Full Text of HB2359 100th General Assembly
HB2359ham001 100TH GENERAL ASSEMBLY | Rep. Avery Bourne Filed: 3/16/2017
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| 1 | | AMENDMENT TO HOUSE BILL 2359
| 2 | | AMENDMENT NO. ______. Amend House Bill 2359 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Enterprise Zone Act is amended by | 5 | | changing Sections 4, 4.1, 5.1, 5.2, 5.3, and 8.1 as follows:
| 6 | | (20 ILCS 655/4) (from Ch. 67 1/2, par. 604)
| 7 | | Sec. 4. Qualifications for Enterprise Zones. | 8 | | (1) An area is qualified to become an enterprise zone | 9 | | which:
| 10 | | (a) is a contiguous area, provided that a zone area may | 11 | | exclude wholly
surrounded territory within its boundaries;
| 12 | | (b) comprises a minimum of one-half square mile and not | 13 | | more than 12
square miles, or 15 square miles if the zone | 14 | | is located within the
jurisdiction of 4 or more counties or | 15 | | municipalities, in total area,
exclusive of lakes and | 16 | | waterways;
however, in such cases where the enterprise zone |
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| 1 | | is a joint effort of
three or more units of government, or | 2 | | two or more units of government if
situated in a township | 3 | | which is divided by a municipality of 1,000,000 or
more | 4 | | inhabitants, and where the certification has been in
effect | 5 | | at least one year, the total area shall comprise a minimum | 6 | | of
one-half square mile and not more than thirteen square | 7 | | miles in total area
exclusive of lakes and waterways;
| 8 | | (c) (blank);
| 9 | | (d) (blank);
| 10 | | (e) is (1) entirely within a municipality or (2) | 11 | | entirely within
the unincorporated
areas of a county, | 12 | | except where reasonable need is established for such
zone | 13 | | to cover portions of more than one municipality or county | 14 | | or (3)
both comprises (i) all or part of a municipality and | 15 | | (ii) an unincorporated
area of a county; and
| 16 | | (f) meets 3 or more of the following criteria: | 17 | | (1) all or part of the local labor market area has | 18 | | had an annual average unemployment rate of at least | 19 | | 120% of the State's annual average unemployment rate | 20 | | for the most recent calendar year or the most recent | 21 | | fiscal year as reported by the Department of Employment | 22 | | Security; | 23 | | (2) designation will result in the development of | 24 | | substantial employment opportunities by creating or | 25 | | retaining a minimum aggregate of 1,000 full-time | 26 | | equivalent jobs due to an aggregate investment of |
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| 1 | | $100,000,000 or more, and will help alleviate the | 2 | | effects of poverty and unemployment within the local | 3 | | labor market area; | 4 | | (3) all or part of the local labor market area has | 5 | | a poverty rate of at least 20% according to the latest | 6 | | federal decennial census, 50% or more of children in | 7 | | the local labor market area participate in the federal | 8 | | free lunch program according to reported statistics | 9 | | from the State Board of Education, or 20% or more | 10 | | households in the local labor market area receive food | 11 | | stamps according to the latest federal decennial | 12 | | census; | 13 | | (4) an abandoned coal mine or a brownfield (as | 14 | | defined in Section 58.2 of the Environmental | 15 | | Protection Act) is located in the proposed zone area, | 16 | | or all or a portion of the proposed zone was declared a | 17 | | federal disaster area in the 3 years preceding the date | 18 | | of application; | 19 | | (5) the local labor market area contains a presence | 20 | | of large employers that have downsized over the years, | 21 | | the labor market area has experienced plant closures in | 22 | | the 5 years prior to the date of application affecting | 23 | | more than 50 workers, or the local labor market area | 24 | | has experienced State or federal facility closures in | 25 | | the 5 years prior to the date of application affecting | 26 | | more than 50 workers; |
