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90_HB2107eng
New Act
35 ILCS 5/211 new
35 ILCS 5/701 from Ch. 120, par. 7-701
35 ILCS 5/703 from Ch. 120, par. 7-703
Creates the Rural Manufacturing Incentives Program.
Provides that an eligible company may apply for incentives,
including tax credits, as part of an economic development
project in a county in Illinois whose average unemployment
rate is higher than the State's unemployment rate for the
past 5 consecutive years through the Department of Commerce
and Community Affairs. Authorizes the Department to enter
into financing agreements with the eligible company it
selects to undertake an economic development project.
Provides that an approved company may require that each
employee agree to pay a job assessment fee equal to 4% of the
gross wages of each employee whose job was created as a
result of the economic development project for the purpose of
paying debt service. Provides that the Department shall
work with the Illinois Development Finance Authority if the
issuance of bonds is necessary for the implementation of the
economic development project. Amends the Illinois Income Tax
Act. Creates tax credits for approved companies in an amount
equal to 100% of the debt service of the company plus any
job development assessment fees. Provides that the credits
are available for tax years ending on or after December 31,
1997. Provides that the credits shall be available for the
period of the financing agreement, but in no case for more
than 15 years. Effective immediately.
LRB9004298KDks
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1 AN ACT in relation to economic development.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Rural Manufacturing Incentives Act.
6 Section 5. Legislative findings.
7 (1) The General Assembly finds and declares that the
8 general welfare and material well-being of citizens of the
9 State, and particularly those residing in qualified counties,
10 depends in large measure upon the development and growth of
11 industry in the State.
12 (2) The General Assembly further finds and declares that
13 it is in the best interest of the State to induce the
14 location of manufacturing facilities and agribusiness
15 operations within the qualified counties of the State in
16 order to advance the public purposes of relieving
17 unemployment by creating new jobs within the qualified
18 counties that but for the inducements to be offered by the
19 Department to approved companies as herein provided would not
20 exist and of creating new sources of tax revenues for the
21 support of the public services provided by the State and
22 qualified counties.
23 (3) The General Assembly further finds and declares that
24 the authority granted by this Act and the purposes to be
25 accomplished hereby are proper governmental and public
26 purposes for which public moneys may be expended, and that
27 the inducement of the location of manufacturing facilities
28 and agribusiness operations within qualified counties is of
29 paramount importance, mandating that the provisions of this
30 Act be liberally construed and applied in order to advance
31 the public purposes.
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1 Section 10. Definitions. As used in this Act:
2 "Affiliate" means the following:
3 (a) Members of a family, including only brothers
4 and sisters of the whole or half blood, spouse,
5 ancestors, and lineal descendents of an individual;
6 (b) An individual, and a corporation more than 50%
7 in value of the outstanding stock of which is owned,
8 directly or indirectly, by or for that individual;
9 (c) An individual, and a limited liability company
10 of which more than 50% of the capital interest or profits
11 are owned or controlled, directly or indirectly, by or
12 for that individual;
13 (d) Two corporations that are members of the same
14 controlled group, which includes and is limited to:
15 (1) One or more claims of corporations
16 connected through stock ownership with a common
17 parent corporation if:
18 (A) Stock possessing more than 50% of the
19 total combined voting power of all classes of
20 stock entitled to vote or more than 50% of the
21 total value of shares of all classes of stock
22 of each of the corporations, except the common
23 parent corporation, is owned by one or more of
24 the other corporations; and
25 (B) The common parent corporation owns
26 stock possessing more than 50% of the total
27 combined voting power of all classes of stock
28 entitled to vote or more than 50% of the total
29 value of shares of all classes of stock of at
30 least one of the other corporations, excluding,
31 in computing the voting power or value, stock
32 owned directly by the other corporations; or
33 (2) Two or more corporations if 5 or fewer
34 persons who are individuals, estates, or trusts own
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1 stock possessing more than 50% of the total combined
2 voting power of all classes of stock entitled to
3 vote or more than 50% of the total value of shares
4 of all classes of stock of each corporation, taking
5 into account the stock ownership of each person only
6 to the extent the stock ownership is identical with
7 respect to each corporation;
8 (e) A grantor and fiduciary of any trust;
9 (f) A fiduciary of a trust and fiduciary of another
10 trust, if the same person is a grantor of both trusts;
11 (g) A fiduciary of a trust and a beneficiary of
12 that trust;
13 (h) A fiduciary of a trust and a beneficiary of
