Full Text of HB1769 102nd General Assembly
HB1769sam001 102ND GENERAL ASSEMBLY | Sen. Steve Stadelman Filed: 10/25/2021
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| 1 | | AMENDMENT TO HOUSE BILL 1769
| 2 | | AMENDMENT NO. ______. Amend House Bill 1769 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Reimagining Electric Vehicles in Illinois Act. | 6 | | Section 5. Purpose. It is the intent of the General | 7 | | Assembly that Illinois should lead the nation in the | 8 | | production of electric vehicles. The General Assembly finds | 9 | | that, through investments in electric vehicle manufacturing, | 10 | | Illinois will be on the forefront of emerging technologies | 11 | | that are currently transforming the auto manufacturing | 12 | | industry. This Act will reduce carbon emissions, create good | 13 | | paying jobs, and generate long-term economic investment in the | 14 | | Illinois business economy. Illinois must aggressively adopt | 15 | | new business development investment tools so that Illinois is | 16 | | more competitive in site location decision-making for |
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| 1 | | manufacturing facilities directly related to the electric | 2 | | vehicle industry. Illinois' long-term development benefits | 3 | | from rational, strategic use of State resources in support of | 4 | | development and growth in the electric vehicle industry. | 5 | | The General Assembly finds that workers are essential to | 6 | | the prosperity of our State's economy and play a critical role | 7 | | in Illinois becoming leader in manufacturing. The General | 8 | | Assembly further finds that, for the prosperity of our State, | 9 | | workers in this industry must be afforded high quality jobs | 10 | | that honor the dignity of work. Therefore, the General | 11 | | Assembly finds that it is in the best interest of Illinois to | 12 | | protect the work conditions, worker safety, and worker rights | 13 | | in the manufacturing industry and further finds that employer | 14 | | workplace policies shall be interpreted broadly to protect | 15 | | employees. | 16 | | Section 10. Definitions. As used in this Act: | 17 | | "Agreement" means the agreement between a taxpayer and the | 18 | | Department under the provisions of Section 45 of this Act. | 19 | | "Applicant" means a taxpayer that (i) operates a business | 20 | | in Illinois or is planning to locate a business within the | 21 | | State of Illinois and (ii) is engaged in interstate or | 22 | | intrastate commerce for the purpose of manufacturing electric | 23 | | vehicles, electric vehicle component parts, or electric | 24 | | vehicle power supply equipment. "Applicant" does not include a | 25 | | taxpayer who closes or substantially reduces by more than 50% |
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| 1 | | operations at one location in the State and relocates | 2 | | substantially the same operation to another location in the | 3 | | State. This does not prohibit a Taxpayer from expanding its | 4 | | operations at another location in the State. This also does | 5 | | not prohibit a Taxpayer from moving its operations from one | 6 | | location in the State to another location in the State for the | 7 | | purpose of expanding the operation, provided that the | 8 | | Department determines that expansion cannot reasonably be | 9 | | accommodated within the municipality or county in which the | 10 | | business is located, or, in the case of a business located in | 11 | | an incorporated area of the county, within the county in which | 12 | | the business is located, after conferring with the chief | 13 | | elected official of the municipality or county and taking into | 14 | | consideration any evidence offered by the municipality or | 15 | | county regarding the ability to accommodate expansion within | 16 | | the municipality or county. | 17 | | "Capital improvements" means the purchase, renovation, | 18 | | rehabilitation, or construction of permanent tangible land, | 19 | | buildings, structures, equipment, and furnishings in an | 20 | | approved project sited in Illinois and expenditures for goods | 21 | | or services that are normally capitalized, including | 22 | | organizational costs and research and development costs | 23 | | incurred in Illinois. For land, buildings, structures, and | 24 | | equipment that are leased, the lease must equal or exceed the | 25 | | term of the agreement, and the cost of the property shall be | 26 | | determined from the present value, using the corporate |
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| 1 | | interest rate prevailing at the time of the application, of | 2 | | the lease payments. | 3 | | "Credit" means either a "REV Illinois Credit" or a "REV | 4 | | Construction Jobs Credit" agreed to between the Department and | 5 | | applicant under this Act. | 6 | | "Department" means the Department of Commerce and Economic | 7 | | Opportunity. | 8 | | "Director" means the Director of Commerce and Economic | 9 | | Opportunity. | 10 | | "Electric vehicle" means a vehicle that is exclusively | 11 | | powered by and refueled by electricity, must be plugged in to | 12 | | charge or utilize a pre-charged battery, and is permitted to | 13 | | operate on public roadways. "Electric vehicle" does not | 14 | | include electric motorcycles or hybrid electric vehicles and | 15 | | extended-range electric vehicles that are also equipped with | 16 | | conventional fueled propulsion or auxiliary engines. | 17 | | "Electric vehicle manufacturer" means a new or existing | 18 | | manufacturer that is focused on reequipping, expanding, or | 19 | | establishing a manufacturing facility in Illinois that | 20 | | produces electric vehicles as defined in this Section. | 21 | | "Electric vehicle component parts manufacturer" means a | 22 | | new or existing manufacturer that is focused on reequipping, | 23 | | expanding, or establishing a manufacturing facility in | 24 | | Illinois that produces key components that directly support | 25 | | the electric functions of electric vehicles, as defined by | 26 | | this Section. |
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| 1 | | "Electric vehicle power supply equipment" means the | 2 | | equipment used specifically for the purpose of delivering | 3 | | electricity to an electric vehicle. | 4 | | "Electric vehicle power supply manufacturer" means a new | 5 | | or existing manufacturer that is focused on reequipping, | 6 | | expanding, or establishing a manufacturing facility in | 7 | | Illinois that produces electric vehicle power supply equipment | 8 | | used for the purpose of delivering electricity to an electric | 9 | | vehicle. | 10 | | "Energy Transition Area" means a county with less than | 11 | | 100,000 people or a municipality that contains one or more of | 12 | | the following: | 13 | | (1)a fossil fuel plant that was retired from service | 14 | | or has significant reduced service within 6 years before | 15 | | the time of the application or will be retired or have | 16 | | service significantly reduced within 6 years following the | 17 | | time of the application; or | 18 | | (2) a coal mine that was closed or had operations | 19 | | significantly reduced within 6 years before the time of | 20 | | the application or is anticipated to be closed or have | 21 | | operations significantly reduced within 6 years following | 22 | | the time of the application. | 23 | | "Full-time employee" means an individual who is employed | 24 | | for consideration for at least 35 hours each week or who | 25 | | renders any other standard of service generally accepted by | 26 | | industry custom or practice as full-time employment. An |
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| 1 | | individual for whom a W-2 is issued by a Professional Employer | 2 | | Organization (PEO) is a full-time employee if employed in the | 3 | | service of the applicant for consideration for at least 35 | 4 | | hours each week. | 5 | | "Incremental income tax" means the total amount withheld | 6 | | during the taxable year from the compensation of new employees | 7 | | and, if applicable, retained employees under Article 7 of the | 8 | | Illinois Income Tax Act arising from employment at a project | 9 | | that is the subject of an agreement. | 10 | | "Institution of higher education" or "institution" means | 11 | | any accredited public or private university, college, | 12 | | community college, business, technical, or vocational school, | 13 | | or other accredited educational institution offering degrees | 14 | | and instruction beyond the secondary school level. | 15 | | "Minority person" means a minority person as defined in | 16 | | the Business Enterprise for Minorities, Women, and Persons | 17 | | with Disabilities Act. | 18 | | "New employee" means a newly-hired full-time employee | 19 | | employed to work at the project site and whose work is directly | 20 | | related to the project. | 21 | | "Noncompliance date" means, in the case of a taxpayer that | 22 | | is not complying with the requirements of the agreement or the | 23 | | provisions of this Act, the day following the last date upon | 24 | | which the taxpayer was in compliance with the requirements of | 25 | | the agreement and the provisions of this Act, as determined by | 26 | | the Director, pursuant to Section 70. |
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| 1 | | "Pass-through entity" means an entity that is exempt from | 2 | | the tax under subsection (b) or (c) of Section 205 of the | 3 | | Illinois Income Tax Act. | 4 | | "Placed in service" means the state or condition of | 5 | | readiness, availability for a specifically assigned function, | 6 | | and the facility is constructed and ready to conduct its | 7 | | facility operations to manufacture goods. | 8 | | "Professional employer organization" (PEO) means an | 9 | | employee leasing company, as defined in Section 206.1 of the | 10 | | Illinois Unemployment Insurance Act. | 11 | | "Program" means the Reimagining Electric Vehicles in | 12 | | Illinois Program (the REV Illinois Program) established in | 13 | | this Act. | 14 | | "Project" or "REV Illinois Project" means a for-profit | 15 | | economic development activity for the manufacture of electric | 16 | | vehicles, electric vehicle component parts, or electric | 17 | | vehicle power supply equipment which is designated by the | 18 | | Department as a REV Illinois Project and is the subject of an | 19 | | agreement. | 20 | | "Recycling facility" means a location at which the | 21 | | taxpayer disposes of batteries and other component parts in | 22 | | manufacturing of electric vehicles, electric vehicle component | 23 | | parts, or electric vehicle power supply equipment. | 24 | | "Related member" means a person that, with respect to the | 25 | | taxpayer during any portion of the taxable year, is any one of | 26 | | the following: |
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| 1 | | (1) An individual stockholder, if the stockholder and | 2 | | the members of the stockholder's family (as defined in | 3 | | Section 318 of the Internal Revenue Code) own directly, | 4 | | indirectly, beneficially, or constructively, in the | 5 | | aggregate, at least 50% of the value of the taxpayer's | 6 | | outstanding stock. | 7 | | (2) A partnership, estate, trust and any partner or | 8 | | beneficiary, if the partnership, estate, or trust, and its | 9 | | partners or beneficiaries own directly, indirectly, | 10 | | beneficially, or constructively, in the aggregate, at | 11 | | least 50% of the profits, capital, stock, or value of the | 12 | | taxpayer. | 13 | | (3) A corporation, and any party related to the | 14 | | corporation in a manner that would require an attribution | 15 | | of stock from the corporation under the attribution rules | 16 | | of Section 318 of the Internal Revenue Code, if the | 17 | | Taxpayer owns directly, indirectly, beneficially, or | 18 | | constructively at least 50% of the value of the | 19 | | corporation's outstanding stock. | 20 | | (4) A corporation and any party related to that | 21 | | corporation in a manner that would require an attribution | 22 | | of stock from the corporation to the party or from the | 23 | | party to the corporation under the attribution rules of | 24 | | Section 318 of the Internal Revenue Code, if the | 25 | | corporation and all such related parties own in the | 26 | | aggregate at least 50% of the profits, capital, stock, or |
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| 1 | | value of the taxpayer. | 2 | | (5) A person to or from whom there is an attribution of | 3 | | stock ownership in accordance with Section 1563(e) of the | 4 | | Internal Revenue Code, except, for purposes of determining | 5 | | whether a person is a related member under this paragraph, | 6 | | 20% shall be substituted for 5% wherever 5% appears in | 7 | | Section 1563(e) of the Internal Revenue Code. | 8 | | "Retained employee" means a full-time employee employed by | 9 | | the taxpayer prior to the term of the Agreement who continues | 10 | | to be employed during the term of the agreement whose job | 11 | | duties are directly and substantially related to the project. | 12 | | For purposes of this definition, "directly and substantially | 13 | | related to the project" means at least two-thirds of the | 14 | | employee's job duties must be directly related to the project | 15 | | and the employee must devote at least two-thirds of his or her | 16 | | time to the project. The term "retained employee" does not | 17 | | include any individual who has a direct or an indirect | 18 | | ownership interest of at least 5% in the profits, equity, | 19 | | capital, or value of the taxpayer or a child, grandchild, | 20 | | parent, or spouse, other than a spouse who is legally | 21 | | separated from the individual, of any individual who has a | 22 | | direct or indirect ownership of at least 5% in the profits, | 23 | | equity, capital, or value of the taxpayer. | 24 | | "REV Illinois credit" means a credit agreed to between the | 25 | | Department and the applicant under this Act that is based on | 26 | | the incremental income tax attributable to new employees and, |
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| 1 | | if applicable, retained employees, and on training costs for | 2 | | such employees at the applicant's project. | 3 | | "REV construction jobs credit" means a credit agreed to | 4 | | between the Department and the applicant under this Act that | 5 | | is based on the incremental income tax attributable to | 6 | | construction wages paid in connection with construction of the | 7 | | project facilities. | 8 | | "Statewide baseline" means the total number of full-time | 9 | | employees of the applicant and any related member employed by | 10 | | such entities at the time of application for incentives under | 11 | | this Act. | 12 | | "Taxpayer" means an individual, corporation, partnership, | 13 | | or other entity that has a legal obligation to pay Illinois | 14 | | income taxes and file an Illinois income tax return. | 15 | | "Training costs" means costs incurred to upgrade the | 16 | | technological skills of full-time employees in Illinois and | 17 | | includes: curriculum development; training materials | 18 | | (including scrap product costs); trainee domestic travel | 19 | | expenses; instructor costs (including wages, fringe benefits, | 20 | | tuition and domestic travel expenses); rent, purchase or lease | 21 | | of training equipment; and other usual and customary training | 22 | | costs. "Training costs" do not include costs associated with | 23 | | travel outside the United States (unless the Taxpayer receives | 24 | | prior written approval for the travel by the Director based on | 25 | | a showing of substantial need or other proof the training is | 26 | | not reasonably available within the United States), wages and |
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| 1 | | fringe benefits of employees during periods of training, or | 2 | | administrative cost related to Full-Time Employees of the | 3 | | Taxpayer. | 4 | | "Underserved area" means any geographic areas as defined | 5 | | in Section 5-5 of the Economic Development for a Growing | 6 | | Economy Tax Credit Act. | 7 | | Section 15. Powers of the Department. The Department, in | 8 | | addition to those powers granted under the Civil | 9 | | Administrative Code of Illinois, is granted and shall have all | 10 | | the powers necessary or convenient to administer the program | 11 | | under this Act and to carry out and effectuate the purposes and | 12 | | provisions of this Act, including, but not limited to, the | 13 | | power and authority to: | 14 | | (1) adopt rules deemed necessary and appropriate for | 15 | | the administration of the REV Illinois Program, the | 16 | | designation of REV Illinois Projects, and the awarding of | 17 | | credits; | 18 | | (2) establish forms for applications, notifications, | 19 | | contracts, or any other agreements and accept applications | 20 | | at any time during the year; | 21 | | (3) assist taxpayers pursuant to the provisions of | 22 | | this Act and cooperate with taxpayers that are parties to | 23 | | agreements under this Act to promote, foster, and support | 24 | | economic development, capital investment, and job creation | 25 | | or retention within the State; |
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| 1 | | (4) enter into agreements and memoranda of | 2 | | understanding for participation of, and engage in | 3 | | cooperation with, agencies of the federal government, | 4 | | units of local government, universities, research | 5 | | foundations or institutions, regional economic development | 6 | | corporations, or other organizations to implement the | 7 | | requirements and purposes of this Act; | 8 | | (5) gather information and conduct inquiries, in the | 9 | | manner and by the methods it deems desirable, including | 10 | | without limitation, gathering information with respect to | 11 | | applicants for the purpose of making any designations or | 12 | | certifications necessary or desirable or to gather | 13 | | information to assist the Department with any | 14 | | recommendation or guidance in the furtherance of the | 15 | | purposes of this Act; | 16 | | (6) establish, negotiate and effectuate agreements and | 17 | | any term, agreement, or other document with any person, | 18 | | necessary or appropriate to accomplish the purposes of | 19 | | this Act; and to consent, subject to the provisions of any | 20 | | agreement with another party, to the modification or | 21 | | restructuring of any agreement to which the Department is | 22 | | a party; | 23 | | (7) fix, determine, charge, and collect any premiums, | 24 | | fees, charges, costs, and expenses from applicants, | 25 | | including, without limitation, any application fees, | 26 | | commitment fees, program fees, financing charges, or |
