SB0652ham003 100TH GENERAL ASSEMBLY

Rep. Lou Lang

Filed: 5/28/2017

10000SB0652ham003 LRB100 06360 HLH 27237 a

AMENDMENT TO SENATE BILL 652

AMENDMENT NO. ______. Amend Senate Bill 652 on page 1, line 5, after "40,", by inserting "45,"; and

on page 5, line 10, by replacing "$50,000,000 $20,000,000" with "$20,000,000"; and

on page 10, immediately below line 18, by inserting the following:

"(g) Allocation rounds enabled by this Act shall be applied for according to the following schedule:

(1) on January 2, 2019, $125,000,000 of qualified equity investments; and

(2) on January 2, 2020, $125,000,000 of qualified equity investments."; and

on page 14, line 10, after "business.", by inserting "This Section is not intended to affect ownership or affiliate interests that arise following the sixth anniversary of the issuance of the qualified equity investment."; and

on page 14, immediately below line 10, by inserting the following:

"(20 ILCS 663/45)

Sec. 45. Examination and Rulemaking.

(a) The Department may conduct examinations to verify that the tax credits under this Act have been received and applied according to the requirements of this Act and to verify that no event has occurred that would result in a recapture of tax credits under Section 40.

(b) The Department and the Department of Revenue shall have the authority to adopt rules under the Act. The Department and the Department of Revenue, in adopting rules, shall endeavor to make the administration of the Act compatible with the administration of the federal New Markets Tax Credit program. Adopted rules shall only apply to qualified equity investments in effect as of the application date set forth under subsection (g) of Section 25 of this Act for such qualified equity investment. Neither the Department nor the Department of Revenue shall have the authority to promulgate rules under the Act, but the Department and the Department of Revenue shall have the authority to issue advisory letters to individual qualified community development entities and their investors that are limited to the specific facts outlined in an advisory letter request from a qualified community development entity. Such rulings cannot be relied upon by any person or entity other than the qualified community development entity that requested the letter and the taxpayers that are entitled to any tax credits generated from investments in such entity. For purposes of this subsection, "rules" is given the meaning contained in Section 1-70 of the Illinois Administrative Procedure Act.

(c) In rendering advisory letters and making other determinations under this Act, to the extent applicable, the Department and the Department of Revenue shall look for guidance to Section 45D of the Internal Revenue Code of 1986, as amended, and the rules, and regulations, policies, and allocation agreement provisions issued thereunder.

(d) The Department may impose an administrative penalty on any qualified community development entity that violates the provisions of this Act or any adopted rule hereunder where recapture of credits is not a remedy. The penalty shall be $15,000 for each violation. Penalties shall be subject to a notice and cure period of not less than 30 days wherein a qualified community development entity shall be notified in writing of the violation and be given the opportunity to cure the violation. Each week a violation continues or occurs past such 30-day period is a separate violation. A qualified community development entity that has been assessed a penalty may petition the Department for an administrative hearing to contest the basis of the administrative penalty. The Department's final decision imposing an administrative penalty is a final order and subject to the Administrative Review Law. The Department shall not certify any qualified equity investment in a qualified community development entity (or in an affiliate thereof) that has not satisfied an administrative penalty or has been assessed in aggregate $105,000 or more in administrative penalties within the prior 2 calendar years.

(Source: P.A. 95-1024, eff. 12-31-08.)"; and

on page 15, by replacing lines 6 through 22 with the following:

"(20 ILCS 663/55 new)

Sec. 55. Annual report. Each qualified community development entity shall submit an annual report to the Department within 45 days after the beginning of each calendar year during the compliance period. No annual report shall be due prior to the first anniversary of the initial credit allowance date. The report shall include, but is not limited to, the following:

(1) an attestation from an authorized officer of the qualified community development entity that the entity has not been the subject of any investigation by a government agency relating to tax credits or financial services during the preceding calendar year;

(2) information with respect to all qualified low-income community investments made by the qualified community development entity, including:

(A) the date and amount of, and bank statements or wire transfer reports documenting, such qualified low-income community investments;

(B) the name, address, and EIN of each qualified active low-income community business funded by the qualified community development entity, the number of persons employed by such business at the time of the initial investment, and a brief description of the business, the financing, and community benefits of the financing; and

(C) the number of employment positions maintained by each qualified active low-income community business as of the date of report or the end of the preceding calendar year and the average annual salaries of such positions; and

(D) the total number of employment positions created and retained as a result of qualified low-income community investments and the average annual salaries of those positions; and

(3) any changes with respect to the taxpayers entitled to claim tax credits with respect to qualified equity investments issued by the qualified community development entity since its last report pursuant to this Section.

The qualified community development entity is not required to provide the annual report set forth in this Section for qualified low-income community investments that have been redeemed or repaid.".