Full Text of HB1336 98th General Assembly
HB1336ham002 98TH GENERAL ASSEMBLY | Rep. Jack D. Franks Filed: 3/12/2013
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| 1 | | AMENDMENT TO HOUSE BILL 1336
| 2 | | AMENDMENT NO. ______. Amend House Bill 1336 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Economic Development Board Act is | 5 | | amended by changing Sections 3 and 4 as follows:
| 6 | | (20 ILCS 3965/3) (from Ch. 127, par. 3953)
| 7 | | Sec. 3. Illinois Economic Development Board; composition. | 8 | | The board shall be composed of citizens from both the private
| 9 | | and public sectors who are actively engaged in organizations | 10 | | and businesses
that support economic expansion, industry | 11 | | enhancement and job creation.
The board shall be composed of 9 | 12 | | members appointed by the Governor, with the advice and consent | 13 | | of the Senate. Each member shall have experience in accounting | 14 | | or finance. Members shall be appointed so that no more than 5 | 15 | | members are affiliated with the same political party. the | 16 | | following persons:
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| 1 | | (a) the Governor or his or her designee;
| 2 | | (b) four members of the General Assembly, one each | 3 | | appointed
by the
President
of the Senate, the Speaker of | 4 | | the House of Representatives, and the minority
leaders of | 5 | | the Senate and House of Representatives;
| 6 | | (c) 20 members appointed by the Governor including | 7 | | representatives of
small business, minority owned | 8 | | companies, women owned companies, manufacturing,
economic | 9 | | development
professionals, and citizens at large.
| 10 | | (d) (blank);
| 11 | | (e) (blank);
| 12 | | (f) (blank);
| 13 | | (g) (blank);
| 14 | | (h) (blank);
| 15 | | (i) (blank);
| 16 | | (j) (blank);
| 17 | | (k) (blank);
| 18 | | (l) (blank);
| 19 | | (m) (blank).
| 20 | | The Director of Commerce and Economic Opportunity , the | 21 | | Director of Revenue, and the State Treasurer shall
serve as | 22 | | ex-officio members an ex officio member of the board.
| 23 | | The Governor shall appoint the members of the board | 24 | | specified in subsection
(c) of this Section, subject to the | 25 | | advice and consent of the
Senate, within 30 days after the | 26 | | effective date
of this amendatory Act of the 98th General |
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| 1 | | Assembly Act . The first meeting of the board shall occur within | 2 | | 60 days
after the effective date of this amendatory Act of the | 3 | | 98th General Assembly Act .
| 4 | | The Governor shall appoint a chairperson and a vice | 5 | | chairperson of the
board. Members shall serve 8-year terms. | 6 | | 2-year terms. The position of a legislative
member shall become | 7 | | vacant if the member ceases to be a member of the General
| 8 | | Assembly. A vacancy in a board position shall be filled by the | 9 | | original
appointing authority.
| 10 | | The board shall include representation from each of the | 11 | | State's geographic
areas.
| 12 | | The board shall meet quarterly or at the call of the chair | 13 | | and shall create
subcommittees as needed to deal with specific | 14 | | issues and concerns. Members
shall serve without compensation | 15 | | but may be reimbursed for expenses.
| 16 | | (Source: P.A. 94-793, eff. 5-19-06; 95-331, eff. 8-21-07.)
