||||||
5 | Utilities Act, which has not made an election as
permitted by | ||||||
6 | either Section 17-200 or Section 17-300 of such Act, at the | ||||||
7 | lesser
of 0.32 cents per kilowatt hour of all electricity | ||||||
8 | distributed, supplied,
furnished, sold, transmitted, and | ||||||
9 | delivered by such municipal system or
electric cooperative to | ||||||
10 | the purchaser or 5% of each such purchaser's purchase
price | ||||||
11 | for all electricity distributed, supplied, furnished, sold, | ||||||
12 | transmitted,
and delivered by such municipal system or | ||||||
13 | electric cooperative to the
purchaser, whichever is the lower | ||||||
14 | rate as applied to each purchaser in each
billing period.
| ||||||
15 | (c) The tax imposed by this Section 2-4 is not imposed with
| ||||||
16 | respect to any use of electricity by business enterprises
| ||||||
17 | certified under Section 9-222.1 or 9-222.1A of the Public | ||||||
18 | Utilities Act,
as amended, to the extent of such exemption and | ||||||
19 | during the
time specified by the Department of Commerce and | ||||||
20 | Economic Opportunity; or with respect to any transaction in | ||||||
21 | interstate
commerce, or otherwise, to the extent to which such
| ||||||
22 | transaction may not, under the Constitution and statutes of
| ||||||
23 | the United States, be made the subject of taxation by this
| ||||||
24 | State.
| ||||||
25 | (d) The tax imposed by this Section 2-4 is not imposed with | ||||||
26 | respect to any use of electricity at a REV Illinois Project |
| |||||||
| |||||||
1 | site that has received a certification for tax exemption from | ||||||
2 | the Department of Commerce and Economic Opportunity pursuant | ||||||
3 | to Section 95 of the Reimagining Energy and Electric Vehicles | ||||||
4 | in Illinois Act, to the extent of such exemption, which shall | ||||||
5 | be no more than 10 years. | ||||||
6 | (e) The tax imposed by this Section 2-4 is not imposed with | ||||||
7 | respect to any use of electricity at a project site that has | ||||||
8 | received a certification for tax exemption from the Department | ||||||
9 | of Commerce and Economic Opportunity pursuant to the | ||||||
10 | Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, | ||||||
11 | to the extent of such exemption, which shall be no more than 10 | ||||||
12 | years. | ||||||
13 | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22.)
| ||||||
14 | Section 1000. The Public Utilities Act is amended by | ||||||
15 | changing Sections 9-222 and 9-222.1A as follows:
| ||||||
16 | (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
| ||||||
17 | Sec. 9-222.
Whenever a tax is imposed upon a public | ||||||
18 | utility
engaged in the business of distributing, supplying,
| ||||||
19 | furnishing, or selling gas for use or consumption pursuant to | ||||||
20 | Section 2 of
the Gas Revenue Tax Act, or whenever a tax is
| ||||||
21 | required to be collected by a delivering supplier pursuant to | ||||||
22 | Section 2-7 of
the Electricity Excise Tax Act, or whenever a | ||||||
23 | tax is imposed upon a public
utility pursuant to Section
2-202 | ||||||
24 | of this Act, such utility may charge its customers, other than
|
| |||||||
| |||||||
1 | customers who are high impact businesses under Section 5.5
of | ||||||
2 | the Illinois Enterprise Zone Act, customers who are electric | ||||||
3 | vehicle manufacturers, electric vehicle component parts | ||||||
4 | manufacturers, or electric vehicle power supply equipment | ||||||
5 | manufacturers at REV Illinois Project sites as certified under | ||||||
6 | Section 95 of the Reimagining Energy and Electric Vehicles in | ||||||
7 | Illinois Act, manufacturers under the Manufacturing Illinois | ||||||
8 | Chips for Real Opportunity (MICRO) Act, or certified business | ||||||
9 | enterprises
under Section 9-222.1 of this Act, to the extent | ||||||
10 | of such exemption and
during the period in which such | ||||||
11 | exemption is in effect,
in addition to any rate authorized by | ||||||
12 | this Act, an additional
charge equal to the total amount of | ||||||
13 | such taxes. The exemption of this
Section relating to high | ||||||
14 | impact businesses shall be subject to the
provisions of | ||||||
15 | subsections (a), (b), and (b-5) of Section 5.5 of
the Illinois
| ||||||
16 | Enterprise Zone Act. This requirement shall not
apply to taxes | ||||||
17 | on invested capital imposed pursuant to the Messages Tax
Act, | ||||||
18 | the Gas Revenue Tax Act and the Public Utilities Revenue Act.
| ||||||
19 | Such utility shall file with the Commission
a supplemental | ||||||
20 | schedule which shall specify such additional charge and
which | ||||||
21 | shall become effective upon filing without further notice. | ||||||
22 | Such
additional charge shall be shown separately on the | ||||||
23 | utility bill to each
customer. The Commission shall have the | ||||||
24 | power to investigate whether or
not such supplemental schedule | ||||||
25 | correctly specifies such additional charge,
but shall have no | ||||||
26 | power to suspend such supplemental schedule. If the
Commission |
| |||||||
| |||||||
1 | finds, after a hearing, that such supplemental schedule does | ||||||
2 | not
correctly specify such additional charge, it shall by | ||||||
3 | order require a
refund to the appropriate customers of the | ||||||
4 | excess, if any, with interest,
in such manner as it shall deem | ||||||
5 | just and reasonable, and in and by such
order shall require the | ||||||
6 | utility to file an amended supplemental schedule
corresponding | ||||||
7 | to the finding and order of the Commission.
