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Public Act 102-0669 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the | ||||
Reimagining Electric Vehicles in Illinois Act. | ||||
Section 5. Purpose. It is the intent of the General | ||||
Assembly that Illinois should lead the nation in the | ||||
production of electric vehicles. The General Assembly finds | ||||
that, through investments in electric vehicle manufacturing, | ||||
Illinois will be on the forefront of emerging technologies | ||||
that are currently transforming the auto manufacturing | ||||
industry. This Act will reduce carbon emissions, create good | ||||
paying jobs, and generate long-term economic investment in the | ||||
Illinois business economy. Illinois must aggressively adopt | ||||
new business development investment tools so that Illinois is | ||||
more competitive in site location decision-making for | ||||
manufacturing facilities directly related to the electric | ||||
vehicle industry. Illinois' long-term development benefits | ||||
from rational, strategic use of State resources in support of | ||||
development and growth in the electric vehicle industry. | ||||
The General Assembly finds that workers are essential to | ||||
the prosperity of our State's economy and play a critical role | ||||
in Illinois becoming leader in manufacturing. The General |
Assembly further finds that, for the prosperity of our State, | ||
workers in this industry must be afforded high quality jobs | ||
that honor the dignity of work. Therefore, the General | ||
Assembly finds that it is in the best interest of Illinois to | ||
protect the work conditions, worker safety, and worker rights | ||
in the manufacturing industry and further finds that employer | ||
workplace policies shall be interpreted broadly to protect | ||
employees. | ||
Section 10. Definitions. As used in this Act: | ||
"Agreement" means the agreement between a taxpayer and the | ||
Department under the provisions of Section 45 of this Act. | ||
"Applicant" means a taxpayer that (i) operates a business | ||
in Illinois or is planning to locate a business within the | ||
State of Illinois and (ii) is engaged in interstate or | ||
intrastate commerce for the purpose of manufacturing electric | ||
vehicles, electric vehicle component parts, or electric | ||
vehicle power supply equipment. "Applicant" does not include a | ||
taxpayer who closes or substantially reduces by more than 50% | ||
operations at one location in the State and relocates | ||
substantially the same operation to another location in the | ||
State. This does not prohibit a Taxpayer from expanding its | ||
operations at another location in the State. This also does | ||
not prohibit a Taxpayer from moving its operations from one | ||
location in the State to another location in the State for the | ||
purpose of expanding the operation, provided that the |
Department determines that expansion cannot reasonably be | ||
accommodated within the municipality or county in which the | ||
business is located, or, in the case of a business located in | ||
an incorporated area of the county, within the county in which | ||
the business is located, after conferring with the chief | ||
elected official of the municipality or county and taking into | ||
consideration any evidence offered by the municipality or | ||
county regarding the ability to accommodate expansion within | ||
the municipality or county. | ||
"Capital improvements" means the purchase, renovation, | ||
rehabilitation, or construction of permanent tangible land, | ||
buildings, structures, equipment, and furnishings in an | ||
approved project sited in Illinois and expenditures for goods | ||
or services that are normally capitalized, including | ||
organizational costs and research and development costs | ||
incurred in Illinois. For land, buildings, structures, and | ||
equipment that are leased, the lease must equal or exceed the | ||
term of the agreement, and the cost of the property shall be | ||
determined from the present value, using the corporate | ||
interest rate prevailing at the time of the application, of | ||
the lease payments. | ||
"Credit" means either a "REV Illinois Credit" or a "REV | ||
Construction Jobs Credit" agreed to between the Department and | ||
applicant under this Act. | ||
"Department" means the Department of Commerce and Economic | ||
Opportunity. |
"Director" means the Director of Commerce and Economic | ||
Opportunity. | ||
"Electric vehicle" means a vehicle that is exclusively | ||
powered by and refueled by electricity, must be plugged in to | ||
charge or utilize a pre-charged battery, and is permitted to | ||
operate on public roadways. "Electric vehicle" does not | ||
include hybrid electric vehicles and extended-range electric | ||
vehicles that are also equipped with conventional fueled | ||
propulsion or auxiliary engines. | ||
"Electric vehicle manufacturer" means a new or existing | ||
manufacturer that is focused on reequipping, expanding, or | ||
establishing a manufacturing facility in Illinois that | ||
produces electric vehicles as defined in this Section. | ||
"Electric vehicle component parts manufacturer" means a | ||
new or existing manufacturer that is primarily focused on | ||
reequipping, expanding, or establishing a manufacturing | ||
facility in Illinois that produces key components that | ||
directly support the electric functions of electric vehicles, | ||
as defined by this Section. | ||
"Electric vehicle power supply equipment" means the | ||
equipment used specifically for the purpose of delivering | ||
electricity to an electric vehicle. | ||
"Electric vehicle power supply manufacturer" means a new | ||
or existing manufacturer that is focused on reequipping, | ||
expanding, or establishing a manufacturing facility in | ||
Illinois that produces electric vehicle power supply equipment |
used for the purpose of delivering electricity to an electric | ||
vehicle. | ||
"Energy Transition Area" means a county with less than | ||
100,000 people or a municipality that contains one or more of | ||
the following: | ||
(1)a fossil fuel plant that was retired from service | ||
or has significant reduced service within 6 years before | ||
the time of the application or will be retired or have | ||
service significantly reduced within 6 years following the | ||
time of the application; or | ||
(2) a coal mine that was closed or had operations | ||
significantly reduced within 6 years before the time of | ||
the application or is anticipated to be closed or have | ||
operations significantly reduced within 6 years following | ||
the time of the application. | ||
"Full-time employee" means an individual who is employed | ||
for consideration for at least 35 hours each week or who | ||
renders any other standard of service generally accepted by | ||
industry custom or practice as full-time employment. An | ||
individual for whom a W-2 is issued by a Professional Employer | ||
Organization (PEO) is a full-time employee if employed in the | ||
service of the applicant for consideration for at least 35 | ||
hours each week. | ||
"Incremental income tax" means the total amount withheld | ||
during the taxable year from the compensation of new employees | ||
and, if applicable, retained employees under Article 7 of the |
Illinois Income Tax Act arising from employment at a project | ||
that is the subject of an agreement. | ||
"Institution of higher education" or "institution" means | ||
any accredited public or private university, college, | ||
community college, business, technical, or vocational school, | ||
or other accredited educational institution offering degrees | ||
and instruction beyond the secondary school level. | ||
"Minority person" means a minority person as defined in | ||
the Business Enterprise for Minorities, Women, and Persons | ||
with Disabilities Act. | ||
"New employee" means a newly-hired full-time employee | ||
employed to work at the project site and whose work is directly | ||
related to the project. | ||
"Noncompliance date" means, in the case of a taxpayer that | ||
is not complying with the requirements of the agreement or the | ||
provisions of this Act, the day following the last date upon | ||
which the taxpayer was in compliance with the requirements of | ||
the agreement and the provisions of this Act, as determined by | ||
the Director, pursuant to Section 70. | ||
"Pass-through entity" means an entity that is exempt from | ||
the tax under subsection (b) or (c) of Section 205 of the | ||
Illinois Income Tax Act. | ||
"Placed in service" means the state or condition of | ||
readiness, availability for a specifically assigned function, | ||
and the facility is constructed and ready to conduct its | ||
facility operations to manufacture goods. |
"Professional employer organization" (PEO) means an | ||
employee leasing company, as defined in Section 206.1 of the | ||
Illinois Unemployment Insurance Act. | ||
"Program" means the Reimagining Electric Vehicles in | ||
Illinois Program (the REV Illinois Program) established in | ||
this Act. | ||
"Project" or "REV Illinois Project" means a for-profit | ||
economic development activity for the manufacture of electric | ||
vehicles, electric vehicle component parts, or electric | ||
vehicle power supply equipment which is designated by the | ||
Department as a REV Illinois Project and is the subject of an | ||
agreement. | ||
"Recycling facility" means a location at which the | ||
taxpayer disposes of batteries and other component parts in | ||
manufacturing of electric vehicles, electric vehicle component | ||
parts, or electric vehicle power supply equipment. | ||
"Related member" means a person that, with respect to the | ||
taxpayer during any portion of the taxable year, is any one of | ||
the following: | ||
(1) An individual stockholder, if the stockholder and | ||
the members of the stockholder's family (as defined in | ||
Section 318 of the Internal Revenue Code) own directly, | ||
indirectly, beneficially, or constructively, in the | ||
aggregate, at least 50% of the value of the taxpayer's | ||
outstanding stock. | ||
(2) A partnership, estate, trust and any partner or |
beneficiary, if the partnership, estate, or trust, and its | ||
partners or beneficiaries own directly, indirectly, | ||
beneficially, or constructively, in the aggregate, at | ||
least 50% of the profits, capital, stock, or value of the | ||
taxpayer. | ||
(3) A corporation, and any party related to the | ||
corporation in a manner that would require an attribution | ||
of stock from the corporation under the attribution rules | ||
of Section 318 of the Internal Revenue Code, if the | ||
Taxpayer owns directly, indirectly, beneficially, or | ||
constructively at least 50% of the value of the | ||
corporation's outstanding stock. | ||
(4) A corporation and any party related to that | ||
corporation in a manner that would require an attribution | ||
of stock from the corporation to the party or from the | ||
party to the corporation under the attribution rules of | ||
Section 318 of the Internal Revenue Code, if the | ||
corporation and all such related parties own in the | ||
aggregate at least 50% of the profits, capital, stock, or | ||
value of the taxpayer. | ||
(5) A person to or from whom there is an attribution of | ||
stock ownership in accordance with Section 1563(e) of the | ||
Internal Revenue Code, except, for purposes of determining | ||
whether a person is a related member under this paragraph, | ||
20% shall be substituted for 5% wherever 5% appears in | ||
Section 1563(e) of the Internal Revenue Code. |
"Retained employee" means a full-time employee employed by | ||
the taxpayer prior to the term of the Agreement who continues | ||
to be employed during the term of the agreement whose job | ||
duties are directly and substantially related to the project. | ||
For purposes of this definition, "directly and substantially | ||
related to the project" means at least two-thirds of the | ||
employee's job duties must be directly related to the project | ||
and the employee must devote at least two-thirds of his or her | ||
time to the project. The term "retained employee" does not | ||
include any individual who has a direct or an indirect | ||
ownership interest of at least 5% in the profits, equity, | ||
capital, or value of the taxpayer or a child, grandchild, | ||
parent, or spouse, other than a spouse who is legally | ||
separated from the individual, of any individual who has a | ||
direct or indirect ownership of at least 5% in the profits, | ||
equity, capital, or value of the taxpayer. | ||
"REV Illinois credit" means a credit agreed to between the | ||
Department and the applicant under this Act that is based on | ||
the incremental income tax attributable to new employees and, | ||
if applicable, retained employees, and on training costs for | ||
such employees at the applicant's project. | ||
"REV construction jobs credit" means a credit agreed to | ||
between the Department and the applicant under this Act that | ||
is based on the incremental income tax attributable to | ||
construction wages paid in connection with construction of the | ||
project facilities. |
"Statewide baseline" means the total number of full-time | ||
employees of the applicant and any related member employed by | ||
such entities at the time of application for incentives under | ||
this Act. | ||
"Taxpayer" means an individual, corporation, partnership, | ||
or other entity that has a legal obligation to pay Illinois | ||
income taxes and file an Illinois income tax return. | ||
"Training costs" means costs incurred to upgrade the | ||
technological skills of full-time employees in Illinois and | ||
includes: curriculum development; training materials | ||
(including scrap product costs); trainee domestic travel | ||
expenses; instructor costs (including wages, fringe benefits, | ||
tuition and domestic travel expenses); rent, purchase or lease | ||
of training equipment; and other usual and customary training | ||
costs. "Training costs" do not include costs associated with | ||
travel outside the United States (unless the Taxpayer receives | ||
prior written approval for the travel by the Director based on | ||
a showing of substantial need or other proof the training is | ||
not reasonably available within the United States), wages and | ||
fringe benefits of employees during periods of training, or | ||
administrative cost related to Full-Time Employees of the | ||
Taxpayer. | ||
"Underserved area" means any geographic areas as defined | ||
in Section 5-5 of the Economic Development for a Growing | ||
Economy Tax Credit Act. |
Section 15. Powers of the Department. The Department, in | ||
addition to those powers granted under the Civil | ||
Administrative Code of Illinois, is granted and shall have all | ||
the powers necessary or convenient to administer the program | ||
under this Act and to carry out and effectuate the purposes and | ||
provisions of this Act, including, but not limited to, the | ||
power and authority to: | ||
(1) adopt rules deemed necessary and appropriate for | ||
the administration of the REV Illinois Program, the | ||
designation of REV Illinois Projects, and the awarding of | ||
credits; | ||
(2) establish forms for applications, notifications, | ||
contracts, or any other agreements and accept applications | ||
at any time during the year; | ||
(3) assist taxpayers pursuant to the provisions of | ||
this Act and cooperate with taxpayers that are parties to | ||
agreements under this Act to promote, foster, and support | ||
economic development, capital investment, and job creation | ||
or retention within the State; | ||
(4) enter into agreements and memoranda of | ||
understanding for participation of, and engage in | ||
cooperation with, agencies of the federal government, | ||
units of local government, universities, research | ||
foundations or institutions, regional economic development | ||
corporations, or other organizations to implement the | ||
requirements and purposes of this Act; |
(5) gather information and conduct inquiries, in the | ||
manner and by the methods it deems desirable, including | ||
without limitation, gathering information with respect to | ||
applicants for the purpose of making any designations or | ||
certifications necessary or desirable or to gather | ||
information to assist the Department with any | ||
recommendation or guidance in the furtherance of the | ||
purposes of this Act; | ||
(6) establish, negotiate and effectuate agreements and | ||
any term, agreement, or other document with any person, | ||
necessary or appropriate to accomplish the purposes of | ||
this Act; and to consent, subject to the provisions of any | ||
agreement with another party, to the modification or | ||
restructuring of any agreement to which the Department is | ||
a party; | ||
(7) fix, determine, charge, and collect any premiums, | ||
fees, charges, costs, and expenses from applicants, | ||
including, without limitation, any application fees, | ||
commitment fees, program fees, financing charges, or | ||
publication fees as deemed appropriate to pay expenses | ||
necessary or incident to the administration, staffing, or | ||
operation in connection with the Department's activities | ||
under this Act, or for preparation, implementation, and | ||
enforcement of the terms of the agreement, or for | ||
consultation, advisory and legal fees, and other costs; | ||
however, all fees and expenses incident thereto shall be |
the responsibility of the applicant; | ||
(8) provide for sufficient personnel to permit | ||
administration, staffing, operation, and related support | ||
required to adequately discharge its duties and | ||
responsibilities described in this Act from funds made | ||
available through charges to applicants or from funds as | ||
may be appropriated by the General Assembly for the | ||
administration of this Act; | ||
(9) require applicants, upon written request, to issue | ||
any necessary authorization to the appropriate federal, | ||
State, or local authority for the release of information | ||
concerning a project being considered under the provisions | ||
of this Act, with the information requested to include, | ||
but not be limited to, financial reports, returns, or | ||
records relating to the taxpayer or its project; | ||
(10) require that a taxpayer shall at all times keep | ||
proper books of record and account in accordance with | ||
generally accepted accounting principles consistently | ||
applied, with the books, records, or papers related to the | ||
agreement in the custody or control of the taxpayer open | ||
for reasonable Department inspection and audits, and | ||
including, without limitation, the making of copies of the | ||
books, records, or papers, and the inspection or appraisal | ||
of any of the taxpayer or project assets; | ||
(11) take whatever actions are necessary or | ||
appropriate to protect the State's interest in the event |
of bankruptcy, default, foreclosure, or noncompliance with | ||
the terms and conditions of financial assistance or | ||
participation required under this Act, including the power | ||
to sell, dispose, lease, or rent, upon terms and | ||
conditions determined by the Director to be appropriate, | ||
real or personal property that the Department may receive | ||
as a result of these actions. | ||
Section 20. REV Illinois Program; project applications. | ||
(a) The Reimagining Electric Vehicles in Illinois (REV | ||
Illinois) Program is hereby established and shall be | ||
administered by the Department. The Program will provide | ||
financial incentives to eligible manufacturers of electric | ||
vehicles, electric vehicle component parts, and electric | ||
vehicle power supply equipment. | ||
(b) Any taxpayer planning a project to be located in | ||
Illinois may request consideration for designation of its | ||
project as a REV Illinois Project, by formal written letter of | ||
request or by formal application to the Department, in which | ||
the applicant states its intent to make at least a specified | ||
level of investment and intends to hire a specified number of | ||
full-time employees at a designated location in Illinois. As | ||
circumstances require, the Department shall require a formal | ||
application from an applicant and a formal letter of request | ||
for assistance. | ||
(c) In order to qualify for credits under the REV Illinois |
Program, an Applicant must: | ||
(1) for an electric vehicle manufacturer: | ||
(A) make an investment of at least $1,500,000,000 | ||
in capital improvements at the project site; | ||
(B) to be placed in service within the State | ||
within a 60-month period after approval of the | ||
application; and | ||
(C) create at least 500 new full-time employee | ||
jobs; or | ||
(2) for an electric vehicle component parts | ||
manufacturer: | ||
(A) make an investment of at least $300,000,000 in | ||
capital improvements at the project site; | ||
(B) manufacture one or more parts that are | ||
primarily used for electric vehicle manufacturing; | ||
(C) to be placed in service within the State | ||
within a 60-month period after approval of the | ||
application; and | ||
(D) create at least 150 new full-time employee | ||
jobs; or | ||
(3) for an electric vehicle manufacturer, electric | ||
vehicle power supply equipment Manufacturer, or electric | ||
vehicle component part manufacturer that does not quality | ||
under paragraph (2) above: | ||
(A) make an investment of at least $20,000,000 in | ||
