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90_SB0939sam001
LRB9003110KDccam
1 AMENDMENT TO SENATE BILL 939
2 AMENDMENT NO. . Amend Senate Bill 939 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Illinois Income Tax Act is amended by
5 adding Sections 211 and 212 as follows:
6 (35 ILCS 5/211 new)
7 Sec. 211 Brownfields Remediation Tax Credit.
8 (a) Beginning with tax years ending on or after January
9 1, 1997, and subject to the requirements, restrictions, and
10 terms of the Brownfields Rehabilitation and Redevelopment
11 Program in Title XVIII of the Environmental Protection Act,
12 each taxpayer that (i) has entered into a development
13 agreement with the Department of Commerce and Community
14 Affairs, has received a Brownfields Remediation Tax Credit
15 allocation, and receives a certificate of eligibility, or
16 (ii) is the transferee of any such credit, is entitled to a
17 credit against the tax imposed by subsections (a) and (b) of
18 Section 201 of this Act.
19 (b) The amount of the credit shall be determined by the
20 Department of Commerce and Community Affairs upon review and
21 approval of a Brownfields Rehabilitation and Redevelopment
22 application and shall be provided in the development
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1 agreement. If applicable, the Department of Commerce and
2 Community Affairs shall provide an annual tax credit
3 distribution schedule if the term of the development
4 agreement exceeds one year. The total Brownfields
5 Remediation Tax Credit allocation shall be an amount equal to
6 the lesser of (i) 100% of the remediation costs expended for
7 an approved Brownfields project or (ii) 100% of the projected
8 present value of new State tax revenues generated by an
9 approved Brownfields project.
10 (c) If the amount of the tax credit exceeds the tax
11 liability for the year, the excess may be carried forward and
12 applied to the tax liability of any year within the term of
13 the development agreement; however, in no case may the credit
14 claimed under this Section in any taxable year exceed the new
15 State tax revenue generated by the measurable economic growth
16 for that year.
17 (d) The credit claimed under this Section may be sold,
18 transferred, or assigned in the year the Department of
19 Commerce and Community Affairs grants a Brownfields
20 Remediation Tax Credit allocation or any time thereafter
21 until the credit has been claimed, provided that the
22 transferee shall take the credits subject to the development
23 agreement.
24 (e) In no event shall a credit issued under this Section
25 reduce the taxpayer's liability under this Act to less than
26 zero.
27 (f) No credit may be claimed under this Section if the
28 taxpayer has claimed the Small Business Remediation Tax
29 Credit under Section 212 of this Act.
30 (g) This Section is exempt from the provisions of
31 Section 250 of this Act.
32 (35 ILCS 5/212 new)
33 Sec. 212. The Small Business Remediation Tax Credit.
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1 For tax years beginning on or after January 1, 1997 and
2 ending on or before December 30, 2002, a taxpayer that
3 employs no more than 50 employees and undertakes the
4 expansion, rehabilitation, or redevelopment of a Brownfields
5 site project under Title XVIII of the Environmental
6 Protection Act that generates measurable economic growth
7 resulting in either a revenue neutral benefit or a net fiscal
8 benefit is entitled to a credit against the tax imposed by
9 subsections (a) and (b) of Section 201 of this Act in an
10 amount not to exceed $25,000 per project. The Department, in
11 cooperation with the Department of Commerce and Community
12 Affairs, shall adopt a tax credit schedule as prescribed in
13 Section 59.3 of Title XVIII of the Environmental Protection
14 Act within 120 days of the effective date of this amendatory
15 Act of 1997 that shall provide the amount of credits
16 available for measurable economic growth. No credit may be
17 claimed under this Section if the taxpayer has claimed the
18 Brownfields Remediation Tax Credit under Section 211 of this
19 Act.
20 Section 10. The Environmental Protection Act is amended
21 by adding Title XVIII as follows:
22 (415 ILCS 5/Title XVIII heading new)
23 TITLE XVIII: BROWNFIELDS REHABILITATION
24 AND REDEVELOPMENT PROGRAM
25 (415 ILCS 5/59 new)
26 Sec. 59. Intent. It is the intent of this Title:
27 (1) To encourage private sector voluntary remediation of
28 environmentally-distressed and underutilized sites that
29 demonstrate a potential to generate measurable economic
30 growth in Illinois if expanded, rehabilitated, or
31 redeveloped.
