Sen. Elgie R. Sims, Jr.
Filed: 4/5/2018
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1 | AMENDMENT TO SENATE BILL 3284
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2 | AMENDMENT NO. ______. Amend Senate Bill 3284 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Community Renewal and Revitalization Act. | ||||||
6 | Section 5. Intent. The intent of this Act is to spur | ||||||
7 | investment in areas of high unemployment and high crime through | ||||||
8 | various economic development tools intended to incentivize | ||||||
9 | businesses to relocate, expand, and develop within those | ||||||
10 | communities. It is the hope and belief of the General Assembly | ||||||
11 | that through the creation of Health, Opportunity, Prosperity, | ||||||
12 | and Empowerment (HOPE) Zones, economic growth and vitality can | ||||||
13 | foster in impoverished communities of this State. | ||||||
14 | Section 10. Definitions.
As used in this Act:
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15 | "Department" means the Department of Commerce and Economic |
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1 | Opportunity.
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2 | "Director" means the Director of Commerce and Economic | ||||||
3 | Opportunity.
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4 | "HOPE Zone" or "Zone" means a Health, Opportunity, | ||||||
5 | Prosperity, and Empowerment Zone established under this Act. | ||||||
6 | Section 15. Qualifications for HOPE Zones.
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7 | (a) An area is qualified to become a HOPE Zone if:
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8 | (1) it is a contiguous area, provided that a zone area
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9 | may exclude wholly surrounded territory within its | ||||||
10 | boundaries;
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11 | (2) it is comprised of a minimum of one-half square | ||||||
12 | mile and
not more than 15 square miles, in total area, | ||||||
13 | exclusive of lakes and waterways;
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14 | (3) it is entirely within a municipality or entirely | ||||||
15 | within the unincorporated areas of a county, except where | ||||||
16 | reasonable need is established for such zone to cover | ||||||
17 | portions of more than one municipality or county;
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18 | (4) all or part of the area to be designated as a HOPE | ||||||
19 | Zone has had an annual average unemployment rate of at | ||||||
20 | least 120% of the State's annual average unemployment rate | ||||||
21 | for the most recent calendar year or the most recent fiscal | ||||||
22 | year as reported by the Department of Employment Security; | ||||||
23 | and
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24 | (5) all or part of the area to be designated as a HOPE | ||||||
25 | Zone has a poverty rate of at least 20% according to the |
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1 | latest federal decennial census, and a census tract crime | ||||||
2 | rate higher than the State average.
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3 | (b) Any criteria established by the Department or by law | ||||||
4 | which utilizes the rate of unemployment for a particular area | ||||||
5 | shall provide that all persons who are not presently employed | ||||||
6 | and have exhausted all unemployment benefits shall be | ||||||
7 | considered unemployed, whether or not such persons are actively | ||||||
8 | seeking employment.
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9 | Section 20. Designation of HOPE Zones.
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10 | (a) Any area determined by the Director of the Department | ||||||
11 | of Commerce and Economic Opportunity as meeting the | ||||||
12 | qualifications established under Section 15 shall be | ||||||
13 | designated a HOPE Zone, and be eligible for benefits under this | ||||||
14 | Act.
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15 | (b) Upon designation of a HOPE Zone, the Director shall | ||||||
16 | provide:
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17 | (1) a precise description of the area comprising the | ||||||
18 | Zone, either in the form of a legal description or by | ||||||
19 | reference to roadways, lakes and waterways, and township | ||||||
20 | and county boundaries;
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21 | (2) a finding that the Zone area meets the | ||||||
22 | qualifications established under Section 10;
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23 | (3) provisions for any tax incentives or reimbursement | ||||||
24 | for taxes, which under State and federal law apply to | ||||||
25 | businesses within the designated Zone;
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1 | (4) the duration or term of the HOPE Zone, which shall | ||||||
2 | be no less than 10 years in duration; and
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3 | (5) any other information the Director deems necessary | ||||||
4 | to the establishment of HOPE Zones under this Act.
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5 | (c) Nothing in this Section shall prohibit a municipality | ||||||
6 | or county from extending additional tax incentives or | ||||||
7 | reimbursement for businesses in HOPE Zones or throughout their | ||||||
8 | territory by separate ordinance. Nothing in this Section shall | ||||||
9 | prohibit a municipality or county from applying to be an | ||||||
10 | Enterprise Zone under the Illinois Enterprise Zone Act.
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11 | Section 25. HOPE Zone tax credits.
The following credits | ||||||
12 | shall be granted in connection with HOPE Zones under this Act: | ||||||
13 | (1) a business maintaining operations within a HOPE | ||||||
14 | Zone is eligible to receive a 50% tax credit against (i) | ||||||
15 | its annual corporate income tax as provided in Section 227 | ||||||
16 | of the Illinois Income Tax Act and (ii) all fees and | ||||||
17 | franchise taxes paid to the Secretary of State for | ||||||
18 | organizing and maintaining any business organization | ||||||
19 | within the Zone; | ||||||
20 | (2) individuals living within a HOPE Zone are eligible | ||||||
21 | to receive a 50% tax credit against their annual individual | ||||||
22 | Illinois income tax as provided in Section 228 of the | ||||||
23 | Illinois Income Tax Act; | ||||||
24 | (3) taxpayers are eligible for a remediation tax credit | ||||||
25 | as provided in subsection (n-1) of Section 201 of the |
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1 | Illinois Income Tax Act; | ||||||
2 | (4) a business maintaining operations in a HOPE Zone is | ||||||
3 | allowed an increased credit under Section 216 of the | ||||||
4 | Illinois Income Tax Act; | ||||||
5 | (5) a retailer who makes a sale of building materials | ||||||
6 | to be incorporated into real estate located in a HOPE Zone | ||||||
7 | is entitled to a credit as provided in Section 5k of the | ||||||
8 | Retailers' Occupation Tax Act; and | ||||||
9 | (6) any business designated as a "High Impact Business" | ||||||
10 | under Section 5.5 of the Illinois Enterprise Zone Act that | ||||||
11 | intends to invest in a HOPE Zone, in a manner specified in | ||||||
12 | subparagraphs (A) through (F) of that Section, shall be | ||||||
13 | eligible for the credits and benefits provided in that | ||||||
14 | Section; all provisions and procedures in Section 5.5 of | ||||||
15 | the Illinois Enterprise Zone Act with respect to the | ||||||
16 | application and designation of High Impact Businesses | ||||||
17 | shall apply.
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18 | Section 30. Powers and duties of the Department.
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19 | (a) General powers. The Department shall administer this | ||||||
20 | Act and shall have the following powers and duties:
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21 | (1) To monitor the implementation of this Act and
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22 | submit reports evaluating the effectiveness of the program | ||||||
23 | and any suggestions for legislation to the Governor and | ||||||
24 | General Assembly by October 1 of every year preceding a | ||||||
25 | regular Session of the General Assembly and to annually |
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1 | report to the General Assembly initial and current | ||||||
2 | population, employment, per capita income, number of | ||||||
3 | business establishments, dollar value of new construction | ||||||
4 | and improvements, and the aggregate value of each tax | ||||||
5 | incentive, based on information provided by the Department | ||||||
6 | of Revenue, for each HOPE Zone.
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7 | (2) To adopt all necessary rules and regulations
to | ||||||
8 | carry out the purposes of this Act in accordance with The | ||||||
9 | Illinois Administrative Procedure Act.
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10 | (3) To assist municipalities and counties in
obtaining | ||||||
11 | federal status as a HOPE Zone. | ||||||
12 | (b) Specific duties:
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13 | (1) The Department shall provide information and
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14 | appropriate assistance to persons desiring to locate and | ||||||
15 | engage in business in a HOPE Zone, to persons engaged in | ||||||
16 | business in a HOPE Zone, and to designated Zone | ||||||
17 | organizations operating there.
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18 | (2) The Department shall, in cooperation with
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19 | appropriate units of local government and State agencies, | ||||||
20 | coordinate and streamline existing State business | ||||||
21 | assistance programs and permit and license application | ||||||
22 | procedures for HOPE Zone businesses.
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23 | (3) The Department shall publicize existing tax
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24 | incentives and economic development programs within the | ||||||
25 | Zone and upon request, offer technical assistance in | ||||||
26 | abatement and alternative revenue source development to |
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1 | local units of government which have HOPE Zones within | ||||||
2 | their jurisdiction.
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3 | (4) The Department shall work together with the
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4 | responsible State and federal agencies to promote the | ||||||
5 | coordination of other relevant programs, including, but | ||||||
6 | not limited to, housing, community and economic | ||||||
7 | development, small business, banking, financial | ||||||
8 | assistance, and employment training programs which are | ||||||
9 | carried on in a HOPE Zone.
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10 | (5) In order to stimulate employment opportunities
for | ||||||
11 | Zone residents, the Department, in cooperation with the | ||||||
12 | Department of Human Services and the Department of | ||||||
13 | Employment Security, is to initiate a test of the following | ||||||
14 | 2 programs within the 12 month period following designation | ||||||
15 | and approval by the Department of the first HOPE Zones: (i) | ||||||
16 | the use of aid to families with dependent children benefits | ||||||
17 | payable under Article IV of the Illinois Public Aid Code, | ||||||
18 | General Assistance benefits payable under Article VI of the | ||||||
19 | Illinois Public Aid Code, the unemployment insurance | ||||||
20 | benefits payable under the Unemployment Insurance Act as | ||||||
21 | training or employment subsidies leading to unsubsidized | ||||||
22 | employment; and (ii) a program for voucher reimbursement of | ||||||
23 | the cost of training Zone residents eligible under the | ||||||
24 | Targeted Jobs Tax Credit provisions of the Internal Revenue | ||||||
25 | Code for employment in private industry. These programs | ||||||
26 | shall not be designed to subsidize businesses, but are |
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1 | intended to open up job and training opportunities not | ||||||
2 | otherwise available. Nothing in this paragraph (5) shall be | ||||||
3 | deemed to require Zone businesses to utilize these | ||||||
4 | programs. These programs should be designed (i) for those | ||||||
5 | individuals whose opportunities for job-finding are | ||||||
6 | minimal without program participation; (ii) to minimize | ||||||
7 | the period of benefit collection by such individuals; and | ||||||
8 | (iii) to accelerate the transition of those individuals to | ||||||
9 | unsubsidized employment. The Department is to seek | ||||||
10 | agreement with business, organized labor and the | ||||||
11 | appropriate State Department, and agencies on the design, | ||||||
12 | operation, and evaluation of the test programs.
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13 | A report with recommendations including representative | ||||||
14 | comments of these groups shall be submitted by the Department | ||||||
15 | to the Governor and General Assembly not later than 12 months | ||||||
16 | after such test programs have commenced, or not later than 3 | ||||||
17 | months following the termination of such test programs, | ||||||
18 | whichever first occurs. | ||||||
19 | Section 35. State incentives regarding public services and | ||||||
20 | physical infrastructure.
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21 | (a) Industrial development bonds. Priority in the use of | ||||||
22 | industrial development bonds issued by the Illinois Finance | ||||||
23 | Authority shall be given to businesses located in HOPE Zones.
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24 | (b) Deposit of State funds by the State Treasurer. The | ||||||
25 | State Treasurer is authorized and encouraged to place deposits |
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1 | of State funds with financial institutions doing business in | ||||||
2 | HOPE Zones.
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3 | Section 40. State regulatory exemptions in HOPE Zones.
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4 | (a) The Department shall conduct an ongoing review of such | ||||||
5 | agency rules and regulations that may be identified by the | ||||||
6 | Department as businesses and preliminarily appearing to the | ||||||
7 | Department to:
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8 | (i) affect the conduct of business, industry, and | ||||||
9 | commerce;
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10 | (ii) impose excessive costs on either the creation or | ||||||
11 | conduct of such businesses; and
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12 | (iii) inhibit the development and expansions of | ||||||
13 | businesses within HOPE Zones.
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14 | The Department shall conduct hearings, pursuant to public | ||||||
15 | notice, to solicit public comment on such identified rules and | ||||||
16 | regulations as part of this review process.
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17 | (b) No later than August 1 of each calendar year, the | ||||||
18 | Department shall publish in the Illinois Register a list of | ||||||
19 | such rules and regulations identified under subsection (a). The | ||||||
20 | Department shall transmit a copy of the list to each agency | ||||||
21 | which has adopted rules or regulations on the list.
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22 | (c) Within 90 days of the publication of the list by the | ||||||
23 | Department, each agency which adopted rules or regulations | ||||||
24 | identified therein shall file a written report with the | ||||||
25 | Department detailing for each identified rule or regulation:
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1 | (i) the need or justification;
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2 | (ii) whether the rule or regulation is mandated by | ||||||
3 | State or federal law, or is discretionary, and to what | ||||||
4 | extent;
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5 | (iii) a synopsis of the history of the rule, including | ||||||
6 | any internal agency review after its original adoption; and
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7 | (iv) any appropriate explanation of its relationship | ||||||
8 | to other regulatory requirements.
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9 | The adopting agency shall also include any available data, | ||||||
10 | analysis, and studies concerning the economic impact of the | ||||||
11 | identified rules and regulations. The agency responses shall be | ||||||
12 | public records.
