Rep. Jennifer Gong-Gershowitz

Filed: 4/20/2023

 

 


 

 


 
10300SB0805ham001LRB103 03260 HLH 60801 a

1
AMENDMENT TO SENATE BILL 805

2    AMENDMENT NO. ______. Amend Senate Bill 805 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Enterprise Zone Act is amended by
5changing Section 5.5 as follows:
 
6    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
7    Sec. 5.5. High Impact Business.
8    (a) In order to respond to unique opportunities to assist
9in the encouragement, development, growth, and expansion of
10the private sector through large scale investment and
11development projects, the Department is authorized to receive
12and approve applications for the designation of "High Impact
13Businesses" in Illinois, for an initial term of 20 years with
14an option for renewal for a term not to exceed 20 years,
15subject to the following conditions:
16        (1) such applications may be submitted at any time

 

 

10300SB0805ham001- 2 -LRB103 03260 HLH 60801 a

1    during the year;
2        (2) such business is not located, at the time of
3    designation, in an enterprise zone designated pursuant to
4    this Act;
5        (3) the business intends to do one or more of the
6    following:
7            (A) the business intends to make a minimum
8        investment of $12,000,000 which will be placed in
9        service in qualified property and intends to create
10        500 full-time equivalent jobs at a designated location
11        in Illinois or intends to make a minimum investment of
12        $30,000,000 which will be placed in service in
13        qualified property and intends to retain 1,500
14        full-time retained jobs at a designated location in
15        Illinois. The terms "placed in service" and "qualified
16        property" have the same meanings as described in
17        subsection (h) of Section 201 of the Illinois Income
18        Tax Act; or
19            (B) the business intends to establish a new
20        electric generating facility at a designated location
21        in Illinois. "New electric generating facility", for
22        purposes of this Section, means a newly constructed
23        electric generation plant or a newly constructed
24        generation capacity expansion at an existing electric
25        generation plant, including the transmission lines and
26        associated equipment that transfers electricity from

 

 

10300SB0805ham001- 3 -LRB103 03260 HLH 60801 a

1        points of supply to points of delivery, and for which
2        such new foundation construction commenced not sooner
3        than July 1, 2001. Such facility shall be designed to
4        provide baseload electric generation and shall operate
5        on a continuous basis throughout the year; and (i)
6        shall have an aggregate rated generating capacity of
7        at least 1,000 megawatts for all new units at one site
8        if it uses natural gas as its primary fuel and
9        foundation construction of the facility is commenced
10        on or before December 31, 2004, or shall have an
11        aggregate rated generating capacity of at least 400
12        megawatts for all new units at one site if it uses coal
13        or gases derived from coal as its primary fuel and
14        shall support the creation of at least 150 new
15        Illinois coal mining jobs, or (ii) shall be funded
16        through a federal Department of Energy grant before
17        December 31, 2010 and shall support the creation of
18        Illinois coal-mining jobs, or (iii) shall use coal
19        gasification or integrated gasification-combined cycle
20        units that generate electricity or chemicals, or both,
21        and shall support the creation of Illinois coal-mining
22        jobs. The term "placed in service" has the same
23        meaning as described in subsection (h) of Section 201
24        of the Illinois Income Tax Act; or
25            (B-5) the business intends to establish a new
26        gasification facility at a designated location in

 

 

10300SB0805ham001- 4 -LRB103 03260 HLH 60801 a

1        Illinois. As used in this Section, "new gasification
2        facility" means a newly constructed coal gasification
3        facility that generates chemical feedstocks or
4        transportation fuels derived from coal (which may
5        include, but are not limited to, methane, methanol,
6        and nitrogen fertilizer), that supports the creation
7        or retention of Illinois coal-mining jobs, and that
8        qualifies for financial assistance from the Department
9        before December 31, 2010. A new gasification facility
10        does not include a pilot project located within
11        Jefferson County or within a county adjacent to
12        Jefferson County for synthetic natural gas from coal;
13        or
14            (C) the business intends to establish production
15        operations at a new coal mine, re-establish production
16        operations at a closed coal mine, or expand production
17        at an existing coal mine at a designated location in
18        Illinois not sooner than July 1, 2001; provided that
19        the production operations result in the creation of
20        150 new Illinois coal mining jobs as described in
21        subdivision (a)(3)(B) of this Section, and further
22        provided that the coal extracted from such mine is
23        utilized as the predominant source for a new electric
24        generating facility. The term "placed in service" has
25        the same meaning as described in subsection (h) of
26        Section 201 of the Illinois Income Tax Act; or

 

 

10300SB0805ham001- 5 -LRB103 03260 HLH 60801 a

1            (D) the business intends to construct new
2        transmission facilities or upgrade existing
3        transmission facilities at designated locations in
4        Illinois, for which construction commenced not sooner
5        than July 1, 2001. For the purposes of this Section,
6        "transmission facilities" means transmission lines
7        with a voltage rating of 115 kilovolts or above,
8        including associated equipment, that transfer
9        electricity from points of supply to points of
10        delivery and that transmit a majority of the
11        electricity generated by a new electric generating
12        facility designated as a High Impact Business in
13        accordance with this Section. The term "placed in
14        service" has the same meaning as described in
15        subsection (h) of Section 201 of the Illinois Income
16        Tax Act; or
17            (E) the business intends to establish a new wind
18        power facility at a designated location in Illinois.
19        For purposes of this Section, "new wind power
20        facility" means a newly constructed electric
21        generation facility, a newly constructed expansion of
22        an existing electric generation facility, or the
23        replacement of an existing electric generation
24        facility, including the demolition and removal of an
25        electric generation facility irrespective of whether
26        it will be replaced, placed in service or replaced on

 

 

