Full Text of SB0184 97th General Assembly
SB0184sam001 97TH GENERAL ASSEMBLY | Sen. David Koehler Filed: 5/31/2012
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| 1 | | AMENDMENT TO SENATE BILL 184
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 184 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Economic Development for a Growing Economy | 5 | | Tax Credit Act is amended by changing Sections 5-5, 5-15, and | 6 | | 5-45 as follows:
| 7 | | (35 ILCS 10/5-5)
| 8 | | Sec. 5-5. Definitions. As used in this Act:
| 9 | | "Agreement" means the Agreement between a Taxpayer and the | 10 | | Department under
the provisions of Section 5-50 of this Act.
| 11 | | "Applicant" means a Taxpayer that is operating a business | 12 | | located or that
the Taxpayer plans to locate within the State | 13 | | of Illinois and that is engaged
in interstate or intrastate | 14 | | commerce for the purpose of manufacturing,
processing, | 15 | | assembling, warehousing, or distributing products, conducting
| 16 | | research and development, providing tourism services, or |
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| 1 | | providing services
in interstate commerce, office industries, | 2 | | or agricultural processing, but
excluding retail, retail food, | 3 | | health, or professional services.
"Applicant" does not include | 4 | | a Taxpayer who closes or
substantially reduces an operation at | 5 | | one location in the State and relocates
substantially the same | 6 | | operation to another location in the State. This does
not | 7 | | prohibit a Taxpayer from expanding its operations at another | 8 | | location in
the State, provided that existing operations of a | 9 | | similar nature located within
the State are not closed or | 10 | | substantially reduced. This also does not prohibit
a Taxpayer | 11 | | from moving its operations from one location in the State to | 12 | | another
location in the State for the purpose of expanding the | 13 | | operation provided that
the Department determines that | 14 | | expansion cannot reasonably be accommodated
within the | 15 | | municipality in which the business is located, or in the case | 16 | | of a
business located in an incorporated area of the county, | 17 | | within the county in
which the business is located, after | 18 | | conferring with the chief elected
official of the municipality | 19 | | or county and taking into consideration any
evidence offered by | 20 | | the municipality or county regarding the ability to
accommodate | 21 | | expansion within the municipality or county.
| 22 | | "Committee" means the Illinois Business Investment | 23 | | Committee created under
Section 5-25 of this Act within the | 24 | | Illinois Economic Development Board.
| 25 | | "Credit" means the amount agreed to between the Department | 26 | | and Applicant
under this Act , but not to exceed the Incremental |
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| 1 | | Income Tax attributable to
the Applicant's project .
| 2 | | "Department" means the Department of Commerce and Economic | 3 | | Opportunity.
| 4 | | "Director" means the Director of Commerce and Economic | 5 | | Opportunity.
| 6 | | "Full-time Employee" means an individual who is employed | 7 | | for consideration
for at least 35 hours each week or who | 8 | | renders any other standard of service
generally accepted by | 9 | | industry custom or practice as full-time employment. An | 10 | | individual for whom a W-2 is issued by a Professional Employer | 11 | | Organization (PEO) is a full-time employee if employed in the | 12 | | service of the Applicant for consideration for at least 35 | 13 | | hours each week or who renders any other standard of service | 14 | | generally accepted by industry custom or practice as full-time | 15 | | employment to Applicant.
| 16 | | "Incremental Income Tax" means the total amount withheld | 17 | | during the taxable
year from the compensation of New Employees | 18 | | under Article 7 of the Illinois
Income Tax Act arising from | 19 | | employment at a project that is the subject of an
Agreement.
| 20 | | "New Employee" means:
| 21 | | (a) A Full-time Employee first employed by a Taxpayer | 22 | | in the project
that is the subject of an Agreement and who | 23 | | is hired after the Taxpayer
enters into the tax credit | 24 | | Agreement.
