Full Text of HB2496 98th General Assembly
HB2496ham004 98TH GENERAL ASSEMBLY | Rep. John E. Bradley Filed: 4/16/2013
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| 1 | | AMENDMENT TO HOUSE BILL 2496
| 2 | | AMENDMENT NO. ______. Amend House Bill 2496, AS AMENDED, | 3 | | immediately above the enacting clause, by inserting the | 4 | | following:
| 5 | | "WHEREAS, The State of Illinois has a strategic interest in | 6 | | the operations of the Illinois International Port District and | 7 | | its Board, whose function is to develop the District's port and | 8 | | harbor facilities, issue construction permits, regulate the | 9 | | District's facilities and waterways, establish and operate | 10 | | foreign trade zones, and govern and administer all the District | 11 | | area within Chicago's corporate limits; and | 12 | | WHEREAS, The Illinois International Port District is a very | 13 | | significant driver of freight movement and economic activity | 14 | | throughout the State of Illinois, including the downstate | 15 | | waterways and especially the Mississippi River and the Illinois | 16 | | River; and |
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| 1 | | WHEREAS, In 2010, cargo shipments at the Port of Chicago | 2 | | directly or indirectly supported 6,930 jobs and generated | 3 | | $425,000,000 in revenue for Illinois firms, according to the | 4 | | Washington D.C.-based American Great Lakes Ports Association; | 5 | | and | 6 | | WHEREAS, The Port of Chicago links rail and trucking lines | 7 | | with barges and ships supplying the Great Lakes and nearby | 8 | | rivers and handles an estimated 26,000,000 cargo tons annually | 9 | | throughout its 1,500 acre complex on the far south side, | 10 | | according to a recent estimate by a consortium of Great Lakes | 11 | | shipping interests; and | 12 | | WHEREAS, In 1978, the Capital Development Board provided | 13 | | funds to the Illinois International Port District as authorized | 14 | | by Section 13 of the Capital Development Board Act, which | 15 | | provides for repayment by the Illinois International Port | 16 | | District using a flexible formula based on specified levels of | 17 | | revenues and profits; and | 18 | | WHEREAS, In the over 30 years since that payment from the | 19 | | Capital Development Board, the Illinois International Port | 20 | | District has never been required to make a single payment to | 21 | | the Capital Development Board because it has never reached the | 22 | | levels of revenues and profits that would require such payment; |
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| 1 | | and | 2 | | WHEREAS, The Capital Development Board annually certifies | 3 | | to the Illinois International Port District that it owes no | 4 | | payment for the year to the Capital Development Board; and | 5 | | WHEREAS, It is virtually impossible that the Illinois | 6 | | International Port District will ever reach the level of | 7 | | revenues and profits that would require it to make a payment to | 8 | | the Capital Development Board; and | 9 | | WHEREAS, In its financial statements for each year since at | 10 | | least 2005, the Capital Development Board has "reserved" the | 11 | | entire amount lent to the Illinois International Port District, | 12 | | indicating that it does not expect any payments under the loan, | 13 | | and that non-payment of the loan would not require any future | 14 | | or present cash outlay by the Capital Development Board or the | 15 | | State; and | 16 | | WHEREAS, For the reasons discussed above, the existence of | 17 | | this debt is of no value whatsoever to the State and serves | 18 | | only to limit the investment in the Port of Chicago and the | 19 | | amount of economic activity throughout Illinois water and rail | 20 | | lines; and | 21 | | WHEREAS, Official forgiveness of the obligation from the |
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| 1 | | Illinois International Port District to the Capital | 2 | | Development Board would benefit the entire State of Illinois by | 3 | | allowing greater investment in the State's waterways and | 4 | | freight facilities; therefore"; and | 5 | | by replacing everything after the enacting clause with the | 6 | | following:
| 7 | | "Section 5. The Illinois Enterprise Zone Act is amended by | 8 | | changing Section 5.5 as follows:
| 9 | | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| 10 | | Sec. 5.5. High Impact Business.
| 11 | | (a) In order to respond to unique opportunities to assist | 12 | | in the
encouragement, development, growth and expansion of the | 13 | | private sector through
large scale investment and development | 14 | | projects, the Department is authorized
to receive and approve | 15 | | applications for the designation of "High Impact
Businesses" in | 16 | | Illinois subject to the following conditions:
| 17 | | (1) such applications may be submitted at any time | 18 | | during the year;
| 19 | | (2) such business is not located, at the time of | 20 | | designation, in
an enterprise zone designated pursuant to | 21 | | this Act;
| 22 | | (3) the business intends to do one or more of the | 23 | | following:
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| 1 | | (A) the business intends to make a minimum | 2 | | investment of
$12,000,000 which will be placed in | 3 | | service in qualified property and
intends to create 500 | 4 | | full-time equivalent jobs at a designated location
in | 5 | | Illinois or intends to make a minimum investment of | 6 | | $30,000,000 which
will be placed in service in | 7 | | qualified property and intends to retain 1,500
| 8 | | full-time retained jobs at a designated location in | 9 | | Illinois.