capital improvements at the project site; |
(B) for electric vehicle component part | ||
manufacturers, manufacture one or more parts that are | ||
primarily used for electric vehicle manufacturing; | ||
(C) to be placed in service within the State | ||
within a 48-month period after approval of the | ||
application; and | ||
(D) create at least 50 new full-time employee | ||
jobs; or | ||
(4) for an electric vehicle manufacturer or electric | ||
vehicle component parts manufacturer with existing | ||
operations within Illinois that intends to convert or | ||
expand, in whole or in part, the existing facility from | ||
traditional manufacturing to electric vehicle | ||
manufacturing, electric vehicle component parts | ||
manufacturing, or electric vehicle power supply equipment | ||
manufacturing: | ||
(A) make an investment of at least $100,000,000 in | ||
capital improvements at the project site; | ||
(B) to be placed in service within the State | ||
within a 60-month period after approval of the | ||
application; and | ||
(C) create the lesser of 75 new full-time employee | ||
jobs or new full-time employee jobs equivalent to 10% | ||
of the Statewide baseline applicable to the taxpayer | ||
and any related member at the time of application. | ||
(d) For any applicant creating the full-time employee jobs |
noted in subsection (c), those jobs must have a total | ||
compensation equal to or greater than 120% of the average wage | ||
paid to full-time employees in the county where the project is | ||
located, as determined by the U.S. Bureau of Labor Statistics. | ||
(e) For any applicant, within 24 months after being placed | ||
in service, it must certify to the Department that it is carbon | ||
neutral or has attained certification under one of more of the | ||
following green building standards: | ||
(1) BREEAM for New Construction or BREEAM In-Use; | ||
(2) ENERGY STAR; | ||
(3) Envision; | ||
(4) ISO 50001 – energy management; | ||
(5) LEED for Building Design and Construction or LEED | ||
for Building Operations and Maintenance; | ||
(6) Green Globes for New Construction or Green Globes | ||
for Existing Buildings; or | ||
(7) UL 3223. | ||
(f) Each applicant must outline its hiring plan and | ||
commitment to recruit and hire full-time employee positions at | ||
the project site. The hiring plan may include a partnership | ||
with an institution of higher education to provide | ||
internships, including, but not limited to, internships | ||
supported by the Clean Jobs Workforce Network Program, or | ||
full-time permanent employment for students at the project | ||
site. Additionally, the applicant may create or utilize | ||
participants from apprenticeship programs that are approved by |
and registered with the United States Department of Labor's | ||
Bureau of Apprenticeship and Training. The Applicant may apply | ||
for apprenticeship education expense credits in accordance | ||
with the provisions set forth in 14 Ill. Admin. Code 522. Each | ||
applicant is required to report annually, on or before April | ||
15, on the diversity of its workforce in accordance with | ||
Section 50 of this Act. For existing facilities of applicants | ||
under paragraph (3) of subsection (b) above, if the taxpayer | ||
expects a reduction in force due to its transition to | ||
manufacturing electric vehicle, electric vehicle component | ||
parts, or electric vehicle power supply equipment, the plan | ||
submitted under this Section must outline the taxpayer's plan | ||
to assist with retraining its workforce aligned with the | ||
taxpayer's adoption of new technologies and anticipated | ||
efforts to retrain employees through employment opportunities | ||
within the taxpayer's workforce. | ||
(g) Each applicant must demonstrate a contractual or other | ||
relationship with a recycling facility, or demonstrate its own | ||
recycling capabilities, at the time of application and report | ||
annually a continuing contractual or other relationship with a | ||
recycling facility and the percentage of batteries used in | ||
electric vehicles recycled throughout the term of the | ||
agreement. | ||
(h) A taxpayer may not enter into more than one agreement | ||
under this Act with respect to a single address or location for | ||
the same period of time. Also, a taxpayer may not enter into an |
agreement under this Act with respect to a single address or | ||
location for the same period of time for which the taxpayer | ||
currently holds an active agreement under the Economic | ||
Development for a Growing Economy Tax Credit Act. This | ||
provision does not preclude the applicant from entering into | ||
an additional agreement after the expiration or voluntary | ||
termination of an earlier agreement under this Act or under | ||
the Economic Development for a Growing Economy Tax Credit Act | ||
to the extent that the taxpayer's application otherwise | ||
satisfies the terms and conditions of this Act and is approved | ||
by the Department. An applicant with an existing agreement | ||
under the Economic Development for a Growing Economy Tax | ||
Credit Act may submit an application for an agreement under | ||
this Act after it terminates any existing agreement under the | ||
Economic Development for a Growing Economy Tax Credit Act with | ||
respect to the same address or location. | ||
Section 25. Review of application. The Department shall | ||
determine which projects will benefit the State. In making its | ||
recommendation that an applicant's application for credit | ||
should or should not be accepted, which shall occur within a | ||
reasonable time frame as determined by the nature of the | ||
application, the Department shall determine that all the | ||
following conditions exist: | ||
(1) the applicant intends to make the required | ||
investment in the State and intends to hire the required |
number of full-time employees; | ||
(2) the applicant's project is economically sound, | ||
will benefit the people of the State by increasing | ||
opportunities for employment, and will strengthen the | ||
economy of the State; | ||
(3) awarding the credit will result in an overall | ||
positive fiscal impact to the State, as certified by the | ||
Department using the best available data; and | ||
(4) the credit is not prohibited under this Act. | ||
Section 30. Tax credit awards. | ||
(a) Subject to the conditions set forth in this Act, a | ||
taxpayer is entitled to a credit against the tax imposed | ||
pursuant to subsections (a) and (b) of Section 201 of the | ||
Illinois Income Tax Act for a taxable year beginning on or | ||
after January 1, 2025 if the taxpayer is awarded a credit by | ||
the Department in accordance with an agreement under this Act. | ||
The Department has authority to award credits under this Act | ||
on and after January 1, 2022. | ||
(b) REV Illinois Credits. A taxpayer may receive a tax | ||
credit against the tax imposed under subsections (a) and (b) | ||
of Section 201 of the Illinois Income Tax Act, not to exceed | ||
the sum of (i) 75% of the incremental income tax attributable | ||
to new employees at the applicant's project and (ii) 10% of the | ||
training costs of the new employees. If the project is located | ||
in an underserved area or an energy transition area, then the |
amount of the credit may not exceed the sum of (i) 100% of the | ||
incremental income tax attributable to new employees at the | ||
applicant's project; and (ii) 10% of the training costs of the | ||
new employees. The percentage of training costs includable in | ||
the calculation may be increased by an additional 15% for | ||
training costs associated with new employees that are recent | ||
(2 years or less) graduates, certificate holders, or | ||
credential recipients from an institution of higher education | ||
in Illinois, or, if the training is provided by an institution | ||
of higher education in Illinois, the Clean Jobs Workforce | ||
Network Program, or an apprenticeship and training program | ||
located in Illinois and approved by and registered with the | ||
United States Department of Labor's Bureau of Apprenticeship | ||
and Training. An applicant is also eligible for a training | ||
credit that shall not exceed 10% of the training costs of | ||
retained employees for the purpose of upskilling to meet the | ||
operational needs of the applicant or the REV Illinois | ||
Project. The percentage of training costs includable in the | ||
calculation shall not exceed a total of 25%. If an applicant | ||
agrees to hire the required number of new employees, then the | ||
maximum amount of the credit for that applicant may be | ||
increased by an amount not to exceed 25% of the incremental | ||
income tax attributable to retained employees at the | ||
applicant's project; provided that, in order to receive the | ||
increase for retained employees, the applicant must, if | ||
applicable, meet or exceed the statewide baseline. If the |
Project is in an underserved area or an energy transition | ||
area, the maximum amount of the credit attributable to | ||
retained employees for the applicant may be increased to an | ||
amount not to exceed 50% of the incremental income tax | ||
attributable to retained employees at the applicant's project; | ||
provided that, in order to receive the increase for retained | ||
employees, the applicant must meet or exceed the statewide | ||
baseline. REV Illinois Credits awarded may include credit | ||
earned for incremental income tax withheld and training costs | ||
incurred by the taxpayer beginning on or after January 1, | ||
2022. Credits so earned and certified by the Department may be | ||
applied against the tax imposed by subsections (a) and (b) of | ||
Section 201 of the Illinois Income Tax Act for taxable years | ||
beginning on or after January 1, 2025. | ||
(c) REV Construction Jobs Credit. For construction wages | ||
associated with a project that qualified for a REV Illinois | ||
Credit under subsection (b), the taxpayer may receive a tax | ||
credit against the tax imposed under subsections (a) and (b) | ||
of Section 201 of the Illinois Income Tax Act in an amount | ||
equal to 50% of the incremental income tax attributable to | ||
construction wages paid in connection with construction of the | ||
project facilities, as a jobs credit for workers hired to | ||
construct the project. | ||
The REV Construction Jobs Credit may not exceed 75% of the | ||
amount of the incremental income tax attributable to | ||
construction wages paid in connection with construction of the |
project facilities if the project is in an underserved area or | ||
an energy transition area. | ||
(d) The Department shall certify to the Department of | ||
Revenue: (1) the identity of Taxpayers that are eligible for | ||
the REV Illinois Credit and REV Construction Jobs Credit; (2) | ||
the amount of the REV Illinois Credits and REV Construction | ||
Jobs Credits awarded in each calendar year; and (3) the amount | ||
of the REV Illinois Credit and REV Construction Jobs Credit | ||
claimed in each calendar year. REV Illinois Credits awarded | ||
may include credit earned for Incremental Income Tax withheld | ||
and Training Costs incurred by the Taxpayer beginning on or | ||
after January 1, 2022. Credits so earned and certified by the | ||
Department may be applied against the tax imposed by Section | ||
201(a) and (b) of the Illinois Income Tax Act for taxable years | ||
beginning on or after January 1, 2025. | ||
(e) Applicants seeking certification for a tax credits | ||
related to the construction of the project facilities in the | ||
State shall require the contractor to enter into a project | ||
labor agreement that conforms with the Project Labor | ||
Agreements Act. | ||
(f) Any applicant issued a certificate for a tax credit or | ||
tax exemption under this Act must annually report to the | ||
Department the total project tax benefits received. Reports | ||
are due no later than May 31 of each year and shall cover the | ||
previous calendar year. The first report is for the 2022 | ||
calendar year and is due no later than May 31, 2023. |
(g) Nothing in this Act shall prohibit an award of credit | ||
to an applicant that uses a PEO if all other award criteria are | ||
satisfied. | ||
(h) With respect to any portion of a REV Illinois Credit | ||
that is based on the incremental income tax attributable to | ||
new employees or retained employees, in lieu of the Credit | ||
allowed under this Act against the taxes imposed pursuant to | ||
subsections (a) and (b) of Section 201 of the Illinois Income | ||
Tax Act, a taxpayer that otherwise meets the criteria set | ||
forth in this Section, the taxpayer may elect to claim the | ||
credit, on or after January 1, 2025, against its obligation to | ||
pay over withholding under Section 704A of the Illinois Income | ||
Tax Act. The election shall be made in the manner prescribed by | ||
the Department of Revenue and once made shall be irrevocable. | ||
Section 35. Relocation of jobs in Illinois. A taxpayer is | ||
not entitled to claim a credit provided by this Act with | ||
respect to any jobs that the Taxpayer relocates from one site | ||
in Illinois to another site in Illinois. Any full-time | ||
employee relocated to Illinois in connection with a qualifying | ||
project is deemed to be a new employee for purposes of this | ||
Act. Determinations under this Section shall be made by the | ||
Department. | ||
Section 40. Amount and duration of the credits; limitation | ||
to amount of costs of specified items. The Department shall |
determine the amount and duration of the REV Illinois Credit | ||
awarded under this Act, subject to the limitations set forth | ||
in this Act. For a project that qualified under paragraph (1), | ||
(2), or (4) of subsection (c) of Section 20, the duration of | ||
the credit may not exceed 15 taxable years. For project that | ||
qualified under paragraph (3) of subsection (c) of Section 20, | ||
the duration of the credit may not exceed 10 taxable years. The | ||
credit may be stated as a percentage of the incremental income | ||
tax and training costs attributable to the applicant's project | ||
and may include a fixed dollar limitation. | ||
Nothing in this Section shall prevent the Department, in | ||
consultation with the Department of Revenue, from adopting | ||
rules to extend the sunset of any earned, existing, and unused | ||
tax credit or credits a taxpayer may be in possession of, as | ||
provided for in Section 605-1055 of the Department of Commerce | ||
and Economic Opportunity Law of the Civil Administrative Code | ||
of Illinois, notwithstanding the carry-forward provisions | ||
pursuant to paragraph (4) of Section 211 of the Illinois | ||
Income Tax Act. | ||
Section 45. Contents of agreements with applicants. | ||
(a) The Department shall enter into an agreement with an | ||
applicant that is awarded a credit under this Act. The | ||
agreement shall include all of the following: | ||
(1) A detailed description of the project that is the | ||
subject of the agreement, including the location and |
amount of the investment and jobs created or retained. | ||
(2) The duration of the credit, the first taxable year | ||
for which the credit may be awarded, and the first taxable | ||
year in which the credit may be used by the taxpayer. | ||
(3) The credit amount that will be allowed for each | ||
taxable year. | ||
(4) For a project qualified under paragraphs (1), (2), | ||
or (4) of subsection (c) of Section 20, a requirement that | ||
the taxpayer shall maintain operations at the project | ||
location a minimum number of years not to exceed 15. For | ||
project qualified under paragraph (3) of subsection (c) of | ||
Section 20, a requirement that the taxpayer shall maintain | ||
operations at the project location a minimum number of | ||
years not to exceed 10. | ||
(5) A specific method for determining the number of | ||
new employees and if applicable, retained employees, | ||
employed during a taxable year. | ||
(6) A requirement that the taxpayer shall annually | ||
report to the Department the number of new employees, the | ||
incremental income tax withheld in connection with the new | ||
employees, and any other information the Department deems | ||
necessary and appropriate to perform its duties under this | ||
Act. | ||
(7) A requirement that the Director is authorized to | ||
verify with the appropriate State agencies the amounts | ||
reported under paragraph (6), and after doing so shall |
issue a certificate to the taxpayer stating that the | ||
amounts have been verified. | ||
(8) A requirement that the taxpayer shall provide | ||
written notification to the Director not more than 30 days | ||
after the taxpayer makes or receives a proposal that would | ||
transfer the taxpayer's State tax liability obligations to | ||
a successor taxpayer. | ||
(9) A detailed description of the number of new | ||
employees to be hired, and the occupation and payroll of | ||
full-time jobs to be created or retained because of the | ||
project. | ||
(10) The minimum investment the taxpayer will make in | ||
capital improvements, the time period for placing the | ||
property in service, and the designated location in | ||
Illinois for the investment. | ||
(11) A requirement that the taxpayer shall provide | ||
written notification to the Director and the Director's | ||
designee not more than 30 days after the taxpayer | ||
determines that the minimum job creation or retention, | ||
employment payroll, or investment no longer is or will be | ||
achieved or maintained as set forth in the terms and | ||
conditions of the agreement. Additionally, the | ||
notification should outline to the Department the number | ||
of layoffs, date of the layoffs, and detail taxpayer's | ||
efforts to provide career and training counseling for the | ||
impacted workers with industry-related certifications and |
trainings. | ||
(12) A provision that, if the total number of new | ||
employees falls below a specified level, the allowance of | ||
credit shall be suspended until the number of new | ||
employees equals or exceeds the agreement amount. | ||
(13) If applicable, a provision that specifies the | ||
statewide baseline at the time of application for retained | ||
employees. Additionally, the agreement must have a | ||
provision addressing if the total number retained | ||
employees falls below the statewide baseline, the | ||
allowance of the credit shall be suspended until the | ||
number of retained employees equals or exceeds the | ||
agreement amount. | ||
(14) A detailed description of the items for which the | ||
costs incurred by the Taxpayer will be included in the | ||
limitation on the Credit provided in Section 40. | ||
(15) A provision stating that if the taxpayer fails to | ||
meet either the investment or job creation and retention | ||
requirements specified in the agreement during the entire | ||
5-year period beginning on the first day of the first | ||
taxable year in which the agreement is executed and ending | ||
on the last day of the fifth taxable year after the | ||
agreement is executed, then the agreement is automatically | ||
terminated on the last day of the fifth taxable year after | ||
the agreement is executed, and the taxpayer is not | ||
entitled to the award of any credits for any of that 5-year |
period. | ||
(16) A provision stating that if the taxpayer ceases | ||
principal operations with the intent to permanently shut | ||
down the project in the State during the term of the | ||
Agreement, then the entire credit amount awarded to the | ||
taxpayer prior to the date the taxpayer ceases principal | ||
operations shall be returned to the Department and shall | ||
be reallocated to the local workforce investment area in | ||
which the project was located. | ||
(17) A provision stating that the Taxpayer must | ||
provide the reports outlined in Sections 50 and 55 on or | ||
before April 15 each year. | ||
(18) A provision requiring the taxpayer to report | ||
annually its contractual obligations or otherwise with a | ||
recycling facility for its operations. | ||
(19) Any other performance conditions or contract | ||
provisions the Department determines are necessary or | ||
appropriate. | ||
(20) Each taxpayer under paragraph (1) of subsection | ||
(c) of Section 20 above shall maintain labor neutrality | ||
toward any union organizing campaign for any employees of | ||
the taxpayer assigned to work on the premises of the REV | ||
Illinois Project Site. This paragraph shall not apply to | ||
an electric vehicle manufacturer, electric vehicle | ||
component part manufacturer, electric vehicle power supply | ||
manufacturer or any joint venture including an electric |
vehicle manufacturer, electric vehicle component part | ||
manufacturer, and electric vehicle power supply | ||
manufacturer, who is subject to collective bargaining | ||
agreement entered into prior to the taxpayer filing an | ||
application pursuant to this Act. | ||
(b) The Department shall post on its website the terms of | ||
each agreement entered into under this Act. Such information | ||
shall be posted within 10 days after entering into the | ||
agreement and must include the following: | ||
(1) the name of the taxpayer; | ||
(2) the location of the project; | ||
(3) the estimated value of the credit; | ||
(4) the number of new employee jobs and, if | ||
applicable, number of retained employee jobs at the | ||
project; and | ||
(5) whether or not the project is in an underserved | ||
