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90_SB0939
415 ILCS 5/211 new
415 ILCS 5/212 new
415 ILCS 5/Title XVIII heading new
415 ILCS 5/59.1 new
415 ILCS 5/59.2 new
415 ILCS 5/59.3 new
415 ILCS 5/59.4 new
415 ILCS 5/59.5 new
415 ILCS 5/59.6 new
415 ILCS 5/59.7 new
415 ILCS 5/59.8 new
415 ILCS 5/59.9 new
Amends the Environmental Protection Act. Creates a new
Title of the Act relating to the Brownfields Rehabilitation
and Redevelopment Program. Provides that the Agency and the
Department of Commerce and Community Affairs shall administer
a program that encourages private sector voluntary
remediation of environmentally-distressed and underutilized
sites that demonstrate the potential to contribute to the
economic growth of Illinois if expanded, rehabilitated, or
redeveloped. Provides that the provisions of the Title are
repealed 5 years after the effective date of this amendatory
Act. Amends the Illinois Income Tax Act. Creates the
Brownfields Remediation Tax Credit for qualifying taxpayers
in an amount equal to the lesser of (i) 100% of the
remediation costs expended or (ii) 100% of the projected
present value of new State revenue generated by an approved
project. Creates the Small Business Remediation Tax Credit
for qualified taxpayers in an amount not to exceed $25,000
per project. Provides that a taxpayer may not claim both of
the credits created by this amendatory Act. Sunsets the
credits after 5 years, except that if the taxpayer's
development agreement provides for the Brownfields
Remediation Tax Credit beyond the 5-year period, the taxpayer
may claim the credit through the term provided in the
agreement. Makes other changes. Effective immediately.
LRB9003110KDsb
LRB9003110KDsb
1 AN ACT in relation to environmental protection, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Income Tax Act is amended by
6 adding Sections 211 and 212 as follows:
7 (415 ILCS 5/211 new)
8 Sec. 211. Brownfields Remediation Tax Credit.
9 (a) Beginning with tax years ending on or after January
10 1, 1997, each taxpayer that receives a certificate of
11 eligibility under Section 59.3 of Title XVIII of the
12 Environmental Protection Act is entitled to a credit against
13 the tax imposed by subsections (a) and (b) of Section 201 of
14 this Act in an amount equal to the lesser of (i) 100% of the
15 remediation costs expended following the implementation of a
16 development agreement or (ii) 100% of the projected present
17 value of new State revenues generated by an approved project.
18 (b) If the amount of the tax credit exceeds the tax
19 liability for the year, the excess may be carried forward and
20 applied to the tax liability of any year within the term of
21 the development agreement prescribed under Section 59.5 of
22 Title XVIII of the Environmental Protection Act.
23 (c) The credit claimed under this Section may not exceed
24 the maximum tax credit allowance for the taxable year set
25 forth in the development agreement tax credit distribution
26 schedule prescribed in Section 59.5 of Title XVIII of the
27 Environmental Protection Act.
28 (d) The credit claimed under this Section may be sold,
29 transferred, or assigned in the year the remediation costs
30 are incurred or any time thereafter until the credit has been
31 claimed, provided that the transferee shall take the credits
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1 subject to the development agreement tax credit distribution
2 schedule.
3 (e) In no event shall a credit issued under this Section
4 reduce the taxpayer's liability under this Act to less than
5 zero.
6 (f) This Section is exempt from the provisions of
7 Section 250 of this Act.
8 (415 ILCS 5/212 new)
9 Sec. 212. The Small Business Remediation Tax Credit.
10 For tax years beginning on or after January 1, 1997 and
11 ending on or before December 30, 2002, a taxpayer that
12 employs no more than 50 employees and undertakes a
13 Brownfields project under Title XVIII of the Environmental
14 Protection Act that generates measurable economic benefit
15 resulting in either a revenue neutral benefit or a net
16 fiscal benefit is entitled to a credit against the tax
17 imposed by subsections (a) and (b) of Section 201 of this Act
18 in an amount not to exceed $25,000 per project. The
19 Department, in cooperation with the Department of Commerce
20 and Community Affairs, shall adopt a tax credit schedule as
21 prescribed in Section 59.5 of Title XVIII of the
22 Environmental Protection Act that shall provide the amount of
23 credits available for measurable economic benefit. No credit
24 may be claimed under this Section if the taxpayer has
25 claimed the Brownfields Remediation Tax Credit under Section
26 211 of this Act.
