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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Article 1. Illinois Energy Transition Zone Act | ||||||||||||||||||||||||||||||||||||||||
5 | Section 1-1. Short title. This Article may be cited as the | ||||||||||||||||||||||||||||||||||||||||
6 | Illinois Energy Transition Zone Act. References in this Article | ||||||||||||||||||||||||||||||||||||||||
7 | to "this Act" mean this Article. | ||||||||||||||||||||||||||||||||||||||||
8 | Section 1-5. Findings. The General Assembly finds and | ||||||||||||||||||||||||||||||||||||||||
9 | declares that the health, safety, and welfare of the people of | ||||||||||||||||||||||||||||||||||||||||
10 | this State are dependent upon a healthy economy and vibrant | ||||||||||||||||||||||||||||||||||||||||
11 | communities; that the closure of coal energy plants, coal | ||||||||||||||||||||||||||||||||||||||||
12 | mines, and nuclear energy plants across the state are | ||||||||||||||||||||||||||||||||||||||||
13 | detrimental to maintaining a healthy economy and vibrant | ||||||||||||||||||||||||||||||||||||||||
14 | communities; that the expansion of green energy creates | ||||||||||||||||||||||||||||||||||||||||
15 | significant job growth and contributes significantly to the | ||||||||||||||||||||||||||||||||||||||||
16 | health, safety, and welfare of the people of this State; that | ||||||||||||||||||||||||||||||||||||||||
17 | the continual encouragement, development, growth and expansion | ||||||||||||||||||||||||||||||||||||||||
18 | of green energy within the State requires a cooperative and | ||||||||||||||||||||||||||||||||||||||||
19 | continuous partnership between government and the green energy | ||||||||||||||||||||||||||||||||||||||||
20 | sector; and that there are certain depressed areas in this | ||||||||||||||||||||||||||||||||||||||||
21 | State that have lost jobs due to the closure of coal energy | ||||||||||||||||||||||||||||||||||||||||
22 | plants, coal mines, and nuclear energy plants and need the |
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1 | particular attention of government, labor and the citizens of | ||||||
2 | Illinois to help attract green energy investment into these | ||||||
3 | areas and directly aid the local community and its residents. | ||||||
4 | Therefore, it is declared to be the purpose of this Act to | ||||||
5 | explore ways of stimulating the growth of green energy in the | ||||||
6 | State and to foster job growth in areas depressed by the | ||||||
7 | closure of coal energy plants, coal mines and nuclear energy | ||||||
8 | plants. | ||||||
9 | Section 1-10. Definitions. As used in this Act, unless the | ||||||
10 | context otherwise requires: | ||||||
11 | "Agency" has the meaning provided in Section 1-7 of the | ||||||
12 | Illinois State Auditing Act. | ||||||
13 | "Board" means the Energy Transition Zone Board created in | ||||||
14 | Section 1-45. | ||||||
15 | "Department" means the Department of Commerce and Economic | ||||||
16 | Opportunity. | ||||||
17 | "Depressed area" means an area in which pervasive poverty, | ||||||
18 | unemployment, and economic distress exist. | ||||||
19 | "Energy Transition Zone" means an area of the State | ||||||
20 | certified by the Department as an Energy Transition Zone | ||||||
21 | pursuant to this Act. | ||||||
22 | "Full-time equivalent job" means a job in which the new | ||||||
23 | employee works for the recipient or for a corporation under | ||||||
24 | contract to the recipient at a rate of at least 35 hours per | ||||||
25 | week. A recipient who employs labor or services at a specific |
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1 | site or facility under contract with another may declare one | ||||||
2 | full-time, permanent job for every 1,820 man hours worked per | ||||||
3 | year under that contract. Vacations, paid holidays, and sick | ||||||
4 | time are included in this computation. Overtime is not | ||||||
5 | considered a part of regular hours. | ||||||
6 | "Full-time retained job" means any employee defined as | ||||||
7 | having a full-time or full-time equivalent job preserved at a | ||||||
8 | specific facility or site, the continuance of which is | ||||||
9 | threatened by a specific and demonstrable threat, which shall | ||||||
10 | be specified in the application for development assistance. A | ||||||
11 | recipient who employs labor or services at a specific site or | ||||||
12 | facility under contract with another may declare one retained | ||||||
13 | employee per year for every 1,750 man hours worked per year | ||||||
14 | under that contract, even if different individuals perform | ||||||
15 | on-site labor or services. | ||||||
16 | "Green energy enterprise" means a company that is engaged | ||||||
17 | in the production of solar energy, wind energy, water energy, | ||||||
18 | geothermal energy, bioenergy, or hydrogen fuel and cells. | ||||||
19 | "Green energy project" means a project conducted by a green | ||||||
20 | energy enterprise for the purpose of generating solar energy, | ||||||
21 | wind energy, water energy, geothermal energy, bioenergy, or | ||||||
22 | hydrogen fuel and cells. | ||||||
23 | "Local labor market area" means an economically integrated | ||||||
24 | area within which individuals can reside and find employment | ||||||
25 | within a reasonable distance or can readily change jobs without | ||||||
26 | changing their place of residence. |
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1 | "Rule" has the meaning provided in Section 1-70 of the | ||||||
2 | Illinois Administrative Procedure Act. | ||||||
3 | Section 1-15. Qualifications for Energy Transition Zones. | ||||||
4 | (a) An area is qualified to become an Energy Transition | ||||||
5 | Zone which: | ||||||
6 | (1) is a contiguous area, provided that a Zone area may | ||||||
7 | exclude wholly surrounded territory within its boundaries; | ||||||
8 | (2) comprises a minimum of one-half square mile and not | ||||||
9 | more than 12 square miles, exclusive of lakes and | ||||||
10 | waterways; | ||||||
11 | (3) is entirely within a single municipality; | ||||||
12 | (4) satisfies any additional criteria established by | ||||||
13 | the Department consistent with the purposes of this Act; | ||||||
14 | and | ||||||
15 | (5) meets one or more of the following: | ||||||
16 | (A) the area contains a coal energy plant that was | ||||||
17 | retired from service within 10 years of application for | ||||||
18 | designation; | ||||||
19 | (B) the area contains a coal mine that was closed | ||||||
20 | within 10 years of application for designation; and | ||||||
21 | (C) the area contains a nuclear energy plant that | ||||||
22 | was retired from service within 10 years of application | ||||||
23 | for designation. | ||||||
24 | Section 1-20. Entities eligible to receive tax benefits. |
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1 | Green energy enterprises are eligible to receive certain tax | ||||||
2 | benefits under this Act for green energy projects conducted | ||||||
3 | within an Energy Transition Zone. | ||||||
4 | Section 1-25. Incentives for green energy enterprises | ||||||
5 | located within an Energy Transition Zone. | ||||||
6 | (a) Green energy enterprises located in Energy Transition | ||||||
7 | Zones are eligible to apply for a State income tax credit under | ||||||
8 | the Energy Transition Zone Tax Credit Act. | ||||||
9 | (b) Green energy enterprises located in Energy Transition | ||||||
10 | Zones will be eligible to receive an investment credit subject | ||||||
11 | to the requirements of subsection (f-1) of Section 201 of the | ||||||
12 | Illinois Income Tax Act. | ||||||
13 | (c) Green energy enterprises are eligible to purchase | ||||||
14 | building materials exempt from use and occupation taxes to be | ||||||
15 | incorporated into their green energy projects within the Energy | ||||||
16 | Transition Zone when purchased from a retailer within the | ||||||
17 | Energy Transition Zone pursuant to Section 5k-1 of the | ||||||
18 | Retailers' Occupation Tax Act. | ||||||
19 | (d) Green energy enterprises located in an Energy | ||||||
20 | Transition Zone that meet the qualifications of Section | ||||||
21 | 9-222.1B of the Illinois Public Utilities Act are exempt, in | ||||||
22 | part or whole, from State and local taxes on gas and | ||||||
23 | electricity. | ||||||
24 | Section 1-30. Initiation of Energy Transition Zones by |
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1 | municipality or county. | ||||||
2 | (a) No area may be designated as an Energy Transition Zone | ||||||
3 | except pursuant to an initiating ordinance adopted in | ||||||
4 | accordance with this Section. | ||||||
5 | (b) A municipality may by ordinance designate an area | ||||||
6 | within its jurisdiction as an Energy Transition Zone, subject | ||||||
7 | to the certification of the Department in accordance with this | ||||||
8 | Act, if: | ||||||
9 | (1) the area is qualified in accordance with Section | ||||||
10 | 1-15; and | ||||||
11 | (2) the municipality has conducted at least one public | ||||||
12 | hearing within the proposed Zone area considering all of | ||||||
13 | the following questions: whether to create the Zone; what | ||||||
14 | local plans, tax incentives and other programs should be | ||||||
15 | established in connection with the Zone; and what the | ||||||
16 | boundaries of the Zone should be; public notice of the | ||||||
17 | hearing shall be published in at least one newspaper of | ||||||
18 | general circulation within the Zone area, not more than 20 | ||||||
19 | days nor less than 5 days before the hearing. | ||||||
20 | (c) An ordinance designating an area as an Energy | ||||||
21 | Transition Zone shall set forth: | ||||||
22 | (1) a precise description of the area comprising the | ||||||
23 | Zone, either in the form of a legal description or by | ||||||
24 | reference to roadways, lakes and waterways, and township, | ||||||
25 | county boundaries; | ||||||
26 | (2) a finding that the Zone area meets the |
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1 | qualifications of Section 1-15; | ||||||
2 | (3) provisions for any tax incentives or reimbursement | ||||||
3 | for taxes, which pursuant to State and federal law apply to | ||||||
4 | green energy enterprises within the Zone at the election of | ||||||
5 | the designating municipality, and which are not applicable | ||||||
6 | throughout the municipality; | ||||||
7 | (4) a designation of the area as an Energy Transition | ||||||
8 | Zone, subject to the approval of the Department in | ||||||
9 | accordance with this Act; and | ||||||
10 | (5) the duration or term of the Energy Transition Zone. | ||||||
11 | (d) This Section does not prohibit a municipality from | ||||||
12 | extending additional tax incentives or reimbursement for | ||||||
13 | business enterprises in Energy Transition Zones or throughout | ||||||
14 | their territory by separate ordinance. | ||||||
15 | Section 1-35. Application to Department. A municipality | ||||||
16 | which has adopted an ordinance designating an area as an Energy | ||||||
17 | Transition Zone shall make written application to the | ||||||
18 | Department to have such proposed Energy Transition Zone | ||||||
19 | certified by the Department as an Energy Transition Zone. The | ||||||
20 | application shall include: | ||||||
21 | (1) a certified copy of the ordinance designating the | ||||||
22 | proposed Zone; | ||||||
23 | (2) a map of the proposed Energy Transition Zone, | ||||||
24 | showing existing streets and highways; | ||||||
25 | (3) an analysis, and any appropriate supporting |
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1 | documents and statistics, demonstrating that the proposed | ||||||
2 | Zone area is qualified in accordance with Section 1-15; | ||||||
3 | (4) a statement detailing any tax, grant, and other | ||||||
4 | financial incentives or benefits, and any programs, to be | ||||||
5 | provided by the municipality or county to green energy | ||||||
6 | enterprises within the Zone, other than those provided in | ||||||
7 | the designating ordinance, which are not to be provided | ||||||
8 | throughout the municipality or county; | ||||||
9 | (5) a statement setting forth the economic development | ||||||
10 | and planning objectives for the Zone; | ||||||
11 | (6) an estimate of the economic impact of the Zone, | ||||||
12 | considering all of the tax incentives, financial benefits | ||||||
13 | and programs contemplated, upon the revenues of the | ||||||
14 | municipality or county; | ||||||
15 | (7) a transcript of all public hearings on the Zone; | ||||||
16 | and | ||||||
17 | (8) such additional information as the Department may | ||||||
18 | by rule require. | ||||||
19 | Section 1-40. Department review of Energy Transition Zone | ||||||
20 | applications. | ||||||
21 | (a) All applications which are to be considered and acted | ||||||
22 | upon by the Department during a calendar year must be received | ||||||
23 | by the Department no later than December 31 of the preceding | ||||||
24 | calendar year. | ||||||
25 | Any application received after December 31 of any calendar |
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1 | year shall be held by the Department for consideration and | ||||||
2 | action during the following calendar year. Each Energy | ||||||
3 | Transition Zone application shall include a specific | ||||||
4 | definition of the applicant's local labor market area. | ||||||
5 | (a-5) The Department shall, no later than July 31, 2019, | ||||||
6 | develop an application process for an Energy Transition Zone | ||||||
7 | application. The Department has emergency rulemaking authority | ||||||
8 | for the purpose of application development only until 12 months | ||||||
9 | after the effective date of this Act under subsection (aa) of | ||||||
10 | Section 5-45 of the Illinois Administrative Procedure Act. | ||||||
11 | (b) Upon receipt of an application from a municipality the | ||||||
12 | Department shall review the application to determine whether | ||||||
13 | the designated area qualifies as an Energy Transition Zone | ||||||
14 | under Section 1-15 of this Act. | ||||||
15 | (c) No later than June 30, the Department shall notify all | ||||||
16 | applicant municipalities of the Department's determination of | ||||||
17 | the qualification of their respective designated energy | ||||||
18 | transition Zone areas, along with supporting documentation of | ||||||
19 | the basis for the Department's decision. | ||||||
20 | (d) If any such designated area is found to be qualified to | ||||||
21 | be an Energy Transition Zone by the Department under subsection | ||||||
22 | (c) of this Section, the Department shall, no later than July | ||||||
23 | 15, send a letter of notification to each member of the General | ||||||
24 | Assembly whose legislative district or representative district | ||||||
25 | contains all or part of the designated area and publish a | ||||||
26 | notice in at least one newspaper of general circulation within |
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1 | the proposed Zone area to notify the general public of the | ||||||
2 | application and their opportunity to comment. Such notice shall | ||||||
3 | include a description of the area and a brief summary of the | ||||||
4 | application and shall indicate locations where the applicant | ||||||
5 | has provided copies of the application for public inspection. | ||||||
6 | The notice shall also indicate appropriate procedures for the | ||||||
7 | filing of written comments from Zone residents, business, civic | ||||||
8 | and other organizations and property owners to the Department. | ||||||
9 | Section 1-45. Energy Transition Zone Board. | ||||||
10 | (a) An Energy Transition Zone Board is hereby created | ||||||
11 | within the Department. | ||||||
12 | (b) The Board shall consist of the following 5 members: | ||||||
13 | (1) the Director of Commerce and Economic Opportunity, | ||||||
14 | or his or her designee, who shall serve as chairperson; | ||||||
15 | (2) the Director of Revenue, or his or her designee; | ||||||
16 | and | ||||||
17 | (3) 3 members appointed by the Governor, with the | ||||||
18 | advice and consent of the Senate. | ||||||
19 | Board members shall serve without compensation but may be | ||||||
20 | reimbursed for necessary expenses incurred in the performance | ||||||
21 | of their duties from funds appropriated for that purpose. | ||||||
22 | (c) Each member appointed under paragraph (3) of subsection | ||||||
23 | (b) shall have at least 5 years of experience in business, | ||||||
24 | economic development, or site location. | ||||||
25 | (d) Of the initial members appointed under paragraph (3) of |
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1 | subsection (b): one member shall serve for a term of 2 years; | ||||||
2 | one member shall serve for a term of 3 years; and one member | ||||||
3 | shall serve for a term of 4 years. Thereafter, all members | ||||||
4 | appointed under paragraph (3) of subsection (b) shall serve for | ||||||
5 | terms of 4 years. Members appointed under paragraph (3) of | ||||||
6 | subsection (b) may be reappointed. The Governor may remove a | ||||||
7 | member appointed under paragraph (3) of subsection (b) for | ||||||
8 | incompetence, neglect of duty, or malfeasance in office. | ||||||
9 | (e) By September 30, 2019, and September 30 of each year | ||||||
10 | thereafter, all applications filed by December 31 of the | ||||||
11 | preceding calendar year and deemed qualified by the Department | ||||||
12 | shall be approved or denied by the Board. If such application | ||||||
13 | is not approved by September 30, the application shall be | ||||||
14 | considered denied. If an application is denied, the Board shall | ||||||
15 | inform the applicant of the specific reasons for the denial. | ||||||
16 | (f) A majority of the Board shall determine whether an | ||||||
17 | application is approved or denied. | ||||||
18 | Section 1-50. Certification of Energy Transition Zones; | ||||||
19 | effective date. | ||||||
20 | (a) Certification of Board-approved designated Energy | ||||||
21 | Transition Zones shall be made by the Department by | ||||||
22 | certification of the designating ordinance. The Department | ||||||
23 | shall promptly issue a certificate for each Energy Transition | ||||||
24 | Zone upon approval by the Board. The certificate shall be | ||||||
25 | signed by the Director of the Department, shall make specific |
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1 | reference to the designating ordinance, which shall be attached | ||||||
2 | thereto, and shall be filed in the office of the Secretary of | ||||||
3 | State. A certified copy of the Energy Transition Zone | ||||||
4 | Certificate, or a duplicate original thereof, shall be recorded | ||||||
5 | in the office of recorder of deeds of the county in which the | ||||||
6 | Energy Transition Zone lies. | ||||||
7 | (b) An Energy Transition Zone shall be effective on the | ||||||
8 | date of the Department's certification. The Department shall | ||||||
9 | transmit a copy of the certification to the Department of | ||||||
10 | Revenue, and to the designating municipality. | ||||||
11 | (c) Upon certification of an Energy Transition Zone, the | ||||||
12 | terms and provisions of the designating ordinance shall be in | ||||||
13 | effect, and may not be amended or repealed except in accordance | ||||||
14 | with Section 1-55. | ||||||
15 | (d) Energy Transition Zone designation will last for 13 | ||||||
16 | years from the effective date of such designation and shall be | ||||||
17 | subject to review by the Board after 13 years for an additional | ||||||
18 | 10-year designation beginning on the expiration date of the | ||||||
19 | Energy Transition Zone. During the review process, the Board | ||||||
20 | shall consider the costs incurred by the State and units of | ||||||
21 | local government as a result of tax benefits received by the | ||||||
22 | Energy Transition Zone. Energy Transition Zones shall | ||||||
23 | terminate at midnight of December 31 of the final calendar year | ||||||
24 | of the certified term, except as provided in Section 1-55. | ||||||
25 | (e) Each Energy Transition Zone that reapplies for | ||||||
26 | certification but does not receive a new certification shall |
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1 | expire on its scheduled termination date. | ||||||
2 | Section 1-55. Amendment and decertification of Energy | ||||||
3 | Transition Zones. | ||||||
4 | (a) The terms of a certified Energy Transition Zone | ||||||
5 | designating ordinance may be amended to: | ||||||
6 | (1) alter the boundaries of the Energy Transition Zone, | ||||||
7 | or | ||||||
8 | (2) expand, limit or repeal tax incentives or benefits | ||||||
9 | provided in the ordinance, or | ||||||
10 | (3) alter the termination date of the Zone, or | ||||||
11 | (4) make technical corrections in the Energy | ||||||
12 | Transition Zone designating ordinance; but such amendment | ||||||
13 | shall not be effective unless the Department issues an | ||||||
14 | amended certificate for the Energy Transition Zone | ||||||
15 | approving the amended designating ordinance. Upon the | ||||||
16 | adoption of any ordinance amending or repealing the terms | ||||||
17 | of a certified Energy Transition Zone designating | ||||||
18 | ordinance, the municipality or county shall promptly file | ||||||
19 | with the Department an application for approval thereof, | ||||||
20 | containing substantially the same information as required | ||||||
21 | for an application under Section 1-35 insofar as material | ||||||
22 | to the proposed changes. The municipality or county must | ||||||
23 | hold a public hearing on the proposed changes; or | ||||||
24 | (5) include an area within another municipality or | ||||||
25 | county as part of the designated Energy Transition Zone |
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1 | provided the requirements of Section 1-15 are complied | ||||||
2 | with. | ||||||
3 | (b) The Department shall approve or disapprove a proposed | ||||||
4 | amendment to a certified Energy Transition Zone within 90 days | ||||||
5 | of its receipt of the application from the municipality. The | ||||||
6 | Department may not approve changes in a Zone which are not in | ||||||
7 | conformity with this Act, as now or hereafter amended, or with | ||||||
8 | other applicable laws. If the Department issues an amended | ||||||
9 | certificate for an Energy Transition Zone, the amended | ||||||
10 | certificate, together with the amended Zone designating | ||||||
11 | ordinance, shall be filed, recorded, and transmitted as | ||||||
12 | provided in this Act. | ||||||
13 | (c) An Energy Transition Zone may be decertified by joint | ||||||
14 | action of the Department and the designating municipality in | ||||||
15 | accordance with this Section. The designating municipality | ||||||
16 | shall conduct at least one public hearing within the Zone prior | ||||||
17 | to its adoption of an ordinance of de-designation. The mayor of | ||||||
18 | the designating municipality shall execute a joint | ||||||
19 | decertification agreement with the Department. A | ||||||
20 | decertification of an Energy Transition Zone shall not become | ||||||
21 | effective until at least 6 months after the execution of the | ||||||
22 | decertification agreement, which shall be filed in the office | ||||||
23 | of the Secretary of State. | ||||||
24 | (d) An Energy Transition Zone may be decertified for cause | ||||||
25 | by the Department in accordance with this Section. Prior to | ||||||
26 | decertification: (1) the Department shall notify the chief |
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1 | elected official of the designating municipality in writing of | ||||||
2 | the specific deficiencies which provide cause for | ||||||
3 | decertification; (2) the Department shall place the | ||||||
4 | designating municipality on probationary status for at least 6 | ||||||
5 | months during which time corrective action may be achieved in | ||||||
6 | the Energy Transition Zone by the designating municipality; and | ||||||
7 | (3) the Department shall conduct at least one public hearing | ||||||
8 | within the Zone. If such corrective action is not achieved | ||||||
9 | during the probationary period, the Department shall issue an | ||||||
10 | amended certificate signed by the Director of the Department | ||||||
11 | decertifying the Energy Transition Zone, which certificate | ||||||
12 | shall be filed in the office of the Secretary of State. A | ||||||
13 | certified copy of the amended Energy Transition Zone | ||||||
14 | certificate, or a duplicate original thereof, shall be recorded | ||||||
15 | in the office of recorder of the county in which the Energy | ||||||
16 | Transition Zone lies, and shall be provided to the chief | ||||||
17 | elected official of the designating municipality. | ||||||
18 | Decertification of an Energy Transition Zone shall not become | ||||||
19 | effective until 60 days after the date of filing. | ||||||
20 | (e) In the event of a decertification, or an amendment | ||||||
21 | reducing the length of the term or the area of an Energy | ||||||
22 | Transition Zone or the adoption of an ordinance reducing or | ||||||
23 | eliminating tax benefits in an Energy Transition Zone, all | ||||||
24 | benefits previously extended within the Zone pursuant to this | ||||||
25 | Act or pursuant to any other Illinois law providing benefits | ||||||
26 | specifically to or within Energy Transition Zones shall remain |
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1 | in effect for the original stated term of the Energy Transition | ||||||
2 | Zone, with respect to green energy enterprises within the Zone | ||||||
3 | on the effective date of such decertification or amendment. | ||||||
4 | Section 1-60. Powers and duties of Department. | ||||||