area or energy transition area. | ||
Section 50. Diversity report on the taxpayer's workforce, | ||
board of directors, and vendors. | ||
(a) Each taxpayer with a workforce of 100 or more | ||
employees and with an agreement for a REV Illinois project | ||
under this Act shall, starting on April 15, 2025, and every | ||
year thereafter prior to April 15, for which the Taxpayer has | ||
an Agreement under this Act, submit to the Department an | ||
annual report detailing the diversity of the taxpayer's own |
workforce, including full-time and part-time employees, | ||
contractors, and board of directors' membership. Any taxpayer | ||
seeking to claim a credit under this Act that fails to timely | ||
submit the required report shall not receive a credit for that | ||
taxable year unless and until such report is finalized and | ||
submitted to the Department. The report should also address | ||
the Taxpayer's best efforts to meet or exceed the recruitment | ||
and hiring plan outlined in the application referenced in | ||
Section 20. Those reports shall be submitted in the form and | ||
manner required by the Department. | ||
(b) Vendor diversity and annual report. Each taxpayer with | ||
a workforce of 100 or more full-time employees shall, starting | ||
on April 15, 2025 and every year thereafter for which the | ||
taxpayer has an Agreement under this Act, report on the | ||
diversity of the vendors that it utilizes, for publication on | ||
the Department's website, and include the following | ||
information: | ||
(1) a point of contact for potential vendors to | ||
register with the taxpayer's REV Illinois Project; | ||
(2) certifications that the taxpayer accepts or | ||
recognizes for minority and women-owned businesses as | ||
entities; | ||
(3) the taxpayers goals to contract with diverse | ||
vendors, if any, for the next fiscal year for the entire | ||
budget of the Taxpayer's REV Illinois Project; | ||
(4) for the last fiscal year, the actual contractual |
spending for the entire budget of the REV Illinois Project | ||
and the actual spending for minority-owned businesses and | ||
women-owned businesses, expressed as a percentage of the | ||
total budget for actual spending for the REV Illinois | ||
project; | ||
(5) A narrative explaining the results of the report | ||
and the taxpayer's plan to address the voluntary goals for | ||
the next fiscal year; and | ||
(6) A copy of the taxpayer's submission of vendor | ||
diversity information to the federal government, including | ||
but not limited to vendor diversity goals and actual | ||
contractual spending for minority-and women-owned | ||
businesses, if the Taxpayer is a federal contractor and is | ||
required by the federal government to submit such | ||
information. | ||
Section 55. Sexual harassment policy report. Each taxpayer | ||
claiming a credit under this Act shall, prior to April 15 of | ||
each taxable year for which the taxpayer claims a credit under | ||
this Act, submit to the Department a report detailing that | ||
taxpayer's sexual harassment policy, which contains, at a | ||
minimum, the following information: (i) the illegality of | ||
sexual harassment; (ii) the definition of sexual harassment | ||
under State law; (iii) a description of sexual harassment, | ||
utilizing examples; (iv) the vendor's internal complaint | ||
process, including penalties; (v) the legal recourse and |
investigative and complaint processes available through the | ||
Department; (vi) directions on how to contact the Department; | ||
and (vii) protection against retaliation as provided by | ||
Section 6-101 of the Illinois Human Rights Act. A copy of the | ||
policy shall be provided to the Department upon request. The | ||
reports required under this Section shall be submitted in a | ||
form and manner determined by the Department. | ||
Section 60. Certificate of verification; submission to the | ||
Department of Revenue. | ||
(a) A taxpayer claiming a credit under this Act shall | ||
submit to the Department of Revenue a copy of the Director's | ||
certificate of verification under this Act for the taxable | ||
year. However, failure to submit a copy of the certificate | ||
with the taxpayer's tax return shall not invalidate a claim | ||
for a credit. | ||
(b) For a taxpayer to be eligible for a certificate of | ||
verification, the taxpayer shall provide proof as required by | ||
the Department, prior to the end of each calendar year, | ||
including, but not limited to, attestation by the taxpayer | ||
that: | ||
(1) The project has achieved the level of new employee | ||
jobs specified in the agreement. | ||
(2) The project has achieved the level of annual | ||
payroll in Illinois specified in its agreement. | ||
(3) The project has achieved the level of capital |
improvements in Illinois specified in its agreement. | ||
(4) The project has achieved and maintained carbon | ||
neutrality or one of the certifications specified in this | ||
Act. | ||
Section 65. Certified payroll. | ||
(a) Each contractor and subcontractor that is engaged in | ||
construction work on project facilities for a taxpayer who | ||
seeks to apply for a REV Construction Jobs credit shall: | ||
(1) make and keep, for a period of 5 years from the | ||
date of the last payment made on a contract or subcontract | ||
for construction of facilities for a REV Illinois Project | ||
pursuant to an agreement, records of all laborers and | ||
other workers employed by the contractor or subcontractor | ||
on the project; the records shall include: | ||
(A) the worker's name; | ||
(B) the worker's address; | ||
(C) the worker's telephone number, if available; | ||
(D) the worker's social security number; | ||
(E) the worker's classification or | ||
classifications; | ||
(F) the worker's gross and net wages paid in each | ||
pay period; | ||
(G) the worker's number of hours worked in each | ||
day; | ||
(H) the worker's starting and ending times of work |
each day; | ||
(I) the worker's hourly wage rate; and | ||
(J) the worker's hourly overtime wage rate; and | ||
(2) no later than the 15th day of each calendar month, | ||
provide a certified payroll for the immediately preceding | ||
month to the taxpayer in charge of the project; within 5 | ||
business days after receiving the certified payroll, the | ||
Taxpayer shall file the certified payroll with the | ||
Department of Labor and the Department; a certified | ||
payroll must be filed for only those calendar months | ||
during which construction on the REV Illinois Project | ||
facilities has occurred; the certified payroll shall | ||
consist of a complete copy of the records identified in | ||
paragraph (1), but may exclude the starting and ending | ||
times of work each day; the certified payroll shall be | ||
accompanied by a statement signed by the contractor or | ||
subcontractor or an officer, employee, or agent of the | ||
contractor or subcontractor which avers that: | ||
(A) he or she has examined the certified payroll | ||
records required to be submitted by the Act and such | ||
records are true and accurate; and | ||
(B) the contractor or subcontractor is aware that | ||
filing a certified payroll that he or she knows to be | ||
false is a Class A misdemeanor. | ||
A general contractor is not prohibited from relying on a | ||
certified payroll of a lower-tier subcontractor, provided the |
general contractor does not knowingly rely upon a | ||
subcontractor's false certification. | ||
(b) Any contractor or subcontractor subject to this | ||
Section, and any officer, employee, or agent of such | ||
contractor or subcontractor whose duty as an officer, | ||
employee, or agent it is to file a certified payroll under this | ||
Section, who willfully fails to file such a certified payroll, | ||
on or before the date such certified payroll is required to be | ||
filed and any person who willfully files a false certified | ||
payroll as to any material fact is in violation of this Act and | ||
guilty of a Class A misdemeanor and may be enforced by the | ||
Illinois Department of Labor or the Department. The Attorney | ||
General shall represented the Illinois Department of Labor or | ||
the Department in the proceeding. | ||
(c) The taxpayer in charge of the project shall keep the | ||
records submitted in accordance with this Section for a period | ||
of 5 years from the date of the last payment for work on a | ||
contract or subcontract for the project. | ||
(d) The records submitted in accordance with this Section | ||
shall be considered public records, except an employee's | ||
address, telephone number, and social security number, which | ||
shall be redacted. The records shall be made publicly | ||
available in accordance with the Freedom of Information Act. | ||
The contractor or subcontractor shall submit reports to the | ||
Department of Labor electronically that meet the requirements | ||
of this subsection and shall share the information with the |
Department to comply with the awarding of the REV Construction | ||
Jobs Credit. A contractor, subcontractor, or public body may | ||
retain records required under this Section in paper or | ||
electronic format. | ||
(e) Upon 7 business days' notice, the contractor and each | ||
subcontractor shall make available for inspection and copying | ||
at a location within this State during reasonable hours, the | ||
records identified in paragraph (1) of this subsection to the | ||
Taxpayer in charge of the Project, its officers and agents, | ||
the Director of the Department of Labor and his/her deputies | ||
and agents, and to federal, State, or local law enforcement | ||
agencies and prosecutors. | ||
Section 70. Noncompliance; notice; assessment. If the | ||
Director determines that a taxpayer who has received a credit | ||
under this Act is not complying with the requirements of the | ||
agreement or all of the provisions of this Act, the Director | ||
shall provide notice to the taxpayer of the alleged | ||
noncompliance and allow the taxpayer a hearing under the | ||
provisions of the Illinois Administrative Procedure Act. If, | ||
after such notice and any hearing, the Director determines | ||
that a noncompliance exists, the Director shall issue to the | ||
Department of Revenue notice to that effect, stating the | ||
noncompliance date. If, during the term of an agreement, the | ||
taxpayer ceases operations at a project location that is the | ||
subject of that agreement with the intent to terminate |
operations in the State, the Department and the Department of | ||
Revenue shall recapture from the taxpayer the entire credit | ||
amount awarded under that agreement prior to the date the | ||
taxpayer ceases operations. The Department shall, subject to | ||
appropriation, reallocate the recaptured amounts within 6 | ||
months to the local workforce investment area in which the | ||
project was located for purposes of workforce development, | ||
expanded opportunities for unemployed persons, and expanded | ||
opportunities for women and minority persons in the workforce. | ||
The taxpayer will be ineligible for future funding under other | ||
State tax credit or exemption programs for a 36-month period. | ||
Noncompliance of the agreement with result in a default of | ||
other agreements for State tax credits and exemption programs | ||
for the project. | ||
Section 75. Annual report. | ||
(a) On or before July 1 each year, the Department shall | ||
submit a report on the tax credit program under this Act to the | ||
Governor and the General Assembly. The report shall include | ||
information on the number of agreements that were entered into | ||
under this Act during the preceding calendar year, a | ||
description of the project that is the subject of each | ||
agreement, an update on the status of projects under | ||
agreements entered into before the preceding calendar year, | ||
and the sum of the credits awarded under this Act. A copy of | ||
the report shall be delivered to the Governor and to each |
member of the General Assembly. | ||
(b) The report must include, for each agreement: | ||
(1) the original estimates of the value of the credit | ||
and the number of new employee jobs to be created and, if | ||
applicable, the number of retained employee jobs; | ||
(2) any relevant modifications to existing agreements; | ||
(3) a statement of the progress made by each taxpayer | ||
in meeting the terms of the original agreement; | ||
(4) a statement of wages paid to new employees and, if | ||
applicable, retained employees in the State; and | ||
(5) a copy of the original agreement or link to the | ||
agreement on the Department's website. | ||
Section 80. Evaluation of tax credit program. The | ||
Department shall evaluate the tax credit program every three | ||
years and issue a report. The evaluation shall include an | ||
assessment of the effectiveness of the program in creating new | ||
jobs in Illinois and of the revenue impact of the program and | ||
may include a review of the practices and experiences of other | ||
states with similar programs. The Director shall submit a | ||
report on the evaluation to the Governor and the General | ||
Assembly three years after the Effective Date of the Act and | ||
every three years thereafter. | ||
Section 85. Sunset of new agreements. The Department shall | ||
not enter into any new Agreements under the provisions of this |
Act after December 31, 2027. | ||
Section 90. Prioritization of project review with the | ||
Department of Transportation. A project that would directly | ||
assist in the feasibility of locating an electric vehicle | ||
manufacturing facility, component parts manufacturing | ||
facility, or electric vehicle power supply manufacturing | ||
facility may be prioritized by the Secretary of Transportation | ||
if: (i) such project is included in the Highway Improvement | ||
Program; and (ii) the company will operate the facility that | ||
was approved to receive a REV Construction Jobs credit or a REV | ||
Illinois credit. Under no circumstances should a project be | ||
prioritized if it would compromise the delivery of a project | ||
to remediate an immediate threat to safety. | ||
Section 95. Utility tax exemptions for REV Illinois | ||
Project sites. The Department may certify a taxpayer with a | ||
REV Illinois credit for a Project that meets the | ||
qualifications under Section paragraphs (1), (2), and (4) of | ||
subsection (c) of Section 20, subject to an agreement under | ||
this Act for an exemption from the tax imposed at the project | ||
site by Section 2-4 of the Electricity Excise Tax Law. To | ||
receive such certification, the taxpayer must be registered to | ||
self-assess that tax. The taxpayer is also exempt from any | ||
additional charges added to the taxpayer's utility bills at | ||
the project site as a pass-on of State utility taxes under |
Section 9-222 of the Public Utilities Act. The taxpayer must | ||
meet any other the criteria for certification set by the | ||
Department. | ||
The Department shall determine the period during which the | ||
exemption from the Electricity Excise Tax Law and the charges | ||
imposed under Section 9-222 of the Public Utilities Act are in | ||
effect, which shall not exceed 10 years from the date of the | ||
taxpayer's initial receipt of certification from the | ||
Department under this Section. | ||
The Department is authorized to adopt rules to carry out | ||
the provisions of this Section, including procedures to apply | ||
for the exemptions; to define the amounts and types of | ||
eligible investments that an applicant must make in order to | ||
receive electricity excise tax exemptions or exemptions from | ||
the additional charges imposed under Section 9-222 and the | ||
Public Utilities Act; to approve such electricity excise tax | ||
exemptions for applicants whose investments are not yet placed | ||
in service; and to require that an applicant granted an | ||
electricity excise tax exemption or an exemption from | ||
additional charges under Section 9-222 of the Public Utilities | ||
Act repay the exempted amount if the Applicant fails to comply | ||
with the terms and conditions of the agreement. | ||
Upon certification by the Department under this Section, | ||
the Department shall notify the Department of Revenue of the | ||
certification. The Department of Revenue shall notify the | ||
public utilities of the exempt status of any taxpayer |
certified for exemption under this Act from the electricity | ||
excise tax or pass-on charges. The exemption status shall take | ||
effect within 3 months after certification of the taxpayer and | ||
notice to the Department of Revenue by the Department. | ||
Section 100. Investment tax credits for REV Illinois | ||
Projects. Subject to the conditions set forth in this Act, a | ||
Taxpayer is entitled to an investment tax credit toward taxes | ||
imposed pursuant to subsections (a) and (b) of Section 201 of | ||
the Illinois Income Tax Act for a taxable year in which the | ||
Taxpayer, in accordance with an Agreement under this Act for | ||
that taxable year, invests in qualified property which is | ||
placed in service at the site of a REV Illinois Project. The | ||
Department has authority to certify the amount of such | ||
investment tax credits to the Department of Revenue. The | ||
credit shall be 0.5% of the basis for such property and shall | ||
be determined in accordance with Section 237 of the Illinois | ||
Income Tax Act. The credit shall be available only in the | ||
taxable year in which the property is placed in service and | ||
shall not be allowed to the extent that it would reduce a | ||
taxpayer's liability for the tax imposed by subsections (a) | ||
and (b) of Section 201 of the Illinois Income Tax Act to below | ||
zero. Unused credit may be carried forward in accordance with | ||
Section 237 of the Illinois Income Tax Act for use in future | ||
taxable years. Any taxpayer qualifying for the REV Illinois | ||
Investment Tax Credit shall not be eligible for either the |
investment tax credits in Section 201(e), (f), or (h) of the | ||
Illinois Income Tax Act. | ||
Section 105. Building materials exemptions for REV | ||
Illinois Project sites. | ||
(a) The Department may certify a Taxpayer with a REV | ||
Illinois Project that meets the qualifications under | ||
paragraphs (1), (2), or (4) of subsection (c) of Section 20, | ||
subject to an agreement under this Act, for an exemption from | ||
any State or local use tax or retailers' occupation tax on | ||
building materials for the construction of its project | ||
facilities. The taxpayer must meet any criteria for | ||
certification set by the Department under this Act. | ||
The Department shall determine the period during which the | ||
exemption from State and local use tax and retailers' | ||
occupation tax are in effect, but in no event shall exceed 5 | ||
years in accordance with Section 5m of the Retailers' | ||
Occupation Tax Act. | ||
The Department is authorized to promulgate rules and | ||
regulations to carry out the provisions of this Section, | ||
including procedures to apply for the exemption; to define the | ||
amounts and types of eligible investments that an applicant | ||
must make in order to receive tax exemption; to approve such | ||
tax exemption for an applicant whose investments are not yet | ||
placed in service; and to require that an applicant granted | ||
exemption repay the exempted amount if the applicant fails to |
comply with the terms and conditions of the agreement with the | ||
Department. | ||
Upon certification by the Department under this Section, | ||
the Department shall notify the Department of Revenue of the | ||
certification. The exemption status shall take effect within 3 | ||
months after certification of the taxpayer and notice to the | ||
Department of Revenue by the Department. | ||
Section 900. The Illinois Procurement Code is amended by | ||
adding Section 45-100 as follows: | ||
(30 ILCS 500/45-100 new) | ||
Sec. 45-100. Electric vehicles. For purposes of this | ||
Section, "electric vehicle" means a vehicle that is | ||
exclusively powered by and refueled by electricity, must be | ||
plugged in to charge or utilize a pre-charged battery, and is | ||
permitted to operate on public roadways. "Electric vehicle" | ||
does not include hybrid electric vehicles and extended-range | ||
electric vehicles that are also equipped with conventional | ||
fueled propulsion or auxiliary engines. For purposes of this | ||
section, "Manufactured in Illinois" means, in the case of | ||
electric vehicles, that design, final assembly, processing, | ||
packaging, testing, or other process that adds value, quality, | ||
or reliability occurs in Illinois. | ||
In awarding contracts requiring the procurement of | ||
electric vehicles, preference shall be given to an otherwise |
qualified bidder or offeror who will fulfill the contract | ||
through the use of electric vehicles manufactured in Illinois. | ||
Specifications for contracts for electric vehicles shall | ||
include a price preference of 20% for electric vehicles | ||
manufactured in Illinois. The purchasing agency may require | ||
additional information from bidders or offerors to verify | ||
whether an electric vehicle is manufactured in Illinois as | ||
defined by this Section. | ||
Section 905. The Illinois Income Tax Act is amended by | ||
changing Sections 207 and 704A and by adding Sections 236 and | ||
237 as follows:
| ||
(35 ILCS 5/207) (from Ch. 120, par. 2-207)
| ||
Sec. 207. Net Losses.