10300SB0805ham001- 6 -LRB103 03260 HLH 60801 a

1        or after July 1, 2009, that generates electricity
2        using wind energy devices, and such facility shall be
3        deemed to include any permanent structures associated
4        with the electric generation facility and all
5        associated transmission lines, substations, and other
6        equipment related to the generation of electricity
7        from wind energy devices. For purposes of this
8        Section, "wind energy device" means any device, with a
9        nameplate capacity of at least 0.5 megawatts, that is
10        used in the process of converting kinetic energy from
11        the wind to generate electricity; or
12            (E-5) the business intends to establish a new
13        utility-scale solar facility at a designated location
14        in Illinois. For purposes of this Section, "new
15        utility-scale solar power facility" means a newly
16        constructed electric generation facility, or a newly
17        constructed expansion of an existing electric
18        generation facility, placed in service on or after
19        July 1, 2021, that (i) generates electricity using
20        photovoltaic cells and (ii) has a nameplate capacity
21        that is greater than 5,000 kilowatts, and such
22        facility shall be deemed to include all associated
23        transmission lines, substations, energy storage
24        facilities, and other equipment related to the
25        generation and storage of electricity from
26        photovoltaic cells; or

 

 

10300SB0805ham001- 7 -LRB103 03260 HLH 60801 a

1            (F) the business commits to (i) make a minimum
2        investment of $500,000,000, which will be placed in
3        service in a qualified property, (ii) create 125
4        full-time equivalent jobs at a designated location in
5        Illinois, (iii) establish a fertilizer plant at a
6        designated location in Illinois that complies with the
7        set-back standards as described in Table 1: Initial
8        Isolation and Protective Action Distances in the 2012
9        Emergency Response Guidebook published by the United
10        States Department of Transportation, (iv) pay a
11        prevailing wage for employees at that location who are
12        engaged in construction activities, and (v) secure an
13        appropriate level of general liability insurance to
14        protect against catastrophic failure of the fertilizer
15        plant or any of its constituent systems; in addition,
16        the business must agree to enter into a construction
17        project labor agreement including provisions
18        establishing wages, benefits, and other compensation
19        for employees performing work under the project labor
20        agreement at that location; for the purposes of this
21        Section, "fertilizer plant" means a newly constructed
22        or upgraded plant utilizing gas used in the production
23        of anhydrous ammonia and downstream nitrogen
24        fertilizer products for resale; for the purposes of
25        this Section, "prevailing wage" means the hourly cash
26        wages plus fringe benefits for training and

 

 

10300SB0805ham001- 8 -LRB103 03260 HLH 60801 a

1        apprenticeship programs approved by the U.S.
2        Department of Labor, Bureau of Apprenticeship and
3        Training, health and welfare, insurance, vacations and
4        pensions paid generally, in the locality in which the
5        work is being performed, to employees engaged in work
6        of a similar character on public works; this paragraph
7        (F) applies only to businesses that submit an
8        application to the Department within 60 days after
9        July 25, 2013 (the effective date of Public Act
10        98-109); or and
11            (G) the business intends to establish a new
12        cultured cell material food production facility at a
13        designated location in Illinois. As used in this
14        paragraph (G):
15            "Cultured cell material food production facility"
16        means a facility (i) at which cultured animal cell
17        food is developed using animal cell culture
18        technology, (ii) at which production processes occur
19        that include the establishment of cell lines and cell
20        banks, manufacturing controls, and all components and
21        inputs, and (iii) that complies with all existing
22        registrations, inspections, licensing, and approvals
23        from all applicable and participating State and
24        federal food agencies, including the Department of
25        Agriculture, the Department of Public Health, and the
26        United States Food and Drug Administration, to ensure

 

 

10300SB0805ham001- 9 -LRB103 03260 HLH 60801 a

1        that all food production is safe and lawful under
2        provisions of the Federal Food, Drug and Cosmetic Act
3        related to the development, production, and storage of
4        cultured animal cell food.
5            "New cultured cell material food production
6        facility" means a newly constructed cultured cell
7        material food production facility that is placed in
8        service on or after the effective date of this
9        amendatory Act of the 103rd General Assembly or a
10        newly constructed expansion of an existing cultured
11        cell material food production facility, in a
12        controlled environment, when the improvements are
13        placed in service on or after the effective date of
14        this amendatory Act of the 103rd General Assembly; and
15        (4) no later than 90 days after an application is
16    submitted, the Department shall notify the applicant of
17    the Department's determination of the qualification of the
18    proposed High Impact Business under this Section.
19    (b) Businesses designated as High Impact Businesses
20pursuant to subdivision (a)(3)(A) of this Section shall
21qualify for the credits and exemptions described in the
22following Acts: Section 9-222 and Section 9-222.1A of the
23Public Utilities Act, subsection (h) of Section 201 of the
24Illinois Income Tax Act, and Section 1d of the Retailers'
25Occupation Tax Act; provided that these credits and exemptions
26described in these Acts shall not be authorized until the

 

 

10300SB0805ham001- 10 -LRB103 03260 HLH 60801 a

1minimum investments set forth in subdivision (a)(3)(A) of this
2Section have been placed in service in qualified properties
3and, in the case of the exemptions described in the Public
4Utilities Act and Section 1d of the Retailers' Occupation Tax
5Act, the minimum full-time equivalent jobs or full-time
6retained jobs set forth in subdivision (a)(3)(A) of this
7Section have been created or retained. Businesses designated
8as High Impact Businesses under this Section shall also
9qualify for the exemption described in Section 5l of the
10Retailers' Occupation Tax Act. The credit provided in
11subsection (h) of Section 201 of the Illinois Income Tax Act
12shall be applicable to investments in qualified property as
13set forth in subdivision (a)(3)(A) of this Section.
14    (b-5) Businesses designated as High Impact Businesses
15pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
16and (a)(3)(D), and (a)(3)(G) of this Section shall qualify for
17the credits and exemptions described in the following Acts:
18Section 51 of the Retailers' Occupation Tax Act, Section 9-222
19and Section 9-222.1A of the Public Utilities Act, and
20subsection (h) of Section 201 of the Illinois Income Tax Act;
21however, the credits and exemptions authorized under Section
229-222 and Section 9-222.1A of the Public Utilities Act, and
23subsection (h) of Section 201 of the Illinois Income Tax Act
24shall not be authorized until the new electric generating
25facility, the new gasification facility, the new transmission
26facility, or the new, expanded, or reopened coal mine, or the

 

 

