| |||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||
7 | Article 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 |
| |||||||
| |||||||
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" means a "State agency", as defined in Section 1-7 | ||||||
12 | of the 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 for a wage that meets or exceeds the prevailing wage for |
| |||||||
| |||||||
1 | the locality in which the work is performed, as determined | ||||||
2 | under Section 4 of the Prevailing Wage Act. A recipient who | ||||||
3 | employs labor or services at a specific site or facility under | ||||||
4 | contract with another may declare one full-time, permanent job | ||||||
5 | for every 1,820 man hours worked per year under that contract. | ||||||
6 | Vacations, paid holidays, and sick time are included in this | ||||||
7 | computation. Overtime is not considered a part of regular | ||||||
8 | hours. | ||||||
9 | "Full-time retained job" means any employee defined as | ||||||
10 | having a full-time or full-time equivalent job preserved at a | ||||||
11 | specific facility or site, the continuance of which is | ||||||
12 | threatened by a specific and demonstrable threat, which shall | ||||||
13 | be specified in the application for development assistance. A | ||||||
14 | recipient who employs labor or services at a specific site or | ||||||
15 | facility under contract with another may declare one retained | ||||||
16 | employee per year for every 1,750 man hours worked per year | ||||||
17 | under that contract, even if different individuals perform | ||||||
18 | on-site labor or services. | ||||||
19 | "Green energy enterprise" means a company that is engaged | ||||||
20 | in the production of solar energy, wind energy, water energy, | ||||||
21 | geothermal energy, bioenergy, or hydrogen fuel and cells. | ||||||
22 | "Green energy project" means a project conducted by a | ||||||
23 | green energy enterprise for the purpose of generating solar | ||||||
24 | energy, wind energy, water energy, geothermal energy, | ||||||
25 | bioenergy, or hydrogen fuel and cells. | ||||||
26 | "Local labor market area" means an economically integrated |
| |||||||
| |||||||
1 | area within which individuals can reside and find employment | ||||||
2 | within a reasonable distance or can readily change jobs | ||||||
3 | without changing their place of residence. | ||||||
4 | "Rule" has the meaning provided in Section 1-70 of the | ||||||
5 | Illinois Administrative Procedure Act. | ||||||
6 | Section 1-15. Qualifications for Energy Transition Zones. | ||||||
7 | An area is qualified to become an Energy Transition Zone | ||||||
8 | which: | ||||||
9 | (1) is a contiguous area, provided that a Zone area | ||||||
10 | may exclude wholly surrounded territory within its | ||||||
11 | boundaries; | ||||||
12 | (2) comprises a minimum of one-half square mile and | ||||||
13 | not more than 12 square miles, exclusive of lakes and | ||||||
14 | waterways; | ||||||
15 | (3) is entirely within a single municipality; | ||||||
16 | (4) satisfies any additional criteria established by | ||||||
17 | the Department consistent with the purposes of this Act; | ||||||
18 | and | ||||||
19 | (5) meets one or more of the following: | ||||||
20 | (A) the area contains a coal energy plant that was | ||||||
21 | retired from service within 10 years of application | ||||||
22 | for designation; | ||||||
23 | (B) the area contains a coal mine that was closed | ||||||
24 | within 10 years of application for designation; | ||||||
25 | (C) the area contains a nuclear energy plant that |
| |||||||
| |||||||
1 | was retired from service within 10 years of | ||||||
2 | application for designation; or | ||||||
3 | (D) the area contains a nuclear plant that was | ||||||
4 | decommissioned but continued storing nuclear waste | ||||||
5 | prior to the effective date of this Act. | ||||||
6 | Section 1-20. Entities eligible to receive tax benefits. | ||||||
7 | Green energy enterprises are eligible to receive certain tax | ||||||
8 | benefits under this Act for green energy projects conducted | ||||||
9 | within an Energy Transition Zone. | ||||||
10 | Section 1-25. Incentives for green energy enterprises | ||||||
11 | located within an Energy Transition Zone. | ||||||
12 | (a) Green energy enterprises located in Energy Transition | ||||||
13 | Zones are eligible to apply for a State income tax credit under | ||||||
14 | the Energy Transition Zone Tax Credit Act. | ||||||
15 | (b) Green energy enterprises located in Energy Transition | ||||||
16 | Zones will be eligible to receive an investment credit subject | ||||||
17 | to the requirements of subsection (f-1) of Section 201 of the | ||||||
18 | Illinois Income Tax Act. | ||||||
19 | (c) Green energy enterprises are eligible to purchase | ||||||
20 | building materials exempt from use and occupation taxes to be | ||||||
21 | incorporated into their green energy projects within the | ||||||
22 | Energy Transition Zone when purchased from a retailer within | ||||||
23 | the Energy Transition Zone pursuant to Section 5k-1 of the | ||||||
24 | Retailers' Occupation Tax Act. |
| |||||||
| |||||||
1 | (d) Green energy enterprises located in an Energy | ||||||
2 | Transition Zone that meet the qualifications of Section | ||||||
3 | 9-222.1B of the Illinois Public Utilities Act are exempt, in | ||||||
4 | part or whole, from State and local taxes on gas and | ||||||
5 | electricity. | ||||||
6 | Section 1-30. Initiation of Energy Transition Zones by | ||||||
7 | municipality or county. | ||||||
8 | (a) No area may be designated as an Energy Transition Zone | ||||||
9 | except pursuant to an initiating ordinance adopted in | ||||||
10 | accordance with this Section. | ||||||
11 | (b) A municipality may by ordinance designate an area | ||||||
12 | within its jurisdiction as an Energy Transition Zone, subject | ||||||
13 | to the certification of the Department in accordance with this | ||||||
14 | Act, if: | ||||||
15 | (1) the area is qualified in accordance with Section | ||||||
16 | 1-15; and | ||||||
17 | (2) the municipality has conducted at least one public | ||||||
18 | hearing within the proposed Zone area considering all of | ||||||
19 | the following questions: whether to create the Zone; what | ||||||
20 | local plans, tax incentives and other programs should be | ||||||
21 | established in connection with the Zone; and what the | ||||||
22 | boundaries of the Zone should be; public notice of the | ||||||
23 | hearing shall be published in at least one newspaper of | ||||||
24 | general circulation within the Zone area, not more than 20 | ||||||
25 | days nor less than 5 days before the hearing. |
| |||||||
| |||||||
1 | (c) An ordinance designating an area as an Energy | ||||||
2 | Transition Zone shall set forth: | ||||||
3 | (1) a precise description of the area comprising the | ||||||
4 | Zone, either in the form of a legal description or by | ||||||
5 | reference to roadways, lakes and waterways, and township, | ||||||
6 | county boundaries; | ||||||
7 | (2) a finding that the Zone area meets the | ||||||
8 | qualifications of Section 1-15; | ||||||
9 | (3) provisions for any tax incentives or reimbursement | ||||||
10 | for taxes, which pursuant to State and federal law apply | ||||||
11 | to green energy enterprises within the Zone at the | ||||||
12 | election of the designating municipality, and which are | ||||||
13 | not applicable throughout the municipality; | ||||||
14 | (4) a designation of the area as an Energy Transition | ||||||
15 | Zone, subject to the approval of the Department in | ||||||
16 | accordance with this Act; and | ||||||
17 | (5) the duration or term of the Energy Transition | ||||||
18 | Zone. | ||||||
19 | (d) This Section does not prohibit a municipality from | ||||||
20 | extending additional tax incentives or reimbursement for | ||||||
21 | business enterprises in Energy Transition Zones or throughout | ||||||
22 | their territory by separate ordinance. | ||||||
23 | Section 1-35. Application to Department. A municipality | ||||||
24 | that has adopted an ordinance designating an area as an Energy | ||||||
25 | Transition Zone shall make written application to the |
| |||||||
| |||||||
1 | Department to have such proposed Energy Transition Zone | ||||||
2 | certified by the Department as an Energy Transition Zone. The | ||||||
3 | application shall include: | ||||||
4 | (1) a certified copy of the ordinance designating the | ||||||
5 | proposed Zone; | ||||||
6 | (2) a map of the proposed Energy Transition Zone, | ||||||
7 | showing existing streets and highways; | ||||||
8 | (3) an analysis, and any appropriate supporting | ||||||
9 | documents and statistics, demonstrating that the proposed | ||||||
10 | Zone area is qualified in accordance with Section 1-15; | ||||||
11 | (4) a statement detailing any tax, grant, and other | ||||||
12 | financial incentives or benefits, and any programs, to be | ||||||
13 | provided by the municipality or county to green energy | ||||||
14 | enterprises within the Zone, other than those provided in | ||||||
15 | the designating ordinance, which are not to be provided | ||||||
16 | throughout the municipality or county; | ||||||
17 | (5) a statement setting forth the economic development | ||||||
18 | and planning objectives for the Zone; | ||||||
19 | (6) an estimate of the economic impact of the Zone, | ||||||
20 | considering all of the tax incentives, financial benefits | ||||||
21 | and programs contemplated, upon the revenues of the | ||||||
22 | municipality or county; | ||||||
23 | (7) a transcript of all public hearings on the Zone; | ||||||
24 | and | ||||||
25 | (8) such additional information as the Department may | ||||||
26 | by rule require. |
| |||||||
| |||||||
1 | Section 1-40. Department review of Energy Transition Zone | ||||||
2 | applications. | ||||||
3 | (a) All applications that are to be considered and acted | ||||||
4 | upon by the Department during a calendar year must be received | ||||||
5 | by the Department no later than December 31 of the preceding | ||||||
6 | calendar year. | ||||||
7 | Any application received after December 31 of any calendar | ||||||
8 | year shall be held by the Department for consideration and | ||||||
9 | action during the following calendar year. Each Energy | ||||||
10 | Transition Zone application shall include a specific | ||||||
11 | definition of the applicant's local labor market area. | ||||||
12 | (a-5) The Department shall, no later than July 31, 2021, | ||||||
13 | develop an application process for an Energy Transition Zone | ||||||
14 | application. The Department has emergency rulemaking authority | ||||||
15 | for the purpose of application development only until 12 | ||||||
16 | months after the effective date of this Act under subsection | ||||||
17 | (ee) of Section 5-45 of the Illinois Administrative Procedure | ||||||
18 | Act. | ||||||
19 | (b) Upon receipt of an application from a municipality, | ||||||
20 | the Department shall review the application to determine | ||||||
21 | whether the designated area qualifies as an Energy Transition | ||||||
22 | Zone under Section 1-15 of this Act. | ||||||
23 | (c) No later than June 30, the Department shall notify all | ||||||
24 | applicant municipalities of the Department's determination of | ||||||
25 | the qualification of their respective designated energy |
| |||||||
| |||||||
1 | transition Zone areas, along with supporting documentation of | ||||||
2 | the basis for the Department's decision. | ||||||
3 | (d) If any such designated area is found to be qualified to | ||||||
4 | be an Energy Transition Zone by the Department under | ||||||
5 | subsection (c) of this Section, the Department shall, no later | ||||||
6 | than July 15, send a letter of notification to each member of | ||||||
7 | the General Assembly whose legislative district or | ||||||
8 | representative district contains all or part of the designated | ||||||
9 | area and publish a notice in at least one newspaper of general | ||||||
10 | circulation within the proposed Zone area to notify the | ||||||
11 | general public of the application and their opportunity to | ||||||
12 | comment. Such notice shall include a description of the area | ||||||
13 | and a brief summary of the application and shall indicate | ||||||
14 | locations where the applicant has provided copies of the | ||||||
15 | application for public inspection. The notice shall also | ||||||
16 | indicate appropriate procedures for the filing of written | ||||||
17 | comments from Zone residents, business, civic and other | ||||||
18 | organizations and property owners to the Department. | ||||||
19 | Section 1-45. Energy Transition Zone Board. | ||||||
20 | (a) An Energy Transition Zone Board is hereby created | ||||||
21 | within the Department. | ||||||
22 | (b) The Board shall consist of the following 5 members: | ||||||
23 | (1) the Director of Commerce and Economic Opportunity, | ||||||
24 | or his or her designee, who shall serve as chairperson; | ||||||
25 | (2) the Director of Revenue, or his or her designee; |
| |||||||
| |||||||
1 | and | ||||||
2 | (3) 3 members appointed by the Governor, with the | ||||||
3 | advice and consent of the Senate. | ||||||
4 | Board members shall serve without compensation but may be | ||||||
5 | reimbursed for necessary expenses incurred in the performance | ||||||
6 | of their duties from funds appropriated for that purpose. | ||||||
7 | (c) Each member appointed under paragraph (3) of | ||||||
8 | subsection (b) shall have at least 5 years of experience in | ||||||
9 | business, economic development, or site location. | ||||||
10 | (d) Of the initial members appointed under paragraph (3) | ||||||
11 | of subsection (b): one member shall serve for a term of 2 | ||||||
12 | years; one member shall serve for a term of 3 years; and one | ||||||
13 | member shall serve for a term of 4 years. Thereafter, all | ||||||
14 | members appointed under paragraph (3) of subsection (b) shall | ||||||
15 | serve for terms of 4 years. Members appointed under paragraph | ||||||
16 | (3) of subsection (b) may be reappointed. The Governor may | ||||||
17 | remove a member appointed under paragraph (3) of subsection | ||||||
18 | (b) for incompetence, neglect of duty, or malfeasance in | ||||||
19 | office. | ||||||
20 | (e) By September 30, 2021, and September 30 of each year | ||||||
21 | thereafter, all applications filed by December 31 of the | ||||||
22 | preceding calendar year and deemed qualified by the Department | ||||||
23 | shall be approved or denied by the Board. If such application | ||||||
24 | is not approved by September 30, the application shall be | ||||||
25 | considered denied. If an application is denied, the Board | ||||||
26 | shall inform the applicant of the specific reasons for the |
| |||||||
| |||||||
1 | denial. | ||||||
2 | (f) A majority of the Board shall determine whether an | ||||||
3 | application is approved or denied. | ||||||
4 | Section 1-50. Certification of Energy Transition Zones; | ||||||
5 | effective date. | ||||||
6 | (a) Certification of Board-approved designated Energy | ||||||
7 | Transition Zones shall be made by the Department by | ||||||
8 | certification of the designating ordinance. The Department | ||||||
9 | shall promptly issue a certificate for each Energy Transition | ||||||
10 | Zone upon approval by the Board. The certificate shall be | ||||||
11 | signed by the Director of the Department, shall make specific | ||||||
12 | reference to the designating ordinance, which shall be | ||||||
13 | attached thereto, and shall be filed in the office of the | ||||||
14 | Secretary of State. A certified copy of the Energy Transition | ||||||
15 | Zone Certificate, or a duplicate original thereof, shall be | ||||||
16 | recorded in the office of recorder of deeds of the county in | ||||||
17 | which the Energy Transition Zone lies. | ||||||
18 | (b) An Energy Transition Zone shall be effective on the | ||||||
19 | date of the Department's certification. The Department shall | ||||||
20 | transmit a copy of the certification to the Department of | ||||||
21 | Revenue, and to the designating municipality. | ||||||
22 | (c) Upon certification of an Energy Transition Zone, the | ||||||
23 | terms and provisions of the designating ordinance shall be in | ||||||
24 | effect, and may not be amended or repealed except in | ||||||
25 | accordance with Section 1-55. |
| |||||||
| |||||||
1 | (d) Energy Transition Zone designation will last for 13 | ||||||
2 | years from the effective date of such designation and shall be | ||||||
3 | subject to review by the Board after 13 years for an additional | ||||||
4 | 10-year designation beginning on the expiration date of the | ||||||
5 | Energy Transition Zone. During the review process, the Board | ||||||
6 | shall consider the costs incurred by the State and units of | ||||||
7 | local government as a result of tax benefits received by the | ||||||
8 | Energy Transition Zone. Energy Transition Zones shall | ||||||
9 | terminate at midnight of December 31 of the final calendar | ||||||
10 | year of the certified term, except as provided in Section | ||||||
11 | 1-55. | ||||||
12 | (e) Each Energy Transition Zone that reapplies for | ||||||
13 | certification but does not receive a new certification shall | ||||||
14 | expire on its scheduled termination date. | ||||||
15 | Section 1-55. Amendment and decertification of Energy | ||||||
16 | Transition Zones. | ||||||
17 | (a) The terms of a certified Energy Transition Zone | ||||||
18 | designating ordinance may be amended to: | ||||||
19 | (1) alter the boundaries of the Energy Transition | ||||||
20 | Zone; | ||||||
21 | (2) expand, limit, or repeal tax incentives or | ||||||
22 | benefits provided in the ordinance; | ||||||
23 | (3) alter the termination date of the Zone; | ||||||
24 | (4) make technical corrections in the Energy | ||||||
25 | Transition Zone designating ordinance; but such amendment |
| |||||||
| |||||||
1 | shall not be effective unless the Department issues an | ||||||
2 | amended certificate for the Energy Transition Zone | ||||||
3 | approving the amended designating ordinance. Upon the | ||||||
4 | adoption of any ordinance amending or repealing the terms | ||||||
5 | of a certified Energy Transition Zone designating | ||||||
6 | ordinance, the municipality or county shall promptly file | ||||||
7 | with the Department an application for approval thereof, | ||||||
8 | containing substantially the same information as required | ||||||
9 | for an application under Section 1-35 insofar as material | ||||||
10 | to the proposed changes. The municipality or county must | ||||||
11 | hold a public hearing on the proposed changes; or | ||||||
12 | (5) include an area within another municipality or | ||||||
13 | county as part of the designated Energy Transition Zone | ||||||
14 | provided the requirements of Section 1-15 are complied | ||||||
15 | with. | ||||||
16 | (b) The Department shall approve or disapprove a proposed | ||||||
17 | amendment to a certified Energy Transition Zone within 90 days | ||||||
18 | of its receipt of the application from the municipality. The | ||||||
19 | Department may not approve changes in a Zone which are not in | ||||||
20 | conformity with this Act, as now or hereafter amended, or with | ||||||
21 | other applicable laws. If the Department issues an amended | ||||||
22 | certificate for an Energy Transition Zone, the amended | ||||||
23 | certificate, together with the amended Zone designating | ||||||
24 | ordinance, shall be filed, recorded, and transmitted as | ||||||
25 | provided in this Act. | ||||||
26 | (c) An Energy Transition Zone may be decertified by joint |
| |||||||
| |||||||
1 | action of the Department and the designating municipality in | ||||||
2 | accordance with this Section. The designating municipality | ||||||
3 | shall conduct at least one public hearing within the Zone | ||||||
4 | prior to its adoption of an ordinance of de-designation. The | ||||||
5 | mayor of the designating municipality shall execute a joint | ||||||
6 | decertification agreement with the Department. A | ||||||
7 | decertification of an Energy Transition Zone shall not become | ||||||
8 | effective until at least 6 months after the execution of the | ||||||
9 | decertification agreement, which shall be filed in the office | ||||||
10 | of the Secretary of State. | ||||||
11 | (d) An Energy Transition Zone may be decertified for cause | ||||||
12 | by the Department in accordance with this Section. Prior to | ||||||
13 | decertification: (1) the Department shall notify the chief | ||||||
14 | elected official of the designating municipality in writing of | ||||||
15 | the specific deficiencies which provide cause for | ||||||
16 | decertification; (2) the Department shall place the | ||||||
17 | designating municipality on probationary status for at least 6 | ||||||
18 | months during which time corrective action may be achieved in | ||||||
19 | the Energy Transition Zone by the designating municipality; | ||||||
20 | and (3) the Department shall conduct at least one public | ||||||
21 | hearing within the Zone. If such corrective action is not | ||||||
22 | achieved during the probationary period, the Department shall | ||||||
23 | issue an amended certificate signed by the Director of the | ||||||
24 | Department decertifying the Energy Transition Zone, which | ||||||
25 | certificate shall be filed in the office of the Secretary of | ||||||
26 | State. A certified copy of the amended Energy Transition Zone |
| |||||||
| |||||||
1 | certificate, or a duplicate original thereof, shall be | ||||||
2 | recorded in the office of recorder of the county in which the | ||||||
3 | Energy Transition Zone lies, and shall be provided to the | ||||||
4 | chief elected official of the designating municipality. | ||||||
5 | Decertification of an Energy Transition Zone shall not become | ||||||
6 | effective until 60 days after the date of filing. | ||||||
7 | (e) In the event of a decertification, an amendment | ||||||
8 | reducing the length of the term or the area of an Energy | ||||||
9 | Transition Zone, or the adoption of an ordinance reducing or | ||||||
10 | eliminating tax benefits in an Energy Transition Zone, all | ||||||
11 | benefits previously extended within the Zone pursuant to this | ||||||
12 | Act or pursuant to any other Illinois law providing benefits | ||||||
13 | specifically to or within Energy Transition Zones shall remain | ||||||
14 | in effect for the original stated term of the Energy | ||||||
15 | Transition Zone, with respect to green energy enterprises | ||||||
16 | within the Zone on the effective date of such decertification | ||||||
17 | or amendment. | ||||||
18 | Section 1-60. Powers and duties of Department. | ||||||
19 | (a) The Department shall administer this Act and shall | ||||||
20 | have the following powers and duties: | ||||||
21 | (1) to monitor the implementation of this Act and | ||||||
22 | submit reports evaluating the effectiveness of the program | ||||||
23 | and any suggestions for legislation to the Governor and | ||||||
24 | General Assembly by October 1 of every year preceding a | ||||||
25 | regular Session of the General Assembly and to annually |
| |||||||
| |||||||
1 | report to the General Assembly initial and current | ||||||
2 | population, employment, per capita income, number of | ||||||
3 | business establishments, dollar value of new construction | ||||||
4 | and improvements, and the aggregate value of each tax | ||||||
5 | incentive, based on information provided by the Department | ||||||
6 | of Revenue for each Energy Transition Zone; and | ||||||
7 | (2) to adopt all necessary rules to carry out the | ||||||
8 | purposes of this Act in accordance with the Illinois | ||||||
9 | Administrative Procedure Act. | ||||||
10 | (b) The Department shall have all of the following | ||||||
11 | specific duties: | ||||||
12 | (1) The Department shall provide information and | ||||||
13 | appropriate assistance to persons desiring to locate and | ||||||
14 | engage in business in an Energy Transition Zone and to | ||||||
15 | persons engaged in green energy in an Energy Transition | ||||||
16 | Zone. | ||||||
17 | (2) The Department shall, in cooperation with | ||||||
18 | appropriate units of local government and State agencies, | ||||||
19 | coordinate and streamline existing State business | ||||||
20 | assistance programs and permit and license application | ||||||
21 | procedures for Energy Transition Zone green energy | ||||||
22 | enterprises. | ||||||
23 | (3) The Department shall publicize existing tax | ||||||
24 | incentives and economic development programs within the | ||||||
25 | Zone and upon request, offer technical assistance in | ||||||
26 | abatement and alternative revenue source development to |
| |||||||
| |||||||
1 | local units of government which have Energy Transition | ||||||
2 | Zones within their jurisdiction. | ||||||
3 | (4) The Department shall work together with the | ||||||
4 | responsible State and federal agencies to promote the | ||||||
5 | coordination of other relevant programs, including but not | ||||||
6 | limited to housing, community and economic development, | ||||||
7 | small business, banking, financial assistance, and | ||||||
8 | employment training programs which are carried on in an | ||||||
9 | Energy Transition Zone. | ||||||
10 | (5) In order to stimulate employment opportunities for | ||||||
11 | Zone residents, the Department, in cooperation with the | ||||||
12 | Department of Human Services and the Department of | ||||||
13 | Employment Security, is to initiate a test of the | ||||||
14 | following 2 programs within the 12-month period following | ||||||
15 | designation and approval by the Department of the first | ||||||
16 | Energy Transition Zones: (i) the use of aid to families | ||||||
17 | with dependent children benefits payable under Article IV | ||||||
18 | of the Illinois Public Aid Code, General Assistance | ||||||
19 | benefits payable under Article VI of the Illinois Public | ||||||
20 | Aid Code, the unemployment insurance benefits payable | ||||||
21 | under the Unemployment Insurance Act as training or | ||||||
22 | employment subsidies leading to unsubsidized employment; | ||||||
23 | and (ii) a program for voucher reimbursement of the cost | ||||||
24 | of training Zone residents eligible under the Targeted | ||||||
25 | Jobs Tax Credit provisions of the Internal Revenue Code | ||||||
26 | for employment in private industry. These programs shall |
| |||||||
| |||||||
1 | not be designed to subsidize businesses, but are intended | ||||||
2 | to open up job and training opportunities not otherwise | ||||||
3 | available. Nothing in this paragraph (5) shall be deemed | ||||||
4 | to require Zone businesses to utilize these programs. | ||||||
5 | These programs should be designed (i) for those | ||||||
6 | individuals whose opportunities for job-finding are | ||||||
7 | minimal without program participation, (ii) to minimize | ||||||
8 | the period of benefit collection by such individuals, and | ||||||
9 | (iii) to accelerate the transition of those individuals to | ||||||
10 | unsubsidized employment. The Department is to seek | ||||||
11 | agreement with business, organized labor, and the | ||||||
12 | appropriate State Departments and agencies on the design, | ||||||
13 | operation, and evaluation of the test programs. | ||||||
14 | (c) A report with recommendations including representative | ||||||
15 | comments of these groups shall be submitted by the Department | ||||||
16 | to the county or municipality that designated the area as an | ||||||
