Public Act 094-0065
 		





SB1814 Enrolled
LRB094 09233 JAM 39467 b






    AN ACT concerning finance.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:

 
    Section 5. The Department of Commerce and Economic 
Opportunity Law of the
Civil Administrative Code of Illinois is 
amended  by changing Section 605-332 as follows:
 



    (20 ILCS 605/605-332)




    Sec. 605-332. Financial assistance to energy generation 
facilities. 

    (a) As used in this Section:

    "New electric generating facility" means a 
newly-constructed electric
generation plant or a newly 
constructed generation capacity expansion at an
existing 
facility, including the transmission lines and associated 
equipment
that transfers electricity from points of supply to 
points of delivery, and for
which foundation construction 
commenced not sooner than July 1, 2001, which is
designed to 
provide baseload electric generation operating on a continuous

basis throughout the year and:

        (1) has an aggregate rated generating capacity
of at

    least 400 megawatts for all new units at one site, uses 
    coal or gases derived
from coal as its primary fuel
source, 
    and supports the creation of at least 150 new Illinois coal 
    mining
jobs; or

        (2) is (i) funded through a federal Department of 
    Energy grant before July 1, 2006 and supports the
creation 
    of
Illinois
coal-mining jobs; or
2005,   and (ii)

        (3) uses coal gasification or integrated 
    gasification-combined cycle
units that generate 
    electricity or chemicals, or both, and that supports the

    creation of
Illinois
coal-mining jobs.

    "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, 2006. 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.

    "New facility" means a new electric generating facility or 
a new gasification facility. A new 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.

    "Eligible business" means an entity that proposes to 
construct a new electric
generating facility and that has 
applied to the Department to receive financial
assistance 
pursuant to this Section.
With respect to use and occupation 
taxes, wherever there is a reference to
taxes, that reference 
means only those taxes paid on Illinois-mined coal used
in
a 
new electric generating facility.

    "Department" means the Illinois Department of Commerce and

Economic Opportunity.

    (b) The Department is authorized to
provide financial 
assistance to eligible businesses for new electric generating

facilities from funds appropriated by the General Assembly as 
further provided
in this Section.

    An eligible business seeking qualification for financial 
assistance for
a new electric generating facility, for purposes 
of this Section only, shall
apply to the Department in the 
manner specified by the Department. Any
projections provided by 
an eligible business as part of the application shall
be 
independently verified in a manner as set forth by the 
Department. An
application shall include, but not
be limited 
to:


        (1) the projected or actual completion date of the new 
    electric
generating facility
for which financial 
    assistance is sought;


        (2) copies of documentation deemed
acceptable by the 
    Department establishing either (i) the total State

    occupation
and use taxes paid on Illinois-mined coal used 
    at the new electric
generating facility for a minimum of 4 
    preceding calendar quarters or (ii)
the projected amount of 
    State occupation and use taxes paid on Illinois-mined
coal 
    used at the new electric generating facility in 4 calendar 
    year quarters
after completion of the new electric 
    generating facility.
Bond proceeds subject to this Section 
    shall not be allocated to an
eligible business until the 
    eligible business has demonstrated the revenue
stream 
    sufficient to service the debt on the bonds; and


        (3) the actual or projected amount of capital 
    investment by the
eligible business
in the new electric 
    generating facility.

    The Department shall determine the maximum amount of 
financial
assistance for eligible businesses in accordance 
with this paragraph.  The
Department shall not provide financial 
assistance from general obligation bond
funds to any eligible 
business
unless it receives a written certification from the 
Director of the
Bureau of
the Budget
(now Governor's Office of 
Management and Budget)
that 80% of the State occupation and use 
tax receipts for a minimum
of the
preceding 4 calendar quarters 
for all eligible businesses or as included in
projections on 
approved applications by eligible businesses equal or exceed

110% of the maximum annual debt service required with respect 
to general
obligation bonds issued for that purpose.  The 
Department may provide
financial assistance not to exceed the 
amount of State general obligation
debt calculated as above, 
the amount of actual or projected capital
investment in the 
energy
generation facility, or $100,000,000, whichever is 
less.
Financial assistance received pursuant to this Section 
may be used
for capital facilities consisting of buildings, 
structures, durable equipment,
and land at the new electric 
generating facility. Subject to the provisions
of the agreement 
covering the financial assistance, a portion of the financial

assistance may be required to be repaid to the State if certain 
conditions for
the governmental purpose of the assistance were 
not met.

    An eligible business shall file a monthly report with the

Illinois Department of Revenue stating the amount of 
Illinois-mined coal
purchased during
the previous month for use 
in the new electric generating facility, the
purchase price of 
that coal, the amount of State
occupation and use taxes paid on 
that purchase to the seller of the
Illinois-mined coal, and

such other
information as that Department may reasonably 
require.  In sales of
Illinois-mined coal between related 
parties, the purchase price of the coal
must have been 
determined in an arms-length transaction.  The report shall be

filed with the Illinois Department of Revenue on or before the 
20th day of
each month on a form provided by that Department.  
However, no report
need be filed by an eligible business in a 
month when it made
no reportable purchases of coal in the 
previous month.
The Illinois Department of Revenue shall 
provide a summary of such reports to
the
Governor's Office of 
Management and Budget.

    Upon granting financial assistance to an eligible 
business, the Department
shall certify the name of the eligible 
business to the Illinois Department of
Revenue.  Beginning with 
the receipt of the first report of State occupation
and use 
taxes paid by an
eligible business and continuing for a 25-year 
period, the Illinois Department
of Revenue shall each month pay 
into the Energy Infrastructure Fund 80% of the
net revenue 
realized from the 6.25% general rate on the selling price of

Illinois-mined coal that was sold to an eligible business.

(Source: P.A. 92-12, eff. 7-1-01; 93-167, eff. 7-10-03; 
93-1064, eff. 1-13-05.)

 
    Section 10. 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 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
is (i) funded through a federal 
        Department of Energy grant before July 1, 2006 and 
        shall support the creation of Illinois
coal-mining

        jobs, or (iii) shall use
2005,  and (ii) uses 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, 2006. 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; 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 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.

    (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) 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 
jobs would be eliminated in the event that the
business is not 
designated.

    (e) 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) 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.

    (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.

(Source: P.A. 92-12, eff. 7-1-01; 93-1064, eff. 1-13-05; 
93-1067, eff. 1-15-05; revised 1-25-05.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.