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| 1 | | (6) based on data from Multiple Listing Service | 2 | | information or other suitable sources, the local labor | 3 | | market area contains a high floor vacancy rate of | 4 | | industrial or commercial properties, vacant or | 5 | | demolished commercial and industrial structures are | 6 | | prevalent in the local labor market area, or industrial | 7 | | structures in the local labor market area are not used | 8 | | because of age, deterioration, relocation of the | 9 | | former occupants, or cessation of operation; | 10 | | (7) the applicant demonstrates a substantial plan | 11 | | for using the designation to improve the State and | 12 | | local government tax base, including income, sales, | 13 | | and property taxes , including a plan for disposal of | 14 | | publicly-owned real property by the methods described | 15 | | in Section 10 of this Act ; | 16 | | (8) significant public infrastructure is present | 17 | | in the local labor market area in addition to a plan | 18 | | for infrastructure development and improvement; | 19 | | (9) high schools or community colleges located | 20 | | within the local labor market area are engaged in ACT | 21 | | Work Keys, Manufacturing Skills Standard | 22 | | Certification, or other industry-based credentials | 23 | | that prepare students for careers; or | 24 | | (10) the change in equalized assessed valuation of | 25 | | industrial and/or commercial properties in the 5 years | 26 | | prior to the date of application is equal to or less |
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| 1 | | than 50% of the State average change in equalized | 2 | | assessed valuation for industrial and/or commercial | 3 | | properties, as applicable, for the same period of time. | 4 | | As provided in Section 10-5.3 of the River Edge | 5 | | Redevelopment Zone Act, upon the expiration of the term of each | 6 | | River Edge Redevelopment Zone in existence on the effective | 7 | | date of this amendatory Act of the 97th General Assembly, that | 8 | | River Edge Redevelopment Zone will become available for its | 9 | | previous designee or a new applicant to compete for designation | 10 | | as an enterprise zone. No preference for designation will be | 11 | | given to the previous designee of the zone. | 12 | | (2) Any criteria established by the Department or by law | 13 | | which utilize the rate
of unemployment for a particular area | 14 | | shall provide that all persons who
are not presently employed | 15 | | and have exhausted all unemployment benefits
shall be | 16 | | considered unemployed, whether or not such persons are actively
| 17 | | seeking employment.
| 18 | | (Source: P.A. 97-905, eff. 8-7-12.)
| 19 | | (20 ILCS 655/4.1) | 20 | | Sec. 4.1. Department recommendations. | 21 | | (a) For all applications that qualify under Section 4 of | 22 | | this Act, the Department shall issue recommendations by | 23 | | assigning a score to each applicant. The scores will be | 24 | | determined by the Department, based on the extent to which an | 25 | | applicant meets the criteria points under subsection (f) of |
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| 1 | | Section 4 of this Act. Scores will be determined using the | 2 | | following scoring system: | 3 | | (1) Up to 50 points for the extent to which the | 4 | | applicant meets or exceeds the criteria in item (1) of | 5 | | subsection (f) of Section 4 of this Act, with points | 6 | | awarded according to the severity of the unemployment. | 7 | | (2) Up to 50 points for the extent to which the | 8 | | applicant meets or exceeds the criteria in item (2) of | 9 | | subsection (f) of Section 4 of this Act, with points | 10 | | awarded in accordance with the number of jobs created and | 11 | | the aggregate amount of investment promised. The | 12 | | Department may award partial points on a pro-rata basis | 13 | | under this paragraph (2) if the applicant demonstrates | 14 | | specific job creation and investment below the thresholds | 15 | | set forth in item (2) of subsection (f) of Section 4. | 16 | | (3) Up to 40 points for the extent to which the | 17 | | applicant meets or exceeds the criteria in item (3) of | 18 | | subsection (f) of Section 4 of this Act, with points | 19 | | awarded in accordance with the severity of the unemployment | 20 | | rate according to the latest federal decennial census. | 21 | | (4) Up to 30 points for the extent to which the | 22 | | applicant meets or exceeds the criteria in item (4) of | 23 | | subsection (f) of Section 4 of this Act, with points | 24 | | awarded in accordance with the severity of the | 25 | | environmental impact of the abandoned coal mine, | 26 | | brownfield, or federal disaster area. |
