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Full Text of HB0034  102nd General Assembly

HB0034enr 102ND GENERAL ASSEMBLY



 


 
HB0034 EnrolledLRB102 02864 RJF 12873 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 Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, 5.5, 8.1,
612-9, and 13 as follows:
 
7    (20 ILCS 655/3)  (from Ch. 67 1/2, par. 603)
8    Sec. 3. Definitions. As used in this Act, the following
9words shall have the meanings ascribed to them, unless the
10context otherwise requires:
11    (a) "Department" means the Department of Commerce and
12Economic Opportunity.
13    (b) "Enterprise Zone" means an area of the State certified
14by the Department as an Enterprise Zone pursuant to this Act.
15    (c) "Depressed Area" means an area in which pervasive
16poverty, unemployment and economic distress exist.
17    (d) "Designated Zone Organization" means an association or
18entity: (1) the members of which are substantially all
19residents of the Enterprise Zone; (2) the board of directors
20of which is elected by the members of the organization; (3)
21which satisfies the criteria set forth in Section 501(c) (3)
22or 501(c) (4) of the Internal Revenue Code; and (4) which
23exists primarily for the purpose of performing within such

 

 

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1area or zone for the benefit of the residents and businesses
2thereof any of the functions set forth in Section 8 of this
3Act.
4    (e) "Agency" means each officer, board, commission and
5agency created by the Constitution, in the executive branch of
6State government, other than the State Board of Elections;
7each officer, department, board, commission, agency,
8institution, authority, university, body politic and corporate
9of the State; and each administrative unit or corporate
10outgrowth of the State government which is created by or
11pursuant to statute, other than units of local government and
12their officers, school districts and boards of election
13commissioners; each administrative unit or corporate outgrowth
14of the above and as may be created by executive order of the
15Governor. No entity shall be considered an "agency" for the
16purposes of this Act unless authorized by law to make rules or
17regulations.
18    (f) "Rule" means each agency statement of general
19applicability that implements, applies, interprets or
20prescribes law or policy, but does not include (i) statements
21concerning only the internal management of an agency and not
22affecting private rights or procedures available to persons or
23entities outside the agency, (ii) intra-agency memoranda, or
24(iii) the prescription of standardized forms.
25    (g) "Board" means the Enterprise Zone Board created in
26Section 5.2.1.

 

 

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1    (h) "Local labor market area" means an economically
2integrated area within which individuals can reside and find
3employment within a reasonable distance or can readily change
4jobs without changing their place of residence.
5    (i) "Full-time equivalent job" means a job in which the
6new employee works for the recipient or for a corporation
7under contract to the recipient at a rate of at least 35 hours
8per week. A recipient who employs labor or services at a
9specific site or facility under contract with another may
10declare one full-time, permanent job for every 1,820 man hours
11worked per year under that contract. Vacations, paid holidays,
12and sick time are included in this computation. Overtime is
13not considered a part of regular hours.
14    (j) "Full-time retained job" means any employee defined as
15having a full-time or full-time equivalent job preserved at a
16specific facility or site, the continuance of which is
17threatened by a specific and demonstrable threat, which shall
18be specified in the application for development assistance. A
19recipient who employs labor or services at a specific site or
20facility under contract with another may declare one retained
21employee per year for every 1,750 man hours worked per year
22under that contract, even if different individuals perform
23on-site labor or services.
24(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
 
25    (20 ILCS 655/4)  (from Ch. 67 1/2, par. 604)

 

 

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1    Sec. 4. Qualifications for enterprise zones.
2    (1) An area is qualified to become an enterprise zone
3which:
4        (a) is a contiguous area, provided that a zone area
5    may exclude wholly surrounded territory within its
6    boundaries;
7        (b) comprises a minimum of one-half square mile and
8    not more than 12 square miles, or 15 square miles if the
9    zone is located within the jurisdiction of 4 or more
10    counties or municipalities, in total area, exclusive of
11    lakes and waterways; however, in such cases where the
12    enterprise zone is a joint effort of three or more units of
13    government, or two or more units of government if situated
14    in a township which is divided by a municipality of
15    1,000,000 or more inhabitants, and where the certification
16    has been in effect at least one year, the total area shall
17    comprise a minimum of one-half square mile and not more
18    than thirteen square miles in total area exclusive of
19    lakes and waterways;
20        (c) (blank);
21        (d) (blank);
22        (e) is (1) entirely within a municipality or (2)
23    entirely within the unincorporated areas of a county,
24    except where reasonable need is established for such zone
25    to cover portions of more than one municipality or county
26    or (3) both comprises (i) all or part of a municipality and

 

 

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1    (ii) an unincorporated area of a county; and
2        (f) meets 3 or more of the following criteria:
3            (1) all or part of the local labor market area has
4        had an annual average unemployment rate of at least
5        120% of the State's annual average unemployment rate
6        for the most recent calendar year or the most recent
7        fiscal year as reported by the Department of
8        Employment Security;
9            (2) designation will result in the development of
10        substantial employment opportunities by creating or
11        retaining a minimum aggregate of 1,000 full-time
12        equivalent jobs due to an aggregate investment of
13        $100,000,000 or more, and will help alleviate the
14        effects of poverty and unemployment within the local
15        labor market area;
16            (3) all or part of the local labor market area has
17        a poverty rate of at least 20% according to American
18        Community Survey; 35% or more of families with
19        children in the area are living below 130% of the
20        poverty line, according to the latest American
21        Community Survey; the latest federal decennial census,
22        50% or more of children in the local labor market area
23        participate in the federal free lunch program
24        according to reported statistics from the State Board
25        of Education, or 20% or more households in the local
26        labor market area receive food stamps or assistance

 

 

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1        under Supplemental Nutrition Assistance Program
2        ("SNAP") according to the latest American Community
3        Survey federal decennial census;
4            (4) an abandoned coal mine, a brownfield (as
5        defined in Section 58.2 of the Environmental
6        Protection Act), or an inactive nuclear-powered
7        electrical generation facility where spent nuclear
8        fuel is stored on-site is located in the proposed zone
9        area, or all or a portion of the proposed zone was
10        declared a federal disaster area in the 3 years
11        preceding the date of application;
12            (5) the local labor market area contains a
13        presence of large employers that have downsized over
14        the years, the labor market area has experienced plant
15        closures in the 5 years prior to the date of
16        application affecting more than 50 workers, or the
17        local labor market area has experienced State or
18        federal facility closures in the 5 years prior to the
19        date of application affecting more than 50 workers;
20            (6) based on data from Multiple Listing Service
21        information or other suitable sources, the local labor
22        market area contains a high floor vacancy rate of
23        industrial or commercial properties, vacant or
24        demolished commercial and industrial structures are
25        prevalent in the local labor market area, or
26        industrial structures in the local labor market area

 

 