The business must certify in writing that the | 10 | | investments would not be
placed in service in qualified | 11 | | property and the job creation or job
retention would | 12 | | not occur without the tax credits and exemptions set | 13 | | forth
in subsection (b) of this Section. The terms | 14 | | "placed in service" and
"qualified property" have the | 15 | | same meanings as described in subsection (h)
of Section | 16 | | 201 of the Illinois Income Tax Act; or
| 17 | | (B) the business intends to establish a new | 18 | | electric generating
facility at a designated location | 19 | | in Illinois. "New electric generating
facility", for | 20 | | purposes of this Section, means a newly-constructed
| 21 | | electric
generation plant
or a newly-constructed | 22 | | generation capacity expansion at an existing electric
| 23 | | generation
plant, including the transmission lines and | 24 | | associated
equipment that transfers electricity from | 25 | | points of supply to points of
delivery, and for which | 26 | | such new foundation construction commenced not sooner
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| 1 | | than July 1,
2001. Such facility shall be designed to | 2 | | provide baseload electric
generation and shall operate | 3 | | on a continuous basis throughout the year;
and (i) | 4 | | shall have an aggregate rated generating capacity of at | 5 | | least 1,000
megawatts for all new units at one site if | 6 | | it uses natural gas as its primary
fuel and foundation | 7 | | construction of the facility is commenced on
or before | 8 | | December 31, 2004, or shall have an aggregate rated | 9 | | generating
capacity of at least 400 megawatts for all | 10 | | new units at one site if it uses
coal or gases derived | 11 | | from coal
as its primary fuel and
shall support the | 12 | | creation of at least 150 new Illinois coal mining jobs, | 13 | | or
(ii) shall be funded through a federal Department of | 14 | | Energy grant before December 31, 2010 and shall support | 15 | | the creation of Illinois
coal-mining
jobs, or (iii) | 16 | | shall use coal gasification or integrated | 17 | | gasification-combined cycle units
that generate
| 18 | | electricity or chemicals, or both, and shall support | 19 | | the creation of Illinois
coal-mining
jobs.
The
| 20 | | business must certify in writing that the investments | 21 | | necessary to establish
a new electric generating | 22 | | facility would not be placed in service and the
job | 23 | | creation in the case of a coal-fueled plant
would not | 24 | | occur without the tax credits and exemptions set forth | 25 | | in
subsection (b-5) of this Section. The term "placed | 26 | | in service" has
the same meaning as described in |
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| 1 | | subsection
(h) of Section 201 of the Illinois Income | 2 | | Tax Act; or
| 3 | | (B-5) the business intends to establish a new | 4 | | gasification
facility at a designated location in | 5 | | Illinois. As used in this Section, "new gasification | 6 | | facility" means a newly constructed coal gasification | 7 | | facility that generates chemical feedstocks or | 8 | | transportation fuels derived from coal (which may | 9 | | include, but are not limited to, methane, methanol, and | 10 | | nitrogen fertilizer), that supports the creation or | 11 | | retention of Illinois coal-mining jobs, and that | 12 | | qualifies for financial assistance from the Department | 13 | | before December 31, 2010. A new gasification facility | 14 | | does not include a pilot project located within | 15 | | Jefferson County or within a county adjacent to | 16 | | Jefferson County for synthetic natural gas from coal; | 17 | | or
| 18 | | (C) the business intends to establish
production | 19 | | operations at a new coal mine, re-establish production | 20 | | operations at
a closed coal mine, or expand production | 21 | | at an existing coal mine
at a designated location in | 22 | | Illinois not sooner than July 1, 2001;
provided that | 23 | | the
production operations result in the creation of 150 | 24 | | new Illinois coal mining
jobs as described in | 25 | | subdivision (a)(3)(B) of this Section, and further
| 26 | | provided that the coal extracted from such mine is |
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| 1 | | utilized as the predominant
source for a new electric | 2 | | generating facility.
The business must certify in | 3 | | writing that the
investments necessary to establish a | 4 | | new, expanded, or reopened coal mine would
not
be | 5 | | placed in service and the job creation would not
occur | 6 | | without the tax credits and exemptions set forth in | 7 | | subsection (b-5) of
this Section. The term "placed in | 8 | | service" has
the same meaning as described in | 9 | | subsection (h) of Section 201 of the
Illinois Income | 10 | | Tax Act; or
| 11 | | (D) the business intends to construct new | 12 | | transmission facilities or
upgrade existing | 13 | | transmission facilities at designated locations in | 14 | | Illinois,
for which construction commenced not sooner | 15 | | than July 1, 2001. For the
purposes of this Section, | 16 | | "transmission facilities" means transmission lines
| 17 | | with a voltage rating of 115 kilovolts or above, | 18 | | including associated
equipment, that transfer | 19 | | electricity from points of supply to points of
delivery | 20 | | and that transmit a majority of the electricity | 21 | | generated by a new
electric generating facility | 22 | | designated as a High Impact Business in accordance
with | 23 | | this Section. The business must certify in writing that | 24 | | the investments
necessary to construct new | 25 | | transmission facilities or upgrade existing
| 26 | | transmission facilities would not be placed in service
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| 1 | | without the tax credits and exemptions set forth in | 2 | | subsection (b-5) of this
Section. The term "placed in | 3 | | service" has the
same meaning as described in | 4 | | subsection (h) of Section 201 of the Illinois
Income | 5 | | Tax Act; or
| 6 | | (E) the business intends to establish a new wind | 7 | | power facility at a designated location in Illinois. | 8 | | For purposes of this Section, "new wind power facility" | 9 | | means a newly constructed electric generation | 10 | | facility, or a newly constructed expansion of an | 11 | | existing electric generation facility, placed in | 12 | | service on or after July 1, 2009, that generates | 13 | | electricity using wind energy devices, and such | 14 | | facility shall be deemed to include all associated | 15 | | transmission lines, substations, and other equipment | 16 | | related to the generation of electricity from wind | 17 | | energy devices. For purposes of this Section, "wind | 18 | | energy device" means any device, with a nameplate | 19 | | capacity of at least 0.5 megawatts, that is used in the | 20 | | process of converting kinetic energy from the wind to | 21 | | generate electricity; or and | 22 | | (F) the business intends to (i) make a minimum | 23 | | investment of $500,000,000, which will be placed in | 24 | | service in a qualified property, (ii) create 125 | 25 | | full-time equivalent jobs at a designated location in | 26 | | Illinois, and (iii) establish a fertilizer plant at a |
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| 1 | | designated location in Illinois; for the purposes of | 2 | | this Section, "fertilizer plant" means a newly | 3 | | constructed or upgraded plant facilitating gas used in | 4 | | the production of anhydrous ammonia and downstream | 5 | | nitrogen fertilizer products for resale; this | 6 | | paragraph (F) applies only to businesses that submit an | 7 | | application to the Department within 60 days after the | 8 | | effective date of this amendatory Act of the 98th | 9 | | General Assembly; and
| 10 | | (4) no later than 90 days after an application is | 11 | | submitted, the
Department shall notify the applicant of the | 12 | | Department's determination of
the qualification of the | 13 | | proposed High Impact Business under this Section.