27 Section 10. The Environmental Protection Act is amended
28 by adding Title XVIII as follows:
29 (415 ILCS 5/Title XVIII heading new)
30 TITLE XVIII: BROWNFIELDS REHABILITATION AND REDEVELOPMENT PROGRAM
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1 Sec. 59. Intent. It is the intent of this Title:
2 (1) To encourage private sector voluntary remediation of
3 environmentally-distressed and underutilized sites that
4 demonstrate a potential to contribute to Illinois economic
5 growth if expanded, rehabilitated, or redeveloped.
6 (2) To provide the private sector with incentives to
7 undertake "Brownfields" projects that will have a net fiscal
8 benefit or at a minimum, a revenue neutral impact on Illinois
9 tax revenue.
10 (3) To establish criteria upon which the State may award
11 incentives.
12 (415 ILCS 5/59.1 new)
13 Sec. 59.1. Definitions. As used in this Title:
14 "Applicant" means any person as defined by this Act who
15 applies to proceed under this Title.
16 "Application" means an application submitted to the
17 Agency and the Department of Commerce and Community Affairs
18 for enrollment in the Brownfields Rehabilitation and
19 Redevelopment Program.
20 "Approved Project" means a Brownfields project that has
21 been approved for incentives under this Title.
22 "Brownfields Site" means any site that is enrolled, or
23 will be enrolled, in the Site Investigation and Remedial
24 Activities Program as provided in Title XVII of this Act and
25 that demonstrates a potential for expansion, rehabilitation,
26 or redevelopment.
27 "Brownfields Project" means the proposed expansion,
28 rehabilitation, or redevelopment of a Brownfields site.
29 "DCCA" means the Illinois Department of Commerce and
30 Community Affairs.
31 "Development Agreement" means an agreement entered into
32 between an applicant and DCCA providing types, amount, and
33 timing of incentives available for an approved project, and
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1 setting forth terms and conditions.
2 "Measurable Economic Growth" includes, but is not limited
3 to, factors such as the number of jobs created, the number of
4 jobs retained if demonstrated such jobs would otherwise be
5 lost, the capital investment, capital improvements, the
6 number of construction related jobs, increased sales,
7 material purchases, other increases in service and
8 operational expenditures, and other factors established by
9 DCCA.
10 "Net Fiscal Benefit" means new tax revenue resulting from
11 implementation of a development agreement in excess of the
12 cost of any incentives granted under this Title.
13 "Regulated Substance", "Remedial Action", "Remedial
14 Action Plan", "Remedial Investigation Plan", and "Site" shall
15 have the meanings ascribed to them in the Site Investigation
16 and Remedial Activities Program in Title XVII of this Act.
17 "Remediation Costs" includes all costs associated with
18 investigating and remediating a Brownfields Site and all
19 other costs associated with obtaining a "No Further
20 Remediation Letter" with respect to the approved project
21 under the Site Investigation and Remedial Activities Program
22 in Title XVII of this Act.
23 "Revenue Neutral Impact" means new tax revenue resulting
24 from implementation of a development agreement equal to the
25 cost of any incentives granted under this Title.
26 (415 ILCS 5/59.2 new)
27 Sec. 59.2 Brownfields Rehabilitation and Redevelopment
28 Program. The General Assembly hereby establishes the Illinois
29 Brownfields Rehabilitation and Redevelopment Program. The
30 Program shall be administered by the Agency and DCCA as
31 provided under this Title.
