[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ House Amendment 001 ] | [ Senate Amendment 001 ] |
90_SB0939ccr001
LRB9003110DPcwccr3
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON SENATE BILL 939
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to House Amendment
10 No. 1 to Senate Bill 939, recommend the following:
11 (1) that the Senate concur in House Amendment No. 1; and
12 (2) that Senate Bill 939, AS AMENDED, be further amended
13 by replacing the title with the following:
14 "AN ACT concerning the environment, amending named
15 Acts."; and
16 by replacing everything after the enacting clause with the
17 following:
18 "Section 5. The State Finance Act is amended by adding
19 Section 5.449 as follows:
20 (30 ILCS 105/5.449 new)
21 Sec. 5.449. The Brownfields Redevelopment Fund.
22 Section 10. The Illinois Income Tax Act is amended by
23 changing Section 201 as follows:
24 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
25 Sec. 201. Tax Imposed.
26 (a) In general. A tax measured by net income is hereby
27 imposed on every individual, corporation, trust and estate
28 for each taxable year ending after July 31, 1969 on the
29 privilege of earning or receiving income in or as a resident
30 of this State. Such tax shall be in addition to all other
-2- LRB9003110DPcwccr3
1 occupation or privilege taxes imposed by this State or by any
2 municipal corporation or political subdivision thereof.
3 (b) Rates. The tax imposed by subsection (a) of this
4 Section shall be determined as follows:
5 (1) In the case of an individual, trust or estate,
6 for taxable years ending prior to July 1, 1989, an amount
7 equal to 2 1/2% of the taxpayer's net income for the
8 taxable year.
9 (2) In the case of an individual, trust or estate,
10 for taxable years beginning prior to July 1, 1989 and
11 ending after June 30, 1989, an amount equal to the sum of
12 (i) 2 1/2% of the taxpayer's net income for the period
13 prior to July 1, 1989, as calculated under Section 202.3,
14 and (ii) 3% of the taxpayer's net income for the period
15 after June 30, 1989, as calculated under Section 202.3.
16 (3) In the case of an individual, trust or estate,
17 for taxable years beginning after June 30, 1989, an
18 amount equal to 3% of the taxpayer's net income for the
19 taxable year.
20 (4) (Blank).
21 (5) (Blank).
22 (6) In the case of a corporation, for taxable years
23 ending prior to July 1, 1989, an amount equal to 4% of
24 the taxpayer's net income for the taxable year.
25 (7) In the case of a corporation, for taxable years
26 beginning prior to July 1, 1989 and ending after June 30,
27 1989, an amount equal to the sum of (i) 4% of the
28 taxpayer's net income for the period prior to July 1,
29 1989, as calculated under Section 202.3, and (ii) 4.8% of
30 the taxpayer's net income for the period after June 30,
31 1989, as calculated under Section 202.3.
32 (8) In the case of a corporation, for taxable years
33 beginning after June 30, 1989, an amount equal to 4.8% of
34 the taxpayer's net income for the taxable year.
35 (c) Beginning on July 1, 1979 and thereafter, in
-3- LRB9003110DPcwccr3
1 addition to such income tax, there is also hereby imposed the
2 Personal Property Tax Replacement Income Tax measured by net
3 income on every corporation (including Subchapter S
4 corporations), partnership and trust, for each taxable year
5 ending after June 30, 1979. Such taxes are imposed on the
6 privilege of earning or receiving income in or as a resident
7 of this State. The Personal Property Tax Replacement Income
8 Tax shall be in addition to the income tax imposed by
9 subsections (a) and (b) of this Section and in addition to
10 all other occupation or privilege taxes imposed by this State
11 or by any municipal corporation or political subdivision
12 thereof.
13 (d) Additional Personal Property Tax Replacement Income
14 Tax Rates. The personal property tax replacement income tax
15 imposed by this subsection and subsection (c) of this Section
16 in the case of a corporation, other than a Subchapter S
17 corporation, shall be an additional amount equal to 2.85% of
18 such taxpayer's net income for the taxable year, except that
19 beginning on January 1, 1981, and thereafter, the rate of
20 2.85% specified in this subsection shall be reduced to 2.5%,
21 and in the case of a partnership, trust or a Subchapter S
22 corporation shall be an additional amount equal to 1.5% of
23 such taxpayer's net income for the taxable year.
24 (e) Investment credit. A taxpayer shall be allowed a
25 credit against the Personal Property Tax Replacement Income
26 Tax for investment in qualified property.
27 (1) A taxpayer shall be allowed a credit equal to
28 .5% of the basis of qualified property placed in service
29 during the taxable year, provided such property is placed
30 in service on or after July 1, 1984. There shall be
31 allowed an additional credit equal to .5% of the basis of
32 qualified property placed in service during the taxable
33 year, provided such property is placed in service on or
34 after July 1, 1986, and the taxpayer's base employment
35 within Illinois has increased by 1% or more over the
-4- LRB9003110DPcwccr3
1 preceding year as determined by the taxpayer's employment
2 records filed with the Illinois Department of Employment
3 Security. Taxpayers who are new to Illinois shall be
4 deemed to have met the 1% growth in base employment for
5 the first year in which they file employment records with
6 the Illinois Department of Employment Security. The
7 provisions added to this Section by Public Act 85-1200
8 (and restored by Public Act 87-895) shall be construed as
9 declaratory of existing law and not as a new enactment.
10 If, in any year, the increase in base employment within
11 Illinois over the preceding year is less than 1%, the
12 additional credit shall be limited to that percentage
13 times a fraction, the numerator of which is .5% and the
14 denominator of which is 1%, but shall not exceed .5%.
15 The investment credit shall not be allowed to the extent
16 that it would reduce a taxpayer's liability in any tax
17 year below zero, nor may any credit for qualified
18 property be allowed for any year other than the year in
19 which the property was placed in service in Illinois. For
20 tax years ending on or after December 31, 1987, and on or
21 before December 31, 1988, the credit shall be allowed for
22 the tax year in which the property is placed in service,
23 or, if the amount of the credit exceeds the tax liability
24 for that year, whether it exceeds the original liability
25 or the liability as later amended, such excess may be
26 carried forward and applied to the tax liability of the 5
27 taxable years following the excess credit years if the
28 taxpayer (i) makes investments which cause the creation
29 of a minimum of 2,000 full-time equivalent jobs in
30 Illinois, (ii) is located in an enterprise zone
31 established pursuant to the Illinois Enterprise Zone Act
32 and (iii) is certified by the Department of Commerce and
33 Community Affairs as complying with the requirements
34 specified in clause (i) and (ii) by July 1, 1986. The
35 Department of Commerce and Community Affairs shall notify
-5- LRB9003110DPcwccr3
1 the Department of Revenue of all such certifications
2 immediately. For tax years ending after December 31,
3 1988, the credit shall be allowed for the tax year in
4 which the property is placed in service, or, if the
5 amount of the credit exceeds the tax liability for that
6 year, whether it exceeds the original liability or the
7 liability as later amended, such excess may be carried
8 forward and applied to the tax liability of the 5 taxable
9 years following the excess credit years. The credit shall
10 be applied to the earliest year for which there is a
11 liability. If there is credit from more than one tax year
12 that is available to offset a liability, earlier credit
13 shall be applied first.