5 | (a) The Department shall administer this Act and shall have | ||||||
6 | the following powers and duties: | ||||||
7 | (1) to monitor the implementation of this Act and | ||||||
8 | submit reports evaluating the effectiveness of the program | ||||||
9 | and any suggestions for legislation to the Governor and | ||||||
10 | General Assembly by October 1 of every year preceding a | ||||||
11 | regular Session of the General Assembly and to annually | ||||||
12 | report to the General Assembly initial and current | ||||||
13 | population, employment, per capita income, number of | ||||||
14 | business establishments, dollar value of new construction | ||||||
15 | and improvements, and the aggregate value of each tax | ||||||
16 | incentive, based on information provided by the Department | ||||||
17 | of Revenue for each Energy Transition Zone; and | ||||||
18 | (2) to adopt all necessary rules to carry out the | ||||||
19 | purposes of this Act in accordance with the Illinois | ||||||
20 | Administrative Procedure Act. | ||||||
21 | (b) The Department shall have all of the following specific | ||||||
22 | duties: | ||||||
23 | (1) The Department shall provide information and | ||||||
24 | appropriate assistance to persons desiring to locate and | ||||||
25 | engage in business in an Energy Transition Zone and to |
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1 | persons engaged in green energy in an Energy Transition | ||||||
2 | Zone. | ||||||
3 | (2) The Department shall, in cooperation with | ||||||
4 | appropriate units of local government and State agencies, | ||||||
5 | coordinate and streamline existing State business | ||||||
6 | assistance programs and permit and license application | ||||||
7 | procedures for Energy Transition Zone green energy | ||||||
8 | enterprises. | ||||||
9 | (3) The Department shall publicize existing tax | ||||||
10 | incentives and economic development programs within the | ||||||
11 | Zone and upon request, offer technical assistance in | ||||||
12 | abatement and alternative revenue source development to | ||||||
13 | local units of government which have Energy Transition | ||||||
14 | Zones within their jurisdiction. | ||||||
15 | (4) The Department shall work together with the | ||||||
16 | responsible State and federal agencies to promote the | ||||||
17 | coordination of other relevant programs, including but not | ||||||
18 | limited to housing, community and economic development, | ||||||
19 | small business, banking, financial assistance, and | ||||||
20 | employment training programs which are carried on in an | ||||||
21 | Energy Transition Zone. | ||||||
22 | (5) In order to stimulate employment opportunities for | ||||||
23 | Zone residents, the Department, in cooperation with the | ||||||
24 | Department of Human Services and the Department of | ||||||
25 | Employment Security, is to initiate a test of the following | ||||||
26 | 2 programs within the 12 month period following designation |
| |||||||
| |||||||
1 | and approval by the Department of the first Energy | ||||||
2 | Transition Zones: (i) the use of aid to families with | ||||||
3 | dependent children benefits payable under Article IV of the | ||||||
4 | Illinois Public Aid Code, General Assistance benefits | ||||||
5 | payable under Article VI of the Illinois Public Aid Code, | ||||||
6 | the unemployment insurance benefits payable under the | ||||||
7 | Unemployment Insurance Act as training or employment | ||||||
8 | subsidies leading to unsubsidized employment; and (ii) a | ||||||
9 | program for voucher reimbursement of the cost of training | ||||||
10 | Zone residents eligible under the Targeted Jobs Tax Credit | ||||||
11 | provisions of the Internal Revenue Code for employment in | ||||||
12 | private industry. These programs shall not be designed to | ||||||
13 | subsidize businesses, but are intended to open up job and | ||||||
14 | training opportunities not otherwise available. Nothing in | ||||||
15 | this paragraph (5) shall be deemed to require Zone | ||||||
16 | businesses to utilize these programs. These programs | ||||||
17 | should be designed (i) for those individuals whose | ||||||
18 | opportunities for job-finding are minimal without program | ||||||
19 | participation, (ii) to minimize the period of benefit | ||||||
20 | collection by such individuals, and (iii) to accelerate the | ||||||
21 | transition of those individuals to unsubsidized | ||||||
22 | employment. The Department is to seek agreement with | ||||||
23 | business, organized labor and the appropriate State | ||||||
24 | Department and agencies on the design, operation and | ||||||
25 | evaluation of the test programs. | ||||||
26 | (c) A report with recommendations including representative |
| |||||||
| |||||||
1 | comments of these groups shall be submitted by the Department | ||||||
2 | to the county or municipality which designated the area as an | ||||||
3 | Energy Transition Zone, the Governor, and the General Assembly | ||||||
4 | not later than 12 months after such test programs have | ||||||
5 | commenced, or not later than 3 months following the termination | ||||||
6 | of such test programs, whichever first occurs. | ||||||
7 | Section 1-65. State incentives regarding public services | ||||||
8 | and physical infrastructure. | ||||||
9 | (a) This Act does not restrict tax incentive financing | ||||||
10 | pursuant to the Tax Increment Allocation Redevelopment Act in | ||||||
11 | the Illinois Municipal Code. | ||||||
12 | (b) The State Treasurer is authorized and encouraged to | ||||||
13 | place deposits of State funds with financial institutions doing | ||||||
14 | business in an Energy Transition Zone. | ||||||
15 | Section 1-70. Zone administration. The administration of | ||||||
16 | an Energy Transition Zone shall be under the jurisdiction of | ||||||
17 | the designating municipality. Each designating municipality | ||||||
18 | shall, by ordinance, designate a Zone Administrator for the | ||||||
19 | certified Zones within its jurisdiction. A Zone Administrator | ||||||
20 | must be an officer or employee of the municipality. The Zone | ||||||
21 | Administrator shall be the liaison between the designating | ||||||
22 | municipality, the Department, and any designated Zone | ||||||
23 | organizations within zones under his jurisdiction. |
| |||||||
| |||||||
1 | Section 1-75. Accounting. | ||||||
2 | (a) Any business receiving tax incentives due to its | ||||||
3 | location within an Energy Transition Zone must annually report | ||||||
4 | to the Department of Revenue information reasonably required by | ||||||
5 | the Department of Revenue to enable the Department to verify | ||||||
6 | and calculate the total Energy Transition Zone tax benefits for | ||||||
7 | property taxes and taxes imposed by the State that are received | ||||||
8 | by the business, broken down by incentive category and Energy | ||||||
9 | Transition Zone, if applicable. Reports are due no later than | ||||||
10 | May 31 of each year and shall cover the previous calendar year. | ||||||
11 | The first report will be for the 2018 calendar year is be due | ||||||
12 | no later than May 31, 2019. | ||||||
13 | (b) Green energy enterprises shall report their job | ||||||
14 | creation, retention, and capital investment numbers within the | ||||||
15 | Zone annually to the Department of Revenue no later than May 31 | ||||||
16 | of each calendar year. | ||||||
17 | (c) The Department of Revenue will aggregate and collect | ||||||
18 | the tax, job, and capital investment data by Energy Transition | ||||||
19 | Zone and report this information, formatted to exclude | ||||||
20 | company-specific proprietary information, to the Department | ||||||
21 | and the Board by August 1, 2019, and by August 1 of every | ||||||
22 | calendar year thereafter. The Department will include this | ||||||
23 | information in their required reports under this Act. | ||||||
24 | (d) The Department of Revenue, in its discretion, may | ||||||
25 | require that the reports filed under this Section be submitted | ||||||
26 | electronically. |
| |||||||
| |||||||
1 | (e) The Department of Revenue shall have the authority to | ||||||
2 | adopt rules as are reasonable and necessary to implement the | ||||||
3 | provisions of this Section. | ||||||
4 | Section 1-80. Zone Administrator. | ||||||
5 | (a) Each Zone Administrator shall post a copy of the | ||||||
6 | boundaries of the Energy Transition Zone on its official | ||||||
7 | Internet website and shall provide an electronic copy to the | ||||||
8 | Department. The Department shall post each copy of the | ||||||
9 | boundaries of an Energy Transition Zone that it receives from a | ||||||
10 | Zone Administrator on its official Internet website. | ||||||
11 | (b) The Zone Administrator shall collect and aggregate the | ||||||
12 | following information: | ||||||
13 | (1) the estimated cost of each building project, broken | ||||||
14 | down into labor and materials; and | ||||||
15 | (2) within 60 days after the end of the project, the | ||||||
16 | estimated cost of each building project, broken down into | ||||||
17 | labor and materials. | ||||||
18 | (c) By April 1 of each year, each Zone Administrator shall | ||||||
19 | file a copy of its fee schedule with the Department, and the | ||||||
20 | Department shall post the fee schedule on its website. Zone | ||||||
21 | Administrators shall charge no more than 0.5% of the cost of | ||||||
22 | building materials of the project associated with the specific | ||||||
23 | Energy Transition Zone, with a maximum fee of no more than | ||||||
24 | $50,000. |
| |||||||
| |||||||
1 | Section 1-85. State regulatory exemptions in Energy | ||||||
2 | Transition Zones. | ||||||
3 | (a) The Department shall conduct an ongoing review of such | ||||||
4 | agency rules as may be identified by the Department or | ||||||
5 | representatives of designating municipalities and counties as | ||||||
6 | green energy enterprises and preliminarily appearing to the | ||||||
7 | Department to: | ||||||
8 | (1) affect the conduct of business, industry and | ||||||
9 | commerce; | ||||||
10 | (2) impose excessive costs on either the creation or | ||||||
11 | conduct of such enterprises; and | ||||||
12 | (3) inhibit the development and expansions of | ||||||
13 | enterprises within Energy Transition Zones. | ||||||
14 | The Department shall conduct hearings, pursuant to public | ||||||
15 | notice, to solicit public comment on such identified rules as | ||||||
16 | part of this review process. | ||||||
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 identified pursuant to subsection (a). The | ||||||
20 | Department shall transmit a copy of the list to each agency | ||||||
21 | which has adopted rules on the list. | ||||||
22 | (c) Within 90 days of the publication of the list by the | ||||||
23 | Department, each agency which adopted rules identified therein | ||||||
24 | shall file a written report with the Department detailing for | ||||||
25 | each identified rule: | ||||||
26 | (1) the need or justification; |
| |||||||
| |||||||
1 | (2) whether the rule is mandated by State or federal | ||||||
2 | law, or is discretionary, and to what extent; | ||||||
3 | (3) a synopsis of the history of the rule, including | ||||||
4 | any internal agency review after its original adoption; and | ||||||
5 | (4) any appropriate explanation of its relationship to | ||||||
6 | other regulatory requirements. | ||||||
7 | The agency that adopted the rules shall also include any | ||||||
8 | available data, analysis and studies concerning the economic | ||||||
9 | impact of the identified rules. The agency responses shall be | ||||||
10 | public records. | ||||||
11 | (d) No later than January 1 of the following calendar year, | ||||||
12 | the Department shall file proposed rules exempting green energy | ||||||
13 | enterprises within Energy Transition Zones from those agency | ||||||
14 | rules contained in the published list, for which the Department | ||||||
15 | finds that the job creation or business development incentives | ||||||
16 | for Energy Transition Zone development engendered by the | ||||||
17 | exemption outweigh the need and justification for the rule. In | ||||||
18 | making its findings, the Department shall consider all | ||||||
19 | information, data, and opinions submitted to it by the public, | ||||||
20 | as well as by adopting agencies, as well as information | ||||||
21 | otherwise available to it. | ||||||
22 | (e) The proposed rules adopted by the Department shall be | ||||||
23 | in the form of amendments to the existing rules to be affected, | ||||||
24 | and shall be subject to the Illinois Administrative Procedure | ||||||
25 | Act. | ||||||
26 | (f) Upon its effective date, any exempting rule of the |
| |||||||
| |||||||
1 | Department shall supersede the exempted agency rule in | ||||||
2 | accordance with the terms of the exemption. Such exemptions may | ||||||
3 | apply only to green energy enterprises within Energy Transition | ||||||
4 | Zones during the effective term of the respective Zones. | ||||||
5 | Agencies may not adopt emergency rules to circumvent an | ||||||
6 | exemption effected by a Department exemption rule; any such | ||||||
7 | emergency rules shall not be effective within Energy Transition | ||||||
8 | Zones to the extent inconsistent with the terms of such an | ||||||
9 | exemption. | ||||||
10 | Section 1-90. State and local regulatory alternatives. | ||||||
11 | (a) Agencies may provide in their rules for: | ||||||
12 | (1) the exemption of green energy enterprises within | ||||||
13 | Energy Transition Zones; or | ||||||
14 | (2) modifications or alternatives specifically | ||||||
15 | applicable to green energy enterprises within Energy | ||||||
16 | Transition Zones, which impose less stringent standards or | ||||||
17 | alternative standards for compliance (including, but not | ||||||
18 | limited to, performance-based standards as a substitute | ||||||
19 | for specific mandates of methods, procedures or | ||||||
20 | equipment). | ||||||
21 | Such exemptions, modifications, or alternatives shall | ||||||
22 | become effective by rule adopted in accordance with the | ||||||
23 | Illinois Administrative Procedure Act. The Agency adopting | ||||||
24 | such exemptions, modifications or alternatives shall file with | ||||||
25 | its proposed rule its findings that the proposed rule provides |
| |||||||
| |||||||
1 | economic incentives within Energy Transition Zones which | ||||||
2 | promote the purposes of this Act, and which, to the extent they | ||||||
3 | include any exemptions or reductions in regulatory standards or | ||||||
4 | requirements, outweigh the need or justification for the | ||||||
5 | existing rule. | ||||||
6 | (b) If any agency adopts a rule pursuant to paragraph (a) | ||||||
7 | affecting a rule contained on the list published by the | ||||||
8 | Department, prior to the completion of the rulemaking process | ||||||
9 | for the Department's rules under that Section, the agency shall | ||||||
10 | immediately transmit a copy of its proposed rule to the | ||||||
11 | Department, together with a statement of reasons as to why the | ||||||
12 | Department should defer to the agency's proposed rule. Agency | ||||||
13 | rules adopted under subsection (a) shall, however, be subject | ||||||
14 | to the exemption rules adopted by the Department. | ||||||
15 | (c) Within Energy Transition Zones, the designating | ||||||
16 | municipality may modify all local ordinances and regulations | ||||||
17 | regarding (i) zoning; (ii) licensing; (iii) building codes, | ||||||
18 | excluding however, any regulations treating building defects; | ||||||
19 | (iv) rent control and price controls (except for the minimum | ||||||
20 | wage). Notwithstanding any shorter statute of limitation to the | ||||||
21 | contrary, actions against any contractor or architect who | ||||||
22 | designs, constructs or rehabilitates a building or structure in | ||||||
23 | an Energy Transition Zone in accordance with local standards | ||||||
24 | specifically applicable within Zones which have been relaxed | ||||||
25 | may be commenced within 10 years from the time of beneficial | ||||||
26 | occupancy of the building or use of the structure. |
| |||||||
| |||||||
1 | Section 1-95. Exemptions from regulatory relaxation. | ||||||
2 | Sections 1-85 and 1-90 do not apply to rules adopted pursuant | ||||||
3 | to: | ||||||
4 | (1) the Environmental Protection Act; | ||||||
5 | (2) the Illinois Historic Preservation Act; | ||||||
6 | (3) the Illinois Human Rights Act; | ||||||
7 | (4) any successor Acts to any of the foregoing; or | ||||||
8 | (5) any other Acts whose purpose is the protection of | ||||||
9 | the environment, the preservation of historic places and | ||||||
10 | landmarks, or the protection of persons against | ||||||
11 | discrimination on the basis of race, color, religion, sex, | ||||||
12 | marital status, national origin or physical or mental | ||||||
13 | disability. | ||||||
14 | (b) No exemption, modification or alternative to any agency | ||||||
15 | rule shall be effective which: | ||||||
16 | (1) presents a significant risk to the health or safety | ||||||
17 | of persons resident in or employed within an Energy | ||||||
18 | Transition Zone; | ||||||
19 | (2) would conflict with federal law such that the | ||||||
20 | State, or any unit of local government or school district, | ||||||
21 | or any area of the State other than Energy Transition | ||||||
22 | Zones, or any business enterprise located outside of an | ||||||
23 | Energy Transition Zone would be disqualified from a federal | ||||||
24 | program or from federal tax or other benefits; | ||||||
25 | (3) would suspend or modify an agency rule mandated by |
| |||||||
| |||||||
1 | law; or | ||||||
2 | (4) would eliminate or reduce benefits to individuals | ||||||
3 | who are residents of or employed within a Zone. | ||||||
4 | Section 1-100. Business notifications. Any business | ||||||
5 | located within the Energy Transition Zone which has received | ||||||
6 | tax credits or exemptions, regulatory relief or any other | ||||||
7 | benefits under this Act shall notify the Department and the | ||||||
8 | county and municipal officials in which the Energy Transition | ||||||
9 | Zone is located within 60 days of the cessation of any business | ||||||
10 | operations conducted within the Energy Transition Zone. The | ||||||
11 | Department shall adopt rules to carry out this Section. | ||||||
12 | Article 5. Energy Transition Tax Credit Act | ||||||
13 | Section 5-1. Short title. This Article may be cited as the | ||||||
14 | Energy Transition Tax Credit Act. References in this Article to | ||||||
15 | "this Act" mean this Article. | ||||||
16 | Section 5-5. Purpose. The General Assembly finds and | ||||||
17 | declares that the health, safety, and welfare of the people of | ||||||
18 | this State are dependent upon a healthy economy and vibrant | ||||||
19 | communities; that the closure of coal plants, coal mines, and | ||||||
20 | nuclear energy plants across the states are detrimental to | ||||||
21 | maintaining a healthy economy and vibrant communities; that the | ||||||
22 | expansion of green energy creates significant job growth and |
| |||||||
| |||||||
1 | contributes significantly to the health, safety, and welfare of | ||||||
2 | the people of this State; that the continual encouragement, | ||||||
3 | development, growth and expansion of green energy within the | ||||||
4 | State requires a cooperative and continuous partnership | ||||||
5 | between government and the green energy sector; and that there | ||||||
6 | are certain depressed areas in this State that have lost jobs | ||||||
7 | due to the closure of coal plants, coal mines, and nuclear | ||||||
8 | energy plants and need the particular attention of government, | ||||||
9 | labor and the citizens of Illinois to help attract green energy | ||||||
10 | investment into these areas and directly aid the local | ||||||
11 | community and its residents. Therefore, it is declared to be | ||||||
12 | the purpose of this Act, in conjunction with the Energy | ||||||
13 | Transition Zone Act, to provide green energy enterprises an | ||||||
14 | incentive to stimulate the growth of green energy in the State | ||||||
15 | and to foster job growth in areas depressed by the closure of | ||||||
16 | coal plants, coal mines, and nuclear energy plants. | ||||||
17 | Section 5-10. Definitions. As used in this Act: | ||||||
18 | "Agreement" means the Agreement between a Taxpayer and the | ||||||
19 | Department under the provisions of Section 5-55 of this Act. | ||||||
20 | "Applicant" means a Taxpayer operating a green energy | ||||||
21 | enterprise, as determined by the Energy Transition Zone Act, | ||||||
22 | located within or that the green energy enterprise plans to | ||||||
23 | locate within an Energy Transition Zone. "Applicant" does not | ||||||
24 | include a Taxpayer who closes or substantially reduces an | ||||||
25 | operation at one location in the State and relocates |
| |||||||
| |||||||
1 | substantially the same operation to a location in an Energy | ||||||
2 | Transition Zone. This does not prohibit a Taxpayer from | ||||||
3 | expanding its operations at a location in an Energy Transition | ||||||
4 | Zone, provided that existing operations of a similar nature | ||||||
5 | located within the State are not closed or substantially | ||||||
6 | reduced. This also does not prohibit a Taxpayer from moving its | ||||||
7 | operations from one location in the State to an Energy | ||||||
8 | Transition Zone for the purpose of expanding the operation | ||||||
9 | provided that the Department determines that expansion cannot | ||||||
10 | reasonably be accommodated within the municipality in which the | ||||||
11 | business is located, or in the case of a business located in an | ||||||
12 | incorporated area of the county, within the county in which the | ||||||
13 | business is located, after conferring with the chief elected | ||||||
14 | official of the municipality or county and taking into | ||||||
15 | consideration any evidence offered by the municipality or | ||||||
16 | county regarding the ability to accommodate expansion within | ||||||
17 | the municipality or county. | ||||||
18 | "Committee" means the Energy Transition Investment | ||||||
19 | Committee created under Section 5-25 of this Act within the | ||||||
20 | Illinois Economic Development Board. | ||||||
21 | "Credit" means the amount agreed to between the Department | ||||||
22 | and the Applicant under this Act, but not to exceed the lesser | ||||||
23 | of: (1) the sum of (i) 50% of the Incremental Income Tax | ||||||
24 | attributable to New Employees at the Applicant's project and | ||||||
25 | (ii) 10% of the training costs of New Employees; or (2) 100% of | ||||||
26 | the Incremental Income Tax attributable to New Employees at the |
| |||||||
| |||||||
1 | Applicant's project. However, if the project is located in an | ||||||
2 | underserved area, then the amount of the Credit may not exceed | ||||||
3 | the lesser of: (1) the sum of (i) 75% of the Incremental Income | ||||||
4 | Tax attributable to New Employees at the Applicant's project | ||||||
5 | and (ii) 10% of the training costs of New Employees; or (2) | ||||||
6 | 100% of the Incremental Income Tax attributable to New | ||||||
7 | Employees at the Applicant's project. If an Applicant agrees to | ||||||
8 | hire the required number of New Employees, then the maximum | ||||||
9 | amount of the Credit for that Applicant may be increased by an | ||||||
10 | amount not to exceed 25% of the Incremental Income Tax | ||||||
11 | attributable to retained employees at the Applicant's project; | ||||||
12 | provided that, in order to receive the increase for retained | ||||||
13 | employees, the Applicant must provide the additional evidence | ||||||
14 | required under paragraph (3) of subsection (b) of Section 5-30. | ||||||
15 | "Department" means the Department of Commerce and Economic | ||||||
16 | Opportunity. | ||||||
17 | "Director" means the Director of the Department of Commerce | ||||||
18 | and Economic Opportunity. | ||||||
19 | "Full-time Employee" means an individual who is employed | ||||||
20 | for consideration for at least 35 hours each week or who | ||||||
21 | renders any other standard of service generally accepted by | ||||||
22 | industry custom or practice as full-time employment. An | ||||||
23 | individual for whom a W-2 is issued by a Professional Employer | ||||||
24 | Organization (PEO) is a full-time employee if employed in the | ||||||
25 | service of the Applicant for consideration for at least 35 | ||||||
26 | hours each week or who renders any other standard of service |
| |||||||
| |||||||
1 | generally accepted by industry custom or practice as full-time | ||||||
2 | employment to Applicant. | ||||||
3 | "Green energy" means solar energy, wind energy, water | ||||||
4 | energy, geothermal energy, bioenergy, or hydrogen fuel and | ||||||
5 | cells. | ||||||
6 | "Green energy production facility" means a facility owned | ||||||
7 | by a green energy enterprise (as defined in the Illinois Energy | ||||||
8 | Transition Zone Act) that is used in the production of solar | ||||||
9 | energy, wind energy, water energy, geothermal energy, | ||||||
10 | bioenergy, or hydrogen fuel and cells."Incremental Income Tax" | ||||||
11 | means the total amount withheld during the taxable year from | ||||||
12 | the compensation of New Employees and, if applicable, retained | ||||||
13 | employees under Article 7 of the Illinois Income Tax Act | ||||||
14 | arising from employment at a project that is the subject of an | ||||||
15 | Agreement. | ||||||
16 | "New Employee" means a full-time employee first employed by | ||||||
17 | a taxpayer in the project that is the subject of an agreement | ||||||
18 | and who is hired after the taxpayer enters into the agreement. | ||||||
19 | The term "New Employee" does not include: | ||||||