| 25 | | (b) The term "New Employee" does not include:
| 26 | | (1) an employee of the Taxpayer who performs a job |
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| 1 | | that was previously
performed by another employee, if | 2 | | that job existed for at least 6
months before hiring | 3 | | the employee;
| 4 | | (2) an employee of the Taxpayer who was previously | 5 | | employed in
Illinois by a Related Member of the | 6 | | Taxpayer and whose employment was
shifted to the | 7 | | Taxpayer after the Taxpayer entered into the tax credit
| 8 | | Agreement; or
| 9 | | (3) a child, grandchild, parent, or spouse, other | 10 | | than a spouse who
is legally separated from the | 11 | | individual, of any individual who has a direct
or an | 12 | | indirect ownership interest of at least 5% in the | 13 | | profits, capital, or
value of the Taxpayer.
| 14 | | (c) Notwithstanding paragraph (1) of subsection (b), | 15 | | an employee may be
considered a New Employee under the | 16 | | Agreement if the employee performs a job
that was | 17 | | previously performed by an employee who was:
| 18 | | (1) treated under the Agreement as a New Employee; | 19 | | and
| 20 | | (2) promoted by the Taxpayer to another job.
| 21 | | (d) Notwithstanding subsection (a), the Department may | 22 | | award Credit to an
Applicant with respect to an employee | 23 | | hired prior to the date of the Agreement
if:
| 24 | | (1) the Applicant is in receipt of a letter from | 25 | | the Department stating
an
intent to enter into a credit | 26 | | Agreement;
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| 1 | | (2) the letter described in paragraph (1) is issued | 2 | | by the
Department not later than 15 days after the | 3 | | effective date of this Act; and
| 4 | | (3) the employee was hired after the date the | 5 | | letter described in
paragraph (1) was issued.
| 6 | | "Noncompliance Date" means, in the case of a Taxpayer that | 7 | | is not complying
with the requirements of the Agreement or the | 8 | | provisions of this Act, the day
following the last date upon | 9 | | which the Taxpayer was in compliance with the
requirements of | 10 | | the Agreement and the provisions of this Act, as determined
by | 11 | | the Director, pursuant to Section 5-65.
| 12 | | "Pass Through Entity" means an entity that is exempt from | 13 | | the tax under
subsection (b) or (c) of Section 205 of the | 14 | | Illinois Income Tax Act.
| 15 | | "Professional Employer Organization" (PEO) means an | 16 | | employee leasing company, as defined in Section 206.1(A)(2) of | 17 | | the Illinois Unemployment Insurance Act.
| 18 | | "Related Member" means a person that, with respect to the | 19 | | Taxpayer during
any portion of the taxable year, is any one of | 20 | | the following:
| 21 | | (1) An individual stockholder, if the stockholder and | 22 | | the members of the
stockholder's family (as defined in | 23 | | Section 318 of the Internal Revenue Code)
own directly, | 24 | | indirectly, beneficially, or constructively, in the | 25 | | aggregate,
at least 50% of the value of the Taxpayer's | 26 | | outstanding stock.
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| 1 | | (2) A partnership, estate, or trust and any partner or | 2 | | beneficiary,
if the partnership, estate, or trust, and its | 3 | | partners or beneficiaries own
directly, indirectly, | 4 | | beneficially, or constructively, in the aggregate, at
| 5 | | least 50% of the profits, capital, stock, or value of the
| 6 | | Taxpayer.
| 7 | | (3) A corporation, and any party related to the | 8 | | corporation in a manner
that would require an attribution | 9 | | of stock from the corporation to the
party or from the | 10 | | party to the corporation under the attribution rules
of | 11 | | Section 318 of the Internal Revenue Code, if the Taxpayer | 12 | | owns
directly, indirectly, beneficially, or constructively | 13 | | at least
50% of the value of the corporation's outstanding | 14 | | stock.
| 15 | | (4) A corporation and any party related to that | 16 | | corporation in a manner
that would require an attribution | 17 | | of stock from the corporation to the party or
from the | 18 | | party to the corporation under the attribution rules of | 19 | | Section 318 of
the Internal Revenue Code, if the | 20 | | corporation and all such related parties own
in the | 21 | | aggregate at least 50% of the profits, capital, stock, or | 22 | | value of the
Taxpayer.
| 23 | | (5) A person to or from whom there is attribution of | 24 | | stock ownership
in accordance with Section 1563(e) of the | 25 | | Internal Revenue Code, except,
for purposes of determining | 26 | | whether a person is a Related Member under
this paragraph, |
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| 1 | | 20% shall be substituted for 5% wherever 5% appears in
| 2 | | Section 1563(e) of the Internal Revenue Code.