14 another trust, if the same person is a grantor of both
15 trusts;
16 (i) A fiduciary of a trust and a corporation more
17 than 50% in value of the outstanding stock of which is
18 owned, directly or indirectly, by or for the trust or by
19 or for a person who is a grantor of the trust;
20 (j) A fiduciary of a trust and a limited liability
21 company more than 50% of the capital interest, or the
22 interest in profits, of which is owned directly or
23 indirectly, by or for the trust or by or for a person who
24 is a grantor of the trust;
25 (k) A corporation and a partnership, including a
26 registered limited liability partnership, if the same
27 persons own:
28 (1) More than 50% in value of the outstanding
29 stock of the corporation; and
30 (2) More than 50% of the capital interest, or
31 the profits interest, in the partnership, including
32 a registered limited liability partnership;
33 (l) A corporation and a limited liability company
34 if the same persons own:
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1 (1) More than 50% in value of the outstanding
2 stock of the corporation; and
3 (2) More than 50% of the capital interest or
4 the profits in the limited liability company;
5 (m) A partnership, including a registered limited
6 liability partnership, and a limited liability company if
7 the same persons own:
8 (1) More than 50% of the capital interest or
9 profits in the partnership, including a registered
10 limited liability partnership; and
11 (2) More than 50% of the capital interest or
12 the profits in the limited liability company;
13 (n) An S corporation and another S corporation if
14 the same persons own more than 50% in value of the
15 outstanding stock of each corporation, S corporation
16 designation being the same as that designation under the
17 Internal Revenue Code of 1986, as amended; or
18 (o) An S corporation and a C corporation, if the
19 same persons own more than 50% in value of the
20 outstanding stock of each corporation; S and C
21 corporation designations being the same as those
22 designations under the Internal Revenue Code of 1986, as
23 amended.
24 "Agribusiness" means any activity involving the
25 processing of raw agricultural products, including timber, or
26 the providing of value-added functions with regard to raw
27 agricultural products.
28 "Approved company" means any eligible company seeking to
29 locate an economic development project in a qualified county,
30 which eligible company is approved by the Department under
31 this Act.
32 "Approved costs" means:
33 (a) Obligations incurred for labor and to
34 contractors, subcontractors, builders, and materialmen in
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1 connection with the acquisition, construction,
2 installation, equipping, and rehabilitation of an
3 economic development project;
4 (b) The cost of acquiring land or rights in land
5 and any cost incidental thereto, including recording
6 fees;
7 (c) The cost of contract bonds and of insurance of
8 all kinds that may be required or necessary during the
9 course of acquisition, construction, installation,
10 equipping, and rehabilitation of an economic development
11 project that is not paid by the contractor or contractors
12 or otherwise provided for;
13 (d) All costs of architectural and engineering
14 services, including test borings, surveys, estimates,
15 plans and specifications, preliminary investigations, and
16 supervision of construction, as well as for the
17 performance of all the duties required by or consequent
18 upon the acquisition, construction, installation,
19 equipping, and rehabilitation of an economic development
20 project;
21 (e) All costs that shall be required to be paid
22 under the terms of any contract or contracts for the
23 acquisition, construction, installation, equipping, and
24 rehabilitation of an economic development project; and
25 (f) All other costs of a nature comparable to those
26 described above.
27 "Authority" means the Illinois Development Finance
28 Authority as created in the Illinois Development Finance
29 Authority Act.
30 "Bonds" means the revenue bonds, notes, or other debt
31 obligations of the Authority authorized to be issued by the
32 Authority, in cooperation with the Department.
33 "Department" means the Department of Commerce and
34 Community Affairs.
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1 "Eligible economic development project" means a new or
2 expanding manufacturing company expenditure for land
3 acquisitions, site development including architectural,
4 engineering, and legal services, utility extensions, costs
5 and fees, building construction or rehabilitation, equipment
6 purchases, re-location of existing equipment including
7 installation cost, new or expanding, storage, warehousing,
8 and related office facilities on or off existing premises
9 within the qualified counties.
10 "Eligible company" means any corporation, limited
11 liability company, partnership, registered limited liability
12 partnership, sole proprietorship, business trust, or any
13 other entity engaged in manufacturing or in agribusiness.
14 "Final approval" means the action taken by the Department
15 authorizing the eligible company to receive inducements under
16 this Act.
17 "Financing agreement" means any agreement entered into,
18 pursuant to this Act, on behalf of the Department or other
19 lenders, or both, and an approved company with respect to an
20 economic development project.
