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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Manufacturing Illinois Chips for Real Opportunity (MICRO) Act. | ||||||
6 | Section 5. Purpose. It is the intent of the General | ||||||
7 | Assembly that Illinois should lead the nation in production of | ||||||
8 | semiconductors and microchips as they become even more | ||||||
9 | prevalent in everyday life. The General Assembly finds that, | ||||||
10 | through investments in semiconductors and microchips, Illinois | ||||||
11 | will be on the forefront of reshoring semiconductor and | ||||||
12 | microchip production that fuels modern technologies that are | ||||||
13 | essential to the operation of computers, phones, vehicles and | ||||||
14 | any electric product that have become essential to modern | ||||||
15 | life. This Act will create good paying jobs, and generate | ||||||
16 | long-term economic investment in the Illinois business | ||||||
17 | economy, in addition to ensuring a vital product is made in the | ||||||
18 | United States. Illinois must aggressively adopt new business | ||||||
19 | development investment tools so that Illinois can compete with | ||||||
20 | domestic and foreign competitors for semiconductor and chip | ||||||
21 | manufacturing. | ||||||
22 | Section 10. Definitions. As used in this Act: |
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1 | "Agreement" means the agreement between a taxpayer and the | ||||||
2 | Department under the provisions of this Act. | ||||||
3 | "Applicant" means a taxpayer that: (i) operates a business | ||||||
4 | in Illinois as a semiconductor manufacturer, a microchip | ||||||
5 | manufacturer, or a manufacturer of semiconductor or microchip | ||||||
6 | component parts; or (ii) is planning to locate a business | ||||||
7 | within the State of Illinois as a semiconductor manufacturer, | ||||||
8 | a microchip manufacturer, or a manufacturer of semiconductor | ||||||
9 | or microchip component parts. "Applicant" does not include a | ||||||
10 | taxpayer who closes or substantially reduces by more than 50% | ||||||
11 | operations at one location in the State and relocates | ||||||
12 | substantially the same operation to another location in the | ||||||
13 | State. This does not prohibit a Taxpayer from expanding its | ||||||
14 | operations at another location in the State. This also does | ||||||
15 | not prohibit a Taxpayer from moving its operations from one | ||||||
16 | location in the State to another location in the State for the | ||||||
17 | purpose of expanding the operation, provided that the | ||||||
18 | Department determines that expansion cannot reasonably be | ||||||
19 | accommodated within the municipality or county in which the | ||||||
20 | business is located, or, in the case of a business located in | ||||||
21 | an incorporated area of the county, within the county in which | ||||||
22 | the business is located, after conferring with the chief | ||||||
23 | elected official of the municipality or county and taking into | ||||||
24 | consideration any evidence offered by the municipality or | ||||||
25 | county regarding the ability to accommodate expansion within | ||||||
26 | the municipality or county. |
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1 | "Capital improvements" means the purchase, renovation, | ||||||
2 | rehabilitation, or construction of permanent tangible land, | ||||||
3 | buildings, structures, equipment, and furnishings in an | ||||||
4 | approved project sited in Illinois and expenditures for goods | ||||||
5 | or services that are normally capitalized, including | ||||||
6 | organizational costs and research and development costs | ||||||
7 | incurred in Illinois. For land, buildings, structures, and | ||||||
8 | equipment that are leased, the lease must equal or exceed the | ||||||
9 | term of the agreement, and the cost of the property shall be | ||||||
10 | determined from the present value, using the corporate | ||||||
11 | interest rate prevailing at the time of the application, of | ||||||
12 | the lease payments. | ||||||
13 | "Credit" or "MICRO credit" means a credit agreed to | ||||||
14 | between the Department and applicant under this Act. | ||||||
15 | "Department" means the Department of Commerce and Economic | ||||||
16 | Opportunity. | ||||||
17 | "Director" means the Director of Commerce and Economic | ||||||
18 | Opportunity. | ||||||
19 | "Energy Transition Area" means a county with less than | ||||||
20 | 100,000 people or a municipality that contains one or more of | ||||||
21 | the following: | ||||||
22 | (1) a fossil fuel plant that was retired from service | ||||||
23 | or has significant reduced service within 6 years before | ||||||
24 | the time of the application or will be retired or have | ||||||
25 | service significantly reduced within 6 years following the | ||||||
26 | time of the application; or |
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1 | (2) a coal mine that was closed or had operations | ||||||
2 | significantly reduced within 6 years before the time of | ||||||
3 | the application or is anticipated to be closed or have | ||||||
4 | operations significantly reduced within 6 years following | ||||||
5 | the time of the application. | ||||||
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. An | ||||||
10 | individual for whom a W-2 is issued by a Professional Employer | ||||||
11 | Organization (PEO) is a full-time employee if employed in the | ||||||
12 | service of the applicant for consideration for at least 35 | ||||||
13 | hours each week. | ||||||
14 | "Incremental income tax" means the total amount withheld | ||||||
15 | during the taxable year from the compensation of new employees | ||||||
16 | and, if applicable, retained employees under Article 7 of the | ||||||
17 | Illinois Income Tax Act arising from employment at a project | ||||||
18 | that is the subject of an agreement. | ||||||
19 | "Institution of higher education" or "institution" means | ||||||
20 | any accredited public or private university, college, | ||||||
21 | community college, business, technical, or vocational school, | ||||||
22 | or other accredited educational institution offering degrees | ||||||
23 | and instruction beyond the secondary school level. | ||||||
24 | "MICRO construction jobs credit" means a credit agreed to | ||||||
25 | between the Department and the applicant under this Act that | ||||||
26 | is based on the incremental income tax attributable to |
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1 | construction wages paid in connection with construction of the | ||||||
2 | project facilities. | ||||||
3 | "MICRO credit" means a credit agreed to between the | ||||||
4 | Department and the applicant under this Act that is based on | ||||||
5 | the incremental income tax attributable to new employees and, | ||||||
6 | if applicable, retained employees, and on training costs for | ||||||
7 | such employees at the applicant's project. | ||||||
8 | "Microchip" means a wafer of semiconducting material that | ||||||
9 | is less than 15 millimeters long and less than 5 millimeters | ||||||
10 | wide and is used to make an integrated circuit. | ||||||
11 | "Microchip manufacturer" means a new or existing | ||||||
12 | manufacturer that is focused on reequipping, expanding, or | ||||||
13 | establishing a manufacturing facility in Illinois that | ||||||
14 | produces microchips or key components that directly support | ||||||
15 | the functions of microchips. | ||||||
16 | "Minority person" means a minority person as defined in | ||||||
17 | the Business Enterprise for Minorities, Women, and Persons | ||||||
18 | with Disabilities Act. | ||||||
19 | "New employee" means a newly-hired full-time employee | ||||||
20 | employed to work at the project site and whose work is directly | ||||||
21 | related to the project. | ||||||
22 | "Noncompliance date" means, in the case of a taxpayer that | ||||||
23 | is not complying with the requirements of the agreement or the | ||||||
24 | provisions of this Act, the day following the last date upon | ||||||
25 | which the taxpayer was in compliance with the requirements of | ||||||
26 | the agreement and the provisions of this Act, as determined by |
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1 | the Director. | ||||||
2 | "Pass-through entity" means an entity that is exempt from | ||||||
3 | the tax under subsection (b) or (c) of Section 205 of the | ||||||
4 | Illinois Income Tax Act. | ||||||
5 | "Placed in service" means the state or condition of | ||||||
6 | readiness, availability for a specifically assigned function, | ||||||
7 | and the facility is constructed and ready to conduct its | ||||||
8 | facility operations to manufacture goods. | ||||||
9 | "Professional employer organization" (PEO) means an | ||||||
10 | employee leasing company, as defined in Section 206.1 of the | ||||||
11 | Illinois Unemployment Insurance Act. | ||||||
12 | "Program" means the Manufacturing Illinois Chips for Real | ||||||
13 | Opportunity (MICRO) program established in this Act. | ||||||
14 | "Project" means a for-profit economic development activity | ||||||
15 | for the manufacture of semiconductors and microchips. | ||||||
16 | "Related member" means a person that, with respect to the | ||||||
17 | taxpayer during any portion of the taxable year, is any one of | ||||||
18 | the following: | ||||||
19 | (1) An individual stockholder, if the stockholder and | ||||||
20 | the members of the stockholder's family (as defined in | ||||||
21 | Section 318 of the Internal Revenue Code) own directly, | ||||||
22 | indirectly, beneficially, or constructively, in the | ||||||
23 | aggregate, at least 50% of the value of the taxpayer's | ||||||
24 | outstanding stock. | ||||||
25 | (2) A partnership, estate, trust and any partner or | ||||||
26 | beneficiary, if the partnership, estate, or trust, and its |
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1 | partners or beneficiaries own directly, indirectly, | ||||||
2 | beneficially, or constructively, in the aggregate, at | ||||||
3 | least 50% of the profits, capital, stock, or value of the | ||||||
4 | taxpayer. | ||||||
5 | (3) A corporation, and any party related to the | ||||||
6 | corporation in a manner that would require an attribution | ||||||
7 | of stock from the corporation under the attribution rules | ||||||
8 | of Section 318 of the Internal Revenue Code, if the | ||||||
9 | Taxpayer owns directly, indirectly, beneficially, or | ||||||
10 | constructively at least 50% of the value of the | ||||||
11 | corporation's outstanding stock. | ||||||
12 | (4) A corporation and any party related to that | ||||||
13 | corporation in a manner that would require an attribution | ||||||
14 | of stock from the corporation to the party or from the | ||||||
15 | party to the corporation under the attribution rules of | ||||||
16 | Section 318 of the Internal Revenue Code, if the | ||||||
17 | corporation and all such related parties own in the | ||||||
18 | aggregate at least 50% of the profits, capital, stock, or | ||||||
19 | value of the taxpayer. | ||||||
20 | (5) A person to or from whom there is an attribution of | ||||||
21 | stock ownership in accordance with Section 1563(e) of the | ||||||
22 | Internal Revenue Code, except, for purposes of determining | ||||||
23 | whether a person is a related member under this paragraph, | ||||||
24 | 20% shall be substituted for 5% wherever 5% appears in | ||||||
25 | Section 1563(e) of the Internal Revenue Code. | ||||||
26 | "Retained employee" means a full-time employee employed by |
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1 | the taxpayer prior to the term of the Agreement who continues | ||||||
2 | to be employed during the term of the agreement whose job | ||||||
3 | duties are directly and substantially related to the project. | ||||||
4 | For purposes of this definition, "directly and substantially | ||||||
5 | related to the project" means at least two-thirds of the | ||||||
6 | employee's job duties must be directly related to the project | ||||||
7 | and the employee must devote at least two-thirds of his or her | ||||||
8 | time to the project. The term "retained employee" does not | ||||||
9 | include any individual who has a direct or an indirect | ||||||
10 | ownership interest of at least 5% in the profits, equity, | ||||||
11 | capital, or value of the taxpayer or a child, grandchild, | ||||||
12 | parent, or spouse, other than a spouse who is legally | ||||||
13 | separated from the individual, of any individual who has a | ||||||
14 | direct or indirect ownership of at least 5% in the profits, | ||||||
15 | equity, capital, or value of the taxpayer. | ||||||
16 | "Semiconductor" means any class of crystalline solids | ||||||
17 | intermediate in electrical conductivity between a conductor | ||||||
18 | and an insulator. | ||||||
19 | "Semiconductor manufacturer" means a new or existing | ||||||
20 | manufacturer that is focused on reequipping, expanding, or | ||||||
21 | establishing a manufacturing facility in Illinois that | ||||||
22 | produces semiconductors or key components that directly | ||||||
23 | support the functions of semiconductors. | ||||||
24 | "Statewide baseline" means the total number of full-time | ||||||
25 | employees of the applicant and any related member employed by | ||||||
26 | such entities at the time of application for incentives under |
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1 | this Act. | ||||||
2 | "Taxpayer" means an individual, corporation, partnership, | ||||||
3 | or other entity that has a legal obligation to pay Illinois | ||||||
4 | income taxes and file an Illinois income tax return. | ||||||
5 | "Training costs" means costs incurred to upgrade the | ||||||
6 | technological skills of full-time employees in Illinois and | ||||||
7 | includes: curriculum development; training materials | ||||||
8 | (including scrap product costs); trainee domestic travel | ||||||
9 | expenses; instructor costs (including wages, fringe benefits, | ||||||
10 | tuition and domestic travel expenses); rent, purchase or lease | ||||||
11 | of training equipment; and other usual and customary training | ||||||
12 | costs. "Training costs" do not include costs associated with | ||||||
13 | travel outside the United States (unless the Taxpayer receives | ||||||
14 | prior written approval for the travel by the Director based on | ||||||
15 | a showing of substantial need or other proof the training is | ||||||
16 | not reasonably available within the United States), wages and | ||||||
17 | fringe benefits of employees during periods of training, or | ||||||
18 | administrative cost related to Full-Time Employees of the | ||||||
19 | Taxpayer. | ||||||
20 | "Underserved area" means any geographic areas as defined | ||||||
21 | in Section 5-5 of the Economic Development for a Growing | ||||||
22 | Economy Tax Credit Act. | ||||||
23 | Section 15. Powers of the Department. The Department, in | ||||||
24 | addition to those powers granted under the Civil | ||||||
25 | Administrative Code of Illinois, is granted and shall have all |
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1 | the powers necessary or convenient to administer the program | ||||||
2 | under this Act and to carry out and effectuate the purposes and | ||||||
3 | provisions of this Act, including, but not limited to, the | ||||||
4 | power and authority to: | ||||||
5 | (1) adopt rules deemed necessary and appropriate for | ||||||
6 | the administration of the program, the designation of | ||||||
7 | projects, and the awarding of credits; | ||||||
8 | (2) establish forms for applications, notifications, | ||||||
9 | contracts, or any other agreements and accept applications | ||||||
10 | at any time during the year; | ||||||
11 | (3) assist taxpayers pursuant to the provisions of | ||||||
12 | this Act and cooperate with taxpayers that are parties to | ||||||
13 | agreements under this Act to promote, foster, and support | ||||||
14 | economic development, capital investment, and job creation | ||||||
15 | or retention within the State; | ||||||
16 | (4) enter into agreements and memoranda of | ||||||
17 | understanding for participation of, and engage in | ||||||
18 | cooperation with, agencies of the federal government, | ||||||
19 | units of local government, universities, research | ||||||
20 | foundations or institutions, regional economic development | ||||||
21 | corporations, or other organizations to implement the | ||||||
22 | requirements and purposes of this Act; | ||||||
23 | (5) gather information and conduct inquiries, in the | ||||||
24 | manner and by the methods it deems desirable, including | ||||||
25 | without limitation, gathering information with respect to | ||||||
26 | applicants for the purpose of making any designations or |
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1 | certifications necessary or desirable or to gather | ||||||
2 | information to assist the Department with any | ||||||
3 | recommendation or guidance in the furtherance of the | ||||||
4 | purposes of this Act; | ||||||
5 | (6) establish, negotiate and effectuate agreements and | ||||||
6 | any term, agreement, or other document with any person, | ||||||