| 3 | | "Taxpayer" means an individual, corporation, partnership, | 4 | | or other entity
that has any Illinois Income Tax liability.
| 5 | | (Source: P.A. 94-793, eff. 5-19-06; 95-375, eff. 8-23-07.)
| 6 | | (35 ILCS 10/5-15) | 7 | | (Text of Section before amendment by P.A. 97-636 ) | 8 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | 9 | | forth in this
Act, a Taxpayer is
entitled to a Credit against | 10 | | or, as described in subsection (g) of this Section, a payment | 11 | | towards taxes imposed pursuant to subsections (a) and (b)
of | 12 | | Section 201 of the Illinois
Income Tax Act that may be imposed | 13 | | on the Taxpayer for a taxable year beginning
on or
after | 14 | | January 1, 1999,
if the Taxpayer is awarded a Credit by the | 15 | | Department under this Act for that
taxable year. | 16 | | (a) The Department shall make Credit awards under this Act | 17 | | to foster job
creation and retention in Illinois. | 18 | | (b) A person that proposes a project to create new jobs in | 19 | | Illinois must
enter into an Agreement with the
Department for | 20 | | the Credit under this Act. | 21 | | (c) The Credit shall be claimed for the taxable years | 22 | | specified in the
Agreement. | 23 | | (d) Except as provided in subsection (d-1), the The Credit | 24 | | shall not exceed the Incremental Income Tax attributable to
the | 25 | | project that is the subject of the Agreement. |
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| 1 | | (d-1) In the case of a Taxpayer who applies for an | 2 | | Agreement on or after the effective date of this amendatory Act | 3 | | of the 97th General Assembly and prior to December 31, 2012, | 4 | | and who makes a capital investment of at least $1,000,000,000 | 5 | | in this State in connection with the project that is the | 6 | | subject of the Agreement, the Credit may exceed the Incremental | 7 | | Income Tax but shall not exceed 1% of the capital investment | 8 | | attributable to the project that is the subject of the | 9 | | Agreement. | 10 | | (e) Nothing herein shall prohibit a Tax Credit Award to an | 11 | | Applicant that uses a PEO if all other award criteria are | 12 | | satisfied.
| 13 | | (f) In lieu of the Credit allowed under this Act against | 14 | | the taxes imposed pursuant to subsections (a) and (b) of | 15 | | Section 201 of the Illinois Income Tax Act for any taxable year | 16 | | ending on or after December 31, 2009, the Taxpayer may elect to | 17 | | claim the Credit against its obligation to pay over withholding | 18 | | under Section 704A of the Illinois Income Tax Act. | 19 | | (1) The election under this subsection (f) may be made | 20 | | only by a Taxpayer that (i) is primarily engaged in one of | 21 | | the following business activities: water purification and | 22 | | treatment, motor vehicle metal stamping, automobile | 23 | | manufacturing, automobile and light duty motor vehicle | 24 | | manufacturing, motor vehicle manufacturing, light truck | 25 | | and utility vehicle manufacturing, heavy duty truck | 26 | | manufacturing, motor vehicle body manufacturing, cable |
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| 1 | | television infrastructure design or manufacturing, or | 2 | | wireless telecommunication or computing terminal device | 3 | | design or manufacturing for use on public networks and (ii) | 4 | | meets the following criteria: | 5 | | (A) the Taxpayer (i) had an Illinois net loss or an | 6 | | Illinois net loss deduction under Section 207 of the | 7 | | Illinois Income Tax Act for the taxable year in which | 8 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 9 | | full-time employees in this State during the taxable | 10 | | year in which the Credit is awarded, (iii) has an | 11 | | Agreement under this Act on December 14, 2009 (the | 12 | | effective date of Public Act 96-834), and (iv) is in | 13 | | compliance with all provisions of that Agreement; | 14 | | (B) the Taxpayer (i) had an Illinois net loss or an | 15 | | Illinois net loss deduction under Section 207 of the | 16 | | Illinois Income Tax Act for the taxable year in which | 17 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 18 | | full-time employees in this State during the taxable | 19 | | year in which the Credit is awarded, and (iii) has | 20 | | applied for an Agreement within 365 days after December | 21 | | 14, 2009 (the effective date of Public Act 96-834); | 22 | | (C) the Taxpayer (i) had an Illinois net operating | 23 | | loss carryforward under Section 207 of the Illinois | 24 | | Income Tax Act in a taxable year ending during calendar | 25 | | year 2008, (ii) has applied for an Agreement within 150 | 26 | | days after June 4, 2010 ( the effective date of Public |