| 17 | | (20 ILCS 3965/4) (from Ch. 127, par. 3954)
| 18 | | Sec. 4. The board has the following responsibilities and | 19 | | powers:
| 20 | | (a) (blank); to secure and encourage substantial private | 21 | | sector, community and
citizen support in the analysis of | 22 | | economic development opportunities and
development of specific | 23 | | recommendations for economic growth;
| 24 | | (b) (blank); to assist the Department's research efforts to | 25 | | identify and analyze
key businesses and industries to determine |
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| 1 | | their potential for expansion,
diversification and production | 2 | | of value-added goods;
| 3 | | (c) (blank); to propose an appropriate State role in new | 4 | | product development,
venture capital formation and research | 5 | | and development;
| 6 | | (d) to evaluate the performance of existing State economic | 7 | | development
efforts for consistency, effectiveness and | 8 | | coordination, as well as for
their effect on job creation, and | 9 | | to evaluate the long-term benefits to
the State of these | 10 | | efforts;
| 11 | | (e) (blank); to propose, along with other State, local and | 12 | | private groups, new
methods to increase public and private | 13 | | partnerships to foster economic
development efforts;
| 14 | | (f) (blank); assist the Department's efforts to develop a | 15 | | long-term economic
development strategy based on consensus | 16 | | goals and principles, an in-depth
analysis of market | 17 | | opportunities, private sector support and investment,
and | 18 | | specific private and public economic development measures that | 19 | | have a
substantial potential to increase employment;
| 20 | | (g) (blank); assist the Department's efforts to study the | 21 | | key components of the
State's business climate as they relate | 22 | | to the long-term development
strategy including, but not | 23 | | limited to, education and training, energy,
existing | 24 | | environmental conditions, research and development, capital, | 25 | | land,
transportation, advanced communications, taxes and | 26 | | regulations with an analysis
of their linkages to the State's |
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| 1 | | economy;
| 2 | | (h) (blank); to review the various economic development | 3 | | policy recommendations made
by other agencies or organizations | 4 | | and recommend to the Governor and
legislature those strategies, | 5 | | policies and programs it deems to be in the
best interest of | 6 | | the State by January 1, 1991, and thereafter by January 1
of | 7 | | each year; and
| 8 | | (i) (blank); to make specific recommendations for the | 9 | | establishment of
public-private cooperative efforts in | 10 | | economic development and State-local
cooperative efforts, | 11 | | including, but not limited to, the need for
establishing formal | 12 | | working relationships, whether by contract or
otherwise, for | 13 | | purposes of engaging in joint, cooperative economic
| 14 | | development activities.
| 15 | | (j) to approve or reject applications for credits under the | 16 | | Economic Development for a Growing Economy Tax Credit Act; and | 17 | | (k) to evaluate whether or not credits awarded under the | 18 | | Economic Development for a Growing Economy Tax Credit Act are | 19 | | meeting their public policy objectives, and to make | 20 | | recommendations to the Department, the Governor, and the | 21 | | General Assembly for improvements to the Economic Development | 22 | | for a Growing Economy Tax Credit program. | 23 | | (Source: P.A. 86-1430.)
| 24 | | Section 10. The Economic Development for a Growing Economy | 25 | | Tax Credit Act is amended by changing Sections 5-5, 5-10, 5-20, |
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| 1 | | 5-25, 5-40, 5-45, 5-50, and 5-70 as follows:
| 2 | | (35 ILCS 10/5-5)
| 3 | | Sec. 5-5. Definitions. As used in this Act:
| 4 | | "Agreement" means the Agreement between a Taxpayer and the | 5 | | Department under
the provisions of Section 5-50 of this Act.
| 6 | | "Applicant" means a Taxpayer that is operating a business | 7 | | located or that
the Taxpayer plans to locate within the State | 8 | | of Illinois and that is engaged
in interstate or intrastate | 9 | | commerce for the purpose of manufacturing,
processing, | 10 | | assembling, warehousing, or distributing products, conducting
| 11 | | research and development, providing tourism services, | 12 | | providing professional services, or providing services
in | 13 | | interstate commerce, office industries, or agricultural | 14 | | processing, but
excluding retail, retail food, or health , or | 15 | | professional services .
"Applicant" does not include a Taxpayer | 16 | | who closes or
substantially reduces an operation at one | 17 | | location in the State and relocates
substantially the same | 18 | | operation to another location in the State. This does
not | 19 | | prohibit a Taxpayer from expanding its operations at another | 20 | | location in
the State, provided that existing operations of a | 21 | | similar nature located within
the State are not closed or | 22 | | substantially reduced. This also does not prohibit
a Taxpayer | 23 | | from moving its operations from one location in the State to | 24 | | another
location in the State for the purpose of expanding the | 25 | | operation provided that
the Department determines that |
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| 1 | | expansion cannot reasonably be accommodated
within the | 2 | | municipality in which the business is located, or in the case | 3 | | of a
business located in an incorporated area of the county, | 4 | | within the county in
which the business is located, after | 5 | | conferring with the chief elected
official of the municipality | 6 | | or county and taking into consideration any
evidence offered by | 7 | | the municipality or county regarding the ability to
accommodate | 8 | | expansion within the municipality or county.
| 9 | | "Board" means the Illinois Economic Development Board | 10 | | created under Section 2 of the Illinois Economic Development | 11 | | Board Act. | 12 | | "Committee" means the Illinois Business Investment | 13 | | Committee created under
Section 5-25 of this Act within the | 14 | | Illinois Economic Development Board.
| 15 | | "Credit" means the amount agreed to between the Department | 16 | | and Applicant
under this Act, but not to exceed the Incremental | 17 | | Income Tax attributable to
the Applicant's project or $10,000 | 18 | | per New Employee, whichever is less .
