State of Illinois
90th General Assembly
Legislation

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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      repealed 5 years after the effective date of this  amendatory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
                            -2-                LRB9003110KDsb
 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
                            -3-                LRB9003110KDsb
 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
                            -4-                LRB9003110KDsb
 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)
                            -5-                LRB9003110KDsb
 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
                            -6-                LRB9003110KDsb
 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
                            -7-                LRB9003110KDsb
 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
                            -8-                LRB9003110KDsb
 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
                            -9-                LRB9003110KDsb
 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
                            -10-               LRB9003110KDsb
 1    Title is repealed.
 2        Section  99.  Effective date.  This Act takes effect upon
 3    becoming law.

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