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| 1 | | (5) Up to 50 points for the extent to which the | 2 | | applicant meets or exceeds the criteria in item (5) of | 3 | | subsection (f) of Section 4 of this Act, with points | 4 | | awarded in accordance with the severity of the applicable | 5 | | facility closures or downsizing. | 6 | | (6) Up to 40 points for the extent to which the | 7 | | applicant meets or exceeds the criteria in item (6) of | 8 | | subsection (f) of Section 4 of this Act, with points | 9 | | awarded in accordance with the severity and extent of the | 10 | | high floor vacancy or deterioration. | 11 | | (7) Up to 30 points for the extent to which the | 12 | | applicant meets or exceeds the criteria in item (7) of | 13 | | subsection (f) of Section 4 of this Act, with points | 14 | | awarded in accordance with the extent to which the | 15 | | application addresses a plan to improve the State and local | 16 | | government tax base , including a plan for disposal of | 17 | | publicly-owned real property . | 18 | | (8) Up to 50 points for the extent to which the | 19 | | applicant meets or exceeds the criteria in item (8) of | 20 | | subsection (f) of Section 4 of this Act, with points | 21 | | awarded in accordance with the existence of significant | 22 | | public infrastructure. | 23 | | (9) Up to 40 points for the extent to which the | 24 | | applicant meets or exceeds the criteria in item (9) of | 25 | | subsection (f) of Section 4 of this Act, with points | 26 | | awarded in accordance with the extent to which educational |
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| 1 | | programs exist for career preparation. | 2 | | (10) Up to 40 points for the extent to which the | 3 | | applicant meets or exceeds the criteria in item (10) of | 4 | | subsection (f) of Section 4 of this Act, with points | 5 | | awarded according to the severity of the change in | 6 | | equalized assessed valuation. | 7 | | (11) In awarding points under paragraphs (1) through | 8 | | (10), the Department may adjust the scoring for applicants | 9 | | that are located entirely within a county with a population | 10 | | of less than 300,000 if the Department finds that the | 11 | | designation will help to alleviate the effects of poverty | 12 | | and unemployment within the proposed enterprise zone. | 13 | | (b) After assigning a score for each of the individual | 14 | | criteria using the point system as described in subsection (a), | 15 | | the Department shall then take the sum of the scores for each | 16 | | applicant and assign a final score. The Department shall then | 17 | | submit this information to the Board, as required in subsection | 18 | | (c) of Section 5.2, as its recommendation.
| 19 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| 20 | | (20 ILCS 655/5.1) (from Ch. 67 1/2, par. 606)
| 21 | | Sec. 5.1. Application to Department. | 22 | | (a) A county or municipality which
has adopted an ordinance | 23 | | designating an area as an enterprise zone shall
make written | 24 | | application to the Department to have such proposed enterprise
| 25 | | zone certified by the Department as an Enterprise Zone. The |
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| 1 | | application shall include:
| 2 | | (i) a certified copy of the ordinance designating the | 3 | | proposed zone;
| 4 | | (ii) a map of the proposed enterprise zone, showing | 5 | | existing streets and highways;
| 6 | | (iii) an analysis, and any appropriate supporting | 7 | | documents and statistics,
demonstrating that the proposed | 8 | | zone area is qualified in accordance with Section 4;
| 9 | | (iv) a statement detailing any tax, grant, and other | 10 | | financial incentives
or benefits, and any programs, to be | 11 | | provided by the municipality or county
to business | 12 | | enterprises within the zone, other than those provided in | 13 | | the
designating ordinance, which are not to be provided | 14 | | throughout the municipality
or county;
| 15 | | (v) a statement setting forth the economic development | 16 | | and planning objectives
for the zone;
| 17 | | (vi) a statement describing the functions, programs, | 18 | | and services to be
performed by designated zone | 19 | | organizations within the zone;
| 20 | | (vii) an estimate of the economic impact of the zone, | 21 | | considering all
of the tax incentives, financial benefits | 22 | | and programs contemplated, upon
the revenues of the | 23 | | municipality or county;
| 24 | | (viii) a transcript of all public hearings on the zone;
| 25 | | (ix) in the case of a joint application, a statement | 26 | | detailing the need
for a zone covering portions of more |
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| 1 | | than one municipality or county and
a description of the | 2 | | agreement between joint applicants; and
| 3 | | (x) such additional information as the Department by | 4 | | regulation may require.
| 5 | | (b) The Department may provide for provisional | 6 | | certification of substantially complete applications pending | 7 | | the receipt of any of the items identified in subsection (a) of | 8 | | this Section or any additional information requested by the | 9 | | Department. | 10 | | (Source: P.A. 82-1019.)