| 19 | | "Department" means the Department of Commerce and Economic | 20 | | Opportunity.
| 21 | | "Director" means the Director of Commerce and Economic | 22 | | Opportunity.
| 23 | | "Full-time Employee" means an individual who is employed | 24 | | for consideration
for at least 35 hours each week or who | 25 | | renders any other standard of service
generally accepted by | 26 | | industry custom or practice as full-time employment. An |
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| 1 | | individual for whom a W-2 is issued by a Professional Employer | 2 | | Organization (PEO) is a full-time employee if employed in the | 3 | | service of the Applicant for consideration for at least 35 | 4 | | hours each week or who renders any other standard of service | 5 | | generally accepted by industry custom or practice as full-time | 6 | | employment to Applicant.
| 7 | | "Incremental Income Tax" means the total amount withheld | 8 | | during the taxable
year from the compensation of New Employees | 9 | | under Article 7 of the Illinois
Income Tax Act arising from | 10 | | employment at a project that is the subject of an
Agreement.
| 11 | | "New Employee" means:
| 12 | | (a) A Full-time Employee first employed by a Taxpayer | 13 | | in the project
that is the subject of an Agreement and who | 14 | | is hired after the Taxpayer
enters into the tax credit | 15 | | Agreement.
| 16 | | (b) The term "New Employee" does not include:
| 17 | | (1) an employee of the Taxpayer who performs a job | 18 | | that was previously
performed by another employee, if | 19 | | that job existed for at least 6
months before hiring | 20 | | the employee;
| 21 | | (2) an employee of the Taxpayer who was previously | 22 | | employed in
Illinois by a Related Member of the | 23 | | Taxpayer and whose employment was
shifted to the | 24 | | Taxpayer after the Taxpayer entered into the tax credit
| 25 | | Agreement; or
| 26 | | (3) a child, grandchild, parent, or spouse, other |
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| 1 | | than a spouse who
is legally separated from the | 2 | | individual, of any individual who has a direct
or an | 3 | | indirect ownership interest of at least 5% in the | 4 | | profits, capital, or
value of the Taxpayer.
| 5 | | (c) Notwithstanding paragraph (1) of subsection (b), | 6 | | an employee may be
considered a New Employee under the | 7 | | Agreement if the employee performs a job
that was | 8 | | previously performed by an employee who was:
| 9 | | (1) treated under the Agreement as a New Employee; | 10 | | and
| 11 | | (2) promoted by the Taxpayer to another job.
| 12 | | (d) Notwithstanding subsection (a), the Department may | 13 | | award Credit to an
Applicant with respect to an employee | 14 | | hired prior to the date of the Agreement
if:
| 15 | | (1) the Applicant is in receipt of a letter from | 16 | | the Department stating
an
intent to enter into a credit | 17 | | Agreement;
| 18 | | (2) the letter described in paragraph (1) is issued | 19 | | by the
Department not later than 15 days after the | 20 | | effective date of this Act; and
| 21 | | (3) the employee was hired after the date the | 22 | | letter described in
paragraph (1) was issued.
| 23 | | "Noncompliance Date" means, in the case of a Taxpayer that | 24 | | is not complying
with the requirements of the Agreement or the | 25 | | provisions of this Act, the day
following the last date upon | 26 | | which the Taxpayer was in compliance with the
requirements of |
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| 1 | | the Agreement and the provisions of this Act, as determined
by | 2 | | the Director, pursuant to Section 5-65.
| 3 | | "Pass Through Entity" means an entity that is exempt from | 4 | | the tax under
subsection (b) or (c) of Section 205 of the | 5 | | Illinois Income Tax Act.
| 6 | | "Professional Employer Organization" (PEO) means an | 7 | | employee leasing company, as defined in Section 206.1(A)(2) of | 8 | | the Illinois Unemployment Insurance Act.
| 9 | | "Related Member" means a person that, with respect to the | 10 | | Taxpayer during
any portion of the taxable year, is any one of | 11 | | the following:
| 12 | | (1) An individual stockholder, if the stockholder and | 13 | | the members of the
stockholder's family (as defined in | 14 | | Section 318 of the Internal Revenue Code)
own directly, | 15 | | indirectly, beneficially, or constructively, in the | 16 | | aggregate,
at least 50% of the value of the Taxpayer's | 17 | | outstanding stock.