14 (2) The term "qualified property" means property
15 which:
16 (A) is tangible, whether new or used,
17 including buildings and structural components of
18 buildings and signs that are real property, but not
19 including land or improvements to real property that
20 are not a structural component of a building such as
21 landscaping, sewer lines, local access roads,
22 fencing, parking lots, and other appurtenances;
23 (B) is depreciable pursuant to Section 167 of
24 the Internal Revenue Code, except that "3-year
25 property" as defined in Section 168(c)(2)(A) of that
26 Code is not eligible for the credit provided by this
27 subsection (e);
28 (C) is acquired by purchase as defined in
29 Section 179(d) of the Internal Revenue Code;
30 (D) is used in Illinois by a taxpayer who is
31 primarily engaged in manufacturing, or in mining
32 coal or fluorite, or in retailing; and
33 (E) has not previously been used in Illinois
34 in such a manner and by such a person as would
35 qualify for the credit provided by this subsection
-6- LRB9003110DPcwccr3
1 (e) or subsection (f).
2 (3) For purposes of this subsection (e),
3 "manufacturing" means the material staging and production
4 of tangible personal property by procedures commonly
5 regarded as manufacturing, processing, fabrication, or
6 assembling which changes some existing material into new
7 shapes, new qualities, or new combinations. For purposes
8 of this subsection (e) the term "mining" shall have the
9 same meaning as the term "mining" in Section 613(c) of
10 the Internal Revenue Code. For purposes of this
11 subsection (e), the term "retailing" means the sale of
12 tangible personal property or services rendered in
13 conjunction with the sale of tangible consumer goods or
14 commodities.
15 (4) The basis of qualified property shall be the
16 basis used to compute the depreciation deduction for
17 federal income tax purposes.
18 (5) If the basis of the property for federal income
19 tax depreciation purposes is increased after it has been
20 placed in service in Illinois by the taxpayer, the amount
21 of such increase shall be deemed property placed in
22 service on the date of such increase in basis.
23 (6) The term "placed in service" shall have the
24 same meaning as under Section 46 of the Internal Revenue
25 Code.
26 (7) If during any taxable year, any property ceases
27 to be qualified property in the hands of the taxpayer
28 within 48 months after being placed in service, or the
29 situs of any qualified property is moved outside Illinois
30 within 48 months after being placed in service, the
31 Personal Property Tax Replacement Income Tax for such
32 taxable year shall be increased. Such increase shall be
33 determined by (i) recomputing the investment credit which
34 would have been allowed for the year in which credit for
35 such property was originally allowed by eliminating such
-7- LRB9003110DPcwccr3
1 property from such computation and, (ii) subtracting such
2 recomputed credit from the amount of credit previously
3 allowed. For the purposes of this paragraph (7), a
4 reduction of the basis of qualified property resulting
5 from a redetermination of the purchase price shall be
6 deemed a disposition of qualified property to the extent
7 of such reduction.
8 (8) Unless the investment credit is extended by
9 law, the basis of qualified property shall not include
10 costs incurred after December 31, 2003, except for costs
11 incurred pursuant to a binding contract entered into on
12 or before December 31, 2003.
13 (f) Investment credit; Enterprise Zone.
14 (1) A taxpayer shall be allowed a credit against
15 the tax imposed by subsections (a) and (b) of this
16 Section for investment in qualified property which is
17 placed in service in an Enterprise Zone created pursuant
18 to the Illinois Enterprise Zone Act. For partners and for
19 shareholders of Subchapter S corporations, there shall be
20 allowed a credit under this subsection (f) to be
21 determined in accordance with the determination of income
22 and distributive share of income under Sections 702 and
23 704 and Subchapter S of the Internal Revenue Code. The
24 credit shall be .5% of the basis for such property. The
25 credit shall be available only in the taxable year in
26 which the property is placed in service in the Enterprise
27 Zone and shall not be allowed to the extent that it would
28 reduce a taxpayer's liability for the tax imposed by
29 subsections (a) and (b) of this Section to below zero.
30 For tax years ending on or after December 31, 1985, the
31 credit shall be allowed for the tax year in which the
32 property is placed in service, or, if the amount of the
33 credit exceeds the tax liability for that year, whether
34 it exceeds the original liability or the liability as
35 later amended, such excess may be carried forward and
-8- LRB9003110DPcwccr3
1 applied to the tax liability of the 5 taxable years
2 following the excess credit year. The credit shall be
3 applied to the earliest year for which there is a
4 liability. If there is credit from more than one tax year
5 that is available to offset a liability, the credit
6 accruing first in time shall be applied first.
7 (2) The term qualified property means property
8 which:
9 (A) is tangible, whether new or used,
10 including buildings and structural components of
11 buildings;
12 (B) is depreciable pursuant to Section 167 of
13 the Internal Revenue Code, except that "3-year
14 property" as defined in Section 168(c)(2)(A) of that
15 Code is not eligible for the credit provided by this
16 subsection (f);
17 (C) is acquired by purchase as defined in
18 Section 179(d) of the Internal Revenue Code;
19 (D) is used in the Enterprise Zone by the
20 taxpayer; and
21 (E) has not been previously used in Illinois
22 in such a manner and by such a person as would
23 qualify for the credit provided by this subsection
24 (f) or subsection (e).
25 (3) The basis of qualified property shall be the
26 basis used to compute the depreciation deduction for
27 federal income tax purposes.
28 (4) If the basis of the property for federal income
29 tax depreciation purposes is increased after it has been
30 placed in service in the Enterprise Zone by the taxpayer,
31 the amount of such increase shall be deemed property
32 placed in service on the date of such increase in basis.