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1        are not used because of age, deterioration, relocation
2        of the former occupants, or cessation of operation;
3            (7) the applicant demonstrates a substantial plan
4        for using the designation to improve the State and
5        local government tax base, including income, sales,
6        and property taxes, including a plan for disposal of
7        publicly-owned real property by the methods described
8        in Section 10 of this Act;
9            (8) significant public infrastructure is present
10        in the local labor market area in addition to a plan
11        for infrastructure development and improvement;
12            (9) high schools or community colleges located
13        within the local labor market area are engaged in ACT
14        Work Keys, Manufacturing Skills Standard
15        Certification, or other industry-based credentials
16        that prepare students for careers;
17            (10) (blank); or the change in equalized assessed
18        valuation of industrial and/or commercial properties
19        in the 5 years prior to the date of application is
20        equal to or less than 50% of the State average change
21        in equalized assessed valuation for industrial and/or
22        commercial properties, as applicable, for the same
23        period of time; or
24            (11) the applicant demonstrates a substantial plan
25        for using the designation to encourage: (i)
26        participation by businesses owned by minorities,

 

 

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1        women, and persons with disabilities, as those terms
2        are defined in the Business Enterprise for Minorities,
3        Women, and Persons with Disabilities Act; and (ii) the
4        hiring of minorities, women, and persons with
5        disabilities.
6    As provided in Section 10-5.3 of the River Edge
7Redevelopment Zone Act, upon the expiration of the term of
8each River Edge Redevelopment Zone in existence on August 7,
92012 (the effective date of Public Act 97-905), that River
10Edge Redevelopment Zone will become available for its previous
11designee or a new applicant to compete for designation as an
12enterprise zone. No preference for designation will be given
13to the previous designee of the zone.
14    (2) Any criteria established by the Department or by law
15which utilize the rate of unemployment for a particular area
16shall provide that all persons who are not presently employed
17and have exhausted all unemployment benefits shall be
18considered unemployed, whether or not such persons are
19actively seeking employment.
20(Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18;
21101-81, eff. 7-12-19.)
 
22    (20 ILCS 655/4.1)
23    Sec. 4.1. Department recommendations.
24    (a) For all applications that qualify under Section 4 of
25this Act, the Department shall issue recommendations by

 

 

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1assigning a score to each applicant. The scores will be
2determined by the Department, based on the extent to which an
3applicant meets the criteria points under subsection (f) of
4Section 4 of this Act. Scores will be determined using the
5following scoring system:
6        (1) Up to 50 points for the extent to which the
7    applicant meets or exceeds the criteria in item (1) of
8    subsection (f) of Section 4 of this Act, with points
9    awarded according to the severity of the unemployment.
10        (2) Up to 50 points for the extent to which the
11    applicant meets or exceeds the criteria in item (2) of
12    subsection (f) of Section 4 of this Act, with points
13    awarded in accordance with the number of jobs created and
14    the aggregate amount of investment promised. The
15    Department may award partial points on a pro rata basis
16    under this paragraph (2) if the applicant demonstrates
17    specific job creation and investment below the thresholds
18    set forth in paragraph (2) of subsection (f) of Section 4.
19        (3) Up to 40 points for the extent to which the
20    applicant meets or exceeds the criteria in item (3) of
21    subsection (f) of Section 4 of this Act, with points
22    awarded in accordance with the severity of the
23    unemployment rate according to the latest American
24    Community Survey federal decennial census.
25        (4) Up to 30 points for the extent to which the
26    applicant meets or exceeds the criteria in item (4) of

 

 

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1    subsection (f) of Section 4 of this Act, with points
2    awarded in accordance with the severity of the
3    environmental impact of the abandoned coal mine,
4    brownfield, or federal disaster area.
5        (5) Up to 50 points for the extent to which the
6    applicant meets or exceeds the criteria in item (5) of
7    subsection (f) of Section 4 of this Act, with points
8    awarded in accordance with the severity of the applicable
9    facility closures or downsizing.
10        (6) Up to 40 points for the extent to which the
11    applicant meets or exceeds the criteria in item (6) of
12    subsection (f) of Section 4 of this Act, with points
13    awarded in accordance with the severity and extent of the
14    high floor vacancy or deterioration.
15        (7) Up to 30 points for the extent to which the
16    applicant meets or exceeds the criteria in item (7) of
17    subsection (f) of Section 4 of this Act, with points
18    awarded in accordance with the extent to which the
19    application addresses a plan to improve the State and
20    local government tax base, including a plan for disposal
21    of publicly-owned real property.
22        (8) Up to 50 points for the extent to which the
23    applicant meets or exceeds the criteria in item (8) of
24    subsection (f) of Section 4 of this Act, with points
25    awarded in accordance with the existence of significant
26    public infrastructure.

 

 

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1        (9) Up to 40 points for the extent to which the
2    applicant meets or exceeds the criteria in item (9) of
3    subsection (f) of Section 4 of this Act, with points
4    awarded in accordance with the extent to which educational
5    programs exist for career preparation.
6        (10) (Blank). Up to 40 points for the extent to which
7    the applicant meets or exceeds the criteria in item (10)
8    of subsection (f) of Section 4 of this Act, with points
9    awarded according to the severity of the change in
10    equalized assessed valuation.
11        (11) Up to 40 points for the extent to which the
12    applicant meets or exceeds the criteria in item (11) of
13    subsection (f) of Section 4 of this Act.
14        
15    (b) After assigning a score for each of the individual
16criteria using the point system as described in subsection
17(a), the Department shall then take the sum of the scores for
18each applicant and assign a final score. The Department shall
19then submit this information to the Board, as required in
20subsection (c) of Section 5.2, as its recommendation.
21(Source: P.A. 100-838, eff. 8-13-18.)
 
22    (20 ILCS 655/5.1)  (from Ch. 67 1/2, par. 606)
23    Sec. 5.1. Application to Department.
24    (a) A county or municipality which has adopted an
25ordinance designating an area as an enterprise zone shall make

 

 

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1written application to the Department to have such proposed
2enterprise zone certified by the Department as an Enterprise
3Zone. The application shall include:
4        (i) a certified copy of the ordinance designating the
5    proposed zone;
6        (ii) a map of the proposed enterprise zone, showing
7    existing streets and highways;
8        (iii) an analysis, and any appropriate supporting
9    documents and statistics, demonstrating that the proposed
10    zone area is qualified in accordance with Section 4;
11        (iv) a statement detailing any tax, grant, and other
12    financial incentives or benefits, and any programs, to be
13    provided by the municipality or county to business
14    enterprises within the zone, other than those provided in
15    the designating ordinance, which are not to be provided
16    throughout the municipality or county;
17        (v) a statement setting forth the economic development
18    and planning objectives for the zone;
19        (vi) a statement describing the functions, programs,
20    and services to be performed by designated zone
21    organizations within the zone;
22        (vii) an estimate of the economic impact of the zone,
23    considering all of the tax incentives, financial benefits
24    and programs contemplated, upon the revenues of the
25    municipality or county;
26        (viii) a transcript of all public hearings on the

 

 

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1    zone;
2        (ix) in the case of a joint application, a statement
3    detailing the need for a zone covering portions of more
4    than one municipality or county and a description of the
5    agreement between joint applicants; and
6        (x) such additional information as the Department by
7    regulation may require.
8    (b) The Department may provide for provisional
9certification of substantially complete applications pending
10the receipt of any of the items identified in subsection (a) of
11this Section or any additional information requested by the
12Department.
13(Source: P.A. 82-1019.)
 