17 | Energy Transition Zone, the Governor, and the General Assembly | ||||||
18 | not later than 12 months after such test programs have | ||||||
19 | commenced, or not later than 3 months following the | ||||||
20 | termination of such test programs, whichever first occurs. | ||||||
21 | Section 1-65. State incentives regarding public services | ||||||
22 | and physical infrastructure. | ||||||
23 | (a) This Act does not restrict tax incentive financing | ||||||
24 | pursuant to the Tax Increment Allocation Redevelopment Act in | ||||||
25 | the Illinois Municipal Code. |
| |||||||
| |||||||
1 | (b) The State Treasurer is authorized and encouraged to | ||||||
2 | place deposits of State funds with financial institutions | ||||||
3 | doing business in an Energy Transition Zone. | ||||||
4 | Section 1-70. Zone administration. The administration of | ||||||
5 | an Energy Transition Zone shall be under the jurisdiction of | ||||||
6 | the designating municipality. Each designating municipality | ||||||
7 | shall, by ordinance, designate a Zone Administrator for the | ||||||
8 | certified Zones within its jurisdiction. A Zone Administrator | ||||||
9 | must be an officer or employee of the municipality. The Zone | ||||||
10 | Administrator shall be the liaison between the designating | ||||||
11 | municipality, the Department, and any designated Zone | ||||||
12 | organizations within zones under his jurisdiction. | ||||||
13 | Section 1-75. Accounting. | ||||||
14 | (a) Any business receiving tax incentives due to its | ||||||
15 | location within an Energy Transition Zone must annually report | ||||||
16 | to the Department of Revenue information reasonably required | ||||||
17 | by the Department of Revenue to enable the Department to | ||||||
18 | verify and calculate the total Energy Transition Zone tax | ||||||
19 | benefits for property taxes and taxes imposed by the State | ||||||
20 | that are received by the business, broken down by incentive | ||||||
21 | category and Energy Transition Zone, if applicable. Reports | ||||||
22 | are due no later than May 31 of each year and shall cover the | ||||||
23 | previous calendar year. The first report will be for the 2021 | ||||||
24 | calendar year and is due no later than May 31, 2021. |
| |||||||
| |||||||
1 | (b) Green energy enterprises shall report their job | ||||||
2 | creation, retention, and capital investment numbers within the | ||||||
3 | Zone annually to the Department of Revenue no later than May 31 | ||||||
4 | of each calendar year. | ||||||
5 | (c) The Department of Revenue shall aggregate and collect | ||||||
6 | the tax, job, and capital investment data by Energy Transition | ||||||
7 | Zone and report this information, formatted to exclude | ||||||
8 | company-specific proprietary information, to the Department | ||||||
9 | and the Board by August 1, 2021, and by August 1 of every | ||||||
10 | calendar year thereafter. The Department shall include this | ||||||
11 | information in their required reports under this Act. | ||||||
12 | (d) The Department of Revenue, in its discretion, may | ||||||
13 | require that the reports filed under this Section be submitted | ||||||
14 | electronically. | ||||||
15 | (e) The Department of Revenue shall have the authority to | ||||||
16 | adopt rules as are reasonable and necessary to implement the | ||||||
17 | provisions of this Section. | ||||||
18 | Section 1-80. Zone Administrator. | ||||||
19 | (a) Each Zone Administrator shall post a copy of the | ||||||
20 | boundaries of the Energy Transition Zone on its official | ||||||
21 | Internet website and shall provide an electronic copy to the | ||||||
22 | Department. The Department shall post each copy of the | ||||||
23 | boundaries of an Energy Transition Zone that it receives from | ||||||
24 | a Zone Administrator on its official Internet website. | ||||||
25 | (b) The Zone Administrator shall collect and aggregate the |
| |||||||
| |||||||
1 | following information: | ||||||
2 | (1) the estimated cost of each building project, | ||||||
3 | broken down into labor and materials; and | ||||||
4 | (2) within 60 days after the end of the project, the | ||||||
5 | estimated cost of each building project, broken down into | ||||||
6 | labor and materials. | ||||||
7 | (c) By April 1 of each year, each Zone Administrator shall | ||||||
8 | file a copy of its fee schedule with the Department, and the | ||||||
9 | Department shall post the fee schedule on its website. Zone | ||||||
10 | Administrators shall charge no more than 0.5% of the cost of | ||||||
11 | building materials of the project associated with the specific | ||||||
12 | Energy Transition Zone, with a maximum fee of no more than | ||||||
13 | $50,000. | ||||||
14 | Section 1-85. State regulatory exemptions in Energy | ||||||
15 | Transition Zones. | ||||||
16 | (a) The Department shall conduct an ongoing review of such | ||||||
17 | agency rules as may be identified by the Department or | ||||||
18 | representatives of designating municipalities and counties as | ||||||
19 | green energy enterprises and preliminarily appearing to the | ||||||
20 | Department to: | ||||||
21 | (1) affect the conduct of business, industry and | ||||||
22 | commerce; | ||||||
23 | (2) impose excessive costs on either the creation or | ||||||
24 | conduct of such enterprises; and | ||||||
25 | (3) inhibit the development and expansions of |
| |||||||
| |||||||
1 | enterprises within Energy Transition Zones. | ||||||
2 | The Department shall conduct hearings, pursuant to public | ||||||
3 | notice, to solicit public comment on such identified rules as | ||||||
4 | part of this review process. | ||||||
5 | (b) No later than August 1 of each calendar year, the | ||||||
6 | Department shall publish in the Illinois Register a list of | ||||||
7 | such rules identified pursuant to subsection (a). The | ||||||
8 | Department shall transmit a copy of the list to each agency | ||||||
9 | which has adopted rules on the list. | ||||||
10 | (c) Within 90 days of the publication of the list by the | ||||||
11 | Department, each agency which adopted rules identified therein | ||||||
12 | shall file a written report with the Department detailing for | ||||||
13 | each identified rule: | ||||||
14 | (1) the need or justification; | ||||||
15 | (2) whether the rule is mandated by State or federal | ||||||
16 | law, or is discretionary, and to what extent; | ||||||
17 | (3) a synopsis of the history of the rule, including | ||||||
18 | any internal agency review after its original adoption; | ||||||
19 | and | ||||||
20 | (4) any appropriate explanation of its relationship to | ||||||
21 | other regulatory requirements. | ||||||
22 | The agency that adopted the rules shall also include any | ||||||
23 | available data, analysis and studies concerning the economic | ||||||
24 | impact of the identified rules. The agency responses shall be | ||||||
25 | public records. | ||||||
26 | (d) No later than January 1 of the following calendar |
| |||||||
| |||||||
1 | year, the Department shall file proposed rules exempting green | ||||||
2 | energy enterprises within Energy Transition Zones from those | ||||||
3 | agency rules contained in the published list, for which the | ||||||
4 | Department finds that the job creation or business development | ||||||
5 | incentives for Energy Transition Zone development engendered | ||||||
6 | by the exemption outweigh the need and justification for the | ||||||
7 | rule. In making its findings, the Department shall consider | ||||||
8 | all information, data, and opinions submitted to it by the | ||||||
9 | public, as well as by adopting agencies, as well as | ||||||
10 | information otherwise available to it. | ||||||
11 | (e) The proposed rules adopted by the Department shall be | ||||||
12 | in the form of amendments to the existing rules to be affected, | ||||||
13 | and shall be subject to the Illinois Administrative Procedure | ||||||
14 | Act. | ||||||
15 | (f) Upon its effective date, any exempting rule of the | ||||||
16 | Department shall supersede the exempted agency rule in | ||||||
17 | accordance with the terms of the exemption. Such exemptions | ||||||
18 | may apply only to green energy enterprises within Energy | ||||||
19 | Transition Zones during the effective term of the respective | ||||||
20 | Zones. Agencies may not adopt emergency rules to circumvent an | ||||||
21 | exemption affected by a Department exemption rule; any such | ||||||
22 | emergency rules shall not be effective within Energy | ||||||
23 | Transition Zones to the extent inconsistent with the terms of | ||||||
24 | such an exemption. | ||||||
25 | Section 1-90. State and local regulatory alternatives. |
| |||||||
| |||||||
1 | (a) Agencies may provide in their rules for: | ||||||
2 | (1) the exemption of green energy enterprises within | ||||||
3 | Energy Transition Zones; or | ||||||
4 | (2) modifications or alternatives specifically | ||||||
5 | applicable to green energy enterprises within Energy | ||||||
6 | Transition Zones, which impose less stringent standards or | ||||||
7 | alternative standards for compliance (including, but not | ||||||
8 | limited to, performance-based standards as a substitute | ||||||
9 | for specific mandates of methods, procedures or | ||||||
10 | equipment). | ||||||
11 | Such exemptions, modifications, or alternatives shall | ||||||
12 | become effective by rule adopted in accordance with the | ||||||
13 | Illinois Administrative Procedure Act. The Agency adopting | ||||||
14 | such exemptions, modifications or alternatives shall file with | ||||||
15 | its proposed rule its findings that the proposed rule provides | ||||||
16 | economic incentives within Energy Transition Zones which | ||||||
17 | promote the purposes of this Act, and which, to the extent they | ||||||
18 | include any exemptions or reductions in regulatory standards | ||||||
19 | or requirements, outweigh the need or justification for the | ||||||
20 | existing rule. | ||||||
21 | (b) If any agency adopts a rule pursuant to paragraph (a) | ||||||
22 | affecting a rule contained on the list published by the | ||||||
23 | Department, prior to the completion of the rulemaking process | ||||||
24 | for the Department's rules under that Section, the agency | ||||||
25 | shall immediately transmit a copy of its proposed rule to the | ||||||
26 | Department, together with a statement of reasons as to why the |
| |||||||
| |||||||
1 | Department should defer to the agency's proposed rule. Agency | ||||||
2 | rules adopted under subsection (a) shall, however, be subject | ||||||
3 | to the exemption rules adopted by the Department. | ||||||
4 | (c) Within Energy Transition Zones, the designating | ||||||
5 | municipality may modify all local ordinances and regulations | ||||||
6 | regarding (i) zoning; (ii) licensing; (iii) building codes, | ||||||
7 | excluding however, any regulations treating building defects; | ||||||
8 | or (iv) price controls (except for the minimum wage). | ||||||
9 | Notwithstanding any shorter statute of limitation to the | ||||||
10 | contrary, actions against any contractor or architect who | ||||||
11 | designs, constructs or rehabilitates a building or structure | ||||||
12 | in an Energy Transition Zone in accordance with local | ||||||
13 | standards specifically applicable within Zones which have been | ||||||
14 | relaxed may be commenced within 10 years from the time of | ||||||
15 | beneficial occupancy of the building or use of the structure. | ||||||
16 | Section 1-95. Exemptions from regulatory relaxation. | ||||||
17 | Sections 1-85 and 1-90 do not apply to rules adopted pursuant | ||||||
18 | to: | ||||||
19 | (1) the Environmental Protection Act; | ||||||
20 | (2) the Illinois Historic Preservation Act; | ||||||
21 | (3) the Illinois Human Rights Act; | ||||||
22 | (4) any successor Acts to any of the foregoing; or | ||||||
23 | (5) any other Acts whose purpose is the protection of | ||||||
24 | the environment, the preservation of historic places and | ||||||
25 | landmarks, or the protection of persons against |
| |||||||
| |||||||
1 | discrimination on the basis of race, color, religion, sex, | ||||||
2 | marital status, national origin, or physical or mental | ||||||
3 | disability. | ||||||
4 | (b) No exemption, modification, or alternative to any | ||||||
5 | agency rule shall be effective which: | ||||||
6 | (1) presents a significant risk to the health or | ||||||
7 | safety of persons resident in or employed within an Energy | ||||||
8 | Transition Zone; | ||||||
9 | (2) would conflict with federal law such that the | ||||||
10 | State, or any unit of local government or school district, | ||||||
11 | or any area of the State other than Energy Transition | ||||||
12 | Zones, or any business enterprise located outside of an | ||||||
13 | Energy Transition Zone would be disqualified from a | ||||||
14 | federal program or from federal tax or other benefits; | ||||||
15 | (3) would suspend or modify an agency rule mandated by | ||||||
16 | law; or | ||||||
17 | (4) would eliminate or reduce benefits to individuals | ||||||
18 | who are residents of or employed within a Zone. | ||||||
19 | Section 1-100. Business notifications. Any business | ||||||
20 | located within the Energy Transition Zone which has received | ||||||
21 | tax credits or exemptions, regulatory relief or any other | ||||||
22 | benefits under this Act shall notify the Department and the | ||||||
23 | county and municipal officials in which the Energy Transition | ||||||
24 | Zone is located within 60 days of the cessation of any business | ||||||
25 | operations conducted within the Energy Transition Zone. The |
| |||||||
| |||||||
1 | Department shall adopt rules to carry out this Section. | ||||||
2 | Article 5. Energy Transition Tax Credit Act | ||||||
3 | Section 5-1. Short title. This Article may be cited as the | ||||||
4 | Energy Transition Tax Credit Act. References in this Article | ||||||
5 | to "this Act" mean this Article. | ||||||
6 | Section 5-5. Purpose. The General Assembly finds and | ||||||
7 | declares that the health, safety, and welfare of the people of | ||||||
8 | this State are dependent upon a healthy economy and vibrant | ||||||
9 | communities; that the closure of coal plants, coal mines, and | ||||||
10 | nuclear energy plants across the states are detrimental to | ||||||
11 | maintaining a healthy economy and vibrant communities; that | ||||||
12 | the expansion of green energy creates significant job growth | ||||||
13 | and contributes significantly to the health, safety, and | ||||||
14 | welfare of the people of this State; that the continual | ||||||
15 | encouragement, development, growth and expansion of green | ||||||
16 | energy within the State requires a cooperative and continuous | ||||||
17 | partnership between government and the green energy sector; | ||||||
18 | and that there are certain depressed areas in this State that | ||||||
19 | have lost jobs due to the closure of coal plants, coal mines, | ||||||
20 | and nuclear energy plants and need the particular attention of | ||||||
21 | government, labor and the citizens of Illinois to help attract | ||||||
22 | green energy investment into these areas and directly aid the | ||||||
23 | local community and its residents. Therefore, it is declared |
| |||||||
| |||||||
1 | to be the purpose of this Act, in conjunction with the Energy | ||||||
2 | Transition Zone Act, to provide green energy enterprises an | ||||||
3 | incentive to stimulate the growth of green energy in the State | ||||||
4 | and to foster job growth in areas depressed by the closure of | ||||||
5 | coal plants, coal mines, and nuclear energy plants. | ||||||
6 | Section 5-10. Definitions. As used in this Act: | ||||||
7 | "Agreement" means the Agreement between a Taxpayer and the | ||||||
8 | Department under the provisions of Section 5-55 of this Act. | ||||||
9 | "Applicant" means a Taxpayer operating a green energy | ||||||
10 | enterprise, as determined by the Energy Transition Zone Act, | ||||||
11 | located within or that the green energy enterprise plans to | ||||||
12 | locate within an Energy Transition Zone. "Applicant" does not | ||||||
13 | include a Taxpayer who closes or substantially reduces an | ||||||
14 | operation at one location in the State and relocates | ||||||
15 | substantially the same operation to a location in an Energy | ||||||
16 | Transition Zone. This does not prohibit a Taxpayer from | ||||||
17 | expanding its operations at a location in an Energy Transition | ||||||
18 | Zone, provided that existing operations of a similar nature | ||||||
19 | located within the State are not closed or substantially | ||||||
20 | reduced. This also does not prohibit a Taxpayer from moving | ||||||
21 | its operations from one location in the State to an Energy | ||||||
22 | Transition Zone for the purpose of expanding the operation | ||||||
23 | provided that the Department determines that expansion cannot | ||||||
24 | reasonably be accommodated within the municipality in which | ||||||
25 | the business is located, or in the case of a business located |
| |||||||
| |||||||
1 | in an incorporated area of the county, within the county in | ||||||
2 | which the business is located, after conferring with the chief | ||||||
3 | elected official of the municipality or county and taking into | ||||||
4 | consideration any evidence offered by the municipality or | ||||||
5 | county regarding the ability to accommodate expansion within | ||||||
6 | the municipality or county. | ||||||
7 | "Committee" means the Energy Transition Investment | ||||||
8 | Committee created under Section 5-25 of this Act within the | ||||||
9 | Illinois Economic Development Board. | ||||||
10 | "Credit" means the amount agreed to between the Department | ||||||
11 | and the Applicant under this Act, but not to exceed the lesser | ||||||
12 | of: (1) the sum of (i) 50% of the Incremental Income Tax | ||||||
13 | attributable to New Employees at the Applicant's project and | ||||||
14 | (ii) 10% of the training costs of New Employees; or (2) 100% of | ||||||
15 | the Incremental Income Tax attributable to New Employees at | ||||||
16 | the Applicant's project. However, if the project is located in | ||||||
17 | an underserved area, then the amount of the Credit may not | ||||||
18 | exceed the lesser of: (1) the sum of (i) 75% of the Incremental | ||||||
19 | Income Tax attributable to New Employees at the Applicant's | ||||||
20 | project and (ii) 10% of the training costs of New Employees; or | ||||||
21 | (2) 100% of the Incremental Income Tax attributable to New | ||||||
22 | Employees at the Applicant's project. If an Applicant agrees | ||||||
23 | to hire the required number of New Employees, then the maximum | ||||||
24 | amount of the Credit for that Applicant may be increased by an | ||||||
25 | amount not to exceed 25% of the Incremental Income Tax | ||||||
26 | attributable to retained employees at the Applicant's project; |
| |||||||
| |||||||
1 | provided that, in order to receive the increase for retained | ||||||
2 | employees, the Applicant must provide the additional evidence | ||||||
3 | required under paragraph (3) of subsection (b) of Section | ||||||
4 | 5-30. | ||||||
5 | "Department" means the Department of Commerce and Economic | ||||||
6 | Opportunity. | ||||||
7 | "Director" means the Director of Commerce and Economic | ||||||
8 | Opportunity. | ||||||
9 | "Full-time Employee" means an individual who is employed | ||||||
10 | for consideration for at least 35 hours each week or who | ||||||
11 | renders any other standard of service generally accepted by | ||||||
12 | industry custom or practice as full-time employment. An | ||||||
13 | individual for whom a W-2 is issued by a Professional Employer | ||||||
14 | Organization (PEO) is a full-time employee if employed in the | ||||||
15 | service of the Applicant for consideration for at least 35 | ||||||
16 | hours each week or who renders any other standard of service | ||||||
17 | generally accepted by industry custom or practice as full-time | ||||||
18 | employment to Applicant. | ||||||
19 | "Green energy" means solar energy, wind energy, water | ||||||
20 | energy, geothermal energy, bioenergy, or hydrogen fuel and | ||||||
21 | cells. | ||||||
22 | "Green energy production facility" means a facility owned | ||||||
23 | by a green energy enterprise (as defined in the Illinois | ||||||
24 | Energy Transition Zone Act) that is used in the production of | ||||||
25 | solar energy, wind energy, water energy, geothermal energy, | ||||||
26 | bioenergy, or hydrogen fuel and cells."Incremental Income Tax" |
| |||||||
| |||||||
1 | means the total amount withheld during the taxable year from | ||||||
2 | the compensation of New Employees and, if applicable, retained | ||||||
3 | employees under Article 7 of the Illinois Income Tax Act | ||||||
4 | arising from employment at a project that is the subject of an | ||||||
5 | Agreement. | ||||||
6 | "New Employee" means a full-time employee first employed | ||||||
7 | by a taxpayer in the project that is the subject of an | ||||||
8 | agreement and who is hired after the taxpayer enters into the | ||||||
9 | agreement. The term "New Employee" does not include: | ||||||
10 | (1) an employee of the Taxpayer who performs a job | ||||||
11 | that was previously performed by another employee, if that | ||||||
12 | job existed for at least 6 months before hiring the | ||||||
13 | employee; | ||||||
14 | (2) an employee of the Taxpayer who was previously | ||||||
15 | employed in Illinois by a Related Member of the Taxpayer | ||||||
16 | and whose employment was shifted to the Taxpayer after the | ||||||
17 | Taxpayer entered into the Agreement; or | ||||||
18 | (3) a child, grandchild, parent, or spouse, other than | ||||||
19 | a spouse who is legally separated from the individual, of | ||||||
20 | any individual who has a direct or an indirect ownership | ||||||
21 | interest of at least 5% in the profits, capital, or value | ||||||
22 | of the taxpayer. | ||||||
23 | Notwithstanding any other provisions of this Section, an | ||||||
24 | employee may be considered a New Employee under the Agreement | ||||||
25 | if the employee performs a job that was previously performed | ||||||
26 | by an employee who was: |
| |||||||
| |||||||
1 | (1) treated under the Agreement as a New Employee; and | ||||||
2 | (2) promoted by the Taxpayer to another job. | ||||||
3 | Notwithstanding any other provisions of this Section, the | ||||||
4 | Department may award a Credit to an Applicant with respect to | ||||||
5 | an employee hired prior to the date of the Agreement if: | ||||||
6 | (1) the Applicant is in receipt of a letter from the | ||||||
7 | Department stating an intent to enter into a credit | ||||||
8 | Agreement; | ||||||
9 | (2) the letter described in paragraph (1) is issued by | ||||||
10 | the Department not later than 15 days after the effective | ||||||
11 | date of this Act; and | ||||||
12 | (3) the employee was hired after the date the letter | ||||||
13 | described in paragraph (1) was issued. | ||||||
14 | "Noncompliance Date" means, in the case of a Taxpayer that | ||||||
15 | is not complying with the requirements of the Agreement or the | ||||||
16 | provisions of this Act, the day following the last date upon | ||||||
17 | which the Taxpayer was in compliance with the requirements of | ||||||
18 | the Agreement and the provisions of this Act, as determined by | ||||||
19 | the Director, pursuant to Section 5-75. | ||||||
20 | "Pass through entity" means an entity that is exempt from | ||||||
21 | the tax under subsection (b) or (c) of Section 205 of the | ||||||
22 | Illinois Income Tax Act. | ||||||
23 | "Related Member" means a person that, with respect to the | ||||||
24 | Taxpayer during any portion of the taxable year, is any one of | ||||||
25 | the following: | ||||||
26 | (1) An individual stockholder, if the stockholder and |
| |||||||
| |||||||
1 | the members of the stockholder's family (as defined in | ||||||
2 | Section 318 of the Internal Revenue Code) own directly, | ||||||
3 | indirectly, beneficially, or constructively, in the | ||||||
4 | aggregate, at least 50% of the value of the Taxpayer's | ||||||
5 | outstanding stock. | ||||||
6 | (2) A partnership, estate, or trust and any partner or | ||||||
7 | beneficiary, if the partnership, estate, or trust, and its | ||||||
8 | partners or beneficiaries own directly, indirectly, | ||||||
9 | beneficially, or constructively, in the aggregate, at | ||||||
10 | least 50% of the profits, capital, stock, or value of the | ||||||
11 | Taxpayer. | ||||||
12 | (3) A corporation, and any party related to the | ||||||
13 | corporation in a manner that would require an attribution | ||||||
14 | of stock from the corporation to the party or from the | ||||||
15 | party to the corporation under the attribution rules of | ||||||
16 | Section 318 of the Internal Revenue Code, if the Taxpayer | ||||||
17 | owns directly, indirectly, beneficially, or constructively | ||||||
18 | at least 50% of the value of the corporation's outstanding | ||||||
19 | stock. | ||||||
20 | (4) A corporation and any party related to that | ||||||
21 | corporation in a manner that would require an attribution | ||||||
22 | of stock from the corporation to the party or from the | ||||||
23 | party to the corporation under the attribution rules of | ||||||
24 | Section 318 of the Internal Revenue Code, if the | ||||||
25 | corporation and all such related parties own in the | ||||||
26 | aggregate at least 50% of the profits, capital, stock, or |
| |||||||
| |||||||
1 | value of the Taxpayer. | ||||||
2 | (5) A person to or from whom there is attribution of | ||||||
3 | stock ownership in accordance with Section 1563(e) of the | ||||||
4 | Internal Revenue Code, except, for purposes of determining | ||||||
5 | whether a person is a Related Member under this paragraph, | ||||||
6 | 20% shall be substituted for 5% wherever 5% appears in | ||||||
7 | Section 1563(e) of the Internal Revenue Code. | ||||||
8 | "Taxpayer" means an individual, corporation, partnership, | ||||||
9 | or other entity that has any Illinois income tax liability. | ||||||
10 | "Underserved area" means a geographic area that meets one | ||||||
11 | or more of the following conditions: | ||||||
12 | (1) the area has a poverty rate of at least 20% | ||||||
13 | according to the latest federal decennial census; | ||||||
14 | (2) 75% or more of the children in the area | ||||||
15 | participate in the federal free lunch program according to | ||||||
16 | reported statistics from the State Board of Education; | ||||||
17 | (3) at least 20% of the households in the area receive | ||||||
18 | assistance under the Supplemental Nutrition Assistance | ||||||
19 | Program (SNAP); or | ||||||
20 | (4) the area has an average unemployment rate, as | ||||||
21 | determined by the Illinois Department of Employment | ||||||
22 | Security, that is more than 120% of the national | ||||||
23 | unemployment average, as determined by the U.S. Department | ||||||
24 | of Labor, for a period of at least 2 consecutive calendar | ||||||
25 | years preceding the date of the application. |
| |||||||
| |||||||
1 | Section 5-15. Powers of the Department. The Department, in | ||||||
2 | addition to those powers granted under the Civil | ||||||
3 | Administrative Code of Illinois, is granted and shall have all | ||||||
4 | the powers necessary or convenient to carry out and effectuate | ||||||
5 | the purposes and provisions of this Act, including, but not | ||||||
6 | limited to, power and authority to: | ||||||
7 | (1) Adopt rules deemed necessary and appropriate for | ||||||