20 | (1) an employee of the Taxpayer who performs a job that | ||||||
21 | was previously performed by another employee, if that job | ||||||
22 | existed for at least 6 months before hiring the employee; | ||||||
23 | (2) an employee of the Taxpayer who was previously | ||||||
24 | employed in Illinois by a Related Member of the Taxpayer | ||||||
25 | and whose employment was shifted to the Taxpayer after the | ||||||
26 | Taxpayer entered into the Agreement; or |
| |||||||
| |||||||
1 | (3) a child, grandchild, parent, or spouse, other than | ||||||
2 | a spouse who is legally separated from the individual, of | ||||||
3 | any individual who has a direct or an indirect ownership | ||||||
4 | interest of at least 5% in the profits, capital, or value | ||||||
5 | of the taxpayer. | ||||||
6 | Notwithstanding any other provisions of this Section, an | ||||||
7 | employee may be considered a New Employee under the Agreement | ||||||
8 | if the employee performs a job that was previously performed by | ||||||
9 | an employee who was: | ||||||
10 | (1) treated under the Agreement as a New Employee; and | ||||||
11 | (2) promoted by the Taxpayer to another job. | ||||||
12 | Notwithstanding any other provisions of this Section, the | ||||||
13 | Department may award a Credit to an Applicant with respect to | ||||||
14 | an employee hired prior to the date of the Agreement if: | ||||||
15 | (1) the Applicant is in receipt of a letter from the | ||||||
16 | Department stating an intent to enter into a credit | ||||||
17 | Agreement; | ||||||
18 | (2) the letter described in paragraph (1) is issued by | ||||||
19 | the Department not later than 15 days after the effective | ||||||
20 | date of this Act; and | ||||||
21 | (3) the employee was hired after the date the letter | ||||||
22 | described in paragraph (1) was issued. | ||||||
23 | "Noncompliance Date" means, in the case of a Taxpayer that | ||||||
24 | is not complying with the requirements of the Agreement or the | ||||||
25 | provisions of this Act, the day following the last date upon | ||||||
26 | which the Taxpayer was in compliance with the requirements of |
| |||||||
| |||||||
1 | the Agreement and the provisions of this Act, as determined by | ||||||
2 | the Director, pursuant to Section 5-75. | ||||||
3 | "Pass Through Entity" means an entity that is exempt from | ||||||
4 | the tax under subsection (b) or (c) of Section 205 of the | ||||||
5 | Illinois Income Tax Act. | ||||||
6 | "Related Member" means a person that, with respect to the | ||||||
7 | Taxpayer during any portion of the taxable year, is any one of | ||||||
8 | the following: | ||||||
9 | (1) An individual stockholder, if the stockholder and | ||||||
10 | the members of the stockholder's family (as defined in | ||||||
11 | Section 318 of the Internal Revenue Code) own directly, | ||||||
12 | indirectly, beneficially, or constructively, in the | ||||||
13 | aggregate, at least 50% of the value of the Taxpayer's | ||||||
14 | outstanding stock. | ||||||
15 | (2) A partnership, estate, or trust and any partner or | ||||||
16 | beneficiary, if the partnership, estate, or trust, and its | ||||||
17 | partners or beneficiaries own directly, indirectly, | ||||||
18 | beneficially, or constructively, in the aggregate, at | ||||||
19 | least 50% of the profits, capital, stock, or value of the | ||||||
20 | Taxpayer. | ||||||
21 | (3) A corporation, and any party related to the | ||||||
22 | corporation in a manner that would require an attribution | ||||||
23 | of stock from the corporation to the party or from the | ||||||
24 | party to the corporation under the attribution rules of | ||||||
25 | Section 318 of the Internal Revenue Code, if the Taxpayer | ||||||
26 | owns directly, indirectly, beneficially, or constructively |
| |||||||
| |||||||
1 | at least 50% of the value of the corporation's outstanding | ||||||
2 | stock. | ||||||
3 | (4) A corporation and any party related to that | ||||||
4 | corporation in a manner that would require an attribution | ||||||
5 | of stock from the corporation to the party or from the | ||||||
6 | party to the corporation under the attribution rules of | ||||||
7 | Section 318 of the Internal Revenue Code, if the | ||||||
8 | corporation and all such related parties own in the | ||||||
9 | aggregate at least 50% of the profits, capital, stock, or | ||||||
10 | value of the Taxpayer. | ||||||
11 | (5) A person to or from whom there is attribution of | ||||||
12 | stock ownership in accordance with Section 1563(e) of the | ||||||
13 | Internal Revenue Code, except, for purposes of determining | ||||||
14 | whether a person is a Related Member under this paragraph, | ||||||
15 | 20% shall be substituted for 5% wherever 5% appears in | ||||||
16 | Section 1563(e) of the Internal Revenue Code. | ||||||
17 | "Taxpayer" means an individual, corporation, partnership, | ||||||
18 | or other entity that has any Illinois income tax liability. | ||||||
19 | "Underserved area" means a geographic area that meets one | ||||||
20 | or more of the following conditions: | ||||||
21 | (1) the area has a poverty rate of at least 20% | ||||||
22 | according to the latest federal decennial census; | ||||||
23 | (2) 75% or more of the children in the area participate | ||||||
24 | in the federal free lunch program according to reported | ||||||
25 | statistics from the State Board of Education; | ||||||
26 | (3) at least 20% of the households in the area receive |
| |||||||
| |||||||
1 | assistance under the Supplemental Nutrition Assistance | ||||||
2 | Program (SNAP); or | ||||||
3 | (4) the area has an average unemployment rate, as | ||||||
4 | determined by the Illinois Department of Employment | ||||||
5 | Security, that is more than 120% of the national | ||||||
6 | unemployment average, as determined by the U.S. Department | ||||||
7 | of Labor, for a period of at least 2 consecutive calendar | ||||||
8 | years preceding the date of the application. | ||||||
9 | Section 5-15. Powers of the Department. The Department, in | ||||||
10 | addition to those powers granted under the Civil Administrative | ||||||
11 | Code of Illinois, is granted and shall have all the powers | ||||||
12 | necessary or convenient to carry out and effectuate the | ||||||
13 | purposes and provisions of this Act, including, but not limited | ||||||
14 | to, power and authority to: | ||||||
15 | (1) Adopt rules deemed necessary and appropriate for | ||||||
16 | the administration of the programs; establish forms for | ||||||
17 | applications, notifications, contracts, or any other | ||||||
18 | agreements; and accept applications at any time during the | ||||||
19 | year. | ||||||
20 | (2) Provide and assist Taxpayers pursuant to the | ||||||
21 | provisions of this Act, and cooperate with Taxpayers that | ||||||
22 | are parties to Agreements to promote, foster, and support | ||||||
23 | economic development, capital investment, and job creation | ||||||
24 | or retention within the Energy Transition Zone. | ||||||
25 | (c) Enter into agreements and memoranda of |
| |||||||
| |||||||
1 | understanding for participation of and engage in | ||||||
2 | cooperation with agencies of the federal government, local | ||||||
3 | units of government, universities, research foundations or | ||||||
4 | institutions, regional economic development corporations, | ||||||
5 | or other organizations for the purposes of this Act. | ||||||
6 | (4) Gather information and conduct inquiries, in the | ||||||
7 | manner and by the methods as it deems desirable, including | ||||||
8 | without limitation, gathering information with respect to | ||||||
9 | Applicants for the purpose of making any designations or | ||||||
10 | certifications necessary or desirable or to gather | ||||||
11 | information to assist the Committee with any | ||||||
12 | recommendation or guidance in the furtherance of the | ||||||
13 | purposes of this Act. | ||||||
14 | (5) Establish, negotiate and effectuate any term, | ||||||
15 | agreement or other document with any person, necessary or | ||||||
16 | appropriate to accomplish the purposes of this Act; and to | ||||||
17 | consent, subject to the provisions of any Agreement with | ||||||
18 | another party, to the modification or restructuring of any | ||||||
19 | Agreement to which the Department is a party. | ||||||
20 | (6) Fix, determine, charge, and collect any premiums, | ||||||
21 | fees, charges, costs, and expenses from Applicants, | ||||||
22 | including, without limitation, any application fees, | ||||||
23 | commitment fees, program fees, financing charges, or | ||||||
24 | publication fees as deemed appropriate to pay expenses | ||||||
25 | necessary or incident to the administration, staffing, or | ||||||
26 | operation in connection with the Department's or |
| |||||||
| |||||||
1 | Committee's activities under this Act, or for preparation, | ||||||
2 | implementation, and enforcement of the terms of the | ||||||
3 | Agreement, or for consultation, advisory and legal fees, | ||||||
4 | and other costs; however, all fees and expenses incident | ||||||
5 | thereto shall be the responsibility of the Applicant. | ||||||
6 | (7) Provide for sufficient personnel to permit | ||||||
7 | administration, staffing, operation, and related support | ||||||
8 | required to adequately discharge its duties and | ||||||
9 | responsibilities described in this Act from funds made | ||||||
10 | available through charges to Applicants or from funds as | ||||||
11 | may be appropriated by the General Assembly for the | ||||||
12 | administration of this Act. | ||||||
13 | (8) Require Applicants, upon written request, to issue | ||||||
14 | any necessary authorization to the appropriate federal, | ||||||
15 | state, or local authority for the release of information | ||||||
16 | concerning a project being considered under the provisions | ||||||
17 | of this Act, with the information requested to include, but | ||||||
18 | not be limited to, financial reports, returns, or records | ||||||
19 | relating to the Taxpayer or its project. | ||||||
20 | (9) Require that a Taxpayer shall at all times keep | ||||||
21 | proper books of record and account in accordance with | ||||||
22 | generally accepted accounting principles consistently | ||||||
23 | applied, with the books, records, or papers related to the | ||||||
24 | Agreement in the custody or control of the Taxpayer open | ||||||
25 | for reasonable Department inspection and audits, and | ||||||
26 | including, without limitation, the making of copies of the |
| |||||||
| |||||||
1 | books, records, or papers, and the inspection or appraisal | ||||||
2 | of any of the Taxpayer or project assets. | ||||||
3 | (10) Take whatever actions are necessary or | ||||||
4 | appropriate to protect the State's interest in the event of | ||||||
5 | bankruptcy, default, foreclosure, or noncompliance with | ||||||
6 | the terms and conditions of financial assistance or | ||||||
7 | participation required under this Act, including the power | ||||||
8 | to sell, dispose, lease, or rent, upon terms and conditions | ||||||
9 | determined by the Director to be appropriate, real or | ||||||
10 | personal property that the Department may receive as a | ||||||
11 | result of these actions. | ||||||
12 | Section 5-20. Tax credit awards. | ||||||
13 | (a) Subject to the conditions set forth in this Act, a | ||||||
14 | Taxpayer is entitled to a Credit against or, as described in | ||||||
15 | subsection (f) of this Section, a payment towards taxes imposed | ||||||
16 | pursuant to subsections (a) and (b) of Section 201 of the | ||||||
17 | Illinois Income Tax Act that may be imposed on the Taxpayer for | ||||||
18 | a taxable year beginning on or after January 1, 2019, if the | ||||||
19 | Taxpayer is awarded a Credit by the Department under this Act | ||||||
20 | for that taxable year. | ||||||
21 | The Department shall make Credit awards under this Act to | ||||||
22 | foster job creation and the development of green energy in | ||||||
23 | Energy Transition Zones. | ||||||
24 | (b) A person that proposes a project to create new jobs and | ||||||
25 | to invest in the development of a green energy production |
| |||||||
| |||||||
1 | facility in an Energy Transition Zone must enter into an | ||||||
2 | Agreement with the Department for the Credit under this Act | ||||||
3 | (c) The Credit shall be claimed for the taxable years | ||||||
4 | specified in the Agreement. | ||||||
5 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
6 | attributable to the project that is the subject of the | ||||||
7 | Agreement. | ||||||
8 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
9 | Applicant that uses a PEO if all other award criteria are | ||||||
10 | satisfied. | ||||||
11 | (f) A pass-through entity that has been awarded a credit | ||||||
12 | under this Act, its shareholders, or its partners may treat | ||||||
13 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
14 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
15 | "tax payment" means a payment as described in Article 6 or | ||||||
16 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
17 | made by a pass-through entity on behalf of any of its | ||||||
18 | shareholders or partners to satisfy such shareholders' or | ||||||
19 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
20 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
21 | the amount of the award credited pursuant to this Act exceed | ||||||
22 | the Illinois income tax liability of the pass-through entity or | ||||||
23 | its shareholders or partners for the taxable year. | ||||||
24 | Section 5-25. Application for a project to create and | ||||||
25 | retain new jobs and to develop green energy. |
| |||||||
| |||||||
1 | (a) Any green energy enterprise proposing a project to | ||||||
2 | build a green energy production facility located or planned to | ||||||
3 | be located in an Energy Transition Zone may request | ||||||
4 | consideration for designation of its project, by formal written | ||||||
5 | letter of request or by formal application to the Department, | ||||||
6 | in which the Applicant states its intent to make at least a | ||||||
7 | specified level of investment and intends to hire or retain a | ||||||
8 | specified number of full-time employees at a designated | ||||||
9 | location in Illinois. As circumstances require, the Department | ||||||
10 | may require a formal application from an Applicant and a formal | ||||||
11 | letter of request for assistance. | ||||||
12 | (b) In order to qualify for Credits under this Act, an | ||||||
13 | Applicant's project must: | ||||||
14 | (1) be for the purpose of producing green energy; | ||||||
15 | (2) if the Applicant has more than 100 employees, | ||||||
16 | involve an investment of at least $2,500,000 in capital | ||||||
17 | improvements to be placed in service within an Energy | ||||||
18 | Transition Zone as a direct result of the project; if the | ||||||
19 | Applicant has 100 or fewer employees, then there is no | ||||||
20 | capital investment requirement; and | ||||||
21 | (3) if the Applicant has more than 100 employees, | ||||||
22 | employ a number of new employees in the Energy Transition | ||||||
23 | Zone equal to the lesser of (A) 10% of the number of | ||||||
24 | full-time employees employed by the applicant world-wide | ||||||
25 | on the date the application is filed with the Department or | ||||||
26 | (B) 50 New Employees; and, if the Applicant has 100 or |
| |||||||
| |||||||
1 | fewer employees, employ a number of new employees in the | ||||||
2 | State equal to the lesser of (A) 5% of the number of | ||||||
3 | full-time employees employed by the applicant world-wide | ||||||
4 | on the date the application is filed with the Department or | ||||||
5 | (B) 50 New Employees; | ||||||
6 | (c) After receipt of an application, the Department may | ||||||
7 | enter into an Agreement with the Applicant if the application | ||||||
8 | is accepted in accordance with Section 5-25. | ||||||
9 | Section 5-30. Review of application. | ||||||
10 | (a) In addition to those duties granted under the Illinois | ||||||
11 | Economic Development Board Act, the Illinois Economic | ||||||
12 | Development Board shall form an Energy Transition Investment | ||||||
13 | Committee for the purpose of making recommendations for | ||||||
14 | applications. At the request of the Board, the Director of | ||||||
15 | Commerce and Economic Opportunity or his or her designee, the | ||||||
16 | Director of the Governor's Office of Management and Budget or | ||||||
17 | his or her designee, the Director of Revenue or his or her | ||||||
18 | designee, the Director of Employment Security or his or her | ||||||
19 | designee, and an elected official of the affected locality, | ||||||
20 | such as the chair of the county board or the mayor, may serve | ||||||
21 | as members of the Committee to assist with its analysis and | ||||||
22 | deliberations. | ||||||
23 | (b) At the Department's request, the Committee shall | ||||||
24 | convene, make inquiries, and conduct studies in the manner and | ||||||
25 | by the methods as it deems desirable, review information with |
| |||||||
| |||||||
1 | respect to Applicants, and make recommendations for projects to | ||||||
2 | benefit an Energy Transition Zone. In making its recommendation | ||||||
3 | that an Applicant's application for Credit should or should not | ||||||
4 | be accepted, which shall occur within a reasonable time frame | ||||||
5 | as determined by the nature of the application, the Committee | ||||||
6 | shall determine that all the following conditions exist: | ||||||
7 | (1) The Applicant's project intends, as required by | ||||||
8 | subsection (b) of Section 5 to make the required investment | ||||||
9 | in the Energy Transition Zone and intends to hire the | ||||||
10 | required number of New Employees in the Energy Transition | ||||||
11 | Zone as a result of that project. | ||||||
12 | (2) The Applicant's project is economically sound and | ||||||
13 | will benefit the people of the Energy Transition Zone by | ||||||
14 | increasing opportunities for employment and engaging in | ||||||
15 | the development of green energy. | ||||||
16 | (3) That, if not for the Credit, the project would not | ||||||
17 | occur in Illinois, which may be demonstrated by evidence | ||||||
18 | that receipt of the Credit is essential to the Applicant's | ||||||
19 | decision to create new jobs in the State, such as the | ||||||
20 | magnitude of the cost differential between Illinois and a | ||||||
21 | competing State; in addition, if the Applicant is seeking | ||||||
22 | an increase in the maximum amount of the Credit for | ||||||
23 | retained employees, the Applicant must provide evidence | ||||||
24 | the Applicant has multi-state location options and could | ||||||
25 | reasonably and efficiently locate outside of the State or | ||||||
26 | demonstrate that at least one other state is being |
| |||||||
| |||||||
1 | considered for the project. | ||||||
2 | (4) A cost differential is identified, using best | ||||||
3 | available data, in the projected costs for the Applicant's | ||||||
4 | project compared to the costs in the competing state, | ||||||
5 | including the impact of the competing state's incentive | ||||||
6 | programs. The competing state's incentive programs shall | ||||||
7 | include state, local, private, and federal funds | ||||||
8 | available. | ||||||
9 | (5) The political subdivisions affected by the project | ||||||
10 | have committed local incentives with respect to the | ||||||
11 | project, considering local ability to assist. | ||||||
12 | (6) Awarding the Credit will result in an overall | ||||||
13 | positive fiscal impact to the State, as certified by the | ||||||
14 | Committee using the best available data. | ||||||
15 | (7) The Credit is not prohibited by Section 5-45 of | ||||||
16 | this Act. | ||||||
17 | Section 5-35. Limitation to amount of costs of specified | ||||||
18 | items. The total amount of the Credit allowed during all tax | ||||||
19 | years may not exceed the aggregate amount of costs incurred by | ||||||
20 | the Taxpayer during all prior tax years for the following | ||||||
21 | items, to the extent provided in the Agreement: | ||||||
22 | (1) capital investment, including, but not limited to, | ||||||
23 | equipment, buildings, or land; | ||||||
24 | (2) infrastructure development; | ||||||
25 | (3) debt service, except refinancing of current debt; |
| |||||||
| |||||||
1 | (4) research and development; | ||||||
2 | (5) job training and education; | ||||||
3 | (6) lease costs; or | ||||||
4 | (7) relocation costs. | ||||||
5 | Section 5-40. Relocation of jobs to Energy Transition Zone. | ||||||
6 | A taxpayer is not entitled to claim the credit provided by this | ||||||
7 | Act with respect to any jobs that the taxpayer relocates from | ||||||
8 | one site in Illinois to another site in an Energy Transition | ||||||
9 | Zone. A taxpayer with respect to a qualifying project certified | ||||||
10 | under the Corporate Headquarters Relocation Act, however, is | ||||||
11 | not subject to the requirements of this Section but is | ||||||
12 | nevertheless considered an applicant for purposes of this Act. | ||||||
13 | Moreover, any full-time employee of an eligible green energy | ||||||
14 | enterprise relocated to an Energy Transition Zone in connection | ||||||
15 | with that qualifying project is deemed to be a new employee for | ||||||
16 | purposes of this Act. Determinations under this Section shall | ||||||
17 | be made by the Department. | ||||||
18 | Section 5-45. Determination of amount of the Credit. In | ||||||
19 | determining the amount of the Credit that should be awarded, | ||||||
20 | the Committee shall provide guidance on, and the Department | ||||||
21 | shall take into consideration, all of the following factors: | ||||||
22 | (1) The number and location of jobs created and | ||||||
23 | retained in relation to the economy of the Energy | ||||||
24 | Transition Zone where the projected investment is to occur. |
| |||||||
| |||||||
1 | (2) The potential impact on the economy of the Energy | ||||||
2 | Transition Zone. | ||||||
3 | (3) The advancement of green energy in the Energy | ||||||
4 | Transition Zone. | ||||||
5 | (4) The incremental payroll attributable to the | ||||||
6 | project. | ||||||
7 | (5) The capital investment attributable to the | ||||||
8 | project. | ||||||
9 | (6) The amount of the average wage and benefits paid by | ||||||
10 | the Applicant in relation to the wage and benefits of the | ||||||
11 | Energy Transition Zone. | ||||||
12 | (7) The costs to Illinois and the affected political | ||||||
13 | subdivisions with respect to the project. | ||||||
14 | (8) The financial assistance that is otherwise | ||||||
15 | provided by Illinois and the affected political | ||||||
16 | subdivisions. | ||||||
17 | Section 5-50. Amount and curation of credit. | ||||||
18 | (a) The Department shall determine the amount and duration | ||||||
19 | of the credit awarded under this Act. The duration of the | ||||||
20 | credit may not exceed 10 taxable years. The credit may be | ||||||
21 | stated as a percentage of the Incremental Income Tax | ||||||
22 | attributable to the applicant's project and may include a fixed | ||||||
23 | dollar limitation. An Agreement for the credit must be | ||||||
24 | finalized and signed by all parties while the area in which the | ||||||
25 | project is located is designated an Energy Transition Zone. The |
| |||||||
| |||||||
1 | credit may last longer than the applicable Energy Transition | ||||||
2 | Zone designation. Agreements entered into prior to the | ||||||
3 | de-designation of an Energy Transition Zone will be honored for | ||||||
4 | the length of the Agreement. | ||||||
5 | (b) Notwithstanding subsection (a), and except as the | ||||||
6 | credit may be applied in a carryover year pursuant to Section | ||||||
7 | 211.1 (4) of the Illinois Income Tax Act, the credit may be | ||||||
8 | applied against the State income tax liability in more than 10 | ||||||
9 | taxable years but not in more than 15 taxable years for an | ||||||
10 | eligible green energy enterprise that (i) qualifies under this | ||||||
11 | Act and the Corporate Headquarters Relocation Act and has in | ||||||
12 | fact undertaken a qualifying project within the time frame | ||||||
13 | specified by the Department of Commerce and Economic | ||||||
14 | Opportunity under that Act, and (ii) applies against its State | ||||||
15 | income tax liability, during the entire 15-year period, no more | ||||||
16 | than 60% of the maximum credit per year that would otherwise be | ||||||
17 | available under this Act. | ||||||
18 | Section 5-55. Contents of Agreements with Applicants. The | ||||||
19 | Department shall enter into an Agreement with an Applicant that | ||||||
20 | is awarded a Credit under this Act. The Agreement must include | ||||||
21 | all of the following: | ||||||
22 | (1) A detailed description of the project that is the | ||||||
23 | subject of the Agreement, including the location and amount | ||||||
24 | of the investment and jobs created or retained. | ||||||
25 | (2) The duration of the Credit and the first taxable |
| |||||||
| |||||||
1 | year for which the Credit may be claimed. | ||||||
2 | (3) The Credit amount that will be allowed for each | ||||||
3 | taxable year. | ||||||
4 | (4) A requirement that the Taxpayer shall maintain | ||||||
5 | operations at the project location that shall be stated as | ||||||
6 | a minimum number of years not to exceed 10. | ||||||
7 | (5) A specific method for determining the number of New | ||||||
8 | Employees employed during a taxable year. | ||||||
9 | (6) A requirement that the Taxpayer shall annually | ||||||
10 | report to the Department the number of New Employees, the | ||||||
11 | Incremental Income Tax withheld in connection with the New | ||||||
12 | Employees, and any other information the Director needs to | ||||||
13 | perform the Director's duties under this Act. | ||||||