14    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)
15    Sec. 5.2. Department Review of Enterprise Zone
16Applications.
17    (a) All applications which are to be considered and acted
18upon by the Department during a calendar year must be received
19by the Department no later than December 31 of the preceding
20calendar year.
21    Any application received after December 31 of any calendar
22year shall be held by the Department for consideration and
23action during the following calendar year.
24    Each enterprise zone application shall include a specific
25definition of the applicant's local labor market area.

 

 

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1    (a-5) The Department shall, no later than July 31, 2013,
2develop an application process for an enterprise zone
3application. The Department has emergency rulemaking authority
4for the purpose of application development only until 12
5months after the effective date of this amendatory Act of the
697th General Assembly.
7    (b) Upon receipt of an application from a county or
8municipality the Department shall review the application to
9determine whether the designated area qualifies as an
10enterprise zone under Section 4 of this Act.
11    (c) No later than June 30, the Department shall notify all
12applicant municipalities and counties of the Department's
13determination of the qualification of their respective
14designated enterprise zone areas, and shall send qualifying
15applications, including the applicant's scores for each of the
16items set forth in items (1) through (10) of subsection (a) of
17Section 4.1 and the applicant's final score under that
18Section, to the Board for the Board's consideration, along
19with supporting documentation of the basis for the
20Department's decision.
21    (d) If any such designated area is found to be qualified to
22be an enterprise zone by the Department under subsection (c)
23of this Section, the Department shall, no later than July 15,
24send a letter of notification to each member of the General
25Assembly whose legislative district or representative district
26contains all or part of the designated area and publish a

 

 

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1notice in at least one newspaper of general circulation within
2the proposed zone area to notify the general public of the
3application and their opportunity to comment. Such notice
4shall include a description of the area and a brief summary of
5the application and shall indicate locations where the
6applicant has provided copies of the application for public
7inspection. The notice shall also indicate appropriate
8procedures for the filing of written comments from zone
9residents, business, civic and other organizations and
10property owners to the Department. The Department and the
11Board may consider written comments submitted pursuant to this
12Section or any other information regarding a pending
13enterprise zone application submitted after the deadline for
14enterprise zone application and received prior to the Board's
15decision on all pending applications.
16    (e) (Blank).
17    (f) (Blank).
18    (g) (Blank).
19    (h) (Blank).
20(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
21    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
22    Sec. 5.3. Certification of Enterprise Zones; effective
23date.
24    (a) Certification of Board-approved designated Enterprise
25Zones shall be made by the Department by certification of the

 

 

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1designating ordinance. The Department shall promptly issue a
2certificate for each Enterprise Zone upon approval by the
3Board. The certificate shall be signed by the Director of the
4Department, shall make specific reference to the designating
5ordinance, which shall be attached thereto, and shall be filed
6in the office of the Secretary of State. A certified copy of
7the Enterprise Zone Certificate, or a duplicate original
8thereof, shall be recorded in the office of recorder of deeds
9of the county in which the Enterprise Zone lies.
10    (b) An Enterprise Zone certified prior to January 1, 2016
11or on or after January 1, 2017 shall be effective on January 1
12of the first calendar year after Department certification. An
13Enterprise Zone certified on or after January 1, 2016 and on or
14before December 31, 2016 shall be effective on the date of the
15Department's certification. The Department shall transmit a
16copy of the certification to the Department of Revenue, and to
17the designating municipality or county.
18    Upon certification of an Enterprise Zone, the terms and
19provisions of the designating ordinance shall be in effect,
20and may not be amended or repealed except in accordance with
21Section 5.4.
22    (c) With the exception of Enterprise Zones scheduled to
23expire before December 31, 2018, an Enterprise Zone designated
24before the effective date of this amendatory Act of the 97th
25General Assembly shall be in effect for 30 calendar years, or
26for a lesser number of years specified in the certified

 

 

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1designating ordinance. Notwithstanding the foregoing, any
2Enterprise Zone in existence on the effective date of this
3amendatory Act of the 98th General Assembly that has a term of
420 calendar years may be extended for an additional 10
5calendar years upon amendment of the designating ordinance by
6the designating municipality or county and submission of the
7ordinance to the Department. The amended ordinance must be
8properly recorded in the Office of Recorder of Deeds of each
9county in which the Enterprise Zone lies. Each Enterprise Zone
10in existence on the effective date of this amendatory Act of
11the 97th General Assembly that is scheduled to expire before
12July 1, 2016 may have its termination date extended until July
131, 2016 upon amendment of the designating ordinance by the
14designating municipality or county extending the termination
15date to July 1, 2016 and submission of the ordinance to the
16Department. The amended ordinance must be properly recorded in
17the Office of Recorder of Deeds of each county in which the
18Enterprise Zone lies. An Enterprise Zone designated on or
19after the effective date of this amendatory Act of the 97th
20General Assembly shall be in effect for a term of 15 calendar
21years, or for a lesser number of years specified in the
22certified designating ordinance. An enterprise zone designated
23on or after the effective date of this amendatory Act of the
2497th General Assembly shall be subject to review by the Board
25after 13 years for an additional 10-year designation beginning
26on the expiration date of the enterprise zone. During the

 

 

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1review process, the Board shall consider the costs incurred by
2the State and units of local government as a result of tax
3benefits received by the enterprise zone as well as whether
4the Zone has substantially implemented the plans and achieved
5the goals set forth in its original application, including
6satisfaction of the investment and job creation or retention
7information provided by the Applicant with respect to
8paragraph (f) of subsection (1) of Section 4 of the Act.
9Enterprise Zones shall terminate at midnight of December 31 of
10the final calendar year of the certified term, except as
11provided in Section 5.4.
12    (d) Except for Enterprise Zones authorized under
13subsection (f), Zones that become available for designation
14pursuant to Section 10-5.3 of the River Edge Redevelopment
15Zone Act, or those designated pursuant to another statutory
16authority providing for the creation of Enterprise Zones, no
17No more than a total of 97 12 Enterprise Zones may be certified
18by the Department and in existence in any calendar year 1984,
19no more than 12 Enterprise Zones may be certified by the
20Department in calendar year 1985, no more than 13 Enterprise
21Zones may be certified by the Department in calendar year
221986, no more than 15 Enterprise Zones may be certified by the
23Department in calendar year 1987, and no more than 20
24Enterprise Zones may be certified by the Department in
25calendar year 1990. In other calendar years, no more than 13
26Enterprise Zones may be certified by the Department. The

 

 