| 11 | | (20 ILCS 655/5.2) (from Ch. 67 1/2, par. 607)
| 12 | | Sec. 5.2. Department Review of Enterprise Zone | 13 | | Applications. | 14 | | (a) All
applications which are to be considered and acted | 15 | | upon by the Department
during a calendar year must be received | 16 | | by the Department no later than
December 31 of the preceding | 17 | | calendar year.
| 18 | | Any application received after December 31 of any calendar | 19 | | year shall
be held by the Department for consideration and | 20 | | action during the following
calendar year.
| 21 | | Each enterprise zone application shall include a specific | 22 | | definition of the applicant's local labor market area. | 23 | | (a-5) The Department shall, no later than July 31, 2013, | 24 | | develop an application process for an enterprise zone | 25 | | application. The Department has emergency rulemaking authority |
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| 1 | | for the purpose of application development only until 12 months | 2 | | after the effective date of this amendatory Act of the 97th | 3 | | General Assembly. | 4 | | (b) Upon receipt of an application from a county or | 5 | | municipality the Department
shall review the application to | 6 | | determine whether the designated area
qualifies as an | 7 | | enterprise zone under Section 4 of this Act.
| 8 | | (c) No later than June 30, the Department shall notify all | 9 | | applicant municipalities
and counties of the Department's | 10 | | determination of the qualification of their
respective | 11 | | designated enterprise zone areas, and shall send qualifying | 12 | | applications, including the applicant's scores for items (1) | 13 | | through (10) of subsection (a) of Section 4.1 and the | 14 | | applicant's final score under that Section, to the Board for | 15 | | the Board's consideration, along with supporting documentation | 16 | | of the basis for the Department's decision.
| 17 | | (d) If any such designated area is found to be qualified to | 18 | | be an enterprise
zone by the Department under subsection (c) of | 19 | | this Section, the Department shall, no later than July 15, send | 20 | | a letter of notification to each member of the General Assembly | 21 | | whose legislative district or representative district contains | 22 | | all or part of the designated area and publish a notice in at
| 23 | | least one newspaper of general circulation within the proposed | 24 | | zone area
to notify the general public of the application and | 25 | | their opportunity to
comment. Such notice shall include a | 26 | | description of the area and a brief
summary of the application |
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| 1 | | and shall indicate locations where the applicant
has provided | 2 | | copies of the application for public inspection. The notice
| 3 | | shall also indicate appropriate procedures for the filing of | 4 | | written comments
from zone residents, business, civic and other | 5 | | organizations and property
owners to the Department. The | 6 | | Department and the Board may consider written comments | 7 | | submitted pursuant to this Section or any other information | 8 | | regarding a pending enterprise zone application submitted | 9 | | after the deadline for enterprise zone application and received | 10 | | prior to the Board's decision on all pending applications.
| 11 | | (e) (Blank).
| 12 | | (f) (Blank).
| 13 | | (g) (Blank).
| 14 | | (h) (Blank).
| 15 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| 16 | | (20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)
| 17 | | Sec. 5.3. Certification of Enterprise Zones; effective | 18 | | date.
| 19 | | (a) Certification of Board-approved designated Enterprise | 20 | | Zones shall be made by the
Department by certification of the | 21 | | designating ordinance. The Department
shall promptly issue a | 22 | | certificate for each Enterprise Zone upon
approval by the | 23 | | Board. The certificate shall be signed by the Director of the
| 24 | | Department, shall make specific reference to the designating | 25 | | ordinance,
which shall be attached thereto, and shall be filed |
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| 1 | | in the office of the
Secretary of State. A certified copy of | 2 | | the Enterprise Zone Certificate, or
a duplicate original | 3 | | thereof, shall be recorded in the office of recorder
of deeds | 4 | | of the county in which the Enterprise Zone lies.
| 5 | | (b) An Enterprise Zone certified prior to January 1, 2016 | 6 | | or on or after January 1, 2017 shall be effective on January 1 | 7 | | of the first calendar year after Department certification. An | 8 | | Enterprise Zone certified on or after January 1, 2016 and on or | 9 | | before December 31, 2016 shall be effective on the date of the | 10 | | Department's certification. The
Department shall transmit a | 11 | | copy of the certification to the Department
of Revenue, and to | 12 | | the designating municipality or county.
| 13 | | Upon certification of an Enterprise Zone, the terms and | 14 | | provisions of the
designating ordinance shall be in effect, and | 15 | | may not be amended or repealed
except in accordance with | 16 | | Section 5.4.
| 17 | | (c) With the exception of Enterprise Zones scheduled to | 18 | | expire before December 31, 2018, an Enterprise Zone designated | 19 | | before the effective date of this amendatory Act of the 97th | 20 | | General Assembly shall be in effect for 30 calendar years, or | 21 | | for
a lesser number of years specified in the certified | 22 | | designating ordinance.