10300SB0805ham001- 11 -LRB103 03260 HLH 60801 a

1new cultured cell material food production facility is
2operational, except that a new electric generating facility
3whose primary fuel source is natural gas is eligible only for
4the exemption under Section 5l of the Retailers' Occupation
5Tax Act.
6    (b-6) Businesses designated as High Impact Businesses
7pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
8Section shall qualify for the exemptions described in Section
95l of the Retailers' Occupation Tax Act; any business so
10designated as a High Impact Business being, for purposes of
11this Section, a "Wind Energy Business".
12    (b-7) Beginning on January 1, 2021, businesses designated
13as High Impact Businesses by the Department shall qualify for
14the High Impact Business construction jobs credit under
15subsection (h-5) of Section 201 of the Illinois Income Tax Act
16if the business meets the criteria set forth in subsection (i)
17of this Section. The total aggregate amount of credits awarded
18under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
19shall not exceed $20,000,000 in any State fiscal year.
20    (c) High Impact Businesses located in federally designated
21foreign trade zones or sub-zones are also eligible for
22additional credits, exemptions and deductions as described in
23the following Acts: Section 9-221 and Section 9-222.1 of the
24Public Utilities Act; and subsection (g) of Section 201, and
25Section 203 of the Illinois Income Tax Act.
26    (d) Except for businesses contemplated under subdivision

 

 

10300SB0805ham001- 12 -LRB103 03260 HLH 60801 a

1(a)(3)(E) or (a)(3)(E-5), or (a)(3)(G) of this Section,
2existing Illinois businesses which apply for designation as a
3High Impact Business must provide the Department with the
4prospective plan for which 1,500 full-time retained jobs would
5be eliminated in the event that the business is not
6designated.
7    (e) Except for new businesses wind power facilities
8contemplated under subdivision (a)(3)(E) or subdivision
9(a)(3)(G) of this Section, new proposed facilities which apply
10for designation as High Impact Business must provide the
11Department with proof of alternative non-Illinois sites which
12would receive the proposed investment and job creation in the
13event that the business is not designated as a High Impact
14Business.
15    (f) Except for businesses contemplated under subdivision
16(a)(3)(E) or subdivision (a)(3)(G) of this Section, in the
17event that a business is designated a High Impact Business and
18it is later determined after reasonable notice and an
19opportunity for a hearing as provided under the Illinois
20Administrative Procedure Act, that the business would have
21placed in service in qualified property the investments and
22created or retained the requisite number of jobs without the
23benefits of the High Impact Business designation, the
24Department shall be required to immediately revoke the
25designation and notify the Director of the Department of
26Revenue who shall begin proceedings to recover all wrongfully

 

 

10300SB0805ham001- 13 -LRB103 03260 HLH 60801 a

1exempted State taxes with interest. The business shall also be
2ineligible for all State funded Department programs for a
3period of 10 years.
4    (g) The Department shall revoke a High Impact Business
5designation if the participating business fails to comply with
6the terms and conditions of the designation.
7    (h) Prior to designating a business, the Department shall
8provide the members of the General Assembly and Commission on
9Government Forecasting and Accountability with a report
10setting forth the terms and conditions of the designation and
11guarantees that have been received by the Department in
12relation to the proposed business being designated.
13    (i) High Impact Business construction jobs credit.
14Beginning on January 1, 2021, a High Impact Business may
15receive a tax credit against the tax imposed under subsections
16(a) and (b) of Section 201 of the Illinois Income Tax Act in an
17amount equal to 50% of the amount of the incremental income tax
18attributable to High Impact Business construction jobs credit
19employees employed in the course of completing a High Impact
20Business construction jobs project. However, the High Impact
21Business construction jobs credit may equal 75% of the amount
22of the incremental income tax attributable to High Impact
23Business construction jobs credit employees if the High Impact
24Business construction jobs credit project is located in an
25underserved area.
26    The Department shall certify to the Department of Revenue:

 

 

10300SB0805ham001- 14 -LRB103 03260 HLH 60801 a

1(1) the identity of taxpayers that are eligible for the High
2Impact Business construction jobs credit; and (2) the amount
3of High Impact Business construction jobs credits that are
4claimed pursuant to subsection (h-5) of Section 201 of the
5Illinois Income Tax Act in each taxable year. Any business
6entity that receives a High Impact Business construction jobs
7credit shall maintain a certified payroll pursuant to
8subsection (j) of this Section.
9    As used in this subsection (i):
10    "High Impact Business construction jobs credit" means an
11amount equal to 50% (or 75% if the High Impact Business
12construction project is located in an underserved area) of the
13incremental income tax attributable to High Impact Business
14construction job employees. The total aggregate amount of
15credits awarded under the Blue Collar Jobs Act (Article 20 of
16Public Act 101-9) shall not exceed $20,000,000 in any State
17fiscal year
18    "High Impact Business construction job employee" means a
19laborer or worker who is employed by an Illinois contractor or
20subcontractor in the actual construction work on the site of a
21High Impact Business construction job project.
22    "High Impact Business construction jobs project" means
23building a structure or building or making improvements of any
24kind to real property, undertaken and commissioned by a
25business that was designated as a High Impact Business by the
26Department. The term "High Impact Business construction jobs

 

 

10300SB0805ham001- 15 -LRB103 03260 HLH 60801 a

1project" does not include the routine operation, routine
2repair, or routine maintenance of existing structures,
3buildings, or real property.
4    "Incremental income tax" means the total amount withheld
5during the taxable year from the compensation of High Impact
6Business construction job employees.
7    "Underserved area" means a geographic area that meets one
8or more of the following conditions:
9        (1) the area has a poverty rate of at least 20%
10    according to the latest American Community Survey;
11        (2) 35% or more of the families with children in the
12    area are living below 130% of the poverty line, according
13    to the latest American Community Survey;
14        (3) at least 20% of the households in the area receive
15    assistance under the Supplemental Nutrition Assistance
16    Program (SNAP); or
17        (4) the area has an average unemployment rate, as
18    determined by the Illinois Department of Employment
19    Security, that is more than 120% of the national
20    unemployment average, as determined by the U.S. Department
21    of Labor, for a period of at least 2 consecutive calendar
22    years preceding the date of the application.
23    (j) Each contractor and subcontractor who is engaged in
24and executing a High Impact Business Construction jobs
25project, as defined under subsection (i) of this Section, for
26a business that is entitled to a credit pursuant to subsection