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1Department may also designate up to 8 additional Enterprise
2Zones outside the regular application cycle if warranted by
3the extreme economic circumstances as determined by the
4Department. The Department may also designate one additional
5Enterprise Zone outside the regular application cycle if an
6aircraft manufacturer agrees to locate an aircraft
7manufacturing facility in the proposed Enterprise Zone.
8Notwithstanding any other provision of this Act, no more than
989 Enterprise Zones may be certified by the Department for the
1010 calendar years commencing with 1983. The 7 additional
11Enterprise Zones authorized by Public Act 86-15 shall not lie
12within municipalities or unincorporated areas of counties that
13abut or are contiguous to Enterprise Zones certified pursuant
14to this Section prior to June 30, 1989. The 7 additional
15Enterprise Zones (excluding the additional Enterprise Zone
16which may be designated outside the regular application cycle)
17authorized by Public Act 86-1030 shall not lie within
18municipalities or unincorporated areas of counties that abut
19or are contiguous to Enterprise Zones certified pursuant to
20this Section prior to February 28, 1990. Beginning in calendar
21year 2004 and until December 31, 2008, one additional
22enterprise zone may be certified by the Department. In any
23calendar year, the Department may not certify more than 3
24Zones located within the same municipality. The Department may
25certify Enterprise Zones in each of the 10 calendar years
26commencing with 1983. The Department may not certify more than

 

 

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1a total of 18 Enterprise Zones located within the same county
2(whether within municipalities or within unincorporated
3territory) for the 10 calendar years commencing with 1983.
4Thereafter, the Department may not certify any additional
5Enterprise Zones, but may amend and rescind certifications of
6existing Enterprise Zones in accordance with Section 5.4.
7Beginning in calendar year 2021 and for any year in which there
8are at least 4 Zones available for designation, at least 25% of
9Zones available for designation in a given calendar year must
10be awarded to Zones located in counties with populations of
11less than 300,000 unless there are no applicants from such
12locations for that calendar year.
13    (e) Notwithstanding any other provision of law, if (i) the
14county board of any county in which a current military base is
15located, in part or in whole, or in which a military base that
16has been closed within 20 years of the effective date of this
17amendatory Act of 1998 is located, in part or in whole, adopts
18a designating ordinance in accordance with Section 5 of this
19Act to designate the military base in that county as an
20enterprise zone and (ii) the property otherwise meets the
21qualifications for an enterprise zone as prescribed in Section
224 of this Act, then the Department may certify the designating
23ordinance or ordinances, as the case may be.
24    (f) Applications for Enterprise Zones that are scheduled
25to expire in 2016, including Enterprise Zones that have been
26extended until 2016 by this amendatory Act of the 97th General

 

 

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1Assembly, shall be submitted to the Department no later than
2December 31, 2014. At that time, the Zone becomes available
3for either the previously designated area or a different area
4to compete for designation. No preference for designation as a
5Zone will be given to the previously designated area.
6    For Enterprise Zones that are scheduled to expire on or
7after January 1, 2017 and prior to January 1, 2024, an
8application process shall begin 2 years prior to the year in
9which the Zone expires. At that time, the Zone becomes
10available for either the previously designated area or a
11different area to compete for designation. For Enterprise
12Zones that are scheduled to expire on or after January 1, 2024,
13an application process shall begin 5 years prior to the year in
14which the Zone expires. At that time, the Zone becomes
15available for either the previously designated area or a
16different area to compete for designation. No preference for
17designation as a Zone will be given to the previously
18designated area.
19    Each Enterprise Zone that reapplies for certification but
20does not receive a new certification shall expire on its
21scheduled termination date.
22(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
 
23    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
24    Sec. 5.4. Amendment and Decertification of Enterprise
25Zones.

 

 

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1    (a) The terms of a certified enterprise zone designating
2ordinance may be amended to
3        (i) alter the boundaries of the Enterprise Zone, or
4        (ii) expand, limit or repeal tax incentives or
5    benefits provided in the ordinance, or
6        (iii) alter the termination date of the zone, or
7        (iv) make technical corrections in the enterprise zone
8    designating ordinance; but such amendment shall not be
9    effective unless the Department issues an amended
10    certificate for the Enterprise Zone, approving the amended
11    designating ordinance. Upon the adoption of any ordinance
12    amending or repealing the terms of a certified enterprise
13    zone designating ordinance, the municipality or county
14    shall promptly file with the Department an application for
15    approval thereof, containing substantially the same
16    information as required for an application under Section
17    5.1 insofar as material to the proposed changes. The
18    municipality or county must hold a public hearing on the
19    proposed changes as specified in Section 5 and, if the
20    amendment is to effectuate the limitation of tax
21    abatements under Section 5.4.1, then the public notice of
22    the hearing shall state that property that is in both the
23    enterprise zone and a redevelopment project area may not
24    receive tax abatements unless within 60 days after the
25    adoption of the amendment to the designating ordinance the
26    municipality has determined that eligibility for tax

 

 

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1    abatements has been established,
2        (v) include an area within another municipality or
3    county as part of the designated enterprise zone provided
4    the requirements of Section 4 are complied with, or
5        (vi) effectuate the limitation of tax abatements under
6    Section 5.4.1.
7    (b) The Department shall approve or disapprove a proposed
8amendment to a certified enterprise zone within 90 days of its
9receipt of the application from the municipality or county.
10The Department may not approve changes in a Zone which are not
11in conformity with this Act, as now or hereafter amended, or
12with other applicable laws. If the Department issues an
13amended certificate for an Enterprise Zone, the amended
14certificate, together with the amended zone designating
15ordinance, shall be filed, recorded and transmitted as
16provided in Section 5.3.
17    (c) An Enterprise Zone may be decertified by joint action
18of the Department and the designating county or municipality
19in accordance with this Section. The designating county or
20municipality shall conduct at least one public hearing within
21the zone prior to its adoption of an ordinance of
22de-designation. The mayor of the designating municipality or
23the chairman of the county board of the designating county
24shall execute a joint decertification agreement with the
25Department. A decertification of an Enterprise Zone shall not
26become effective until at least 6 months after the execution

 

 

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1of the decertification agreement, which shall be filed in the
2office of the Secretary of State.
3    (d) An Enterprise Zone may be decertified for cause by the
4Department in accordance with this Section. Prior to
5decertification: (1) the Department shall notify the chief
6elected official of the designating county or municipality in
7writing of the specific deficiencies which provide cause for
8decertification; (2) the Department shall place the
9designating county or municipality on probationary status for
10at least 6 months during which time corrective action may be
11achieved in the enterprise zone by the designating county or
12municipality; and, (3) the Department shall conduct at least
13one public hearing within the zone. If such corrective action
14is not achieved during the probationary period, the Department
15shall issue an amended certificate signed by the Director of
16the Department decertifying the enterprise zone, which
17certificate shall be filed in the office of the Secretary of
18State. A certified copy of the amended enterprise zone
19certificate, or a duplicate original thereof, shall be
20recorded in the office of recorder of the county in which the
21enterprise zone lies, and shall be provided to the chief
22elected official of the designating county or municipality.
23Decertification of an Enterprise Zone shall not become
24effective until 60 days after the date of filing.
25    (d-1) The Department shall provisionally decertify any
26Enterprise Zone that fails to file a report or fails to report

 

 