| 18 | | (2) A partnership, estate, or trust and any partner or | 19 | | beneficiary,
if the partnership, estate, or trust, and its | 20 | | partners or beneficiaries own
directly, indirectly, | 21 | | beneficially, or constructively, in the aggregate, at
| 22 | | least 50% of the profits, capital, stock, or value of the
| 23 | | Taxpayer.
| 24 | | (3) A corporation, and any party related to the | 25 | | corporation in a manner
that would require an attribution | 26 | | of stock from the corporation to the
party or from the |
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| 1 | | party to the corporation under the attribution rules
of | 2 | | Section 318 of the Internal Revenue Code, if the Taxpayer | 3 | | owns
directly, indirectly, beneficially, or constructively | 4 | | at least
50% of the value of the corporation's outstanding | 5 | | stock.
| 6 | | (4) A corporation and any party related to that | 7 | | corporation in a manner
that would require an attribution | 8 | | of stock from the corporation to the party or
from the | 9 | | party to the corporation under the attribution rules of | 10 | | Section 318 of
the Internal Revenue Code, if the | 11 | | corporation and all such related parties own
in the | 12 | | aggregate at least 50% of the profits, capital, stock, or | 13 | | value of the
Taxpayer.
| 14 | | (5) A person to or from whom there is attribution of | 15 | | stock ownership
in accordance with Section 1563(e) of the | 16 | | Internal Revenue Code, except,
for purposes of determining | 17 | | whether a person is a Related Member under
this paragraph, | 18 | | 20% shall be substituted for 5% wherever 5% appears in
| 19 | | Section 1563(e) of the Internal Revenue Code.
| 20 | | "Taxpayer" means an individual, corporation, partnership, | 21 | | or other entity
that has any Illinois Income Tax liability.
| 22 | | (Source: P.A. 94-793, eff. 5-19-06; 95-375, eff. 8-23-07.)
| 23 | | (35 ILCS 10/5-10)
| 24 | | Sec. 5-10. Powers of the Department. The Department, in
| 25 | | addition to those powers
granted under the Civil Administrative |
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| 1 | | Code of Illinois, is granted and shall
have all the powers | 2 | | necessary
or convenient to carry out and effectuate the | 3 | | purposes and provisions of this
Act, including, but not limited
| 4 | | to, power and authority to:
| 5 | | (a) Promulgate procedures, rules, or regulations deemed | 6 | | necessary and
appropriate for the
administration of the | 7 | | programs; establish forms for applications,
notifications, | 8 | | contracts, or any other
agreements; and accept applications at | 9 | | any time during the year.
| 10 | | (b) Provide and assist Taxpayers pursuant to the
provisions | 11 | | of this Act, and
cooperate with Taxpayers that are parties to | 12 | | Agreements
to promote, foster, and
support economic | 13 | | development, capital investment, and job creation or retention
| 14 | | within the State.
| 15 | | (c) Enter into agreements and memoranda of understanding | 16 | | for participation
of and engage in
cooperation with agencies of | 17 | | the federal government, local units of government,
| 18 | | universities, research
foundations or institutions, regional | 19 | | economic development corporations, or
other organizations for | 20 | | the
purposes of this Act.
| 21 | | (d) Gather information and conduct inquiries, in the manner | 22 | | and by the
methods as it deems desirable,
including without | 23 | | limitation, gathering information with respect to
Applicants | 24 | | for the
purpose of making any designations or certifications | 25 | | necessary or desirable or
to gather information to
assist the | 26 | | Board Committee with any recommendation or guidance in the |
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| 1 | | furtherance of
the purposes of this Act.
| 2 | | (e) Establish, negotiate and effectuate any term, | 3 | | agreement or other
document with any person,
necessary or | 4 | | appropriate to accomplish the purposes of this Act; and to
| 5 | | consent, subject to the provisions
of any Agreement with | 6 | | another party, to the modification or restructuring of
any | 7 | | Agreement to which the
Department is a party , provided that all | 8 | | Agreements entered into on or after the effective date of this | 9 | | amendatory Act of the 98th General Assembly, and all | 10 | | modifications to or restructuring of Agreements occurring on or | 11 | | after the effective date of this amendatory Act of the 98th | 12 | | General Assembly, require the approval of the Board prior to | 13 | | implementation or continuing implementation .
