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Public Act 102-0605


 

Public Act 0605 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0605
 
HB3174 EnrolledLRB102 14914 HLH 20269 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Enterprise Zone Act is amended by
changing Section 5.5 as follows:
 
    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
    Sec. 5.5. High Impact Business.
    (a) In order to respond to unique opportunities to assist
in the encouragement, development, growth, and expansion of
the private sector through large scale investment and
development projects, the Department is authorized to receive
and approve applications for the designation of "High Impact
Businesses" in Illinois subject to the following conditions:
        (1) such applications may be submitted at any time
    during the year;
        (2) such business is not located, at the time of
    designation, in an enterprise zone designated pursuant to
    this Act;
        (3) the business intends to do one or more of the
    following:
            (A) the business intends to make a minimum
        investment of $12,000,000 which will be placed in
        service in qualified property and intends to create
        500 full-time equivalent jobs at a designated location
        in Illinois or intends to make a minimum investment of
        $30,000,000 which will be placed in service in
        qualified property and intends to retain 1,500
        full-time retained jobs at a designated location in
        Illinois. The business must certify in writing that
        the investments would not be placed in service in
        qualified property and the job creation or job
        retention would not occur without the tax credits and
        exemptions set forth in subsection (b) of this
        Section. The terms "placed in service" and "qualified
        property" have the same meanings as described in
        subsection (h) of Section 201 of the Illinois Income
        Tax Act; or
            (B) the business intends to establish a new
        electric generating facility at a designated location
        in Illinois. "New electric generating facility", for
        purposes of this Section, means a newly-constructed
        electric generation plant or a newly-constructed
        generation capacity expansion at an existing electric
        generation plant, including the transmission lines and
        associated equipment that transfers electricity from
        points of supply to points of delivery, and for which
        such new foundation construction commenced not sooner
        than July 1, 2001. Such facility shall be designed to
        provide baseload electric generation and shall operate
        on a continuous basis throughout the year; and (i)
        shall have an aggregate rated generating capacity of
        at least 1,000 megawatts for all new units at one site
        if it uses natural gas as its primary fuel and
        foundation construction of the facility is commenced
        on or before December 31, 2004, or shall have an
        aggregate rated generating capacity of at least 400
        megawatts for all new units at one site if it uses coal
        or gases derived from coal as its primary fuel and
        shall support the creation of at least 150 new
        Illinois coal mining jobs, or (ii) shall be funded
        through a federal Department of Energy grant before
        December 31, 2010 and shall support the creation of
        Illinois coal-mining jobs, or (iii) shall use coal
        gasification or integrated gasification-combined cycle
        units that generate electricity or chemicals, or both,
        and shall support the creation of Illinois coal-mining
        jobs. The business must certify in writing that the
        investments necessary to establish a new electric
        generating facility would not be placed in service and
        the job creation in the case of a coal-fueled plant
        would not occur without the tax credits and exemptions
        set forth in subsection (b-5) of this Section. The
        term "placed in service" has the same meaning as
        described in subsection (h) of Section 201 of the
        Illinois Income Tax Act; or
            (B-5) the business intends to establish a new
        gasification facility at a designated location in
        Illinois. As used in this Section, "new gasification
        facility" means a newly constructed coal gasification
        facility that generates chemical feedstocks or
        transportation fuels derived from coal (which may
        include, but are not limited to, methane, methanol,
        and nitrogen fertilizer), that supports the creation
        or retention of Illinois coal-mining jobs, and that
        qualifies for financial assistance from the Department
        before December 31, 2010. A new gasification facility
        does not include a pilot project located within
        Jefferson County or within a county adjacent to
        Jefferson County for synthetic natural gas from coal;
        or
            (C) the business intends to establish production
        operations at a new coal mine, re-establish production
        operations at a closed coal mine, or expand production
        at an existing coal mine at a designated location in
        Illinois not sooner than July 1, 2001; provided that
        the production operations result in the creation of
        150 new Illinois coal mining jobs as described in