8 | the administration of the programs; establish forms for | ||||||
9 | applications, notifications, contracts, or any other | ||||||
10 | agreements; and accept applications at any time during the | ||||||
11 | year. | ||||||
12 | (2) Provide and assist Taxpayers pursuant to the | ||||||
13 | provisions of this Act, and cooperate with Taxpayers that | ||||||
14 | are parties to Agreements to promote, foster, and support | ||||||
15 | economic development, capital investment, and job creation | ||||||
16 | or retention within the Energy Transition Zone. | ||||||
17 | (c) Enter into agreements and memoranda of | ||||||
18 | understanding for participation of and engage in | ||||||
19 | cooperation with agencies of the federal government, local | ||||||
20 | units of government, universities, research foundations or | ||||||
21 | institutions, regional economic development corporations, | ||||||
22 | or other organizations for the purposes of this Act. | ||||||
23 | (4) Gather information and conduct inquiries, in the | ||||||
24 | manner and by the methods as it deems desirable, including | ||||||
25 | without limitation, gathering information with respect to | ||||||
26 | Applicants for the purpose of making any designations or |
| |||||||
| |||||||
1 | certifications necessary or desirable or to gather | ||||||
2 | information to assist the Committee with any | ||||||
3 | recommendation or guidance in the furtherance of the | ||||||
4 | purposes of this Act. | ||||||
5 | (5) Establish, negotiate and effectuate any term, | ||||||
6 | agreement or other document with any person, necessary or | ||||||
7 | appropriate to accomplish the purposes of this Act; and to | ||||||
8 | consent, subject to the provisions of any Agreement with | ||||||
9 | another party, to the modification or restructuring of any | ||||||
10 | Agreement to which the Department is a party. | ||||||
11 | (6) Fix, determine, charge, and collect any premiums, | ||||||
12 | fees, charges, costs, and expenses from Applicants, | ||||||
13 | including, without limitation, any application fees, | ||||||
14 | commitment fees, program fees, financing charges, or | ||||||
15 | publication fees as deemed appropriate to pay expenses | ||||||
16 | necessary or incident to the administration, staffing, or | ||||||
17 | operation in connection with the Department's or | ||||||
18 | Committee's activities under this Act, or for preparation, | ||||||
19 | implementation, and enforcement of the terms of the | ||||||
20 | Agreement, or for consultation, advisory and legal fees, | ||||||
21 | and other costs; however, all fees and expenses incident | ||||||
22 | thereto shall be the responsibility of the Applicant. | ||||||
23 | (7) Provide for sufficient personnel to permit | ||||||
24 | administration, staffing, operation, and related support | ||||||
25 | required to adequately discharge its duties and | ||||||
26 | responsibilities described in this Act from funds made |
| |||||||
| |||||||
1 | available through charges to Applicants or from funds as | ||||||
2 | may be appropriated by the General Assembly for the | ||||||
3 | administration of this Act. | ||||||
4 | (8) Require Applicants, upon written request, to issue | ||||||
5 | any necessary authorization to the appropriate federal, | ||||||
6 | state, or local authority for the release of information | ||||||
7 | concerning a project being considered under the provisions | ||||||
8 | of this Act, with the information requested to include, | ||||||
9 | but not be limited to, financial reports, returns, or | ||||||
10 | records relating to the Taxpayer or its project. | ||||||
11 | (9) Require that a Taxpayer shall at all times keep | ||||||
12 | proper books of record and account in accordance with | ||||||
13 | generally accepted accounting principles consistently | ||||||
14 | applied, with the books, records, or papers related to the | ||||||
15 | Agreement in the custody or control of the Taxpayer open | ||||||
16 | for reasonable Department inspection and audits, and | ||||||
17 | including, without limitation, the making of copies of the | ||||||
18 | books, records, or papers, and the inspection or appraisal | ||||||
19 | of any of the Taxpayer or project assets. | ||||||
20 | (10) Take whatever actions are necessary or | ||||||
21 | appropriate to protect the State's interest in the event | ||||||
22 | of bankruptcy, default, foreclosure, or noncompliance with | ||||||
23 | the terms and conditions of financial assistance or | ||||||
24 | participation required under this Act, including the power | ||||||
25 | to sell, dispose, lease, or rent, upon terms and | ||||||
26 | conditions determined by the Director to be appropriate, |
| |||||||
| |||||||
1 | real or personal property that the Department may receive | ||||||
2 | as a result of these actions. | ||||||
3 | Section 5-20. Tax credit awards. | ||||||
4 | (a) Subject to the conditions set forth in this Act, a | ||||||
5 | Taxpayer is entitled to a Credit against or, as described in | ||||||
6 | subsection (f) of this Section, a payment towards taxes | ||||||
7 | imposed pursuant to subsections (a) and (b) of Section 201 of | ||||||
8 | the Illinois Income Tax Act that may be imposed on the Taxpayer | ||||||
9 | for a taxable year beginning on or after January 1, 2021, if | ||||||
10 | the Taxpayer is awarded a Credit by the Department under this | ||||||
11 | Act for that taxable year. | ||||||
12 | The Department shall make Credit awards under this Act to | ||||||
13 | foster job creation and the development of green energy in | ||||||
14 | Energy Transition Zones. | ||||||
15 | (b) A person that proposes a project to create new jobs and | ||||||
16 | to invest in the development of a green energy production | ||||||
17 | facility in an Energy Transition Zone must enter into an | ||||||
18 | Agreement with the Department for the Credit under this Act | ||||||
19 | (c) The Credit shall be claimed for the taxable years | ||||||
20 | specified in the Agreement. | ||||||
21 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
22 | attributable to the project that is the subject of the | ||||||
23 | Agreement. | ||||||
24 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
25 | Applicant that uses a PEO if all other award criteria are |
| |||||||
| |||||||
1 | satisfied. | ||||||
2 | (f) This Section is exempt from the provisions of Section | ||||||
3 | 250 of the Illinois Income Tax Act. | ||||||
4 | Section 5-25. Application for a project to create and | ||||||
5 | retain new jobs and to develop green energy. | ||||||
6 | (a) Any green energy enterprise proposing a project to | ||||||
7 | build a green energy production facility located or planned to | ||||||
8 | be located in an Energy Transition Zone may request | ||||||
9 | consideration for designation of its project, by formal | ||||||
10 | written letter of request or by formal application to the | ||||||
11 | Department, in which the Applicant states its intent to make | ||||||
12 | at least a specified level of investment and intends to hire or | ||||||
13 | retain a specified number of full-time employees at a | ||||||
14 | designated location in Illinois. As circumstances require, the | ||||||
15 | Department may require a formal application from an Applicant | ||||||
16 | and a formal letter of request for assistance. | ||||||
17 | (b) In order to qualify for Credits under this Act, an | ||||||
18 | Applicant's project must: | ||||||
19 | (1) be for the purpose of producing green energy; | ||||||
20 | (2) if the Applicant has more than 100 employees, | ||||||
21 | involve an investment of at least $2,500,000 in capital | ||||||
22 | improvements to be placed in service within an Energy | ||||||
23 | Transition Zone as a direct result of the project; if the | ||||||
24 | Applicant has 100 or fewer employees, then there is no | ||||||
25 | capital investment requirement; and |
| |||||||
| |||||||
1 | (3) if the Applicant has more than 100 employees, | ||||||
2 | employ a number of new employees in the Energy Transition | ||||||
3 | Zone equal to the lesser of (A) 10% of the number of | ||||||
4 | full-time employees employed by the applicant world-wide | ||||||
5 | on the date the application is filed with the Department | ||||||
6 | or (B) 50 New Employees; and, if the Applicant has 100 or | ||||||
7 | fewer employees, employ a number of new employees in the | ||||||
8 | State equal to the lesser of (A) 5% of the number of | ||||||
9 | full-time employees employed by the applicant world-wide | ||||||
10 | on the date the application is filed with the Department | ||||||
11 | or (B) 50 New Employees; | ||||||
12 | (c) After receipt of an application, the Department may | ||||||
13 | enter into an Agreement with the Applicant if the application | ||||||
14 | is accepted in accordance with Section 5-25. | ||||||
15 | Section 5-30. Review of application. | ||||||
16 | (a) In addition to those duties granted under the Illinois | ||||||
17 | Economic Development Board Act, the Illinois Economic | ||||||
18 | Development Board shall form an Energy Transition Investment | ||||||
19 | Committee for the purpose of making recommendations for | ||||||
20 | applications. At the request of the Board, the Director of | ||||||
21 | Commerce and Economic Opportunity or his or her designee, the | ||||||
22 | Director of the Governor's Office of Management and Budget or | ||||||
23 | his or her designee, the Director of Revenue or his or her | ||||||
24 | designee, the Director of Employment Security or his or her | ||||||
25 | designee, and an elected official of the affected locality, |
| |||||||
| |||||||
1 | such as the chair of the county board or the mayor, may serve | ||||||
2 | as members of the Committee to assist with its analysis and | ||||||
3 | deliberations. | ||||||
4 | (b) At the Department's request, the Committee shall | ||||||
5 | convene, make inquiries, and conduct studies in the manner and | ||||||
6 | by the methods as it deems desirable, review information with | ||||||
7 | respect to Applicants, and make recommendations for projects | ||||||
8 | to benefit an Energy Transition Zone. In making its | ||||||
9 | recommendation that an Applicant's application for Credit | ||||||
10 | should or should not be accepted, which shall occur within a | ||||||
11 | reasonable time frame as determined by the nature of the | ||||||
12 | application, the Committee shall determine that all the | ||||||
13 | following conditions exist: | ||||||
14 | (1) The Applicant's project intends, as required by | ||||||
15 | subsection (b) of Section 5 to make the required | ||||||
16 | investment in the Energy Transition Zone and intends to | ||||||
17 | hire the required number of New Employees in the Energy | ||||||
18 | Transition Zone as a result of that project. | ||||||
19 | (2) The Applicant's project is economically sound and | ||||||
20 | will benefit the people of the Energy Transition Zone by | ||||||
21 | increasing opportunities for employment and engaging in | ||||||
22 | the development of green energy. | ||||||
23 | (3) That, if not for the Credit, the project would not | ||||||
24 | occur in Illinois, which may be demonstrated by evidence | ||||||
25 | that receipt of the Credit is essential to the Applicant's | ||||||
26 | decision to create new jobs in the State, such as the |
| |||||||
| |||||||
1 | magnitude of the cost differential between Illinois and a | ||||||
2 | competing State; in addition, if the Applicant is seeking | ||||||
3 | an increase in the maximum amount of the Credit for | ||||||
4 | retained employees, the Applicant must provide evidence | ||||||
5 | the Applicant has multi-state location options and could | ||||||
6 | reasonably and efficiently locate outside of the State or | ||||||
7 | demonstrate that at least one other state is being | ||||||
8 | considered for the project. | ||||||
9 | (4) A cost differential is identified, using best | ||||||
10 | available data, in the projected costs for the Applicant's | ||||||
11 | project compared to the costs in the competing state, | ||||||
12 | including the impact of the competing state's incentive | ||||||
13 | programs. The competing state's incentive programs shall | ||||||
14 | include state, local, private, and federal funds | ||||||
15 | available. | ||||||
16 | (5) The political subdivisions affected by the project | ||||||
17 | have committed local incentives with respect to the | ||||||
18 | project, considering local ability to assist. | ||||||
19 | (6) Awarding the Credit will result in an overall | ||||||
20 | positive fiscal impact to the State, as certified by the | ||||||
21 | Committee using the best available data. | ||||||
22 | (7) The Credit is not prohibited by Section 5-45 of | ||||||
23 | this Act. | ||||||
24 | Section 5-35. Limitation to amount of costs of specified | ||||||
25 | items. The total amount of the Credit allowed during all tax |
| |||||||
| |||||||
1 | years may not exceed the aggregate amount of costs incurred by | ||||||
2 | the Taxpayer during all prior tax years for the following | ||||||
3 | items, to the extent provided in the Agreement: | ||||||
4 | (1) capital investment, including, but not limited to, | ||||||
5 | equipment, buildings, or land; | ||||||
6 | (2) infrastructure development; | ||||||
7 | (3) debt service, except refinancing of current debt; | ||||||
8 | (4) research and development; | ||||||
9 | (5) job training and education; | ||||||
10 | (6) lease costs; or | ||||||
11 | (7) relocation costs. | ||||||
12 | Section 5-40. Relocation of jobs to Energy Transition | ||||||
13 | Zone. A taxpayer is not entitled to claim the credit provided | ||||||
14 | by this Act with respect to any jobs that the taxpayer | ||||||
15 | relocates from one site in Illinois to another site in an | ||||||
16 | Energy Transition Zone. A taxpayer with respect to a | ||||||
17 | qualifying project certified under the Corporate Headquarters | ||||||
18 | Relocation Act, however, is not subject to the requirements of | ||||||
19 | this Section but is nevertheless considered an applicant for | ||||||
20 | purposes of this Act. Moreover, any full-time employee of an | ||||||
21 | eligible green energy enterprise relocated to an Energy | ||||||
22 | Transition Zone in connection with that qualifying project is | ||||||
23 | deemed to be a new employee for purposes of this Act. | ||||||
24 | Determinations under this Section shall be made by the | ||||||
25 | Department. |
| |||||||
| |||||||
1 | Section 5-45. Determination of amount of the Credit. In | ||||||
2 | determining the amount of the Credit that should be awarded, | ||||||
3 | the Committee shall provide guidance on, and the Department | ||||||
4 | shall take into consideration, all of the following factors: | ||||||
5 | (1) The number and location of jobs created and | ||||||
6 | retained in relation to the economy of the Energy | ||||||
7 | Transition Zone where the projected investment is to | ||||||
8 | occur. | ||||||
9 | (2) The potential impact on the economy of the Energy | ||||||
10 | Transition Zone. | ||||||
11 | (3) The advancement of green energy in the Energy | ||||||
12 | Transition Zone. | ||||||
13 | (4) The incremental payroll attributable to the | ||||||
14 | project. | ||||||
15 | (5) The capital investment attributable to the | ||||||
16 | project. | ||||||
17 | (6) The amount of the average wage and benefits paid | ||||||
18 | by the Applicant in relation to the wage and benefits of | ||||||
19 | the Energy Transition Zone. | ||||||
20 | (7) The costs to Illinois and the affected political | ||||||
21 | subdivisions with respect to the project. | ||||||
22 | (8) The financial assistance that is otherwise | ||||||
23 | provided by Illinois and the affected political | ||||||
24 | subdivisions. |
| |||||||
| |||||||
1 | Section 5-50. Amount and curation of credit. | ||||||
2 | (a) The Department shall determine the amount and duration | ||||||
3 | of the credit awarded under this Act. The duration of the | ||||||
4 | credit may not exceed 10 taxable years. The credit may be | ||||||
5 | stated as a percentage of the Incremental Income Tax | ||||||
6 | attributable to the applicant's project and may include a | ||||||
7 | fixed dollar limitation. An Agreement for the credit must be | ||||||
8 | finalized and signed by all parties while the area in which the | ||||||
9 | project is located is designated an Energy Transition Zone. | ||||||
10 | The credit may last longer than the applicable Energy | ||||||
11 | Transition Zone designation. Agreements entered into prior to | ||||||
12 | the de-designation of an Energy Transition Zone will be | ||||||
13 | honored for the length of the Agreement. | ||||||
14 | (b) Notwithstanding subsection (a), the credit may be | ||||||
15 | applied in more than 10 taxable years but not more than 15 | ||||||
16 | taxable years for an eligible green energy enterprise that | ||||||
17 | qualifies under this Act and the Corporate Headquarters | ||||||
18 | Relocation Act and has in fact undertaken a qualifying project | ||||||
19 | within the timeframe specified by the Department of Commerce | ||||||
20 | and Economic Opportunity under that Act. In that case, the | ||||||
21 | Department of Commerce and Economic Opportunity shall extend | ||||||
22 | the tax credit agreement to not more than 15 years and reduce | ||||||
23 | the annual allocation to 60% of the maximum credit that would | ||||||
24 | otherwise be available under this Act. | ||||||
25 | (c) The tax credit may not reduce the taxpayer's liability | ||||||
26 | to less than zero. If the amount of tax credit exceeds the |
| |||||||
| |||||||
1 | liability for the year, the excess may be carried forward and | ||||||
2 | applied to the tax liability of the 5 taxable years following | ||||||
3 | the excess credit year. The credit must be applied to the | ||||||
4 | earliest year for which there is a tax liability. If there are | ||||||
5 | credits from more than one tax year that are available to | ||||||
6 | offset a liability, then the earlier credit will be applied | ||||||
7 | first. | ||||||
8 | Section 5-55. Contents of Agreements with Applicants. The | ||||||
9 | Department shall enter into an Agreement with an Applicant | ||||||
10 | that is awarded a Credit under this Act. The Agreement must | ||||||
11 | include all of the following: | ||||||
12 | (1) A detailed description of the project that is the | ||||||
13 | subject of the Agreement, including the location and | ||||||
14 | amount of the investment and jobs created or retained. | ||||||
15 | (2) The duration of the Credit and the first taxable | ||||||
16 | year for which the Credit may be claimed. | ||||||
17 | (3) The Credit amount that will be allowed for each | ||||||
18 | taxable year. | ||||||
19 | (4) A requirement that the Taxpayer shall maintain | ||||||
20 | operations at the project location that shall be stated as | ||||||
21 | a minimum number of years not to exceed 10. | ||||||
22 | (5) A specific method for determining the number of | ||||||
23 | New Employees employed during a taxable year. | ||||||
24 | (6) A requirement that the Taxpayer shall annually | ||||||
25 | report to the Department the number of New Employees, the |
| |||||||
| |||||||
1 | Incremental Income Tax withheld in connection with the New | ||||||
2 | Employees, and any other information the Director needs to | ||||||
3 | perform the Director's duties under this Act. | ||||||
4 | (7) A requirement that the Director is authorized to | ||||||
5 | verify with the appropriate State agencies the amounts | ||||||
6 | reported under paragraph (6), and after doing so shall | ||||||
7 | issue a certificate to the Taxpayer stating that the | ||||||
8 | amounts have been verified. | ||||||
9 | (8) A requirement that the Taxpayer shall provide | ||||||
10 | written notification to the Director not more than 30 days | ||||||
11 | after the Taxpayer makes or receives a proposal that would | ||||||
12 | transfer the Taxpayer's State tax liability obligations to | ||||||
13 | a successor Taxpayer. | ||||||
14 | (9) A detailed description of the number of New | ||||||
15 | Employees to be hired, and the occupation and payroll of | ||||||
16 | the full-time jobs to be created or retained as a result of | ||||||
17 | the project. | ||||||
18 | (10) The minimum investment the green energy | ||||||
19 | enterprise will make in capital improvements, the time | ||||||
20 | period for placing the property in service, and the | ||||||
21 | designated green energy production of the project. | ||||||
22 | (11) A requirement that the Taxpayer shall provide | ||||||
23 | written notification to the Director and the Committee not | ||||||
24 | more than 30 days after the Taxpayer determines that the | ||||||
25 | minimum job creation or retention, employment payroll, or | ||||||
26 | investment no longer is being or will be achieved or |
| |||||||
| |||||||
1 | maintained as set forth in the terms and conditions of the | ||||||
2 | Agreement. | ||||||
3 | (12) A provision that, if the total number of New | ||||||
4 | Employees falls below a specified level, the allowance of | ||||||
5 | Credit shall be suspended until the number of New | ||||||
6 | Employees equals or exceeds the Agreement amount. | ||||||
7 | (13) A detailed description of the items for which the | ||||||
8 | costs incurred by the Taxpayer will be included in the | ||||||
9 | limitation on the Credit provided in Section 5-40. | ||||||
10 | (14) A provision that, if the Taxpayer never meets | ||||||
11 | either the investment or job creation and retention | ||||||
12 | requirements specified in the Agreement during the entire | ||||||
13 | 5-year period beginning on the first day of the first | ||||||
14 | taxable year in which the Agreement is executed and ending | ||||||
15 | on the last day of the fifth taxable year after the | ||||||
16 | Agreement is executed, then the Agreement is automatically | ||||||
17 | terminated on the last day of the fifth taxable year after | ||||||
18 | the Agreement is executed and the Taxpayer is not entitled | ||||||
19 | to the award of any credits for any of that 5-year period. | ||||||
20 | (15) A provision specifying that, if the Taxpayer | ||||||
21 | ceases principal operations with the intent to shut down | ||||||
22 | the project in the Energy Transition Zone permanently | ||||||
23 | during the term of the Agreement, then the entire credit | ||||||
24 | amount awarded to the Taxpayer prior to the date the | ||||||
25 | Taxpayer ceases principal operations shall be returned to | ||||||
26 | the Department. |
| |||||||
| |||||||
1 | (16) Any other performance conditions or contract | ||||||
2 | provisions as the Department determines are appropriate. | ||||||
3 | The Department shall post on its website the terms of each | ||||||
4 | Agreement entered into under this Act. Such information | ||||||
5 | shall be posted within 10 days after entering into the | ||||||
6 | Agreement and must include the following: | ||||||
7 | (A) the name of the recipient business; | ||||||
8 | (B) the location of the project; | ||||||
9 | (C) the estimated value of the credit; | ||||||
10 | (C) the number of new jobs and, if applicable, | ||||||
11 | retained jobs pledged as a result of the project; and | ||||||
12 | (E) whether or not the project is located in an | ||||||
13 | underserved area. | ||||||
14 | Section 5-60. Certificate of verification; submission to | ||||||
15 | the Department of Revenue. A Taxpayer claiming a Credit under | ||||||
16 | this Act shall submit to the Department of Revenue a copy of | ||||||
17 | the Director's certificate of verification under this Act for | ||||||
18 | the taxable year. However, failure to submit a copy of the | ||||||
19 | certificate with the Taxpayer's tax return shall not | ||||||
20 | invalidate a claim for a Credit. | ||||||
21 | For a Taxpayer to be eligible for a certificate of | ||||||
22 | verification, the Taxpayer shall provide proof as required by | ||||||
23 | the Department prior to the end of each calendar year, | ||||||
24 | including, but not limited to, attestation by the Taxpayer | ||||||
25 | that: |
| |||||||
| |||||||
1 | (1) The project has substantially achieved the level | ||||||
2 | of new full-time jobs in the Energy Transition Zone, as | ||||||
3 | specified in its Agreement. | ||||||
4 | (2) The project has substantially achieved the level | ||||||
5 | of annual payroll in the Energy Transition Zone, as | ||||||
6 | specified in its Agreement. | ||||||
7 | (3) The project has substantially achieved the level | ||||||
8 | of capital investment in the Energy Transition Zone, as | ||||||
9 | specified in its Agreement; | ||||||
10 | (4) The project has assisted in the development of | ||||||
11 | green energy production in the Energy Transition Zone, as | ||||||
12 | specified in its Agreement. | ||||||
13 | Section 5-65. Supplier diversity. Each taxpayer claiming | ||||||
14 | a credit under this Act shall, no later than April 15 of each | ||||||
15 | taxable year for which the taxpayer claims a credit under this | ||||||
16 | Act, submit to the Department of Commerce and Economic | ||||||
17 | Opportunity an annual report containing the information | ||||||
18 | described in subsections (b), (c), (d), and (e) of Section | ||||||
19 | 5-117 of the Public Utilities Act. Those reports shall be | ||||||
20 | submitted in the form and manner required by the Department of | ||||||
21 | Commerce and Economic Opportunity. | ||||||
22 | Section 5-70. Pass through entities. | ||||||
23 | (a) For partners, shareholders of Subchapter S | ||||||
24 | corporations, and owners of limited liability companies, if |
| |||||||
| |||||||
1 | the liability company is treated as a partnership for purposes | ||||||
2 | of federal and State income taxation, there is allowed a | ||||||
3 | credit under this Section to be determined in accordance with | ||||||
4 | the determination of income and distributive share of income | ||||||
5 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
6 | Revenue Code. | ||||||
7 | (b) The Credit provided under subsection (a) is in | ||||||
8 | addition to any Credit to which a shareholder or partner is | ||||||
9 | otherwise entitled under a separate Agreement under this Act. | ||||||
10 | A pass through entity and a shareholder or partner of the pass | ||||||
11 | through entity may not claim more than one Credit under the | ||||||
12 | same Agreement. | ||||||
13 | Section 5-75. Noncompliance; notice; assessment. If the | ||||||
14 | Director determines that a Taxpayer who has received a Credit | ||||||
15 | under this Act is not complying with the requirements of the | ||||||
16 | Agreement or all of the provisions of this Act, the Director | ||||||
17 | shall provide notice to the Taxpayer of the alleged | ||||||
18 | noncompliance, and allow the Taxpayer a hearing under the | ||||||
19 | provisions of the Illinois Administrative Procedure Act. If, | ||||||
20 | after such notice and any hearing, the Director determines | ||||||
21 | that a noncompliance exists, the Director shall issue to the | ||||||
22 | Department of Revenue notice to that effect, stating the | ||||||
23 | Noncompliance Date. If, during the term of an Agreement, the | ||||||
24 | Taxpayer ceases operations at a project location that is the | ||||||
25 | subject of that Agreement with the intent to terminate |
| |||||||
| |||||||
1 | operations in the Energy Transition Zone, the Department and | ||||||
2 | the Department of Revenue shall recapture from the Taxpayer | ||||||
3 | the entire Credit amount awarded under that Agreement prior to | ||||||
4 | the date the taxpayer ceases operations. The Department shall, | ||||||
5 | subject to appropriation, reallocate the recaptured amounts to | ||||||