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1any capital investment, job creation or retention, or State
2tax expenditures for 3 consecutive calendar years. Prior to
3provisional decertification: (1) the Department shall notify
4the chief elected official of the designating county or
5municipality in writing of the specific deficiencies which
6provide cause for decertification; (2) the Department shall
7place the designating county or municipality on probationary
8status for at least 6 months during which time corrective
9action may be achieved in the Enterprise Zone by the
10designating county or municipality; and (3) the Department
11shall conduct at least one public hearing within the Zone. If
12such corrective action is not achieved during the probationary
13period, the Department shall issue an amended certificate
14signed by the Director of the Department provisionally
15decertifying the Enterprise Zone as of the scheduled
16termination date of the then-current designation. If the
17provisionally-decertified Zone was approved and designated
18after the 102nd General Assembly and has been in existence for
19less than 15 years, such Zone shall not be eligible for an
20additional 10-year designation after the expiration date of
21the original Zone set forth in subsection (c) of Section 5.3.
22Further, if such corrective action is not achieved during the
23probationary period provided for in this Section, following
24such probationary period the Zone becomes available for a
25different area to compete for designation.
26    (e) In the event of a decertification, provisional

 

 

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1decertification, or an amendment reducing the length of the
2term or the area of an Enterprise Zone or the adoption of an
3ordinance reducing or eliminating tax benefits in an
4Enterprise Zone, all benefits previously extended within the
5Zone pursuant to this Act or pursuant to any other Illinois law
6providing benefits specifically to or within Enterprise Zones
7shall remain in effect for the original stated term of the
8Enterprise Zone, with respect to business enterprises within
9the Zone on the effective date of such decertification,
10provisional decertification, or amendment, and with respect to
11individuals participating in urban homestead programs under
12this Act.
13    (f) Except as otherwise provided in Section 5.4.1, with
14respect to business enterprises (or expansions thereof) which
15are proposed or under development within a Zone at the time of
16a decertification or an amendment reducing the length of the
17term of the Zone, or excluding from the Zone area the site of
18the proposed enterprise, or an ordinance reducing or
19eliminating tax benefits in a Zone, such business enterprise
20shall be entitled to the benefits previously applicable within
21the Zone for the original stated term of the Zone, if the
22business enterprise establishes:
23        (i) that the proposed business enterprise or expansion
24    has been committed to be located within the Zone;
25        (ii) that substantial and binding financial
26    obligations have been made towards the development of such

 

 

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1    enterprise; and
2        (iii) that such commitments have been made in
3    reasonable reliance on the benefits and programs which
4    were to have been applicable to the enterprise by reason
5    of the Zone, including in the case of a reduction in term
6    of a zone, the original length of the term.
7    In declaratory judgment actions under this paragraph, the
8Department and the designating municipality or county shall be
9necessary parties defendant.
10(Source: P.A. 90-258, eff. 7-30-97.)
 
11    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
12    Sec. 5.5. High Impact Business.
13    (a) In order to respond to unique opportunities to assist
14in the encouragement, development, growth, and expansion of
15the private sector through large scale investment and
16development projects, the Department is authorized to receive
17and approve applications for the designation of "High Impact
18Businesses" in Illinois subject to the following conditions:
19        (1) such applications may be submitted at any time
20    during the year;
21        (2) such business is not located, at the time of
22    designation, in an enterprise zone designated pursuant to
23    this Act;
24        (3) the business intends to do one or more of the
25    following:

 

 

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

 

 

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1        such new foundation construction commenced not sooner
2        than July 1, 2001. Such facility shall be designed to
3        provide baseload electric generation and shall operate
4        on a continuous basis throughout the year; and (i)
5        shall have an aggregate rated generating capacity of
6        at least 1,000 megawatts for all new units at one site
7        if it uses natural gas as its primary fuel and
8        foundation construction of the facility is commenced
9        on or before December 31, 2004, or shall have an
10        aggregate rated generating capacity of at least 400
11        megawatts for all new units at one site if it uses coal
12        or gases derived from coal as its primary fuel and
13        shall support the creation of at least 150 new
14        Illinois coal mining jobs, or (ii) shall be funded
15        through a federal Department of Energy grant before
16        December 31, 2010 and shall support the creation of
17        Illinois coal-mining jobs, or (iii) shall use coal
18        gasification or integrated gasification-combined cycle
19        units that generate electricity or chemicals, or both,
20        and shall support the creation of Illinois coal-mining
21        jobs. The business must certify in writing that the
22        investments necessary to establish a new electric
23        generating facility would not be placed in service and
24        the job creation in the case of a coal-fueled plant
25        would not occur without the tax credits and exemptions
26        set forth in subsection (b-5) of this Section. The

 

 

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

 

 

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

 

 

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1        existing transmission facilities would not be placed
2        in service without the tax credits and exemptions set
3        forth in subsection (b-5) of this Section. The term
4        "placed in service" has the same meaning as described
5        in subsection (h) of Section 201 of the Illinois
6        Income Tax Act; or
7            (E) the business intends to establish a new wind
8        power facility at a designated location in Illinois.
9        For purposes of this Section, "new wind power
10        facility" means a newly constructed electric
11        generation facility, or a newly constructed expansion
12        of an existing electric generation facility, placed in
13        service on or after July 1, 2009, that generates
14        electricity using wind energy devices, and such
15        facility shall be deemed to include all associated
16        transmission lines, substations, and other equipment
17        related to the generation of electricity from wind
18        energy devices. For purposes of this Section, "wind
19        energy device" means any device, with a nameplate
20        capacity of at least 0.5 megawatts, that is used in the
21        process of converting kinetic energy from the wind to
22        generate electricity; or
23            (F) the business commits to (i) make a minimum
24        investment of $500,000,000, which will be placed in
25        service in a qualified property, (ii) create 125
26        full-time equivalent jobs at a designated location in

 

 

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1        Illinois, (iii) establish a fertilizer plant at a
2        designated location in Illinois that complies with the
3        set-back standards as described in Table 1: Initial
4        Isolation and Protective Action Distances in the 2012
5        Emergency Response Guidebook published by the United
6        States Department of Transportation, (iv) pay a
7        prevailing wage for employees at that location who are
8        engaged in construction activities, and (v) secure an
9        appropriate level of general liability insurance to
10        protect against catastrophic failure of the fertilizer
11        plant or any of its constituent systems; in addition,
12        the business must agree to enter into a construction
13        project labor agreement including provisions
14        establishing wages, benefits, and other compensation
15        for employees performing work under the project labor
16        agreement at that location; for the purposes of this
17        Section, "fertilizer plant" means a newly constructed
18        or upgraded plant utilizing gas used in the production
19        of anhydrous ammonia and downstream nitrogen
20        fertilizer products for resale; for the purposes of
21        this Section, "prevailing wage" means the hourly cash
22        wages plus fringe benefits for training and
23        apprenticeship programs approved by the U.S.
24        Department of Labor, Bureau of Apprenticeship and
25        Training, health and welfare, insurance, vacations and
26        pensions paid generally, in the locality in which the

 

 