14 | (7) A requirement that the Director is authorized to | ||||||
15 | verify with the appropriate State agencies the amounts | ||||||
16 | reported under paragraph (6), and after doing so shall | ||||||
17 | issue a certificate to the Taxpayer stating that the | ||||||
18 | amounts have been verified. | ||||||
19 | (8) A requirement that the Taxpayer shall provide | ||||||
20 | written notification to the Director not more than 30 days | ||||||
21 | after the Taxpayer makes or receives a proposal that would | ||||||
22 | transfer the Taxpayer's State tax liability obligations to | ||||||
23 | a successor Taxpayer. | ||||||
24 | (9) A detailed description of the number of New | ||||||
25 | Employees to be hired, and the occupation and payroll of | ||||||
26 | the full-time jobs to be created or retained as a result of |
| |||||||
| |||||||
1 | the project. | ||||||
2 | (10) The minimum investment the green energy | ||||||
3 | enterprise will make in capital improvements, the time | ||||||
4 | period for placing the property in service, and the | ||||||
5 | designated green energy production of the project. | ||||||
6 | (11) A requirement that the Taxpayer shall provide | ||||||
7 | written notification to the Director and the Committee not | ||||||
8 | more than 30 days after the Taxpayer determines that the | ||||||
9 | minimum job creation or retention, employment payroll, or | ||||||
10 | investment no longer is being or will be achieved or | ||||||
11 | maintained as set forth in the terms and conditions of the | ||||||
12 | Agreement. | ||||||
13 | (12) A provision that, if the total number of New | ||||||
14 | Employees falls below a specified level, the allowance of | ||||||
15 | Credit shall be suspended until the number of New Employees | ||||||
16 | equals or exceeds the Agreement amount. | ||||||
17 | (13) A detailed description of the items for which the | ||||||
18 | costs incurred by the Taxpayer will be included in the | ||||||
19 | limitation on the Credit provided in Section 5-40. | ||||||
20 | (14) A provision that, if the Taxpayer never meets | ||||||
21 | either the investment or job creation and retention | ||||||
22 | requirements specified in the Agreement during the entire | ||||||
23 | 5-year period beginning on the first day of the first | ||||||
24 | taxable year in which the Agreement is executed and ending | ||||||
25 | on the last day of the fifth taxable year after the | ||||||
26 | Agreement is executed, then the Agreement is automatically |
| |||||||
| |||||||
1 | terminated on the last day of the fifth taxable year after | ||||||
2 | the Agreement is executed and the Taxpayer is not entitled | ||||||
3 | to the award of any credits for any of that 5-year period. | ||||||
4 | (15) A provision specifying that, if the Taxpayer | ||||||
5 | ceases principal operations with the intent to shut down | ||||||
6 | the project in the Energy Transition Zone permanently | ||||||
7 | during the term of the Agreement, then the entire credit | ||||||
8 | amount awarded to the Taxpayer prior to the date the | ||||||
9 | Taxpayer ceases principal operations shall be returned to | ||||||
10 | the Department. | ||||||
11 | (16) Any other performance conditions or contract | ||||||
12 | provisions as the Department determines are appropriate. | ||||||
13 | The Department shall post on its website the terms of each | ||||||
14 | Agreement entered into under this Act. Such information | ||||||
15 | shall be posted within 10 days after entering into the | ||||||
16 | Agreement and must include the following: | ||||||
17 | (A) the name of the recipient business; | ||||||
18 | (B) the location of the project; | ||||||
19 | (C) the estimated value of the credit; | ||||||
20 | (C) the number of new jobs and, if applicable, | ||||||
21 | retained jobs pledged as a result of the project; and | ||||||
22 | (E) whether or not the project is located in an | ||||||
23 | underserved area. | ||||||
24 | Section 5-60. Certificate of verification; submission to | ||||||
25 | the Department of Revenue. A Taxpayer claiming a Credit under |
| |||||||
| |||||||
1 | this Act shall submit to the Department of Revenue a copy of | ||||||
2 | the Director's certificate of verification under this Act for | ||||||
3 | the taxable year. However, failure to submit a copy of the | ||||||
4 | certificate with the Taxpayer's tax return shall not invalidate | ||||||
5 | a claim for a Credit. | ||||||
6 | For a Taxpayer to be eligible for a certificate of | ||||||
7 | verification, the Taxpayer shall provide proof as required by | ||||||
8 | the Department prior to the end of each calendar year, | ||||||
9 | including, but not limited to, attestation by the Taxpayer | ||||||
10 | that: | ||||||
11 | (1) The project has substantially achieved the level of | ||||||
12 | new full-time jobs in the Energy Transition Zone, as | ||||||
13 | specified in its Agreement. | ||||||
14 | (2) The project has substantially achieved the level of | ||||||
15 | annual payroll in the Energy Transition Zone, as specified | ||||||
16 | in its Agreement. | ||||||
17 | (3) The project has substantially achieved the level of | ||||||
18 | capital investment in the Energy Transition Zone, as | ||||||
19 | specified in its Agreement; | ||||||
20 | (4) The project has assisted in the development of | ||||||
21 | green energy production in the Energy Transition Zone, as | ||||||
22 | specified in its Agreement. | ||||||
23 | Section 5-65. Supplier diversity. Each taxpayer claiming a | ||||||
24 | credit under this Act shall, no later than April 15 of each | ||||||
25 | taxable year for which the taxpayer claims a credit under this |
| |||||||
| |||||||
1 | Act, submit to the Department of Commerce and Economic | ||||||
2 | Opportunity an annual report containing the information | ||||||
3 | described in subsections (b), (c), (d), and (e) of Section | ||||||
4 | 5-117 of the Public Utilities Act. Those reports shall be | ||||||
5 | submitted in the form and manner required by the Department of | ||||||
6 | Commerce and Economic Opportunity. | ||||||
7 | Section 5-70. Pass through entity. The shareholders or | ||||||
8 | partners of a Taxpayer that is a Pass Through Entity shall be | ||||||
9 | entitled to the Credit allowed under the Agreement. | ||||||
10 | The Credit provided under subsection (a) is in addition to | ||||||
11 | any Credit to which a shareholder or partner is otherwise | ||||||
12 | entitled under a separate Agreement under this Act. A Pass | ||||||
13 | Through Entity and a shareholder or partner of the Pass Through | ||||||
14 | Entity may not claim more than one Credit under the same | ||||||
15 | Agreement. | ||||||
16 | Section 5-75. Noncompliance; notice; assessment. If the | ||||||
17 | Director determines that a Taxpayer who has received a Credit | ||||||
18 | under this Act is not complying with the requirements of the | ||||||
19 | Agreement or all of the provisions of this Act, the Director | ||||||
20 | shall provide notice to the Taxpayer of the alleged | ||||||
21 | noncompliance, and allow the Taxpayer a hearing under the | ||||||
22 | provisions of the Illinois Administrative Procedure Act. If, | ||||||
23 | after such notice and any hearing, the Director determines that | ||||||
24 | a noncompliance exists, the Director shall issue to the |
| |||||||
| |||||||
1 | Department of Revenue notice to that effect, stating the | ||||||
2 | Noncompliance Date. If, during the term of an Agreement, the | ||||||
3 | Taxpayer ceases operations at a project location that is the | ||||||
4 | subject of that Agreement with the intent to terminate | ||||||
5 | operations in the Energy Transition Zone, the Department and | ||||||
6 | the Department of Revenue shall recapture from the Taxpayer the | ||||||
7 | entire Credit amount awarded under that Agreement prior to the | ||||||
8 | date the taxpayer ceases operations. The Department shall, | ||||||
9 | subject to appropriation, reallocate the recaptured amounts to | ||||||
10 | the local workforce investment area in which the project was | ||||||
11 | located for the purposes of workforce development, expanded | ||||||
12 | opportunities for unemployed persons, and expanded | ||||||
13 | opportunities for women and minorities in the workforce. | ||||||
14 | Section 5-80. Annual report. On or before July 1 each year, | ||||||
15 | the Committee shall submit a report to the Department on the | ||||||
16 | tax credit program under this Act to the Governor and the | ||||||
17 | General Assembly. The report shall include information on the | ||||||
18 | number of Agreements that were entered into under this Act | ||||||
19 | during the preceding calendar year, a description of the | ||||||
20 | project that is the subject of each Agreement, an update on the | ||||||
21 | status of projects under Agreements entered into before the | ||||||
22 | preceding calendar year, and the sum of the Credits awarded | ||||||
23 | under this Act. A copy of the report shall be delivered to the | ||||||
24 | Governor and to each member of the General Assembly. | ||||||
25 | The report must include, for each Agreement: |
| |||||||
| |||||||
1 | (1) the original estimates of the value of the Credit | ||||||
2 | and the number of new jobs to be created and, if | ||||||
3 | applicable, the number of retained jobs; | ||||||
4 | (2) any relevant modifications to existing Agreements; | ||||||
5 | (3) a statement of the progress made by each Taxpayer | ||||||
6 | in meeting the terms of the original Agreement; | ||||||
7 | (4) a statement of wages paid to New Employees and, if | ||||||
8 | applicable, retained employees in the State; | ||||||
9 | (5) any information reported under Section 5-65 of this | ||||||
10 | Act; and | ||||||
11 | (6) a copy of the original Agreement. | ||||||
12 | Section 5-85. Evaluation of tax credit program. On a | ||||||
13 | biennial basis, the Department shall evaluate the tax credit | ||||||
14 | program. The evaluation shall include an assessment of the | ||||||
15 | effectiveness of the program in creating new jobs in Illinois | ||||||
16 | and of the revenue impact of the program, and may include a | ||||||
17 | review of the practices and experiences of other states with | ||||||
18 | similar programs. The Director shall submit a report on the | ||||||
19 | evaluation to the Governor and the General Assembly after June | ||||||
20 | 30 and before November 1 in each odd-numbered year. | ||||||
21 | Section 5-90. Adoption of rules. The Department may adopt | ||||||
22 | rules necessary to implement this Act. The rules may provide | ||||||
23 | for recipients of Credits under this Act to be charged fees to | ||||||
24 | cover administrative costs of the tax credit program. Fees |
| |||||||
| |||||||
1 | collected shall be deposited into the Energy Transition Fund. | ||||||
2 | Section 5-95. The Energy Transition Fund. | ||||||
3 | (a) The Energy Transition Fund is established as a special | ||||||
4 | fund within the State treasury to be used exclusively for the | ||||||
5 | purposes of this Act, including paying for the costs of | ||||||
6 | administering this Act. The Fund shall be administered by the | ||||||
7 | Department. | ||||||
8 | (b) The Fund consists of collected fees, appropriations | ||||||
9 | from the General Assembly, and gifts and grants to the Fund. | ||||||
10 | (c) The State Treasurer shall invest the money in the Fund | ||||||
11 | not currently needed to meet the obligations of the Fund in the | ||||||
12 | same manner as other public funds may be invested. Interest | ||||||
13 | that accrues from these investments shall be deposited into the | ||||||
14 | Fund. | ||||||
15 | (d) The money in the Fund at the end of a State fiscal year | ||||||
16 | remains in the Fund to be used exclusively for the purposes of | ||||||
17 | this Act. Expenditures from the Fund are subject to | ||||||
18 | appropriation by the General Assembly. | ||||||
19 | Section 5-100. Program terms and conditions. | ||||||
20 | (a) Any documentary materials or data made available or | ||||||
21 | received by any member of a Committee or any agent or employee | ||||||
22 | of the Department shall be deemed confidential and shall not be | ||||||
23 | deemed public records to the extent that the materials or data | ||||||
24 | consists of trade secrets, commercial or financial information |
| |||||||
| |||||||
1 | regarding the operation of the business conducted by the | ||||||
2 | Applicant for or recipient of any tax credit under this Act, or | ||||||
3 | any information regarding the competitive position of a | ||||||
4 | business in a particular field of endeavor. | ||||||
5 | (b) Nothing in this Act shall be construed as creating any | ||||||
6 | rights in any Applicant to enter into an Agreement or in any | ||||||
7 | person to challenge the terms of any Agreement. | ||||||
8 | Article 10. Amendatory Provisions | ||||||
9 | Section 10-5. The Illinois Administrative Procedure Act is | ||||||
10 | amended by changing Section 5-45 as follows: | ||||||
11 | (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45) | ||||||
12 | Sec. 5-45. Emergency rulemaking. | ||||||
13 | (a) "Emergency" means the existence of any situation that | ||||||
14 | any agency
finds reasonably constitutes a threat to the public | ||||||
15 | interest, safety, or
welfare. | ||||||
16 | (b) If any agency finds that an
emergency exists that | ||||||
17 | requires adoption of a rule upon fewer days than
is required by | ||||||
18 | Section 5-40 and states in writing its reasons for that
| ||||||
19 | finding, the agency may adopt an emergency rule without prior | ||||||
20 | notice or
hearing upon filing a notice of emergency rulemaking | ||||||
21 | with the Secretary of
State under Section 5-70. The notice | ||||||
22 | shall include the text of the
emergency rule and shall be | ||||||
23 | published in the Illinois Register. Consent
orders or other |
| |||||||
| |||||||
1 | court orders adopting settlements negotiated by an agency
may | ||||||
2 | be adopted under this Section. Subject to applicable | ||||||
3 | constitutional or
statutory provisions, an emergency rule | ||||||
4 | becomes effective immediately upon
filing under Section 5-65 or | ||||||
5 | at a stated date less than 10 days
thereafter. The agency's | ||||||
6 | finding and a statement of the specific reasons
for the finding | ||||||
7 | shall be filed with the rule. The agency shall take
reasonable | ||||||
8 | and appropriate measures to make emergency rules known to the
| ||||||
9 | persons who may be affected by them. | ||||||
10 | (c) An emergency rule may be effective for a period of not | ||||||
11 | longer than
150 days, but the agency's authority to adopt an | ||||||
12 | identical rule under Section
5-40 is not precluded. No | ||||||
13 | emergency rule may be adopted more
than once in any 24-month | ||||||
14 | period, except that this limitation on the number
of emergency | ||||||
15 | rules that may be adopted in a 24-month period does not apply
| ||||||
16 | to (i) emergency rules that make additions to and deletions | ||||||
17 | from the Drug
Manual under Section 5-5.16 of the Illinois | ||||||
18 | Public Aid Code or the
generic drug formulary under Section | ||||||
19 | 3.14 of the Illinois Food, Drug
and Cosmetic Act, (ii) | ||||||
20 | emergency rules adopted by the Pollution Control
Board before | ||||||
21 | July 1, 1997 to implement portions of the Livestock Management
| ||||||
22 | Facilities Act, (iii) emergency rules adopted by the Illinois | ||||||
23 | Department of Public Health under subsections (a) through (i) | ||||||
24 | of Section 2 of the Department of Public Health Act when | ||||||
25 | necessary to protect the public's health, (iv) emergency rules | ||||||
26 | adopted pursuant to subsection (n) of this Section, (v) |
| |||||||
| |||||||
1 | emergency rules adopted pursuant to subsection (o) of this | ||||||
2 | Section, or (vi) emergency rules adopted pursuant to subsection | ||||||
3 | (c-5) of this Section. Two or more emergency rules having | ||||||
4 | substantially the same
purpose and effect shall be deemed to be | ||||||
5 | a single rule for purposes of this
Section. | ||||||
6 | (c-5) To facilitate the maintenance of the program of group | ||||||
7 | health benefits provided to annuitants, survivors, and retired | ||||||
8 | employees under the State Employees Group Insurance Act of | ||||||
9 | 1971, rules to alter the contributions to be paid by the State, | ||||||
10 | annuitants, survivors, retired employees, or any combination | ||||||
11 | of those entities, for that program of group health benefits, | ||||||
12 | shall be adopted as emergency rules. The adoption of those | ||||||
13 | rules shall be considered an emergency and necessary for the | ||||||
14 | public interest, safety, and welfare. | ||||||
15 | (d) In order to provide for the expeditious and timely | ||||||
16 | implementation
of the State's fiscal year 1999 budget, | ||||||
17 | emergency rules to implement any
provision of Public Act 90-587 | ||||||
18 | or 90-588
or any other budget initiative for fiscal year 1999 | ||||||
19 | may be adopted in
accordance with this Section by the agency | ||||||
20 | charged with administering that
provision or initiative, | ||||||
21 | except that the 24-month limitation on the adoption
of | ||||||
22 | emergency rules and the provisions of Sections 5-115 and 5-125 | ||||||
23 | do not apply
to rules adopted under this subsection (d). The | ||||||
24 | adoption of emergency rules
authorized by this subsection (d) | ||||||
25 | shall be deemed to be necessary for the
public interest, | ||||||
26 | safety, and welfare. |
| |||||||
| |||||||
1 | (e) In order to provide for the expeditious and timely | ||||||
2 | implementation
of the State's fiscal year 2000 budget, | ||||||
3 | emergency rules to implement any
provision of Public Act 91-24
| ||||||
4 | or any other budget initiative for fiscal year 2000 may be | ||||||
5 | adopted in
accordance with this Section by the agency charged | ||||||
6 | with administering that
provision or initiative, except that | ||||||
7 | the 24-month limitation on the adoption
of emergency rules and | ||||||
8 | the provisions of Sections 5-115 and 5-125 do not apply
to | ||||||
9 | rules adopted under this subsection (e). The adoption of | ||||||
10 | emergency rules
authorized by this subsection (e) shall be | ||||||
11 | deemed to be necessary for the
public interest, safety, and | ||||||
12 | welfare. | ||||||
13 | (f) In order to provide for the expeditious and timely | ||||||
14 | implementation
of the State's fiscal year 2001 budget, | ||||||
15 | emergency rules to implement any
provision of Public Act 91-712
| ||||||
16 | or any other budget initiative for fiscal year 2001 may be | ||||||
17 | adopted in
accordance with this Section by the agency charged | ||||||
18 | with administering that
provision or initiative, except that | ||||||
19 | the 24-month limitation on the adoption
of emergency rules and | ||||||
20 | the provisions of Sections 5-115 and 5-125 do not apply
to | ||||||
21 | rules adopted under this subsection (f). The adoption of | ||||||
22 | emergency rules
authorized by this subsection (f) shall be | ||||||
23 | deemed to be necessary for the
public interest, safety, and | ||||||
24 | welfare. | ||||||
25 | (g) In order to provide for the expeditious and timely | ||||||
26 | implementation
of the State's fiscal year 2002 budget, |
| |||||||
| |||||||
1 | emergency rules to implement any
provision of Public Act 92-10
| ||||||
2 | or any other budget initiative for fiscal year 2002 may be | ||||||
3 | adopted in
accordance with this Section by the agency charged | ||||||
4 | with administering that
provision or initiative, except that | ||||||
5 | the 24-month limitation on the adoption
of emergency rules and | ||||||
6 | the provisions of Sections 5-115 and 5-125 do not apply
to | ||||||
7 | rules adopted under this subsection (g). The adoption of | ||||||
8 | emergency rules
authorized by this subsection (g) shall be | ||||||
9 | deemed to be necessary for the
public interest, safety, and | ||||||
10 | welfare. | ||||||
11 | (h) In order to provide for the expeditious and timely | ||||||
12 | implementation
of the State's fiscal year 2003 budget, | ||||||
13 | emergency rules to implement any
provision of Public Act 92-597
| ||||||
14 | or any other budget initiative for fiscal year 2003 may be | ||||||
15 | adopted in
accordance with this Section by the agency charged | ||||||
16 | with administering that
provision or initiative, except that | ||||||
17 | the 24-month limitation on the adoption
of emergency rules and | ||||||
18 | the provisions of Sections 5-115 and 5-125 do not apply
to | ||||||
19 | rules adopted under this subsection (h). The adoption of | ||||||
20 | emergency rules
authorized by this subsection (h) shall be | ||||||
21 | deemed to be necessary for the
public interest, safety, and | ||||||
22 | welfare. | ||||||
23 | (i) In order to provide for the expeditious and timely | ||||||
24 | implementation
of the State's fiscal year 2004 budget, | ||||||
25 | emergency rules to implement any
provision of Public Act 93-20
| ||||||
26 | or any other budget initiative for fiscal year 2004 may be |
| |||||||
| |||||||
1 | adopted in
accordance with this Section by the agency charged | ||||||
2 | with administering that
provision or initiative, except that | ||||||
3 | the 24-month limitation on the adoption
of emergency rules and | ||||||
4 | the provisions of Sections 5-115 and 5-125 do not apply
to | ||||||
5 | rules adopted under this subsection (i). The adoption of | ||||||
6 | emergency rules
authorized by this subsection (i) shall be | ||||||
7 | deemed to be necessary for the
public interest, safety, and | ||||||
8 | welfare. | ||||||
9 | (j) In order to provide for the expeditious and timely | ||||||
10 | implementation of the provisions of the State's fiscal year | ||||||
11 | 2005 budget as provided under the Fiscal Year 2005 Budget | ||||||
12 | Implementation (Human Services) Act, emergency rules to | ||||||
13 | implement any provision of the Fiscal Year 2005 Budget | ||||||
14 | Implementation (Human Services) Act may be adopted in | ||||||
15 | accordance with this Section by the agency charged with | ||||||
16 | administering that provision, except that the 24-month | ||||||
17 | limitation on the adoption of emergency rules and the | ||||||
18 | provisions of Sections 5-115 and 5-125 do not apply to rules | ||||||
19 | adopted under this subsection (j). The Department of Public Aid | ||||||
20 | may also adopt rules under this subsection (j) necessary to | ||||||
21 | administer the Illinois Public Aid Code and the Children's | ||||||
22 | Health Insurance Program Act. The adoption of emergency rules | ||||||
23 | authorized by this subsection (j) shall be deemed to be | ||||||
24 | necessary for the public interest, safety, and welfare.
| ||||||
25 | (k) In order to provide for the expeditious and timely | ||||||
26 | implementation of the provisions of the State's fiscal year |
| |||||||
| |||||||
1 | 2006 budget, emergency rules to implement any provision of | ||||||
2 | Public Act 94-48 or any other budget initiative for fiscal year | ||||||
3 | 2006 may be adopted in accordance with this Section by the | ||||||
4 | agency charged with administering that provision or | ||||||
5 | initiative, except that the 24-month limitation on the adoption | ||||||
6 | of emergency rules and the provisions of Sections 5-115 and | ||||||
7 | 5-125 do not apply to rules adopted under this subsection (k). | ||||||
8 | The Department of Healthcare and Family Services may also adopt | ||||||
9 | rules under this subsection (k) necessary to administer the | ||||||
10 | Illinois Public Aid Code, the Senior Citizens and Persons with | ||||||
11 | Disabilities Property Tax Relief Act, the Senior Citizens and | ||||||
12 | Disabled Persons Prescription Drug Discount Program Act (now | ||||||
13 | the Illinois Prescription Drug Discount Program Act), and the | ||||||
14 | Children's Health Insurance Program Act. The adoption of | ||||||
15 | emergency rules authorized by this subsection (k) shall be | ||||||
16 | deemed to be necessary for the public interest, safety, and | ||||||
17 | welfare.
| ||||||
18 | (l) In order to provide for the expeditious and timely | ||||||
19 | implementation of the provisions of the
State's fiscal year | ||||||
20 | 2007 budget, the Department of Healthcare and Family Services | ||||||
21 | may adopt emergency rules during fiscal year 2007, including | ||||||
22 | rules effective July 1, 2007, in
accordance with this | ||||||
23 | subsection to the extent necessary to administer the | ||||||
24 | Department's responsibilities with respect to amendments to | ||||||
25 | the State plans and Illinois waivers approved by the federal | ||||||
26 | Centers for Medicare and Medicaid Services necessitated by the |
| |||||||
| |||||||
1 | requirements of Title XIX and Title XXI of the federal Social | ||||||
2 | Security Act. The adoption of emergency rules
authorized by | ||||||
3 | this subsection (l) shall be deemed to be necessary for the | ||||||
4 | public interest,
safety, and welfare.
| ||||||
5 | (m) In order to provide for the expeditious and timely | ||||||
6 | implementation of the provisions of the
State's fiscal year | ||||||
7 | 2008 budget, the Department of Healthcare and Family Services | ||||||
8 | may adopt emergency rules during fiscal year 2008, including | ||||||
9 | rules effective July 1, 2008, in
accordance with this | ||||||
10 | subsection to the extent necessary to administer the | ||||||
11 | Department's responsibilities with respect to amendments to | ||||||
12 | the State plans and Illinois waivers approved by the federal | ||||||
13 | Centers for Medicare and Medicaid Services necessitated by the | ||||||
14 | requirements of Title XIX and Title XXI of the federal Social | ||||||
15 | Security Act. The adoption of emergency rules
authorized by | ||||||
16 | this subsection (m) shall be deemed to be necessary for the | ||||||
17 | public interest,
safety, and welfare.
