Illinois General Assembly - Full Text of HB3333
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Full Text of HB3333  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/19/2021, by Rep. Jeff Keicher


New Act

    Creates the Community-Anchored Development Act. Provides that the Department of Commerce and Economic Opportunity may establish a Community-Anchored Development Program to invest in and incentivize the expansion of targeted industries in the State and the continued development of certain areas of the State through the provision of tax credits to anchor institutions. Provides that an "anchor institution" is a governmental entity or nonprofit entity that is a comprehensive health care system, a public research university, a private research university, a major cultural scientific, research, and philanthropic institution, or a public college which is separate from a public research university.

LRB102 14991 HLH 20346 b






HB3333LRB102 14991 HLH 20346 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Community-Anchored Development Act.
6    Section 5. Purpose; tax credit awards. The purpose of this
7Act is for the Department of Commerce and Economic Opportunity
8to facilitate, in partnership with the Department of Revenue
9and the State's key not-for-profit and governmental anchor
10institutions, large-scale development projects with desirable
11employment and geographical characteristics that are able to
12impact a broader community. The General Assembly finds that,
13where a broad commonality of goals exists between anchor
14institutions and the State, the State can effectively utilize
15anchor institutions as investors in, and additional overseers
16of, projects that the Department seeks to incentivize. Under
17this Act, anchor institutions in the areas of education,
18health care, culture, community development, and economic
19development are provided with the opportunity to act as
20investors in targeted development, utilizing proceeds from the
21sale of State tax credits. This approach harnesses the deep
22experience of the numerous anchor institutions in the State,
23institutions that enjoy decades-long relationships with



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1communities around the State, making them ideal partners for
2companies wanting to come to or expand in Illinois.
3    This Act seeks to overcome cost-of-occupancy differences
4Illinois and less expensive options in other jurisdictions for
5specific properties by reducing the cost of occupancy being
6offered to a targeted company.
7    This Act affords an opportunity for anchor institutions
8and the State to become partners in a project, with the State
9receiving a negotiated current or deferred economic return on
10the tax credit investment made by the anchor institution and
11ultimately the return of the amount initially invested.
12Through a competitive application process to the Department, a
13real estate partnership between an anchor institution and a
14partner business will make its case for an amount of tax
15credits necessary for that project to be able to establish
16occupancy costs at a competitive level.
17    The tax credits issued by the Department to an applicant
18anchor institution are to be issued pursuant to a tax credit
19agreement that sets forth negotiated terms on which the
20Department has agreed to issue the credits. The tax credit
21agreement is to include standards relating to the anticipated
22economic results of the community-anchored project and address
23accountability if the community-anchored project fails to meet
24the requirements specified in the tax credit agreement.
25    The General Assembly declares that 2 principal objectives
26underscore the policy approach of this Act: first, an



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1incentive program cannot succeed as a one-size-fits-all
2structure, and therefore an award of tax credits is to be
3thoroughly underwritten by the Department and specifically
4designed for scenarios in which the Department finds that the
5award will be effective; and second, the State is better
6served where the State's financial support is characterized
7and treated as an investment rather than an explicit grant.
8    Section 10. Definitions. As used in this Act:
9    "Anchor institution" means a governmental entity or
10nonprofit entity designated by the Department and having a
11primary mission and specific policy goals that align with
12those of the Department under the program and that is a
13comprehensive health care system, a public research
14university, a private research university, a major cultural
15scientific, research and philanthropic institution, or public
16college which is separate from a public research university.
17    "Community-anchored project" means a capital project that
18is located in an area that is designated by the Department and
19will result in a capital investment of at least $10,000,000 in
20an opportunity zone or in any other area of the State; however,
21a project that is not located in an opportunity zone is to be
22primarily designed to result in the economic expansion of a
23targeted industry in this State.
24    "Department" means the Department of Commerce and Economic



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1    "Opportunity zone" means a federal population census tract
2in this State that was eligible to be designated as a qualified
3opportunity zone pursuant to 26 U.S.C. 1400Z-1.
4    "Partner business" means a corporation, partnership, firm,
5enterprise, franchise, association, trust, sole
6proprietorship, or other legal entity, but shall not include a
7public entity that enters into an agreement with an anchor
8institution to rent and occupy commercial space within a
9community-anchored project. Under the program a partner
10business, subject to agreement with the anchor institution,
11may lease one or more portions of the partner business's space
12in the community-anchored project to one or more other persons
13or entities.
14    Section 15. Program established. The Community-Anchored
15Development Program is established under the jurisdiction of
16the Department. The Department shall administer the program to
17invest in and incentivize the expansion of targeted industries
18in the State and the continued development of certain areas of
19the State through the provision of tax credits to anchor
20institutions. The Department shall certify qualified anchor
21institutions based on the requirements of this Act, and may
22approve tax credits to anchor institutions pursuant to this
23Act. The value of all tax credits approved by the Department to
24anchor institutions under the program shall be subject to the
25limitations set forth in this Section.



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1    The program shall invest in and incentivize the
2establishment of community-anchored projects by anchor
3institutions, independently or in collaboration with one or
4more partner businesses or governmental entities. The
5Department's investment in community-anchored projects shall
6be in the form of the award of tax credits to anchor
8    The Department may award no more than $200,000,000 in tax
9credits under this Act in any State fiscal year.
10    The Department may adopt rules to implement this Act.