Full Text of SB3659 96th General Assembly
SB3659eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Enterprise Zone Act is amended by | 5 |
| changing Section 5.3 as follows: | 6 |
| (20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608) | 7 |
| Sec. 5.3. Certification of Enterprise Zones; Effective | 8 |
| date. | 9 |
| (a) Approval of designated Enterprise Zones shall be made | 10 |
| by the
Department by certification of the designating | 11 |
| ordinance. The Department
shall promptly issue a certificate | 12 |
| for each Enterprise Zone upon its
approval. The certificate | 13 |
| shall be signed by the Director of the
Department, shall make | 14 |
| specific reference to the designating ordinance,
which shall be | 15 |
| attached thereto, and shall be filed in the office of the
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| Secretary of State. A certified copy of the Enterprise Zone | 17 |
| Certificate, or
a duplicate original thereof, shall be recorded | 18 |
| in the office of recorder
of deeds of the county in which the | 19 |
| Enterprise Zone lies. | 20 |
| (b) An Enterprise Zone shall be effective upon its | 21 |
| certification. The
Department shall transmit a copy of the | 22 |
| certification to the Department
of Revenue, and to the | 23 |
| designating municipality or county. |
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| Upon certification of an Enterprise Zone, the terms and | 2 |
| provisions of the
designating ordinance shall be in effect, and | 3 |
| may not be amended or repealed
except in accordance with | 4 |
| Section 5.4. | 5 |
| (c) An Enterprise Zone shall be in effect for 30 calendar | 6 |
| years, or for
a lesser number of years specified in the | 7 |
| certified designating ordinance.
Enterprise Zones shall | 8 |
| terminate at midnight of December 31 of the final
calendar year | 9 |
| of the certified term, except as provided in Section 5.4. The | 10 |
| corporate authorities of the county or municipality that | 11 |
| adopted the ordinance designating the Enterprise Zone may apply | 12 |
| to the Department for a one-time extension of 20 additional | 13 |
| calendar years. | 14 |
| (d) No more than 12 Enterprise Zones may be certified by | 15 |
| the Department
in calendar year 1984, no more than 12 | 16 |
| Enterprise Zones may be certified
by the Department in calendar | 17 |
| year 1985, no more than 13 Enterprise
Zones may be certified by | 18 |
| the Department in calendar year 1986, no
more than 15 | 19 |
| Enterprise Zones may be certified by the Department in
calendar | 20 |
| year 1987, and no more than 20 Enterprise Zones may be | 21 |
| certified
by the Department in calendar year 1990. In other | 22 |
| calendar years, no more
than 13 Enterprise Zones may be | 23 |
| certified by the Department.
The Department may also designate | 24 |
| up to 8 additional Enterprise Zones
outside the regular | 25 |
| application cycle if warranted by the extreme economic
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| circumstances as determined by the Department. The Department |
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| may also
designate one additional Enterprise Zone outside the | 2 |
| regular application
cycle if an aircraft manufacturer agrees to | 3 |
| locate
an aircraft manufacturing facility in the proposed | 4 |
| Enterprise Zone.
Notwithstanding any
other provision of this | 5 |
| Act, no more than 89 Enterprise Zones may be
certified by the | 6 |
| Department for the 10 calendar years commencing with 1983.
The | 7 |
| 7 additional Enterprise Zones authorized by Public Act
86-15 | 8 |
| shall not lie within municipalities or unincorporated areas of
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| counties that abut or are contiguous to Enterprise Zones | 10 |
| certified pursuant
to this Section prior to June 30, 1989. The | 11 |
| 7 additional Enterprise
Zones (excluding the additional | 12 |
| Enterprise Zone which may be designated
outside the regular | 13 |
| application cycle) authorized by Public Act 86-1030
shall not | 14 |
| lie within municipalities or unincorporated areas of counties
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| that abut or are contiguous to Enterprise Zones certified | 16 |
| pursuant to this
Section prior to February 28, 1990. Beginning | 17 |
| in calendar year 2004 and until
December 31, 2008, one | 18 |
| additional enterprise zone may be certified by the
Department. | 19 |
| In any calendar year, the
Department
may not certify more than | 20 |
| 3 Zones located within the same municipality. The
Department | 21 |
| may certify Enterprise Zones in each of the 10 calendar years
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| commencing with 1983. The Department may not certify more than | 23 |
| a total of
18 Enterprise Zones located within the same county | 24 |
| (whether within
municipalities or within unincorporated | 25 |
| territory) for the 10 calendar years
commencing with 1983. | 26 |
| Thereafter, the Department may not certify any
additional |
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| Enterprise Zones, but may amend and rescind certifications of
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| existing Enterprise Zones in accordance with Section 5.4. | 3 |
| (e) Notwithstanding any other provision of law, if (i) the | 4 |
| county board of
any county in which a current military base is | 5 |
| located, in part or in whole, or
in which a military
base that | 6 |
| has been closed within 20 years of the effective date of this
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| amendatory Act of 1998 is located, in part or in whole, adopts | 8 |
| a designating
ordinance in accordance with Section 5 of this | 9 |
| Act to designate the military
base in that county as an | 10 |
| enterprise zone and (ii) the property otherwise
meets the
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| qualifications for an enterprise zone as prescribed in Section | 12 |
| 4 of this Act,
then the Department may certify the designating | 13 |
| ordinance or ordinances, as the
case may be. | 14 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-777, eff. 1-1-03; 93-436, | 15 |
| eff.
