(65 ILCS 115/10-3)
Sec. 10-3. Definitions. As used in this Act: "Department" means the Department of Commerce and Economic Opportunity. "River Edge Redevelopment Zone" means an area of the State certified by the Department as a River Edge Redevelopment Zone pursuant to this Act. "Designated zone organization" means an association or entity: (1) the members of which are substantially all residents of the River Edge Redevelopment Zone or of the municipality in which the River Edge Redevelopment Zone is located; (2) the board of directors of which is elected by the members of the organization; (3) that satisfies the criteria set forth in Section 501(c) (3) or 501(c) (4) of the Internal Revenue Code; and (4) that exists primarily for the purpose of performing within the zone, for the benefit of the residents and businesses thereof, any of the functions set forth in Section 8 of this Act. "Incremental income tax" means the total amount withheld during the taxable year from the compensation of River Edge Construction Jobs Employees. "Agency" means: each officer, board, commission, and agency created by the Constitution, in the executive branch of State government, other than the State Board of Elections; each officer, department, board, commission, agency, institution, authority, university, and body politic and corporate of the State; each administrative unit or corporate outgrowth of the State government that is created by or pursuant to statute, other than units of local government and their officers, school districts, and boards of election commissioners; and each administrative unit or corporate outgrowth of the above and as may be created by executive order of the Governor. No entity is an "agency" for the purposes of this Act unless the entity is authorized by law to make rules or regulations. "River Edge construction jobs credit" means an amount equal to 50% of the incremental income tax attributable to River Edge construction employees employed on a River Edge construction jobs project. However, the amount may equal 75% of the incremental income tax attributable to River Edge construction employees employed on a River Edge construction jobs project located in an underserved area. The total aggregate amount of credits awarded under the Blue Collar Jobs Act (Article 20 of this amendatory Act of the 101st General Assembly) shall not exceed $20,000,000 in any State fiscal year. "River Edge construction jobs employee" means a laborer or worker who is employed by an Illinois contractor or subcontractor in the actual construction work on the site of a River Edge construction jobs project. "River Edge construction jobs project" means building a structure or building, or making improvements of any kind to real property, in a River Edge Redevelopment Zone that is built or improved in the course of completing a qualified rehabilitation plan. "River Edge construction jobs project" does not include the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property. "Rule" means each agency statement of general applicability that implements, applies, interprets, or prescribes law or policy, but does not include (i) statements concerning only the internal management of an agency and not affecting private rights or procedures available to persons or entities outside the agency, (ii) intra-agency memoranda, or (iii) the prescription of standardized forms.
Until July 1, 2022, "underserved area" means a geographic area that meets one or more of the following conditions: (1) the area has a poverty rate of at least 20% |
| according to the latest federal decennial census;
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(2) 75% or more of the children in the area
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| participate in the federal free lunch program according to reported statistics from the State Board of Education;
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(3) at least 20% of the households in the area
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| receive assistance under the Supplemental Nutrition Assistance Program (SNAP); or
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(4) the area has an average unemployment rate, as
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| determined by the Illinois Department of Employment Security, that is more than 120% of the national unemployment average, as determined by the U.S. Department of Labor, for a period of at least 2 consecutive calendar years preceding the date of the application.
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Beginning July 1, 2022, "Underserved area" means a geographic area that meets one or more of the following conditions:
(1) the area has a poverty rate of at least 20%
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| according to the latest American Community Survey;
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(2) 35% or more of the families with children in the
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| area are living below 130% of the poverty line, according to the latest American Community Survey;
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(3) at least 20% of the households in the area
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| receive assistance under the Supplemental Nutrition Assistance Program (SNAP); or
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(4) the area has an average unemployment rate, as
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| determined by the Illinois Department of Employment Security, that is more than 120% of the national unemployment average, as determined by the U.S. Department of Labor, for a period of at least 2 consecutive calendar years preceding the date of the application.
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(Source: P.A. 101-9, eff. 6-5-19; 102-700, eff. 4-19-22.)
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(65 ILCS 115/10-5)
Sec. 10-5. Initiation of River Edge Redevelopment Zones by Municipality.