        subdivision (a)(3)(B) of this Section, and further
        provided that the coal extracted from such mine is
        utilized as the predominant source for a new electric
        generating facility. The business must certify in
        writing that the investments necessary to establish a
        new, expanded, or reopened coal mine would not be
        placed in service and the job creation would not occur
        without the tax credits and exemptions set forth in
        subsection (b-5) of this Section. The term "placed in
        service" has the same meaning as described in
        subsection (h) of Section 201 of the Illinois Income
        Tax Act; or
            (D) the business intends to construct new
        transmission facilities or upgrade existing
        transmission facilities at designated locations in
        Illinois, for which construction commenced not sooner
        than July 1, 2001. For the purposes of this Section,
        "transmission facilities" means transmission lines
        with a voltage rating of 115 kilovolts or above,
        including associated equipment, that transfer
        electricity from points of supply to points of
        delivery and that transmit a majority of the
        electricity generated by a new electric generating
        facility designated as a High Impact Business in
        accordance with this Section. The business must
        certify in writing that the investments necessary to
        construct new transmission facilities or upgrade
        existing transmission facilities would not be placed
        in service without the tax credits and exemptions set
        forth in subsection (b-5) of this Section. The term
        "placed in service" has the same meaning as described
        in subsection (h) of Section 201 of the Illinois
        Income Tax Act; or
            (E) the business intends to establish a new wind
        power facility at a designated location in Illinois.
        For purposes of this Section, "new wind power
        facility" means a newly constructed electric
        generation facility, or a newly constructed expansion
        of an existing electric generation facility, or the
        replacement of an existing electric generation
        facility, including the demolition and removal of an
        electric generation facility irrespective of whether
        it will be replaced, placed in service or replaced on
        or after July 1, 2009, that generates electricity
        using wind energy devices, and such facility shall be
        deemed to include any permanent structures associated
        with the electric generation facility and all
        associated transmission lines, substations, and other
        equipment related to the generation of electricity
        from wind energy devices. For purposes of this
        Section, "wind energy device" means any device, with a
        nameplate capacity of at least 0.5 megawatts, that is
        used in the process of converting kinetic energy from
        the wind to generate electricity; or
            (F) the business commits to (i) make a minimum
        investment of $500,000,000, which will be placed in
        service in a qualified property, (ii) create 125
        full-time equivalent jobs at a designated location in
        Illinois, (iii) establish a fertilizer plant at a
        designated location in Illinois that complies with the
        set-back standards as described in Table 1: Initial
        Isolation and Protective Action Distances in the 2012
        Emergency Response Guidebook published by the United
        States Department of Transportation, (iv) pay a
        prevailing wage for employees at that location who are
        engaged in construction activities, and (v) secure an
        appropriate level of general liability insurance to
        protect against catastrophic failure of the fertilizer
        plant or any of its constituent systems; in addition,
        the business must agree to enter into a construction
        project labor agreement including provisions
        establishing wages, benefits, and other compensation
        for employees performing work under the project labor
        agreement at that location; for the purposes of this
        Section, "fertilizer plant" means a newly constructed
        or upgraded plant utilizing gas used in the production
        of anhydrous ammonia and downstream nitrogen
        fertilizer products for resale; for the purposes of
        this Section, "prevailing wage" means the hourly cash
        wages plus fringe benefits for training and
        apprenticeship programs approved by the U.S.
        Department of Labor, Bureau of Apprenticeship and
        Training, health and welfare, insurance, vacations and
        pensions paid generally, in the locality in which the
        work is being performed, to employees engaged in work
        of a similar character on public works; this paragraph
        (F) applies only to businesses that submit an
        application to the Department within 60 days after
        July 25, 2013 (the effective date of Public Act
        98-109) this amendatory Act of the 98th General
        Assembly; and
        (4) no later than 90 days after an application is
    submitted, the Department shall notify the applicant of
    the Department's determination of the qualification of the
    proposed High Impact Business under this Section.
