Full Text of SB0652 100th General Assembly
SB0652ham003 100TH GENERAL ASSEMBLY | Rep. Lou Lang Filed: 5/28/2017
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| 1 | | AMENDMENT TO SENATE BILL 652
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 652 on page 1, line | 3 | | 5, after "40,", by inserting "45,"; and
| 4 | | on page 5, line 10, by replacing " $50,000,000 $20,000,000 " with | 5 | | "$20,000,000"; and | 6 | | on page 10, immediately below line 18, by inserting the | 7 | | following: | 8 | | " (g) Allocation rounds enabled by this Act shall be applied | 9 | | for according to the following schedule: | 10 | | (1) on January 2, 2019, $125,000,000 of qualified | 11 | | equity investments; and | 12 | | (2) on January 2, 2020, $125,000,000 of qualified | 13 | | equity investments. "; and | 14 | | on page 14, line 10, after " business. ", by inserting " This | 15 | | Section is not intended to affect ownership or affiliate |
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| 1 | | interests that arise following the sixth anniversary of the | 2 | | issuance of the qualified equity investment. "; and | 3 | | on page 14, immediately below line 10, by inserting the | 4 | | following: | 5 | | "(20 ILCS 663/45)
| 6 | | Sec. 45. Examination and Rulemaking. | 7 | | (a) The Department may conduct examinations to verify that | 8 | | the tax credits under this Act have been received and applied | 9 | | according to the requirements of this Act and to verify that no | 10 | | event has occurred that would result in a recapture of tax | 11 | | credits under Section 40. | 12 | | (b) The Department and the Department of Revenue shall have | 13 | | the authority to adopt rules under the Act. The Department and | 14 | | the Department of Revenue, in adopting rules, shall endeavor to | 15 | | make the administration of the Act compatible with the | 16 | | administration of the federal New Markets Tax Credit program. | 17 | | Adopted rules shall only apply to qualified equity investments | 18 | | in effect as of the application date set forth under subsection | 19 | | (g) of Section 25 of this Act for such qualified equity | 20 | | investment. Neither the Department nor the Department of | 21 | | Revenue shall have the authority to promulgate rules under the | 22 | | Act, but the Department and the Department of Revenue shall | 23 | | have the authority to issue advisory letters to individual | 24 | | qualified community development entities and their investors |
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| 1 | | that are limited to the specific facts outlined in an advisory | 2 | | letter request from a qualified community development entity. | 3 | | Such rulings cannot be relied upon by any person or entity | 4 | | other than the qualified community development entity that | 5 | | requested the letter and the taxpayers that are entitled to any | 6 | | tax credits generated from investments in such entity. For | 7 | | purposes of this subsection, "rules" is given the meaning | 8 | | contained in Section 1-70 of the Illinois Administrative | 9 | | Procedure Act. | 10 | | (c) In rendering advisory letters and making other | 11 | | determinations under this Act, to the extent applicable, the | 12 | | Department and the Department of Revenue shall look for | 13 | | guidance to Section 45D of the Internal Revenue Code of 1986, | 14 | | as amended, and the rules , and regulations , policies, and | 15 | | allocation agreement provisions issued thereunder.
| 16 | | (d) The Department may impose an administrative penalty on | 17 | | any qualified community development entity that violates the | 18 | | provisions of this Act or any adopted rule hereunder where | 19 | | recapture of credits is not a remedy. The penalty shall be | 20 | | $15,000 for each violation. Penalties shall be subject to a | 21 | | notice and cure period of not less than 30 days wherein a | 22 | | qualified community development entity shall be notified in | 23 | | writing of the violation and be given the opportunity to cure | 24 | | the violation. Each week a violation continues or occurs past | 25 | | such 30-day period is a separate violation. A qualified | 26 | | community development entity that has been assessed a penalty |
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| 1 | | may petition the Department for an administrative hearing to | 2 | | contest the basis of the administrative penalty. The | 3 | | Department's final decision imposing an administrative penalty | 4 | | is a final order and subject to the Administrative Review Law. | 5 | | The Department shall not certify any qualified equity | 6 | | investment in a qualified community development entity (or in | 7 | | an affiliate thereof) that has not satisfied an administrative | 8 | | penalty or has been assessed in aggregate $105,000 or more in | 9 | | administrative penalties within the prior 2 calendar years. | 10 | | (Source: P.A. 95-1024, eff. 12-31-08.)"; and | 11 | | on page 15, by replacing lines 6 through 22 with the following: | 12 | | "(20 ILCS 663/55 new) | 13 | | Sec. 55. Annual report. Each qualified community | 14 | | development entity shall submit an annual report to the | 15 | | Department within 45 days after the beginning of each calendar | 16 | | year during the compliance period. No annual report shall be | 17 | | due prior to the first anniversary of the initial credit | 18 | | allowance date. The report shall include, but is not limited | 19 | | to, the following: | 20 | | (1) an attestation from an authorized officer of the | 21 | | qualified community development entity that the entity has | 22 | | not been the subject of any investigation by a government | 23 | | agency relating to tax credits or financial services during | 24 | | the preceding calendar year; |
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| 1 | | (2) information with respect to all qualified | 2 | | low-income community investments made by the qualified | 3 | | community development entity, including: | 4 | | (A) the date and amount of, and bank statements or | 5 | | wire transfer reports documenting, such qualified | 6 | | low-income community investments; | 7 | | (B) the name, address, and EIN of each qualified | 8 | | active low-income community business funded by the | 9 | | qualified community development entity, the number of | 10 | | persons employed by such business at the time of the | 11 | | initial investment, and a brief description of the | 12 | | business, the financing, and community benefits of the | 13 | | financing; and | 14 | | (C) the number of employment positions maintained | 15 | | by each qualified active low-income community business | 16 | | as of the date of report or the end of the preceding | 17 | | calendar year and the average annual salaries of such | 18 | | positions; and | 19 | | (D) the total number of employment positions | 20 | | created and retained as a result of qualified | 21 | | low-income community investments and the average | 22 | | annual salaries of those positions; and | 23 | | (3) any changes with respect to the taxpayers entitled | 24 | | to claim tax credits with respect to qualified equity | 25 | | investments issued by the qualified community development | 26 | | entity since its last report pursuant to this Section. |
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| 1 | | The qualified community development entity is not required | 2 | | to provide the annual report set forth in this Section for | 3 | | qualified low-income community investments that have been | 4 | | redeemed or repaid. ".
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