 

 

10300SB0805ham001- 16 -LRB103 03260 HLH 60801 a

1(i) of this Section shall:
2        (1) make and keep, for a period of 5 years from the
3    date of the last payment made on or after June 5, 2019 (the
4    effective date of Public Act 101-9) on a contract or
5    subcontract for a High Impact Business Construction Jobs
6    Project, records for all laborers and other workers
7    employed by the contractor or subcontractor on the
8    project; the records shall include:
9            (A) the worker's name;
10            (B) the worker's address;
11            (C) the worker's telephone number, if available;
12            (D) the worker's social security number;
13            (E) the worker's classification or
14        classifications;
15            (F) the worker's gross and net wages paid in each
16        pay period;
17            (G) the worker's number of hours worked each day;
18            (H) the worker's starting and ending times of work
19        each day;
20            (I) the worker's hourly wage rate;
21            (J) the worker's hourly overtime wage rate;
22            (K) the worker's race and ethnicity; and
23            (L) the worker's gender;
24        (2) no later than the 15th day of each calendar month,
25    provide a certified payroll for the immediately preceding
26    month to the taxpayer in charge of the High Impact

 

 

10300SB0805ham001- 17 -LRB103 03260 HLH 60801 a

1    Business construction jobs project; within 5 business days
2    after receiving the certified payroll, the taxpayer shall
3    file the certified payroll with the Department of Labor
4    and the Department of Commerce and Economic Opportunity; a
5    certified payroll must be filed for only those calendar
6    months during which construction on a High Impact Business
7    construction jobs project has occurred; the certified
8    payroll shall consist of a complete copy of the records
9    identified in paragraph (1) of this subsection (j), but
10    may exclude the starting and ending times of work each
11    day; the certified payroll shall be accompanied by a
12    statement signed by the contractor or subcontractor or an
13    officer, employee, or agent of the contractor or
14    subcontractor which avers that:
15            (A) he or she has examined the certified payroll
16        records required to be submitted by the Act and such
17        records are true and accurate; and
18            (B) the contractor or subcontractor is aware that
19        filing a certified payroll that he or she knows to be
20        false is a Class A misdemeanor.
21    A general contractor is not prohibited from relying on a
22certified payroll of a lower-tier subcontractor, provided the
23general contractor does not knowingly rely upon a
24subcontractor's false certification.
25    Any contractor or subcontractor subject to this
26subsection, and any officer, employee, or agent of such

 

 

10300SB0805ham001- 18 -LRB103 03260 HLH 60801 a

1contractor or subcontractor whose duty as an officer,
2employee, or agent it is to file a certified payroll under this
3subsection, who willfully fails to file such a certified
4payroll on or before the date such certified payroll is
5required by this paragraph to be filed and any person who
6willfully files a false certified payroll that is false as to
7any material fact is in violation of this Act and guilty of a
8Class A misdemeanor.
9    The taxpayer in charge of the project shall keep the
10records submitted in accordance with this subsection on or
11after June 5, 2019 (the effective date of Public Act 101-9) for
12a period of 5 years from the date of the last payment for work
13on a contract or subcontract for the High Impact Business
14construction jobs project.
15    The records submitted in accordance with this subsection
16shall be considered public records, except an employee's
17address, telephone number, and social security number, and
18made available in accordance with the Freedom of Information
19Act. The Department of Labor shall share the information with
20the Department in order to comply with the awarding of a High
21Impact Business construction jobs credit. A contractor,
22subcontractor, or public body may retain records required
23under this Section in paper or electronic format.
24    (k) Upon 7 business days' notice, each contractor and
25subcontractor shall make available for inspection and copying
26at a location within this State during reasonable hours, the

 

 

10300SB0805ham001- 19 -LRB103 03260 HLH 60801 a

1records identified in this subsection (j) to the taxpayer in
2charge of the High Impact Business construction jobs project,
3its officers and agents, the Director of the Department of
4Labor and his or her deputies and agents, and to federal,
5State, or local law enforcement agencies and prosecutors.
6    (l) The changes made to this Section by this amendatory
7Act of the 102nd General Assembly, other than the changes in
8subsection (a), apply to high impact businesses that submit
9applications on or after the effective date of this amendatory
10Act of the 102nd General Assembly.
11(Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
12102-558, eff. 8-20-21; 102-605, eff. 8-27-21; 102-662, eff.
139-15-21; 102-673, eff. 11-30-21; 102-813, eff. 5-13-22;
14102-1125, eff. 2-3-23.)
 
15    Section 10. The Economic Development for a Growing Economy
16Tax Credit Act is amended by changing Sections 5-5 and 5-15 as
17follows:
 
18    (35 ILCS 10/5-5)
19    Sec. 5-5. Definitions. As used in this Act:
20    "Agreement" means the Agreement between a Taxpayer and the
21Department under the provisions of Section 5-50 of this Act.
22    "Applicant" means a Taxpayer that is operating a business
23located or that the Taxpayer plans to locate within the State
24of Illinois and that is engaged in interstate or intrastate

 

 

10300SB0805ham001- 20 -LRB103 03260 HLH 60801 a

1commerce for the purpose of manufacturing, processing,
2assembling, warehousing, or distributing products, conducting
3research and development, providing tourism services, or
4providing services in interstate commerce, office industries,
5or agricultural processing, but excluding retail, retail food,
6health, or professional services. "Applicant" does not include
7a Taxpayer who closes or substantially reduces an operation at
8one location in the State and relocates substantially the same
9operation to another location in the State. This does not
10prohibit a Taxpayer from expanding its operations at another
11location in the State, provided that existing operations of a
12similar nature located within the State are not closed or
13substantially reduced. This also does not prohibit a Taxpayer
14from moving its operations from one location in the State to
15another location in the State for the purpose of expanding the
16operation provided that the Department determines that
17expansion cannot reasonably be accommodated within the
18municipality in which the business is located, or in the case
19of a business located in an incorporated area of the county,
20within the county in which the business is located, after
21conferring with the chief elected official of the municipality
22or county and taking into consideration any evidence offered
23by the municipality or county regarding the ability to
24accommodate expansion within the municipality or county.
25    "Credit" means the amount agreed to between the Department
26and Applicant under this Act, but not to exceed the lesser of:

 

 

10300SB0805ham001- 21 -LRB103 03260 HLH 60801 a

1(1) the sum of (i) 50% of the Incremental Income Tax
2attributable to New Employees at the Applicant's project and
3(ii) 10% of the training costs of New Employees; or (2) 100% of
4the Incremental Income Tax attributable to New Employees at
5the Applicant's project. However, if the project is located in
6an underserved area, then the amount of the Credit may not
7exceed the lesser of: (1) the sum of (i) 75% of the Incremental
8Income Tax attributable to New Employees at the Applicant's
9project and (ii) 10% of the training costs of New Employees; or
10(2) 100% of the Incremental Income Tax attributable to New
11Employees at the Applicant's project. If the project is not
12located in an underserved area and the Applicant agrees to
13hire the required number of New Employees, then the maximum
14amount of the Credit for that Applicant may be increased by an
15amount not to exceed 25% of the Incremental Income Tax
16attributable to retained employees at the Applicant's project.
17If the project is located in an underserved area and the
18Applicant agrees to hire the required number of New Employees,
19then the maximum amount of the credit for that Applicant may be
20increased by an amount not to exceed 50% of the Incremental
21Income Tax attributable to retained employees at the
22Applicant's project.
23    "Department" means the Department of Commerce and Economic
24Opportunity.
25    "Director" means the Director of Commerce and Economic
26Opportunity.

 

 

10300SB0805ham001- 22 -LRB103 03260 HLH 60801 a

1    "Full-time Employee" means an individual who is employed
2for consideration for at least 35 hours each week or who
3renders any other standard of service generally accepted by
4industry custom or practice as full-time employment. An
5individual for whom a W-2 is issued by a Professional Employer
6Organization (PEO) is a full-time employee if employed in the
7service of the Applicant for consideration for at least 35
8hours each week or who renders any other standard of service
9generally accepted by industry custom or practice as full-time
10employment to Applicant.
11    "Incremental Income Tax" means the total amount withheld
12during the taxable year from the compensation of New Employees
13and, if applicable, retained employees under Article 7 of the
14Illinois Income Tax Act arising from employment at a project
15that is the subject of an Agreement.
16    "New Construction EDGE Agreement" means the Agreement
17between a Taxpayer and the Department under the provisions of
18Section 5-51 of this Act.
19    "New Construction EDGE Credit" means an amount agreed to
20between the Department and the Applicant under this Act as
21part of a New Construction EDGE Agreement that does not exceed
2250% of the Incremental Income Tax attributable to New
23Construction EDGE Employees at the Applicant's project;
24however, if the New Construction EDGE Project is located in an
25underserved area, then the amount of the New Construction EDGE
26Credit may not exceed 75% of the Incremental Income Tax

 

 

10300SB0805ham001- 23 -LRB103 03260 HLH 60801 a

1attributable to New Construction EDGE Employees at the
2Applicant's New Construction EDGE Project.
3    "New Construction EDGE Employee" means a laborer or worker
4who is employed by an Illinois contractor or subcontractor in
5the actual construction work on the site of a New Construction
6EDGE Project, pursuant to a New Construction EDGE Agreement.
7    "New Construction EDGE Incremental Income Tax" means the
8total amount withheld during the taxable year from the
9compensation of New Construction EDGE Employees.
10    "New Construction EDGE Project" means the building of a
11Taxpayer's structure or building, or making improvements of
12any kind to real property. "New Construction EDGE Project"
13does not include the routine operation, routine repair, or
14routine maintenance of existing structures, buildings, or real
15property.
16    "New Employee" means:
17        (a) A Full-time Employee first employed by a Taxpayer
18    in the project that is the subject of an Agreement and who
19    is hired after the Taxpayer enters into the tax credit
20    Agreement.
21        (b) The term "New Employee" does not include:
22            (1) an employee of the Taxpayer who performs a job
23        that was previously performed by another employee, if
24        that job existed for at least 6 months before hiring
25        the employee;
26            (2) an employee of the Taxpayer who was previously

 

 

10300SB0805ham001- 24 -LRB103 03260 HLH 60801 a

1        employed in Illinois by a Related Member of the
2        Taxpayer and whose employment was shifted to the
3        Taxpayer after the Taxpayer entered into the tax
4        credit Agreement; or
5            (3) a child, grandchild, parent, or spouse, other
6        than a spouse who is legally separated from the
7        individual, of any individual who has a direct or an
8        indirect ownership interest of at least 5% in the
9        profits, capital, or value of the Taxpayer.
10        (c) Notwithstanding paragraph (1) of subsection (b),
11    an employee may be considered a New Employee under the
12    Agreement if the employee performs a job that was
13    previously performed by an employee who was:
14            (1) treated under the Agreement as a New Employee;
15        and
16            (2) promoted by the Taxpayer to another job.
17        (d) Notwithstanding subsection (a), the Department may
18    award Credit to an Applicant with respect to an employee
19    hired prior to the date of the Agreement if:
20            (1) the Applicant is in receipt of a letter from
21        the Department stating an intent to enter into a
22        credit Agreement;
23            (2) the letter described in paragraph (1) is
24        issued by the Department not later than 15 days after
25        the effective date of this Act; and
26            (3) the employee was hired after the date the

 

 