7 | necessary or appropriate to accomplish the purposes of | ||||||
8 | this Act; and to consent, subject to the provisions of any | ||||||
9 | agreement with another party, to the modification or | ||||||
10 | restructuring of any agreement to which the Department is | ||||||
11 | a party; | ||||||
12 | (7) fix, determine, charge, and collect any premiums, | ||||||
13 | fees, charges, costs, and expenses from applicants, | ||||||
14 | including, without limitation, any application fees, | ||||||
15 | commitment fees, program fees, financing charges, or | ||||||
16 | publication fees as deemed appropriate to pay expenses | ||||||
17 | necessary or incident to the administration, staffing, or | ||||||
18 | operation in connection with the Department's activities | ||||||
19 | under this Act, or for preparation, implementation, and | ||||||
20 | enforcement of the terms of the agreement, or for | ||||||
21 | consultation, advisory and legal fees, and other costs; | ||||||
22 | however, all fees and expenses incident thereto shall be | ||||||
23 | the responsibility of the applicant; | ||||||
24 | (8) provide for sufficient personnel to permit | ||||||
25 | administration, staffing, operation, and related support | ||||||
26 | required to adequately discharge its duties and |
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1 | responsibilities described in this Act from funds made | ||||||
2 | available through charges to applicants or from funds as | ||||||
3 | may be appropriated by the General Assembly for the | ||||||
4 | administration of this Act; | ||||||
5 | (9) require applicants, upon written request, to issue | ||||||
6 | any necessary authorization to the appropriate federal, | ||||||
7 | State, or local authority for the release of information | ||||||
8 | concerning a project being considered under the provisions | ||||||
9 | of this Act, with the information requested to include, | ||||||
10 | but not be limited to, financial reports, returns, or | ||||||
11 | records relating to the taxpayer or its project; | ||||||
12 | (10) require that a taxpayer shall at all times keep | ||||||
13 | proper books of record and account in accordance with | ||||||
14 | generally accepted accounting principles consistently | ||||||
15 | applied, with the books, records, or papers related to the | ||||||
16 | agreement in the custody or control of the taxpayer open | ||||||
17 | for reasonable Department inspection and audits, and | ||||||
18 | including, without limitation, the making of copies of the | ||||||
19 | books, records, or papers, and the inspection or appraisal | ||||||
20 | of any of the taxpayer or project assets; | ||||||
21 | (11) take whatever actions are necessary or | ||||||
22 | appropriate to protect the State's interest in the event | ||||||
23 | of 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 20. Manufacturing Illinois Chips for Real | ||||||
5 | Opportunity (MICRO) Program; project applications. | ||||||
6 | (a) The Manufacturing Illinois Chips for Real Opportunity | ||||||
7 | (MICRO) Program is hereby established and shall be | ||||||
8 | administered by the Department. The Program will provide | ||||||
9 | financial incentives to eligible semiconductor manufacturers | ||||||
10 | and microchip manufacturers. | ||||||
11 | (b) Any taxpayer planning a project to be located in | ||||||
12 | Illinois may request consideration for designation of its | ||||||
13 | project as a MICRO project, by formal written letter of | ||||||
14 | request or by formal application to the Department, in which | ||||||
15 | the applicant states its intent to make at least a specified | ||||||
16 | level of investment and intends to hire a specified number of | ||||||
17 | full-time employees at a designated location in Illinois. As | ||||||
18 | circumstances require, the Department shall require a formal | ||||||
19 | application from an applicant and a formal letter of request | ||||||
20 | for assistance. | ||||||
21 | (c) In order to qualify for credits under the program, an | ||||||
22 | Applicant must: | ||||||
23 | (1) for a semiconductor manufacturer or microchip | ||||||
24 | manufacturer: | ||||||
25 | (A) make an investment of at least $1,500,000,000 |
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1 | in 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 at least 500 new full-time employee | ||||||
6 | jobs; or | ||||||
7 | (2) for a semiconductor or microchip component parts | ||||||
8 | manufacturer: | ||||||
9 | (A) make an investment of at least $300,000,000 in | ||||||
10 | capital improvements at the project site; | ||||||
11 | (B) manufacture one or more parts that are | ||||||
12 | primarily used for the manufacture of semiconductors | ||||||
13 | or microchips; | ||||||
14 | (C) to be placed in service within the State | ||||||
15 | within a 60-month period after approval of the | ||||||
16 | application; and | ||||||
17 | (D) create at least 150 new full-time employee | ||||||
18 | jobs; or | ||||||
19 | (3) for a semiconductor manufacturer or microchip | ||||||
20 | manufacturer or a semiconductor or microchip component | ||||||
21 | parts manufacturer that does not quality under paragraph | ||||||
22 | (2) above: | ||||||
23 | (A) make an investment of at least $20,000,000 in | ||||||
24 | capital improvements at the project site; | ||||||
25 | (B) to be placed in service within the State | ||||||
26 | within a 48-month period after approval of the |
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1 | application; and | ||||||
2 | (C) create at least 50 new full-time employee | ||||||
3 | jobs; or | ||||||
4 | (4) for a semiconductor manufacturer or microchip | ||||||
5 | manufacturer or a semiconductor or microchip component | ||||||
6 | parts manufacturer with existing operations in Illinois | ||||||
7 | that intends to convert or expand, in whole or in part, the | ||||||
8 | existing facility from traditional manufacturing to | ||||||
9 | semiconductor manufacturing or microchip manufacturing or | ||||||
10 | semiconductor or microchip component parts manufacturing: | ||||||
11 | (A) make an investment of at least $100,000,000 in | ||||||
12 | capital improvements at the project site; | ||||||
13 | (B) to be placed in service within the State | ||||||
14 | within a 60-month period after approval of the | ||||||
15 | application; and | ||||||
16 | (C) create the lesser of 75 new full-time employee | ||||||
17 | jobs or new full-time employee jobs equivalent to 10% | ||||||
18 | of the Statewide baseline applicable to the taxpayer | ||||||
19 | and any related member at the time of application. | ||||||
20 | (d) For any applicant creating the full-time employee jobs | ||||||
21 | noted in subsection (c), those jobs must have a total | ||||||
22 | compensation equal to or greater than 120% of the average wage | ||||||
23 | paid to full-time employees in the county where the project is | ||||||
24 | located, as determined by the U.S. Bureau of Labor Statistics. | ||||||
25 | (e) Each applicant must outline its hiring plan and | ||||||
26 | commitment to recruit and hire full-time employee positions at |
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1 | the project site. The hiring plan may include a partnership | ||||||
2 | with an institution of higher education to provide | ||||||
3 | internships, including, but not limited to, internships | ||||||
4 | supported by the Clean Jobs Workforce Network Program, or | ||||||
5 | full-time permanent employment for students at the project | ||||||
6 | site. Additionally, the applicant may create or utilize | ||||||
7 | participants from apprenticeship programs that are approved by | ||||||
8 | and registered with the United States Department of Labor's | ||||||
9 | Bureau of Apprenticeship and Training. The Applicant may apply | ||||||
10 | for apprenticeship education expense credits in accordance | ||||||
11 | with the provisions set forth in 14 Ill. Admin. Code 522. Each | ||||||
12 | applicant is required to report annually, on or before April | ||||||
13 | 15, on the diversity of its workforce in accordance with | ||||||
14 | Section 50 of this Act. For existing facilities of applicants | ||||||
15 | under paragraph (3) of subsection (b) above, if the taxpayer | ||||||
16 | expects a reduction in force due to its transition to | ||||||
17 | manufacturing semiconductors, microchips, or semiconductor or | ||||||
18 | microchip component parts, the plan submitted under this | ||||||
19 | Section must outline the taxpayer's plan to assist with | ||||||
20 | retraining its workforce aligned with the taxpayer's adoption | ||||||
21 | of new technologies and anticipated efforts to retrain | ||||||
22 | employees through employment opportunities within the | ||||||
23 | taxpayer's workforce. | ||||||
24 | (f) A taxpayer may not enter into more than one agreement | ||||||
25 | under this Act with respect to a single address or location for | ||||||
26 | the same period of time. Also, a taxpayer may not enter into an |
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1 | agreement under this Act with respect to a single address or | ||||||
2 | location for the same period of time for which the taxpayer | ||||||
3 | currently holds an active agreement under the Economic | ||||||
4 | Development for a Growing Economy Tax Credit Act. This | ||||||
5 | provision does not preclude the applicant from entering into | ||||||
6 | an additional agreement after the expiration or voluntary | ||||||
7 | termination of an earlier agreement under this Act or under | ||||||
8 | the Economic Development for a Growing Economy Tax Credit Act | ||||||
9 | to the extent that the taxpayer's application otherwise | ||||||
10 | satisfies the terms and conditions of this Act and is approved | ||||||
11 | by the Department. An applicant with an existing agreement | ||||||
12 | under the Economic Development for a Growing Economy Tax | ||||||
13 | Credit Act may submit an application for an agreement under | ||||||
14 | this Act after it terminates any existing agreement under the | ||||||
15 | Economic Development for a Growing Economy Tax Credit Act with | ||||||
16 | respect to the same address or location. | ||||||
17 | Section 25. Review of application. The Department shall | ||||||
18 | determine which projects will benefit the State. In making its | ||||||
19 | recommendation that an applicant's application for credit | ||||||
20 | should or should not be accepted, which shall occur within a | ||||||
21 | reasonable time frame as determined by the nature of the | ||||||
22 | application, the Department shall determine that all the | ||||||
23 | following conditions exist: | ||||||
24 | (1) the applicant intends to make the required | ||||||
25 | investment in the State and intends to hire the required |
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1 | number of full-time employees; | ||||||
2 | (2) the applicant's project is economically sound, | ||||||
3 | will benefit the people of the State by increasing | ||||||
4 | opportunities for employment, and will strengthen the | ||||||
5 | economy of the State; | ||||||
6 | (3) awarding the credit will result in an overall | ||||||
7 | positive fiscal impact to the State, as certified by the | ||||||
8 | Department using the best available data; and | ||||||
9 | (4) the credit is not prohibited under this Act. | ||||||
10 | Section 30. Tax credit awards. | ||||||
11 | (a) Subject to the conditions set forth in this Act, a | ||||||
12 | taxpayer is entitled to a credit against the tax imposed | ||||||
13 | pursuant to subsections (a) and (b) of Section 201 of the | ||||||
14 | Illinois Income Tax Act for a taxable year beginning on or | ||||||
15 | after January 1, 2025 if the taxpayer is awarded a credit by | ||||||
16 | the Department in accordance with an agreement under this Act. | ||||||
17 | The Department has authority to award credits under this Act | ||||||
18 | on and after January 1, 2023. | ||||||
19 | (b) A taxpayer may receive a tax credit against the tax | ||||||
20 | imposed under subsections (a) and (b) of Section 201 of the | ||||||
21 | Illinois Income Tax Act, not to exceed the sum of (i) 75% of | ||||||
22 | the incremental income tax attributable to new employees at | ||||||
23 | the applicant's project and (ii) 10% of the training costs of | ||||||
24 | the new employees. If the project is located in an underserved | ||||||
25 | area or an energy transition area, then the amount of the |
| |||||||
| |||||||
1 | credit may not exceed the sum of (i) 100% of the incremental | ||||||
2 | income tax attributable to new employees at the applicant's | ||||||
3 | project; and (ii) 10% of the training costs of the new | ||||||
4 | employees. The percentage of training costs includable in the | ||||||
5 | calculation may be increased by an additional 15% for training | ||||||
6 | costs associated with new employees that are recent (2 years | ||||||
7 | or less) graduates, certificate holders, or credential | ||||||
8 | recipients from an institution of higher education in | ||||||
9 | Illinois, or, if the training is provided by an institution of | ||||||
10 | higher education in Illinois, the Clean Jobs Workforce Network | ||||||
11 | Program, or an apprenticeship and training program located in | ||||||
12 | Illinois and approved by and registered with the United States | ||||||
13 | Department of Labor's Bureau of Apprenticeship and Training. | ||||||
14 | An applicant is also eligible for a training credit that shall | ||||||
15 | not exceed 10% of the training costs of retained employees for | ||||||
16 | the purpose of upskilling to meet the operational needs of the | ||||||
17 | applicant or the project. The percentage of training costs | ||||||
18 | includable in the calculation shall not exceed a total of 25%. | ||||||
19 | If an applicant agrees to hire the required number of new | ||||||
20 | employees, then the maximum amount of the credit for that | ||||||
21 | applicant may be increased by an amount not to exceed 25% of | ||||||
22 | the incremental income tax attributable to retained employees | ||||||
23 | at the applicant's project; provided that, in order to receive | ||||||
24 | the increase for retained employees, the applicant must, if | ||||||
25 | applicable, meet or exceed the statewide baseline. If the | ||||||
26 | Project is in an underserved area or an energy transition |
| |||||||
| |||||||
1 | area, the maximum amount of the credit attributable to | ||||||
2 | retained employees for the applicant may be increased to an | ||||||
3 | amount not to exceed 50% of the incremental income tax | ||||||
4 | attributable to retained employees at the applicant's project; | ||||||
5 | provided that, in order to receive the increase for retained | ||||||
6 | employees, the applicant must meet or exceed the statewide | ||||||
7 | baseline. Credits awarded may include credit earned for | ||||||
8 | incremental income tax withheld and training costs incurred by | ||||||
9 | the taxpayer beginning on or after January 1, 2023. Credits so | ||||||
10 | earned and certified by the Department may be applied against | ||||||
11 | the tax imposed by subsections (a) and (b) of Section 201 of | ||||||
12 | the Illinois Income Tax Act for taxable years beginning on or | ||||||
13 | after January 1, 2025. | ||||||
14 | (c) MICRO Construction Jobs Credit. For construction wages | ||||||
15 | associated with a project that qualified for a credit under | ||||||
16 | subsection (b), the taxpayer may receive a tax credit against | ||||||
17 | the tax imposed under subsections (a) and (b) of Section 201 of | ||||||
18 | the Illinois Income Tax Act in an amount equal to 50% of the | ||||||
19 | incremental income tax attributable to construction wages paid | ||||||
20 | in connection with construction of the project facilities, as | ||||||
21 | a jobs credit for workers hired to construct the project. | ||||||
22 | The MICRO Construction Jobs Credit may not exceed 75% of | ||||||
23 | the amount of the incremental income tax attributable to | ||||||
24 | construction wages paid in connection with construction of the | ||||||
25 | project facilities if the project is in an underserved area or | ||||||
26 | an energy transition area. |
| |||||||
| |||||||
1 | (d) The Department shall certify to the Department of | ||||||
2 | Revenue: (1) the identity of Taxpayers that are eligible for | ||||||
3 | the MICRO Credit and MICRO Construction Jobs Credit; (2) the | ||||||
4 | amount of the MICRO Credits and MICRO Construction Jobs | ||||||
5 | Credits awarded in each calendar year; and (3) the amount of | ||||||
6 | the MICRO Credit and MICRO Construction Jobs Credit claimed in | ||||||
7 | each calendar year. MICRO Credits awarded may include credit | ||||||
8 | earned for Incremental Income Tax withheld and Training Costs | ||||||
9 | incurred by the Taxpayer beginning on or after January 1, | ||||||
10 | 2023. Credits so earned and certified by the Department may be | ||||||
11 | applied against the tax imposed by Section 201(a) and (b) of | ||||||
12 | the Illinois Income Tax Act for taxable years beginning on or | ||||||
13 | after January 1, 2025. | ||||||
14 | (e) Applicants seeking certification for a tax credits | ||||||
15 | related to the construction of the project facilities in the | ||||||
