Full Text of HB5545 103rd General Assembly
HB5545ham001 103RD GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 5/15/2024 | | 10300HB5545ham001 | | LRB103 38926 HLH 73484 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 5545
| 2 | | AMENDMENT NO. ______. Amend House Bill 5545 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 3. The Department of Commerce and Economic | 5 | | Opportunity Law of the Civil Administrative Code of Illinois | 6 | | is amended by adding Section 605-1115 as follows: | 7 | | (20 ILCS 605/605-1115 new) | 8 | | Sec. 605-1115. Megaproject building materials exemption. | 9 | | (a) The Department may certify a taxpayer for an exemption | 10 | | from any State or local use tax or retailers' occupation tax on | 11 | | building materials that will be incorporated into real estate | 12 | | at a megaproject site. The taxpayer must meet all of the | 13 | | criteria for certification set forth in Division 22 of Article | 14 | | 10 of the Property Tax Code. This certification is in addition | 15 | | to and does not replace or amend the megaproject certificate | 16 | | under Division 22 of Article 10 of the Property Tax Code. The |
| | | 10300HB5545ham001 | - 2 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Department shall not issue exemptions under this Section after | 2 | | December 31, 2030. | 3 | | (b) The Department shall determine the period during which | 4 | | the exemption from State and local use taxes and retailers' | 5 | | occupation taxes is in effect, but in no event shall the | 6 | | initial period exceed 10 years. The certificate may be renewed | 7 | | for a period not to exceed 5 years. Upon certification by the | 8 | | Department under this Section, the Department shall notify the | 9 | | Department of Revenue of the certification. The exemption | 10 | | status shall take effect within 3 months after certification | 11 | | of the taxpayer and notice to the Department of Revenue by the | 12 | | Department. | 13 | | (c) If the Department determines, in accordance with the | 14 | | Administrative Review Law and the Illinois Administrative | 15 | | Procedure Act, that the taxpayer is not in compliance with | 16 | | Division 22 of Article 10 of the Property Tax Code, the | 17 | | Department shall revoke the certification under this Section | 18 | | by written notice to the taxpayer. The Department shall | 19 | | transmit a copy of the revocation to the Department of | 20 | | Revenue. If the taxpayer's certification is revoked, the | 21 | | taxpayer must repay any exempted amount of State or local use | 22 | | tax or retailers' occupation tax. | 23 | | (d) The Department may adopt rules as are reasonable and | 24 | | necessary to implement the provisions of this Section. | 25 | | Section 5. The Use Tax Act is amended by changing Section |
| | | 10300HB5545ham001 | - 3 - | LRB103 38926 HLH 73484 a |
|
| 1 | | 12 as follows: | 2 | | (35 ILCS 105/12) (from Ch. 120, par. 439.12) | 3 | | Sec. 12. Applicability of Retailers' Occupation Tax Act | 4 | | and Uniform Penalty and Interest Act. All of the provisions of | 5 | | Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, | 6 | | 2-28, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation | 7 | | provisions shall run from the date when the tax is due rather | 8 | | than from the date when gross receipts are received), 5 | 9 | | (except that the time limitation provisions on the issuance of | 10 | | notices of tax liability shall run from the date when the tax | 11 | | is due rather than from the date when gross receipts are | 12 | | received and except that in the case of a failure to file a | 13 | | return required by this Act, no notice of tax liability shall | 14 | | be issued on and after each July 1 and January 1 covering tax | 15 | | due with that return during any month or period more than 6 | 16 | | years before that July 1 or January 1, respectively), 5a, 5b, | 17 | | 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and | 18 | | 12 of the Retailers' Occupation Tax Act and Section 3-7 of the | 19 | | Uniform Penalty and Interest Act, which are not inconsistent | 20 | | with this Act, shall apply, as far as practicable, to the | 21 | | subject matter of this Act to the same extent as if such | 22 | | provisions were included herein. | 23 | | (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.) | 24 | | Section 10. The Service Use Tax Act is amended by changing |
| | | 10300HB5545ham001 | - 4 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Section 12 as follows: | 2 | | (35 ILCS 110/12) (from Ch. 120, par. 439.42) | 3 | | Sec. 12. Applicability of Retailers' Occupation Tax Act | 4 | | and Uniform Penalty and Interest Act. All of the provisions of | 5 | | Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, | 6 | | 2-28, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the | 7 | | Department of the money collected under this Act), 4 (except | 8 | | that the time limitation provisions shall run from the date | 9 | | when gross receipts are received), 5 (except that the time | 10 | | limitation provisions on the issuance of notices of tax | 11 | | liability shall run from the date when the tax is due rather | 12 | | than from the date when gross receipts are received and except | 13 | | that in the case of a failure to file a return required by this | 14 | | Act, no notice of tax liability shall be issued on and after | 15 | | July 1 and January 1 covering tax due with that return during | 16 | | any month or period more than 6 years before that July 1 or | 17 | | January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, | 18 | | 5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers' | 19 | | Occupation Tax Act which are not inconsistent with this Act, | 20 | | and Section 3-7 of the Uniform Penalty and Interest Act, shall | 21 | | apply, as far as practicable, to the subject matter of this Act | 22 | | to the same extent as if such provisions were included herein. | 23 | | (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.) | 24 | | Section 15. The Service Occupation Tax Act is amended by |
| | | 10300HB5545ham001 | - 5 - | LRB103 38926 HLH 73484 a |
|
| 1 | | changing Section 12 as follows: | 2 | | (35 ILCS 115/12) (from Ch. 120, par. 439.112) | 3 | | Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i, | 4 | | 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-28, 2-54, 2a, 2b, 2c, 3 | 5 | | (except as to the disposition by the Department of the tax | 6 | | collected under this Act), 4 (except that the time limitation | 7 | | provisions shall run from the date when the tax is due rather | 8 | | than from the date when gross receipts are received), 5 | 9 | | (except that the time limitation provisions on the issuance of | 10 | | notices of tax liability shall run from the date when the tax | 11 | | is due rather than from the date when gross receipts are | 12 | | received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d, | 13 | | 7, 8, 9, 10, 11 , and 12 of the " Retailers' Occupation Tax Act " | 14 | | which are not inconsistent with this Act, and Section 3-7 of | 15 | | the Uniform Penalty and Interest Act shall apply, as far as | 16 | | practicable, to the subject matter of this Act to the same | 17 | | extent as if such provisions were included herein. | 18 | | (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23; | 19 | | revised 9-26-23.) | 20 | | Section 20. The Retailers' Occupation Tax Act is amended | 21 | | by adding Section 2-28 as follows: | 22 | | (35 ILCS 120/2-28 new) | 23 | | Sec. 2-28. Megaproject building materials exemption. |