33 (5) The term "placed in service" shall have the
34 same meaning as under Section 46 of the Internal Revenue
35 Code.
-9- LRB9003110DPcwccr3
1 (6) If during any taxable year, any property ceases
2 to be qualified property in the hands of the taxpayer
3 within 48 months after being placed in service, or the
4 situs of any qualified property is moved outside the
5 Enterprise Zone within 48 months after being placed in
6 service, the tax imposed under subsections (a) and (b) of
7 this Section for such taxable year shall be increased.
8 Such increase shall be determined by (i) recomputing the
9 investment credit which would have been allowed for the
10 year in which credit for such property was originally
11 allowed by eliminating such property from such
12 computation, and (ii) subtracting such recomputed credit
13 from the amount of credit previously allowed. For the
14 purposes of this paragraph (6), a reduction of the basis
15 of qualified property resulting from a redetermination of
16 the purchase price shall be deemed a disposition of
17 qualified property to the extent of such reduction.
18 (g) Jobs Tax Credit; Enterprise Zone and Foreign
19 Trade Zone or Sub-Zone.
20 (1) A taxpayer conducting a trade or business in an
21 enterprise zone or a High Impact Business designated by
22 the Department of Commerce and Community Affairs
23 conducting a trade or business in a federally designated
24 Foreign Trade Zone or Sub-Zone shall be allowed a credit
25 against the tax imposed by subsections (a) and (b) of
26 this Section in the amount of $500 per eligible employee
27 hired to work in the zone during the taxable year.
28 (2) To qualify for the credit:
29 (A) the taxpayer must hire 5 or more eligible
30 employees to work in an enterprise zone or federally
31 designated Foreign Trade Zone or Sub-Zone during the
32 taxable year;
33 (B) the taxpayer's total employment within the
34 enterprise zone or federally designated Foreign
35 Trade Zone or Sub-Zone must increase by 5 or more
-10- LRB9003110DPcwccr3
1 full-time employees beyond the total employed in
2 that zone at the end of the previous tax year for
3 which a jobs tax credit under this Section was
4 taken, or beyond the total employed by the taxpayer
5 as of December 31, 1985, whichever is later; and
6 (C) the eligible employees must be employed
7 180 consecutive days in order to be deemed hired for
8 purposes of this subsection.
9 (3) An "eligible employee" means an employee who
10 is:
11 (A) Certified by the Department of Commerce
12 and Community Affairs as "eligible for services"
13 pursuant to regulations promulgated in accordance
14 with Title II of the Job Training Partnership Act,
15 Training Services for the Disadvantaged or Title III
16 of the Job Training Partnership Act, Employment and
17 Training Assistance for Dislocated Workers Program.
18 (B) Hired after the enterprise zone or
19 federally designated Foreign Trade Zone or Sub-Zone
20 was designated or the trade or business was located
21 in that zone, whichever is later.
22 (C) Employed in the enterprise zone or Foreign
23 Trade Zone or Sub-Zone. An employee is employed in
24 an enterprise zone or federally designated Foreign
25 Trade Zone or Sub-Zone if his services are rendered
26 there or it is the base of operations for the
27 services performed.
28 (D) A full-time employee working 30 or more
29 hours per week.
30 (4) For tax years ending on or after December 31,
31 1985 and prior to December 31, 1988, the credit shall be
32 allowed for the tax year in which the eligible employees
33 are hired. For tax years ending on or after December 31,
34 1988, the credit shall be allowed for the tax year
35 immediately following the tax year in which the eligible
-11- LRB9003110DPcwccr3
1 employees are hired. If the amount of the credit exceeds
2 the tax liability for that year, whether it exceeds the
3 original liability or the liability as later amended,
4 such excess may be carried forward and applied to the tax
5 liability of the 5 taxable years following the excess
6 credit year. The credit shall be applied to the earliest
7 year for which there is a liability. If there is credit
8 from more than one tax year that is available to offset a
9 liability, earlier credit shall be applied first.
10 (5) The Department of Revenue shall promulgate such
11 rules and regulations as may be deemed necessary to carry
12 out the purposes of this subsection (g).
13 (6) The credit shall be available for eligible
14 employees hired on or after January 1, 1986.
15 (h) Investment credit; High Impact Business.
16 (1) Subject to subsection (b) of Section 5.5 of the
17 Illinois Enterprise Zone Act, a taxpayer shall be allowed
18 a credit against the tax imposed by subsections (a) and
19 (b) of this Section for investment in qualified property
20 which is placed in service by a Department of Commerce
21 and Community Affairs designated High Impact Business.
22 The credit shall be .5% of the basis for such property.
23 The credit shall not be available until the minimum
24 investments in qualified property set forth in Section
25 5.5 of the Illinois Enterprise Zone Act have been
26 satisfied and shall not be allowed to the extent that it
27 would reduce a taxpayer's liability for the tax imposed
28 by subsections (a) and (b) of this Section to below zero.
29 The credit applicable to such minimum investments shall
30 be taken in the taxable year in which such minimum
31 investments have been completed. The credit for
32 additional investments beyond the minimum investment by a
33 designated high impact business shall be available only
34 in the taxable year in which the property is placed in
35 service and shall not be allowed to the extent that it
-12- LRB9003110DPcwccr3
1 would reduce a taxpayer's liability for the tax imposed
2 by subsections (a) and (b) of this Section to below zero.
3 For tax years ending on or after December 31, 1987, the
4 credit shall be allowed for the tax year in which the
5 property is placed in service, or, if the amount of the
6 credit exceeds the tax liability for that year, whether
7 it exceeds the original liability or the liability as
8 later amended, such excess may be carried forward and
9 applied to the tax liability of the 5 taxable years
10 following the excess credit year. The credit shall be
11 applied to the earliest year for which there is a
12 liability. If there is credit from more than one tax
13 year that is available to offset a liability, the credit
14 accruing first in time shall be applied first.
15 Changes made in this subdivision (h)(1) by Public
16 Act 88-670 restore changes made by Public Act 85-1182 and
17 reflect existing law.
18 (2) The term qualified property means property
19 which:
20 (A) is tangible, whether new or used,
21 including buildings and structural components of
22 buildings;
23 (B) is depreciable pursuant to Section 167 of
24 the Internal Revenue Code, except that "3-year
25 property" as defined in Section 168(c)(2)(A) of that
26 Code is not eligible for the credit provided by this
27 subsection (h);
28 (C) is acquired by purchase as defined in
29 Section 179(d) of the Internal Revenue Code; and
30 (D) is not eligible for the Enterprise Zone
31 Investment Credit provided by subsection (f) of this
32 Section.
33 (3) The basis of qualified property shall be the
34 basis used to compute the depreciation deduction for
35 federal income tax purposes.