16 | State shall require the contractor to enter into a project | ||||||
17 | labor agreement that conforms with the Project Labor | ||||||
18 | Agreements Act. | ||||||
19 | (f) Any applicant issued a certificate for a tax credit or | ||||||
20 | tax exemption under this Act must annually report to the | ||||||
21 | Department the total project tax benefits received. Reports | ||||||
22 | are due no later than May 31 of each year and shall cover the | ||||||
23 | previous calendar year. The first report is for the 2023 | ||||||
24 | calendar year and is due no later than May 31, 2023. | ||||||
25 | (g) Nothing in this Act shall prohibit an award of credit | ||||||
26 | to an applicant that uses a PEO if all other award criteria are |
| |||||||
| |||||||
1 | satisfied. | ||||||
2 | (h) With respect to any portion of a Credit that is based | ||||||
3 | on the incremental income tax attributable to new employees or | ||||||
4 | retained employees, in lieu of the Credit allowed under this | ||||||
5 | Act against the taxes imposed pursuant to subsections (a) and | ||||||
6 | (b) of Section 201 of the Illinois Income Tax Act, a taxpayer | ||||||
7 | that otherwise meets the criteria set forth in this Section, | ||||||
8 | the taxpayer may elect to claim the credit, on or after January | ||||||
9 | 1, 2025, against its obligation to pay over withholding under | ||||||
10 | Section 704A of the Illinois Income Tax Act. The election | ||||||
11 | shall be made in the manner prescribed by the Department of | ||||||
12 | Revenue and once made shall be irrevocable. | ||||||
13 | Section 35. Relocation of jobs in Illinois. A taxpayer is | ||||||
14 | not entitled to claim a credit provided by this Act with | ||||||
15 | respect to any jobs that the Taxpayer relocates from one site | ||||||
16 | in Illinois to another site in Illinois. Any full-time | ||||||
17 | employee relocated to Illinois in connection with a qualifying | ||||||
18 | project is deemed to be a new employee for purposes of this | ||||||
19 | Act. Determinations under this Section shall be made by the | ||||||
20 | Department. | ||||||
21 | Section 40. Amount and duration of the credits; limitation | ||||||
22 | to amount of costs of specified items. The Department shall | ||||||
23 | determine the amount and duration of the credit awarded under | ||||||
24 | this Act, subject to the limitations set forth in this Act. For |
| |||||||
| |||||||
1 | a project that qualified under paragraph (1), (2), or (4) of | ||||||
2 | subsection (c) of Section 20, the duration of the credit may | ||||||
3 | not exceed 15 taxable years. For project that qualified under | ||||||
4 | paragraph (3) of subsection (c) of Section 20, the duration of | ||||||
5 | the credit may not exceed 10 taxable years. The credit may be | ||||||
6 | stated as a percentage of the incremental income tax and | ||||||
7 | training costs attributable to the applicant's project and may | ||||||
8 | include a fixed dollar limitation. | ||||||
9 | Nothing in this Section shall prevent the Department, in | ||||||
10 | consultation with the Department of Revenue, from adopting | ||||||
11 | rules to extend the sunset of any earned, existing, and unused | ||||||
12 | tax credit or credits a taxpayer may be in possession of. | ||||||
13 | Section 45. Contents of agreements with applicants. | ||||||
14 | (a) The Department shall enter into an agreement with an | ||||||
15 | applicant that is awarded a credit under this Act. The | ||||||
16 | agreement shall include all of the following: | ||||||
17 | (1) A detailed description of the project that is the | ||||||
18 | subject of the agreement, including the location and | ||||||
19 | amount of the investment and jobs created or retained. | ||||||
20 | (2) The duration of the credit, the first taxable year | ||||||
21 | for which the credit may be awarded, and the first taxable | ||||||
22 | year in which the credit may be used by the taxpayer. | ||||||
23 | (3) The credit amount that will be allowed for each | ||||||
24 | taxable year. | ||||||
25 | (4) For a project qualified under paragraphs (1), (2), |
| |||||||
| |||||||
1 | or (4) of subsection (c) of Section 20, a requirement that | ||||||
2 | the taxpayer shall maintain operations at the project | ||||||
3 | location a minimum number of years not to exceed 15. For | ||||||
4 | project qualified under paragraph (3) of subsection (c) of | ||||||
5 | Section 20, a requirement that the taxpayer shall maintain | ||||||
6 | operations at the project location a minimum number of | ||||||
7 | years not to exceed 10. | ||||||
8 | (5) A specific method for determining the number of | ||||||
9 | new employees and, if applicable, retained employees, | ||||||
10 | employed during a taxable year. | ||||||
11 | (6) A requirement that the taxpayer shall annually | ||||||
12 | report to the Department the number of new employees, the | ||||||
13 | incremental income tax withheld in connection with the new | ||||||
14 | employees, and any other information the Department deems | ||||||
15 | necessary and appropriate to perform its duties under this | ||||||
16 | Act. | ||||||
17 | (7) A requirement that the Director is authorized to | ||||||
18 | verify with the appropriate State agencies the amounts | ||||||
19 | reported under paragraph (6), and after doing so shall | ||||||
20 | issue a certificate to the taxpayer stating that the | ||||||
21 | amounts have been verified. | ||||||
22 | (8) A requirement that the taxpayer shall provide | ||||||
23 | written notification to the Director not more than 30 days | ||||||
24 | after the taxpayer makes or receives a proposal that would | ||||||
25 | transfer the taxpayer's State tax liability obligations to | ||||||
26 | a successor taxpayer. |
| |||||||
| |||||||
1 | (9) A detailed description of the number of new | ||||||
2 | employees to be hired, and the occupation and payroll of | ||||||
3 | full-time jobs to be created or retained because of the | ||||||
4 | project. | ||||||
5 | (10) The minimum investment the taxpayer will make in | ||||||
6 | capital improvements, the time period for placing the | ||||||
7 | property in service, and the designated location in | ||||||
8 | Illinois for the investment. | ||||||
9 | (11) A requirement that the taxpayer shall provide | ||||||
10 | written notification to the Director and the Director's | ||||||
11 | designee not more than 30 days after the taxpayer | ||||||
12 | determines that the minimum job creation or retention, | ||||||
13 | employment payroll, or investment no longer is or will be | ||||||
14 | achieved or maintained as set forth in the terms and | ||||||
15 | conditions of the agreement. Additionally, the | ||||||
16 | notification should outline to the Department the number | ||||||
17 | of layoffs, date of the layoffs, and detail taxpayer's | ||||||
18 | efforts to provide career and training counseling for the | ||||||
19 | impacted workers with industry-related certifications and | ||||||
20 | trainings. | ||||||
21 | (12) A provision that, if the total number of new | ||||||
22 | employees falls below a specified level, the allowance of | ||||||
23 | credit shall be suspended until the number of new | ||||||
24 | employees equals or exceeds the agreement amount. | ||||||
25 | (13) If applicable, a provision that specifies the | ||||||
26 | statewide baseline at the time of application for retained |
| |||||||
| |||||||
1 | employees. Additionally, the agreement must have a | ||||||
2 | provision addressing if the total number retained | ||||||
3 | employees falls below the statewide baseline, the | ||||||
4 | allowance of the credit shall be suspended until the | ||||||
5 | number of retained employees equals or exceeds the | ||||||
6 | agreement amount. | ||||||
7 | (14) A detailed description of the items for which the | ||||||
8 | costs incurred by the Taxpayer will be included in the | ||||||
9 | limitation on the Credit. | ||||||
10 | (15) A provision stating that if the taxpayer fails to | ||||||
11 | meet either the investment or job creation and retention | ||||||
12 | requirements specified in the agreement during the entire | ||||||
13 | 5-year period beginning on the first day of the first | ||||||
14 | taxable year in which the agreement is executed and ending | ||||||
15 | on the last day of the fifth taxable year after the | ||||||
16 | agreement is executed, then the agreement is automatically | ||||||
17 | terminated on the last day of the fifth taxable year after | ||||||
18 | the agreement is executed, and the taxpayer is not | ||||||
19 | entitled to the award of any credits for any of that 5-year | ||||||
20 | period. | ||||||
21 | (16) A provision stating that if the taxpayer ceases | ||||||
22 | principal operations with the intent to permanently shut | ||||||
23 | down the project in the State during the term of the | ||||||
24 | Agreement, then the entire credit amount awarded to the | ||||||
25 | taxpayer prior to the date the taxpayer ceases principal | ||||||
26 | operations shall be returned to the Department and shall |
| |||||||
| |||||||
1 | be reallocated to the local workforce investment area in | ||||||
2 | which the project was located. | ||||||
3 | (17) A provision stating that the Taxpayer must | ||||||
4 | provide the reports outlined in Sections 50 and 55 on or | ||||||
5 | before April 15 each year. | ||||||
6 | (18) A provision requiring the taxpayer to report | ||||||
7 | annually its contractual obligations or otherwise with a | ||||||
8 | recycling facility for its operations. | ||||||
9 | (19) Any other performance conditions or contract | ||||||
10 | provisions the Department determines are necessary or | ||||||
11 | appropriate. | ||||||
12 | (20) Each taxpayer under paragraph (1) of subsection | ||||||
13 | (c) of Section 20 above shall maintain labor neutrality | ||||||
14 | toward any union organizing campaign for any employees of | ||||||
15 | the taxpayer assigned to work on the premises of the | ||||||
16 | project. This paragraph shall not apply to a manufacturer | ||||||
17 | who is subject to collective bargaining agreement entered | ||||||
18 | into prior to the taxpayer filing an application pursuant | ||||||
19 | to this Act. | ||||||
20 | (b) The Department shall post on its website the terms of | ||||||
21 | each agreement entered into under this Act. Such information | ||||||
22 | shall be posted within 10 days after entering into the | ||||||
23 | agreement and must include the following: | ||||||
24 | (1) the name of the taxpayer; | ||||||
25 | (2) the location of the project; | ||||||
26 | (3) the estimated value of the credit; |
| |||||||
| |||||||
1 | (4) the number of new employee jobs and, if | ||||||
2 | applicable, number of retained employee jobs at the | ||||||
3 | project; and | ||||||
4 | (5) whether or not the project is in an underserved | ||||||
5 | area or energy transition area. | ||||||
6 | Section 50. Diversity report on the taxpayer's workforce, | ||||||
7 | board of directors, and vendors. | ||||||
8 | (a) Each taxpayer with a workforce of 100 or more | ||||||
9 | employees and with an agreement for a credit under this Act | ||||||
10 | shall, starting on April 15, 2026, and every year thereafter | ||||||
11 | prior to April 15, for which the Taxpayer has an Agreement | ||||||
12 | under this Act, submit to the Department an annual report | ||||||
13 | detailing the diversity of the taxpayer's own workforce, | ||||||
14 | including full-time and part-time employees, contractors, and | ||||||
15 | board of directors' membership. Any taxpayer seeking to claim | ||||||
16 | a credit under this Act that fails to timely submit the | ||||||
17 | required report shall not receive a credit for that taxable | ||||||
18 | year unless and until such report is finalized and submitted | ||||||
19 | to the Department. The report should also address the | ||||||
20 | Taxpayer's best efforts to meet or exceed the recruitment and | ||||||
21 | hiring plan outlined in the application referenced in Section | ||||||
22 | 20. Those reports shall be submitted in the form and manner | ||||||
23 | required by the Department. | ||||||
24 | (b) Vendor diversity and annual report. Each taxpayer with | ||||||
25 | a workforce of 100 or more full-time employees shall, starting |
| |||||||
| |||||||
1 | on April 15, 2025 and every year thereafter for which the | ||||||
2 | taxpayer has an Agreement under this Act, report on the | ||||||
3 | diversity of the vendors that it utilizes, for publication on | ||||||
4 | the Department's website, and include the following | ||||||
5 | information: | ||||||
6 | (1) a point of contact for potential vendors to | ||||||
7 | register with the taxpayer's project; | ||||||
8 | (2) certifications that the taxpayer accepts or | ||||||
9 | recognizes for minority and women-owned businesses as | ||||||
10 | entities; | ||||||
11 | (3) the taxpayer's goals to contract with diverse | ||||||
12 | vendors, if any, for the next fiscal year for the entire | ||||||
13 | budget of the taxpayer's project; | ||||||
14 | (4) for the last fiscal year, the actual contractual | ||||||
15 | spending for the entire budget of the project and the | ||||||
16 | actual spending for minority-owned businesses and | ||||||
17 | women-owned businesses, expressed as a percentage of the | ||||||
18 | total budget for actual spending for the project; | ||||||
19 | (5) a narrative explaining the results of the report | ||||||
20 | and the taxpayer's plan to address the voluntary goals for | ||||||
21 | the next fiscal year; and | ||||||
22 | (6) a copy of the taxpayer's submission of vendor | ||||||
23 | diversity information to the federal government, including | ||||||
24 | but not limited to vendor diversity goals and actual | ||||||
25 | contractual spending for minority-and women-owned | ||||||
26 | businesses, if the Taxpayer is a federal contractor and is |
| |||||||
| |||||||
1 | required by the federal government to submit such | ||||||
2 | information. | ||||||
3 | Section 55. Sexual harassment policy report. Each taxpayer | ||||||
4 | claiming a credit under this Act shall, prior to April 15 of | ||||||
5 | each taxable year for which the taxpayer claims a credit under | ||||||
6 | this Act, submit to the Department a report detailing that | ||||||
7 | taxpayer's sexual harassment policy, which contains, at a | ||||||
8 | minimum, the following information: (i) the illegality of | ||||||
9 | sexual harassment; (ii) the definition of sexual harassment | ||||||
10 | under State law; (iii) a description of sexual harassment, | ||||||
11 | utilizing examples; (iv) the vendor's internal complaint | ||||||
12 | process, including penalties; (v) the legal recourse and | ||||||
13 | investigative and complaint processes available through the | ||||||
14 | Department; (vi) directions on how to contact the Department; | ||||||
15 | and (vii) protection against retaliation as provided by | ||||||
16 | Section 6-101 of the Illinois Human Rights Act. A copy of the | ||||||
17 | policy shall be provided to the Department upon request. The | ||||||
18 | reports required under this Section shall be submitted in a | ||||||
19 | form and manner determined by the Department. | ||||||
20 | Section 60. Certificate of verification; submission to the | ||||||
21 | Department of Revenue. | ||||||
22 | (a) A taxpayer claiming a credit under this Act shall | ||||||
23 | submit to the Department of Revenue a copy of the Director's | ||||||
24 | certificate of verification under this Act for the taxable |
| |||||||
| |||||||
1 | year. However, failure to submit a copy of the certificate | ||||||
2 | with the taxpayer's tax return shall not invalidate a claim | ||||||
3 | for a credit. | ||||||
4 | (b) For a taxpayer to be eligible for a certificate of | ||||||
5 | verification, the taxpayer shall provide proof as required by | ||||||
6 | the Department, prior to the end of each calendar year, | ||||||
7 | including, but not limited to, attestation by the taxpayer | ||||||
8 | that: | ||||||
9 | (1) The project has achieved the level of new employee | ||||||
10 | jobs specified in the agreement. | ||||||
11 | (2) The project has achieved the level of annual | ||||||
12 | payroll in Illinois specified in its agreement. | ||||||
13 | (3) The project has achieved the level of capital | ||||||
14 | improvements in Illinois specified in its agreement. | ||||||
15 | Section 65. Certified payroll. | ||||||
16 | (a) Each contractor and subcontractor that is engaged in | ||||||
17 | construction work on project facilities for a taxpayer who | ||||||
18 | seeks to apply for a MICRO Construction Jobs Credit shall: | ||||||
19 | (1) make and keep, for a period of 5 years from the | ||||||
20 | date of the last payment made on a contract or subcontract | ||||||
21 | for construction of facilities for a project pursuant to | ||||||
22 | an agreement, records of all laborers and other workers | ||||||
23 | employed by the contractor or subcontractor on the | ||||||
24 | project; the records shall include: | ||||||
25 | (A) the worker's name; |
| |||||||
| |||||||
1 | (B) the worker's address; | ||||||
2 | (C) the worker's telephone number, if available; | ||||||
3 | (D) the worker's social security number; | ||||||
4 | (E) the worker's classification or | ||||||
5 | classifications; | ||||||
6 | (F) the worker's gross and net wages paid in each | ||||||