(a) No area may be designated as a river edge redevelopment zone except pursuant to an initiating ordinance adopted in accordance with this Section. (b) A municipality may by ordinance designate an area within its jurisdiction as a river edge redevelopment zone, subject to the certification of the Department in accordance with this Act, if: (i) the area is qualified in accordance with Section |
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(ii) the municipality has conducted at least one
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| public hearing within the proposed zone area on the question of whether to create the zone, what local plans, tax incentives and other programs should be established in connection with the zone, and what the boundaries of the zone should be; public notice of such hearing shall be published in at least one newspaper of general circulation within the zone area, not more than 20 days nor less than 5 days before the hearing.
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(c) An ordinance designating an area as a river edge redevelopment zone shall set forth:
(i) a precise description of the area comprising the
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| zone, either in the form of a legal description or by reference to roadways, lakes and waterways, and municipality boundaries;
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(ii) a finding that the zone area meets the
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| qualifications of Section 10-4;
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(iii) provisions for any tax incentives or
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| reimbursement for taxes, which pursuant to State and federal law apply to business enterprises within the zone at the election of the designating municipality, and which are not applicable throughout the municipality;
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(iv) a designation of the area as a river edge
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| redevelopment zone, subject to the approval of the Department in accordance with this Act; and
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(v) the duration or term of the river edge
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(d) This Section does not prohibit a municipality from extending additional tax incentives or reimbursement for business enterprises in river edge redevelopment zones or throughout their territory by separate ordinance.
(Source: P.A. 94-1021, eff. 7-12-06.)
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(65 ILCS 115/10-5.1)
Sec. 10-5.1. Application to Department. A municipality that has adopted an ordinance designating an area as a river edge redevelopment zone shall make written application to the Department to have the proposed zone certified. The application shall include: (1) a certified copy of the ordinance designating the |
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(2) a map of the proposed zone;
(3) an analysis, and any appropriate supporting
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| documents, demonstrating that the proposed zone area is qualified in accordance with Section 10-4;
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(4) a statement detailing any tax, grant, and other
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| financial incentives or benefits, and any programs, to be provided by the municipality to business enterprises or organizations within the zone, other than those provided in the designating ordinance, which are not to be provided throughout the municipality;
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(5) a statement setting forth the economic
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| development and planning objectives for the zone;
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(6) an estimate of the economic impact of the zone,
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| considering all of the tax incentives, financial benefits and programs contemplated, upon the revenues of the municipality;
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(7) a transcript of all public hearings on the zone;
(8) a statement describing the functions, programs,
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| and services to be performed by designated zone organizations within the zone; and
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(9) such additional information as the Department by
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(Source: P.A. 94-1021, eff. 7-12-06.)
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(65 ILCS 115/10-5.4)
Sec. 10-5.4. Amendment and decertification of River Edge Redevelopment Zones. (a) The terms of a certified zone designating ordinance may be amended to: (1) alter the boundaries of the Zone; (2) expand, limit or repeal tax incentives or |
| benefits provided in the ordinance;
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(3) alter the termination date of the zone; or
(4) make technical corrections in the river edge
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| redevelopment zone designating ordinance.
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An amendment shall not be effective unless the Department issues an amended certificate for the River Edge Redevelopment Zone, approving the amended designating ordinance. Upon the adoption of any ordinance amending or repealing the terms of a certified river edge redevelopment zone designating ordinance, the municipality shall promptly file with the Department an application for approval thereof, containing substantially the same information as required for an application under Section 10-5.1 insofar as material to the proposed changes. The municipality must hold a public hearing on the proposed changes as specified in Section 10-5 and, if the amendment is to effectuate the limitation of tax abatements under Section 10-5.4.1, then the public notice of the hearing shall state that property that is in both the zone and a redevelopment project area may not receive tax abatements unless within 60 days after the adoption of the amendment to the designating ordinance the municipality has determined that eligibility for tax abatements has been established.
(b) The Department shall approve or disapprove a proposed amendment to a certified zone within 90 days after its receipt of the application from the municipality. The Department may not approve changes in a Zone that are not in conformity with this Act, as now or hereafter amended, or with other applicable laws. If the Department issues an amended certificate for a Zone, the amended certificate, together with the amended zone designating ordinance, shall be filed, recorded, and transmitted as provided in Section 10-5.3.