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1 (2) To provide the private sector with incentives to
2 undertake "Brownfields" projects that will have a net fiscal
3 benefit or at a minimum, a revenue neutral impact on State
4 tax revenue.
5 (3) To establish criteria upon which the State may award
6 incentives.
7 (415 ILCS 5/59.1 new)
8 Sec. 59.1. Definitions. As used in this Title:
9 "Applicant" means any person as defined by this Act who
10 applies to proceed under this Title.
11 "Application" means an application submitted to the
12 Agency and the Department of Commerce and Community Affairs
13 for enrollment in the Brownfields Rehabilitation and
14 Redevelopment Program.
15 "Approved Brownfields Project" means a Brownfields site
16 that is the subject of an expansion, rehabilitation, or
17 redevelopment plan and that has been approved for incentives
18 under this Title.
19 "Brownfields Site" means any site that is subject to
20 environmental remediation or reclamation pursuant to a State
21 administered environmental remediation or reclamation
22 program, including but not limited to, programs administered
23 by the Agency, the Department of Agriculture, or the
24 Department of Natural Resources and that demonstrates a
25 potential for expansion, rehabilitation, or redevelopment.
26 Brownfields sites shall include, but not be limited to, sites
27 eligible for enrollment in the Site Investigation and
28 Remedial Activities Program as provided in Title XVII of this
29 Act administered by the Agency, facilities subject to
30 asbestos or lead abatement as provided in this Act,
31 facilities eligible for remediation pursuant to the
32 Agrichemical Facility Response Action Program as provided in
33 the Illinois Pesticide Act, surface coal mines subject to
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1 environmental protection reclamation as provided in the
2 Surface Coal Mining Land Conservation and Reclamation Act,
3 and abandoned mined lands and related water reclamation as
4 provided in the Abandoned Mined Lands and Water Reclamation
5 Act.
6 "Certificate of Eligibility" means an annual certificate
7 issued by the Department of Commerce and Community Affairs at
8 the request of an applicant or transferee to claim the
9 Brownfields Remediation Tax Credit granted in an approval
10 letter and development agreement.
11 "DCCA" means the Illinois Department of Commerce and
12 Community Affairs.
13 "Development Agreement" means an agreement entered into
14 between an applicant and DCCA providing types, amount, and
15 timing of incentives available for an approved Brownfields
16 project, and setting forth terms and conditions, including
17 benchmarks for achieving measurable economic growth.
18 "Measurable Economic Growth" includes, but is not limited
19 to, factors such as the number of jobs created, the number of
20 jobs retained if demonstrated such jobs would otherwise be
21 lost, the capital investment, capital improvements, the
22 number of construction related jobs, increased sales,
23 material purchases, other increases in service and
24 operational expenditures, and other factors established by
25 DCCA.
26 "Net Fiscal Benefit" means new State tax revenue
27 resulting from implementation of a development agreement in
28 excess of the cost of any incentives granted under this
29 Title.
30 "Remediation Costs" includes costs associated with
31 investigating the environmental condition of, remediating, or
32 performing corrective action on a Brownfields site in order
33 to obtain a "No Further Remediation Letter" or other similar
34 State authorization or approval indicating completed
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1 investigation, remediation, or reclamation in satisfaction of
2 State requirements with respect to an approved Brownfields
3 project.
4 "Revenue Neutral Impact" means new State tax revenue
5 resulting from implementation of a development agreement
6 equal to the cost of any incentives granted under this Title.
7 (415 ILCS 5/59.2 new)
8 Sec. 59.2 Brownfields Rehabilitation and Redevelopment
9 Program. The General Assembly hereby establishes the Illinois
10 Brownfields Rehabilitation and Redevelopment Program. The
11 Program shall be administered by DCCA as provided under this
12 Title.
13 (415 ILCS 5/59.3 new)
14 Sec. 59.3 Program incentives.
15 (a) The Brownfields Remediation Tax Credit. Any
16 applicant or transferee if the credit has been sold,
17 transferred, or assigned, claiming the Brownfields
18 Remediation Tax Credit available under Section 211 of the
19 Illinois Income Tax Act and granted in an approval letter and
20 development agreement under Section 59.5 of this Title, may
21 submit a request to DCCA to issue a certificate of
22 eligibility to claim the credit.
