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1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Department of Commerce and Economic
5 Opportunity Law of the Civil Administrative Code of Illinois is
6 amended by changing Section 605-332 as follows:
 
7     (20 ILCS 605/605-332)
8     Sec. 605-332. Financial assistance to energy generation
9 facilities.
10     (a) As used in this Section:
11     "New electric generating facility" means a
12 newly-constructed electric generation plant or a newly
13 constructed generation capacity expansion at an existing
14 facility, including the transmission lines and associated
15 equipment that transfers electricity from points of supply to
16 points of delivery, and for which foundation construction
17 commenced not sooner than July 1, 2001, which is designed to
18 provide baseload electric generation operating on a continuous
19 basis throughout the year and:
20         (1) has an aggregate rated generating capacity of at
21     least 400 megawatts for all new units at one site, uses
22     coal or gases derived from coal as its primary fuel source,
23     and supports the creation of at least 150 new Illinois coal
24     mining jobs; or
25         (2) is (i) funded through a federal Department of
26     Energy grant before July 1, 2006 and supports the creation
27     of Illinois coal-mining jobs; or 2005, and (ii)
28         (3) uses coal gasification or integrated
29     gasification-combined cycle units that generate
30     electricity or chemicals, or both, and that supports the
31     creation of Illinois coal-mining jobs.
32     "New gasification facility" means a newly constructed coal

 

 

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1 gasification facility that generates chemical feedstocks or
2 transportation fuels derived from coal (which may include, but
3 are not limited to, methane, methanol, and nitrogen
4 fertilizer), that supports the creation or retention of
5 Illinois coal-mining jobs, and that qualifies for financial
6 assistance from the Department before December 31, 2006. A new
7 gasification facility does not include a pilot project located
8 within Jefferson County or within a county adjacent to
9 Jefferson County for synthetic natural gas from coal.
10     "New facility" means a new electric generating facility or
11 a new gasification facility. A new facility does not include a
12 pilot project located within Jefferson County or within a
13 county adjacent to Jefferson County for synthetic natural gas
14 from coal.
15     "Eligible business" means an entity that proposes to
16 construct a new electric generating facility and that has
17 applied to the Department to receive financial assistance
18 pursuant to this Section. With respect to use and occupation
19 taxes, wherever there is a reference to taxes, that reference
20 means only those taxes paid on Illinois-mined coal used in a
21 new electric generating facility.
22     "Department" means the Illinois Department of Commerce and
23 Economic Opportunity.
24     (b) The Department is authorized to provide financial
25 assistance to eligible businesses for new electric generating
26 facilities from funds appropriated by the General Assembly as
27 further provided in this Section.
28     An eligible business seeking qualification for financial
29 assistance for a new electric generating facility, for purposes
30 of this Section only, shall apply to the Department in the
31 manner specified by the Department. Any projections provided by
32 an eligible business as part of the application shall be
33 independently verified in a manner as set forth by the
34 Department. An application shall include, but not be limited
35 to:
36         (1) the projected or actual completion date of the new

 

 

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1     electric generating facility for which financial
2     assistance is sought;
3         (2) copies of documentation deemed acceptable by the
4     Department establishing either (i) the total State
5     occupation and use taxes paid on Illinois-mined coal used
6     at the new electric generating facility for a minimum of 4
7     preceding calendar quarters or (ii) the projected amount of
8     State occupation and use taxes paid on Illinois-mined coal
9     used at the new electric generating facility in 4 calendar
10     year quarters after completion of the new electric
11     generating facility. Bond proceeds subject to this Section
12     shall not be allocated to an eligible business until the
13     eligible business has demonstrated the revenue stream
14     sufficient to service the debt on the bonds; and
15         (3) the actual or projected amount of capital
16     investment by the eligible business in the new electric
17     generating facility.
18     The Department shall determine the maximum amount of
19 financial assistance for eligible businesses in accordance
20 with this paragraph. The Department shall not provide financial
21 assistance from general obligation bond funds to any eligible
22 business unless it receives a written certification from the
23 Director of the Bureau of the Budget (now Governor's Office of
24 Management and Budget) that 80% of the State occupation and use
25 tax receipts for a minimum of the preceding 4 calendar quarters
26 for all eligible businesses or as included in projections on
27 approved applications by eligible businesses equal or exceed
28 110% of the maximum annual debt service required with respect
29 to general obligation bonds issued for that purpose. The
30 Department may provide financial assistance not to exceed the
31 amount of State general obligation debt calculated as above,
32 the amount of actual or projected capital investment in the
33 energy generation facility, or $100,000,000, whichever is
34 less. Financial assistance received pursuant to this Section
35 may be used for capital facilities consisting of buildings,
36 structures, durable equipment, and land at the new electric

