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(35 ILCS 10/5-50)
Contents of Agreements with Applicants.
The Department shall
enter into an Agreement with an
Applicant that is awarded a Credit under this Act. The Agreement
must include all of the following:
(1) A detailed description of the project that is the
subject of the Agreement, including the location and amount of the investment and jobs created or retained.
(2) The duration of the Credit and the first taxable
year for which the Credit may be claimed.
(3) The Credit amount that will be allowed for each
(4) A requirement that the Taxpayer shall maintain
operations at the project location that shall be stated as a minimum number of years not to exceed 10.
(5) A specific method for determining the number of
New Employees employed during a taxable year.
(6) A requirement that the Taxpayer shall annually
report to the Department the number of New Employees, the Incremental Income Tax withheld in connection with the New Employees, and any other information the Director needs to perform the Director's duties under this Act.
(7) A requirement that the Director is authorized to
verify with the appropriate State agencies the amounts reported under paragraph (6), and after doing so shall issue a certificate to the Taxpayer stating that the amounts have been verified.
(8) A requirement that the Taxpayer shall provide
written notification to the Director not more than 30 days after the Taxpayer makes or receives a proposal that would transfer the Taxpayer's State tax liability obligations to a successor Taxpayer.
(9) A detailed description of the number of New
Employees to be hired, and the occupation and payroll of the full-time jobs to be created or retained as a result of the project.
(10) The minimum investment the business enterprise
will make in capital improvements, the time period for placing the property in service, and the designated location in Illinois for the investment.
(11) A requirement that the Taxpayer shall provide
written notification to the Director and the Committee not more than 30 days after the Taxpayer determines that the minimum job creation or retention, employment payroll, or investment no longer is being or will be achieved or maintained as set forth in the terms and conditions of the Agreement.
(12) A provision that, if the total number of New
Employees falls below a specified level, the allowance of Credit shall be suspended until the number of New Employees equals or exceeds the Agreement amount.
(13) A detailed description of the items for which
the costs incurred by the Taxpayer will be included in the limitation on the Credit provided in Section 5-30.
(13.5) A provision that, if the Taxpayer never meets
either the investment or job creation and retention requirements specified in the Agreement during the entire 5-year period beginning on the effective date of the Agreement and ending 5 years after the effective date of the Agreement, then the Agreement is automatically terminated on the last day of the fifth taxable year after the Agreement is executed and the Taxpayer is not entitled to the award of any credits for any of that 5-year period.
(13.7) A provision specifying that, if the Taxpayer
ceases principal operations with the intent to shut down the project in the State permanently during the term of the Agreement, then the entire credit amount awarded to the Taxpayer prior to the date the Taxpayer ceases principal operations shall be returned to the Department and shall be reallocated to the local workforce investment area in which the project was located.
(14) Any other performance conditions or contract
provisions as the Department determines are appropriate.
The Department shall post on its website the terms of each Agreement entered into under this Act on or after the effective date of this amendatory Act of the 97th General Assembly. Such information shall be posted within 10 days after entering into the Agreement and must include the following:
(1) the name of the recipient business;
(2) the location of the project;
(3) the estimated value of the credit;
(4) the number of new jobs and, if applicable,
retained jobs pledged as a result of the project; and
(5) whether or not the project is located in an
(Source: P.A. 102-1125, eff. 2-3-23.)