23 (1) The applicant or transferee shall provide, in
24 addition to any other information required by DCCA, the
25 amount of the credit requested and if applicable,
26 pursuant to the annual tax credit distribution schedule,
27 the amount of carry forward from previous tax years,
28 certification that the benchmarks for measurable economic
29 growth established in the development agreement have been
30 satisfied, proof of enrollment or participation in a
31 State-administered environmental remediation or
32 reclamation program qualifying the Brownfields site to
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1 receive incentives under this Title, and an itemization
2 of the amount of remediation costs, if any, that were
3 incurred during the taxable year.
4 (2) Within 30 days after receipt of the request and
5 all required information, DCCA shall provide the
6 applicant with a certificate of eligibility to claim the
7 total Brownfields Remediation Tax Credit, if any, or, if
8 applicable, the annual tax credit allowance as set forth
9 in the development agreement tax credit distribution
10 schedule, including any amount of credit subject to carry
11 forward. The Department of Revenue shall prescribe the
12 form for the certificate of eligibility, and DCCA shall
13 file with the Department of Revenue a copy of each
14 certificate of eligibility.
15 (3) An applicant or transferee that claims the
16 credit in this subsection based on a fraudulent
17 Brownfields Rehabilitation and Redevelopment Program
18 application or request for a certificate of eligibility
19 or any other fraudulent statement submitted to DCCA shall
20 be subject to prosecution under Section 1301 of the
21 Illinois Income Tax Act.
22 (b) The Small Business Remediation Tax Credit. For tax
23 years beginning on or after January 1, 1997 and ending on or
24 before December 30, 2002, an applicant that employs no more
25 than 50 employees and undertakes the expansion,
26 rehabilitation, or redevelopment of a Brownfields site that
27 generates measurable economic growth resulting in either a
28 revenue neutral benefit or a net fiscal benefit may claim the
29 Small Business Remediation Tax Credit.
30 (1) This credit shall not be available to an
31 applicant that claimed the credit provided in subsection
32 (a).
33 (2) An applicant that claims the credit provided in
34 this Section based on a fraudulent statement submitted to
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1 DCCA shall be subject to prosecution under Section 1301
2 of the Illinois Income Tax Act.
3 (3) The Department of Revenue, in cooperation with
4 the DCCA, shall adopt a tax credit schedule as prescribed
5 in Section 59.3 of Title XVIII of the Environmental
6 Protection Act within 120 days of the effective date of
7 this amendatory Act of 1997 that shall provide the amount
8 of credits available for measurable economic growth.
9 (c) Additional incentives. The Agency or other
10 administrative agency, including the Department of
11 Agriculture and Department of Natural Resources, may make
12 available any other resources deemed appropriate as a
13 financial incentive to remediate and expand, rehabilitate or
14 redevelop a Brownfields site.
15 (415 ILCS 5/59.4 new)
16 Sec. 59.4. Brownfields Rehabilitation and Redevelopment
17 Program application submittal. At any time prior to
18 commencement or during the performance of investigation,
19 remediation, or reclamation at a Brownfields Site, but no
20 later than December 31, 2002, an application may be submitted
21 to DCCA providing the following available information:
22 (1) Certification that a copy of the application has
23 been submitted to the State agency administering the
24 environmental remediation or reclamation program that would
25 qualify the Brownfields site to receive incentives under this
26 Title, or if the investigation, remediation, or reclamation
27 has not yet commenced, certification that a site is eligible
28 to participate or enroll in such program;
29 (2) Information relating to the actual or potential
30 impact of a regulated substance release on the site that is
31 the subject of the application;
32 (3) A summary of the investigation, remedial corrective
33 action, or reclamation plan for the Brownfields site;
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1 (4) Approximate budgets for the investigation, remedial
2 corrective action, or reclamation plan;
3 (5) A timeline for investigation, remediation, or
4 reclamation completion and receipt of a "No Further
5 Remediation Letter" or other similar State authorization or
6 approval indicating completed investigation or remediation in
7 satisfaction of State requirements with respect to the
8 Brownfields Site;
9 (6) A detailed explanation of the proposed expansion,
10 rehabilitation, or redevelopment plan;
11 (7) The factors indicating measurable economic growth;
12 (8) A timeline for achieving measurable economic growth;
13 and
14 (9) Incentives requested under this Title.
