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Full Text of HB4820  101st General Assembly

HB4820 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4820

 

Introduced 2/18/2020, by Rep. Tom Demmer

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/5.5  from Ch. 67 1/2, par. 609.1

    Amends the Illinois Enterprise Zone Act. Provides that a business may be considered a high impact business if the business intends to establish a new commercial solar power facility at a designated location in Illinois. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4820LRB101 18214 HLH 67656 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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 the
10private sector through large scale investment and development
11projects, the Department is authorized to receive and approve
12applications for the designation of "High Impact Businesses" in
13Illinois subject to the following conditions:
14        (1) such applications may be submitted at any time
15    during the year;
16        (2) such business is not located, at the time of
17    designation, in an enterprise zone designated pursuant to
18    this Act;
19        (3) the business intends to do one or more of the
20    following:
21            (A) the business intends to make a minimum
22        investment of $12,000,000 which will be placed in
23        service in qualified property and intends to create 500

 

 

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1        full-time equivalent jobs at a designated location in
2        Illinois or intends to make a minimum investment of
3        $30,000,000 which will be placed in service in
4        qualified property and intends to retain 1,500
5        full-time retained jobs at a designated location in
6        Illinois. The business must certify in writing that the
7        investments would not be placed in service in qualified
8        property and the job creation or job retention would
9        not occur without the tax credits and exemptions set
10        forth in subsection (b) of this Section. The terms
11        "placed in service" and "qualified property" have the
12        same meanings as described in subsection (h) of Section
13        201 of the Illinois Income Tax Act; or
14            (B) the business intends to establish a new
15        electric generating facility at a designated location
16        in Illinois. "New electric generating facility", for
17        purposes of this Section, means a newly-constructed
18        electric generation plant or a newly-constructed
19        generation capacity expansion at an existing electric
20        generation plant, including the transmission lines and
21        associated equipment that transfers electricity from
22        points of supply to points of delivery, and for which
23        such new foundation construction commenced not sooner
24        than July 1, 2001. Such facility shall be designed to
25        provide baseload electric generation and shall operate
26        on a continuous basis throughout the year; and (i)

 

 

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1        shall have an aggregate rated generating capacity of at
2        least 1,000 megawatts for all new units at one site if
3        it uses natural gas as its primary fuel and foundation
4        construction of the facility is commenced on or before
5        December 31, 2004, or shall have an aggregate rated
6        generating capacity of at least 400 megawatts for all
7        new units at one site if it uses coal or gases derived
8        from coal as its primary fuel and shall support the
9        creation of at least 150 new Illinois coal mining jobs,
10        or (ii) shall be funded through a federal Department of
11        Energy grant before December 31, 2010 and shall support
12        the creation of Illinois coal-mining jobs, or (iii)
13        shall use coal gasification or integrated
14        gasification-combined cycle units that generate
15        electricity or chemicals, or both, and shall support
16        the creation of Illinois coal-mining jobs. The
17        business must certify in writing that the investments
18        necessary to establish a new electric generating
19        facility would not be placed in service and the job
20        creation in the case of a coal-fueled plant would not
21        occur without the tax credits and exemptions set forth
22        in subsection (b-5) of this Section. The term "placed
23        in service" has the same meaning as described in
24        subsection (h) of Section 201 of the Illinois Income
25        Tax Act; or
26            (B-5) the business intends to establish a new

 

 

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

 

 

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1        new, expanded, or reopened coal mine would not be
2        placed in service and the job creation would not occur
3        without the tax credits and exemptions set forth in
4        subsection (b-5) of this Section. The term "placed in
5        service" has the same meaning as described in
6        subsection (h) of Section 201 of the Illinois Income
7        Tax Act; or
8            (D) the business intends to construct new
9        transmission facilities or upgrade existing
10        transmission facilities at designated locations in
11        Illinois, for which construction commenced not sooner
12        than July 1, 2001. For the purposes of this Section,
13        "transmission facilities" means transmission lines
14        with a voltage rating of 115 kilovolts or above,
15        including associated equipment, that transfer
16        electricity from points of supply to points of delivery
17        and that transmit a majority of the electricity
18        generated by a new electric generating facility
19        designated as a High Impact Business in accordance with
20        this Section. The business must certify in writing that
21        the investments necessary to construct new
22        transmission facilities or upgrade existing
23        transmission facilities would not be placed in service
24        without the tax credits and exemptions set forth in
25        subsection (b-5) of this Section. The term "placed in
26        service" has the same meaning as described in