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13 | (d) No later than January 1 of the following calendar year, | ||||||
14 | the Department shall file proposed rules exempting businesses | ||||||
15 | within HOPE Zones from those agency rules and regulations | ||||||
16 | contained in the published list, for which the Department finds | ||||||
17 | that the job creation or business development incentives for | ||||||
18 | HOPE Zone development engendered by the exemption outweigh the | ||||||
19 | need and justification for the rule or regulation. In making | ||||||
20 | its findings, the Department shall consider all information, | ||||||
21 | data, and opinions submitted to it by the public, as well as by | ||||||
22 | adopting agencies, as well as information otherwise available | ||||||
23 | to it.
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24 | (e) The proposed rules and regulations adopted by the | ||||||
25 | Department shall be in the form of amendments to the existing | ||||||
26 | rules and regulations to be affected, and shall be subject to |
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1 | the Illinois Administrative Procedure Act.
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2 | (f) Upon its effective date, any exempting rule or | ||||||
3 | regulation of the Department shall supersede the exempted | ||||||
4 | agency rule or regulation in accordance with the terms of the | ||||||
5 | exemption. Such exemptions may apply only to businesses within | ||||||
6 | HOPE Zones during the effective term of the respective Zones. | ||||||
7 | Agencies may not adopt emergency rules to circumvent an | ||||||
8 | exemption effected by a Department exemption rule; any such | ||||||
9 | emergency rules shall not be effective within HOPE Zones to the | ||||||
10 | extent inconsistent with the terms of such an exemption.
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11 | Section 45. State and local regulatory alternatives.
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12 | (a) Agencies may provide in their rules and regulations for | ||||||
13 | (i) the exemption of businesses within HOPE Zones; or (ii) | ||||||
14 | modifications or alternatives specifically applicable to | ||||||
15 | businesses within HOPE Zones, which impose less stringent | ||||||
16 | standards or alternative standards for compliance, including | ||||||
17 | performance-based standards as a substitute for specific | ||||||
18 | mandates of methods, procedures, or equipment.
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19 | Such exemptions, modifications, or alternatives shall be | ||||||
20 | effected by rule or regulation adopted in accordance with the | ||||||
21 | Illinois Administrative Procedure Act. The agency adopting | ||||||
22 | exemptions, modifications, or alternatives shall file with its | ||||||
23 | proposed rule or regulation its findings that the proposed rule | ||||||
24 | or regulation provides economic incentives within HOPE Zones | ||||||
25 | which promote the purposes of this Act, and which, to the |
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1 | extent they include any exemptions or reductions in regulatory | ||||||
2 | standards or requirements, outweigh the need or justification | ||||||
3 | for the existing rule or regulation.
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4 | (b) If any agency adopts a rule or regulation under | ||||||
5 | subsection (a) of this Section affecting a rule or regulation | ||||||
6 | contained on the list published by the Department under Section | ||||||
7 | 35 of this Act, prior to the completion of the rule making | ||||||
8 | process for the Department's rules under that Section, the | ||||||
9 | agency shall immediately transmit a copy of its proposed rule | ||||||
10 | or regulation to the Department, together with a statement of | ||||||
11 | reasons as to why the Department should defer to the agency's | ||||||
12 | proposed rule or regulation. Agency rules adopted under | ||||||
13 | subsection (a) of this Section shall, however, be subject to | ||||||
14 | the exemption rules and regulations of the Department adopted | ||||||
15 | under Section 35 of this Act.
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16 | (c) The county or municipality containing a HOPE Zone may | ||||||
17 | modify all local ordinances and regulations regarding (1) | ||||||
18 | zoning; (2) licensing; (3) building codes, excluding however, | ||||||
19 | any regulations treating building defects; and (4) rent control | ||||||
20 | and price controls; except for the minimum wage. | ||||||
21 | Notwithstanding any shorter statute of limitation to the | ||||||
22 | contrary, actions against any contractor or architect who | ||||||
23 | designs, constructs, or rehabilitates a building or structure | ||||||
24 | in a HOPE Zone in accordance with local standards specifically | ||||||
25 | applicable within Zones which have been relaxed may be | ||||||
26 | commenced within 10 years from the time of beneficial occupancy |
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1 | of the building or use of the structure.
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2 | Section 900. The Illinois Income Tax Act is amended by | ||||||
3 | changing Sections 201 and 216 and by adding Sections 227 and | ||||||
4 | 228 as follows: | ||||||
5 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
6 | Sec. 201. Tax imposed. | ||||||
7 | (a) In general. A tax measured by net income is hereby | ||||||
8 | imposed on every
individual, corporation, trust and estate for | ||||||
9 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
10 | of earning or receiving income in or
as a resident of this | ||||||
11 | State. Such tax shall be in addition to all other
occupation or | ||||||
12 | privilege taxes imposed by this State or by any municipal
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13 | corporation or political subdivision thereof. | ||||||
14 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
15 | Section shall be
determined as follows, except as adjusted by | ||||||
16 | subsection (d-1): | ||||||
17 | (1) In the case of an individual, trust or estate, for | ||||||
18 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
19 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
20 | year. | ||||||
21 | (2) In the case of an individual, trust or estate, for | ||||||
22 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
23 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
24 | 1/2% of the taxpayer's net income for the period
prior to |
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1 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
2 | 3% of the
taxpayer's net income for the period after June | ||||||
3 | 30, 1989, as calculated
under Section 202.3. | ||||||
4 | (3) In the case of an individual, trust or estate, for | ||||||
5 | taxable years
beginning after June 30, 1989, and ending | ||||||
6 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
7 | taxpayer's net
income for the taxable year. | ||||||
8 | (4) In the case of an individual, trust, or estate, for | ||||||
9 | taxable years beginning prior to January 1, 2011, and | ||||||
10 | ending after December 31, 2010, an amount equal to the sum | ||||||
11 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
12 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
13 | (ii) 5% of the taxpayer's net income for the period after | ||||||
14 | December 31, 2010, as calculated under Section 202.5. | ||||||
15 | (5) In the case of an individual, trust, or estate, for | ||||||
16 | taxable years beginning on or after January 1, 2011, and | ||||||
17 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
18 | the taxpayer's net income for the taxable year. | ||||||
19 | (5.1) In the case of an individual, trust, or estate, | ||||||
20 | for taxable years beginning prior to January 1, 2015, and | ||||||
21 | ending after December 31, 2014, an amount equal to the sum | ||||||
22 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
23 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
24 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
25 | after December 31, 2014, as calculated under Section 202.5. | ||||||
26 | (5.2) In the case of an individual, trust, or estate, |
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1 | for taxable years beginning on or after January 1, 2015, | ||||||
2 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
3 | of the taxpayer's net income for the taxable year. | ||||||
4 | (5.3) In the case of an individual, trust, or estate, | ||||||
5 | for taxable years beginning prior to July 1, 2017, and | ||||||
6 | ending after June 30, 2017, an amount equal to the sum of | ||||||
7 | (i) 3.75% of the taxpayer's net income for the period prior | ||||||
8 | to July 1, 2017, as calculated under Section 202.5, and | ||||||
9 | (ii) 4.95% of the taxpayer's net income for the period | ||||||
10 | after June 30, 2017, as calculated under Section 202.5. | ||||||
11 | (5.4) In the case of an individual, trust, or estate, | ||||||
12 | for taxable years beginning on or after July 1, 2017, an | ||||||
13 | amount equal to 4.95% of the taxpayer's net income for the | ||||||
14 | taxable year. | ||||||
15 | (6) In the case of a corporation, for taxable years
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16 | ending prior to July 1, 1989, an amount equal to 4% of the
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17 | taxpayer's net income for the taxable year. | ||||||
18 | (7) In the case of a corporation, for taxable years | ||||||
19 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
20 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
21 | taxpayer's net income for the period prior to July 1, 1989,
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22 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
23 | taxpayer's net
income for the period after June 30, 1989, | ||||||
24 | as calculated under Section
202.3. | ||||||
25 | (8) In the case of a corporation, for taxable years | ||||||
26 | beginning after
June 30, 1989, and ending prior to January |
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1 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
2 | income for the
taxable year. | ||||||
3 | (9) In the case of a corporation, for taxable years | ||||||
4 | beginning prior to January 1, 2011, and ending after | ||||||
5 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
6 | of the taxpayer's net income for the period prior to | ||||||
7 | January 1, 2011, as calculated under Section 202.5, and | ||||||
8 | (ii) 7% of the taxpayer's net income for the period after | ||||||
9 | December 31, 2010, as calculated under Section 202.5. | ||||||
10 | (10) In the case of a corporation, for taxable years | ||||||
11 | beginning on or after January 1, 2011, and ending prior to | ||||||
12 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
13 | net income for the taxable year. | ||||||
14 | (11) In the case of a corporation, for taxable years | ||||||
15 | beginning prior to January 1, 2015, and ending after | ||||||
16 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
17 | the taxpayer's net income for the period prior to January | ||||||
18 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
19 | of the taxpayer's net income for the period after December | ||||||
20 | 31, 2014, as calculated under Section 202.5. | ||||||
21 | (12) In the case of a corporation, for taxable years | ||||||
22 | beginning on or after January 1, 2015, and ending prior to | ||||||
23 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
24 | net income for the taxable year. | ||||||
25 | (13) In the case of a corporation, for taxable years | ||||||
26 | beginning prior to July 1, 2017, and ending after June 30, |
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1 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
2 | taxpayer's net income for the period prior to July 1, 2017, | ||||||
3 | as calculated under Section 202.5, and (ii) 7% of the | ||||||
4 | taxpayer's net income for the period after June 30, 2017, | ||||||
5 | as calculated under Section 202.5. | ||||||
6 | (14) In the case of a corporation, for taxable years | ||||||
7 | beginning on or after July 1, 2017, an amount equal to 7% | ||||||
8 | of the taxpayer's net income for the taxable year. | ||||||
9 | The rates under this subsection (b) are subject to the | ||||||
10 | provisions of Section 201.5. | ||||||
11 | (c) Personal Property Tax Replacement Income Tax.
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12 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
13 | income
tax, there is also hereby imposed the Personal Property | ||||||
14 | Tax Replacement
Income Tax measured by net income on every | ||||||
15 | corporation (including Subchapter
S corporations), partnership | ||||||
16 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
17 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
18 | income in or as a resident of this State. The Personal Property
| ||||||
19 | Tax Replacement Income Tax shall be in addition to the income | ||||||
20 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
21 | addition to all other
occupation or privilege taxes imposed by | ||||||
22 | this State or by any municipal
corporation or political | ||||||
23 | subdivision thereof. | ||||||
24 | (d) Additional Personal Property Tax Replacement Income | ||||||
25 | Tax Rates.
The personal property tax replacement income tax | ||||||
26 | imposed by this subsection
and subsection (c) of this Section |
| |||||||
| |||||||
1 | in the case of a corporation, other
than a Subchapter S | ||||||
2 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
3 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
4 | income for the taxable year, except that
beginning on January | ||||||
5 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
6 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
7 | partnership, trust or a Subchapter S corporation shall be an | ||||||
8 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
9 | for the taxable year. | ||||||
10 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
11 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
12 | Illinois Insurance Code,
whose state or country of domicile | ||||||
13 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
14 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
15 | are 50% or more of its total insurance
premiums as determined | ||||||
16 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
17 | that for purposes of this determination premiums from | ||||||
18 | reinsurance do
not include premiums from inter-affiliate | ||||||
19 | reinsurance arrangements),
beginning with taxable years ending | ||||||
20 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
21 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
22 | increased) to the rate at which the total amount of tax imposed | ||||||
23 | under this Act,
net of all credits allowed under this Act, | ||||||
24 | shall equal (i) the total amount of
tax that would be imposed | ||||||
25 | on the foreign insurer's net income allocable to
Illinois for | ||||||
26 | the taxable year by such foreign insurer's state or country of
|
| |||||||
| |||||||
1 | domicile if that net income were subject to all income taxes | ||||||
2 | and taxes
measured by net income imposed by such foreign | ||||||
3 | insurer's state or country of
domicile, net of all credits | ||||||
4 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
5 | income by the foreign insurer's state of domicile.