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| 1 | | Act 96-905) this amendatory Act of the 96th General | 2 | | Assembly , (iii) creates at least 400 new jobs in | 3 | | Illinois, (iv) retains at least 2,000 jobs in Illinois | 4 | | that would have been at risk of relocation out of | 5 | | Illinois over a 10-year period, and (v) makes a capital | 6 | | investment of at least $75,000,000; | 7 | | (D) the Taxpayer (i) had an Illinois net operating | 8 | | loss carryforward under Section 207 of the Illinois | 9 | | Income Tax Act in a taxable year ending during calendar | 10 | | year 2009, (ii) has applied for an Agreement within 150 | 11 | | days after March 4, 2011 ( the effective date of Public | 12 | | Act 96-1534) this amendatory Act of the 96th General | 13 | | Assembly , (iii) creates at least 150 new jobs, (iv) | 14 | | retains at least 1,000 jobs in Illinois that would have | 15 | | been at risk of relocation out of Illinois over a | 16 | | 10-year period, and (v) makes a capital investment of | 17 | | at least $57,000,000; or | 18 | | (E) the Taxpayer (i) employed at least 2,500 | 19 | | full-time employees in the State during the year in | 20 | | which the Credit is awarded, (ii) commits to make at | 21 | | least $500,000,000 in combined capital improvements | 22 | | and project costs under the Agreement, (iii) applies | 23 | | for an Agreement between January 1, 2011 and June 30, | 24 | | 2011, (iv) executes an Agreement for the Credit during | 25 | | calendar year 2011, and (v) was incorporated no more | 26 | | than 5 years before the filing of an application for an |
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| 1 | | Agreement. | 2 | | (1.5) The election under this subsection (f) may also | 3 | | be made by a Taxpayer for any Credit awarded pursuant to an | 4 | | agreement that was executed between January 1, 2011 and | 5 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in | 6 | | the manufacture of inner tubes or tires, or both, from | 7 | | natural and synthetic rubber, (ii) employs a minimum of | 8 | | 2,400 full-time employees in Illinois at the time of | 9 | | application, (iii) creates at least 350 full-time jobs and | 10 | | retains at least 250 full-time jobs in Illinois that would | 11 | | have been at risk of being created or retained outside of | 12 | | Illinois, and (iv) makes a capital investment of at least | 13 | | $200,000,000 at the project location. | 14 | | (2) An election under this subsection shall allow the | 15 | | credit to be taken against payments otherwise due under | 16 | | Section 704A of the Illinois Income Tax Act during the | 17 | | first calendar year beginning after the end of the taxable | 18 | | year in which the credit is awarded under this Act. | 19 | | (3) The election shall be made in the form and manner | 20 | | required by the Illinois Department of Revenue and, once | 21 | | made, shall be irrevocable. | 22 | | (4) If a Taxpayer who meets the requirements of | 23 | | subparagraph (A) of paragraph (1) of this subsection (f) | 24 | | elects to claim the Credit against its withholdings as | 25 | | provided in this subsection (f), then, on and after the | 26 | | date of the election, the terms of the Agreement between |
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| 1 | | the Taxpayer and the Department may not be further amended | 2 | | during the term of the Agreement. | 3 | | (g) A pass-through entity that has been awarded a credit | 4 | | under this Act, its shareholders, or its partners may treat | 5 | | some or all of the credit awarded pursuant to this Act as a tax | 6 | | payment for purposes of the Illinois Income Tax Act. The term | 7 | | "tax payment" means a payment as described in Article 6 or | 8 | | Article 8 of the Illinois Income Tax Act or a composite payment | 9 | | made by a pass-through entity on behalf of any of its | 10 | | shareholders or partners to satisfy such shareholders' or | 11 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 12 | | Section 201 of the Illinois Income Tax Act. In no event shall | 13 | | the amount of the award credited pursuant to this Act exceed | 14 | | the Illinois income tax liability of the pass-through entity or | 15 | | its shareholders or partners for the taxable year. | 16 | | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | 17 | | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | 18 | | 3-4-11; 97-2, eff. 5-6-11.) | 19 | | (Text of Section after amendment by P.A. 97-636 ) | 20 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | 21 | | forth in this