1-1-04.) | 16 |
| Section 7. The Retailers' Occupation Tax Act is amended by | 17 |
| changing Section 1f as follows: | 18 |
| (35 ILCS 120/1f) (from Ch. 120, par. 440f) | 19 |
| Sec. 1f. Except for High Impact Businesses, the exemption | 20 |
| stated in
Sections 1d and 1e of this Act shall only apply to | 21 |
| business enterprises which: | 22 |
| (1) either (i) make investments which cause the | 23 |
| creation of a minimum of
200 full-time equivalent jobs in | 24 |
| Illinois or (ii) make investments which
cause the retention |
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| of a minimum of 2000 full-time jobs in Illinois or
(iii) | 2 |
| make investments of a minimum of $40,000,000 and retain at | 3 |
| least
90% of the jobs in place on the date on which the | 4 |
| exemption is granted and
for the duration of the exemption; | 5 |
| and | 6 |
| (2) are located in an Enterprise Zone established | 7 |
| pursuant to the
Illinois Enterprise Zone Act; and | 8 |
| (3) are certified by the Department of Commerce and | 9 |
| Economic Opportunity as
complying with the requirements | 10 |
| specified in clauses (1), (2) and (3). | 11 |
| Any business enterprise seeking to avail itself of the | 12 |
| exemptions stated
in Sections 1d or 1e, or both, shall make | 13 |
| application to the Department of
Commerce and Economic | 14 |
| Opportunity in such form and providing such information
as may | 15 |
| be prescribed by the Department of Commerce and Economic | 16 |
| Opportunity.
However, no business enterprise shall be | 17 |
| required, as a condition for
certification under clause (4) of | 18 |
| this Section, to attest that its decision
to invest under | 19 |
| clause (1) of this Section and to locate under clause (2)
of | 20 |
| this Section is predicated upon the availability of the | 21 |
| exemptions
authorized by Sections 1d or 1e. | 22 |
| The Department of Commerce and Economic Opportunity shall | 23 |
| determine whether
the business enterprise meets the criteria | 24 |
| prescribed in this Section. If
the Department of Commerce and | 25 |
| Economic Opportunity determines that such
business enterprise | 26 |
| meets the criteria, it shall issue a certificate of
eligibility |
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| for exemption to the business enterprise in such form as is
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| prescribed by the Department of Revenue. The Department of | 3 |
| Commerce and
Economic Opportunity shall act upon such | 4 |
| certification requests within 60 days
after receipt of the | 5 |
| application, and shall file with the Department of
Revenue a | 6 |
| copy of each certificate of eligibility for exemption. | 7 |
| The Department of Commerce and Economic Opportunity shall | 8 |
| have the power to
promulgate rules and regulations to carry out | 9 |
| the provisions of this
Section including the power to define | 10 |
| the amounts and types of eligible
investments not specified in | 11 |
| this Section which business enterprises
must make in order to | 12 |
| receive the exemptions stated in Sections 1d and 1e
of this | 13 |
| Act; and to require that any business enterprise that is | 14 |
| granted a
tax exemption repay the exempted tax if the business | 15 |
| enterprise fails to
comply with the terms and conditions of the | 16 |
| certification. | 17 |
| Such certificate of eligibility for exemption shall be | 18 |
| presented by the
business enterprise to its supplier when | 19 |
| making the initial purchase of
tangible personal property for | 20 |
| which an exemption is granted by Section 1d or
Section 1e, or | 21 |
| both, together with a certification by the business enterprise
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| that such tangible personal property is exempt from taxation | 23 |
| under Section
1d or Section 1e and by indicating the exempt | 24 |
| status of each subsequent
purchase on the face of the purchase | 25 |
| order. | 26 |
| The Department of Commerce and Economic Opportunity shall |
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| determine the
period during which such exemption from the taxes | 2 |
| imposed under this Act is
in effect which shall not exceed 50 | 3 |
| 20 years. | 4 |
| (Source: P.A. 94-793, eff. 5-19-06.) | 5 |
| Section 10. The Public Utilities Act is amended by changing | 6 |
| Section 9-222.1 as follows: | 7 |
| (220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1) | 8 |
| Sec. 9-222.1. A business enterprise which is located within | 9 |
| an area
designated by a county or municipality as an enterprise | 10 |
| zone pursuant to
the Illinois Enterprise Zone Act or located in | 11 |
| a federally designated
Foreign Trade Zone or Sub-Zone shall be | 12 |
| exempt from the additional charges
added to the business | 13 |
| enterprise's utility bills as a pass-on of municipal
and State | 14 |
| utility taxes under Sections 9-221 and 9-222 of this Act, to
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| the extent such charges are exempted by ordinance adopted in | 16 |
| accordance
with paragraph (e) of Section 8-11-2 of the Illinois | 17 |
| Municipal Code in the
case of municipal utility taxes, and to | 18 |
| the extent such
charges are exempted by the percentage | 19 |
| specified by the Department of
Commerce and Economic | 20 |
| Opportunity in the case of State utility taxes, provided
such | 21 |