For the | ||||||
6 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
7 | a
mutual insurer under common management. | ||||||
8 | (1) For the purposes of subsection (d-1), in no event | ||||||
9 | shall the sum of the
rates of tax imposed by subsections | ||||||
10 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
11 | (A) the total amount of tax imposed on such foreign | ||||||
12 | insurer under
this Act for a taxable year, net of all | ||||||
13 | credits allowed under this Act, plus | ||||||
14 | (B) the privilege tax imposed by Section 409 of the | ||||||
15 | Illinois Insurance
Code, the fire insurance company | ||||||
16 | tax imposed by Section 12 of the Fire
Investigation | ||||||
17 | Act, and the fire department taxes imposed under | ||||||
18 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
19 | equals 1.25% for taxable years ending prior to December 31, | ||||||
20 | 2003, or
1.75% for taxable years ending on or after | ||||||
21 | December 31, 2003, of the net
taxable premiums written for | ||||||
22 | the taxable year,
as described by subsection (1) of Section | ||||||
23 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
24 | no event increase the rates imposed under subsections
(b) | ||||||
25 | and (d). | ||||||
26 | (2) Any reduction in the rates of tax imposed by this |
| |||||||
| |||||||
1 | subsection shall be
applied first against the rates imposed | ||||||
2 | by subsection (b) and only after the
tax imposed by | ||||||
3 | subsection (a) net of all credits allowed under this | ||||||
4 | Section
other than the credit allowed under subsection (i) | ||||||
5 | has been reduced to zero,
against the rates imposed by | ||||||
6 | subsection (d). | ||||||
7 | This subsection (d-1) is exempt from the provisions of | ||||||
8 | Section 250. | ||||||
9 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
10 | against the Personal Property Tax Replacement Income Tax for
| ||||||
11 | investment in qualified property. | ||||||
12 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
13 | of
the basis of qualified property placed in service during | ||||||
14 | the taxable year,
provided such property is placed in | ||||||
15 | service on or after
July 1, 1984. There shall be allowed an | ||||||
16 | additional credit equal
to .5% of the basis of qualified | ||||||
17 | property placed in service during the
taxable year, | ||||||
18 | provided such property is placed in service on or
after | ||||||
19 | July 1, 1986, and the taxpayer's base employment
within | ||||||
20 | Illinois has increased by 1% or more over the preceding | ||||||
21 | year as
determined by the taxpayer's employment records | ||||||
22 | filed with the
Illinois Department of Employment Security. | ||||||
23 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
24 | met the 1% growth in base employment for
the first year in | ||||||
25 | which they file employment records with the Illinois
| ||||||
26 | Department of Employment Security. The provisions added to |
| |||||||
| |||||||
1 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
2 | Act 87-895) shall be
construed as declaratory of existing | ||||||
3 | law and not as a new enactment. If,
in any year, the | ||||||
4 | increase in base employment within Illinois over the
| ||||||
5 | preceding year is less than 1%, the additional credit shall | ||||||
6 | be limited to that
percentage times a fraction, the | ||||||
7 | numerator of which is .5% and the denominator
of which is | ||||||
8 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
9 | not be
allowed to the extent that it would reduce a | ||||||
10 | taxpayer's liability in any tax
year below zero, nor may | ||||||
11 | any credit for qualified property be allowed for any
year | ||||||
12 | other than the year in which the property was placed in | ||||||
13 | service in
Illinois. For tax years ending on or after | ||||||
14 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
15 | credit shall be allowed for the tax year in
which the | ||||||
16 | property is placed in service, or, if the amount of the | ||||||
17 | credit
exceeds the tax liability for that year, whether it | ||||||
18 | exceeds the original
liability or the liability as later | ||||||
19 | amended, such excess may be carried
forward and applied to | ||||||
20 | the tax liability of the 5 taxable years following
the | ||||||
21 | excess credit years if the taxpayer (i) makes investments | ||||||
22 | which cause
the creation of a minimum of 2,000 full-time | ||||||
23 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
24 | enterprise zone established pursuant to the Illinois
| ||||||
25 | Enterprise Zone Act and (iii) is certified by the | ||||||
26 | Department of Commerce
and Community Affairs (now |
| |||||||
| |||||||
1 | Department of Commerce and Economic Opportunity) as | ||||||
2 | complying with the requirements specified in
clause (i) and | ||||||
3 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
4 | Community Affairs (now Department of Commerce and Economic | ||||||
5 | Opportunity) shall notify the Department of Revenue of all | ||||||
6 | such
certifications immediately. For tax years ending | ||||||
7 | after December 31, 1988,
the credit shall be allowed for | ||||||
8 | the tax year in which the property is
placed in service, | ||||||
9 | or, if the amount of the credit exceeds the tax
liability | ||||||
10 | for that year, whether it exceeds the original liability or | ||||||
11 | the
liability as later amended, such excess may be carried | ||||||
12 | forward and applied
to the tax liability of the 5 taxable | ||||||
13 | years following the excess credit
years. The credit shall | ||||||
14 | be applied to the earliest year for which there is
a | ||||||
15 | liability. If there is credit from more than one tax year | ||||||
16 | that is
available to offset a liability, earlier credit | ||||||
17 | shall be applied first. | ||||||
18 | (2) The term "qualified property" means property | ||||||
19 | which: | ||||||
20 | (A) is tangible, whether new or used, including | ||||||
21 | buildings and structural
components of buildings and | ||||||
22 | signs that are real property, but not including
land or | ||||||
23 | improvements to real property that are not a structural | ||||||
24 | component of a
building such as landscaping, sewer | ||||||
25 | lines, local access roads, fencing, parking
lots, and | ||||||
26 | other appurtenances; |
| |||||||
| |||||||
1 | (B) is depreciable pursuant to Section 167 of the | ||||||
2 | Internal Revenue Code,
except that "3-year property" | ||||||
3 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
4 | eligible for the credit provided by this subsection | ||||||
5 | (e); | ||||||
6 | (C) is acquired by purchase as defined in Section | ||||||
7 | 179(d) of
the Internal Revenue Code; | ||||||
8 | (D) is used in Illinois by a taxpayer who is | ||||||
9 | primarily engaged in
manufacturing, or in mining coal | ||||||
10 | or fluorite, or in retailing, or was placed in service | ||||||
11 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
12 | Zone established pursuant to the River Edge | ||||||
13 | Redevelopment Zone Act; and | ||||||
14 | (E) has not previously been used in Illinois in | ||||||
15 | such a manner and by
such a person as would qualify for | ||||||
16 | the credit provided by this subsection
(e) or | ||||||
17 | subsection (f). | ||||||
18 | (3) For purposes of this subsection (e), | ||||||
19 | "manufacturing" means
the material staging and production | ||||||
20 | of tangible personal property by
procedures commonly | ||||||
21 | regarded as manufacturing, processing, fabrication, or
| ||||||
22 | assembling which changes some existing material into new | ||||||
23 | shapes, new
qualities, or new combinations. For purposes of | ||||||
24 | this subsection
(e) the term "mining" shall have the same | ||||||
25 | meaning as the term "mining" in
Section 613(c) of the | ||||||
26 | Internal Revenue Code. For purposes of this subsection
(e), |
| |||||||
| |||||||
1 | the term "retailing" means the sale of tangible personal | ||||||
2 | property for use or consumption and not for resale, or
| ||||||
3 | services rendered in conjunction with the sale of tangible | ||||||
4 | personal property for use or consumption and not for | ||||||
5 | resale. For purposes of this subsection (e), "tangible | ||||||
6 | personal property" has the same meaning as when that term | ||||||
7 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
8 | taxable years ending after December 31, 2008, does not | ||||||
9 | include the generation, transmission, or distribution of | ||||||
10 | electricity. | ||||||
11 | (4) The basis of qualified property shall be the basis
| ||||||
12 | used to compute the depreciation deduction for federal | ||||||
13 | income tax purposes. | ||||||
14 | (5) If the basis of the property for federal income tax | ||||||
15 | depreciation
purposes is increased after it has been placed | ||||||
16 | in service in Illinois by
the taxpayer, the amount of such | ||||||
17 | increase shall be deemed property placed
in service on the | ||||||
18 | date of such increase in basis. | ||||||
19 | (6) The term "placed in service" shall have the same
| ||||||
20 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
21 | (7) If during any taxable year, any property ceases to
| ||||||
22 | be qualified property in the hands of the taxpayer within | ||||||
23 | 48 months after
being placed in service, or the situs of | ||||||
24 | any qualified property is
moved outside Illinois within 48 | ||||||
25 | months after being placed in service, the
Personal Property | ||||||
26 | Tax Replacement Income Tax for such taxable year shall be
|
| |||||||
| |||||||
1 | increased. Such increase shall be determined by (i) | ||||||
2 | recomputing the
investment credit which would have been | ||||||
3 | allowed for the year in which
credit for such property was | ||||||
4 | originally allowed by eliminating such
property from such | ||||||
5 | computation and, (ii) subtracting such recomputed credit
| ||||||
6 | from the amount of credit previously allowed. For the | ||||||
7 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
8 | qualified property resulting
from a redetermination of the | ||||||
9 | purchase price shall be deemed a disposition
of qualified | ||||||
10 | property to the extent of such reduction. | ||||||
11 | (8) Unless the investment credit is extended by law, | ||||||
12 | the
basis of qualified property shall not include costs | ||||||
13 | incurred after
December 31, 2018, except for costs incurred | ||||||
14 | pursuant to a binding
contract entered into on or before | ||||||
15 | December 31, 2018. | ||||||
16 | (9) Each taxable year ending before December 31, 2000, | ||||||
17 | a partnership may
elect to pass through to its
partners the | ||||||
18 | credits to which the partnership is entitled under this | ||||||
19 | subsection
(e) for the taxable year. A partner may use the | ||||||
20 | credit allocated to him or her
under this paragraph only | ||||||
21 | against the tax imposed in subsections (c) and (d) of
this | ||||||
22 | Section. If the partnership makes that election, those | ||||||
23 | credits shall be
allocated among the partners in the | ||||||
24 | partnership in accordance with the rules
set forth in | ||||||
25 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
26 | promulgated under that Section, and the allocated amount of |
| |||||||
| |||||||
1 | the credits shall
be allowed to the partners for that | ||||||
2 | taxable year. The partnership shall make
this election on | ||||||
3 | its Personal Property Tax Replacement Income Tax return for
| ||||||
4 | that taxable year. The election to pass through the credits | ||||||
5 | shall be
irrevocable. | ||||||
6 | For taxable years ending on or after December 31, 2000, | ||||||
7 | a
partner that qualifies its
partnership for a subtraction | ||||||
8 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
9 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
10 | S
corporation for a subtraction under subparagraph (S) of | ||||||
11 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
12 | allowed a credit under this subsection
(e) equal to its | ||||||
13 | share of the credit earned under this subsection (e) during
| ||||||
14 | the taxable year by the partnership or Subchapter S | ||||||
15 | corporation, determined in
accordance with the | ||||||
16 | determination of income and distributive share of
income | ||||||
17 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
18 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
19 | of Section 250. | ||||||
20 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
21 | Redevelopment Zone. | ||||||
22 | (1) A taxpayer shall be allowed a credit against the | ||||||
23 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
24 | investment in qualified
property which is placed in service | ||||||
25 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
26 | Enterprise Zone Act or, for property placed in service on |
| |||||||
| |||||||
1 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
2 | established pursuant to the River Edge Redevelopment Zone | ||||||
3 | Act. For partners, shareholders
of Subchapter S | ||||||
4 | corporations, and owners of limited liability companies,
| ||||||
5 | if the liability company is treated as a partnership for | ||||||
6 | purposes of
federal and State income taxation, there shall | ||||||
7 | be allowed a credit under
this subsection (f) to be | ||||||
8 | determined in accordance with the determination
of income | ||||||
9 | and distributive share of income under Sections 702 and 704 | ||||||
10 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
11 | shall be .5% of the
basis for such property. The credit | ||||||
12 | shall be available only in the taxable
year in which the | ||||||
13 | property is placed in service in the Enterprise Zone or | ||||||
14 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
15 | the extent that it would reduce a taxpayer's
liability for | ||||||
16 | the tax imposed by subsections (a) and (b) of this Section | ||||||
17 | to
below zero. For tax years ending on or after December | ||||||
18 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
19 | which the property is placed in
service, or, if the amount | ||||||
20 | of the credit exceeds the tax liability for that
year, | ||||||
21 | whether it exceeds the original liability or the liability | ||||||
22 | as later
amended, such excess may be carried forward and | ||||||
23 | applied to the tax
liability of the 5 taxable years | ||||||
24 | following the excess credit year.