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| 1 | | publication fees as deemed appropriate to pay expenses | 2 | | necessary or incident to the administration, staffing, or | 3 | | operation in connection with the Department's activities | 4 | | under this Act, or for preparation, implementation, and | 5 | | enforcement of the terms of the agreement, or for | 6 | | consultation, advisory and legal fees, and other costs; | 7 | | however, all fees and expenses incident thereto shall be | 8 | | the responsibility of the applicant; | 9 | | (8) provide for sufficient personnel to permit | 10 | | administration, staffing, operation, and related support | 11 | | required to adequately discharge its duties and | 12 | | responsibilities described in this Act from funds made | 13 | | available through charges to applicants or from funds as | 14 | | may be appropriated by the General Assembly for the | 15 | | administration of this Act; | 16 | | (9) require applicants, upon written request, to issue | 17 | | any necessary authorization to the appropriate federal, | 18 | | State, or local authority for the release of information | 19 | | concerning a project being considered under the provisions | 20 | | of this Act, with the information requested to include, | 21 | | but not be limited to, financial reports, returns, or | 22 | | records relating to the taxpayer or its project; | 23 | | (10) require that a taxpayer shall at all times keep | 24 | | proper books of record and account in accordance with | 25 | | generally accepted accounting principles consistently | 26 | | applied, with the books, records, or papers related to the |
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| 1 | | agreement in the custody or control of the taxpayer open | 2 | | for reasonable Department inspection and audits, and | 3 | | including, without limitation, the making of copies of the | 4 | | books, records, or papers, and the inspection or appraisal | 5 | | of any of the taxpayer or project assets; | 6 | | (11) take whatever actions are necessary or | 7 | | appropriate to protect the State's interest in the event | 8 | | of bankruptcy, default, foreclosure, or noncompliance with | 9 | | the terms and conditions of financial assistance or | 10 | | participation required under this Act, including the power | 11 | | to sell, dispose, lease, or rent, upon terms and | 12 | | conditions determined by the Director to be appropriate, | 13 | | real or personal property that the Department may receive | 14 | | as a result of these actions. | 15 | | Section 20. REV Illinois Program; project applications. | 16 | | (a) The Reimagining Electric Vehicles in Illinois (REV | 17 | | Illinois) Program is hereby established and shall be | 18 | | administered by the Department. The Program will provide | 19 | | financial incentives to eligible manufacturers of electric | 20 | | vehicles, electric vehicle component parts, and electric | 21 | | vehicle power supply equipment. | 22 | | (b) Any taxpayer planning a project to be located in | 23 | | Illinois may request consideration for designation of its | 24 | | project as a REV Illinois Project, by formal written letter of | 25 | | request or by formal application to the Department, in which |
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| 1 | | the applicant states its intent to make at least a specified | 2 | | level of investment and intends to hire a specified number of | 3 | | full-time employees at a designated location in Illinois. As | 4 | | circumstances require, the Department shall require a formal | 5 | | application from an applicant and a formal letter of request | 6 | | for assistance. | 7 | | (c) In order to qualify for credits under the REV Illinois | 8 | | Program, an Applicant must: | 9 | | (1) for an electric vehicle manufacturer: | 10 | | (A) make an investment of at least $1,500,000,000 | 11 | | in capital improvements at the project site; | 12 | | (B) to be placed in service within the State | 13 | | within a 60-month period after approval of the | 14 | | application; and | 15 | | (C) create at least 500 new full-time employee | 16 | | jobs; or | 17 | | (2) for an electric vehicle component parts | 18 | | manufacturer: | 19 | | (A) make an investment of at least $300,000,000 in | 20 | | capital improvements at the project site; | 21 | | (B) manufacture one or more parts that are | 22 | | primarily used for electric vehicle manufacturing; | 23 | | (C) to be placed in service within the State | 24 | | within a 60-month period after approval of the | 25 | | application; and | 26 | | (D) create at least 150 new full-time employee |
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| 1 | | jobs; or | 2 | | (3) for an electric vehicle manufacturer, electric | 3 | | vehicle power supply equipment Manufacturer, or electric | 4 | | vehicle component part manufacturer that does not quality | 5 | | under paragraph (2) above: | 6 | | (A) make an investment of at least $20,000,000 in | 7 | | capital improvements at the project site; | 8 | | (B) for electric vehicle component part | 9 | | manufacturers, manufacture one or more parts that are | 10 | | primarily used for electric vehicle manufacturing; | 11 | | (C) to be placed in service within the State | 12 | | within a 48-month period after approval of the | 13 | | application; and | 14 | | (D) create at least 50 new full-time employee | 15 | | jobs; or | 16 | | (4) for an electric vehicle manufacturer or electric | 17 | | vehicle component parts manufacturer with existing | 18 | | operations within Illinois that intends to convert or | 19 | | expand, in whole or in part, the existing facility from | 20 | | traditional manufacturing to electric vehicle | 21 | | manufacturing, electric vehicle component parts | 22 | | manufacturing, or electric vehicle power supply equipment | 23 | | manufacturing: | 24 | | (A) make an investment of at least $100,000,000 in | 25 | | capital improvements at the project site; | 26 | | (B) to be placed in service within the State |
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| 1 | | within a 60-month period after approval of the | 2 | | application; and | 3 | | (C) create the lesser of 75 new full-time employee | 4 | | jobs or new full-time employee jobs equivalent to 10% | 5 | | of the Statewide baseline applicable to the taxpayer | 6 | | and any related member at the time of application. | 7 | | (d) For any applicant creating the full-time employee jobs | 8 | | noted in subsection (c), those jobs must have a total | 9 | | compensation equal to or greater than 120% of the average wage | 10 | | paid to full-time employees in the county where the project is | 11 | | located, as determined by the U.S. Bureau of Labor Statistics. | 12 | | (e) For any applicant, within 24 months after being placed | 13 | | in service, it must certify to the Department that it is carbon | 14 | | neutral or has attained certification under one of more of the | 15 | | following green building standards: | 16 | | (1) BREEAM for New Construction or BREEAM In-Use; | 17 | | (2) ENERGY STAR; | 18 | | (3) Envision; | 19 | | (4) ISO 50001 – energy management; | 20 | | (5) LEED for Building Design and Construction or LEED | 21 | | for Building Operations and Maintenance; | 22 | | (6) Green Globes for New Construction or Green Globes | 23 | | for Existing Buildings; or | 24 | | (7) UL 3223. | 25 | | (f) Each applicant must outline its hiring plan and | 26 | | commitment to recruit and hire full-time employee positions at |
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| 1 | | the project site. The hiring plan may include a partnership | 2 | | with an institution of higher education to provide | 3 | | internships, including, but not limited to, internships | 4 | | supported by the Clean Jobs Workforce Network Program, or | 5 | | full-time permanent employment for students at the project | 6 | | site. Additionally, the applicant may create or utilize | 7 | | participants from apprenticeship programs that are approved by | 8 | | and registered with the United States Department of Labor's | 9 | | Bureau of Apprenticeship and Training. The Applicant may apply | 10 | | for apprenticeship education expense credits in accordance | 11 | | with the provisions set forth in 14 Ill. Admin. Code 522. Each | 12 | | applicant is required to report annually, on or before April | 13 | | 15, on the diversity of its workforce in accordance with | 14 | | Section 50 of this Act. For existing facilities of applicants | 15 | | under paragraph (3) of subsection (b) above, if the taxpayer | 16 | | expects a reduction in force due to its transition to | 17 | | manufacturing electric vehicle, electric vehicle component | 18 | | parts, or electric vehicle power supply equipment, the plan | 19 | | submitted under this Section must outline the taxpayer's plan | 20 | | to assist with retraining its workforce aligned with the | 21 | | taxpayer's adoption of new technologies and anticipated | 22 | | efforts to retrain employees through employment opportunities | 23 | | within the taxpayer's workforce. | 24 | | (g) Each applicant must demonstrate a contractual or other | 25 | | relationship with a recycling facility, or demonstrate its own | 26 | | recycling capabilities, at the time of application and report |
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| 1 | | annually a continuing contractual or other relationship with a | 2 | | recycling facility and the percentage of batteries used in | 3 | | electric vehicles recycled throughout the term of the | 4 | | agreement. | 5 | | (h) A taxpayer may not enter into more than one agreement | 6 | | under this Act with respect to a single address or location for | 7 | | the same period of time. Also, a taxpayer may not enter into an | 8 | | agreement under this Act with respect to a single address or | 9 | | location for the same period of time for which the taxpayer | 10 | | currently holds an active agreement under the Economic | 11 | | Development for a Growing Economy Tax Credit Act. This | 12 | | provision does not preclude the applicant from entering into | 13 | | an additional agreement after the expiration or voluntary | 14 | | termination of an earlier agreement under this Act or under | 15 | | the Economic Development for a Growing Economy Tax Credit Act | 16 | | to the extent that the taxpayer's application otherwise | 17 | | satisfies the terms and conditions of this Act and is approved | 18 | | by the Department. An applicant with an existing agreement | 19 | | under the Economic Development for a Growing Economy Tax | 20 | | Credit Act may submit an application for an agreement under | 21 | | this Act after it terminates any existing agreement under the | 22 | | Economic Development for a Growing Economy Tax Credit Act with | 23 | | respect to the same address or location. | 24 | | Section 25. Review of application. The Department shall | 25 | | determine which projects will benefit the State. In making its |
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| 1 | | recommendation that an applicant's application for credit | 2 | | should or should not be accepted, which shall occur within a | 3 | | reasonable time frame as determined by the nature of the | 4 | | application, the Department shall determine that all the | 5 | | following conditions exist: | 6 | | (1) the applicant intends to make the required | 7 | | investment in the State and intends to hire the required | 8 | | number of full-time employees; | 9 | | (2) the applicant's project is economically sound and | 10 | | will benefit the people of the State by increasing | 11 | | opportunities for employment and strengthen the economy of | 12 | | the State; | 13 | | (3) awarding the credit will result in an overall | 14 | | positive fiscal impact to the State, as certified by the | 15 | | Department using the best available data; and | 16 | | (4) the credit is not prohibited under this Act. | 17 | | Section 30. Tax credit awards. | 18 | | (a) Subject to the conditions set forth in this Act, a | 19 | | taxpayer is entitled to a credit against the tax imposed | 20 | | pursuant to subsections (a) and (b) of Section 201 of the | 21 | | Illinois Income Tax Act for a taxable year beginning on or | 22 | | after January 1, 2025 if the taxpayer is awarded a credit by | 23 | | the Department in accordance with an agreement under this Act. | 24 | | The Department has authority to award credits under this Act | 25 | | on and after January 1, 2022. |
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| 1 | | (b) REV Illinois Credits. A taxpayer may receive a tax | 2 | | credit against the tax imposed under subsections (a) and (b) | 3 | | of Section 201 of the Illinois Income Tax Act, not to exceed | 4 | | the sum of (i) 75% of the incremental income tax attributable | 5 | | to new employees at the applicant's project and (ii) 10% of the | 6 | | training costs of the new employees. If the project is located | 7 | | in an underserved area or an energy transition area, then the | 8 | | amount of the credit may not exceed the sum of (i) 100% of the | 9 | | incremental income tax attributable to new employees at the | 10 | | applicant's project; and (ii) 10% of the training costs of the | 11 | | new employees. The percentage of training costs includable in | 12 | | the calculation may be increased by an additional 15% for | 13 | | training costs associated with new employees that are recent | 14 | | (2 years or less) graduates, certificate holders, or | 15 | | credential recipients from an institution of higher education | 16 | | in Illinois, or, if the training is provided by an institution | 17 | | of higher education in Illinois or an apprenticeship and | 18 | | training program located in Illinois and approved by and | 19 | | registered with the United States Department of Labor's Bureau | 20 | | of Apprenticeship and Training. The percentage of training | 21 | | costs includable in the calculation shall not exceed a total | 22 | | of 25%. If an applicant agrees to hire the required number of | 23 | | new employees, then the maximum amount of the credit for that | 24 | | applicant may be increased by an amount not to exceed 25% of | 25 | | the incremental income tax attributable to retained employees | 26 | | at the applicant's project; provided that, in order to receive |
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| 1 | | the increase for retained employees, the applicant must, if | 2 | | applicable, meet or exceed the statewide baseline. If the | 3 | | Project is in an underserved area or an energy transition | 4 | | area, the maximum amount of the credit attributable to | 5 | | retained employees for the applicant may be increased to an | 6 | | amount not to exceed 50% of the incremental income tax | 7 | | attributable to retained employees at the applicant's project; | 8 | | provided that, in order to receive the increase for retained | 9 | | employees, the applicant must meet or exceed the statewide | 10 | | baseline. REV Illinois Credits awarded may include credit | 11 | | earned for incremental income tax withheld and training costs | 12 | | incurred by the taxpayer in any taxable year beginning on or | 13 | | after January 1, 2022. Credits so earned and certified by the | 14 | | Department may be applied against the tax imposed by | 15 | | subsections (a) and (b) of Section 201 of the Illinois Income | 16 | | Tax Act for taxable years beginning on or after January 1, | 17 | | 2025. | 18 | | (c) REV Construction Jobs Credit. For construction wages | 19 | | associated with a project that qualified for a REV Illinois | 20 | | Credit under subsection (b), the taxpayer may receive a tax | 21 | | credit against the tax imposed under subsections (a) and (b) | 22 | | of Section 201 of the Illinois Income Tax Act in an amount | 23 | | equal to 50% of the incremental income tax attributable to | 24 | | construction wages paid in connection with construction of the | 25 | | project facilities, as a jobs credit for workers hired to | 26 | | construct the project. |
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| 1 | | The REV Construction Jobs Credit may not exceed 75% of the | 2 | | amount of the incremental income tax attributable to | 3 | | construction wages paid in connection with construction of the | 4 | | project facilities if the project is in an underserved area or | 5 | | an energy transition area. | 6 | | (d) The Department shall certify to the Department of | 7 | | Revenue: (1)the identity of Taxpayers that are eligible for | 8 | | the REV Illinois Credit and REV Construction Jobs Credit; | 9 | | (2)the amount of the REV Illinois Credits and REV Construction | 10 | | Jobs Credits awarded in each calendar year; and (3) the amount | 11 | | of the REV Illinois Credit and REV Construction Jobs Credit | 12 | | claimed in each calendar year. REV Illinois Credits awarded | 13 | | may include credit earned for Incremental Income Tax withheld | 14 | | and Training Costs incurred by the Taxpayer in any taxable | 15 | | year beginning on or after January 1, 2022. Credits so earned | 16 | | and certified by the Department may be applied against the tax | 17 | | imposed by section 201(a) and (b) of the Illinois Income Tax | 18 | | Act for taxable years beginning on or after January 1, 2025. | 19 | | (e) Applicants seeking certification for a tax credits | 20 | | related to the construction of the project facilities in the | 21 | | State shall require the contractor to enter into a project | 22 | | labor agreement approved by the Department of Labor. | 23 | | (f) Any applicant issued a certificate for a tax credit or | 24 | | tax exemption under this Act must annually report to the | 25 | | Department the total project tax benefits received. Reports | 26 | | are due no later than May 31 of each year and shall cover the |
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| 1 | | previous calendar year. The first report is for the 2022 | 2 | | calendar year and is due no later than May 31, 2023. | 3 | | (g) Nothing in this Act shall prohibit an award of credit | 4 | | to an applicant that uses a PEO if all other award criteria are | 5 | | satisfied. | 6 | | (h) With respect to any portion of a REV Illinois Credit | 7 | | that is based on the incremental income tax attributable to | 8 | | new employees or retained employees, in lieu of the Credit | 9 | | allowed under this Act against the taxes imposed pursuant to | 10 | | subsections (a) and (b) of Section 201 of the Illinois Income | 11 | | Tax Act, a taxpayer that otherwise meets the criteria set | 12 | | forth in this Section, the taxpayer may elect to claim the | 13 | | credit, on or after January 1, 2025, against its obligation to | 14 | | pay over withholding under Section 704A of the Illinois Income | 15 | | Tax Act. The election shall be made in the manner prescribed by | 16 | | the Department of Revenue and once made shall be irrevocable. | 17 | | (i) A pass-through entity that has been awarded a credit | 18 | | under this Act, its shareholders, or its partners may treat | 19 | | some or all the credit awarded pursuant to this Act as a tax | 20 | | payment for purposes of the Illinois Income Tax Act. The term | 21 | | "tax payment" means a payment as described in Article 6 or | 22 | | Article 8 of the Illinois Income Tax Act or a composite payment | 23 | | made by a pass-through entity on behalf of any of its | 24 | | shareholders or partners to satisfy such shareholders' or | 25 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 26 | | Section 201 of the Illinois Income Tax Act. In no event shall |
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| 1 | | the amount of the award credited pursuant to this Act exceed | 2 | | the Illinois income tax liability of the pass-through entity | 3 | | or its shareholders or partners for the taxable year.