6 | the local workforce investment area in which the project was | ||||||
7 | located for the purposes of workforce development, expanded | ||||||
8 | opportunities for unemployed persons, and expanded | ||||||
9 | opportunities for women and minorities in the workforce. | ||||||
10 | Section 5-80. Annual report. On or before July 1 each | ||||||
11 | year, the Committee shall submit a report to the Department on | ||||||
12 | the tax credit program under this Act to the Governor and the | ||||||
13 | General Assembly. The report shall include information on the | ||||||
14 | number of Agreements that were entered into under this Act | ||||||
15 | during the preceding calendar year, a description of the | ||||||
16 | project that is the subject of each Agreement, an update on the | ||||||
17 | status of projects under Agreements entered into before the | ||||||
18 | preceding calendar year, and the sum of the Credits awarded | ||||||
19 | under this Act. A copy of the report shall be delivered to the | ||||||
20 | Governor and to each member of the General Assembly. | ||||||
21 | The report must include, for each Agreement: | ||||||
22 | (1) the original estimates of the value of the Credit | ||||||
23 | and the number of new jobs to be created and, if | ||||||
24 | applicable, the number of retained jobs; | ||||||
25 | (2) any relevant modifications to existing Agreements; |
| |||||||
| |||||||
1 | (3) a statement of the progress made by each Taxpayer | ||||||
2 | in meeting the terms of the original Agreement; | ||||||
3 | (4) a statement of wages paid to New Employees and, if | ||||||
4 | applicable, retained employees in the State; | ||||||
5 | (5) any information reported under Section 5-65 of | ||||||
6 | this Act; and | ||||||
7 | (6) a copy of the original Agreement. | ||||||
8 | Section 5-85. Evaluation of tax credit program. On a | ||||||
9 | biennial basis, the Department shall evaluate the tax credit | ||||||
10 | program. The evaluation shall include an assessment of the | ||||||
11 | effectiveness of the program in creating new jobs in Illinois | ||||||
12 | and of the revenue impact of the program, and may include a | ||||||
13 | review of the practices and experiences of other states with | ||||||
14 | similar programs. The Director shall submit a report on the | ||||||
15 | evaluation to the Governor and the General Assembly after June | ||||||
16 | 30 and before November 1 in each odd-numbered year. | ||||||
17 | Section 5-90. Adoption of rules. The Department may adopt | ||||||
18 | rules necessary to implement this Act. The rules may provide | ||||||
19 | for recipients of Credits under this Act to be charged fees to | ||||||
20 | cover administrative costs of the tax credit program. Fees | ||||||
21 | collected shall be deposited into the Energy Transition Fund. | ||||||
22 | Section 5-95. The Energy Transition Fund. | ||||||
23 | (a) The Energy Transition Fund is established as a special |
| |||||||
| |||||||
1 | fund within the State treasury to be used exclusively for the | ||||||
2 | purposes of this Act, including paying for the costs of | ||||||
3 | administering this Act. The Fund shall be administered by the | ||||||
4 | Department. | ||||||
5 | (b) The Fund consists of collected fees, appropriations | ||||||
6 | from the General Assembly, and gifts and grants to the Fund. | ||||||
7 | (c) The State Treasurer shall invest the money in the Fund | ||||||
8 | not currently needed to meet the obligations of the Fund in the | ||||||
9 | same manner as other public funds may be invested. Interest | ||||||
10 | that accrues from these investments shall be deposited into | ||||||
11 | the Fund. | ||||||
12 | (d) The money in the Fund at the end of a State fiscal year | ||||||
13 | remains in the Fund to be used exclusively for the purposes of | ||||||
14 | this Act. Expenditures from the Fund are subject to | ||||||
15 | appropriation by the General Assembly. | ||||||
16 | Section 5-100. Program terms and conditions. | ||||||
17 | (a) Any documentary materials or data made available or | ||||||
18 | received by any member of a Committee or any agent or employee | ||||||
19 | of the Department shall be deemed confidential and shall not | ||||||
20 | be deemed public records to the extent that the materials or | ||||||
21 | data consists of trade secrets, commercial or financial | ||||||
22 | information regarding the operation of the business conducted | ||||||
23 | by the Applicant for or recipient of any tax credit under this | ||||||
24 | Act, or any information regarding the competitive position of | ||||||
25 | a business in a particular field of endeavor. |
| |||||||
| |||||||
1 | (b) Nothing in this Act shall be construed as creating any | ||||||
2 | rights in any Applicant to enter into an Agreement or in any | ||||||
3 | person to challenge the terms of any Agreement. | ||||||
4 | Article 10. Amendatory Provisions | ||||||
5 | Section 10-5. The Illinois Administrative Procedure Act is | ||||||
6 | amended by changing Section 5-45 as follows: | ||||||
7 | (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45) | ||||||
8 | Sec. 5-45. Emergency rulemaking. | ||||||
9 | (a) "Emergency" means the existence of any situation that | ||||||
10 | any agency
finds reasonably constitutes a threat to the public | ||||||
11 | interest, safety, or
welfare. | ||||||
12 | (b) If any agency finds that an
emergency exists that | ||||||
13 | requires adoption of a rule upon fewer days than
is required by | ||||||
14 | Section 5-40 and states in writing its reasons for that
| ||||||
15 | finding, the agency may adopt an emergency rule without prior | ||||||
16 | notice or
hearing upon filing a notice of emergency rulemaking | ||||||
17 | with the Secretary of
State under Section 5-70. The notice | ||||||
18 | shall include the text of the
emergency rule and shall be | ||||||
19 | published in the Illinois Register. Consent
orders or other | ||||||
20 | court orders adopting settlements negotiated by an agency
may | ||||||
21 | be adopted under this Section. Subject to applicable | ||||||
22 | constitutional or
statutory provisions, an emergency rule | ||||||
23 | becomes effective immediately upon
filing under Section 5-65 |
| |||||||
| |||||||
1 | or at a stated date less than 10 days
thereafter. The agency's | ||||||
2 | finding and a statement of the specific reasons
for the | ||||||
3 | finding shall be filed with the rule. The agency shall take
| ||||||
4 | reasonable and appropriate measures to make emergency rules | ||||||
5 | known to the
persons who may be affected by them. | ||||||
6 | (c) An emergency rule may be effective for a period of not | ||||||
7 | longer than
150 days, but the agency's authority to adopt an | ||||||
8 | identical rule under Section
5-40 is not precluded. No | ||||||
9 | emergency rule may be adopted more
than once in any 24-month | ||||||
10 | period, except that this limitation on the number
of emergency | ||||||
11 | rules that may be adopted in a 24-month period does not apply
| ||||||
12 | to (i) emergency rules that make additions to and deletions | ||||||
13 | from the Drug
Manual under Section 5-5.16 of the Illinois | ||||||
14 | Public Aid Code or the
generic drug formulary under Section | ||||||
15 | 3.14 of the Illinois Food, Drug
and Cosmetic Act, (ii) | ||||||
16 | emergency rules adopted by the Pollution Control
Board before | ||||||
17 | July 1, 1997 to implement portions of the Livestock Management
| ||||||
18 | Facilities Act, (iii) emergency rules adopted by the Illinois | ||||||
19 | Department of Public Health under subsections (a) through (i) | ||||||
20 | of Section 2 of the Department of Public Health Act when | ||||||
21 | necessary to protect the public's health, (iv) emergency rules | ||||||
22 | adopted pursuant to subsection (n) of this Section, (v) | ||||||
23 | emergency rules adopted pursuant to subsection (o) of this | ||||||
24 | Section, or (vi) emergency rules adopted pursuant to | ||||||
25 | subsection (c-5) of this Section. Two or more emergency rules | ||||||
26 | having substantially the same
purpose and effect shall be |
| |||||||
| |||||||
1 | deemed to be a single rule for purposes of this
Section. | ||||||
2 | (c-5) To facilitate the maintenance of the program of | ||||||
3 | group health benefits provided to annuitants, survivors, and | ||||||
4 | retired employees under the State Employees Group Insurance | ||||||
5 | Act of 1971, rules to alter the contributions to be paid by the | ||||||
6 | State, annuitants, survivors, retired employees, or any | ||||||
7 | combination of those entities, for that program of group | ||||||
8 | health benefits, shall be adopted as emergency rules. The | ||||||
9 | adoption of those rules shall be considered an emergency and | ||||||
10 | necessary for the public interest, safety, and welfare. | ||||||
11 | (d) In order to provide for the expeditious and timely | ||||||
12 | implementation
of the State's fiscal year 1999 budget, | ||||||
13 | emergency rules to implement any
provision of Public Act | ||||||
14 | 90-587 or 90-588
or any other budget initiative for fiscal | ||||||
15 | year 1999 may be adopted in
accordance with this Section by the | ||||||
16 | agency charged with administering that
provision or | ||||||
17 | initiative, except that the 24-month limitation on the | ||||||
18 | adoption
of emergency rules and the provisions of Sections | ||||||
19 | 5-115 and 5-125 do not apply
to rules adopted under this | ||||||
20 | subsection (d). The adoption of emergency rules
authorized by | ||||||
21 | this subsection (d) shall be deemed to be necessary for the
| ||||||
22 | public interest, safety, and welfare. | ||||||
23 | (e) In order to provide for the expeditious and timely | ||||||
24 | implementation
of the State's fiscal year 2000 budget, | ||||||
25 | emergency rules to implement any
provision of Public Act 91-24
| ||||||
26 | or any other budget initiative for fiscal year 2000 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 (e). The adoption of | ||||||
6 | emergency rules
authorized by this subsection (e) shall be | ||||||
7 | deemed to be necessary for the
public interest, safety, and | ||||||
8 | welfare. | ||||||
9 | (f) In order to provide for the expeditious and timely | ||||||
10 | implementation
of the State's fiscal year 2001 budget, | ||||||
11 | emergency rules to implement any
provision of Public Act | ||||||
12 | 91-712
or any other budget initiative for fiscal year 2001 may | ||||||
13 | be adopted in
accordance with this Section by the agency | ||||||
14 | charged with administering that
provision or initiative, | ||||||
15 | except that the 24-month limitation on the adoption
of | ||||||
16 | emergency rules and the provisions of Sections 5-115 and 5-125 | ||||||
17 | do not apply
to rules adopted under this subsection (f). The | ||||||
18 | adoption of emergency rules
authorized by this subsection (f) | ||||||
19 | shall be deemed to be necessary for the
public interest, | ||||||
20 | safety, and welfare. | ||||||
21 | (g) In order to provide for the expeditious and timely | ||||||
22 | implementation
of the State's fiscal year 2002 budget, | ||||||
23 | emergency rules to implement any
provision of Public Act 92-10
| ||||||
24 | or any other budget initiative for fiscal year 2002 may be | ||||||
25 | adopted in
accordance with this Section by the agency charged | ||||||
26 | with administering that
provision or initiative, except that |
| |||||||
| |||||||
1 | the 24-month limitation on the adoption
of emergency rules and | ||||||
2 | the provisions of Sections 5-115 and 5-125 do not apply
to | ||||||
3 | rules adopted under this subsection (g). The adoption of | ||||||
4 | emergency rules
authorized by this subsection (g) shall be | ||||||
5 | deemed to be necessary for the
public interest, safety, and | ||||||
6 | welfare. | ||||||
7 | (h) In order to provide for the expeditious and timely | ||||||
8 | implementation
of the State's fiscal year 2003 budget, | ||||||
9 | emergency rules to implement any
provision of Public Act | ||||||
10 | 92-597
or any other budget initiative for fiscal year 2003 may | ||||||
11 | be adopted in
accordance with this Section by the agency | ||||||
12 | charged with administering that
provision or initiative, | ||||||
13 | except that the 24-month limitation on the adoption
of | ||||||
14 | emergency rules and the provisions of Sections 5-115 and 5-125 | ||||||
15 | do not apply
to rules adopted under this subsection (h). The | ||||||
16 | adoption of emergency rules
authorized by this subsection (h) | ||||||
17 | shall be deemed to be necessary for the
public interest, | ||||||
18 | safety, and welfare. | ||||||
19 | (i) In order to provide for the expeditious and timely | ||||||
20 | implementation
of the State's fiscal year 2004 budget, | ||||||
21 | emergency rules to implement any
provision of Public Act 93-20
| ||||||
22 | or any other budget initiative for fiscal year 2004 may be | ||||||
23 | adopted in
accordance with this Section by the agency charged | ||||||
24 | with administering that
provision or initiative, except that | ||||||
25 | the 24-month limitation on the adoption
of emergency rules and | ||||||
26 | the provisions of Sections 5-115 and 5-125 do not apply
to |
| |||||||
| |||||||
1 | rules adopted under this subsection (i). The adoption of | ||||||
2 | emergency rules
authorized by this subsection (i) shall be | ||||||
3 | deemed to be necessary for the
public interest, safety, and | ||||||
4 | welfare. | ||||||
5 | (j) In order to provide for the expeditious and timely | ||||||
6 | implementation of the provisions of the State's fiscal year | ||||||
7 | 2005 budget as provided under the Fiscal Year 2005 Budget | ||||||
8 | Implementation (Human Services) Act, emergency rules to | ||||||
9 | implement any provision of the Fiscal Year 2005 Budget | ||||||
10 | Implementation (Human Services) Act may be adopted in | ||||||
11 | accordance with this Section by the agency charged with | ||||||
12 | administering that provision, except that the 24-month | ||||||
13 | limitation on the adoption of emergency rules and the | ||||||
14 | provisions of Sections 5-115 and 5-125 do not apply to rules | ||||||
15 | adopted under this subsection (j). The Department of Public | ||||||
16 | Aid may also adopt rules under this subsection (j) necessary | ||||||
17 | to administer the Illinois Public Aid Code and the Children's | ||||||
18 | Health Insurance Program Act. The adoption of emergency rules | ||||||
19 | authorized by this subsection (j) shall be deemed to be | ||||||
20 | necessary for the public interest, safety, and welfare.
| ||||||
21 | (k) In order to provide for the expeditious and timely | ||||||
22 | implementation of the provisions of the State's fiscal year | ||||||
23 | 2006 budget, emergency rules to implement any provision of | ||||||
24 | Public Act 94-48 or any other budget initiative for fiscal | ||||||
25 | year 2006 may be adopted in accordance with this Section by the | ||||||
26 | agency charged with administering that provision or |
| |||||||
| |||||||
1 | initiative, except that the 24-month limitation on the | ||||||
2 | adoption of emergency rules and the provisions of Sections | ||||||
3 | 5-115 and 5-125 do not apply to rules adopted under this | ||||||
4 | subsection (k). The Department of Healthcare and Family | ||||||
5 | Services may also adopt rules under this subsection (k) | ||||||
6 | necessary to administer the Illinois Public Aid Code, the | ||||||
7 | Senior Citizens and Persons with Disabilities Property Tax | ||||||
8 | Relief Act, the Senior Citizens and Disabled Persons | ||||||
9 | Prescription Drug Discount Program Act (now the Illinois | ||||||
10 | Prescription Drug Discount Program Act), and the Children's | ||||||
11 | Health Insurance Program Act. The adoption of emergency rules | ||||||
12 | authorized by this subsection (k) shall be deemed to be | ||||||
13 | necessary for the public interest, safety, and welfare.
| ||||||
14 | (l) In order to provide for the expeditious and timely | ||||||
15 | implementation of the provisions of the
State's fiscal year | ||||||
16 | 2007 budget, the Department of Healthcare and Family Services | ||||||
17 | may adopt emergency rules during fiscal year 2007, including | ||||||
18 | rules effective July 1, 2007, in
accordance with this | ||||||
19 | subsection to the extent necessary to administer the | ||||||
20 | Department's responsibilities with respect to amendments to | ||||||
21 | the State plans and Illinois waivers approved by the federal | ||||||
22 | Centers for Medicare and Medicaid Services necessitated by the | ||||||
23 | requirements of Title XIX and Title XXI of the federal Social | ||||||
24 | Security Act. The adoption of emergency rules
authorized by | ||||||
25 | this subsection (l) shall be deemed to be necessary for the | ||||||
26 | public interest,
safety, and welfare.
|
| |||||||
| |||||||
1 | (m) In order to provide for the expeditious and timely | ||||||
2 | implementation of the provisions of the
State's fiscal year | ||||||
3 | 2008 budget, the Department of Healthcare and Family Services | ||||||
4 | may adopt emergency rules during fiscal year 2008, including | ||||||
5 | rules effective July 1, 2008, in
accordance with this | ||||||
6 | subsection to the extent necessary to administer the | ||||||
7 | Department's responsibilities with respect to amendments to | ||||||
8 | the State plans and Illinois waivers approved by the federal | ||||||
9 | Centers for Medicare and Medicaid Services necessitated by the | ||||||
10 | requirements of Title XIX and Title XXI of the federal Social | ||||||
11 | Security Act. The adoption of emergency rules
authorized by | ||||||
12 | this subsection (m) shall be deemed to be necessary for the | ||||||
13 | public interest,
safety, and welfare.
| ||||||
14 | (n) In order to provide for the expeditious and timely | ||||||
15 | implementation of the provisions of the State's fiscal year | ||||||
16 | 2010 budget, emergency rules to implement any provision of | ||||||
17 | Public Act 96-45 or any other budget initiative authorized by | ||||||
18 | the 96th General Assembly for fiscal year 2010 may be adopted | ||||||
19 | in accordance with this Section by the agency charged with | ||||||
20 | administering that provision or initiative. The adoption of | ||||||
21 | emergency rules authorized by this subsection (n) shall be | ||||||
22 | deemed to be necessary for the public interest, safety, and | ||||||
23 | welfare. The rulemaking authority granted in this subsection | ||||||
24 | (n) shall apply only to rules promulgated during Fiscal Year | ||||||
25 | 2010. | ||||||
26 | (o) In order to provide for the expeditious and timely |
| |||||||
| |||||||
1 | implementation of the provisions of the State's fiscal year | ||||||
2 | 2011 budget, emergency rules to implement any provision of | ||||||
3 | Public Act 96-958 or any other budget initiative authorized by | ||||||
4 | the 96th General Assembly for fiscal year 2011 may be adopted | ||||||
5 | in accordance with this Section by the agency charged with | ||||||
6 | administering that provision or initiative. The adoption of | ||||||
7 | emergency rules authorized by this subsection (o) is deemed to | ||||||
8 | be necessary for the public interest, safety, and welfare. The | ||||||
9 | rulemaking authority granted in this subsection (o) applies | ||||||
10 | only to rules promulgated on or after July 1, 2010 (the | ||||||
11 | effective date of Public Act 96-958) through June 30, 2011. | ||||||
12 | (p) In order to provide for the expeditious and timely | ||||||
13 | implementation of the provisions of Public Act 97-689, | ||||||
14 | emergency rules to implement any provision of Public Act | ||||||
15 | 97-689 may be adopted in accordance with this subsection (p) | ||||||
16 | by the agency charged with administering that provision or | ||||||
17 | initiative. The 150-day limitation of the effective period of | ||||||
18 | emergency rules does not apply to rules adopted under this | ||||||
19 | subsection (p), and the effective period may continue through | ||||||
20 | June 30, 2013. The 24-month limitation on the adoption of | ||||||
21 | emergency rules does not apply to rules adopted under this | ||||||
22 | subsection (p). The adoption of emergency rules authorized by | ||||||
23 | this subsection (p) is deemed to be necessary for the public | ||||||
24 | interest, safety, and welfare. | ||||||
25 | (q) In order to provide for the expeditious and timely | ||||||
26 | implementation of the provisions of Articles 7, 8, 9, 11, and |
| |||||||
| |||||||
1 | 12 of Public Act 98-104, emergency rules to implement any | ||||||
2 | provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104 | ||||||
3 | may be adopted in accordance with this subsection (q) by the | ||||||
4 | agency charged with administering that provision or | ||||||
5 | initiative. The 24-month limitation on the adoption of | ||||||
6 | emergency rules does not apply to rules adopted under this | ||||||
7 | subsection (q). The adoption of emergency rules authorized by | ||||||
8 | this subsection (q) is deemed to be necessary for the public | ||||||
9 | interest, safety, and welfare. | ||||||
10 | (r) In order to provide for the expeditious and timely | ||||||
11 | implementation of the provisions of Public Act 98-651, | ||||||
12 | emergency rules to implement Public Act 98-651 may be adopted | ||||||
13 | in accordance with this subsection (r) by the Department of | ||||||
14 | Healthcare and Family Services. The 24-month limitation on the | ||||||
15 | adoption of emergency rules does not apply to rules adopted | ||||||
16 | under this subsection (r). The adoption of emergency rules | ||||||
17 | authorized by this subsection (r) is deemed to be necessary | ||||||
18 | for the public interest, safety, and welfare. | ||||||
19 | (s) In order to provide for the expeditious and timely | ||||||
20 | implementation of the provisions of Sections 5-5b.1 and 5A-2 | ||||||
21 | of the Illinois Public Aid Code, emergency rules to implement | ||||||
22 | any provision of Section 5-5b.1 or Section 5A-2 of the | ||||||
23 | Illinois Public Aid Code may be adopted in accordance with | ||||||
24 | this subsection (s) by the Department of Healthcare and Family | ||||||
25 | Services. The rulemaking authority granted in this subsection | ||||||
26 | (s) shall apply only to those rules adopted prior to July 1, |
| |||||||
| |||||||
1 | 2015. Notwithstanding any other provision of this Section, any | ||||||
2 | emergency rule adopted under this subsection (s) shall only | ||||||
3 | apply to payments made for State fiscal year 2015. The | ||||||
4 | adoption of emergency rules authorized by this subsection (s) | ||||||
5 | is deemed to be necessary for the public interest, safety, and | ||||||
6 | welfare. | ||||||
7 | (t) In order to provide for the expeditious and timely | ||||||
8 | implementation of the provisions of Article II of Public Act | ||||||
9 | 99-6, emergency rules to implement the changes made by Article | ||||||
10 | II of Public Act 99-6 to the Emergency Telephone System Act may | ||||||
11 | be adopted in accordance with this subsection (t) by the | ||||||
12 | Department of State Police. The rulemaking authority granted | ||||||
13 | in this subsection (t) shall apply only to those rules adopted | ||||||
14 | prior to July 1, 2016. The 24-month limitation on the adoption | ||||||
15 | of emergency rules does not apply to rules adopted under this | ||||||
16 | subsection (t). The adoption of emergency rules authorized by | ||||||
17 | this subsection (t) is deemed to be necessary for the public | ||||||
18 | interest, safety, and welfare. | ||||||
19 | (u) In order to provide for the expeditious and timely | ||||||
20 | implementation of the provisions of the Burn Victims Relief | ||||||
21 | Act, emergency rules to implement any provision of the Act may | ||||||
22 | be adopted in accordance with this subsection (u) by the | ||||||
23 | Department of Insurance. The rulemaking authority granted in | ||||||
24 | this subsection (u) shall apply only to those rules adopted | ||||||
25 | prior to December 31, 2015. The adoption of emergency rules | ||||||
26 | authorized by this subsection (u) is deemed to be necessary |
| |||||||
| |||||||
1 | for the public interest, safety, and welfare. | ||||||
2 | (v) In order to provide for the expeditious and timely | ||||||
3 | implementation of the provisions of Public Act 99-516, | ||||||
4 | emergency rules to implement Public Act 99-516 may be adopted | ||||||
5 | in accordance with this subsection (v) by the Department of | ||||||
6 | Healthcare and Family Services. The 24-month limitation on the | ||||||
7 | adoption of emergency rules does not apply to rules adopted | ||||||
8 | under this subsection (v). The adoption of emergency rules | ||||||
9 | authorized by this subsection (v) is deemed to be necessary | ||||||
10 | for the public interest, safety, and welfare. | ||||||
11 | (w) In order to provide for the expeditious and timely | ||||||
12 | implementation of the provisions of Public Act 99-796, | ||||||
13 | emergency rules to implement the changes made by Public Act | ||||||
14 | 99-796 may be adopted in accordance with this subsection (w) | ||||||
15 | by the Adjutant General. The adoption of emergency rules | ||||||
16 | authorized by this subsection (w) is deemed to be necessary | ||||||
17 | for the public interest, safety, and welfare. | ||||||
18 | (x) In order to provide for the expeditious and timely | ||||||
19 | implementation of the provisions of Public Act 99-906, | ||||||
20 | emergency rules to implement subsection (i) of Section | ||||||
21 | 16-115D, subsection (g) of Section 16-128A, and subsection (a) | ||||||
22 | of Section 16-128B of the Public Utilities Act may be adopted | ||||||
23 | in accordance with this subsection (x) by the Illinois | ||||||
24 | Commerce Commission. The rulemaking authority granted in this | ||||||
25 | subsection (x) shall apply only to those rules adopted within | ||||||
26 | 180 days after June 1, 2017 (the effective date of Public Act |
| |||||||
| |||||||
1 | 99-906). The adoption of emergency rules authorized by this | ||||||
2 | subsection (x) is deemed to be necessary for the public | ||||||
3 | interest, safety, and welfare. | ||||||
4 | (y) In order to provide for the expeditious and timely | ||||||
5 | implementation of the provisions of Public Act 100-23, | ||||||
6 | emergency rules to implement the changes made by Public Act | ||||||
7 | 100-23 to Section 4.02 of the Illinois Act on the Aging, | ||||||
8 | Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, | ||||||
9 | Section 55-30 of the Alcoholism and Other Drug Abuse and | ||||||
10 | Dependency Act, and Sections 74 and 75 of the Mental Health and | ||||||
11 | Developmental Disabilities Administrative Act may be adopted | ||||||
12 | in accordance with this subsection (y) by the respective | ||||||
13 | Department. The adoption of emergency rules authorized by this | ||||||
14 | subsection (y) is deemed to be necessary for the public | ||||||
15 | interest, safety, and welfare. | ||||||
16 | (z) In order to provide for the expeditious and timely | ||||||
17 | implementation of the provisions of Public Act 100-554, | ||||||
18 | emergency rules to implement the changes made by Public Act | ||||||
19 | 100-554 to Section 4.7 of the Lobbyist Registration Act may be | ||||||
20 | adopted in accordance with this subsection (z) by the | ||||||
21 | Secretary of State. The adoption of emergency rules authorized | ||||||
22 | by this subsection (z) is deemed to be necessary for the public | ||||||
23 | interest, safety, and welfare. | ||||||
24 | (aa) In order to provide for the expeditious and timely | ||||||
