97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3153

 

Introduced 2/1/2012, by Sen. Chris Lauzen

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 10/5-15

    Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that, for all Agreements entered into on or after the effective date of the amendatory Act, and all modifications to or restructuring of Agreements occurring on or after the effective date of the amendatory Act, the total amount of the Credit used by any Taxpayer shall not exceed $500,000 for any taxable year, including any amount carried forward from a prior taxable year. Effective immediately.


LRB097 19680 HLH 64936 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3153LRB097 19680 HLH 64936 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Economic Development for a Growing Economy
5Tax Credit Act is amended by changing Section 5-15 as follows:
 
6    (35 ILCS 10/5-15)
7    (Text of Section before amendment by P.A. 97-636)
8    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
9forth in this Act, a Taxpayer is entitled to a Credit against
10or, as described in subsection (g) of this Section, a payment
11towards taxes imposed pursuant to subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act that may be imposed
13on the Taxpayer for a taxable year beginning on or after
14January 1, 1999, if the Taxpayer is awarded a Credit by the
15Department under this Act for that taxable year.
16    (a) The Department shall make Credit awards under this Act
17to foster job creation and retention in Illinois.
18    (b) A person that proposes a project to create new jobs in
19Illinois must enter into an Agreement with the Department for
20the Credit under this Act.
21    (c) The Credit shall be claimed for the taxable years
22specified in the Agreement.
23    (d) The Credit shall not exceed the Incremental Income Tax

 

 

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1attributable to the project that is the subject of the
2Agreement.
3    (d-5) For all Agreements entered into on or after the
4effective date of this amendatory Act of the 97th General
5Assembly, and all modifications to or restructuring of
6Agreements occurring on or after the effective date of this
7amendatory Act of the 97th General Assembly, the total amount
8of the Credit used by any Taxpayer shall not exceed $500,000
9for any taxable year, including any amount carried forward from
10a prior taxable year.
11    (e) Nothing herein shall prohibit a Tax Credit Award to an
12Applicant that uses a PEO if all other award criteria are
13satisfied.
14    (f) In lieu of the Credit allowed under this Act against
15the taxes imposed pursuant to subsections (a) and (b) of
16Section 201 of the Illinois Income Tax Act for any taxable year
17ending on or after December 31, 2009, the Taxpayer may elect to
18claim the Credit against its obligation to pay over withholding
19under Section 704A of the Illinois Income Tax Act.
20        (1) The election under this subsection (f) may be made
21    only by a Taxpayer that (i) is primarily engaged in one of
22    the following business activities: water purification and
23    treatment, motor vehicle metal stamping, automobile
24    manufacturing, automobile and light duty motor vehicle
25    manufacturing, motor vehicle manufacturing, light truck
26    and utility vehicle manufacturing, heavy duty truck

 

 

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1    manufacturing, motor vehicle body manufacturing, cable
2    television infrastructure design or manufacturing, or
3    wireless telecommunication or computing terminal device
4    design or manufacturing for use on public networks and (ii)
5    meets the following criteria:
6            (A) the Taxpayer (i) had an Illinois net loss or an
7        Illinois net loss deduction under Section 207 of the
8        Illinois Income Tax Act for the taxable year in which
9        the Credit is awarded, (ii) employed a minimum of 1,000
10        full-time employees in this State during the taxable
11        year in which the Credit is awarded, (iii) has an
12        Agreement under this Act on December 14, 2009 (the
13        effective date of Public Act 96-834), and (iv) is in
14        compliance with all provisions of that Agreement;
15            (B) the Taxpayer (i) had an Illinois net loss or an
16        Illinois net loss deduction under Section 207 of the
17        Illinois Income Tax Act for the taxable year in which
18        the Credit is awarded, (ii) employed a minimum of 1,000
19        full-time employees in this State during the taxable
20        year in which the Credit is awarded, and (iii) has
21        applied for an Agreement within 365 days after December
22        14, 2009 (the effective date of Public Act 96-834);
23            (C) the Taxpayer (i) had an Illinois net operating
24        loss carryforward under Section 207 of the Illinois
25        Income Tax Act in a taxable year ending during calendar
26        year 2008, (ii) has applied for an Agreement within 150

 

 