| 4 | | Section 35. Relocation of jobs in Illinois. A taxpayer is | 5 | | not entitled to claim a credit provided by this Act with | 6 | | respect to any jobs that the Taxpayer relocates from one site | 7 | | in Illinois to another site in Illinois. Any full-time | 8 | | employee relocated to Illinois in connection with a qualifying | 9 | | project is deemed to be a new employee for purposes of this | 10 | | Act. Determinations under this Section shall be made by the | 11 | | Department. | 12 | | Section 40. Amount and duration of the credits; limitation | 13 | | to amount of costs of specified items. The Department shall | 14 | | determine the amount and duration of the REV Illinois Credit | 15 | | awarded under this Act, subject to the limitations set forth | 16 | | in this Act. For a project that qualified under paragraph (1), | 17 | | (2), or (4) of subsection (c) of Section 20, the duration of | 18 | | the credit may not exceed 15 taxable years. For project that | 19 | | qualified under paragraph (3) of subsection (c) of Section 20, | 20 | | the duration of the credit may not exceed 10 taxable years. The | 21 | | credit may be stated as a percentage of the incremental income | 22 | | tax and training costs attributable to the applicant's project | 23 | | and may include a fixed dollar limitation. | 24 | | Nothing in this Section shall prevent the Department, in |
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| 1 | | consultation with the Department of Revenue, from adopting | 2 | | rules to extend the sunset of any earned, existing, and unused | 3 | | tax credit or credits a taxpayer may be in possession of, as | 4 | | provided for in Section 605-1055 of the Department of Commerce | 5 | | and Economic Opportunity Law of the Civil Administrative Code | 6 | | of Illinois, notwithstanding the carry-forward provisions | 7 | | pursuant to paragraph (4) of Section 211 of the Illinois | 8 | | Income Tax Act. | 9 | | Section 45. Contents of agreements with applicants. | 10 | | (a) The Department shall enter into an agreement with an | 11 | | applicant that is awarded a credit under this Act. The | 12 | | agreement shall include all of the following: | 13 | | (1) A detailed description of the project that is the | 14 | | subject of the agreement, including the location and | 15 | | amount of the investment and jobs created or retained. | 16 | | (2) The duration of the credit, the first taxable year | 17 | | for which the credit may be awarded, and the first taxable | 18 | | year in which the credit may be used by the taxpayer. | 19 | | (3) The credit amount that will be allowed for each | 20 | | taxable year. | 21 | | (4) For a project qualified under paragraphs (1), (2), | 22 | | or (4) of subsection (c) of Section 20, a requirement that | 23 | | the taxpayer shall maintain operations at the project | 24 | | location a minimum number of years not to exceed 15. For | 25 | | project qualified under paragraph (3) of subsection (c) of |
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| 1 | | Section 20, a requirement that the taxpayer shall maintain | 2 | | operations at the project location a minimum number of | 3 | | years not to exceed 10. | 4 | | (5) A specific method for determining the number of | 5 | | new employees and if applicable, retained employees, | 6 | | employed during a taxable year. | 7 | | (6) A requirement that the taxpayer shall annually | 8 | | report to the Department the number of new employees, the | 9 | | incremental income tax withheld in connection with the new | 10 | | employees, and any other information the Department deems | 11 | | necessary and appropriate to perform its duties under this | 12 | | Act. | 13 | | (7) A requirement that the Director is authorized to | 14 | | verify with the appropriate State agencies the amounts | 15 | | reported under paragraph (6), and after doing so shall | 16 | | issue a certificate to the taxpayer stating that the | 17 | | amounts have been verified. | 18 | | (8) A requirement that the taxpayer shall provide | 19 | | written notification to the Director not more than 30 days | 20 | | after the taxpayer makes or receives a proposal that would | 21 | | transfer the taxpayer's State tax liability obligations to | 22 | | a successor taxpayer. | 23 | | (9) A detailed description of the number of new | 24 | | employees to be hired, and the occupation and payroll of | 25 | | full-time jobs to be created or retained because of the | 26 | | project. |
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| 1 | | (10) The minimum investment the taxpayer will make in | 2 | | capital improvements, the time period for placing the | 3 | | property in service, and the designated location in | 4 | | Illinois for the investment. | 5 | | (11) A requirement that the taxpayer shall provide | 6 | | written notification to the Director and the Director's | 7 | | designee not more than 30 days after the taxpayer | 8 | | determines that the minimum job creation or retention, | 9 | | employment payroll, or investment no longer is or will be | 10 | | achieved or maintained as set forth in the terms and | 11 | | conditions of the agreement. Additionally, the | 12 | | notification should outline to the Department the number | 13 | | of layoffs, date of the layoffs, and detail taxpayer's | 14 | | efforts to provide career and training counseling for the | 15 | | impacted workers with industry-related certifications and | 16 | | trainings. | 17 | | (12) A provision that, if the total number of new | 18 | | employees falls below a specified level, the allowance of | 19 | | credit shall be suspended until the number of new | 20 | | employees equals or exceeds the agreement amount. | 21 | | (13) If applicable, a provision that specifies the | 22 | | statewide baseline at the time of application for retained | 23 | | employees. Additionally, the agreement must have a | 24 | | provision addressing if the total number retained | 25 | | employees falls below the statewide baseline, the | 26 | | allowance of the credit shall be suspended until the |
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| 1 | | number of retained employees equals or exceeds the | 2 | | agreement amount. | 3 | | (14) A detailed description of the items for which the | 4 | | costs incurred by the Taxpayer will be included in the | 5 | | limitation on the Credit provided in Section 40. | 6 | | (15) A provision stating that if the taxpayer fails to | 7 | | meet either the investment or job creation and retention | 8 | | requirements specified in the agreement during the entire | 9 | | 5-year period beginning on the first day of the first | 10 | | taxable year in which the agreement is executed and ending | 11 | | on the last day of the fifth taxable year after the | 12 | | agreement is executed, then the agreement is automatically | 13 | | terminated on the last day of the fifth taxable year after | 14 | | the agreement is executed, and the taxpayer is not | 15 | | entitled to the award of any credits for any of that 5-year | 16 | | period. | 17 | | (16) A provision stating that if the taxpayer ceases | 18 | | principal operations with the intent to permanently shut | 19 | | down the project in the State during the term of the | 20 | | Agreement, then the entire credit amount awarded to the | 21 | | taxpayer prior to the date the taxpayer ceases principal | 22 | | operations shall be returned to the Department and shall | 23 | | be reallocated to the local workforce investment area in | 24 | | which the project was located. | 25 | | (17) A provision stating that the Taxpayer must | 26 | | provide the reports outlined in Sections 50 and 55 on or |
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| 1 | | before April 15 each year. | 2 | | (18) A provision requiring the taxpayer to report | 3 | | annually its contractual obligations or otherwise with a | 4 | | recycling facility for its operations. | 5 | | (19) Any other performance conditions or contract | 6 | | provisions the Department determines are necessary or | 7 | | appropriate. | 8 | | (b) The Department shall post on its website the terms of | 9 | | each agreement entered into under this Act. Such information | 10 | | shall be posted within 10 days after entering into the | 11 | | agreement and must include the following: | 12 | | (1) the name of the taxpayer; | 13 | | (2) the location of the project; | 14 | | (3) the estimated value of the credit; | 15 | | (4) the number of new employee jobs and, if | 16 | | applicable, number of retained employee jobs at the | 17 | | project; and | 18 | | (5) whether or not the project is in an underserved | 19 | | area or energy transition area. | 20 | | Section 50. Diversity report on the taxpayer's workforce, | 21 | | board of directors, and vendors. | 22 | | (a) Each taxpayer with an agreement for a REV Illinois | 23 | | project under this Act shall, starting on April 15, 2025, and | 24 | | every year thereafter prior to April 15, for which the | 25 | | Taxpayer has an Agreement under this Act, submit to the |
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| 1 | | Department an annual report detailing the diversity of the | 2 | | taxpayer's own workforce, including full-time and part-time | 3 | | employees, contractors, and board of directors' membership. | 4 | | Any taxpayer seeking to claim a credit under this Act that | 5 | | fails to timely submit the required report shall not receive a | 6 | | credit for that taxable year unless and until such report is | 7 | | finalized and submitted to the Department. The report should | 8 | | also address the Taxpayer's best efforts to meet or exceed the | 9 | | recruitment and hiring plan outlined in the application | 10 | | referenced in Section 20. Those reports shall be submitted in | 11 | | the form and manner required by the Department. | 12 | | (b) Vendor diversity and annual report. If the taxpayer | 13 | | tracks the diversity of the vendors that it utilizes, the | 14 | | Taxpayer shall report, no later than April 15 of each taxable | 15 | | year for which the taxpayer claims a credit under this Act, the | 16 | | following information to the Department: | 17 | | (1) a point of contact for potential vendors to | 18 | | register with the taxpayer's REV Illinois Project; | 19 | | (2) certifications that the taxpayer accepts or | 20 | | recognizes for minority and women-owned businesses as | 21 | | entities; | 22 | | (3) the taxpayers goals to contract with diverse | 23 | | vendors, if any, for the next fiscal year for the entire | 24 | | budget of the Taxpayer's REV Illinois Project; | 25 | | (4) for the last fiscal year, the actual contractual | 26 | | spending for the entire budget of the REV Illinois Project |
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| 1 | | and the actual spending for minority-owned businesses and | 2 | | women-owned businesses, expressed as a percentage of the | 3 | | total budget for actual spending for the REV Illinois | 4 | | project; | 5 | | (5) A narrative explaining the results of the report | 6 | | and the taxpayer's plan to address the voluntary goals for | 7 | | the next fiscal year; and | 8 | | (6) A copy of the taxpayer's submission of vendor | 9 | | diversity information to the federal government, including | 10 | | but not limited to vendor diversity goals and actual | 11 | | contractual spending for minority-and women-owned | 12 | | businesses, if the Taxpayer is a federal contractor and is | 13 | | required by the federal government to submit such | 14 | | information. | 15 | | Section 55. Sexual harassment policy report. Each taxpayer | 16 | | claiming a credit under this Act shall, prior to April 15 of | 17 | | each taxable year for which the taxpayer claims a credit under | 18 | | this Act, submit to the Department a report detailing that | 19 | | taxpayer's sexual harassment policy, which contains, at a | 20 | | minimum, the following information: (i) the illegality of | 21 | | sexual harassment; (ii) the definition of sexual harassment | 22 | | under State law; (iii) a description of sexual harassment, | 23 | | utilizing examples; (iv) the vendor's internal complaint | 24 | | process, including penalties; (v) the legal recourse and | 25 | | investigative and complaint processes available through the |
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| 1 | | Department; (vi) directions on how to contact the Department; | 2 | | and (vii) protection against retaliation as provided by | 3 | | Section 6-101 of the Illinois Human Rights Act. A copy of the | 4 | | policy shall be provided to the Department upon request. The | 5 | | reports required under this Section shall be submitted in a | 6 | | form and manner determined by the Department. | 7 | | Section 60. Certificate of verification; submission to the | 8 | | Department of Revenue. | 9 | | (a) A taxpayer claiming a credit under this Act shall | 10 | | submit to the Department of Revenue a copy of the Director's | 11 | | certificate of verification under this Act for the taxable | 12 | | year. However, failure to submit a copy of the certificate | 13 | | with the taxpayer's tax return shall not invalidate a claim | 14 | | for a credit. | 15 | | (b) For a taxpayer to be eligible for a certificate of | 16 | | verification, the taxpayer shall provide proof as required by | 17 | | the Department, prior to the end of each calendar year, | 18 | | including, but not limited to, attestation by the taxpayer | 19 | | that: | 20 | | (1) The project has achieved the level of new employee | 21 | | jobs specified in the agreement. | 22 | | (2) The project has achieved the level of annual | 23 | | payroll in Illinois specified in its agreement. | 24 | | (3) The project has achieved the level of capital | 25 | | improvements in Illinois specified in its agreement. |
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| 1 | | (4) The project has achieved and maintained carbon | 2 | | neutrality or one of the certifications specified in this | 3 | | Act. | 4 | | Section 65. Certified payroll. | 5 | | (a) Each contractor and subcontractor that is engaged in | 6 | | construction work on project facilities for a taxpayer who | 7 | | seeks to apply for a REV Construction Jobs credit shall: | 8 | | (1) make and keep, for a period of 5 years from the | 9 | | date of the last payment made on a contract or subcontract | 10 | | for construction of facilities for a REV Illinois Project | 11 | | pursuant to an agreement, records of all laborers and | 12 | | other workers employed by the contractor or subcontractor | 13 | | on the project; the records shall include: | 14 | | (A) the worker's name; | 15 | | (B) the worker's address; | 16 | | (C) the worker's telephone number, if available; | 17 | | (D) the worker's social security number; | 18 | | (E) the worker's classification or | 19 | | classifications; | 20 | | (F) the worker's gross and net wages paid in each | 21 | | pay period; | 22 | | (G) the worker's number of hours worked in each | 23 | | day; | 24 | | (H) the worker's starting and ending times of work | 25 | | each day; |
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| 1 | | (I) the worker's hourly wage rate; and | 2 | | (J) the worker's hourly overtime wage rate; and | 3 | | (2) no later than the 15th day of each calendar month, | 4 | | provide a certified payroll for the immediately preceding | 5 | | month to the taxpayer in charge of the project; within 5 | 6 | | business days after receiving the certified payroll, the | 7 | | Taxpayer shall file the certified payroll with the | 8 | | Department of Labor and the Department; a certified | 9 | | payroll must be filed for only those calendar months | 10 | | during which construction on the REV Illinois Project | 11 | | facilities has occurred; the certified payroll shall | 12 | | consist of a complete copy of the records identified in | 13 | | paragraph (1), but may exclude the starting and ending | 14 | | times of work each day; the certified payroll shall be | 15 | | accompanied by a statement signed by the contractor or | 16 | | subcontractor or an officer, employee, or agent of the | 17 | | contractor or subcontractor which avers that: | 18 | | (A) he or she has examined the certified payroll | 19 | | records required to be submitted by the Act and such | 20 | | records are true and accurate; and | 21 | | (B) the contractor or subcontractor is aware that | 22 | | filing a certified payroll that he or she knows to be | 23 | | false is a Class A misdemeanor. | 24 | | A general contractor is not prohibited from relying on a | 25 | | certified payroll of a lower-tier subcontractor, provided the | 26 | | general contractor does not knowingly rely upon a |
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| 1 | | subcontractor's false certification. | 2 | | (b) Any contractor or subcontractor subject to this | 3 | | Section, and any officer, employee, or agent of such | 4 | | contractor or subcontractor whose duty as an officer, | 5 | | employee, or agent it is to file a certified payroll under this | 6 | | Section, who willfully fails to file such a certified payroll, | 7 | | on or before the date such certified payroll is required to be | 8 | | filed and any person who willfully files a false certified | 9 | | payroll as to any material fact is in violation of this Act and | 10 | | guilty of a Class A misdemeanor. | 11 | | (c) The taxpayer in charge of the project shall keep the | 12 | | records submitted in accordance with this Section for a period | 13 | | of 5 years from the date of the last payment for work on a | 14 | | contract or subcontract for the project. | 15 | | (d) The records submitted in accordance with this Section | 16 | | shall be considered public records, except an employee's | 17 | | address, telephone number, and social security number, which | 18 | | shall be redacted. The records shall be made publicly | 19 | | available in accordance with the Freedom of Information Act. | 20 | | The Department of Labor shall accept any reasonable | 21 | | submissions by the contractor or subcontractor that meet the | 22 | | requirements of this subsection and shall share the | 23 | | information with the Department to comply with the awarding of | 24 | | the REV Construction Jobs Credit. A contractor, subcontractor, | 25 | | or public body may retain records required under this Section | 26 | | in paper or electronic format. |
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| 1 | | (e) Upon 7 business days' notice, the contractor and each | 2 | | subcontractor shall make available for inspection and copying | 3 | | at a location within this State during reasonable hours, the | 4 | | records identified in paragraph (1) of this subsection to the | 5 | | Taxpayer in charge of the Project, its officers and agents, | 6 | | the Director of the Department of Labor and his/her deputies | 7 | | and agents, and to federal, State, or local law enforcement | 8 | | agencies and prosecutors. | 9 | | Section 70. Noncompliance; notice; assessment. If the | 10 | | Director determines that a taxpayer who has received a credit | 11 | | under this Act is not complying with the requirements of the | 12 | | agreement or all of the provisions of this Act, the Director | 13 | | shall provide notice to the taxpayer of the alleged | 14 | | noncompliance and allow the taxpayer a hearing under the | 15 | | provisions of the Illinois Administrative Procedure Act. If, | 16 | | after such notice and any hearing, the Director determines | 17 | | that a noncompliance exists, the Director shall issue to the | 18 | | Department of Revenue notice to that effect, stating the | 19 | | noncompliance date. If, during the term of an agreement, the | 20 | | taxpayer ceases operations at a project location that is the | 21 | | subject of that agreement with the intent to terminate | 22 | | operations in the State, the Department and the Department of | 23 | | Revenue shall recapture from the taxpayer the entire credit | 24 | | amount awarded under that agreement prior to the date the | 25 | | taxpayer ceases operations. The Department shall, subject to |
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| 1 | | appropriation, reallocate the recaptured amounts within 6 | 2 | | months to the local workforce investment area in which the | 3 | | project was located for purposes of workforce development, | 4 | | expanded opportunities for unemployed persons, and expanded | 5 | | opportunities for women and minority persons in the workforce. | 6 | | The taxpayer will be ineligible for future funding under other | 7 | | State tax credit or exemption programs for a 36-month period. | 8 | | Noncompliance of the agreement with result in a default of | 9 | | other agreements for State tax credits and exemption programs | 10 | | for the project. | 11 | | Section 75. Annual report. | 12 | | (a) On or before July 1 each year, the Department shall | 13 | | submit a report on the tax credit program under this Act to the | 14 | | Governor and the General Assembly. The report shall include | 15 | | information on the number of agreements that were entered into | 16 | | under this Act during the preceding calendar year, a | 17 | | description of the project that is the subject of each | 18 | | agreement, an update on the status of projects under | 19 | | agreements entered into before the preceding calendar year, | 20 | | and the sum of the credits awarded under this Act. A copy of | 21 | | the report shall be delivered to the Governor and to each | 22 | | member of the General Assembly. | 23 | | (b) The report must include, for each agreement: | 24 | | (1) the original estimates of the value of the credit | 25 | | and the number of new employee jobs to be created and, if |
