Full Text of HB5342 97th General Assembly
HB5342eng 97TH GENERAL ASSEMBLY |
| | HB5342 Engrossed | | LRB097 20175 HLH 65584 b |
|
| 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 Corporate Accountability for Tax | 5 | | Expenditures Act is amended by changing Section 25 as follows:
| 6 | | (20 ILCS 715/25)
| 7 | | Sec. 25. Recapture.
| 8 | | (a) All development assistance agreements
shall contain, | 9 | | at a
minimum, the following recapture provisions:
| 10 | | (1) The recipient must (i) make the level of capital | 11 | | investment in the
economic
development project specified | 12 | | in the development assistance agreement; (ii)
create or
| 13 | | retain, or both, the requisite number of jobs, paying not | 14 | | less than specified
wages for the
created and retained | 15 | | jobs, within and for the duration of the time period
| 16 | | specified in the
legislation authorizing, or the | 17 | | administrative rules implementing, the
development
| 18 | | assistance programs and the development assistance | 19 | | agreement.
| 20 | | (2) If the recipient fails to create or retain the | 21 | | requisite number of
jobs within and
for the time period | 22 | | specified, in the legislation authorizing, or the
| 23 | | administrative rules
implementing, the development |
| | | HB5342 Engrossed | - 2 - | LRB097 20175 HLH 65584 b |
|
| 1 | | assistance programs and the development
assistance
| 2 | | agreement, the recipient shall be deemed to no longer | 3 | | qualify for the State
economic
assistance and the | 4 | | applicable recapture provisions shall take effect.
| 5 | | (3) If the recipient receives State economic | 6 | | assistance in the form of a
High
Impact Business | 7 | | designation pursuant to Section 5.5 of the Illinois | 8 | | Enterprise
Zone Act
and the business receives the benefit | 9 | | of the exemption authorized under Section
5l of the
| 10 | | Retailers' Occupation Tax Act (for the sale of building | 11 | | materials incorporated
into a High
Impact Business | 12 | | location) and the recipient fails to create or retain the
| 13 | | requisite number
of jobs, as determined by the legislation | 14 | | authorizing the development
assistance
programs
or the | 15 | | administrative rules implementing such legislation, or | 16 | | both, within the
requisite
period of time, the recipient | 17 | | shall be required to pay to the State the full
amount of | 18 | | the
State tax exemption that it received as a result of the | 19 | | High Impact Business
designation.
| 20 | | (4) If the recipient receives a grant or loan pursuant | 21 | | to the Large
Business
Development Program, the Business | 22 | | Development Public Infrastructure Program, or
the
| 23 | | Industrial Training Program and the recipient fails to | 24 | | create or retain the
requisite number
of jobs for the | 25 | | requisite time period, as provided in the legislation
| 26 | | authorizing the
development assistance programs or the |
| | | HB5342 Engrossed | - 3 - | LRB097 20175 HLH 65584 b |
|
| 1 | | administrative rules implementing such
legislation, or | 2 | | both, or in the development assistance agreement, the | 3 | | recipient
shall be
required to repay to the State a pro | 4 | | rata amount of the grant; that amount
shall
reflect
the | 5 | | percentage of the deficiency between the requisite number | 6 | | of jobs to be
created or
retained by the recipient and the | 7 | | actual number of such jobs in existence as of
the date the
| 8 | | Department determines the recipient is in breach of the job | 9 | | creation or
retention
covenants contained in the | 10 | | development assistance agreement. If the recipient
of
| 11 | | development assistance under the Large Business | 12 | | Development Program, the
Business
Development Public | 13 | | Infrastructure Program, or the Industrial Training Program
| 14 | | ceases
operations at the specific project site, during the | 15 | | 5-year period commencing on
the date of
assistance, the | 16 | | recipient shall be required to repay the entire amount of | 17 | | the
grant or to
accelerate repayment of the loan back to | 18 | | the State.