7 | pay period; | ||||||
8 | (G) the worker's number of hours worked in each | ||||||
9 | day; | ||||||
10 | (H) the worker's starting and ending times of work | ||||||
11 | each day; | ||||||
12 | (I) the worker's hourly wage rate; and | ||||||
13 | (J) the worker's hourly overtime wage rate; and | ||||||
14 | (2) no later than the 15th day of each calendar month, | ||||||
15 | provide a certified payroll for the immediately preceding | ||||||
16 | month to the taxpayer in charge of the project; within 5 | ||||||
17 | business days after receiving the certified payroll, the | ||||||
18 | Taxpayer shall file the certified payroll with the | ||||||
19 | Department of Labor and the Department; a certified | ||||||
20 | payroll must be filed for only those calendar months | ||||||
21 | during which construction on the project facilities has | ||||||
22 | occurred; the certified payroll shall consist of a | ||||||
23 | complete copy of the records identified in paragraph (1), | ||||||
24 | but may exclude the starting and ending times of work each | ||||||
25 | day; the certified payroll shall be accompanied by a | ||||||
26 | statement signed by the contractor or subcontractor or an |
| |||||||
| |||||||
1 | officer, employee, or agent of the contractor or | ||||||
2 | subcontractor which avers that: | ||||||
3 | (A) he or she has examined the certified payroll | ||||||
4 | records required to be submitted by the Act and such | ||||||
5 | records are true and accurate; and | ||||||
6 | (B) the contractor or subcontractor is aware that | ||||||
7 | filing a certified payroll that he or she knows to be | ||||||
8 | false is a Class A misdemeanor. | ||||||
9 | A general contractor is not prohibited from relying on a | ||||||
10 | certified payroll of a lower-tier subcontractor, provided the | ||||||
11 | general contractor does not knowingly rely upon a | ||||||
12 | subcontractor's false certification. | ||||||
13 | (b) Any contractor or subcontractor subject to this | ||||||
14 | Section, and any officer, employee, or agent of such | ||||||
15 | contractor or subcontractor whose duty as an officer, | ||||||
16 | employee, or agent it is to file a certified payroll under this | ||||||
17 | Section, who willfully fails to file such a certified payroll, | ||||||
18 | on or before the date such certified payroll is required to be | ||||||
19 | filed and any person who willfully files a false certified | ||||||
20 | payroll as to any material fact is in violation of this Act and | ||||||
21 | guilty of a Class A misdemeanor and may be enforced by the | ||||||
22 | Illinois Department of Labor or the Department. The Attorney | ||||||
23 | General shall represented the Illinois Department of Labor or | ||||||
24 | the Department in the proceeding. | ||||||
25 | (c) The taxpayer in charge of the project shall keep the | ||||||
26 | records submitted in accordance with this Section for a period |
| |||||||
| |||||||
1 | of 5 years from the date of the last payment for work on a | ||||||
2 | contract or subcontract for the project. | ||||||
3 | (d) The records submitted in accordance with this Section | ||||||
4 | shall be considered public records, except an employee's | ||||||
5 | address, telephone number, and social security number, which | ||||||
6 | shall be redacted. The records shall be made publicly | ||||||
7 | available in accordance with the Freedom of Information Act. | ||||||
8 | The contractor or subcontractor shall submit reports to the | ||||||
9 | Department of Labor electronically that meet the requirements | ||||||
10 | of this subsection and shall share the information with the | ||||||
11 | Department to comply with the awarding of the MICRO | ||||||
12 | Construction Jobs Credit. A contractor, subcontractor, or | ||||||
13 | public body may retain records required under this Section in | ||||||
14 | paper or electronic format. | ||||||
15 | (e) Upon 7 business days' notice, the contractor and each | ||||||
16 | subcontractor shall make available for inspection and copying | ||||||
17 | at a location within this State during reasonable hours, the | ||||||
18 | records identified in paragraph (1) of this subsection to the | ||||||
19 | Taxpayer in charge of the Project, its officers and agents, | ||||||
20 | the Director of the Department of Labor and his/her deputies | ||||||
21 | and agents, and to federal, State, or local law enforcement | ||||||
22 | agencies and prosecutors. | ||||||
23 | Section 70. Noncompliance; notice; assessment. If the | ||||||
24 | Director determines that a taxpayer who has received a credit | ||||||
25 | under this Act is not complying with the requirements of the |
| |||||||
| |||||||
1 | agreement or all of the provisions of this Act, the Director | ||||||
2 | shall provide notice to the taxpayer of the alleged | ||||||
3 | noncompliance and allow the taxpayer a hearing under the | ||||||
4 | provisions of the Illinois Administrative Procedure Act. If, | ||||||
5 | after such notice and any hearing, the Director determines | ||||||
6 | that a noncompliance exists, the Director shall issue to the | ||||||
7 | Department of Revenue notice to that effect, stating the | ||||||
8 | noncompliance date. If, during the term of an agreement, the | ||||||
9 | taxpayer ceases operations at a project location that is the | ||||||
10 | subject of that agreement with the intent to terminate | ||||||
11 | operations in the State, the Department and the Department of | ||||||
12 | Revenue shall recapture from the taxpayer the entire credit | ||||||
13 | amount awarded under that agreement prior to the date the | ||||||
14 | taxpayer ceases operations. The Department shall, subject to | ||||||
15 | appropriation, reallocate the recaptured amounts within 6 | ||||||
16 | months to the local workforce investment area in which the | ||||||
17 | project was located for purposes of workforce development, | ||||||
18 | expanded opportunities for unemployed persons, and expanded | ||||||
19 | opportunities for women and minority persons in the workforce. | ||||||
20 | The taxpayer will be ineligible for future funding under other | ||||||
21 | State tax credit or exemption programs for a 36-month period. | ||||||
22 | Noncompliance of the agreement with result in a default of | ||||||
23 | other agreements for State tax credits and exemption programs | ||||||
24 | for the project. | ||||||
25 | Section 75. Annual report. |
| |||||||
| |||||||
1 | (a) On or before July 1 each year, the Department shall | ||||||
2 | submit a report on the tax credit program under this Act to the | ||||||
3 | Governor and the General Assembly. The report shall include | ||||||
4 | information on the number of agreements that were entered into | ||||||
5 | under this Act during the preceding calendar year, a | ||||||
6 | description of the project that is the subject of each | ||||||
7 | agreement, an update on the status of projects under | ||||||
8 | agreements entered into before the preceding calendar year, | ||||||
9 | and the sum of the credits awarded under this Act. A copy of | ||||||
10 | the report shall be delivered to the Governor and to each | ||||||
11 | member of the General Assembly. | ||||||
12 | (b) The report must include, for each agreement: | ||||||
13 | (1) the original estimates of the value of the credit | ||||||
14 | and the number of new employee jobs to be created and, if | ||||||
15 | applicable, the number of retained employee jobs; | ||||||
16 | (2) any relevant modifications to existing agreements; | ||||||
17 | (3) a statement of the progress made by each taxpayer | ||||||
18 | in meeting the terms of the original agreement; | ||||||
19 | (4) a statement of wages paid to new employees and, if | ||||||
20 | applicable, retained employees in the State; and | ||||||
21 | (5) a copy of the original agreement or link to the | ||||||
22 | agreement on the Department's website. | ||||||
23 | Section 80. Evaluation of tax credit program. The | ||||||
24 | Department shall evaluate the tax credit program every three | ||||||
25 | years and issue a report. The evaluation shall include an |
| |||||||
| |||||||
1 | assessment of the effectiveness of the program in creating new | ||||||
2 | jobs in Illinois and of the revenue impact of the program and | ||||||
3 | may include a review of the practices and experiences of other | ||||||
4 | states with similar programs. The Director shall submit a | ||||||
5 | report on the evaluation to the Governor and the General | ||||||
6 | Assembly three years after the Effective Date of the Act and | ||||||
7 | every three years thereafter. | ||||||
8 | Section 85. Sunset of new agreements. The Department shall | ||||||
9 | not enter into any new Agreements under the provisions of this | ||||||
10 | Act after December 31, 2028. | ||||||
11 | Section 95. Utility tax exemptions for MICRO projects. The | ||||||
12 | Department may certify a taxpayer with a credit for a project | ||||||
13 | that meets the qualifications under Section paragraphs (1), | ||||||
14 | (2), and (4) of subsection (c) of Section 20, subject to an | ||||||
15 | agreement under this Act, for an exemption from the tax | ||||||
16 | imposed at the project site by Section 2-4 of the Electricity | ||||||
17 | Excise Tax Law. To receive such certification, the taxpayer | ||||||
18 | must be registered to self-assess that tax. The taxpayer is | ||||||
19 | also exempt from any additional charges added to the | ||||||
20 | taxpayer's utility bills at the project site as a pass-on of | ||||||
21 | State utility taxes under Section 9-222 of the Public | ||||||
22 | Utilities Act. The taxpayer must meet any other the criteria | ||||||
23 | for certification set by the Department. | ||||||
24 | The Department shall determine the period during which the |
| |||||||
| |||||||
1 | exemption from the Electricity Excise Tax Law and the charges | ||||||
2 | imposed under Section 9-222 of the Public Utilities Act are in | ||||||
3 | effect, which shall not exceed 10 years from the date of the | ||||||
4 | taxpayer's initial receipt of certification from the | ||||||
5 | Department under this Section. | ||||||
6 | The Department is authorized to adopt rules to carry out | ||||||
7 | the provisions of this Section, including procedures to apply | ||||||
8 | for the exemptions; to define the amounts and types of | ||||||
9 | eligible investments that an applicant must make in order to | ||||||
10 | receive electricity excise tax exemptions or exemptions from | ||||||
11 | the additional charges imposed under Section 9-222 and the | ||||||
12 | Public Utilities Act; to approve such electricity excise tax | ||||||
13 | exemptions for applicants whose investments are not yet placed | ||||||
14 | in service; and to require that an applicant granted an | ||||||
15 | electricity excise tax exemption or an exemption from | ||||||
16 | additional charges under Section 9-222 of the Public Utilities | ||||||
17 | Act repay the exempted amount if the Applicant fails to comply | ||||||
18 | with the terms and conditions of the agreement. | ||||||
19 | Upon certification by the Department under this Section, | ||||||
20 | the Department shall notify the Department of Revenue of the | ||||||
21 | certification. The Department of Revenue shall notify the | ||||||
22 | public utilities of the exempt status of any taxpayer | ||||||
23 | certified for exemption under this Act from the electricity | ||||||
24 | excise tax or pass-on charges. The exemption status shall take | ||||||
25 | effect within 3 months after certification of the taxpayer and | ||||||
26 | notice to the Department of Revenue by the Department. |
| |||||||
| |||||||
1 | Section 100. Investment tax credits for MICRO projects. | ||||||
2 | Subject to the conditions set forth in this Act, a Taxpayer is | ||||||
3 | entitled to an investment tax credit toward taxes imposed | ||||||
4 | pursuant to subsections (a) and (b) of Section 201 of the | ||||||
5 | Illinois Income Tax Act for a taxable year in which the | ||||||
6 | Taxpayer, in accordance with an Agreement under this Act for | ||||||
7 | that taxable year, invests in qualified property which is | ||||||
8 | placed in service at the site of a project. The Department has | ||||||
9 | authority to certify the amount of such investment tax credits | ||||||
10 | to the Department of Revenue. The credit shall be 0.5% of the | ||||||
11 | basis for such property and shall be determined in accordance | ||||||
12 | with Section 239 of the Illinois Income Tax Act. The credit | ||||||
13 | shall be available only in the taxable year in which the | ||||||
14 | property is placed in service and shall not be allowed to the | ||||||
15 | extent that it would reduce a taxpayer's liability for the tax | ||||||
16 | imposed by subsections (a) and (b) of Section 201 of the | ||||||
17 | Illinois Income Tax Act to below zero. Unused credit may be | ||||||
18 | carried forward in accordance with Section 239 of the Illinois | ||||||
19 | Income Tax Act for use in future taxable years. Any taxpayer | ||||||
20 | qualifying for the Investment Tax Credit shall not be eligible | ||||||
21 | for either the investment tax credits in Section 201(e), (f), | ||||||
22 | or (h) of the Illinois Income Tax Act. | ||||||
23 | Section 105. Building materials exemptions for project | ||||||
24 | sites. |
| |||||||
| |||||||
1 | (a) The Department may certify a Taxpayer with a project | ||||||
2 | that meets the qualifications under paragraphs (1), (2), or | ||||||
3 | (4) of subsection (c) of Section 20, subject to an agreement | ||||||
4 | under this Act, for an exemption from any State or local use | ||||||
5 | tax or retailers' occupation tax on building materials for the | ||||||
6 | construction of its project facilities. The taxpayer must meet | ||||||
7 | any criteria for certification set by the Department under | ||||||
8 | this Act. | ||||||
9 | The Department shall determine the period during which the | ||||||
10 | exemption from State and local use tax and retailers' | ||||||
11 | occupation tax are in effect, but in no event shall exceed 5 | ||||||
12 | years in accordance with Section 5m of the Retailers' | ||||||
13 | Occupation Tax Act. | ||||||
14 | The Department is authorized to promulgate rules and | ||||||
15 | regulations to carry out the provisions of this Section, | ||||||
16 | including procedures to apply for the exemption; to define the | ||||||
17 | amounts and types of eligible investments that an applicant | ||||||
18 | must make in order to receive tax exemption; to approve such | ||||||
19 | tax exemption for an applicant whose investments are not yet | ||||||
20 | placed in service; and to require that an applicant granted | ||||||
21 | exemption repay the exempted amount if the applicant fails to | ||||||
22 | comply with the terms and conditions of the agreement with the | ||||||
23 | Department. | ||||||
24 | Upon certification by the Department under this Section, | ||||||
25 | the Department shall notify the Department of Revenue of the | ||||||
26 | certification. The exemption status shall take effect within 3 |
| |||||||
| |||||||
1 | months after certification of the taxpayer and notice to the | ||||||
2 | Department of Revenue by the Department. | ||||||
3 | Section 905. The Illinois Income Tax Act is amended by | ||||||
4 | changing Section 704A and by adding Sections 238 and 239 as | ||||||
5 | follows: | ||||||
6 | (35 ILCS 5/238 new) | ||||||
7 | Sec. 238. MICRO credits. | ||||||
8 | (a) For tax years beginning on or after January 1, 2025, a | ||||||
9 | taxpayer who has entered into an agreement under the | ||||||
10 | Manufacturing Illinois Chips for Real Opportunity (MICRO) Act | ||||||
11 | is entitled to a credit against the taxes imposed under | ||||||
12 | subsections (a) and (b) of Section 201 of this Act in an amount | ||||||
13 | to be determined in the Agreement. The taxpayer may elect to | ||||||
14 | claim the credit, on or after January 1, 2026, against its | ||||||
15 | obligation to pay over withholding under Section 704A of this | ||||||
16 | Act as provided in this Section. If the taxpayer is a | ||||||
17 | partnership or Subchapter S corporation, the credit shall be | ||||||
18 | allowed to the partners or shareholders in accordance with the | ||||||
19 | determination of income and distributive share of income under | ||||||
20 | Sections 702 and 704 and subchapter S of the Internal Revenue | ||||||
21 | Code. The Department, in cooperation with the Department of | ||||||
22 | Commerce and Economic Opportunity, shall adopt rules to | ||||||
23 | enforce and administer the provisions of this Section. This | ||||||
24 | Section is exempt from the provisions of Section 250 of this |
| |||||||
| |||||||
1 | Act. | ||||||
2 | (b) The credit is subject to the conditions set forth in | ||||||
3 | the agreement and the following limitations: | ||||||
4 | (1) The tax credit may be in the form of either or both | ||||||
5 | the MICRO Illinois Credit or the MICRO Construction Jobs | ||||||
6 | Credit and shall not exceed the percentage of incremental | ||||||
7 | income tax and percentage of training costs permitted in | ||||||
8 | that Act and in the agreement with respect to the project. | ||||||
9 | (2) The amount of the credit allowed during a tax year | ||||||