21 "Inducements" means the income tax credits allowed by
22 Section 30 of this Act and Section 211 of the Illinois Income
23 Tax Act.
24 "Manufacturing" means any activity involving the
25 manufacturing, processing, assembling, or production of any
26 property, including the processing resulting in a change in
27 the conditions of the property and any activity related to
28 it, together with the storage, warehousing, distribution, and
29 related office facilities; however, "manufacturing" shall not
30 include mining, coal or mineral processing, or extraction of
31 minerals.
32 "Preliminary approval" means the action taken by the
33 Department conditioning final approval by the Department upon
34 satisfaction by the eligible company of the requirements
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1 under this Act.
2 "Qualified county" means any county certified as such by
3 the Department under Section 15.
4 "Revenues" shall not be considered State funds.
5 Section 15. Certification of qualified counties;
6 selection of eligible companies.
7 (a) Each year the Department shall under this Act, on the
8 basis of the final unemployment figures calculated by the
9 Department of Employment Security, determine which counties
10 have had a countywide average annual unemployment rate
11 exceeding the statewide unemployment rate in the most recent
12 5 consecutive calendar years and shall certify those counties
13 as qualified counties. If the Department determines that a
14 county that has previously been certified as a qualified
15 county no longer has an unemployment rate above the State
16 average, the Department shall decertify the county. The
17 Department shall not finance any facilities in that county
18 under this Act and an approved company shall not be eligible
19 for the incentives offered by this Act unless the financing
20 agreements required herein are entered into by all parties
21 prior to July 1 of the year following the calendar year in
22 which the Department decertified that county.
23 (b) The Department shall prescribe rules to establish
24 the procedures and standards for the determination and
25 approval of eligible companies and their economic development
26 projects. The criteria for approval of eligible companies
27 and economic development projects shall include but not be
28 limited to the creditworthiness of eligible companies; the
29 number of new jobs to be provided by an economic development
30 project to residents of the State; and the likelihood of the
31 economic success of the economic development project.
32 (c) The economic development project shall involve a
33 minimum investment of $500,000 by the eligible company and
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1 shall result in the creation by the eligible company, within
2 2 years from the date of the final approval authorizing the
3 economic development project, a minimum of 15 new full-time
4 jobs of at least 35 hours per week at the site of the
5 economic development project for Illinois residents to be
6 employed by the eligible company. The Department may extend
7 this 2 year period upon the written application of an
8 eligible company requesting an extension. No economic
9 development project that will result in the replacement of
10 existing manufacturing facilities in the State shall be
11 approved by the Department; however, the Department may
12 approve an economic development project that:
13 (1) Rehabilitates a manufacturing facility:
14 (A) That has not been in operation for a
15 period of 90 or more consecutive days; or
16 (B) The title to which is vested in other than
17 the eligible company or an affiliate of the eligible
18 company and that is sold or transferred under a
19 foreclosure ordered by a court of competent
20 jurisdiction or an order of a bankruptcy court of
21 competent jurisdiction;
22 (2) Replaces a manufacturing facility existing in
23 the State:
24 (A) The title to which shall have been taken
25 under the exercise of the power of eminent domain,
26 or the title to which shall be the subject of a
27 nonappealable judgment granting the authority to
28 exercise the power of eminent domain, in either
29 event to the extent that normal operations cannot be
30 resumed at the facility within 12 months; or
31 (B) That has been damaged or destroyed by fire
32 or other casualty to the extent that normal
33 operations cannot be resumed at the facility within
34 12 months; or
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1 (3) Replaces an existing manufacturing facility
2 located in the same qualified county, and the existing
3 manufacturing facility to be replaced cannot be expanded
4 due to the unavailability of real estate at or adjacent
5 to the manufacturing facility to be replaced. Any
6 economic development project satisfying the requirements
7 of this paragraph shall only be eligible for inducements
8 to the extent of the expansion, and no inducements shall
9 be available for the equivalent of the manufacturing
10 facility to be replaced. No economic development project
11 otherwise satisfying the requirements of this paragraph
12 shall be approved by the Department which results in a
13 lease abandonment or lease termination by the approved
14 company without the consent of the lessor.
15 (d) With respect to each eligible company making an
16 application to the Department for inducements, and with
17 respect to the economic development project described in the
18 application, the Department shall request materials and make
19 inquiries of the applicant as necessary or appropriate. Upon
20 review of the application and completion of initial
21 inquiries, the Department may give its preliminary approval
22 by designating an eligible company as a preliminarily
23 approved company and authorizing the undertaking of the
24 economic development project. After preliminary approval and
25 completion by the eligible company of its bond, loan, or
26 other financing and review thereof by the Department, the
27 Department may by final approval designate an eligible
28 company to be an approved company.
