Full Text of HB5172 100th General Assembly
HB5172ham001 100TH GENERAL ASSEMBLY | Rep. Stephanie A. Kifowit Filed: 4/11/2018
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| 1 | | AMENDMENT TO HOUSE BILL 5172
| 2 | | AMENDMENT NO. ______. Amend House Bill 5172 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Enterprise Zone Act is amended by | 5 | | changing Section 5.5 as follows:
| 6 | | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| 7 | | Sec. 5.5. High Impact Business.
| 8 | | (a) In order to respond to unique opportunities to assist | 9 | | in the
encouragement, development, growth and expansion of the | 10 | | private sector through
large scale investment and development | 11 | | projects, the Department is authorized
to receive and approve | 12 | | applications for the designation of "High Impact
Businesses" in | 13 | | Illinois subject to the following conditions:
| 14 | | (1) such applications may be submitted at any time | 15 | | during the year;
| 16 | | (2) such business is not located, at the time of |
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| 1 | | designation, in
an enterprise zone designated pursuant to | 2 | | this Act;
| 3 | | (3) the business intends to do one or more of the | 4 | | following:
| 5 | | (A) the business intends to make a minimum | 6 | | investment of
$12,000,000 which will be placed in | 7 | | service in qualified property and
intends to create 500 | 8 | | full-time equivalent jobs at a designated location
in | 9 | | Illinois or intends to make a minimum investment of | 10 | | $30,000,000 which
will be placed in service in | 11 | | qualified property and intends to retain 1,500
| 12 | | full-time retained jobs at a designated location in | 13 | | Illinois.
The business must certify in writing that the | 14 | | investments would not be
placed in service in qualified | 15 | | property and the job creation or job
retention would | 16 | | not occur without the tax credits and exemptions set | 17 | | forth
in subsection (b) of this Section. The terms | 18 | | "placed in service" and
"qualified property" have the | 19 | | same meanings as described in subsection (h)
of Section | 20 | | 201 of the Illinois Income Tax Act; or
| 21 | | (B) the business intends to establish a new | 22 | | electric generating
facility at a designated location | 23 | | in Illinois. "New electric generating
facility", for | 24 | | purposes of this Section, means a newly-constructed
| 25 | | electric
generation plant
or a newly-constructed | 26 | | generation capacity expansion at an existing electric
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| 1 | | generation
plant, including the transmission lines and | 2 | | associated
equipment that transfers electricity from | 3 | | points of supply to points of
delivery, and for which | 4 | | such new foundation construction commenced not sooner
| 5 | | than July 1,
2001. Such facility shall be designed to | 6 | | provide baseload electric
generation and shall operate | 7 | | on a continuous basis throughout the year;
and (i) | 8 | | shall have an aggregate rated generating capacity of at | 9 | | least 1,000
megawatts for all new units at one site if | 10 | | it uses natural gas as its primary
fuel and foundation | 11 | | construction of the facility is commenced on
or before | 12 | | December 31, 2004, or shall have an aggregate rated | 13 | | generating
capacity of at least 400 megawatts for all | 14 | | new units at one site if it uses
coal or gases derived | 15 | | from coal
as its primary fuel and
shall support the | 16 | | creation of at least 150 new Illinois coal mining jobs, | 17 | | or
(ii) shall be funded through a federal Department of | 18 | | Energy grant before December 31, 2010 and shall support | 19 | | the creation of Illinois
coal-mining
jobs, or (iii) | 20 | | shall use coal gasification or integrated | 21 | | gasification-combined cycle units
that generate
| 22 | | electricity or chemicals, or both, and shall support | 23 | | the creation of Illinois
coal-mining
jobs.