| 14 | | (f) Fix, determine, charge, and collect any premiums, fees, | 15 | | charges, costs,
and expenses from Applicants,
including, | 16 | | without limitation,
any
application fees,
commitment fees, | 17 | | program fees, financing charges, or publication fees as deemed
| 18 | | appropriate to pay
expenses necessary or incident to the | 19 | | administration, staffing, or operation in
connection with the
| 20 | | Department's or Board's Committee's activities under this Act, | 21 | | or for preparation,
implementation, and
enforcement of the | 22 | | terms of the Agreement, or for consultation, advisory and
legal | 23 | | fees, and other costs;
however, all fees and expenses incident | 24 | | thereto shall be the responsibility of
the Applicant.
| 25 | | (g) Provide for sufficient personnel to permit | 26 | | administration, staffing,
operation, and related support
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| 1 | | required to adequately discharge its duties and | 2 | | responsibilities described in
this Act from funds made
| 3 | | available through charges to Applicants
or from funds as
may be | 4 | | appropriated by the General Assembly for the administration of | 5 | | this Act.
| 6 | | (h) Require Applicants, upon written request, to
issue any | 7 | | necessary
authorization to the appropriate federal, state, or | 8 | | local authority for the
release of information concerning a
| 9 | | project being considered under the
provisions of this Act, with | 10 | | the
information requested to include, but not be limited to, | 11 | | financial reports,
returns, or records relating to the
| 12 | | Taxpayers' or its project.
| 13 | | (i) Require that a Taxpayer shall at all times
keep proper | 14 | | books
of record and account in accordance with generally | 15 | | accepted accounting
principles consistently applied,
with the | 16 | | books, records, or papers related to the Agreement in the | 17 | | custody or
control of the Taxpayer open for
reasonable | 18 | | Department inspection and audits, and including, without | 19 | | limitation,
the making of copies of the
books, records, or | 20 | | papers, and the inspection or appraisal of any of the
Taxpayer | 21 | | or project assets.
| 22 | | (j) Take whatever actions are necessary or appropriate to | 23 | | protect the
State's interest in the
event of bankruptcy, | 24 | | default, foreclosure, or noncompliance with the terms and
| 25 | | conditions of financial
assistance or participation required | 26 | | under this Act, including the power to
sell, dispose, lease, or |
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| 1 | | rent, upon
terms and conditions determined by the Director to | 2 | | be appropriate, real or
personal property that the
Department | 3 | | may receive as a result of these actions.
| 4 | | (Source: P.A. 91-476, eff. 8-11-99.)
| 5 | | (35 ILCS 10/5-20)
| 6 | | Sec. 5-20. Application for a project to create and retain | 7 | | new jobs.
| 8 | | (a) Any Taxpayer proposing a project located or planned to | 9 | | be located in
Illinois may request consideration
for | 10 | | designation of its project , by formal written letter of request | 11 | | or by
formal application to the Department,
in which the | 12 | | Applicant states its intent to make at least a specified level | 13 | | of
investment and
intends to hire or retain a
specified number | 14 | | of full-time employees at a designated location in Illinois.
| 15 | | The Department shall prepare a standard, formal, written | 16 | | application form for all Applicants. All Applicants who apply | 17 | | for Credits under this Act on or after the effective date of | 18 | | this amendatory Act of the 98th General Assembly shall complete | 19 | | that application. As
circumstances require, the
Department may | 20 | | require a formal application from an Applicant and a formal
| 21 | | letter of request for
assistance.
| 22 | | (b) In order to qualify for Credits under this Act, an | 23 | | Applicant's project
must employ at least 25 New Employees | 24 | | within the
State as a direct result of the project, except that | 25 | | (i) if the Applicant has 100 or fewer employees, then the |
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| 1 | | Applicant must employ at least 5 New Employees within the State | 2 | | as a direct result of the project, and (ii) if the Department | 3 | | and the Board determine that the project will provide a | 4 | | substantial economic benefit to the
State, then the Applicant | 5 | | may employ fewer than 25 New Employees within the
State. If an | 6 | | Applicant's project employs fewer than 25 New Employees under | 7 | | item (ii) of this subsection (b), then the Department and the | 8 | | Board must expressly specify the minimum number of New | 9 | | Employees that the Applicant is required to employ. If, in any | 10 | | taxable year during which an Agreement is in effect, the total | 11 | | number of employees employed by the Taxpayer in Illinois is | 12 | | less than the total number of employees employed the Taxpayer | 13 | | in Illinois during the previous taxable year, the Taxpayer | 14 | | shall be deemed to be in noncompliance with the Agreement. :
| 15 | | (1) involve an investment of at least $5,000,000 in | 16 | | capital improvements
to be placed in service and to employ | 17 | | at least 25 New Employees within the
State as a direct | 18 | | result of the project;
| 19 | | (2) involve an investment of at least an amount (to be | 20 | | expressly specified
by the Department and the Committee) in | 21 | | capital improvements to be placed in
service and will | 22 | | employ at least an amount (to be expressly specified by the
| 23 | | Department and the Committee) of New Employees
within the | 24 | | State, provided that the Department and the Committee have
| 25 | | determined that the project will provide a substantial | 26 | | economic benefit to the
State; or |
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| 1 | | (3) if the applicant has 100 or fewer employees, | 2 | | involve an investment of at least $1,000,000 in capital | 3 | | improvements to be placed in service and to employ at least | 4 | | 5 New Employees within the State as a direct result of the | 5 | | project.