 

 

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1        subsection (h) of Section 201 of the Illinois Income
2        Tax Act; or
3            (E) the business intends to establish a new wind
4        power facility at a designated location in Illinois.
5        For purposes of this Section, "new wind power facility"
6        means a newly constructed electric generation
7        facility, or a newly constructed expansion of an
8        existing electric generation facility, placed in
9        service on or after July 1, 2009, that generates
10        electricity using wind energy devices, and such
11        facility shall be deemed to include all associated
12        transmission lines, substations, and other equipment
13        related to the generation of electricity from wind
14        energy devices. For purposes of this Section, "wind
15        energy device" means any device, with a nameplate
16        capacity of at least 0.5 megawatts, that is used in the
17        process of converting kinetic energy from the wind to
18        generate electricity; or
19            (F) the business commits to (i) make a minimum
20        investment of $500,000,000, which will be placed in
21        service in a qualified property, (ii) create 125
22        full-time equivalent jobs at a designated location in
23        Illinois, (iii) establish a fertilizer plant at a
24        designated location in Illinois that complies with the
25        set-back standards as described in Table 1: Initial
26        Isolation and Protective Action Distances in the 2012

 

 

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1        Emergency Response Guidebook published by the United
2        States Department of Transportation, (iv) pay a
3        prevailing wage for employees at that location who are
4        engaged in construction activities, and (v) secure an
5        appropriate level of general liability insurance to
6        protect against catastrophic failure of the fertilizer
7        plant or any of its constituent systems; in addition,
8        the business must agree to enter into a construction
9        project labor agreement including provisions
10        establishing wages, benefits, and other compensation
11        for employees performing work under the project labor
12        agreement at that location; for the purposes of this
13        Section, "fertilizer plant" means a newly constructed
14        or upgraded plant utilizing gas used in the production
15        of anhydrous ammonia and downstream nitrogen
16        fertilizer products for resale; for the purposes of
17        this Section, "prevailing wage" means the hourly cash
18        wages plus fringe benefits for training and
19        apprenticeship programs approved by the U.S.
20        Department of Labor, Bureau of Apprenticeship and
21        Training, health and welfare, insurance, vacations and
22        pensions paid generally, in the locality in which the
23        work is being performed, to employees engaged in work
24        of a similar character on public works; this paragraph
25        (F) applies only to businesses that submit an
26        application to the Department within 60 days after July

 

 

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1        25, 2013 (the effective date of Public Act 98-109) this
2        amendatory Act of the 98th General Assembly; or and
3            (G) the business intends to establish a new
4        commercial solar power facility at a designated
5        location in Illinois; for purposes of this Section,
6        "new commercial solar power facility" means a newly
7        constructed electric generation facility or a newly
8        constructed expansion of an existing electric
9        generation facility placed in service on or after July
10        1, 2020 that generates electricity using commercial
11        solar energy systems; such facility shall be deemed to
12        include all associated transmission lines,
13        substations, and other equipment related to the
14        generation of electricity from commercial solar energy
15        devices; for the purposes of this Section, "commercial
16        solar energy device" means any device or assembly of
17        devices that (i) is ground-installed, (ii) uses solar
18        energy from the sun for generating electricity, and
19        (iii) has a nameplate capacity of at least 2 megawatts;
20        and
21        (4) no later than 90 days after an application is
22    submitted, the Department shall notify the applicant of the
23    Department's determination of the qualification of the
24    proposed High Impact Business under this Section.
25    (b) Businesses designated as High Impact Businesses
26pursuant to subdivision (a)(3)(A) of this Section shall qualify

 

 