The credit shall be | ||||||
25 | applied to the earliest year for which there is a
| ||||||
26 | liability. If there is credit from more than one tax year |
| |||||||
| |||||||
1 | that is available
to offset a liability, the credit | ||||||
2 | accruing first in time shall be applied
first. | ||||||
3 | (2) The term qualified property means property which: | ||||||
4 | (A) is tangible, whether new or used, including | ||||||
5 | buildings and
structural components of buildings; | ||||||
6 | (B) is depreciable pursuant to Section 167 of the | ||||||
7 | Internal Revenue
Code, except that "3-year property" | ||||||
8 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
9 | eligible for the credit provided by this subsection | ||||||
10 | (f); | ||||||
11 | (C) is acquired by purchase as defined in Section | ||||||
12 | 179(d) of
the Internal Revenue Code; | ||||||
13 | (D) is used in the Enterprise Zone or River Edge | ||||||
14 | Redevelopment Zone by the taxpayer; and | ||||||
15 | (E) has not been previously used in Illinois in | ||||||
16 | such a manner and by
such a person as would qualify for | ||||||
17 | the credit provided by this subsection
(f) or | ||||||
18 | subsection (e). | ||||||
19 | (3) The basis of qualified property shall be the basis | ||||||
20 | used to compute
the depreciation deduction for federal | ||||||
21 | income tax purposes. | ||||||
22 | (4) If the basis of the property for federal income tax | ||||||
23 | depreciation
purposes is increased after it has been placed | ||||||
24 | in service in the Enterprise
Zone or River Edge | ||||||
25 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
26 | increase shall be deemed property
placed in service on the |
| |||||||
| |||||||
1 | date of such increase in basis. | ||||||
2 | (5) The term "placed in service" shall have the same | ||||||
3 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
4 | (6) If during any taxable year, any property ceases to | ||||||
5 | be qualified
property in the hands of the taxpayer within | ||||||
6 | 48 months after being placed
in service, or the situs of | ||||||
7 | any qualified property is moved outside the
Enterprise Zone | ||||||
8 | or River Edge Redevelopment Zone within 48 months after | ||||||
9 | being placed in service, the tax
imposed under subsections | ||||||
10 | (a) and (b) of this Section for such taxable year
shall be | ||||||
11 | increased. Such increase shall be determined by (i) | ||||||
12 | recomputing
the investment credit which would have been | ||||||
13 | allowed for the year in which
credit for such property was | ||||||
14 | originally allowed by eliminating such
property from such | ||||||
15 | computation, and (ii) subtracting such recomputed credit
| ||||||
16 | from the amount of credit previously allowed. For the | ||||||
17 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
18 | qualified property resulting
from a redetermination of the | ||||||
19 | purchase price shall be deemed a disposition
of qualified | ||||||
20 | property to the extent of such reduction. | ||||||
21 | (7) There shall be allowed an additional credit equal | ||||||
22 | to 0.5% of the basis of qualified property placed in | ||||||
23 | service during the taxable year in a River Edge | ||||||
24 | Redevelopment Zone, provided such property is placed in | ||||||
25 | service on or after July 1, 2006, and the taxpayer's base | ||||||
26 | employment within Illinois has increased by 1% or more over |
| |||||||
| |||||||
1 | the preceding year as determined by the taxpayer's | ||||||
2 | employment records filed with the Illinois Department of | ||||||
3 | Employment Security. Taxpayers who are new to Illinois | ||||||
4 | shall be deemed to have met the 1% growth in base | ||||||
5 | employment for the first year in which they file employment | ||||||
6 | records with the Illinois Department of Employment | ||||||
7 | Security. If, in any year, the increase in base employment | ||||||
8 | within Illinois over the preceding year is less than 1%, | ||||||
9 | the additional credit shall be limited to that percentage | ||||||
10 | times a fraction, the numerator of which is 0.5% and the | ||||||
11 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
12 | (g) (Blank). | ||||||
13 | (h) Investment credit; High Impact Business. | ||||||
14 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
15 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
16 | allowed a credit
against the tax imposed by subsections (a) | ||||||
17 | and (b) of this Section for
investment in qualified
| ||||||
18 | property which is placed in service by a Department of | ||||||
19 | Commerce and Economic Opportunity
designated High Impact | ||||||
20 | Business. The credit shall be .5% of the basis
for such | ||||||
21 | property. The credit shall not be available (i) until the | ||||||
22 | minimum
investments in qualified property set forth in | ||||||
23 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
24 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
25 | time authorized in subsection (b-5) of the Illinois
| ||||||
26 | Enterprise Zone Act for entities designated as High Impact |
| |||||||
| |||||||
1 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
2 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
3 | Act, and shall not be allowed to the extent that it would
| ||||||
4 | reduce a taxpayer's liability for the tax imposed by | ||||||
5 | subsections (a) and (b) of
this Section to below zero. The | ||||||
6 | credit applicable to such investments shall be
taken in the | ||||||
7 | taxable year in which such investments have been completed. | ||||||
8 | The
credit for additional investments beyond the minimum | ||||||
9 | investment by a designated
high impact business authorized | ||||||
10 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
11 | Enterprise Zone Act shall be available only in the taxable | ||||||
12 | year in
which the property is placed in service and shall | ||||||
13 | not be allowed to the extent
that it would reduce a | ||||||
14 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
15 | and (b) of this Section to below zero.
For tax years ending | ||||||
16 | on or after December 31, 1987, the credit shall be
allowed | ||||||
17 | for the tax year in which the property is placed in | ||||||
18 | service, or, if
the amount of the credit exceeds the tax | ||||||
19 | liability for that year, whether
it exceeds the original | ||||||
20 | liability or the liability as later amended, such
excess | ||||||
21 | may be carried forward and applied to the tax liability of | ||||||
22 | the 5
taxable years following the excess credit year. The | ||||||
23 | credit shall be
applied to the earliest year for which | ||||||
24 | there is a liability. If there is
credit from more than one | ||||||
25 | tax year that is available to offset a liability,
the | ||||||
26 | credit accruing first in time shall be applied first. |
| |||||||
| |||||||
1 | Changes made in this subdivision (h)(1) by Public Act | ||||||
2 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
3 | reflect existing law. | ||||||
4 | (2) The term qualified property means property which: | ||||||
5 | (A) is tangible, whether new or used, including | ||||||
6 | buildings and
structural components of buildings; | ||||||
7 | (B) is depreciable pursuant to Section 167 of the | ||||||
8 | Internal Revenue
Code, except that "3-year property" | ||||||
9 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
10 | eligible for the credit provided by this subsection | ||||||
11 | (h); | ||||||
12 | (C) is acquired by purchase as defined in Section | ||||||
13 | 179(d) of the
Internal Revenue Code; and | ||||||
14 | (D) is not eligible for the Enterprise Zone | ||||||
15 | Investment Credit provided
by subsection (f) of this | ||||||
16 | Section. | ||||||
17 | (3) The basis of qualified property shall be the basis | ||||||
18 | used to compute
the depreciation deduction for federal | ||||||
19 | income tax purposes. | ||||||
20 | (4) If the basis of the property for federal income tax | ||||||
21 | depreciation
purposes is increased after it has been placed | ||||||
22 | in service in a federally
designated Foreign Trade Zone or | ||||||
23 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
24 | such increase shall be deemed property placed in service on
| ||||||
25 | the date of such increase in basis. | ||||||
26 | (5) The term "placed in service" shall have the same |
| |||||||
| |||||||
1 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
2 | (6) If during any taxable year ending on or before | ||||||
3 | December 31, 1996,
any property ceases to be qualified
| ||||||
4 | property in the hands of the taxpayer within 48 months | ||||||
5 | after being placed
in service, or the situs of any | ||||||
6 | qualified property is moved outside
Illinois within 48 | ||||||
7 | months after being placed in service, the tax imposed
under | ||||||
8 | subsections (a) and (b) of this Section for such taxable | ||||||
9 | year shall
be increased. Such increase shall be determined | ||||||
10 | by (i) recomputing the
investment credit which would have | ||||||
11 | been allowed for the year in which
credit for such property | ||||||
12 | was originally allowed by eliminating such
property from | ||||||
13 | such computation, and (ii) subtracting such recomputed | ||||||
14 | credit
from the amount of credit previously allowed. For | ||||||
15 | the purposes of this
paragraph (6), a reduction of the | ||||||
16 | basis of qualified property resulting
from a | ||||||
17 | redetermination of the purchase price shall be deemed a | ||||||
18 | disposition
of qualified property to the extent of such | ||||||
19 | reduction. | ||||||
20 | (7) Beginning with tax years ending after December 31, | ||||||
21 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
22 | subsection (h) and thereby is
granted a tax abatement and | ||||||
23 | the taxpayer relocates its entire facility in
violation of | ||||||
24 | the explicit terms and length of the contract under Section
| ||||||
25 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
26 | subsections
(a) and (b) of this Section shall be increased |
| |||||||
| |||||||
1 | for the taxable year
in which the taxpayer relocated its | ||||||
2 | facility by an amount equal to the
amount of credit | ||||||
3 | received by the taxpayer under this subsection (h). | ||||||
4 | (i) Credit for Personal Property Tax Replacement Income | ||||||
5 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
6 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
7 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
8 | (d) of this Section. This credit shall be computed by | ||||||
9 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
10 | Section by a fraction, the numerator
of which is base income | ||||||
11 | allocable to Illinois and the denominator of which is
Illinois | ||||||
12 | base income, and further multiplying the product by the tax | ||||||
13 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
14 | Any credit earned on or after December 31, 1986 under
this | ||||||
15 | subsection which is unused in the year
the credit is computed | ||||||
16 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
17 | and (b) for that year (whether it exceeds the original
| ||||||
18 | liability or the liability as later amended) may be carried | ||||||
19 | forward and
applied to the tax liability imposed by subsections | ||||||
20 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
21 | year, provided that no credit may
be carried forward to any | ||||||
22 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
23 | applied first to the earliest year for which there is a | ||||||
24 | liability. If
there is a credit under this subsection from more | ||||||
25 | than one tax year that is
available to offset a liability the | ||||||
26 | earliest credit arising under this
subsection shall be applied |
| |||||||
| |||||||
1 | first. | ||||||
2 | If, during any taxable year ending on or after December 31, | ||||||
3 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
4 | Section for which a taxpayer
has claimed a credit under this | ||||||
5 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
6 | shall also be reduced. Such reduction shall be
determined by | ||||||
7 | recomputing the credit to take into account the reduced tax
| ||||||
8 | imposed by subsections (c) and (d). If any portion of the
| ||||||
9 | reduced amount of credit has been carried to a different | ||||||
10 | taxable year, an
amended return shall be filed for such taxable | ||||||
11 | year to reduce the amount of
credit claimed. | ||||||
12 | (j) Training expense credit. Beginning with tax years | ||||||
13 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
14 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
15 | imposed by subsections (a) and (b) under this Section
for all | ||||||
16 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
17 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
18 | of Illinois by a taxpayer, for educational or vocational | ||||||
19 | training in
semi-technical or technical fields or semi-skilled | ||||||
20 | or skilled fields, which
were deducted from gross income in the | ||||||
21 | computation of taxable income. The
credit against the tax | ||||||
22 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
23 | training expenses. For partners, shareholders of subchapter S
| ||||||
24 | corporations, and owners of limited liability companies, if the | ||||||
25 | liability
company is treated as a partnership for purposes of | ||||||
26 | federal and State income
taxation, there shall be allowed a |
| |||||||
| |||||||
1 | credit under this subsection (j) to be
determined in accordance | ||||||
2 | with the determination of income and distributive
share of | ||||||
3 | income under Sections 702 and 704 and subchapter S of the | ||||||
4 | Internal
Revenue Code. | ||||||
5 | Any credit allowed under this subsection which is unused in | ||||||
6 | the year
the credit is earned may be carried forward to each of | ||||||
7 | the 5 taxable
years following the year for which the credit is | ||||||
8 | first computed until it is
used. This credit shall be applied | ||||||
9 | first to the earliest year for which
there is a liability. If | ||||||
10 | there is a credit under this subsection from more
than one tax | ||||||
11 | year that is available to offset a liability the earliest
| ||||||
12 | credit arising under this subsection shall be applied first. No | ||||||
13 | carryforward
credit may be claimed in any tax year ending on or | ||||||
14 | after
December 31, 2003. | ||||||
15 | (k) Research and development credit. For tax years ending | ||||||
16 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
17 | beginning again for tax years ending on or after December 31, | ||||||
18 | 2004, and ending prior to January 1, 2022, a taxpayer shall be
| ||||||
19 | allowed a credit against the tax imposed by subsections (a) and | ||||||
20 | (b) of this
Section for increasing research activities in this | ||||||
21 | State. The credit
allowed against the tax imposed by | ||||||
22 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
23 | qualifying expenditures for increasing research activities
in | ||||||
24 | this State. For partners, shareholders of subchapter S | ||||||
25 | corporations, and
owners of limited liability companies, if the | ||||||
26 | liability company is treated as a
partnership for purposes of |
| |||||||
| |||||||
1 | federal and State income taxation, there shall be
allowed a | ||||||
2 | credit under this subsection to be determined in accordance | ||||||
3 | with the
determination of income and distributive share of | ||||||
4 | income under Sections 702 and
704 and subchapter S of the | ||||||
5 | Internal Revenue Code. | ||||||
6 | For purposes of this subsection, "qualifying expenditures" | ||||||
7 | means the
qualifying expenditures as defined for the federal | ||||||
8 | credit for increasing
research activities which would be | ||||||
9 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
10 | which are conducted in this State, "qualifying
expenditures for | ||||||
11 | increasing research activities in this State" means the
excess | ||||||
12 | of qualifying expenditures for the taxable year in which | ||||||
13 | incurred
over qualifying expenditures for the base period, | ||||||
14 | "qualifying expenditures
for the base period" means the average | ||||||
15 | of the qualifying expenditures for
each year in the base | ||||||
16 | period, and "base period" means the 3 taxable years
immediately | ||||||
17 | preceding the taxable year for which the determination is
being | ||||||
18 | made. | ||||||
19 | Any credit in excess of the tax liability for the taxable | ||||||
20 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
21 | unused credit shown on its final completed return carried over | ||||||
22 | as a credit
against the tax liability for the following 5 | ||||||
23 | taxable years or until it has
been fully used, whichever occurs | ||||||
24 | first; provided that no credit earned in a tax year ending | ||||||
25 | prior to December 31, 2003 may be carried forward to any year | ||||||
26 | ending on or after December 31, 2003. |
| |||||||
| |||||||
1 | If an unused credit is carried forward to a given year from | ||||||
2 | 2 or more
earlier years, that credit arising in the earliest | ||||||
3 | year will be applied
first against the tax liability for the | ||||||
4 | given year. If a tax liability for
the given year still | ||||||
5 | remains, the credit from the next earliest year will
then be | ||||||
6 | applied, and so on, until all credits have been used or no tax
| ||||||
7 | liability for the given year remains. Any remaining unused | ||||||
8 | credit or
credits then will be carried forward to the next | ||||||
9 | following year in which a
tax liability is incurred, except | ||||||
10 | that no credit can be carried forward to
a year which is more | ||||||
11 | than 5 years after the year in which the expense for
which the | ||||||
12 | credit is given was incurred. | ||||||
13 | No inference shall be drawn from this amendatory Act of the | ||||||
14 | 91st General
Assembly in construing this Section for taxable | ||||||
15 | years beginning before January
1, 1999. | ||||||
16 | It is the intent of the General Assembly that the research | ||||||
17 | and development credit under this subsection (k) shall apply | ||||||
18 | continuously for all tax years ending on or after December 31, | ||||||
19 | 2004 and ending prior to January 1, 2022, including, but not | ||||||
20 | limited to, the period beginning on January 1, 2016 and ending | ||||||
21 | on the effective date of this amendatory Act of the 100th | ||||||
22 | General Assembly. All actions taken in reliance on the | ||||||
23 | continuation of the credit under this subsection (k) by any | ||||||
24 | taxpayer are hereby validated. | ||||||
25 | (l) Environmental Remediation Tax Credit. | ||||||
26 | (i) For tax years ending after December 31, 1997 and on |
| |||||||
| |||||||
1 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
2 | credit against the tax
imposed by subsections (a) and (b) | ||||||
3 | of this Section for certain amounts paid
for unreimbursed | ||||||
4 | eligible remediation costs, as specified in this | ||||||
5 | subsection.