25 | initial implementation of the changes made to Articles 5, 5A, | ||||||
26 | 12, and 14 of the Illinois Public Aid Code under the provisions |
| |||||||
| |||||||
1 | of Public Act 100-581, the Department of Healthcare and Family | ||||||
2 | Services may adopt emergency rules in accordance with this | ||||||
3 | subsection (aa). The 24-month limitation on the adoption of | ||||||
4 | emergency rules does not apply to rules to initially implement | ||||||
5 | the changes made to Articles 5, 5A, 12, and 14 of the Illinois | ||||||
6 | Public Aid Code adopted under this subsection (aa). The | ||||||
7 | adoption of emergency rules authorized by this subsection (aa) | ||||||
8 | is deemed to be necessary for the public interest, safety, and | ||||||
9 | welfare. | ||||||
10 | (bb) In order to provide for the expeditious and timely | ||||||
11 | implementation of the provisions of Public Act 100-587, | ||||||
12 | emergency rules to implement the changes made by Public Act | ||||||
13 | 100-587 to Section 4.02 of the Illinois Act on the Aging, | ||||||
14 | Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, | ||||||
15 | subsection (b) of Section 55-30 of the Alcoholism and Other | ||||||
16 | Drug Abuse and Dependency Act, Section 5-104 of the | ||||||
17 | Specialized Mental Health Rehabilitation Act of 2013, and | ||||||
18 | Section 75 and subsection (b) of Section 74 of the Mental | ||||||
19 | Health and Developmental Disabilities Administrative Act may | ||||||
20 | be adopted in accordance with this subsection (bb) by the | ||||||
21 | respective Department. The adoption of emergency rules | ||||||
22 | authorized by this subsection (bb) is deemed to be necessary | ||||||
23 | for the public interest, safety, and welfare. | ||||||
24 | (cc) In order to provide for the expeditious and timely | ||||||
25 | implementation of the provisions of Public Act 100-587, | ||||||
26 | emergency rules may be adopted in accordance with this |
| |||||||
| |||||||
1 | subsection (cc) to implement the changes made by Public Act | ||||||
2 | 100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois | ||||||
3 | Pension Code by the Board created under Article 14 of the Code; | ||||||
4 | Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by | ||||||
5 | the Board created under Article 15 of the Code; and Sections | ||||||
6 | 16-190.5 and 16-190.6 of the Illinois Pension Code by the | ||||||
7 | Board created under Article 16 of the Code. The adoption of | ||||||
8 | emergency rules authorized by this subsection (cc) is deemed | ||||||
9 | to be necessary for the public interest, safety, and welfare. | ||||||
10 | (dd) In order to provide for the expeditious and timely | ||||||
11 | implementation of the provisions of Public Act 100-864, | ||||||
12 | emergency rules to implement the changes made by Public Act | ||||||
13 | 100-864 to Section 3.35 of the Newborn Metabolic Screening Act | ||||||
14 | may be adopted in accordance with this subsection (dd) by the | ||||||
15 | Secretary of State. The adoption of emergency rules authorized | ||||||
16 | by this subsection (dd) is deemed to be necessary for the | ||||||
17 | public interest, safety, and welfare. | ||||||
18 | (ee) In order to provide for the expeditious and timely | ||||||
19 | implementation of the provisions of Public Act 100-1172, | ||||||
20 | emergency rules implementing the Illinois Underground Natural | ||||||
21 | Gas Storage Safety Act may be adopted in accordance with this | ||||||
22 | subsection by the Department of Natural Resources. The | ||||||
23 | adoption of emergency rules authorized by this subsection is | ||||||
24 | deemed to be necessary for the public interest, safety, and | ||||||
25 | welfare. | ||||||
26 | (ff) In order to provide for the expeditious and timely |
| |||||||
| |||||||
1 | initial implementation of the changes made to Articles 5A and | ||||||
2 | 14 of the Illinois Public Aid Code under the provisions of | ||||||
3 | Public Act 100-1181, the Department of Healthcare and Family | ||||||
4 | Services may on a one-time-only basis adopt emergency rules in | ||||||
5 | accordance with this subsection (ff). The 24-month limitation | ||||||
6 | on the adoption of emergency rules does not apply to rules to | ||||||
7 | initially implement the changes made to Articles 5A and 14 of | ||||||
8 | the Illinois Public Aid Code adopted under this subsection | ||||||
9 | (ff). The adoption of emergency rules authorized by this | ||||||
10 | subsection (ff) is deemed to be necessary for the public | ||||||
11 | interest, safety, and welfare. | ||||||
12 | (gg) In order to provide for the expeditious and timely | ||||||
13 | implementation of the provisions of Public Act 101-1, | ||||||
14 | emergency rules may be adopted by the Department of Labor in | ||||||
15 | accordance with this subsection (gg) to implement the changes | ||||||
16 | made by Public Act 101-1 to the Minimum Wage Law. The adoption | ||||||
17 | of emergency rules authorized by this subsection (gg) is | ||||||
18 | deemed to be necessary for the public interest, safety, and | ||||||
19 | welfare. | ||||||
20 | (hh) In order to provide for the expeditious and timely | ||||||
21 | implementation of the provisions of Public Act 101-10, | ||||||
22 | emergency rules may be adopted in accordance with this | ||||||
23 | subsection (hh) to implement the changes made by Public Act | ||||||
24 | 101-10 to subsection (j) of Section 5-5.2 of the Illinois | ||||||
25 | Public Aid Code. The adoption of emergency rules authorized by | ||||||
26 | this subsection (hh) is deemed to be necessary for the public |
| |||||||
| |||||||
1 | interest, safety, and welfare. | ||||||
2 | (ii) In order to provide for the expeditious and timely | ||||||
3 | implementation of the provisions of Public Act 101-10, | ||||||
4 | emergency rules to implement the changes made by Public Act | ||||||
5 | 101-10 to Sections 5-5.4 and 5-5.4i of the Illinois Public Aid | ||||||
6 | Code may be adopted in accordance with this subsection (ii) by | ||||||
7 | the Department of Public Health. The adoption of emergency | ||||||
8 | rules authorized by this subsection (ii) is deemed to be | ||||||
9 | necessary for the public interest, safety, and welfare. | ||||||
10 | (jj) In order to provide for the expeditious and timely | ||||||
11 | implementation of the provisions of Public Act 101-10, | ||||||
12 | emergency rules to implement the changes made by Public Act | ||||||
13 | 101-10 to Section 74 of the Mental Health and Developmental | ||||||
14 | Disabilities Administrative Act may be adopted in accordance | ||||||
15 | with this subsection (jj) by the Department of Human Services. | ||||||
16 | The adoption of emergency rules authorized by this subsection | ||||||
17 | (jj) is deemed to be necessary for the public interest, | ||||||
18 | safety, and welfare. | ||||||
19 | (kk) In order to provide for the expeditious and timely | ||||||
20 | implementation of the Cannabis Regulation and Tax Act and | ||||||
21 | Public Act 101-27, the Department of Revenue, the Department | ||||||
22 | of Public Health, the Department of Agriculture, the | ||||||
23 | Department of State Police, and the Department of Financial | ||||||
24 | and Professional Regulation may adopt emergency rules in | ||||||
25 | accordance with this subsection (kk). The rulemaking authority | ||||||
26 | granted in this subsection (kk) shall apply only to rules |
| |||||||
| |||||||
1 | adopted before December 31, 2021. Notwithstanding the | ||||||
2 | provisions of subsection (c), emergency rules adopted under | ||||||
3 | this subsection (kk) shall be effective for 180 days. The | ||||||
4 | adoption of emergency rules authorized by this subsection (kk) | ||||||
5 | is deemed to be necessary for the public interest, safety, and | ||||||
6 | welfare. | ||||||
7 | (ll) In order to provide for the expeditious and timely | ||||||
8 | implementation of the provisions of the Leveling the Playing | ||||||
9 | Field for Illinois Retail Act, emergency rules may be adopted | ||||||
10 | in accordance with this subsection (ll) to implement the | ||||||
11 | changes made by the Leveling the Playing Field for Illinois | ||||||
12 | Retail Act. The adoption of emergency rules authorized by this | ||||||
13 | subsection (ll) is deemed to be necessary for the public | ||||||
14 | interest, safety, and welfare. | ||||||
15 | (mm) In order to provide for the expeditious and timely | ||||||
16 | implementation of the provisions of Section 25-70 of the | ||||||
17 | Sports Wagering Act, emergency rules to implement Section | ||||||
18 | 25-70 of the Sports Wagering Act may be adopted in accordance | ||||||
19 | with this subsection (mm) by the Department of the Lottery as | ||||||
20 | provided in the Sports Wagering Act. The adoption of emergency | ||||||
21 | rules authorized by this subsection (mm) is deemed to be | ||||||
22 | necessary for the public interest, safety, and welfare. | ||||||
23 | (nn) In order to provide for the expeditious and timely | ||||||
24 | implementation of the Sports Wagering Act, emergency rules to | ||||||
25 | implement the Sports Wagering Act may be adopted in accordance | ||||||
26 | with this subsection (nn) by the Illinois Gaming Board. The |
| |||||||
| |||||||
1 | adoption of emergency rules authorized by this subsection (nn) | ||||||
2 | is deemed to be necessary for the public interest, safety, and | ||||||
3 | welfare. | ||||||
4 | (oo) In order to provide for the expeditious and timely | ||||||
5 | implementation of the provisions of subsection (c) of Section | ||||||
6 | 20 of the Video Gaming Act, emergency rules to implement the | ||||||
7 | provisions of subsection (c) of Section 20 of the Video Gaming | ||||||
8 | Act may be adopted in accordance with this subsection (oo) by | ||||||
9 | the Illinois Gaming Board. The adoption of emergency rules | ||||||
10 | authorized by this subsection (oo) is deemed to be necessary | ||||||
11 | for the public interest, safety, and welfare. | ||||||
12 | (pp) In order to provide for the expeditious and timely
| ||||||
13 | implementation of the provisions of Section 50 of the Sexual
| ||||||
14 | Assault Evidence Submission Act, emergency rules to implement
| ||||||
15 | Section 50 of the Sexual Assault Evidence Submission Act may | ||||||
16 | be
adopted in accordance with this subsection (pp) by the
| ||||||
17 | Department of State Police. The adoption of emergency rules
| ||||||
18 | authorized by this subsection (pp) is deemed to be necessary
| ||||||
19 | for the public interest, safety, and welfare. | ||||||
20 | (qq) In order to provide for the expeditious and timely | ||||||
21 | implementation of the provisions of the Illinois Works Jobs | ||||||
22 | Program Act, emergency rules may be adopted in accordance with | ||||||
23 | this subsection (qq) to implement the Illinois Works Jobs | ||||||
24 | Program Act. The adoption of emergency rules authorized by | ||||||
25 | this subsection (qq) is deemed to be necessary for the public | ||||||
26 | interest, safety, and welfare. |
| |||||||
| |||||||
1 | (rr) In order to provide for the expeditious and timely | ||||||
2 | implementation of the Illinois Energy Transition Zone Act, | ||||||
3 | emergency rules to implement the provisions of subsection | ||||||
4 | (a-5) of Section 1-40 of the Illinois Energy Transition Zone | ||||||
5 | Act may be adopted in accordance with this subsection (aa) by | ||||||
6 | the Department of Commerce and Economic Opportunity for period | ||||||
7 | of 12 months after the effective date of the Illinois Energy | ||||||
8 | Transition Zone Act. The adoption of emergency rules | ||||||
9 | authorized by this subsection (aa) is deemed to be necessary | ||||||
10 | for the public interest, safety, and welfare. | ||||||
11 | (Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17; | ||||||
12 | 100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff. | ||||||
13 | 6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18; | ||||||
14 | 100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff. | ||||||
15 | 3-8-19; 101-1, eff. 2-19-19; 101-10, Article 20, Section 20-5, | ||||||
16 | eff. 6-5-19; 101-10, Article 35, Section 35-5, eff. 6-5-19; | ||||||
17 | 101-27, eff. 6-25-19; 101-31, Article 15, Section 15-5, eff. | ||||||
18 | 6-28-19; 101-31, Article 25, Section 25-900, eff. 6-28-19; | ||||||
19 | 101-31, Article 35, Section 35-3, eff. 6-28-19; 101-377, eff. | ||||||
20 | 8-16-19; 101-601, eff. 12-10-19.) | ||||||
21 | Section 10-10. The State Finance Act is amended by adding | ||||||
22 | Section 5.935 as follows: | ||||||
23 | (30 ILCS 105/5.935 new) | ||||||
24 | Sec. 5.935. The Energy Transition Fund. |
| |||||||
| |||||||
1 | Section 10-15. The State Mandates Act is amended by adding | ||||||
2 | Section 8.45 as follows: | ||||||
3 | (30 ILCS 805/8.45 new) | ||||||
4 | Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and | ||||||
5 | 8 of this Act, no reimbursement by the State is required for | ||||||
6 | the implementation of any mandate created by this amendatory | ||||||
7 | Act of the 102nd General Assembly. | ||||||
8 | Section 10-20. The Illinois Income Tax Act is amended by | ||||||
9 | changing Section 201 as follows:
| ||||||
10 | (35 ILCS 5/201)
| ||||||
11 | (Text of Section without the changes made by P.A. 101-8, | ||||||
12 | which did not take effect (see Section 99 of P.A. 101-8)) | ||||||
13 | Sec. 201. Tax imposed. | ||||||
14 | (a) In general. A tax measured by net income is hereby | ||||||
15 | imposed on every
individual, corporation, trust and estate for | ||||||
16 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
17 | of earning or receiving income in or
as a resident of this | ||||||
18 | State. Such tax shall be in addition to all other
occupation or | ||||||
19 | privilege taxes imposed by this State or by any municipal
| ||||||
20 | corporation or political subdivision thereof. | ||||||
21 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
22 | Section shall be
determined as follows, except as adjusted by |
| |||||||
| |||||||
1 | subsection (d-1): | ||||||
2 | (1) In the case of an individual, trust or estate, for | ||||||
3 | taxable years
ending prior to July 1, 1989, an amount | ||||||
4 | equal to 2 1/2% of the taxpayer's
net income for the | ||||||
5 | taxable year. | ||||||
6 | (2) In the case of an individual, trust or estate, for | ||||||
7 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
8 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
9 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
10 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
11 | 3% of the
taxpayer's net income for the period after June | ||||||
12 | 30, 1989, as calculated
under Section 202.3. | ||||||
13 | (3) In the case of an individual, trust or estate, for | ||||||
14 | taxable years
beginning after June 30, 1989, and ending | ||||||
15 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
16 | taxpayer's net
income for the taxable year. | ||||||
17 | (4) In the case of an individual, trust, or estate, | ||||||
18 | for taxable years beginning prior to January 1, 2011, and | ||||||
19 | ending after December 31, 2010, an amount equal to the sum | ||||||
20 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
21 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
22 | (ii) 5% of the taxpayer's net income for the period after | ||||||
23 | December 31, 2010, as calculated under Section 202.5. | ||||||
24 | (5) In the case of an individual, trust, or estate, | ||||||
25 | for taxable years beginning on or after January 1, 2011, | ||||||
26 | and ending prior to January 1, 2015, an amount equal to 5% |
| |||||||
| |||||||
1 | of the taxpayer's net income for the taxable year. | ||||||
2 | (5.1) In the case of an individual, trust, or estate, | ||||||
3 | for taxable years beginning prior to January 1, 2015, and | ||||||
4 | ending after December 31, 2014, an amount equal to the sum | ||||||
5 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
6 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
7 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
8 | after December 31, 2014, as calculated under Section | ||||||
9 | 202.5. | ||||||
10 | (5.2) In the case of an individual, trust, or estate, | ||||||
11 | for taxable years beginning on or after January 1, 2015, | ||||||
12 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
13 | of the taxpayer's net income for the taxable year. | ||||||
14 | (5.3) In the case of an individual, trust, or estate, | ||||||
15 | for taxable years beginning prior to July 1, 2017, and | ||||||
16 | ending after June 30, 2017, an amount equal to the sum of | ||||||
17 | (i) 3.75% of the taxpayer's net income for the period | ||||||
18 | prior to July 1, 2017, as calculated under Section 202.5, | ||||||
19 | and (ii) 4.95% of the taxpayer's net income for the period | ||||||
20 | after June 30, 2017, as calculated under Section 202.5. | ||||||
21 | (5.4) In the case of an individual, trust, or estate, | ||||||
22 | for taxable years beginning on or after July 1, 2017, an | ||||||
23 | amount equal to 4.95% of the taxpayer's net income for the | ||||||
24 | taxable year. | ||||||
25 | (6) In the case of a corporation, for taxable years
| ||||||
26 | ending prior to July 1, 1989, an amount equal to 4% of the
|
| |||||||
| |||||||
1 | taxpayer's net income for the taxable year. | ||||||
2 | (7) In the case of a corporation, for taxable years | ||||||
3 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
4 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
5 | taxpayer's net income for the period prior to July 1, | ||||||
6 | 1989,
as calculated under Section 202.3, and (ii) 4.8% of | ||||||
7 | the taxpayer's net
income for the period after June 30, | ||||||
8 | 1989, as calculated under Section
202.3. | ||||||
9 | (8) In the case of a corporation, for taxable years | ||||||
10 | beginning after
June 30, 1989, and ending prior to January | ||||||
11 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
12 | income for the
taxable year. | ||||||
13 | (9) In the case of a corporation, for taxable years | ||||||
14 | beginning prior to January 1, 2011, and ending after | ||||||
15 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
16 | of the taxpayer's net income for the period prior to | ||||||
17 | January 1, 2011, as calculated under Section 202.5, and | ||||||
18 | (ii) 7% of the taxpayer's net income for the period after | ||||||
19 | December 31, 2010, as calculated under Section 202.5. | ||||||
20 | (10) In the case of a corporation, for taxable years | ||||||
21 | beginning on or after January 1, 2011, and ending prior to | ||||||
22 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
23 | net income for the taxable year. | ||||||
24 | (11) In the case of a corporation, for taxable years | ||||||
25 | beginning prior to January 1, 2015, and ending after | ||||||
26 | December 31, 2014, an amount equal to the sum of (i) 7% of |
| |||||||
| |||||||
1 | the taxpayer's net income for the period prior to January | ||||||
2 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
3 | of the taxpayer's net income for the period after December | ||||||
4 | 31, 2014, as calculated under Section 202.5. | ||||||
5 | (12) In the case of a corporation, for taxable years | ||||||
6 | beginning on or after January 1, 2015, and ending prior to | ||||||
7 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
8 | net income for the taxable year. | ||||||
9 | (13) In the case of a corporation, for taxable years | ||||||
10 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
11 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
12 | taxpayer's net income for the period prior to July 1, | ||||||
13 | 2017, as calculated under Section 202.5, and (ii) 7% of | ||||||
14 | the taxpayer's net income for the period after June 30, | ||||||
15 | 2017, as calculated under Section 202.5. | ||||||
16 | (14) In the case of a corporation, for taxable years | ||||||
17 | beginning on or after July 1, 2017, an amount equal to 7% | ||||||
18 | of the taxpayer's net income for the taxable year. | ||||||
19 | The rates under this subsection (b) are subject to the | ||||||
20 | provisions of Section 201.5. | ||||||
21 | (b-5) Surcharge; sale or exchange of assets, properties, | ||||||
22 | and intangibles of organization gaming licensees. For each of | ||||||
23 | taxable years 2019 through 2027, a surcharge is imposed on all | ||||||
24 | taxpayers on income arising from the sale or exchange of | ||||||
25 | capital assets, depreciable business property, real property | ||||||
26 | used in the trade or business, and Section 197 intangibles (i) |
| |||||||
| |||||||
1 | of an organization licensee under the Illinois Horse Racing | ||||||
2 | Act of 1975 and (ii) of an organization gaming licensee under | ||||||
3 | the Illinois Gambling Act. The amount of the surcharge is | ||||||
4 | equal to the amount of federal income tax liability for the | ||||||
5 | taxable year attributable to those sales and exchanges. The | ||||||
6 | surcharge imposed shall not apply if: | ||||||
7 | (1) the organization gaming license, organization | ||||||
8 | license, or racetrack property is transferred as a result | ||||||
9 | of any of the following: | ||||||
10 | (A) bankruptcy, a receivership, or a debt | ||||||
11 | adjustment initiated by or against the initial | ||||||
12 | licensee or the substantial owners of the initial | ||||||
13 | licensee; | ||||||
14 | (B) cancellation, revocation, or termination of | ||||||
15 | any such license by the Illinois Gaming Board or the | ||||||
16 | Illinois Racing Board; | ||||||
17 | (C) a determination by the Illinois Gaming Board | ||||||
18 | that transfer of the license is in the best interests | ||||||
19 | of Illinois gaming; | ||||||
20 | (D) the death of an owner of the equity interest in | ||||||
21 | a licensee; | ||||||
22 | (E) the acquisition of a controlling interest in | ||||||
23 | the stock or substantially all of the assets of a | ||||||
24 | publicly traded company; | ||||||
25 | (F) a transfer by a parent company to a wholly | ||||||
26 | owned subsidiary; or |
| |||||||
| |||||||
1 | (G) the transfer or sale to or by one person to | ||||||
2 | another person where both persons were initial owners | ||||||
3 | of the license when the license was issued; or | ||||||
4 | (2) the controlling interest in the organization | ||||||
5 | gaming license, organization license, or racetrack | ||||||
6 | property is transferred in a transaction to lineal | ||||||
7 | descendants in which no gain or loss is recognized or as a | ||||||
8 | result of a transaction in accordance with Section 351 of | ||||||
9 | the Internal Revenue Code in which no gain or loss is | ||||||
10 | recognized; or | ||||||
11 | (3) live horse racing was not conducted in 2010 at a | ||||||
12 | racetrack located within 3 miles of the Mississippi River | ||||||
13 | under a license issued pursuant to the Illinois Horse | ||||||
14 | Racing Act of 1975. | ||||||
15 | The transfer of an organization gaming license, | ||||||
16 | organization license, or racetrack property by a person other | ||||||
17 | than the initial licensee to receive the organization gaming | ||||||
18 | license is not subject to a surcharge. The Department shall | ||||||
19 | adopt rules necessary to implement and administer this | ||||||
20 | subsection. | ||||||
21 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
22 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
23 | income
tax, there is also hereby imposed the Personal Property | ||||||
24 | Tax Replacement
Income Tax measured by net income on every | ||||||
25 | corporation (including Subchapter
S corporations), partnership | ||||||
26 | and trust, for each taxable year ending after
June 30, 1979. |
| |||||||
| |||||||
1 | Such taxes are imposed on the privilege of earning or
| ||||||
2 | receiving income in or as a resident of this State. The | ||||||
3 | Personal Property
Tax Replacement Income Tax shall be in | ||||||
4 | addition to the income tax imposed
by subsections (a) and (b) | ||||||
5 | of this Section and in addition to all other
occupation or | ||||||
6 | privilege taxes imposed by this State or by any municipal
| ||||||
7 | corporation or political subdivision thereof. | ||||||
8 | (d) Additional Personal Property Tax Replacement Income | ||||||
9 | Tax Rates.
The personal property tax replacement income tax | ||||||
10 | imposed by this subsection
and subsection (c) of this Section | ||||||
11 | in the case of a corporation, other
than a Subchapter S | ||||||
12 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
13 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
14 | income for the taxable year, except that
beginning on January | ||||||
15 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
16 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
17 | partnership, trust or a Subchapter S corporation shall be an | ||||||
18 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
19 | for the taxable year. | ||||||
20 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
21 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
22 | Illinois Insurance Code,
whose state or country of domicile | ||||||
23 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
24 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
25 | are 50% or more of its total insurance
premiums as determined | ||||||
26 | under paragraph (2) of subsection (b) of Section 304,
except |
| |||||||
| |||||||
1 | that for purposes of this determination premiums from | ||||||
2 | reinsurance do
not include premiums from inter-affiliate | ||||||
3 | reinsurance arrangements),
beginning with taxable years ending | ||||||
4 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
5 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
6 | increased) to the rate at which the total amount of tax imposed | ||||||
7 | under this Act,
net of all credits allowed under this Act, | ||||||
8 | shall equal (i) the total amount of
tax that would be imposed | ||||||
9 | on the foreign insurer's net income allocable to
Illinois for | ||||||
10 | the taxable year by such foreign insurer's state or country of
| ||||||
11 | domicile if that net income were subject to all income taxes | ||||||
12 | and taxes
measured by net income imposed by such foreign | ||||||
13 | insurer's state or country of
domicile, net of all credits | ||||||
14 | allowed or (ii) a rate of zero if no such tax is
imposed on | ||||||
15 | such income by the foreign insurer's state of domicile.
For | ||||||
16 | the purposes of this subsection (d-1), an inter-affiliate | ||||||
17 | includes a
mutual insurer under common management. | ||||||
18 | (1) For the purposes of subsection (d-1), in no event | ||||||
19 | shall the sum of the
rates of tax imposed by subsections | ||||||
20 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
21 | (A) the total amount of tax imposed on such | ||||||
22 | foreign insurer under
this Act for a taxable year, net | ||||||
23 | of all credits allowed under this Act, plus | ||||||
24 | (B) the privilege tax imposed by Section 409 of | ||||||
25 | the Illinois Insurance
Code, the fire insurance | ||||||
26 | company tax imposed by Section 12 of the Fire
|
| |||||||
| |||||||
1 | Investigation Act, and the fire department taxes | ||||||
2 | imposed under Section 11-10-1
of the Illinois | ||||||
3 | Municipal Code, | ||||||
4 | equals 1.25% for taxable years ending prior to December | ||||||
5 | 31, 2003, or
1.75% for taxable years ending on or after | ||||||
6 | December 31, 2003, of the net
taxable premiums written for | ||||||
7 | the taxable year,
as described by subsection (1) of | ||||||
8 | Section 409 of the Illinois Insurance Code.