10 | plus the sum of all amounts allowed in prior tax years | ||||||
11 | shall not exceed the maximum amount of credit established | ||||||
12 | in the agreement. | ||||||
13 | (3) The amount of the credit shall be determined on an | ||||||
14 | annual basis. Except as applied in a carryover year | ||||||
15 | pursuant to paragraph (4), the credit may not be applied | ||||||
16 | against any State income tax liability in more than 15 | ||||||
17 | taxable years. | ||||||
18 | (4) The credit may not exceed the amount of taxes | ||||||
19 | imposed pursuant to subsections (a) and (b) of Section 201 | ||||||
20 | of this Act. Any credit that is unused in the year the | ||||||
21 | credit is computed may be carried forward and applied to | ||||||
22 | the tax liability of the 5 taxable years following the | ||||||
23 | excess credit year. The credit shall be applied to the | ||||||
24 | earliest year for which there is a tax liability. If there | ||||||
25 | are credits from more than one tax year that are available | ||||||
26 | to offset a liability, the earlier credit shall be applied |
| |||||||
| |||||||
1 | first. | ||||||
2 | (5) No credit shall be allowed with respect to any | ||||||
3 | agreement for any taxable year ending after the | ||||||
4 | noncompliance date. Upon receiving notification by the | ||||||
5 | Department of Commerce and Economic Opportunity of the | ||||||
6 | noncompliance of a taxpayer with an agreement, the | ||||||
7 | Department shall notify the taxpayer that no credit is | ||||||
8 | allowed with respect to that agreement for any taxable | ||||||
9 | year ending after the noncompliance date, as stated in | ||||||
10 | such notification. If any credit has been allowed with | ||||||
11 | respect to an agreement for a taxable year ending after | ||||||
12 | the noncompliance date for that agreement, any refund paid | ||||||
13 | to the taxpayer for that taxable year shall, to the extent | ||||||
14 | of that credit allowed, be an erroneous refund within the | ||||||
15 | meaning of Section 912 of this Act. | ||||||
16 | If, during any taxable year, a taxpayer ceases | ||||||
17 | operations at a project location that is the subject of | ||||||
18 | that agreement with the intent to terminate operations in | ||||||
19 | the State, the tax imposed under subsections (a) and (b) | ||||||
20 | of Section 201 of this Act for such taxable year shall be | ||||||
21 | increased by the amount of any credit allowed under the | ||||||
22 | Agreement for that Project location prior to the date the | ||||||
23 | Taxpayer ceases operations. | ||||||
24 | (6) Instead of claiming the credit against the taxes | ||||||
25 | imposed under subsections (a) and (b) of Section 201 of | ||||||
26 | this Act, with respect to the portion of a MICRO Illinois |
| |||||||
| |||||||
1 | credit that is calculated based on the Incremental Income | ||||||
2 | Tax attributable to new employees and retained employees, | ||||||
3 | the taxpayer may elect, in accordance with the | ||||||
4 | Manufacturing Illinois Chips for Real Opportunity (MICRO) | ||||||
5 | Act, to claim the credit, on or after January 1, 2026, | ||||||
6 | against its obligation to pay over withholding under | ||||||
7 | Section 704A of the Illinois Income Tax Act. Any credit | ||||||
8 | for which a Taxpayer makes such an election shall not be | ||||||
9 | claimed against the taxes imposed under subsections (a) | ||||||
10 | and (b) of Section 201 of this Act. | ||||||
11 | (35 ILCS 5/239 new) | ||||||
12 | Sec. 239. MICRO Investment Tax credits. | ||||||
13 | (a) For tax years beginning on or after January 1, 2025, a | ||||||
14 | taxpayer shall be allowed a credit against the tax imposed by | ||||||
15 | subsections (a) and (b) of Section 201 for investment in | ||||||
16 | qualified property which is placed in service at the site of a | ||||||
17 | project that is subject to an agreement between the taxpayer | ||||||
18 | and the Department of Commerce and Economic Opportunity | ||||||
19 | pursuant to the Manufacturing Illinois Chips for Real | ||||||
20 | Opportunity (MICRO) Act. If the taxpayer is a partnership or a | ||||||
21 | Subchapter S corporation, the credit shall be allowed to the | ||||||
22 | partners or shareholders in accordance with the determination | ||||||
23 | of income and distributive share of income under Sections 702 | ||||||
24 | and 704 and subchapter S of the Internal Revenue Code. The | ||||||
25 | credit shall be 0.5% of the basis for such property. The credit |
| |||||||
| |||||||
1 | shall be available only in the taxable year in which the | ||||||
2 | property is placed in service and shall not be allowed to the | ||||||
3 | extent that it would reduce a taxpayer's liability for the tax | ||||||
4 | imposed by subsections (a) and (b) of Section 201 to below | ||||||
5 | zero. The credit shall be allowed for the tax year in which the | ||||||
6 | property is placed in service, or, if the amount of the credit | ||||||
7 | exceeds the tax liability for that year, whether it exceeds | ||||||
8 | the original liability or the liability as later amended, such | ||||||
9 | excess may be carried forward and applied to the tax liability | ||||||
10 | of the 5 taxable years following the excess credit year. The | ||||||
11 | credit shall be applied to the earliest year for which there is | ||||||
12 | a liability. If there is credit from more than one tax year | ||||||
13 | that is available to offset a liability, the credit accruing | ||||||
14 | first in time shall be applied first. | ||||||
15 | (b) The term qualified property means property which: | ||||||
16 | (1) is tangible, whether new or used, including | ||||||
17 | buildings and structural components of buildings; | ||||||
18 | (2) is depreciable pursuant to Section 167 of the | ||||||
19 | Internal Revenue Code, except that "3-year property" as | ||||||
20 | defined in Section 168(c)(2)(A) of that Code is not | ||||||
21 | eligible for the credit provided by this Section; | ||||||
22 | (3) is acquired by purchase as defined in Section | ||||||
23 | 179(d) of the Internal Revenue Code; | ||||||
24 | (4) is used at the site of the MICRO Illinois project | ||||||
25 | by the taxpayer; and | ||||||
26 | (5) has not been previously used in Illinois in such a |
| |||||||
| |||||||
1 | manner and by such a person as would qualify for the credit | ||||||
2 | provided by this Section. | ||||||
3 | (c) The basis of qualified property shall be the basis | ||||||
4 | used to compute the depreciation deduction for federal income | ||||||
5 | tax purposes. | ||||||
6 | (d) If the basis of the property for federal income tax | ||||||
7 | depreciation purposes is increased after it has been placed in | ||||||
8 | service at the site of the project by the taxpayer, the amount | ||||||
9 | of such increase shall be deemed property placed in service on | ||||||
10 | the date of such increase in basis. | ||||||
11 | (e) The term "placed in service" shall have the same | ||||||
12 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
13 | (f) If during any taxable year, any property ceases to be | ||||||
14 | qualified property in the hands of the taxpayer within 48 | ||||||
15 | months after being placed in service, or the situs of any | ||||||
16 | qualified property is moved from the project site within 48 | ||||||
17 | months after being placed in service, the tax imposed under | ||||||
18 | subsections (a) and (b) of Section 201 for such taxable year | ||||||
19 | shall be increased. Such increase shall be determined by (i) | ||||||
20 | recomputing the investment credit which would have been | ||||||
21 | allowed for the year in which credit for such property was | ||||||
22 | originally allowed by eliminating such property from such | ||||||
23 | computation, and (ii) subtracting such recomputed credit from | ||||||
24 | the amount of credit previously allowed. For the purposes of | ||||||
25 | this subsection (f), a reduction of the basis of qualified | ||||||
26 | property resulting from a redetermination of the purchase |
| |||||||
| |||||||
1 | price shall be deemed a disposition of qualified property to | ||||||
2 | the extent of such reduction. | ||||||
3 | (35 ILCS 5/704A) | ||||||
4 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
5 | (a) In general, every employer who deducts and withholds | ||||||
6 | or is required to deduct and withhold tax under this Act on or | ||||||
7 | after January 1, 2008 shall make those payments and returns as | ||||||
8 | provided in this Section. | ||||||
9 | (b) Returns. Every employer shall, in the form and manner | ||||||
10 | required by the Department, make returns with respect to taxes | ||||||
11 | withheld or required to be withheld under this Article 7 for | ||||||
12 | each quarter beginning on or after January 1, 2008, on or | ||||||
13 | before the last day of the first month following the close of | ||||||
14 | that quarter. | ||||||
15 | (c) Payments. With respect to amounts withheld or required | ||||||
16 | to be withheld on or after January 1, 2008: | ||||||
17 | (1) Semi-weekly payments. For each calendar year, each | ||||||
18 | employer who withheld or was required to withhold more | ||||||
19 | than $12,000 during the one-year period ending on June 30 | ||||||
20 | of the immediately preceding calendar year, payment must | ||||||
21 | be made: | ||||||
22 | (A) on or before each Friday of the calendar year, | ||||||
23 | for taxes withheld or required to be withheld on the | ||||||
24 | immediately preceding Saturday, Sunday, Monday, or | ||||||
25 | Tuesday; |
| |||||||
| |||||||
1 | (B) on or before each Wednesday of the calendar | ||||||
2 | year, for taxes withheld or required to be withheld on | ||||||
3 | the immediately preceding Wednesday, Thursday, or | ||||||
4 | Friday. | ||||||
5 | Beginning with calendar year 2011, payments made under | ||||||
6 | this paragraph (1) of subsection (c) must be made by | ||||||
7 | electronic funds transfer. | ||||||
8 | (2) Semi-weekly payments. Any employer who withholds | ||||||
9 | or is required to withhold more than $12,000 in any | ||||||
10 | quarter of a calendar year is required to make payments on | ||||||
11 | the dates set forth under item (1) of this subsection (c) | ||||||
12 | for each remaining quarter of that calendar year and for | ||||||
13 | the subsequent calendar year.
| ||||||
14 | (3) Monthly payments. Each employer, other than an | ||||||
15 | employer described in items (1) or (2) of this subsection, | ||||||
16 | shall pay to the Department, on or before the 15th day of | ||||||
17 | each month the taxes withheld or required to be withheld | ||||||
18 | during the immediately preceding month. | ||||||
19 | (4) Payments with returns. Each employer shall pay to | ||||||
20 | the Department, on or before the due date for each return | ||||||
21 | required to be filed under this Section, any tax withheld | ||||||
22 | or required to be withheld during the period for which the | ||||||
23 | return is due and not previously paid to the Department. | ||||||
24 | (d) Regulatory authority. The Department may, by rule: | ||||||
25 | (1) Permit employers, in lieu of the requirements of | ||||||
26 | subsections (b) and (c), to file annual returns due on or |
| |||||||
| |||||||
1 | before January 31 of the year for taxes withheld or | ||||||
2 | required to be withheld during the previous calendar year | ||||||
3 | and, if the aggregate amounts required to be withheld by | ||||||
4 | the employer under this Article 7 (other than amounts | ||||||
5 | required to be withheld under Section 709.5) do not exceed | ||||||
6 | $1,000 for the previous calendar year, to pay the taxes | ||||||
7 | required to be shown on each such return no later than the | ||||||
8 | due date for such return. | ||||||
9 | (2) Provide that any payment required to be made under | ||||||
10 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
11 | extent paid by electronic funds transfer on or before the | ||||||
12 | due date for deposit of federal income taxes withheld | ||||||
13 | from, or federal employment taxes due with respect to, the | ||||||
14 | wages from which the Illinois taxes were withheld. | ||||||
15 | (3) Designate one or more depositories to which | ||||||
16 | payment of taxes required to be withheld under this | ||||||
17 | Article 7 must be paid by some or all employers. | ||||||
18 | (4) Increase the threshold dollar amounts at which | ||||||
19 | employers are required to make semi-weekly payments under | ||||||
20 | subsection (c)(1) or (c)(2). | ||||||
21 | (e) Annual return and payment. Every employer who deducts | ||||||
22 | and withholds or is required to deduct and withhold tax from a | ||||||
23 | person engaged in domestic service employment, as that term is | ||||||
24 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
25 | comply with the requirements of this Section with respect to | ||||||
26 | such employees by filing an annual return and paying the taxes |
| |||||||
| |||||||
1 | required to be deducted and withheld on or before the 15th day | ||||||
2 | of the fourth month following the close of the employer's | ||||||
3 | taxable year. The Department may allow the employer's return | ||||||
4 | to be submitted with the employer's individual income tax | ||||||
5 | return or to be submitted with a return due from the employer | ||||||
6 | under Section 1400.2 of the Unemployment Insurance Act. | ||||||
7 | (f) Magnetic media and electronic filing. With respect to | ||||||
8 | taxes withheld in calendar years prior to 2017, any W-2 Form | ||||||
9 | that, under the Internal Revenue Code and regulations | ||||||
10 | promulgated thereunder, is required to be submitted to the | ||||||
11 | Internal Revenue Service on magnetic media or electronically | ||||||
12 | must also be submitted to the Department on magnetic media or | ||||||
13 | electronically for Illinois purposes, if required by the | ||||||
14 | Department. | ||||||
15 | With respect to taxes withheld in 2017 and subsequent | ||||||
16 | calendar years, the Department may, by rule, require that any | ||||||
17 | return (including any amended return) under this Section and | ||||||
18 | any W-2 Form that is required to be submitted to the Department | ||||||
19 | must be submitted on magnetic media or electronically. | ||||||
20 | The due date for submitting W-2 Forms shall be as | ||||||
21 | prescribed by the Department by rule. | ||||||
22 | (g) For amounts deducted or withheld after December 31, | ||||||
23 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
24 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
25 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
26 | against payments due under this Section for amounts withheld |
| |||||||
| |||||||
1 | during the first calendar year beginning after the end of that | ||||||
2 | taxable year equal to the amount of the credit for the | ||||||
3 | incremental income tax attributable to full-time employees of | ||||||
4 | the taxpayer awarded to the taxpayer by the Department of | ||||||
5 | Commerce and Economic Opportunity under the Economic | ||||||
6 | Development for a Growing Economy Tax Credit Act for the | ||||||
7 | taxable year and credits not previously claimed and allowed to | ||||||
8 | be carried forward under Section 211(4) of this Act as | ||||||
9 | provided in subsection (f) of Section 5-15 of the Economic | ||||||
10 | Development for a Growing Economy Tax Credit Act. The credit | ||||||
11 | or credits may not reduce the taxpayer's obligation for any | ||||||
12 | payment due under this Section to less than zero. If the amount | ||||||
13 | of the credit or credits exceeds the total payments due under | ||||||
14 | this Section with respect to amounts withheld during the | ||||||
15 | calendar year, the excess may be carried forward and applied | ||||||
16 | against the taxpayer's liability under this Section in the | ||||||
17 | succeeding calendar years as allowed to be carried forward | ||||||
18 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
19 | credits shall be applied to the earliest year for which there | ||||||
20 | is a tax liability. If there are credits from more than one | ||||||
21 | taxable year that are available to offset a liability, the | ||||||
22 | earlier credit shall be applied first. Each employer who | ||||||
23 | deducts and withholds or is required to deduct and withhold | ||||||
24 | tax under this Act and who retains income tax withholdings | ||||||
25 | under subsection (f) of Section 5-15 of the Economic | ||||||
26 | Development for a Growing Economy Tax Credit Act must make a |
| |||||||
| |||||||
1 | return with respect to such taxes and retained amounts in the | ||||||
2 | form and manner that the Department, by rule, requires and pay | ||||||
3 | to the Department or to a depositary designated by the | ||||||
4 | Department those withheld taxes not retained by the taxpayer. | ||||||
5 | For purposes of this subsection (g), the term taxpayer shall | ||||||
6 | include taxpayer and members of the taxpayer's unitary | ||||||
7 | business group as defined under paragraph (27) of subsection | ||||||
8 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
9 | the provisions of Section 250 of this Act. No credit awarded | ||||||
10 | under the Economic Development for a Growing Economy Tax | ||||||