| 14 | | (b) Businesses designated as High Impact Businesses | 15 | | pursuant to
subdivision (a)(3)(A) of this Section shall qualify | 16 | | for the credits and
exemptions described in the
following Acts: | 17 | | Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
| 18 | | subsection (h)
of Section 201 of the Illinois Income Tax Act,
| 19 | | and Section 1d of
the
Retailers' Occupation Tax Act; provided | 20 | | that these credits and
exemptions
described in these Acts shall | 21 | | not be authorized until the minimum
investments set forth in | 22 | | subdivision (a)(3)(A) of this
Section have been placed in
| 23 | | service in qualified properties and, in the case of the | 24 | | exemptions
described in the Public Utilities Act and Section 1d | 25 | | of the Retailers'
Occupation Tax Act, the minimum full-time | 26 | | equivalent jobs or full-time retained jobs set
forth in |
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| 1 | | subdivision (a)(3)(A) of this Section have been
created or | 2 | | retained.
Businesses designated as High Impact Businesses | 3 | | under
this Section shall also
qualify for the exemption | 4 | | described in Section 5l of the Retailers' Occupation
Tax Act. | 5 | | The credit provided in subsection (h) of Section 201 of the | 6 | | Illinois
Income Tax Act shall be applicable to investments in | 7 | | qualified property as set
forth in subdivision (a)(3)(A) of | 8 | | this Section.
| 9 | | (b-5) Businesses designated as High Impact Businesses | 10 | | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | 11 | | and (a)(3)(D) of this Section shall qualify
for the credits and | 12 | | exemptions described in the following Acts: Section 51 of
the | 13 | | Retailers' Occupation Tax Act, Section 9-222 and Section | 14 | | 9-222.1A of the
Public Utilities Act, and subsection (h) of | 15 | | Section 201 of the Illinois Income
Tax Act; however, the | 16 | | credits and exemptions authorized under Section 9-222 and
| 17 | | Section 9-222.1A of the Public Utilities Act, and subsection | 18 | | (h) of Section 201
of the Illinois Income Tax Act shall not be | 19 | | authorized until the new electric
generating facility, the new | 20 | | gasification facility, the new transmission facility, or the | 21 | | new, expanded, or
reopened coal mine is operational,
except | 22 | | that a new electric generating facility whose primary fuel | 23 | | source is
natural gas is eligible only for the exemption under | 24 | | Section 5l of the
Retailers' Occupation Tax Act.
| 25 | | (b-6) Businesses designated as High Impact Businesses | 26 | | pursuant to subdivision (a)(3)(E) of this Section shall qualify |
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| 1 | | for the exemptions described in Section 5l of the Retailers' | 2 | | Occupation Tax Act; any business so designated as a High Impact | 3 | | Business being, for purposes of this Section, a "Wind Energy | 4 | | Business". | 5 | | (c) High Impact Businesses located in federally designated | 6 | | foreign trade
zones or sub-zones are also eligible for | 7 | | additional credits, exemptions and
deductions as described in | 8 | | the following Acts: Section 9-221 and Section
9-222.1 of the | 9 | | Public
Utilities Act; and subsection (g) of Section 201, and | 10 | | Section 203
of the Illinois Income Tax Act.
| 11 | | (d) Except for businesses contemplated under subdivision | 12 | | (a)(3)(E) of this Section, existing Illinois businesses which | 13 | | apply for designation as a
High Impact Business must provide | 14 | | the Department with the prospective plan
for which 1,500 | 15 | | full-time retained jobs would be eliminated in the event that | 16 | | the
business is not designated.
| 17 | | (e) Except for new wind power facilities contemplated under | 18 | | subdivision (a)(3)(E) of this Section, new proposed facilities | 19 | | which apply for designation as High Impact
Business must | 20 | | provide the Department with proof of alternative non-Illinois
| 21 | | sites which would receive the proposed investment and job | 22 | | creation in the
event that the business is not designated as a | 23 | | High Impact Business.
| 24 | | (f) Except for businesses contemplated under subdivision | 25 | | (a)(3)(E) of this Section, in the event that a business is | 26 | | designated a High Impact Business
and it is later determined |
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| 1 | | after reasonable notice and an opportunity for a
hearing as | 2 | | provided under the Illinois Administrative Procedure Act, that
| 3 | | the business would have placed in service in qualified property | 4 | | the
investments and created or retained the requisite number of | 5 | | jobs without
the benefits of the High Impact Business | 6 | | designation, the Department shall
be required to immediately | 7 | | revoke the designation and notify the Director
of the | 8 | | Department of Revenue who shall begin proceedings to recover | 9 | | all
wrongfully exempted State taxes with interest. The business | 10 | | shall also be
ineligible for all State funded Department | 11 | | programs for a period of 10 years.