-13- LRB9003110DPcwccr3
1 (4) If the basis of the property for federal income
2 tax depreciation purposes is increased after it has been
3 placed in service in a federally designated Foreign Trade
4 Zone or Sub-Zone located in Illinois by the taxpayer, the
5 amount of such increase shall be deemed property placed
6 in service on the date of such increase in basis.
7 (5) The term "placed in service" shall have the
8 same meaning as under Section 46 of the Internal Revenue
9 Code.
10 (6) If during any taxable year ending on or before
11 December 31, 1996, any property ceases to be qualified
12 property in the hands of the taxpayer within 48 months
13 after being placed in service, or the situs of any
14 qualified property is moved outside Illinois within 48
15 months after being placed in service, the tax imposed
16 under subsections (a) and (b) of this Section for such
17 taxable year shall be increased. Such increase shall be
18 determined by (i) recomputing the investment credit which
19 would have been allowed for the year in which credit for
20 such property was originally allowed by eliminating such
21 property from such computation, and (ii) subtracting such
22 recomputed credit from the amount of credit previously
23 allowed. For the purposes of this paragraph (6), a
24 reduction of the basis of qualified property resulting
25 from a redetermination of the purchase price shall be
26 deemed a disposition of qualified property to the extent
27 of such reduction.
28 (7) Beginning with tax years ending after December
29 31, 1996, if a taxpayer qualifies for the credit under
30 this subsection (h) and thereby is granted a tax
31 abatement and the taxpayer relocates its entire facility
32 in violation of the explicit terms and length of the
33 contract under Section 18-183 of the Property Tax Code,
34 the tax imposed under subsections (a) and (b) of this
35 Section shall be increased for the taxable year in which
-14- LRB9003110DPcwccr3
1 the taxpayer relocated its facility by an amount equal to
2 the amount of credit received by the taxpayer under this
3 subsection (h).
4 (i) A credit shall be allowed against the tax imposed by
5 subsections (a) and (b) of this Section for the tax imposed
6 by subsections (c) and (d) of this Section. This credit
7 shall be computed by multiplying the tax imposed by
8 subsections (c) and (d) of this Section by a fraction, the
9 numerator of which is base income allocable to Illinois and
10 the denominator of which is Illinois base income, and further
11 multiplying the product by the tax rate imposed by
12 subsections (a) and (b) of this Section.
13 Any credit earned on or after December 31, 1986 under
14 this subsection which is unused in the year the credit is
15 computed because it exceeds the tax liability imposed by
16 subsections (a) and (b) for that year (whether it exceeds the
17 original liability or the liability as later amended) may be
18 carried forward and applied to the tax liability imposed by
19 subsections (a) and (b) of the 5 taxable years following the
20 excess credit year. This credit shall be applied first to
21 the earliest year for which there is a liability. If there
22 is a credit under this subsection from more than one tax year
23 that is available to offset a liability the earliest credit
24 arising under this subsection shall be applied first.
25 If, during any taxable year ending on or after December
26 31, 1986, the tax imposed by subsections (c) and (d) of this
27 Section for which a taxpayer has claimed a credit under this
28 subsection (i) is reduced, the amount of credit for such tax
29 shall also be reduced. Such reduction shall be determined by
30 recomputing the credit to take into account the reduced tax
31 imposed by subsection (c) and (d). If any portion of the
32 reduced amount of credit has been carried to a different
33 taxable year, an amended return shall be filed for such
34 taxable year to reduce the amount of credit claimed.
35 (j) Training expense credit. Beginning with tax years
-15- LRB9003110DPcwccr3
1 ending on or after December 31, 1986, a taxpayer shall be
2 allowed a credit against the tax imposed by subsection (a)
3 and (b) under this Section for all amounts paid or accrued,
4 on behalf of all persons employed by the taxpayer in Illinois
5 or Illinois residents employed outside of Illinois by a
6 taxpayer, for educational or vocational training in
7 semi-technical or technical fields or semi-skilled or skilled
8 fields, which were deducted from gross income in the
9 computation of taxable income. The credit against the tax
10 imposed by subsections (a) and (b) shall be 1.6% of such
11 training expenses. For partners and for shareholders of
12 subchapter S corporations, there shall be allowed a credit
13 under this subsection (j) to be determined in accordance with
14 the determination of income and distributive share of income
15 under Sections 702 and 704 and subchapter S of the Internal
16 Revenue Code.
17 Any credit allowed under this subsection which is unused
18 in the year the credit is earned may be carried forward to
19 each of the 5 taxable years following the year for which the
20 credit is first computed until it is used. This credit shall
21 be applied first to the earliest year for which there is a
22 liability. If there is a credit under this subsection from
23 more than one tax year that is available to offset a
24 liability the earliest credit arising under this subsection
25 shall be applied first.
26 (k) Research and development credit.
27 Beginning with tax years ending after July 1, 1990, a
28 taxpayer shall be allowed a credit against the tax imposed by
29 subsections (a) and (b) of this Section for increasing
30 research activities in this State. The credit allowed
31 against the tax imposed by subsections (a) and (b) shall be
32 equal to 6 1/2% of the qualifying expenditures for increasing
33 research activities in this State.
34 For purposes of this subsection, "qualifying
35 expenditures" means the qualifying expenditures as defined
-16- LRB9003110DPcwccr3
1 for the federal credit for increasing research activities
2 which would be allowable under Section 41 of the Internal
3 Revenue Code and which are conducted in this State,
4 "qualifying expenditures for increasing research activities
5 in this State" means the excess of qualifying expenditures
6 for the taxable year in which incurred over qualifying
7 expenditures for the base period, "qualifying expenditures
8 for the base period" means the average of the qualifying
9 expenditures for each year in the base period, and "base
10 period" means the 3 taxable years immediately preceding the
11 taxable year for which the determination is being made.
12 Any credit in excess of the tax liability for the taxable
13 year may be carried forward. A taxpayer may elect to have the
14 unused credit shown on its final completed return carried
15 over as a credit against the tax liability for the following
16 5 taxable years or until it has been fully used, whichever
17 occurs first.
18 If an unused credit is carried forward to a given year
19 from 2 or more earlier years, that credit arising in the
20 earliest year will be applied first against the tax liability
21 for the given year. If a tax liability for the given year
22 still remains, the credit from the next earliest year will
23 then be applied, and so on, until all credits have been used
24 or no tax liability for the given year remains. Any
25 remaining unused credit or credits then will be carried
26 forward to the next following year in which a tax liability
27 is incurred, except that no credit can be carried forward to
28 a year which is more than 5 years after the year in which the
29 expense for which the credit is given was incurred.