For purposes of this Section, "unreimbursed | ||||||
6 | eligible remediation costs" means
costs approved by the | ||||||
7 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
8 | Section 58.14 of the Environmental Protection Act that were | ||||||
9 | paid in performing
environmental remediation at a site for | ||||||
10 | which a No Further Remediation Letter
was issued by the | ||||||
11 | Agency and recorded under Section 58.10 of the | ||||||
12 | Environmental
Protection Act. The credit must be claimed | ||||||
13 | for the taxable year in which
Agency approval of the | ||||||
14 | eligible remediation costs is granted. The credit is
not | ||||||
15 | available to any taxpayer if the taxpayer or any related | ||||||
16 | party caused or
contributed to, in any material respect, a | ||||||
17 | release of regulated substances on,
in, or under the site | ||||||
18 | that was identified and addressed by the remedial
action | ||||||
19 | pursuant to the Site Remediation Program of the | ||||||
20 | Environmental Protection
Act. After the Pollution Control | ||||||
21 | Board rules are adopted pursuant to the
Illinois | ||||||
22 | Administrative Procedure Act for the administration and | ||||||
23 | enforcement of
Section 58.9 of the Environmental | ||||||
24 | Protection Act, determinations as to credit
availability | ||||||
25 | for purposes of this Section shall be made consistent with | ||||||
26 | those
rules. For purposes of this Section, "taxpayer" |
| |||||||
| |||||||
1 | includes a person whose tax
attributes the taxpayer has | ||||||
2 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
3 | and "related party" includes the persons disallowed a | ||||||
4 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
5 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
6 | a related taxpayer, as well as any of its
partners. The | ||||||
7 | credit allowed against the tax imposed by subsections (a) | ||||||
8 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
9 | remediation costs in
excess of $100,000 per site, except | ||||||
10 | that the $100,000 threshold shall not apply
to any site | ||||||
11 | contained in an enterprise zone as determined by the | ||||||
12 | Department of
Commerce and Community Affairs (now | ||||||
13 | Department of Commerce and Economic Opportunity). The | ||||||
14 | total credit allowed shall not exceed
$40,000 per year with | ||||||
15 | a maximum total of $150,000 per site. For partners and
| ||||||
16 | shareholders of subchapter S corporations, there shall be | ||||||
17 | allowed a credit
under this subsection to be determined in | ||||||
18 | accordance with the determination of
income and | ||||||
19 | distributive share of income under Sections 702 and 704 and
| ||||||
20 | subchapter S of the Internal Revenue Code. | ||||||
21 | (ii) A credit allowed under this subsection that is | ||||||
22 | unused in the year
the credit is earned may be carried | ||||||
23 | forward to each of the 5 taxable years
following the year | ||||||
24 | for which the credit is first earned until it is used.
The | ||||||
25 | term "unused credit" does not include any amounts of | ||||||
26 | unreimbursed eligible
remediation costs in excess of the |
| |||||||
| |||||||
1 | maximum credit per site authorized under
paragraph (i). | ||||||
2 | This credit shall be applied first to the earliest year
for | ||||||
3 | which there is a liability. If there is a credit under this | ||||||
4 | subsection
from more than one tax year that is available to | ||||||
5 | offset a liability, the
earliest credit arising under this | ||||||
6 | subsection shall be applied first. A
credit allowed under | ||||||
7 | this subsection may be sold to a buyer as part of a sale
of | ||||||
8 | all or part of the remediation site for which the credit | ||||||
9 | was granted. The
purchaser of a remediation site and the | ||||||
10 | tax credit shall succeed to the unused
credit and remaining | ||||||
11 | carry-forward period of the seller. To perfect the
| ||||||
12 | transfer, the assignor shall record the transfer in the | ||||||
13 | chain of title for the
site and provide written notice to | ||||||
14 | the Director of the Illinois Department of
Revenue of the | ||||||
15 | assignor's intent to sell the remediation site and the | ||||||
16 | amount of
the tax credit to be transferred as a portion of | ||||||
17 | the sale. In no event may a
credit be transferred to any | ||||||
18 | taxpayer if the taxpayer or a related party would
not be | ||||||
19 | eligible under the provisions of subsection (i). | ||||||
20 | (iii) For purposes of this Section, the term "site" | ||||||
21 | shall have the same
meaning as under Section 58.2 of the | ||||||
22 | Environmental Protection Act. | ||||||
23 | (m) Education expense credit. Beginning with tax years | ||||||
24 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
25 | of one or more qualifying pupils shall be allowed a credit
| ||||||
26 | against the tax imposed by subsections (a) and (b) of this |
| |||||||
| |||||||
1 | Section for
qualified education expenses incurred on behalf of | ||||||
2 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
3 | qualified education expenses, but in no
event may the total | ||||||
4 | credit under this subsection claimed by a
family that is the
| ||||||
5 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
6 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
7 | ending on or after December 31, 2017. In no event shall a | ||||||
8 | credit under
this subsection reduce the taxpayer's liability | ||||||
9 | under this Act to less than
zero. Notwithstanding any other | ||||||
10 | provision of law, for taxable years beginning on or after | ||||||
11 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
12 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
13 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
14 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
15 | of all other taxpayers. This subsection is exempt from the | ||||||
16 | provisions of Section 250 of this
Act. | ||||||
17 | For purposes of this subsection: | ||||||
18 | "Qualifying pupils" means individuals who (i) are | ||||||
19 | residents of the State of
Illinois, (ii) are under the age of | ||||||
20 | 21 at the close of the school year for
which a credit is | ||||||
21 | sought, and (iii) during the school year for which a credit
is | ||||||
22 | sought were full-time pupils enrolled in a kindergarten through | ||||||
23 | twelfth
grade education program at any school, as defined in | ||||||
24 | this subsection. | ||||||
25 | "Qualified education expense" means the amount incurred
on | ||||||
26 | behalf of a qualifying pupil in excess of $250 for tuition, |
| |||||||
| |||||||
1 | book fees, and
lab fees at the school in which the pupil is | ||||||
2 | enrolled during the regular school
year. | ||||||
3 | "School" means any public or nonpublic elementary or | ||||||
4 | secondary school in
Illinois that is in compliance with Title | ||||||
5 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
6 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
7 | except that nothing shall be construed to require a child to
| ||||||
8 | attend any particular public or nonpublic school to qualify for | ||||||
9 | the credit
under this Section. | ||||||
10 | "Custodian" means, with respect to qualifying pupils, an | ||||||
11 | Illinois resident
who is a parent, the parents, a legal | ||||||
12 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
13 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
14 | credit.
| ||||||
15 | (i) For tax years ending on or after December 31, 2006, | ||||||
16 | a taxpayer shall be allowed a credit against the tax | ||||||
17 | imposed by subsections (a) and (b) of this Section for | ||||||
18 | certain amounts paid for unreimbursed eligible remediation | ||||||
19 | costs, as specified in this subsection. For purposes of | ||||||
20 | this Section, "unreimbursed eligible remediation costs" | ||||||
21 | means costs approved by the Illinois Environmental | ||||||
22 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
23 | Environmental Protection Act that were paid in performing | ||||||
24 | environmental remediation at a site within a River Edge | ||||||
25 | Redevelopment Zone for which a No Further Remediation | ||||||
26 | Letter was issued by the Agency and recorded under Section |
| |||||||
| |||||||
1 | 58.10 of the Environmental Protection Act. The credit must | ||||||
2 | be claimed for the taxable year in which Agency approval of | ||||||
3 | the eligible remediation costs is granted. The credit is | ||||||
4 | not available to any taxpayer if the taxpayer or any | ||||||
5 | related party caused or contributed to, in any material | ||||||
6 | respect, a release of regulated substances on, in, or under | ||||||
7 | the site that was identified and addressed by the remedial | ||||||
8 | action pursuant to the Site Remediation Program of the | ||||||
9 | Environmental Protection Act. Determinations as to credit | ||||||
10 | availability for purposes of this Section shall be made | ||||||
11 | consistent with rules adopted by the Pollution Control | ||||||
12 | Board pursuant to the Illinois Administrative Procedure | ||||||
13 | Act for the administration and enforcement of Section 58.9 | ||||||
14 | of the Environmental Protection Act. For purposes of this | ||||||
15 | Section, "taxpayer" includes a person whose tax attributes | ||||||
16 | the taxpayer has succeeded to under Section 381 of the | ||||||
17 | Internal Revenue Code and "related party" includes the | ||||||
18 | persons disallowed a deduction for losses by paragraphs | ||||||
19 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
20 | Code by virtue of being a related taxpayer, as well as any | ||||||
21 | of its partners. The credit allowed against the tax imposed | ||||||
22 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
23 | unreimbursed eligible remediation costs in excess of | ||||||
24 | $100,000 per site. | ||||||
25 | (ii) A credit allowed under this subsection that is | ||||||
26 | unused in the year the credit is earned may be carried |
| |||||||
| |||||||
1 | forward to each of the 5 taxable years following the year | ||||||
2 | for which the credit is first earned until it is used. This | ||||||
3 | credit shall be applied first to the earliest year for | ||||||
4 | which there is a liability. If there is a credit under this | ||||||
5 | subsection from more than one tax year that is available to | ||||||
6 | offset a liability, the earliest credit arising under this | ||||||
7 | subsection shall be applied first. A credit allowed under | ||||||
8 | this subsection may be sold to a buyer as part of a sale of | ||||||
9 | all or part of the remediation site for which the credit | ||||||
10 | was granted. The purchaser of a remediation site and the | ||||||
11 | tax credit shall succeed to the unused credit and remaining | ||||||
12 | carry-forward period of the seller. To perfect the | ||||||
13 | transfer, the assignor shall record the transfer in the | ||||||
14 | chain of title for the site and provide written notice to | ||||||
15 | the Director of the Illinois Department of Revenue of the | ||||||
16 | assignor's intent to sell the remediation site and the | ||||||
17 | amount of the tax credit to be transferred as a portion of | ||||||
18 | the sale. In no event may a credit be transferred to any | ||||||
19 | taxpayer if the taxpayer or a related party would not be | ||||||
20 | eligible under the provisions of subsection (i). | ||||||
21 | (iii) For purposes of this Section, the term "site" | ||||||
22 | shall have the same meaning as under Section 58.2 of the | ||||||
23 | Environmental Protection Act. | ||||||
24 | (n-1) HOPE zone site remediation tax credit. | ||||||
25 | (1) For tax years beginning on or after January 1, | ||||||
26 | 2018, a taxpayer shall be allowed a credit against the tax |
| |||||||
| |||||||
1 | imposed by subsections (a) and (b) of this Section for | ||||||
2 | certain amounts paid for unreimbursed eligible remediation | ||||||
3 | costs, as specified in this subsection. For purposes of | ||||||
4 | this Section, "unreimbursed eligible remediation costs" | ||||||
5 | means costs approved by the Illinois Environmental | ||||||
6 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
7 | Environmental Protection Act that were paid in performing | ||||||
8 | environmental remediation at a site within a HOPE Zone | ||||||
9 | designated under the Community Renewal and Revitalization | ||||||
10 | Act for which a No Further Remediation Letter was issued by | ||||||
11 | the Agency and recorded under Section 58.10 of the | ||||||
12 | Environmental Protection Act. The credit must be claimed | ||||||
13 | for the taxable year in which Agency approval of the | ||||||
14 | eligible remediation costs is granted. The credit is not | ||||||
15 | available to any taxpayer if the taxpayer or any related | ||||||
16 | party caused or contributed to, in any material respect, a | ||||||
17 | release of regulated substances on, in, or under the site | ||||||
18 | that was identified and addressed by the remedial action | ||||||
19 | pursuant to the Site Remediation Program of the | ||||||
20 | Environmental Protection Act. Determinations as to credit | ||||||
21 | availability for purposes of this Section shall be made | ||||||
22 | consistent with rules adopted by the Pollution Control | ||||||
23 | Board pursuant to the Illinois Administrative Procedure | ||||||
24 | Act for the administration and enforcement of Section 58.9 | ||||||
25 | of the Environmental Protection Act. For purposes of this | ||||||
26 | Section, "taxpayer" includes a person whose tax attributes |
| |||||||
| |||||||
1 | the taxpayer has succeeded to under Section 381 of the | ||||||
2 | Internal Revenue Code and "related party" includes the | ||||||
3 | persons disallowed a deduction for losses by paragraphs | ||||||
4 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
5 | Code by virtue of being a related taxpayer, as well as any | ||||||
6 | of its partners. The credit allowed against the tax imposed | ||||||
7 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
8 | unreimbursed eligible remediation costs in excess of | ||||||
9 | $100,000 per site. | ||||||
10 | (2) A credit allowed under this subsection that is | ||||||
11 | unused in the year the credit is earned may be carried | ||||||
12 | forward to each of the 5 taxable years following the year | ||||||
13 | for which the credit is first earned until it is used. This | ||||||
14 | credit shall be applied first to the earliest year for | ||||||
15 | which there is a liability. If there is a credit under this | ||||||
16 | subsection from more than one tax year that is available to | ||||||
17 | offset a liability, the earliest credit arising under this | ||||||
18 | subsection shall be applied first. A credit allowed under | ||||||
19 | this subsection may be sold to a buyer as part of a sale of | ||||||
20 | all or part of the remediation site for which the credit | ||||||
21 | was granted. The purchaser of a remediation site and the | ||||||