| | | 10300HB5545ham001 | - 6 - | LRB103 38926 HLH 73484 a |
|
| 1 | | (a) Each retailer that makes a qualified sale of building | 2 | | materials to be incorporated into real estate at a megaproject | 3 | | site certified by the Department of Commerce and Economic | 4 | | Opportunity under Section 605-1115 of the Department of | 5 | | Commerce and Economic Opportunity Law of the Civil | 6 | | Administrative Code of Illinois may deduct receipts from such | 7 | | sales when calculating the tax imposed by this Act. | 8 | | Megaproject Building Materials Exemption Certificates shall be | 9 | | issued for an initial period not to exceed 10 years and can be | 10 | | renewed for a period not to exceed 5 years. | 11 | | (b) No retailer who is eligible for the deduction or | 12 | | credit for a given sale under Section 5k of this Act related to | 13 | | enterprise zones, Section 5l of this Act related to High | 14 | | Impact Businesses, Section 5m of this Act related to REV | 15 | | Illinois projects, or Section 5n of this Act related to MICRO | 16 | | facilities shall be eligible for the deduction or credit | 17 | | authorized under this Section for that same sale. | 18 | | (c) A construction contractor or other entity shall not | 19 | | make tax-free purchases unless it has an active Exemption | 20 | | Certificate issued by the Department at the time of the | 21 | | purchase. | 22 | | (d) The megaproject administrator shall submit a request | 23 | | to the Department for an initial certification or renewal of | 24 | | the Megaproject Building Materials Exemption Certificate. Upon | 25 | | request from the megaproject administrator, the Department | 26 | | shall issue a Megaproject Building Materials Exemption |
| | | 10300HB5545ham001 | - 7 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Certificate for each construction contractor or other entity | 2 | | identified by the megaproject administrator. The Department | 3 | | shall make the Megaproject Building Materials Exemption | 4 | | Certificates available to each construction contractor or | 5 | | other entity identified by the megaproject administrator and | 6 | | to the megaproject administrator. The request for Megaproject | 7 | | Building Materials Exemption Certificates under this Section | 8 | | must include the following information: | 9 | | (1) the name and address of the construction | 10 | | contractor or other entity; | 11 | | (2) the name and location or address of the building | 12 | | project site; | 13 | | (3) the estimated amount of the exemption for each | 14 | | construction contractor or other entity for which a | 15 | | request for a Megaproject Building Materials Exemption | 16 | | Certificate is made, based on a stated estimated average | 17 | | tax rate and the percentage of the contract that consists | 18 | | of materials; | 19 | | (4) the period of time during which supplies for the | 20 | | project are expected to be purchased; and | 21 | | (5) other reasonable information as the Department may | 22 | | require, including, but not limited to, FEIN numbers, to | 23 | | determine if the contractor or other entity, or any | 24 | | partner, corporate officer, or, in the case of a limited | 25 | | liability company, any manager or member of the | 26 | | construction contractor or other entity is or has been the |
| | | 10300HB5545ham001 | - 8 - | LRB103 38926 HLH 73484 a |
|
| 1 | | owner, partner, corporate officer, or, in the case of a | 2 | | limited liability company, manager or member of a person | 3 | | that is in default for moneys due to the Department under | 4 | | this Act or any other tax or fee Act administered by the | 5 | | Department. | 6 | | The Department, in its discretion, may require that the | 7 | | request for a Megaproject Building Materials Exemption | 8 | | Certificate be submitted electronically. The Department may, | 9 | | in its discretion, issue Exemption Certificates | 10 | | electronically. | 11 | | (e) To document the exemption allowed under this Section, | 12 | | the retailer must obtain from the purchaser the certification | 13 | | required under this Section, which must contain the | 14 | | Megaproject Building Materials Exemption Certificate number | 15 | | issued to the purchaser by the Department. In addition, the | 16 | | retailer must obtain certification from the purchaser that | 17 | | contains: | 18 | | (1) a statement that the building materials are being | 19 | | purchased for incorporation into real estate located in a | 20 | | megaproject site; | 21 | | (2) the location or address of the real estate into | 22 | | which the building materials will be incorporated; | 23 | | (3) the name of the megaproject in which that real | 24 | | estate is located; | 25 | | (4) a description of the building materials being | 26 | | purchased; |
| | | 10300HB5545ham001 | - 9 - | LRB103 38926 HLH 73484 a |
|
| 1 | | (5) the purchaser's Megaproject Building Materials | 2 | | Exemption Certificate number issued by the Department; and | 3 | | (6) the purchaser's signature and date of purchase. | 4 | | (f) The Department shall issue the Megaproject Building | 5 | | Materials Exemption Certificates within 3 business days after | 6 | | receipt of the request from the megaproject administrator. | 7 | | This requirement does not apply if the Department, for | 8 | | reasonable cause, is unable to issue the Exemption Certificate | 9 | | within 3 business days. The Department may refuse to issue a | 10 | | Megaproject Building Materials Exemption Certificate if the | 11 | | owner, any partner, or a corporate officer, and in the case of | 12 | | a limited liability company, any manager or member, of the | 13 | | construction contractor or other entity is or has been the | 14 | | owner, a partner, a corporate officer, and in the case of a | 15 | | limited liability company, a manager or member, of a person | 16 | | that is in default for moneys due to the Department under this | 17 | | Act or any other tax or fee Act administered by the Department. | 18 | | (g) The Megaproject Building Materials Exemption | 19 | | Certificate shall contain: | 20 | | (1) a unique identifying number that shall be designed | 21 | | in such a way that the Department can identify from the | 22 | | unique number on the Exemption Certificate issued to a | 23 | | given construction contractor or other entity, the name of | 24 | | the megaproject site and the construction contractor or | 25 | | other entity to whom the Exemption Certificate is issued; | 26 | | (2) the name of the construction contractor or entity |
| | | 10300HB5545ham001 | - 10 - | LRB103 38926 HLH 73484 a |
|