| 6 | | (c) After receipt of an application, the Department may | 7 | | enter into an
Agreement with the Applicant if the
application | 8 | | is accepted in accordance with Section 5-25 and the Agreement | 9 | | is approved by the Board .
| 10 | | (Source: P.A. 93-882, eff. 1-1-05.)
| 11 | | (35 ILCS 10/5-25)
| 12 | | Sec. 5-25. Review of Application.
| 13 | | (a) In addition to those duties granted under the Illinois | 14 | | Economic
Development Board Act, the Illinois
Economic | 15 | | Development Board shall form a Business Investment Committee | 16 | | for the
purpose of making
recommendations for applications. At | 17 | | the request of the Board, the Director of
Commerce and
Economic | 18 | | Opportunity or his or her designee, the Director of the
| 19 | | Governor's Office of Management and Budget or
his or her | 20 | | designee, the
Director of Revenue or his or her designee, the | 21 | | Director of Employment
Security or his or her designee,
and an | 22 | | elected official of the affected locality, such as the chair of | 23 | | the
county board or the mayor, may
serve as members of the | 24 | | Committee to assist with its analysis and
deliberations. The | 25 | | Business Investment Committee shall be dissolved on the |
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| 1 | | effective date of this amendatory Act of the 98th General | 2 | | Assembly, and the duties and responsibilities of the Committee | 3 | | shall be assumed by the Board.
| 4 | | (b) At the Department's request, the Board Committee
shall
| 5 | | convene, make inquiries,
and conduct studies in the manner and | 6 | | by the methods as it deems desirable,
review information with
| 7 | | respect to Applicants, and make recommendations for
projects to | 8 | | benefit the State. In making its recommendation that
an | 9 | | Applicant's application for Credit should or should not be | 10 | | accepted, which
shall occur
within a reasonable time frame
as | 11 | | determined by the nature of the application, the Board | 12 | | Committee shall determine
that
all the following conditions
| 13 | | exist:
| 14 | | (1) The Applicant Applicant's project intends, as | 15 | | required by subsection (b) of
Section 5-20 to make
the | 16 | | required investment in the State and intends to hire the | 17 | | required
number of
New Employees in Illinois as a result of | 18 | | that project.
| 19 | | (2) The Applicant's project is economically sound and | 20 | | will benefit the
people of the State of
Illinois by | 21 | | increasing opportunities for employment and strengthen the | 22 | | economy
of Illinois.
| 23 | | (3) That, if not for the Credit, the project would not | 24 | | occur in Illinois,
which may be demonstrated
by any means | 25 | | including, but not limited to, evidence the Applicant has
| 26 | | multi-state
location options and
could reasonably and |
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| 1 | | efficiently locate outside of the State, or demonstration
| 2 | | that at least one other
state is being considered for the | 3 | | project, or evidence the receipt of the
Credit is a major | 4 | | factor in
the Applicant's decision and that without the | 5 | | Credit,
the Applicant likely would not
create new jobs in | 6 | | Illinois, or demonstration that receiving the Credit is
| 7 | | essential to the Applicant's
decision to create or retain | 8 | | new jobs in the State.
| 9 | | (4) A cost differential is identified, using best | 10 | | available
data, in the projected costs for the Applicant's | 11 | | project compared to
the costs in the competing state, | 12 | | including the impact of the competing
state's incentive | 13 | | programs. The competing state's incentive
programs shall | 14 | | include state, local, private, and federal funds
| 15 | | available.
| 16 | | (5) The political subdivisions affected by the project | 17 | | have
committed local incentives with respect to the | 18 | | project, considering local
ability to assist.
| 19 | | (6) Awarding the Credit will result in an overall | 20 | | positive fiscal
impact to the State, as certified by the | 21 | | Board Committee using
the best
available data.