29 Section 20. Financing agreement; terms; payback; income
30 tax credit; default; activation date. The Department may
31 enter into, with any approved company, a financing agreement
32 with respect to its economic development project. Subject to
33 the inclusion of the mandatory provisions set forth below,
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1 the terms and provisions of each financing agreement shall be
2 determined by negotiations between the Department and the
3 approved company.
4 (a) If an eligible company, at the time of submission of
5 its application to the Department to become an approved
6 company, requests the Department, in cooperation with the
7 Authority, in writing to arrange for the issuance of bonds
8 on the company's behalf, then each financing agreement used
9 in connection with the issuance of bonds by the Authority, in
10 cooperation with the Department, shall include the following
11 provisions:
12 (1) The term of a financing agreement shall not be
13 less than the last maturity of the bonds issued with
14 respect to the economic development project, except that
15 the financing agreement may terminate upon the earlier
16 redemption of all of the bonds issued with respect to the
17 economic development project and, if the Department owns
18 the economic development project, the Department may
19 grant to the approved company or its affiliate an option
20 to purchase, for the consideration the Department may
21 approve, the economic development project from the
22 Department upon the termination of the financing
23 agreement. Nothing in this paragraph shall limit the
24 extension of the term of a financing agreement if there
25 is a refunding of the correlative bonds or otherwise.
26 (2) All proceeds of any bonds incurred in connection
27 with the economic development project shall be expended
28 by the approved company within 3 years from the date of
29 the financing agreement. In the event that all proceeds
30 of bonds incurred in connection with the economic
31 development project are not fully expended within the 3
32 year period, the amount of the authorized inducements
33 shall automatically be reduced to and shall not be
34 greater than the amount of proceeds actually expended by
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1 the approved company within the 3 year period.
2 (3) The financing agreement shall specify that the
3 annual obligations of the approved company under this Act
4 shall equal in each year the annual debt service for that
5 year on the bonds issued with respect to the economic
6 development project; and the approved company shall pay
7 such obligation of the financing agreement to the trustee
8 for the bonds issued for the benefit of the approved
9 company, at such time and in such amounts sufficient to
10 amortize such bonds.
11 (4) (A) In consideration for financing
12 agreement payment, the approved company may be
13 permitted, during the period of time not to exceed
14 18 years from the activation date in which the
15 financing agreement is in effect, which period of
16 time shall commence for purposes of the following
17 upon the date of the financing agreement, a 100%
18 credit against the Illinois income tax that
19 otherwise would be owed in the year to the State by
20 the approved company on the income of the approved
21 company generated by or arising out of the economic
22 development project, the credit not to exceed the
23 total debt service paid under the respective
24 financing agreement.
25 (B) The income tax credited to the approved
26 company referred to herein shall be credited for the
27 fiscal year for which the tax return of the approved
28 company is filed. The approved company shall not be
29 required to pay estimated income tax payments as
30 prescribed in Section 803 of the Illinois Income Tax
31 Act.
32 (5) (A) The financing agreement shall provide
33 that the credit under Section 211 of the Illinois
34 Income Tax Act, shall not exceed the total annual
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1 debt service payments of the approved company with
2 respect to the loans or other financing incurred in
3 connection with the economic development project in
4 any year; however, to the extent that such annual
5 debt service payments exceed credits received in any
6 year, the excess payment may be recouped from excess
7 credits in succeeding years.
8 (B) If in any fiscal year of the approved
9 company during which the financing agreement is in
10 effect, the total of the income tax credit granted
11 to the approved company exceeds the annual payment
12 pursuant to the financing agreement, and if all
13 excess payments pursuant to the financing agreement
14 accumulated in prior years have been recouped, the
15 approved company shall pay the excess to the State
16 as income tax.
17 (6) The financing agreement shall provide in
18 substance that:
19 (A) It may be assigned by the approved company
20 only upon the prior written consent of the
21 Department following the adoption of a resolution by
22 the Department to such effect; and
23 (B) Upon default by the approved company in
24 any obligations under the financing agreement or
25 other documents evidencing, securing, or related to
26 the approved company's obligations, the Department,
27 or any of its assignees, shall have the right, at
28 its option, to declare the financing agreement or
29 such other documents in default; and
30 (i) Accelerate and declare the total of
31 all such payments due by the approved company
32 and sell the economic development project at
33 public, private, or judicial sale;
34 (ii) Pursue any remedy provided under the
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1 financing agreement or other such documents;
2 (iii) Pursue all other remedies available
3 to it under the Illinois Uniform Commercial
4 Code;
5 (iv) Be entitled to the appointment of a
6 receiver by the circuit court of any county
7 where any part of the economic development
8 project is located; and
9 (v) Pursue any other remedy at law to
10 which it appears entitled.