| 1 | | to whom the Exemption Certificate is issued; | 2 | | (3) issuance date, effective date, and expiration | 3 | | date; and | 4 | | (4) language stating that, if the construction | 5 | | contractor or other entity who is issued the Exemption | 6 | | Certificate makes a tax-exempt purchase, as described in | 7 | | this Section, that is not eligible for exemption under | 8 | | this Section or allows another person to make a tax-exempt | 9 | | purchase, as described in this Section, that is not | 10 | | eligible for exemption under this Section, then, in | 11 | | addition to any tax or other penalty imposed, the | 12 | | construction contractor or other entity is subject to a | 13 | | penalty equal to the tax that would have been paid by the | 14 | | retailer under this Act as well as any applicable local | 15 | | retailers' occupation tax on the purchase that is not | 16 | | eligible for the exemption. | 17 | | (h) After the Department issues Exemption Certificates for | 18 | | a given megaproject, the megaproject administrator may notify | 19 | | the Department of additional construction contractors or other | 20 | | entities that are eligible for a Megaproject Building | 21 | | Materials Exemption Certificate. Upon receiving such a | 22 | | notification and subject to the other provisions of this | 23 | | Section, the Department shall issue a Megaproject Building | 24 | | Materials Exemption Certificate to each additional | 25 | | construction contractor or other entity so identified. | 26 | | (i) A megaproject administrator may ask the Department to |
| | | 10300HB5545ham001 | - 11 - | LRB103 38926 HLH 73484 a |
|
| 1 | | rescind a Megaproject Building Materials Exemption Certificate | 2 | | previously issued by the Department to a construction | 3 | | contractor or other entity working at that certified | 4 | | megaproject site if that Megaproject Building Materials | 5 | | Exemption Certificate has not yet expired. Upon receiving such | 6 | | a request and subject to the other provisions of this Section, | 7 | | the Department shall issue the rescission of the Megaproject | 8 | | Building Materials Exemption Certificate to the construction | 9 | | contractor or other entity identified by the megaproject | 10 | | administrator and provide a copy of the rescission to the | 11 | | construction contractor or other entity and to the megaproject | 12 | | administrator. | 13 | | (j) If the Department of Revenue determines that a | 14 | | construction contractor or other entity that was issued an | 15 | | Exemption Certificate under this Section made a tax-exempt | 16 | | purchase, as described in this Section, that was not eligible | 17 | | for exemption under this Section or allowed another person to | 18 | | make a tax-exempt purchase, as described in this Section, that | 19 | | was not eligible for exemption under this Section, then, in | 20 | | addition to any tax or other penalty imposed, the construction | 21 | | contractor or other entity is subject to a penalty equal to the | 22 | | tax that would have been paid by the retailer under this Act as | 23 | | well as any applicable local retailers' occupation tax on the | 24 | | purchase that was not eligible for the exemption. | 25 | | (k) Each contractor or other entity that has been issued a | 26 | | Megaproject Building Materials Exemption Certificate under |
| | | 10300HB5545ham001 | - 12 - | LRB103 38926 HLH 73484 a |
|
| 1 | | this Section shall annually report to the Department the total | 2 | | value of the Megaproject building materials exemption from | 3 | | State taxes. Reports shall contain information reasonably | 4 | | required by the Department to enable it to verify and | 5 | | calculate the total tax benefits for taxes imposed by the | 6 | | State and shall be broken down by megaproject site. Reports | 7 | | are due no later than May 31 of each year and shall cover the | 8 | | previous calendar year. Failure to report data may result in | 9 | | revocation of the Megaproject Building Materials Exemption | 10 | | Certificate issued to the contractor or other entity. The | 11 | | Department is authorized to adopt rules governing revocation | 12 | | determinations, including the length of revocation. Factors to | 13 | | be considered in revocations shall include, but are not | 14 | | limited to, prior compliance with the reporting requirements, | 15 | | cooperation in discontinuing and correcting violations, and | 16 | | whether the certificate was used unlawfully during the | 17 | | preceding year. The Department, in its discretion, may require | 18 | | that the reports filed under this Section be submitted | 19 | | electronically. | 20 | | (l) The Department shall have the authority to adopt rules | 21 | | as are reasonable and necessary to implement the provisions of | 22 | | this Section. | 23 | | (m) This Section is exempt from the provisions of Section | 24 | | 2-70. | 25 | | (n) This exemption applies to the Use Tax Act, the Service | 26 | | Use Tax Act, and the Service Occupation Tax Act and is |
| | | 10300HB5545ham001 | - 13 - | LRB103 38926 HLH 73484 a |
|
| 1 | | incorporated by reference in Section 12 of each of those | 2 | | respective Acts. | 3 | | (o) As used in this Section: | 4 | | "Qualified sale" means a sale of building materials that | 5 | | will be incorporated into real estate as part of a building | 6 | | project for which a Megaproject Building Materials Exemption | 7 | | Certificate has been issued to the purchaser by the | 8 | | Department. | 9 | | Section 25. The Property Tax Code is amended by adding | 10 | | Division 22 to Article 10 and changing as follows: | | | | 11 | | (35 ILCS 200/Art. 10 Div. 22 heading new) | 12 | | Division 22. Megaprojects | 13 | | (35 ILCS 200/10-910 new) | 14 | | Sec. 10-910. Megaproject Assessment Freeze and Payment | 15 | | Law; definitions. This Division 22 may be cited as the | 16 | | Megaproject Assessment Freeze and Payment Law. | 17 | | As used in this Division: | 18 | | "Assessment officer" means the chief county assessment | 19 | | officer of the county in which the megaproject is located. | 20 | | "Assessment period" means the period beginning on the | 21 | | first day of the calendar year after the calendar year in which | 22 | | a megaproject is placed in service and ending on the date when | 23 | | the megaproject no longer qualifies as a megaproject under |
| | | 10300HB5545ham001 | - 14 - | LRB103 38926 HLH 73484 a |
|
| 1 | | this Division. | 2 | | "Base tax year" means the tax year prior to the first | 3 | | calendar year during which the Department issues a megaproject | 4 | | certificate under this Division. | 5 | | "Base year" means: | 6 | | (1) the calendar year prior to the calendar year in | 7 | | which the Department issues the megaproject certificate, | 8 | | if the Department issues a megaproject certificate for a | 9 | | project located on the property without granting | 10 | | preliminary approval for the project pursuant to Section | 11 | | 10-940; or | 12 | | (2) the calendar year prior to the calendar year in | 13 | | which the Department grants that preliminary approval, if | 14 | | the Department grants preliminary approval pursuant to | 15 | | Section 10-940 for a megaproject located on the property. | 16 | | "Base year valuation" means the assessed value, in the | 17 | | base year, of the property comprising the megaproject. | 18 | | "Company" means one or more entities whose aggregate | 19 | | investment in the megaproject meets the minimum investment | 20 | | required under this Division. The term "company" includes a | 21 | | company affiliate unless the context clearly indicates | 22 | | otherwise. | 23 | | "Company affiliate" means an entity that joins with or is | 24 | | an affiliate of a company and that participates in the | 25 | | investment in, or financing of, a megaproject. | 26 | | "Consumer Price Index" means the index published by the |