| 22 | | (7) The Credit is not prohibited by Section 5-35 of | 23 | | this Act.
| 24 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 25 | | (35 ILCS 10/5-40)
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| 1 | | Sec. 5-40. Determination of Amount of the Credit. In | 2 | | determining the
amount of the Credit that should be awarded, | 3 | | the Board Committee shall provide
guidance on, and the
| 4 | | Department shall take into consideration, the
following | 5 | | factors:
| 6 | | (1) The number and location of jobs created and | 7 | | retained in relation to
the economy of the county where the | 8 | | projected investment is to
occur.
| 9 | | (2) The potential impact on the economy of Illinois.
| 10 | | (3) The magnitude of the cost differential between | 11 | | Illinois and the
competing state.
| 12 | | (4) The incremental payroll attributable to the | 13 | | project.
| 14 | | (5) (Blank). The capital investment attributable to | 15 | | the project.
| 16 | | (6) The amount of the average wage and benefits paid by | 17 | | the Applicant in
relation to the wage and benefits of the | 18 | | area of the project.
| 19 | | (7) The costs to Illinois and the affected political | 20 | | subdivisions
with respect to the project.
| 21 | | (8) The financial assistance that is otherwise | 22 | | provided by Illinois
and the affected political | 23 | | subdivisions.
| 24 | | (9) Whether the Applicant's proposed credit per job is | 25 | | lower or higher than other past credits awarded. | 26 | | (10) Whether the Applicant's proposed credit per job is |
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| 1 | | lower or higher than other Applicants. | 2 | | (Source: P.A. 91-476, eff. 8-11-99.)
| 3 | | (35 ILCS 10/5-45)
| 4 | | Sec. 5-45. Amount and duration of the credit.
| 5 | | (a) Subject to the approval of the Board, the The | 6 | | Department shall
determine the amount and
duration of the | 7 | | credit awarded under this Act. The duration of the
credit may | 8 | | not exceed 5 10 taxable years.
The credit may be stated as
a | 9 | | percentage of the Incremental Income Tax attributable
to the | 10 | | applicant's project and may include a fixed dollar limitation.
| 11 | | (b) Notwithstanding subsection (a),
and except as the | 12 | | credit may be applied in a carryover year pursuant to Section
| 13 | | 211(4) of the Illinois Income Tax Act, the credit may be | 14 | | applied against the
State income tax liability in more than 10 | 15 | | taxable years but not in more than
15 taxable years for an | 16 | | eligible business
that (i) qualifies under this Act
and the | 17 | | Corporate Headquarters Relocation Act and has in fact | 18 | | undertaken a
qualifying project within the time frame specified | 19 | | by the Department of
Commerce and Economic Opportunity under | 20 | | that Act, and (ii) applies against its
State income tax | 21 | | liability, during the entire 15-year
period, no more than 60% | 22 | | of the maximum
credit per year that would otherwise be | 23 | | available under this Act.
| 24 | | (c) Notwithstanding any other provision of law, no more | 25 | | than $100,000,000 in credits may be awarded under this Act in |
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| 1 | | State Fiscal Year 2014. In each State fiscal year thereafter, | 2 | | the total amount of credits that may be awarded under this Act | 3 | | shall be increased by the percentage increase, if any, in the | 4 | | Consumer Price Index for All Urban Consumers, as issued by the | 5 | | United States Department of Labor, Bureau of Labor Statistics, | 6 | | during the 12-month calendar year immediately preceding that | 7 | | State fiscal year. This limitation does not apply to amounts | 8 | | that are carried forward under Section 211 of the Illinois | 9 | | Income Tax Act. | 10 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 11 | | (35 ILCS 10/5-50)
| 12 | | Sec. 5-50. Contents of Agreements with Applicants. The | 13 | | Department shall
enter into an Agreement with an
Applicant that | 14 | | is awarded a Credit under this Act. The Agreement
must include | 15 | | all of the following:
| 16 | | (1) A detailed description of the project that is the | 17 | | subject of the
Agreement, including the location and amount | 18 | | of the investment and the number of jobs created
or | 19 | | retained.
| 20 | | (2) The duration of the Credit and the first taxable | 21 | | year for which
the Credit may be claimed.
| 22 | | (3) The Credit amount that will be allowed for each | 23 | | taxable year.
| 24 | | (4) A requirement that the Taxpayer shall maintain | 25 | | operations at the
project location that shall be stated as |
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| 1 | | a minimum number of years not to
exceed 5 10 .