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1        work is being performed, to employees engaged in work
2        of a similar character on public works; this paragraph
3        (F) applies only to businesses that submit an
4        application to the Department within 60 days after
5        July 25, 2013 (the effective date of Public Act
6        98-109) this amendatory Act of the 98th General
7        Assembly; and
8        (4) no later than 90 days after an application is
9    submitted, the Department shall notify the applicant of
10    the Department's determination of the qualification of the
11    proposed High Impact Business under this Section.
12    (b) Businesses designated as High Impact Businesses
13pursuant to subdivision (a)(3)(A) of this Section shall
14qualify for the credits and exemptions described in the
15following Acts: Section 9-222 and Section 9-222.1A of the
16Public Utilities Act, subsection (h) of Section 201 of the
17Illinois Income Tax Act, and Section 1d of the Retailers'
18Occupation Tax Act; provided that these credits and exemptions
19described in these Acts shall not be authorized until the
20minimum investments set forth in subdivision (a)(3)(A) of this
21Section have been placed in service in qualified properties
22and, in the case of the exemptions described in the Public
23Utilities Act and Section 1d of the Retailers' Occupation Tax
24Act, the minimum full-time equivalent jobs or full-time
25retained jobs set forth in subdivision (a)(3)(A) of this
26Section have been created or retained. Businesses designated

 

 

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1as High Impact Businesses under this Section shall also
2qualify for the exemption described in Section 5l of the
3Retailers' Occupation Tax Act. The credit provided in
4subsection (h) of Section 201 of the Illinois Income Tax Act
5shall be applicable to investments in qualified property as
6set forth in subdivision (a)(3)(A) of this Section.
7    (b-5) Businesses designated as High Impact Businesses
8pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
9and (a)(3)(D) of this Section shall qualify for the credits
10and exemptions described in the following Acts: Section 51 of
11the Retailers' Occupation Tax Act, Section 9-222 and Section
129-222.1A of the Public Utilities Act, and subsection (h) of
13Section 201 of the Illinois Income Tax Act; however, the
14credits and exemptions authorized under Section 9-222 and
15Section 9-222.1A of the Public Utilities Act, and subsection
16(h) of Section 201 of the Illinois Income Tax Act shall not be
17authorized until the new electric generating facility, the new
18gasification facility, the new transmission facility, or the
19new, expanded, or reopened coal mine is operational, except
20that a new electric generating facility whose primary fuel
21source is natural gas is eligible only for the exemption under
22Section 5l of the Retailers' Occupation Tax Act.
23    (b-6) Businesses designated as High Impact Businesses
24pursuant to subdivision (a)(3)(E) of this Section shall
25qualify for the exemptions described in Section 5l of the
26Retailers' Occupation Tax Act; any business so designated as a

 

 

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1High Impact Business being, for purposes of this Section, a
2"Wind Energy Business".
3    (b-7) Beginning on January 1, 2021, businesses designated
4as High Impact Businesses by the Department shall qualify for
5the High Impact Business construction jobs credit under
6subsection (h-5) of Section 201 of the Illinois Income Tax Act
7if the business meets the criteria set forth in subsection (i)
8of this Section. The total aggregate amount of credits awarded
9under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
10this amendatory Act of the 101st General Assembly) shall not
11exceed $20,000,000 in any State fiscal year.
12    (c) High Impact Businesses located in federally designated
13foreign trade zones or sub-zones are also eligible for
14additional credits, exemptions and deductions as described in
15the following Acts: Section 9-221 and Section 9-222.1 of the
16Public Utilities Act; and subsection (g) of Section 201, and
17Section 203 of the Illinois Income Tax Act.
18    (d) Except for businesses contemplated under subdivision
19(a)(3)(E) of this Section, existing Illinois businesses which
20apply for designation as a High Impact Business must provide
21the Department with the prospective plan for which 1,500
22full-time retained jobs would be eliminated in the event that
23the business is not designated.
24    (e) Except for new wind power facilities contemplated
25under subdivision (a)(3)(E) of this Section, new proposed
26facilities which apply for designation as High Impact Business

 

 

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1must provide the Department with proof of alternative
2non-Illinois sites which would receive the proposed investment
3and job creation in the event that the business is not
4designated as a High Impact Business.
5    (f) Except for businesses contemplated under subdivision
6(a)(3)(E) of this Section, in the event that a business is
7designated a High Impact Business and it is later determined
8after reasonable notice and an opportunity for a hearing as
9provided under the Illinois Administrative Procedure Act, that
10the business would have placed in service in qualified
11property the investments and created or retained the requisite
12number of jobs without the benefits of the High Impact
13Business designation, the Department shall be required to
14immediately revoke the designation and notify the Director of
15the Department of Revenue who shall begin proceedings to
16recover all wrongfully exempted State taxes with interest. The
17business shall also be ineligible for all State funded
18Department programs for a period of 10 years.
19    (g) The Department shall revoke a High Impact Business
20designation if the participating business fails to comply with
21the terms and conditions of the designation. However, the
22penalties for new wind power facilities or Wind Energy
23Businesses for failure to comply with any of the terms or
24conditions of the Illinois Prevailing Wage Act shall be only
25those penalties identified in the Illinois Prevailing Wage
26Act, and the Department shall not revoke a High Impact

 

 

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1Business designation as a result of the failure to comply with
2any of the terms or conditions of the Illinois Prevailing Wage
3Act in relation to a new wind power facility or a Wind Energy
4Business.
5    (h) Prior to designating a business, the Department shall
6provide the members of the General Assembly and Commission on
7Government Forecasting and Accountability with a report
8setting forth the terms and conditions of the designation and
9guarantees that have been received by the Department in
10relation to the proposed business being designated.
11    (i) High Impact Business construction jobs credit.
12Beginning on January 1, 2021, a High Impact Business may
13receive a tax credit against the tax imposed under subsections
14(a) and (b) of Section 201 of the Illinois Income Tax Act in an
15amount equal to 50% of the amount of the incremental income tax
16attributable to High Impact Business construction jobs credit
17employees employed in the course of completing a High Impact
18Business construction jobs project. However, the High Impact
19Business construction jobs credit may equal 75% of the amount
20of the incremental income tax attributable to High Impact
21Business construction jobs credit employees if the High Impact
22Business construction jobs credit project is located in an
23underserved area.
24    The Department shall certify to the Department of Revenue:
25(1) the identity of taxpayers that are eligible for the High
26Impact Business construction jobs credit; and (2) the amount

 

 

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

 

 

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1repair, or routine maintenance of existing structures,
2buildings, or real property.
3    "Incremental income tax" means the total amount withheld
4during the taxable year from the compensation of High Impact
5Business construction job employees.
6    "Underserved area" means a geographic area that meets one
7or more of the following conditions:
8        (1) the area has a poverty rate of at least 20%
9    according to the latest American Community Survey federal
10    decennial census;
11        (2) 35% 75% or more of the families with children in
12    the area are living below 130% of the poverty line,
13    according to the latest American Community Survey children
14    in the area participate in the federal free lunch program
15    according to reported statistics from the State Board of
16    Education;
17        (3) at least 20% of the households in the area receive
18    assistance under the Supplemental Nutrition Assistance
19    Program (SNAP); or
20        (4) the area has an average unemployment rate, as
21    determined by the Illinois Department of Employment
22    Security, that is more than 120% of the national
23    unemployment average, as determined by the U.S. Department
24    of Labor, for a period of at least 2 consecutive calendar
25    years preceding the date of the application.
26    (j) Each contractor and subcontractor who is engaged in