22 | tax credit shall succeed to the unused credit and remaining | ||||||
23 | carry-forward period of the seller. To perfect the | ||||||
24 | transfer, the assignor shall record the transfer in the | ||||||
25 | chain of title for the site and provide written notice to | ||||||
26 | the Director of Revenue of the assignor's intent to sell |
| |||||||
| |||||||
1 | the remediation site and the amount of the tax credit to be | ||||||
2 | transferred as a portion of the sale. In no event may a | ||||||
3 | credit be transferred to any taxpayer if the taxpayer or a | ||||||
4 | related party would not be eligible under the provisions of | ||||||
5 | subsection (i). | ||||||
6 | (3) For the purposes of this subsection, "HOPE Zone" | ||||||
7 | means an area designated as a HOPE Zone by the Department | ||||||
8 | of Commerce and Economic Opportunity under the Community | ||||||
9 | Renewal and Revitalization Act. | ||||||
10 | (4) The credit under this subsection (n-1) is exempt | ||||||
11 | from the provisions of Section 250. | ||||||
12 | (o) For each of taxable years during the Compassionate Use | ||||||
13 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
14 | all taxpayers on income arising from the sale or exchange of | ||||||
15 | capital assets, depreciable business property, real property | ||||||
16 | used in the trade or business, and Section 197 intangibles of | ||||||
17 | an organization registrant under the Compassionate Use of | ||||||
18 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
19 | is equal to the amount of federal income tax liability for the | ||||||
20 | taxable year attributable to those sales and exchanges. The | ||||||
21 | surcharge imposed does not apply if: | ||||||
22 | (1) the medical cannabis cultivation center | ||||||
23 | registration, medical cannabis dispensary registration, or | ||||||
24 | the property of a registration is transferred as a result | ||||||
25 | of any of the following: | ||||||
26 | (A) bankruptcy, a receivership, or a debt |
| |||||||
| |||||||
1 | adjustment initiated by or against the initial | ||||||
2 | registration or the substantial owners of the initial | ||||||
3 | registration; | ||||||
4 | (B) cancellation, revocation, or termination of | ||||||
5 | any registration by the Illinois Department of Public | ||||||
6 | Health; | ||||||
7 | (C) a determination by the Illinois Department of | ||||||
8 | Public Health that transfer of the registration is in | ||||||
9 | the best interests of Illinois qualifying patients as | ||||||
10 | defined by the Compassionate Use of Medical Cannabis | ||||||
11 | Pilot Program Act; | ||||||
12 | (D) the death of an owner of the equity interest in | ||||||
13 | a registrant; | ||||||
14 | (E) the acquisition of a controlling interest in | ||||||
15 | the stock or substantially all of the assets of a | ||||||
16 | publicly traded company; | ||||||
17 | (F) a transfer by a parent company to a wholly | ||||||
18 | owned subsidiary; or | ||||||
19 | (G) the transfer or sale to or by one person to | ||||||
20 | another person where both persons were initial owners | ||||||
21 | of the registration when the registration was issued; | ||||||
22 | or | ||||||
23 | (2) the cannabis cultivation center registration, | ||||||
24 | medical cannabis dispensary registration, or the | ||||||
25 | controlling interest in a registrant's property is | ||||||
26 | transferred in a transaction to lineal descendants in which |
| |||||||
| |||||||
1 | no gain or loss is recognized or as a result of a | ||||||
2 | transaction in accordance with Section 351 of the Internal | ||||||
3 | Revenue Code in which no gain or loss is recognized. | ||||||
4 | (Source: P.A. 100-22, eff. 7-6-17.) | ||||||
5 | (35 ILCS 5/216) | ||||||
6 | Sec. 216. Credit for wages paid to ex-felons. | ||||||
7 | (a) For each taxable year beginning on or after January 1, | ||||||
8 | 2007, each taxpayer is entitled to a credit against the tax | ||||||
9 | imposed by subsections (a) and (b) of Section 201 of this Act | ||||||
10 | in an amount equal to 5% of qualified wages paid by the | ||||||
11 | taxpayer during the taxable year to one or more Illinois | ||||||
12 | residents who are qualified ex-offenders. The total credit | ||||||
13 | allowed to a taxpayer with respect to each qualified | ||||||
14 | ex-offender may not exceed $1,500 for all taxable years , except | ||||||
15 | that a taxpayer operating a business in a HOPE Zone under the | ||||||
16 | Community Renewal and Revitalization Act shall be allowed a | ||||||
17 | total credit up to $3,000 with respect to each qualified | ||||||
18 | ex-offender for all taxable years . For partners, shareholders | ||||||
19 | of Subchapter S corporations, and owners of limited liability | ||||||
20 | companies, if the liability company is treated as a partnership | ||||||
21 | for purposes of federal and State income taxation, there shall | ||||||
22 | be allowed a credit under this Section to be determined in | ||||||
23 | accordance with the determination of income and distributive | ||||||
24 | share of income under Sections 702 and 704 and Subchapter S of | ||||||
25 | the Internal Revenue Code. |
| |||||||
| |||||||
1 | (b) For purposes of this Section, "qualified wages": | ||||||
2 | (1) includes only wages that are subject to federal | ||||||
3 | unemployment tax under Section 3306 of the Internal Revenue | ||||||
4 | Code, without regard to any dollar limitation contained in | ||||||
5 | that Section;
| ||||||
6 | (2) does not include any amounts paid or incurred by an | ||||||
7 | employer for any period to any qualified ex-offender for | ||||||
8 | whom the employer receives federally funded payments for | ||||||
9 | on-the-job training of that qualified ex-offender for that | ||||||
10 | period;
and
| ||||||
11 | (3) includes only wages attributable to service | ||||||
12 | rendered during the one-year period beginning with the day | ||||||
13 | the qualified ex-offender begins work for the employer.
| ||||||
14 | If the taxpayer has received any payment from a program | ||||||
15 | established under Section 482(e)(1) of the federal Social | ||||||
16 | Security Act with respect to a qualified ex-offender, then, for | ||||||
17 | purposes of calculating the credit under this Section, the | ||||||
18 | amount of the qualified wages paid to that qualified | ||||||
19 | ex-offender must be reduced by the amount of the payment.
| ||||||
20 | (c) For purposes of this Section, "qualified ex-offender" | ||||||
21 | means any person who:
| ||||||
22 | (1) has been convicted of a crime in this State or of | ||||||
23 | an offense in any other jurisdiction, not including any | ||||||
24 | offense or attempted offense that would subject a person to | ||||||
25 | registration under the Sex Offender Registration Act; | ||||||
26 | (2) was sentenced to a period of incarceration in an |
| |||||||
| |||||||
1 | Illinois adult correctional center; and | ||||||
2 | (3) was hired by the taxpayer within 5 3 years after | ||||||
3 | being released from an Illinois adult correctional center. | ||||||
4 | (d) In no event shall a credit under this Section reduce | ||||||
5 | the taxpayer's liability to less than zero. If the amount of | ||||||
6 | the credit exceeds the tax liability for the year, the excess | ||||||
7 | may be carried forward and applied to the tax liability of the | ||||||
8 | 5 taxable years following the excess credit year. The tax | ||||||
9 | credit shall be applied to the earliest year for which there is | ||||||
10 | a tax liability. If there are credits for more than one year | ||||||
11 | that are available to offset a liability, the earlier credit | ||||||
12 | shall be applied first.
| ||||||
13 | (e) This Section is exempt from the provisions of Section | ||||||
14 | 250. | ||||||
15 | (Source: P.A. 98-165, eff. 8-5-13.) | ||||||
16 | (35 ILCS 5/227 new) | ||||||
17 | Sec. 227. Business credit; HOPE Zone. | ||||||
18 | (a) A business that, during the taxable year, maintains | ||||||
19 | operations within a HOPE Zone designated by the Department of | ||||||
20 | Commerce and Economic Opportunity under the Community Renewal | ||||||
21 | and Revitalization Act is entitled to a credit against the | ||||||
22 | taxes imposed under subsections (a) and (b) of Section 201 in | ||||||
23 | an amount equal to 50% of the taxpayer's liability for the | ||||||
24 | taxable year, calculated without regard to the application of | ||||||
25 | this credit. |
| |||||||
| |||||||
1 | (b) For partners, shareholders of subchapter S | ||||||
2 | corporations, and members of limited liability companies that | ||||||
3 | are treated as partnerships for purposes of federal and State | ||||||
4 | income taxation, there shall be allowed a credit under this | ||||||
5 | subsection to be determined in accordance with the | ||||||
6 | determination of income and distributive share of income under | ||||||
7 | Sections 702 and 704 and subchapter S of the Internal Revenue | ||||||
8 | Code. | ||||||
9 | (c) In no event shall a credit under this Section reduce | ||||||
10 | the taxpayer's liability to less than zero. If the amount of | ||||||
11 | the credit exceeds the tax liability for the year, the excess | ||||||
12 | may be carried forward and applied to the tax liability of the | ||||||
13 | 5 taxable years following the excess credit year. The tax | ||||||
14 | credit shall be applied to the earliest year for which there is | ||||||
15 | a tax liability. If there are credits for more than one year | ||||||
16 | that are available to offset a liability, the earlier credit | ||||||
17 | shall be applied first. | ||||||
18 | (d) This Section is exempt from the provisions of Section | ||||||
19 | 250. | ||||||
20 | (35 ILCS 5/228 new) | ||||||
21 | Sec. 228. Individual credit; HOPE Zone. | ||||||
22 | (a) An individual taxpayer with a principal place of | ||||||
23 | residence within a HOPE Zone designated by the Department of | ||||||
24 | Commerce and Economic Opportunity under the Community Renewal | ||||||
25 | and Revitalization Act is entitled to a credit against the |
| |||||||
| |||||||
1 | taxes imposed under subsections (a) and (b) of Section 201 in | ||||||
2 | an amount equal to 50% of the taxpayer's liability for the | ||||||
3 | taxable year, calculated without regard to the application of | ||||||
4 | this credit. | ||||||
5 | (b) In no event shall a credit under this Section reduce | ||||||
6 | the taxpayer's liability to less than zero. If the amount of | ||||||
7 | the credit exceeds the tax liability for the year, the excess | ||||||
8 | may be carried forward and applied to the tax liability of the | ||||||
9 | 5 taxable years following the excess credit year. The tax | ||||||
10 | credit shall be applied to the earliest year for which there is | ||||||
11 | a tax liability. If there are credits for more than one year | ||||||
12 | that are available to offset a liability, the earlier credit | ||||||
13 | shall be applied first. | ||||||
14 | (c) This Section is exempt from the provisions of Section | ||||||
15 | 250. | ||||||
16 | Section 905. The Small Business Job Creation Tax Credit Act | ||||||
17 | is amended by changing Sections 25 and 30 as follows: | ||||||
18 | (35 ILCS 25/25)
| ||||||
19 | Sec. 25. Tax credit. | ||||||
20 | (a) Subject to the conditions set forth in this Act, an | ||||||
21 | applicant is entitled to a credit against payment of taxes | ||||||
22 | withheld under Section 704A of the Illinois Income Tax Act: | ||||||
23 | (1) for new employees who participated as | ||||||
24 | worker-trainees in the Put Illinois to Work Program during |
| |||||||
| |||||||
1 | 2010: | ||||||
2 | (A) in the first calendar year ending on or after | ||||||
3 | the date that is 6 months after December 31, 2010, or | ||||||
4 | the date of hire, whichever is later. Under this | ||||||
5 | subparagraph, the applicant is entitled to one-half of | ||||||
6 | the credit allowable for each new employee who is | ||||||
7 | employed for at least 6 months after the date of hire; | ||||||
8 | and | ||||||
9 | (B) in the first calendar year ending on or after | ||||||
10 | the date that is 12 months after December 31, 2010, or | ||||||
11 | the date of hire, whichever is later. Under this | ||||||
12 | subparagraph, the applicant is entitled to one-half of | ||||||
13 | the credit allowable for each new employee who is | ||||||
14 | employed for at least 12 months after the date of hire; | ||||||
15 | (2) for all other new employees, in the first calendar | ||||||
16 | year ending on or after the date that is 12 months after | ||||||
17 | the date of hire of a new employee. The credit shall be | ||||||
18 | allowed as a credit to an applicant for each full-time | ||||||
19 | employee hired during the incentive period that results in | ||||||
20 | a net increase in full-time Illinois employees, where the | ||||||
21 | net increase in the employer's full-time Illinois | ||||||
22 | employees is maintained for at least 12 months. | ||||||
23 | (b) The Department shall make credit awards under this Act | ||||||
24 | to further job creation. | ||||||
25 | (c) The credit shall be claimed for the first calendar year | ||||||
26 | ending on or after the date on which the certificate is issued |
| |||||||
| |||||||
1 | by the Department. | ||||||
2 | (d) The credit shall not exceed $2,500 per new employee | ||||||
3 | hired ; however, businesses operating within HOPE Zones under | ||||||
4 | the Community Renewal and Revitalization Act shall be allowed a | ||||||
5 | credit up to $5,000 per new employee hired . | ||||||
6 | (e) The net increase in full-time Illinois employees, | ||||||
7 | measured on an annual full-time equivalent basis, shall be the | ||||||
8 | total number of full-time Illinois employees of the applicant | ||||||
9 | on the final day of the incentive period, minus the number of | ||||||
10 | full-time Illinois employees employed by the employer on the | ||||||
11 | first day of that same incentive period. For purposes of the | ||||||
12 | calculation, an employer that begins doing business in this | ||||||
13 | State during the incentive period, as determined by the | ||||||
14 | Director, shall be treated as having zero Illinois employees on | ||||||
15 | the first day of the incentive period. | ||||||
16 | (f) The net increase in the number of full-time Illinois | ||||||
17 | employees of the applicant under subsection (e) must be | ||||||
18 | sustained continuously for at least 12 months, starting with | ||||||
19 | the date of hire of a new employee during the incentive period. | ||||||
20 | Eligibility for the credit does not depend on the continuous | ||||||
21 | employment of any particular individual. For purposes of this | ||||||
22 | subsection (f), if a new employee ceases to be employed before | ||||||
23 | the completion of the 12-month period for any reason, the net | ||||||
24 | increase in the number of full-time Illinois employees shall be | ||||||
25 | treated as continuous if a different new employee is hired as a | ||||||
26 | replacement within a reasonable time for the same position.