| ||
(a) If after applying all of the (i) modifications
| ||
provided for in paragraph (2) of Section 203(b), paragraph (2) | ||
of Section
203(c) and paragraph (2) of Section 203(d) and (ii) | ||
the allocation and
apportionment provisions of Article 3 of | ||
this
Act and subsection (c) of this Section, the taxpayer's | ||
net income results in a loss;
| ||
(1) for any taxable year ending prior to December 31, | ||
1999, such loss
shall be allowed
as a carryover or | ||
carryback deduction in the manner allowed under Section
| ||
172 of the Internal Revenue Code;
| ||
(2) for any taxable year ending on or after December |
31, 1999 and prior
to December 31, 2003, such loss
shall be | ||
allowed as a carryback to each of the 2 taxable years | ||
preceding the
taxable year of such loss and shall be a net | ||
operating loss carryover to each of the
20 taxable years | ||
following the taxable year of such loss; and
| ||
(3) for any taxable year ending on or after December | ||
31, 2003 and prior to December 31, 2021 , such loss
shall be | ||
allowed as a net operating loss carryover to each of the 12 | ||
taxable years
following the taxable year of such loss, | ||
except as provided in subsection (d) ; and .
| ||
(4) for any taxable year ending on or after December
| ||
31, 2021, and for any net loss incurred in a taxable year | ||
prior to a taxable year ending on or after December
31, | ||
2021 for which the statute of limitation for utilization | ||
of such net loss has not expired, such loss shall be | ||
allowed as a net operating loss carryover to each of the 20 | ||
taxable years following the taxable year of such loss, | ||
except as provided in subsection (d). | ||
(a-5) Election to relinquish carryback and order of | ||
application of
losses.
| ||
(A) For losses incurred in tax years ending prior | ||
to December 31,
2003, the taxpayer may elect to | ||
relinquish the entire carryback period
with respect to | ||
such loss. Such election shall be made in the form and | ||
manner
prescribed by the Department and shall be made | ||
by the due date (including
extensions of time) for |
filing the taxpayer's return for the taxable year in
| ||
which such loss is incurred, and such election, once | ||
made, shall be
irrevocable.
| ||
(B) The entire amount of such loss shall be | ||
carried to the earliest
taxable year to which such | ||
loss may be carried. The amount of such loss which
| ||
shall be carried to each of the other taxable years | ||
shall be the excess, if
any, of the amount of such loss | ||
over the sum of the deductions for carryback or
| ||
carryover of such loss allowable for each of the prior | ||
taxable years to which
such loss may be carried.
| ||
(b) Any loss determined under subsection (a) of this | ||
Section must be carried
back or carried forward in the same | ||
manner for purposes of subsections (a)
and (b) of Section 201 | ||
of this Act as for purposes of subsections (c) and
(d) of | ||
Section 201 of this Act.
| ||
(c) Notwithstanding any other provision of this Act, for | ||
each taxable year ending on or after December 31, 2008, for | ||
purposes of computing the loss for the taxable year under | ||
subsection (a) of this Section and the deduction taken into | ||
account for the taxable year for a net operating loss | ||
carryover under paragraphs (1), (2), and (3) of subsection (a) | ||
of this Section, the loss and net operating loss carryover | ||
shall be reduced in an amount equal to the reduction to the net | ||
operating loss and net operating loss carryover to the taxable | ||
year, respectively, required under Section 108(b)(2)(A) of the |
Internal Revenue Code, multiplied by a fraction, the numerator | ||
of which is the amount of discharge of indebtedness income | ||
that is excluded from gross income for the taxable year (but | ||
only if the taxable year ends on or after December 31, 2008) | ||
under Section 108(a) of the Internal Revenue Code and that | ||
would have been allocated and apportioned to this State under | ||
Article 3 of this Act but for that exclusion, and the | ||
denominator of which is the total amount of discharge of | ||
indebtedness income excluded from gross income under Section | ||
108(a) of the Internal Revenue Code for the taxable year. The | ||
reduction required under this subsection (c) shall be made | ||
after the determination of Illinois net income for the taxable | ||
year in which the indebtedness is discharged.
| ||
(d) In the case of a corporation (other than a Subchapter S | ||
corporation), no carryover deduction shall be allowed under | ||
this Section for any taxable year ending after December 31, | ||
2010 and prior to December 31, 2012, and no carryover | ||
deduction shall exceed $100,000 for any taxable year ending on | ||
or after December 31, 2012 and prior to December 31, 2014 and | ||
for any taxable year ending on or after December 31, 2021 and | ||
prior to December 31, 2024; provided that, for purposes of | ||
determining the taxable years to which a net loss may be | ||
carried under subsection (a) of this Section, no taxable year | ||
for which a deduction is disallowed under this subsection, or | ||
for which the deduction would exceed $100,000 if not for this | ||
subsection, shall be counted. |
(e) In the case of a residual interest holder in a real | ||
estate mortgage investment conduit subject to Section 860E of | ||
the Internal Revenue Code, the net loss in subsection (a) | ||
shall be equal to: | ||
(1) the amount computed under subsection (a), without | ||
regard to this subsection (e), or if that amount is | ||
positive, zero; | ||
(2) minus an amount equal to the amount computed under | ||
subsection (a), without regard to this subsection (e), | ||
minus the amount that would be computed under subsection | ||
(a) if the taxpayer's federal taxable income were computed | ||
without regard to Section 860E of the Internal Revenue | ||
Code and without regard to this subsection (e). | ||
The modification in this subsection (e) is exempt from the | ||
provisions of Section 250. | ||
(Source: P.A. 102-16, eff. 6-17-21.)
| ||
(35 ILCS 5/236 new) | ||
Sec. 236. Reimagining Electric Vehicles in Illinois Tax | ||
credits. | ||
(a) For tax years beginning on or after January 1, 2025, a | ||
taxpayer who has entered into an agreement under the | ||
Reimagining Electric Vehicles in Illinois Act is entitled to a | ||
credit against the taxes imposed under subsections (a) and (b) | ||
of Section 201 of this Act in an amount to be determined in the | ||
Agreement. The taxpayer may elect to claim the credit, on or |
after January 1, 2025, against its obligation to pay over | ||
withholding under Section 704A of this Act as provided in | ||
paragraph (6) of subsection (b). If the taxpayer is a | ||
partnership or Subchapter S corporation, the credit shall be | ||
allowed to the partners or shareholders in accordance with the | ||
determination of income and distributive share of income under | ||
Sections 702 and 704 and subchapter S of the Internal Revenue | ||
Code. The Department, in cooperation with the Department of | ||
Commerce and Economic Opportunity, shall adopt rules to | ||
enforce and administer the provisions of this Section. This | ||
Section is exempt from the provisions of Section 250 of this | ||
Act. | ||
(b) The credit is subject to the conditions set forth in | ||
the agreement and the following limitations: | ||
(1) The tax credit may be in the form of either or both | ||
the REV Illinois Credit or the REV Construction Jobs | ||
Credit (as defined in the Reimagining Electric Vehicles in | ||
Illinois Act) and shall not exceed the percentage of | ||
incremental income tax and percentage of training costs | ||
permitted in that Act and in the agreement with respect to | ||
the project. | ||
(2) The amount of the credit allowed during a tax year | ||
plus the sum of all amounts allowed in prior tax years | ||
shall not exceed the maximum amount of credit established | ||
in the agreement. | ||
(3) The amount of the credit shall be determined on an |
annual basis. Except as applied in a carryover year | ||
pursuant to paragraph (4), the credit may not be applied | ||
against any State income tax liability in more than 15 | ||
taxable years. | ||
(4) The credit may not exceed the amount of taxes | ||
imposed pursuant to subsections (a) and (b) of Section 201 | ||
of this Act. Any credit that is unused in the year the | ||
credit is computed may be carried forward and applied to | ||
the tax liability of the 5 taxable years following the | ||
excess credit year. The credit shall be applied to the | ||
earliest year for which there is a tax liability. If there | ||
are credits from more than one tax year that are available | ||
to offset a liability, the earlier credit shall be applied | ||
first. | ||
(5) No credit shall be allowed with respect to any | ||
agreement for any taxable year ending after the | ||
noncompliance date. Upon receiving notification by the | ||
Department of Commerce and Economic Opportunity of the | ||
noncompliance of a taxpayer with an agreement, the | ||
Department shall notify the taxpayer that no credit is | ||
allowed with respect to that agreement for any taxable | ||
year ending after the noncompliance date, as stated in | ||
such notification. If any credit has been allowed with | ||
respect to an agreement for a taxable year ending after | ||
the noncompliance date for that agreement, any refund paid | ||
to the taxpayer for that taxable year shall, to the extent |
of that credit allowed, be an erroneous refund within the | ||
meaning of Section 912 of this Act. | ||
If, during any taxable year, a taxpayer ceases | ||
operations at a project location that is the subject of | ||
that agreement with the intent to terminate operations in | ||
the State, the tax imposed under subsections (a) and (b) | ||
of Section 201 of this Act for such taxable year shall be | ||
increased by the amount of any credit allowed under the | ||
Agreement for that Project location prior to the date the | ||
Taxpayer ceases operations. | ||
(6) Instead of claiming the credit against the taxes | ||
imposed under subsections (a) and (b) of Section 201 of | ||
this Act, with respect to the portion of a REV Illinois | ||
Credit that is calculated based on the Incremental Income | ||
Tax attributable to new employees and retained employees, | ||
the taxpayer may elect, in accordance with the Reimagining | ||
Electric Vehicles in Illinois Act, to claim the credit, on | ||
or after January 1, 2025, against its obligation to pay | ||
over withholding under Section 704A of the Illinois Income | ||
Tax Act. Any credit for which a Taxpayer makes such an | ||
election shall not be claimed against the taxes imposed | ||
under subsections (a) and (b) of Section 201 of this Act. | ||
(35 ILCS 5/237 new) | ||
Sec. 237. REV Illinois Investment Tax credits. | ||
(a) For tax years beginning on or after the effective date |
of this amendatory Act of the 102nd General Assembly, a | ||
taxpayer shall be allowed a credit against the tax imposed by | ||
subsections (a) and (b) of Section 201 for investment in | ||
qualified property which is placed in service at the site of a | ||
REV Illinois Project subject to an agreement between the | ||
taxpayer and the Department of Commerce and Economic | ||
Opportunity pursuant to the Reimagining Electric Vehicles in | ||
Illinois Act. For partners, shareholders of Subchapter S | ||
corporations, and owners of limited liability companies, if | ||
the liability company is treated as a partnership for purposes | ||
of federal and State income taxation, there shall be allowed a | ||
credit under this Section to be determined in accordance with | ||
the determination of income and distributive share of income | ||
under Sections 702 and 704 and Subchapter S of the Internal | ||
Revenue Code. The credit shall be 0.5% of the basis for such | ||
property. The credit shall be available only in the taxable | ||
year in which the property is placed in service and shall not | ||
be allowed to the extent that it would reduce a taxpayer's | ||
liability for the tax imposed by subsections (a) and (b) of | ||
Section 201 to below zero. The credit shall be allowed for the | ||
tax year in which the property is placed in service, or, if the | ||
amount of the credit exceeds the tax liability for that year, | ||
whether it exceeds the original liability or the liability as | ||
later amended, such excess may be carried forward and applied | ||
to the tax liability of the 5 taxable years following the | ||
excess credit year. The credit shall be applied to the |
earliest year for which there is a liability. If there is | ||
credit from more than one tax year that is available to offset | ||
a liability, the credit accruing first in time shall be | ||
applied first. | ||
(b) The term qualified property means property which: | ||
(1) is tangible, whether new or used, including | ||
buildings and structural components of buildings; | ||
(2) is depreciable pursuant to Section 167 of the | ||
Internal Revenue Code, except that "3-year property" as | ||
defined in Section 168(c)(2)(A) of that Code is not | ||
eligible for the credit provided by this Section; | ||
(3) is acquired by purchase as defined in Section | ||
179(d) of the Internal Revenue Code; | ||
(4) is used at the site of the REV Illinois Project by | ||
the taxpayer; and | ||
(5) has not been previously used in Illinois in such a | ||
manner and by such a person as would qualify for the credit | ||
provided by this Section. | ||
(c) The basis of qualified property shall be the basis | ||
used to compute the depreciation deduction for federal income | ||
tax purposes. | ||
(d) If the basis of the property for federal income tax | ||
depreciation purposes is increased after it has been placed in | ||
service at the site of the REV Illinois Project by the | ||
taxpayer, the amount of such increase shall be deemed property | ||
placed in service on the date of such increase in basis. |
(e) The term "placed in service" shall have the same | ||
meaning as under Section 46 of the Internal Revenue Code. | ||
(f) If during any taxable year, any property ceases to be | ||
qualified property in the hands of the taxpayer within 48 | ||
months after being placed in service, or the situs of any | ||
qualified property is moved from the REV Illinois Project site | ||
within 48 months after being placed in service, the tax | ||
imposed under subsections (a) and (b) of Section 201 for such | ||
taxable year shall be increased. Such increase shall be | ||
determined by (i) recomputing the investment credit which | ||
would have been allowed for the year in which credit for such | ||
property was originally allowed by eliminating such property | ||
from such computation, and (ii) subtracting such recomputed | ||
credit from the amount of credit previously allowed. For the | ||
purposes of this subsection (f), a reduction of the basis of | ||
qualified property resulting from a redetermination of the | ||
purchase price shall be deemed a disposition of qualified | ||
property to the extent of such reduction. | ||
(35 ILCS 5/704A) | ||
Sec. 704A. Employer's return and payment of tax withheld. | ||
(a) In general, every employer who deducts and withholds | ||
or is required to deduct and withhold tax under this Act on or | ||
after January 1, 2008 shall make those payments and returns as | ||
provided in this Section. | ||
(b) Returns. Every employer shall, in the form and manner |
required by the Department, make returns with respect to taxes | ||
withheld or required to be withheld under this Article 7 for | ||
each quarter beginning on or after January 1, 2008, on or | ||
before the last day of the first month following the close of | ||
that quarter. | ||
(c) Payments. With respect to amounts withheld or required | ||
to be withheld on or after January 1, 2008: | ||
(1) Semi-weekly payments. For each calendar year, each | ||
employer who withheld or was required to withhold more | ||
than $12,000 during the one-year period ending on June 30 | ||
of the immediately preceding calendar year, payment must | ||
be made: | ||
(A) on or before each Friday of the calendar year, | ||
for taxes withheld or required to be withheld on the | ||
immediately preceding Saturday, Sunday, Monday, or | ||
Tuesday; | ||
(B) on or before each Wednesday of the calendar | ||
year, for taxes withheld or required to be withheld on | ||
the immediately preceding Wednesday, Thursday, or | ||
Friday. | ||
Beginning with calendar year 2011, payments made under | ||
this paragraph (1) of subsection (c) must be made by | ||
electronic funds transfer. | ||
(2) Semi-weekly payments. Any employer who withholds | ||
or is required to withhold more than $12,000 in any | ||
quarter of a calendar year is required to make payments on |
the dates set forth under item (1) of this subsection (c) | ||
for each remaining quarter of that calendar year and for | ||
the subsequent calendar year.