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| 1 | | applicable, the number of retained employee jobs; | 2 | | (2) any relevant modifications to existing agreements; | 3 | | (3) a statement of the progress made by each taxpayer | 4 | | in meeting the terms of the original agreement; | 5 | | (4) a statement of wages paid to new employees and, if | 6 | | applicable, retained employees in the State; and | 7 | | (5) a copy of the original agreement or link to the | 8 | | agreement on the Department's website. | 9 | | Section 80. Evaluation of tax credit program. The | 10 | | Department shall evaluate the tax credit program every three | 11 | | years and issue a report. The evaluation shall include an | 12 | | assessment of the effectiveness of the program in creating new | 13 | | jobs in Illinois and of the revenue impact of the program and | 14 | | may include a review of the practices and experiences of other | 15 | | states with similar programs. The Director shall submit a | 16 | | report on the evaluation to the Governor and the General | 17 | | Assembly three years after the Effective Date of the Act and | 18 | | every three years thereafter. | 19 | | Section 85. Sunset of new agreements. The Department shall | 20 | | not enter into any new Agreements under the provisions of this | 21 | | Act after December 31, 2027. | 22 | | Section 90. Prioritization of project review with the | 23 | | Department of Transportation. A project that would directly |
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| 1 | | assist in the feasibility of locating an electric vehicle | 2 | | manufacturing facility, component parts manufacturing | 3 | | facility, or electric vehicle power supply manufacturing | 4 | | facility may be prioritized by the Secretary of Transportation | 5 | | if: (i) such project is included in the Highway Improvement | 6 | | Program; and (ii) the company will operate the facility that | 7 | | was approved to receive a REV Construction Jobs credit or a REV | 8 | | Illinois credit. Under no circumstances should a project be | 9 | | prioritized if it would compromise the delivery of a project | 10 | | to remediate an immediate threat to safety. | 11 | | Section 95. Utility tax exemptions for REV Illinois | 12 | | Project sites. The Department may certify a taxpayer with a | 13 | | REV Illinois credit for a Project that meets the | 14 | | qualifications under Section paragraphs (1), (2), and (4) of | 15 | | subsection (c) of Section 20, subject to an agreement under | 16 | | this Act for an exemption from the tax imposed at the project | 17 | | site by Section 2-4 of the Electricity Excise Tax Law. To | 18 | | receive such certification, the taxpayer must be registered to | 19 | | self-assess that tax. The taxpayer is also exempt from any | 20 | | additional charges added to the taxpayer's utility bills at | 21 | | the project site as a pass-on of State utility taxes under | 22 | | Section 9-222 of the Public Utilities Act. The taxpayer must | 23 | | meet any other the criteria for certification set by the | 24 | | Department. | 25 | | The Department shall determine the period during which the |
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| 1 | | exemption from the Electricity Excise Tax Law and the charges | 2 | | imposed under Section 9-222 of the Public Utilities Act are in | 3 | | effect, which shall not exceed 10 years from the date of the | 4 | | taxpayer's initial receipt of certification from the | 5 | | Department under this Section. | 6 | | The Department is authorized to adopt rules to carry out | 7 | | the provisions of this Section, including procedures to apply | 8 | | for the exemptions; to define the amounts and types of | 9 | | eligible investments that an applicant must make in order to | 10 | | receive electricity excise tax exemptions or exemptions from | 11 | | the additional charges imposed under Section 9-222 and the | 12 | | Public Utilities Act; to approve such electricity excise tax | 13 | | exemptions for applicants whose investments are not yet placed | 14 | | in service; and to require that an applicant granted an | 15 | | electricity excise tax exemption or an exemption from | 16 | | additional charges under Section 9-222 of the Public Utilities | 17 | | Act repay the exempted amount if the Applicant fails to comply | 18 | | with the terms and conditions of the agreement. | 19 | | Upon certification by the Department under this Section, | 20 | | the Department shall notify the Department of Revenue of the | 21 | | certification. The Department of Revenue shall notify the | 22 | | public utilities of the exempt status of any taxpayer | 23 | | certified for exemption under this Act from the electricity | 24 | | excise tax or pass-on charges. The exemption status shall take | 25 | | effect within 3 months after certification of the taxpayer and | 26 | | notice to the Department of Revenue by the Department. |
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| 1 | | Section 100. Investment tax credits for REV Illinois | 2 | | Projects. Subject to the conditions set forth in this Act, a | 3 | | Taxpayer is entitled to an investment tax credit toward taxes | 4 | | imposed pursuant to subsections (a) and (b) of Section 201 of | 5 | | the Illinois Income Tax Act for a taxable year in which the | 6 | | Taxpayer, in accordance with an Agreement under this Act for | 7 | | that taxable year, invests in qualified property which is | 8 | | placed in service at the site of a REV Illinois Project. The | 9 | | Department has authority to certify the amount of such | 10 | | investment tax credits to the Department of Revenue. The | 11 | | credit shall be 0.5% of the basis for such property and shall | 12 | | be determined in accordance with Section 237 of the Illinois | 13 | | Income Tax Act. The credit shall be available only in the | 14 | | taxable year in which the property is placed in service and | 15 | | shall not be allowed to the extent that it would reduce a | 16 | | taxpayer's liability for the tax imposed by subsections (a) | 17 | | and (b) of Section 201 of the Illinois Income Tax Act to below | 18 | | zero. Unused credit may be carried forward in accordance with | 19 | | Section 237 of the Illinois Income Tax Act for use in future | 20 | | taxable years. Any taxpayer qualifying for the REV Illinois | 21 | | Investment Tax Credit shall not be eligible for either the | 22 | | investment tax credits in Section 201(e), (f), or (h) of this | 23 | | Act. | 24 | | Section 105. Building materials exemptions for REV |
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| 1 | | Illinois Project sites. | 2 | | (a) The Department may certify a Taxpayer with a REV | 3 | | Illinois Project that meets the qualifications under | 4 | | paragraphs (1), (2), or (4) of subsection (c) of Section 20, | 5 | | subject to an agreement under this Act, for an exemption from | 6 | | any State or local use tax or retailers' occupation tax on | 7 | | building materials for the construction of its project | 8 | | facilities. The taxpayer must meet any criteria for | 9 | | certification set by the Department under this Act. | 10 | | The Department shall determine the period during which the | 11 | | exemption from State and local use tax and retailers' | 12 | | occupation tax are in effect, but in no event shall exceed 5 | 13 | | years in accordance with Section 5m of the Retailers' | 14 | | Occupation Tax Act. | 15 | | The Department is authorized to promulgate rules and | 16 | | regulations to carry out the provisions of this Section, | 17 | | including procedures to apply for the exemption; to define the | 18 | | amounts and types of eligible investments that an applicant | 19 | | must make in order to receive tax exemption; to approve such | 20 | | tax exemption for an applicant whose investments are not yet | 21 | | placed in service; and to require that an applicant granted | 22 | | exemption repay the exempted amount if the applicant fails to | 23 | | comply with the terms and conditions of the agreement with the | 24 | | Department. | 25 | | Upon certification by the Department under this Section, | 26 | | the Department shall notify the Department of Revenue of the |
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| 1 | | certification. The exemption status shall take effect within 3 | 2 | | months after certification of the taxpayer and notice to the | 3 | | Department of Revenue by the Department. | 4 | | Section 900. The Illinois Procurement Code is amended by | 5 | | adding Section 45-100 as follows: | 6 | | (30 ILCS 500/45-100 new) | 7 | | Sec. 45-100. Electric vehicles. For purposes of this | 8 | | Section, "electric vehicle" means a vehicle that is | 9 | | exclusively powered by and refueled by electricity, must be | 10 | | plugged in to charge or utilize a pre-charged battery, and is | 11 | | permitted to operate on public roadways. "Electric vehicle" | 12 | | does not include electric motorcycles or hybrid electric | 13 | | vehicles and extended-range electric vehicles that are also | 14 | | equipped with conventional fueled propulsion or auxiliary | 15 | | engines. For purposes of this section, "Manufactured in | 16 | | Illinois" means, in the case of electric vehicles, that | 17 | | design, final assembly, processing, packaging, testing, or | 18 | | other process that adds value, quality, or reliability occurs | 19 | | in Illinois. | 20 | | In awarding contracts requiring the procurement of | 21 | | electric vehicles, preference shall be given to an otherwise | 22 | | qualified bidder or offeror who will fulfill the contract | 23 | | through the use of electric vehicles manufactured in Illinois. | 24 | | Specifications for contracts for electric vehicles shall |
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| 1 | | include a price preference of at least 20% for electric | 2 | | vehicles manufactured in Illinois. | 3 | | Section 905. The Illinois Income Tax Act is amended by | 4 | | changing Section 704A and by adding Sections 236 and 237 as | 5 | | follows: | 6 | | (35 ILCS 5/236 new) | 7 | | Sec. 236. Reimagining Electric Vehicles in Illinois Tax | 8 | | credits. | 9 | | (a) For tax years beginning on or after January 1, 2025, a | 10 | | taxpayer who has entered into an agreement under the | 11 | | Reimagining Electric Vehicles in Illinois Act is entitled to a | 12 | | credit against the taxes imposed under subsections (a) and (b) | 13 | | of Section 201 of this Act in an amount to be determined in the | 14 | | Agreement. The taxpayer may elect to claim the credit, on or | 15 | | after January 1, 2025, against its obligation to pay over | 16 | | withholding under Section 704A of this Act as provided in | 17 | | paragraph (6) of subsection (b). If the taxpayer is a | 18 | | partnership or Subchapter S corporation, the credit shall be | 19 | | allowed to the partners or shareholders in accordance with the | 20 | | determination of income and distributive share of income under | 21 | | Sections 702 and 704 of this Act and subchapter S of the | 22 | | Internal Revenue Code. The Department, in cooperation with the | 23 | | Department of Commerce and Economic Opportunity, shall adopt | 24 | | rules to enforce and administer the provisions of this |
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| 1 | | Section. This Section is exempt from the provisions of Section | 2 | | 250 of this Act. | 3 | | (b) The credit is subject to the conditions set forth in | 4 | | the agreement and the following limitations: | 5 | | (1) The tax credit may be in the form of either or both | 6 | | the REV Illinois Credit or the REV Construction Jobs | 7 | | Credit (as defined in the Reimagining Electric Vehicles in | 8 | | Illinois Act) and shall not exceed the percentage of | 9 | | incremental income tax and percentage of training costs | 10 | | permitted in that Act and in the agreement with respect to | 11 | | the project. | 12 | | (2) The amount of the credit allowed during a tax year | 13 | | plus the sum of all amounts allowed in prior tax years | 14 | | shall not exceed the maximum amount of credit established | 15 | | in the agreement. | 16 | | (3) The amount of the credit shall be determined on an | 17 | | annual basis. Except as applied in a carryover year | 18 | | pursuant to paragraph (4), the credit may not be applied | 19 | | against any State income tax liability in more than 15 | 20 | | taxable years. | 21 | | (4) The credit may not exceed the amount of taxes | 22 | | imposed pursuant to subsections (a) and (b) of Section 201 | 23 | | of this Act. Any credit that is unused in the year the | 24 | | credit is computed may be carried forward and applied to | 25 | | the tax liability of the 5 taxable years following the | 26 | | excess credit year. The credit shall be applied to the |
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| 1 | | earliest year for which there is a tax liability. If there | 2 | | are credits from more than one tax year that are available | 3 | | to offset a liability, the earlier credit shall be applied | 4 | | first. | 5 | | (5) No credit shall be allowed with respect to any | 6 | | agreement for any taxable year ending after the | 7 | | noncompliance date. Upon receiving notification by the | 8 | | Department of Commerce and Economic Opportunity of the | 9 | | noncompliance of a taxpayer with an agreement, the | 10 | | Department shall notify the taxpayer that no credit is | 11 | | allowed with respect to that agreement for any taxable | 12 | | year ending after the noncompliance date, as stated in | 13 | | such notification. If any credit has been allowed with | 14 | | respect to an agreement for a taxable year ending after | 15 | | the noncompliance date for that agreement, any refund paid | 16 | | to the taxpayer for that taxable year shall, to the extent | 17 | | of that credit allowed, be an erroneous refund within the | 18 | | meaning of Section 912 of this Act. | 19 | | If, during any taxable year, a taxpayer ceases | 20 | | operations at a project location that is the subject of | 21 | | that agreement with the intent to terminate operations in | 22 | | the State, the tax imposed under subsections (a) and (b) | 23 | | of Section 201 of this Act for such taxable year shall be | 24 | | increased by the amount of any credit allowed under the | 25 | | Agreement for that Project location prior to the date the | 26 | | Taxpayer ceases operations. |
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| 1 | | (6) Instead of claiming the credit against the taxes | 2 | | imposed under subsections (a) and (b) of Section 201 of | 3 | | this Act, with respect to the portion of a REV Illinois | 4 | | Credit that is calculated based on the Incremental Income | 5 | | Tax attributable to new employees and retained employees, | 6 | | the taxpayer may elect, in accordance with the Reimagining | 7 | | Electric Vehicles in Illinois Act, to claim the credit, on | 8 | | or after January 1, 2025, against its obligation to pay | 9 | | over withholding under Section 704A of the Illinois Income | 10 | | Tax Act. Any credit for which a Taxpayer makes such an | 11 | | election shall not be claimed against the taxes imposed | 12 | | under subsections (a) and (b) of Section 201 of this Act. | 13 | | (35 ILCS 5/237 new) | 14 | | Sec. 237. REV Illinois Investment Tax credits. | 15 | | (a) For tax years beginning on or after the effective date | 16 | | of this amendatory Act of the 102nd General Assembly, a | 17 | | taxpayer shall be allowed a credit against the tax imposed by | 18 | | subsections (a) and (b) of Section 201 for investment in | 19 | | qualified property which is placed in service at the site of a | 20 | | REV Illinois Project subject to an agreement between the | 21 | | taxpayer and the Department of Commerce and Economic | 22 | | Opportunity pursuant to the Reimagining Electric Vehicles in | 23 | | Illinois Act. For partners, shareholders of Subchapter S | 24 | | corporations, and owners of limited liability companies, if | 25 | | the liability company is treated as a partnership for purposes |
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| 1 | | of federal and State income taxation, there shall be allowed a | 2 | | credit under this Section to be determined in accordance with | 3 | | the determination of income and distributive share of income | 4 | | under Sections 702 and 704 and Subchapter S of the Internal | 5 | | Revenue Code. The credit shall be 0.5% of the basis for such | 6 | | property. The credit shall be available only in the taxable | 7 | | year in which the property is placed in service and shall not | 8 | | be allowed to the extent that it would reduce a taxpayer's | 9 | | liability for the tax imposed by subsections (a) and (b) of | 10 | | Section 201 to below zero. The credit shall be allowed for the | 11 | | tax year in which the property is placed in service, or, if the | 12 | | amount of the credit exceeds the tax liability for that year, | 13 | | whether it exceeds the original liability or the liability as | 14 | | later amended, such excess may be carried forward and applied | 15 | | to the tax liability of the 5 taxable years following the | 16 | | excess credit year. The credit shall be applied to the | 17 | | earliest year for which there is a liability. If there is | 18 | | credit from more than one tax year that is available to offset | 19 | | a liability, the credit accruing first in time shall be | 20 | | applied first. | 21 | | (b) The term qualified property means property which: | 22 | | (1) is tangible, whether new or used, including | 23 | | buildings and structural components of buildings; | 24 | | (2) is depreciable pursuant to Section 167 of the | 25 | | Internal Revenue Code, except that "3-year property" as | 26 | | defined in Section 168(c)(2)(A) of that Code is not |
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| 1 | | eligible for the credit provided by this Section; | 2 | | (3) is acquired by purchase as defined in Section | 3 | | 179(d) of the Internal Revenue Code; | 4 | | (4) is used at the site of the REV Illinois Project by | 5 | | the taxpayer; and | 6 | | (5) has not been previously used in Illinois in such a | 7 | | manner and by such a person as would qualify for the credit | 8 | | provided by this Section. | 9 | | (c) The basis of qualified property shall be the basis | 10 | | used to compute the depreciation deduction for federal income | 11 | | tax purposes. | 12 | | (d) If the basis of the property for federal income tax | 13 | | depreciation purposes is increased after it has been placed in | 14 | | service at the site of the REV Illinois Project by the | 15 | | taxpayer, the amount of such increase shall be deemed property | 16 | | placed in service on the date of such increase in basis. | 17 | | (e) The term "placed in service" shall have the same | 18 | | meaning as under Section 46 of the Internal Revenue Code. | 19 | | (f) If during any taxable year, any property ceases to be | 20 | | qualified property in the hands of the taxpayer within 48 | 21 | | months after being placed in service, or the situs of any | 22 | | qualified property is moved from the REV Illinois Project site | 23 | | within 48 months after being placed in service, the tax | 24 | | imposed under subsections (a) and (b) of Section 201 for such | 25 | | taxable year shall be increased. Such increase shall be | 26 | | determined by (i) recomputing the investment credit which |
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| 1 | | would have been allowed for the year in which credit for such | 2 | | property was originally allowed by eliminating such property | 3 | | from such computation, and (ii) subtracting such recomputed | 4 | | credit from the amount of credit previously allowed. For the | 5 | | purposes of this subsection (f), a reduction of the basis of | 6 | | qualified property resulting from a redetermination of the | 7 | | purchase price shall be deemed a disposition of qualified | 8 | | property to the extent of such reduction. | 9 | | (35 ILCS 5/704A) | 10 | | Sec. 704A. Employer's return and payment of tax withheld. | 11 | | (a) In general, every employer who deducts and withholds | 12 | | or is required to deduct and withhold tax under this Act on or | 13 | | after January 1, 2008 shall make those payments and returns as | 14 | | provided in this Section. | 15 | | (b) Returns. Every employer shall, in the form and manner | 16 | | required by the Department, make returns with respect to taxes | 17 | | withheld or required to be withheld under this Article 7 for | 18 | | each quarter beginning on or after January 1, 2008, on or | 19 | | before the last day of the first month following the close of | 20 | | that quarter. | 21 | | (c) Payments. With respect to amounts withheld or required | 22 | | to be withheld on or after January 1, 2008: | 23 | | (1) Semi-weekly payments. For each calendar year, each | 24 | | employer who withheld or was required to withhold more | 25 | | than $12,000 during the one-year period ending on June 30 |
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| 1 | | of the immediately preceding calendar year, payment must | 2 | | be made: | 3 | | (A) on or before each Friday of the calendar year, | 4 | | for taxes withheld or required to be withheld on the | 5 | | immediately preceding Saturday, Sunday, Monday, or | 6 | | Tuesday; | 7 | | (B) on or before each Wednesday of the calendar | 8 | | year, for taxes withheld or required to be withheld on | 9 | | the immediately preceding Wednesday, Thursday, or | 10 | | Friday. | 11 | | Beginning with calendar year 2011, payments made under | 12 | | this paragraph (1) of subsection (c) must be made by | 13 | | electronic funds transfer. | 14 | | (2) Semi-weekly payments. Any employer who withholds | 15 | | or is required to withhold more than $12,000 in any | 16 | | quarter of a calendar year is required to make payments on | 17 | | the dates set forth under item (1) of this subsection (c) | 18 | | for each remaining quarter of that calendar year and for | 19 | | the subsequent calendar year.