11 | Credit Act for agreements entered into on or after January 1, | ||||||
12 | 2015 may be credited against payments due under this Section. | ||||||
13 | (g-1) For amounts deducted or withheld after December 31, | ||||||
14 | 2024, a taxpayer who makes an election under the Reimagining | ||||||
15 | Electric Vehicles in Illinois Act shall be allowed a credit | ||||||
16 | against payments due under this Section for amounts withheld | ||||||
17 | during the first quarterly reporting period beginning after | ||||||
18 | the certificate is issued equal to the portion of the REV | ||||||
19 | Illinois Credit attributable to the incremental income tax | ||||||
20 | attributable to new employees and retained employees as | ||||||
21 | certified by the Department of Commerce and Economic | ||||||
22 | Opportunity pursuant to an agreement with the taxpayer under | ||||||
23 | the Reimagining Electric Vehicles in Illinois Act for the | ||||||
24 | taxable year. The credit or credits may not reduce the | ||||||
25 | taxpayer's obligation for any payment due under this Section | ||||||
26 | to less than zero. If the amount of the credit or credits |
| |||||||
| |||||||
1 | exceeds the total payments due under this Section with respect | ||||||
2 | to amounts withheld during the quarterly reporting period, the | ||||||
3 | excess may be carried forward and applied against the | ||||||
4 | taxpayer's liability under this Section in the succeeding | ||||||
5 | quarterly reporting period as allowed to be carried forward | ||||||
6 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
7 | credits shall be applied to the earliest quarterly reporting | ||||||
8 | period for which there is a tax liability. If there are credits | ||||||
9 | from more than one quarterly reporting period that are | ||||||
10 | available to offset a liability, the earlier credit shall be | ||||||
11 | applied first. Each employer who deducts and withholds or is | ||||||
12 | required to deduct and withhold tax under this Act and who | ||||||
13 | retains income tax withholdings this subsection must make a | ||||||
14 | return with respect to such taxes and retained amounts in the | ||||||
15 | form and manner that the Department, by rule, requires and pay | ||||||
16 | to the Department or to a depositary designated by the | ||||||
17 | Department those withheld taxes not retained by the taxpayer. | ||||||
18 | For purposes of this subsection (g-1), the term taxpayer shall | ||||||
19 | include taxpayer and members of the taxpayer's unitary | ||||||
20 | business group as defined under paragraph (27) of subsection | ||||||
21 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
22 | the provisions of Section 250 of this Act. | ||||||
23 | (g-2) For amounts deducted or withheld after December 31, | ||||||
24 | 2024, a taxpayer who makes an election under the Manufacturing | ||||||
25 | Illinois Chips for Real Opportunity (MICRO) Act shall be | ||||||
26 | allowed a credit against payments due under this Section for |
| |||||||
| |||||||
1 | amounts withheld during the first quarterly reporting period | ||||||
2 | beginning after the certificate is issued equal to the portion | ||||||
3 | of the MICRO Illinois Credit attributable to the incremental | ||||||
4 | income tax attributable to new employees and retained | ||||||
5 | employees as certified by the Department of Commerce and | ||||||
6 | Economic Opportunity pursuant to an agreement with the | ||||||
7 | taxpayer under the Manufacturing Illinois Chips for Real | ||||||
8 | Opportunity (MICRO) Act for the taxable year. The credit or | ||||||
9 | credits may not reduce the taxpayer's obligation for any | ||||||
10 | payment due under this Section to less than zero. If the amount | ||||||
11 | of the credit or credits exceeds the total payments due under | ||||||
12 | this Section with respect to amounts withheld during the | ||||||
13 | quarterly reporting period, the excess may be carried forward | ||||||
14 | and applied against the taxpayer's liability under this | ||||||
15 | Section in the succeeding quarterly reporting period as | ||||||
16 | allowed to be carried forward under paragraph (4) of Section | ||||||
17 | 211 of this Act. The credit or credits shall be applied to the | ||||||
18 | earliest quarterly reporting period for which there is a tax | ||||||
19 | liability. If there are credits from more than one quarterly | ||||||
20 | reporting period 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 | this subsection must make a return with respect to such taxes | ||||||
25 | and retained amounts in the form and manner that the | ||||||
26 | Department, by rule, requires and pay to the Department or to a |
| |||||||
| |||||||
1 | depositary designated by the Department those withheld taxes | ||||||
2 | not retained by the taxpayer. For purposes of this subsection, | ||||||
3 | the term taxpayer shall include taxpayer and members of the | ||||||
4 | taxpayer's unitary business group as defined under paragraph | ||||||
5 | (27) of subsection (a) of Section 1501 of this Act. This | ||||||
6 | Section is exempt from the provisions of Section 250 of this | ||||||
7 | Act. | ||||||
8 | (h) An employer may claim a credit against payments due | ||||||
9 | under this Section for amounts withheld during the first | ||||||
10 | calendar year ending after the date on which a tax credit | ||||||
11 | certificate was issued under Section 35 of the Small Business | ||||||
12 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
13 | amount shown on the certificate, but may not reduce the | ||||||
14 | taxpayer's obligation for any payment due under this Section | ||||||
15 | to less than zero. If the amount of the credit exceeds the | ||||||
16 | total payments due under this Section with respect to amounts | ||||||
17 | withheld during the calendar year, the excess may be carried | ||||||
18 | forward and applied against the taxpayer's liability under | ||||||
19 | this Section in the 5 succeeding calendar years. The credit | ||||||
20 | shall be applied to the earliest year for which there is a tax | ||||||
21 | liability. If there are credits from more than one calendar | ||||||
22 | year that are available to offset a liability, the earlier | ||||||
23 | credit shall be applied first. This Section is exempt from the | ||||||
24 | provisions of Section 250 of this Act. | ||||||
25 | (i) Each employer with 50 or fewer full-time equivalent | ||||||
26 | employees during the reporting period may claim a credit |
| |||||||
| |||||||
1 | against the payments due under this Section for each qualified | ||||||
2 | employee in an amount equal to the maximum credit allowable. | ||||||
3 | The credit may be taken against payments due for reporting | ||||||
4 | periods that begin on or after January 1, 2020, and end on or | ||||||
5 | before December 31, 2027. An employer may not claim a credit | ||||||
6 | for an employee who has worked fewer than 90 consecutive days | ||||||
7 | immediately preceding the reporting period; however, such | ||||||
8 | credits may accrue during that 90-day period and be claimed | ||||||
9 | against payments under this Section for future reporting | ||||||
10 | periods after the employee has worked for the employer at | ||||||
11 | least 90 consecutive days. In no event may the credit exceed | ||||||
12 | the employer's liability for the reporting period. Each | ||||||
13 | employer who deducts and withholds or is required to deduct | ||||||
14 | and withhold tax under this Act and who retains income tax | ||||||
15 | withholdings under this subsection must make a return with | ||||||
16 | respect to such taxes and retained amounts in the form and | ||||||
17 | manner that the Department, by rule, requires and pay to the | ||||||
18 | Department or to a depositary designated by the Department | ||||||
19 | those withheld taxes not retained by the employer. | ||||||
20 | For each reporting period, the employer may not claim a | ||||||
21 | credit or credits for more employees than the number of | ||||||
22 | employees making less than the minimum or reduced wage for the | ||||||
23 | current calendar year during the last reporting period of the | ||||||
24 | preceding calendar year. Notwithstanding any other provision | ||||||
25 | of this subsection, an employer shall not be eligible for | ||||||
26 | credits for a reporting period unless the average wage paid by |
| |||||||
| |||||||
1 | the employer per employee for all employees making less than | ||||||
2 | $55,000 during the reporting period is greater than the | ||||||
3 | average wage paid by the employer per employee for all | ||||||
4 | employees making less than $55,000 during the same reporting | ||||||
5 | period of the prior calendar year. | ||||||
6 | For purposes of this subsection (i): | ||||||
7 | "Compensation paid in Illinois" has the meaning ascribed | ||||||
8 | to that term under Section 304(a)(2)(B) of this Act. | ||||||
9 | "Employer" and "employee" have the meaning ascribed to | ||||||
10 | those terms in the Minimum Wage Law, except that "employee" | ||||||
11 | also includes employees who work for an employer with fewer | ||||||
12 | than 4 employees. Employers that operate more than one | ||||||
13 | establishment pursuant to a franchise agreement or that | ||||||
14 | constitute members of a unitary business group shall aggregate | ||||||
15 | their employees for purposes of determining eligibility for | ||||||
16 | the credit. | ||||||
17 | "Full-time equivalent employees" means the ratio of the | ||||||
18 | number of paid hours during the reporting period and the | ||||||
19 | number of working hours in that period. | ||||||
20 | "Maximum credit" means the percentage listed below of the | ||||||
21 | difference between the amount of compensation paid in Illinois | ||||||
22 | to employees who are paid not more than the required minimum | ||||||
23 | wage reduced by the amount of compensation paid in Illinois to | ||||||
24 | employees who were paid less than the current required minimum | ||||||
25 | wage during the reporting period prior to each increase in the | ||||||
26 | required minimum wage on January 1. If an employer pays an |
| |||||||
| |||||||
1 | employee more than the required minimum wage and that employee | ||||||
2 | previously earned less than the required minimum wage, the | ||||||
3 | employer may include the portion that does not exceed the | ||||||
4 | required minimum wage as compensation paid in Illinois to | ||||||
5 | employees who are paid not more than the required minimum | ||||||
6 | wage. | ||||||
7 | (1) 25% for reporting periods beginning on or after | ||||||
8 | January 1, 2020 and ending on or before December 31, 2020; | ||||||
9 | (2) 21% for reporting periods beginning on or after | ||||||
10 | January 1, 2021 and ending on or before December 31, 2021; | ||||||
11 | (3) 17% for reporting periods beginning on or after | ||||||
12 | January 1, 2022 and ending on or before December 31, 2022; | ||||||
13 | (4) 13% for reporting periods beginning on or after | ||||||
14 | January 1, 2023 and ending on or before December 31, 2023; | ||||||
15 | (5) 9% for reporting periods beginning on or after | ||||||
16 | January 1, 2024 and ending on or before December 31, 2024; | ||||||
17 | (6) 5% for reporting periods beginning on or after | ||||||
18 | January 1, 2025 and ending on or before December 31, 2025. | ||||||
19 | The amount computed under this subsection may continue to | ||||||
20 | be claimed for reporting periods beginning on or after January | ||||||
21 | 1, 2026 and: | ||||||
22 | (A) ending on or before December 31, 2026 for | ||||||
23 | employers with more than 5 employees; or | ||||||
24 | (B) ending on or before December 31, 2027 for | ||||||
25 | employers with no more than 5 employees. | ||||||
26 | "Qualified employee" means an employee who is paid not |
| |||||||
| |||||||
1 | more than the required minimum wage and has an average wage | ||||||
2 | paid per hour by the employer during the reporting period | ||||||
3 | equal to or greater than his or her average wage paid per hour | ||||||
4 | by the employer during each reporting period for the | ||||||
5 | immediately preceding 12 months. A new qualified employee is | ||||||
6 | deemed to have earned the required minimum wage in the | ||||||
7 | preceding reporting period. | ||||||
8 | "Reporting period" means the quarter for which a return is | ||||||
9 | required to be filed under subsection (b) of this Section. | ||||||
10 | (Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21.) | ||||||
11 | Section 907. The Use Tax Act is amended by changing | ||||||
12 | Section 12 as follows:
| ||||||
13 | (35 ILCS 105/12) (from Ch. 120, par. 439.12)
| ||||||
14 | Sec. 12. Applicability of Retailers' Occupation Tax Act | ||||||
15 | and Uniform Penalty
and Interest Act. All of the provisions of | ||||||
16 | Sections 1d, 1e, 1f, 1i, 1j,
1j.1, 1k,
1m,
1n, 1o, 2-6, 2-12, | ||||||
17 | 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation | ||||||
18 | provisions
shall run
from the date when the tax is due rather | ||||||
19 | than from the date when gross
receipts are received), 5 | ||||||
20 | (except that the time limitation provisions on
the issuance of | ||||||
21 | notices of tax liability shall run from the date when the
tax | ||||||
22 | is due rather than from the date when gross receipts are | ||||||
23 | received and
except that in the case of a failure to file a | ||||||
24 | return required by this Act, no
notice of tax liability shall |
| |||||||
| |||||||
1 | be issued on and after each July 1 and January 1
covering tax | ||||||
2 | due with that return during any month or period more than 6 | ||||||
3 | years
before that July 1 or January 1, respectively), 5a,
5b, | ||||||
4 | 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5n, 7, 8, 9, 10, 11 and 12 | ||||||
5 | of
the Retailers' Occupation Tax Act and Section 3-7 of the | ||||||
6 | Uniform
Penalty and Interest Act, which are not inconsistent | ||||||
7 | with this Act,
shall apply, as far as practicable, to the | ||||||
8 | subject matter of this Act to
the same extent as if such | ||||||
9 | provisions were included herein.
| ||||||
10 | (Source: P.A. 98-1098, eff. 8-26-14.)
| ||||||
11 | Section 908. The Service Use Tax Act is amended by | ||||||
12 | changing Section 12 as follows:
| ||||||
13 | (35 ILCS 110/12) (from Ch. 120, par. 439.42)
| ||||||
14 | Sec. 12. Applicability of Retailers' Occupation Tax Act | ||||||
15 | and Uniform
Penalty and Interest Act. All of the provisions of | ||||||
16 | Sections 1d, 1e, 1f, 1i,
1j, 1j.1, 1k, 1m,
1n, 1o, 2-6, 2-12, | ||||||
17 | 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the | ||||||
18 | Department
of the
money collected under this Act), 4 (except | ||||||
19 | that the time limitation
provisions shall run from the date | ||||||
20 | when gross receipts are received), 5
(except that the time | ||||||
21 | limitation provisions on the issuance of notices of
tax | ||||||
22 | liability shall run from the date when the tax is due rather | ||||||
23 | than from
the date when gross receipts are received and except | ||||||
24 | that in the case of a
failure to file a return required by this |
| |||||||
| |||||||
1 | Act, no notice of tax liability shall
be issued on and after | ||||||
2 | July 1 and January 1 covering tax due with that return
during | ||||||
3 | any month or period more than 6 years before that July 1 or | ||||||
4 | January
1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,
5j, 5k, | ||||||
5 | 5l, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation | ||||||
6 | Tax Act which
are not inconsistent with this Act, and Section | ||||||
7 | 3-7 of the Uniform
Penalty and Interest Act, shall apply, as | ||||||
8 | far as practicable, to
the subject matter of this Act to the | ||||||
9 | same extent as if such provisions
were included herein.
| ||||||
10 | (Source: P.A. 98-1098, eff. 8-26-14; 99-217, eff. 7-31-15.)
| ||||||
11 | Section 909. The Service Occupation Tax Act is amended by | ||||||
12 | changing Section 12 as follows:
| ||||||
13 | (35 ILCS 115/12) (from Ch. 120, par. 439.112)
| ||||||
14 | Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i, | ||||||
15 | 1j, 1j.1, 1k,
1m,
1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3 | ||||||
16 | (except as to the disposition by the Department
of the
tax | ||||||
17 | collected under this Act), 4 (except that the time limitation
| ||||||
18 | provisions shall run from the date when the tax is due rather | ||||||
19 | than from the
date when gross receipts are received), 5 | ||||||
20 | (except that the time limitation
provisions on the issuance of | ||||||
21 | notices of tax liability shall run from the
date when the tax | ||||||
22 | is due rather than from the date when gross receipts are
| ||||||
23 | received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5n, 6d, 7, | ||||||
24 | 8, 9, 10, 11 and
12 of the "Retailers' Occupation Tax Act" |
| |||||||
| |||||||
1 | which are not inconsistent with this
Act, and Section 3-7 of | ||||||
2 | the Uniform Penalty and Interest Act shall
apply, as far as | ||||||
3 | practicable, to the subject matter of this Act
to the same | ||||||
4 | extent as if such provisions were included herein.
| ||||||
5 | (Source: P.A. 98-1098, eff. 8-26-14; 99-217, eff. 7-31-15.)