Act, a Taxpayer is
entitled to a Credit against | 22 | | or, as described in subsection (g) of this Section, a payment | 23 | | towards taxes imposed pursuant to subsections (a) and (b)
of | 24 | | Section 201 of the Illinois
Income Tax Act that may be imposed | 25 | | on the Taxpayer for a taxable year beginning
on or
after |
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| 1 | | January 1, 1999,
if the Taxpayer is awarded a Credit by the | 2 | | Department under this Act for that
taxable year. | 3 | | (a) The Department shall make Credit awards under this Act | 4 | | to foster job
creation and retention in Illinois. | 5 | | (b) A person that proposes a project to create new jobs in | 6 | | Illinois must
enter into an Agreement with the
Department for | 7 | | the Credit under this Act. | 8 | | (c) The Credit shall be claimed for the taxable years | 9 | | specified in the
Agreement. | 10 | | (d) Except as provided in subsection (d-1), the The Credit | 11 | | shall not exceed the Incremental Income Tax attributable to
the | 12 | | project that is the subject of the Agreement. | 13 | | (d-1) In the case of a Taxpayer who applies for an | 14 | | Agreement on or after the effective date of this amendatory Act | 15 | | of the 97th General Assembly and prior to December 31, 2012, | 16 | | and who makes a capital investment of at least $1,000,000,000 | 17 | | in this State in connection with the project that is the | 18 | | subject of the Agreement, the Credit may exceed the Incremental | 19 | | Income Tax but shall not exceed 1% of the capital investment | 20 | | attributable to the project that is the subject of the | 21 | | Agreement. | 22 | | (e) Nothing herein shall prohibit a Tax Credit Award to an | 23 | | Applicant that uses a PEO if all other award criteria are | 24 | | satisfied.
| 25 | | (f) In lieu of the Credit allowed under this Act against | 26 | | the taxes imposed pursuant to subsections (a) and (b) of |
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| 1 | | Section 201 of the Illinois Income Tax Act for any taxable year | 2 | | ending on or after December 31, 2009, the Taxpayer may elect to | 3 | | claim the Credit against its obligation to pay over withholding | 4 | | under Section 704A of the Illinois Income Tax Act. | 5 | | (1) The election under this subsection (f) may be made | 6 | | only by a Taxpayer that (i) is primarily engaged in one of | 7 | | the following business activities: water purification and | 8 | | treatment, motor vehicle metal stamping, automobile | 9 | | manufacturing, automobile and light duty motor vehicle | 10 | | manufacturing, motor vehicle manufacturing, light truck | 11 | | and utility vehicle manufacturing, heavy duty truck | 12 | | manufacturing, motor vehicle body manufacturing, cable | 13 | | television infrastructure design or manufacturing, or | 14 | | wireless telecommunication or computing terminal device | 15 | | design or manufacturing for use on public networks and (ii) | 16 | | meets the following criteria: | 17 | | (A) the Taxpayer (i) had an Illinois net loss or an | 18 | | Illinois net loss deduction under Section 207 of the | 19 | | Illinois Income Tax Act for the taxable year in which | 20 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 21 | | full-time employees in this State during the taxable | 22 | | year in which the Credit is awarded, (iii) has an | 23 | | Agreement under this Act on December 14, 2009 (the | 24 | | effective date of Public Act 96-834), and (iv) is in | 25 | | compliance with all provisions of that Agreement; | 26 | | (B) the Taxpayer (i) had an Illinois net loss or an |