| ||
(3) Monthly payments. Each employer, other than an | ||
employer described in items (1) or (2) of this subsection, | ||
shall pay to the Department, on or before the 15th day of | ||
each month the taxes withheld or required to be withheld | ||
during the immediately preceding month. | ||
(4) Payments with returns. Each employer shall pay to | ||
the Department, on or before the due date for each return | ||
required to be filed under this Section, any tax withheld | ||
or required to be withheld during the period for which the | ||
return is due and not previously paid to the Department. | ||
(d) Regulatory authority. The Department may, by rule: | ||
(1) Permit employers, in lieu of the requirements of | ||
subsections (b) and (c), to file annual returns due on or | ||
before January 31 of the year for taxes withheld or | ||
required to be withheld during the previous calendar year | ||
and, if the aggregate amounts required to be withheld by | ||
the employer under this Article 7 (other than amounts | ||
required to be withheld under Section 709.5) do not exceed | ||
$1,000 for the previous calendar year, to pay the taxes | ||
required to be shown on each such return no later than the | ||
due date for such return. | ||
(2) Provide that any payment required to be made under | ||
subsection (c)(1) or (c)(2) is deemed to be timely to the |
extent paid by electronic funds transfer on or before the | ||
due date for deposit of federal income taxes withheld | ||
from, or federal employment taxes due with respect to, the | ||
wages from which the Illinois taxes were withheld. | ||
(3) Designate one or more depositories to which | ||
payment of taxes required to be withheld under this | ||
Article 7 must be paid by some or all employers. | ||
(4) Increase the threshold dollar amounts at which | ||
employers are required to make semi-weekly payments under | ||
subsection (c)(1) or (c)(2). | ||
(e) Annual return and payment. Every employer who deducts | ||
and withholds or is required to deduct and withhold tax from a | ||
person engaged in domestic service employment, as that term is | ||
defined in Section 3510 of the Internal Revenue Code, may | ||
comply with the requirements of this Section with respect to | ||
such employees by filing an annual return and paying the taxes | ||
required to be deducted and withheld on or before the 15th day | ||
of the fourth month following the close of the employer's | ||
taxable year. The Department may allow the employer's return | ||
to be submitted with the employer's individual income tax | ||
return or to be submitted with a return due from the employer | ||
under Section 1400.2 of the Unemployment Insurance Act. | ||
(f) Magnetic media and electronic filing. With respect to | ||
taxes withheld in calendar years prior to 2017, any W-2 Form | ||
that, under the Internal Revenue Code and regulations | ||
promulgated thereunder, is required to be submitted to the |
Internal Revenue Service on magnetic media or electronically | ||
must also be submitted to the Department on magnetic media or | ||
electronically for Illinois purposes, if required by the | ||
Department. | ||
With respect to taxes withheld in 2017 and subsequent | ||
calendar years, the Department may, by rule, require that any | ||
return (including any amended return) under this Section and | ||
any W-2 Form that is required to be submitted to the Department | ||
must be submitted on magnetic media or electronically. | ||
The due date for submitting W-2 Forms shall be as | ||
prescribed by the Department by rule. | ||
(g) For amounts deducted or withheld after December 31, | ||
2009, a taxpayer who makes an election under subsection (f) of | ||
Section 5-15 of the Economic Development for a Growing Economy | ||
Tax Credit Act for a taxable year shall be allowed a credit | ||
against payments due under this Section for amounts withheld | ||
during the first calendar year beginning after the end of that | ||
taxable year equal to the amount of the credit for the | ||
incremental income tax attributable to full-time employees of | ||
the taxpayer awarded to the taxpayer by the Department of | ||
Commerce and Economic Opportunity under the Economic | ||
Development for a Growing Economy Tax Credit Act for the | ||
taxable year and credits not previously claimed and allowed to | ||
be carried forward under Section 211(4) of this Act as | ||
provided in subsection (f) of Section 5-15 of the Economic | ||
Development for a Growing Economy Tax Credit Act. The credit |
or credits may not reduce the taxpayer's obligation for any | ||
payment due under this Section to less than zero. If the amount | ||
of the credit or credits exceeds the total payments due under | ||
this Section with respect to amounts withheld during the | ||
calendar year, the excess may be carried forward and applied | ||
against the taxpayer's liability under this Section in the | ||
succeeding calendar years as allowed to be carried forward | ||
under paragraph (4) of Section 211 of this Act. The credit or | ||
credits shall be applied to the earliest year for which there | ||
is a tax liability. If there are credits from more than one | ||
taxable year that are available to offset a liability, the | ||
earlier credit shall be applied first. Each employer who | ||
deducts and withholds or is required to deduct and withhold | ||
tax under this Act and who retains income tax withholdings | ||
under subsection (f) of Section 5-15 of the Economic | ||
Development for a Growing Economy Tax Credit Act must make a | ||
return with respect to such taxes and retained amounts in the | ||
form and manner that the Department, by rule, requires and pay | ||
to the Department or to a depositary designated by the | ||
Department those withheld taxes not retained by the taxpayer. | ||
For purposes of this subsection (g), the term taxpayer shall | ||
include taxpayer and members of the taxpayer's unitary | ||
business group as defined under paragraph (27) of subsection | ||
(a) of Section 1501 of this Act. This Section is exempt from | ||
the provisions of Section 250 of this Act. No credit awarded | ||
under the Economic Development for a Growing Economy Tax |
Credit Act for agreements entered into on or after January 1, | ||
2015 may be credited against payments due under this Section. | ||
(g-1) For amounts deducted or withheld after December 31, | ||
2024, a taxpayer who makes an election under the Reimagining | ||
Electric Vehicles in Illinois Act shall be allowed a credit | ||
against payments due under this Section for amounts withheld | ||
during the first quarterly reporting period beginning after | ||
the certificate is issued equal to the portion of the REV | ||
Illinois Credit attributable to the incremental income tax | ||
attributable to new employees and retained employees as | ||
certified by the Department of Commerce and Economic | ||
Opportunity pursuant to an agreement with the taxpayer under | ||
the Reimagining Electric Vehicles in Illinois Act for the | ||
taxable year. The credit or credits may not reduce the | ||
taxpayer's obligation for any payment due under this Section | ||
to less than zero. If the amount of the credit or credits | ||
exceeds the total payments due under this Section with respect | ||
to amounts withheld during the quarterly reporting period, the | ||
excess may be carried forward and applied against the | ||
taxpayer's liability under this Section in the succeeding | ||
quarterly reporting period as allowed to be carried forward | ||
under paragraph (4) of Section 211 of this Act. The credit or | ||
credits shall be applied to the earliest quarterly reporting | ||
period for which there is a tax liability. If there are credits | ||
from more than one quarterly reporting period that are | ||
available to offset a liability, the earlier credit shall be |
applied first. Each employer who deducts and withholds or is | ||
required to deduct and withhold tax under this Act and who | ||
retains income tax withholdings this subsection must make a | ||
return with respect to such taxes and retained amounts in the | ||
form and manner that the Department, by rule, requires and pay | ||
to the Department or to a depositary designated by the | ||
Department those withheld taxes not retained by the taxpayer. | ||
For purposes of this subsection (g-1), the term taxpayer shall | ||
include taxpayer and members of the taxpayer's unitary | ||
business group as defined under paragraph (27) of subsection | ||
(a) of Section 1501 of this Act. This Section is exempt from | ||
the provisions of Section 250 of this Act. | ||
(h) An employer may claim a credit against payments due | ||
under this Section for amounts withheld during the first | ||
calendar year ending after the date on which a tax credit | ||
certificate was issued under Section 35 of the Small Business | ||
Job Creation Tax Credit Act. The credit shall be equal to the | ||
amount shown on the certificate, but may not reduce the | ||
taxpayer's obligation for any payment due under this Section | ||
to less than zero. If the amount of the credit exceeds the | ||
total payments due under this Section with respect to amounts | ||
withheld during the calendar year, the excess may be carried | ||
forward and applied against the taxpayer's liability under | ||
this Section in the 5 succeeding calendar years. The credit | ||
shall be applied to the earliest year for which there is a tax | ||
liability. If there are credits from more than one calendar |
year that are available to offset a liability, the earlier | ||
credit shall be applied first. This Section is exempt from the | ||
provisions of Section 250 of this Act. | ||
(i) Each employer with 50 or fewer full-time equivalent | ||
employees during the reporting period may claim a credit | ||
against the payments due under this Section for each qualified | ||
employee in an amount equal to the maximum credit allowable. | ||
The credit may be taken against payments due for reporting | ||
periods that begin on or after January 1, 2020, and end on or | ||
before December 31, 2027. An employer may not claim a credit | ||
for an employee who has worked fewer than 90 consecutive days | ||
immediately preceding the reporting period; however, such | ||
credits may accrue during that 90-day period and be claimed | ||
against payments under this Section for future reporting | ||
periods after the employee has worked for the employer at | ||
least 90 consecutive days. In no event may the credit exceed | ||
the employer's liability for the reporting period. Each | ||
employer who deducts and withholds or is required to deduct | ||
and withhold tax under this Act and who retains income tax | ||
withholdings under this subsection must make a return with | ||
respect to such taxes and retained amounts in the form and | ||
manner that the Department, by rule, requires and pay to the | ||
Department or to a depositary designated by the Department | ||
those withheld taxes not retained by the employer. | ||
For each reporting period, the employer may not claim a | ||
credit or credits for more employees than the number of |
employees making less than the minimum or reduced wage for the | ||
current calendar year during the last reporting period of the | ||
preceding calendar year. Notwithstanding any other provision | ||
of this subsection, an employer shall not be eligible for | ||
credits for a reporting period unless the average wage paid by | ||
the employer per employee for all employees making less than | ||
$55,000 during the reporting period is greater than the | ||
average wage paid by the employer per employee for all | ||
employees making less than $55,000 during the same reporting | ||
period of the prior calendar year. | ||
For purposes of this subsection (i): | ||
"Compensation paid in Illinois" has the meaning ascribed | ||
to that term under Section 304(a)(2)(B) of this Act. | ||
"Employer" and "employee" have the meaning ascribed to | ||
those terms in the Minimum Wage Law, except that "employee" | ||
also includes employees who work for an employer with fewer | ||
than 4 employees. Employers that operate more than one | ||
establishment pursuant to a franchise agreement or that | ||
constitute members of a unitary business group shall aggregate | ||
their employees for purposes of determining eligibility for | ||
the credit. | ||
"Full-time equivalent employees" means the ratio of the | ||
number of paid hours during the reporting period and the | ||
number of working hours in that period. | ||
"Maximum credit" means the percentage listed below of the | ||
difference between the amount of compensation paid in Illinois |
to employees who are paid not more than the required minimum | ||
wage reduced by the amount of compensation paid in Illinois to | ||
employees who were paid less than the current required minimum | ||
wage during the reporting period prior to each increase in the | ||
required minimum wage on January 1. If an employer pays an | ||
employee more than the required minimum wage and that employee | ||
previously earned less than the required minimum wage, the | ||
employer may include the portion that does not exceed the | ||
required minimum wage as compensation paid in Illinois to | ||
employees who are paid not more than the required minimum | ||
wage. | ||
(1) 25% for reporting periods beginning on or after | ||
January 1, 2020 and ending on or before December 31, 2020; | ||
(2) 21% for reporting periods beginning on or after | ||
January 1, 2021 and ending on or before December 31, 2021; | ||
(3) 17% for reporting periods beginning on or after | ||
January 1, 2022 and ending on or before December 31, 2022; | ||
(4) 13% for reporting periods beginning on or after | ||
January 1, 2023 and ending on or before December 31, 2023; | ||
(5) 9% for reporting periods beginning on or after | ||
January 1, 2024 and ending on or before December 31, 2024; | ||
(6) 5% for reporting periods beginning on or after | ||
January 1, 2025 and ending on or before December 31, 2025. | ||
The amount computed under this subsection may continue to | ||
be claimed for reporting periods beginning on or after January | ||
1, 2026 and: |
(A) ending on or before December 31, 2026 for | ||
employers with more than 5 employees; or | ||
(B) ending on or before December 31, 2027 for | ||
employers with no more than 5 employees. | ||
"Qualified employee" means an employee who is paid not | ||
more than the required minimum wage and has an average wage | ||
paid per hour by the employer during the reporting period | ||
equal to or greater than his or her average wage paid per hour | ||
by the employer during each reporting period for the | ||
immediately preceding 12 months. A new qualified employee is | ||
deemed to have earned the required minimum wage in the | ||
preceding reporting period. | ||
"Reporting period" means the quarter for which a return is | ||
required to be filed under subsection (b) of this Section. | ||
(Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17; | ||
100-863, eff. 8-14-18; 101-1, eff. 2-19-19.) | ||
Section 910. The Retailers' Occupation Tax Act is amended | ||
by adding Section 5m as follows: | ||
(35 ILCS 120/5m new) | ||
Sec. 5m. Building materials exemption; electric vehicle | ||
manufacturer, electric vehicle component parts manufacturer, | ||
and electric vehicle power supply manufacturer. Each retailer | ||
who makes a sale of building materials that will be | ||
incorporated into real estate in an electric vehicle |
manufacturing facility, an electric vehicle component parts | ||
manufacturing facility, or an electric vehicle power supply | ||
manufacturing facility REV Illinois Project which meets the | ||
qualifications under paragraphs (1), (2), or (4) of subsection | ||
(c) of Section 20 of the Reimagining Electric Vehicles in | ||
Illinois Act for which a certificate of exemption has been | ||
issued by the Department of Commerce and Economic Opportunity | ||
under the Reimagining Electric Vehicles in Illinois Act, may | ||
deduct receipts from such sales when calculating any State or | ||
local use and occupation taxes. No retailer who is eligible | ||
for the deduction or credit under Section 5k of this Act | ||
related to enterprise zones or Section 5l of this Act related | ||
to High Impact Businesses for a given sale shall be eligible | ||
for the deduction or credit authorized under this Section for | ||
that same sale. | ||
In addition to any other requirements to document the | ||
exemption allowed under this Section, the retailer must obtain | ||
from the purchaser's REV Illinois Building Materials Exemption | ||
certificate number issued by the Department. A construction | ||
contractor or other entity shall not make tax-free purchases | ||
unless it has an active REV Illinois Building Materials | ||
Exemption Certificate issued by the Department at the time of | ||
purchase. | ||
Upon request from the electric vehicle manufacturer, | ||
electric vehicle component parts manufacturer, or electric | ||
vehicle power supply manufacturer certified by the Department |
of Commerce and Economic Opportunity under REV Illinois Act, | ||
the Department shall issue a REV Illinois Building Materials | ||
Exemption Certificate for each construction contractor or | ||
other entity identified by the certified electric vehicle | ||
manufacturer, electric vehicle component parts manufacturer, | ||
or electric vehicle power supply manufacturer. The Department | ||
shall make the REV Illinois Building Materials Exemption | ||
Certificates available to each construction contractor or | ||
other entity and the certified electric vehicle manufacturer, | ||
electric vehicle component parts manufacturer, or electric | ||
vehicle power supply manufacturer. The request for REV | ||
Illinois Building Materials Exemption Certificates from the | ||
certified electric vehicle manufacturer, electric vehicle | ||
component parts manufacturer, or electric vehicle power supply | ||
manufacturer to the Department must include the following | ||
information: | ||
(1) the name and address of the construction | ||
contractor or other entity; | ||
(2) the name and location or address of the building | ||
project site; | ||
(3) the estimated amount of the exemption for each | ||
construction contractor or other entity for which a | ||
request for a REV Illinois Building Materials Exemption | ||
Certificate is made, based on a stated estimated average | ||
tax rate and the percentage of the contract that consists | ||
of materials; |
(4) the period of time over which supplies for the | ||
project are expected to be purchased; and | ||
(5) other reasonable information as the Department may | ||
require, including but not limited to FEIN numbers, to | ||
determine if the contractor or other entity, or any | ||
partner, or a corporate officer, and in the case of a | ||
limited liability company, any manager or member, of the | ||
construction contractor or other entity, is or has been | ||
the owner, a partner, a corporate officer, and in the case | ||
of a limited liability company, a manager or member, of a | ||
person that is in default for moneys due to the Department | ||