| ||||||
6 | Section 910. The Retailers' Occupation Tax Act is amended | ||||||
7 | by adding Section 5n as follows: | ||||||
8 | (35 ILCS 120/5n new) | ||||||
9 | Sec. 5n. Building materials exemption; microchip and | ||||||
10 | semiconductor manufacturing. Each retailer who makes a sale of | ||||||
11 | building materials that will be incorporated into real estate | ||||||
12 | in a qualified facility for which a certificate of exemption | ||||||
13 | has been issued by the Department of Commerce and Economic | ||||||
14 | Opportunity under Section 105 of the Manufacturing Illinois | ||||||
15 | Chips for Real Opportunity (MICRO) Act, may deduct receipts | ||||||
16 | from such sales when calculating any State or local use and | ||||||
17 | occupation taxes. No retailer who is eligible for the | ||||||
18 | deduction or credit under Section 5k of this Act related to | ||||||
19 | enterprise zones or Section 5l of this Act related to High | ||||||
20 | Impact Businesses for a given sale shall be eligible for the | ||||||
21 | deduction or credit authorized under this Section for that | ||||||
22 | same sale. | ||||||
23 | In addition to any other requirements to document the | ||||||
24 | exemption allowed under this Section, the retailer must obtain |
| |||||||
| |||||||
1 | the purchaser's exemption certificate number issued by the | ||||||
2 | Department. A construction contractor or other entity shall | ||||||
3 | not make tax-free purchases unless it has an active exemption | ||||||
4 | certificate issued by the Department at the time of purchase. | ||||||
5 | Upon request from a person that has been certified by the | ||||||
6 | Department of Commerce and Economic Opportunity under the | ||||||
7 | Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, | ||||||
8 | the Department shall issue a MICRO Illinois Building Materials | ||||||
9 | Exemption Certificate for each construction contractor or | ||||||
10 | other entity identified by the person so certified. The | ||||||
11 | Department shall make the MICRO Illinois Building Materials | ||||||
12 | Exemption Certificates available to each construction | ||||||
13 | contractor or other entity as well as the person certified | ||||||
14 | under the Manufacturing Illinois Chips for Real Opportunity | ||||||
15 | (MICRO) Act. The request for MICRO Illinois Building Materials | ||||||
16 | Exemption Certificates must include the following information: | ||||||
17 | (1) the name and address of the construction | ||||||
18 | contractor or other entity; | ||||||
19 | (2) the name and location or address of the building | ||||||
20 | project site; | ||||||
21 | (3) the estimated amount of the exemption for each | ||||||
22 | construction contractor or other entity for which a | ||||||
23 | request for an exemption certificate is made, based on a | ||||||
24 | stated estimated average tax rate and the percentage of | ||||||
25 | the contract that consists of materials; | ||||||
26 | (4) the period of time over which supplies for the |
| |||||||
| |||||||
1 | project are expected to be purchased; and | ||||||
2 | (5) other reasonable information as the Department may | ||||||
3 | require, including but not limited to FEIN numbers, to | ||||||
4 | determine if the contractor or other entity, or any | ||||||
5 | partner, or a corporate officer, and in the case of a | ||||||
6 | limited liability company, any manager or member, of the | ||||||
7 | construction contractor or other entity, is or has been | ||||||
8 | the owner, a partner, a corporate officer, and in the case | ||||||
9 | of a limited liability company, a manager or member, of a | ||||||
10 | person that is in default for moneys due to the Department | ||||||
11 | under this Act or any other tax or fee Act administered by | ||||||
12 | the Department. | ||||||
13 | The Department shall issue the exemption certificate | ||||||
14 | within 3 business days after receipt of request. This | ||||||
15 | requirement does not apply in circumstances where the | ||||||
16 | Department, for reasonable cause, is unable to issue the | ||||||
17 | exemption certificate within 3 business days. The Department | ||||||
18 | may refuse to issue an exemption certificate under this | ||||||
19 | Section if the owner, any partner, or a corporate officer, and | ||||||
20 | in the case of a limited liability company, any manager or | ||||||
21 | member, of the construction contractor or other entity is or | ||||||
22 | has been the owner, a partner, a corporate officer, and in the | ||||||
23 | case of a limited liability company, a manager or member, of a | ||||||
24 | person that is in default for moneys due to the Department | ||||||
25 | under this Act or any other tax or fee Act administered by the | ||||||
26 | Department. |
| |||||||
| |||||||
1 | The MICRO Illinois Building Materials Exemption | ||||||
2 | Certificate shall contain language stating that, if the | ||||||
3 | construction contractor or other entity who is issued the | ||||||
4 | exemption certificate makes a tax-exempt purchase, as | ||||||
5 | described in this Section, that is not eligible for exemption | ||||||
6 | under this Section or allows another person to make a | ||||||
7 | tax-exempt purchase, as described in this Section, that is not | ||||||
8 | eligible for exemption under this Section, then, in addition | ||||||
9 | to any tax or other penalty imposed, the construction | ||||||
10 | contractor or other entity is subject to a penalty equal to the | ||||||
11 | tax that would have been paid by the retailer under this Act as | ||||||
12 | well as any applicable local retailers' occupation tax on the | ||||||
13 | purchase that is not eligible for the exemption. | ||||||
14 | The Department, in its discretion, may require that the | ||||||
15 | request for a MICRO Illinois Exemption Certificate be | ||||||
16 | submitted electronically. The Department may, in its | ||||||
17 | discretion, issue the exemption certificates electronically. | ||||||
18 | The MICRO Illinois Building Materials Exemption Certificate | ||||||
19 | number shall be designed in such a way that the Department can | ||||||
20 | identify from the unique number on the exemption certificate | ||||||
21 | issued to a given construction contractor or other entity, the | ||||||
22 | name of the entity to whom the exemption certificate is | ||||||
23 | issued. The MICRO Illinois Building Materials Exemption | ||||||
24 | Certificate shall contain an expiration date, which shall be | ||||||
25 | no more than 5 years after the date of issuance. At the request | ||||||
26 | of the entity to whom the exemption certificate is issued, the |
| |||||||
| |||||||
1 | Department may renew an exemption certificate issued under | ||||||
2 | this Section. After the Department issues exemption | ||||||
3 | certificates under this Section, the certified entity may | ||||||
4 | notify the Department of additional construction contractors | ||||||
5 | or other entities eligible for an exemption certificate under | ||||||
6 | this Section. Upon such a notification and subject to the | ||||||
7 | other provisions of this Section, the Department shall issue | ||||||
8 | an exemption certificate to each additional qualified | ||||||
9 | construction contractor or other entity so identified. A | ||||||
10 | certified entity may notify the Department to rescind an | ||||||
11 | exemption certificate previously issued by the Department that | ||||||
12 | has not yet expired. Upon such a notification and subject to | ||||||
13 | the other provisions of this Section, the Department shall | ||||||
14 | rescind the exemption certificate. | ||||||
15 | If the Department of Revenue determines that a | ||||||
16 | construction contractor or other entity that was issued an | ||||||
17 | exemption certificate under this Section made a tax-exempt | ||||||
18 | purchase, as described in this Section, that was not eligible | ||||||
19 | for exemption under this Section or allowed another person to | ||||||
20 | make a tax-exempt purchase, as described in this Section, that | ||||||
21 | was not eligible for exemption under this Section, then, in | ||||||
22 | addition to any tax or other penalty imposed, the construction | ||||||
23 | contractor or other entity is subject to a penalty equal to the | ||||||
24 | tax that would have been paid by the retailer under this Act as | ||||||
25 | well as any applicable local retailers' occupation tax on the | ||||||
26 | purchase that was not eligible for the exemption. |
| |||||||
| |||||||
1 | This Section is exempt from the provisions of Section | ||||||
2 | 2-70. | ||||||
3 | Section 915. The Property Tax Code is amended by adding | ||||||
4 | Section 18-184.20 as follows: | ||||||
5 | (35 ILCS 200/18-184.20 new) | ||||||
6 | Sec. 18-184.20. MICRO Illinois project facilities. Any | ||||||
7 | taxing district, upon a majority vote of its governing body, | ||||||
8 | may, after determination of the assessed value as set forth in | ||||||
9 | this Code, order the clerk of the appropriate municipality or | ||||||
10 | county to abate any portion of real property taxes otherwise | ||||||
11 | levied or extended by the taxing district on a MICRO Illinois | ||||||
12 | Project facility owned by a semiconductor manufacturer or | ||||||
13 | microchip manufacturer or a semiconductor or microchip | ||||||
14 | component parts manufacturer that is subject to an agreement | ||||||
15 | with the Department of Commerce and Economic Opportunity under | ||||||
16 | the Manufacturing Illinois Chips for Real Opportunity (MICRO) | ||||||
17 | Act, during the period of time such agreement is in effect as | ||||||
18 | specified by the Department of Commerce and Economic | ||||||
19 | Opportunity. | ||||||
20 | Section 920. The Telecommunications Excise Tax Act is | ||||||
21 | amended by changing Section 2 as follows:
| ||||||
22 | (35 ILCS 630/2) (from Ch. 120, par. 2002)
|
| |||||||
| |||||||
1 | Sec. 2. As used in this Article, unless the context | ||||||
2 | clearly requires
otherwise:
| ||||||
3 | (a) "Gross charge" means the amount paid for the act or
| ||||||
4 | privilege of originating or receiving telecommunications in | ||||||
5 | this State and
for all services and equipment provided in | ||||||
6 | connection therewith by a
retailer, valued in money whether | ||||||
7 | paid in money or otherwise, including
cash, credits, services | ||||||
8 | and property of every kind or nature, and shall be
determined | ||||||
9 | without any deduction on account of the cost of such
| ||||||
10 | telecommunications, the cost of materials used, labor or | ||||||
11 | service costs or
any other expense whatsoever. In case credit | ||||||
12 | is extended, the amount
thereof shall be included only as and | ||||||
13 | when paid.
"Gross charges" for private line service shall | ||||||
14 | include charges imposed at
each channel termination point | ||||||
15 | within this State, charges for the channel
mileage
between | ||||||
16 | each channel termination point within this State, and charges | ||||||
17 | for
that portion
of the interstate inter-office channel | ||||||
18 | provided within Illinois. Charges for
that portion of the | ||||||
19 | interstate inter-office channel provided in Illinois shall
be | ||||||
20 | determined by the retailer as follows: (i) for interstate
| ||||||
21 | inter-office channels having 2 channel termination points, | ||||||
22 | only one of which
is in Illinois, 50% of the total charge | ||||||
23 | imposed; or (ii) for interstate
inter-office channels having | ||||||
24 | more than 2 channel termination points, one or
more of which
| ||||||
25 | are in Illinois, an amount equal to the total charge
| ||||||
26 | multiplied by a fraction, the numerator of which is the number |
| |||||||
| |||||||
1 | of channel
termination points within Illinois and the | ||||||
2 | denominator of which is the total
number of channel | ||||||
3 | termination points. Prior to January 1,
2004, any method | ||||||
4 | consistent with this
paragraph or other method that reasonably | ||||||
5 | apportions the total charges for
interstate inter-office | ||||||
6 | channels among the states in which channel terminations
points | ||||||
7 | are located shall be accepted as a reasonable method to | ||||||
8 | determine the
charges for
that portion of the interstate | ||||||
9 | inter-office channel provided within Illinois
for that period. | ||||||
10 | However, "gross charges" shall not include any of the
| ||||||
11 | following:
| ||||||
12 | (1) Any amounts added to a purchaser's bill because of | ||||||
13 | a charge made
pursuant to (i) the tax imposed by this | ||||||
14 | Article; (ii) charges added to
customers' bills pursuant | ||||||
15 | to the provisions of Sections 9-221 or 9-222 of
the Public | ||||||
16 | Utilities Act, as amended, or any similar charges added to
| ||||||
17 | customers' bills by retailers who are not subject to rate | ||||||
18 | regulation by
the Illinois Commerce Commission for the | ||||||
19 | purpose of recovering any of the
tax liabilities or other | ||||||
20 | amounts specified in such provisions of such
Act; (iii) | ||||||
21 | the tax imposed by Section 4251 of the Internal Revenue | ||||||
22 | Code;
(iv) 911 surcharges; or (v) the tax imposed by the | ||||||
23 | Simplified Municipal
Telecommunications Tax Act.
| ||||||
24 | (2) Charges for a sent collect telecommunication | ||||||
25 | received outside of the
State.
| ||||||
26 | (3) Charges for leased time on equipment or charges |
| |||||||
| |||||||
1 | for the storage of
data or information for subsequent | ||||||
2 | retrieval or the processing of data or
information | ||||||
3 | intended to change its form or content. Such equipment
| ||||||
4 | includes, but is not limited to, the use of calculators, | ||||||
5 | computers, data
processing equipment, tabulating equipment | ||||||
6 | or accounting equipment and also
includes the usage of | ||||||
7 | computers under a time-sharing agreement.
| ||||||
8 | (4) Charges for customer equipment, including such | ||||||
9 | equipment that is
leased or rented by the customer from | ||||||
10 | any source, wherein such charges are
disaggregated and | ||||||
11 | separately identified from other charges.
| ||||||
12 | (5) Charges to business enterprises certified under | ||||||
13 | Section 9-222.1
of the Public Utilities Act, as amended, | ||||||
14 | or to electric vehicle manufacturers, electric vehicle | ||||||
15 | component parts manufacturers, or electric vehicle power | ||||||
16 | supply manufacturers at REV Illinois Project sites for | ||||||
17 | which a certificate of exemption has been issued by the | ||||||
18 | Department of Commerce and Economic Opportunity under | ||||||
19 | Section 95 of the Reimagining Electric Vehicles in | ||||||
20 | Illinois Act, to the extent of such exemption
and during | ||||||
21 | the period of time specified by the Department of Commerce | ||||||
22 | and
Economic Opportunity.
| ||||||
23 | (5.1) Charges to business enterprises certified under | ||||||
24 | the Manufacturing Illinois Chips for Real Opportunity | ||||||
25 | (MICRO) Act. | ||||||
26 | (6) Charges for telecommunications and all services |
| |||||||
| |||||||
1 | and equipment
provided in connection therewith between a | ||||||
2 | parent corporation and its
wholly owned subsidiaries or | ||||||
3 | between wholly owned subsidiaries when the tax
imposed | ||||||
4 | under this Article has already been paid to a
retailer and | ||||||
5 | only to the extent that the charges between the parent
| ||||||
6 | corporation and wholly owned subsidiaries or between | ||||||
7 | wholly owned
subsidiaries represent expense allocation
| ||||||
8 | between the corporations and not the generation of profit | ||||||
9 | for the
corporation rendering such service.
| ||||||
10 | (7) Bad debts. Bad debt means any portion of a debt | ||||||
11 | that is related
to a sale at retail for which gross charges | ||||||
12 | are not otherwise deductible or
excludable that has become | ||||||
13 | worthless or uncollectable, as determined under
applicable | ||||||
14 | federal income tax standards. If the portion of the debt | ||||||
15 | deemed to
be bad is subsequently paid, the retailer shall | ||||||
16 | report and pay the tax on that
portion during the | ||||||
17 | reporting period in which the payment is made.
| ||||||
18 | (8) Charges paid by inserting coins in coin-operated | ||||||
19 | telecommunication
devices.
| ||||||
20 | (9) Amounts paid by telecommunications retailers under | ||||||
21 | the
Telecommunications Municipal Infrastructure | ||||||
22 | Maintenance Fee Act.
| ||||||
23 | (10) Charges for nontaxable services or | ||||||
24 | telecommunications if (i) those
charges are
aggregated
| ||||||
25 | with other
charges for telecommunications that are | ||||||
26 | taxable, (ii) those charges are not
separately stated
on |
| |||||||
| |||||||
1 | the
customer bill or invoice, and (iii) the retailer can | ||||||
2 | reasonably identify the
nontaxable
charges on
the | ||||||
3 | retailer's books and records kept in the regular course of | ||||||
4 | business. If the
nontaxable
charges cannot reasonably be | ||||||
5 | identified, the gross charge from the sale of both
taxable
| ||||||
6 | and nontaxable services or telecommunications billed on a | ||||||
7 | combined basis shall
be
attributed to the taxable services | ||||||
8 | or telecommunications. The burden of proving
nontaxable
| ||||||
9 | charges
shall be on the retailer of the | ||||||
10 | telecommunications.
| ||||||
11 | (b) "Amount paid" means the amount charged to the | ||||||
12 | taxpayer's service
address in this State regardless of where | ||||||
13 | such amount is billed or paid.