|
| |||||||
| |||||||
1 | (g) The Department shall promulgate rules to enable an | ||||||
2 | applicant for which a PEO has been contracted to issue W-2s and | ||||||
3 | make payment of taxes withheld under Section 704A of the | ||||||
4 | Illinois Income Tax Act for new employees to retain the benefit | ||||||
5 | of tax credits to which the applicant is otherwise entitled | ||||||
6 | under this Act. | ||||||
7 | (Source: P.A. 96-888, eff. 4-13-10; 96-1498, eff. 1-18-11; | ||||||
8 | 97-636, eff. 6-1-12; 97-1052, eff. 8-23-12.) | ||||||
9 | (35 ILCS 25/30)
| ||||||
10 | Sec. 30. Maximum amount of credits allowed. The Department | ||||||
11 | shall limit the monetary amount of credits awarded under this | ||||||
12 | Act to no more than $100,000,000 $50,000,000 . If applications | ||||||
13 | for a greater amount are received, credits shall be allowed on | ||||||
14 | a first-come-first-served basis, based on the date on which | ||||||
15 | each properly completed application for a certificate of | ||||||
16 | eligibility is received by the Department. If more than one | ||||||
17 | certificate of eligibility is received on the same day, the | ||||||
18 | credits will be awarded based on the time of submission for | ||||||
19 | that particular day.
| ||||||
20 | (Source: P.A. 96-888, eff. 4-13-10.) | ||||||
21 | Section 910. The Retailers' Occupation Tax Act is amended | ||||||
22 | by changing Section 5k as follows:
| ||||||
23 | (35 ILCS 120/5k) (from Ch. 120, par. 444k)
|
| |||||||
| |||||||
1 | Sec. 5k. Building materials exemption; enterprise zone. | ||||||
2 | (a) Each retailer who makes a qualified sale of building
| ||||||
3 | materials
to be incorporated into real estate in a HOPE Zone | ||||||
4 | established under the Community Renewal and Revitalization Act | ||||||
5 | or an enterprise zone
established by a county or municipality | ||||||
6 | under the Illinois Enterprise Zone
Act
by remodeling,
| ||||||
7 | rehabilitation or new construction, may deduct receipts from | ||||||
8 | such sales
when calculating the tax imposed by this Act.
For | ||||||
9 | purposes of this Section, before July 1, 2013, "qualified sale" | ||||||
10 | means a sale of building
materials that will be incorporated | ||||||
11 | into real estate as part of a building
project for which a | ||||||
12 | Certificate of Eligibility for Sales Tax Exemption has been
| ||||||
13 | issued by the administrator of the enterprise zone in which the | ||||||
14 | building
project is located, and on and after July 1, 2013, | ||||||
15 | "qualified sale" means a sale of building materials that will | ||||||
16 | be incorporated into real estate as part of a building project | ||||||
17 | for which an Enterprise Zone Building Materials Exemption | ||||||
18 | Certificate or a HOPE Zone Building Materials Exemption | ||||||
19 | Certificate has been issued to the purchaser by the Department. | ||||||
20 | A construction contractor or other entity shall not make | ||||||
21 | tax-free purchases unless it has an active Exemption | ||||||
22 | Certificate issued by the Department at the time of the | ||||||
23 | purchase. | ||||||
24 | (b) Before July 1, 2013, to document the exemption allowed | ||||||
25 | under this Section, the
retailer must obtain from the purchaser | ||||||
26 | a copy of the Certificate of
Eligibility for Sales Tax |
| |||||||
| |||||||
1 | Exemption issued by the administrator of the
enterprise zone | ||||||
2 | into which the building materials will be incorporated. On and | ||||||
3 | after July 1, 2013, to document the exemption allowed under | ||||||
4 | this Section, the retailer must obtain from the purchaser the | ||||||
5 | certification required under subsection (c), which must | ||||||
6 | contain the Enterprise Zone Building Materials Exemption | ||||||
7 | Certificate number issued to the purchaser by the Department.
| ||||||
8 | Upon request from the enterprise zone administrator, the | ||||||
9 | Department shall issue an Enterprise Zone Building Materials | ||||||
10 | Exemption Certificate for each construction contractor or | ||||||
11 | other entity identified by the enterprise zone administrator. | ||||||
12 | Upon request from the corporate authorities of the municipality | ||||||
13 | in which a HOPE Zone is located, the Department shall issue a | ||||||
14 | HOPE Zone Building Materials Exemption Certificate for each | ||||||
15 | construction contractor or other entity identified by the | ||||||
16 | corporate authorities. The Department shall make the Exemption | ||||||
17 | Certificates available directly to each enterprise zone | ||||||
18 | administrator, construction contractor, or other entity. The | ||||||
19 | request for Enterprise Zone Building Materials Exemption | ||||||
20 | Certificates from the enterprise zone administrator or the | ||||||
21 | corporate authorities to the Department must include the | ||||||
22 | following information: | ||||||
23 | (1) the name and address of the construction contractor | ||||||
24 | or other entity; | ||||||
25 | (2) the name and number of the enterprise zone or HOPE | ||||||
26 | Zone ; |
| |||||||
| |||||||
1 | (3) the name and location or address of the building | ||||||
2 | project in the enterprise zone or HOPE Zone ; | ||||||
3 | (4) the estimated amount of the exemption for each | ||||||
4 | construction contractor or other entity for which a request | ||||||
5 | for Exemption Certificate is made, based on a stated | ||||||
6 | estimated average tax rate and the percentage of the | ||||||
7 | contract that consists of materials; | ||||||
8 | (5) the period of time over which supplies for the | ||||||
9 | project are expected to be purchased; and | ||||||
10 | (6) other reasonable information as the Department may | ||||||
11 | require, including, but not limited to FEIN numbers, to | ||||||
12 | determine if the contractor or other entity, or any | ||||||
13 | partner, or a corporate officer, and in the case of a | ||||||
14 | limited liability company, any manager or member, of the | ||||||
15 | construction contractor or other entity, is or has been the | ||||||
16 | owner, a partner, a corporate officer, and in the case of a | ||||||
17 | limited liability company, a manager or member, of a person | ||||||
18 | that is in default for moneys due to the Department under | ||||||
19 | this Act or any other tax or fee Act administered by the | ||||||
20 | Department. | ||||||
21 | The Department shall issue the Enterprise Zone Building | ||||||
22 | Materials Exemption Certificates within 3 business days after | ||||||
23 | receipt of request from the zone administrator or corporate | ||||||
24 | authorities . This requirement does not apply in circumstances | ||||||
25 | where the Department, for reasonable cause, is unable to issue | ||||||
26 | the Exemption Certificate within 3 business days. The |
| |||||||
| |||||||
1 | Department may refuse to issue an Exemption Certificate if the | ||||||
2 | owner, any partner, or a corporate officer, and in the case of | ||||||
3 | a limited liability company, any manager or member, of the | ||||||
4 | construction contractor or other entity is or has been the | ||||||
5 | owner, a partner, a corporate officer, and in the case of a | ||||||
6 | limited liability company, a manager or member, of a person | ||||||
7 | that is in default for moneys due to the Department under this | ||||||
8 | Act or any other tax or fee Act administered by the Department. | ||||||
9 | The Enterprise Zone Building Materials Exemption Certificate | ||||||
10 | shall contain language stating that if the construction | ||||||
11 | contractor or other entity who is issued the Exemption | ||||||
12 | Certificate makes a tax-exempt purchase, as described in this | ||||||
13 | Section, that is not eligible for exemption under this Section | ||||||
14 | or allows another person to make a tax-exempt purchase, as | ||||||
15 | described in this Section, that is not eligible for exemption | ||||||
16 | under this Section, then, in addition to any tax or other | ||||||
17 | penalty imposed, the construction contractor or other entity is | ||||||
18 | subject to a penalty equal to the tax that would have been paid | ||||||
19 | by the retailer under this Act as well as any applicable local | ||||||
20 | retailers' occupation tax on the purchase that is not eligible | ||||||
21 | for the exemption. | ||||||
22 | The Department, in its discretion, may require that | ||||||
23 | requests the request for Enterprise Zone Building Materials | ||||||
24 | Exemption Certificates be submitted electronically. The | ||||||
25 | Department may, in its discretion, issue the Exemption | ||||||
26 | Certificates electronically. The Enterprise Zone Building |
| |||||||
| |||||||
1 | Materials Exemption Certificate number shall be designed in | ||||||
2 | such a way that the Department can identify from the unique | ||||||
3 | number on the Exemption Certificate issued to a given | ||||||
4 | construction contractor or other entity, the name of the | ||||||
5 | Enterprise Zone or HOPE Zone , the project for which the | ||||||
6 | Exemption Certificate is issued, and the construction | ||||||
7 | contractor or other entity to whom the Exemption Certificate is | ||||||
8 | issued. The Exemption Certificate shall contain an expiration | ||||||
9 | date, which shall be no more than 2 years after the date of | ||||||
10 | issuance. At the request of the zone administrator, the | ||||||
11 | Department may renew an Exemption Certificate. After the | ||||||
12 | Department issues Exemption Certificates for a given | ||||||
13 | enterprise zone project, the enterprise zone administrator or | ||||||
14 | corporate authorities may notify the Department of additional | ||||||
15 | construction contractors or other entities eligible for an | ||||||
16 | Enterprise Zone Building Materials Exemption Certificate. Upon | ||||||
17 | notification by the enterprise zone administrator or corporate | ||||||
18 | authorities and subject to the other provisions of this | ||||||
19 | subsection (b), the Department shall issue an Enterprise Zone | ||||||
20 | Building Materials Exemption Certificate to each additional | ||||||
21 | construction contractor or other entity identified by the | ||||||
22 | enterprise zone administrator or corporate authorities . An | ||||||
23 | enterprise zone administrator may notify the Department to | ||||||
24 | rescind an Enterprise Zone Building Materials Exemption | ||||||
25 | Certificate previously issued by the Department but that has | ||||||
26 | not yet expired ; the corporate authorities of the municipality |
| |||||||
| |||||||
1 | may notify the Department to rescind a HOPE Zone Building | ||||||
2 | Materials Exemption Certificate previously issued by the | ||||||
3 | Department but that has not yet expired . Upon such notification | ||||||
4 | by the enterprise zone administrator and subject to the other | ||||||
5 | provisions of this subsection (b), the Department shall issue | ||||||
6 | the rescission of the Enterprise Zone Building Materials | ||||||
7 | Exemption Certificate to the construction contractor or other | ||||||
8 | entity identified by the enterprise zone administrator or | ||||||
9 | corporate authorities and provide a copy to the enterprise zone | ||||||
10 | administrator or corporate authorities . | ||||||
11 | If the Department of Revenue determines that a construction | ||||||
12 | contractor or other entity that was issued an Exemption | ||||||
13 | Certificate under this subsection (b) made a tax-exempt | ||||||
14 | purchase, as described in this Section, that was not eligible | ||||||
15 | for exemption under this Section or allowed another person to | ||||||
16 | make a tax-exempt purchase, as described in this Section, that | ||||||
17 | was not eligible for exemption under this Section, then, in | ||||||
18 | addition to any tax or other penalty imposed, the construction | ||||||
19 | contractor or other entity is subject to a penalty equal to the | ||||||
20 | tax that would have been paid by the retailer under this Act as | ||||||
21 | well as any applicable local retailers' occupation tax on the | ||||||
22 | purchase that was not eligible for the exemption.