| 12 | | (g) The Department shall revoke a High Impact Business | 13 | | designation if
the participating business fails to comply with | 14 | | the terms and conditions of
the designation. However, the | 15 | | penalties for new wind power facilities or Wind Energy | 16 | | Businesses for failure to comply with any of the terms or | 17 | | conditions of the Illinois Prevailing Wage Act shall be only | 18 | | those penalties identified in the Illinois Prevailing Wage Act, | 19 | | and the Department shall not revoke a High Impact Business | 20 | | designation as a result of the failure to comply with any of | 21 | | the terms or conditions of the Illinois Prevailing Wage Act in | 22 | | relation to a new wind power facility or a Wind Energy | 23 | | Business.
| 24 | | (h) Prior to designating a business, the Department shall | 25 | | provide the
members of the General Assembly and Commission on | 26 | | Government Forecasting and Accountability
with a report |
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| 1 | | setting forth the terms and conditions of the designation and
| 2 | | guarantees that have been received by the Department in | 3 | | relation to the
proposed business being designated.
| 4 | | (Source: P.A. 96-28, eff. 7-1-09; 97-905, eff. 8-7-12.)
| 5 | | Section 10. The Corporate Accountability for Tax | 6 | | Expenditures Act is amended by changing Section 25 as follows:
| 7 | | (20 ILCS 715/25)
| 8 | | Sec. 25. Recapture.
| 9 | | (a) All development assistance agreements
shall contain, | 10 | | at a
minimum, the following recapture provisions:
| 11 | | (1) The recipient must (i) make the level of capital | 12 | | investment in the
economic
development project specified | 13 | | in the development assistance agreement; (ii)
create or
| 14 | | retain, or both, the requisite number of jobs, paying not | 15 | | less than specified
wages for the
created and retained | 16 | | jobs, within and for the duration of the time period
| 17 | | specified in the
legislation authorizing, or the | 18 | | administrative rules implementing, the
development
| 19 | | assistance programs and the development assistance | 20 | | agreement.
| 21 | | (2) If the recipient fails to create or retain the | 22 | | requisite number of
jobs within and
for the time period | 23 | | specified, in the legislation authorizing, or the
| 24 | | administrative rules
implementing, the development |
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| 1 | | assistance programs and the development
assistance
| 2 | | agreement, the recipient shall be deemed to no longer | 3 | | qualify for the State
economic
assistance and the | 4 | | applicable recapture provisions shall take effect.
| 5 | | (3) If the recipient receives State economic | 6 | | assistance in the form of a
High
Impact Business | 7 | | designation pursuant to Section 5.5 of the Illinois | 8 | | Enterprise
Zone Act
and the business receives the benefit | 9 | | of the exemption authorized under Section
5l of the
| 10 | | Retailers' Occupation Tax Act (for the sale of building | 11 | | materials incorporated
into a High
Impact Business | 12 | | location) or the utility tax exemption authorized under | 13 | | Section 9-222.1A of the Public Utilities Act and the | 14 | | recipient fails to create or retain the
requisite number
of | 15 | | jobs, as determined by the legislation authorizing the | 16 | | development
assistance
programs
or the administrative | 17 | | rules implementing such legislation, or both, within the
| 18 | | requisite
period of time, the recipient shall be required | 19 | | to pay to the State the full
amount of both the
State tax | 20 | | exemption and the utility tax exemption that it received as | 21 | | a result of the High Impact Business
designation.
| 22 | | (4) If the recipient receives a grant or loan pursuant | 23 | | to the Large
Business
Development Program, the Business | 24 | | Development Public Infrastructure Program, or
the
| 25 | | Industrial Training Program and the recipient fails to | 26 | | create or retain the
requisite number
of jobs for the |
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| 1 | | requisite time period, as provided in the legislation
| 2 | | authorizing the
development assistance programs or the | 3 | | administrative rules implementing such
legislation, or | 4 | | both, or in the development assistance agreement, the | 5 | | recipient
shall be
required to repay to the State a pro | 6 | | rata amount of the grant; that amount
shall
reflect
the | 7 | | percentage of the deficiency between the requisite number | 8 | | of jobs to be
created or
retained by the recipient and the | 9 | | actual number of such jobs in existence as of
the date the
| 10 | | Department determines the recipient is in breach of the job | 11 | | creation or
retention
covenants contained in the | 12 | | development assistance agreement. If the recipient
of
| 13 | | development assistance under the Large Business | 14 | | Development Program, the
Business
Development Public | 15 | | Infrastructure Program, or the Industrial Training Program
| 16 | | ceases
operations at the specific project site, during the | 17 | | 5-year period commencing on
the date of
assistance, the | 18 | | recipient shall be required to repay the entire amount of | 19 | | the
grant or to
accelerate repayment of the loan back to | 20 | | the State.