Notwithstanding the foregoing, any | 23 | | Enterprise Zone in existence on the effective date of this | 24 | | amendatory Act of the 98th General Assembly that has a term of | 25 | | 20 calendar years may be extended for an additional 10 calendar | 26 | | years upon amendment of the designating ordinance by the |
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| 1 | | designating municipality or county and submission of the | 2 | | ordinance to the Department. The amended ordinance must be | 3 | | properly recorded in the Office of Recorder of Deeds of each | 4 | | county in which the Enterprise Zone lies. Each Enterprise Zone | 5 | | in existence on the effective date of this amendatory Act of | 6 | | the 97th General Assembly that is scheduled to expire before | 7 | | July 1, 2016 may have its termination date extended until July | 8 | | 1, 2016 upon amendment of the designating ordinance by the | 9 | | designating municipality or county extending the termination | 10 | | date to July 1, 2016 and submission of the ordinance to the | 11 | | Department. The amended ordinance must be properly recorded in | 12 | | the Office of Recorder of Deeds of each county in which the | 13 | | Enterprise Zone lies. An Enterprise Zone designated on or after | 14 | | the effective date of this amendatory Act of the 97th General | 15 | | Assembly shall be in effect for a term of 15 calendar years, or | 16 | | for a lesser number of years specified in the certified | 17 | | designating ordinance. An enterprise zone designated on or | 18 | | after the effective date of this amendatory Act of the 97th | 19 | | General Assembly shall be subject to review by the Board after | 20 | | 13 years for an additional 10-year designation beginning on the | 21 | | expiration date of the enterprise zone. During the review | 22 | | process, the Board shall consider the costs incurred by the | 23 | | State and units of local government as a result of tax benefits | 24 | | received by the enterprise zone. Enterprise Zones shall | 25 | | terminate at midnight of December 31 of the final
calendar year | 26 | | of the certified term, except as provided in Section 5.4.
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| 1 | | (d) No more than 12 Enterprise Zones may be certified by | 2 | | the Department
in calendar year 1984, no more than 12 | 3 | | Enterprise Zones may be certified
by the Department in calendar | 4 | | year 1985, no more than 13 Enterprise
Zones may be certified by | 5 | | the Department in calendar year 1986, no
more than 15 | 6 | | Enterprise Zones may be certified by the Department in
calendar | 7 | | year 1987, and no more than 20 Enterprise Zones may be | 8 | | certified
by the Department in calendar year 1990. Except as | 9 | | otherwise provided, in In other calendar years, no more
than 13 | 10 | | Enterprise Zones may be certified by the Department.
In | 11 | | calendar year 2017, the Department may certify an additional 25 | 12 | | Enterprise Zones. The Department may also designate up to 8 | 13 | | additional Enterprise Zones
outside the regular application | 14 | | cycle if warranted by the extreme economic
circumstances as | 15 | | determined by the Department. The Department may also
designate | 16 | | one additional Enterprise Zone outside the regular application
| 17 | | cycle if an aircraft manufacturer agrees to locate
an aircraft | 18 | | manufacturing facility in the proposed Enterprise Zone.
| 19 | | Notwithstanding any
other provision of this Act, no more than | 20 | | 89 Enterprise Zones may be
certified by the Department for the | 21 | | 10 calendar years commencing with 1983.
