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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Property Tax Code is amended by changing
5 Section 18-165 as follows:
 
6     (35 ILCS 200/18-165)
7     Sec. 18-165. Abatement of taxes.
8     (a) Any taxing district, upon a majority vote of its
9 governing authority, may, after the determination of the
10 assessed valuation of its property, order the clerk of that
11 county to abate any portion of its taxes on the following types
12 of property:
13         (1) Commercial and industrial.
14             (A) The property of any commercial or industrial
15         firm, including but not limited to the property of (i)
16         any firm that is used for collecting, separating,
17         storing, or processing recyclable materials, locating
18         within the taxing district during the immediately
19         preceding year from another state, territory, or
20         country, or having been newly created within this State
21         during the immediately preceding year, or expanding an
22         existing facility, or (ii) any firm that is used for
23         the generation and transmission of electricity
24         locating within the taxing district during the
25         immediately preceding year or expanding its presence
26         within the taxing district during the immediately
27         preceding year by construction of a new electric
28         generating facility that uses natural gas as its fuel,
29         or any firm that is used for production operations at a
30         new, expanded, or reopened coal mine within the taxing
31         district, that has been certified as a High Impact
32         Business by the Illinois Department of Commerce and

 

 

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1         Economic Opportunity Community Affairs. The property
2         of any firm used for the generation and transmission of
3         electricity shall include all property of the firm used
4         for transmission facilities as defined in Section 5.5
5         of the Illinois Enterprise Zone Act. The abatement
6         shall not exceed a period of 10 years and the aggregate
7         amount of abated taxes for all taxing districts
8         combined shall not exceed $4,000,000.
9             (A-5) Any property in the taxing district of a new
10         electric generating facility, as defined in Section
11         605-332 of the Department of Commerce and Economic
12         Opportunity Community Affairs Law of the Civil
13         Administrative Code of Illinois. The abatement shall
14         not exceed a period of 10 years. The abatement shall be
15         subject to the following limitations:
16                 (i) if the equalized assessed valuation of the
17             new electric generating facility is equal to or
18             greater than $25,000,000 but less than
19             $50,000,000, then the abatement may not exceed (i)
20             over the entire term of the abatement, 5% of the
21             taxing district's aggregate taxes from the new
22             electric generating facility and (ii) in any one
23             year of abatement, 20% of the taxing district's
24             taxes from the new electric generating facility;
25                 (ii) if the equalized assessed valuation of
26             the new electric generating facility is equal to or
27             greater than $50,000,000 but less than
28             $75,000,000, then the abatement may not exceed (i)
29             over the entire term of the abatement, 10% of the
30             taxing district's aggregate taxes from the new
31             electric generating facility and (ii) in any one
32             year of abatement, 35% of the taxing district's
33             taxes from the new electric generating facility;
34                 (iii) if the equalized assessed valuation of
35             the new electric generating facility is equal to or
36             greater than $75,000,000 but less than

 

 

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1             $100,000,000, then the abatement may not exceed
2             (i) over the entire term of the abatement, 20% of
3             the taxing district's aggregate taxes from the new
4             electric generating facility and (ii) in any one
5             year of abatement, 50% of the taxing district's
6             taxes from the new electric generating facility;
7                 (iv) if the equalized assessed valuation of
8             the new electric generating facility is equal to or
9             greater than $100,000,000 but less than
10             $125,000,000, then the abatement may not exceed
11             (i) over the entire term of the abatement, 30% of
12             the taxing district's aggregate taxes from the new
13             electric generating facility and (ii) in any one
14             year of abatement, 60% of the taxing district's
15             taxes from the new electric generating facility;
16                 (v) if the equalized assessed valuation of the
17             new electric generating facility is equal to or
18             greater than $125,000,000 but less than
19             $150,000,000, then the abatement may not exceed
20             (i) over the entire term of the abatement, 40% of
21             the taxing district's aggregate taxes from the new
22             electric generating facility and (ii) in any one
23             year of abatement, 60% of the taxing district's
24             taxes from the new electric generating facility;
25                 (vi) if the equalized assessed valuation of
26             the new electric generating facility is equal to or
27             greater than $150,000,000, then the abatement may
28             not exceed (i) over the entire term of the
29             abatement, 50% of the taxing district's aggregate
30             taxes from the new electric generating facility
31             and (ii) in any one year of abatement, 60% of the
32             taxing district's taxes from the new electric
33             generating facility.
34             The abatement is not effective unless the owner of
35         the new electric generating facility agrees to repay to
36         the taxing district all amounts previously abated,

 

 