| 20 | | (3) Monthly payments. Each employer, other than an | 21 | | employer described in items (1) or (2) of this subsection, | 22 | | shall pay to the Department, on or before the 15th day of | 23 | | each month the taxes withheld or required to be withheld | 24 | | during the immediately preceding month. | 25 | | (4) Payments with returns. Each employer shall pay to | 26 | | the Department, on or before the due date for each return |
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| 1 | | required to be filed under this Section, any tax withheld | 2 | | or required to be withheld during the period for which the | 3 | | return is due and not previously paid to the Department. | 4 | | (d) Regulatory authority. The Department may, by rule: | 5 | | (1) Permit employers, in lieu of the requirements of | 6 | | subsections (b) and (c), to file annual returns due on or | 7 | | before January 31 of the year for taxes withheld or | 8 | | required to be withheld during the previous calendar year | 9 | | and, if the aggregate amounts required to be withheld by | 10 | | the employer under this Article 7 (other than amounts | 11 | | required to be withheld under Section 709.5) do not exceed | 12 | | $1,000 for the previous calendar year, to pay the taxes | 13 | | required to be shown on each such return no later than the | 14 | | due date for such return. | 15 | | (2) Provide that any payment required to be made under | 16 | | subsection (c)(1) or (c)(2) is deemed to be timely to the | 17 | | extent paid by electronic funds transfer on or before the | 18 | | due date for deposit of federal income taxes withheld | 19 | | from, or federal employment taxes due with respect to, the | 20 | | wages from which the Illinois taxes were withheld. | 21 | | (3) Designate one or more depositories to which | 22 | | payment of taxes required to be withheld under this | 23 | | Article 7 must be paid by some or all employers. | 24 | | (4) Increase the threshold dollar amounts at which | 25 | | employers are required to make semi-weekly payments under | 26 | | subsection (c)(1) or (c)(2). |
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| 1 | | (e) Annual return and payment. Every employer who deducts | 2 | | and withholds or is required to deduct and withhold tax from a | 3 | | person engaged in domestic service employment, as that term is | 4 | | defined in Section 3510 of the Internal Revenue Code, may | 5 | | comply with the requirements of this Section with respect to | 6 | | such employees by filing an annual return and paying the taxes | 7 | | required to be deducted and withheld on or before the 15th day | 8 | | of the fourth month following the close of the employer's | 9 | | taxable year. The Department may allow the employer's return | 10 | | to be submitted with the employer's individual income tax | 11 | | return or to be submitted with a return due from the employer | 12 | | under Section 1400.2 of the Unemployment Insurance Act. | 13 | | (f) Magnetic media and electronic filing. With respect to | 14 | | taxes withheld in calendar years prior to 2017, any W-2 Form | 15 | | that, under the Internal Revenue Code and regulations | 16 | | promulgated thereunder, is required to be submitted to the | 17 | | Internal Revenue Service on magnetic media or electronically | 18 | | must also be submitted to the Department on magnetic media or | 19 | | electronically for Illinois purposes, if required by the | 20 | | Department. | 21 | | With respect to taxes withheld in 2017 and subsequent | 22 | | calendar years, the Department may, by rule, require that any | 23 | | return (including any amended return) under this Section and | 24 | | any W-2 Form that is required to be submitted to the Department | 25 | | must be submitted on magnetic media or electronically. | 26 | | The due date for submitting W-2 Forms shall be as |
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| 1 | | prescribed by the Department by rule. | 2 | | (g) For amounts deducted or withheld after December 31, | 3 | | 2009, a taxpayer who makes an election under subsection (f) of | 4 | | Section 5-15 of the Economic Development for a Growing Economy | 5 | | Tax Credit Act for a taxable year shall be allowed a credit | 6 | | against payments due under this Section for amounts withheld | 7 | | during the first calendar year beginning after the end of that | 8 | | taxable year equal to the amount of the credit for the | 9 | | incremental income tax attributable to full-time employees of | 10 | | the taxpayer awarded to the taxpayer by the Department of | 11 | | Commerce and Economic Opportunity under the Economic | 12 | | Development for a Growing Economy Tax Credit Act for the | 13 | | taxable year and credits not previously claimed and allowed to | 14 | | be carried forward under Section 211(4) of this Act as | 15 | | provided in subsection (f) of Section 5-15 of the Economic | 16 | | Development for a Growing Economy Tax Credit Act. The credit | 17 | | or credits may not reduce the taxpayer's obligation for any | 18 | | payment due under this Section to less than zero. If the amount | 19 | | of the credit or credits exceeds the total payments due under | 20 | | this Section with respect to amounts withheld during the | 21 | | calendar year, the excess may be carried forward and applied | 22 | | against the taxpayer's liability under this Section in the | 23 | | succeeding calendar years as allowed to be carried forward | 24 | | under paragraph (4) of Section 211 of this Act. The credit or | 25 | | credits shall be applied to the earliest year for which there | 26 | | is a tax liability. If there are credits from more than one |
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| 1 | | taxable year that are available to offset a liability, the | 2 | | earlier credit shall be applied first. Each employer who | 3 | | deducts and withholds or is required to deduct and withhold | 4 | | tax under this Act and who retains income tax withholdings | 5 | | under subsection (f) of Section 5-15 of the Economic | 6 | | Development for a Growing Economy Tax Credit Act must make a | 7 | | return with respect to such taxes and retained amounts in the | 8 | | form and manner that the Department, by rule, requires and pay | 9 | | to the Department or to a depositary designated by the | 10 | | Department those withheld taxes not retained by the taxpayer. | 11 | | For purposes of this subsection (g), the term taxpayer shall | 12 | | include taxpayer and members of the taxpayer's unitary | 13 | | business group as defined under paragraph (27) of subsection | 14 | | (a) of Section 1501 of this Act. This Section is exempt from | 15 | | the provisions of Section 250 of this Act. No credit awarded | 16 | | under the Economic Development for a Growing Economy Tax | 17 | | Credit Act for agreements entered into on or after January 1, | 18 | | 2015 may be credited against payments due under this Section. | 19 | | (g-1) For amounts deducted or withheld after December 31, | 20 | | 2024, a taxpayer who makes an election under the Reimagining | 21 | | Electric Vehicles in Illinois Act shall be allowed a credit | 22 | | against payments due under this Section for amounts withheld | 23 | | during the first quarterly reporting period beginning after | 24 | | the certificate is issued equal to the portion of the REV | 25 | | Illinois Credit attributable to the incremental income tax | 26 | | attributable to new employees and retained employees as |
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| 1 | | certified by the Department of Commerce and Economic | 2 | | Opportunity pursuant to an agreement with the taxpayer under | 3 | | the Reimagining Electric Vehicles in Illinois Act for the | 4 | | taxable year. The credit or credits may not reduce the | 5 | | taxpayer's obligation for any payment due under this Section | 6 | | to less than zero. If the amount of the credit or credits | 7 | | exceeds the total payments due under this Section with respect | 8 | | to amounts withheld during the quarterly reporting period, the | 9 | | excess may be carried forward and applied against the | 10 | | taxpayer's liability under this Section in the succeeding | 11 | | quarterly reporting period as allowed to be carried forward | 12 | | under paragraph (4) of Section 211 of this Act. The credit or | 13 | | credits shall be applied to the earliest quarterly reporting | 14 | | period for which there is a tax liability. If there are credits | 15 | | from more than one quarterly reporting period that are | 16 | | available to offset a liability, the earlier credit shall be | 17 | | applied first. Each employer who deducts and withholds or is | 18 | | required to deduct and withhold tax under this Act and who | 19 | | retains income tax withholdings this subsection must make a | 20 | | return with respect to such taxes and retained amounts in the | 21 | | form and manner that the Department, by rule, requires and pay | 22 | | to the Department or to a depositary designated by the | 23 | | Department those withheld taxes not retained by the taxpayer. | 24 | | For purposes of this subsection (g-1), the term taxpayer shall | 25 | | include taxpayer and members of the taxpayer's unitary | 26 | | business group as defined under paragraph (27) of subsection |
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| 1 | | (a) of Section 1501 of this Act. This Section is exempt from | 2 | | the provisions of Section 250 of this Act. | 3 | | (h) An employer may claim a credit against payments due | 4 | | under this Section for amounts withheld during the first | 5 | | calendar year ending after the date on which a tax credit | 6 | | certificate was issued under Section 35 of the Small Business | 7 | | Job Creation Tax Credit Act. The credit shall be equal to the | 8 | | amount shown on the certificate, but may not reduce the | 9 | | taxpayer's obligation for any payment due under this Section | 10 | | to less than zero. If the amount of the credit exceeds the | 11 | | total payments due under this Section with respect to amounts | 12 | | withheld during the calendar year, the excess may be carried | 13 | | forward and applied against the taxpayer's liability under | 14 | | this Section in the 5 succeeding calendar years. The credit | 15 | | shall be applied to the earliest year for which there is a tax | 16 | | liability. If there are credits from more than one calendar | 17 | | year that are available to offset a liability, the earlier | 18 | | credit shall be applied first. This Section is exempt from the | 19 | | provisions of Section 250 of this Act. | 20 | | (i) Each employer with 50 or fewer full-time equivalent | 21 | | employees during the reporting period may claim a credit | 22 | | against the payments due under this Section for each qualified | 23 | | employee in an amount equal to the maximum credit allowable. | 24 | | The credit may be taken against payments due for reporting | 25 | | periods that begin on or after January 1, 2020, and end on or | 26 | | before December 31, 2027. An employer may not claim a credit |
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| 1 | | for an employee who has worked fewer than 90 consecutive days | 2 | | immediately preceding the reporting period; however, such | 3 | | credits may accrue during that 90-day period and be claimed | 4 | | against payments under this Section for future reporting | 5 | | periods after the employee has worked for the employer at | 6 | | least 90 consecutive days. In no event may the credit exceed | 7 | | the employer's liability for the reporting period. Each | 8 | | employer who deducts and withholds or is required to deduct | 9 | | and withhold tax under this Act and who retains income tax | 10 | | withholdings under this subsection must make a return with | 11 | | respect to such taxes and retained amounts in the form and | 12 | | manner that the Department, by rule, requires and pay to the | 13 | | Department or to a depositary designated by the Department | 14 | | those withheld taxes not retained by the employer. | 15 | | For each reporting period, the employer may not claim a | 16 | | credit or credits for more employees than the number of | 17 | | employees making less than the minimum or reduced wage for the | 18 | | current calendar year during the last reporting period of the | 19 | | preceding calendar year. Notwithstanding any other provision | 20 | | of this subsection, an employer shall not be eligible for | 21 | | credits for a reporting period unless the average wage paid by | 22 | | the employer per employee for all employees making less than | 23 | | $55,000 during the reporting period is greater than the | 24 | | average wage paid by the employer per employee for all | 25 | | employees making less than $55,000 during the same reporting | 26 | | period of the prior calendar year. |
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| 1 | | For purposes of this subsection (i): | 2 | | "Compensation paid in Illinois" has the meaning ascribed | 3 | | to that term under Section 304(a)(2)(B) of this Act. | 4 | | "Employer" and "employee" have the meaning ascribed to | 5 | | those terms in the Minimum Wage Law, except that "employee" | 6 | | also includes employees who work for an employer with fewer | 7 | | than 4 employees. Employers that operate more than one | 8 | | establishment pursuant to a franchise agreement or that | 9 | | constitute members of a unitary business group shall aggregate | 10 | | their employees for purposes of determining eligibility for | 11 | | the credit. | 12 | | "Full-time equivalent employees" means the ratio of the | 13 | | number of paid hours during the reporting period and the | 14 | | number of working hours in that period. | 15 | | "Maximum credit" means the percentage listed below of the | 16 | | difference between the amount of compensation paid in Illinois | 17 | | to employees who are paid not more than the required minimum | 18 | | wage reduced by the amount of compensation paid in Illinois to | 19 | | employees who were paid less than the current required minimum | 20 | | wage during the reporting period prior to each increase in the | 21 | | required minimum wage on January 1. If an employer pays an | 22 | | employee more than the required minimum wage and that employee | 23 | | previously earned less than the required minimum wage, the | 24 | | employer may include the portion that does not exceed the | 25 | | required minimum wage as compensation paid in Illinois to | 26 | | employees who are paid not more than the required minimum |
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| 1 | | wage. | 2 | | (1) 25% for reporting periods beginning on or after | 3 | | January 1, 2020 and ending on or before December 31, 2020; | 4 | | (2) 21% for reporting periods beginning on or after | 5 | | January 1, 2021 and ending on or before December 31, 2021; | 6 | | (3) 17% for reporting periods beginning on or after | 7 | | January 1, 2022 and ending on or before December 31, 2022; | 8 | | (4) 13% for reporting periods beginning on or after | 9 | | January 1, 2023 and ending on or before December 31, 2023; | 10 | | (5) 9% for reporting periods beginning on or after | 11 | | January 1, 2024 and ending on or before December 31, 2024; | 12 | | (6) 5% for reporting periods beginning on or after | 13 | | January 1, 2025 and ending on or before December 31, 2025. | 14 | | The amount computed under this subsection may continue to | 15 | | be claimed for reporting periods beginning on or after January | 16 | | 1, 2026 and: | 17 | | (A) ending on or before December 31, 2026 for | 18 | | employers with more than 5 employees; or | 19 | | (B) ending on or before December 31, 2027 for | 20 | | employers with no more than 5 employees. | 21 | | "Qualified employee" means an employee who is paid not | 22 | | more than the required minimum wage and has an average wage | 23 | | paid per hour by the employer during the reporting period | 24 | | equal to or greater than his or her average wage paid per hour | 25 | | by the employer during each reporting period for the | 26 | | immediately preceding 12 months. A new qualified employee is |
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| 1 | | deemed to have earned the required minimum wage in the | 2 | | preceding reporting period. | 3 | | "Reporting period" means the quarter for which a return is | 4 | | required to be filed under subsection (b) of this Section. | 5 | | (Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17; | 6 | | 100-863, eff. 8-14-18; 101-1, eff. 2-19-19.) | 7 | | Section 910. The Retailers' Occupation Tax Act is amended | 8 | | by adding Section 5m as follows: | 9 | | (35 ILCS 120/5m new) | 10 | | Sec. 5m. Building materials exemption; electric vehicle | 11 | | manufacturer, electric vehicle component parts manufacturer, | 12 | | and electric vehicle power supply manufacturer. Each retailer | 13 | | who makes a sale of building materials that will be | 14 | | incorporated into real estate in an electric vehicle | 15 | | manufacturing facility, an electric vehicle component parts | 16 | | manufacturing facility, or an electric vehicle power supply | 17 | | manufacturing facility REV Illinois Project which meets the | 18 | | qualifications under paragraphs (1), (2), or (4) of subsection | 19 | | (c) of Section 20 of the Reimagining Electric Vehicles in | 20 | | Illinois Act for which a certificate of exemption has been | 21 | | issued by the Department of Commerce and Economic Opportunity | 22 | | under the Reimagining Electric Vehicles in Illinois Act, may | 23 | | deduct receipts from such sales when calculating any State or | 24 | | local use and occupation taxes. No retailer who is eligible |
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| 1 | | for the deduction or credit under Section 5k of this Act | 2 | | related to enterprise zones or Section 5l of this Act related | 3 | | to High Impact Businesses for a given sale shall be eligible | 4 | | for the deduction or credit authorized under this Section for | 5 | | that same sale. | 6 | | In addition to any other requirements to document the | 7 | | exemption allowed under this Section, the retailer must obtain | 8 | | from the purchaser's REV Illinois Building Materials Exemption | 9 | | certificate number issued by the Department. A construction | 10 | | contractor or other entity shall not make tax-free purchases | 11 | | unless it has an active REV Illinois Building Materials | 12 | | Exemption Certificate issued by the Department at the time of | 13 | | purchase. | 14 | | Upon request from the electric vehicle manufacturer, | 15 | | electric vehicle component parts manufacturer, or electric | 16 | | vehicle power supply manufacturer certified by the Department | 17 | | of Commerce and Economic Opportunity under REV Illinois Act, | 18 | | the Department shall issue a REV Illinois Building Materials | 19 | | Exemption Certificate for each construction contractor or | 20 | | other entity identified by the certified electric vehicle | 21 | | manufacturer, electric vehicle component parts manufacturer, | 22 | | or electric vehicle power supply manufacturer. The Department | 23 | | shall make the REV Illinois Building Materials Exemption | 24 | | Certificates available to each construction contractor or | 25 | | other entity and the certified electric vehicle manufacturer, | 26 | | electric vehicle component parts manufacturer, or electric |
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| 1 | | vehicle power supply manufacturer. The request for REV | 2 | | Illinois Building Materials Exemption Certificates from the | 3 | | certified electric vehicle manufacturer, electric vehicle | 4 | | component parts manufacturer, or electric vehicle power supply | 5 | | manufacturer to the Department must include the following | 6 | | information: | 7 | | (1) the name and address of the construction | 8 | | contractor or other entity; | 9 | | (2) the name and location or address of the building | 10 | | project site; | 11 | | (3) the estimated amount of the exemption for each | 12 | | construction contractor or other entity for which a | 13 | | request for a REV Illinois Building Materials Exemption | 14 | | Certificate is made, based on a stated estimated average | 15 | | tax rate and the percentage of the contract that consists | 16 | | of materials; | 17 | | (4) the period of time over which supplies for the | 18 | | project are expected to be purchased; and | 19 | | (5) other reasonable information as the Department may | 20 | | require, including but not limited to FEIN numbers, to | 21 | | determine if the contractor or other entity, or any | 22 | | partner, or a corporate officer, and in the case of a | 23 | | limited liability company, any manager or member, of the | 24 | | construction contractor or other entity, is or has been | 25 | | the owner, a partner, a corporate officer, and in the case | 26 | | of a limited liability company, a manager or member, of a |
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| 1 | | person that is in default for moneys due to the Department | 2 | | under this Act or any other tax or fee Act administered by | 3 | | the Department. | 4 | | The Department shall issue the REV Illinois Building | 5 | | Materials Exemption Certificates within 3 business days after | 6 | | receipt of request from the certified electric vehicle | 7 | | manufacturer, electric vehicle component parts manufacturer, | 8 | | or electric vehicle power supply manufacturer. This | 9 | | requirement does not apply in circumstances where the | 10 | | Department, for reasonable cause, is unable to issue the | 11 | | Exemption Certificate within 3 business days. The Department | 12 | | may refuse to issue a REV Illinois Building Materials | 13 | | Exemption Certificate if the owner, any partner, or a | 14 | | corporate officer, and in the case of a limited liability | 15 | | company, any manager or member, of the construction contractor | 16 | | or other entity is or has been the owner, a partner, a | 17 | | corporate officer, and in the case of a limited liability | 18 | | company, a manager or member, of a person that is in default | 19 | | for moneys due to the Department under this Act or any other | 20 | | tax or fee Act administered by the Department. | 21 | | The REV Illinois Building Materials Exemption Certificate | 22 | | shall contain language stating that if the construction | 23 | | contractor or other entity who is issued the Exemption | 24 | | Certificate makes a tax-exempt purchase, as described in this | 25 | | Section, that is not eligible for exemption under this Section | 26 | | or allows another person to make a tax-exempt purchase, as |