    (b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall
qualify for the credits and exemptions described in the
following Acts: Section 9-222 and Section 9-222.1A of the
Public Utilities Act, subsection (h) of Section 201 of the
Illinois Income Tax Act, and Section 1d of the Retailers'
Occupation Tax Act; provided that these credits and exemptions
described in these Acts shall not be authorized until the
minimum investments set forth in subdivision (a)(3)(A) of this
Section have been placed in service in qualified properties
and, in the case of the exemptions described in the Public
Utilities Act and Section 1d of the Retailers' Occupation Tax
Act, the minimum full-time equivalent jobs or full-time
retained jobs set forth in subdivision (a)(3)(A) of this
Section have been created or retained. Businesses designated
as High Impact Businesses under this Section shall also
qualify for the exemption described in Section 5l of the
Retailers' Occupation Tax Act. The credit provided in
subsection (h) of Section 201 of the Illinois Income Tax Act
shall be applicable to investments in qualified property as
set forth in subdivision (a)(3)(A) of this Section.
    (b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
and (a)(3)(D) of this Section shall qualify for the credits
and exemptions described in the following Acts: Section 51 of
the Retailers' Occupation Tax Act, Section 9-222 and Section
9-222.1A of the Public Utilities Act, and subsection (h) of
Section 201 of the Illinois Income Tax Act; however, the
credits and exemptions authorized under Section 9-222 and
Section 9-222.1A of the Public Utilities Act, and subsection
(h) of Section 201 of the Illinois Income Tax Act shall not be
authorized until the new electric generating facility, the new
gasification facility, the new transmission facility, or the
new, expanded, or reopened coal mine is operational, except
that a new electric generating facility whose primary fuel
source is natural gas is eligible only for the exemption under
Section 5l of the Retailers' Occupation Tax Act.
    (b-6) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(E) of this Section shall
qualify for the exemptions described in Section 5l of the
Retailers' Occupation Tax Act; any business so designated as a
High Impact Business being, for purposes of this Section, a
"Wind Energy Business".
    (b-7) Beginning on January 1, 2021, businesses designated
as High Impact Businesses by the Department shall qualify for
the High Impact Business construction jobs credit under
subsection (h-5) of Section 201 of the Illinois Income Tax Act
if the business meets the criteria set forth in subsection (i)
of this Section. The total aggregate amount of credits awarded
under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
this amendatory Act of the 101st General Assembly) shall not
exceed $20,000,000 in any State fiscal year.
    (c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
    (d) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, existing Illinois businesses which
apply for designation as a High Impact Business must provide
the Department with the prospective plan for which 1,500
full-time retained jobs would be eliminated in the event that
the business is not designated.
    (e) Except for new wind power facilities contemplated
under subdivision (a)(3)(E) of this Section, new proposed
facilities which apply for designation as High Impact Business
must provide the Department with proof of alternative
non-Illinois sites which would receive the proposed investment
and job creation in the event that the business is not
designated as a High Impact Business.
    (f) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, in the event that a business is
designated a High Impact Business and it is later determined
after reasonable notice and an opportunity for a hearing as
provided under the Illinois Administrative Procedure Act, that
the business would have placed in service in qualified
property the investments and created or retained the requisite
number of jobs without the benefits of the High Impact
Business designation, the Department shall be required to
immediately revoke the designation and notify the Director of
the Department of Revenue who shall begin proceedings to
recover all wrongfully exempted State taxes with interest. The
business shall also be ineligible for all State funded
Department programs for a period of 10 years.
    (g) The Department shall revoke a High Impact Business
designation if the participating business fails to comply with
the terms and conditions of the designation. However, the
penalties for new wind power facilities or Wind Energy
Businesses for failure to comply with any of the terms or
conditions of the Illinois Prevailing Wage Act shall be only
those penalties identified in the Illinois Prevailing Wage
Act, and the Department shall not revoke a High Impact
Business designation as a result of the failure to comply with
any of the terms or conditions of the Illinois Prevailing Wage
Act in relation to a new wind power facility or a Wind Energy
Business.
    (h) Prior to designating a business, the Department shall
provide the members of the General Assembly and Commission on
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
    (i) High Impact Business construction jobs credit.
Beginning on January 1, 2021, a High Impact Business 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 amount of the incremental income tax
attributable to High Impact Business construction jobs credit
employees employed in the course of completing a High Impact
Business construction jobs project. However, the High Impact
Business construction jobs credit may equal 75% of the amount
of the incremental income tax attributable to High Impact
Business construction jobs credit employees if the High Impact
Business construction jobs credit project is located in an
underserved area.