30 Unless extended by law, the credit shall not include
31 costs incurred after December 31, 1999, except for costs
32 incurred pursuant to a binding contract entered into on or
33 before December 31, 1999.
34 (l) Environmental Remediation Tax Credit.
35 (i) For tax years ending after December 31, 1997
-17- LRB9003110DPcwccr3
1 and on or before December 31, 2001, a taxpayer shall be
2 allowed a credit against the tax imposed by subsections
3 (a) and (b) of this Section for certain amounts paid for
4 unreimbursed eligible remediation costs, as specified in
5 this subsection. For purposes of this Section,
6 "unreimbursed eligible remediation costs" means costs
7 approved by the Illinois Environmental Protection Agency
8 ("Agency") under Section 58.14 of the Environmental
9 Protection Act that were paid in performing environmental
10 remediation at a site for which a No Further Remediation
11 Letter was issued by the Agency and recorded under
12 Section 58.10 of the Environmental Protection Act, and
13 does not mean approved eligible remediation costs that
14 are at any time deducted under the provisions of the
15 Internal Revenue Code. The credit must be claimed for
16 the taxable year in which Agency approval of the eligible
17 remediation costs is granted. In no event shall
18 unreimbursed eligible remediation costs include any costs
19 taken into account in calculating an environmental
20 remediation credit granted against a tax imposed under
21 the provisions of the Internal Revenue Code. The credit
22 is not available to any taxpayer if the taxpayer or any
23 related party caused or contributed to, in any material
24 respect, a release of regulated substances on, in, or
25 under the site that was identified and addressed by the
26 remedial action pursuant to the Site Remediation Program
27 of the Environmental Protection Act. After the Pollution
28 Control Board rules are adopted pursuant to the Illinois
29 Administrative Procedure Act for the administration and
30 enforcement of Section 58.9 of the Environmental
31 Protection Act, determinations as to credit availability
32 for purposes of this Section shall be made consistent
33 with those rules. For purposes of this Section,
34 "taxpayer" includes a person whose tax attributes the
35 taxpayer has succeeded to under Section 381 of the
-18- LRB9003110DPcwccr3
1 Internal Revenue Code and "related party" includes the
2 persons disallowed a deduction for losses by paragraphs
3 (b), (c), and (f)(1) of Section 267 of the Internal
4 Revenue Code by virtue of being a related taxpayer, as
5 well as any of its partners. The credit allowed against
6 the tax imposed by subsections (a) and (b) shall be equal
7 to 25% of the unreimbursed eligible remediation costs in
8 excess of $100,000 per site, except that the $100,000
9 threshold shall not apply to any site contained in an
10 enterprise zone and located in a census tract that is
11 located in a minor civil division and place or county
12 that has been determined by the Department of Commerce
13 and Community Affairs to contain a majority of households
14 consisting of low and moderate income persons. The total
15 credit allowed shall not exceed $40,000 per year with a
16 maximum total of $150,000 per site. For partners and
17 shareholders of subchapter S corporations, there shall be
18 allowed a credit under this subsection to be determined
19 in accordance with the determination of income and
20 distributive share of income under Sections 702 and 704
21 of subchapter S of the Internal Revenue Code.
22 (ii) A credit allowed under this subsection that is
23 unused in the year the credit is earned may be carried
24 forward to each of the 5 taxable years following the year
25 for which the credit is first earned until it is used.
26 The term "unused credit" does not include any amounts of
27 unreimbursed eligible remediation costs in excess of the
28 maximum credit per site authorized under paragraph (i).
29 This credit shall be applied first to the earliest year
30 for which there is a liability. If there is a credit
31 under this subsection from more than one tax year that is
32 available to offset a liability, the earliest credit
33 arising under this subsection shall be applied first. A
34 credit allowed under this subsection may be sold to a
35 buyer as part of a sale of all or part of the remediation
-19- LRB9003110DPcwccr3
1 site for which the credit was granted. The purchaser of
2 a remediation site and the tax credit shall succeed to
3 the unused credit and remaining carry-forward period of
4 the seller. To perfect the transfer, the assignor shall
5 record the transfer in the chain of title for the site
6 and provide written notice to the Director of the
7 Illinois Department of Revenue of the assignor's intent
8 to sell the remediation site and the amount of the tax
9 credit to be transferred as a portion of the sale. In no
10 event may a credit be transferred to any taxpayer if the
11 taxpayer or a related party would not be eligible under
12 the provisions of subsection (i).
13 (iii) For purposes of this Section, the term "site"
14 shall have the same meaning as under Section 58.2 of the
15 Environmental Protection Act.
16 (Source: P.A. 88-45; 88-89; 88-141; 88-547, eff. 6-30-94;
17 88-670, eff. 12-2-94; 89-235, eff. 8-4-95; 89-519, eff.
18 7-18-96; 89-591, eff. 8-1-96.)
19 Section 15. The Environmental Protection Act is amended
20 by changing Sections 58, 58.2, and 58.3 and adding Sections
21 58.13 and 58.14 as follows:
22 (415 ILCS 5/58)
23 Sec. 58. Intent. It is the intent of this Title:
24 (1) To establish a risk-based system of remediation
25 based on protection of human health and the environment
26 relative to present and future uses of the site.
27 (2) To assure that the land use for which remedial
28 action was undertaken will not be modified without
29 consideration of the adequacy of such remedial action for
30 the new land use.
31 (3) To provide incentives to the private sector to
32 undertake remedial action.
33 (4) To establish expeditious alternatives for the
-20- LRB9003110DPcwccr3
1 review of site investigation and remedial activities,
2 including a privatized review process.
3 (5) To assure that the resources of the Hazardous
4 Waste Fund are used in a manner that is protective of
5 human health and the environment relative to present and
6 future uses of the site and surrounding area.
7 (6) To provide assistance to units of local
8 government for remediation of properties contaminated or
9 potentially contaminated by commercial, industrial, or
10 other uses and to establish and provide for the
11 administration of the Brownfields Redevelopment Fund.
12 (Source: P.A. 89-431, eff. 12-15-95; 89-443, eff. 7-1-96.)
13 (415 ILCS 5/58.2)
14 Sec. 58.2. Definitions. The following words and phrases
15 when used in this Title shall have the meanings given to them
16 in this Section unless the context clearly indicates
17 otherwise:
18 "Agrichemical facility" means a site on which
19 agricultural pesticides are stored or handled, or both, in
20 preparation for end use, or distributed. The term does not
21 include basic manufacturing facility sites.
