Sen. Elgie R. Sims, Jr.

Filed: 4/5/2019





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2    AMENDMENT NO. ______. Amend Senate Bill 1591 by replacing
3everything from line 4 on page 1 through line 24 on page 5 with
4the following:
5    "Section 3. The Department of Commerce and Economic
6Opportunity Law of the Civil Administrative Code of Illinois is
7amended by adding Section 605-1025 as follows:
8    (20 ILCS 605/605-1025 new)
9    Sec. 605-1025. Data center investment.
10    (a) The Department shall issue certificates of exemption
11from the Retailers' Occupation Tax Act, the Use Tax Act, the
12Service Use Tax Act, and the Service Occupation Tax Act, all
13locally-imposed retailers' occupation taxes administered and
14collected by the Department, the Chicago non-titled Use Tax,
15the Electricity Excise Tax Act, and a credit certification
16against the taxes imposed under subsections (a) and (b) of



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1Section 201 of the Illinois Income Tax Act to qualifying
2Illinois data centers.
3    (b) For taxable years beginning on or after January 1,
42019, the Department shall award credits against the taxes
5imposed under subsections (a) and (b) of Section 201 of the
6Illinois Income Tax Act as provided in Section 229 of the
7Illinois Income Tax Act.
8    (c) For purposes of this Section:
9        "Data center" means a building or a series of buildings
10    that is rehabilitated or constructed to house working
11    servers in one physical location or several sites.
12        "Qualifying Illinois data center" means a new or
13    existing data center that:
14            (1) is located in the State of Illinois;
15            (2) in the case of an existing data center, made a
16        capital investment of at least $250,000,000
17        collectively by the data center operator and the
18        tenants of all of its data centers over the 60-month
19        period immediately prior to January 1, 2020 or
20        committed to make a capital investment of at least
21        $250,000,000 over a 60-month period commencing before
22        January 1, 2020 and ending after January 1, 2020; or
23            (3) in the case of a new data center, makes a
24        capital investment of at least $250,000,000 over a
25        60-month period; and
26            (4) in the case of both existing and new data



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1        centers, results in the creation of at least 20
2        full-time or full-time equivalent new jobs over a
3        period of 60 months by the data center operator and the
4        tenants of the data center, collectively, associated
5        with the operation or maintenance of the data center;
6        those jobs must have a total compensation equal to or
7        greater than 120% of the median wage paid to full-time
8        employees in the county where the data center is
9        located, as determined by the U.S. Bureau of Labor
10        Statistics; and
11            (5) is carbon neutral or attains certification
12        under one or more of the following green building
13        standards:
14                (A) BREEAM for New Construction or BREEAM
15            In-Use;
16                (B) ENERGY STAR;
17                (C) Envision;
18                (D) ISO 50001-energy management;
19                (E) LEED for Building Design and Construction
20            or LEED for Operations and Maintenance;
21                (F) Green Globes for New Construction or Green
22            Globes for Existing Buildings;
23                (G) UL 3223; or
24                (H) an equivalent program approved by the
25            Department of Commerce and Economic Opportunity.
26        "Full-time equivalent job" means a job in which the new



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1    employee works for the owner, operator, contractor, or
2    tenant of a data center or for a corporation under contract
3    with the owner, operator or tenant of a data center at a
4    rate of at least 35 hours per week. An owner, operator or
5    tenant who employs labor or services at a specific site or
6    facility under contract with another may declare one
7    full-time, permanent job for every 1,820 man hours worked
8    per year under that contract. Vacations, paid holidays, and
9    sick time are included in this computation. Overtime is not
10    considered a part of regular hours.
11        "Qualified tangible personal property" means:
12    electrical systems and equipment; climate control and
13    chilling equipment and systems; mechanical systems and
14    equipment; monitoring and secure systems; emergency
15    generators; hardware; computers; servers; data storage
16    devices; network connectivity equipment; racks; cabinets;
17    telecommunications cabling infrastructure; raised floor
18    systems; peripheral components or systems; software;
19    mechanical, electrical, or plumbing systems; battery
20    systems; cooling systems and towers; temperature control
21    systems; other cabling; and other data center
22    infrastructure equipment and systems necessary to operate
23    qualified tangible personal property, including fixtures;
24    and component parts of any of the foregoing, including
25    installation, maintenance, repair, refurbishment, and
26    replacement of qualified tangible personal property to



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1    generate, transform, transmit, distribute, or manage
2    electricity necessary to operate qualified tangible
3    personal property; and all other tangible personal
4    property that is essential to the operations of a computer
5    data center. "Qualified tangible personal property" also
6    includes building materials physically incorporated in to
7    the qualifying data center.
8     To document the exemption allowed under this Section, the
9retailer must obtain from the purchaser a copy of the
10certificate of eligibility issued by the Department.
11    (d) New and existing data centers seeking a certificate of
12exemption for new or existing facilities shall apply to the
13Department in the manner specified by the Department. The
14Department and any data center seeking the exemption, including
15a data center operator on behalf of itself and its tenants,
16must enter into a memorandum of understanding that at a minimum
18        (1) the details for determining the amount of capital
19    investment to be made;
20        (2) the number of new jobs created;
21        (3) the timeline for achieving the capital investment
22    and new job goals;
23        (4) the repayment obligation should those goals not be
24    achieved and any conditions under which repayment by the
25    qualifying data center or data center tenant claiming the
26    exemption will be required; and