| 21 | | (5) If the recipient receives a tax credit under the | 22 | | Economic
Development for a
Growing Economy tax credit | 23 | | program, the development assistance agreement must
provide | 24 | | that (i) if the number of new or retained employees falls | 25 | | below the
requisite
number set forth in the development | 26 | | assistance agreement, the allowance of the
credit
shall be |
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| 1 | | automatically suspended until the number of new and | 2 | | retained employees
equals
or exceeds the requisite number | 3 | | in the development assistance agreement; (ii)
if
the
| 4 | | recipient discontinues operations at the specific project | 5 | | site during the 5-year period after the beginning of the | 6 | | first tax year for which the Department issues a tax credit | 7 | | certificate, the recipient shall
forfeit all
credits taken | 8 | | by the recipient during such 5-year period; and (iii) in | 9 | | the
event
of a
revocation or suspension of the credit, the | 10 | | Department shall contact the
Director
of Revenue to | 11 | | initiate proceedings against the recipient to recover
| 12 | | wrongfully
exempted Illinois State income taxes and the | 13 | | recipient shall promptly repay to
the
Department of Revenue | 14 | | any wrongfully exempted Illinois State income taxes.
The | 15 | | forfeited amount of credits shall be deemed assessed on the | 16 | | date the
Department
contacts the Department of Revenue and | 17 | | the recipient shall promptly repay to
the
Department of | 18 | | Revenue any wrongfully exempted Illinois State income | 19 | | taxes.
| 20 | | (b) The Director may elect to waive enforcement of any | 21 | | contractual provision
arising out of
the development | 22 | | assistance agreement required by this Act based on a finding
| 23 | | that the waiver is
necessary to avert an imminent and | 24 | | demonstrable hardship to the
recipient that may
result in such | 25 | | recipient's insolvency or discharge of workers.
If a waiver is
| 26 | | granted, the recipient must agree to a contractual |
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| 1 | | modification, including
recapture provisions,
to the
| 2 | | development assistance
agreement.
The existence of
any waiver
| 3 | | granted pursuant to this subsection (b) (c) , the date of the | 4 | | granting of such
waiver, and a brief
summary of the reasons | 5 | | supporting the granting of such waiver shall be
disclosed
| 6 | | consistent with
the provisions of Section 25 of this Act.
| 7 | | (b-5) The Department shall post, on its website, (i) the | 8 | | identity of each recipient from whom amounts were recaptured | 9 | | under this Section on or after the effective date of this | 10 | | amendatory Act of the 97th General Assembly, (ii) the date of | 11 | | the recapture, (iii) a summary of the reasons supporting the | 12 | | recapture, and (iv) the amount recaptured from those | 13 | | recipients. | 14 | | (c) Beginning June 1, 2004, the Department shall annually | 15 | | compile a report
on the
outcomes and effectiveness of recapture | 16 | | provisions by program, including but
not limited
to: (i) the | 17 | | total number of companies that receive development assistance | 18 | | as
defined in
this Act; (ii) the total number of recipients in | 19 | | violation of development
agreements with
the Department; (iii) | 20 | | the total number of completed recapture efforts; (iv) the
total
| 21 | | number of recapture efforts initiated; and (v) the number of | 22 | | waivers granted.
This report
shall be disclosed consistent with | 23 | | the provisions of Section 20 of this Act.
| 24 | | (d) For the purposes of this Act, recapture provisions do | 25 | | not include the
Illinois
Department of Transportation Economic | 26 | | Development Program, any grants under the
Industrial Training |
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| 1 | | Program that are not given as an incentive to a
recipient | 2 | | business organization,
or any successor programs as described | 3 | | in the term "development assistance" in
Section 5
of this Act.
| 4 | | (Source: P.A. 97-2, eff. 5-6-11; 97-721, eff. 6-29-12; revised | 5 | | 10-10-12.)
| 6 | | Section 15. The Capital Development Board Act is amended by | 7 | | changing Section 13 as follows:
| 8 | | (20 ILCS 3105/13) (from Ch. 127, par. 783)
| 9 | | Sec. 13.
The Board may provide cargo handling facilities | 10 | | and facilities
designed for the movement of cargo to or from | 11 | | cargo handling facilities for
the use of regional port | 12 | | districts. Pursuant to appropriations setting forth
specific | 13 | | projects and regional port districts, the Board shall contract
| 14 | | with the regional port district named in the Act making the
| 15 | | appropriation for cargo handling facilities. Such contract | 16 | | shall provide
that the regional port district shall remit to | 17 | | the State of Illinois an
amount equal to not more than 20%
of | 18 | | the gross receipts attributable to those facilities, and not | 19 | | less than
20% of the profit attributable to those facilities, | 20 | | whether
collected by the regional port district or through an | 21 | | operator or other
intermediary, until the full amount | 22 | | appropriated and expended by the
State of Illinois has been | 23 | | remitted to the State. The exact amount of,
the manner of, the | 24 | | method of and the time for such remittances shall be
agreed |
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| 1 | | upon by the particular port district and the Board
acting | 2 | | through its Executive Director, and such agreement may, from | 3 | | time to
time, be amended by the parties so as to alter or | 4 | | modify the amount of,
manner of, method of and time for the | 5 | | remittance, including, but not
limited to, the temporary | 6 | | forgiveness, suspension or delay of the
remittances not to | 7 | | exceed 24 months for any single suspension or delay. The
| 8 | | payback is subordinate solely to any outstanding public bond | 9 | | agreements
existing at the time of the contract and solely for | 10 | | the period of time of
the running of those bond agreements. For | 11 | | any contract entered into under this Section, if, for a period | 12 | | of 25 years, a regional port district has not been required to | 13 | | remit any amount because the regional port district has failed | 14 | | to achieve the required level of profit, then the regional port | 15 | | district shall not be required to remit any amount under the | 16 | | contract.