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1for the credits and exemptions described in the following Acts:
2Section 9-222 and Section 9-222.1A of the Public Utilities Act,
3subsection (h) of Section 201 of the Illinois Income Tax Act,
4and Section 1d of the Retailers' Occupation Tax Act; provided
5that these credits and exemptions described in these Acts shall
6not be authorized until the minimum investments set forth in
7subdivision (a)(3)(A) of this Section have been placed in
8service in qualified properties and, in the case of the
9exemptions described in the Public Utilities Act and Section 1d
10of the Retailers' Occupation Tax Act, the minimum full-time
11equivalent jobs or full-time retained jobs set forth in
12subdivision (a)(3)(A) of this Section have been created or
13retained. Businesses designated as High Impact Businesses
14under this Section shall also qualify for the exemption
15described in Section 5l of the Retailers' Occupation Tax Act.
16The credit provided in subsection (h) of Section 201 of the
17Illinois Income Tax Act shall be applicable to investments in
18qualified property as set forth in subdivision (a)(3)(A) of
19this Section.
20    (b-5) Businesses designated as High Impact Businesses
21pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
22and (a)(3)(D) of this Section shall qualify for the credits and
23exemptions described in the following Acts: Section 51 of the
24Retailers' Occupation Tax Act, Section 9-222 and Section
259-222.1A of the Public Utilities Act, and subsection (h) of
26Section 201 of the Illinois Income Tax Act; however, the

 

 

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1credits and exemptions authorized under Section 9-222 and
2Section 9-222.1A of the Public Utilities Act, and subsection
3(h) of Section 201 of the Illinois Income Tax Act shall not be
4authorized until the new electric generating facility, the new
5gasification facility, the new transmission facility, or the
6new, expanded, or reopened coal mine is operational, except
7that a new electric generating facility whose primary fuel
8source is natural gas is eligible only for the exemption under
9Section 5l of the Retailers' Occupation Tax Act.
10    (b-6) Businesses designated as High Impact Businesses
11pursuant to subdivision (a)(3)(E) of this Section shall qualify
12for the exemptions described in Section 5l of the Retailers'
13Occupation Tax Act; any business so designated as a High Impact
14Business being, for purposes of this Section, a "Wind Energy
15Business".
16    (b-7) Beginning on January 1, 2021, businesses designated
17as High Impact Businesses by the Department shall qualify for
18the High Impact Business construction jobs credit under
19subsection (h-5) of Section 201 of the Illinois Income Tax Act
20if the business meets the criteria set forth in subsection (i)
21of this Section. The total aggregate amount of credits awarded
22under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
23this amendatory Act of the 101st General Assembly) shall not
24exceed $20,000,000 in any State fiscal year.
25    (b-8) Businesses designated as High Impact Businesses
26pursuant to subdivision (a)(3)(G) shall qualify for the

 

 

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1exemptions described in Section 5l of the Retailers' Occupation
2Tax Act.
3    (c) High Impact Businesses located in federally designated
4foreign trade zones or sub-zones are also eligible for
5additional credits, exemptions and deductions as described in
6the following Acts: Section 9-221 and Section 9-222.1 of the
7Public Utilities Act; and subsection (g) of Section 201, and
8Section 203 of the Illinois Income Tax Act.
9    (d) Except for businesses contemplated under subdivision
10(a)(3)(E) of this Section, existing Illinois businesses which
11apply for designation as a High Impact Business must provide
12the Department with the prospective plan for which 1,500
13full-time retained jobs would be eliminated in the event that
14the business is not designated.
15    (e) Except for new wind power facilities contemplated under
16subdivision (a)(3)(E) and new commercial solar power
17facilities contemplated under subdivision (a)(3)(G) of this
18Section, new proposed facilities which apply for designation as
19High Impact Business must provide the Department with proof of
20alternative non-Illinois sites which would receive the
21proposed investment and job creation in the event that the
22business is not designated as a High Impact Business.
23    (f) Except for businesses contemplated under subdivision
24(a)(3)(E) and (a)(3)(G) of this Section, in the event that a
25business is designated a High Impact Business and it is later
26determined after reasonable notice and an opportunity for a

 

 