under this Act or any other tax or fee Act administered by | ||
the Department. | ||
The Department shall issue the REV Illinois Building | ||
Materials Exemption Certificates within 3 business days after | ||
receipt of request from the certified electric vehicle | ||
manufacturer, electric vehicle component parts manufacturer, | ||
or electric vehicle power supply manufacturer. This | ||
requirement does not apply in circumstances where the | ||
Department, for reasonable cause, is unable to issue the | ||
Exemption Certificate within 3 business days. The Department | ||
may refuse to issue a REV Illinois Building Materials | ||
Exemption Certificate if the owner, any partner, or a | ||
corporate officer, and in the case of a limited liability | ||
company, any manager or member, of the construction contractor | ||
or other entity is or has been the owner, a partner, a |
corporate officer, and in the case of a limited liability | ||
company, a manager or member, of a person that is in default | ||
for moneys due to the Department under this Act or any other | ||
tax or fee Act administered by the Department. | ||
The REV Illinois Building Materials Exemption Certificate | ||
shall contain language stating that if the construction | ||
contractor or other entity who is issued the Exemption | ||
Certificate makes a tax-exempt purchase, as described in this | ||
Section, that is not eligible for exemption under this Section | ||
or allows another person to make a tax-exempt purchase, as | ||
described in this Section, that is not eligible for exemption | ||
under this Section, then, in addition to any tax or other | ||
penalty imposed, the construction contractor or other entity | ||
is subject to a penalty equal to the tax that would have been | ||
paid by the retailer under this Act as well as any applicable | ||
local retailers' occupation tax on the purchase that is not | ||
eligible for the exemption. | ||
The Department, in its discretion, may require that the | ||
request for REV Illinois Building Materials Exemption | ||
Certificates be submitted electronically. The Department may, | ||
in its discretion, issue the Exemption Certificates | ||
electronically. The REV Illinois Building Materials Exemption | ||
Certificate number shall be designed in such a way that the | ||
Department can identify from the unique number on the | ||
Exemption Certificate issued to a given construction | ||
contractor or other entity, the name of the designated |
electric vehicle manufacturing, electric vehicle component | ||
parts manufacturing, or electric vehicle power supply | ||
manufacturing site and the construction contractor or other | ||
entity to whom the Exemption Certificate is issued. The REV | ||
Illinois Building Materials Exemption Certificate shall | ||
contain an expiration date, which shall be no more than 5 years | ||
after the date of issuance. At the request of the designated | ||
certified electric vehicle manufacturer, electric vehicle | ||
component parts manufacturer, or electric vehicle power supply | ||
manufacturer, the Department may renew a REV Illinois Building | ||
Materials Exemption Certificate. After the Department issues | ||
Exemption Certificates for a given designated electric vehicle | ||
manufacturing, electric vehicle component parts manufacturing, | ||
or electric vehicle power supply manufacturing site, the | ||
certified electric vehicle manufacturer, electric vehicle | ||
component parts manufacturer, or electric vehicle power supply | ||
manufacturer may notify the Department of additional | ||
construction contractors or other entities eligible for a REV | ||
Illinois Building Materials Exemption Certificate. Upon | ||
notification by the certified electric vehicle manufacturer, | ||
electric vehicle component parts manufacturer, or electric | ||
vehicle power supply manufacturer and subject to the other | ||
provisions of this Section, the Department shall issue a REV | ||
Illinois Building Materials Exemption Certificate to each | ||
additional construction contractor or other entity identified | ||
by the certified electric vehicle manufacturer, electric |
vehicle component parts manufacturer, or electric vehicle | ||
power supply manufacturer. A certified electric vehicle | ||
manufacturer, electric vehicle component parts manufacturer, | ||
or electric vehicle power supply manufacturer may notify the | ||
Department to rescind a REV Illinois Building Materials | ||
Exemption Certificate previously issued by the Department but | ||
that has not yet expired. Upon notification by the certified | ||
electric vehicle manufacturer, electric vehicle component | ||
parts manufacturer, or electric vehicle power supply | ||
manufacturer and subject to the other provisions of this | ||
Section, the Department shall issue the rescission of the REV | ||
Illinois Building Materials Exemption Certificate to the | ||
construction contractor or other entity identified by the | ||
certified electric vehicle manufacturer, electric vehicle | ||
component parts manufacturer, or electric vehicle power supply | ||
manufacturer and provide a copy to the certified electric | ||
vehicle manufacturer, electric vehicle component parts | ||
manufacturer, or electric vehicle power supply manufacturer. | ||
If the Department of Revenue determines that a | ||
construction contractor or other entity that was issued an | ||
Exemption Certificate under this Section made a tax-exempt | ||
purchase, as described in this Section, that was not eligible | ||
for exemption under this Section or allowed another person to | ||
make a tax-exempt purchase, as described in this Section, that | ||
was not eligible for exemption under this Section, then, in | ||
addition to any tax or other penalty imposed, the construction |
contractor or other entity is subject to a penalty equal to the | ||
tax that would have been paid by the retailer under this Act as | ||
well as any applicable local retailers' occupation tax on the | ||
purchase that was not eligible for the exemption. | ||
This Section is exempt from the provisions of Section | ||
2-70. | ||
Section 915. The Property Tax Code is amended by adding | ||
Section 18-184.15 as follows: | ||
(35 ILCS 200/18-184.15 new) | ||
Sec. 18-184.15. REV Illinois project facilities for | ||
electric vehicles, electric vehicle component parts, or | ||
electric vehicle power supply equipment; abatement. Any taxing | ||
district, upon a majority vote of its governing body, may, | ||
after determination of the assessed value as set forth in this | ||
Code, order the clerk of the appropriate municipality or | ||
county to abate any portion of real property taxes otherwise | ||
levied or extended by the taxing district on a REV Illinois | ||
Project facility owned by an electric vehicle manufacturer, | ||
electric vehicle component parts manufacturer, or an electric | ||
vehicle power supply manufacturer that is subject to an | ||
agreement with the Department of Commerce and Economic | ||
Opportunity under Section 45 of the Reimagining Electric | ||
Vehicles in Illinois Act, during the period of time such | ||
agreement is in effect as specified by the Department of |
Commerce and Economic Opportunity. | ||
Section 920. The Telecommunications Excise Tax Act is | ||
amended by changing Section 2 as follows:
| ||
(35 ILCS 630/2) (from Ch. 120, par. 2002)
| ||
Sec. 2. As used in this Article, unless the context | ||
clearly requires
otherwise:
| ||
(a) "Gross charge" means the amount paid for the act or
| ||
privilege of originating or receiving telecommunications in | ||
this State and
for all services and equipment provided in | ||
connection therewith by a
retailer, valued in money whether | ||
paid in money or otherwise, including
cash, credits, services | ||
and property of every kind or nature, and shall be
determined | ||
without any deduction on account of the cost of such
| ||
telecommunications, the cost of materials used, labor or | ||
service costs or
any other expense whatsoever. In case credit | ||
is extended, the amount
thereof shall be included only as and | ||
when paid.
"Gross charges" for private line service shall | ||
include charges imposed at
each channel termination point | ||
within this State, charges for the channel
mileage
between | ||
each channel termination point within this State, and charges | ||
for
that portion
of the interstate inter-office channel | ||
provided within Illinois. Charges for
that portion of the | ||
interstate inter-office channel provided in Illinois shall
be | ||
determined by the retailer as follows: (i) for interstate
|
inter-office channels having 2 channel termination points, | ||
only one of which
is in Illinois, 50% of the total charge | ||
imposed; or (ii) for interstate
inter-office channels having | ||
more than 2 channel termination points, one or
more of which
| ||
are in Illinois, an amount equal to the total charge
| ||
multiplied by a fraction, the numerator of which is the number | ||
of channel
termination points within Illinois and the | ||
denominator of which is the total
number of channel | ||
termination points. Prior to January 1,
2004, any method | ||
consistent with this
paragraph or other method that reasonably | ||
apportions the total charges for
interstate inter-office | ||
channels among the states in which channel terminations
points | ||
are located shall be accepted as a reasonable method to | ||
determine the
charges for
that portion of the interstate | ||
inter-office channel provided within Illinois
for that period. | ||
However, "gross charges" shall not include any of the
| ||
following:
| ||
(1) Any amounts added to a purchaser's bill because of | ||
a charge made
pursuant to (i) the tax imposed by this | ||
Article; (ii) charges added to
customers' bills pursuant | ||
to the provisions of Sections 9-221 or 9-222 of
the Public | ||
Utilities Act, as amended, or any similar charges added to
| ||
customers' bills by retailers who are not subject to rate | ||
regulation by
the Illinois Commerce Commission for the | ||
purpose of recovering any of the
tax liabilities or other | ||
amounts specified in such provisions of such
Act; (iii) |
the tax imposed by Section 4251 of the Internal Revenue | ||
Code;
(iv) 911 surcharges; or (v) the tax imposed by the | ||
Simplified Municipal
Telecommunications Tax Act.
| ||
(2) Charges for a sent collect telecommunication | ||
received outside of the
State.
| ||
(3) Charges for leased time on equipment or charges | ||
for the storage of
data or information for subsequent | ||
retrieval or the processing of data or
information | ||
intended to change its form or content. Such equipment
| ||
includes, but is not limited to, the use of calculators, | ||
computers, data
processing equipment, tabulating equipment | ||
or accounting equipment and also
includes the usage of | ||
computers under a time-sharing agreement.
| ||
(4) Charges for customer equipment, including such | ||
equipment that is
leased or rented by the customer from | ||
any source, wherein such charges are
disaggregated and | ||
separately identified from other charges.
| ||
(5) Charges to business enterprises certified under | ||
Section 9-222.1
of the Public Utilities Act, as amended, | ||
or to electric vehicle manufacturers, electric vehicle | ||
component parts manufacturers, or electric vehicle power | ||
supply manufacturers at REV Illinois Project sites for | ||
which a certificate of exemption has been issued by the | ||
Department of Commerce and Economic Opportunity under | ||
Section 95 of the Reimagining Electric Vehicles in | ||
Illinois Act, to the extent of such exemption
and during |
the period of time specified by the Department of Commerce | ||
and
Economic Opportunity.
| ||
(6) Charges for telecommunications and all services | ||
and equipment
provided in connection therewith between a | ||
parent corporation and its
wholly owned subsidiaries or | ||
between wholly owned subsidiaries when the tax
imposed | ||
under this Article has already been paid to a
retailer and | ||
only to the extent that the charges between the parent
| ||
corporation and wholly owned subsidiaries or between | ||
wholly owned
subsidiaries represent expense allocation
| ||
between the corporations and not the generation of profit | ||
for the
corporation rendering such service.
| ||
(7) Bad debts. Bad debt means any portion of a debt | ||
that is related
to a sale at retail for which gross charges | ||
are not otherwise deductible or
excludable that has become | ||
worthless or uncollectable, as determined under
applicable | ||
federal income tax standards. If the portion of the debt | ||
deemed to
be bad is subsequently paid, the retailer shall | ||
report and pay the tax on that
portion during the | ||
reporting period in which the payment is made.
| ||
(8) Charges paid by inserting coins in coin-operated | ||
telecommunication
devices.
| ||
(9) Amounts paid by telecommunications retailers under | ||
the
Telecommunications Municipal Infrastructure | ||
Maintenance Fee Act.
| ||
(10) Charges for nontaxable services or |
telecommunications if (i) those
charges are
aggregated
| ||
with other
charges for telecommunications that are | ||
taxable, (ii) those charges are not
separately stated
on | ||
the
customer bill or invoice, and (iii) the retailer can | ||
reasonably identify the
nontaxable
charges on
the | ||
retailer's books and records kept in the regular course of | ||
business. If the
nontaxable
charges cannot reasonably be | ||
identified, the gross charge from the sale of both
taxable
| ||
and nontaxable services or telecommunications billed on a | ||
combined basis shall
be
attributed to the taxable services | ||
or telecommunications. The burden of proving
nontaxable
| ||
charges
shall be on the retailer of the | ||
telecommunications.
| ||
(b) "Amount paid" means the amount charged to the | ||
taxpayer's service
address in this State regardless of where | ||
such amount is billed or paid.
| ||
(c) "Telecommunications", in addition to the meaning | ||
ordinarily and
popularly ascribed to it, includes, without | ||
limitation, messages or
information transmitted through use of | ||
local, toll and wide area telephone
service; private line | ||
services; channel services; telegraph services;
| ||
teletypewriter; computer exchange services; cellular mobile
| ||
telecommunications service; specialized mobile radio; | ||
stationary two way
radio; paging service; or any other form of | ||
mobile and portable one-way or
two-way communications; or any | ||
other transmission of messages or
information by electronic or |
similar means, between or among points by
wire, cable, | ||
fiber-optics, laser, microwave, radio, satellite or similar
| ||
facilities. As used in this Act, "private line" means a | ||
dedicated non-traffic
sensitive service for a single customer, | ||
that entitles the customer to
exclusive or priority use of a | ||
communications channel or group of channels,
from one or more | ||
specified locations to one or more other specified
locations. | ||
The definition of "telecommunications" shall not include value
| ||
added services in which computer processing applications are | ||
used to act on
the form, content, code and protocol of the | ||
information for purposes other
than transmission. | ||
"Telecommunications" shall not include purchases of
| ||
telecommunications by a telecommunications service provider | ||
for use as a
component part of the service provided by him to | ||
the ultimate retail
consumer who originates or terminates the | ||
taxable end-to-end
communications. Carrier access charges, | ||
right of access charges, charges
for use of inter-company | ||
facilities, and all telecommunications resold in
the | ||
subsequent provision of, used as a component of, or integrated | ||
into
end-to-end telecommunications service shall be | ||
non-taxable as sales for resale.
| ||
(d) "Interstate telecommunications" means all | ||
telecommunications that
either originate or terminate outside | ||
this State.
| ||
(e) "Intrastate telecommunications" means all | ||
telecommunications that
originate and terminate within this |
State.
| ||
(f) "Department" means the Department of Revenue of the | ||
State of Illinois.
| ||
(g) "Director" means the Director of Revenue for the | ||
Department of
Revenue of the State of Illinois.
| ||
(h) "Taxpayer" means a person who individually or through | ||
his agents,
employees or permittees engages in the act or | ||
privilege of originating or
receiving telecommunications in | ||
this State and who incurs a tax liability
under this Article.
| ||
(i) "Person" means any natural individual, firm, trust, | ||
estate, partnership,
association, joint stock company, joint | ||
venture, corporation, limited liability
company, or a | ||
receiver, trustee, guardian or other representative appointed | ||
by
order of any court, the Federal and State governments, | ||
including State
universities created by statute or any city, | ||
town, county or other political
subdivision of this State.
| ||
(j) "Purchase at retail" means the acquisition, | ||
consumption or use of
telecommunication through a sale at | ||
retail.
| ||
(k) "Sale at retail" means the transmitting, supplying or | ||
furnishing of
telecommunications and all services and | ||
equipment provided in connection
therewith for a consideration | ||
to persons other than the Federal and State
governments, and | ||
State universities created by statute and other than between
a | ||
parent corporation and its wholly owned subsidiaries or | ||
between wholly
owned subsidiaries for their use or consumption |
and not for resale.
| ||
(l) "Retailer" means and includes every person engaged in | ||
the business
of making sales at retail as defined in this | ||
Article. The Department may, in
its discretion, upon | ||
application, authorize the collection of the tax
hereby | ||
imposed by any retailer not maintaining a place of business | ||
within
this State, who, to the satisfaction of the Department, | ||
furnishes adequate
security to insure collection and payment | ||
of the tax. Such retailer shall
be issued, without charge, a | ||
permit to collect such tax. When so
authorized, it shall be the | ||
duty of such retailer to collect the tax upon
all of the gross | ||
charges for telecommunications in this State in the same
| ||
manner and subject to the same requirements as a retailer | ||
maintaining a
place of business within this State. The permit | ||
may be revoked by the
Department at its discretion.
| ||
(m) "Retailer maintaining a place of business in this | ||
State", or any
like term, means and includes any retailer | ||
having or maintaining within
this State, directly or by a | ||
subsidiary, an office, distribution
facilities, transmission | ||
facilities, sales office, warehouse or other place
of | ||
business, or any agent or other representative operating | ||
within this
State under the authority of the retailer or its | ||
subsidiary, irrespective
of whether such place of business or | ||
agent or other representative is
located here permanently or | ||
temporarily, or whether such retailer or
subsidiary is | ||
licensed to do business in this State.