| | | 10300HB5545ham001 | - 15 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Bureau of Labor Statistics of the United States Department of | 2 | | Labor that measures the average change in prices of goods and | 3 | | services purchased by all urban consumers, United States city | 4 | | average, all items, 1982-84 = 100. | 5 | | "Department" means the Department of Commerce and Economic | 6 | | Opportunity. | 7 | | "Eligible costs" means all costs incurred by or on behalf | 8 | | of, or allocated to, a company, prior to the Department's | 9 | | issuance of the megaproject certificate or during the | 10 | | investment period, to create or construct a megaproject. | 11 | | "Eligible costs" includes, without limitation: | 12 | | (1) the purchase, site preparation, renovation, | 13 | | rehabilitation, and construction of land, buildings, | 14 | | structures, equipment, and furnishings used for or in the | 15 | | megaproject; | 16 | | (2) any goods or services for the megaproject that are | 17 | | purchased and capitalized under generally accepted | 18 | | accounting principles, including any organizational costs | 19 | | and research and development costs incurred in Illinois; | 20 | | (3) capitalized lease costs for land, buildings, | 21 | | structures, and equipment valued at their present value | 22 | | using the interest rate at which the company borrows funds | 23 | | prevailing at the time the company entered into the lease; | 24 | | (4) infrastructure development costs; | 25 | | (5) debt service and project financing costs; | 26 | | (6) noncapitalized research and development costs; |
| | | 10300HB5545ham001 | - 16 - | LRB103 38926 HLH 73484 a |
|
| 1 | | (7) job training and education costs; | 2 | | (8) lease and relocation costs; and | 3 | | (9) amounts expended by a company or company affiliate | 4 | | as a nonresponsible party pursuant to a voluntary program | 5 | | of site remediation, including amounts expended to obtain | 6 | | a No Further Remediation Letter from the Illinois | 7 | | Environmental Protection Agency. | 8 | | "Entity" means a sole proprietor, partnership, firm, | 9 | | corporation, limited liability company, association, or other | 10 | | business enterprise. | 11 | | "Full-time employee" means an individual who is employed | 12 | | for consideration for at least 35 hours each week or who | 13 | | renders any other standard of service generally accepted by | 14 | | industry custom or practice as a full-time employee. An | 15 | | individual for whom a W-2 is issued by a professional employer | 16 | | organization is a full-time employee if he or she is employed | 17 | | in the service of the applicant for at least 35 hours each week | 18 | | or renders any other standard of service generally accepted by | 19 | | industry custom or practice as a full-time employment. An | 20 | | owner, operator, or tenant who employs labor or services at a | 21 | | specific site or facility under contract with another may | 22 | | declare one full-time job for every 1,820 man-hours worked per | 23 | | year under the contract. Vacations, paid holidays, and sick | 24 | | time are included in this computation, but overtime is not | 25 | | considered a part of regular hours. | 26 | | "High Impact Business" means a project that has been |
| | | 10300HB5545ham001 | - 17 - | LRB103 38926 HLH 73484 a |
|
| 1 | | designated by the Department as a High Impact Business under | 2 | | Section 5.5 of the Illinois Enterprise Zone Act. | 3 | | "Incentive agreement" means an agreement between a | 4 | | company, a local municipality, and the taxing districts | 5 | | obligating the company to make the special payment under this | 6 | | Division, in addition to paying property taxes, during the | 7 | | incentive period for a megaproject. | 8 | | "Incentive period" means the period beginning on the first | 9 | | day of the calendar year after the calendar year in which the | 10 | | megaproject is placed in service and each calendar year | 11 | | thereafter until the earlier of (i) the expiration or | 12 | | termination of the incentive agreement or (ii) the revocation | 13 | | of the megaproject certificate. | 14 | | "Inducement resolution" means a resolution adopted by the | 15 | | local municipality setting forth the commitment of the local | 16 | | municipality to enter into an incentive agreement. | 17 | | "Investment period" means the period ending 7 years after | 18 | | the date on which the Department issues the megaproject | 19 | | certificate, or such other longer period of time as the local | 20 | | municipality, the taxing districts, and the company may agree | 21 | | to, not to exceed an initial period of 10 years. | 22 | | "Local municipality" means the city, village, or | 23 | | incorporated town in which the megaproject is located or, if | 24 | | the megaproject is located in an unincorporated area, the | 25 | | county in which the megaproject is located. | 26 | | "Megaproject" means the project set forth in the company's |
| | | 10300HB5545ham001 | - 18 - | LRB103 38926 HLH 73484 a |
|
| 1 | | tax credit agreement or high impact business designation. | 2 | | "Megaproject certificate" means a certificate issued by | 3 | | the Department that authorizes an assessment freeze as | 4 | | provided in this Division. | 5 | | "Minimum investment" means an investment in the | 6 | | megaproject of at least $100,000,000 in eligible costs within | 7 | | the investment period. | 8 | | "Minority person" means a person who is a citizen or | 9 | | lawful permanent resident of the United States and who is any | 10 | | of the following: | 11 | | (1) American Indian or Alaska Native (a person having | 12 | | origins in any of the original peoples of North and South | 13 | | America, including Central America, and who maintains | 14 | | tribal affiliation or community attachment). | 15 | | (2) Asian (a person having origins in any of the | 16 | | original peoples of the Far East, Southeast Asia, or the | 17 | | Indian subcontinent, including, but not limited to, | 18 | | Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, | 19 | | the Philippine Islands, Thailand, and Vietnam). | 20 | | (3) Black or African American (a person having origins | 21 | | in any of the black racial groups of Africa). | 22 | | (4) Hispanic or Latino (a person of Cuban, Mexican, | 23 | | Puerto Rican, South or Central American, or other Spanish | 24 | | culture or origin, regardless of race). | 25 | | (5) Native Hawaiian or Other Pacific Islander (a | 26 | | person having origins in any of the original peoples of |