22 "ASTM" means the American Society for Testing and
23 Materials.
24 "Area background" means concentrations of regulated
25 substances that are consistently present in the environment
26 in the vicinity of a site that are the result of natural
27 conditions or human activities, and not the result solely of
28 releases at the site.
29 "Brownfields site" or "brownfields" means a parcel of
30 real property, or a portion of the parcel, that has actual or
31 perceived contamination and an active potential for
32 redevelopment.
33 "Class I groundwater" means groundwater that meets the
34 Class I Potable Resource groundwater criteria set forth in
-21- LRB9003110DPcwccr3
1 the Board rules adopted under the Illinois Groundwater
2 Protection Act.
3 "Class III groundwater" means groundwater that meets the
4 Class III Special Resource Groundwater criteria set forth in
5 the Board rules adopted under the Illinois Groundwater
6 Protection Act.
7 "Carcinogen" means a contaminant that is classified as a
8 Category A1 or A2 Carcinogen by the American Conference of
9 Governmental Industrial Hygienists; or a Category 1 or 2A/2B
10 Carcinogen by the World Health Organizations International
11 Agency for Research on Cancer; or a "Human Carcinogen" or
12 "Anticipated Human Carcinogen" by the United States
13 Department of Health and Human Service National Toxicological
14 Program; or a Category A or B1/B2 Carcinogen by the United
15 States Environmental Protection Agency in Integrated Risk
16 Information System or a Final Rule issued in a Federal
17 Register notice by the USEPA as of the effective date of this
18 amendatory Act of 1995.
19 "Licensed Professional Engineer" (LPE) means a person,
20 corporation, or partnership licensed under the laws of this
21 State to practice professional engineering.
22 "Man-made pathway" means constructed routes that may
23 allow for the transport of regulated substances including,
24 but not limited to, sewers, utility lines, utility vaults,
25 building foundations, basements, crawl spaces, drainage
26 ditches, or previously excavated and filled areas.
27 "Municipality" means an incorporated city, village, or
28 town in this State. "Municipality" does not mean a township,
29 town when that term is used as the equivalent of a township,
30 incorporated town that has superseded a civil township,
31 county, or school district, park district, sanitary district,
32 or similar governmental district.
33 "Natural pathway" means natural routes for the transport
34 of regulated substances including, but not limited to, soil,
35 groundwater, sand seams and lenses, and gravel seams and
-22- LRB9003110DPcwccr3
1 lenses.
2 "Person" means individual, trust, firm, joint stock
3 company, joint venture, consortium, commercial entity,
4 corporation (including a government corporation),
5 partnership, association, State, municipality, commission,
6 political subdivision of a State, or any interstate body
7 including the United States Government and each department,
8 agency, and instrumentality of the United States.
9 "Regulated substance" means any hazardous substance as
10 defined under Section 101(14) of the Comprehensive
11 Environmental Response, Compensation, and Liability Act of
12 1980 (P.L. 96-510) and petroleum products including crude oil
13 or any fraction thereof, natural gas, natural gas liquids,
14 liquefied natural gas, or synthetic gas usable for fuel (or
15 mixtures of natural gas and such synthetic gas).
16 "Remedial action" means activities associated with
17 compliance with the provisions of Sections 58.6 and 58.7.
18 "Remediation Applicant" (RA) means any person seeking to
19 perform or performing investigative or remedial activities
20 under this Title, including the owner or operator of the site
21 or persons authorized by law or consent to act on behalf of
22 or in lieu of the owner or operator of the site.
23 "Remediation costs" means reasonable costs paid for
24 investigating and remediating regulated substances of concern
25 consistent with the remedy selected for a site. For purposes
26 of Section 58.14, "remediation costs" shall not include costs
27 incurred prior to January 1, 1998, costs incurred after the
28 issuance of a No Further Remediation Letter under Section
29 58.10 of this Act, or costs incurred more than 12 months
30 prior to acceptance into the Site Remediation Program.
31 "Residential property" means any real property that is
32 used for habitation by individuals and other property uses
33 defined by Board rules such as education, health care, child
34 care and related uses.
35 "Site" means any single location, place, tract of land or
-23- LRB9003110DPcwccr3
1 parcel of property, or portion thereof, including contiguous
2 property separated by a public right-of-way.
3 "Regulated substance of concern" means any contaminant
4 that is expected to be present at the site based upon past
5 and current land uses and associated releases that are known
6 to the Remediation Applicant based upon reasonable inquiry.
7 (Source: P.A. 89-431, eff. 12-15-95; 89-443, eff. 7-1-96.)
8 (415 ILCS 5/58.3)
9 Sec. 58.3. Site Investigation and Remedial Activities
10 Program; Brownfields Redevelopment Fund.
11 (a) The General Assembly hereby establishes by this
12 Title a Site Investigation and Remedial Activities Program
13 for sites subject to this Title. This program shall be
14 administered by the Illinois Environmental Protection Agency
15 under this Title XVII and rules adopted by the Illinois
16 Pollution Control Board.
17 (b) (1) The General Assembly hereby creates within the
18 State Treasury a special fund to be known as the
19 Brownfields Redevelopment Fund, which shall be used and
20 administered by the Agency as provided in Section 58.13
21 of this Act and the rules adopted under that Section.
22 The Brownfields Redevelopment Fund ("Fund") shall contain
23 moneys transferred from the Response Contractors
24 Indemnification Fund and other moneys made available for
25 deposit into the Fund.
26 (2) The State Treasurer, ex officio, shall be the
27 custodian of the Fund, and the Comptroller shall direct
28 payments from the Fund upon vouchers properly certified
29 by the Agency. The Treasurer shall credit to the Fund
30 interest earned on moneys contained in the Fund. The
31 Agency shall have the authority to accept, receive, and
32 administer on behalf of the State any grants, gifts,
33 loans, reimbursements or payments for services, or other
34 moneys made available to the State from any source for
-24- LRB9003110DPcwccr3
1 purposes of the Fund. Those moneys shall be deposited
2 into the Fund, unless otherwise required by the
3 Environmental Protection Act or by federal law.
4 (3) Pursuant to appropriation, all moneys in the
5 Fund shall be used by the Agency for the purposes set
6 forth in Section 58.13 of this Act and to cover the
7 Agency's costs of program development and administration
8 under that Section.
9 (Source: P.A. 89-431, eff. 12-15-95; 89-443, eff. 7-1-96.)
