State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ Senate Amendment 002 ]

90_HB2061

      20 ILCS 605/46.70 new
      30 ILCS 105/5.449 new
          Amends the Civil Administrative Code of Illinois and  the
      State  Finance  Act  to  create  the Small Business Incubator
      Fund.  Provides that the Director of Commerce  and  Community
      Affairs   may   make  grants  to  small  business  incubators
      dedicated to the successful  development  of  entrepreneurial
      companies.   Provides that the grants shall not exceed 50% of
      the State income taxes paid in the previous calendar year  by
      qualified   businesses  leasing  space  from  eligible  small
      business incubators.  Provides that an amount equal to 50% of
      these taxes shall  be  annually  appropriated  to  the  fund.
      Establishes an application process for grants and limitations
      on the use of the grants.  Effective immediately.
                                                     LRB9005374PTcw
                                               LRB9005374PTcw
 1        AN ACT concerning small businesses.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Civil Administrative Code of Illinois  is
 5    amended by adding Section 46.70 as follows:
 6        (20 ILCS 605/46.70 new)
 7        Sec. 46.70.  Small business incubator grants.
 8        (a)   Subject  to  availability  of  funds  in  the Small
 9    Business  Incubator  Fund,  the  Director  of  Commerce   and
10    Community  Affairs may make grants to eligible small business
11    incubators in an amount not to exceed  50%  of  State  income
12    taxes  paid in the previous calendar year by qualified tenant
13    businesses subject to the restrictions of this Section.
14        (b)  There  is  created  a  special  fund  in  the  State
15    Treasury  known  as  the  Small Business Incubator Fund.  The
16    money in the Fund may be used only for  making  grants  under
17    subsection  (a)  of  this Section.  The Department of Revenue
18    shall  certify by  March  1  of  each  year  to  the  General
19    Assembly  the  amount of State income taxes paid by qualified
20    tenant businesses in the previous year.   The  Department  of
21    Revenue  may,  by rule, prescribe forms necessary to identify
22    qualified tenant businesses under this  Section.   An  amount
23    equal  to  50%  of  the amount certified by the Department of
24    Revenue shall be appropriated into the Fund annually.
25        (c)  Eligible small business incubators  that  receive  a
26    grant  under  this Section may use the grant only for capital
27    improvements on  the  building  housing  the  eligible  small
28    business  incubator.   The  eligible small business incubator
29    must keep written records of the use of the grant money for a
30    period of 5 years from disbursement.
31        (d)  By April 1 of each year, an eligible small  business
                            -2-                LRB9005374PTcw
 1    incubator  may  apply for a grant under this Section on forms
 2    developed by the  Department.   The  Department  may  require
 3    applicants  to  provide proof of eligibility.  Upon review of
 4    the applications, the  Director  of  Commerce  and  Community
 5    Affairs  shall approve or disapprove the application.  At the
 6    start of each fiscal year or upon approval of the budget  for
 7    that  fiscal  year,  whichever  is  later, the Director shall
 8    determine the amount of funds available for grants under this
 9    Section and shall then approve the grants.
10        (e)  For purposes of this Section:
11             (1)  "eligible small business  incubator"  means  an
12        entity that is dedicated to the successful development of
13        entrepreneurial  companies, has a specific written policy
14        identifying requirements for  a  business  "to  graduate"
15        from  the incubator, either owns or leases real estate in
16        which qualified tenant businesses operate,  and  provides
17        all  of  the  following  services:  management  guidance,
18        rental   spaces,   shared   basic   business   equipment,
19        technology  support services, and assistance in obtaining
20        financing.
21             (2)  "qualified tenant business"  means  a  business
22        that  currently  leases  space  from  an  eligible  small
23        business  incubator, is less than 5 years old, and either
24        has not fulfilled the eligible small business incubator's
25        graduation   requirements   or   has   fulfilled    these
26        requirements within the last 5 years.
27        Section  10.   The State Finance Act is amended by adding
28    Section 5.449 as follows:
29        (30 ILCS 105/5.449 new)
30        Sec.  5.449.  The Small Business Incubator Fund.
31        Section 99.  Effective date.  This Act takes effect  upon
                            -3-                LRB9005374PTcw
 1    becoming law.

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