HB3770 96TH GENERAL ASSEMBLY

LRB096 09496 HLH 19653 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB3770

Introduced 2/25/2009, by Rep. Fred Crespo

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.719 new

Creates the Clean Energy Technology Business Promotion Act. Provides that the incremental income tax attributable to a employees of an individual, partnership, corporation, or other entity that (i) derives at least 75% of its business activity during the taxable year directly from clean energy technology, and (ii) employs between 10 and 99 full-time employees shall be deposited into the Intermodal Facilities Promotion Fund. Provides that moneys in the Fund shall be used by the Department of Commerce and Economic Opportunity to make grants to the eligible employers. Sets limits on the grant amounts. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Clean Energy Technology Business Promotion Act.

Section 5. Purpose. The General Assembly has determined that it is in the interest of the State of Illinois to promote development that will produce clean energy technology.

Section 10. Definitions. As used in this Act:

"Agreement" means the agreement between an eligible employer and the Department under the provisions of Section 30 of this Act.

"Clean energy technology" means the development, manufacture, or application of scientific advances that produce or contribute to the production of clean energy using energy produced by wind, solar energy, landfill gas, geothermal resources, ocean thermal energy conversion, quantifiable energy conservation measures, tidal energy, wave energy, biomass, biofuels, or hydrogen fuels derived from renewable sources. "Clean energy technology" does not include: the installation of clean energy technologies; any fossil fuel based energy production, including, but not limited to, clean coal, clean diesel, natural gas, and hydrogen from natural gas; any nuclear based energy production; waste to energy via combustion or incineration; or other technologies that are detrimental to human health.

"Department" means the Department of Commerce and Economic Opportunity.

"Director" means the Director of Commerce and Economic Opportunity.

"Eligible employer" means an individual, partnership, corporation, or other entity that (i) derives at least 75% of its business activity during the taxable year directly from clean energy technology, and (ii) employs between 10 and 99 full-time employees.

"Full-time employee" means an individual who is employed for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment.

"Incremental income tax" means the total amount withheld from the compensation of employees under Article 7 of the Illinois Income Tax Act arising from employment by an eligible employer.

"Related member" means a person or entity that, with respect to the eligible employer during any portion of the taxable year, is any one of the following:

(1) an individual stockholder, if the stockholder and the members of the stockholder's family (as defined in Section 318 of the Internal Revenue Code) own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of the eligible employer's outstanding stock;

(2) a partnership, estate, or trust and any partner or beneficiary, if the partnership, estate, or trust, and its partners or beneficiaries own directly, indirectly, or beneficially, or constructively, in the aggregate, at least 50% of the profits, capital, stock, or value of the eligible employer;

(3) a corporation, and any party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the taxpayer owns directly, indirectly, beneficially, or constructively at least 50% of the value of the corporation's outstanding stock;

(4) a corporation and any party related to that corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the corporation and all such related parties own in the aggregate at least 50% of the profits, capital, stock, or value of the eligible employer; or

(5) a person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code, except, for purposes of determining whether a person is a related member under this definition, 20% shall be substituted for 5% wherever 5% appears in Section 1563(e) of the Internal Revenue Code.

Section 15. Clean Energy Technology Promotion Fund. The Clean Energy Technology Promotion Fund is created as a special fund in the State treasury. As soon as possible after the first day of each month, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Clean Energy Technology Promotion Fund an amount equal to the incremental income tax for the previous month attributable to a project that is the subject of an agreement.

Section 20. Grants from the Clean Energy Technology Promotion Fund. All moneys in the Clean Energy Technology Promotion Fund, held solely for the benefit of eligible employers, shall be appropriated to the Department to make grants to eligible employers pursuant to agreements.

Section 25. Limitation on grant amounts. The total amount of a grant to an eligible employer shall not exceed the incremental income tax for that employer with respect to an eligible project.

Section 30. Agreements with applicants. The Department shall enter into agreements with an eligible employers who are entitled to grants under this Act. The agreement must include a detailed description of the project that is the subject of the agreement, including the location of the project, the number of jobs created by the project, and project costs. For purposes of this subsection, "project costs" includes the cost of the project incurred or to be incurred by the eligible developer, including infrastructure costs, but excludes the value of State or local incentives, including tax increment financing and deductions, credits, or exemptions afforded to an employer located in an enterprise zone.

Section 90. The State Finance Act is amended by adding Section 5.719 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. The Clean Energy Technology Promotion Fund.

Section 99. Effective date. This Act takes effect upon becoming law.