| 19 | | (5) If the recipient receives a tax credit under the | 20 | | Economic
Development for a
Growing Economy tax credit | 21 | | program, the development assistance agreement must
provide | 22 | | that (i) if the number of new or retained employees falls | 23 | | below the
requisite
number set forth in the development | 24 | | assistance agreement, the allowance of the
credit
shall be | 25 | | automatically suspended until the number of new and | 26 | | retained employees
equals
or exceeds the requisite number |
| | | HB5342 Engrossed | - 4 - | LRB097 20175 HLH 65584 b |
|
| 1 | | in the development assistance agreement; (ii)
if
the
| 2 | | recipient discontinues operations at the specific project | 3 | | site during the 5-year period after the beginning of the | 4 | | first tax year for which the Department issues a tax credit | 5 | | certificate, the recipient shall
forfeit all
credits taken | 6 | | by the recipient during such 5-year period; and (iii) in | 7 | | the
event
of a
revocation or suspension of the credit, the | 8 | | Department shall contact the
Director
of Revenue to | 9 | | initiate proceedings against the recipient to recover
| 10 | | wrongfully
exempted Illinois State income taxes and the | 11 | | recipient shall promptly repay to
the
Department of Revenue | 12 | | any wrongfully exempted Illinois State income taxes.
The | 13 | | forfeited amount of credits shall be deemed assessed on the | 14 | | date the
Department
contacts the Department of Revenue and | 15 | | the recipient shall promptly repay to
the
Department of | 16 | | Revenue any wrongfully exempted Illinois State income | 17 | | taxes.
| 18 | | (b) The Director may elect to waive enforcement of any | 19 | | contractual provision
arising out of
the development | 20 | | assistance agreement required by this Act based on a finding
| 21 | | that the waiver is
necessary to avert an imminent and | 22 | | demonstrable hardship to the
recipient that may
result in such | 23 | | recipient's insolvency or discharge of workers.
If a waiver is
| 24 | | granted, the recipient must agree to a contractual | 25 | | modification, including
recapture provisions,
to the
| 26 | | development assistance
agreement.
The existence of
any waiver
|
| | | HB5342 Engrossed | - 5 - | LRB097 20175 HLH 65584 b |
|
| 1 | | granted pursuant to this subsection (c), the date of the | 2 | | granting of such
waiver, and a brief
summary of the reasons | 3 | | supporting the granting of such waiver shall be
disclosed
| 4 | | consistent with
the provisions of Section 25 of this Act.
| 5 | | (b-5) The Department shall post, on its website, (i) the | 6 | | identity of each recipient from whom amounts were recaptured | 7 | | under this Section on or after the effective date of this | 8 | | amendatory Act of the 97th General Assembly, (ii) the date of | 9 | | the recapture, (iii) a summary of the reasons supporting the | 10 | | recapture, and (iv) the amount recaptured from those | 11 | | recipients. | 12 | | (c) Beginning June 1, 2004, the Department shall annually | 13 | | compile a report
on the
outcomes and effectiveness of recapture | 14 | | provisions by program, including but
not limited
to: (i) the | 15 | | total number of companies that receive development assistance | 16 | | as
defined in
this Act; (ii) the total number of recipients in | 17 | | violation of development
agreements with
the Department; (iii) | 18 | | the total number of completed recapture efforts; (iv) the
total
| 19 | | number of recapture efforts initiated; and (v) the number of | 20 | | waivers granted.
This report
shall be disclosed consistent with | 21 | | the provisions of Section 20 of this Act.
| 22 | | (d) For the purposes of this Act, recapture provisions do | 23 | | not include the
Illinois
Department of Transportation Economic | 24 | | Development Program, any grants under the
Industrial Training | 25 | | Program that are not given as an incentive to a
recipient | 26 | | business organization,
or any successor programs as described |
| | | HB5342 Engrossed | - 6 - | LRB097 20175 HLH 65584 b |
|
| 1 | | in the term "development assistance" in
Section 5
of this Act.
| 2 | | (Source: P.A. 97-2, eff. 5-6-11.)
|
|