 

 

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

 

 

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

 

 

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

 

 

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1subcontractor, or public body may retain records required
2under this Section in paper or electronic format.
3    (k) Upon 7 business days' notice, each contractor and
4subcontractor shall make available for inspection and copying
5at a location within this State during reasonable hours, the
6records identified in this subsection (j) to the taxpayer in
7charge of the High Impact Business construction jobs project,
8its officers and agents, the Director of the Department of
9Labor and his or her deputies and agents, and to federal,
10State, or local law enforcement agencies and prosecutors.
11(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
12    (20 ILCS 655/8.1)
13    Sec. 8.1. Accounting.
14    (a) Any business receiving tax incentives due to its
15location within an Enterprise Zone or its designation as a
16High Impact Business must annually report to the Department of
17Revenue information reasonably required by the Department of
18Revenue to enable the Department to verify and calculate the
19total Enterprise Zone or High Impact Business tax benefits for
20property taxes and taxes imposed by the State that are
21received by the business, broken down by incentive category
22and enterprise zone, if applicable. Reports will be due no
23later than May 31 of each year and shall cover the previous
24calendar year. The first report will be for the 2012 calendar
25year and will be due no later than May 31, 2013. Failure to

 

 

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1report data may result in ineligibility to receive incentives.
2To the extent that a business receiving tax incentives has
3obtained an Enterprise Zone Building Materials Exemption
4Certificate or a High Impact Business Building Materials
5Exemption Certificate, that business is required to report
6those building materials exemption benefits only under
7subsection (a-5) of this Section. No additional reporting for
8those building materials exemption benefits is required under
9this subsection (a). In addition, if the Department determines
10that 80% or more of the businesses receiving tax incentives
11because of their location within a particular Enterprise Zone
12failed to submit the information required under this
13subsection (a) to the Department in any calendar year, then
14the Enterprise Zone may be decertified by the Department. If
15the Department is able to determine that specific businesses
16are failing to submit the information required under this
17subsection (a) to the Department in any calendar year to the
18Zone Administrator, regardless of the Administrator's efforts
19to enforce reporting, the Department may, at its discretion,
20suspend the benefits to the specific business rather than an
21outright decertification of the particular Enterprise Zone.
22The Department, in consultation with the Department of
23Revenue, is authorized to adopt rules governing ineligibility
24to receive exemptions, including the length of ineligibility.
25Factors to be considered in determining whether a business is
26ineligible shall include, but are not limited to, prior

 

 

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1compliance with the reporting requirements, cooperation in
2discontinuing and correcting violations, the extent of the
3violation, and whether the violation was willful or
4inadvertent.
5    (a-5) Each contractor or other entity that has been issued
6an Enterprise Zone Building Materials Exemption Certificate
7under Section 5k of the Retailers' Occupation Tax Act or a High
8Impact Business Building Materials Exemption Certificate under
9Section 5l of the Retailers' Occupation Tax Act shall annually
10report to the Department of Revenue the total value of the
11Enterprise Zone or High Impact Business building materials
12exemption from State taxes. Reports shall contain information
13reasonably required by the Department of Revenue to enable it
14to verify and calculate the total tax benefits for taxes
15imposed by the State, and shall be broken down by Enterprise
16Zone. Reports are due no later than May 31 of each year and
17shall cover the previous calendar year. The first report will
18be for the 2013 calendar year and will be due no later than May
1931, 2014. Failure to report data may result in revocation of
20the Enterprise Zone Building Materials Exemption Certificate
21or High Impact Business Building Materials Exemption
22Certificate issued to the contractor or other entity.
23    The Department of Revenue is authorized to adopt rules
24governing revocation determinations, including the length of
25revocation. Factors to be considered in revocations shall
26include, but are not limited to, prior compliance with the

 

 

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1reporting requirements, cooperation in discontinuing and
2correcting violations, and whether the certificate was used
3unlawfully during the preceding year.
4    (b) Each person required to file a return under the Gas
5Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
6Tax Act, or the Telecommunications Excise Tax Act shall file,
7on or before May 31 of each year, a report with the Department
8of Revenue, in the manner and form required by the Department
9of Revenue, containing information reasonably required by the
10Department of Revenue to enable the Department of Revenue to
11calculate the amount of the deduction for taxes imposed by the
12State that is taken under each Act, respectively, due to the
13location of a business in an Enterprise Zone or its
14designation as a High Impact Business. The report shall be
15itemized by business and the business location address.
16    (c) Employers shall report their job creation, retention,
17and capital investment numbers within the zone annually to the
18Department of Revenue no later than May 31 of each calendar
19year. High Impact Businesses shall report their job creation,
20retention, and capital investment numbers to the Department of
21Revenue no later than May 31 of each year. With respect to job
22creation or retention, employers and High Impact Businesses
23shall use best efforts to submit diversity information related
24to the gender and ethnicity of such employees.
25    (d) The Department of Revenue will aggregate and collect
26the tax, job, and capital investment data by Enterprise Zone

 

 

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1and High Impact Business and report this information,
2formatted to exclude company-specific proprietary information,
3to the Department and the Board by August 1, 2013, and by
4August 1 of every calendar year thereafter. The Department
5will include this information in their required reports under
6Section 6 of this Act. The Board shall consider this
7information during the reviews required under subsection (d-5)
8of Section 5.4 of this Act and subsection (c) of Section 5.3 of
9this Act.
10    (e) The Department of Revenue, in its discretion, may
11require that the reports filed under this Section be submitted
12electronically.
13    (f) The Department of Revenue shall have the authority to
14adopt rules as are reasonable and necessary to implement the
15provisions of this Section.
16(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
17    (20 ILCS 655/12-9)  (from Ch. 67 1/2, par. 626)
18    Sec. 12-9. Report. On January 1 of each year, the
19Department shall report on its operation of the Fund for the
20preceding fiscal year to the Governor and the General
21Assembly. For any fiscal year in which no operations are
22conducted by the Department because no funds were appropriated
23to the Fund, the report outlined by this Section is not
24required.
25(Source: P.A. 84-165.)
 