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1        (5) other provisions as deemed necessary by the
2    Department.
3    (e) Beginning July 1, 2021, and each year thereafter, the
4Department shall annually report to the Governor and the
5General Assembly on the outcomes and effectiveness of this
6amendatory Act of the 101st General Assembly that shall include
7the following:
8        (1) the name of each recipient business;
9        (2) the location of the project;
10        (3) the estimated value of the credit;
11        (4) the number of new jobs and, if applicable, retained
12    jobs pledged as a result of the project; and
13        (5) whether or not the project is located in an
14    underserved area.
15    (f) New and existing data centers seeking a certificate of
16exemption related to the rehabilitation or construction of data
17centers in the State shall require the contractor and all
18subcontractors to comply with the requirements of Section 30-22
19of the Illinois Procurement Code as they apply to responsible
20bidders and to present satisfactory evidence of that compliance
21to the Department.
22    (g) New and existing data centers seeking a certificate of
23exemption for the rehabilitation or construction of data
24centers in the State shall require the contractor to enter into
25a project labor agreement approved by the Department."; and



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1on page 5, immediately below line 24, by inserting the
3    "Section 4. The Illinois Income Tax Act is amended by
4adding Section 229 as follows:
5    (35 ILCS 5/229 new)
6    Sec. 229. Data center construction employment tax credit.
7    (a) For tax years beginning on or after January 1, 2019, a
8taxpayer who has been awarded a credit by the Department of
9Commerce and Economic Opportunity under Section 605-1025 of the
10Department of Commerce and Economic Opportunity Law of the
11Civil Administrative Code of Illinois is entitled to a credit
12against the taxes imposed under subsections (a) and (b) of
13Section 201 of this Act. The amount of the credit shall be 20%
14of the wages paid during the taxable year to a full-time or
15part-time employee of a construction contractor employed by a
16certified data center if those wages are paid for the
17construction of a new data center in a geographic area that
18meets any one of the following criteria:
19        (1) the area has a poverty rate of at least 20%,
20    according to the latest federal decennial census;
21        (2) 75% or more of the children in the area participate
22    in the federal free lunch program, according to reported
23    statistics from the State Board of Education;
24        (3) 20% or more of the households in the area receive



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1    assistance under the Supplemental Nutrition Assistance
2    Program (SNAP); or
3        (4) the area has an average unemployment rate, as
4    determined by the Department of Employment Security, that
5    is more than 120% of the national unemployment average, as
6    determined by the U.S. Department of Labor, for a period of
7    at least 2 consecutive calendar years preceding the date of
8    the application.
9    If the taxpayer is a partnership, a Subchapter S
10corporation, or a limited liability company that has elected
11partnership tax treatment, the credit shall be allowed to the
12partners, shareholders, or members in accordance with the
13determination of income and distributive share of income under
14Sections 702 and 704 and subchapter S of the Internal Revenue
15Code, as applicable. The Department, in cooperation with the
16Department of Commerce and Economic Opportunity, shall adopt
17rules to enforce and administer this Section. This Section is
18exempt from the provisions of Section 250 of this Act.
19    (b) In no event shall a credit under this Section reduce
20the taxpayer's liability to less than zero. If the amount of
21the credit exceeds the tax liability for the year, the excess
22may be carried forward and applied to the tax liability of the
235 taxable years following the excess credit year. The tax
24credit shall be applied to the earliest year for which there is
25a tax liability. If there are credits for more than one year
26that are available to offset a liability, the earlier credit



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1shall be applied first.
2    (c) No credit shall be allowed with respect to any
3certification for any taxable year ending after the revocation
4of the certification by the Department of Commerce and Economic
5Opportunity. Upon receiving notification by the Department of
6Commerce and Economic Opportunity of the revocation of
7certification, the Department shall notify the taxpayer that no
8credit is allowed for any taxable year ending after the
9revocation date, as stated in such notification. If any credit
10has been allowed with respect to a certification for a taxable
11year ending after the revocation date, any refund paid to the
12taxpayer for that taxable year shall, to the extent of that
13credit allowed, be an erroneous refund within the meaning of
14Section 912 of this Act."; and
15on page 23, line 16, by replacing "Department" with "Department
16of Commerce and Economic Opportunity"; and
17on page 24, line 1, by replacing "Department" with "Department
18of Commerce and Economic Opportunity"; and
19on page 24, by replacing lines 3 and 4 with the following:
20"Section 605-1025 of the Department of Commerce and Economic
21Opportunity Law of the Civil Administrative Code of Illinois.";



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1on page 25, line 9, by replacing "Department" with "Department
2of Commerce and Economic Opportunity"; and
3on page 40, line 9, by replacing "Department" with "Department
4of Commerce and Economic Opportunity"; and
5on page 40, line 20, by replacing "Department" with "Department
6of Commerce and Economic Opportunity"; and
7on page 40, by replacing lines 22 and 23 with the following:
8"Section 605-1025 of the Department of Commerce and Economic
9Opportunity Law of the Civil Administrative Code of Illinois.";
11on page 42, line 2, by replacing "Department" with "Department
12of Commerce and Economic Opportunity"; and
13on page 55, line 15, by replacing "Department" with "Department
14of Commerce and Economic Opportunity"; and
15on page 55, line 26, by replacing "Department" with "Department
16of Commerce and Economic Opportunity"; and
17on page 56, by replacing lines 2 and 3 with the following:
18"Section 605-1025 of the Department of Commerce and Economic
19Opportunity Law of the Civil Administrative Code of Illinois.";



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2on page 57, line 8, by replacing "Department" with "Department
3of Commerce and Economic Opportunity"; and
4on page 78, line 17, by replacing "Department" with "Department
5of Commerce and Economic Opportunity"; and
6on page 79, line 3, by replacing "Department" with "Department
7of Commerce and Economic Opportunity"; and
8on page 79, by replacing lines 5 and 6 with the following:
9"Section 605-1025 of the Department of Commerce and Economic
10Opportunity Law of the Civil Administrative Code of Illinois.";
12on page 80, line 12, by replacing "Department" with "Department
13of Commerce and Economic Opportunity".