10300SB0805ham001- 25 -LRB103 03260 HLH 60801 a

1        letter described in paragraph (1) was issued.
2    "Noncompliance Date" means, in the case of a Taxpayer that
3is not complying with the requirements of the Agreement or the
4provisions of this Act, the day following the last date upon
5which the Taxpayer was in compliance with the requirements of
6the Agreement and the provisions of this Act, as determined by
7the Director, pursuant to Section 5-65.
8    "Pass Through Entity" means an entity that is exempt from
9the tax under subsection (b) or (c) of Section 205 of the
10Illinois Income Tax Act.
11    "Professional Employer Organization" (PEO) means an
12employee leasing company, as defined in Section 206.1(A)(2) of
13the Illinois Unemployment Insurance Act.
14    "Related Member" means a person that, with respect to the
15Taxpayer during any portion of the taxable year, is any one of
16the following:
17        (1) An individual stockholder, if the stockholder and
18    the members of the stockholder's family (as defined in
19    Section 318 of the Internal Revenue Code) own directly,
20    indirectly, beneficially, or constructively, in the
21    aggregate, at least 50% of the value of the Taxpayer's
22    outstanding stock.
23        (2) A partnership, estate, or trust and any partner or
24    beneficiary, if the partnership, estate, or trust, and its
25    partners or beneficiaries own directly, indirectly,
26    beneficially, or constructively, in the aggregate, at

 

 

10300SB0805ham001- 26 -LRB103 03260 HLH 60801 a

1    least 50% of the profits, capital, stock, or value of the
2    Taxpayer.
3        (3) A corporation, and any party related to the
4    corporation in a manner that would require an attribution
5    of stock from the corporation to the party or from the
6    party to the corporation under the attribution rules of
7    Section 318 of the Internal Revenue Code, if the Taxpayer
8    owns directly, indirectly, beneficially, or constructively
9    at least 50% of the value of the corporation's outstanding
10    stock.
11        (4) A corporation and any party related to that
12    corporation in a manner that would require an attribution
13    of stock from the corporation to the party or from the
14    party to the corporation under the attribution rules of
15    Section 318 of the Internal Revenue Code, if the
16    corporation and all such related parties own in the
17    aggregate at least 50% of the profits, capital, stock, or
18    value of the Taxpayer.
19        (5) A person to or from whom there is attribution of
20    stock ownership in accordance with Section 1563(e) of the
21    Internal Revenue Code, except, for purposes of determining
22    whether a person is a Related Member under this paragraph,
23    20% shall be substituted for 5% wherever 5% appears in
24    Section 1563(e) of the Internal Revenue Code.
25    "Startup taxpayer" means, for Agreements that are executed
26before the effective date of this amendatory Act of the 103rd

 

 

10300SB0805ham001- 27 -LRB103 03260 HLH 60801 a

1General Assembly, a corporation, partnership, or other entity
2incorporated or organized no more than 5 years before the
3filing of an application for an Agreement that has never had
4any Illinois income tax liability, excluding any Illinois
5income tax liability of a Related Member which shall not be
6attributed to the startup taxpayer. "Startup taxpayer" means,
7for Agreements that are executed on or after the effective
8date of this amendatory Act of the 103rd General Assembly, a
9corporation, partnership, or other entity that is incorporated
10or organized no more than 10 years before the filing of an
11application for an Agreement and that has never had any
12Illinois income tax liability. For the purpose of determining
13whether the taxpayer has had any Illinois income tax
14liability, the Illinois income tax liability of a Related
15Member shall not be attributed to the startup taxpayer.
16    "Taxpayer" means an individual, corporation, partnership,
17or other entity that has any Illinois Income Tax liability.
18    Until July 1, 2022, "underserved area" means a geographic
19area that meets one or more of the following conditions:
20        (1) the area has a poverty rate of at least 20%
21    according to the latest federal decennial census;
22        (2) 75% or more of the children in the area
23    participate in the federal free lunch program according to
24    reported statistics from the State Board of Education;
25        (3) at least 20% of the households in the area receive
26    assistance under the Supplemental Nutrition Assistance

 

 

10300SB0805ham001- 28 -LRB103 03260 HLH 60801 a

1    Program (SNAP); or
2        (4) the area has an average unemployment rate, as
3    determined by the Illinois Department of Employment
4    Security, that is more than 120% of the national
5    unemployment average, as determined by the U.S. Department
6    of Labor, for a period of at least 2 consecutive calendar
7    years preceding the date of the application.
8    On and after July 1, 2022, "underserved area" means a
9geographic area that meets one or more of the following
10conditions:
11        (1) the area has a poverty rate of at least 20%
12    according to the latest American Community Survey;
13        (2) 35% or more of the families with children in the
14    area are living below 130% of the poverty line, according
15    to the latest American Community Survey;
16        (3) at least 20% of the households in the area receive
17    assistance under the Supplemental Nutrition Assistance
18    Program (SNAP); or
19        (4) the area has an average unemployment rate, as
20    determined by the Illinois Department of Employment
21    Security, that is more than 120% of the national
22    unemployment average, as determined by the U.S. Department
23    of Labor, for a period of at least 2 consecutive calendar
24    years preceding the date of the application.
25(Source: P.A. 101-9, eff. 6-5-19; 102-330, eff. 1-1-22;
26102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
 

 

 

10300SB0805ham001- 29 -LRB103 03260 HLH 60801 a

1    (35 ILCS 10/5-15)
2    Sec. 5-15. Tax Credit Awards. Subject to the conditions
3set forth in this Act, a Taxpayer is entitled to a Credit
4against or, as described in subsection (g) of this Section, a
5payment towards taxes imposed pursuant to subsections (a) and
6(b) of Section 201 of the Illinois Income Tax Act that may be
7imposed on the Taxpayer for a taxable year beginning on or
8after January 1, 1999, if the Taxpayer is awarded a Credit by
9the Department under this Act for that taxable year.
10    (a) The Department shall make Credit awards under this Act
11to foster job creation and retention in Illinois.
12    (b) A person that proposes a project to create new jobs in
13Illinois must enter into an Agreement with the Department for
14the Credit under this Act.
15    (c) The Credit shall be claimed for the taxable years
16specified in the Agreement.
17    (d) The Credit shall not exceed the Incremental Income Tax
18attributable to the project that is the subject of the
19Agreement.
20    (e) Nothing herein shall prohibit a Tax Credit Award to an
21Applicant that uses a PEO if all other award criteria are
22satisfied.
23    (f) In lieu of the Credit allowed under this Act against
24the taxes imposed pursuant to subsections (a) and (b) of
25Section 201 of the Illinois Income Tax Act for any taxable year

 

 