| 17 | | This Section shall apply to all regional port district
| 18 | | facilities to be constructed by the Board, including projects | 19 | | for which
appropriations or reappropriations have been made | 20 | | prior to June 30,
1976, and to all contracts existing prior to | 21 | | the effective date of this
amendatory Act of 1985 as well as | 22 | | contracts entered into on or after such date.
| 23 | | (Source: P.A. 84-781.)".
| 24 | | Section 20. The Property Tax Code is amended by changing | 25 | | Section 18-165 as follows:
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| 1 | | (35 ILCS 200/18-165)
| 2 | | Sec. 18-165. Abatement of taxes.
| 3 | | (a) Any taxing district, upon a majority vote of its | 4 | | governing authority,
may, after the determination of the | 5 | | assessed valuation of its property, order
the clerk of that | 6 | | county to abate any portion of its taxes on the following
types | 7 | | of property:
| 8 | | (1) Commercial and industrial.
| 9 | | (A) The property of any commercial or industrial | 10 | | firm,
including but not limited to the property of (i) | 11 | | any firm that
is used for collecting, separating, | 12 | | storing, or processing recyclable
materials, locating | 13 | | within the taxing district during the immediately | 14 | | preceding
year from another state, territory, or | 15 | | country, or having been newly created
within this State | 16 | | during the immediately preceding year, or expanding an
| 17 | | existing facility, or (ii) any firm that is used for | 18 | | the generation and
transmission of
electricity | 19 | | locating within the taxing district during the | 20 | | immediately
preceding year or expanding its presence | 21 | | within the taxing district during the
immediately | 22 | | preceding year by construction of a new electric | 23 | | generating
facility that uses natural gas as its fuel, | 24 | | or any firm that is used for
production operations at a | 25 | | new,
expanded, or reopened coal mine within the taxing |
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| 1 | | district, that
has been certified as a High Impact | 2 | | Business by the Illinois Department of
Commerce and | 3 | | Economic Opportunity. The property of any firm used for | 4 | | the
generation and transmission of electricity shall | 5 | | include all property of the
firm used for transmission | 6 | | facilities as defined in Section 5.5 of the Illinois
| 7 | | Enterprise Zone Act. The abatement shall not exceed a | 8 | | period of 10 years
and the aggregate amount of abated | 9 | | taxes for all taxing districts combined
shall not | 10 | | exceed $4,000,000.
| 11 | | (A-5) Any property in the taxing district of a new | 12 | | electric generating
facility, as defined in Section | 13 | | 605-332 of the Department of Commerce and
Economic | 14 | | Opportunity Law of the Civil Administrative Code of | 15 | | Illinois.
The abatement shall not exceed a period of 10 | 16 | | years.
The abatement shall be subject to the following | 17 | | limitations:
| 18 | | (i) if the equalized assessed valuation of the | 19 | | new electric generating
facility is equal to or | 20 | | greater than $25,000,000 but less
than | 21 | | $50,000,000, then the abatement may not exceed (i) | 22 | | over the entire term
of the abatement, 5% of the | 23 | | taxing district's aggregate taxes from the
new | 24 | | electric generating facility and (ii) in any one
| 25 | | year of abatement, 20% of the taxing district's | 26 | | taxes from the
new electric generating facility;
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| 1 | | (ii) if the equalized assessed valuation of | 2 | | the new electric
generating facility is equal to or | 3 | | greater than $50,000,000 but less
than | 4 | | $75,000,000, then the abatement may not exceed (i) | 5 | | over the entire term
of the abatement, 10% of the | 6 | | taxing district's aggregate taxes from the
new | 7 | | electric generating facility and (ii) in any one
| 8 | | year of abatement, 35% of the taxing district's | 9 | | taxes from the
new electric generating facility;
| 10 | | (iii) if the equalized assessed valuation of | 11 | | the new electric
generating facility
is equal to or | 12 | | greater than $75,000,000 but less
than | 13 | | $100,000,000, then the abatement may not exceed | 14 | | (i) over the entire term
of the abatement, 20% of | 15 | | the taxing district's aggregate taxes from the
new | 16 | | electric generating facility and (ii) in any one
| 17 | | year of abatement, 50% of the taxing district's | 18 | | taxes from the
new electric generating facility;
| 19 | | (iv) if the equalized assessed valuation of | 20 | | the new electric
generating facility is equal to or | 21 | | greater than $100,000,000 but less
than | 22 | | $125,000,000, then the
abatement may not exceed | 23 | | (i) over the entire term of the abatement, 30% of | 24 | | the
taxing district's aggregate taxes from the new | 25 | | electric generating facility
and (ii) in any one | 26 | | year of abatement, 60% of the taxing
district's |
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| 1 | | taxes from the new electric generating facility;
| 2 | | (v) if the equalized assessed valuation of the | 3 | | new electric generating
facility is equal to or | 4 | | greater than $125,000,000 but less
than | 5 | | $150,000,000, then the
abatement may not exceed | 6 | | (i) over the entire term of the abatement, 40% of | 7 | | the
taxing district's aggregate taxes from the new | 8 | | electric generating facility
and (ii) in any one | 9 | | year of abatement, 60% of the taxing
district's | 10 | | taxes from the new electric generating facility;
| 11 | | (vi) if the equalized assessed valuation of | 12 | | the new electric
generating facility is equal to or | 13 | | greater than $150,000,000, then the
abatement may | 14 | | not exceed (i) over the entire term of the | 15 | | abatement, 50% of the
taxing district's aggregate | 16 | | taxes from the new electric generating facility
| 17 | | and (ii) in any one year of abatement, 60% of the | 18 | | taxing
district's taxes from the new electric | 19 | | generating facility.