32 (415 ILCS 5/59.3 new)
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1 Sec. 59.3. Program incentives.
2 (a) The Brownfields Remediation Tax Credit. Any
3 applicant, or credit holder if the credit has been sold,
4 transferred, or assigned, claiming the Brownfields
5 Remediation Tax Credit under Section 211 of the Illinois
6 Income Tax Act shall apply to DCCA for a certificate of
7 eligibility for the credit and shall provide, in addition to
8 any other information required by DCCA, certification that
9 the benchmarks for measurable economic benefits established
10 in the development agreement have been satisfied, proof of
11 enrollment in the Site Investigation and Remedial Activities
12 Program in Title XVII of this Act, and an itemization of the
13 amount of remediation costs, if any, that were incurred
14 during the taxable year. Within 30 days after receipt of
15 this information, DCCA shall provide the applicant with
16 notification of receipt and a certificate of eligibility to
17 claim the tax credit or, if applicable, the annual tax credit
18 allowance as set forth in the development agreement tax
19 credit distribution schedule. The Department of Revenue
20 shall prescribe the form for the certificate of eligibility.
21 DCCA shall file with the Department of Revenue a copy of
22 each certificate of eligibility for the tax credit or annual
23 tax credit allowance. DCCA, in cooperation with the
24 Department of Revenue, shall have the power to adopt rules
25 to carry out the provisions of this Section and to require
26 that any applicant that is granted a credit under Section 211
27 of the Illinois Income Tax Act repay the credit if the
28 applicant fails to comply with the terms and conditions of
29 the certificate of eligibility. No applicant may apply for
30 a certificate of eligibility for a tax credit under Section
31 211 of the Illinois Income Tax Act after 5 years after the
32 effective date of this amendatory Act of 1997 unless the
33 applicant's development agreement provides for tax credits
34 for a term beyond this 5-year period. An applicant that
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1 claims the credit in this subsection based on a fraudulent
2 application for a certificate of eligibility or any other
3 fraudulent statement submitted to the Agency or DCCA shall be
4 subject to prosecution under Section 1301 of the Illinois
5 Income Tax Act.
6 (b) The Small Business Remediation Tax Credit. For tax
7 years beginning on or after January 1, 1997 and ending on or
8 before December 30, 2002, an applicant that employs no more
9 than 50 employees and undertakes a Brownfields project that
10 generate measurable economic benefit resulting in either a
11 revenue neutral benefit or a net fiscal benefit may claim the
12 Small Business Remediation Tax Credit. This credit shall
13 not be available to an applicant that claimed the credit
14 provided in subsection (a). An applicant that claims the
15 credit provided in this Section based on a fraudulent
16 statement submitted to the Agency or DCCA shall be subject
17 to prosecution under Section 1301 of the Illinois Income Tax
18 Act.
19 (c) Additional incentives. The Agency may grant
20 approval of any requests for State-provided Phase I or Phase
21 II remedial investigation resources or may make available
22 any other resources the Agency deems appropriate.
23 (415 ILCS 5/59.4 new)
24 Sec. 59.4. Application submittal. At any time prior to
25 commencement or during the performance of investigative or
26 remedial activities under the Site Investigation and Remedial
27 Activities Program in Title XVII of this Act, an application
28 may be submitted to DCCA providing the following available
29 information:
30 (1) Certification that a copy of the application
31 has been submitted to the Agency;
32 (2) Information relating to the actual or potential
33 impact of a regulated substance release on the site that
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1 is the subject of the application;
2 (3) Certification that a site either is
3 participating or is eligible to participate in the Site
4 Investigation and Remedial Activities Program as provided
5 in Title XVII of this Act;
6 (4) A summary of the remedial investigation plan or
7 the remedial action plan compiled under the Site
8 Investigation and Remedial Activities Program of Title
9 XVII of this Act;
10 (5) Approximate budgets for the remedial
11 investigation plan or remedial action plan;
12 (6) A timeline for remediation and receipt of a "No
13 Further Remediation Letter";
14 (7) A detailed explanation of the proposed
15 Brownfields project;
16 (8) The measurable economic growth expected to
17 result from implementation of the approved project;
18 (9) A timeline for Brownfields project completion
19 and achieving measurable economic growth; and
20 (10) Incentives requested under this Title.