The
| 24 | | business must certify in writing that the investments | 25 | | necessary to establish
a new electric generating | 26 | | facility would not be placed in service and the
job |
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| 1 | | creation in the case of a coal-fueled plant
would not | 2 | | occur without the tax credits and exemptions set forth | 3 | | in
subsection (b-5) of this Section. The term "placed | 4 | | in service" has
the same meaning as described in | 5 | | subsection
(h) of Section 201 of the Illinois Income | 6 | | Tax Act; or
| 7 | | (B-5) the business intends to establish a new | 8 | | gasification
facility at a designated location in | 9 | | Illinois. As used in this Section, "new gasification | 10 | | facility" means a newly constructed coal gasification | 11 | | facility that generates chemical feedstocks or | 12 | | transportation fuels derived from coal (which may | 13 | | include, but are not limited to, methane, methanol, and | 14 | | nitrogen fertilizer), that supports the creation or | 15 | | retention of Illinois coal-mining jobs, and that | 16 | | qualifies for financial assistance from the Department | 17 | | before December 31, 2010. A new gasification facility | 18 | | does not include a pilot project located within | 19 | | Jefferson County or within a county adjacent to | 20 | | Jefferson County for synthetic natural gas from coal; | 21 | | or
| 22 | | (C) the business intends to establish
production | 23 | | operations at a new coal mine, re-establish production | 24 | | operations at
a closed coal mine, or expand production | 25 | | at an existing coal mine
at a designated location in | 26 | | Illinois not sooner than July 1, 2001;
provided that |
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| 1 | | the
production operations result in the creation of 150 | 2 | | new Illinois coal mining
jobs as described in | 3 | | subdivision (a)(3)(B) of this Section, and further
| 4 | | provided that the coal extracted from such mine is | 5 | | utilized as the predominant
source for a new electric | 6 | | generating facility.
The business must certify in | 7 | | writing that the
investments necessary to establish a | 8 | | new, expanded, or reopened coal mine would
not
be | 9 | | placed in service and the job creation would not
occur | 10 | | without the tax credits and exemptions set forth in | 11 | | subsection (b-5) of
this Section. The term "placed in | 12 | | service" has
the same meaning as described in | 13 | | subsection (h) of Section 201 of the
Illinois Income | 14 | | Tax Act; or
| 15 | | (D) the business intends to construct new | 16 | | transmission facilities or
upgrade existing | 17 | | transmission facilities at designated locations in | 18 | | Illinois,
for which construction commenced not sooner | 19 | | than July 1, 2001. For the
purposes of this Section, | 20 | | "transmission facilities" means transmission lines
| 21 | | with a voltage rating of 115 kilovolts or above, | 22 | | including associated
equipment, that transfer | 23 | | electricity from points of supply to points of
delivery | 24 | | and that transmit a majority of the electricity | 25 | | generated by a new
electric generating facility | 26 | | designated as a High Impact Business in accordance
with |
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| 1 | | this Section. The business must certify in writing that | 2 | | the investments
necessary to construct new | 3 | | transmission facilities or upgrade existing
| 4 | | transmission facilities would not be placed in service
| 5 | | without the tax credits and exemptions set forth in | 6 | | subsection (b-5) of this
Section. The term "placed in | 7 | | service" has the
same meaning as described in | 8 | | subsection (h) of Section 201 of the Illinois
Income | 9 | | Tax Act; or
| 10 | | (E) the business intends to establish a new wind | 11 | | power facility at a designated location in Illinois. | 12 | | For purposes of this Section, "new wind power facility" | 13 | | means a newly constructed electric generation | 14 | | facility, or a newly constructed expansion of an | 15 | | existing electric generation facility, placed in | 16 | | service on or after July 1, 2009, that generates | 17 | | electricity using wind energy devices, and such | 18 | | facility shall be deemed to include all associated | 19 | | transmission lines, substations, and other equipment | 20 | | related to the generation of electricity from wind | 21 | | energy devices. For purposes of this Section, "wind | 22 | | energy device" means any device, with a nameplate | 23 | | capacity of at least 0.5 megawatts, that is used in the | 24 | | process of converting kinetic energy from the wind to | 25 | | generate electricity; or | 26 | | (F) the business commits to (i) make a minimum |