Except with | ||||||
8 | respect to taxes imposed on invested capital,
such tax | ||||||
9 | liabilities shall be recovered from customers solely by means | ||||||
10 | of
the additional charges authorized by this Section.
| ||||||
11 | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22.)
| ||||||
12 | (220 ILCS 5/9-222.1A)
| ||||||
13 | Sec. 9-222.1A. High impact business. Beginning on August | ||||||
14 | 1, 1998 and
thereafter, a business enterprise that is | ||||||
15 | certified as a High Impact Business
by the Department of | ||||||
16 | Commerce and Economic Opportunity (formerly Department of | ||||||
17 | Commerce and Community Affairs) is exempt from the tax
imposed | ||||||
18 | by Section 2-4 of the Electricity Excise Tax Law, if the High | ||||||
19 | Impact
Business is registered to self-assess that tax, and is | ||||||
20 | exempt from any
additional charges added to the business | ||||||
21 | enterprise's utility bills as a
pass-on of State utility taxes | ||||||
22 | under Section 9-222 of this Act, to the extent
the tax or | ||||||
23 | charges are exempted by the percentage specified by the | ||||||
24 | Department
of Commerce and Economic Opportunity for State | ||||||
25 | utility taxes, provided the
business enterprise meets the |
| |||||||
| |||||||
1 | following criteria:
| ||||||
2 | (1) (A) it intends either (i) to make a minimum | ||||||
3 | eligible investment
of
$12,000,000 that will be placed | ||||||
4 | in service in qualified property in Illinois
and is | ||||||
5 | intended to create at least 500 full-time equivalent | ||||||
6 | jobs at a
designated
location in Illinois; or (ii) to | ||||||
7 | make a minimum eligible investment of
$30,000,000 that | ||||||
8 | will be placed in service in qualified property in
| ||||||
9 | Illinois and is intended to retain at least 1,500 | ||||||
10 | full-time equivalent jobs at
a designated location in | ||||||
11 | Illinois; or
| ||||||
12 | (B) it meets the criteria of subdivision | ||||||
13 | (a)(3)(B), (a)(3)(C),
(a)(3)(D), or (a)(3)(F) of
| ||||||
14 | Section 5.5 of the
Illinois Enterprise Zone Act;
| ||||||
15 | (2) it is designated as a High Impact Business by the | ||||||
16 | Department of
Commerce and Economic Opportunity; and
| ||||||
17 | (3) it is certified by the Department of Commerce and | ||||||
18 | Economic Opportunity as complying with the requirements | ||||||
19 | specified in clauses (1) and (2) of
this Section.
| ||||||
20 | The Department of Commerce and Economic Opportunity shall | ||||||
21 | determine the period
during which the exemption from the | ||||||
22 | Electricity Excise Tax Law and the
charges imposed under | ||||||
23 | Section 9-222 are in effect , which shall not exceed 20
years | ||||||
24 | from the date of initial certification, and shall specify the | ||||||
25 | percentage
of the exemption from those taxes or additional | ||||||
26 | charges.
|
| |||||||
| |||||||
1 | The Department of Commerce and Economic Opportunity is | ||||||
2 | authorized to
promulgate rules and regulations to carry out | ||||||
3 | the provisions of this Section,
including procedures for | ||||||
4 | complying with the requirements specified in
clauses (1) and | ||||||
5 | (2) of this Section and procedures for applying for the
| ||||||
6 | exemptions authorized under this Section; to define the | ||||||
7 | amounts and types of
eligible investments that business | ||||||
8 | enterprises must make in order to receive
State utility tax | ||||||
9 | exemptions or exemptions from the additional charges imposed
| ||||||
10 | under Section 9-222 and this Section; to
approve such utility | ||||||
11 | tax exemptions for business enterprises whose investments
are | ||||||
12 | not yet placed in service; and to require that business | ||||||
13 | enterprises
granted tax exemptions or exemptions from | ||||||
14 | additional charges under Section
9-222 repay the exempted | ||||||
15 | amount if the business enterprise fails
to comply with the | ||||||
16 | terms and conditions of the certification.
| ||||||
17 | Upon certification of the business enterprises by the | ||||||
18 | Department of Commerce
and Economic Opportunity, the | ||||||
19 | Department of Commerce and Economic Opportunity shall
notify | ||||||
20 | the Department of Revenue of the certification. The Department | ||||||
21 | of
Revenue shall notify the public utilities of the exemption | ||||||
22 | status of business
enterprises from the tax or pass-on charges | ||||||
23 | of State utility taxes. The
exemption
status shall take effect | ||||||
24 | within 3 months after certification of the
business | ||||||
25 | enterprise.
| ||||||
26 | (Source: P.A. 98-109, eff. 7-25-13.)
|
| |||||||
| |||||||
1 | Section 9999. Effective date. This Act takes effect upon | ||||||
2 | becoming law.".
|