| 20 | | The abatement is not effective unless
the owner of | 21 | | the new electric generating facility agrees to
repay to | 22 | | the taxing district all amounts previously abated, | 23 | | together with
interest computed at the rate and in the | 24 | | manner provided for delinquent taxes,
in the event that | 25 | | the owner of the new electric generating facility | 26 | | closes the
new electric generating facility before the |
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| 1 | | expiration of the
entire term of the abatement.
| 2 | | The authorization of taxing districts to abate | 3 | | taxes under this
subdivision (a)(1)(A-5) expires on | 4 | | January 1, 2010.
| 5 | | (B) The property of any commercial or industrial
| 6 | | development of at least (i) 500 acres or (ii) 225 acres | 7 | | in the case of a commercial or industrial
development | 8 | | that applies for and is granted designation as a High | 9 | | Impact Business under paragraph (F) of item (3) of | 10 | | subsection (a) of Section 5.5 of the Illinois | 11 | | Enterprise Zone Act, having been created within the | 12 | | taxing
district. The abatement shall not exceed a | 13 | | period of 20 years and the
aggregate amount of abated | 14 | | taxes for all taxing districts combined shall not
| 15 | | exceed $12,000,000.
| 16 | | (C) The property of any commercial or industrial | 17 | | firm currently
located in the taxing district that | 18 | | expands a facility or its number of
employees. The | 19 | | abatement shall not exceed a period of 10 years and the
| 20 | | aggregate amount of abated taxes for all taxing | 21 | | districts combined shall not
exceed $4,000,000. The | 22 | | abatement period may be renewed at the option of the
| 23 | | taxing districts.
| 24 | | (2) Horse racing. Any property in the taxing district | 25 | | which
is used for the racing of horses and upon which | 26 | | capital improvements consisting
of expansion, improvement |
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| 1 | | or replacement of existing facilities have been made
since | 2 | | July 1, 1987. The combined abatements for such property | 3 | | from all taxing
districts in any county shall not exceed | 4 | | $5,000,000 annually and shall not
exceed a period of 10 | 5 | | years.
| 6 | | (3) Auto racing. Any property designed exclusively for | 7 | | the racing of
motor vehicles. Such abatement shall not | 8 | | exceed a period of 10 years.
| 9 | | (4) Academic or research institute. The property of any | 10 | | academic or
research institute in the taxing district that | 11 | | (i) is an exempt organization
under paragraph (3) of | 12 | | Section 501(c) of the Internal Revenue Code, (ii)
operates | 13 | | for the benefit of the public by actually and exclusively | 14 | | performing
scientific research and making the results of | 15 | | the research available to the
interested public on a | 16 | | non-discriminatory basis, and (iii) employs more than
100 | 17 | | employees. An abatement granted under this paragraph shall | 18 | | be for at
least 15 years and the aggregate amount of abated | 19 | | taxes for all taxing
districts combined shall not exceed | 20 | | $5,000,000.
| 21 | | (5) Housing for older persons. Any property in the | 22 | | taxing district that
is devoted exclusively to affordable | 23 | | housing for older households. For
purposes of this | 24 | | paragraph, "older households" means those households (i)
| 25 | | living in housing provided under any State or federal | 26 | | program that the
Department of Human Rights determines is |
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| 1 | | specifically designed and operated to
assist elderly | 2 | | persons and is solely occupied by persons 55 years of age | 3 | | or
older and (ii) whose annual income does not exceed 80% | 4 | | of the area gross median
income, adjusted for family size, | 5 | | as such gross income and median income are
determined from | 6 | | time to time by the United States Department of Housing and
| 7 | | Urban Development. The abatement shall not exceed a period | 8 | | of 15 years, and
the aggregate amount of abated taxes for | 9 | | all taxing districts shall not exceed
$3,000,000.
| 10 | | (6) Historical society. For assessment years 1998 | 11 | | through 2018, the
property of an historical society | 12 | | qualifying as an exempt organization under
Section | 13 | | 501(c)(3) of the federal Internal Revenue Code.
| 14 | | (7) Recreational facilities. Any property in the | 15 | | taxing district (i)
that is used for a municipal airport, | 16 | | (ii) that
is subject to a leasehold assessment under | 17 | | Section 9-195 of this Code and (iii)
which
is sublet from a | 18 | | park district that is leasing the property from a
| 19 | | municipality, but only if the property is used exclusively | 20 | | for recreational
facilities or for parking lots used | 21 | | exclusively for those facilities. The
abatement shall not | 22 | | exceed a period of 10 years.
| 23 | | (8) Relocated corporate headquarters. If approval | 24 | | occurs within 5 years
after the effective date of this | 25 | | amendatory Act of the 92nd General Assembly,
any property | 26 | | or a portion of any property in a taxing district that is |
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| 1 | | used by
an eligible business for a corporate headquarters | 2 | | as defined in the Corporate
Headquarters Relocation Act. | 3 | | Instead of an abatement under this paragraph (8),
a taxing | 4 | | district may enter into an agreement with an eligible | 5 | | business to make
annual payments to that eligible business | 6 | | in an amount not to exceed the
property taxes paid directly | 7 | | or indirectly by that eligible business to the
taxing | 8 | | district and any other taxing districts for
premises | 9 | | occupied pursuant to a written lease and may make those | 10 | | payments
without the need for an annual appropriation. No | 11 | | school district, however, may
enter into an agreement with, | 12 | | or abate taxes for, an eligible business unless
the | 13 | | municipality in which the corporate headquarters is | 14 | | located agrees to
provide funding to the school district in | 15 | | an amount equal to the amount abated
or paid by the school | 16 | | district as provided in this paragraph (8).
