103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2790

 

Introduced 2/16/2023, by Rep. William "Will" Davis

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Economic Development Property Tax Grant Program Act. Provides that the Department of Commerce and Economic Opportunity shall award property tax grants to each business that (i) is an approved applicant under the Invest in Illinois Act, the Economic Development for a Growing Economy Tax Credit Act, the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, or the Reimagining Electric Vehicles in Illinois Act and (ii) owns property in an underserved area. Sets forth the amount of the grants. Effective immediately.


LRB103 28653 HLH 55034 b

 

 

A BILL FOR

 

HB2790LRB103 28653 HLH 55034 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Economic Development Property Tax Grant Program Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Base year property taxes" means the amount of property
8taxes billed for the subject parcels in the year before the
9year in which real property capital improvements are placed in
10service.
11    "Current year property taxes" means the amount of property
12taxes billed for the subject parcels in the year for which the
13grant is awarded.
14    "Department" means the Department of Commerce and Economic
15Opportunity.
16    "Qualified property" means property that is owned by a
17business that is eligible for a grant under this Act and that
18is located in an underserved area.
19    "Underserved area" has the meaning given to that term in
20Section 5-5 of the Economic Development for a Growing Economy
21Tax Credit Act.
 
22    Section 10. Property tax grants.

 

 

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1    (a) In addition to any other incentives provided by law,
2the Department shall award property tax grants to each
3business that (i) is an approved applicant under the Invest in
4Illinois Act, the Economic Development for a Growing Economy
5Tax Credit Act, the Manufacturing Illinois Chips for Real
6Opportunity (MICRO) Act, or the Reimagining Electric Vehicles
7in Illinois Act and (ii) is located in an underserved area.
8Eligible businesses shall receive grants under this Act for
9qualified property beginning with the first year in which the
10real property capital improvements that are placed in service
11by the approved applicant result in an increased real property
12assessment and increased property taxes over the base year
13property taxes.
14    (b) For the first 5 years in which the applicant is
15eligible for a grant under this Section with respect to a
16specific qualified property, the amount of the grant shall be
17100% of the difference between the current year property taxes
18for the property and the base year property taxes for the
19property. For the sixth through the tenth years in which the
20applicant is eligible for a grant under this Section with
21respect to a specific qualified property, the amount of the
22grant shall be as follows:
23        (1) in year 6, 90% of the difference between the
24    current year property taxes and the base year property
25    taxes;
26        (2) in year 7, 80% of the difference between the

 

 

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1    current year property taxes and the base year property
2    taxes;
3        (3) in year 8, 70% of the difference between the
4    current year property taxes and the base year property
5    taxes;
6        (4) in year 9, 60% of the difference between the
7    current year property taxes and the base year property
8    taxes; and
9        (5) in year 10, 50% of the difference between the
10    current year property taxes and the base year property
11    taxes.
 
12    Section 15. Funding. Grants under this Act may be awarded
13from any source that may be used to make grants under the
14Invest in Illinois Act.
 
15    Section 20. Rules. The Department shall adopt rules for
16the implementation of this Act.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.