10 (415 ILCS 5/58.13 new)
11 Sec. 58.13. Brownfields Redevelopment Grant Program.
12 (a)(1) The Agency shall establish and administer a
13 program of grants to be known as the Brownfields
14 Redevelopment Grant Program to provide municipalities in
15 Illinois with financial assistance to be used for
16 coordination of activities related to brownfields
17 redevelopment, including but not limited to
18 identification of brownfields sites, site investigation
19 and determination of remediation objectives and related
20 plans and reports, and development of remedial action
21 plans, but not including the implementation of remedial
22 action plans and remedial action completion reports. The
23 plans and reports shall be developed in accordance with
24 Title XVII of this Act.
25 (2) Grants shall be awarded on a competitive basis
26 subject to availability of funding. Criteria for
27 awarding grants shall include, but shall not be limited
28 to the following:
29 (A) problem statement and needs assessment;
30 (B) community-based planning and involvement;
31 (C) implementation planning; and
32 (D) long-term benefits and sustainability.
33 (3) The Agency may give weight to geographic
34 location to enhance geographic distribution of grants
-25- LRB9003110DPcwccr3
1 across this State.
2 (4) Grants shall be limited to a maximum of
3 $120,000 and no municipality shall receive more than one
4 grant under this Section.
5 (5) Grant amounts shall not exceed 70% of the
6 project amount, with the remainder to be provided by the
7 municipality as local matching funds.
8 (b) The Agency shall have the authority to enter into
9 any contracts or agreements that may be necessary to carry
10 out its duties or responsibilities under this Section. The
11 Agency shall have the authority to adopt rules setting forth
12 procedures and criteria for administering the Brownfields
13 Redevelopment Grant Program. The rules adopted by the Agency
14 may include but shall not be limited to the following:
15 (1) purposes for which grants are available;
16 (2) application periods and content of
17 applications;
18 (3) procedures and criteria for Agency review of
19 grant applications, grant approvals and denials, and
20 grantee acceptance;
21 (4) grant payment schedules;
22 (5) grantee responsibilities for work schedules,
23 work plans, reports, and record keeping;
24 (6) evaluation of grantee performance, including
25 but not limited to auditing and access to sites and
26 records;
27 (7) requirements applicable to contracting and
28 subcontracting by the grantee;
29 (8) penalties for noncompliance with grant
30 requirements and conditions, including stop-work orders,
31 termination of grants, and recovery of grant funds;
32 (9) indemnification of this State and the Agency by
33 the grantee; and
34 (10) manner of compliance with the Local Government
35 Professional Services Selection Act.
-26- LRB9003110DPcwccr3
1 (415 ILCS 5/58.14 new)
2 Sec. 58.14. Environmental Remediation Tax Credit review.
3 (a) Prior to applying for the Environmental Remediation
4 Tax Credit under Section 201 of the Illinois Income Tax Act,
5 Remediation Applicants shall first submit to the Agency an
6 application for review of remediation costs. The application
7 and review process shall be conducted in accordance with the
8 requirements of this Section and the rules adopted under
9 subsection (g). A preliminary review of the estimated
10 remediation costs for development and implementation of the
11 Remedial Action Plan may be obtained in accordance with
12 subsection (d).
13 (b) No application for review shall be submitted until a
14 No Further Remediation Letter has been issued by the Agency
15 and recorded in the chain of title for the site in accordance
16 with Section 58.10. The Agency shall review the application
17 to determine whether the costs submitted are remediation
18 costs, and whether the costs incurred are reasonable. The
19 application shall be on forms prescribed and provided by the
20 Agency. At a minimum, the application shall include the
21 following:
22 (1) information identifying the Remediation
23 Applicant and the site for which the tax credit is being
24 sought and the date of acceptance of the site into the
25 Site Remediation Program;
26 (2) a copy of the No Further Remediation Letter
27 with official verification that the letter has been
28 recorded in the chain of title for the site and a
29 demonstration that the site for which the application is
30 submitted is the same site as the one for which the No
31 Further Remediation Letter is issued;
32 (3) a demonstration that the release of the
33 regulated substances of concern for which the No Further
34 Remediation Letter was issued were not caused or
35 contributed to in any material respect by the Remediation
-27- LRB9003110DPcwccr3
1 Applicant. After the Pollution Control Board rules are
2 adopted pursuant to the Illinois Administrative Procedure
3 Act for the administration and enforcement of Section
4 58.9 of the Environmental Protection Act, determinations
5 as to credit availability shall be made consistent with
6 those rules;
7 (4) an itemization and documentation, including
8 receipts, of the remediation costs incurred;
9 (5) a demonstration that the costs incurred are
10 remediation costs as defined in this Act and its rules;
11 (6) a demonstration that the costs submitted for
12 review were incurred by the Remediation Applicant who
13 received the No Further Remediation Letter;
14 (7) an application fee in the amount set forth in
15 subsection (e) for each site for which review of
16 remediation costs is requested and, if applicable,
17 certification from the Department of Commerce and
18 Community Affairs that the site is located in an
19 enterprise zone and is located in a census tract that is
20 located in a minor civil division and place or county
21 that has been determined by the Department of Commerce
22 and Community Affairs to contain a majority of households
23 consisting of low and moderate income persons;
24 (8) any other information deemed appropriate by the
25 Agency.
26 (c) Within 60 days after receipt by the Agency of an
27 application meeting the requirements of subsection (b), the
28 Agency shall issue a letter to the applicant approving,
29 disapproving, or modifying the remediation costs submitted in
30 the application. If the remediation costs are approved as
31 submitted, the Agency's letter shall state the amount of the
32 remediation costs to be applied toward the Environmental
33 Remediation Tax Credit. If an application is disapproved or
34 approved with modification of remediation costs, the Agency's
35 letter shall set forth the reasons for the disapproval or
-28- LRB9003110DPcwccr3
1 modification and state the amount of the remediation costs,
2 if any, to be applied toward the Environmental Remediation
3 Tax Credit.
4 If a preliminary review of a budget plan has been
5 obtained under subsection (d), the Remediation Applicant may
6 submit, with the application and supporting documentation
7 under subsection (b), a copy of the Agency's final
8 determination accompanied by a certification that the actual
9 remediation costs incurred for the development and
10 implementation of the Remedial Action Plan are equal to or
11 less than the costs approved in the Agency's final
12 determination on the budget plan. The certification shall be
13 signed by the Remediation Applicant and notarized. Based on
14 that submission, the Agency shall not be required to conduct
15 further review of the costs incurred for development and
16 implementation of the Remedial Action Plan and may approve
17 costs as submitted.