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| 1 | | Illinois net loss deduction under Section 207 of the | 2 | | Illinois Income Tax Act for the taxable year in which | 3 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 4 | | full-time employees in this State during the taxable | 5 | | year in which the Credit is awarded, and (iii) has | 6 | | applied for an Agreement within 365 days after December | 7 | | 14, 2009 (the effective date of Public Act 96-834); | 8 | | (C) the Taxpayer (i) had an Illinois net operating | 9 | | loss carryforward under Section 207 of the Illinois | 10 | | Income Tax Act in a taxable year ending during calendar | 11 | | year 2008, (ii) has applied for an Agreement within 150 | 12 | | days after June 4, 2010 ( the effective date of Public | 13 | | Act 96-905) this amendatory Act of the 96th General | 14 | | Assembly , (iii) creates at least 400 new jobs in | 15 | | Illinois, (iv) retains at least 2,000 jobs in Illinois | 16 | | that would have been at risk of relocation out of | 17 | | Illinois over a 10-year period, and (v) makes a capital | 18 | | investment of at least $75,000,000; | 19 | | (D) the Taxpayer (i) had an Illinois net operating | 20 | | loss carryforward under Section 207 of the Illinois | 21 | | Income Tax Act in a taxable year ending during calendar | 22 | | year 2009, (ii) has applied for an Agreement within 150 | 23 | | days after March 4, 2011 ( the effective date of Public | 24 | | Act 96-1534) this amendatory Act of the 96th General | 25 | | Assembly , (iii) creates at least 150 new jobs, (iv) | 26 | | retains at least 1,000 jobs in Illinois that would have |
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| 1 | | been at risk of relocation out of Illinois over a | 2 | | 10-year period, and (v) makes a capital investment of | 3 | | at least $57,000,000; or | 4 | | (E) the Taxpayer (i) employed at least 2,500 | 5 | | full-time employees in the State during the year in | 6 | | which the Credit is awarded, (ii) commits to make at | 7 | | least $500,000,000 in combined capital improvements | 8 | | and project costs under the Agreement, (iii) applies | 9 | | for an Agreement between January 1, 2011 and June 30, | 10 | | 2011, (iv) executes an Agreement for the Credit during | 11 | | calendar year 2011, and (v) was incorporated no more | 12 | | than 5 years before the filing of an application for an | 13 | | Agreement. | 14 | | (1.5) The election under this subsection (f) may also | 15 | | be made by a Taxpayer for any Credit awarded pursuant to an | 16 | | agreement that was executed between January 1, 2011 and | 17 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in | 18 | | the manufacture of inner tubes or tires, or both, from | 19 | | natural and synthetic rubber, (ii) employs a minimum of | 20 | | 2,400 full-time employees in Illinois at the time of | 21 | | application, (iii) creates at least 350 full-time jobs and | 22 | | retains at least 250 full-time jobs in Illinois that would | 23 | | have been at risk of being created or retained outside of | 24 | | Illinois, and (iv) makes a capital investment of at least | 25 | | $200,000,000 at the project location. | 26 | | (1.6) The election under this subsection (f) may also |
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| 1 | | be made by a Taxpayer for any Credit awarded pursuant to an | 2 | | agreement that was executed within 150 days after June 1, | 3 | | 2012 ( the effective date of Public Act 97-636) this | 4 | | amendatory Act of the 97th General Assembly , if the | 5 | | Taxpayer (i) is primarily engaged in the operation of a | 6 | | discount department store, (ii) maintains its corporate | 7 | | headquarters in Illinois, (iii) employs a minimum of 4,250 | 8 | | full-time employees at its corporate headquarters in | 9 | | Illinois at the time of application, (iv) retains at least | 10 | | 4,250 full-time jobs in Illinois that would have been at | 11 | | risk of being relocated outside of Illinois, (v) had a | 12 | | minimum of $40,000,000,000 in total revenue in 2010, and | 13 | | (vi) makes a capital investment of at least $300,000,000 at | 14 | | the project location. | 15 | | (1.7) Notwithstanding any other provision of law, the | 16 | | election under this subsection (f) may also be made by a | 17 | | Taxpayer for any Credit awarded pursuant to an agreement | 18 | | that was executed or applied for on or after July 1, 2011 | 19 | | and on or before March 31, 2012, if the Taxpayer is | 20 | | primarily engaged in the manufacture of original and | 21 | | aftermarket filtration parts and products for automobiles, | 22 | | motor vehicles, light duty motor vehicles, light trucks and | 23 | | utility vehicles, and heavy duty trucks, (ii) employs a | 24 | | minimum of 1,000 full-time employees in Illinois at the | 25 | | time of application, (iii) creates at least 250 full-time | 26 | | jobs in Illinois, (iv) relocates its corporate |