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| 1 | | investment of $500,000,000, which will be placed in | 2 | | service in a qualified property, (ii) create 125 | 3 | | full-time equivalent jobs at a designated location in | 4 | | Illinois, (iii) establish a fertilizer plant at a | 5 | | designated location in Illinois that complies with the | 6 | | set-back standards as described in Table 1: Initial | 7 | | Isolation and Protective Action Distances in the 2012 | 8 | | Emergency Response Guidebook published by the United | 9 | | States Department of Transportation, (iv) pay a | 10 | | prevailing wage for employees at that location who are | 11 | | engaged in construction activities, and (v) secure an | 12 | | appropriate level of general liability insurance to | 13 | | protect against catastrophic failure of the fertilizer | 14 | | plant or any of its constituent systems; in addition, | 15 | | the business must agree to enter into a construction | 16 | | project labor agreement including provisions | 17 | | establishing wages, benefits, and other compensation | 18 | | for employees performing work under the project labor | 19 | | agreement at that location; for the purposes of this | 20 | | Section, "fertilizer plant" means a newly constructed | 21 | | or upgraded plant utilizing gas used in the production | 22 | | of anhydrous ammonia and downstream nitrogen | 23 | | fertilizer products for resale; for the purposes of | 24 | | this Section, "prevailing wage" means the hourly cash | 25 | | wages plus fringe benefits for training and
| 26 | | apprenticeship programs approved by the U.S. |
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| 1 | | Department of Labor, Bureau of
Apprenticeship and | 2 | | Training, health and welfare, insurance, vacations and
| 3 | | pensions paid generally, in the
locality in which the | 4 | | work is being performed, to employees engaged in
work | 5 | | of a similar character on public works; this paragraph | 6 | | (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; or and | 10 | | (G) the business intends to establish a new | 11 | | qualified hydroponics facility or expand production at | 12 | | an existing qualified hydroponics facility to engage | 13 | | in the practice of hydroponics, provided that the | 14 | | production operations result in the creation of at | 15 | | least 25 full-time-equivalent Illinois jobs; for the | 16 | | purposes of this paragraph: | 17 | | "hydroponics" means a system in which | 18 | | water-soluble nutrients are placed in intimate | 19 | | contact with a plant's root system, being grown in | 20 | | an inert supportive medium, which inert supportive | 21 | | medium itself supplies physical support for the | 22 | | roots and does not add or subtract plant nutrients; | 23 | | and | 24 | | "qualified hydroponics facility" means real | 25 | | property used for an indoor agriculture production | 26 | | operation using hydroponics techniques or |
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| 1 | | practices for growing plants produced by | 2 | | agriculture that are useful for human beings, | 3 | | including, but not limited to, forages, field | 4 | | crops, sod, berries, herbs, fruits, vegetables, | 5 | | flowers, seeds, and nursery stock; "qualified | 6 | | hydroponics facility" does not include an indoor | 7 | | agriculture production operation for growing | 8 | | plants that are illegal under federal law; and
| 9 | | (4) no later than 90 days after an application is | 10 | | submitted, the
Department shall notify the applicant of the | 11 | | Department's determination of
the qualification of the | 12 | | proposed High Impact Business under this Section.
| 13 | | (b) Businesses designated as High Impact Businesses | 14 | | pursuant to
subdivision (a)(3)(A) of this Section shall qualify | 15 | | for the credits and
exemptions described in the
following Acts: | 16 | | Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
| 17 | | subsection (h)
of Section 201 of the Illinois Income Tax Act,
| 18 | | and Section 1d of
the
Retailers' Occupation Tax Act; provided | 19 | | that these credits and
exemptions
described in these Acts shall | 20 | | not be authorized until the minimum
investments set forth in | 21 | | subdivision (a)(3)(A) of this
Section have been placed in
| 22 | | service in qualified properties and, in the case of the | 23 | | exemptions
described in the Public Utilities Act and Section 1d | 24 | | of the Retailers'
Occupation Tax Act, the minimum full-time | 25 | | equivalent jobs or full-time retained jobs set
forth in | 26 | | subdivision (a)(3)(A) of this Section have been
created or |
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| 1 | | retained.
Businesses designated as High Impact Businesses | 2 | | under
this Section shall also
qualify for the exemption | 3 | | described in Section 5l of the Retailers' Occupation
Tax Act. | 4 | | The credit provided in subsection (h) of Section 201 of the | 5 | | Illinois
Income Tax Act shall be applicable to investments in | 6 | | qualified property as set
forth in subdivision (a)(3)(A) of | 7 | | this Section.