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| 1 | | described in this Section, that is not eligible for exemption | 2 | | under this Section, then, in addition to any tax or other | 3 | | penalty imposed, the construction contractor or other entity | 4 | | is subject to a penalty equal to the tax that would have been | 5 | | paid by the retailer under this Act as well as any applicable | 6 | | local retailers' occupation tax on the purchase that is not | 7 | | eligible for the exemption. | 8 | | The Department, in its discretion, may require that the | 9 | | request for REV Illinois Building Materials Exemption | 10 | | Certificates be submitted electronically. The Department may, | 11 | | in its discretion, issue the Exemption Certificates | 12 | | electronically. The REV Illinois Building Materials Exemption | 13 | | Certificate number shall be designed in such a way that the | 14 | | Department can identify from the unique number on the | 15 | | Exemption Certificate issued to a given construction | 16 | | contractor or other entity, the name of the designated | 17 | | electric vehicle manufacturing, electric vehicle component | 18 | | parts manufacturing, or electric vehicle power supply | 19 | | manufacturing site and the construction contractor or other | 20 | | entity to whom the Exemption Certificate is issued. The REV | 21 | | Illinois Building Materials Exemption Certificate shall | 22 | | contain an expiration date, which shall be no more than 5 years | 23 | | after the date of issuance. At the request of the designated | 24 | | certified electric vehicle manufacturer, electric vehicle | 25 | | component parts manufacturer, or electric vehicle power supply | 26 | | manufacturer, the Department may renew a REV Illinois Building |
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| 1 | | Materials Exemption Certificate. After the Department issues | 2 | | Exemption Certificates for a given designated electric vehicle | 3 | | manufacturing, electric vehicle component parts manufacturing, | 4 | | or electric vehicle power supply manufacturing site, the | 5 | | certified electric vehicle manufacturer, electric vehicle | 6 | | component parts manufacturer, or electric vehicle power supply | 7 | | manufacturer may notify the Department of additional | 8 | | construction contractors or other entities eligible for a REV | 9 | | Illinois Building Materials Exemption Certificate. Upon | 10 | | notification by the certified electric vehicle manufacturer, | 11 | | electric vehicle component parts manufacturer, or electric | 12 | | vehicle power supply manufacturer and subject to the other | 13 | | provisions of this Section, the Department shall issue a REV | 14 | | Illinois Building Materials Exemption Certificate to each | 15 | | additional construction contractor or other entity identified | 16 | | by the certified electric vehicle manufacturer, electric | 17 | | vehicle component parts manufacturer, or electric vehicle | 18 | | power supply manufacturer. A certified electric vehicle | 19 | | manufacturer, electric vehicle component parts manufacturer, | 20 | | or electric vehicle power supply manufacturer may notify the | 21 | | Department to rescind a REV Illinois Building Materials | 22 | | Exemption Certificate previously issued by the Department but | 23 | | that has not yet expired. Upon notification by the certified | 24 | | electric vehicle manufacturer, electric vehicle component | 25 | | parts manufacturer, or electric vehicle power supply | 26 | | manufacturer and subject to the other provisions of this |
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| 1 | | Section, the Department shall issue the rescission of the REV | 2 | | Illinois Building Materials Exemption Certificate to the | 3 | | construction contractor or other entity identified by the | 4 | | certified electric vehicle manufacturer, electric vehicle | 5 | | component parts manufacturer, or electric vehicle power supply | 6 | | manufacturer and provide a copy to the certified electric | 7 | | vehicle manufacturer, electric vehicle component parts | 8 | | manufacturer, or electric vehicle power supply manufacturer. | 9 | | If the Department of Revenue determines that a | 10 | | construction contractor or other entity that was issued an | 11 | | Exemption Certificate under this Section made a tax-exempt | 12 | | purchase, as described in this Section, that was not eligible | 13 | | for exemption under this Section or allowed another person to | 14 | | make a tax-exempt purchase, as described in this Section, that | 15 | | was not eligible for exemption under this Section, then, in | 16 | | addition to any tax or other penalty imposed, the construction | 17 | | contractor or other entity is subject to a penalty equal to the | 18 | | tax that would have been paid by the retailer under this Act as | 19 | | well as any applicable local retailers' occupation tax on the | 20 | | purchase that was not eligible for the exemption. | 21 | | This Section is exempt from the provisions of Section | 22 | | 2-70. | 23 | | Section 915. The Property Tax Code is amended by adding | 24 | | Section 18-184.15 as follows: |
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| 1 | | (35 ILCS 200/18-184.15 new) | 2 | | Sec. 18-184.15. REV Illinois project facilities for | 3 | | electric vehicles, electric vehicle component parts, or | 4 | | electric vehicle power supply equipment; abatement. Any taxing | 5 | | district, upon a majority vote of its governing body, may, | 6 | | after determination of the assessed value as set forth in this | 7 | | Code, order the clerk of the appropriate municipality or | 8 | | county to abate any portion of real property taxes otherwise | 9 | | levied or extended by the taxing district on a REV Illinois | 10 | | Project facility owned by an electric vehicle manufacturer, | 11 | | electric vehicle component parts manufacturer, or an electric | 12 | | vehicle power supply manufacturer that is subject to an | 13 | | agreement with the Department of Commerce and Economic | 14 | | Opportunity under Section 45 of the Reimagining Electric | 15 | | Vehicles in Illinois Act, during the period of time such | 16 | | agreement is in effect as specified by the Department of | 17 | | Commerce and Economic Opportunity. | 18 | | Section 920. The Telecommunications Excise Tax Act is | 19 | | amended by changing Section 2 as follows:
| 20 | | (35 ILCS 630/2) (from Ch. 120, par. 2002)
| 21 | | Sec. 2. As used in this Article, unless the context | 22 | | clearly requires
otherwise:
| 23 | | (a) "Gross charge" means the amount paid for the act or
| 24 | | privilege of originating or receiving telecommunications in |
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| 1 | | this State and
for all services and equipment provided in | 2 | | connection therewith by a
retailer, valued in money whether | 3 | | paid in money or otherwise, including
cash, credits, services | 4 | | and property of every kind or nature, and shall be
determined | 5 | | without any deduction on account of the cost of such
| 6 | | telecommunications, the cost of materials used, labor or | 7 | | service costs or
any other expense whatsoever. In case credit | 8 | | is extended, the amount
thereof shall be included only as and | 9 | | when paid.
"Gross charges" for private line service shall | 10 | | include charges imposed at
each channel termination point | 11 | | within this State, charges for the channel
mileage
between | 12 | | each channel termination point within this State, and charges | 13 | | for
that portion
of the interstate inter-office channel | 14 | | provided within Illinois. Charges for
that portion of the | 15 | | interstate inter-office channel provided in Illinois shall
be | 16 | | determined by the retailer as follows: (i) for interstate
| 17 | | inter-office channels having 2 channel termination points, | 18 | | only one of which
is in Illinois, 50% of the total charge | 19 | | imposed; or (ii) for interstate
inter-office channels having | 20 | | more than 2 channel termination points, one or
more of which
| 21 | | are in Illinois, an amount equal to the total charge
| 22 | | multiplied by a fraction, the numerator of which is the number | 23 | | of channel
termination points within Illinois and the | 24 | | denominator of which is the total
number of channel | 25 | | termination points. Prior to January 1,
2004, any method | 26 | | consistent with this
paragraph or other method that reasonably |
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| 1 | | apportions the total charges for
interstate inter-office | 2 | | channels among the states in which channel terminations
points | 3 | | are located shall be accepted as a reasonable method to | 4 | | determine the
charges for
that portion of the interstate | 5 | | inter-office channel provided within Illinois
for that period. | 6 | | However, "gross charges" shall not include any of the
| 7 | | following:
| 8 | | (1) Any amounts added to a purchaser's bill because of | 9 | | a charge made
pursuant to (i) the tax imposed by this | 10 | | Article; (ii) charges added to
customers' bills pursuant | 11 | | to the provisions of Sections 9-221 or 9-222 of
the Public | 12 | | Utilities Act, as amended, or any similar charges added to
| 13 | | customers' bills by retailers who are not subject to rate | 14 | | regulation by
the Illinois Commerce Commission for the | 15 | | purpose of recovering any of the
tax liabilities or other | 16 | | amounts specified in such provisions of such
Act; (iii) | 17 | | the tax imposed by Section 4251 of the Internal Revenue | 18 | | Code;
(iv) 911 surcharges; or (v) the tax imposed by the | 19 | | Simplified Municipal
Telecommunications Tax Act.
| 20 | | (2) Charges for a sent collect telecommunication | 21 | | received outside of the
State.
| 22 | | (3) Charges for leased time on equipment or charges | 23 | | for the storage of
data or information for subsequent | 24 | | retrieval or the processing of data or
information | 25 | | intended to change its form or content. Such equipment
| 26 | | includes, but is not limited to, the use of calculators, |
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| 1 | | computers, data
processing equipment, tabulating equipment | 2 | | or accounting equipment and also
includes the usage of | 3 | | computers under a time-sharing agreement.
| 4 | | (4) Charges for customer equipment, including such | 5 | | equipment that is
leased or rented by the customer from | 6 | | any source, wherein such charges are
disaggregated and | 7 | | separately identified from other charges.
| 8 | | (5) Charges to business enterprises certified under | 9 | | Section 9-222.1
of the Public Utilities Act, as amended, | 10 | | or to electric vehicle manufacturers, electric vehicle | 11 | | component parts manufacturers, or electric vehicle power | 12 | | supply manufacturers at REV Illinois Project sites for | 13 | | which a certificate of exemption has been issued by the | 14 | | Department of Commerce and Economic Opportunity under | 15 | | Section 95 of the Reimagining Electric Vehicles in | 16 | | Illinois Act, to the extent of such exemption
and during | 17 | | the period of time specified by the Department of Commerce | 18 | | and
Economic Opportunity.
| 19 | | (6) Charges for telecommunications and all services | 20 | | and equipment
provided in connection therewith between a | 21 | | parent corporation and its
wholly owned subsidiaries or | 22 | | between wholly owned subsidiaries when the tax
imposed | 23 | | under this Article has already been paid to a
retailer and | 24 | | only to the extent that the charges between the parent
| 25 | | corporation and wholly owned subsidiaries or between | 26 | | wholly owned
subsidiaries represent expense allocation
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| 1 | | between the corporations and not the generation of profit | 2 | | for the
corporation rendering such service.
| 3 | | (7) Bad debts. Bad debt means any portion of a debt | 4 | | that is related
to a sale at retail for which gross charges | 5 | | are not otherwise deductible or
excludable that has become | 6 | | worthless or uncollectable, as determined under
applicable | 7 | | federal income tax standards. If the portion of the debt | 8 | | deemed to
be bad is subsequently paid, the retailer shall | 9 | | report and pay the tax on that
portion during the | 10 | | reporting period in which the payment is made.
| 11 | | (8) Charges paid by inserting coins in coin-operated | 12 | | telecommunication
devices.
| 13 | | (9) Amounts paid by telecommunications retailers under | 14 | | the
Telecommunications Municipal Infrastructure | 15 | | Maintenance Fee Act.
| 16 | | (10) Charges for nontaxable services or | 17 | | telecommunications if (i) those
charges are
aggregated
| 18 | | with other
charges for telecommunications that are | 19 | | taxable, (ii) those charges are not
separately stated
on | 20 | | the
customer bill or invoice, and (iii) the retailer can | 21 | | reasonably identify the
nontaxable
charges on
the | 22 | | retailer's books and records kept in the regular course of | 23 | | business. If the
nontaxable
charges cannot reasonably be | 24 | | identified, the gross charge from the sale of both
taxable
| 25 | | and nontaxable services or telecommunications billed on a | 26 | | combined basis shall
be
attributed to the taxable services |
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| 1 | | or telecommunications. The burden of proving
nontaxable
| 2 | | charges
shall be on the retailer of the | 3 | | telecommunications.
| 4 | | (b) "Amount paid" means the amount charged to the | 5 | | taxpayer's service
address in this State regardless of where | 6 | | such amount is billed or paid.
| 7 | | (c) "Telecommunications", in addition to the meaning | 8 | | ordinarily and
popularly ascribed to it, includes, without | 9 | | limitation, messages or
information transmitted through use of | 10 | | local, toll and wide area telephone
service; private line | 11 | | services; channel services; telegraph services;
| 12 | | teletypewriter; computer exchange services; cellular mobile
| 13 | | telecommunications service; specialized mobile radio; | 14 | | stationary two way
radio; paging service; or any other form of | 15 | | mobile and portable one-way or
two-way communications; or any | 16 | | other transmission of messages or
information by electronic or | 17 | | similar means, between or among points by
wire, cable, | 18 | | fiber-optics, laser, microwave, radio, satellite or similar
| 19 | | facilities. As used in this Act, "private line" means a | 20 | | dedicated non-traffic
sensitive service for a single customer, | 21 | | that entitles the customer to
exclusive or priority use of a | 22 | | communications channel or group of channels,
from one or more | 23 | | specified locations to one or more other specified
locations. | 24 | | The definition of "telecommunications" shall not include value
| 25 | | added services in which computer processing applications are | 26 | | used to act on
the form, content, code and protocol of the |
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| 1 | | information for purposes other
than transmission. | 2 | | "Telecommunications" shall not include purchases of
| 3 | | telecommunications by a telecommunications service provider | 4 | | for use as a
component part of the service provided by him to | 5 | | the ultimate retail
consumer who originates or terminates the | 6 | | taxable end-to-end
communications. Carrier access charges, | 7 | | right of access charges, charges
for use of inter-company | 8 | | facilities, and all telecommunications resold in
the | 9 | | subsequent provision of, used as a component of, or integrated | 10 | | into
end-to-end telecommunications service shall be | 11 | | non-taxable as sales for resale.
| 12 | | (d) "Interstate telecommunications" means all | 13 | | telecommunications that
either originate or terminate outside | 14 | | this State.
| 15 | | (e) "Intrastate telecommunications" means all | 16 | | telecommunications that
originate and terminate within this | 17 | | State.
| 18 | | (f) "Department" means the Department of Revenue of the | 19 | | State of Illinois.
| 20 | | (g) "Director" means the Director of Revenue for the | 21 | | Department of
Revenue of the State of Illinois.
| 22 | | (h) "Taxpayer" means a person who individually or through | 23 | | his agents,
employees or permittees engages in the act or | 24 | | privilege of originating or
receiving telecommunications in | 25 | | this State and who incurs a tax liability
under this Article.
| 26 | | (i) "Person" means any natural individual, firm, trust, |
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| 1 | | estate, partnership,
association, joint stock company, joint | 2 | | venture, corporation, limited liability
company, or a | 3 | | receiver, trustee, guardian or other representative appointed | 4 | | by
order of any court, the Federal and State governments, | 5 | | including State
universities created by statute or any city, | 6 | | town, county or other political
subdivision of this State.
| 7 | | (j) "Purchase at retail" means the acquisition, | 8 | | consumption or use of
telecommunication through a sale at | 9 | | retail.
| 10 | | (k) "Sale at retail" means the transmitting, supplying or | 11 | | furnishing of
telecommunications and all services and | 12 | | equipment provided in connection
therewith for a consideration | 13 | | to persons other than the Federal and State
governments, and | 14 | | State universities created by statute and other than between
a | 15 | | parent corporation and its wholly owned subsidiaries or | 16 | | between wholly
owned subsidiaries for their use or consumption | 17 | | and not for resale.
| 18 | | (l) "Retailer" means and includes every person engaged in | 19 | | the business
of making sales at retail as defined in this | 20 | | Article. The Department may, in
its discretion, upon | 21 | | application, authorize the collection of the tax
hereby | 22 | | imposed by any retailer not maintaining a place of business | 23 | | within
this State, who, to the satisfaction of the Department, | 24 | | furnishes adequate
security to insure collection and payment | 25 | | of the tax. Such retailer shall
be issued, without charge, a | 26 | | permit to collect such tax. When so
authorized, it shall be the |
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| 1 | | duty of such retailer to collect the tax upon
all of the gross | 2 | | charges for telecommunications in this State in the same
| 3 | | manner and subject to the same requirements as a retailer | 4 | | maintaining a
place of business within this State. The permit | 5 | | may be revoked by the
Department at its discretion.
| 6 | | (m) "Retailer maintaining a place of business in this | 7 | | State", or any
like term, means and includes any retailer | 8 | | having or maintaining within
this State, directly or by a | 9 | | subsidiary, an office, distribution
facilities, transmission | 10 | | facilities, sales office, warehouse or other place
of | 11 | | business, or any agent or other representative operating | 12 | | within this
State under the authority of the retailer or its | 13 | | subsidiary, irrespective
of whether such place of business or | 14 | | agent or other representative is
located here permanently or | 15 | | temporarily, or whether such retailer or
subsidiary is | 16 | | licensed to do business in this State.
| 17 | | (n) "Service address" means the location of | 18 | | telecommunications equipment
from which the telecommunications | 19 | | services are originated or at which
telecommunications | 20 | | services are received by a taxpayer. In the event this may
not | 21 | | be a defined location, as in the case of mobile phones, paging | 22 | | systems,
maritime systems, service address means the | 23 | | customer's place of primary use
as defined in the Mobile | 24 | | Telecommunications Sourcing Conformity Act. For
air-to-ground | 25 | | systems and the like, service address shall mean the location
| 26 | | of a taxpayer's primary use of the telecommunications |
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| 1 | | equipment as defined by
telephone number, authorization code, | 2 | | or location in Illinois where bills are
sent.
| 3 | | (o) "Prepaid telephone calling arrangements" mean the | 4 | | right to exclusively
purchase telephone or telecommunications | 5 | | services that must be paid for in
advance and enable the | 6 | | origination of one or more intrastate, interstate, or
| 7 | | international telephone calls or other telecommunications | 8 | | using an access
number, an authorization code, or both, | 9 | | whether manually or electronically
dialed, for which payment | 10 | | to a retailer must be made in advance, provided
that, unless | 11 | | recharged, no further service is provided once that prepaid
| 12 | | amount of service has been consumed. Prepaid telephone calling | 13 | | arrangements
include the recharge of a prepaid calling | 14 | | arrangement. For purposes of this
subsection, "recharge" means | 15 | | the purchase of additional prepaid telephone or
| 16 | | telecommunications services whether or not the purchaser | 17 | | acquires a different
access number or authorization code. | 18 | | "Prepaid telephone calling arrangement"
does not include an | 19 | | arrangement whereby a customer purchases a payment card and
| 20 | | pursuant to which the service provider reflects the amount of | 21 | | such purchase as
a credit on an invoice issued to that customer | 22 | | under an existing subscription
plan.