 

 

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1 generating facility. Subject to the provisions of the agreement
2 covering the financial assistance, a portion of the financial
3 assistance may be required to be repaid to the State if certain
4 conditions for the governmental purpose of the assistance were
5 not met.
6     An eligible business shall file a monthly report with the
7 Illinois Department of Revenue stating the amount of
8 Illinois-mined coal purchased during the previous month for use
9 in the new electric generating facility, the purchase price of
10 that coal, the amount of State occupation and use taxes paid on
11 that purchase to the seller of the Illinois-mined coal, and
12 such other information as that Department may reasonably
13 require. In sales of Illinois-mined coal between related
14 parties, the purchase price of the coal must have been
15 determined in an arms-length transaction. The report shall be
16 filed with the Illinois Department of Revenue on or before the
17 20th day of each month on a form provided by that Department.
18 However, no report need be filed by an eligible business in a
19 month when it made no reportable purchases of coal in the
20 previous month. The Illinois Department of Revenue shall
21 provide a summary of such reports to the Governor's Office of
22 Management and Budget.
23     Upon granting financial assistance to an eligible
24 business, the Department shall certify the name of the eligible
25 business to the Illinois Department of Revenue. Beginning with
26 the receipt of the first report of State occupation and use
27 taxes paid by an eligible business and continuing for a 25-year
28 period, the Illinois Department of Revenue shall each month pay
29 into the Energy Infrastructure Fund 80% of the net revenue
30 realized from the 6.25% general rate on the selling price of
31 Illinois-mined coal that was sold to an eligible business.
32 (Source: P.A. 92-12, eff. 7-1-01; 93-167, eff. 7-10-03;
33 93-1064, eff. 1-13-05.)
 
34     Section 10. The Illinois Enterprise Zone Act is amended by
35 changing Section 5.5 as follows:
 

 

 

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1     (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
2     Sec. 5.5. High Impact Business.
3     (a) In order to respond to unique opportunities to assist
4 in the encouragement, development, growth and expansion of the
5 private sector through large scale investment and development
6 projects, the Department is authorized to receive and approve
7 applications for the designation of "High Impact Businesses" in
8 Illinois subject to the following conditions:
9         (1) such applications may be submitted at any time
10     during the year;
11         (2) such business is not located, at the time of
12     designation, in an enterprise zone designated pursuant to
13     this Act;
14         (3) the business intends to do one or more of the
15     following:
16             (A) the business intends to make a minimum
17         investment of $12,000,000 which will be placed in
18         service in qualified property and intends to create 500
19         full-time equivalent jobs at a designated location in
20         Illinois or intends to make a minimum investment of
21         $30,000,000 which will be placed in service in
22         qualified property and intends to retain 1,500
23         full-time jobs at a designated location in Illinois.
24         The business must certify in writing that the
25         investments would not be placed in service in qualified
26         property and the job creation or job retention would
27         not occur without the tax credits and exemptions set
28         forth in subsection (b) of this Section. The terms
29         "placed in service" and "qualified property" have the
30         same meanings as described in subsection (h) of Section
31         201 of the Illinois Income Tax Act; or
32             (B) the business intends to establish a new
33         electric generating facility at a designated location
34         in Illinois. "New electric generating facility", for
35         purposes of this Section, means a newly-constructed