|
(n) "Service address" means the location of | ||
telecommunications equipment
from which the telecommunications | ||
services are originated or at which
telecommunications | ||
services are received by a taxpayer. In the event this may
not | ||
be a defined location, as in the case of mobile phones, paging | ||
systems,
maritime systems, service address means the | ||
customer's place of primary use
as defined in the Mobile | ||
Telecommunications Sourcing Conformity Act. For
air-to-ground | ||
systems and the like, service address shall mean the location
| ||
of a taxpayer's primary use of the telecommunications | ||
equipment as defined by
telephone number, authorization code, | ||
or location in Illinois where bills are
sent.
| ||
(o) "Prepaid telephone calling arrangements" mean the | ||
right to exclusively
purchase telephone or telecommunications | ||
services that must be paid for in
advance and enable the | ||
origination of one or more intrastate, interstate, or
| ||
international telephone calls or other telecommunications | ||
using an access
number, an authorization code, or both, | ||
whether manually or electronically
dialed, for which payment | ||
to a retailer must be made in advance, provided
that, unless | ||
recharged, no further service is provided once that prepaid
| ||
amount of service has been consumed. Prepaid telephone calling | ||
arrangements
include the recharge of a prepaid calling | ||
arrangement. For purposes of this
subsection, "recharge" means | ||
the purchase of additional prepaid telephone or
| ||
telecommunications services whether or not the purchaser |
acquires a different
access number or authorization code. | ||
"Prepaid telephone calling arrangement"
does not include an | ||
arrangement whereby a customer purchases a payment card and
| ||
pursuant to which the service provider reflects the amount of | ||
such purchase as
a credit on an invoice issued to that customer | ||
under an existing subscription
plan.
| ||
(Source: P.A. 93-286, 1-1-04; 94-793, eff. 5-19-06.)
| ||
Section 925. The Electricity Excise Tax Law is amended by | ||
changing Section 2-4 as follows:
| ||
(35 ILCS 640/2-4)
| ||
Sec. 2-4. Tax imposed.
| ||
(a) Except as provided in subsection (b), a tax is
imposed | ||
on the privilege
of using in this State electricity purchased | ||
for use or
consumption and not for resale, other than by | ||
municipal corporations owning and
operating a local | ||
transportation system for public service, at the following
| ||
rates per
kilowatt-hour delivered to the purchaser:
| ||
(i) For the first 2000 kilowatt-hours used or
consumed | ||
in a month: 0.330 cents per kilowatt-hour;
| ||
(ii) For the next 48,000 kilowatt-hours used or
| ||
consumed in a month: 0.319 cents per kilowatt-hour;
| ||
(iii) For the next 50,000 kilowatt-hours used or
| ||
consumed in a month: 0.303 cents per kilowatt-hour;
| ||
(iv) For the next 400,000 kilowatt-hours used or
|
consumed in a month: 0.297 cents per kilowatt-hour;
| ||
(v) For the next 500,000 kilowatt-hours used or
| ||
consumed in a month: 0.286 cents per kilowatt-hour;
| ||
(vi) For the next 2,000,000 kilowatt-hours used or
| ||
consumed in a month: 0.270 cents per kilowatt-hour;
| ||
(vii) For the next 2,000,000 kilowatt-hours used or
| ||
consumed in a month: 0.254 cents per kilowatt-hour;
| ||
(viii) For the next 5,000,000 kilowatt-hours used
or | ||
consumed in a month: 0.233 cents per kilowatt-hour;
| ||
(ix) For the next 10,000,000 kilowatt-hours used or
| ||
consumed in a month: 0.207 cents per kilowatt-hour;
| ||
(x) For all electricity in excess of 20,000,000
| ||
kilowatt-hours used or consumed in a month: 0.202 cents
| ||
per kilowatt-hour.
| ||
Provided, that in lieu of the foregoing rates, the tax
is | ||
imposed on a self-assessing purchaser at the rate of 5.1%
of | ||
the self-assessing purchaser's purchase price for
all | ||
electricity distributed, supplied, furnished, sold,
| ||
transmitted and delivered to the self-assessing purchaser in a
| ||
month.
| ||
(b) A tax is imposed on the privilege of using in this | ||
State electricity
purchased from a municipal system or | ||
electric cooperative, as defined in
Article XVII of the Public | ||
Utilities Act, which has not made an election as
permitted by | ||
either Section 17-200 or Section 17-300 of such Act, at the | ||
lesser
of 0.32 cents per kilowatt hour of all electricity |
distributed, supplied,
furnished, sold, transmitted, and | ||
delivered by such municipal system or
electric cooperative to | ||
the purchaser or 5% of each such purchaser's purchase
price | ||
for all electricity distributed, supplied, furnished, sold, | ||
transmitted,
and delivered by such municipal system or | ||
electric cooperative to the
purchaser, whichever is the lower | ||
rate as applied to each purchaser in each
billing period.
| ||
(c) The tax imposed by this Section 2-4 is not imposed with
| ||
respect to any use of electricity by business enterprises
| ||
certified under Section 9-222.1 or 9-222.1A of the Public | ||
Utilities Act,
as amended, to the extent of such exemption and | ||
during the
time specified by the Department of Commerce and | ||
Economic Opportunity; or with respect to any transaction in | ||
interstate
commerce, or otherwise, to the extent to which such
| ||
transaction may not, under the Constitution and statutes of
| ||
the United States, be made the subject of taxation by this
| ||
State.
| ||
(d) The tax imposed by this Section 2-4 is not imposed with | ||
respect to any use of electricity at a REV Illinois Project | ||
site that has received a certification for tax exemption from | ||
the Department of Commerce and Economic Opportunity pursuant | ||
to Section 95 of the Reimagining Electric Vehicles in Illinois | ||
Act, to the extent of such exemption, which shall be no more | ||
than 10 years. | ||
(Source: P.A. 94-793, eff. 5-19-06.)
|
Section 930. The Public Utilities Act is amended by | ||
changing Section 9-222 as follows:
| ||
(220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
| ||
Sec. 9-222.
Whenever a tax is imposed upon a public | ||
utility
engaged in the business of distributing, supplying,
| ||
furnishing, or selling gas for use or consumption pursuant to | ||
Section 2 of
the Gas Revenue Tax Act, or whenever a tax is
| ||
required to be collected by a delivering supplier pursuant to | ||
Section 2-7 of
the Electricity Excise Tax Act, or whenever a | ||
tax is imposed upon a public
utility pursuant to Section
2-202 | ||
of this Act, such utility may charge its customers, other than
| ||
customers who are high impact businesses under Section 5.5
of | ||
the Illinois Enterprise Zone Act, electric vehicle | ||
manufacturers, electric vehicle component parts manufacturers, | ||
or electric vehicle power supply equipment manufacturers at | ||
REV Illinois Project sites as certified under Section 95 of | ||
the Reimagining Electric Vehicles in Illinois Act, or | ||
certified business enterprises
under Section 9-222.1 of this | ||
Act, to the extent of such exemption and
during the period in | ||
which such exemption is in effect,
in addition to any rate | ||
authorized by this Act, an additional
charge equal to the | ||
total amount of such taxes. The exemption of this
Section | ||
relating to high impact businesses shall be subject to the
| ||
provisions of subsections (a), (b), and (b-5) of Section 5.5 | ||
of
the Illinois
Enterprise Zone Act. This requirement shall |
not
apply to taxes on invested capital imposed pursuant to the | ||
Messages Tax
Act, the Gas Revenue Tax Act and the Public | ||
Utilities Revenue Act.
Such utility shall file with the | ||
Commission
a supplemental schedule which shall specify such | ||
additional charge and
which shall become effective upon filing | ||
without further notice. Such
additional charge shall be shown | ||
separately on the utility bill to each
customer. The | ||
Commission shall have the power to investigate whether or
not | ||
such supplemental schedule correctly specifies such additional | ||
charge,
but shall have no power to suspend such supplemental | ||
schedule. If the
Commission finds, after a hearing, that such | ||
supplemental schedule does not
correctly specify such | ||
additional charge, it shall by order require a
refund to the | ||
appropriate customers of the excess, if any, with interest,
in | ||
such manner as it shall deem just and reasonable, and in and by | ||
such
order shall require the utility to file an amended | ||
supplemental schedule
corresponding to the finding and order | ||
of the Commission.
Except with respect to taxes imposed on | ||
invested capital,
such tax liabilities shall be recovered from | ||
customers solely by means of
the additional charges authorized | ||
by this Section.
| ||
(Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
| ||
Section 935. The Environmental Protection Act is amended | ||
by adding Section 52.10 as follows: |
(415 ILCS 5/52.10 new) | ||
Sec. 52.10. Electric Vehicle Permitting Task Force. | ||
(a) The Electric Vehicle Permitting Task Force is hereby | ||
created within the Environmental Protection Agency. | ||
(b) The Task Force shall consist of the following members, | ||
which shall represent the diversity of the people of Illinois: | ||
(1) The Director of the Environmental Protection | ||
Agency or his or her designee; | ||
(2) The Director of Natural Resources or his or her | ||
designee; | ||
(3) The Secretary of Transportation or their designee; | ||
(4) 8 members appointed by the Governor as follows: | ||
(A) one member of a statewide organization | ||
representing manufacturers; | ||
(B) one member of a statewide organization | ||
representing business interests; | ||
(C) one member representing an environmental | ||
justice organization; | ||
(D) one member representing a statewide | ||
environmental advocacy organization; | ||
(E) one member representing the electric vehicle | ||
industry; | ||
(F) one member representing the waste management | ||
industry; | ||
(G) one member of a statewide organization | ||
representing agricultural interests; and |
(H) one member representing a labor organization. | ||
(c) The duties and responsibilities of the Task Force | ||
include the following: | ||
(1) identify existing and potential challenges faced | ||
by the electric vehicle industry with respect to the | ||
process for obtaining necessary permits from the | ||
Environmental Protection Agency, the Department of Natural | ||
Resources, and the Department of Transportation, and | ||
potential solutions; | ||
(2) conduct an assessment of State permitting fees, | ||
including those necessary for electric vehicle investment | ||
in Illinois, and the revenue generated by those fees; | ||
(3) assess the permitting needs of the electric | ||
vehicle industry, including electric vehicle | ||
manufacturers, electric vehicle power supply equipment | ||
manufacturers, and electric vehicle component parts | ||
manufacturers; | ||
(4) recommend changes to expedite permitting processes | ||
to support the rapid growth of the electric vehicle | ||
industry in Illinois, including support for electric | ||
vehicle businesses locating or relocating in Illinois; | ||
(5) analyze anticipated staffing needs across State | ||
agencies to support expedited permitting efforts; | ||
(6) recommend adjustments to the fee structure for | ||
state permits, including those permits necessary for | ||
electric vehicle investment in Illinois, that will support |
increased staffing at state agencies; | ||
(7) Consider the impact of State and local permitting | ||
issues on electric vehicle charging station deployments, | ||
and make recommendations on best practices to streamline | ||
permitting related to electric vehicle charging stations; | ||
and | ||
(8) recommend legislative and regulatory actions that | ||
are necessary to support changes to permitting processes. | ||
(d) The Task Force shall not consider or recommend changes | ||
to environmental permitting standards outside of the scope of | ||
the duties and responsibilities outlined in subsection (c). | ||
(e) Appointments for the Task Force shall be made no later | ||
than December 15, 2021. The Task Force shall issue a final | ||
report based upon its findings and recommendations and submit | ||
the report to the Governor and the General Assembly no later | ||
than March 1, 2022. | ||
(f) Members of the Task Force shall serve without | ||
compensation. The Environmental Protection Agency shall | ||
provide administrative support to the Task Force. | ||
(g) The Task Force shall be dissolved upon the filing of | ||
its report. | ||
(h) This Section is repealed on December 31, 2022. | ||
Section 940. The Motor Vehicle Franchise Act is amended by | ||
changing Section 6 as follows:
|
(815 ILCS 710/6) (from Ch. 121 1/2, par. 756)
| ||
(Text of Section before amendment by P.A. 102-232 )
| ||
Sec. 6. Warranty agreements; claims; approval; payment; | ||
written
disapproval. | ||
(a) Every manufacturer, distributor, wholesaler, | ||
distributor branch
or division, factory branch or division, or | ||
wholesale branch or division
shall properly fulfill any | ||
warranty agreement and adequately and fairly
compensate each | ||
of its motor vehicle dealers for labor and parts.
| ||
(b) In no event shall such compensation fail to include | ||
reasonable
compensation for diagnostic work, as well as repair | ||
service, labor, and
parts. Time allowances for the diagnosis | ||
and performance of warranty
work and service shall be
| ||
reasonable and adequate for the work to be performed. In the | ||
determination
of what constitutes reasonable compensation | ||
under this Section, the principal
factor to be given | ||
consideration shall be the prevailing wage rates being
paid by | ||
the dealer in the relevant market area in which the motor | ||
vehicle
dealer is doing business, and in no event shall such | ||
compensation of a motor
vehicle dealer for warranty service be | ||
less than the rates charged by such
dealer for like service to | ||
retail customers for nonwarranty service and
repairs. The | ||
franchiser shall reimburse the franchisee for any parts
| ||
provided in satisfaction of a warranty at the prevailing | ||
retail price charged
by that dealer for the same parts when not | ||
provided in satisfaction of a
warranty; provided that such |
motor vehicle franchisee's prevailing retail price
is not | ||
unreasonable when compared with that of the holders of motor | ||
vehicle
franchises from the same motor vehicle franchiser for | ||
identical merchandise
in the geographic area in which the | ||
motor vehicle franchisee is engaged in
business. All claims, | ||
either original or resubmitted, made by motor vehicle
dealers | ||
hereunder and under Section 5 for such labor and parts shall be | ||
either
approved or disapproved within 30 days following their | ||
submission. All
approved claims shall be paid within 30 days | ||
following their approval. The
motor vehicle dealer who submits | ||
a claim which is disapproved shall be notified
in writing of | ||
the disapproval within the same period, and each such notice
| ||
shall state the specific grounds upon which the disapproval is | ||
based. The
motor vehicle dealer shall be permitted to correct | ||
and resubmit such
disapproved claims within 30 days of receipt | ||
of disapproval. Any claims not
specifically disapproved in | ||
writing within 30 days from their submission shall
be deemed | ||
approved and payment shall follow within 30 days. The | ||
manufacturer
or franchiser shall have the right to require | ||
reasonable documentation for
claims and to audit such claims | ||
within a one year period from the date the
claim was paid or | ||
credit issued by the manufacturer or franchiser, and to
charge | ||
back any false or unsubstantiated claims. The audit and charge | ||
back
provisions of this Section also apply to all other | ||
incentive and reimbursement
programs for a period of one year | ||
after the date the claim was paid or credit issued by the |
manufacturer or franchiser. However, the manufacturer retains | ||
the
right to charge back any fraudulent claim if the | ||
manufacturer establishes in
a court of competent jurisdiction | ||
in this State that the claim is fraudulent.
| ||
(c) The motor vehicle franchiser shall not, by agreement, | ||
by restrictions
upon reimbursement, or otherwise, restrict the | ||
nature and extent of services to
be rendered or parts to be | ||
provided so that such restriction prevents the motor
vehicle | ||
franchisee from satisfying the warranty by rendering services | ||
in a good
and workmanlike manner and providing parts which are | ||
required in accordance
with generally accepted standards. Any | ||
such restriction shall constitute a
prohibited practice.
| ||
(d) For the purposes of this Section, the "prevailing | ||
retail price
charged by that dealer for the same parts" means | ||
the price paid by
the motor vehicle franchisee for parts, | ||
including all shipping and other
charges, multiplied by the | ||
sum of 1.0 and the franchisee's average percentage
markup over | ||
the price paid by the motor vehicle franchisee for parts | ||
purchased
by the motor vehicle franchisee from the motor | ||
vehicle franchiser and sold at
retail. The motor vehicle | ||
franchisee may establish average percentage markup
under this | ||
Section by submitting to the motor vehicle franchiser 100 | ||
sequential
customer paid service repair orders or 90 days of | ||
customer paid service repair
orders, whichever is less, | ||
covering repairs made no more than 180 days before
the | ||
submission, and declaring what the average percentage markup |
is. The
average percentage markup so declared shall go into | ||
effect 30 days following
the declaration, subject to audit of | ||
the submitted repair orders by the motor
vehicle franchiser | ||
and adjustment of the average percentage markup based on
that | ||
audit. Any audit must be conducted within 30 days following | ||
the
declaration. Only retail sales not involving warranty | ||
repairs, parts covered
by subsection (e) of this Section, or | ||
parts supplied for routine vehicle
maintenance, shall be | ||
considered in calculating average percentage markup. No
motor | ||
vehicle franchiser shall require a motor vehicle franchisee to | ||
establish
average percentage markup by a methodology, or by | ||
requiring information, that
is unduly burdensome or time | ||
consuming to provide, including, but not limited
to, part by | ||
part or transaction by transaction calculations. A motor | ||
vehicle
franchisee shall not request a change in the average | ||
percentage markup more
than twice in one calendar year.
| ||
(e) If a motor vehicle franchiser supplies a part or parts | ||
for use in a
repair rendered under a warranty other than by | ||
sale of that part or parts to
the motor vehicle franchisee, the | ||
motor vehicle franchisee shall be entitled to
compensation | ||
equivalent to the motor vehicle franchisee's average | ||
percentage
markup on the part or parts, as if the part or parts | ||
had been sold to the motor
vehicle franchisee by the motor | ||
vehicle franchiser. The requirements of this
subsection (e) | ||
shall not apply to entire engine assemblies and entire
| ||
transmission
assemblies. In the case of those assemblies, the |
motor vehicle franchiser
shall reimburse the motor vehicle | ||
franchisee in the amount of 30% of what the
motor vehicle | ||
franchisee would have paid the motor vehicle franchiser for | ||
the
assembly if the assembly had not been supplied by the | ||
franchiser other than by
the sale of that assembly to the motor | ||
vehicle franchisee.
| ||
(f) The obligations imposed on motor vehicle franchisers | ||
by this Section
shall apply to any parent, subsidiary, | ||
affiliate, or agent of the motor vehicle
franchiser, any | ||
person under common ownership or control, any employee of the
| ||
motor vehicle franchiser, and any person holding 1% or more of | ||
the shares of
any class of securities or other ownership | ||
interest in the motor vehicle
franchiser, if a warranty or | ||
service or repair plan is issued by that person
instead of or | ||
in addition to one issued by the motor vehicle franchiser.
| ||
(g) (1) Any motor vehicle franchiser and at least a | ||
majority of its
Illinois franchisees of the same line make may | ||
agree in an express written
contract citing this Section upon | ||
a uniform warranty reimbursement policy used
by contracting | ||
franchisees to perform warranty repairs. The policy shall only
| ||
involve either reimbursement for parts used in warranty | ||
repairs or the use
of a Uniform Time Standards Manual, or both. | ||
Reimbursement for parts under the
agreement shall be used | ||
instead of the franchisees' "prevailing retail price
charged | ||
by that dealer for the same parts" as defined in this Section | ||
to
calculate compensation due from the franchiser for parts |
used in warranty
repairs. This Section does not authorize a | ||
franchiser and its Illinois
franchisees to establish a uniform | ||
hourly labor reimbursement.
| ||
Each franchiser shall only have one such agreement with | ||
each line make.
