PETERSON-RADOGNO-WELCH-FAWELL. (HOFFMAN-OSMOND-HOLBROOK-REITZ) New Act 215 ILCS 5/409 from Ch. 73, par. 1021 Creates the Certified Capital Company Act to provide assistance in the formation of new and expansion of existing businesses that create jobs in the State by providing an incentive, in the form of tax credits against the State's privilege taxes, for insurance companies to invest in certified capital companies. Provides that the Department of Commerce and Community Affairs shall implement the provisions of the Act. Provides that an insurance company that qualifies as a certified investor shall earn a vested credit against State privilege taxes equal to 100% of the investor's investment of certified capital, of which 10% may be taken in any taxable year. Provides that the aggregate amount of certified capital for which privilege tax credits shall be allowed for all certified investors shall not exceed the amount that would entitle all certified investors to take aggregate credits of $30,000,000 per year. Amends the Illinois Insurance Code to provide that the amount of the credit earned under the Certified Capital Company Act may be deducted from a company's privilege tax liability. Effective immediately. FISCAL NOTE (Department of Insurance) There will be no fiscal impact on the Department; fiscal impact on GRF could be as much as $30 million per year. SENATE AMENDMENT NO. 1. Deletes everything and reinstates the provisions of the Certified Capital Company Act. Provides that a certified investor or holder of a transferred credit claiming a credit against State privilege tax liability shall provide the Department of Insurance certain information. Provides that the Department of Insurance shall adopt rules to collect the privilege tax credit. Provides that a certified investor may not be required to reduce the provision for the tax included in ratemaking due to a reduction in privilege tax derived from the credit. Deletes the time limit for the Department to determine whether a business meets the definition of a qualified business for investment purposes. Deletes the provision exempting a certified capital company from regulation after investing 100% of its certified capital in qualified investments. Establishes reporting requirements of financial information to the General Assembly. Makes other changes. Effective immediately. SENATE AMENDMENT NO. 2. Provides that the privilege tax credits may be carried forward until used or until the tax filings for calendar year 2010 (now 2020), whichever is sooner. SENATE AMENDMENT NO. 3. Includes within the Act's provisions for an affiliate of a certified capital company or insurance company a person that owns, whether through rights, options, convertible interests, or otherwise, or has the power to vote 25% (now 10%) or more of the outstanding voting securities. Provides that a qualified distribution or payment for reasonable costs and expenses may not be made directly or indirectly to a certified investor. Adds to requirements of a qualified debt instrument that the instrument must have an annualized internal rate of return (calculated using the purchase price of the qualified debt instrument, all payments of principal and interest, and all future tax credits projected to be received) not to exceed 3.5% over the then current yield of the most recently issued 10-year U.S. Treasury security. Makes other changes. SENATE AMENDMENT NO. 4. Deletes everything and reinserts the provisions of the bill as amended. Provides that the privilege tax credits may be carried forward until used or until the tax filings for calendar year 2015 (now 2010), whichever is sooner. Provides that certain distributions to equity holders of a certified capital company are subject to audit by a nationally recognized certified public accounting firm at the expense of the company. Provides that 30% of certain distributions in excess of the amount required to produce a 15% return shall be paid annually to the State Pension Fund. HOUSE AMENDMENT NO. 1. Deletes reference to: 215 ILCS 5/409 Deletes everything. Creates the Certified Capital Company Act with the short title as the only provision. 99-01-14 S PREFILED WITH SECRETARY JANUARY 12, 1999 99-01-14 S FIRST READING 99-01-14 S REFERRED TO SENATE RULES COMMITTEE RULES 99-01-27 S ASSIGNED TO COMMITTEE REVENUE 99-02-03 S FISCAL NOTE REQUESTED PETERSON 99-02-19 S FISCAL NOTE FILED 99-02-26 S TO SUBCOMMITTEE 99-03-11 S ADDED AS A CHIEF CO-SPONSOR RADOGNO 99-03-18 S AMENDMENT NO. 01-REVENUE S 99-03-18 S ADOPTED 99-03-18 S AMENDMENT NO. 02-REVENUE S 99-03-18 S ADOPTED 99-03-18 S AMENDMENT NO. 03-REVENUE S 99-03-18 S ADOPTED 99-03-18 S DO PASS AS AMENDED 008-000-000 SREV 99-03-18 S PLACED ON CALENDAR ORDER OF 2ND READING 99-03-19 99-03-18 S ADDED AS A CHIEF CO-SPONSOR WELCH 99-03-18 S ADDED AS A CHIEF CO-SPONSOR FAWELL 99-03-23 S FILED WITH SECRETARY 99-03-23 S AMENDMENT NO. 04-PETERSON 99-03-23 S AMENDMENT REFERRED TO SRUL 99-03-23 S AMENDMENT NO. 04-PETERSON 99-03-23 S RULES REFERS TO SREV 99-03-24 S AMENDMENT NO. 04-PETERSON 99-03-24 S BE APPROVED FOR CONSIDERATION SREV/009-000-000 99-03-24 S SECOND READING 99-03-24 S AMENDMENT NO. 04-PETERSON 99-03-24 S ADOPTED 99-03-24 S PLACED ON CALENDAR ORDER OF 3RD READING 99-03-25 99-03-25 S THIRD READING - PASSED 054-002-001 99-03-26 H ARRIVE IN HOUSE 99-03-26 H HOUSE SPONSOR HOFFMAN 99-03-26 H ADDED AS A JOINT SPONSOR OSMOND 99-03-26 H FIRST READING 99-03-26 H REFERRED TO HOUSE RULES COMMITTEE RULES 99-04-14 H ASSIGNED TO COMMITTEE REVENUE 99-04-16 H ADDED AS A JOINT SPONSOR HOLBROOK 99-04-16 H ADDED AS A JOINT SPONSOR REITZ 99-04-29 H AMENDMENT NO. 01-REVENUE H 99-04-29 H ADOPTED 99-04-29 H DO PASS AMENDED/SHORT DEBATE 008-000-000 HREV 99-04-29 H PLACED CALENDAR 2ND READING-SHORT DEBATE 99-05-04 H SECOND READING-SHORT DEBATE 99-05-04 H PLCD CAL ORDER 3RD READING-SHORT DEBATE 99-05-14 H RE-REFERRED TO RULES COMM/RULE 19(A) RULES HRUL 01-01-09 S SESSION SINE DIE END OF INQUIRY Full Text Bill Summary