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1         together with interest computed at the rate and in the
2         manner provided for delinquent taxes, in the event that
3         the owner of the new electric generating facility
4         closes the new electric generating facility before the
5         expiration of the entire term of the abatement.
6             The authorization of taxing districts to abate
7         taxes under this subdivision (a)(1)(A-5) expires on
8         January 1, 2010.
9             (B) The property of any commercial or industrial
10         development of at least 500 acres having been created
11         within the taxing district. The abatement shall not
12         exceed a period of 20 years and the aggregate amount of
13         abated taxes for all taxing districts combined shall
14         not exceed $12,000,000. For the commercial or
15         industrial development, however, of at least 500 acres
16         on undeveloped land that was transferred by the
17         Secretary of the Army pursuant to the federal Illinois
18         Land Conservation Act and that is owned by the Joliet
19         Arsenal Development Authority or undeveloped land
20         subsequently acquired by the Joliet Arsenal
21         Development Authority, the abatement may not exceed a
22         period of 20 years and the aggregate amount of the
23         abated taxes for all taxing districts combined may not
24         exceed $38,000,000.
25             (C) The property of any commercial or industrial
26         firm currently located in the taxing district that
27         expands a facility or its number of employees. The
28         abatement shall not exceed a period of 10 years and the
29         aggregate amount of abated taxes for all taxing
30         districts combined shall not exceed $4,000,000. The
31         abatement period may be renewed at the option of the
32         taxing districts.
33         (2) Horse racing. Any property in the taxing district
34     which is used for the racing of horses and upon which
35     capital improvements consisting of expansion, improvement
36     or replacement of existing facilities have been made since

 

 

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1     July 1, 1987. The combined abatements for such property
2     from all taxing districts in any county shall not exceed
3     $5,000,000 annually and shall not exceed a period of 10
4     years.
5         (3) Auto racing. Any property designed exclusively for
6     the racing of motor vehicles. Such abatement shall not
7     exceed a period of 10 years.
8         (4) Academic or research institute. The property of any
9     academic or research institute in the taxing district that
10     (i) is an exempt organization under paragraph (3) of
11     Section 501(c) of the Internal Revenue Code, (ii) operates
12     for the benefit of the public by actually and exclusively
13     performing scientific research and making the results of
14     the research available to the interested public on a
15     non-discriminatory basis, and (iii) employs more than 100
16     employees. An abatement granted under this paragraph shall
17     be for at least 15 years and the aggregate amount of abated
18     taxes for all taxing districts combined shall not exceed
19     $5,000,000.
20         (5) Housing for older persons. Any property in the
21     taxing district that is devoted exclusively to affordable
22     housing for older households. For purposes of this
23     paragraph, "older households" means those households (i)
24     living in housing provided under any State or federal
25     program that the Department of Human Rights determines is
26     specifically designed and operated to assist elderly
27     persons and is solely occupied by persons 55 years of age
28     or older and (ii) whose annual income does not exceed 80%
29     of the area gross median income, adjusted for family size,
30     as such gross income and median income are determined from
31     time to time by the United States Department of Housing and
32     Urban Development. The abatement shall not exceed a period
33     of 15 years, and the aggregate amount of abated taxes for
34     all taxing districts shall not exceed $3,000,000.
35         (6) Historical society. For assessment years 1998
36     through 2008, the property of an historical society

 

 

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1     qualifying as an exempt organization under Section
2     501(c)(3) of the federal Internal Revenue Code.
3         (7) Recreational facilities. Any property in the
4     taxing district (i) that is used for a municipal airport,
5     (ii) that is subject to a leasehold assessment under
6     Section 9-195 of this Code and (iii) which is sublet from a
7     park district that is leasing the property from a
8     municipality, but only if the property is used exclusively
9     for recreational facilities or for parking lots used
10     exclusively for those facilities. The abatement shall not
11     exceed a period of 10 years.
12         (8) Relocated corporate headquarters. If approval
13     occurs within 5 years after the effective date of this
14     amendatory Act of the 92nd General Assembly, any property
15     or a portion of any property in a taxing district that is
16     used by an eligible business for a corporate headquarters
17     as defined in the Corporate Headquarters Relocation Act.
18     Instead of an abatement under this paragraph (8), a taxing
19     district may enter into an agreement with an eligible
20     business to make annual payments to that eligible business
21     in an amount not to exceed the property taxes paid directly
22     or indirectly by that eligible business to the taxing
23     district and any other taxing districts for premises
24     occupied pursuant to a written lease and may make those
25     payments without the need for an annual appropriation. No
26     school district, however, may enter into an agreement with,
27     or abate taxes for, an eligible business unless the
28     municipality in which the corporate headquarters is
29     located agrees to provide funding to the school district in
30     an amount equal to the amount abated or paid by the school
31     district as provided in this paragraph (8). Any abatement
32     ordered or agreement entered into under this paragraph (8)
33     may be effective for the entire term specified by the
34     taxing district, except the term of the abatement or annual
35     payments may not exceed 20 years.
36     (b) Upon a majority vote of its governing authority, any

 

 

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1 municipality may, after the determination of the assessed
2 valuation of its property, order the county clerk to abate any
3 portion of its taxes on any property that is located within the
4 corporate limits of the municipality in accordance with Section
5 8-3-18 of the Illinois Municipal Code.
6 (Source: P.A. 92-12, eff. 7-1-01; 92-207, eff. 8-1-01; 92-247,
7 eff. 8-3-01; 92-651, eff. 7-11-02; 93-270, eff. 7-22-03;
8 revised 12-6-03.)
 
9     Section 99. Effective date. This Act takes effect upon
10 becoming law.