    The Department shall certify to the Department of Revenue:
(1) the identity of taxpayers that are eligible for the High
Impact Business construction jobs credit; and (2) the amount
of High Impact Business construction jobs credits that are
claimed pursuant to subsection (h-5) of Section 201 of the
Illinois Income Tax Act in each taxable year. Any business
entity that receives a High Impact Business construction jobs
credit shall maintain a certified payroll pursuant to
subsection (j) of this Section.
    As used in this subsection (i):
    "High Impact Business construction jobs credit" means an
amount equal to 50% (or 75% if the High Impact Business
construction project is located in an underserved area) of the
incremental income tax attributable to High Impact Business
construction job employees. The total aggregate amount of
credits awarded under the Blue Collar Jobs Act (Article 20 of
Public Act 101-9 this amendatory Act of the 101st General
Assembly) shall not exceed $20,000,000 in any State fiscal
year
    "High Impact Business construction job employee" means a
laborer or worker who is employed by an Illinois contractor or
subcontractor in the actual construction work on the site of a
High Impact Business construction job project.
    "High Impact Business construction jobs project" means
building a structure or building or making improvements of any
kind to real property, undertaken and commissioned by a
business that was designated as a High Impact Business by the
Department. The term "High Impact Business construction jobs
project" does not include the routine operation, routine
repair, or routine maintenance of existing structures,
buildings, or real property.
    "Incremental income tax" means the total amount withheld
during the taxable year from the compensation of High Impact
Business construction job employees.
    "Underserved area" means a geographic area that meets one
or more of the following conditions:
        (1) the area has a poverty rate of at least 20%
    according to the latest federal decennial census;
        (2) 75% or more of the children in the area
    participate in the federal free lunch program according to
    reported statistics from the State Board of Education;
        (3) at least 20% of the households in the area receive
    assistance under the Supplemental Nutrition Assistance
    Program (SNAP); or
        (4) the area has an average unemployment rate, as
    determined by the Illinois Department of Employment
    Security, that is more than 120% of the national
    unemployment average, as determined by the U.S. Department
    of Labor, for a period of at least 2 consecutive calendar
    years preceding the date of the application.
    (j) Each contractor and subcontractor who is engaged in
and executing a High Impact Business Construction jobs
project, as defined under subsection (i) of this Section, for
a business that is entitled to a credit pursuant to subsection
(i) of this Section shall:
        (1) make and keep, for a period of 5 years from the
    date of the last payment made on or after June 5, 2019 (the
    effective date of Public Act 101-9) this amendatory Act of
    the 101st General Assembly on a contract or subcontract
    for a High Impact Business Construction Jobs Project,
    records for 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 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;
        (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 High Impact
    Business construction jobs 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 of Commerce and Economic Opportunity; a
    certified payroll must be filed for only those calendar
    months during which construction on a High Impact Business
    construction jobs project has occurred; the certified
    payroll shall consist of a complete copy of the records
    identified in paragraph (1) of this subsection (j), 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.
    Any contractor or subcontractor subject to this
subsection, 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
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who
willfully files a false certified payroll that is false as to
any material fact is in violation of this Act and guilty of a
Class A misdemeanor.
    The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after June 5, 2019 (the effective date of Public Act 101-9)
this amendatory Act of the 101st General Assembly for a period
of 5 years from the date of the last payment for work on a
contract or subcontract for the High Impact Business
construction jobs project.
    The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall accept any reasonable
submissions by the contractor that meet the requirements of
this subsection (j) and shall share the information with the
Department in order to comply with the awarding of a High
Impact Business construction jobs credit. A contractor,
subcontractor, or public body may retain records required
under this Section in paper or electronic format.
    (k) Upon 7 business days' notice, each contractor and
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in this subsection (j) to the taxpayer in
charge of the High Impact Business construction jobs project,
its officers and agents, the Director of the Department of
Labor and his or her deputies and agents, and to federal,
State, or local law enforcement agencies and prosecutors.
(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/27/2021