| | | 10300HB5545ham001 | - 19 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Hawaii, Guam, Samoa, or other Pacific Islands). | 2 | | "Minority-owned business" means a business that is at | 3 | | least 51% owned by one or more minority persons, or that, in | 4 | | the case of a corporation, has at least 51% of its stock owned | 5 | | by one or more minority persons, and that, in either case, is | 6 | | managed and operated on a daily basis by one or more of the | 7 | | minority individuals who own the business. | 8 | | "New full-time employee" means a full-time employee who | 9 | | first became employed by the owner, operator, contractor, or | 10 | | tenant of the megaproject during the incentive period or | 11 | | investment period and whose hiring results in a net increase | 12 | | in the owner, operator, contractor, or tenant's total number | 13 | | of full-time Illinois employees. | 14 | | "New full-time employee" does not include: | 15 | | (1) a person who was previously employed in Illinois | 16 | | by the applicant or a related family member prior to the | 17 | | onset of the investment or incentive period; or | 18 | | (2) an individual who has a direct or indirect | 19 | | ownership interest of at least 5% in the profits, capital, | 20 | | or value of the applicant. | 21 | | "Placed in service" means that the company has commenced | 22 | | its business operations at the megaproject site and has met | 23 | | its job creation requirements under this Section by hiring or | 24 | | causing to be hired at least 100 new full-time employees who | 25 | | provide support to the megaproject's business operations and | 26 | | work in the State of Illinois. If a company pauses or shuts |
| | | 10300HB5545ham001 | - 20 - | LRB103 38926 HLH 73484 a |
|
| 1 | | down its business operations for a period of more than 30 days, | 2 | | then the megaproject shall no longer be considered placed in | 3 | | service. | 4 | | "Project" means land, buildings, and other improvements on | 5 | | the land, including water facilities, sewage treatment and | 6 | | disposal facilities, and all other machinery, apparatuses, | 7 | | equipment, office facilities, related infrastructure, and | 8 | | furnishings that are considered necessary, suitable, or useful | 9 | | by a company and comprise the megaproject, including all such | 10 | | property subject to assessment under the Property Tax Code. | 11 | | "Special payment" means the annual amount paid in addition | 12 | | to property taxes paid during the incentive period as provided | 13 | | in the incentive agreement. | 14 | | "Sports stadium" means a facility, stadium, arena, or | 15 | | other structure where athletic contests are held and sports | 16 | | teams practice and perform. | 17 | | "Tax credit agreement" means an agreement entered into by | 18 | | the company and the Department under the Economic Development | 19 | | for Growing Economy Tax Credit Act, the Reimagining Energy and | 20 | | Vehicles in Illinois Act, or the Manufacturing Illinois Chips | 21 | | for Real Opportunity (MICRO) Act. | 22 | | "Taxing district" has the meaning given to that term in | 23 | | Section 1-150. | 24 | | "Termination date" means the last day of a calendar year | 25 | | that is no later than the 23rd year following the first | 26 | | calendar year in which a megaproject is placed in service. A |
| | | 10300HB5545ham001 | - 21 - | LRB103 38926 HLH 73484 a |
|
| 1 | | company may apply to the local municipality and taxing | 2 | | districts prior to the termination date for an extension of | 3 | | the termination date beyond the 23rd year for up to 17 | 4 | | additional years, for a total of 40 years. The corporate | 5 | | authorities of the local municipality and the taxing districts | 6 | | shall approve an extension by resolution upon a finding of | 7 | | substantial public benefit. A copy of the resolution must be | 8 | | delivered to the Department within 30 days of the date the | 9 | | resolution was adopted. If the incentive agreement is | 10 | | terminated under Section 10-937, then the termination date is | 11 | | the date the agreement is terminated. | 12 | | (35 ILCS 200/10-915 new) | 13 | | Sec. 10-915. Valuation during incentive period; | 14 | | eligibility. | 15 | | (a) Property that receives a megaproject certificate from | 16 | | the Department is eligible for an assessment freeze, as | 17 | | provided in this Division, eliminating from consideration, for | 18 | | assessment purposes during the incentive period, the value | 19 | | added to the property by the project and limiting the total | 20 | | valuation of the property during the incentive period to the | 21 | | base year valuation. If the company does not anticipate | 22 | | completing the project within the investment period, then the | 23 | | local municipality and taxing districts may approve one or | 24 | | more extensions of time to complete the project. However, the | 25 | | local municipality and taxing districts may not extend the |
| | | 10300HB5545ham001 | - 22 - | LRB103 38926 HLH 73484 a |
|
| 1 | | project for a period that exceeds 5 years after the last day of | 2 | | the investment period. Unless approved as part of the original | 3 | | incentive agreement, the corporate authorities of the local | 4 | | municipality and taxing districts may approve an extension | 5 | | under this subsection by resolution, a copy of which must be | 6 | | delivered to the Department within 30 days after the date the | 7 | | resolution is adopted. | 8 | | (b) To qualify for a megaproject certificate, the company | 9 | | must: | 10 | | (1) make the minimum investment in the megaproject | 11 | | during the investment period; | 12 | | (2) enter into an incentive agreement with the local | 13 | | municipality and taxing districts as described in this | 14 | | Division; | 15 | | (3) enter into a project labor agreement with the | 16 | | applicable local building trades council prior to the | 17 | | commencement of any demolition, building construction, or | 18 | | building renovation related to the megaproject; | 19 | | (4) establish the goal of awarding 20% of the total | 20 | | dollar amount of contracts that are related to the | 21 | | megaproject and are awarded by the company during each | 22 | | calendar year to minority-owned businesses; | 23 | | (5) create at least 100 new full-time jobs as a result | 24 | | of the megaproject; and | 25 | | (6) have executed a tax credit agreement with the | 26 | | Department or received a high impact business designation |
| | | 10300HB5545ham001 | - 23 - | LRB103 38926 HLH 73484 a |
|
| 1 | | from the Department. | 2 | | (c) For purposes of this Division, if a single company | 3 | | enters into a financing arrangement of the type described in | 4 | | subsection (b) of Section 10-950, the investment in or | 5 | | financing of the property by a developer, lessor, financing | 6 | | entity, or other third party in accordance with this | 7 | | arrangement is considered investment by the company. | 8 | | Investment by a related person to the company is considered | 9 | | investment by the company. | 10 | | (35 ILCS 200/10-920 new) | 11 | | Sec. 10-920. Incentive agreement; assessment freeze for | 12 | | megaprojects; incentive period; inducement resolution; | 13 | | location of the project; criteria to qualify. | 14 | | (a) To obtain the benefits provided in this Division, the | 15 | | company shall apply in writing to the local municipality and | 16 | | taxing districts to enter into an incentive agreement with the | 17 | | municipality and taxing districts, in the form and manner | 18 | | required by the local municipality and taxing districts, | 19 | | respectively, and shall certify to the facts asserted in the | 20 | | application. | 21 | | (b) The corporate authorities of the local municipality, | 22 | | prior to entering into an incentive agreement under this | 23 | | Section, shall hold a public hearing to consider the | 24 | | application. The amount and terms of the proposed special | 25 | | payment and the duration of the incentive agreement shall be |