| 23 | | (Source: P.A. 93-286, 1-1-04; 94-793, eff. 5-19-06.)
| 24 | | Section 925. The Electricity Excise Tax Law is amended by | 25 | | changing Section 2-4 as follows:
|
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| 1 | | (35 ILCS 640/2-4)
| 2 | | Sec. 2-4. Tax imposed.
| 3 | | (a) Except as provided in subsection (b), a tax is
imposed | 4 | | on the privilege
of using in this State electricity purchased | 5 | | for use or
consumption and not for resale, other than by | 6 | | municipal corporations owning and
operating a local | 7 | | transportation system for public service, at the following
| 8 | | rates per
kilowatt-hour delivered to the purchaser:
| 9 | | (i) For the first 2000 kilowatt-hours used or
consumed | 10 | | in a month: 0.330 cents per kilowatt-hour;
| 11 | | (ii) For the next 48,000 kilowatt-hours used or
| 12 | | consumed in a month: 0.319 cents per kilowatt-hour;
| 13 | | (iii) For the next 50,000 kilowatt-hours used or
| 14 | | consumed in a month: 0.303 cents per kilowatt-hour;
| 15 | | (iv) For the next 400,000 kilowatt-hours used or
| 16 | | consumed in a month: 0.297 cents per kilowatt-hour;
| 17 | | (v) For the next 500,000 kilowatt-hours used or
| 18 | | consumed in a month: 0.286 cents per kilowatt-hour;
| 19 | | (vi) For the next 2,000,000 kilowatt-hours used or
| 20 | | consumed in a month: 0.270 cents per kilowatt-hour;
| 21 | | (vii) For the next 2,000,000 kilowatt-hours used or
| 22 | | consumed in a month: 0.254 cents per kilowatt-hour;
| 23 | | (viii) For the next 5,000,000 kilowatt-hours used
or | 24 | | consumed in a month: 0.233 cents per kilowatt-hour;
| 25 | | (ix) For the next 10,000,000 kilowatt-hours used or
|
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| 1 | | consumed in a month: 0.207 cents per kilowatt-hour;
| 2 | | (x) For all electricity in excess of 20,000,000
| 3 | | kilowatt-hours used or consumed in a month: 0.202 cents
| 4 | | per kilowatt-hour.
| 5 | | Provided, that in lieu of the foregoing rates, the tax
is | 6 | | imposed on a self-assessing purchaser at the rate of 5.1%
of | 7 | | the self-assessing purchaser's purchase price for
all | 8 | | electricity distributed, supplied, furnished, sold,
| 9 | | transmitted and delivered to the self-assessing purchaser in a
| 10 | | month.
| 11 | | (b) A tax is imposed on the privilege of using in this | 12 | | State electricity
purchased from a municipal system or | 13 | | electric cooperative, as defined in
Article XVII of the Public | 14 | | Utilities Act, which has not made an election as
permitted by | 15 | | either Section 17-200 or Section 17-300 of such Act, at the | 16 | | lesser
of 0.32 cents per kilowatt hour of all electricity | 17 | | distributed, supplied,
furnished, sold, transmitted, and | 18 | | delivered by such municipal system or
electric cooperative to | 19 | | the purchaser or 5% of each such purchaser's purchase
price | 20 | | for all electricity distributed, supplied, furnished, sold, | 21 | | transmitted,
and delivered by such municipal system or | 22 | | electric cooperative to the
purchaser, whichever is the lower | 23 | | rate as applied to each purchaser in each
billing period.
| 24 | | (c) The tax imposed by this Section 2-4 is not imposed with
| 25 | | respect to any use of electricity by business enterprises
| 26 | | certified under Section 9-222.1 or 9-222.1A of the Public |
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| 1 | | Utilities Act,
as amended, to the extent of such exemption and | 2 | | during the
time specified by the Department of Commerce and | 3 | | Economic Opportunity; or with respect to any transaction in | 4 | | interstate
commerce, or otherwise, to the extent to which such
| 5 | | transaction may not, under the Constitution and statutes of
| 6 | | the United States, be made the subject of taxation by this
| 7 | | State.
| 8 | | (d) The tax imposed by this Section 2-4 is not imposed with | 9 | | respect to any use of electricity at a REV Illinois Project | 10 | | site that has received a certification for tax exemption from | 11 | | the Department of Commerce and Economic Opportunity pursuant | 12 | | to Section 95 of the Reimagining Electric Vehicles in Illinois | 13 | | Act, to the extent of such exemption, which shall be no more | 14 | | than 10 years. | 15 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 16 | | Section 930. The Public Utilities Act is amended by | 17 | | changing Section 9-222 as follows:
| 18 | | (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
| 19 | | Sec. 9-222.
Whenever a tax is imposed upon a public | 20 | | utility
engaged in the business of distributing, supplying,
| 21 | | furnishing, or selling gas for use or consumption pursuant to | 22 | | Section 2 of
the Gas Revenue Tax Act, or whenever a tax is
| 23 | | required to be collected by a delivering supplier pursuant to | 24 | | Section 2-7 of
the Electricity Excise Tax Act, or whenever a |
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| 1 | | tax is imposed upon a public
utility pursuant to Section
2-202 | 2 | | of this Act, such utility may charge its customers, other than
| 3 | | customers who are high impact businesses under Section 5.5
of | 4 | | the Illinois Enterprise Zone Act, electric vehicle | 5 | | manufacturers, electric vehicle component parts manufacturers, | 6 | | or electric vehicle power supply equipment manufacturers at | 7 | | REV Illinois Project sites as certified under Section 95 of | 8 | | the Reimagining Electric Vehicles in Illinois Act, or | 9 | | certified business enterprises
under Section 9-222.1 of this | 10 | | Act, to the extent of such exemption and
during the period in | 11 | | which such exemption is in effect,
in addition to any rate | 12 | | authorized by this Act, an additional
charge equal to the | 13 | | total amount of such taxes. The exemption of this
Section | 14 | | relating to high impact businesses shall be subject to the
| 15 | | provisions of subsections (a), (b), and (b-5) of Section 5.5 | 16 | | of
the Illinois
Enterprise Zone Act. This requirement shall | 17 | | not
apply to taxes on invested capital imposed pursuant to the | 18 | | Messages Tax
Act, the Gas Revenue Tax Act and the Public | 19 | | Utilities Revenue Act.
Such utility shall file with the | 20 | | Commission
a supplemental schedule which shall specify such | 21 | | additional charge and
which shall become effective upon filing | 22 | | without further notice. Such
additional charge shall be shown | 23 | | separately on the utility bill to each
customer. The | 24 | | Commission shall have the power to investigate whether or
not | 25 | | such supplemental schedule correctly specifies such additional | 26 | | charge,
but shall have no power to suspend such supplemental |
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| 1 | | schedule. If the
Commission finds, after a hearing, that such | 2 | | supplemental schedule does not
correctly specify such | 3 | | additional charge, it shall by order require a
refund to the | 4 | | appropriate customers of the excess, if any, with interest,
in | 5 | | such manner as it shall deem just and reasonable, and in and by | 6 | | such
order shall require the utility to file an amended | 7 | | supplemental schedule
corresponding to the finding and order | 8 | | of the Commission.
Except with respect to taxes imposed on | 9 | | invested capital,
such tax liabilities shall be recovered from | 10 | | customers solely by means of
the additional charges authorized | 11 | | by this Section.
| 12 | | (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
| 13 | | Section 935. The Environmental Protection Act is amended | 14 | | by adding Section 52.10 as follows: | 15 | | (415 ILCS 5/52.10 new) | 16 | | Sec. 52.10. Electric Vehicle Permitting Task Force. | 17 | | (a) The Electric Vehicle Permitting Task Force is hereby | 18 | | created within the Environmental Protection Agency. | 19 | | (b) The Task Force shall consist of the following members, | 20 | | which shall represent the diversity of the people of Illinois: | 21 | | (1) The Director of the Environmental Protection | 22 | | Agency or his or her designee; | 23 | | (2) The Director of Natural Resources or his or her | 24 | | designee; |
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| 1 | | (3) The Secretary of Transportation or their designee; | 2 | | (4) 8 members appointed by the Governor as follows: | 3 | | (A) one member of a statewide organization | 4 | | representing manufacturers; | 5 | | (B) one member of a statewide organization | 6 | | representing business interests; | 7 | | (C) one member representing an environmental | 8 | | justice organization; | 9 | | (D) one member representing a statewide | 10 | | environmental advocacy organization; | 11 | | (E) one member representing the electric vehicle | 12 | | industry; | 13 | | (F) one member representing the waste management | 14 | | industry; | 15 | | (G) one member of a statewide organization | 16 | | representing agricultural interests; and | 17 | | (H) one member representing a labor organization. | 18 | | (c) The duties and responsibilities of the Task Force | 19 | | include the following: | 20 | | (1) identify existing and potential challenges faced | 21 | | by the electric vehicle industry with respect to the | 22 | | process for obtaining necessary permits from the | 23 | | Environmental Protection Agency, the Department of Natural | 24 | | Resources, and the Department of Transportation, and | 25 | | potential solutions; | 26 | | (2) conduct an assessment of State permitting fees, |
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| 1 | | including those necessary for electric vehicle investment | 2 | | in Illinois, and the revenue generated by those fees; | 3 | | (3) assess the permitting needs of the electric | 4 | | vehicle industry, including electric vehicle | 5 | | manufacturers, electric vehicle power supply equipment | 6 | | manufacturers, and electric vehicle component parts | 7 | | manufacturers; | 8 | | (4) recommend changes to expedite permitting processes | 9 | | to support the rapid growth of the electric vehicle | 10 | | industry in Illinois, including support for electric | 11 | | vehicle businesses locating or relocating in Illinois; | 12 | | (5) analyze anticipated staffing needs across State | 13 | | agencies to support expedited permitting efforts; | 14 | | (6) recommend adjustments to the fee structure for | 15 | | state permits, including those permits necessary for | 16 | | electric vehicle investment in Illinois. that will support | 17 | | increased staffing at state agencies; | 18 | | (7) Consider the impact of State and local permitting | 19 | | issues on electric vehicle charging station deployments, | 20 | | and make recommendations on best practices to streamline | 21 | | permitting related to electric vehicle charging stations; | 22 | | and | 23 | | (8) recommend legislative and regulatory actions that | 24 | | are necessary to support changes to permitting processes. | 25 | | (d) The Task Force shall not consider or recommend changes | 26 | | to environmental permitting standards outside of the scope of |
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| 1 | | the duties and responsibilities outlined in subsection (c). | 2 | | (e) Appointments for the Task Force shall be made no later | 3 | | than December 15, 2021. The Task Force shall issue a final | 4 | | report based upon its findings and recommendations and submit | 5 | | the report to the Governor and the General Assembly no later | 6 | | than March 1, 2022. | 7 | | (f) Members of the Task Force shall serve without | 8 | | compensation. The Environmental Protection Agency shall | 9 | | provide administrative support to the Task Force. | 10 | | (g) The Task Force shall be dissolved upon the filing of | 11 | | its report. | 12 | | (h) This Section is repealed on December 31, 2022. | 13 | | Section 940. The Motor Vehicle Franchise Act is amended by | 14 | | changing Section 6 as follows:
| 15 | | (815 ILCS 710/6) (from Ch. 121 1/2, par. 756)
| 16 | | (Text of Section before amendment by P.A. 102-232 )
| 17 | | Sec. 6. Warranty agreements; claims; approval; payment; | 18 | | written
disapproval. | 19 | | (a) Every manufacturer, distributor, wholesaler, | 20 | | distributor branch
or division, factory branch or division, or | 21 | | wholesale branch or division
shall properly fulfill any | 22 | | warranty agreement and adequately and fairly
compensate each | 23 | | of its motor vehicle dealers for labor and parts.
| 24 | | (b) In no event shall such compensation fail to include |
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| 1 | | reasonable
compensation for diagnostic work, as well as repair | 2 | | service, labor, and
parts. Time allowances for the diagnosis | 3 | | and performance of warranty
work and service shall be
| 4 | | reasonable and adequate for the work to be performed. In the | 5 | | determination
of what constitutes reasonable compensation | 6 | | under this Section, the principal
factor to be given | 7 | | consideration shall be the prevailing wage rates being
paid by | 8 | | the dealer in the relevant market area in which the motor | 9 | | vehicle
dealer is doing business, and in no event shall such | 10 | | compensation of a motor
vehicle dealer for warranty service be | 11 | | less than the rates charged by such
dealer for like service to | 12 | | retail customers for nonwarranty service and
repairs. The | 13 | | franchiser shall reimburse the franchisee for any parts
| 14 | | provided in satisfaction of a warranty at the prevailing | 15 | | retail price charged
by that dealer for the same parts when not | 16 | | provided in satisfaction of a
warranty; provided that such | 17 | | motor vehicle franchisee's prevailing retail price
is not | 18 | | unreasonable when compared with that of the holders of motor | 19 | | vehicle
franchises from the same motor vehicle franchiser for | 20 | | identical merchandise
in the geographic area in which the | 21 | | motor vehicle franchisee is engaged in
business. All claims, | 22 | | either original or resubmitted, made by motor vehicle
dealers | 23 | | hereunder and under Section 5 for such labor and parts shall be | 24 | | either
approved or disapproved within 30 days following their | 25 | | submission. All
approved claims shall be paid within 30 days | 26 | | following their approval. The
motor vehicle dealer who submits |
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| 1 | | a claim which is disapproved shall be notified
in writing of | 2 | | the disapproval within the same period, and each such notice
| 3 | | shall state the specific grounds upon which the disapproval is | 4 | | based. The
motor vehicle dealer shall be permitted to correct | 5 | | and resubmit such
disapproved claims within 30 days of receipt | 6 | | of disapproval. Any claims not
specifically disapproved in | 7 | | writing within 30 days from their submission shall
be deemed | 8 | | approved and payment shall follow within 30 days. The | 9 | | manufacturer
or franchiser shall have the right to require | 10 | | reasonable documentation for
claims and to audit such claims | 11 | | within a one year period from the date the
claim was paid or | 12 | | credit issued by the manufacturer or franchiser, and to
charge | 13 | | back any false or unsubstantiated claims. The audit and charge | 14 | | back
provisions of this Section also apply to all other | 15 | | incentive and reimbursement
programs for a period of one year | 16 | | after the date the claim was paid or credit issued by the | 17 | | manufacturer or franchiser. However, the manufacturer retains | 18 | | the
right to charge back any fraudulent claim if the | 19 | | manufacturer establishes in
a court of competent jurisdiction | 20 | | in this State that the claim is fraudulent.
| 21 | | (c) The motor vehicle franchiser shall not, by agreement, | 22 | | by restrictions
upon reimbursement, or otherwise, restrict the | 23 | | nature and extent of services to
be rendered or parts to be | 24 | | provided so that such restriction prevents the motor
vehicle | 25 | | franchisee from satisfying the warranty by rendering services | 26 | | in a good
and workmanlike manner and providing parts which are |
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| 1 | | required in accordance
with generally accepted standards. Any | 2 | | such restriction shall constitute a
prohibited practice.
| 3 | | (d) For the purposes of this Section, the "prevailing | 4 | | retail price
charged by that dealer for the same parts" means | 5 | | the price paid by
the motor vehicle franchisee for parts, | 6 | | including all shipping and other
charges, multiplied by the | 7 | | sum of 1.0 and the franchisee's average percentage
markup over | 8 | | the price paid by the motor vehicle franchisee for parts | 9 | | purchased
by the motor vehicle franchisee from the motor | 10 | | vehicle franchiser and sold at
retail. The motor vehicle | 11 | | franchisee may establish average percentage markup
under this | 12 | | Section by submitting to the motor vehicle franchiser 100 | 13 | | sequential
customer paid service repair orders or 90 days of | 14 | | customer paid service repair
orders, whichever is less, | 15 | | covering repairs made no more than 180 days before
the | 16 | | submission, and declaring what the average percentage markup | 17 | | is. The
average percentage markup so declared shall go into | 18 | | effect 30 days following
the declaration, subject to audit of | 19 | | the submitted repair orders by the motor
vehicle franchiser | 20 | | and adjustment of the average percentage markup based on
that | 21 | | audit. Any audit must be conducted within 30 days following | 22 | | the
declaration. Only retail sales not involving warranty | 23 | | repairs, parts covered
by subsection (e) of this Section, or | 24 | | parts supplied for routine vehicle
maintenance, shall be | 25 | | considered in calculating average percentage markup. No
motor | 26 | | vehicle franchiser shall require a motor vehicle franchisee to |
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| 1 | | establish
average percentage markup by a methodology, or by | 2 | | requiring information, that
is unduly burdensome or time | 3 | | consuming to provide, including, but not limited
to, part by | 4 | | part or transaction by transaction calculations. A motor | 5 | | vehicle
franchisee shall not request a change in the average | 6 | | percentage markup more
than twice in one calendar year.
| 7 | | (e) If a motor vehicle franchiser supplies a part or parts | 8 | | for use in a
repair rendered under a warranty other than by | 9 | | sale of that part or parts to
the motor vehicle franchisee, the | 10 | | motor vehicle franchisee shall be entitled to
compensation | 11 | | equivalent to the motor vehicle franchisee's average | 12 | | percentage
markup on the part or parts, as if the part or parts | 13 | | had been sold to the motor
vehicle franchisee by the motor | 14 | | vehicle franchiser. The requirements of this
subsection (e) | 15 | | shall not apply to entire engine assemblies and entire
| 16 | | transmission
assemblies. In the case of those assemblies, the | 17 | | motor vehicle franchiser
shall reimburse the motor vehicle | 18 | | franchisee in the amount of 30% of what the
motor vehicle | 19 | | franchisee would have paid the motor vehicle franchiser for | 20 | | the
assembly if the assembly had not been supplied by the | 21 | | franchiser other than by
the sale of that assembly to the motor | 22 | | vehicle franchisee.
| 23 | | (f) The obligations imposed on motor vehicle franchisers | 24 | | by this Section
shall apply to any parent, subsidiary, | 25 | | affiliate, or agent of the motor vehicle
franchiser, any | 26 | | person under common ownership or control, any employee of the
|
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| 1 | | motor vehicle franchiser, and any person holding 1% or more of | 2 | | the shares of
any class of securities or other ownership | 3 | | interest in the motor vehicle
franchiser, if a warranty or | 4 | | service or repair plan is issued by that person
instead of or | 5 | | in addition to one issued by the motor vehicle franchiser.
| 6 | | (g) (1) Any motor vehicle franchiser and at least a | 7 | | majority of its
Illinois franchisees of the same line make may | 8 | | agree in an express written
contract citing this Section upon | 9 | | a uniform warranty reimbursement policy used
by contracting | 10 | | franchisees to perform warranty repairs. The policy shall only
| 11 | | involve either reimbursement for parts used in warranty | 12 | | repairs or the use
of a Uniform Time Standards Manual, or both. | 13 | | Reimbursement for parts under the
agreement shall be used | 14 | | instead of the franchisees' "prevailing retail price
charged | 15 | | by that dealer for the same parts" as defined in this Section | 16 | | to
calculate compensation due from the franchiser for parts | 17 | | used in warranty
repairs. This Section does not authorize a | 18 | | franchiser and its Illinois
franchisees to establish a uniform | 19 | | hourly labor reimbursement.
| 20 | | Each franchiser shall only have one such agreement with | 21 | | each line make.