(c) A River Edge Redevelopment Zone may be decertified by joint action of the Department and by the municipality in which the River Edge Development Zone is located. The designating municipality shall conduct at least one public hearing within the zone prior to its adoption of an ordinance of decertification. The mayor of the designating municipality shall execute a joint decertification agreement with the Department. A decertification of a River Edge Redevelopment Zone that was initiated by the joint action of the Department and one or more of the municipalities in which the zone is located shall not become effective until at least 6 months after the execution of the decertification agreement, which shall be filed in the office of the Secretary of State.
(d) A River Edge Redevelopment Zone may be decertified for cause by the Department in accordance with this Section. Prior to decertification:
(1) the Department shall notify the chief elected
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| official of the designating municipality in writing of the specific deficiencies that provide cause for decertification;
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(2) the Department shall place the designating
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| municipality on probationary status for at least 6 months during which time corrective action may be achieved in the zone by the designating municipality; and
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(3) the Department shall conduct at least one public
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If such corrective action is not achieved during the probationary period, the Department shall issue an amended certificate signed by the Director of the Department decertifying the zone, which certificate shall be filed in the office of the Secretary of State. A certified copy of the amended certificate, or a duplicate original thereof, shall be recorded in the office of recorder of the county in which the River Edge Redevelopment Zone lies, and shall be provided to the chief elected official of the designating municipality. Decertification of a River Edge Redevelopment Zone for cause shall not become effective until 60 days after the date of filing.
(e) In the event of a decertification, an amendment reducing the length of the term or the area of a River Edge Redevelopment Zone, or the adoption of an ordinance reducing or eliminating tax benefits in a zone, all benefits previously extended within the zone pursuant to this Act or pursuant to any other Illinois law providing benefits specifically to or within River Edge Redevelopment Zones shall remain in effect for the original stated term of the zone, with respect to business enterprises within the zone on the effective date of such decertification or amendment.
(f) With respect to a business enterprise (or expansion thereof) that is proposed or under development within a zone at the time of a decertification or an amendment reducing the length of the term of the zone, or excluding from the zone area the site of the proposed enterprise, or an ordinance reducing or eliminating tax benefits in a zone, such business enterprise is entitled to the benefits previously applicable within the zone for the original stated term of the zone, if the business enterprise establishes:
(i) that the proposed business enterprise or
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| expansion has been committed to be located within the zone;
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(ii) that substantial and binding financial
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| obligations have been made towards the development of such enterprise; and
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(iii) that such commitments have been made in
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| reasonable reliance on the benefits and programs which were to have been applicable to the enterprise by reason of the zone, including in the case of a reduction in term of a zone, the original length of the term.
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In declaratory judgment actions under this subsection, the Department and the designating municipality shall be necessary parties defendant.
(Source: P.A. 94-1021, eff. 7-12-06.)
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(65 ILCS 115/10-15) Sec. 10-15. Riverfront Development Fund. (a) Purpose. The General Assembly has determined that it is in the interest of the State of Illinois to promote development that will protect, promote, and improve the riverfront areas of a financially distressed city designated under the Financially Distressed City Law. (b) Definitions. As used in this Section: "Agreement" means the agreement between an eligible |
| employer and the Department under the provisions of subsection (f) of this Section.
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"Department" means the Department of Commerce and
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"Director" means the Director of Commerce and
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"Eligible developer" means an individual,
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| partnership, corporation, or other entity that develops within a river edge redevelopment zone that is located within a municipality designated as a financially distressed city.
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"Eligible employer" means an individual, partnership,
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| corporation, or other entity that employs full-time employees within a river edge redevelopment zone that is located within a municipality designated as a financially distressed city.
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"Full-time employee" means an individual who is
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| employed for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment. An individual for whom a W-2 is issued by a Professional Employer Organization (PEO) is a full-time employee if employed in the service of the eligible employer for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment.
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"Incremental income tax" means the total amount
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| withheld from the compensation of new employees under Article 7 of the Illinois Income Tax Act arising from employment by an eligible employer.
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"Infrastructure" means roads, access roads, streets,
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| bridges, sidewalks, water and sewer line extensions, water distribution and purification facilities, waste disposal systems, sewage treatment facilities, stormwater drainage and retention facilities, gas and electric utility line extensions, or other improvements that are essential to the development of the project that is the subject of an agreement.