| | | 10300HB5545ham001 | - 24 - | LRB103 38926 HLH 73484 a |
|
| 1 | | considered at the public hearing. | 2 | | (c) Copies of the completed application shall be provided | 3 | | to each taxing district for which property taxes were assessed | 4 | | on the property for the immediately preceding tax year. Those | 5 | | copies shall be provided at least 30 days prior to the | 6 | | scheduled public hearing at which the corporate authorities of | 7 | | the local municipality will consider the application. | 8 | | (d) The company, the local municipality, and the taxing | 9 | | districts shall enter into an incentive agreement requiring | 10 | | the special payment described in Section 10-925. The corporate | 11 | | authorities of the local municipality shall adopt an ordinance | 12 | | approving the incentive agreement. | 13 | | (e) If an incentive agreement is not executed within 5 | 14 | | years after the local municipality's adoption of an inducement | 15 | | resolution, expenditures incurred by the company more than 5 | 16 | | years prior to the execution of the incentive agreement shall | 17 | | not qualify as part of the minimum investment. | 18 | | (f) To be eligible to enter into an incentive agreement | 19 | | under this Division, the company must commit to a project that | 20 | | meets the investment and new job creation requirements set | 21 | | forth in the company's tax credit agreement or high impact | 22 | | business designation. In no event shall the company be | 23 | | required to invest less than $100,000,000 or create fewer than | 24 | | 100 new full-time jobs. | 25 | | (35 ILCS 200/10-925 new) |
| | | 10300HB5545ham001 | - 25 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Sec. 10-925. Contents of incentive agreement. | 2 | | (a) The incentive agreement under Section 10-920 must | 3 | | require the company to pay, or be responsible for the payment | 4 | | of, an annual special payment to the local municipality and | 5 | | the taxing districts, beginning with the first tax year for | 6 | | which the assessment freeze under this Division is applied to | 7 | | the megaproject. The amount of the special payment shall be | 8 | | established by the local municipality and taxing districts in | 9 | | the incentive agreement and may be a fixed amount for the | 10 | | duration of the incentive period or may be subject to | 11 | | adjustment (downward or upward) based on factors memorialized | 12 | | in the incentive agreement. | 13 | | Unless the special payment is negotiated as a fixed | 14 | | payment for the duration of the incentive period, the parties | 15 | | shall conduct an impact analysis study on the megaproject | 16 | | every 5 years, and the special payment shall be adjusted based | 17 | | on the results of that study; provided, however, the | 18 | | adjustment shall not be less than the initial special payment | 19 | | adjusted for inflation as measured by the Consumer Price | 20 | | Index. | 21 | | The portion of the special payment due to the local school | 22 | | districts shall be increased annually by the lesser of (i) 5% | 23 | | or (ii) the percentage increase, if any, in the Consumer Price | 24 | | Index for the 12 months ending in September of the immediately | 25 | | preceding calendar year, and may be further increased or | 26 | | decreased every 5 years based on the results of the impact |
| | | 10300HB5545ham001 | - 26 - | LRB103 38926 HLH 73484 a |
|
| 1 | | analysis study. | 2 | | (b) The incentive agreement shall obligate the company to | 3 | | operate the megaproject at the designated project location for | 4 | | a minimum of 20 years. | 5 | | (c) The incentive agreement may contain such other terms | 6 | | and conditions as are mutually agreeable to the local | 7 | | municipality, the taxing districts, and the company and are | 8 | | consistent with the requirements of this Division, including, | 9 | | without limitation, operational and additional job creation | 10 | | requirements. | 11 | | (d) In addition, all incentive agreements entered into | 12 | | pursuant to Section 10-920 must include, as the first portion | 13 | | of the document, a recapitulation of the remaining contents of | 14 | | the document, which shall include the following: | 15 | | (1) the legal name of each party to the agreement; | 16 | | (2) the street address of the project and the property | 17 | | subject to the agreement; | 18 | | (3) the agreed minimum investment, which shall not be | 19 | | less than the investment amount required in the tax credit | 20 | | agreement or high impact business designation; | 21 | | (3.5) the agreed number of new jobs to be created, | 22 | | which shall not be less than the number of new jobs | 23 | | required in the tax credit agreement or high impact | 24 | | business designation; | 25 | | (4) the term of the agreement; | 26 | | (5) a schedule showing the amount of the special |
| | | 10300HB5545ham001 | - 27 - | LRB103 38926 HLH 73484 a |
|
| 1 | | payment and its calculation for each year of the | 2 | | agreement; | 3 | | (6) a schedule showing the amount to be distributed | 4 | | annually to each taxing district, as set forth in the | 5 | | incentive agreement; | 6 | | (7) any other feature or aspect of the agreement which | 7 | | may affect the calculation of items (5) and (6) of this | 8 | | subsection; and | 9 | | (8) the party or parties to the agreement who are | 10 | | responsible for updating the information contained in the | 11 | | summary document. | 12 | | (35 ILCS 200/10-927 new) | 13 | | Sec. 10-927. Minimum job creation requirements. | 14 | | (a) The company must hire the same number of new full-time | 15 | | employees as is required in the company's tax credit agreement | 16 | | or high impact business designation, which in no event shall | 17 | | be less than 100. These new full-time employees must be hired | 18 | | to support the business operations of the megaproject and be | 19 | | located within the State of Illinois. | 20 | | (b) A company may not satisfy the requirements of this | 21 | | Section by relocating jobs from one site in Illinois to | 22 | | another site in Illinois. | 23 | | (35 ILCS 200/10-930 new) | 24 | | Sec. 10-930. Installment bills; distribution of special |
| | | 10300HB5545ham001 | - 28 - | LRB103 38926 HLH 73484 a |
|
| 1 | | payments. | 2 | | (a) The local municipality shall prepare a bill for the | 3 | | company for each installment of the special payment according | 4 | | to the schedule set forth in paragraph (5) of subsection (d) of | 5 | | Section 10-925, or as modified pursuant to paragraph (7) of | 6 | | subsection (d) of Section 10-925, and the company shall make | 7 | | direct payments to the affected taxing entities according to | 8 | | the schedule in paragraph (6) of subsection (d) of Section | 9 | | 10-925 or as modified in paragraph (7) of subsection (d) of | 10 | | Section 10-925. | 11 | | (b) The company shall make direct payments of the special | 12 | | payment to the taxing districts associated with the | 13 | | megaproject within 30 days after receipt by the company of the | 14 | | bill prepared by the local municipality. | 15 | | (c) Misallocations of the special payments may be | 16 | | corrected by adjusting later distributions, but these | 17 | | adjustments must be made in the next succeeding year following | 18 | | identification and resolution of the misallocation. To the | 19 | | extent that distributions have been made improperly in | 20 | | previous years, claims for adjustment must be made within one | 21 | | year of the distribution. | 22 | | (35 ILCS 200/10-937 new) | 23 | | Sec. 10-937. Termination of incentive agreement; automatic | 24 | | termination; minimum level of investment and new job creation | 25 | | required to remain qualified for assessment freeze. |