| ||||||
23 | (c) In addition, the retailer must obtain certification | ||||||
24 | from the purchaser that
contains:
| ||||||
25 | (1) a statement that the building materials are being | ||||||
26 | purchased for
incorporation into real estate located in an |
| |||||||
| |||||||
1 | Illinois enterprise zone or HOPE Zone ;
| ||||||
2 | (2) the location or address of the real estate into | ||||||
3 | which the building
materials will be incorporated;
| ||||||
4 | (3) the name of the enterprise zone in which that real | ||||||
5 | estate is located;
| ||||||
6 | (4) a description of the building materials being | ||||||
7 | purchased;
| ||||||
8 | (5) on and after July 1, 2013, the purchaser's | ||||||
9 | Enterprise Zone Building Materials Exemption Certificate | ||||||
10 | number issued by the Department; and | ||||||
11 | (6) the purchaser's signature and date of purchase.
| ||||||
12 | (d) The deduction allowed by
this Section for the sale of | ||||||
13 | building materials may be limited, to the
extent authorized by | ||||||
14 | ordinance, adopted after the effective date of this
amendatory | ||||||
15 | Act of 1992, by the municipality or county that created the
| ||||||
16 | enterprise zone
into which the
building materials will be | ||||||
17 | incorporated.
The ordinance, however, may neither require nor | ||||||
18 | prohibit the purchase of
building materials from any retailer | ||||||
19 | or class of retailers in order to qualify
for the exemption | ||||||
20 | allowed under this Section. The provisions of this Section
are | ||||||
21 | exempt from Section
2-70.
| ||||||
22 | (e) Notwithstanding anything to the contrary in this | ||||||
23 | Section, for enterprise zone projects already in existence and | ||||||
24 | for which construction contracts are already in place on July | ||||||
25 | 1, 2013, the request for Enterprise Zone Building Materials | ||||||
26 | Exemption Certificates from the enterprise zone administrator |
| |||||||
| |||||||
1 | to the Department for these pre-existing construction | ||||||
2 | contractors and other entities must include the information | ||||||
3 | required under subsection (b), but not including the | ||||||
4 | information listed in items (4) and (5). For any new | ||||||
5 | construction contract entered into on or after July 1, 2013, | ||||||
6 | however, all of the information in subsection (b) must be | ||||||
7 | provided. | ||||||
8 | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| ||||||
9 | Section 915. The Environmental Protection Act is amended by | ||||||
10 | changing Section 58.14a as follows: | ||||||
11 | (415 ILCS 5/58.14a) | ||||||
12 | Sec. 58.14a. River Edge Redevelopment Zone Site | ||||||
13 | Remediation Tax Credit Review. | ||||||
14 | (a) Prior to applying for the River Edge Redevelopment Zone | ||||||
15 | site remediation tax credit under subsection (n) of Section 201 | ||||||
16 | of the Illinois Income Tax Act or a HOPE Zone site remediation | ||||||
17 | tax credit under subsection (n-1) of Section 201 of the | ||||||
18 | Illinois Income Tax Act , a Remediation Applicant must first | ||||||
19 | submit to the Agency an application for review of remediation | ||||||
20 | costs. The Agency shall review the application in consultation | ||||||
21 | with the Department of Commerce and Economic Opportunity. The | ||||||
22 | application and review process must be conducted in accordance | ||||||
23 | with the requirements of this Section and the rules adopted | ||||||
24 | under subsection (g). A preliminary review of the estimated |
| |||||||
| |||||||
1 | remediation costs for development and implementation of the | ||||||
2 | Remedial Action Plan may be obtained in accordance with | ||||||
3 | subsection (d). | ||||||
4 | (b) No application for review may be submitted until a No | ||||||
5 | Further Remediation Letter has been issued by the Agency and | ||||||
6 | recorded in the chain of title for the site in accordance with | ||||||
7 | Section 58.10. The Agency shall review the application to | ||||||
8 | determine whether the costs submitted are remediation costs and | ||||||
9 | whether the costs incurred are reasonable. The application must | ||||||
10 | be on forms prescribed and provided by the Agency. At a | ||||||
11 | minimum, the application must include the following: | ||||||
12 | (1) information identifying the Remediation Applicant, | ||||||
13 | the site for which the tax credit is being sought, and the | ||||||
14 | date of acceptance of the site into the Site Remediation | ||||||
15 | Program; | ||||||
16 | (2) a copy of the No Further Remediation Letter with | ||||||
17 | official verification that the letter has been recorded in | ||||||
18 | the chain of title for the site and a demonstration that | ||||||
19 | the site for which the application is submitted is the same | ||||||
20 | site as the one for which the No Further Remediation Letter | ||||||
21 | is issued; | ||||||
22 | (3) a demonstration that the release of the regulated | ||||||
23 | substances of concern for which the No Further Remediation | ||||||
24 | Letter was issued were not caused or contributed to in any | ||||||
25 | material respect by the Remediation Applicant. | ||||||
26 | Determinations as to credit availability shall be made |
| |||||||
| |||||||
1 | consistent with the Pollution Control Board rules for the | ||||||
2 | administration and enforcement of Section 58.9 of this Act; | ||||||
3 | (4) an itemization and documentation, including | ||||||
4 | receipts, of the remediation costs incurred; | ||||||
5 | (5) a demonstration that the costs incurred are | ||||||
6 | remediation costs as defined in this Act and its rules; | ||||||
7 | (6) a demonstration that the costs submitted for review | ||||||
8 | were incurred by the Remediation Applicant who received the | ||||||
9 | No Further Remediation Letter; | ||||||
10 | (7) an application fee in the amount set forth in | ||||||
11 | subsection (e) for each site for which review of | ||||||
12 | remediation costs is requested and, if applicable, | ||||||
13 | certification from the Department of Commerce and Economic | ||||||
14 | Opportunity that the site is located in a River Edge | ||||||
15 | Redevelopment Zone or a HOPE Zone ; and | ||||||
16 | (8) any other information deemed appropriate by the | ||||||
17 | Agency. | ||||||
18 | (c) Within 60 days after receipt by the Agency of an | ||||||
19 | application meeting the requirements of subsection (b), the | ||||||
20 | Agency shall issue a letter to the applicant approving, | ||||||
21 | disapproving, or modifying the remediation costs submitted in | ||||||
22 | the application. If the remediation costs are approved as | ||||||
23 | submitted, then the Agency's letter must state the amount of | ||||||
24 | the remediation costs to be applied toward the River Edge | ||||||
25 | Redevelopment Zone site remediation tax credit. If an | ||||||
26 | application is disapproved or approved with modification of |
| |||||||
| |||||||
1 | remediation costs, then the Agency's letter must set forth the | ||||||
2 | reasons for the disapproval or modification and must state the | ||||||
3 | amount of the remediation costs, if any, to be applied toward | ||||||
4 | the River Edge Redevelopment Zone site remediation tax credit. | ||||||
5 | If a preliminary review of a budget plan has been obtained | ||||||
6 | under subsection (d), then the Remediation Applicant may | ||||||
7 | submit, with the application and supporting documentation | ||||||
8 | under subsection (b), a copy of the Agency's final | ||||||
9 | determination accompanied by a certification that the actual | ||||||
10 | remediation costs incurred for the development and | ||||||
11 | implementation of the Remedial Action Plan are equal to or less | ||||||
12 | than the costs approved in the Agency's final determination on | ||||||
13 | the budget plan. The certification must be signed by the | ||||||
14 | Remediation Applicant and notarized. Based on that submission, | ||||||
15 | the Agency is not required to conduct further review of the | ||||||
16 | costs incurred for development and implementation of the | ||||||
17 | Remedial Action Plan, and it may approve the costs as | ||||||
18 | submitted.
Within 35 days after the receipt of an Agency letter | ||||||
19 | disapproving or modifying an application for approval of | ||||||
20 | remediation costs, the Remediation Applicant may appeal the | ||||||
21 | Agency's decision to the Board in the manner provided for the | ||||||
22 | review of permits under Section 40 of this Act. | ||||||
23 | (d) A Remediation Applicant may obtain a preliminary review | ||||||
24 | of estimated remediation costs for the development and | ||||||
25 | implementation of the Remedial Action Plan by submitting a | ||||||
26 | budget plan along with the Remedial Action Plan. The budget |
| |||||||
| |||||||
1 | plan must be set forth on forms prescribed and provided by the | ||||||
2 | Agency and must include, without limitation, line-item | ||||||
3 | estimates of the costs associated with each line item (such as | ||||||
4 | personnel, equipment, and materials) that the Remediation | ||||||
5 | Applicant anticipates will be incurred for the development and | ||||||
6 | implementation of the Remedial Action Plan. The Agency shall | ||||||
7 | review the budget plan along with the Remedial Action Plan to | ||||||
8 | determine whether the estimated costs submitted are | ||||||
9 | remediation costs and whether the costs estimated for the | ||||||
10 | activities are reasonable. | ||||||
11 | If the Remedial Action Plan is amended by the Remediation | ||||||
12 | Applicant or as a result of Agency action, then the | ||||||
13 | corresponding budget plan must be revised accordingly and | ||||||
14 | resubmitted for Agency review. | ||||||
15 | The budget plan must be accompanied by the applicable fee | ||||||
16 | as set forth in subsection (e). | ||||||
17 | The submittal of a budget plan is deemed to be an automatic | ||||||
18 | 60-day waiver of the Remedial Action Plan review deadlines set | ||||||
19 | forth in this Section and its rules. | ||||||
20 | Within the applicable period of review, the Agency shall | ||||||
21 | issue a letter to the Remediation Applicant approving, | ||||||
22 | disapproving, or modifying the estimated remediation costs | ||||||
23 | submitted in the budget plan. If a budget plan is disapproved | ||||||
24 | or approved with modification of estimated remediation costs, | ||||||
25 | then the Agency's letter must set forth the reasons for the | ||||||
26 | disapproval or modification. |
| |||||||
| |||||||
1 | Within 35 days after receipt of an Agency letter | ||||||
2 | disapproving or modifying a budget plan, the Remediation | ||||||
3 | Applicant may appeal the Agency's decision to the Board in the | ||||||
4 | manner provided for the review of permits under Section 40 of | ||||||
5 | this Act. | ||||||
6 | (e) Any fee for a review conducted under this Section is in | ||||||
7 | addition to any other fees or payments for Agency services | ||||||
8 | rendered under the Site Remediation Program. The fees under | ||||||
9 | this Section are as follows: | ||||||
10 | (1) the fee for an application for review of | ||||||
11 | remediation costs is $250 for each site reviewed; and | ||||||
12 | (2) there is no fee for the review of the budget plan | ||||||
13 | submitted under subsection (d). | ||||||
14 | The application fee must be made payable to the State of | ||||||
15 | Illinois, for deposit into the Hazardous Waste Fund.
Pursuant | ||||||
16 | to appropriation, the Agency shall use the fees collected under | ||||||
17 | this subsection for development and administration of the | ||||||
18 | review program. | ||||||
19 | (f) The Agency has the authority to enter into any | ||||||
20 | contracts or agreements that may be necessary to carry out its | ||||||
21 | duties and responsibilities under this Section. | ||||||
22 | (g) The Agency shall adopt rules prescribing procedures and | ||||||
23 | standards for its administration of this Section. Prior to the
| ||||||
24 | effective date of rules adopted under this Section, the Agency | ||||||
25 | may conduct reviews of applications under this Section. The | ||||||
26 | Agency may publish informal guidelines concerning this Section |
| |||||||
| |||||||
1 | to provide guidance.
| ||||||
2 | (Source: P.A. 95-454, eff. 8-27-07.)
| ||||||
3 | Section 999. Effective date. This Act takes effect upon | ||||||
4 | becoming law.".
|