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| 1 | | headquarters to Illinois from another state, and (v) makes | 2 | | a capital investment of at least $4,000,000 at the project | 3 | | location. | 4 | | (2) An election under this subsection shall allow the | 5 | | credit to be taken against payments otherwise due under | 6 | | Section 704A of the Illinois Income Tax Act during the | 7 | | first calendar year beginning after the end of the taxable | 8 | | year in which the credit is awarded under this Act. | 9 | | (3) The election shall be made in the form and manner | 10 | | required by the Illinois Department of Revenue and, once | 11 | | made, shall be irrevocable. | 12 | | (4) If a Taxpayer who meets the requirements of | 13 | | subparagraph (A) of paragraph (1) of this subsection (f) | 14 | | elects to claim the Credit against its withholdings as | 15 | | provided in this subsection (f), then, on and after the | 16 | | date of the election, the terms of the Agreement between | 17 | | the Taxpayer and the Department may not be further amended | 18 | | during the term of the Agreement. | 19 | | (g) A pass-through entity that has been awarded a credit | 20 | | under this Act, its shareholders, or its partners may treat | 21 | | some or all of the credit awarded pursuant to this Act as a tax | 22 | | payment for purposes of the Illinois Income Tax Act. The term | 23 | | "tax payment" means a payment as described in Article 6 or | 24 | | Article 8 of the Illinois Income Tax Act or a composite payment | 25 | | made by a pass-through entity on behalf of any of its | 26 | | shareholders or partners to satisfy such shareholders' or |
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| 1 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 2 | | Section 201 of the Illinois Income Tax Act. In no event shall | 3 | | the amount of the award credited pursuant to this Act exceed | 4 | | the Illinois income tax liability of the pass-through entity or | 5 | | its shareholders or partners for the taxable year. | 6 | | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | 7 | | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | 8 | | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
| 9 | | (35 ILCS 10/5-45)
| 10 | | Sec. 5-45. Amount and duration of the credit.
| 11 | | (a) The Department shall
determine the amount and
duration | 12 | | of the credit awarded under this Act. The duration of the
| 13 | | credit may not exceed 10 taxable years.
The credit may be | 14 | | stated as
a percentage of the Incremental Income Tax or, in the | 15 | | case of an applicant that qualifies under subsection (d-1) of | 16 | | Section 5-15, of the capital investment attributable
to the | 17 | | applicant's project and may include a fixed dollar limitation.
| 18 | | (b) Notwithstanding subsection (a),
and except as the | 19 | | credit may be applied in a carryover year pursuant to Section
| 20 | | 211(4) of the Illinois Income Tax Act, the credit may be | 21 | | applied against the
State income tax liability in more than 10 | 22 | | taxable years but not in more than
15 taxable years for an | 23 | | eligible business
that (i) qualifies under this Act
and the | 24 | | Corporate Headquarters Relocation Act and has in fact | 25 | | undertaken a
qualifying project within the time frame specified |
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| 1 | | by the Department of
Commerce and Economic Opportunity under | 2 | | that Act, and (ii) applies against its
State income tax | 3 | | liability, during the entire 15-year
period, no more than 60% | 4 | | of the maximum
credit per year that would otherwise be | 5 | | available under this Act.
| 6 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 7 | | Section 95. No acceleration or delay. Where this Act makes | 8 | | changes in a statute that is represented in this Act by text | 9 | | that is not yet or no longer in effect (for example, a Section | 10 | | represented by multiple versions), the use of that text does | 11 | | not accelerate or delay the taking effect of (i) the changes | 12 | | made by this Act or (ii) provisions derived from any other | 13 | | Public Act. | 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.".
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