18 Within 35 days after receipt of an Agency letter
19 disapproving or modifying an application for approval of
20 remediation costs, the Remediation Applicant may appeal the
21 Agency's decision to the Board in the manner provided for the
22 review of permits in Section 40 of this Act.
23 (d) (1) A Remediation Applicant may obtain a preliminary
24 review of estimated remediation costs for the development
25 and implementation of the Remedial Action Plan by
26 submitting a budget plan along with the Remedial Action
27 Plan. The budget plan shall be set forth on forms
28 prescribed and provided by the Agency and shall include
29 but shall not be limited to line item estimates of the
30 costs associated with each line item (such as personnel,
31 equipment, and materials) that the Remediation Applicant
32 anticipates will be incurred for the development and
33 implementation of the Remedial Action Plan. The Agency
34 shall review the budget plan along with the Remedial
35 Action Plan to determine whether the estimated costs
-29- LRB9003110DPcwccr3
1 submitted are remediation costs and whether the costs
2 estimated for the activities are reasonable.
3 (2) If the Remedial Action Plan is amended by the
4 Remediation Applicant or as a result of Agency action,
5 the corresponding budget plan shall be revised
6 accordingly and resubmitted for Agency review.
7 (3) The budget plan shall be accompanied by the
8 applicable fee as set forth in subsection (e).
9 (4) Submittal of a budget plan shall be deemed an
10 automatic 60-day waiver of the Remedial Action Plan
11 review deadlines set forth in this Section and its rules.
12 (5) Within the applicable period of review, the
13 Agency shall issue a letter to the Remediation Applicant
14 approving, disapproving, or modifying the estimated
15 remediation costs submitted in the budget plan. If a
16 budget plan is disapproved or approved with modification
17 of estimated remediation costs, the Agency's letter shall
18 set forth the reasons for the disapproval or
19 modification.
20 (6) Within 35 days after receipt of an Agency
21 letter disapproving or modifying a budget plan, the
22 Remediation Applicant may appeal the Agency's decision to
23 the Board in the manner provided for the review of
24 permits in Section 40 of this Act.
25 (e) The fees for reviews conducted under this Section
26 are in addition to any other fees or payments for Agency
27 services rendered pursuant to the Site Remediation Program
28 and shall be as follows:
29 (1) The fee for an application for review of
30 remediation costs shall be $1,000 for each site reviewed.
31 (2) The fee for the review of the budget plan
32 submitted under subsection (d) shall be $500 for each
33 site reviewed.
34 (3) In the case of a Remediation Applicant
35 submitting for review total remediation costs of $100,000
-30- LRB9003110DPcwccr3
1 or less for a site located within an enterprise zone (as
2 set forth in paragraph (i) of subsection (l) of Section
3 201 of the Illinois Income Tax Act), the fee for an
4 application for review of remediation costs shall be $250
5 for each site reviewed. For those sites, there shall be
6 no fee for review of a budget plan under subsection (d).
7 The application fee shall be made payable to the State of
8 Illinois, for deposit into the Hazardous Waste Fund.
9 Pursuant to appropriation, the Agency shall use the fees
10 collected under this subsection for development and
11 administration of the review program.
12 (f) The Agency shall have the authority to enter into
13 any contracts or agreements that may be necessary to carry
14 out its duties and responsibilities under this Section.
15 (g) Within 6 months after the effective date of this
16 amendatory Act of 1997, the Agency shall propose rules
17 prescribing procedures and standards for its administration
18 of this Section. Within 6 months after receipt of the
19 Agency's proposed rules, the Board shall adopt on second
20 notice, pursuant to Sections 27 and 28 of this Act and the
21 Illinois Administrative Procedure Act, rules that are
22 consistent with this Section. Prior to the effective date of
23 rules adopted under this Section, the Agency may conduct
24 reviews of applications under this Section and the Agency is
25 further authorized to distribute guidance documents on costs
26 that are eligible or ineligible as remediation costs.
27 (Source: P.A. 88-45; 88-89; 88-141; 88-547, eff. 6-30-94;
28 88-670, eff. 12-2-94; 89-235, eff. 8-4-95; 89-519, eff.
29 7-18-96; 89-591, eff. 8-1-96.)
30 Section 15. The Response Action Contractor
31 Indemnification Act is amended by changing Section 5 as
32 follows:
33 (415 ILCS 100/5) (from Ch. 111 1/2, par. 7205)
-31- LRB9003110DPcwccr3
1 Sec. 5. (a) There is hereby created the Response
2 Contractors Indemnification Fund. The State Treasurer, ex
3 officio, shall be custodian of the Fund, and the Comptroller
4 shall direct payments from the Fund upon vouchers properly
5 certified by the Attorney General in accordance with Section
6 4. The Treasurer shall credit interest on the Fund to the
7 Fund.
8 (b) Every State response action contract shall provide
9 that 5% of each payment to be made by the State under the
10 contract shall be paid by the State directly into the
11 Response Contractors Indemnification Fund rather than to the
12 contractor, except that when there is more than $4,000,000 in
13 the Fund at the beginning of a State fiscal year, State
14 response action contracts during that fiscal year need not
15 provide that 5% of each payment made under the contract be
16 paid into the Fund. When only a portion of a contract
17 relates to a remedial or response action, or to the
18 identification, handling, storage, treatment or disposal of a
19 pollutant, the contract shall provide that only that portion
20 is subject to this subsection.
21 (c) Within 30 days after the effective date of this
22 amendatory Act of 1997, the Comptroller shall order
23 transferred and the Treasurer shall transfer $1,200,000 from
24 the Response Contractors Indemnification Fund to the
25 Brownfields Redevelopment Fund. The Comptroller shall order
26 transferred and the Treasurer shall transfer $1,200,000 from
27 the Response Contractors Indemnification Fund to the
28 Brownfields Redevelopment Fund on the first day of fiscal
29 years 1999, 2000, 2001, and 2002.
30 (Source: P.A. 89-254, eff. 8-8-95.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.".
-32- LRB9003110DPcwccr3
1 Submitted on , 1997.
2 ______________________________ _____________________________
3 Senator Watson Representative Holbrook
4 ______________________________ _____________________________
5 Senator Mahar Representative Novak
6 ______________________________ _____________________________
7 Senator Maitland Representative Hannig
8 ______________________________ _____________________________
9 Senator Farley Representative Churchill
10 ______________________________ _____________________________
11 Senator Clayborne Representative Stephens
12 Committee for the Senate Committee for the House