10300SB0805ham001- 30 -LRB103 03260 HLH 60801 a

1ending on or after December 31, 2009, for Taxpayers that
2entered into Agreements prior to January 1, 2015 and otherwise
3meet the criteria set forth in this subsection (f), the
4Taxpayer may elect to claim the Credit against its obligation
5to pay over withholding under Section 704A of the Illinois
6Income Tax Act.
7        (1) The election under this subsection (f) may be made
8    only by a Taxpayer that (i) is primarily engaged in one of
9    the following business activities: water purification and
10    treatment, motor vehicle metal stamping, automobile
11    manufacturing, automobile and light duty motor vehicle
12    manufacturing, motor vehicle manufacturing, light truck
13    and utility vehicle manufacturing, heavy duty truck
14    manufacturing, motor vehicle body manufacturing, cable
15    television infrastructure design or manufacturing, or
16    wireless telecommunication or computing terminal device
17    design or manufacturing for use on public networks and
18    (ii) meets the following criteria:
19            (A) the Taxpayer (i) had an Illinois net loss or an
20        Illinois net loss deduction under Section 207 of the
21        Illinois Income Tax Act for the taxable year in which
22        the Credit is awarded, (ii) employed a minimum of
23        1,000 full-time employees in this State during the
24        taxable year in which the Credit is awarded, (iii) has
25        an Agreement under this Act on December 14, 2009 (the
26        effective date of Public Act 96-834), and (iv) is in

 

 

10300SB0805ham001- 31 -LRB103 03260 HLH 60801 a

1        compliance with all provisions of that Agreement;
2            (B) the Taxpayer (i) had an Illinois net loss or an
3        Illinois net loss deduction under Section 207 of the
4        Illinois Income Tax Act for the taxable year in which
5        the Credit is awarded, (ii) employed a minimum of
6        1,000 full-time employees in this State during the
7        taxable year in which the Credit is awarded, and (iii)
8        has applied for an Agreement within 365 days after
9        December 14, 2009 (the effective date of Public Act
10        96-834);
11            (C) the Taxpayer (i) had an Illinois net operating
12        loss carryforward under Section 207 of the Illinois
13        Income Tax Act in a taxable year ending during
14        calendar year 2008, (ii) has applied for an Agreement
15        within 150 days after the effective date of this
16        amendatory Act of the 96th General Assembly, (iii)
17        creates at least 400 new jobs in Illinois, (iv)
18        retains at least 2,000 jobs in Illinois that would
19        have been at risk of relocation out of Illinois over a
20        10-year period, and (v) makes a capital investment of
21        at least $75,000,000;
22            (D) the Taxpayer (i) had an Illinois net operating
23        loss carryforward under Section 207 of the Illinois
24        Income Tax Act in a taxable year ending during
25        calendar year 2009, (ii) has applied for an Agreement
26        within 150 days after the effective date of this

 

 

10300SB0805ham001- 32 -LRB103 03260 HLH 60801 a

1        amendatory Act of the 96th General Assembly, (iii)
2        creates at least 150 new jobs, (iv) retains at least
3        1,000 jobs in Illinois that would have been at risk of
4        relocation out of Illinois over a 10-year period, and
5        (v) makes a capital investment of at least
6        $57,000,000; or
7            (E) the Taxpayer (i) employed at least 2,500
8        full-time employees in the State during the year in
9        which the Credit is awarded, (ii) commits to make at
10        least $500,000,000 in combined capital improvements
11        and project costs under the Agreement, (iii) applies
12        for an Agreement between January 1, 2011 and June 30,
13        2011, (iv) executes an Agreement for the Credit during
14        calendar year 2011, and (v) was incorporated no more
15        than 5 years before the filing of an application for an
16        Agreement.
17        (1.5) The election under this subsection (f) may also
18    be made by a Taxpayer for any Credit awarded pursuant to an
19    agreement that was executed between January 1, 2011 and
20    June 30, 2011, if the Taxpayer (i) is primarily engaged in
21    the manufacture of inner tubes or tires, or both, from
22    natural and synthetic rubber, (ii) employs a minimum of
23    2,400 full-time employees in Illinois at the time of
24    application, (iii) creates at least 350 full-time jobs and
25    retains at least 250 full-time jobs in Illinois that would
26    have been at risk of being created or retained outside of

 

 

10300SB0805ham001- 33 -LRB103 03260 HLH 60801 a

1    Illinois, and (iv) makes a capital investment of at least
2    $200,000,000 at the project location.
3        (1.6) The election under this subsection (f) may also
4    be made by a Taxpayer for any Credit awarded pursuant to an
5    agreement that was executed within 150 days after the
6    effective date of this amendatory Act of the 97th General
7    Assembly, if the Taxpayer (i) is primarily engaged in the
8    operation of a discount department store, (ii) maintains
9    its corporate headquarters in Illinois, (iii) employs a
10    minimum of 4,250 full-time employees at its corporate
11    headquarters in Illinois at the time of application, (iv)
12    retains at least 4,250 full-time jobs in Illinois that
13    would have been at risk of being relocated outside of
14    Illinois, (v) had a minimum of $40,000,000,000 in total
15    revenue in 2010, and (vi) makes a capital investment of at
16    least $300,000,000 at the project location.
17        (1.7) Notwithstanding any other provision of law, the
18    election under this subsection (f) may also be made by a
19    Taxpayer for any Credit awarded pursuant to an agreement
20    that was executed or applied for on or after July 1, 2011
21    and on or before March 31, 2012, if the Taxpayer is
22    primarily engaged in the manufacture of original and
23    aftermarket filtration parts and products for automobiles,
24    motor vehicles, light duty motor vehicles, light trucks
25    and utility vehicles, and heavy duty trucks, (ii) employs
26    a minimum of 1,000 full-time employees in Illinois at the

 

 