| business enterprise meets the following criteria: | 22 |
| (1) it (i) makes investments which cause the creation | 23 |
| of a
minimum of 200 full-time equivalent jobs in Illinois; | 24 |
| (ii) makes investments
of at least $175,000,000 which cause |
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| the creation of a minimum of 150 full-time
equivalent jobs | 2 |
| in Illinois; (iii) makes investments that cause the | 3 |
| retention of a minimum of 300 full-time equivalent jobs in | 4 |
| the manufacturing sector, as defined by the North American | 5 |
| Industry Classification System, in an area in Illinois in | 6 |
| which the unemployment rate is above 9% and makes an | 7 |
| application to the Department within 3 months after the | 8 |
| effective date of this amendatory Act of the 96th General | 9 |
| Assembly and certifies relocation of the 300 full-time | 10 |
| equivalent jobs within 36 months after the application; | 11 |
| (iv) makes
investments which cause the retention of a | 12 |
| minimum of 1,000 full-time jobs
in Illinois; or (v) makes | 13 |
| an application to the Department within 2 months after the | 14 |
| effective date of this amendatory Act of the 96th General | 15 |
| Assembly and makes investments that cause the retention of | 16 |
| a minimum of 500 full-time equivalent jobs in 2009 and | 17 |
| 2010, 675 full-time jobs in Illinois in 2011, 850 full-time | 18 |
| jobs in 2012, and 1,000 full-time jobs in 2013, in the | 19 |
| manufacturing sector as defined by the North American | 20 |
| Industry Classification System; and | 21 |
| (2) it is either (i) located in an Enterprise Zone | 22 |
| established
pursuant to the Illinois Enterprise Zone Act or | 23 |
| (ii)
located in a federally designated Foreign Trade Zone | 24 |
| or Sub-Zone and is
designated a High Impact Business by the | 25 |
| Department of Commerce and
Economic Opportunity; and | 26 |
| (3) it is certified by the Department of Commerce and |
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| Economic Opportunity as complying with the requirements | 2 |
| specified in clauses (1) and (2)
of this Section. | 3 |
| The Department of Commerce and Economic Opportunity shall | 4 |
| determine the
period during which such exemption from the | 5 |
| charges imposed under Section
9-222 is in effect which shall
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| not exceed 50 30 years or the certified term of the enterprise | 7 |
| zone (including any extensions granted under subsection (c) of | 8 |
| Section 5.3 of the Illinois Enterprise Zone Act) ,
whichever | 9 |
| period is shorter, except that the exemption period for a | 10 |
| business enterprise qualifying under item (iii) of clause (1) | 11 |
| of this Section shall not exceed 50 30 years. | 12 |
| The Department of Commerce and Economic Opportunity shall | 13 |
| have the power to
promulgate rules and regulations to carry out | 14 |
| the provisions of this
Section including procedures for | 15 |
| complying with the requirements specified
in clauses (1) and | 16 |
| (2) of this Section and procedures
for applying for the | 17 |
| exemptions authorized under this Section; to
define the amounts | 18 |
| and types of eligible investments which
business enterprises | 19 |
| must make in order to receive State utility tax
exemptions | 20 |
| pursuant to Sections 9-222 and 9-222.1 of this Act; to approve
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| such utility tax exemptions for business enterprises whose | 22 |
| investments are
not yet placed in service; and to require that | 23 |
| business enterprises granted
tax exemptions repay the exempted | 24 |
| tax should the business enterprise fail
to comply with the | 25 |
| terms and conditions of the certification. However, no
business | 26 |
| enterprise shall be required, as a condition for certification
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| under clause (3) of this Section, to attest that its
decision | 2 |
| to invest under clause (1) of this Section and
to locate under | 3 |
| clause (2) of this Section is predicated
upon the availability | 4 |
| of the exemptions authorized by this Section. | 5 |
| A business enterprise shall be exempt, in whole
or in part, | 6 |
| from the pass-on charges of municipal utility taxes imposed
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| under Section 9-221, only if it meets the criteria
specified in | 8 |
| clauses (1) through (3) of this Section and
the municipality | 9 |
| has adopted an ordinance authorizing the
exemption under | 10 |
| paragraph (e) of Section 8-11-2 of the Illinois Municipal
Code. | 11 |
| Upon certification of the business enterprises by the
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| Department of Commerce and Economic Opportunity, the | 13 |
| Department of Commerce
and Economic Opportunity shall notify | 14 |
| the Department of Revenue of such
certification. The Department | 15 |
| of Revenue shall notify the public utilities
of the exemption | 16 |
| status of business enterprises from the pass-on charges of
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| State and municipal utility taxes. Such exemption status shall | 18 |
| be
effective within 3 months after certification of the | 19 |
| business enterprise. | 20 |
| (Source: P.A. 96-716, eff. 8-25-09; 96-865, eff. 1-21-10.)
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