This paragraph | ||||||
9 | will in no event increase the rates imposed under | ||||||
10 | subsections
(b) and (d). | ||||||
11 | (2) Any reduction in the rates of tax imposed by this | ||||||
12 | subsection shall be
applied first against the rates | ||||||
13 | imposed by subsection (b) and only after the
tax imposed | ||||||
14 | by subsection (a) net of all credits allowed under this | ||||||
15 | Section
other than the credit allowed under subsection (i) | ||||||
16 | has been reduced to zero,
against the rates imposed by | ||||||
17 | subsection (d). | ||||||
18 | This subsection (d-1) is exempt from the provisions of | ||||||
19 | Section 250. | ||||||
20 | (e) Investment credit. A taxpayer shall be allowed a | ||||||
21 | credit
against the Personal Property Tax Replacement Income | ||||||
22 | Tax for
investment in qualified property. | ||||||
23 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
24 | of
the basis of qualified property placed in service | ||||||
25 | during the taxable year,
provided such property is placed | ||||||
26 | in service on or after
July 1, 1984. There shall be allowed |
| |||||||
| |||||||
1 | an additional credit equal
to .5% of the basis of | ||||||
2 | qualified property placed in service during the
taxable | ||||||
3 | year, provided such property is placed in service on or
| ||||||
4 | after July 1, 1986, and the taxpayer's base employment
| ||||||
5 | within Illinois has increased by 1% or more over the | ||||||
6 | preceding year as
determined by the taxpayer's employment | ||||||
7 | records filed with the
Illinois Department of Employment | ||||||
8 | Security. Taxpayers who are new to
Illinois shall be | ||||||
9 | deemed to have met the 1% growth in base employment for
the | ||||||
10 | first year in which they file employment records with the | ||||||
11 | Illinois
Department of Employment Security. The provisions | ||||||
12 | added to this Section by
Public Act 85-1200 (and restored | ||||||
13 | by Public Act 87-895) shall be
construed as declaratory of | ||||||
14 | existing law and not as a new enactment. If,
in any year, | ||||||
15 | the increase in base employment within Illinois over the
| ||||||
16 | preceding year is less than 1%, the additional credit | ||||||
17 | shall be limited to that
percentage times a fraction, the | ||||||
18 | numerator of which is .5% and the denominator
of which is | ||||||
19 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
20 | not be
allowed to the extent that it would reduce a | ||||||
21 | taxpayer's liability in any tax
year below zero, nor may | ||||||
22 | any credit for qualified property be allowed for any
year | ||||||
23 | other than the year in which the property was placed in | ||||||
24 | service in
Illinois. For tax years ending on or after | ||||||
25 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
26 | credit shall be allowed for the tax year in
which the |
| |||||||
| |||||||
1 | property is placed in service, or, if the amount of the | ||||||
2 | credit
exceeds the tax liability for that year, whether it | ||||||
3 | exceeds the original
liability or the liability as later | ||||||
4 | amended, such excess may be carried
forward and applied to | ||||||
5 | the tax liability of the 5 taxable years following
the | ||||||
6 | excess credit years if the taxpayer (i) makes investments | ||||||
7 | which cause
the creation of a minimum of 2,000 full-time | ||||||
8 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
9 | enterprise zone established pursuant to the Illinois
| ||||||
10 | Enterprise Zone Act and (iii) is certified by the | ||||||
11 | Department of Commerce
and Community Affairs (now | ||||||
12 | Department of Commerce and Economic Opportunity) as | ||||||
13 | complying with the requirements specified in
clause (i) | ||||||
14 | and (ii) by July 1, 1986. The Department of Commerce and
| ||||||
15 | Community Affairs (now Department of Commerce and Economic | ||||||
16 | Opportunity) shall notify the Department of Revenue of all | ||||||
17 | such
certifications immediately. For tax years ending | ||||||
18 | after December 31, 1988,
the credit shall be allowed for | ||||||
19 | the tax year in which the property is
placed in service, | ||||||
20 | or, if the amount of the credit exceeds the tax
liability | ||||||
21 | for that year, whether it exceeds the original liability | ||||||
22 | or the
liability as later amended, such excess may be | ||||||
23 | carried forward and applied
to the tax liability of the 5 | ||||||
24 | taxable years following the excess credit
years. The | ||||||
25 | credit shall be applied to the earliest year for which | ||||||
26 | there is
a liability. If there is credit from more than one |
| |||||||
| |||||||
1 | tax year that is
available to offset a liability, earlier | ||||||
2 | credit shall be applied first. | ||||||
3 | (2) The term "qualified property" means property | ||||||
4 | which: | ||||||
5 | (A) is tangible, whether new or used, including | ||||||
6 | buildings and structural
components of buildings and | ||||||
7 | signs that are real property, but not including
land | ||||||
8 | or improvements to real property that are not a | ||||||
9 | structural component of a
building such as | ||||||
10 | landscaping, sewer lines, local access roads, fencing, | ||||||
11 | parking
lots, and other appurtenances; | ||||||
12 | (B) is depreciable pursuant to Section 167 of the | ||||||
13 | Internal Revenue Code,
except that "3-year property" | ||||||
14 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
15 | eligible for the credit provided by this subsection | ||||||
16 | (e); | ||||||
17 | (C) is acquired by purchase as defined in Section | ||||||
18 | 179(d) of
the Internal Revenue Code; | ||||||
19 | (D) is used in Illinois by a taxpayer who is | ||||||
20 | primarily engaged in
manufacturing, or in mining coal | ||||||
21 | or fluorite, or in retailing, or was placed in service | ||||||
22 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
23 | Zone established pursuant to the River Edge | ||||||
24 | Redevelopment Zone Act; and | ||||||
25 | (E) has not previously been used in Illinois in | ||||||
26 | such a manner and by
such a person as would qualify for |
| |||||||
| |||||||
1 | the credit provided by this subsection
(e) or | ||||||
2 | subsection (f). | ||||||
3 | (3) For purposes of this subsection (e), | ||||||
4 | "manufacturing" means
the material staging and production | ||||||
5 | of tangible personal property by
procedures commonly | ||||||
6 | regarded as manufacturing, processing, fabrication, or
| ||||||
7 | assembling which changes some existing material into new | ||||||
8 | shapes, new
qualities, or new combinations. For purposes | ||||||
9 | of this subsection
(e) the term "mining" shall have the | ||||||
10 | same meaning as the term "mining" in
Section 613(c) of the | ||||||
11 | Internal Revenue Code. For purposes of this subsection
| ||||||
12 | (e), the term "retailing" means the sale of tangible | ||||||
13 | personal property for use or consumption and not for | ||||||
14 | resale, or
services rendered in conjunction with the sale | ||||||
15 | of tangible personal property for use or consumption and | ||||||
16 | not for resale. For purposes of this subsection (e), | ||||||
17 | "tangible personal property" has the same meaning as when | ||||||
18 | that term is used in the Retailers' Occupation Tax Act, | ||||||
19 | and, for taxable years ending after December 31, 2008, | ||||||
20 | does not include the generation, transmission, or | ||||||
21 | distribution of electricity. | ||||||
22 | (4) The basis of qualified property shall be the basis
| ||||||
23 | used to compute the depreciation deduction for federal | ||||||
24 | income tax purposes. | ||||||
25 | (5) If the basis of the property for federal income | ||||||
26 | tax depreciation
purposes is increased after it has been |
| |||||||
| |||||||
1 | placed in service in Illinois by
the taxpayer, the amount | ||||||
2 | of such increase shall be deemed property placed
in | ||||||
3 | service on the date of such increase in basis. | ||||||
4 | (6) The term "placed in service" shall have the same
| ||||||
5 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
6 | (7) If during any taxable year, any property ceases to
| ||||||
7 | be qualified property in the hands of the taxpayer within | ||||||
8 | 48 months after
being placed in service, or the situs of | ||||||
9 | any qualified property is
moved outside Illinois within 48 | ||||||
10 | months after being placed in service, the
Personal | ||||||
11 | Property Tax Replacement Income Tax for such taxable year | ||||||
12 | shall be
increased. Such increase shall be determined by | ||||||
13 | (i) recomputing the
investment credit which would have | ||||||
14 | been allowed for the year in which
credit for such | ||||||
15 | property was originally allowed by eliminating such
| ||||||
16 | property from such computation and, (ii) subtracting such | ||||||
17 | recomputed credit
from the amount of credit previously | ||||||
18 | allowed. For the purposes of this
paragraph (7), a | ||||||
19 | reduction of the basis of qualified property resulting
| ||||||
20 | from a redetermination of the purchase price shall be | ||||||
21 | deemed a disposition
of qualified property to the extent | ||||||
22 | of such reduction. | ||||||
23 | (8) Unless the investment credit is extended by law, | ||||||
24 | the
basis of qualified property shall not include costs | ||||||
25 | incurred after
December 31, 2018, except for costs | ||||||
26 | incurred pursuant to a binding
contract entered into on or |
| |||||||
| |||||||
1 | before December 31, 2018. | ||||||
2 | (9) Each taxable year ending before December 31, 2000, | ||||||
3 | a partnership may
elect to pass through to its
partners | ||||||
4 | the credits to which the partnership is entitled under | ||||||
5 | this subsection
(e) for the taxable year. A partner may | ||||||
6 | use the credit allocated to him or her
under this | ||||||
7 | paragraph only against the tax imposed in subsections (c) | ||||||
8 | and (d) of
this Section. If the partnership makes that | ||||||
9 | election, those credits shall be
allocated among the | ||||||
10 | partners in the partnership in accordance with the rules
| ||||||
11 | set forth in Section 704(b) of the Internal Revenue Code, | ||||||
12 | and the rules
promulgated under that Section, and the | ||||||
13 | allocated amount of the credits shall
be allowed to the | ||||||
14 | partners for that taxable year. The partnership shall make
| ||||||
15 | this election on its Personal Property Tax Replacement | ||||||
16 | Income Tax return for
that taxable year. The election to | ||||||
17 | pass through the credits shall be
irrevocable. | ||||||
18 | For taxable years ending on or after December 31, | ||||||
19 | 2000, a
partner that qualifies its
partnership for a | ||||||
20 | subtraction under subparagraph (I) of paragraph (2) of
| ||||||
21 | subsection (d) of Section 203 or a shareholder that | ||||||
22 | qualifies a Subchapter S
corporation for a subtraction | ||||||
23 | under subparagraph (S) of paragraph (2) of
subsection (b) | ||||||
24 | of Section 203 shall be allowed a credit under this | ||||||
25 | subsection
(e) equal to its share of the credit earned | ||||||
26 | under this subsection (e) during
the taxable year by the |
| |||||||
| |||||||
1 | partnership or Subchapter S corporation, determined in
| ||||||
2 | accordance with the determination of income and | ||||||
3 | distributive share of
income under Sections 702 and 704 | ||||||
4 | and Subchapter S of the Internal Revenue
Code. This | ||||||
5 | paragraph is exempt from the provisions of Section 250. | ||||||
6 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
7 | Redevelopment Zone. | ||||||
8 | (1) A taxpayer shall be allowed a credit against the | ||||||
9 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
10 | investment in qualified
property which is placed in | ||||||
11 | service in an Enterprise Zone created
pursuant to the | ||||||
12 | Illinois Enterprise Zone Act or, for property placed in | ||||||
13 | service on or after July 1, 2006, a River Edge | ||||||
14 | Redevelopment Zone established pursuant to the River Edge | ||||||
15 | Redevelopment Zone Act. For partners, shareholders
of | ||||||
16 | Subchapter S corporations, and owners of limited liability | ||||||
17 | companies,
if the liability company is treated as a | ||||||
18 | partnership for purposes of
federal and State income | ||||||
19 | taxation, there shall be allowed a credit under
this | ||||||
20 | subsection (f) to be determined in accordance with the | ||||||
21 | determination
of income and distributive share of income | ||||||
22 | under Sections 702 and 704 and
Subchapter S of the | ||||||
23 | Internal Revenue Code. The credit shall be .5% of the
| ||||||
24 | basis for such property. The credit shall be available | ||||||
25 | only in the taxable
year in which the property is placed in | ||||||
26 | service in the Enterprise Zone or River Edge Redevelopment |
| |||||||
| |||||||
1 | Zone and
shall not be allowed to the extent that it would | ||||||
2 | reduce a taxpayer's
liability for the tax imposed by | ||||||
3 | subsections (a) and (b) of this Section to
below zero. For | ||||||
4 | tax years ending on or after December 31, 1985, the credit
| ||||||
5 | shall be allowed for the tax year in which the property is | ||||||
6 | placed in
service, or, if the amount of the credit exceeds | ||||||
7 | the tax liability for that
year, whether it exceeds the | ||||||
8 | original liability or the liability as later
amended, such | ||||||
9 | excess may be carried forward and applied to the tax
| ||||||
10 | liability of the 5 taxable years following the excess | ||||||
11 | credit year.
The credit shall be applied to the earliest | ||||||
12 | year for which there is a
liability. If there is credit | ||||||
13 | from more than one tax year that is available
to offset a | ||||||
14 | liability, the credit accruing first in time shall be | ||||||
15 | applied
first. | ||||||
16 | (2) The term qualified property means property which: | ||||||
17 | (A) is tangible, whether new or used, including | ||||||
18 | buildings and
structural components of buildings; | ||||||
19 | (B) is depreciable pursuant to Section 167 of the | ||||||
20 | Internal Revenue
Code, except that "3-year property" | ||||||
21 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
22 | eligible for the credit provided by this subsection | ||||||
23 | (f); | ||||||
24 | (C) is acquired by purchase as defined in Section | ||||||
25 | 179(d) of
the Internal Revenue Code; | ||||||
26 | (D) is used in the Enterprise Zone or River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone by the taxpayer; and | ||||||
2 | (E) has not been previously used in Illinois in | ||||||
3 | such a manner and by
such a person as would qualify for | ||||||
4 | the credit provided by this subsection
(f) or | ||||||
5 | subsection (e). | ||||||
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 | ||||||
10 | tax depreciation
purposes is increased after it has been | ||||||
11 | placed in service in the Enterprise
Zone or River Edge | ||||||
12 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
13 | increase shall be deemed property
placed in service on the | ||||||
14 | 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, any property ceases to | ||||||
18 | be qualified
property in the hands of the taxpayer within | ||||||
19 | 48 months after being placed
in service, or the situs of | ||||||
20 | any qualified property is moved outside the
Enterprise | ||||||
21 | Zone or River Edge Redevelopment Zone within 48 months | ||||||
22 | 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 |
| |||||||
| |||||||
1 | property was originally allowed by eliminating such
| ||||||
2 | property from such computation, and (ii) subtracting such | ||||||
3 | recomputed credit
from the amount of credit previously | ||||||
4 | allowed. For the purposes of this
paragraph (6), a | ||||||
5 | reduction of the basis of qualified property resulting
| ||||||
6 | from a redetermination of the purchase price shall be | ||||||
7 | deemed a disposition
of qualified property to the extent | ||||||
8 | of such reduction. | ||||||
9 | (7) There shall be allowed an additional credit equal | ||||||
10 | to 0.5% of the basis of qualified property placed in | ||||||
11 | service during the taxable year in a River Edge | ||||||
12 | Redevelopment Zone, provided such property is placed in | ||||||
13 | service on or after July 1, 2006, and the taxpayer's base | ||||||
14 | employment within Illinois has increased by 1% or more | ||||||
15 | over the preceding year as determined by the taxpayer's | ||||||
16 | employment records filed with the Illinois Department of | ||||||
17 | Employment Security. Taxpayers who are new to Illinois | ||||||
18 | shall be deemed to have met the 1% growth in base | ||||||
19 | employment for the first year in which they file | ||||||
20 | employment records with the Illinois Department of | ||||||
21 | Employment Security. If, in any year, the increase in base | ||||||
22 | employment within Illinois over the preceding year is less | ||||||
23 | than 1%, the additional credit shall be limited to that | ||||||
24 | percentage times a fraction, the numerator of which is | ||||||
25 | 0.5% and the denominator of which is 1%, but shall not | ||||||
26 | exceed 0.5%.
|
| |||||||
| |||||||
1 | (8) For taxable years beginning on or after January 1, | ||||||
2 | 2021, there shall be allowed an Enterprise Zone | ||||||
3 | construction jobs credit against the taxes imposed under | ||||||
4 | subsections (a) and (b) of this Section as provided in | ||||||
5 | Section 13 of the Illinois Enterprise Zone Act. | ||||||
6 | The credit or credits may not reduce the taxpayer's | ||||||
7 | liability to less than zero. If the amount of the credit or | ||||||
8 | credits exceeds the taxpayer's liability, the excess may | ||||||
9 | be carried forward and applied against the taxpayer's | ||||||
10 | liability in succeeding calendar years in the same manner | ||||||
11 | provided under paragraph (4) of Section 211 of this Act. | ||||||
12 | The credit or credits shall be applied to the earliest | ||||||
13 | year for which there is a tax liability. If there are | ||||||
14 | credits from more than one taxable year that are available | ||||||
15 | to offset a liability, the earlier credit shall be applied | ||||||
16 | first. | ||||||
17 | For partners, shareholders of Subchapter S | ||||||
18 | corporations, and owners of limited liability companies, | ||||||
19 | if the liability company is treated as a partnership for | ||||||
20 | the purposes of federal and State income taxation, there | ||||||
21 | shall be allowed a credit under this Section to be | ||||||
22 | determined in accordance with the determination of income | ||||||
23 | and distributive share of income under Sections 702 and | ||||||
24 | 704 and Subchapter S of the Internal Revenue Code. | ||||||
25 | The total aggregate amount of credits awarded under | ||||||
26 | the Blue Collar Jobs Act (Article 20 of Public Act 101-9 |
| |||||||
| |||||||
1 | this amendatory Act of the 101st General Assembly ) shall | ||||||
2 | not exceed $20,000,000 in any State fiscal year . | ||||||
3 | This paragraph (8) is exempt from the provisions of | ||||||
4 | Section 250. | ||||||
5 | (f-1) Investment credit; Energy Transition Zone. | ||||||
6 | (1) For tax years beginning on or after January 1, | ||||||
7 | 2021, a taxpayer shall be allowed a credit against the
tax | ||||||
8 | imposed by subsections (a) and (b) of this Section for | ||||||
9 | investment in qualified property which is placed in | ||||||
10 | service for the use of the production of green energy by a | ||||||
11 | green energy enterprise in an Energy Transition Zone | ||||||
12 | created pursuant to the Illinois Energy Transition Zone | ||||||
13 | Act. For partners, shareholders of Subchapter S | ||||||
14 | corporations, and owners of limited liability companies, | ||||||
15 | if the liability company is treated as a partnership for | ||||||
16 | purposes of federal and State income taxation, there shall | ||||||
17 | be allowed a credit under this subsection (f-1) to be | ||||||
18 | determined in accordance with the determination of income | ||||||
19 | and distributive share of income under Sections 702 and | ||||||
20 | 704 and Subchapter S of the Internal Revenue Code. The | ||||||
21 | credit shall be 0.5% of the basis for such property. The | ||||||
22 | credit shall be available only in the taxable year in | ||||||
23 | which the property is placed in service in the Energy | ||||||
24 | Transition Zone and shall not be allowed to the extent | ||||||
25 | that it would reduce a taxpayer's liability for the tax | ||||||
26 | imposed by subsections (a) and (b) of this Section to |
| |||||||
| |||||||
1 | below zero. The credit shall be allowed for the tax year in | ||||||
2 | which the property is placed in service, or, if the amount | ||||||
3 | of the credit exceeds the tax liability for that year, | ||||||
4 | whether it exceeds the original liability or the liability | ||||||
5 | as later amended, such excess may be carried forward and | ||||||
6 | applied to the tax liability of the 5 taxable years | ||||||
7 | following the excess credit year. The credit shall be | ||||||
8 | 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, the credit | ||||||
11 | accruing first in time shall be applied first. | ||||||
12 | (2) The term qualified property means property which: | ||||||
13 | (A) is tangible, whether new or used, including
| ||||||
14 | buildings and structural components of buildings; | ||||||
15 | (B) is depreciable pursuant to Section 167 of the
| ||||||
16 | Internal Revenue Code, except that "3-year property" | ||||||
17 | as defined in Section 168(c)(2)(A) of that Code is not | ||||||
18 | eligible for the credit provided by this subsection | ||||||
19 | (f-1); | ||||||
20 | (C) is acquired by purchase as defined in Section
| ||||||
21 | 179(d) of the Internal Revenue Code; | ||||||
22 | (D) is used in the Energy Transition Zone
by the | ||||||
23 | taxpayer in relation to producing green energy; and | ||||||
24 | (E) has not been previously used in Illinois in
| ||||||
25 | such a manner and by such a person as would qualify for | ||||||
26 | the credit provided by this subsection (f-1). |
| |||||||
| |||||||
1 | (3) The basis of qualified property shall be the
basis | ||||||
2 | used to compute the depreciation deduction for federal | ||||||
3 | income tax purposes. | ||||||
4 | (4) If the basis of the property for federal income
| ||||||
5 | tax depreciation purposes is increased after it has been | ||||||
6 | placed in service in the Energy Transition Zone by the | ||||||
7 | taxpayer, the amount of such increase shall be deemed | ||||||
8 | property placed in service on the date of such increase in | ||||||
9 | basis. | ||||||
10 | (5) The term "placed in service" shall have the same
| ||||||
11 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
12 | (6) If during any taxable year, any property ceases
to | ||||||
13 | be qualified property in the hands of the taxpayer within | ||||||
14 | 48 months after being placed in service, or the situs of | ||||||
15 | any qualified property is moved outside the Energy | ||||||
16 | Transition Zone within 48 months after being placed in | ||||||
17 | service, the tax imposed under subsections (a) and (b) of | ||||||
18 | this Section for such taxable year shall be increased. | ||||||
19 | Such increase shall be determined by (i) recomputing the | ||||||
20 | investment credit which would have been allowed for the | ||||||
21 | year in which credit for such property was originally | ||||||
22 | allowed by eliminating such property from such | ||||||
23 | computation, and (ii) subtracting such recomputed credit | ||||||
24 | from the amount of credit previously allowed. For the | ||||||
25 | purposes of this paragraph (6), a reduction of the basis | ||||||
26 | of qualified property resulting from a redetermination of |
| |||||||
| |||||||
1 | the purchase price shall be deemed a disposition of | ||||||
2 | qualified property to the extent of such reduction. | ||||||
3 | (g) (Blank). | ||||||
4 | (h) Investment credit; High Impact Business. | ||||||
5 | (1) Subject to subsections (b) and (b-5) of Section
| ||||||
6 | 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall | ||||||
7 | be allowed a credit
against the tax imposed by subsections | ||||||
8 | (a) and (b) of this Section for
investment in qualified
| ||||||
9 | property which is placed in service by a Department of | ||||||
10 | Commerce and Economic Opportunity
designated High Impact | ||||||
11 | Business. The credit shall be .5% of the basis
for such | ||||||
12 | property. The credit shall not be available (i) until the | ||||||
13 | minimum
investments in qualified property set forth in | ||||||
14 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
15 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
16 | time authorized in subsection (b-5) of the Illinois
| ||||||
17 | Enterprise Zone Act for entities designated as High Impact | ||||||
18 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
19 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
20 | Act, and shall not be allowed to the extent that it would
| ||||||
21 | reduce a taxpayer's liability for the tax imposed by | ||||||
22 | subsections (a) and (b) of
this Section to below zero. The | ||||||
23 | credit applicable to such investments shall be
taken in | ||||||
24 | the taxable year in which such investments have been | ||||||
25 | completed. The
credit for additional investments beyond | ||||||
26 | the minimum investment by a designated
high impact |
| |||||||
| |||||||
1 | business authorized under subdivision (a)(3)(A) of Section | ||||||
2 | 5.5 of
the Illinois Enterprise Zone Act shall be available | ||||||
3 | only in the taxable year in
which the property is placed in | ||||||
4 | service and shall not be allowed to the extent
that it | ||||||
5 | would reduce a taxpayer's liability for the tax imposed by | ||||||
6 | subsections
(a) and (b) of this Section to below zero.