| ||||||
18 | (n) In order to provide for the expeditious and timely | ||||||
19 | implementation of the provisions of the State's fiscal year | ||||||
20 | 2010 budget, emergency rules to implement any provision of | ||||||
21 | Public Act 96-45 or any other budget initiative authorized by | ||||||
22 | the 96th General Assembly for fiscal year 2010 may be adopted | ||||||
23 | in accordance with this Section by the agency charged with | ||||||
24 | administering that provision or initiative. The adoption of | ||||||
25 | emergency rules authorized by this subsection (n) shall be | ||||||
26 | deemed to be necessary for the public interest, safety, and |
| |||||||
| |||||||
1 | welfare. The rulemaking authority granted in this subsection | ||||||
2 | (n) shall apply only to rules promulgated during Fiscal Year | ||||||
3 | 2010. | ||||||
4 | (o) In order to provide for the expeditious and timely | ||||||
5 | implementation of the provisions of the State's fiscal year | ||||||
6 | 2011 budget, emergency rules to implement any provision of | ||||||
7 | Public Act 96-958 or any other budget initiative authorized by | ||||||
8 | the 96th General Assembly for fiscal year 2011 may be adopted | ||||||
9 | in accordance with this Section by the agency charged with | ||||||
10 | administering that provision or initiative. The adoption of | ||||||
11 | emergency rules authorized by this subsection (o) is deemed to | ||||||
12 | be necessary for the public interest, safety, and welfare. The | ||||||
13 | rulemaking authority granted in this subsection (o) applies | ||||||
14 | only to rules promulgated on or after July 1, 2010 (the | ||||||
15 | effective date of Public Act 96-958) through June 30, 2011. | ||||||
16 | (p) In order to provide for the expeditious and timely | ||||||
17 | implementation of the provisions of Public Act 97-689, | ||||||
18 | emergency rules to implement any provision of Public Act 97-689 | ||||||
19 | may be adopted in accordance with this subsection (p) by the | ||||||
20 | agency charged with administering that provision or | ||||||
21 | initiative. The 150-day limitation of the effective period of | ||||||
22 | emergency rules does not apply to rules adopted under this | ||||||
23 | subsection (p), and the effective period may continue through | ||||||
24 | June 30, 2013. The 24-month limitation on the adoption of | ||||||
25 | emergency rules does not apply to rules adopted under this | ||||||
26 | subsection (p). The adoption of emergency rules authorized by |
| |||||||
| |||||||
1 | this subsection (p) is deemed to be necessary for the public | ||||||
2 | interest, safety, and welfare. | ||||||
3 | (q) In order to provide for the expeditious and timely | ||||||
4 | implementation of the provisions of Articles 7, 8, 9, 11, and | ||||||
5 | 12 of Public Act 98-104, emergency rules to implement any | ||||||
6 | provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104 | ||||||
7 | may be adopted in accordance with this subsection (q) by the | ||||||
8 | agency charged with administering that provision or | ||||||
9 | initiative. The 24-month limitation on the adoption of | ||||||
10 | emergency rules does not apply to rules adopted under this | ||||||
11 | subsection (q). The adoption of emergency rules authorized by | ||||||
12 | this subsection (q) is deemed to be necessary for the public | ||||||
13 | interest, safety, and welfare. | ||||||
14 | (r) In order to provide for the expeditious and timely | ||||||
15 | implementation of the provisions of Public Act 98-651, | ||||||
16 | emergency rules to implement Public Act 98-651 may be adopted | ||||||
17 | in accordance with this subsection (r) by the Department of | ||||||
18 | Healthcare and Family Services. The 24-month limitation on the | ||||||
19 | adoption of emergency rules does not apply to rules adopted | ||||||
20 | under this subsection (r). The adoption of emergency rules | ||||||
21 | authorized by this subsection (r) is deemed to be necessary for | ||||||
22 | the public interest, safety, and welfare. | ||||||
23 | (s) In order to provide for the expeditious and timely | ||||||
24 | implementation of the provisions of Sections 5-5b.1 and 5A-2 of | ||||||
25 | the Illinois Public Aid Code, emergency rules to implement any | ||||||
26 | provision of Section 5-5b.1 or Section 5A-2 of the Illinois |
| |||||||
| |||||||
1 | Public Aid Code may be adopted in accordance with this | ||||||
2 | subsection (s) by the Department of Healthcare and Family | ||||||
3 | Services. The rulemaking authority granted in this subsection | ||||||
4 | (s) shall apply only to those rules adopted prior to July 1, | ||||||
5 | 2015. Notwithstanding any other provision of this Section, any | ||||||
6 | emergency rule adopted under this subsection (s) shall only | ||||||
7 | apply to payments made for State fiscal year 2015. The adoption | ||||||
8 | of emergency rules authorized by this subsection (s) is deemed | ||||||
9 | to be necessary for the public interest, safety, and welfare. | ||||||
10 | (t) In order to provide for the expeditious and timely | ||||||
11 | implementation of the provisions of Article II of Public Act | ||||||
12 | 99-6, emergency rules to implement the changes made by Article | ||||||
13 | II of Public Act 99-6 to the Emergency Telephone System Act may | ||||||
14 | be adopted in accordance with this subsection (t) by the | ||||||
15 | Department of State Police. The rulemaking authority granted in | ||||||
16 | this subsection (t) shall apply only to those rules adopted | ||||||
17 | prior to July 1, 2016. The 24-month limitation on the adoption | ||||||
18 | of emergency rules does not apply to rules adopted under this | ||||||
19 | subsection (t). The adoption of emergency rules authorized by | ||||||
20 | this subsection (t) is deemed to be necessary for the public | ||||||
21 | interest, safety, and welfare. | ||||||
22 | (u) In order to provide for the expeditious and timely | ||||||
23 | implementation of the provisions of the Burn Victims Relief | ||||||
24 | Act, emergency rules to implement any provision of the Act may | ||||||
25 | be adopted in accordance with this subsection (u) by the | ||||||
26 | Department of Insurance. The rulemaking authority granted in |
| |||||||
| |||||||
1 | this subsection (u) shall apply only to those rules adopted | ||||||
2 | prior to December 31, 2015. The adoption of emergency rules | ||||||
3 | authorized by this subsection (u) is deemed to be necessary for | ||||||
4 | the public interest, safety, and welfare. | ||||||
5 | (v) In order to provide for the expeditious and timely | ||||||
6 | implementation of the provisions of Public Act 99-516, | ||||||
7 | emergency rules to implement Public Act 99-516 may be adopted | ||||||
8 | in accordance with this subsection (v) by the Department of | ||||||
9 | Healthcare and Family Services. The 24-month limitation on the | ||||||
10 | adoption of emergency rules does not apply to rules adopted | ||||||
11 | under this subsection (v). The adoption of emergency rules | ||||||
12 | authorized by this subsection (v) is deemed to be necessary for | ||||||
13 | the public interest, safety, and welfare. | ||||||
14 | (w) In order to provide for the expeditious and timely | ||||||
15 | implementation of the provisions of Public Act 99-796, | ||||||
16 | emergency rules to implement the changes made by Public Act | ||||||
17 | 99-796 may be adopted in accordance with this subsection (w) by | ||||||
18 | the Adjutant General. The adoption of emergency rules | ||||||
19 | authorized by this subsection (w) is deemed to be necessary for | ||||||
20 | the public interest, safety, and welfare. | ||||||
21 | (x) In order to provide for the expeditious and timely | ||||||
22 | implementation of the provisions of Public Act 99-906, | ||||||
23 | emergency rules to implement subsection (i) of Section 16-115D, | ||||||
24 | subsection (g) of Section 16-128A, and subsection (a) of | ||||||
25 | Section 16-128B of the Public Utilities Act may be adopted in | ||||||
26 | accordance with this subsection (x) by the Illinois Commerce |
| |||||||
| |||||||
1 | Commission. The rulemaking authority granted in this | ||||||
2 | subsection (x) shall apply only to those rules adopted within | ||||||
3 | 180 days after June 1, 2017 (the effective date of Public Act | ||||||
4 | 99-906). The adoption of emergency rules authorized by this | ||||||
5 | subsection (x) is deemed to be necessary for the public | ||||||
6 | interest, safety, and welfare. | ||||||
7 | (y) In order to provide for the expeditious and timely | ||||||
8 | implementation of the provisions of this amendatory Act of the | ||||||
9 | 100th General Assembly, emergency rules to implement the | ||||||
10 | changes made by this amendatory Act of the 100th General | ||||||
11 | Assembly to Section 4.02 of the Illinois Act on Aging, Sections | ||||||
12 | 5.5.4 and 5-5.4i of the Illinois Public Aid Code, Section 55-30 | ||||||
13 | of the Alcoholism and Other Drug Abuse and Dependency Act, and | ||||||
14 | Sections 74 and 75 of the Mental Health and Developmental | ||||||
15 | Disabilities Administrative Act may be adopted in accordance | ||||||
16 | with this subsection (y) by the respective Department. The | ||||||
17 | adoption of emergency rules authorized by this subsection (y) | ||||||
18 | is deemed to be necessary for the public interest, safety, and | ||||||
19 | welfare. | ||||||
20 | (z) In order to provide for the expeditious and timely | ||||||
21 | implementation of the provisions of this amendatory Act of the | ||||||
22 | 100th General Assembly, emergency rules to implement the | ||||||
23 | changes made by this amendatory Act of the 100th General | ||||||
24 | Assembly to Section 4.7 of the Lobbyist Registration Act may be | ||||||
25 | adopted in accordance with this subsection (z) by the Secretary | ||||||
26 | of State. The adoption of emergency rules authorized by this |
| |||||||
| |||||||
1 | subsection (z) is deemed to be necessary for the public | ||||||
2 | interest, safety, and welfare. | ||||||
3 | (aa) In order to provide for the expeditious and timely | ||||||
4 | implementation of the Illinois Energy Transition Zone Act, | ||||||
5 | emergency rules to implement the provisions of subsection (a-5) | ||||||
6 | of Section 1-40 of the Illinois Energy Transition Zone Act may | ||||||
7 | be adopted in accordance with this subsection (aa) by the | ||||||
8 | Department of Commerce and Economic Opportunity for period of | ||||||
9 | 12 months after the effective date of the Illinois Energy | ||||||
10 | Transition Zone Act. The adoption of emergency rules authorized | ||||||
11 | by this subsection (aa) is deemed to be necessary for the | ||||||
12 | public interest, safety, and welfare. | ||||||
13 | (Source: P.A. 99-2, eff. 3-26-15; 99-6, eff. 1-1-16; 99-143, | ||||||
14 | eff. 7-27-15; 99-455, eff. 1-1-16; 99-516, eff. 6-30-16; | ||||||
15 | 99-642, eff. 7-28-16; 99-796, eff. 1-1-17; 99-906, eff. 6-1-17; | ||||||
16 | 100-23, eff. 7-6-17; 100-554, eff. 11-16-17.) | ||||||
17 | Section 10-10. The State Finance Act is amended by adding | ||||||
18 | Section 5.886 as follows: | ||||||
19 | (30 ILCS 105/5.886 new) | ||||||
20 | Sec. 5.886. The Energy Transition Fund. | ||||||
21 | Section 10-15. The Illinois Income Tax Act is amended by | ||||||
22 | changing Section 201 as follows: |
| |||||||
| |||||||
1 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
2 | Sec. 201. Tax imposed. | ||||||
3 | (a) In general. A tax measured by net income is hereby | ||||||
4 | imposed on every
individual, corporation, trust and estate for | ||||||
5 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
6 | of earning or receiving income in or
as a resident of this | ||||||
7 | State. Such tax shall be in addition to all other
occupation or | ||||||
8 | privilege taxes imposed by this State or by any municipal
| ||||||
9 | corporation or political subdivision thereof. | ||||||
10 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
11 | Section shall be
determined as follows, except as adjusted by | ||||||
12 | subsection (d-1): | ||||||
13 | (1) In the case of an individual, trust or estate, for | ||||||
14 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
15 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
16 | year. | ||||||
17 | (2) In the case of an individual, trust or estate, for | ||||||
18 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
19 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
20 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
21 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
22 | 3% of the
taxpayer's net income for the period after June | ||||||
23 | 30, 1989, as calculated
under Section 202.3. | ||||||
24 | (3) In the case of an individual, trust or estate, for | ||||||
25 | taxable years
beginning after June 30, 1989, and ending | ||||||
26 | prior to January 1, 2011, an amount equal to 3% of the |
| |||||||
| |||||||
1 | taxpayer's net
income for the taxable year. | ||||||
2 | (4) In the case of an individual, trust, or estate, for | ||||||
3 | taxable years beginning prior to January 1, 2011, and | ||||||
4 | ending after December 31, 2010, an amount equal to the sum | ||||||
5 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
6 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
7 | (ii) 5% of the taxpayer's net income for the period after | ||||||
8 | December 31, 2010, as calculated under Section 202.5. | ||||||
9 | (5) In the case of an individual, trust, or estate, for | ||||||
10 | taxable years beginning on or after January 1, 2011, and | ||||||
11 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
12 | the taxpayer's net income for the taxable year. | ||||||
13 | (5.1) In the case of an individual, trust, or estate, | ||||||
14 | for taxable years beginning prior to January 1, 2015, and | ||||||
15 | ending after December 31, 2014, an amount equal to the sum | ||||||
16 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
17 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
18 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
19 | after December 31, 2014, as calculated under Section 202.5. | ||||||
20 | (5.2) In the case of an individual, trust, or estate, | ||||||
21 | for taxable years beginning on or after January 1, 2015, | ||||||
22 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
23 | of the taxpayer's net income for the taxable year. | ||||||
24 | (5.3) In the case of an individual, trust, or estate, | ||||||
25 | for taxable years beginning prior to July 1, 2017, and | ||||||
26 | ending after June 30, 2017, an amount equal to the sum of |
| |||||||
| |||||||
1 | (i) 3.75% of the taxpayer's net income for the period prior | ||||||
2 | to July 1, 2017, as calculated under Section 202.5, and | ||||||
3 | (ii) 4.95% of the taxpayer's net income for the period | ||||||
4 | after June 30, 2017, as calculated under Section 202.5. | ||||||
5 | (5.4) In the case of an individual, trust, or estate, | ||||||
6 | for taxable years beginning on or after July 1, 2017, an | ||||||
7 | amount equal to 4.95% of the taxpayer's net income for the | ||||||
8 | taxable year. | ||||||
9 | (6) In the case of a corporation, for taxable years
| ||||||
10 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
11 | taxpayer's net income for the taxable year. | ||||||
12 | (7) In the case of a corporation, for taxable years | ||||||
13 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
14 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
15 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
16 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
17 | taxpayer's net
income for the period after June 30, 1989, | ||||||
18 | as calculated under Section
202.3. | ||||||
19 | (8) In the case of a corporation, for taxable years | ||||||
20 | beginning after
June 30, 1989, and ending prior to January | ||||||
21 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
22 | income for the
taxable year. | ||||||
23 | (9) In the case of a corporation, for taxable years | ||||||
24 | beginning prior to January 1, 2011, and ending after | ||||||
25 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
26 | of the taxpayer's net income for the period prior to |
| |||||||
| |||||||
1 | January 1, 2011, as calculated under Section 202.5, and | ||||||
2 | (ii) 7% of the taxpayer's net income for the period after | ||||||
3 | December 31, 2010, as calculated under Section 202.5. | ||||||
4 | (10) In the case of a corporation, for taxable years | ||||||
5 | beginning on or after January 1, 2011, and ending prior to | ||||||
6 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
7 | net income for the taxable year. | ||||||
8 | (11) In the case of a corporation, for taxable years | ||||||
9 | beginning prior to January 1, 2015, and ending after | ||||||
10 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
11 | the taxpayer's net income for the period prior to January | ||||||
12 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
13 | of the taxpayer's net income for the period after December | ||||||
14 | 31, 2014, as calculated under Section 202.5. | ||||||
15 | (12) In the case of a corporation, for taxable years | ||||||
16 | beginning on or after January 1, 2015, and ending prior to | ||||||
17 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
18 | net income for the taxable year. | ||||||
19 | (13) In the case of a corporation, for taxable years | ||||||
20 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
21 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
22 | taxpayer's net income for the period prior to July 1, 2017, | ||||||
23 | as calculated under Section 202.5, and (ii) 7% of the | ||||||
24 | taxpayer's net income for the period after June 30, 2017, | ||||||
25 | as calculated under Section 202.5. | ||||||
26 | (14) In the case of a corporation, for taxable years |
| |||||||
| |||||||
1 | beginning on or after July 1, 2017, an amount equal to 7% | ||||||
2 | of the taxpayer's net income for the taxable year. | ||||||
3 | The rates under this subsection (b) are subject to the | ||||||
4 | provisions of Section 201.5. | ||||||
5 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
6 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
7 | income
tax, there is also hereby imposed the Personal Property | ||||||
8 | Tax Replacement
Income Tax measured by net income on every | ||||||
9 | corporation (including Subchapter
S corporations), partnership | ||||||
10 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
11 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
12 | income in or as a resident of this State. The Personal Property
| ||||||
13 | Tax Replacement Income Tax shall be in addition to the income | ||||||
14 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
15 | addition to all other
occupation or privilege taxes imposed by | ||||||
16 | this State or by any municipal
corporation or political | ||||||
17 | subdivision thereof. | ||||||
18 | (d) Additional Personal Property Tax Replacement Income | ||||||
19 | Tax Rates.
The personal property tax replacement income tax | ||||||
20 | imposed by this subsection
and subsection (c) of this Section | ||||||
21 | in the case of a corporation, other
than a Subchapter S | ||||||
22 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
23 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
24 | income for the taxable year, except that
beginning on January | ||||||
25 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
26 | subsection shall be reduced to 2.5%, and in the case of a
|
| |||||||
| |||||||
1 | partnership, trust or a Subchapter S corporation shall be an | ||||||
2 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
3 | for the taxable year. | ||||||
4 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
5 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
6 | Illinois Insurance Code,
whose state or country of domicile | ||||||
7 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
8 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
9 | are 50% or more of its total insurance
premiums as determined | ||||||
10 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
11 | that for purposes of this determination premiums from | ||||||
12 | reinsurance do
not include premiums from inter-affiliate | ||||||
13 | reinsurance arrangements),
beginning with taxable years ending | ||||||
14 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
15 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
16 | increased) to the rate at which the total amount of tax imposed | ||||||
17 | under this Act,
net of all credits allowed under this Act, | ||||||
18 | shall equal (i) the total amount of
tax that would be imposed | ||||||
19 | on the foreign insurer's net income allocable to
Illinois for | ||||||
20 | the taxable year by such foreign insurer's state or country of
| ||||||
21 | domicile if that net income were subject to all income taxes | ||||||
22 | and taxes
measured by net income imposed by such foreign | ||||||
23 | insurer's state or country of
domicile, net of all credits | ||||||
24 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
25 | income by the foreign insurer's state of domicile.
For the | ||||||
26 | purposes of this subsection (d-1), an inter-affiliate includes |
| |||||||
| |||||||
1 | a
mutual insurer under common management. | ||||||
2 | (1) For the purposes of subsection (d-1), in no event | ||||||
3 | shall the sum of the
rates of tax imposed by subsections | ||||||
4 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
5 | (A) the total amount of tax imposed on such foreign | ||||||
6 | insurer under
this Act for a taxable year, net of all | ||||||
7 | credits allowed under this Act, plus | ||||||
8 | (B) the privilege tax imposed by Section 409 of the | ||||||
9 | Illinois Insurance
Code, the fire insurance company | ||||||
10 | tax imposed by Section 12 of the Fire
Investigation | ||||||
11 | Act, and the fire department taxes imposed under | ||||||
12 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
13 | equals 1.25% for taxable years ending prior to December 31, | ||||||
14 | 2003, or
1.75% for taxable years ending on or after | ||||||
15 | December 31, 2003, of the net
taxable premiums written for | ||||||
16 | the taxable year,
as described by subsection (1) of Section | ||||||
17 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
18 | no event increase the rates imposed under subsections
(b) | ||||||
19 | and (d). | ||||||
20 | (2) Any reduction in the rates of tax imposed by this | ||||||
21 | subsection shall be
applied first against the rates imposed | ||||||
22 | by subsection (b) and only after the
tax imposed by | ||||||
23 | subsection (a) net of all credits allowed under this | ||||||
24 | Section
other than the credit allowed under subsection (i) | ||||||
25 | has been reduced to zero,
against the rates imposed by | ||||||
26 | subsection (d). |
| |||||||
| |||||||
1 | This subsection (d-1) is exempt from the provisions of | ||||||
2 | Section 250. | ||||||
3 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
4 | against the Personal Property Tax Replacement Income Tax for
| ||||||
5 | investment in qualified property. | ||||||
6 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
7 | of
the basis of qualified property placed in service during | ||||||
8 | the taxable year,
provided such property is placed in | ||||||
9 | service on or after
July 1, 1984. There shall be allowed an | ||||||
10 | additional credit equal
to .5% of the basis of qualified | ||||||
11 | property placed in service during the
taxable year, | ||||||
12 | provided such property is placed in service on or
after | ||||||
13 | July 1, 1986, and the taxpayer's base employment
within | ||||||
14 | Illinois has increased by 1% or more over the preceding | ||||||
15 | year as
determined by the taxpayer's employment records | ||||||
16 | filed with the
Illinois Department of Employment Security. | ||||||
17 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
18 | met the 1% growth in base employment for
the first year in | ||||||
19 | which they file employment records with the Illinois
| ||||||
20 | Department of Employment Security. The provisions added to | ||||||
21 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
22 | Act 87-895) shall be
construed as declaratory of existing | ||||||
23 | law and not as a new enactment. If,
in any year, the | ||||||
24 | increase in base employment within Illinois over the
| ||||||
25 | preceding year is less than 1%, the additional credit shall | ||||||
26 | be limited to that
percentage times a fraction, the |
| |||||||
| |||||||
1 | numerator of which is .5% and the denominator
of which is | ||||||
2 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
3 | not be
allowed to the extent that it would reduce a | ||||||
4 | taxpayer's liability in any tax
year below zero, nor may | ||||||
5 | any credit for qualified property be allowed for any
year | ||||||
6 | other than the year in which the property was placed in | ||||||
7 | service in
Illinois. For tax years ending on or after | ||||||
8 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
9 | credit shall be allowed for the tax year in
which the | ||||||
10 | property is placed in service, or, if the amount of the | ||||||
11 | credit
exceeds the tax liability for that year, whether it | ||||||
12 | exceeds the original
liability or the liability as later | ||||||
13 | amended, such excess may be carried
forward and applied to | ||||||
14 | the tax liability of the 5 taxable years following
the | ||||||
15 | excess credit years if the taxpayer (i) makes investments | ||||||
16 | which cause
the creation of a minimum of 2,000 full-time | ||||||
17 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
18 | enterprise zone established pursuant to the Illinois
| ||||||
19 | Enterprise Zone Act and (iii) is certified by the | ||||||
20 | Department of Commerce
and Community Affairs (now | ||||||
21 | Department of Commerce and Economic Opportunity) as | ||||||
22 | complying with the requirements specified in
clause (i) and | ||||||
23 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
24 | Community Affairs (now Department of Commerce and Economic | ||||||
25 | Opportunity) shall notify the Department of Revenue of all | ||||||
26 | such
certifications immediately. For tax years ending |
| |||||||
| |||||||
1 | after December 31, 1988,
the credit shall be allowed for | ||||||
2 | the tax year in which the property is
placed in service, | ||||||
3 | or, if the amount of the credit exceeds the tax
liability | ||||||
4 | for that year, whether it exceeds the original liability or | ||||||
5 | the
liability as later amended, such excess may be carried | ||||||
6 | forward and applied
to the tax liability of the 5 taxable | ||||||
7 | years following the excess credit
years. The credit shall | ||||||
8 | be applied to the earliest year for which there is
a | ||||||
9 | liability. If there is credit from more than one tax year | ||||||
10 | that is
available to offset a liability, earlier credit | ||||||
11 | shall be applied first. | ||||||
12 | (2) The term "qualified property" means property | ||||||
13 | which: | ||||||
14 | (A) is tangible, whether new or used, including | ||||||
15 | buildings and structural
components of buildings and | ||||||
16 | signs that are real property, but not including
land or | ||||||
17 | improvements to real property that are not a structural | ||||||
18 | component of a
building such as landscaping, sewer | ||||||
19 | lines, local access roads, fencing, parking
lots, and | ||||||
20 | other appurtenances; | ||||||
21 | (B) is depreciable pursuant to Section 167 of the | ||||||
22 | Internal Revenue Code,
except that "3-year property" | ||||||
23 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
24 | eligible for the credit provided by this subsection | ||||||
25 | (e); | ||||||
26 | (C) is acquired by purchase as defined in Section |
| |||||||
| |||||||
1 | 179(d) of
the Internal Revenue Code; | ||||||
2 | (D) is used in Illinois by a taxpayer who is | ||||||
3 | primarily engaged in
manufacturing, or in mining coal | ||||||
4 | or fluorite, or in retailing, or was placed in service | ||||||
5 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
6 | Zone established pursuant to the River Edge | ||||||
7 | Redevelopment Zone Act; and | ||||||
8 | (E) has not previously been used in Illinois in | ||||||
9 | such a manner and by
such a person as would qualify for | ||||||
10 | the credit provided by this subsection
(e) or | ||||||
11 | subsection (f). | ||||||
12 | (3) For purposes of this subsection (e), | ||||||
13 | "manufacturing" means
the material staging and production | ||||||
14 | of tangible personal property by
procedures commonly | ||||||
15 | regarded as manufacturing, processing, fabrication, or
| ||||||
16 | assembling which changes some existing material into new | ||||||
17 | shapes, new
qualities, or new combinations. For purposes of | ||||||
18 | this subsection
(e) the term "mining" shall have the same | ||||||
19 | meaning as the term "mining" in
Section 613(c) of the | ||||||
20 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
21 | the term "retailing" means the sale of tangible personal | ||||||
22 | property for use or consumption and not for resale, or
| ||||||
23 | services rendered in conjunction with the sale of tangible | ||||||
24 | personal property for use or consumption and not for | ||||||
25 | resale. For purposes of this subsection (e), "tangible | ||||||
26 | personal property" has the same meaning as when that term |
| |||||||
| |||||||
1 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
2 | taxable years ending after December 31, 2008, does not | ||||||
3 | include the generation, transmission, or distribution of | ||||||
4 | electricity. | ||||||
5 | (4) The basis of qualified property shall be the basis
| ||||||
6 | used to compute the depreciation deduction for federal | ||||||
7 | income tax purposes. | ||||||
8 | (5) If the basis of the property for federal income tax | ||||||
9 | depreciation
purposes is increased after it has been placed | ||||||
10 | in service in Illinois by
the taxpayer, the amount of such | ||||||
11 | increase shall be deemed property placed
in service on the | ||||||
12 | date of such increase in basis. | ||||||
13 | (6) The term "placed in service" shall have the same
| ||||||
14 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
15 | (7) If during any taxable year, any property ceases to
| ||||||
16 | be qualified property in the hands of the taxpayer within | ||||||
17 | 48 months after
being placed in service, or the situs of | ||||||
18 | any qualified property is
moved outside Illinois within 48 | ||||||
19 | months after being placed in service, the
Personal Property | ||||||
20 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
21 | increased. Such increase shall be determined by (i) | ||||||
22 | recomputing the
investment credit which would have been | ||||||
23 | allowed for the year in which
credit for such property was | ||||||
24 | originally allowed by eliminating such
property from such | ||||||
25 | computation and, (ii) subtracting such recomputed credit
| ||||||
26 | from the amount of credit previously allowed. For the |
| |||||||
| |||||||
1 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
2 | qualified property resulting
from a redetermination of the | ||||||
3 | purchase price shall be deemed a disposition
of qualified | ||||||
4 | property to the extent of such reduction. | ||||||
5 | (8) Unless the investment credit is extended by law, | ||||||
6 | the
basis of qualified property shall not include costs | ||||||
7 | incurred after
December 31, 2018, except for costs incurred | ||||||
8 | pursuant to a binding
contract entered into on or before | ||||||
9 | December 31, 2018. | ||||||
10 | (9) Each taxable year ending before December 31, 2000, | ||||||
11 | a partnership may
elect to pass through to its
partners the | ||||||
12 | credits to which the partnership is entitled under this | ||||||
13 | subsection
(e) for the taxable year. A partner may use the | ||||||
14 | credit allocated to him or her
under this paragraph only | ||||||
15 | against the tax imposed in subsections (c) and (d) of
this | ||||||
16 | Section. If the partnership makes that election, those | ||||||
17 | credits shall be
allocated among the partners in the | ||||||
18 | partnership in accordance with the rules
set forth in | ||||||
19 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
20 | promulgated under that Section, and the allocated amount of | ||||||
21 | the credits shall
be allowed to the partners for that | ||||||
22 | taxable year. The partnership shall make
this election on | ||||||
23 | its Personal Property Tax Replacement Income Tax return for
| ||||||
24 | that taxable year. The election to pass through the credits | ||||||
25 | shall be
irrevocable. | ||||||
26 | For taxable years ending on or after December 31, 2000, |
| |||||||
| |||||||
1 | a
partner that qualifies its
partnership for a subtraction | ||||||
2 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
3 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
4 | S
corporation for a subtraction under subparagraph (S) of | ||||||
5 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
6 | allowed a credit under this subsection
(e) equal to its | ||||||
7 | share of the credit earned under this subsection (e) during
| ||||||
8 | the taxable year by the partnership or Subchapter S | ||||||
9 | corporation, determined in
accordance with the | ||||||
10 | determination of income and distributive share of
income | ||||||
11 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
12 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
13 | of Section 250. | ||||||
14 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
15 | Redevelopment Zone. | ||||||
16 | (1) A taxpayer shall be allowed a credit against the | ||||||
17 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
18 | investment in qualified
property which is placed in service | ||||||
19 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
20 | Enterprise Zone Act or, for property placed in service on | ||||||
21 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
22 | established pursuant to the River Edge Redevelopment Zone | ||||||
23 | Act. For partners, shareholders
of Subchapter S | ||||||
24 | corporations, and owners of limited liability companies,
| ||||||
25 | if the liability company is treated as a partnership for | ||||||
26 | purposes of
federal and State income taxation, there shall |
| |||||||
| |||||||
1 | be allowed a credit under
this subsection (f) to be | ||||||
2 | determined in accordance with the determination
of income | ||||||
3 | and distributive share of income under Sections 702 and 704 | ||||||
4 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
5 | shall be .5% of the
basis for such property. The credit | ||||||
6 | shall be available only in the taxable
year in which the | ||||||
7 | property is placed in service in the Enterprise Zone or | ||||||
8 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
9 | the extent that it would reduce a taxpayer's
liability for | ||||||
10 | the tax imposed by subsections (a) and (b) of this Section | ||||||
11 | to
below zero. For tax years ending on or after December | ||||||
12 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
13 | which the property is placed in
service, or, if the amount | ||||||
14 | of the credit exceeds the tax liability for that
year, | ||||||
15 | whether it exceeds the original liability or the liability | ||||||
16 | as later
amended, such excess may be carried forward and | ||||||
17 | applied to the tax
liability of the 5 taxable years | ||||||
18 | following the excess credit year.