11 (C) All remedies proved in item (B) of
12 paragraph (6) of subsection (a) of this Section
13 shall be cumulative.
14 (b) If an eligible company, at the time of submission of
15 its application to the Department to become an approved
16 company, does not request the Department in writing to
17 arrange with the Authority for the issuance of bonds on the
18 behalf of the company, then each financing agreement used in
19 connection with loans or other financing (other than bonds
20 issued by the Authority for which subsection (a) of this
21 Section shall be used) shall include the following
22 provisions:
23 (1) The term of a financing agreement, which shall
24 commence on the date of the financing agreement, shall
25 not be longer than:
26 (A) The maturity of any loan or other
27 financing incurred in connection with the economic
28 development project, except that the financing
29 agreement may terminate upon the earlier prepayment
30 of all loans or other financing incurred in
31 connection with the economic development project; or
32 (B) Fifteen years from the activation date.
33 (C) Nothing in this subsection shall limit the
34 extension of the term of a financing agreement if
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1 there is a refinancing of the loans or other
2 financing. The authority shall not own an economic
3 development project that is the subject of this
4 form of financing agreement.
5 (2) All proceeds of any loan or other financing
6 incurred in connection with the economic development
7 project shall be expended by the approved company within
8 3 years from the date of the financing agreement. In
9 the event that all proceeds of any loan or other
10 financing incurred in connection with the economic
11 development project are not fully expended within the 3
12 year period, the authorized inducements shall
13 automatically be reduced to and shall not be greater
14 than the amount of proceeds actually expended by the
15 approved company within the 3 year period.
16 (3)(A) The approved company may be permitted,
17 during the term of the financing agreement, a 100%
18 credit against the Illinois income tax that
19 otherwise would be owed in the year, as determined
20 under the Illinois Income Tax Act, to the State by
21 the approved company on the income of the approved
22 company generated by or arising out of the economic
23 development project, such credit not to exceed the
24 total debt service paid with respect to the loans
25 or other financing incurred in connection with the
26 economic development project.
27 (B) The income tax credited to the approved
28 company shall be credited for the fiscal year for
29 which the tax return of the approved company is
30 filed. The approved company shall not be required
31 to pay estimated income tax as prescribed in
32 Section 803 of the Illinois Income Tax Act.
33 (4)(A) The financing agreement shall provide
34 that the credit under Section 211 of the Illinois
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1 Income Tax Act, shall not exceed the total annual
2 debt service payments of the approved company with
3 respect to the loans or other financing incurred in
4 connection with the economic development project in
5 any year; however, to the extent that such annual
6 debt service payments exceed credits received in any
7 year, the excess payment may be recouped from excess
8 credits in succeeding years.
9 (B) If in any fiscal year of the approved
10 company during which the financing agreement is in
11 effect, the total of the income tax credit granted
12 to the approved company exceeds the annual payment
13 pursuant to the financing agreement, and if all
14 excess payments pursuant to the financing agreement
15 accumulated in prior years have been recouped, the
16 approved company shall pay the excess to the State
17 as income tax.
18 (5) The financing agreement shall provide in
19 substance that it may be assigned by the approved
20 company only upon the prior written consent of the
21 Department following the adoption of a resolution by the
22 Department to that effect.
23 (6) The financing agreement shall provide that an
24 approved company shall require of any lender to the
25 approved company funding the loans or other financing
26 incurred in connection with the economic development
27 project written evidence to be provided to the Department
28 of payments of annual debt service to such lender. Such
29 evidence shall be provided to the Department within 45
30 days after the end of each fiscal year of the financing
31 agreement.
32 (7) The financing agreement shall provide that if
33 an approved company fails to comply with its respective
34 obligations under the financing agreement, or that the
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1 lender to an approved company fails to comply with its
2 requirements set forth in paragraph (6) of subsection (b)
3 of this Section, or is declared in default under the
4 loans or other financing incurred in connection with the
5 economic development project, then the Department, or
6 any of its assignees, shall have the right, at its
7 option, to:
8 (A) Suspend the availability of the income tax
9 credits to the approved company;
10 (B) Pursue any remedy provided under the financing
11 agreement, including termination thereof; and
12 (C) Pursue any other remedy at law to which it
13 appears entitled.