| ||||||
14 | (c) "Telecommunications", in addition to the meaning | ||||||
15 | ordinarily and
popularly ascribed to it, includes, without | ||||||
16 | limitation, messages or
information transmitted through use of | ||||||
17 | local, toll and wide area telephone
service; private line | ||||||
18 | services; channel services; telegraph services;
| ||||||
19 | teletypewriter; computer exchange services; cellular mobile
| ||||||
20 | telecommunications service; specialized mobile radio; | ||||||
21 | stationary two way
radio; paging service; or any other form of | ||||||
22 | mobile and portable one-way or
two-way communications; or any | ||||||
23 | other transmission of messages or
information by electronic or | ||||||
24 | similar means, between or among points by
wire, cable, | ||||||
25 | fiber-optics, laser, microwave, radio, satellite or similar
| ||||||
26 | facilities. As used in this Act, "private line" means a |
| |||||||
| |||||||
1 | dedicated non-traffic
sensitive service for a single customer, | ||||||
2 | that entitles the customer to
exclusive or priority use of a | ||||||
3 | communications channel or group of channels,
from one or more | ||||||
4 | specified locations to one or more other specified
locations. | ||||||
5 | The definition of "telecommunications" shall not include value
| ||||||
6 | added services in which computer processing applications are | ||||||
7 | used to act on
the form, content, code and protocol of the | ||||||
8 | information for purposes other
than transmission. | ||||||
9 | "Telecommunications" shall not include purchases of
| ||||||
10 | telecommunications by a telecommunications service provider | ||||||
11 | for use as a
component part of the service provided by him to | ||||||
12 | the ultimate retail
consumer who originates or terminates the | ||||||
13 | taxable end-to-end
communications. Carrier access charges, | ||||||
14 | right of access charges, charges
for use of inter-company | ||||||
15 | facilities, and all telecommunications resold in
the | ||||||
16 | subsequent provision of, used as a component of, or integrated | ||||||
17 | into
end-to-end telecommunications service shall be | ||||||
18 | non-taxable as sales for resale.
| ||||||
19 | (d) "Interstate telecommunications" means all | ||||||
20 | telecommunications that
either originate or terminate outside | ||||||
21 | this State.
| ||||||
22 | (e) "Intrastate telecommunications" means all | ||||||
23 | telecommunications that
originate and terminate within this | ||||||
24 | State.
| ||||||
25 | (f) "Department" means the Department of Revenue of the | ||||||
26 | State of Illinois.
|
| |||||||
| |||||||
1 | (g) "Director" means the Director of Revenue for the | ||||||
2 | Department of
Revenue of the State of Illinois.
| ||||||
3 | (h) "Taxpayer" means a person who individually or through | ||||||
4 | his agents,
employees or permittees engages in the act or | ||||||
5 | privilege of originating or
receiving telecommunications in | ||||||
6 | this State and who incurs a tax liability
under this Article.
| ||||||
7 | (i) "Person" means any natural individual, firm, trust, | ||||||
8 | estate, partnership,
association, joint stock company, joint | ||||||
9 | venture, corporation, limited liability
company, or a | ||||||
10 | receiver, trustee, guardian or other representative appointed | ||||||
11 | by
order of any court, the Federal and State governments, | ||||||
12 | including State
universities created by statute or any city, | ||||||
13 | town, county or other political
subdivision of this State.
| ||||||
14 | (j) "Purchase at retail" means the acquisition, | ||||||
15 | consumption or use of
telecommunication through a sale at | ||||||
16 | retail.
| ||||||
17 | (k) "Sale at retail" means the transmitting, supplying or | ||||||
18 | furnishing of
telecommunications and all services and | ||||||
19 | equipment provided in connection
therewith for a consideration | ||||||
20 | to persons other than the Federal and State
governments, and | ||||||
21 | State universities created by statute and other than between
a | ||||||
22 | parent corporation and its wholly owned subsidiaries or | ||||||
23 | between wholly
owned subsidiaries for their use or consumption | ||||||
24 | and not for resale.
| ||||||
25 | (l) "Retailer" means and includes every person engaged in | ||||||
26 | the business
of making sales at retail as defined in this |
| |||||||
| |||||||
1 | Article. The Department may, in
its discretion, upon | ||||||
2 | application, authorize the collection of the tax
hereby | ||||||
3 | imposed by any retailer not maintaining a place of business | ||||||
4 | within
this State, who, to the satisfaction of the Department, | ||||||
5 | furnishes adequate
security to insure collection and payment | ||||||
6 | of the tax. Such retailer shall
be issued, without charge, a | ||||||
7 | permit to collect such tax. When so
authorized, it shall be the | ||||||
8 | duty of such retailer to collect the tax upon
all of the gross | ||||||
9 | charges for telecommunications in this State in the same
| ||||||
10 | manner and subject to the same requirements as a retailer | ||||||
11 | maintaining a
place of business within this State. The permit | ||||||
12 | may be revoked by the
Department at its discretion.
| ||||||
13 | (m) "Retailer maintaining a place of business in this | ||||||
14 | State", or any
like term, means and includes any retailer | ||||||
15 | having or maintaining within
this State, directly or by a | ||||||
16 | subsidiary, an office, distribution
facilities, transmission | ||||||
17 | facilities, sales office, warehouse or other place
of | ||||||
18 | business, or any agent or other representative operating | ||||||
19 | within this
State under the authority of the retailer or its | ||||||
20 | subsidiary, irrespective
of whether such place of business or | ||||||
21 | agent or other representative is
located here permanently or | ||||||
22 | temporarily, or whether such retailer or
subsidiary is | ||||||
23 | licensed to do business in this State.
| ||||||
24 | (n) "Service address" means the location of | ||||||
25 | telecommunications equipment
from which the telecommunications | ||||||
26 | services are originated or at which
telecommunications |
| |||||||
| |||||||
1 | services are received by a taxpayer. In the event this may
not | ||||||
2 | be a defined location, as in the case of mobile phones, paging | ||||||
3 | systems,
maritime systems, service address means the | ||||||
4 | customer's place of primary use
as defined in the Mobile | ||||||
5 | Telecommunications Sourcing Conformity Act. For
air-to-ground | ||||||
6 | systems and the like, service address shall mean the location
| ||||||
7 | of a taxpayer's primary use of the telecommunications | ||||||
8 | equipment as defined by
telephone number, authorization code, | ||||||
9 | or location in Illinois where bills are
sent.
| ||||||
10 | (o) "Prepaid telephone calling arrangements" mean the | ||||||
11 | right to exclusively
purchase telephone or telecommunications | ||||||
12 | services that must be paid for in
advance and enable the | ||||||
13 | origination of one or more intrastate, interstate, or
| ||||||
14 | international telephone calls or other telecommunications | ||||||
15 | using an access
number, an authorization code, or both, | ||||||
16 | whether manually or electronically
dialed, for which payment | ||||||
17 | to a retailer must be made in advance, provided
that, unless | ||||||
18 | recharged, no further service is provided once that prepaid
| ||||||
19 | amount of service has been consumed. Prepaid telephone calling | ||||||
20 | arrangements
include the recharge of a prepaid calling | ||||||
21 | arrangement. For purposes of this
subsection, "recharge" means | ||||||
22 | the purchase of additional prepaid telephone or
| ||||||
23 | telecommunications services whether or not the purchaser | ||||||
24 | acquires a different
access number or authorization code. | ||||||
25 | "Prepaid telephone calling arrangement"
does not include an | ||||||
26 | arrangement whereby a customer purchases a payment card and
|
| |||||||
| |||||||
1 | pursuant to which the service provider reflects the amount of | ||||||
2 | such purchase as
a credit on an invoice issued to that customer | ||||||
3 | under an existing subscription
plan.
| ||||||
4 | (Source: P.A. 102-669, eff. 11-16-21.)
| ||||||
5 | Section 925. The Electricity Excise Tax Law is amended by | ||||||
6 | changing Section 2-4 as follows:
| ||||||
7 | (35 ILCS 640/2-4)
| ||||||
8 | Sec. 2-4. Tax imposed.
| ||||||
9 | (a) Except as provided in subsection (b), a tax is
imposed | ||||||
10 | on the privilege
of using in this State electricity purchased | ||||||
11 | for use or
consumption and not for resale, other than by | ||||||
12 | municipal corporations owning and
operating a local | ||||||
13 | transportation system for public service, at the following
| ||||||
14 | rates per
kilowatt-hour delivered to the purchaser:
| ||||||
15 | (i) For the first 2000 kilowatt-hours used or
consumed | ||||||
16 | in a month: 0.330 cents per kilowatt-hour;
| ||||||
17 | (ii) For the next 48,000 kilowatt-hours used or
| ||||||
18 | consumed in a month: 0.319 cents per kilowatt-hour;
| ||||||
19 | (iii) For the next 50,000 kilowatt-hours used or
| ||||||
20 | consumed in a month: 0.303 cents per kilowatt-hour;
| ||||||
21 | (iv) For the next 400,000 kilowatt-hours used or
| ||||||
22 | consumed in a month: 0.297 cents per kilowatt-hour;
| ||||||
23 | (v) For the next 500,000 kilowatt-hours used or
| ||||||
24 | consumed in a month: 0.286 cents per kilowatt-hour;
|
| |||||||
| |||||||
1 | (vi) For the next 2,000,000 kilowatt-hours used or
| ||||||
2 | consumed in a month: 0.270 cents per kilowatt-hour;
| ||||||
3 | (vii) For the next 2,000,000 kilowatt-hours used or
| ||||||
4 | consumed in a month: 0.254 cents per kilowatt-hour;
| ||||||
5 | (viii) For the next 5,000,000 kilowatt-hours used
or | ||||||
6 | consumed in a month: 0.233 cents per kilowatt-hour;
| ||||||
7 | (ix) For the next 10,000,000 kilowatt-hours used or
| ||||||
8 | consumed in a month: 0.207 cents per kilowatt-hour;
| ||||||
9 | (x) For all electricity in excess of 20,000,000
| ||||||
10 | kilowatt-hours used or consumed in a month: 0.202 cents
| ||||||
11 | per kilowatt-hour.
| ||||||
12 | Provided, that in lieu of the foregoing rates, the tax
is | ||||||
13 | imposed on a self-assessing purchaser at the rate of 5.1%
of | ||||||
14 | the self-assessing purchaser's purchase price for
all | ||||||
15 | electricity distributed, supplied, furnished, sold,
| ||||||
16 | transmitted and delivered to the self-assessing purchaser in a
| ||||||
17 | month.
| ||||||
18 | (b) A tax is imposed on the privilege of using in this | ||||||
19 | State electricity
purchased from a municipal system or | ||||||
20 | electric cooperative, as defined in
Article XVII of the Public | ||||||
21 | Utilities Act, which has not made an election as
permitted by | ||||||
22 | either Section 17-200 or Section 17-300 of such Act, at the | ||||||
23 | lesser
of 0.32 cents per kilowatt hour of all electricity | ||||||
24 | distributed, supplied,
furnished, sold, transmitted, and | ||||||
25 | delivered by such municipal system or
electric cooperative to | ||||||
26 | the purchaser or 5% of each such purchaser's purchase
price |
| |||||||
| |||||||
1 | for all electricity distributed, supplied, furnished, sold, | ||||||
2 | transmitted,
and delivered by such municipal system or | ||||||
3 | electric cooperative to the
purchaser, whichever is the lower | ||||||
4 | rate as applied to each purchaser in each
billing period.
| ||||||
5 | (c) The tax imposed by this Section 2-4 is not imposed with
| ||||||
6 | respect to any use of electricity by business enterprises
| ||||||
7 | certified under Section 9-222.1 or 9-222.1A of the Public | ||||||
8 | Utilities Act,
as amended, to the extent of such exemption and | ||||||
9 | during the
time specified by the Department of Commerce and | ||||||
10 | Economic Opportunity; or with respect to any transaction in | ||||||
11 | interstate
commerce, or otherwise, to the extent to which such
| ||||||
12 | transaction may not, under the Constitution and statutes of
| ||||||
13 | the United States, be made the subject of taxation by this
| ||||||
14 | State.
| ||||||
15 | (d) The tax imposed by this Section 2-4 is not imposed with | ||||||
16 | respect to any use of electricity at a REV Illinois Project | ||||||
17 | site that has received a certification for tax exemption from | ||||||
18 | the Department of Commerce and Economic Opportunity pursuant | ||||||
19 | to Section 95 of the Reimagining Electric Vehicles in Illinois | ||||||
20 | Act, to the extent of such exemption, which shall be no more | ||||||
21 | than 10 years. | ||||||
22 | (e) The tax imposed by this Section 2-4 is not imposed with | ||||||
23 | respect to any use of electricity at a project site that has | ||||||
24 | received a certification for tax exemption from the Department | ||||||
25 | of Commerce and Economic Opportunity pursuant to the | ||||||
26 | Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, |
| |||||||
| |||||||
1 | to the extent of such exemption, which shall be no more than 10 | ||||||
2 | years. | ||||||
3 | (Source: P.A. 102-669, eff. 11-16-21.)
| ||||||
4 | Section 930. The Public Utilities Act is amended by | ||||||
5 | changing Section 9-222 as follows:
| ||||||
6 | (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
| ||||||
7 | Sec. 9-222.
Whenever a tax is imposed upon a public | ||||||
8 | utility
engaged in the business of distributing, supplying,
| ||||||
9 | furnishing, or selling gas for use or consumption pursuant to | ||||||
10 | Section 2 of
the Gas Revenue Tax Act, or whenever a tax is
| ||||||
11 | required to be collected by a delivering supplier pursuant to | ||||||
12 | Section 2-7 of
the Electricity Excise Tax Act, or whenever a | ||||||
13 | tax is imposed upon a public
utility pursuant to Section
2-202 | ||||||
14 | of this Act, such utility may charge its customers, other than
| ||||||
15 | customers who are high impact businesses under Section 5.5
of | ||||||
16 | the Illinois Enterprise Zone Act, electric vehicle | ||||||
17 | manufacturers, electric vehicle component parts manufacturers, | ||||||
18 | or electric vehicle power supply equipment manufacturers at | ||||||
19 | REV Illinois Project sites as certified under Section 95 of | ||||||
20 | the Reimagining Electric Vehicles in Illinois Act, | ||||||
21 | manufacturers under the Manufacturing Illinois Chips for Real | ||||||
22 | Opportunity (MICRO) Act, or certified business enterprises
| ||||||
23 | under Section 9-222.1 of this Act, to the extent of such | ||||||
24 | exemption and
during the period in which such exemption is in |
| |||||||
| |||||||
1 | effect,
in addition to any rate authorized by this Act, an | ||||||
2 | additional
charge equal to the total amount of such taxes. The | ||||||
3 | exemption of this
Section relating to high impact businesses | ||||||
4 | shall be subject to the
provisions of subsections (a), (b), | ||||||
5 | and (b-5) of Section 5.5 of
the Illinois
Enterprise Zone Act. | ||||||
6 | This requirement shall not
apply to taxes on invested capital | ||||||
7 | imposed pursuant to the Messages Tax
Act, the Gas Revenue Tax | ||||||
8 | Act and the Public Utilities Revenue Act.
Such utility shall | ||||||
9 | file with the Commission
a supplemental schedule which shall | ||||||
10 | specify such additional charge and
which shall become | ||||||
11 | effective upon filing without further notice. Such
additional | ||||||
12 | charge shall be shown separately on the utility bill to each
| ||||||
13 | customer. The Commission shall have the power to investigate | ||||||
14 | whether or
not such supplemental schedule correctly specifies | ||||||
15 | such additional charge,
but shall have no power to suspend | ||||||
16 | such supplemental schedule. If the
Commission finds, after a | ||||||
17 | hearing, that such supplemental schedule does not
correctly | ||||||
18 | specify such additional charge, it shall by order require a
| ||||||
19 | refund to the appropriate customers of the excess, if any, | ||||||
20 | with interest,
in such manner as it shall deem just and | ||||||
21 | reasonable, and in and by such
order shall require the utility | ||||||
22 | to file an amended supplemental schedule
corresponding to the | ||||||
23 | finding and order of the Commission.
Except with respect to | ||||||
24 | taxes imposed on invested capital,
such tax liabilities shall | ||||||
25 | be recovered from customers solely by means of
the additional | ||||||
26 | charges authorized by this Section.
|
| |||||||
| |||||||
1 | (Source: P.A. 102-669, eff. 11-16-21.)
| ||||||
2 | Section 999. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
|