| | | 10300HB5545ham001 | - 29 - | LRB103 38926 HLH 73484 a |
|
| 1 | | (a) The local municipality, the taxing districts, and the | 2 | | company may mutually agree to terminate the incentive | 3 | | agreement at any time. From the date of termination, the | 4 | | megaproject is subject to assessment on the basis of the | 5 | | then-current fair cash value. | 6 | | (b) An incentive agreement shall be terminated if the | 7 | | company fails to satisfy the minimum investment level or the | 8 | | job creation requirements provided in this Division. If the | 9 | | incentive agreement is terminated under this subsection, the | 10 | | megaproject is subject to assessment on the basis of the | 11 | | then-current fair cash value beginning in the tax year during | 12 | | which the termination occurs. | 13 | | (c) An incentive agreement shall terminate if, at any | 14 | | time, the company no longer has the minimum level of new job | 15 | | creation and investment as provided in this Division, without | 16 | | regard to depreciation. | 17 | | (35 ILCS 200/10-938 new) | 18 | | Sec. 10-938. Megaproject administration. The | 19 | | administration of a megaproject shall be under the | 20 | | jurisdiction of the local municipality that approved the | 21 | | incentive agreement by ordinance. Each local municipality that | 22 | | approves an incentive agreement by ordinance shall, by | 23 | | ordinance, designate a Megaproject Administrator for the | 24 | | megaproject within its jurisdiction. A Megaproject | 25 | | Administrator must be an officer or employee of the |
| | | 10300HB5545ham001 | - 30 - | LRB103 38926 HLH 73484 a |
|
| 1 | | municipality or county. The Megaproject Administrator shall be | 2 | | the liaison between the approving municipality or county, the | 3 | | Department, and the Department of Revenue. | 4 | | (35 ILCS 200/10-940 new) | 5 | | Sec. 10-940. Megaproject applications; certification as a | 6 | | megaproject and revocation of certification. | 7 | | (a) The Department shall receive applications for | 8 | | megaproject certificates under this Division. The Department | 9 | | shall promptly notify the assessment officer when the | 10 | | Department receives an application under this Section. The | 11 | | Department's rules shall provide that an applicant may request | 12 | | preliminary approval of the megaproject before the project | 13 | | begins, before the applicant has entered into a fully executed | 14 | | incentive agreement with the local municipality and taxing | 15 | | districts, or before the project has been placed in service. | 16 | | (b) An applicant for a megaproject certificate under this | 17 | | Division must provide evidence to the Department of a fully | 18 | | executed incentive agreement between the company, the local | 19 | | municipality, and the taxing districts as described in this | 20 | | Division. | 21 | | (c) An applicant for a megaproject certificate under this | 22 | | Division must provide evidence to the Department of a fully | 23 | | executed project labor agreement entered into with the | 24 | | applicable local building trades council prior to the | 25 | | commencement of any demolition, building construction, or |
| | | 10300HB5545ham001 | - 31 - | LRB103 38926 HLH 73484 a |
|
| 1 | | building renovation at the project. If the demolition, | 2 | | building construction, or building renovation begins after the | 3 | | application is approved, then the applicant must transmit a | 4 | | copy of the fully executed project labor agreement to the | 5 | | Department as soon as possible after the agreement is | 6 | | executed. | 7 | | (d) An applicant for a megaproject certificate under this | 8 | | Division must provide evidence to the Department that the | 9 | | company has established the goal of awarding 20% of the total | 10 | | dollar amount of contracts awarded during each calendar year | 11 | | by the company, that are related to the project, to | 12 | | minority-owned businesses. | 13 | | (e) The Department shall approve an application for a | 14 | | megaproject certificate if the Department finds that the | 15 | | project meets the requirements of this Division. | 16 | | (f) Upon approval of the application, the Department shall | 17 | | issue a megaproject certificate to the applicant and transmit | 18 | | a copy to the assessment officer and the Department of | 19 | | Revenue. The certificate shall identify the property on which | 20 | | the megaproject is located. | 21 | | (g) For each calendar year following issuance of the | 22 | | megaproject certificate, until the minimum investment and new | 23 | | job creation requirements have been met and the megaproject | 24 | | has been placed in service, the company shall deliver a report | 25 | | to the Department on the status of construction or creation of | 26 | | the megaproject and the amount of minimum investment made in |
| | | 10300HB5545ham001 | - 32 - | LRB103 38926 HLH 73484 a |
|
| 1 | | the megaproject during the preceding calendar year. If the | 2 | | Department determines, in accordance with the Administrative | 3 | | Review Law and the Illinois Administrative Procedure Act, that | 4 | | a project for which a certificate has been issued has not met | 5 | | the minimum investment and job creation requirements of this | 6 | | Division within the investment period, the Department shall | 7 | | revoke the certificate by written notice to the taxpayer of | 8 | | record and transmit a copy of the revocation to the assessment | 9 | | officer. | 10 | | (h) If the local municipality notifies the Department that | 11 | | the incentive agreement between the company, the local | 12 | | municipality, and the taxing districts has been terminated, | 13 | | the Department shall revoke the certificate by written notice | 14 | | to the taxpayer of record and transmit a copy of the revocation | 15 | | to the assessment officer. | 16 | | (35 ILCS 200/10-945 new) | 17 | | Sec. 10-945. Computation of valuation. | 18 | | (a) Upon receipt of the megaproject certificate from the | 19 | | Department, the assessment officer shall determine the base | 20 | | year valuation and shall make a notation on each statement of | 21 | | assessment during the assessment period that the valuation of | 22 | | the project is based upon the issuance of a megaproject | 23 | | certificate. | 24 | | (b) Upon revocation of a megaproject certificate, the | 25 | | assessment officer shall compute the assessed valuation of the |
| | | 10300HB5545ham001 | - 33 - | LRB103 38926 HLH 73484 a |
|