21 (415 ILCS 5/59.5 new)
22 Sec. 59.5. Application review.
23 (a) Within 30 days after receipt of an application, the
24 Agency shall forward to DCCA a letter indicating agreement,
25 disagreement, or need for additional information with respect
26 to the planned investigation and remediation submitted as
27 part of the application. If the Agency disagrees with any
28 portion of the information provided by the applicant, or
29 requires additional information, the Agency shall so state in
30 the letter and provide reasons for any recommendation.
31 (b) Within 45 days after receipt of the application,
32 DCCA shall forward to the applicant a letter indicating
33 approval or disapproval of the application, or need for
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1 additional information, and providing a basis for such
2 decision.
3 (c) If the application is approved, DCCA shall include
4 with the approval letter, a development agreement that shall
5 contain the following:
6 (1) A determination of the present value of new
7 State revenues generated by the projected measurable
8 economic growth of the approved project;
9 (2) The total amount of tax credits projected for
10 the approved project;
11 (3) A determination of the fiscal benefit or
12 revenue neutral impact that will be generated by the
13 approved project;
14 (4) The measurable economic growth benchmarks;
15 (5) A tax credit distribution schedule including
16 annual minimum and maximum tax credit allowances for each
17 year during the entire term of the development agreement;
18 (6) The development agreement term;
19 (7) A list of applicable conditions; and
20 (8) Any other information deemed appropriate by
21 DCCA, including but not limited to, information
22 concerning incentives made available by the Agency and an
23 explanation of how to claim the credits.
24 (415 ILCS 5/59.6 new)
25 Sec. 59.6. Failure to meet measurable economic growth
26 benchmarks.
27 (a) If an applicant determines that the benchmarks set
28 forth in the development agreement are not attainable, an
29 applicant may submit a request for modification of the
30 development agreement to DCCA.
31 (b) DCCA may audit the approved projects and may cancel
32 any credits granted in the development agreement that have
33 not been claimed under Section 59.3 when the approved project
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1 fails to meet measurable economic growth benchmarks. The
2 determination shall be made by DCCA, in its sole discretion,
3 based on the severity of the benchmark not achieved, actions
4 taken to meet the benchmark, the frequency of any failure to
5 meet the benchmark, and compliance with any condition set
6 forth in the development agreement. DCCA shall also consider
7 any changes in the general economic conditions and any
8 recommendation of the Agency concerning severity, scope,
9 nature, frequency, and extent of any deviation from the Site
10 Investigation and Remedial Activities Program in Title XVII
11 of this Act.
12 (415 ILCS 5/59.7 new)
13 Sec. 59.7. Regulations. DCCA shall, with the advice and
14 recommendation of the Agency, issue administrative
15 regulations within 120 days of the effective date of this
16 amendatory Act of 1997 as may be necessary to implement the
17 provisions of this Title, including but not limited to
18 Program application and certification forms, a Small Business
19 Remediation Tax Credit schedule, and a schedule of
20 remediation costs that will be considered qualifying
21 expenditures for the Brownfields Remediation Tax Credit. The
22 Agency may adopt such administrative regulations as necessary
23 to implement the provisions of this Title.
24 (415 ILCS 5/59.8 new)
25 Sec. 59.8. Severability. The provisions of this Title
26 are severable under Section 1.31 of the Statute on Statutes.
27 (415 ILCS 5/59.9 new)
28 Section 59.9. Repealer. The provisions of this Title are
29 repealed effective 5 years after the effective date of this
30 amendatory Act of 1997. This Section shall not impact
31 development agreements entered into prior to the date this
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1 Title is repealed.
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.