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1hearing as provided under the Illinois Administrative
2Procedure Act, that the business would have placed in service
3in qualified property the investments and created or retained
4the requisite number of jobs without the benefits of the High
5Impact Business designation, the Department shall be required
6to immediately revoke the designation and notify the Director
7of the Department of Revenue who shall begin proceedings to
8recover all wrongfully exempted State taxes with interest. The
9business shall also be ineligible for all State funded
10Department programs for a period of 10 years.
11    (g) The Department shall revoke a High Impact Business
12designation if the participating business fails to comply with
13the terms and conditions of the designation. However, the
14penalties for new wind power facilities, or Wind Energy
15Businesses, or new commercial solar power facilities for
16failure to comply with any of the terms or conditions of the
17Illinois Prevailing Wage Act shall be only those penalties
18identified in the Illinois Prevailing Wage Act, and the
19Department shall not revoke a High Impact Business designation
20as a result of the failure to comply with any of the terms or
21conditions of the Illinois Prevailing Wage Act in relation to a
22new wind power facility, or a Wind Energy Business, or a
23commercial solar power facility.
24    (h) Prior to designating a business, the Department shall
25provide the members of the General Assembly and Commission on
26Government Forecasting and Accountability with a report

 

 

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1setting forth the terms and conditions of the designation and
2guarantees that have been received by the Department in
3relation to the proposed business being designated.
4    (i) High Impact Business construction jobs credit.
5Beginning on January 1, 2021, a High Impact Business may
6receive a tax credit against the tax imposed under subsections
7(a) and (b) of Section 201 of the Illinois Income Tax Act in an
8amount equal to 50% of the amount of the incremental income tax
9attributable to High Impact Business construction jobs credit
10employees employed in the course of completing a High Impact
11Business construction jobs project. However, the High Impact
12Business construction jobs credit may equal 75% of the amount
13of the incremental income tax attributable to High Impact
14Business construction jobs credit employees if the High Impact
15Business construction jobs credit project is located in an
16underserved area.
17    The Department shall certify to the Department of Revenue:
18(1) the identity of taxpayers that are eligible for the High
19Impact Business construction jobs credit; and (2) the amount of
20High Impact Business construction jobs credits that are claimed
21pursuant to subsection (h-5) of Section 201 of the Illinois
22Income Tax Act in each taxable year. Any business entity that
23receives a High Impact Business construction jobs credit shall
24maintain a certified payroll pursuant to subsection (j) of this
25Section.
26    As used in this subsection (i):

 

 

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1    "High Impact Business construction jobs credit" means an
2amount equal to 50% (or 75% if the High Impact Business
3construction project is located in an underserved area) of the
4incremental income tax attributable to High Impact Business
5construction job employees. The total aggregate amount of
6credits awarded under the Blue Collar Jobs Act (Article 20 of
7Public Act 101-9 this amendatory Act of the 101st General
8Assembly) shall not exceed $20,000,000 in any State fiscal year
9    "High Impact Business construction job employee" means a
10laborer or worker who is employed by an Illinois contractor or
11subcontractor in the actual construction work on the site of a
12High Impact Business construction job project.
13    "High Impact Business construction jobs project" means
14building a structure or building or making improvements of any
15kind to real property, undertaken and commissioned by a
16business that was designated as a High Impact Business by the
17Department. The term "High Impact Business construction jobs
18project" does not include the routine operation, routine
19repair, or routine maintenance of existing structures,
20buildings, or real property.
21    "Incremental income tax" means the total amount withheld
22during the taxable year from the compensation of High Impact
23Business construction job employees.
24    "Underserved area" means a geographic area that meets one
25or more of the following conditions:
26        (1) the area has a poverty rate of at least 20%

 

 