| 2 | | (5) A specific method for determining the number of New | 3 | | Employees
employed during a taxable year.
| 4 | | (6) A requirement that the Taxpayer shall annually | 5 | | report to the
Department the number of New Employees,
the | 6 | | Incremental Income Tax
withheld in connection with the New | 7 | | Employees, and any other
information the Director needs to | 8 | | perform the Director's duties under
this Act.
| 9 | | (7) A requirement that the Director is authorized to | 10 | | verify with the
appropriate State agencies the amounts | 11 | | reported under paragraph
(6), and after doing so shall | 12 | | issue a certificate to the Taxpayer
stating that the | 13 | | amounts have been verified.
| 14 | | (8) A requirement that the Taxpayer shall provide | 15 | | written
notification to the Director not more than 30
days | 16 | | after the Taxpayer makes or receives a proposal that would
| 17 | | transfer the Taxpayer's State tax liability obligations to | 18 | | a
successor Taxpayer.
| 19 | | (9) A detailed description of the number of New | 20 | | Employees to be
hired, and the occupation and
payroll of | 21 | | the full-time jobs to be created or retained as a result of | 22 | | the
project.
| 23 | | (10) (Blank). The minimum investment the business | 24 | | enterprise will make in
capital improvements, the time | 25 | | period
for placing the property in service, and the | 26 | | designated location in Illinois
for the investment.
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| 1 | | (11) A requirement that the Taxpayer shall provide | 2 | | written
notification to the Director and
the Board | 3 | | Committee not more than 30 days after the Taxpayer | 4 | | determines
that the minimum
job creation or retention, | 5 | | employment payroll, or investment , if applicable, no | 6 | | longer is being
or will be achieved or
maintained as set | 7 | | forth in the terms and conditions of the
Agreement.
| 8 | | (12) A provision that, if the total number of New | 9 | | Employees falls
below a specified level, the
allowance of | 10 | | Credit shall be suspended until the number of New
Employees | 11 | | equals or exceeds
the Agreement amount.
| 12 | | (13) A detailed description of the items for which the | 13 | | costs incurred by
the Taxpayer will be included
in the | 14 | | limitation on the Credit provided in Section 5-30.
| 15 | | (13.5) A provision that, if the Taxpayer never meets | 16 | | either the investment or job creation and retention | 17 | | requirements specified in the Agreement during the entire | 18 | | 5-year period beginning on the first day of the first | 19 | | taxable year in which the Agreement is executed and ending | 20 | | on the last day of the fifth taxable year after the | 21 | | Agreement is executed, then the Agreement is automatically | 22 | | terminated on the last day of the fifth taxable year after | 23 | | the Agreement is executed and the Taxpayer is not entitled | 24 | | to the award of any credits for any of that 5-year period.
| 25 | | (14) Any other performance conditions or contract | 26 | | provisions as the
Department determines are
appropriate.
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| 1 | | The Department shall post on its website the terms of each | 2 | | Agreement entered into under this Act on or after the effective | 3 | | date of this amendatory Act of the 97th General Assembly. | 4 | | Any Agreement entered into on or after the effective date | 5 | | of this amendatory Act of the 98th General Assembly is subject | 6 | | to the approval of the Board. Any modifications to an existing | 7 | | Agreement that take effect on or after the effective date of | 8 | | this amendatory Act of the 98th General Assembly are subject to | 9 | | the approval of the Board. The Department must forward any | 10 | | proposed Agreements or modifications to the Board within 15 | 11 | | days after the terms of the Agreement or modification are | 12 | | finalized. | 13 | | (Source: P.A. 97-2, eff. 5-6-11; 97-749, eff. 7-6-12.)
| 14 | | (35 ILCS 10/5-70)
| 15 | | Sec. 5-70. Annual report. On or before July 1 each year, | 16 | | the Board Committee
shall submit a report to the Department on | 17 | | the tax credit program under this
Act to the Governor and the | 18 | | General Assembly. The report shall include
information on the | 19 | | number of
Agreements that were entered into under this Act | 20 | | during the
preceding calendar year, a description of the | 21 | | project that is the
subject of each Agreement, an update on the | 22 | | status of projects under
Agreements entered into before the | 23 | | preceding calendar year, and the
sum of the Credits awarded | 24 | | under this Act. A copy of the report shall
be delivered to the | 25 | | Governor and to each
member of the General Assembly and shall |
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| 1 | | be posted on the Department's website .
| 2 | | (Source: P.A. 91-476, eff. 8-11-99.)".
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