 

 

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1    (20 ILCS 655/13)
2    Sec. 13. Enterprise Zone construction jobs credit.
3    (a) Beginning on January 1, 2021, a business entity in a
4certified Enterprise Zone that makes a capital investment of
5at least $10,000,000 in an Enterprise Zone construction jobs
6project may receive an Enterprise Zone construction jobs
7credit against the tax imposed under subsections (a) and (b)
8of Section 201 of the Illinois Income Tax Act in an amount
9equal to 50% of the amount of the incremental income tax
10attributable to Enterprise Zone construction jobs credit
11employees employed in the course of completing an Enterprise
12Zone construction jobs project. However, the Enterprise Zone
13construction jobs credit may equal 75% of the amount of the
14incremental income tax attributable to Enterprise Zone
15construction jobs credit employees if the project is located
16in an underserved area.
17    (b) A business entity seeking a credit under this Section
18must submit an application to the Department and must receive
19approval from the designating municipality or county and the
20Department for the Enterprise Zone construction jobs credit
21project. The application must describe the nature and benefit
22of the project to the certified Enterprise Zone and its
23potential contributors. The total aggregate amount of credits
24awarded under the Blue Collar Jobs Act (Article 20 of Public
25Act 101-9 this amendatory Act of the 101st General Assembly)

 

 

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1shall not exceed $20,000,000 in any State fiscal year.
2    Within 45 days after receipt of an application, the
3Department shall give notice to the applicant as to whether
4the application has been approved or disapproved. If the
5Department disapproves the application, it shall specify the
6reasons for this decision and allow 60 days for the applicant
7to amend and resubmit its application. The Department shall
8provide assistance upon request to applicants. Resubmitted
9applications shall receive the Department's approval or
10disapproval within 30 days after the application is
11resubmitted. Those resubmitted applications satisfying initial
12Department objectives shall be approved unless reasonable
13circumstances warrant disapproval.
14    On an annual basis, the designated zone organization shall
15furnish a statement to the Department on the programmatic and
16financial status of any approved project and an audited
17financial statement of the project.
18    The Department shall certify to the Department of Revenue
19the identity of taxpayers who are eligible for the credits and
20the amount of credits that are claimed pursuant to
21subparagraph (8) of subsection (f) of Section 201 the Illinois
22Income Tax Act.
23    The Enterprise Zone construction jobs credit project must
24be undertaken by the business entity in the course of
25completing a project that complies with the criteria contained
26in Section 4 of this Act and is undertaken in a certified

 

 

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1Enterprise Zone. The Department shall adopt any necessary
2rules for the implementation of this subsection (b).
3    (c) Any business entity that receives an Enterprise Zone
4construction jobs credit shall maintain a certified payroll
5pursuant to subsection (d) of this Section.
6    (d) Each contractor and subcontractor who is engaged in
7and is executing an Enterprise Zone construction jobs credit
8project for a business that is entitled to a credit pursuant to
9this Section shall:
10        (1) make and keep, for a period of 5 years from the
11    date of the last payment made on or after June 5, 2019 (the
12    effective date of Public Act 101-9) this amendatory Act of
13    the 101st General Assembly on a contract or subcontract
14    for an Enterprise Zone construction jobs credit project,
15    records for all laborers and other workers employed by
16    them on the project; the records shall include:
17            (A) the worker's name;
18            (B) the worker's address;
19            (C) the worker's telephone number, if available;
20            (D) the worker's social security number;
21            (E) the worker's classification or
22        classifications;
23            (F) the worker's gross and net wages paid in each
24        pay period;
25            (G) the worker's number of hours worked each day;
26            (H) the worker's starting and ending times of work

 

 

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1        each day;
2            (I) the worker's hourly wage rate; and
3            (J) the worker's hourly overtime wage rate;
4        (2) no later than the 15th day of each calendar month,
5    provide a certified payroll for the immediately preceding
6    month to the taxpayer in charge of the project; within 5
7    business days after receiving the certified payroll, the
8    taxpayer shall file the certified payroll with the
9    Department of Labor and the Department of Commerce and
10    Economic Opportunity; a certified payroll must be filed
11    for only those calendar months during which construction
12    on an Enterprise Zone construction jobs project has
13    occurred; the certified payroll shall consist of a
14    complete copy of the records identified in paragraph (1)
15    of this subsection (d), but may exclude the starting and
16    ending times of work each day; the certified payroll shall
17    be accompanied by a statement signed by the contractor or
18    subcontractor or an officer, employee, or agent of the
19    contractor or subcontractor which avers that:
20            (A) he or she has examined the certified payroll
21        records required to be submitted by the Act and such
22        records are true and accurate; and
23            (B) the contractor or subcontractor is aware that
24        filing a certified payroll that he or she knows to be
25        false is a Class A misdemeanor.
26    A general contractor is not prohibited from relying on a

 

 

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1certified payroll of a lower-tier subcontractor, provided the
2general contractor does not knowingly rely upon a
3subcontractor's false certification.
4    Any contractor or subcontractor subject to this
5subsection, and any officer, employee, or agent of such
6contractor or subcontractor whose duty as an officer,
7employee, or agent it is to file a certified payroll under this
8subsection, who willfully fails to file such a certified
9payroll on or before the date such certified payroll is
10required by this paragraph to be filed and any person who
11willfully files a false certified payroll that is false as to
12any material fact is in violation of this Act and guilty of a
13Class A misdemeanor.
14    The taxpayer in charge of the project shall keep the
15records submitted in accordance with this subsection on or
16after June 5, 2019 (the effective date of Public Act 101-9)
17this amendatory Act of the 101st General Assembly for a period
18of 5 years from the date of the last payment for work on a
19contract or subcontract for the project.
20    The records submitted in accordance with this subsection
21shall be considered public records, except an employee's
22address, telephone number, and social security number, and
23made available in accordance with the Freedom of Information
24Act. The Department of Labor shall accept any reasonable
25submissions by the contractor that meet the requirements of
26this subsection and shall share the information with the

 

 

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1Department in order to comply with the awarding of Enterprise
2Zone construction jobs credits. A contractor, subcontractor,
3or public body may retain records required under this Section
4in paper or electronic format.
5    Upon 7 business days' notice, the contractor and each
6subcontractor shall make available for inspection and copying
7at a location within this State during reasonable hours, the
8records identified in paragraph (1) of this subsection to the
9taxpayer in charge of the project, its officers and agents,
10the Director of Labor and his or her deputies and agents, and
11to federal, State, or local law enforcement agencies and
12prosecutors.
13    (e) As used in this Section:
14    "Enterprise Zone construction jobs credit" means an amount
15equal to 50% (or 75% if the project is located in an
16underserved area) of the incremental income tax attributable
17to Enterprise Zone construction jobs credit employees.
18    "Enterprise Zone construction jobs credit employee" means
19a laborer or worker who is employed by an Illinois contractor
20or subcontractor in the actual construction work on the site
21of an Enterprise Zone construction jobs credit project.
22    "Enterprise Zone construction jobs credit project" means
23building a structure or building or making improvements of any
24kind to real property commissioned and paid for by a business
25that has applied and been approved for an Enterprise Zone
26construction jobs credit pursuant to this Section. "Enterprise

 

 

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1Zone construction jobs credit project" does not include the
2routine operation, routine repair, or routine maintenance of
3existing structures, buildings, or real property.
4    "Incremental income tax" means the total amount withheld
5during the taxable year from the compensation of Enterprise
6Zone construction jobs credit 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 federal
11    decennial census;
12        (2) 35% 75% or more of the families with children in
13    the area are living below 130% of the poverty line,
14    according to the latest American Community Survey children
15    in the area participate in the federal free lunch program
16    according to reported statistics from the State Board of
17    Education;
18        (3) at least 20% of the households in the area receive
19    assistance under the Supplemental Nutrition Assistance
20    Program (SNAP); or
21        (4) the area has an average unemployment rate, as
22    determined by the Illinois Department of Employment
23    Security, that is more than 120% of the national
24    unemployment average, as determined by the U.S. Department
25    of Labor, for a period of at least 2 consecutive calendar
26    years preceding the date of the application.

 

 

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1(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)