The credit shall be | ||||||
19 | applied to the earliest year for which there is a
| ||||||
20 | liability. If there is credit from more than one tax year | ||||||
21 | that is available
to offset a liability, the credit | ||||||
22 | accruing first in time shall be applied
first. | ||||||
23 | (2) The term qualified property means property which: | ||||||
24 | (A) is tangible, whether new or used, including | ||||||
25 | buildings and
structural components of buildings; | ||||||
26 | (B) is depreciable pursuant to Section 167 of the |
| |||||||
| |||||||
1 | Internal Revenue
Code, except that "3-year property" | ||||||
2 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
3 | eligible for the credit provided by this subsection | ||||||
4 | (f); | ||||||
5 | (C) is acquired by purchase as defined in Section | ||||||
6 | 179(d) of
the Internal Revenue Code; | ||||||
7 | (D) is used in the Enterprise Zone or River Edge | ||||||
8 | Redevelopment Zone by the taxpayer; and | ||||||
9 | (E) has not been previously used in Illinois in | ||||||
10 | such a manner and by
such a person as would qualify for | ||||||
11 | the credit provided by this subsection
(f) or | ||||||
12 | subsection (e). | ||||||
13 | (3) The basis of qualified property shall be the basis | ||||||
14 | used to compute
the depreciation deduction for federal | ||||||
15 | income tax purposes. | ||||||
16 | (4) If the basis of the property for federal income tax | ||||||
17 | depreciation
purposes is increased after it has been placed | ||||||
18 | in service in the Enterprise
Zone or River Edge | ||||||
19 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
20 | increase shall be deemed property
placed in service on the | ||||||
21 | date of such increase in basis. | ||||||
22 | (5) The term "placed in service" shall have the same | ||||||
23 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
24 | (6) If during any taxable year, any property ceases to | ||||||
25 | be qualified
property in the hands of the taxpayer within | ||||||
26 | 48 months after being placed
in service, or the situs of |
| |||||||
| |||||||
1 | any qualified property is moved outside the
Enterprise Zone | ||||||
2 | or River Edge Redevelopment Zone within 48 months after | ||||||
3 | being placed in service, the tax
imposed under subsections | ||||||
4 | (a) and (b) of this Section for such taxable year
shall be | ||||||
5 | increased. Such increase shall be determined by (i) | ||||||
6 | recomputing
the investment credit which would have been | ||||||
7 | allowed for the year in which
credit for such property was | ||||||
8 | originally allowed by eliminating such
property from such | ||||||
9 | computation, and (ii) subtracting such recomputed credit
| ||||||
10 | from the amount of credit previously allowed. For the | ||||||
11 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
12 | qualified property resulting
from a redetermination of the | ||||||
13 | purchase price shall be deemed a disposition
of qualified | ||||||
14 | property to the extent of such reduction. | ||||||
15 | (7) There shall be allowed an additional credit equal | ||||||
16 | to 0.5% of the basis of qualified property placed in | ||||||
17 | service during the taxable year in a River Edge | ||||||
18 | Redevelopment Zone, provided such property is placed in | ||||||
19 | service on or after July 1, 2006, and the taxpayer's base | ||||||
20 | employment within Illinois has increased by 1% or more over | ||||||
21 | the preceding year as determined by the taxpayer's | ||||||
22 | employment records filed with the Illinois Department of | ||||||
23 | Employment Security. Taxpayers who are new to Illinois | ||||||
24 | shall be deemed to have met the 1% growth in base | ||||||
25 | employment for the first year in which they file employment | ||||||
26 | records with the Illinois Department of Employment |
| |||||||
| |||||||
1 | Security. If, in any year, the increase in base employment | ||||||
2 | within Illinois over the preceding year is less than 1%, | ||||||
3 | the additional credit shall be limited to that percentage | ||||||
4 | times a fraction, the numerator of which is 0.5% and the | ||||||
5 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
6 | (f-1) Investment credit; Energy Transition Zone. | ||||||
7 | (1) A taxpayer shall be allowed a credit against the
| ||||||
8 | tax imposed by subsections (a) and (b) of this Section for | ||||||
9 | investment in qualified property which is placed in service | ||||||
10 | for the use of the production of green energy by a green | ||||||
11 | energy enterprise in an Energy Transition Zone created | ||||||
12 | pursuant to the Illinois Energy Transition Zone Act. For | ||||||
13 | partners, shareholders of Subchapter S corporations, and | ||||||
14 | owners of limited liability companies, if the liability | ||||||
15 | company is treated as a partnership for purposes of federal | ||||||
16 | and State income taxation, there shall be allowed a credit | ||||||
17 | under this subsection (f-1) to be determined in accordance | ||||||
18 | with the determination of income and distributive share of | ||||||
19 | income under Sections 702 and 704 and Subchapter S of the | ||||||
20 | Internal Revenue Code. The credit shall be 0.5% of the | ||||||
21 | basis for such property. The credit shall be available only | ||||||
22 | in the taxable year in which the property is placed in | ||||||
23 | service in the Energy Transition Zone and shall not be | ||||||
24 | allowed to the extent that it would reduce a taxpayer's | ||||||
25 | liability for the tax imposed by subsections (a) and (b) of | ||||||
26 | this Section to below zero. The credit shall be allowed for |
| |||||||
| |||||||
1 | the tax year in which the property is placed in service, | ||||||
2 | or, if the amount of the credit exceeds the tax liability | ||||||
3 | for that year, whether it exceeds the original liability or | ||||||
4 | the liability as later amended, such excess may be carried | ||||||
5 | forward and applied to the tax liability of the 5 taxable | ||||||
6 | years following the excess credit year. The credit shall be | ||||||
7 | applied to the earliest year for which there is a | ||||||
8 | liability. If there is credit from more than one tax year | ||||||
9 | that is available to offset a liability, the credit | ||||||
10 | accruing first in time shall be applied first. | ||||||
11 | (2) The term qualified property means property which: | ||||||
12 | (A) is tangible, whether new or used, including
| ||||||
13 | buildings and structural components of buildings; | ||||||
14 | (B) is depreciable pursuant to Section 167 of the
| ||||||
15 | Internal Revenue Code, except that "3-year property" | ||||||
16 | as defined in Section 168(c)(2)(A) of that Code is not | ||||||
17 | eligible for the credit provided by this subsection | ||||||
18 | (f-1); | ||||||
19 | (C) is acquired by purchase as defined in Section
| ||||||
20 | 179(d) of the Internal Revenue Code; | ||||||
21 | (D) is used in the Energy Transition Zone
by the | ||||||
22 | taxpayer in relation to producing green energy; and | ||||||
23 | (E) has not been previously used in Illinois in
| ||||||
24 | such a manner and by such a person as would qualify for | ||||||
25 | the credit provided by this subsection (f-1). | ||||||
26 | (3) The basis of qualified property shall be the
basis |
| |||||||
| |||||||
1 | used to compute the depreciation deduction for federal | ||||||
2 | income tax purposes. | ||||||
3 | (4) If the basis of the property for federal income
tax | ||||||
4 | depreciation purposes is increased after it has been placed | ||||||
5 | in service in the Energy Transition Zone by the taxpayer, | ||||||
6 | the amount of such increase shall be deemed property placed | ||||||
7 | in service on the date of such increase in basis. | ||||||
8 | (5) The term "placed in service" shall have the same
| ||||||
9 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
10 | (6) If during any taxable year, any property ceases
to | ||||||
11 | be qualified property in the hands of the taxpayer within | ||||||
12 | 48 months after being placed in service, or the situs of | ||||||
13 | any qualified property is moved outside the Energy | ||||||
14 | Transition Zone within 48 months after being placed in | ||||||
15 | service, the tax imposed under subsections (a) and (b) of | ||||||
16 | this Section for such taxable year shall be increased. Such | ||||||
17 | increase shall be determined by (i) recomputing the | ||||||
18 | investment credit which would have been allowed for the | ||||||
19 | year in which credit for such property was originally | ||||||
20 | allowed by eliminating such property from such | ||||||
21 | computation, and (ii) subtracting such recomputed credit | ||||||
22 | from the amount of credit previously allowed. For the | ||||||
23 | purposes of this paragraph (6), a reduction of the basis of | ||||||
24 | qualified property resulting from a redetermination of the | ||||||
25 | purchase price shall be deemed a disposition of qualified | ||||||
26 | property to the extent of such reduction. |
| |||||||
| |||||||
1 | (g) (Blank). | ||||||
2 | (h) Investment credit; High Impact Business. | ||||||
3 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
4 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
5 | allowed a credit
against the tax imposed by subsections (a) | ||||||
6 | and (b) of this Section for
investment in qualified
| ||||||
7 | property which is placed in service by a Department of | ||||||
8 | Commerce and Economic Opportunity
designated High Impact | ||||||
9 | Business. The credit shall be .5% of the basis
for such | ||||||
10 | property. The credit shall not be available (i) until the | ||||||
11 | minimum
investments in qualified property set forth in | ||||||
12 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
13 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
14 | time authorized in subsection (b-5) of the Illinois
| ||||||
15 | Enterprise Zone Act for entities designated as High Impact | ||||||
16 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
17 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
18 | Act, and shall not be allowed to the extent that it would
| ||||||
19 | reduce a taxpayer's liability for the tax imposed by | ||||||
20 | subsections (a) and (b) of
this Section to below zero. The | ||||||
21 | credit applicable to such investments shall be
taken in the | ||||||
22 | taxable year in which such investments have been completed. | ||||||
23 | The
credit for additional investments beyond the minimum | ||||||
24 | investment by a designated
high impact business authorized | ||||||
25 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
26 | Enterprise Zone Act shall be available only in the taxable |
| |||||||
| |||||||
1 | year in
which the property is placed in service and shall | ||||||
2 | not be allowed to the extent
that it would reduce a | ||||||
3 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
4 | and (b) of this Section to below zero.
For tax years ending | ||||||
5 | on or after December 31, 1987, the credit shall be
allowed | ||||||
6 | for the tax year in which the property is placed in | ||||||
7 | service, or, if
the amount of the credit exceeds the tax | ||||||
8 | liability for that year, whether
it exceeds the original | ||||||
9 | liability or the liability as later amended, such
excess | ||||||
10 | may be carried forward and applied to the tax liability of | ||||||
11 | the 5
taxable years following the excess credit year. The | ||||||
12 | credit shall be
applied to the earliest year for which | ||||||
13 | there is a liability. If there is
credit from more than one | ||||||
14 | tax year that is available to offset a liability,
the | ||||||
15 | credit accruing first in time shall be applied first. | ||||||
16 | Changes made in this subdivision (h)(1) by Public Act | ||||||
17 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
18 | reflect existing law. | ||||||
19 | (2) The term qualified property means property which: | ||||||
20 | (A) is tangible, whether new or used, including | ||||||
21 | buildings and
structural components of buildings; | ||||||
22 | (B) is depreciable pursuant to Section 167 of the | ||||||
23 | Internal Revenue
Code, except that "3-year property" | ||||||
24 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
25 | eligible for the credit provided by this subsection | ||||||
26 | (h); |
| |||||||
| |||||||
1 | (C) is acquired by purchase as defined in Section | ||||||
2 | 179(d) of the
Internal Revenue Code; and | ||||||
3 | (D) is not eligible for the Enterprise Zone | ||||||
4 | Investment Credit provided
by subsection (f) of this | ||||||
5 | Section. | ||||||
6 | (3) The basis of qualified property shall be the basis | ||||||
7 | used to compute
the depreciation deduction for federal | ||||||
8 | income tax purposes. | ||||||
9 | (4) If the basis of the property for federal income tax | ||||||
10 | depreciation
purposes is increased after it has been placed | ||||||
11 | in service in a federally
designated Foreign Trade Zone or | ||||||
12 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
13 | such increase shall be deemed property placed in service on
| ||||||
14 | the date of such increase in basis. | ||||||
15 | (5) The term "placed in service" shall have the same | ||||||
16 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
17 | (6) If during any taxable year ending on or before | ||||||
18 | December 31, 1996,
any property ceases to be qualified
| ||||||
19 | property in the hands of the taxpayer within 48 months | ||||||
20 | after being placed
in service, or the situs of any | ||||||
21 | qualified property is moved outside
Illinois within 48 | ||||||
22 | months after being placed in service, the tax imposed
under | ||||||
23 | subsections (a) and (b) of this Section for such taxable | ||||||
24 | year shall
be increased. Such increase shall be determined | ||||||
25 | by (i) recomputing the
investment credit which would have | ||||||
26 | been allowed for the year in which
credit for such property |
| |||||||
| |||||||
1 | was originally allowed by eliminating such
property from | ||||||
2 | such computation, and (ii) subtracting such recomputed | ||||||
3 | credit
from the amount of credit previously allowed. For | ||||||
4 | the purposes of this
paragraph (6), a reduction of the | ||||||
5 | basis of qualified property resulting
from a | ||||||
6 | redetermination of the purchase price shall be deemed a | ||||||
7 | disposition
of qualified property to the extent of such | ||||||
8 | reduction. | ||||||
9 | (7) Beginning with tax years ending after December 31, | ||||||
10 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
11 | subsection (h) and thereby is
granted a tax abatement and | ||||||
12 | the taxpayer relocates its entire facility in
violation of | ||||||
13 | the explicit terms and length of the contract under Section
| ||||||
14 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
15 | subsections
(a) and (b) of this Section shall be increased | ||||||
16 | for the taxable year
in which the taxpayer relocated its | ||||||
17 | facility by an amount equal to the
amount of credit | ||||||
18 | received by the taxpayer under this subsection (h). | ||||||
19 | (i) Credit for Personal Property Tax Replacement Income | ||||||
20 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
21 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
22 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
23 | (d) of this Section. This credit shall be computed by | ||||||
24 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
25 | Section by a fraction, the numerator
of which is base income | ||||||
26 | allocable to Illinois and the denominator of which is
Illinois |
| |||||||
| |||||||
1 | base income, and further multiplying the product by the tax | ||||||
2 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
3 | Any credit earned on or after December 31, 1986 under
this | ||||||
4 | subsection which is unused in the year
the credit is computed | ||||||
5 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
6 | and (b) for that year (whether it exceeds the original
| ||||||
7 | liability or the liability as later amended) may be carried | ||||||
8 | forward and
applied to the tax liability imposed by subsections | ||||||
9 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
10 | year, provided that no credit may
be carried forward to any | ||||||
11 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
12 | applied first to the earliest year for which there is a | ||||||
13 | liability. If
there is a credit under this subsection from more | ||||||
14 | than one tax year that is
available to offset a liability the | ||||||
15 | earliest credit arising under this
subsection shall be applied | ||||||
16 | first. | ||||||
17 | If, during any taxable year ending on or after December 31, | ||||||
18 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
19 | Section for which a taxpayer
has claimed a credit under this | ||||||
20 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
21 | shall also be reduced. Such reduction shall be
determined by | ||||||
22 | recomputing the credit to take into account the reduced tax
| ||||||
23 | imposed by subsections (c) and (d). If any portion of the
| ||||||
24 | reduced amount of credit has been carried to a different | ||||||
25 | taxable year, an
amended return shall be filed for such taxable | ||||||
26 | year to reduce the amount of
credit claimed. |
| |||||||
| |||||||
1 | (j) Training expense credit. Beginning with tax years | ||||||
2 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
3 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
4 | imposed by subsections (a) and (b) under this Section
for all | ||||||
5 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
6 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
7 | of Illinois by a taxpayer, for educational or vocational | ||||||
8 | training in
semi-technical or technical fields or semi-skilled | ||||||
9 | or skilled fields, which
were deducted from gross income in the | ||||||
10 | computation of taxable income. The
credit against the tax | ||||||
11 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
12 | training expenses. For partners, shareholders of subchapter S
| ||||||
13 | corporations, and owners of limited liability companies, if the | ||||||
14 | liability
company is treated as a partnership for purposes of | ||||||
15 | federal and State income
taxation, there shall be allowed a | ||||||
16 | credit under this subsection (j) to be
determined in accordance | ||||||
17 | with the determination of income and distributive
share of | ||||||
18 | income under Sections 702 and 704 and subchapter S of the | ||||||
19 | Internal
Revenue Code. | ||||||
20 | Any credit allowed under this subsection which is unused in | ||||||
21 | the year
the credit is earned may be carried forward to each of | ||||||
22 | the 5 taxable
years following the year for which the credit is | ||||||
23 | first computed until it is
used. This credit shall be applied | ||||||
24 | first to the earliest year for which
there is a liability. If | ||||||
25 | there is a credit under this subsection from more
than one tax | ||||||
26 | year that is available to offset a liability the earliest
|
| |||||||
| |||||||
1 | credit arising under this subsection shall be applied first. No | ||||||
2 | carryforward
credit may be claimed in any tax year ending on or | ||||||
3 | after
December 31, 2003. | ||||||
4 | (k) Research and development credit. For tax years ending | ||||||
5 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
6 | beginning again for tax years ending on or after December 31, | ||||||
7 | 2004, and ending prior to January 1, 2022, a taxpayer shall be
| ||||||
8 | allowed a credit against the tax imposed by subsections (a) and | ||||||
9 | (b) of this
Section for increasing research activities in this | ||||||
10 | State. The credit
allowed against the tax imposed by | ||||||
11 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
12 | qualifying expenditures for increasing research activities
in | ||||||
13 | this State. For partners, shareholders of subchapter S | ||||||
14 | corporations, and
owners of limited liability companies, if the | ||||||
15 | liability company is treated as a
partnership for purposes of | ||||||
16 | federal and State income taxation, there shall be
allowed a | ||||||
17 | credit under this subsection to be determined in accordance | ||||||
18 | with the
determination of income and distributive share of | ||||||
19 | income under Sections 702 and
704 and subchapter S of the | ||||||
20 | Internal Revenue Code. | ||||||
21 | For purposes of this subsection, "qualifying expenditures" | ||||||
22 | means the
qualifying expenditures as defined for the federal | ||||||
23 | credit for increasing
research activities which would be | ||||||
24 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
25 | which are conducted in this State, "qualifying
expenditures for | ||||||
26 | increasing research activities in this State" means the
excess |
| |||||||
| |||||||
1 | of qualifying expenditures for the taxable year in which | ||||||
2 | incurred
over qualifying expenditures for the base period, | ||||||
3 | "qualifying expenditures
for the base period" means the average | ||||||
4 | of the qualifying expenditures for
each year in the base | ||||||
5 | period, and "base period" means the 3 taxable years
immediately | ||||||
6 | preceding the taxable year for which the determination is
being | ||||||
7 | made. | ||||||
8 | Any credit in excess of the tax liability for the taxable | ||||||
9 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
10 | unused credit shown on its final completed return carried over | ||||||
11 | as a credit
against the tax liability for the following 5 | ||||||
12 | taxable years or until it has
been fully used, whichever occurs | ||||||
13 | first; provided that no credit earned in a tax year ending | ||||||
14 | prior to December 31, 2003 may be carried forward to any year | ||||||
15 | ending on or after December 31, 2003. | ||||||
16 | If an unused credit is carried forward to a given year from | ||||||
17 | 2 or more
earlier years, that credit arising in the earliest | ||||||
18 | year will be applied
first against the tax liability for the | ||||||
19 | given year. If a tax liability for
the given year still | ||||||
20 | remains, the credit from the next earliest year will
then be | ||||||
21 | applied, and so on, until all credits have been used or no tax
| ||||||
22 | liability for the given year remains. Any remaining unused | ||||||
23 | credit or
credits then will be carried forward to the next | ||||||
24 | following year in which a
tax liability is incurred, except | ||||||
25 | that no credit can be carried forward to
a year which is more | ||||||
26 | than 5 years after the year in which the expense for
which the |
| |||||||
| |||||||
1 | credit is given was incurred. | ||||||
2 | No inference shall be drawn from this amendatory Act of the | ||||||
3 | 91st General
Assembly in construing this Section for taxable | ||||||
4 | years beginning before January
1, 1999. | ||||||
5 | It is the intent of the General Assembly that the research | ||||||
6 | and development credit under this subsection (k) shall apply | ||||||
7 | continuously for all tax years ending on or after December 31, | ||||||
8 | 2004 and ending prior to January 1, 2022, including, but not | ||||||
9 | limited to, the period beginning on January 1, 2016 and ending | ||||||
10 | on the effective date of this amendatory Act of the 100th | ||||||
11 | General Assembly. All actions taken in reliance on the | ||||||
12 | continuation of the credit under this subsection (k) by any | ||||||
13 | taxpayer are hereby validated. | ||||||
14 | (l) Environmental Remediation Tax Credit. | ||||||
15 | (i) For tax years ending after December 31, 1997 and on | ||||||
16 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
17 | credit against the tax
imposed by subsections (a) and (b) | ||||||
18 | of this Section for certain amounts paid
for unreimbursed | ||||||
19 | eligible remediation costs, as specified in this | ||||||
20 | subsection.
For purposes of this Section, "unreimbursed | ||||||
21 | eligible remediation costs" means
costs approved by the | ||||||
22 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
23 | Section 58.14 of the Environmental Protection Act that were | ||||||
24 | paid in performing
environmental remediation at a site for | ||||||
25 | which a No Further Remediation Letter
was issued by the | ||||||
26 | Agency and recorded under Section 58.10 of the |
| |||||||
| |||||||
1 | Environmental
Protection Act. The credit must be claimed | ||||||
2 | for the taxable year in which
Agency approval of the | ||||||
3 | eligible remediation costs is granted. The credit is
not | ||||||
4 | available to any taxpayer if the taxpayer or any related | ||||||
5 | party caused or
contributed to, in any material respect, a | ||||||
6 | release of regulated substances on,
in, or under the site | ||||||
7 | that was identified and addressed by the remedial
action | ||||||
8 | pursuant to the Site Remediation Program of the | ||||||
9 | Environmental Protection
Act. After the Pollution Control | ||||||
10 | Board rules are adopted pursuant to the
Illinois | ||||||
11 | Administrative Procedure Act for the administration and | ||||||
12 | enforcement of
Section 58.9 of the Environmental | ||||||
13 | Protection Act, determinations as to credit
availability | ||||||
14 | for purposes of this Section shall be made consistent with | ||||||
15 | those
rules. For purposes of this Section, "taxpayer" | ||||||
16 | includes a person whose tax
attributes the taxpayer has | ||||||
17 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
18 | and "related party" includes the persons disallowed a | ||||||
19 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
20 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
21 | a related taxpayer, as well as any of its
partners. The | ||||||
22 | credit allowed against the tax imposed by subsections (a) | ||||||
23 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
24 | remediation costs in
excess of $100,000 per site, except | ||||||
25 | that the $100,000 threshold shall not apply
to any site | ||||||
26 | contained in an enterprise zone as determined by the |
| |||||||
| |||||||
1 | Department of
Commerce and Community Affairs (now | ||||||
2 | Department of Commerce and Economic Opportunity). The | ||||||
3 | total credit allowed shall not exceed
$40,000 per year with | ||||||
4 | a maximum total of $150,000 per site. For partners and
| ||||||
5 | shareholders of subchapter S corporations, there shall be | ||||||
6 | allowed a credit
under this subsection to be determined in | ||||||
7 | accordance with the determination of
income and | ||||||
8 | distributive share of income under Sections 702 and 704 and
| ||||||
9 | subchapter S of the Internal Revenue Code. | ||||||
10 | (ii) 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.