| 1 | | project on the basis of the then-current fair cash value of the | 2 | | property. | 3 | | (35 ILCS 200/10-950 new) | 4 | | Sec. 10-950. Transfers of interest in a megaproject; | 5 | | sale-leaseback arrangement; requirements. | 6 | | (a) Subject to the terms of the incentive agreement | 7 | | between the company, the local municipality, and the taxing | 8 | | district, ownership of or any interest in the megaproject and | 9 | | any and all related project property, including, without | 10 | | limitation, transfers of indirect beneficial interests and | 11 | | equity interests in a company owning a megaproject, shall not | 12 | | affect the assessment freeze or the validity of the | 13 | | megaproject certificate issued under this Division. | 14 | | Notwithstanding the provisions of this subsection, the | 15 | | incentive agreement shall be a covenant running with the land. | 16 | | (b) A company may enter into lending, financing, security, | 17 | | leasing, or similar arrangements, or a succession of such | 18 | | arrangements, with a financing entity concerning all or part | 19 | | of a project including, without limitation, a sale-leaseback | 20 | | arrangement, equipment lease, build-to-suit lease, synthetic | 21 | | lease, nordic lease, defeased tax benefit, or transfer lease, | 22 | | an assignment, sublease, or similar arrangement, or succession | 23 | | of those arrangements, with one or more financing entities | 24 | | concerning all or part of a project, regardless of the | 25 | | identity of the income tax or fee owner of the megaproject. |
| | | 10300HB5545ham001 | - 34 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Neither the original transfer to the financing entity nor the | 2 | | later transfer from the financing entity back to the company, | 3 | | pursuant to terms in the sale-leaseback agreement, shall | 4 | | affect the assessment freeze or the validity of the | 5 | | megaproject certificate issued under this Division, regardless | 6 | | of whether the income tax basis is changed for income tax | 7 | | purposes. | 8 | | (c) The Department must receive notice of all transfers | 9 | | undertaken with respect to other projects to effect a | 10 | | financing. Notice shall be made in writing within 60 days | 11 | | after the transfer, shall identify each transferee, and shall | 12 | | contain other information required by the Department with the | 13 | | appropriate returns. Failure to meet this notice requirement | 14 | | does not adversely affect the assessment freeze. | 15 | | (35 ILCS 200/10-955 new) | 16 | | Sec. 10-955. Minimum investment by company affiliates. To | 17 | | be eligible for the benefits of this Division, a company must | 18 | | invest the minimum investment. Investments by company | 19 | | affiliates during the investment period may be applied toward | 20 | | the minimum investment under this Division regardless of | 21 | | whether the company affiliate was part of the project. To | 22 | | qualify for the assessment freeze, the minimum investment must | 23 | | be made in connection with the megaproject. | 24 | | (35 ILCS 200/10-960 new) |
| | | 10300HB5545ham001 | - 35 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Sec. 10-960. Projects to be valued at fair cash value for | 2 | | purposes of bonded indebtedness and limitations on property | 3 | | tax extensions. Projects to which an assessment freeze applies | 4 | | pursuant to this Division shall be valued at their fair cash | 5 | | value for purposes of calculating a municipality's general | 6 | | obligation bond limits and a taxing district's limitation on | 7 | | tax extensions. | 8 | | (35 ILCS 200/10-965 new) | 9 | | Sec. 10-965. Abatements. Any taxing district, upon a | 10 | | majority vote of its governing authority, may, after the | 11 | | determination of the assessed valuation as set forth in this | 12 | | Division, order the clerk of the appropriate municipality or | 13 | | county to abate any portion of real property taxes otherwise | 14 | | levied or extended by the taxing district on a megaproject. | 15 | | (35 ILCS 200/10-970 new) | 16 | | Sec. 10-970. Filing of returns, contracts, and other | 17 | | information; due date of payments and returns. | 18 | | (a) The company and the local municipality shall file | 19 | | notices, reports, and other information as required by the | 20 | | Department. | 21 | | (b) Special payments are due at the same time as property | 22 | | tax payments and property tax returns are due for the | 23 | | megaproject property. | 24 | | (c) Failure to make a timely special payment results in |
| | | 10300HB5545ham001 | - 36 - | LRB103 38926 HLH 73484 a |
|
| 1 | | the assessment of penalties as if the payment were a | 2 | | delinquent property tax payment or return. | 3 | | (d) Within 30 days after the date of execution of an | 4 | | incentive agreement, a copy of the incentive agreement must be | 5 | | filed with the Department, the chief county assessment | 6 | | officer, and the county auditor for the county in which the | 7 | | megaproject is located. | 8 | | (35 ILCS 200/10-980 new) | 9 | | Sec. 10-980. Rules. The Department may issue rulings and | 10 | | adopt rules as necessary to carry out the purpose of this | 11 | | Division. | 12 | | (35 ILCS 200/10-985 new) | 13 | | Sec. 10-985. Prohibition on multiple credits, exemptions, | 14 | | and freezes. An applicant for a megaproject certificate who | 15 | | qualifies for an assessment freeze under this Section is not | 16 | | entitled to any other property tax credits, exemptions, or | 17 | | assessment freezes relating to the megaproject. | 18 | | (35 ILCS 200/10-987 new) | 19 | | Sec. 10-987. Building materials exemption for | 20 | | megaprojects. An applicant that is eligible for a megaproject | 21 | | certificate under this Division 22 of Article 10 is also | 22 | | eligible for the building materials exemption under Section | 23 | | 605-1115 of the Civil Administrative Code of Illinois. |
| | | 10300HB5545ham001 | - 37 - | LRB103 38926 HLH 73484 a |
|
| 1 | | (35 ILCS 200/10-990 new) | 2 | | Sec. 10-990. Sports stadiums. An applicant is not | 3 | | eligible for a megaproject assessment freeze under this | 4 | | Section for the construction or development of a sports | 5 | | stadium unless, prior to the approval of the megaproject by | 6 | | the Department, the General Assembly approves the megaproject | 7 | | by joint resolution. | 8 | | (35 ILCS 200/10-995 new) | 9 | | Sec. 10-995. Tax Increment Financing districts. A project | 10 | | that is located and operated in a Tax Increment Financing | 11 | | (TIF) district or TIF designated area is not eligible for a | 12 | | megaproject assessment freeze under this Section. The | 13 | | agreement shall provide that the megaproject certificate is | 14 | | void if an area on which the megaproject is located is | 15 | | designated as a TIF district or TIF designated area. | 16 | | (35 ILCS 200/10-1000 new) | 17 | | Sec. 10-1000. Invalidity. If all or any part of this | 18 | | Division is determined to be unconstitutional or otherwise | 19 | | unenforceable by a court of competent jurisdiction, a company | 20 | | has 180 days from the date of the determination to transfer the | 21 | | megaproject's title to an authorized economic development | 22 | | authority that qualifies for property tax assessment under | 23 | | this Division. |
| | | 10300HB5545ham001 | - 38 - | LRB103 38926 HLH 73484 a |
|
| 1 | | Section 97. Severability. The provisions of this Act are | 2 | | severable under Section 1.31 of the Statute on Statutes. | 3 | | Section 99. Effective date. This Act takes effect July 1, | 4 | | 2024.". |
|