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1    according to the latest federal decennial census;
2        (2) 75% or more of the children in the area participate
3    in the federal free lunch program according to reported
4    statistics from the State Board of Education;
5        (3) at least 20% of the households in the area receive
6    assistance under the Supplemental Nutrition Assistance
7    Program (SNAP); or
8        (4) the area has an average unemployment rate, as
9    determined by the Illinois Department of Employment
10    Security, that is more than 120% of the national
11    unemployment average, as determined by the U.S. Department
12    of Labor, for a period of at least 2 consecutive calendar
13    years preceding the date of the application.
14    (j) Each contractor and subcontractor who is engaged in and
15executing a High Impact Business Construction jobs project, as
16defined under subsection (i) of this Section, for a business
17that is entitled to a credit pursuant to subsection (i) of this
18Section shall:
19        (1) make and keep, for a period of 5 years from the
20    date of the last payment made on or after June 5, 2019 (the
21    effective date of Public Act 101-9) this amendatory Act of
22    the 101st General Assembly on a contract or subcontract for
23    a High Impact Business Construction Jobs Project, records
24    for all laborers and other workers employed by the
25    contractor or subcontractor on the project; the records
26    shall include:

 

 

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1            (A) the worker's name;
2            (B) the worker's address;
3            (C) the worker's telephone number, if available;
4            (D) the worker's social security number;
5            (E) the worker's classification or
6        classifications;
7            (F) the worker's gross and net wages paid in each
8        pay period;
9            (G) the worker's number of hours worked each day;
10            (H) the worker's starting and ending times of work
11        each day;
12            (I) the worker's hourly wage rate; and
13            (J) the worker's hourly overtime wage rate;
14        (2) no later than the 15th day of each calendar month,
15    provide a certified payroll for the immediately preceding
16    month to the taxpayer in charge of the High Impact Business
17    construction jobs project; within 5 business days after
18    receiving the certified payroll, the taxpayer shall file
19    the certified payroll with the Department of Labor and the
20    Department of Commerce and Economic Opportunity; a
21    certified payroll must be filed for only those calendar
22    months during which construction on a High Impact Business
23    construction jobs project has occurred; the certified
24    payroll shall consist of a complete copy of the records
25    identified in paragraph (1) of this subsection (j), but may
26    exclude the starting and ending times of work each day; the

 

 

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1    certified payroll shall be accompanied by a statement
2    signed by the contractor or subcontractor or an officer,
3    employee, or agent of the contractor or subcontractor which
4    avers that:
5            (A) he or she has examined the certified payroll
6        records required to be submitted by the Act and such
7        records are true and accurate; and
8            (B) the contractor or subcontractor is aware that
9        filing a certified payroll that he or she knows to be
10        false is a Class A misdemeanor.
11    A general contractor is not prohibited from relying on a
12certified payroll of a lower-tier subcontractor, provided the
13general contractor does not knowingly rely upon a
14subcontractor's false certification.
15    Any contractor or subcontractor subject to this
16subsection, and any officer, employee, or agent of such
17contractor or subcontractor whose duty as an officer, employee,
18or agent it is to file a certified payroll under this
19subsection, who willfully fails to file such a certified
20payroll on or before the date such certified payroll is
21required by this paragraph to be filed and any person who
22willfully files a false certified payroll that is false as to
23any material fact is in violation of this Act and guilty of a
24Class A misdemeanor.
25    The taxpayer in charge of the project shall keep the
26records submitted in accordance with this subsection on or

 

 

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1after June 5, 2019 (the effective date of Public Act 101-9)
2this amendatory Act of the 101st General Assembly for a period
3of 5 years from the date of the last payment for work on a
4contract or subcontract for the High Impact Business
5construction jobs project.
6    The records submitted in accordance with this subsection
7shall be considered public records, except an employee's
8address, telephone number, and social security number, and made
9available in accordance with the Freedom of Information Act.
10The Department of Labor shall accept any reasonable submissions
11by the contractor that meet the requirements of this subsection
12(j) and shall share the information with the Department in
13order to comply with the awarding of a High Impact Business
14construction jobs credit. A contractor, subcontractor, or
15public body may retain records required under this Section in
16paper or electronic format.
17    (k) Upon 7 business days' notice, each contractor and
18subcontractor shall make available for inspection and copying
19at a location within this State during reasonable hours, the
20records identified in this subsection (j) to the taxpayer in
21charge of the High Impact Business construction jobs project,
22its officers and agents, the Director of the Department of
23Labor and his or her deputies and agents, and to federal,
24State, or local law enforcement agencies and prosecutors.
25(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.