The | ||||||
14 | term "unused credit" does not include any amounts of | ||||||
15 | unreimbursed eligible
remediation costs in excess of the | ||||||
16 | maximum credit per site authorized under
paragraph (i). | ||||||
17 | This credit shall be applied first to the earliest year
for | ||||||
18 | which there is a liability. If there is a credit under this | ||||||
19 | subsection
from more than one tax year that is available to | ||||||
20 | offset a liability, the
earliest credit arising under this | ||||||
21 | subsection shall be applied first. A
credit allowed under | ||||||
22 | this subsection may be sold to a buyer as part of a sale
of | ||||||
23 | all or part of the remediation site for which the credit | ||||||
24 | was granted. The
purchaser of a remediation site and the | ||||||
25 | tax credit shall succeed to the unused
credit and remaining | ||||||
26 | carry-forward period of the seller. To perfect the
|
| |||||||
| |||||||
1 | transfer, the assignor shall record the transfer in the | ||||||
2 | chain of title for the
site and provide written notice to | ||||||
3 | the Director of the Illinois Department of
Revenue of the | ||||||
4 | assignor's intent to sell the remediation site and the | ||||||
5 | amount of
the tax credit to be transferred as a portion of | ||||||
6 | the sale. In no event may a
credit be transferred to any | ||||||
7 | taxpayer if the taxpayer or a related party would
not be | ||||||
8 | eligible under the provisions of subsection (i). | ||||||
9 | (iii) For purposes of this Section, the term "site" | ||||||
10 | shall have the same
meaning as under Section 58.2 of the | ||||||
11 | Environmental Protection Act. | ||||||
12 | (m) Education expense credit. Beginning with tax years | ||||||
13 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
14 | of one or more qualifying pupils shall be allowed a credit
| ||||||
15 | against the tax imposed by subsections (a) and (b) of this | ||||||
16 | Section for
qualified education expenses incurred on behalf of | ||||||
17 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
18 | qualified education expenses, but in no
event may the total | ||||||
19 | credit under this subsection claimed by a
family that is the
| ||||||
20 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
21 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
22 | ending on or after December 31, 2017. In no event shall a | ||||||
23 | credit under
this subsection reduce the taxpayer's liability | ||||||
24 | under this Act to less than
zero. Notwithstanding any other | ||||||
25 | provision of law, for taxable years beginning on or after | ||||||
26 | January 1, 2017, no taxpayer may claim a credit under this |
| |||||||
| |||||||
1 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
2 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
3 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
4 | of all other taxpayers. This subsection is exempt from the | ||||||
5 | provisions of Section 250 of this
Act. | ||||||
6 | For purposes of this subsection: | ||||||
7 | "Qualifying pupils" means individuals who (i) are | ||||||
8 | residents of the State of
Illinois, (ii) are under the age of | ||||||
9 | 21 at the close of the school year for
which a credit is | ||||||
10 | sought, and (iii) during the school year for which a credit
is | ||||||
11 | sought were full-time pupils enrolled in a kindergarten through | ||||||
12 | twelfth
grade education program at any school, as defined in | ||||||
13 | this subsection. | ||||||
14 | "Qualified education expense" means the amount incurred
on | ||||||
15 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
16 | book fees, and
lab fees at the school in which the pupil is | ||||||
17 | enrolled during the regular school
year. | ||||||
18 | "School" means any public or nonpublic elementary or | ||||||
19 | secondary school in
Illinois that is in compliance with Title | ||||||
20 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
21 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
22 | except that nothing shall be construed to require a child to
| ||||||
23 | attend any particular public or nonpublic school to qualify for | ||||||
24 | the credit
under this Section. | ||||||
25 | "Custodian" means, with respect to qualifying pupils, an | ||||||
26 | Illinois resident
who is a parent, the parents, a legal |
| |||||||
| |||||||
1 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
2 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
3 | credit.
| ||||||
4 | (i) For tax years ending on or after December 31, 2006, | ||||||
5 | a taxpayer shall be allowed a credit against the tax | ||||||
6 | imposed by subsections (a) and (b) of this Section for | ||||||
7 | certain amounts paid for unreimbursed eligible remediation | ||||||
8 | costs, as specified in this subsection. For purposes of | ||||||
9 | this Section, "unreimbursed eligible remediation costs" | ||||||
10 | means costs approved by the Illinois Environmental | ||||||
11 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
12 | Environmental Protection Act that were paid in performing | ||||||
13 | environmental remediation at a site within a River Edge | ||||||
14 | Redevelopment Zone for which a No Further Remediation | ||||||
15 | Letter was issued by the Agency and recorded under Section | ||||||
16 | 58.10 of the Environmental Protection Act. The credit must | ||||||
17 | be claimed for the taxable year in which Agency approval of | ||||||
18 | the eligible remediation costs is granted. The credit is | ||||||
19 | not available to any taxpayer if the taxpayer or any | ||||||
20 | related party caused or contributed to, in any material | ||||||
21 | respect, a release of regulated substances on, in, or under | ||||||
22 | the site that was identified and addressed by the remedial | ||||||
23 | action pursuant to the Site Remediation Program of the | ||||||
24 | Environmental Protection Act. Determinations as to credit | ||||||
25 | availability for purposes of this Section shall be made | ||||||
26 | consistent with rules adopted by the Pollution Control |
| |||||||
| |||||||
1 | Board pursuant to the Illinois Administrative Procedure | ||||||
2 | Act for the administration and enforcement of Section 58.9 | ||||||
3 | of the Environmental Protection Act. For purposes of this | ||||||
4 | Section, "taxpayer" includes a person whose tax attributes | ||||||
5 | the taxpayer has succeeded to under Section 381 of the | ||||||
6 | Internal Revenue Code and "related party" includes the | ||||||
7 | persons disallowed a deduction for losses by paragraphs | ||||||
8 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
9 | Code by virtue of being a related taxpayer, as well as any | ||||||
10 | of its partners. The credit allowed against the tax imposed | ||||||
11 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
12 | unreimbursed eligible remediation costs in excess of | ||||||
13 | $100,000 per site. | ||||||
14 | (ii) A credit allowed under this subsection that is | ||||||
15 | unused in the year the credit is earned may be carried | ||||||
16 | forward to each of the 5 taxable years following the year | ||||||
17 | for which the credit is first earned until it is used. This | ||||||
18 | credit shall be applied first to the earliest year for | ||||||
19 | which there is a liability. If there is a credit under this | ||||||
20 | subsection from more than one tax year that is available to | ||||||
21 | offset a liability, the earliest credit arising under this | ||||||
22 | subsection shall be applied first. A credit allowed under | ||||||
23 | this subsection may be sold to a buyer as part of a sale of | ||||||
24 | all or part of the remediation site for which the credit | ||||||
25 | was granted. The purchaser of a remediation site and the | ||||||
26 | tax credit shall succeed to the unused credit and remaining |
| |||||||
| |||||||
1 | carry-forward period of the seller. To perfect the | ||||||
2 | transfer, the assignor shall record the transfer in the | ||||||
3 | chain of title for the site and provide written notice to | ||||||
4 | the Director of the Illinois Department of Revenue of the | ||||||
5 | assignor's intent to sell the remediation site and the | ||||||
6 | amount of the tax credit to be transferred as a portion of | ||||||
7 | the sale. In no event may a credit be transferred to any | ||||||
8 | taxpayer if the taxpayer or a related party would not be | ||||||
9 | eligible under the provisions of subsection (i). | ||||||
10 | (iii) For purposes of this Section, the term "site" | ||||||
11 | shall have the same meaning as under Section 58.2 of the | ||||||
12 | Environmental Protection Act. | ||||||
13 | (o) For each of taxable years during the Compassionate Use | ||||||
14 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
15 | all taxpayers on income arising from the sale or exchange of | ||||||
16 | capital assets, depreciable business property, real property | ||||||
17 | used in the trade or business, and Section 197 intangibles of | ||||||
18 | an organization registrant under the Compassionate Use of | ||||||
19 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
20 | is equal to the amount of federal income tax liability for the | ||||||
21 | taxable year attributable to those sales and exchanges. The | ||||||
22 | surcharge imposed does not apply if: | ||||||
23 | (1) the medical cannabis cultivation center | ||||||
24 | registration, medical cannabis dispensary registration, or | ||||||
25 | the property of a registration is transferred as a result | ||||||
26 | of any of the following: |
| |||||||
| |||||||
1 | (A) bankruptcy, a receivership, or a debt | ||||||
2 | adjustment initiated by or against the initial | ||||||
3 | registration or the substantial owners of the initial | ||||||
4 | registration; | ||||||
5 | (B) cancellation, revocation, or termination of | ||||||
6 | any registration by the Illinois Department of Public | ||||||
7 | Health; | ||||||
8 | (C) a determination by the Illinois Department of | ||||||
9 | Public Health that transfer of the registration is in | ||||||
10 | the best interests of Illinois qualifying patients as | ||||||
11 | defined by the Compassionate Use of Medical Cannabis | ||||||
12 | Pilot Program Act; | ||||||
13 | (D) the death of an owner of the equity interest in | ||||||
14 | a registrant; | ||||||
15 | (E) the acquisition of a controlling interest in | ||||||
16 | the stock or substantially all of the assets of a | ||||||
17 | publicly traded company; | ||||||
18 | (F) a transfer by a parent company to a wholly | ||||||
19 | owned subsidiary; or | ||||||
20 | (G) the transfer or sale to or by one person to | ||||||
21 | another person where both persons were initial owners | ||||||
22 | of the registration when the registration was issued; | ||||||
23 | or | ||||||
24 | (2) the cannabis cultivation center registration, | ||||||
25 | medical cannabis dispensary registration, or the | ||||||
26 | controlling interest in a registrant's property is |
| |||||||
| |||||||
1 | transferred in a transaction to lineal descendants in which | ||||||
2 | no gain or loss is recognized or as a result of a | ||||||
3 | transaction in accordance with Section 351 of the Internal | ||||||
4 | Revenue Code in which no gain or loss is recognized. | ||||||
5 | (Source: P.A. 100-22, eff. 7-6-17.) | ||||||
6 | Section 10-20. The Retailers' Occupation Tax Act is amended | ||||||
7 | by adding Section 5k-1 as follows: | ||||||
8 | (35 ILCS 120/5k-1 new) | ||||||
9 | Sec. 5k-1. Building materials exemption; Energy Transition | ||||||
10 | Zone. | ||||||
11 | (a) Each retailer who makes a qualified sale of building | ||||||
12 | materials to be incorporated into a green energy project, as | ||||||
13 | defined in the Energy Transition Zone Act, being built by a | ||||||
14 | green energy enterprise in an Energy Transition Zone | ||||||
15 | established by or municipality under the Illinois Energy | ||||||
16 | Transition Zone Act by remodeling, rehabilitation or new | ||||||
17 | construction, may deduct receipts from such sales when | ||||||
18 | calculating the tax imposed by this Act. For purposes of this | ||||||
19 | Section, "qualified sale" means a sale of building materials | ||||||
20 | that will be incorporated into real estate as part of a | ||||||
21 | building project for which an Energy Transition Zone Building | ||||||
22 | Materials Exemption Certificate has been issued to the | ||||||
23 | purchaser by the Department. A construction contractor or other | ||||||
24 | entity shall not make tax-free purchases unless it has an |
| |||||||
| |||||||
1 | active Energy Transition Zone Building Materials Exemption | ||||||
2 | Certificate issued by the Department at the time of the | ||||||
3 | purchase. | ||||||
4 | (b) To document the exemption allowed under this Section, | ||||||
5 | the retailer must obtain from the purchaser the certification | ||||||
6 | required under subsection (c), which must contain the Energy | ||||||
7 | Transition Zone Building Materials Exemption Certificate | ||||||
8 | number issued to the purchaser by the Department. Upon request | ||||||
9 | from the Energy Transition Zone Administrator, the Department | ||||||
10 | shall issue an Energy Transition Zone Building Materials | ||||||
11 | Exemption Certificate for each construction contractor or | ||||||
12 | other entity identified by the Energy Transition Zone | ||||||
13 | Administrator. The Department shall make the Energy Transition | ||||||
14 | Zone Building Materials Exemption Certificates available | ||||||
15 | directly to each Energy Transition Zone Administrator, | ||||||
16 | construction contractor, or other entity. The request for | ||||||
17 | Energy Transition Zone Building Materials Exemption | ||||||
18 | Certificates from the Energy Transition Zone Administrator to | ||||||
19 | the Department must include the following information: | ||||||
20 | (1) the name and address of the construction contractor | ||||||
21 | or other entity; | ||||||
22 | (2) the name and number of the Energy Transition Zone; | ||||||
23 | (3) the name and location or address of the green | ||||||
24 | energy | ||||||
25 | (4) the estimated amount of the exemption for each
| ||||||
26 | construction contractor or other entity for which a request |
| |||||||
| |||||||
1 | for Energy Transition Zone Building Materials Exemption | ||||||
2 | Certificate is made, based on a stated estimated average | ||||||
3 | tax rate and the percentage of the contract that consists | ||||||
4 | of materials; | ||||||
5 | (5) the period of time over which supplies for the
| ||||||
6 | project are expected to be purchased; and | ||||||
7 | (6) other reasonable information as the Department
may | ||||||
8 | require, including, but not limited to FEIN numbers, to | ||||||
9 | determine if the contractor or other entity, or any | ||||||
10 | partner, or a corporate officer, and in the case of a | ||||||
11 | limited liability company, any manager or member, of the | ||||||
12 | construction contractor or other entity, is or has been the | ||||||
13 | owner, a partner, a corporate officer, and in the case of a | ||||||
14 | limited liability company, a manager or member, of a person | ||||||
15 | that is in default for moneys due to the Department under | ||||||
16 | this Act or any other tax or fee Act administered by the | ||||||
17 | Department | ||||||
18 | The Department shall issue the Energy Transition Zone | ||||||
19 | Building Materials Exemption Certificates within 3 business | ||||||
20 | days after receipt of request from the Zone Administrator. This | ||||||
21 | requirement does not apply in circumstances where the | ||||||
22 | Department, for reasonable cause, is unable to issue the Energy | ||||||
23 | Transition Zone Building Materials Exemption Certificate | ||||||
24 | within 3 business days. The Department may refuse to issue an | ||||||
25 | Energy Transition Zone Building Materials Exemption | ||||||
26 | Certificate if the owner, any partner, or a corporate officer, |
| |||||||
| |||||||
1 | and in the case of a limited liability company, any manager or | ||||||
2 | member, of the construction contractor or other entity is or | ||||||
3 | has been the owner, a partner, a corporate officer, and in the | ||||||
4 | case of a limited liability company, a manager or member, of a | ||||||
5 | person that is in default for moneys due to the Department | ||||||
6 | under this Act or any other tax or fee Act administered by the | ||||||
7 | Department. The Energy Transition Zone Building Materials | ||||||
8 | Exemption Certificate shall contain language stating that if | ||||||
9 | the construction contractor or other entity who is issued the | ||||||
10 | Energy Transition Zone Building Materials Exemption | ||||||
11 | Certificate makes a tax-exempt purchase, as described in this | ||||||
12 | Section, that is not eligible for exemption under this Section | ||||||
13 | or allows another person to make a tax-exempt purchase, as | ||||||
14 | described in this Section, that is not eligible for exemption | ||||||
15 | under this Section, then, in addition to any tax or other | ||||||
16 | penalty imposed, the construction contractor or other entity is | ||||||
17 | subject to a penalty equal to the tax that would have been paid | ||||||
18 | by the retailer under this Act as well as any applicable local | ||||||
19 | retailers' occupation tax on the purchase that is not eligible | ||||||
20 | for the exemption. | ||||||
21 | The Department, in its discretion, may require that the | ||||||
22 | request for Energy Transition Zone Building Materials | ||||||
23 | Exemption Certificates be submitted electronically. The | ||||||
24 | Department may, in its discretion, issue the Energy Transition | ||||||
25 | Zone Building Materials Exemption Certificates electronically. | ||||||
26 | The Energy Transition Zone Building Materials Exemption |
| |||||||
| |||||||
1 | Certificate number shall be designed in such a way that the | ||||||
2 | Department can identify from the unique number on the Energy | ||||||
3 | Transition Zone Building Materials Exemption Certificate | ||||||
4 | issued to a given construction contractor or other entity, the | ||||||
5 | name of the Energy Transition Zone, the project for which the | ||||||
6 | Energy Transition Zone Building Materials Exemption | ||||||
7 | Certificate is issued, and the construction contractor or other | ||||||
8 | entity to whom the Energy Transition Zone Building Materials | ||||||
9 | Exemption Certificate is issued. The Energy Transition Zone | ||||||
10 | Building Materials Exemption Certificate shall contain an | ||||||
11 | expiration date, which shall be no more than 2 years after the | ||||||
12 | date of issuance. At the request of the Zone Administrator, the | ||||||
13 | Department may renew an Energy Transition Zone Building | ||||||
14 | Materials Exemption Certificate. After the Department issues | ||||||
15 | Energy Transition Zone Building Materials Exemption | ||||||
16 | Certificates for a given Energy Transition Zone project, the | ||||||
17 | Energy Transition Zone Administrator may notify the Department | ||||||
18 | of additional construction contractors or other entities | ||||||
19 | eligible for an Energy Transition Zone Building Materials | ||||||
20 | Exemption Certificate. Upon notification by the Energy | ||||||
21 | Transition Zone Administrator and subject to the other | ||||||
22 | provisions of this subsection (b), the Department shall issue | ||||||
23 | an Energy Transition Zone Building Materials Exemption | ||||||
24 | Certificate to each additional construction contractor or | ||||||
25 | other entity identified by the Energy Transition Zone | ||||||
26 | Administrator. An Energy Transition Zone Administrator may |
| |||||||
| |||||||
1 | notify the Department to rescind an Energy Transition Zone | ||||||
2 | Building Materials Exemption Certificate previously issued by | ||||||
3 | the Department but that has not yet expired. Upon notification | ||||||
4 | by the Energy Transition Zone Administrator and subject to the | ||||||
5 | other provisions of this subsection (b), the Department shall | ||||||
6 | issue the rescission of the Energy Transition Zone Building | ||||||
7 | Materials Exemption Certificate to the construction contractor | ||||||
8 | or other entity identified by the Energy Transition Zone | ||||||
9 | Administrator and provide a copy to the Energy Transition Zone | ||||||
10 | Administrator. | ||||||
11 | If the Department of Revenue determines that a construction | ||||||
12 | contractor or other entity that was issued an Energy Transition | ||||||
13 | Zone Building Materials Exemption Certificate under this | ||||||
14 | subsection (b) made a tax-exempt purchase, as described in this | ||||||
15 | Section, that was not eligible for exemption under this Section | ||||||
16 | or allowed another person to make a tax-exempt purchase, as | ||||||
17 | described in this Section, that was not eligible for exemption | ||||||
18 | under this Section, then, in addition to any tax or other | ||||||
19 | penalty imposed, the construction contractor or other entity is | ||||||
20 | subject to a penalty equal to the tax that would have been paid | ||||||
21 | by the retailer under this Act as well as any applicable local | ||||||
22 | retailers' occupation tax on the purchase that was not eligible | ||||||
23 | for the exemption. | ||||||
24 | (c) In addition, the retailer must obtain certification | ||||||
25 | from the purchaser that contains: | ||||||
26 | (1) a statement that the building materials are being |
| |||||||
| |||||||
1 | purchased for incorporation into a green energy project | ||||||
2 | located in an Illinois Energy Transition Zone; | ||||||
3 | (2) the location or address of the real estate into
| ||||||
4 | which the building materials will be incorporated; | ||||||
5 | (3) the name of the Energy Transition Zone in which | ||||||
6 | that real estate is located; | ||||||
7 | (4) a description of the building materials being
| ||||||
8 | purchased; | ||||||
9 | (5) the purchaser's
Energy Transition Zone Building | ||||||
10 | Materials Exemption Certificate number issued by the | ||||||
11 | Department; and | ||||||
12 | (6) the purchaser's signature and date of purchase. | ||||||
13 | (d) The deduction allowed by this Section for the sale of | ||||||
14 | building materials may be limited, to the extent authorized by | ||||||
15 | ordinance by the municipality or county that created the Energy | ||||||
16 | Transition 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 | Section 10-25. The Illinois Municipal Code is amended by | ||||||
23 | changing Section 8-11-2 as follows:
| ||||||
24 | (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
|
| |||||||
| |||||||
1 | Sec. 8-11-2. The corporate authorities of any municipality | ||||||
2 | may tax any or
all of the following occupations or privileges:
| ||||||
3 | 1. (Blank).
| ||||||
4 | 2. Persons engaged in the business of distributing, | ||||||
5 | supplying,
furnishing, or selling gas for use or | ||||||
6 | consumption within the corporate
limits of a municipality | ||||||
7 | of 500,000 or fewer population, and not for resale,
at a | ||||||
8 | rate not to exceed 5% of the gross receipts therefrom.
| ||||||
9 | 2a. Persons engaged in the business of distributing, | ||||||
10 | supplying,
furnishing, or selling gas for use or | ||||||
11 | consumption within the corporate limits
of a municipality | ||||||
12 | of over 500,000 population, and not for resale, at a rate
| ||||||
13 | not to exceed 8% of the gross receipts therefrom. If | ||||||
14 | imposed, this tax shall
be paid in monthly payments.
| ||||||
15 | 3. The privilege of using or consuming
electricity | ||||||
16 | acquired in a purchase at retail and used or
consumed | ||||||
17 | within the corporate limits of the municipality at
rates | ||||||
18 | not to exceed the following maximum rates, calculated on
a | ||||||
19 | monthly basis for each purchaser:
| ||||||
20 | (i) For the first 2,000 kilowatt-hours used or | ||||||
21 | consumed in a month; 0.61
cents per kilowatt-hour;
| ||||||
22 | (ii) For the next 48,000 kilowatt-hours used or | ||||||
23 | consumed in a month; 0.40
cents per kilowatt-hour;
| ||||||
24 | (iii) For the next 50,000 kilowatt-hours used or | ||||||
25 | consumed in a month;
0.36 cents per kilowatt-hour;
| ||||||
26 | (iv) For the next 400,000 kilowatt-hours used or |
| |||||||
| |||||||
1 | consumed in a month;
0.35 cents per kilowatt-hour;
| ||||||
2 | (v) For the next 500,000 kilowatt-hours used or | ||||||
3 | consumed in a month;
0.34 cents per kilowatt-hour;
| ||||||
4 | (vi) For the next 2,000,000 kilowatt-hours used or | ||||||
5 | consumed in a month;
0.32 cents per kilowatt-hour;
| ||||||
6 | (vii) For the next 2,000,000 kilowatt-hours used | ||||||
7 | or consumed in a month;
0.315 cents per kilowatt-hour;
| ||||||
8 | (viii) For the next 5,000,000 kilowatt-hours used | ||||||
9 | or consumed in a month;
0.31 cents per kilowatt-hour;
| ||||||
10 | (ix) For the next 10,000,000 kilowatt-hours used | ||||||
11 | or consumed in a month;
0.305 cents per kilowatt-hour; | ||||||
12 | and
| ||||||
13 | (x) For all electricity used or consumed in excess | ||||||
14 | of 20,000,000
kilowatt-hours in a month, 0.30 cents per | ||||||
15 | kilowatt-hour.
| ||||||
16 | If a municipality imposes a tax at rates lower than | ||||||
17 | either the maximum
rates specified in this Section or the | ||||||
18 | alternative maximum rates promulgated
by the Illinois | ||||||
19 | Commerce Commission, as provided below, the tax rates shall
| ||||||
20 | be imposed upon the kilowatt hour categories set forth | ||||||
21 | above with the same
proportional relationship as that which | ||||||
22 | exists among such maximum rates.
Notwithstanding the | ||||||
23 | foregoing, until December 31, 2008, no municipality shall
| ||||||
24 | establish rates that are in excess of rates reasonably | ||||||
25 | calculated to produce
revenues that equal the maximum total | ||||||
26 | revenues such municipality could have
received under the |
| |||||||
| |||||||
1 | tax authorized by this subparagraph in the last full
| ||||||
2 | calendar year prior to August 1, 1998 (the effective date | ||||||
3 | of Section 65 of Public Act 90-561); provided that this | ||||||
4 | shall not be a limitation on the amount of tax
revenues | ||||||
5 | actually collected by such municipality.
| ||||||
6 | Upon the request of the corporate authorities
of a | ||||||
7 | municipality, the Illinois Commerce Commission shall,
| ||||||
8 | within 90 days after receipt of such request, promulgate
| ||||||
9 | alternative rates for each of these kilowatt-hour | ||||||
10 | categories
that will reflect, as closely as reasonably | ||||||
11 | practical for that municipality,
the distribution of the | ||||||
12 | tax among classes of purchasers as if the tax
were based on | ||||||
13 | a uniform percentage of the purchase price of electricity.
| ||||||
14 | A municipality that has adopted an ordinance imposing a tax | ||||||
15 | pursuant to
subparagraph 3 as it existed prior to August 1, | ||||||
16 | 1998 (the effective date of Section 65 of Public Act | ||||||
17 | 90-561) may, rather than imposing the tax permitted by | ||||||
18 | Public Act 90-561, continue to impose the tax pursuant to | ||||||
19 | that ordinance
with respect to gross receipts received from | ||||||
20 | residential
customers through July 31, 1999, and with | ||||||
21 | respect to gross receipts from
any non-residential | ||||||
22 | customer until the first bill issued to such customer for
| ||||||
23 | delivery services in accordance with Section 16-104 of the | ||||||
24 | Public Utilities Act
but in no case later than the last | ||||||
25 | bill issued to such customer before
December 31, 2000. No | ||||||
26 | ordinance imposing the tax permitted by Public Act 90-561 |
| |||||||
| |||||||
1 | shall be applicable to any non-residential customer until | ||||||
2 | the first
bill issued to such customer for delivery | ||||||
3 | services in
accordance with Section 16-104 of the Public | ||||||
4 | Utilities Act but in no case later
than the last bill | ||||||
5 | issued to such non-residential customer
before December | ||||||
6 | 31, 2000.
| ||||||
7 | 4. Persons engaged in the business of distributing, | ||||||
8 | supplying,
furnishing, or selling water for use or | ||||||
9 | consumption within the corporate
limits of the | ||||||
10 | municipality, and not for resale, at a rate not to exceed | ||||||
11 | 5%
of the gross receipts therefrom.
| ||||||
12 | None of the taxes authorized by this Section may be imposed | ||||||
13 | with respect
to any transaction in interstate commerce or | ||||||
14 | otherwise to the extent to
which the business or privilege may | ||||||
15 | not, under the constitution and statutes
of the United States, | ||||||
16 | be made the subject of taxation by this State or any
political | ||||||
17 | sub-division thereof; nor shall any persons engaged in the | ||||||
18 | business
of distributing, supplying, furnishing, selling or | ||||||
19 | transmitting gas, water,
or electricity, or using or consuming | ||||||
20 | electricity acquired in a purchase at
retail, be subject to | ||||||
21 | taxation under the provisions of this Section for those
| ||||||
22 | transactions that are or may become subject to taxation under | ||||||
23 | the provisions
of the Municipal Retailers' Occupation Tax Act | ||||||
24 | authorized by Section 8-11-1;
nor shall any tax authorized by | ||||||
25 | this Section be imposed upon any person engaged
in a business | ||||||
26 | or on any privilege unless the tax is imposed in like manner |
| |||||||
| |||||||
1 | and
at the same rate upon all persons engaged in businesses of | ||||||
2 | the same class in
the municipality, whether privately or | ||||||
3 | municipally owned or operated, or
exercising the same privilege | ||||||
4 | within the municipality.
| ||||||
5 | Any of the taxes enumerated in this Section may be in | ||||||
6 | addition to the
payment of money, or value of products or | ||||||
7 | services furnished to the
municipality by the taxpayer as | ||||||
8 | compensation for the use of its streets,
alleys, or other | ||||||
9 | public places, or installation and maintenance therein,
| ||||||
10 | thereon or thereunder of poles, wires, pipes, or other | ||||||
11 | equipment used in the
operation of the taxpayer's business.