14 (c) All remedies provided in item (B) of paragraph (7)
15 of subsection (b) of this Section shall be deemed cumulative.
16 (d) Pursuant to this Section, the activation date shall
17 be established by the approved company in the financing
18 agreement at any time in a 2 year period after the date of
19 final approval of the financing agreement by the authority.
20 To implement the activation date, the approved company shall
21 notify the Department, the Department of Revenue, and the
22 approved company's employees of the activation date when the
23 implementation of the inducements authorized in the financing
24 agreement shall occur. If the approved company does not
25 satisfy the minimum investment and minimum employment
26 requirements of subsection (c) of Section 15 of this Act by
27 the activation date, the approved company shall not be
28 entitled to receive inducements under this Act until the
29 approved company satisfies the requirements; however, the 15
30 year period for the term of the financing agreement shall
31 begin from the activation date. Notwithstanding the previous
32 sentence, if the approved company does not satisfy the
33 minimum investment and minimum employment requirements of
34 subsection (c) of Section 15 of this Act within 2 years from
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1 the date of final approval of the financing agreement, then
2 the approved company shall be ineligible to receive
3 inducements under this Act unless an extension is approved by
4 the Department.
5 Section 25. Financing agreement; adoption; publication.
6 (a) The Department may execute and deliver a financing
7 agreement and consummate the transactions described in the
8 agreement upon:
9 (1) The approval by the Department authorizing the
10 financing agreement, as described in subsection (b) of
11 Section 20, with respect to an approved company and loans
12 for other financing in connection with an economic
13 development project; and
14 (2) The publication of a summary of the agreement
15 in:
16 (A) A newspaper authorized to publish official
17 advertisements for the Department; and
18 (B) A newspaper of general circulation in the
19 qualified county in which the economic development
20 project is to be located.
21 (b) The summary of the agreement as provided in
22 paragraph (2) of subsection (a) of this Section shall include
23 the following:
24 (1) The date the resolution was adopted by the
25 Department;
26 (2) The title of the resolution;
27 (3) The maximum amount of loans or other financing,
28 as described in subsection (b) of Section 20, incurred in
29 connection with the economic development project; and
30 (4) The name of the approved company.
31 Section 30. Determination of income tax credit by the
32 Department of Revenue.
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1 (a) The approved company shall be entitled to a tax
2 credit as provided in Section 211 of the Illinois Income Tax
3 Act on any income that may result from the operation of the
4 approved economic development project. The credit shall be
5 equal to the total amount of the tax liability not to exceed
6 the total debt service paid:
7 (1) Under the financing agreement in connection with
8 the economic development project financed by bonds as
9 described in subsection (a) of Section 20; or
10 (2) On loans or other financing, as described in
11 subsection (b) of Section 20, incurred in connection with
12 the economic development project.
13 (b) Ninety days after the filing of the tax return of
14 the approved company, the Department of Revenue shall certify
15 to the Department the income tax liability for the preceding
16 fiscal year of the approved company for which the return was
17 filed with respect to an economic development project
18 financed through the issuance of bonds, loans, or other
19 financing incurred in connection with the economic
20 development project and the amounts of any tax credits taken
21 under the Act.
22 Section 80. The Illinois Income Tax Act is amended by
23 adding Section 211 as follows:
24 (35 ILCS 5/211 new)
25 Sec. 211. Rural manufacturing incentive tax credit. For a
26 period of 15 years beginning with tax years ending on or
27 after December 31, 1997, an approved company under the Rural
28 Manufacturing Incentives Act subject to this Act is entitled
29 to a credit against the tax imposed by subsections (a) and
30 (b) of Section 201 in an amount equal to 100% of the amount
31 expended by the taxpayer during the tax year on debt service
32 for capital investments and expenditures in Illinois as
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1 prescribed in Section 30 of the Rural Manufacturing
2 Incentives Act.
3 If the amount of credit exceeds the tax liability for the
4 year, the excess may be carried forward and applied to the
5 tax liability of the term of the financing agreement plus the
6 3 years immediately following the termination of the
7 financing agreement. The credit shall be applied to the
8 earliest year for which there is a tax liability. If there
9 are credits from more than one tax year that are available to
10 offset a liability, the earlier credit shall be applied
11 first.
12 Section 99. Effective date. This Act takes effect upon
13 becoming law.