Any such agreement shall:
| 22 | | (A) Establish a uniform parts reimbursement rate. The | 23 | | uniform parts
reimbursement rate shall be greater than the | 24 | | franchiser's nationally
established
parts reimbursement | 25 | | rate in effect at the time the first such agreement | 26 | | becomes
effective; however, any subsequent agreement shall |
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| 1 | | result in a uniform
reimbursement rate that is greater or | 2 | | equal to the rate set forth in the
immediately prior | 3 | | agreement.
| 4 | | (B) Apply to all warranty repair orders written during | 5 | | the period that
the agreement is effective.
| 6 | | (C) Be available, during the period it is effective, | 7 | | to any motor
vehicle franchisee of the same line make at | 8 | | any time and on the same terms.
| 9 | | (D) Be for a term not to exceed 3 years so long as any | 10 | | party to the
agreement may terminate the agreement upon | 11 | | the annual anniversary of the
agreement and with 30 days' | 12 | | prior written notice; however, the agreement shall
remain | 13 | | in effect for the term of the agreement regardless of the | 14 | | number of
dealers of the same line make that may terminate | 15 | | the agreement.
| 16 | | (2) A franchiser that enters into an agreement with its | 17 | | franchisees
pursuant to paragraph (1) of this subsection (g) | 18 | | may seek to recover its costs
from only those franchisees that | 19 | | are receiving their "prevailing retail price
charged by that | 20 | | dealer" under subsections (a) through (f) of this Section,
| 21 | | subject to the following requirements:
| 22 | | (A) "costs" means the difference between the uniform | 23 | | reimbursement rate
set forth in an agreement entered into | 24 | | pursuant to paragraph (1) of this
subsection (g) and the | 25 | | "prevailing retail price charged by that dealer"
received | 26 | | by those franchisees of the same line make. "Costs" do not |
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| 1 | | include the following: legal fees or expenses; | 2 | | administrative expenses; a profit mark-up; or any other | 3 | | item;
| 4 | | (B) the costs shall be recovered only by increasing | 5 | | the invoice price on
new vehicles received by those | 6 | | franchisees; and
| 7 | | (C) price increases imposed for the purpose of | 8 | | recovering costs imposed
by this Section may vary from | 9 | | time to time and from model to model, but shall
apply | 10 | | uniformly to all franchisees of the same line make in the | 11 | | State of
Illinois that have requested reimbursement for | 12 | | warranty repairs at their
"prevailing retail price charged | 13 | | by that dealer", except that a franchiser may
make an | 14 | | exception for vehicles that are titled in the name of a | 15 | | consumer in
another state.
| 16 | | (3) If a franchiser contracts with its Illinois dealers | 17 | | pursuant to
paragraph (1) of this subsection (g), the | 18 | | franchiser shall certify under oath
to the Motor Vehicle | 19 | | Review Board that a majority of the franchisees of that
line | 20 | | make did agree to such an agreement and file a sample copy of | 21 | | the
agreement. On an annual basis, each franchiser shall | 22 | | certify under oath to
the Motor Vehicle Review Board that the | 23 | | reimbursement costs it recovers under
paragraph (2) of this | 24 | | subsection (g) do not exceed the amounts authorized by
| 25 | | paragraph (2) of this subsection (g). The franchiser shall | 26 | | maintain for a
period of 3 years a file that contains the |
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| 1 | | information upon which its
certification is based. | 2 | | (3.1) A franchiser subject to subdivision (g)(2) of this | 3 | | Section, upon request of a dealer subject to that subdivision, | 4 | | shall disclose to the dealer, in writing or in person if | 5 | | requested by the dealer, the method by which the franchiser | 6 | | calculated the amount of the costs to be reimbursed by the | 7 | | dealer. The franchiser shall also provide aggregate data | 8 | | showing (i) the total costs the franchiser incurred and (ii) | 9 | | the total number of new vehicles invoiced to each dealer that | 10 | | received the "prevailing retail price charged by that dealer" | 11 | | during the relevant period of time. In responding to a | 12 | | dealer's request under this subdivision (g)(3.1), a franchiser | 13 | | may not disclose any confidential or competitive information | 14 | | regarding any other dealer. Any dealer who receives | 15 | | information from a franchiser under this subdivision (g)(3.1) | 16 | | may not disclose that information to any third party unless | 17 | | the disclosure occurs in the course of a lawful proceeding | 18 | | before, or upon the order of, the Motor Vehicle Review Board or | 19 | | a court of competent jurisdiction.
| 20 | | (4) If a franchiser and its franchisees do not enter into | 21 | | an agreement
pursuant to paragraph (1) of this subsection (g), | 22 | | and for any matter that is
not the subject of an agreement, | 23 | | this subsection (g) shall have no effect
whatsoever.
| 24 | | (5) For purposes of this subsection (g), a Uniform Time | 25 | | Standard Manual
is a document created by a franchiser that | 26 | | establishes the time allowances for
the diagnosis and |
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| 1 | | performance of warranty work and service. The allowances
shall | 2 | | be reasonable and adequate for the work and service to be | 3 | | performed.
Each franchiser shall have a reasonable and fair | 4 | | process that allows a
franchisee to request a modification or | 5 | | adjustment of a standard or standards
included in such a | 6 | | manual. | 7 | | (6) A franchiser may not take any adverse action against a | 8 | | franchisee for not having executed an agreement contemplated | 9 | | by this subsection (g) or for receiving the "prevailing retail | 10 | | price charged by that dealer". Nothing in this subsection | 11 | | shall be construed to prevent a franchiser from making a | 12 | | determination of a franchisee's "prevailing retail price | 13 | | charged by that dealer", as provided by this Section.
| 14 | | (Source: P.A. 96-11, eff. 5-22-09.)
| 15 | | (Text of Section after amendment by P.A. 102-232 )
| 16 | | Sec. 6. Warranty agreements; claims; approval; payment; | 17 | | written
disapproval. | 18 | | (a) Every manufacturer, distributor, wholesaler, | 19 | | distributor branch
or division, factory branch or division, or | 20 | | wholesale branch or division
shall properly fulfill any | 21 | | warranty agreement and adequately and fairly
compensate each | 22 | | of its motor vehicle dealers for labor and parts.
| 23 | | (b) Adequate and fair compensation requires the | 24 | | manufacturer to pay each dealer no less than the amount the | 25 | | retail customer pays for the same services with regard to rate |
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| 1 | | and time. | 2 | | Any time guide previously agreed to by the manufacturer | 3 | | and the dealer for extended warranty repairs may be used in | 4 | | lieu of actual time expended. In the event that a time guide | 5 | | has not been agreed to for warranty repairs, or said time guide | 6 | | does not define time for an applicable warranty repair, the | 7 | | manufacturer's time guide shall be used, multiplied by 1.5. | 8 | | In no event shall such compensation fail to include full
| 9 | | compensation for diagnostic work, as well as repair service, | 10 | | labor, and
parts. Time allowances for the diagnosis and | 11 | | performance of warranty
work and service shall be no less than | 12 | | charged to retail customers
for the same work to be performed. | 13 | | No warranty or factory compensated repairs shall be | 14 | | excluded from this requirement, including recalls or other | 15 | | voluntary stop-sell repairs required by the manufacturer. If a | 16 | | manufacturer is required to issue a recall, the dealer will be | 17 | | compensated for labor time as above stated. | 18 | | Furthermore, manufacturers shall pay the dealer the same | 19 | | effective labor rate (using the 100 sequential repair orders | 20 | | chosen and submitted by the dealer less simple maintenance | 21 | | repair orders) that the dealer receives for customer-pay | 22 | | repairs. This requirement includes vehicle diagnostic times | 23 | | for all warranty repairs. Additionally, if a technician is | 24 | | required to communicate with a Technical Assistance | 25 | | Center/Engineering/or some external manufacturer source in | 26 | | order to provide a warranty repair, the manufacturer shall pay |
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| 1 | | for the time from start of communications (including hold | 2 | | time) until the communication is complete. | 3 | | The dealer may submit a request to the manufacturer for | 4 | | warranty labor rate increases a maximum of once per calendar | 5 | | year. | 6 | | A claim made by a franchised motor vehicle dealer for | 7 | | compensation under this Section shall be either approved or | 8 | | disapproved within 30 days after the claim is submitted to the | 9 | | manufacturer in the manner and on the forms the manufacturer | 10 | | reasonably prescribes. An approved claim shall be paid within | 11 | | 30 days after its approval. If a claim is not specifically | 12 | | disapproved in writing or by electronic transmission within 30 | 13 | | days after the date on which the manufacturer receives it, the | 14 | | claim shall be considered to be approved and payment shall | 15 | | follow within 30 days. | 16 | | In no event shall compensation to a motor
vehicle dealer | 17 | | for labor times and labor rates be less than the rates charged | 18 | | by such
dealer for like service to retail customers for | 19 | | nonwarranty service and
repairs. Additionally, the | 20 | | manufacturer shall reimburse the dealer for any parts provided | 21 | | in satisfaction of a warranty at the prevailing retail price | 22 | | charged by that dealer for the same parts when not provided in | 23 | | satisfaction of a warranty; provided that such dealer's | 24 | | prevailing retail price is not unreasonable when compared with | 25 | | that of the holders of motor vehicle franchises from the same | 26 | | manufacturer for identical parts in the geographic area in |
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| 1 | | which the dealer is engaged in business. Additionally, the | 2 | | manufacturer shall reimburse the dealer for any parts
provided | 3 | | in satisfaction of a warranty at the prevailing retail price | 4 | | charged
by that dealer for the same parts when sold to a retail | 5 | | customer. | 6 | | There shall be no reduction in payments due to | 7 | | preestablished market norms or market averages.
Manufacturers | 8 | | are prohibited from establishing restrictions or limitations | 9 | | of customer repair frequency due to failure rate indexes or | 10 | | national failure averages. | 11 | | No debit reduction or charge back of any item on a warranty | 12 | | repair order may be made absent a finding of fraud or illegal | 13 | | actions by the dealer. | 14 | | A warranty claim timely made shall not be deemed invalid | 15 | | solely because unavailable parts cause additional use and | 16 | | mileage on the vehicle. | 17 | | If a manufacturer imposes a recall or stop sale on any new | 18 | | vehicle in a dealer's inventory that prevents the sale of the | 19 | | vehicle, the manufacturer shall compensate the dealer for any | 20 | | interest and storage until the vehicle is repaired and made | 21 | | ready for sale. | 22 | | Manufacturers are not permitted to impose any form of cost | 23 | | recovery fees or surcharges against a franchised auto | 24 | | dealership for payments made in accordance with this Section. | 25 | | All claims, either original or resubmitted, made by motor | 26 | | vehicle
dealers hereunder and under Section 5 for such labor |
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| 1 | | and parts shall be either
approved or disapproved within 30 | 2 | | days following their submission. All
approved claims shall be | 3 | | paid within 30 days following their approval. The
motor | 4 | | vehicle dealer who submits a claim which is disapproved shall | 5 | | be notified
in writing of the disapproval within the same | 6 | | period, and each such notice
shall state the specific grounds | 7 | | upon which the disapproval is based. The
motor vehicle dealer | 8 | | shall be permitted to correct and resubmit such
disapproved | 9 | | claims within 30 days of receipt of disapproval. Any claims | 10 | | not
specifically disapproved in writing within 30 days from | 11 | | their submission shall
be deemed approved and payment shall | 12 | | follow within 30 days. The manufacturer
or franchiser shall | 13 | | have the right to require reasonable documentation for
claims | 14 | | and to audit such claims within a one year period from the date | 15 | | the
claim was paid or credit issued by the manufacturer or | 16 | | franchiser, and to
charge back any false or unsubstantiated | 17 | | claims. The audit and charge back
provisions of this Section | 18 | | also apply to all other incentive and reimbursement
programs | 19 | | for a period of one year after the date the claim was paid or | 20 | | credit issued by the manufacturer or franchiser. However, the | 21 | | manufacturer retains the
right to charge back any fraudulent | 22 | | claim if the manufacturer establishes in
a court of competent | 23 | | jurisdiction in this State that the claim is fraudulent.
| 24 | | (c) The motor vehicle franchiser shall not, by agreement, | 25 | | by restrictions
upon reimbursement, or otherwise, restrict the | 26 | | nature and extent of services to
be rendered or parts to be |
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| 1 | | provided so that such restriction prevents the motor
vehicle | 2 | | franchisee from satisfying the warranty by rendering services | 3 | | in a good
and workmanlike manner and providing parts which are | 4 | | required in accordance
with generally accepted standards. Any | 5 | | such restriction shall constitute a
prohibited practice.
| 6 | | (d) For the purposes of this Section, the "prevailing | 7 | | retail price
charged by that dealer for the same parts" means | 8 | | the price paid by
the motor vehicle franchisee for parts, | 9 | | including all shipping and other
charges, multiplied by the | 10 | | sum of 1.0 and the franchisee's average percentage
markup over | 11 | | the price paid by the motor vehicle franchisee for parts | 12 | | purchased
by the motor vehicle franchisee from the motor | 13 | | vehicle franchiser and sold at
retail. The motor vehicle | 14 | | franchisee may establish average percentage markup
under this | 15 | | Section by submitting to the motor vehicle franchiser 100 | 16 | | sequential
customer paid service repair orders or 90 days of | 17 | | customer paid service repair
orders, whichever is less, | 18 | | covering repairs made no more than 180 days before
the | 19 | | submission, and declaring what the average percentage markup | 20 | | is. The
average percentage markup so declared shall go into | 21 | | effect 30 days following
the declaration, subject to audit of | 22 | | the submitted repair orders by the motor
vehicle franchiser | 23 | | and adjustment of the average percentage markup based on
that | 24 | | audit. Any audit must be conducted within 30 days following | 25 | | the
declaration. Only retail sales not involving warranty | 26 | | repairs, parts covered
by subsection (e) of this Section, or |
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| 1 | | parts supplied for routine vehicle
maintenance, shall be | 2 | | considered in calculating average percentage markup. No
motor | 3 | | vehicle franchiser shall require a motor vehicle franchisee to | 4 | | establish
average percentage markup by a methodology, or by | 5 | | requiring information, that
is unduly burdensome or time | 6 | | consuming to provide, including, but not limited
to, part by | 7 | | part or transaction by transaction calculations. A motor | 8 | | vehicle
franchisee shall not request a change in the average | 9 | | percentage markup more
than twice in one calendar year.
| 10 | | (e) If a motor vehicle franchiser supplies a part or parts | 11 | | for use in a
repair rendered under a warranty other than by | 12 | | sale of that part or parts to
the motor vehicle franchisee, the | 13 | | motor vehicle franchisee shall be entitled to
compensation | 14 | | equivalent to the motor vehicle franchisee's average | 15 | | percentage
markup on the part or parts, as if the part or parts | 16 | | had been sold to the motor
vehicle franchisee by the motor | 17 | | vehicle franchiser. The requirements of this
subsection (e) | 18 | | shall not apply to entire engine assemblies , propulsion engine | 19 | | assemblies, and entire
transmission
assemblies. In the case of | 20 | | those assemblies, the motor vehicle franchiser shall reimburse | 21 | | the motor vehicle franchisee in the amount of 30% of what the | 22 | | motor vehicle franchisee would have paid the motor vehicle | 23 | | franchiser for the assembly if the assembly had not been | 24 | | supplied by the franchiser other than by the sale of that | 25 | | assembly to the motor vehicle franchisee.
| 26 | | (f) The obligations imposed on motor vehicle franchisers |
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| 1 | | by this Section
shall apply to any parent, subsidiary, | 2 | | affiliate, or agent of the motor vehicle
franchiser, any | 3 | | person under common ownership or control, any employee of the
| 4 | | motor vehicle franchiser, and any person holding 1% or more of | 5 | | the shares of
any class of securities or other ownership | 6 | | interest in the motor vehicle
franchiser, if a warranty or | 7 | | service or repair plan is issued by that person
instead of or | 8 | | in addition to one issued by the motor vehicle franchiser.
| 9 | | (g) (Blank).
| 10 | | (Source: P.A. 102-232, eff. 1-1-22.)
| 11 | | Section 995. No acceleration or delay. Where this Act | 12 | | makes changes in a statute that is represented in this Act by | 13 | | text that is not yet or no longer in effect (for example, a | 14 | | Section represented by multiple versions), the use of that | 15 | | text does not accelerate or delay the taking effect of (i) the | 16 | | changes made by this Act or (ii) provisions derived from any | 17 | | other Public Act.
| 18 | | Section 999. Effective date. This Act takes effect upon | 19 | | becoming law.".
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