| ||||||
12 | (a) If the corporate authorities of any home rule | ||||||
13 | municipality have adopted
an ordinance that imposed a tax on | ||||||
14 | public utility customers, between July 1,
1971, and October 1, | ||||||
15 | 1981, on the good faith belief that they were exercising
| ||||||
16 | authority pursuant to Section 6 of Article VII of the 1970 | ||||||
17 | Illinois
Constitution, that action of the corporate | ||||||
18 | authorities shall be declared legal
and valid, notwithstanding | ||||||
19 | a later decision of a judicial tribunal declaring
the ordinance | ||||||
20 | invalid. No municipality shall be required to rebate, refund, | ||||||
21 | or
issue credits for any taxes described in this paragraph, and | ||||||
22 | those taxes shall
be deemed to have been levied and collected | ||||||
23 | in accordance with the Constitution
and laws of this State.
| ||||||
24 | (b) In any case in which (i) prior to October 19, 1979, the | ||||||
25 | corporate
authorities of any municipality have adopted an | ||||||
26 | ordinance imposing a tax
authorized by this Section (or by the |
| |||||||
| |||||||
1 | predecessor provision of the Revised
Cities and Villages Act) | ||||||
2 | and have explicitly or in practice interpreted gross
receipts | ||||||
3 | to include either charges added to customers' bills pursuant to | ||||||
4 | the
provision of paragraph (a) of Section 36 of the Public | ||||||
5 | Utilities Act or charges
added to customers' bills by taxpayers | ||||||
6 | who are not subject to rate regulation
by the Illinois Commerce | ||||||
7 | Commission for the purpose of recovering any of the
tax | ||||||
8 | liabilities or other amounts specified in such paragraph (a) of | ||||||
9 | Section 36
of that Act, and (ii) on or after October 19, 1979, | ||||||
10 | a judicial tribunal has
construed gross receipts to exclude all | ||||||
11 | or part of those charges, then neither that
municipality nor | ||||||
12 | any taxpayer who paid the tax shall be required to
rebate, | ||||||
13 | refund, or issue credits for any tax imposed or charge | ||||||
14 | collected from
customers pursuant to the municipality's | ||||||
15 | interpretation prior to October 19,
1979. This paragraph | ||||||
16 | reflects a legislative finding that it would be contrary
to the | ||||||
17 | public interest to require a municipality or its taxpayers to | ||||||
18 | refund
taxes or charges attributable to the municipality's more | ||||||
19 | inclusive
interpretation of gross receipts prior to October 19, | ||||||
20 | 1979, and is not
intended to prescribe or limit judicial | ||||||
21 | construction of this Section. The
legislative finding set forth | ||||||
22 | in this subsection does not apply to taxes
imposed after | ||||||
23 | January 1, 1996 (the effective date of Public Act 89-325).
| ||||||
24 | (c) The tax authorized by subparagraph 3 shall be
collected | ||||||
25 | from the purchaser by the person maintaining a
place of | ||||||
26 | business in this State who delivers the electricity
to the |
| |||||||
| |||||||
1 | purchaser. This tax shall constitute a debt of the
purchaser to | ||||||
2 | the person who delivers the electricity to the
purchaser and if | ||||||
3 | unpaid, is recoverable in the same manner as
the original | ||||||
4 | charge for delivering the electricity. Any tax
required to be | ||||||
5 | collected pursuant to an ordinance authorized
by subparagraph 3 | ||||||
6 | and any such tax collected by a person
delivering electricity | ||||||
7 | shall constitute a debt owed to the
municipality by such person | ||||||
8 | delivering the electricity, provided, that the
person | ||||||
9 | delivering electricity shall be allowed credit for such tax | ||||||
10 | related to
deliveries of electricity the charges for which are | ||||||
11 | written off as
uncollectible, and provided further, that if | ||||||
12 | such charges are thereafter
collected, the delivering supplier | ||||||
13 | shall be obligated to remit such tax. For
purposes of this | ||||||
14 | subsection (c), any partial payment not specifically
| ||||||
15 | identified by the purchaser shall be deemed to be for the | ||||||
16 | delivery of
electricity. Persons delivering electricity shall | ||||||
17 | collect the tax from the
purchaser by adding such tax to the | ||||||
18 | gross charge for
delivering the electricity, in the manner | ||||||
19 | prescribed by the
municipality. Persons delivering electricity | ||||||
20 | shall also be
authorized to add to such gross charge an amount | ||||||
21 | equal to 3%
of the tax to reimburse the person delivering
| ||||||
22 | electricity for the expenses incurred in keeping records,
| ||||||
23 | billing customers, preparing and filing returns, remitting the
| ||||||
24 | tax and supplying data to the municipality upon request. If
the | ||||||
25 | person delivering electricity fails to collect the tax
from the | ||||||
26 | purchaser, then the purchaser shall be required to
pay the tax |
| |||||||
| |||||||
1 | directly to the municipality in the manner
prescribed by the | ||||||
2 | municipality. Persons delivering
electricity who file returns | ||||||
3 | pursuant to this paragraph (c)
shall, at the time of filing | ||||||
4 | such return, pay the municipality
the amount of the tax | ||||||
5 | collected pursuant to subparagraph 3.
| ||||||
6 | (d) For the purpose of the taxes enumerated in this | ||||||
7 | Section:
| ||||||
8 | "Gross receipts" means the consideration received for | ||||||
9 | distributing, supplying,
furnishing or selling gas for use or | ||||||
10 | consumption and not for resale, and the
consideration received | ||||||
11 | for distributing, supplying, furnishing or selling
water for | ||||||
12 | use or consumption and not for resale, and for all services
| ||||||
13 | rendered in connection therewith valued in money, whether | ||||||
14 | received in money
or otherwise, including cash, credit, | ||||||
15 | services and property of every kind
and material and for all | ||||||
16 | services rendered therewith, and shall be
determined without | ||||||
17 | any deduction on account of the cost of the service,
product or | ||||||
18 | commodity supplied, the cost of materials used, labor or | ||||||
19 | service
cost, or any other expenses whatsoever. "Gross | ||||||
20 | receipts" shall not include
that portion of the consideration | ||||||
21 | received for distributing, supplying,
furnishing, or selling | ||||||
22 | gas or water to business enterprises or green energy | ||||||
23 | enterprises described in
paragraph (e) of this Section to the | ||||||
24 | extent and during the period in which the
exemption authorized | ||||||
25 | by paragraph (e) is in effect or for school districts or
units | ||||||
26 | of local government described in paragraph (f) during the |
| |||||||
| |||||||
1 | period in which
the exemption authorized in paragraph (f) is in | ||||||
2 | effect.
| ||||||
3 | For utility bills issued on or after May 1, 1996, but | ||||||
4 | before May 1, 1997,
and for receipts from those utility bills, | ||||||
5 | "gross receipts" does not include
one-third of (i) amounts | ||||||
6 | added to customers' bills under Section 9-222 of the
Public | ||||||
7 | Utilities Act, or (ii) amounts added to customers' bills by | ||||||
8 | taxpayers
who are not subject to rate regulation by the | ||||||
9 | Illinois Commerce Commission for
the purpose of recovering any | ||||||
10 | of the tax liabilities described in Section
9-222 of the Public | ||||||
11 | Utilities Act. For utility bills issued on or after May 1,
| ||||||
12 | 1997, but before May 1, 1998, and for receipts from those | ||||||
13 | utility bills, "gross
receipts" does not include two-thirds of | ||||||
14 | (i) amounts added to customers' bills
under Section 9-222 of | ||||||
15 | the Public Utilities Act, or (ii) amount added to
customers' | ||||||
16 | bills by taxpayers who are not subject to rate regulation by | ||||||
17 | the
Illinois Commerce Commission for the purpose of recovering | ||||||
18 | any of the tax
liabilities described in Section 9-222 of the | ||||||
19 | Public Utilities Act. For
utility bills issued on or after May | ||||||
20 | 1, 1998, and for receipts from those
utility bills, "gross | ||||||
21 | receipts" does not include (i) amounts added to
customers' | ||||||
22 | bills under Section 9-222 of the Public Utilities Act, or (ii)
| ||||||
23 | amounts added to customers' bills by taxpayers who are
not | ||||||
24 | subject to rate regulation by the Illinois Commerce Commission | ||||||
25 | for the
purpose of recovering any of the tax liabilities | ||||||
26 | described in Section 9-222
of the Public Utilities Act.
|
| |||||||
| |||||||
1 | For purposes of this Section "gross receipts" shall not | ||||||
2 | include amounts
added to customers' bills under Section 9-221 | ||||||
3 | of the Public Utilities Act.
This paragraph is not intended to | ||||||
4 | nor does it make any change in the meaning
of "gross receipts" | ||||||
5 | for the purposes of this Section, but is intended to
remove | ||||||
6 | possible ambiguities, thereby confirming the existing meaning | ||||||
7 | of
"gross receipts" prior to January 1, 1996 (the effective | ||||||
8 | date of Public Act 89-325).
| ||||||
9 | "Person" as used in this Section means any natural | ||||||
10 | individual, firm,
trust, estate, partnership, association, | ||||||
11 | joint stock company, joint
adventure, corporation, limited | ||||||
12 | liability company, municipal corporation,
the State or any of | ||||||
13 | its political subdivisions, any State university created
by | ||||||
14 | statute, or a receiver, trustee, guardian or other | ||||||
15 | representative appointed
by order of any court.
| ||||||
16 | "Person maintaining a place of business in this State"
| ||||||
17 | shall mean any person having or maintaining within this State,
| ||||||
18 | directly or by a subsidiary or other affiliate, an office,
| ||||||
19 | generation facility, distribution facility, transmission
| ||||||
20 | facility, sales office or other place of business, or any
| ||||||
21 | employee, agent, or other representative operating within this
| ||||||
22 | State under the authority of the person or its subsidiary or
| ||||||
23 | other affiliate, irrespective of whether such place of
business | ||||||
24 | or agent or other representative is located in this
State | ||||||
25 | permanently or temporarily, or whether such person,
subsidiary | ||||||
26 | or other affiliate is licensed or qualified to do
business in |
| |||||||
| |||||||
1 | this State.
| ||||||
2 | "Public utility" shall have the meaning ascribed to it in | ||||||
3 | Section 3-105
of the Public Utilities Act and shall include | ||||||
4 | alternative retail
electric suppliers as defined in Section | ||||||
5 | 16-102 of that Act.
| ||||||
6 | "Purchase at retail" shall mean any acquisition of
| ||||||
7 | electricity by a purchaser for purposes of use or consumption,
| ||||||
8 | and not for resale, but shall not include the use of
| ||||||
9 | electricity by a public utility directly in the generation,
| ||||||
10 | production, transmission, delivery or sale of electricity.
| ||||||
11 | "Purchaser" shall mean any person who uses or consumes,
| ||||||
12 | within the corporate limits of the municipality, electricity
| ||||||
13 | acquired in a purchase at retail.
| ||||||
14 | (e) Any municipality that imposes taxes upon public | ||||||
15 | utilities or upon the
privilege of using or consuming | ||||||
16 | electricity pursuant to this Section whose
territory includes | ||||||
17 | any part of an enterprise zone , Energy Transition Zone, or | ||||||
18 | federally designated
Foreign Trade Zone or Sub-Zone may, by a | ||||||
19 | majority vote of its corporate
authorities, exempt from those | ||||||
20 | taxes for a period not exceeding 20 years any
specified | ||||||
21 | percentage of gross receipts of public utilities received from, | ||||||
22 | or
electricity used or consumed by, business enterprises or | ||||||
23 | green energy enterprises that:
| ||||||
24 | (1) either (i) make investments that cause the creation | ||||||
25 | of a minimum
of 200 full-time equivalent jobs in Illinois, | ||||||
26 | (ii) make investments of at
least $175,000,000 that cause |
| |||||||
| |||||||
1 | the creation of a minimum of 150 full-time
equivalent jobs | ||||||
2 | in Illinois, or (iii) make investments that
cause the | ||||||
3 | retention of a minimum of 1,000 full-time jobs in Illinois; | ||||||
4 | and
| ||||||
5 | (2) are either (i) located in an Enterprise Zone | ||||||
6 | established pursuant to
the Illinois Enterprise Zone Act or | ||||||
7 | (ii) Department of Commerce and
Economic Opportunity | ||||||
8 | designated High Impact Businesses located in a federally
| ||||||
9 | designated Foreign Trade Zone or Sub-Zone; or (iii) located | ||||||
10 | in an Energy Transition Zone established pursuant to the | ||||||
11 | Illinois Energy Transition Zone Act; and
| ||||||
12 | (3) are certified by the Department of Commerce and | ||||||
13 | Economic Opportunity as
complying with the requirements | ||||||
14 | specified in clauses (1) and (2) of this
paragraph (e).
| ||||||
15 | Upon adoption of the ordinance authorizing the exemption, | ||||||
16 | the municipal
clerk shall transmit a copy of that ordinance to | ||||||
17 | the Department of Commerce
and Economic Opportunity. The | ||||||
18 | Department of Commerce and Economic Opportunity shall
| ||||||
19 | determine whether the business enterprises or green energy | ||||||
20 | enterprises located in the municipality meet the
criteria | ||||||
21 | prescribed in this paragraph. If the Department of Commerce and
| ||||||
22 | Economic Opportunity determines that the business enterprises | ||||||
23 | or green energy enterprises meet the criteria,
it shall grant | ||||||
24 | certification. The Department of Commerce and Economic | ||||||
25 | Opportunity
shall act upon certification requests within 30 | ||||||
26 | days after receipt of the
ordinance.
|
| |||||||
| |||||||
1 | Upon certification of the business enterprise or green | ||||||
2 | energy enterprises by the Department of
Commerce and Economic | ||||||
3 | Opportunity, the Department of Commerce and Economic | ||||||
4 | Opportunity shall notify the Department of Revenue of the | ||||||
5 | certification. The
Department of Revenue shall notify the | ||||||
6 | public utilities of the exemption
status of the gross receipts | ||||||
7 | received from, and the electricity used or
consumed by, the | ||||||
8 | certified business enterprises and certified green energy | ||||||
9 | enterprises . Such exemption status shall
be effective within 3 | ||||||
10 | months after certification.
| ||||||
11 | (f) A municipality that imposes taxes upon public utilities | ||||||
12 | or upon the
privilege of using or consuming electricity under | ||||||
13 | this Section and whose
territory includes part of another unit | ||||||
14 | of local government or a school
district may by ordinance | ||||||
15 | exempt the other unit of local government or school
district | ||||||
16 | from those taxes.
| ||||||
17 | (g) The amendment of this Section by Public Act 84-127 | ||||||
18 | shall take precedence
over any other amendment of this Section | ||||||
19 | by any other amendatory Act passed by
the 84th General Assembly | ||||||
20 | before August 1, 1985 (the effective date of Public Act | ||||||
21 | 84-127).
| ||||||
22 | (h) In any case in which, before July 1, 1992, a person | ||||||
23 | engaged in
the business of transmitting messages through the | ||||||
24 | use of mobile equipment,
such as cellular phones and paging | ||||||
25 | systems, has determined the municipality
within which the gross | ||||||
26 | receipts from the business originated by reference to
the |
| |||||||
| |||||||
1 | location of its transmitting or switching equipment, then (i) | ||||||
2 | neither the
municipality to which tax was paid on that basis | ||||||
3 | nor the taxpayer that paid tax
on that basis shall be required | ||||||
4 | to rebate, refund, or issue credits for any
such tax or charge | ||||||
5 | collected from customers to reimburse the taxpayer for the
tax | ||||||
6 | and (ii) no municipality to which tax would have been paid with | ||||||
7 | respect to
those gross receipts if the provisions of Public Act | ||||||
8 | 87-773 had been
in effect before July 1, 1992, shall have any | ||||||
9 | claim against the taxpayer for
any amount of the tax.
| ||||||
10 | (Source: P.A. 100-201, eff. 8-18-17.)
| ||||||
11 | Section 10-30. The Public Utilities Act is amended by | ||||||
12 | changing Sections 9-221 and 9-222 and by adding Section | ||||||
13 | 9-222.1b as follows:
| ||||||
14 | (220 ILCS 5/9-221) (from Ch. 111 2/3, par. 9-221)
| ||||||
15 | Sec. 9-221.
Whenever a municipality pursuant to Section | ||||||
16 | 8-11-2 of the
Illinois Municipal Code, as heretofore and | ||||||
17 | hereafter amended, imposes a
tax on any public utility, such | ||||||
18 | utility may charge its customers, other
than customers who are | ||||||
19 | certified business enterprises or certified green energy | ||||||
20 | enterprises under paragraph (e)
of Section 8-11-2 of the | ||||||
21 | Illinois Municipal Code or are exempted from those
taxes under | ||||||
22 | paragraph (f) of that Section, to the
extent of such exemption | ||||||
23 | and during the period in which such exemption is
in effect, in | ||||||
24 | addition to any rate authorized by this Act, an additional
|
| |||||||
| |||||||
1 | charge equal to the sum of (1) an amount equal to such | ||||||
2 | municipal tax, or
any part thereof (2) 3% of such tax, or any | ||||||
3 | part thereof, as the case may
be, to cover costs of accounting, | ||||||
4 | and (3) an amount equal to the increase
in taxes and other | ||||||
5 | payments to governmental bodies resulting from the
amount of | ||||||
6 | such additional charge. Such utility shall file with the
| ||||||
7 | Commission a true and correct copy of the municipal ordinance | ||||||
8 | imposing such
tax; and also shall file with the Commission a | ||||||
9 | supplemental schedule
applicable to such municipality which | ||||||
10 | shall specify such additional charge
and which shall become | ||||||
11 | effective upon filing without further notice. Such
additional | ||||||
12 | charge shall be shown separately on the utility bill to each
| ||||||
13 | customer. The Commission shall have power to investigate | ||||||
14 | whether or not
such supplemental schedule correctly specifies | ||||||
15 | such additional charge, but
shall have no power to suspend such | ||||||
16 | supplemental schedule. If the
Commission finds, after a | ||||||
17 | hearing, that such supplemental schedule does not
correctly | ||||||
18 | specify such additional charge, it shall by order require a
| ||||||
19 | refund to the appropriate customers of the excess, if any, with | ||||||
20 | interest,
in such manner as it shall deem just and reasonable, | ||||||
21 | and in and by such
order shall require the utility to file an | ||||||
22 | amended supplemental schedule
corresponding to the finding and | ||||||
23 | order of the Commission.
| ||||||
24 | (Source: P.A. 87-895; 88-132.)
| ||||||
25 | (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
|
| |||||||
| |||||||
1 | Sec. 9-222.
Whenever a tax is imposed upon a public utility
| ||||||
2 | engaged in the business of distributing, supplying,
| ||||||
3 | furnishing, or selling gas for use or consumption pursuant to | ||||||
4 | Section 2 of
the Gas Revenue Tax Act, or whenever a tax is
| ||||||
5 | required to be collected by a delivering supplier pursuant to | ||||||
6 | Section 2-7 of
the Electricity Excise Tax Act, or whenever a | ||||||
7 | tax is imposed upon a public
utility pursuant to Section
2-202 | ||||||
8 | of this Act, such utility may charge its customers, other than
| ||||||
9 | customers who are high impact businesses under Section 5.5
of | ||||||
10 | the Illinois Enterprise Zone Act, or certified business | ||||||
11 | enterprises
under Section 9-222.1 of this Act, or certified | ||||||
12 | green energy enterprises under Section 9-221.B, to the extent | ||||||
13 | of such exemption and
during the period in which such exemption | ||||||
14 | is in effect,
in addition to any rate authorized by this Act, | ||||||
15 | an additional
charge equal to the total amount of such taxes. | ||||||
16 | The exemption of this
Section relating to high impact | ||||||
17 | businesses shall be subject to the
provisions of subsections | ||||||
18 | (a), (b), and (b-5) of Section 5.5 of
the Illinois
Enterprise | ||||||
19 | Zone Act. This requirement shall not
apply to taxes on invested | ||||||
20 | capital imposed pursuant to the Messages Tax
Act, the Gas | ||||||
21 | Revenue Tax Act and the Public Utilities Revenue Act.
Such | ||||||
22 | utility shall file with the Commission
a supplemental schedule | ||||||
23 | which shall specify such additional charge and
which shall | ||||||
24 | become effective upon filing without further notice. Such
| ||||||
25 | additional charge shall be shown separately on the utility bill | ||||||
26 | to each
customer. The Commission shall have the power to |
| |||||||
| |||||||
1 | investigate whether or
not such supplemental schedule | ||||||
2 | correctly specifies such additional charge,
but shall have no | ||||||
3 | power to suspend such supplemental schedule. If the
Commission | ||||||
4 | finds, after a hearing, that such supplemental schedule does | ||||||
5 | not
correctly specify such additional charge, it shall by order | ||||||
6 | require a
refund to the appropriate customers of the excess, if | ||||||
7 | any, with interest,
in such manner as it shall deem just and | ||||||
8 | reasonable, and in and by such
order shall require the utility | ||||||
9 | to file an amended supplemental schedule
corresponding to the | ||||||
10 | finding and order of the Commission.
Except with respect to | ||||||
11 | taxes imposed on invested capital,
such tax liabilities shall | ||||||
12 | be recovered from customers solely by means of
the additional | ||||||
13 | charges authorized by this Section.
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14 | (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
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15 | (220 ILCS 5/9-222.1b new) | ||||||
16 | Sec. 9-222.1b. Green energy enterprises. A green energy | ||||||
17 | enterprise as defined in the Illinois Energy Transition Zone | ||||||
18 | Act, which is located within an area designated by a county or | ||||||
19 | municipality as an Energy Transition Zone pursuant to the | ||||||
20 | Illinois Energy Transition Zone Act shall be exempt from the | ||||||
21 | additional charges added to the green energy enterprise's | ||||||
22 | utility bills as a pass-on of municipal and State utility taxes | ||||||
23 | under Sections 9-221 and 9-222 of this Act, to the extent such | ||||||
24 | charges are exempted by ordinance adopted in accordance with | ||||||
25 | paragraph (e) of Section 8-11-2 of the Illinois Municipal Code |
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1 | in the case of municipal utility taxes, and to the extent such | ||||||
2 | charges are exempted by the percentage specified by the | ||||||
3 | Department of Commerce and Economic Opportunity in the case of | ||||||
4 | State utility taxes, provided such green energy enterprise | ||||||
5 | meets the following criteria: | ||||||
6 | (1) it (i) makes investments which cause the creation | ||||||
7 | of a minimum of 200 full-time equivalent jobs in an Energy | ||||||
8 | Transition Zone; (ii) makes investments of at least | ||||||
9 | $175,000,000 which cause the creation of a minimum of 150 | ||||||
10 | full-time equivalent jobs in an Energy Transition Zone; or | ||||||
11 | (iii) makes investments which cause the retention of a | ||||||
12 | minimum of 1,000 full-time jobs in an Energy Transition | ||||||
13 | Zone; and | ||||||
14 | (2) it is located in an Energy Transition Zone
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15 | established pursuant to the Illinois Energy Transition | ||||||
16 | Zone Act; and | ||||||
17 | (3) it is certified by the Department of Commerce and
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18 | Economic Opportunity as complying with the requirements | ||||||
19 | specified in clauses (1) and (2) of this Section. | ||||||
20 | The Department of Commerce and Economic Opportunity shall | ||||||
21 | determine the period during which such exemption from the | ||||||
22 | charges imposed under Section 9-222 is in effect which shall | ||||||
23 | not exceed 30 years or the certified term of the energy | ||||||
24 | transition Zone, whichever period is shorter. | ||||||
25 | The Department of Commerce and Economic Opportunity shall | ||||||
26 | have the power to adopt rules to carry out the provisions of |
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1 | this Section including procedures for complying with the | ||||||
2 | requirements specified in clauses (1) and (2) of this Section | ||||||
3 | and procedures for applying for the exemptions authorized under | ||||||
4 | this Section; to define the amounts and types of eligible | ||||||
5 | investments which green energy enterprises must make in order | ||||||
6 | to receive State utility tax exemptions pursuant to Sections | ||||||
7 | 9-222 and 9-222.1B of this Act; to approve such utility tax | ||||||
8 | exemptions for green energy enterprises whose investments are | ||||||
9 | not yet placed in service; and to require that green energy | ||||||
10 | enterprises granted tax exemptions repay the exempted tax | ||||||
11 | should the green energy enterprise fail to comply with the | ||||||
12 | terms and conditions of the certification. However, no green | ||||||
13 | energy enterprise shall be required, as a condition for | ||||||
14 | certification under clause (3) of this Section, to attest that | ||||||
15 | its decision to invest under clause (1) of this Section and to | ||||||
16 | locate under clause (2) of this Section is predicated upon the | ||||||
17 | availability of the exemptions authorized by this Section. | ||||||
18 | A green energy enterprise shall be exempt, in whole or in | ||||||
19 | part, from the pass-on charges of municipal utility taxes | ||||||
20 | imposed under Section 9-221, only if it meets the criteria | ||||||
21 | specified in clauses (1) through (3) of this Section and the | ||||||
22 | municipality has adopted an ordinance authorizing the | ||||||
23 | exemption under paragraph (e) of Section 8-11-2 of the Illinois | ||||||
24 | Municipal Code. Upon certification of the green energy | ||||||
25 | enterprises by the Department of Commerce and Economic | ||||||
26 | Opportunity, the Department of Commerce and Economic |
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1 | Opportunity shall notify the Department of Revenue of such | ||||||
2 | certification. The Department of Revenue shall notify the | ||||||
3 | public utilities of the exemption status of green energy | ||||||
4 | enterprises from the pass-on charges of State and municipal | ||||||
5 | utility taxes. Such exemption status shall be effective within | ||||||
6 | 3 months after certification of the green energy enterprise. | ||||||
7 | Article 99. Effective date
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8 | Section 99-99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
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