For | ||||||
7 | tax years ending on or after December 31, 1987, the credit | ||||||
8 | shall be
allowed for the tax year in which the property is | ||||||
9 | placed in service, or, if
the amount of the credit exceeds | ||||||
10 | the tax liability for that year, whether
it exceeds the | ||||||
11 | original liability or the liability as later amended, such
| ||||||
12 | excess may be carried forward and applied to the tax | ||||||
13 | liability of the 5
taxable years following the excess | ||||||
14 | credit year. The credit shall be
applied to the earliest | ||||||
15 | year for which there is a liability. If there is
credit | ||||||
16 | from more than one tax year that is available to offset a | ||||||
17 | liability,
the credit accruing first in time shall be | ||||||
18 | applied first. | ||||||
19 | Changes made in this subdivision (h)(1) by Public Act | ||||||
20 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
21 | reflect existing law. | ||||||
22 | (2) The term qualified property means property which: | ||||||
23 | (A) is tangible, whether new or used, including | ||||||
24 | buildings and
structural components of buildings; | ||||||
25 | (B) is depreciable pursuant to Section 167 of the | ||||||
26 | Internal Revenue
Code, except that "3-year property" |
| |||||||
| |||||||
1 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
2 | eligible for the credit provided by this subsection | ||||||
3 | (h); | ||||||
4 | (C) is acquired by purchase as defined in Section | ||||||
5 | 179(d) of the
Internal Revenue Code; and | ||||||
6 | (D) is not eligible for the Enterprise Zone | ||||||
7 | Investment Credit provided
by subsection (f) of this | ||||||
8 | Section. | ||||||
9 | (3) The basis of qualified property shall be the basis | ||||||
10 | used to compute
the depreciation deduction for federal | ||||||
11 | income tax purposes. | ||||||
12 | (4) If the basis of the property for federal income | ||||||
13 | tax depreciation
purposes is increased after it has been | ||||||
14 | placed in service in a federally
designated Foreign Trade | ||||||
15 | Zone or Sub-Zone located in Illinois by the taxpayer,
the | ||||||
16 | amount of such increase shall be deemed property placed in | ||||||
17 | service on
the date of such increase in basis. | ||||||
18 | (5) The term "placed in service" shall have the same | ||||||
19 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
20 | (6) If during any taxable year ending on or before | ||||||
21 | December 31, 1996,
any property ceases to be qualified
| ||||||
22 | property in the hands of the taxpayer within 48 months | ||||||
23 | after being placed
in service, or the situs of any | ||||||
24 | qualified property is moved outside
Illinois within 48 | ||||||
25 | months after being placed in service, the tax imposed
| ||||||
26 | under subsections (a) and (b) of this Section for such |
| |||||||
| |||||||
1 | taxable year shall
be increased. Such increase shall be | ||||||
2 | determined by (i) recomputing the
investment credit which | ||||||
3 | would have been allowed for the year in which
credit for | ||||||
4 | such property was originally allowed by eliminating such
| ||||||
5 | property from such computation, and (ii) subtracting such | ||||||
6 | recomputed credit
from the amount of credit previously | ||||||
7 | allowed. For the purposes of this
paragraph (6), a | ||||||
8 | reduction of the basis of qualified property resulting
| ||||||
9 | from a redetermination of the purchase price shall be | ||||||
10 | deemed a disposition
of qualified property to the extent | ||||||
11 | of such reduction. | ||||||
12 | (7) Beginning with tax years ending after December 31, | ||||||
13 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
14 | subsection (h) and thereby is
granted a tax abatement and | ||||||
15 | the taxpayer relocates its entire facility in
violation of | ||||||
16 | the explicit terms and length of the contract under | ||||||
17 | Section
18-183 of the Property Tax Code, the tax imposed | ||||||
18 | under subsections
(a) and (b) of this Section shall be | ||||||
19 | increased for the taxable year
in which the taxpayer | ||||||
20 | relocated its facility by an amount equal to the
amount of | ||||||
21 | credit received by the taxpayer under this subsection (h). | ||||||
22 | (h-5) High Impact Business construction constructions jobs | ||||||
23 | credit. For taxable years beginning on or after January 1, | ||||||
24 | 2021, there shall also be allowed a High Impact Business | ||||||
25 | construction jobs credit against the tax imposed under | ||||||
26 | subsections (a) and (b) of this Section as provided in |
| |||||||
| |||||||
1 | subsections (i) and (j) of Section 5.5 of the Illinois | ||||||
2 | Enterprise Zone Act. | ||||||
3 | The credit or credits may not reduce the taxpayer's | ||||||
4 | liability to less than zero. If the amount of the credit or | ||||||
5 | credits exceeds the taxpayer's liability, the excess may be | ||||||
6 | carried forward and applied against the taxpayer's liability | ||||||
7 | in succeeding calendar years in the manner provided under | ||||||
8 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
9 | shall be applied to the earliest year for which there is a tax | ||||||
10 | liability. If there are credits from more than one taxable | ||||||
11 | year that are available to offset a liability, the earlier | ||||||
12 | credit shall be applied first. | ||||||
13 | For partners, shareholders of Subchapter S corporations, | ||||||
14 | and owners of limited liability companies, if the liability | ||||||
15 | company is treated as a partnership for the purposes of | ||||||
16 | federal and State income taxation, there shall be allowed a | ||||||
17 | credit under this Section to be determined in accordance with | ||||||
18 | the determination of income and distributive share of income | ||||||
19 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
20 | Revenue Code. | ||||||
21 | The total aggregate amount of credits awarded under the | ||||||
22 | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this | ||||||
23 | amendatory Act of the 101st General Assembly ) shall not exceed | ||||||
24 | $20,000,000 in any State fiscal year . | ||||||
25 | This subsection (h-5) is exempt from the provisions of | ||||||
26 | Section 250. |
| |||||||
| |||||||
1 | (i) Credit for Personal Property Tax Replacement Income | ||||||
2 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
3 | shall be allowed
against the tax imposed by
subsections (a) | ||||||
4 | and (b) of this Section for the tax imposed by subsections (c)
| ||||||
5 | and (d) of this Section. This credit shall be computed by | ||||||
6 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
7 | Section by a fraction, the numerator
of which is base income | ||||||
8 | allocable to Illinois and the denominator of which is
Illinois | ||||||
9 | base income, and further multiplying the product by the tax | ||||||
10 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
11 | Any credit earned on or after December 31, 1986 under
this | ||||||
12 | subsection which is unused in the year
the credit is computed | ||||||
13 | because it exceeds the tax liability imposed by
subsections | ||||||
14 | (a) and (b) for that year (whether it exceeds the original
| ||||||
15 | liability or the liability as later amended) may be carried | ||||||
16 | forward and
applied to the tax liability imposed by | ||||||
17 | subsections (a) and (b) of the 5
taxable years following the | ||||||
18 | excess credit year, provided that no credit may
be carried | ||||||
19 | forward to any year ending on or
after December 31, 2003. This | ||||||
20 | credit shall be
applied first to the earliest year for which | ||||||
21 | there is a liability. If
there is a credit under this | ||||||
22 | subsection from more than one tax year that is
available to | ||||||
23 | offset a liability the earliest credit arising under this
| ||||||
24 | subsection shall be applied first. | ||||||
25 | If, during any taxable year ending on or after December | ||||||
26 | 31, 1986, the
tax imposed by subsections (c) and (d) of this |
| |||||||
| |||||||
1 | Section for which a taxpayer
has claimed a credit under this | ||||||
2 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
3 | shall also be reduced. Such reduction shall be
determined by | ||||||
4 | recomputing the credit to take into account the reduced tax
| ||||||
5 | imposed by subsections (c) and (d). If any portion of the
| ||||||
6 | reduced amount of credit has been carried to a different | ||||||
7 | taxable year, an
amended return shall be filed for such | ||||||
8 | taxable year to reduce the amount of
credit claimed. | ||||||
9 | (j) Training expense credit. Beginning with tax years | ||||||
10 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
11 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
12 | imposed by subsections (a) and (b) under this Section
for all | ||||||
13 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
14 | the taxpayer in Illinois or Illinois residents employed
| ||||||
15 | outside of Illinois by a taxpayer, for educational or | ||||||
16 | vocational training in
semi-technical or technical fields or | ||||||
17 | semi-skilled or skilled fields, which
were deducted from gross | ||||||
18 | income in the computation of taxable income. The
credit | ||||||
19 | against the tax imposed by subsections (a) and (b) shall be | ||||||
20 | 1.6% of
such training expenses. For partners, shareholders of | ||||||
21 | subchapter S
corporations, and owners of limited liability | ||||||
22 | companies, if the liability
company is treated as a | ||||||
23 | partnership for purposes of federal and State income
taxation, | ||||||
24 | there shall be allowed a credit under this subsection (j) to be
| ||||||
25 | determined in accordance with the determination of income and | ||||||
26 | distributive
share of income under Sections 702 and 704 and |
| |||||||
| |||||||
1 | subchapter S of the Internal
Revenue Code. | ||||||
2 | Any credit allowed under this subsection which is unused | ||||||
3 | in the year
the credit is earned may be carried forward to each | ||||||
4 | of the 5 taxable
years following the year for which the credit | ||||||
5 | is first computed until it is
used. This credit shall be | ||||||
6 | applied first to the earliest year for which
there is a | ||||||
7 | liability. If there is a credit under this subsection from | ||||||
8 | more
than one tax year that is available to offset a liability , | ||||||
9 | the earliest
credit arising under this subsection shall be | ||||||
10 | applied first. No carryforward
credit may be claimed in any | ||||||
11 | tax year ending on or after
December 31, 2003. | ||||||
12 | (k) Research and development credit. For tax years ending | ||||||
13 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
14 | beginning again for tax years ending on or after December 31, | ||||||
15 | 2004, and ending prior to January 1, 2027, a taxpayer shall be
| ||||||
16 | allowed a credit against the tax imposed by subsections (a) | ||||||
17 | and (b) of this
Section for increasing research activities in | ||||||
18 | this State. The credit
allowed against the tax imposed by | ||||||
19 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
20 | qualifying expenditures for increasing research activities
in | ||||||
21 | this State. For partners, shareholders of subchapter S | ||||||
22 | corporations, and
owners of limited liability companies, if | ||||||
23 | the liability company is treated as a
partnership for purposes | ||||||
24 | of federal and State income taxation, there shall be
allowed a | ||||||
25 | credit under this subsection to be determined in accordance | ||||||
26 | with the
determination of income and distributive share of |
| |||||||
| |||||||
1 | income under Sections 702 and
704 and subchapter S of the | ||||||
2 | Internal Revenue Code. | ||||||
3 | For purposes of this subsection, "qualifying expenditures" | ||||||
4 | means the
qualifying expenditures as defined for the federal | ||||||
5 | credit for increasing
research activities which would be | ||||||
6 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
7 | which are conducted in this State, "qualifying
expenditures | ||||||
8 | for increasing research activities in this State" means the
| ||||||
9 | excess of qualifying expenditures for the taxable year in | ||||||
10 | which incurred
over qualifying expenditures for the base | ||||||
11 | period, "qualifying expenditures
for the base period" means | ||||||
12 | the average of the qualifying expenditures for
each year in | ||||||
13 | the base period, and "base period" means the 3 taxable years
| ||||||
14 | immediately preceding the taxable year for which the | ||||||
15 | determination is
being made. | ||||||
16 | Any credit in excess of the tax liability for the taxable | ||||||
17 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
18 | unused credit shown on its final completed return carried over | ||||||
19 | as a credit
against the tax liability for the following 5 | ||||||
20 | taxable years or until it has
been fully used, whichever | ||||||
21 | occurs first; provided that no credit earned in a tax year | ||||||
22 | ending prior to December 31, 2003 may be carried forward to any | ||||||
23 | year ending on or after December 31, 2003. | ||||||
24 | If an unused credit is carried forward to a given year from | ||||||
25 | 2 or more
earlier years, that credit arising in the earliest | ||||||
26 | year will be applied
first against the tax liability for the |
| |||||||
| |||||||
1 | given year. If a tax liability for
the given year still | ||||||
2 | remains, the credit from the next earliest year will
then be | ||||||
3 | applied, and so on, until all credits have been used or no tax
| ||||||
4 | liability for the given year remains. Any remaining unused | ||||||
5 | credit or
credits then will be carried forward to the next | ||||||
6 | following year in which a
tax liability is incurred, except | ||||||
7 | that no credit can be carried forward to
a year which is more | ||||||
8 | than 5 years after the year in which the expense for
which the | ||||||
9 | credit is given was incurred. | ||||||
10 | No inference shall be drawn from Public Act 91-644 this | ||||||
11 | amendatory Act of the 91st General
Assembly in construing this | ||||||
12 | Section for taxable years beginning before January
1, 1999. | ||||||
13 | It is the intent of the General Assembly that the research | ||||||
14 | and development credit under this subsection (k) shall apply | ||||||
15 | continuously for all tax years ending on or after December 31, | ||||||
16 | 2004 and ending prior to January 1, 2027, including, but not | ||||||
17 | limited to, the period beginning on January 1, 2016 and ending | ||||||
18 | on July 6, 2017 ( the effective date of Public Act 100-22) this | ||||||
19 | amendatory Act of the 100th General Assembly . All actions | ||||||
20 | taken in reliance on the continuation of the credit under this | ||||||
21 | subsection (k) by any taxpayer are hereby validated. | ||||||
22 | (l) Environmental Remediation Tax Credit. | ||||||
23 | (i) For tax years ending after December 31, 1997 and | ||||||
24 | on or before
December 31, 2001, a taxpayer shall be | ||||||
25 | allowed a credit against the tax
imposed by subsections | ||||||
26 | (a) and (b) of this Section for certain amounts paid
for |
| |||||||
| |||||||
1 | unreimbursed eligible remediation costs, as specified in | ||||||
2 | this subsection.
For purposes of this Section, | ||||||
3 | "unreimbursed eligible remediation costs" means
costs | ||||||
4 | approved by the Illinois Environmental Protection Agency | ||||||
5 | ("Agency") under
Section 58.14 of the Environmental | ||||||
6 | Protection Act that were paid in performing
environmental | ||||||
7 | remediation at a site for which a No Further Remediation | ||||||
8 | Letter
was issued by the Agency and recorded under Section | ||||||
9 | 58.10 of the Environmental
Protection Act. The credit must | ||||||
10 | be claimed for the taxable year in which
Agency approval | ||||||
11 | of the eligible remediation costs is granted. The credit | ||||||
12 | is
not available to any taxpayer if the taxpayer or any | ||||||
13 | related party caused or
contributed to, in any material | ||||||
14 | respect, a release of regulated substances on,
in, or | ||||||
15 | under the site that was identified and addressed by the | ||||||
16 | remedial
action pursuant to the Site Remediation Program | ||||||
17 | of the Environmental Protection
Act. After the Pollution | ||||||
18 | Control Board rules are adopted pursuant to the
Illinois | ||||||
19 | Administrative Procedure Act for the administration and | ||||||
20 | enforcement of
Section 58.9 of the Environmental | ||||||
21 | Protection Act, determinations as to credit
availability | ||||||
22 | for purposes of this Section shall be made consistent with | ||||||
23 | those
rules. For purposes of this Section, "taxpayer" | ||||||
24 | includes a person whose tax
attributes the taxpayer has | ||||||
25 | succeeded to under Section 381 of the Internal
Revenue | ||||||
26 | Code and "related party" includes the persons disallowed a |
| |||||||
| |||||||
1 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
2 | Section 267 of the Internal
Revenue Code by virtue of | ||||||
3 | being a related taxpayer, as well as any of its
partners. | ||||||
4 | The credit allowed against the tax imposed by subsections | ||||||
5 | (a) and
(b) shall be equal to 25% of the unreimbursed | ||||||
6 | eligible remediation costs in
excess of $100,000 per site, | ||||||
7 | except that the $100,000 threshold shall not apply
to any | ||||||
8 | site contained in an enterprise zone as determined by the | ||||||
9 | Department of
Commerce and Community Affairs (now | ||||||
10 | Department of Commerce and Economic Opportunity). The | ||||||
11 | total credit allowed shall not exceed
$40,000 per year | ||||||
12 | with a maximum total of $150,000 per site. For partners | ||||||
13 | and
shareholders of subchapter S corporations, there shall | ||||||
14 | be allowed a credit
under this subsection to be determined | ||||||
15 | in accordance with the determination of
income and | ||||||
16 | distributive share of income under Sections 702 and 704 | ||||||
17 | and
subchapter S of the Internal Revenue Code. | ||||||
18 | (ii) A credit allowed under this subsection that is | ||||||
19 | unused in the year
the credit is earned may be carried | ||||||
20 | forward to each of the 5 taxable years
following the year | ||||||
21 | for which the credit is first earned until it is used.
The | ||||||
22 | term "unused credit" does not include any amounts of | ||||||
23 | unreimbursed eligible
remediation costs in excess of the | ||||||
24 | maximum credit per site authorized under
paragraph (i). | ||||||
25 | This credit shall be applied first to the earliest year
| ||||||
26 | for which there is a liability. If there is a credit under |
| |||||||
| |||||||
1 | this subsection
from more than one tax year that is | ||||||
2 | available to offset a liability, the
earliest credit | ||||||
3 | arising under this subsection shall be applied first. A
| ||||||
4 | credit allowed under this subsection may be sold to a | ||||||
5 | buyer as part of a sale
of all or part of the remediation | ||||||
6 | site for which the credit was granted. The
purchaser of a | ||||||
7 | remediation site and the tax credit shall succeed to the | ||||||
8 | unused
credit and remaining carry-forward period of the | ||||||
9 | seller. To perfect the
transfer, the assignor shall record | ||||||
10 | the transfer in the chain of title for the
site and provide | ||||||
11 | written notice to the Director of the Illinois Department | ||||||
12 | of
Revenue of the assignor's intent to sell the | ||||||
13 | remediation site and the amount of
the tax credit to be | ||||||
14 | transferred as a portion of the sale. In no event may a
| ||||||
15 | credit be transferred to any taxpayer if the taxpayer or a | ||||||
16 | related party would
not be eligible under the provisions | ||||||
17 | of subsection (i). | ||||||
18 | (iii) For purposes of this Section, the term "site" | ||||||
19 | shall have the same
meaning as under Section 58.2 of the | ||||||
20 | Environmental Protection Act. | ||||||
21 | (m) Education expense credit. Beginning with tax years | ||||||
22 | ending after
December 31, 1999, a taxpayer who
is the | ||||||
23 | custodian of one or more qualifying pupils shall be allowed a | ||||||
24 | credit
against the tax imposed by subsections (a) and (b) of | ||||||
25 | this Section for
qualified education expenses incurred on | ||||||
26 | behalf of the qualifying pupils.
The credit shall be equal to |
| |||||||
| |||||||
1 | 25% of qualified education expenses, but in no
event may the | ||||||
2 | total credit under this subsection claimed by a
family that is | ||||||
3 | the
custodian of qualifying pupils exceed (i) $500 for tax | ||||||
4 | years ending prior to December 31, 2017, and (ii) $750 for tax | ||||||
5 | years ending on or after December 31, 2017. In no event shall a | ||||||
6 | credit under
this subsection reduce the taxpayer's liability | ||||||
7 | under this Act to less than
zero. Notwithstanding any other | ||||||
8 | provision of law, for taxable years beginning on or after | ||||||
9 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
10 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
11 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
12 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
13 | of all other taxpayers. This subsection is exempt from the | ||||||
14 | provisions of Section 250 of this
Act. | ||||||
15 | For purposes of this subsection: | ||||||
16 | "Qualifying pupils" means individuals who (i) are | ||||||
17 | residents of the State of
Illinois, (ii) are under the age of | ||||||
18 | 21 at the close of the school year for
which a credit is | ||||||
19 | sought, and (iii) during the school year for which a credit
is | ||||||
20 | sought were full-time pupils enrolled in a kindergarten | ||||||
21 | through twelfth
grade education program at any school, as | ||||||
22 | defined in this subsection. | ||||||
23 | "Qualified education expense" means the amount incurred
on | ||||||
24 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
25 | book fees, and
lab fees at the school in which the pupil is | ||||||
26 | enrolled during the regular school
year. |
| |||||||
| |||||||
1 | "School" means any public or nonpublic elementary or | ||||||
2 | secondary school in
Illinois that is in compliance with Title | ||||||
3 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
4 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
5 | except that nothing shall be construed to require a child to
| ||||||
6 | attend any particular public or nonpublic school to qualify | ||||||
7 | for the credit
under this Section. | ||||||
8 | "Custodian" means, with respect to qualifying pupils, an | ||||||
9 | Illinois resident
who is a parent, the parents, a legal | ||||||
10 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
11 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
12 | credit.