Any such agreement shall:
| ||
(A) Establish a uniform parts reimbursement rate. The | ||
uniform parts
reimbursement rate shall be greater than the | ||
franchiser's nationally
established
parts reimbursement | ||
rate in effect at the time the first such agreement | ||
becomes
effective; however, any subsequent agreement shall | ||
result in a uniform
reimbursement rate that is greater or | ||
equal to the rate set forth in the
immediately prior | ||
agreement.
| ||
(B) Apply to all warranty repair orders written during | ||
the period that
the agreement is effective.
| ||
(C) Be available, during the period it is effective, | ||
to any motor
vehicle franchisee of the same line make at | ||
any time and on the same terms.
| ||
(D) Be for a term not to exceed 3 years so long as any | ||
party to the
agreement may terminate the agreement upon | ||
the annual anniversary of the
agreement and with 30 days' | ||
prior written notice; however, the agreement shall
remain | ||
in effect for the term of the agreement regardless of the | ||
number of
dealers of the same line make that may terminate | ||
the agreement.
| ||
(2) A franchiser that enters into an agreement with its |
franchisees
pursuant to paragraph (1) of this subsection (g) | ||
may seek to recover its costs
from only those franchisees that | ||
are receiving their "prevailing retail price
charged by that | ||
dealer" under subsections (a) through (f) of this Section,
| ||
subject to the following requirements:
| ||
(A) "costs" means the difference between the uniform | ||
reimbursement rate
set forth in an agreement entered into | ||
pursuant to paragraph (1) of this
subsection (g) and the | ||
"prevailing retail price charged by that dealer"
received | ||
by those franchisees of the same line make. "Costs" do not | ||
include the following: legal fees or expenses; | ||
administrative expenses; a profit mark-up; or any other | ||
item;
| ||
(B) the costs shall be recovered only by increasing | ||
the invoice price on
new vehicles received by those | ||
franchisees; and
| ||
(C) price increases imposed for the purpose of | ||
recovering costs imposed
by this Section may vary from | ||
time to time and from model to model, but shall
apply | ||
uniformly to all franchisees of the same line make in the | ||
State of
Illinois that have requested reimbursement for | ||
warranty repairs at their
"prevailing retail price charged | ||
by that dealer", except that a franchiser may
make an | ||
exception for vehicles that are titled in the name of a | ||
consumer in
another state.
| ||
(3) If a franchiser contracts with its Illinois dealers |
pursuant to
paragraph (1) of this subsection (g), the | ||
franchiser shall certify under oath
to the Motor Vehicle | ||
Review Board that a majority of the franchisees of that
line | ||
make did agree to such an agreement and file a sample copy of | ||
the
agreement. On an annual basis, each franchiser shall | ||
certify under oath to
the Motor Vehicle Review Board that the | ||
reimbursement costs it recovers under
paragraph (2) of this | ||
subsection (g) do not exceed the amounts authorized by
| ||
paragraph (2) of this subsection (g). The franchiser shall | ||
maintain for a
period of 3 years a file that contains the | ||
information upon which its
certification is based. | ||
(3.1) A franchiser subject to subdivision (g)(2) of this | ||
Section, upon request of a dealer subject to that subdivision, | ||
shall disclose to the dealer, in writing or in person if | ||
requested by the dealer, the method by which the franchiser | ||
calculated the amount of the costs to be reimbursed by the | ||
dealer. The franchiser shall also provide aggregate data | ||
showing (i) the total costs the franchiser incurred and (ii) | ||
the total number of new vehicles invoiced to each dealer that | ||
received the "prevailing retail price charged by that dealer" | ||
during the relevant period of time. In responding to a | ||
dealer's request under this subdivision (g)(3.1), a franchiser | ||
may not disclose any confidential or competitive information | ||
regarding any other dealer. Any dealer who receives | ||
information from a franchiser under this subdivision (g)(3.1) | ||
may not disclose that information to any third party unless |
the disclosure occurs in the course of a lawful proceeding | ||
before, or upon the order of, the Motor Vehicle Review Board or | ||
a court of competent jurisdiction.
| ||
(4) If a franchiser and its franchisees do not enter into | ||
an agreement
pursuant to paragraph (1) of this subsection (g), | ||
and for any matter that is
not the subject of an agreement, | ||
this subsection (g) shall have no effect
whatsoever.
| ||
(5) For purposes of this subsection (g), a Uniform Time | ||
Standard Manual
is a document created by a franchiser that | ||
establishes the time allowances for
the diagnosis and | ||
performance of warranty work and service. The allowances
shall | ||
be reasonable and adequate for the work and service to be | ||
performed.
Each franchiser shall have a reasonable and fair | ||
process that allows a
franchisee to request a modification or | ||
adjustment of a standard or standards
included in such a | ||
manual. | ||
(6) A franchiser may not take any adverse action against a | ||
franchisee for not having executed an agreement contemplated | ||
by this subsection (g) or for receiving the "prevailing retail | ||
price charged by that dealer". Nothing in this subsection | ||
shall be construed to prevent a franchiser from making a | ||
determination of a franchisee's "prevailing retail price | ||
charged by that dealer", as provided by this Section.
| ||
(Source: P.A. 96-11, eff. 5-22-09.)
| ||
(Text of Section after amendment by P.A. 102-232 )
|
Sec. 6. Warranty agreements; claims; approval; payment; | ||
written
disapproval. | ||
(a) Every manufacturer, distributor, wholesaler, | ||
distributor branch
or division, factory branch or division, or | ||
wholesale branch or division
shall properly fulfill any | ||
warranty agreement and adequately and fairly
compensate each | ||
of its motor vehicle dealers for labor and parts.
| ||
(b) Adequate and fair compensation requires the | ||
manufacturer to pay each dealer no less than the amount the | ||
retail customer pays for the same services with regard to rate | ||
and time. | ||
Any time guide previously agreed to by the manufacturer | ||
and the dealer for extended warranty repairs may be used in | ||
lieu of actual time expended. In the event that a time guide | ||
has not been agreed to for warranty repairs, or said time guide | ||
does not define time for an applicable warranty repair, the | ||
manufacturer's time guide shall be used, multiplied by 1.5. | ||
In no event shall such compensation fail to include full
| ||
compensation for diagnostic work, as well as repair service, | ||
labor, and
parts. Time allowances for the diagnosis and | ||
performance of warranty
work and service shall be no less than | ||
charged to retail customers
for the same work to be performed. | ||
No warranty or factory compensated repairs shall be | ||
excluded from this requirement, including recalls or other | ||
voluntary stop-sell repairs required by the manufacturer. If a | ||
manufacturer is required to issue a recall, the dealer will be |
compensated for labor time as above stated. | ||
Furthermore, manufacturers shall pay the dealer the same | ||
effective labor rate (using the 100 sequential repair orders | ||
chosen and submitted by the dealer less simple maintenance | ||
repair orders) that the dealer receives for customer-pay | ||
repairs. This requirement includes vehicle diagnostic times | ||
for all warranty repairs. Additionally, if a technician is | ||
required to communicate with a Technical Assistance | ||
Center/Engineering/or some external manufacturer source in | ||
order to provide a warranty repair, the manufacturer shall pay | ||
for the time from start of communications (including hold | ||
time) until the communication is complete. | ||
The dealer may submit a request to the manufacturer for | ||
warranty labor rate increases a maximum of once per calendar | ||
year. | ||
A claim made by a franchised motor vehicle dealer for | ||
compensation under this Section shall be either approved or | ||
disapproved within 30 days after the claim is submitted to the | ||
manufacturer in the manner and on the forms the manufacturer | ||
reasonably prescribes. An approved claim shall be paid within | ||
30 days after its approval. If a claim is not specifically | ||
disapproved in writing or by electronic transmission within 30 | ||
days after the date on which the manufacturer receives it, the | ||
claim shall be considered to be approved and payment shall | ||
follow within 30 days. | ||
In no event shall compensation to a motor
vehicle dealer |
for labor times and labor rates be less than the rates charged | ||
by such
dealer for like service to retail customers for | ||
nonwarranty service and
repairs. Additionally, the | ||
manufacturer shall reimburse the dealer for any parts provided | ||
in satisfaction of a warranty at the prevailing retail price | ||
charged by that dealer for the same parts when not provided in | ||
satisfaction of a warranty; provided that such dealer's | ||
prevailing retail price is not unreasonable when compared with | ||
that of the holders of motor vehicle franchises from the same | ||
manufacturer for identical parts in the geographic area in | ||
which the dealer is engaged in business. Additionally, the | ||
manufacturer shall reimburse the dealer for any parts
provided | ||
in satisfaction of a warranty at the prevailing retail price | ||
charged
by that dealer for the same parts when sold to a retail | ||
customer. | ||
There shall be no reduction in payments due to | ||
preestablished market norms or market averages.
Manufacturers | ||
are prohibited from establishing restrictions or limitations | ||
of customer repair frequency due to failure rate indexes or | ||
national failure averages. | ||
No debit reduction or charge back of any item on a warranty | ||
repair order may be made absent a finding of fraud or illegal | ||
actions by the dealer. | ||
A warranty claim timely made shall not be deemed invalid | ||
solely because unavailable parts cause additional use and | ||
mileage on the vehicle. |
If a manufacturer imposes a recall or stop sale on any new | ||
vehicle in a dealer's inventory that prevents the sale of the | ||
vehicle, the manufacturer shall compensate the dealer for any | ||
interest and storage until the vehicle is repaired and made | ||
ready for sale. | ||
Manufacturers are not permitted to impose any form of cost | ||
recovery fees or surcharges against a franchised auto | ||
dealership for payments made in accordance with this Section. | ||
All claims, either original or resubmitted, made by motor | ||
vehicle
dealers hereunder and under Section 5 for such labor | ||
and parts shall be either
approved or disapproved within 30 | ||
days following their submission. All
approved claims shall be | ||
paid within 30 days following their approval. The
motor | ||
vehicle dealer who submits a claim which is disapproved shall | ||
be notified
in writing of the disapproval within the same | ||
period, and each such notice
shall state the specific grounds | ||
upon which the disapproval is based. The
motor vehicle dealer | ||
shall be permitted to correct and resubmit such
disapproved | ||
claims within 30 days of receipt of disapproval. Any claims | ||
not
specifically disapproved in writing within 30 days from | ||
their submission shall
be deemed approved and payment shall | ||
follow within 30 days. The manufacturer
or franchiser shall | ||
have the right to require reasonable documentation for
claims | ||
and to audit such claims within a one year period from the date | ||
the
claim was paid or credit issued by the manufacturer or | ||
franchiser, and to
charge back any false or unsubstantiated |
claims. The audit and charge back
provisions of this Section | ||
also apply to all other incentive and reimbursement
programs | ||
for a period of one year after the date the claim was paid or | ||
credit issued by the manufacturer or franchiser. However, the | ||
manufacturer retains the
right to charge back any fraudulent | ||
claim if the manufacturer establishes in
a court of competent | ||
jurisdiction in this State that the claim is fraudulent.
| ||
(c) The motor vehicle franchiser shall not, by agreement, | ||
by restrictions
upon reimbursement, or otherwise, restrict the | ||
nature and extent of services to
be rendered or parts to be | ||
provided so that such restriction prevents the motor
vehicle | ||
franchisee from satisfying the warranty by rendering services | ||
in a good
and workmanlike manner and providing parts which are | ||
required in accordance
with generally accepted standards. Any | ||
such restriction shall constitute a
prohibited practice.
| ||
(d) For the purposes of this Section, the "prevailing | ||
retail price
charged by that dealer for the same parts" means | ||
the price paid by
the motor vehicle franchisee for parts, | ||
including all shipping and other
charges, multiplied by the | ||
sum of 1.0 and the franchisee's average percentage
markup over | ||
the price paid by the motor vehicle franchisee for parts | ||
purchased
by the motor vehicle franchisee from the motor | ||
vehicle franchiser and sold at
retail. The motor vehicle | ||
franchisee may establish average percentage markup
under this | ||
Section by submitting to the motor vehicle franchiser 100 | ||
sequential
customer paid service repair orders or 90 days of |
customer paid service repair
orders, whichever is less, | ||
covering repairs made no more than 180 days before
the | ||
submission, and declaring what the average percentage markup | ||
is. The
average percentage markup so declared shall go into | ||
effect 30 days following
the declaration, subject to audit of | ||
the submitted repair orders by the motor
vehicle franchiser | ||
and adjustment of the average percentage markup based on
that | ||
audit. Any audit must be conducted within 30 days following | ||
the
declaration. Only retail sales not involving warranty | ||
repairs, parts covered
by subsection (e) of this Section, or | ||
parts supplied for routine vehicle
maintenance, shall be | ||
considered in calculating average percentage markup. No
motor | ||
vehicle franchiser shall require a motor vehicle franchisee to | ||
establish
average percentage markup by a methodology, or by | ||
requiring information, that
is unduly burdensome or time | ||
consuming to provide, including, but not limited
to, part by | ||
part or transaction by transaction calculations. A motor | ||
vehicle
franchisee shall not request a change in the average | ||
percentage markup more
than twice in one calendar year.
| ||
(e) If a motor vehicle franchiser supplies a part or parts | ||
for use in a
repair rendered under a warranty other than by | ||
sale of that part or parts to
the motor vehicle franchisee, the | ||
motor vehicle franchisee shall be entitled to
compensation | ||
equivalent to the motor vehicle franchisee's average | ||
percentage
markup on the part or parts, as if the part or parts | ||
had been sold to the motor
vehicle franchisee by the motor |
vehicle franchiser. The requirements of this
subsection (e) | ||
shall not apply to entire engine assemblies , propulsion engine | ||
assemblies, including electric vehicle batteries, and entire | ||
transmission assemblies. In the case of those assemblies, the | ||
motor vehicle franchiser shall reimburse the motor vehicle | ||
franchisee up to and including 30% of what the motor vehicle | ||
franchisee would have paid the motor vehicle franchiser for | ||
the assembly if the assembly had not been supplied by the | ||
franchiser other than by the sale of that assembly to the motor | ||
vehicle franchisee and entire
transmission
assemblies .
| ||
(f) The obligations imposed on motor vehicle franchisers | ||
by this Section
shall apply to any parent, subsidiary, | ||
affiliate, or agent of the motor vehicle
franchiser, any | ||
person under common ownership or control, any employee of the
| ||
motor vehicle franchiser, and any person holding 1% or more of | ||
the shares of
any class of securities or other ownership | ||
interest in the motor vehicle
franchiser, if a warranty or | ||
service or repair plan is issued by that person
instead of or | ||
in addition to one issued by the motor vehicle franchiser.
| ||
(g) (Blank).
| ||
(Source: P.A. 102-232, eff. 1-1-22.)
| ||
Section 995. No acceleration or delay. Where this Act | ||
makes changes in a statute that is represented in this Act by | ||
text that is not yet or no longer in effect (for example, a | ||
Section represented by multiple versions), the use of that |
text does not accelerate or delay the taking effect of (i) the | ||
changes made by this Act or (ii) provisions derived from any | ||
other Public Act.
| ||
Section 999. Effective date. This Act takes effect upon | ||
becoming law.
|