15 (415 ILCS 5/59.5 new)
16 Sec. 59.5. Application review and decision; tax credit
17 allocations; development agreement.
18 (a) Within 30 days after receiving a copy of the
19 Brownfields Rehabilitation and Redevelopment application, the
20 State agency administering the remediation or reclamation
21 program shall forward to DCCA a letter indicating agreement,
22 disagreement, or need for additional information with respect
23 to the planned environmental investigation, remediation, and
24 reclamation.
25 (b) Within 45 days after receipt of the application,
26 DCCA shall forward to the applicant a letter indicating
27 approval or disapproval of the application, or need for
28 additional information, and providing a basis for such
29 decision.
30 (c) If the application is approved, DCCA shall include
31 with the approval letter, a development agreement that shall
32 contain the following:
33 (1) A determination of the projected present value
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1 of new State tax revenues generated by the measurable
2 economic growth of the approved Brownfields project;
3 (2) An allocation of the total amount of
4 Brownfields Remediation Tax Credits projected for the
5 approved Brownfields project;
6 (3) A determination of the net fiscal benefit or
7 revenue neutral impact that will be generated by the
8 approved Brownfields project;
9 (4) Measurable economic growth benchmarks;
10 (5) A tax credit distribution schedule including
11 annual maximum tax credit allowances for each year during
12 the entire term of the development agreement;
13 (6) The term of the development agreement;
14 (7) Applicable conditions; and
15 (8) Any other information deemed appropriate by
16 DCCA, including but not limited to, an explanation of how
17 to claim the credits.
18 (415 ILCS 5/59.6 new)
19 Sec. 59.6. Failure to meet measurable economic growth
20 benchmarks.
21 (a) If an applicant determines that the benchmarks set
22 forth in the development agreement are not attainable, an
23 applicant may submit a request for modification of the
24 development agreement to DCCA.
25 (b) DCCA may audit the approved Brownfields project and
26 may cancel any credits granted in the development agreement
27 that have not been claimed when the approved Brownfields
28 project fails to meet measurable economic growth benchmarks.
29 The determination shall be made by DCCA, in its sole
30 discretion, based on the severity of the benchmark not
31 achieved, actions taken to meet the benchmark, the frequency
32 of any failure to meet the benchmark, and compliance with any
33 condition set forth in the development agreement. DCCA shall
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1 also consider any changes in the general economic conditions
2 and any recommendation of the State agency administering the
3 remediation or reclamation program concerning severity,
4 scope, nature, frequency, and extent of any deviation from
5 the investigation, remediation, corrective action, or
6 reclamation plans.
7 (415 ILCS 5/59.7 new)
8 Sec. 59.7. Regulations. DCCA shall, with the advice and
9 recommendation of the Agency, the Department of Agriculture,
10 and the Department of Natural Resources, issue regulations
11 within 120 days of the effective date of this amendatory Act
12 of 1997 as may be necessary to implement the provisions of
13 this Title, including but not limited to a list of
14 State-administered environmental remediation and reclamation
15 programs that would qualify a site to be considered a
16 Brownfields site under this Title, application forms, and a
17 schedule of remediation costs that will be considered
18 qualifying expenditures for the Brownfields Remediation Tax
19 Credit. The Agency, the Department of Agriculture, and the
20 Department of Natural Resources may adopt such administrative
21 regulations as necessary to implement the provisions of this
22 Title. The Department of Revenue shall prescribe the form for
23 the certificate of eligibility and promulgate a Small
24 Business Remediation Tax Credit Schedule within 120 days of
25 the effective date of this amendatory Act of 1997.
26 (415 ILCS 5/59.8 new)
27 Sec. 59.8. Severability. The provisions of this Title
28 are severable under Section 1.31 of the Statute on Statutes.
29 (415 ILCS 5/59.9 new)
30 Section 59.9. Repealer. The provisions of this Title are
31 repealed effective 5 years after the effective date of this
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1 amendatory Act of 1997. This Section shall not impact
2 development agreements entered into prior to the date this
3 Title is repealed.
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.".