Any abatement | 17 | | ordered or
agreement entered into under this paragraph (8) | 18 | | may be effective for the entire
term specified by the | 19 | | taxing district, except the term of the abatement or
annual | 20 | | payments may not exceed 20 years. | 21 | | (9) United States Military Public/Private Residential | 22 | | Developments. Each building, structure, or other | 23 | | improvement designed, financed, constructed, renovated, | 24 | | managed, operated, or maintained after January 1, 2006 | 25 | | under a "PPV Lease", as set forth under Division 14 of | 26 | | Article 10, and any such PPV Lease.
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| 1 | | (10) Property located in a business corridor that | 2 | | qualifies for an abatement under Section 18-184.10. | 3 | | (b) Upon a majority vote of its governing authority, any | 4 | | municipality
may, after the determination of the assessed | 5 | | valuation of its property, order
the county clerk to abate any | 6 | | portion of its taxes on any property that is
located within the | 7 | | corporate limits of the municipality in accordance with
Section | 8 | | 8-3-18 of the Illinois Municipal Code.
| 9 | | (Source: P.A. 96-1136, eff. 7-21-10; 97-577, eff. 1-1-12; | 10 | | 97-636, eff. 6-1-12 .)
| 11 | | Section 25. The Public Utilities Act is amended by changing | 12 | | Section 9-222.1A as follows:
| 13 | | (220 ILCS 5/9-222.1A)
| 14 | | Sec. 9-222.1A. High impact business. Beginning on August 1, | 15 | | 1998 and
thereafter, a business enterprise that is certified as | 16 | | a High Impact Business
by the Department of Commerce and | 17 | | Economic Opportunity (formerly Department of Commerce and | 18 | | Community Affairs) is exempt from the tax
imposed by Section | 19 | | 2-4 of the Electricity Excise Tax Law, if the High Impact
| 20 | | Business is registered to self-assess that tax, and is exempt | 21 | | from any
additional charges added to the business enterprise's | 22 | | utility bills as a
pass-on of State utility taxes under Section | 23 | | 9-222 of this Act, to the extent
the tax or charges are | 24 | | exempted by the percentage specified by the Department
of |
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| 1 | | Commerce and Economic Opportunity for State utility taxes, | 2 | | provided the
business enterprise meets the following criteria:
| 3 | | (1) (A) it intends either (i) to make a minimum | 4 | | eligible investment
of
$12,000,000 that will be placed | 5 | | in service in qualified property in Illinois
and is | 6 | | intended to create at least 500 full-time equivalent | 7 | | jobs at a
designated
location in Illinois; or (ii) to | 8 | | make a minimum eligible investment of
$30,000,000 that | 9 | | will be placed in service in qualified property in
| 10 | | Illinois and is intended to retain at least 1,500 | 11 | | full-time equivalent jobs at
a designated location in | 12 | | Illinois; or
| 13 | | (B) it meets the criteria of subdivision | 14 | | (a)(3)(B), (a)(3)(C), or
(a)(3)(D) , or (a)(3)(F) of
| 15 | | Section 5.5 of the
Illinois Enterprise Zone Act;
| 16 | | (2) it is designated as a High Impact Business by the | 17 | | Department of
Commerce and Economic Opportunity; and
| 18 | | (3) it is certified by the Department of Commerce and | 19 | | Economic Opportunity as complying with the requirements | 20 | | specified in clauses (1) and (2) of
this Section.
| 21 | | The Department of Commerce and Economic Opportunity shall | 22 | | determine the period
during which the exemption from the | 23 | | Electricity Excise Tax Law and the
charges imposed under | 24 | | Section 9-222 are in effect, which shall not exceed 20
years | 25 | | from the date of initial certification, and shall specify the | 26 | | percentage
of the exemption from those taxes or additional |
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| 1 | | charges.
| 2 | | The Department of Commerce and Economic Opportunity is | 3 | | authorized to
promulgate rules and regulations to carry out the | 4 | | provisions of this Section,
including procedures for complying | 5 | | with the requirements specified in
clauses (1) and (2) of this | 6 | | Section and procedures for applying for the
exemptions | 7 | | authorized under this Section; to define the amounts and types | 8 | | of
eligible investments that business enterprises must make in | 9 | | order to receive
State utility tax exemptions or exemptions | 10 | | from the additional charges imposed
under Section 9-222 and | 11 | | this Section; to
approve such utility tax exemptions for | 12 | | business enterprises whose investments
are not yet placed in | 13 | | service; and to require that business enterprises
granted tax | 14 | | exemptions or exemptions from additional charges under Section
| 15 | | 9-222 repay the exempted amount if the business enterprise | 16 | | fails
to comply with the terms and conditions of the | 17 | | certification.
| 18 | | Upon certification of the business enterprises by the | 19 | | Department of Commerce
and Economic Opportunity, the | 20 | | Department of Commerce and Economic Opportunity shall
notify | 21 | | the Department of Revenue of the certification. The Department | 22 | | of
Revenue shall notify the public utilities of the exemption | 23 | | status of business
enterprises from the tax or pass-on charges | 24 | | of State utility taxes. The
exemption
status shall take effect | 25 | | within 3 months after certification of the
business enterprise.
| 26 | | (Source: P.A. 94-793, eff. 5-19-06.)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
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