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1        days after the effective date of this amendatory Act of
2        the 96th General Assembly, (iii) creates at least 400
3        new jobs in Illinois, (iv) retains at least 2,000 jobs
4        in Illinois that would have been at risk of relocation
5        out of Illinois over a 10-year period, and (v) makes a
6        capital investment of at least $75,000,000;
7            (D) the Taxpayer (i) had an Illinois net operating
8        loss carryforward under Section 207 of the Illinois
9        Income Tax Act in a taxable year ending during calendar
10        year 2009, (ii) has applied for an Agreement within 150
11        days after the effective date of this amendatory Act of
12        the 96th General Assembly, (iii) creates at least 150
13        new jobs, (iv) retains at least 1,000 jobs in Illinois
14        that would have been at risk of relocation out of
15        Illinois over a 10-year period, and (v) makes a capital
16        investment of at least $57,000,000; or
17            (E) the Taxpayer (i) employed at least 2,500
18        full-time employees in the State during the year in
19        which the Credit is awarded, (ii) commits to make at
20        least $500,000,000 in combined capital improvements
21        and project costs under the Agreement, (iii) applies
22        for an Agreement between January 1, 2011 and June 30,
23        2011, (iv) executes an Agreement for the Credit during
24        calendar year 2011, and (v) was incorporated no more
25        than 5 years before the filing of an application for an
26        Agreement.

 

 

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1        (1.5) The election under this subsection (f) may also
2    be made by a Taxpayer for any Credit awarded pursuant to an
3    agreement that was executed between January 1, 2011 and
4    June 30, 2011, if the Taxpayer (i) is primarily engaged in
5    the manufacture of inner tubes or tires, or both, from
6    natural and synthetic rubber, (ii) employs a minimum of
7    2,400 full-time employees in Illinois at the time of
8    application, (iii) creates at least 350 full-time jobs and
9    retains at least 250 full-time jobs in Illinois that would
10    have been at risk of being created or retained outside of
11    Illinois, and (iv) makes a capital investment of at least
12    $200,000,000 at the project location.
13        (2) An election under this subsection shall allow the
14    credit to be taken against payments otherwise due under
15    Section 704A of the Illinois Income Tax Act during the
16    first calendar year beginning after the end of the taxable
17    year in which the credit is awarded under this Act.
18        (3) The election shall be made in the form and manner
19    required by the Illinois Department of Revenue and, once
20    made, shall be irrevocable.
21        (4) If a Taxpayer who meets the requirements of
22    subparagraph (A) of paragraph (1) of this subsection (f)
23    elects to claim the Credit against its withholdings as
24    provided in this subsection (f), then, on and after the
25    date of the election, the terms of the Agreement between
26    the Taxpayer and the Department may not be further amended

 

 

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1    during the term of the Agreement.
2    (g) A pass-through entity that has been awarded a credit
3under this Act, its shareholders, or its partners may treat
4some or all of the credit awarded pursuant to this Act as a tax
5payment for purposes of the Illinois Income Tax Act. The term
6"tax payment" means a payment as described in Article 6 or
7Article 8 of the Illinois Income Tax Act or a composite payment
8made by a pass-through entity on behalf of any of its
9shareholders or partners to satisfy such shareholders' or
10partners' taxes imposed pursuant to subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act. In no event shall
12the amount of the award credited pursuant to this Act exceed
13the Illinois income tax liability of the pass-through entity or
14its shareholders or partners for the taxable year.
15(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
1696-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
173-4-11; 97-2, eff. 5-6-11.)
 
18    (Text of Section after amendment by P.A. 97-636)
19    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
20forth in this Act, a Taxpayer is entitled to a Credit against
21or, as described in subsection (g) of this Section, a payment
22towards taxes imposed pursuant to subsections (a) and (b) of
23Section 201 of the Illinois Income Tax Act that may be imposed
24on the Taxpayer for a taxable year beginning on or after
25January 1, 1999, if the Taxpayer is awarded a Credit by the

 

 