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"New employee" means a full-time employee first
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| employed by an eligible employer in the project that is the subject of an agreement between the Department and an eligible developer and who is hired after the eligible developer enters into the agreement, but does not include:
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(1) an employee of the eligible employer who
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| performs a job that (i) existed for at least 6 months before the employee was hired and (ii) was previously performed by another employee;
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(2) an employee of the eligible employer who was
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| previously employed in Illinois by a related member of the eligible employer and whose employment was shifted to the eligible employer after the eligible employer entered into the agreement; or
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(3) a child, grandchild, parent, or spouse,
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| other than a spouse who is legally separated from the individual, of any individual who has a direct or an indirect ownership interest of at least 5% in the profits, capital, or value of the eligible employer.
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Notwithstanding item (2) of this definition, an
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| employee may be considered a new employee under the agreement if the employee performs a job that was previously performed by an employee who was:
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(A) treated under the agreement as a new
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(B) promoted by the eligible employer to another
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"Professional Employer Organization" (PEO) means an
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| employee leasing company, as defined in Section 206.1(A)(2) of the Illinois Unemployment Insurance Act.
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"Related member" means a person or entity that, with
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| respect to the eligible employer during any portion of the taxable year, is any one of the following:
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(1) an individual stockholder, if the stockholder
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| and the members of the stockholder's family (as defined in Section 318 of the Internal Revenue Code) own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of the eligible employer's outstanding stock;
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(2) a partnership, estate, or trust and any
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| partner or beneficiary, if the partnership, estate, or trust, and its partners or beneficiaries own directly, indirectly, or beneficially, or constructively, in the aggregate, at least 50% of the profits, capital, stock, or value of the eligible employer;
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(3) a corporation, and any party related to the
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| corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the taxpayer owns directly, indirectly, beneficially, or constructively at least 50% of the value of the corporation's outstanding stock;
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(4) a corporation and any party related to that
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| corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the corporation and all such related parties own in the aggregate at least 50% of the profits, capital, stock, or value of the eligible employer; or
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(5) a person to or from whom there is attribution
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| of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code, except, for purposes of determining whether a person is a related member under this definition, 20% shall be substituted for 5% wherever 5% appears in Section 1563(e) of the Internal Revenue Code.
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(c) The Riverfront Development Fund. The Riverfront Development Fund is created as a special fund in the State treasury. As soon as possible after the first day of each month, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Riverfront Development Fund an amount equal to the incremental income tax for the previous month attributable to a project that is the subject of an agreement. The total amount transferred under this subsection may not exceed $3,000,000 in any State fiscal year.
(d) Grants from the Riverfront Development Fund. In State fiscal years 2015 through 2021, all moneys in the Riverfront Development Fund, held solely for the benefit of eligible developers, shall be appropriated to the Department to make infrastructure grants to eligible developers pursuant to agreements.
(e) Limitation on grant amounts. The total aggregate amount of grants awarded to all eligible developers shall not exceed $3,000,000 in each State fiscal year. The total amount of a grant awarded to an eligible developer shall not exceed the total amount of infrastructure costs incurred by that eligible developer with respect to a project that is the subject of an agreement. No eligible developer shall receive moneys that are attributable to a project that is not the subject of the developer's agreement with the Department.
(f) Agreements with applicants. The Department shall enter into an agreement with an eligible developer who is entitled to grants under this Section. The agreement must include all of the following:
(1) A detailed description of the project that is the
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| subject of the agreement, including the location of the project, the number of jobs created by the project, and project costs. For purposes of this subsection, "project costs" includes the costs of the project incurred or to be incurred by the eligible developer, including infrastructure costs, but excludes the value of State or local incentives, including tax increment financing and deductions, credits, or exemptions afforded to an employer located in an enterprise zone.
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(2) A requirement that the eligible developer shall
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| maintain operations at the project location, stated as a minimum number of years not to exceed 10 years.
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(3) A specific method for determining the number of
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| new employees attributable to the project.
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(4) A requirement that the eligible developer shall
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| report monthly to the Department and the Department of Revenue the number of new employees and the incremental income tax withheld in connection with the new employees.
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(5) A requirement that the Department is authorized
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| to verify with the Department of Revenue the amounts reported under paragraph (4).
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(Source: P.A. 98-109, eff. 7-25-13.)
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