10300SB0805ham001- 34 -LRB103 03260 HLH 60801 a

1    time of application, (iii) creates at least 250 full-time
2    jobs in Illinois, (iv) relocates its corporate
3    headquarters to Illinois from another state, and (v) makes
4    a capital investment of at least $4,000,000 at the project
5    location.
6        (1.8) Notwithstanding any other provision of law, the
7    election under this subsection (f) may also be made by a
8    startup taxpayer for any Credit awarded pursuant to an
9    Agreement that was executed or applied for on or after the
10    effective date of this amendatory Act of the 102nd General
11    Assembly, if the startup taxpayer, without considering any
12    Related Member or other investor, (i) has never had any
13    Illinois income tax liability and (ii) was incorporated no
14    more than 5 years before the filing of an application for
15    an Agreement. Any such election under this paragraph (1.8)
16    shall be effective unless and until such startup taxpayer
17    has any Illinois income tax liability. This election under
18    this paragraph (1.8) shall automatically terminate when
19    the startup taxpayer has any Illinois income tax liability
20    at the end of any taxable year during the term of the
21    Agreement. Thereafter, the startup taxpayer may receive a
22    Credit, taking into account any benefits previously
23    enjoyed or received by way of the election under this
24    paragraph (1.8), so long as the startup taxpayer remains
25    in compliance with the terms and conditions of the
26    Agreement.

 

 

10300SB0805ham001- 35 -LRB103 03260 HLH 60801 a

1        (2) An election under this subsection shall allow the
2    credit to be taken against payments otherwise due under
3    Section 704A of the Illinois Income Tax Act during the
4    first calendar quarter year beginning after the end of the
5    taxable quarter year in which the credit is awarded under
6    this Act.
7        (3) The election shall be made in the form and manner
8    required by the Illinois Department of Revenue and, once
9    made, shall be irrevocable.
10        (4) If a Taxpayer who meets the requirements of
11    subparagraph (A) of paragraph (1) of this subsection (f)
12    elects to claim the Credit against its withholdings as
13    provided in this subsection (f), then, on and after the
14    date of the election, the terms of the Agreement between
15    the Taxpayer and the Department may not be further amended
16    during the term of the Agreement.
17    (g) A pass-through entity that has been awarded a credit
18under this Act, its shareholders, or its partners may treat
19some or all of the credit awarded pursuant to this Act as a tax
20payment for purposes of the Illinois Income Tax Act. The term
21"tax payment" means a payment as described in Article 6 or
22Article 8 of the Illinois Income Tax Act or a composite payment
23made by a pass-through entity on behalf of any of its
24shareholders or partners to satisfy such shareholders' or
25partners' taxes imposed pursuant to subsections (a) and (b) of
26Section 201 of the Illinois Income Tax Act. In no event shall

 

 

10300SB0805ham001- 36 -LRB103 03260 HLH 60801 a

1the amount of the award credited pursuant to this Act exceed
2the Illinois income tax liability of the pass-through entity
3or its shareholders or partners for the taxable year.
4(Source: P.A. 102-700, eff. 4-19-22.)
 
5    Section 15. The Public Utilities Act is amended by
6changing Section 9-222.1A as follows:
 
7    (220 ILCS 5/9-222.1A)
8    Sec. 9-222.1A. High impact business. Beginning on August
91, 1998 and thereafter, a business enterprise that is
10certified as a High Impact Business by the Department of
11Commerce and Economic Opportunity (formerly Department of
12Commerce and Community Affairs) is exempt from the tax imposed
13by Section 2-4 of the Electricity Excise Tax Law, if the High
14Impact Business is registered to self-assess that tax, and is
15exempt from any additional charges added to the business
16enterprise's utility bills as a pass-on of State utility taxes
17under Section 9-222 of this Act, to the extent the tax or
18charges are exempted by the percentage specified by the
19Department of Commerce and Economic Opportunity for State
20utility taxes, provided the business enterprise meets the
21following criteria:
22        (1) (A) it intends either (i) to make a minimum
23        eligible investment of $12,000,000 that will be placed
24        in service in qualified property in Illinois and is

 

 

10300SB0805ham001- 37 -LRB103 03260 HLH 60801 a

1        intended to create at least 500 full-time equivalent
2        jobs at a designated location in Illinois; or (ii) to
3        make a minimum eligible investment of $30,000,000 that
4        will be placed in service in qualified property in
5        Illinois and is intended to retain at least 1,500
6        full-time equivalent jobs at a designated location in
7        Illinois; or
8            (B) it meets the criteria of subdivision
9        (a)(3)(B), (a)(3)(C), (a)(3)(D), or (a)(3)(F), or
10        (a)(3)(G) of Section 5.5 of the Illinois Enterprise
11        Zone Act;
12        (2) it is designated as a High Impact Business by the
13    Department of Commerce and Economic Opportunity; and
14        (3) it is certified by the Department of Commerce and
15    Economic Opportunity as complying with the requirements
16    specified in clauses (1) and (2) of this Section.
17    The Department of Commerce and Economic Opportunity shall
18determine the period during which the exemption from the
19Electricity Excise Tax Law and the charges imposed under
20Section 9-222 are in effect and shall specify the percentage
21of the exemption from those taxes or additional charges.
22    The Department of Commerce and Economic Opportunity is
23authorized to promulgate rules and regulations to carry out
24the provisions of this Section, including procedures for
25complying with the requirements specified in clauses (1) and
26(2) of this Section and procedures for applying for the

 

 

10300SB0805ham001- 38 -LRB103 03260 HLH 60801 a

1exemptions authorized under this Section; to define the
2amounts and types of eligible investments that business
3enterprises must make in order to receive State utility tax
4exemptions or exemptions from the additional charges imposed
5under Section 9-222 and this Section; to approve such utility
6tax exemptions for business enterprises whose investments are
7not yet placed in service; and to require that business
8enterprises granted tax exemptions or exemptions from
9additional charges under Section 9-222 repay the exempted
10amount if the business enterprise fails to comply with the
11terms and conditions of the certification.
12    Upon certification of the business enterprises by the
13Department of Commerce and Economic Opportunity, the
14Department of Commerce and Economic Opportunity shall notify
15the Department of Revenue of the certification. The Department
16of Revenue shall notify the public utilities of the exemption
17status of business enterprises from the tax or pass-on charges
18of State utility taxes. The exemption status shall take effect
19within 3 months after certification of the business
20enterprise.
21(Source: P.A. 102-1125, eff. 2-3-23.)".