SB3153- 7 -LRB097 19680 HLH 64936 b

1Department under this Act for that taxable year.
2    (a) The Department shall make Credit awards under this Act
3to foster job creation and retention in Illinois.
4    (b) A person that proposes a project to create new jobs in
5Illinois must enter into an Agreement with the Department for
6the Credit under this Act.
7    (c) The Credit shall be claimed for the taxable years
8specified in the Agreement.
9    (d) The Credit shall not exceed the Incremental Income Tax
10attributable to the project that is the subject of the
11Agreement.
12    (d-5) For all Agreements entered into on or after the
13effective date of this amendatory Act of the 97th General
14Assembly, and all modifications to or restructuring of
15Agreements occurring on or after the effective date of this
16amendatory Act of the 97th General Assembly, the total amount
17of the Credit used by any Taxpayer shall not exceed $500,000
18for any taxable year, including any amount carried forward from
19a prior taxable year.
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
26ending on or after December 31, 2009, the Taxpayer may elect to

 

 

SB3153- 8 -LRB097 19680 HLH 64936 b

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

 

 

SB3153- 9 -LRB097 19680 HLH 64936 b

1        the Credit is awarded, (ii) employed a minimum of 1,000
2        full-time employees in this State during the taxable
3        year in which the Credit is awarded, and (iii) has
4        applied for an Agreement within 365 days after December
5        14, 2009 (the effective date of Public Act 96-834);
6            (C) the Taxpayer (i) had an Illinois net operating
7        loss carryforward under Section 207 of the Illinois
8        Income Tax Act in a taxable year ending during calendar
9        year 2008, (ii) has applied for an Agreement within 150
10        days after the effective date of this amendatory Act of
11        the 96th General Assembly, (iii) creates at least 400
12        new jobs in Illinois, (iv) retains at least 2,000 jobs
13        in Illinois that would have been at risk of relocation
14        out of Illinois over a 10-year period, and (v) makes a
15        capital investment of at least $75,000,000;
16            (D) the Taxpayer (i) had an Illinois net operating
17        loss carryforward under Section 207 of the Illinois
18        Income Tax Act in a taxable year ending during calendar
19        year 2009, (ii) has applied for an Agreement within 150
20        days after the effective date of this amendatory Act of
21        the 96th General Assembly, (iii) creates at least 150
22        new jobs, (iv) retains at least 1,000 jobs in Illinois
23        that would have been at risk of relocation out of
24        Illinois over a 10-year period, and (v) makes a capital
25        investment of at least $57,000,000; or
26            (E) the Taxpayer (i) employed at least 2,500

 

 

SB3153- 10 -LRB097 19680 HLH 64936 b

1        full-time employees in the State during the year in
2        which the Credit is awarded, (ii) commits to make at
3        least $500,000,000 in combined capital improvements
4        and project costs under the Agreement, (iii) applies
5        for an Agreement between January 1, 2011 and June 30,
6        2011, (iv) executes an Agreement for the Credit during
7        calendar year 2011, and (v) was incorporated no more
8        than 5 years before the filing of an application for an
9        Agreement.
10        (1.5) The election under this subsection (f) may also
11    be made by a Taxpayer for any Credit awarded pursuant to an
12    agreement that was executed between January 1, 2011 and
13    June 30, 2011, if the Taxpayer (i) is primarily engaged in
14    the manufacture of inner tubes or tires, or both, from
15    natural and synthetic rubber, (ii) employs a minimum of
16    2,400 full-time employees in Illinois at the time of
17    application, (iii) creates at least 350 full-time jobs and
18    retains at least 250 full-time jobs in Illinois that would
19    have been at risk of being created or retained outside of
20    Illinois, and (iv) makes a capital investment of at least
21    $200,000,000 at the project location.
22        (1.6) The election under this subsection (f) may also
23    be made by a Taxpayer for any Credit awarded pursuant to an
24    agreement that was executed within 150 days after the
25    effective date of this amendatory Act of the 97th General
26    Assembly, if the Taxpayer (i) is primarily engaged in the

 

 

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

 

 

SB3153- 12 -LRB097 19680 HLH 64936 b

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

 

 

SB3153- 13 -LRB097 19680 HLH 64936 b

1(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
296-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
33-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
4    Section 95. No acceleration or delay. Where this Act makes
5changes in a statute that is represented in this Act by text
6that is not yet or no longer in effect (for example, a Section
7represented by multiple versions), the use of that text does
8not accelerate or delay the taking effect of (i) the changes
9made by this Act or (ii) provisions derived from any other
10Public Act.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.