| 8 | | (b-5) Businesses designated as High Impact Businesses | 9 | | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | 10 | | and (a)(3)(D) of this Section shall qualify
for the credits and | 11 | | exemptions described in the following Acts: Section 51 of
the | 12 | | Retailers' Occupation Tax Act, Section 9-222 and Section | 13 | | 9-222.1A of the
Public Utilities Act, and subsection (h) of | 14 | | Section 201 of the Illinois Income
Tax Act; however, the | 15 | | credits and exemptions authorized under Section 9-222 and
| 16 | | Section 9-222.1A of the Public Utilities Act, and subsection | 17 | | (h) of Section 201
of the Illinois Income Tax Act shall not be | 18 | | authorized until the new electric
generating facility, the new | 19 | | gasification facility, the new transmission facility, or the | 20 | | new, expanded, or
reopened coal mine is operational,
except | 21 | | that a new electric generating facility whose primary fuel | 22 | | source is
natural gas is eligible only for the exemption under | 23 | | Section 5l of the
Retailers' Occupation Tax Act.
| 24 | | (b-6) Businesses designated as High Impact Businesses | 25 | | pursuant to subdivision (a)(3)(E) of this Section shall qualify | 26 | | for the exemptions described in Section 5l of the Retailers' |
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| 1 | | Occupation Tax Act; any business so designated as a High Impact | 2 | | Business being, for purposes of this Section, a "Wind Energy | 3 | | Business". | 4 | | (c) High Impact Businesses located in federally designated | 5 | | foreign trade
zones or sub-zones are also eligible for | 6 | | additional credits, exemptions and
deductions as described in | 7 | | the following Acts: Section 9-221 and Section
9-222.1 of the | 8 | | Public
Utilities Act; and subsection (g) of Section 201, and | 9 | | Section 203
of the Illinois Income Tax Act.
| 10 | | (d) Except for businesses contemplated under subdivision | 11 | | (a)(3)(E) of this Section, existing Illinois businesses which | 12 | | apply for designation as a
High Impact Business must provide | 13 | | the Department with the prospective plan
for which 1,500 | 14 | | full-time retained jobs would be eliminated in the event that | 15 | | the
business is not designated.
| 16 | | (e) Except for new wind power facilities contemplated under | 17 | | subdivision (a)(3)(E) of this Section, new proposed facilities | 18 | | which apply for designation as High Impact
Business must | 19 | | provide the Department with proof of alternative non-Illinois
| 20 | | sites which would receive the proposed investment and job | 21 | | creation in the
event that the business is not designated as a | 22 | | High Impact Business.
| 23 | | (f) Except for businesses contemplated under subdivision | 24 | | (a)(3)(E) of this Section, in the event that a business is | 25 | | designated a High Impact Business
and it is later determined | 26 | | after reasonable notice and an opportunity for a
hearing as |
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| 1 | | provided under the Illinois Administrative Procedure Act, that
| 2 | | the business would have placed in service in qualified property | 3 | | the
investments and created or retained the requisite number of | 4 | | jobs without
the benefits of the High Impact Business | 5 | | designation, the Department shall
be required to immediately | 6 | | revoke the designation and notify the Director
of the | 7 | | Department of Revenue who shall begin proceedings to recover | 8 | | all
wrongfully exempted State taxes with interest. The business | 9 | | shall also be
ineligible for all State funded Department | 10 | | programs for a period of 10 years.
| 11 | | (g) The Department shall revoke a High Impact Business | 12 | | designation if
the participating business fails to comply with | 13 | | the terms and conditions of
the designation. However, the | 14 | | penalties for new wind power facilities or Wind Energy | 15 | | Businesses for failure to comply with any of the terms or | 16 | | conditions of the Illinois Prevailing Wage Act shall be only | 17 | | those penalties identified in the Illinois Prevailing Wage Act, | 18 | | and the Department shall not revoke a High Impact Business | 19 | | designation as a result of the failure to comply with any of | 20 | | the terms or conditions of the Illinois Prevailing Wage Act in | 21 | | relation to a new wind power facility or a Wind Energy | 22 | | Business.
| 23 | | (h) Prior to designating a business, the Department shall | 24 | | provide the
members of the General Assembly and Commission on | 25 | | Government Forecasting and Accountability
with a report | 26 | | setting forth the terms and conditions of the designation and
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| 1 | | guarantees that have been received by the Department in | 2 | | relation to the
proposed business being designated.
| 3 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.".
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