Full Text of HB3685 99th General Assembly
HB3685 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3685 Introduced , by Rep. Litesa E. Wallace SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/224 new | | 35 ILCS 200/18-184.15 new | |
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Amends the Property Tax Code. Provides that a taxing district may grant an abatement for property that contains an expanded business facility. Defines "expanded business facility" to include a requirement that the business must create a certain number of new employment positions at the facility. Contains provisions allowing for an enhanced abatement for certain facilities. Amends the Illinois Income Tax Act to create a credit equal to a percentage of the remaining tax liability for the property. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by adding | 5 | | Section 224 as follows: | 6 | | (35 ILCS 5/224 new) | 7 | | Sec. 224. Expanded business facility credit. | 8 | | (a) Notwithstanding any other provision of law, for taxable | 9 | | years beginning on or after January 1, 2016, a taxpayer that | 10 | | receives an abatement under Section 18-184.15 of the Property | 11 | | Tax Code during the taxable year is entitled to a credit | 12 | | against the tax imposed by subsections (a) and (b) of Section | 13 | | 201 as provided in this Section. The amount of the credit shall | 14 | | be: | 15 | | (1) for the first and second taxable years after the | 16 | | business facility qualifies as an expanded business | 17 | | facility under Section 18-184.15 of the Property Tax Code, | 18 | | an amount equal to 28% of the remaining property tax | 19 | | liability for the property where the expanded business | 20 | | facility is located; | 21 | | (2) for the third and fourth taxable years after the | 22 | | business facility qualifies as an expanded business | 23 | | facility under Section 18-184.15 of the Property Tax Code, |
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| 1 | | an amount equal to 21% of the remaining property tax | 2 | | liability for the property where the expanded business | 3 | | facility is located; and | 4 | | (3) for the fifth and sixth taxable years after the | 5 | | business facility qualifies as an expanded business | 6 | | facility under Section 18-184.15 of the Property Tax Code, | 7 | | an amount equal to 14% of the remaining property tax | 8 | | liability for the property where the expanded business | 9 | | facility is located. | 10 | | (b) For partners, shareholders of Subchapter S | 11 | | corporations, and owners of limited liability companies, if the | 12 | | liability company is treated as a partnership for purposes of | 13 | | federal and State income taxation, the amount of the credit | 14 | | shall be determined in accordance with the determination of | 15 | | income and distributive share of income under Sections 702 and | 16 | | 704 and Subchapter S of the Internal Revenue Code. | 17 | | (c) In no event shall a credit under this Section reduce | 18 | | the taxpayer's liability to less than zero. If the amount of | 19 | | the credit exceeds the tax liability for the year, the excess | 20 | | may be carried forward and applied to the tax liability of the | 21 | | 5 taxable years following the excess credit year. The tax | 22 | | credit shall be applied to the earliest year for which there is | 23 | | a tax liability. If there are credits for more than one year | 24 | | that are available to offset a liability, the earlier credit | 25 | | shall be applied first. | 26 | | (d) This Section is exempt from the provisions of Section |
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| 1 | | 250. | 2 | | Section 10. The Property Tax Code is amended by adding | 3 | | Section 18-184.15 as follows: | 4 | | (35 ILCS 200/18-184.15 new) | 5 | | Sec. 18-184.15. Business facility abatement. | 6 | | (a) Each taxing district may, by a majority vote of its | 7 | | governing authority, order the county clerk to abate a portion | 8 | | of its taxes, as provided in subsection (b), on property that | 9 | | contains an expanded business facility. | 10 | | (b) The amount of the abatement shall be as follows: | 11 | | (1) for the first and second taxable years after the | 12 | | business facility qualifies as an expanded business | 13 | | facility, the amount of the abatement shall be 52% of its | 14 | | property tax liability for the applicable taxing district; | 15 | | (2) for the third and fourth taxable years after the | 16 | | business facility qualifies as an expanded business | 17 | | facility, the amount of the abatement shall be 39% of its | 18 | | property tax liability for the applicable taxing district; | 19 | | (3) for the fifth and sixth taxable years after the | 20 | | business facility qualifies as an expanded business | 21 | | facility, the amount of the abatement shall be 26% of its | 22 | | property tax liability for the applicable taxing district; | 23 | | and | 24 | | (4) no such abatement may be granted for the seventh |
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| 1 | | taxable year after the expanded business facility | 2 | | qualifies as an expanded business facility or thereafter. | 3 | | An expanded business facility is eligible for an enhanced | 4 | | abatement of 58.5% of its property tax liability for the | 5 | | applicable taxing district in the first 12 years after the | 6 | | expanded business facility qualifies as an expanded business | 7 | | facility if: | 8 | | (1) in counties with fewer than 3,000,000 inhabitants, | 9 | | the expanded business facility is at least 250,000 square | 10 | | feet and (i) the business retains at least 2,500 employees | 11 | | and creates at least 500 new positions at the business | 12 | | facility, and the salary for those new and retained | 13 | | positions is at least 150% of the minimum wage for the | 14 | | geographic area where the business facility is located or | 15 | | (ii) the business creates at least 1,250 new positions at | 16 | | the business facility, and the salary for those positions | 17 | | is at least 150% of the minimum wage for the geographic | 18 | | area where the business facility is located; and | 19 | | (2) in counties with 3,000,000 or more inhabitants, (i) | 20 | | the expanded business facility is at least 700,000 square | 21 | | feet; (ii) the business spends at least $150,000,000 to | 22 | | purchase, construct, or lease the facility; (iii) at least | 23 | | 1,100 individuals are employed at the facility, including | 24 | | at least 500 new positions; (iv) all of those individuals | 25 | | are eligible for employer-subsidized health care benefits | 26 | | and are paid at least 150% of the minimum wage for the |
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| 1 | | geographic area where the business facility is located. | 2 | | (c) For the purposes of this Section: | 3 | | "Expanded business facility" means a business facility of | 4 | | at least 5,000 square feet at which: | 5 | | (1) in a county with fewer than 100,000 inhabitants, at | 6 | | least 10 new positions are created and filled; and | 7 | | (2) in a county with 100,000 or more inhabitants, at | 8 | | least 25 new positions are created and filled. | 9 | | "Full-time" means that the individual is employed for | 10 | | consideration for at least 35 hours each week or renders any | 11 | | other standard of service generally accepted by industry custom | 12 | | or practice as full-time employment. | 13 | | "New position" means an employment position that is in | 14 | | addition to the employer's previous head count at the | 15 | | prospective expanded business facility in the taxable year | 16 | | prior to the taxable year for which the abatement is granted | 17 | | and is: | 18 | | (1) located in Illinois; | 19 | | (2) part of the expanded business facility; | 20 | | (3) permanent; | 21 | | (4) filled for at least one year; and | 22 | | (5) full-time of indefinite duration; provided that, | 23 | | in a county with at least 3,000,000 inhabitants, a contract | 24 | | position of definite duration lasting at least 12 months | 25 | | with an unlimited renewal option that otherwise meets the | 26 | | criteria set forth in items (1) through (4) may be |
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| 1 | | considered a "new position".
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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