The 7 additional | 22 | | Enterprise Zones authorized by Public Act
86-15 shall not lie | 23 | | within municipalities or unincorporated areas of
counties that | 24 | | abut or are contiguous to Enterprise Zones certified pursuant
| 25 | | to this Section prior to June 30, 1989. The 7 additional | 26 | | Enterprise
Zones (excluding the additional Enterprise Zone |
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| 1 | | which may be designated
outside the regular application cycle) | 2 | | authorized by Public Act 86-1030
shall not lie within | 3 | | municipalities or unincorporated areas of counties
that abut or | 4 | | are contiguous to Enterprise Zones certified pursuant to this
| 5 | | Section prior to February 28, 1990. Beginning in calendar year | 6 | | 2004 and until
December 31, 2008, one additional enterprise | 7 | | zone may be certified by the
Department. In any calendar year, | 8 | | the
Department
may not certify more than 3 Zones located within | 9 | | the same municipality. The
Department may certify Enterprise | 10 | | Zones in each of the 10 calendar years
commencing with 1983. | 11 | | The Department may not certify more than a total of
18 | 12 | | Enterprise Zones located within the same county (whether within
| 13 | | municipalities or within unincorporated territory) for the 10 | 14 | | calendar years
commencing with 1983. Thereafter, the | 15 | | Department may not certify any
additional Enterprise Zones, but | 16 | | may amend and rescind certifications of
existing Enterprise | 17 | | Zones in accordance with Section 5.4.
| 18 | | (e) Notwithstanding any other provision of law, if (i) the | 19 | | county board of
any county in which a current military base is | 20 | | located, in part or in whole, or
in which a military
base that | 21 | | has been closed within 20 years of the effective date of this
| 22 | | amendatory Act of 1998 is located, in part or in whole, adopts | 23 | | a designating
ordinance in accordance with Section 5 of this | 24 | | Act to designate the military
base in that county as an | 25 | | enterprise zone and (ii) the property otherwise
meets the
| 26 | | qualifications for an enterprise zone as prescribed in Section |
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| 1 | | 4 of this Act,
then the Department may certify the designating | 2 | | ordinance or ordinances, as the
case may be.
| 3 | | (f) Applications for Enterprise Zones that are scheduled to | 4 | | expire in 2016, including Enterprise Zones that have been | 5 | | extended until 2016 by this amendatory Act of the 97th General | 6 | | Assembly, shall be submitted to the Department no later than | 7 | | December 31, 2014. At that time, the Zone becomes available for | 8 | | either the previously designated area or a different area to | 9 | | compete for designation. No preference for designation as a | 10 | | Zone will be given to the previously designated area. | 11 | | For Enterprise Zones that are scheduled to expire on or | 12 | | after January 1, 2017 and prior to January 1, 2022 , an | 13 | | application process shall begin 2 years prior to the year in | 14 | | which the Zone expires. At that time, the Zone becomes | 15 | | available for either the previously designated area or a | 16 | | different area to compete for designation. For Enterprise Zones | 17 | | that are scheduled to expire on or after January 1, 2022, an | 18 | | application process shall begin 5 years prior to the year in | 19 | | which the Zone expires. At that time, the Zone becomes | 20 | | available for either the previously designated area or a | 21 | | different area to compete for designation. No preference for | 22 | | designation as a Zone will be given to the previously | 23 | | designated area. | 24 | | Each Enterprise Zone that reapplies for certification but | 25 | | does not receive a new certification shall expire on its | 26 | | scheduled termination date. |
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| 1 | | (Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
| 2 | | (20 ILCS 655/8.1) | 3 | | Sec. 8.1. Accounting. | 4 | | (a) Any business receiving tax incentives due to its | 5 | | location within an Enterprise Zone or its designation as a High | 6 | | Impact Business must annually report to the Department of | 7 | | Revenue information reasonably required by the Department of | 8 | | Revenue to enable the Department to verify and calculate the | 9 | | total Enterprise Zone or High Impact Business tax benefits for | 10 | | property taxes and taxes imposed by the State that are received | 11 | | by the business, broken down by incentive category and | 12 | | enterprise zone, if applicable. Reports will be due no later | 13 | | than May 31 of each year and shall cover the previous calendar | 14 | | year. The first report will be for the 2012 calendar year and | 15 | | will be due no later than May 31, 2013. Failure to report data | 16 | | shall may result in ineligibility to receive incentives. To the | 17 | | extent that a business receiving tax incentives has obtained an | 18 | | Enterprise Zone Building Materials Exemption Certificate or a | 19 | | High Impact Business Building Materials Exemption Certificate, | 20 | | that business is required to report those building materials | 21 | | exemption benefits only under subsection (a-5) of this Section. | 22 | | No additional reporting for those building materials exemption | 23 | | benefits is required under this subsection (a). In addition, if | 24 | | the Department determines that 80% or more of the businesses | 25 | | receiving tax incentives because of their location within a |