 

 

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1         electric generation plant or a newly-constructed
2         generation capacity expansion at an existing electric
3         generation plant, including the transmission lines and
4         associated equipment that transfers electricity from
5         points of supply to points of delivery, and for which
6         such new foundation construction commenced not sooner
7         than July 1, 2001. Such facility shall be designed to
8         provide baseload electric generation and shall operate
9         on a continuous basis throughout the year; and (i)
10         shall have an aggregate rated generating capacity of at
11         least 1,000 megawatts for all new units at one site if
12         it uses natural gas as its primary fuel and foundation
13         construction of the facility is commenced on or before
14         December 31, 2004, or shall have an aggregate rated
15         generating capacity of at least 400 megawatts for all
16         new units at one site if it uses coal or gases derived
17         from coal as its primary fuel and shall support the
18         creation of at least 150 new Illinois coal mining jobs,
19         or, (ii) shall be is (i) funded through a federal
20         Department of Energy grant before July 1, 2006 and
21         shall support the creation of Illinois coal-mining
22         jobs, or (iii) shall use 2005, and (ii) uses coal
23         gasification or integrated gasification-combined cycle
24         units that generate electricity or chemicals, or both,
25         and shall support the creation of Illinois coal-mining
26         jobs. The business must certify in writing that the
27         investments necessary to establish a new electric
28         generating facility would not be placed in service and
29         the job creation in the case of a coal-fueled plant
30         would not occur without the tax credits and exemptions
31         set forth in subsection (b-5) of this Section. The term
32         "placed in service" has the same meaning as described
33         in subsection (h) of Section 201 of the Illinois Income
34         Tax Act; or
35             (B-5) the business intends to establish a new
36         gasification facility at a designated location in

 

 

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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, and
6         nitrogen fertilizer), that supports the creation or
7         retention of Illinois coal-mining jobs, and that
8         qualifies for financial assistance from the Department
9         before December 31, 2006. 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 150
20         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 business must certify in
25         writing that the investments necessary to establish a
26         new, expanded, or reopened coal mine would not be
27         placed in service and the job creation would not occur
28         without the tax credits and exemptions set forth in
29         subsection (b-5) of this Section. The term "placed in
30         service" has the same meaning as described in
31         subsection (h) of Section 201 of the Illinois Income
32         Tax Act; or
33             (D) the business intends to construct new
34         transmission facilities or upgrade existing
35         transmission facilities at designated locations in
36         Illinois, for which construction commenced not sooner

 

 

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1         than July 1, 2001. For the purposes of this Section,
2         "transmission facilities" means transmission lines
3         with a voltage rating of 115 kilovolts or above,
4         including associated equipment, that transfer
5         electricity from points of supply to points of delivery
6         and that transmit a majority of the electricity
7         generated by a new electric generating facility
8         designated as a High Impact Business in accordance with
9         this Section. The business must certify in writing that
10         the investments necessary to construct new
11         transmission facilities or upgrade existing
12         transmission facilities would not be placed in service
13         without the tax credits and exemptions set forth in
14         subsection (b-5) of this Section. The term "placed in
15         service" has the same meaning as described in
16         subsection (h) of Section 201 of the Illinois Income
17         Tax Act; and
18         (4) no later than 90 days after an application is
19     submitted, the Department shall notify the applicant of the
20     Department's determination of the qualification of the
21     proposed High Impact Business under this Section.
22     (b) Businesses designated as High Impact Businesses
23 pursuant to subdivision (a)(3)(A) of this Section shall qualify
24 for the credits and exemptions described in the following Acts:
25 Section 9-222 and Section 9-222.1A of the Public Utilities Act,
26 subsection (h) of Section 201 of the Illinois Income Tax Act,
27 and Section 1d of the Retailers' Occupation Tax Act; provided
28 that these credits and exemptions described in these Acts shall
29 not be authorized until the minimum investments set forth in
30 subdivision (a)(3)(A) of this Section have been placed in
31 service in qualified properties and, in the case of the
32 exemptions described in the Public Utilities Act and Section 1d
33 of the Retailers' Occupation Tax Act, the minimum full-time
34 equivalent jobs or full-time jobs set forth in subdivision
35 (a)(3)(A) of this Section have been created or retained.
36 Businesses designated as High Impact Businesses under this