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| 1 | | particular Enterprise Zone failed to submit the information | 2 | | required under this subsection (a) to the Department in any | 3 | | calendar year, then the Enterprise Zone may be decertified by | 4 | | the Department. The Department, in consultation with the | 5 | | Department of Revenue, is authorized to adopt rules governing | 6 | | ineligibility to receive exemptions, including the length of | 7 | | ineligibility. Factors to be considered in determining whether | 8 | | a business is ineligible shall include, but are not limited to, | 9 | | prior compliance with the reporting requirements, cooperation | 10 | | in discontinuing and correcting violations, the extent of the | 11 | | violation, and whether the violation was willful or | 12 | | inadvertent. | 13 | | (a-5) Each contractor or other entity that has been issued | 14 | | an Enterprise Zone Building Materials Exemption Certificate | 15 | | under Section 5k of the Retailers' Occupation Tax Act or a High | 16 | | Impact Business Building Materials Exemption Certificate under | 17 | | Section 5l of the Retailers' Occupation Tax Act shall annually | 18 | | report to the Department of Revenue the total value of the | 19 | | Enterprise Zone or High Impact Business building materials | 20 | | exemption from State taxes. Reports shall contain information | 21 | | reasonably required by the Department of Revenue to enable it | 22 | | to verify and calculate the total tax benefits for taxes | 23 | | imposed by the State, and shall be broken down by Enterprise | 24 | | Zone. Reports are due no later than May 31 of each year and | 25 | | shall cover the previous calendar year. The first report will | 26 | | be for the 2013 calendar year and will be due no later than May |
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| 1 | | 31, 2014. Failure to report data may result in revocation of | 2 | | the Enterprise Zone Building Materials Exemption Certificate | 3 | | or High Impact Business Building Materials Exemption | 4 | | Certificate issued to the contractor or other entity. | 5 | | The Department of Revenue is authorized to adopt rules | 6 | | governing revocation determinations, including the length of | 7 | | revocation. Factors to be considered in revocations shall | 8 | | include, but are not limited to, prior compliance with the | 9 | | reporting requirements, cooperation in discontinuing and | 10 | | correcting violations, and whether the certificate was used | 11 | | unlawfully during the preceding year. | 12 | | (b) Each person required to file a return under the Gas | 13 | | Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise | 14 | | Tax Act, or the Telecommunications Excise Tax Act shall file, | 15 | | on or before May 31 of each year, a report with the Department | 16 | | of Revenue, in the manner and form required by the Department | 17 | | of Revenue, containing information reasonably required by the | 18 | | Department of Revenue to enable the Department of Revenue to | 19 | | calculate the amount of the deduction for taxes imposed by the | 20 | | State that is taken under each Act, respectively, due to the | 21 | | location of a business in an Enterprise Zone or its designation | 22 | | as a High Impact Business. The report shall be itemized by | 23 | | business and the business location address. | 24 | | (c) Employers shall report their job creation, retention, | 25 | | and capital investment numbers within the zone annually to the | 26 | | Department of Revenue no later than May 31 of each calendar |
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| 1 | | year. High Impact Businesses shall report their job creation, | 2 | | retention, and capital investment numbers to the Department of | 3 | | Revenue no later than May 31 of each year. | 4 | | (d) The Department of Revenue will aggregate and collect | 5 | | the tax, job, and capital investment data by Enterprise Zone | 6 | | and High Impact Business and report this information, formatted | 7 | | to exclude company-specific proprietary information, to the | 8 | | Department and the Board by August 1, 2013, and by August 1 of | 9 | | every calendar year thereafter. The Department will include | 10 | | this information in their required reports under Section 6 of | 11 | | this Act. The Board shall consider this information during the | 12 | | reviews required under subsection (d-5) of Section 5.4 of this | 13 | | Act and subsection (c) of Section 5.3 of this Act. | 14 | | (e) The Department of Revenue, in its discretion, may | 15 | | require that the reports filed under this Section be submitted | 16 | | electronically. | 17 | | (f) The Department of Revenue shall have the authority to | 18 | | adopt rules as are reasonable and necessary to implement the | 19 | | provisions of this Section.
| 20 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.".
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