 

 

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1 Section shall also qualify for the exemption described in
2 Section 5l of the Retailers' Occupation Tax Act. The credit
3 provided in subsection (h) of Section 201 of the Illinois
4 Income Tax Act shall be applicable to investments in qualified
5 property as set forth in subdivision (a)(3)(A) of this Section.
6     (b-5) Businesses designated as High Impact Businesses
7 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
8 and (a)(3)(D) of this Section shall qualify for the credits and
9 exemptions described in the following Acts: Section 51 of the
10 Retailers' Occupation Tax Act, Section 9-222 and Section
11 9-222.1A of the Public Utilities Act, and subsection (h) of
12 Section 201 of the Illinois Income Tax Act; however, the
13 credits and exemptions authorized under Section 9-222 and
14 Section 9-222.1A of the Public Utilities Act, and subsection
15 (h) of Section 201 of the Illinois Income Tax Act shall not be
16 authorized until the new electric generating facility, the new
17 gasification facility, the new transmission facility, or the
18 new, expanded, or reopened coal mine is operational, except
19 that a new electric generating facility whose primary fuel
20 source is natural gas is eligible only for the exemption under
21 Section 5l of the Retailers' Occupation Tax Act.
22     (c) High Impact Businesses located in federally designated
23 foreign trade zones or sub-zones are also eligible for
24 additional credits, exemptions and deductions as described in
25 the following Acts: Section 9-221 and Section 9-222.1 of the
26 Public Utilities Act; and subsection (g) of Section 201, and
27 Section 203 of the Illinois Income Tax Act.
28     (d) Existing Illinois businesses which apply for
29 designation as a High Impact Business must provide the
30 Department with the prospective plan for which 1,500 full-time
31 jobs would be eliminated in the event that the business is not
32 designated.
33     (e) New proposed facilities which apply for designation as
34 High Impact Business must provide the Department with proof of
35 alternative non-Illinois sites which would receive the
36 proposed investment and job creation in the event that the

 

 

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1 business is not designated as a High Impact Business.
2     (f) In the event that a business is designated a High
3 Impact Business and it is later determined after reasonable
4 notice and an opportunity for a hearing as provided under the
5 Illinois Administrative Procedure Act, that the business would
6 have placed in service in qualified property the investments
7 and created or retained the requisite number of jobs without
8 the benefits of the High Impact Business designation, the
9 Department shall be required to immediately revoke the
10 designation and notify the Director of the Department of
11 Revenue who shall begin proceedings to recover all wrongfully
12 exempted State taxes with interest. The business shall also be
13 ineligible for all State funded Department programs for a
14 period of 10 years.
15     (g) The Department shall revoke a High Impact Business
16 designation if the participating business fails to comply with
17 the terms and conditions of the designation.
18     (h) Prior to designating a business, the Department shall
19 provide the members of the General Assembly and Commission on
20 Government Forecasting and Accountability with a report
21 setting forth the terms and conditions of the designation and
22 guarantees that have been received by the Department in
23 relation to the proposed business being designated.
24 (Source: P.A. 92-12, eff. 7-1-01; 93-1064, eff. 1-13-05;
25 93-1067, eff. 1-15-05; revised 1-25-05.)
 
26     Section 99. Effective date. This Act takes effect upon
27 becoming law.