| ||||||
13 | (i) For tax years ending on or after December 31, | ||||||
14 | 2006, a taxpayer shall be allowed a credit against the tax | ||||||
15 | imposed by subsections (a) and (b) of this Section for | ||||||
16 | certain amounts paid for unreimbursed eligible remediation | ||||||
17 | costs, as specified in this subsection. For purposes of | ||||||
18 | this Section, "unreimbursed eligible remediation costs" | ||||||
19 | means costs approved by the Illinois Environmental | ||||||
20 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
21 | Environmental Protection Act that were paid in performing | ||||||
22 | environmental remediation at a site within a River Edge | ||||||
23 | Redevelopment Zone for which a No Further Remediation | ||||||
24 | Letter was issued by the Agency and recorded under Section | ||||||
25 | 58.10 of the Environmental Protection Act. The credit must | ||||||
26 | be claimed for the taxable year in which Agency approval |
| |||||||
| |||||||
1 | of the eligible remediation costs is granted. The credit | ||||||
2 | is not available to any taxpayer if the taxpayer or any | ||||||
3 | related party caused or contributed to, in any material | ||||||
4 | respect, a release of regulated substances on, in, or | ||||||
5 | under the site that was identified and addressed by the | ||||||
6 | remedial action pursuant to the Site Remediation Program | ||||||
7 | of the Environmental Protection Act. Determinations as to | ||||||
8 | credit availability for purposes of this Section shall be | ||||||
9 | made consistent with rules adopted by the Pollution | ||||||
10 | Control Board pursuant to the Illinois Administrative | ||||||
11 | Procedure Act for the administration and enforcement of | ||||||
12 | Section 58.9 of the Environmental Protection Act. For | ||||||
13 | purposes of this Section, "taxpayer" includes a person | ||||||
14 | whose tax attributes the taxpayer has succeeded to under | ||||||
15 | Section 381 of the Internal Revenue Code and "related | ||||||
16 | party" includes the persons disallowed a deduction for | ||||||
17 | losses by paragraphs (b), (c), and (f)(1) of Section 267 | ||||||
18 | of the Internal Revenue Code by virtue of being a related | ||||||
19 | taxpayer, as well as any of its partners. The credit | ||||||
20 | allowed against the tax imposed by subsections (a) and (b) | ||||||
21 | shall be equal to 25% of the unreimbursed eligible | ||||||
22 | remediation costs in excess of $100,000 per site. | ||||||
23 | (ii) A credit allowed under this subsection that is | ||||||
24 | unused in the year the credit is earned may be carried | ||||||
25 | forward to each of the 5 taxable years following the year | ||||||
26 | for which the credit is first earned until it is used. This |
| |||||||
| |||||||
1 | credit shall be applied first to the earliest year for | ||||||
2 | which there is a liability. If there is a credit under this | ||||||
3 | subsection from more than one tax year that is available | ||||||
4 | to offset a liability, the earliest credit arising under | ||||||
5 | this subsection shall be applied first. A credit allowed | ||||||
6 | under this subsection may be sold to a buyer as part of a | ||||||
7 | sale of all or part of the remediation site for which the | ||||||
8 | credit was granted. The purchaser of a remediation site | ||||||
9 | and the tax credit shall succeed to the unused credit and | ||||||
10 | remaining carry-forward period of the seller. To perfect | ||||||
11 | the transfer, the assignor shall record the transfer in | ||||||
12 | the chain of title for the site and provide written notice | ||||||
13 | to the Director of the Illinois Department of Revenue of | ||||||
14 | the assignor's intent to sell the remediation site and the | ||||||
15 | amount of the tax credit to be transferred as a portion of | ||||||
16 | the sale. In no event may a credit be transferred to any | ||||||
17 | taxpayer if the taxpayer or a related party would not be | ||||||
18 | eligible under the provisions of subsection (i). | ||||||
19 | (iii) For purposes of this Section, the term "site" | ||||||
20 | shall have the same meaning as under Section 58.2 of the | ||||||
21 | Environmental Protection Act. | ||||||
22 | (o) For each of taxable years during the Compassionate Use | ||||||
23 | of Medical Cannabis Program, a surcharge is imposed on all | ||||||
24 | taxpayers on income arising from the sale or exchange of | ||||||
25 | capital assets, depreciable business property, real property | ||||||
26 | used in the trade or business, and Section 197 intangibles of |
| |||||||
| |||||||
1 | an organization registrant under the Compassionate Use of | ||||||
2 | Medical Cannabis Program Act. The amount of the surcharge is | ||||||
3 | equal to the amount of federal income tax liability for the | ||||||
4 | taxable year attributable to those sales and exchanges. The | ||||||
5 | surcharge imposed does not apply if: | ||||||
6 | (1) the medical cannabis cultivation center | ||||||
7 | registration, medical cannabis dispensary registration, or | ||||||
8 | the property of a registration is transferred as a result | ||||||
9 | of any of the following: | ||||||
10 | (A) bankruptcy, a receivership, or a debt | ||||||
11 | adjustment initiated by or against the initial | ||||||
12 | registration or the substantial owners of the initial | ||||||
13 | registration; | ||||||
14 | (B) cancellation, revocation, or termination of | ||||||
15 | any registration by the Illinois Department of Public | ||||||
16 | Health; | ||||||
17 | (C) a determination by the Illinois Department of | ||||||
18 | Public Health that transfer of the registration is in | ||||||
19 | the best interests of Illinois qualifying patients as | ||||||
20 | defined by the Compassionate Use of Medical Cannabis | ||||||
21 | Program Act; | ||||||
22 | (D) the death of an owner of the equity interest in | ||||||
23 | a registrant; | ||||||
24 | (E) the acquisition of a controlling interest in | ||||||
25 | the stock or substantially all of the assets of a | ||||||
26 | publicly traded company; |
| |||||||
| |||||||
1 | (F) a transfer by a parent company to a wholly | ||||||
2 | owned subsidiary; or | ||||||
3 | (G) the transfer or sale to or by one person to | ||||||
4 | another person where both persons were initial owners | ||||||
5 | of the registration when the registration was issued; | ||||||
6 | or | ||||||
7 | (2) the cannabis cultivation center registration, | ||||||
8 | medical cannabis dispensary registration, or the | ||||||
9 | controlling interest in a registrant's property is | ||||||
10 | transferred in a transaction to lineal descendants in | ||||||
11 | which no gain or loss is recognized or as a result of a | ||||||
12 | transaction in accordance with Section 351 of the Internal | ||||||
13 | Revenue Code in which no gain or loss is recognized. | ||||||
14 | (Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31, | ||||||
15 | eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; | ||||||
16 | revised 11-18-20.) | ||||||
17 | (Text of Section with the changes made by P.A. 101-8, | ||||||
18 | which did not take effect (see Section 99 of P.A. 101-8))
| ||||||
19 | Sec. 201. Tax imposed. | ||||||
20 | (a) In general. A tax measured by net income is hereby | ||||||
21 | imposed on every
individual, corporation, trust and estate for | ||||||
22 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
23 | of earning or receiving income in or
as a resident of this | ||||||
24 | State. Such tax shall be in addition to all other
occupation or | ||||||
25 | privilege taxes imposed by this State or by any municipal
|
| |||||||
| |||||||
1 | corporation or political subdivision thereof. | ||||||
2 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
3 | Section shall be
determined as follows, except as adjusted by | ||||||
4 | subsection (d-1): | ||||||
5 | (1) In the case of an individual, trust or estate, for | ||||||
6 | taxable years
ending prior to July 1, 1989, an amount | ||||||
7 | equal to 2 1/2% of the taxpayer's
net income for the | ||||||
8 | taxable year. | ||||||
9 | (2) In the case of an individual, trust or estate, for | ||||||
10 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
11 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
12 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
13 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
14 | 3% of the
taxpayer's net income for the period after June | ||||||
15 | 30, 1989, as calculated
under Section 202.3. | ||||||
16 | (3) In the case of an individual, trust or estate, for | ||||||
17 | taxable years
beginning after June 30, 1989, and ending | ||||||
18 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
19 | taxpayer's net
income for the taxable year. | ||||||
20 | (4) In the case of an individual, trust, or estate, | ||||||
21 | for taxable years beginning prior to January 1, 2011, and | ||||||
22 | ending after December 31, 2010, an amount equal to the sum | ||||||
23 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
24 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
25 | (ii) 5% of the taxpayer's net income for the period after | ||||||
26 | December 31, 2010, as calculated under Section 202.5. |
| |||||||
| |||||||
1 | (5) In the case of an individual, trust, or estate, | ||||||
2 | for taxable years beginning on or after January 1, 2011, | ||||||
3 | and ending prior to January 1, 2015, an amount equal to 5% | ||||||
4 | of the taxpayer's net income for the taxable year. | ||||||
5 | (5.1) In the case of an individual, trust, or estate, | ||||||
6 | for taxable years beginning prior to January 1, 2015, and | ||||||
7 | ending after December 31, 2014, an amount equal to the sum | ||||||
8 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
9 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
10 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
11 | after December 31, 2014, as calculated under Section | ||||||
12 | 202.5. | ||||||
13 | (5.2) In the case of an individual, trust, or estate, | ||||||
14 | for taxable years beginning on or after January 1, 2015, | ||||||
15 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
16 | of the taxpayer's net income for the taxable year. | ||||||
17 | (5.3) In the case of an individual, trust, or estate, | ||||||
18 | for taxable years beginning prior to July 1, 2017, and | ||||||
19 | ending after June 30, 2017, an amount equal to the sum of | ||||||
20 | (i) 3.75% of the taxpayer's net income for the period | ||||||
21 | prior to July 1, 2017, as calculated under Section 202.5, | ||||||
22 | and (ii) 4.95% of the taxpayer's net income for the period | ||||||
23 | after June 30, 2017, as calculated under Section 202.5. | ||||||
24 | (5.4) In the case of an individual, trust, or estate, | ||||||
25 | for taxable years beginning on or after July 1, 2017 and | ||||||
26 | beginning prior to January 1, 2021 , an amount equal to |
| |||||||
| |||||||
1 | 4.95% of the taxpayer's net income for the taxable year. | ||||||
2 | (5.5) In the case of an individual, trust, or estate, | ||||||
3 | for taxable years beginning on or after January 1, 2021, | ||||||
4 | an amount calculated under the rate structure set forth in | ||||||
5 | Section 201.1. | ||||||
6 | (6) In the case of a corporation, for taxable years
| ||||||
7 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
8 | taxpayer's net income for the taxable year. | ||||||
9 | (7) In the case of a corporation, for taxable years | ||||||
10 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
11 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
12 | taxpayer's net income for the period prior to July 1, | ||||||
13 | 1989,
as calculated under Section 202.3, and (ii) 4.8% of | ||||||
14 | the taxpayer's net
income for the period after June 30, | ||||||
15 | 1989, as calculated under Section
202.3. | ||||||
16 | (8) In the case of a corporation, for taxable years | ||||||
17 | beginning after
June 30, 1989, and ending prior to January | ||||||
18 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
19 | income for the
taxable year. | ||||||
20 | (9) In the case of a corporation, for taxable years | ||||||
21 | beginning prior to January 1, 2011, and ending after | ||||||
22 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
23 | of the taxpayer's net income for the period prior to | ||||||
24 | January 1, 2011, as calculated under Section 202.5, and | ||||||
25 | (ii) 7% of the taxpayer's net income for the period after | ||||||
26 | December 31, 2010, as calculated under Section 202.5. |
| |||||||
| |||||||
1 | (10) In the case of a corporation, for taxable years | ||||||
2 | beginning on or after January 1, 2011, and ending prior to | ||||||
3 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
4 | net income for the taxable year. | ||||||
5 | (11) In the case of a corporation, for taxable years | ||||||
6 | beginning prior to January 1, 2015, and ending after | ||||||
7 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
8 | the taxpayer's net income for the period prior to January | ||||||
9 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
10 | of the taxpayer's net income for the period after December | ||||||
11 | 31, 2014, as calculated under Section 202.5. | ||||||
12 | (12) In the case of a corporation, for taxable years | ||||||
13 | beginning on or after January 1, 2015, and ending prior to | ||||||
14 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
15 | net income for the taxable year. | ||||||
16 | (13) In the case of a corporation, for taxable years | ||||||
17 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
18 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
19 | taxpayer's net income for the period prior to July 1, | ||||||
20 | 2017, as calculated under Section 202.5, and (ii) 7% of | ||||||
21 | the taxpayer's net income for the period after June 30, | ||||||
22 | 2017, as calculated under Section 202.5. | ||||||
23 | (14) In the case of a corporation, for taxable years | ||||||
24 | beginning on or after July 1, 2017 and beginning prior to | ||||||
25 | January 1, 2021 , an amount equal to 7% of the taxpayer's | ||||||
26 | net income for the taxable year. |
| |||||||
| |||||||
1 | (15) In the case of a corporation, for taxable years | ||||||
2 | beginning on or after January 1, 2021, an amount equal to | ||||||
3 | 7.99% of the taxpayer's net income for the taxable year. | ||||||
4 | The rates under this subsection (b) are subject to the | ||||||
5 | provisions of Section 201.5. | ||||||
6 | (b-5) Surcharge; sale or exchange of assets, properties, | ||||||
7 | and intangibles of organization gaming licensees. For each of | ||||||
8 | taxable years 2019 through 2027, a surcharge is imposed on all | ||||||
9 | taxpayers on income arising from the sale or exchange of | ||||||
10 | capital assets, depreciable business property, real property | ||||||
11 | used in the trade or business, and Section 197 intangibles (i) | ||||||
12 | of an organization licensee under the Illinois Horse Racing | ||||||
13 | Act of 1975 and (ii) of an organization gaming licensee under | ||||||
14 | the Illinois Gambling Act. The amount of the surcharge is | ||||||
15 | equal to the amount of federal income tax liability for the | ||||||
16 | taxable year attributable to those sales and exchanges. The | ||||||
17 | surcharge imposed shall not apply if: | ||||||
18 | (1) the organization gaming license, organization | ||||||
19 | license, or racetrack property is transferred as a result | ||||||
20 | of any of the following: | ||||||
21 | (A) bankruptcy, a receivership, or a debt | ||||||
22 | adjustment initiated by or against the initial | ||||||
23 | licensee or the substantial owners of the initial | ||||||
24 | licensee; | ||||||
25 | (B) cancellation, revocation, or termination of | ||||||
26 | any such license by the Illinois Gaming Board or the |
| |||||||
| |||||||
1 | Illinois Racing Board; | ||||||
2 | (C) a determination by the Illinois Gaming Board | ||||||
3 | that transfer of the license is in the best interests | ||||||
4 | of Illinois gaming; | ||||||
5 | (D) the death of an owner of the equity interest in | ||||||
6 | a licensee; | ||||||
7 | (E) the acquisition of a controlling interest in | ||||||
8 | the stock or substantially all of the assets of a | ||||||
9 | publicly traded company; | ||||||
10 | (F) a transfer by a parent company to a wholly | ||||||
11 | owned subsidiary; or | ||||||
12 | (G) the transfer or sale to or by one person to | ||||||
13 | another person where both persons were initial owners | ||||||
14 | of the license when the license was issued; or | ||||||
15 | (2) the controlling interest in the organization | ||||||
16 | gaming license, organization license, or racetrack | ||||||
17 | property is transferred in a transaction to lineal | ||||||
18 | descendants in which no gain or loss is recognized or as a | ||||||
19 | result of a transaction in accordance with Section 351 of | ||||||
20 | the Internal Revenue Code in which no gain or loss is | ||||||
21 | recognized; or | ||||||
22 | (3) live horse racing was not conducted in 2010 at a | ||||||
23 | racetrack located within 3 miles of the Mississippi River | ||||||
24 | under a license issued pursuant to the Illinois Horse | ||||||
25 | Racing Act of 1975. | ||||||
26 | The transfer of an organization gaming license, |
| |||||||
| |||||||
1 | organization license, or racetrack property by a person other | ||||||
2 | than the initial licensee to receive the organization gaming | ||||||
3 | license is not subject to a surcharge. The Department shall | ||||||
4 | adopt rules necessary to implement and administer this | ||||||
5 | subsection. | ||||||
6 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
7 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
8 | income
tax, there is also hereby imposed the Personal Property | ||||||
9 | Tax Replacement
Income Tax measured by net income on every | ||||||
10 | corporation (including Subchapter
S corporations), partnership | ||||||
11 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
12 | Such taxes are imposed on the privilege of earning or
| ||||||
13 | receiving income in or as a resident of this State. The | ||||||
14 | Personal Property
Tax Replacement Income Tax shall be in | ||||||
15 | addition to the income tax imposed
by subsections (a) and (b) | ||||||
16 | of this Section and in addition to all other
occupation or | ||||||
17 | privilege taxes imposed by this State or by any municipal
| ||||||
18 | corporation or political subdivision thereof. | ||||||
19 | (d) Additional Personal Property Tax Replacement Income | ||||||
20 | Tax Rates.
The personal property tax replacement income tax | ||||||
21 | imposed by this subsection
and subsection (c) of this Section | ||||||
22 | in the case of a corporation, other
than a Subchapter S | ||||||
23 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
24 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
25 | income for the taxable year, except that
beginning on January | ||||||
26 | 1, 1981, and thereafter, the rate of 2.85% specified
in this |
| |||||||
| |||||||
1 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
2 | partnership, trust or a Subchapter S corporation shall be an | ||||||
3 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
4 | for the taxable year. | ||||||
5 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
6 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
7 | Illinois Insurance Code,
whose state or country of domicile | ||||||
8 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
9 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
10 | are 50% or more of its total insurance
premiums as determined | ||||||
11 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
12 | that for purposes of this determination premiums from | ||||||
13 | reinsurance do
not include premiums from inter-affiliate | ||||||
14 | reinsurance arrangements),
beginning with taxable years ending | ||||||
15 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
16 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
17 | increased) to the rate at which the total amount of tax imposed | ||||||
18 | under this Act,
net of all credits allowed under this Act, | ||||||
19 | shall equal (i) the total amount of
tax that would be imposed | ||||||
20 | on the foreign insurer's net income allocable to
Illinois for | ||||||
21 | the taxable year by such foreign insurer's state or country of
| ||||||
22 | domicile if that net income were subject to all income taxes | ||||||
23 | and taxes
measured by net income imposed by such foreign | ||||||
24 | insurer's state or country of
domicile, net of all credits | ||||||
25 | allowed or (ii) a rate of zero if no such tax is
imposed on | ||||||
26 | such income by the foreign insurer's state of domicile.
For |
| |||||||
| |||||||
1 | the purposes of this subsection (d-1), an inter-affiliate | ||||||
2 | includes a
mutual insurer under common management. | ||||||
3 | (1) For the purposes of subsection (d-1), in no event | ||||||
4 | shall the sum of the
rates of tax imposed by subsections | ||||||
5 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
6 | (A) the total amount of tax imposed on such | ||||||
7 | foreign insurer under
this Act for a taxable year, net | ||||||
8 | of all credits allowed under this Act, plus | ||||||
9 | (B) the privilege tax imposed by Section 409 of | ||||||
10 | the Illinois Insurance
Code, the fire insurance | ||||||
11 | company tax imposed by Section 12 of the Fire
| ||||||
12 | Investigation Act, and the fire department taxes | ||||||
13 | imposed under Section 11-10-1
of the Illinois | ||||||
14 | Municipal Code, | ||||||
15 | equals 1.25% for taxable years ending prior to December | ||||||
16 | 31, 2003, or
1.75% for taxable years ending on or after | ||||||
17 | December 31, 2003, of the net
taxable premiums written for | ||||||
18 | the taxable year,
as described by subsection (1) of | ||||||
19 | Section 409 of the Illinois Insurance Code.
This paragraph | ||||||
20 | will in no event increase the rates imposed under | ||||||
21 | subsections
(b) and (d). | ||||||
22 | (2) Any reduction in the rates of tax imposed by this | ||||||
23 | subsection shall be
applied first against the rates | ||||||
24 | imposed by subsection (b) and only after the
tax imposed | ||||||
25 | by subsection (a) net of all credits allowed under this | ||||||
26 | Section
other than the credit allowed under subsection (i) |
| |||||||
| |||||||
1 | has been reduced to zero,
against the rates imposed by | ||||||
2 | subsection (d). | ||||||
3 | This subsection (d-1) is exempt from the provisions of | ||||||
4 | Section 250. | ||||||
5 | (e) Investment credit. A taxpayer shall be allowed a | ||||||
6 | credit
against the Personal Property Tax Replacement Income | ||||||
7 | Tax for
investment in qualified property. | ||||||
8 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
9 | of
the basis of qualified property placed in service | ||||||
10 | during the taxable year,
provided such property is placed | ||||||
11 | in service on or after
July 1, 1984. There shall be allowed | ||||||
12 | an additional credit equal
to .5% of the basis of | ||||||
13 | qualified property placed in service during the
taxable | ||||||
14 | year, provided such property is placed in service on or
| ||||||
15 | after July 1, 1986, and the taxpayer's base employment
| ||||||
16 | within Illinois has increased by 1% or more over the | ||||||
17 | preceding year as
determined by the taxpayer's employment | ||||||
18 | records filed with the
Illinois Department of Employment | ||||||
19 | Security. Taxpayers who are new to
Illinois shall be | ||||||
20 | deemed to have met the 1% growth in base employment for
the | ||||||
21 | first year in which they file employment records with the | ||||||
22 | Illinois
Department of Employment Security. The provisions | ||||||
23 | added to this Section by
Public Act 85-1200 (and restored | ||||||
24 | by Public Act 87-895) shall be
construed as declaratory of | ||||||
25 | existing law and not as a new enactment. If,
in any year, | ||||||
26 | the increase in base employment within Illinois over the
|
| |||||||
| |||||||
1 | preceding year is less than 1%, the additional credit | ||||||
2 | shall be limited to that
percentage times a fraction, the | ||||||
3 | numerator of which is .5% and the denominator
of which is | ||||||
4 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
5 | not be
allowed to the extent that it would reduce a | ||||||
6 | taxpayer's liability in any tax
year below zero, nor may | ||||||
7 | any credit for qualified property be allowed for any
year | ||||||
8 | other than the year in which the property was placed in | ||||||
9 | service in
Illinois. For tax years ending on or after | ||||||
10 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
11 | credit shall be allowed for the tax year in
which the | ||||||
12 | property is placed in service, or, if the amount of the | ||||||
13 | credit
exceeds the tax liability for that year, whether it | ||||||
14 | exceeds the original
liability or the liability as later | ||||||
15 | amended, such excess may be carried
forward and applied to | ||||||
16 | the tax liability of the 5 taxable years following
the | ||||||
17 | excess credit years if the taxpayer (i) makes investments | ||||||
18 | which cause
the creation of a minimum of 2,000 full-time | ||||||
19 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
20 | enterprise zone established pursuant to the Illinois
| ||||||
21 | Enterprise Zone Act and (iii) is certified by the | ||||||
22 | Department of Commerce
and Community Affairs (now | ||||||
23 | Department of Commerce and Economic Opportunity) as | ||||||
24 | complying with the requirements specified in
clause (i) | ||||||
25 | and (ii) by July 1, 1986. The Department of Commerce and
| ||||||
26 | Community Affairs (now Department of Commerce and Economic |
| |||||||
| |||||||
1 | Opportunity) shall notify the Department of Revenue of all | ||||||
2 | such
certifications immediately. For tax years ending | ||||||
3 | after December 31, 1988,
the credit shall be allowed for | ||||||
4 | the tax year in which the property is
placed in service, | ||||||
5 | or, if the amount of the credit exceeds the tax
liability | ||||||
6 | for that year, whether it exceeds the original liability | ||||||
7 | or the
liability as later amended, such excess may be | ||||||
8 | carried forward and applied
to the tax liability of the 5 | ||||||
9 | taxable years following the excess credit
years. The | ||||||
10 | credit shall be applied to the earliest year for which | ||||||
11 | there is
a liability. If there is credit from more than one | ||||||
12 | tax year that is
available to offset a liability, earlier | ||||||
13 | credit shall be applied first. | ||||||
14 | (2) The term "qualified property" means property | ||||||
15 | which: | ||||||
16 | (A) is tangible, whether new or used, including | ||||||
17 | buildings and structural
components of buildings and | ||||||
18 | signs that are real property, but not including
land | ||||||
19 | or improvements to real property that are not a | ||||||
20 | structural component of a
building such as | ||||||
21 | landscaping, sewer lines, local access roads, fencing, | ||||||
22 | parking
lots, and other appurtenances; | ||||||
23 | (B) is depreciable pursuant to Section 167 of the | ||||||
24 | Internal Revenue Code,
except that "3-year property" | ||||||
25 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
26 | eligible for the credit provided by this subsection |
| |||||||
| |||||||
1 | (e); | ||||||
2 | (C) is acquired by purchase as defined in Section | ||||||
3 | 179(d) of
the Internal Revenue Code; | ||||||
4 | (D) is used in Illinois by a taxpayer who is | ||||||
5 | primarily engaged in
manufacturing, or in mining coal | ||||||
6 | or fluorite, or in retailing, or was placed in service | ||||||
7 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
8 | Zone established pursuant to the River Edge | ||||||
9 | Redevelopment Zone Act; and | ||||||
10 | (E) has not previously been used in Illinois in | ||||||
11 | such a manner and by
such a person as would qualify for | ||||||
12 | the credit provided by this subsection
(e) or | ||||||
13 | subsection (f). | ||||||
14 | (3) For purposes of this subsection (e), | ||||||
15 | "manufacturing" means
the material staging and production | ||||||
16 | of tangible personal property by
procedures commonly | ||||||
17 | regarded as manufacturing, processing, fabrication, or
| ||||||
18 | assembling which changes some existing material into new | ||||||
19 | shapes, new
qualities, or new combinations. For purposes | ||||||
20 | of this subsection
(e) the term "mining" shall have the | ||||||
21 | same meaning as the term "mining" in
Section 613(c) of the | ||||||
22 | Internal Revenue Code. For purposes of this subsection
| ||||||
23 | (e), the term "retailing" means the sale of tangible | ||||||
24 | personal property for use or consumption and not for | ||||||
25 | resale, or
services rendered in conjunction with the sale | ||||||
26 | of tangible personal property for use or consumption and |
| |||||||
| |||||||
1 | not for resale. For purposes of this subsection (e), | ||||||
2 | "tangible personal property" has the same meaning as when | ||||||
3 | that term is used in the Retailers' Occupation Tax Act, | ||||||
4 | and, for taxable years ending after December 31, 2008, | ||||||
5 | does not include the generation, transmission, or | ||||||
6 | distribution of electricity. | ||||||
7 | (4) The basis of qualified property shall be the basis
| ||||||
8 | used to compute the depreciation deduction for federal | ||||||
9 | income tax purposes. | ||||||
10 | (5) If the basis of the property for federal income | ||||||
11 | tax depreciation
purposes is increased after it has been | ||||||
12 | placed in service in Illinois by
the taxpayer, the amount | ||||||
13 | of such increase shall be deemed property placed
in | ||||||
14 | service on the date of such increase in basis. | ||||||
15 | (6) The term "placed in service" shall have the same
| ||||||
16 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
17 | (7) If during any taxable year, any property ceases to
| ||||||
18 | be qualified property in the hands of the taxpayer within | ||||||
19 | 48 months after
being placed in service, or the situs of | ||||||
20 | any qualified property is
moved outside Illinois within 48 | ||||||
21 | months after being placed in service, the
Personal | ||||||
22 | Property Tax Replacement Income Tax for such taxable year | ||||||
23 | shall be
increased. Such increase shall be determined by | ||||||
24 | (i) recomputing the
investment credit which would have | ||||||
25 | been allowed for the year in which
credit for such | ||||||
26 | property was originally allowed by eliminating such
|
| |||||||
| |||||||
1 | property from such computation and, (ii) subtracting such | ||||||
2 | recomputed credit
from the amount of credit previously | ||||||
3 | allowed. For the purposes of this
paragraph (7), a | ||||||
4 | reduction of the basis of qualified property resulting
| ||||||
5 | from a redetermination of the purchase price shall be | ||||||
6 | deemed a disposition
of qualified property to the extent | ||||||
7 | of such reduction. | ||||||
8 | (8) Unless the investment credit is extended by law, | ||||||
9 | the
basis of qualified property shall not include costs | ||||||
10 | incurred after
December 31, 2018, except for costs | ||||||
11 | incurred pursuant to a binding
contract entered into on or | ||||||
12 | before December 31, 2018. | ||||||
13 | (9) Each taxable year ending before December 31, 2000, | ||||||
14 | a partnership may
elect to pass through to its
partners | ||||||
15 | the credits to which the partnership is entitled under | ||||||
16 | this subsection
(e) for the taxable year. A partner may | ||||||
17 | use the credit allocated to him or her
under this | ||||||
18 | paragraph only against the tax imposed in subsections (c) | ||||||
19 | and (d) of
this Section. If the partnership makes that | ||||||
20 | election, those credits shall be
allocated among the | ||||||
21 | partners in the partnership in accordance with the rules
| ||||||
22 | set forth in Section 704(b) of the Internal Revenue Code, | ||||||
23 | and the rules
promulgated under that Section, and the | ||||||
24 | allocated amount of the credits shall
be allowed to the | ||||||
25 | partners for that taxable year. The partnership shall make
| ||||||
26 | this election on its Personal Property Tax Replacement |
| |||||||
| |||||||
1 | Income Tax return for
that taxable year. The election to | ||||||
2 | pass through the credits shall be
irrevocable. | ||||||
3 | For taxable years ending on or after December 31, | ||||||
4 | 2000, a
partner that qualifies its
partnership for a | ||||||
5 | subtraction under subparagraph (I) of paragraph (2) of
| ||||||
6 | subsection (d) of Section 203 or a shareholder that | ||||||
7 | qualifies a Subchapter S
corporation for a subtraction | ||||||
8 | under subparagraph (S) of paragraph (2) of
subsection (b) | ||||||
9 | of Section 203 shall be allowed a credit under this | ||||||
10 | subsection
(e) equal to its share of the credit earned | ||||||
11 | under this subsection (e) during
the taxable year by the | ||||||
12 | partnership or Subchapter S corporation, determined in
| ||||||
13 | accordance with the determination of income and | ||||||
14 | distributive share of
income under Sections 702 and 704 | ||||||
15 | and Subchapter S of the Internal Revenue
Code. This | ||||||
16 | paragraph is exempt from the provisions of Section 250. | ||||||
17 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
18 | Redevelopment Zone. | ||||||
19 | (1) A taxpayer shall be allowed a credit against the | ||||||
20 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
21 | investment in qualified
property which is placed in | ||||||
22 | service in an Enterprise Zone created
pursuant to the | ||||||
23 | Illinois Enterprise Zone Act or, for property placed in | ||||||
24 | service on or after July 1, 2006, a River Edge | ||||||
25 | Redevelopment Zone established pursuant to the River Edge | ||||||
26 | Redevelopment Zone Act. For partners, shareholders
of |
| |||||||
| |||||||
1 | Subchapter S corporations, and owners of limited liability | ||||||
2 | companies,
if the liability company is treated as a | ||||||
3 | partnership for purposes of
federal and State income | ||||||
4 | taxation, there shall be allowed a credit under
this | ||||||
5 | subsection (f) to be determined in accordance with the | ||||||
6 | determination
of income and distributive share of income | ||||||
7 | under Sections 702 and 704 and
Subchapter S of the | ||||||
8 | Internal Revenue Code. The credit shall be .5% of the
| ||||||
9 | basis for such property. The credit shall be available | ||||||
10 | only in the taxable
year in which the property is placed in | ||||||
11 | service in the Enterprise Zone or River Edge Redevelopment | ||||||
12 | Zone and
shall not be allowed to the extent that it would | ||||||
13 | reduce a taxpayer's
liability for the tax imposed by | ||||||
14 | subsections (a) and (b) of this Section to
below zero. For | ||||||
15 | tax years ending on or after December 31, 1985, the credit
| ||||||
16 | shall be allowed for the tax year in which the property is | ||||||
17 | placed in
service, or, if the amount of the credit exceeds | ||||||
18 | the tax liability for that
year, whether it exceeds the | ||||||
19 | original liability or the liability as later
amended, such | ||||||
20 | excess may be carried forward and applied to the tax
| ||||||
21 | liability of the 5 taxable years following the excess | ||||||
22 | credit year.
The credit shall be applied to the earliest | ||||||
23 | year for which there is a
liability. If there is credit | ||||||
24 | from more than one tax year that is available
to offset a | ||||||
25 | liability, the credit accruing first in time shall be | ||||||
26 | applied
first. |
| |||||||
| |||||||
1 | (2) The term qualified property means property which: | ||||||
2 | (A) is tangible, whether new or used, including | ||||||
3 | buildings and
structural components of buildings; | ||||||
4 | (B) is depreciable pursuant to Section 167 of the | ||||||
5 | Internal Revenue
Code, except that "3-year property" | ||||||
6 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
7 | eligible for the credit provided by this subsection | ||||||
8 | (f); | ||||||
9 | (C) is acquired by purchase as defined in Section | ||||||
10 | 179(d) of
the Internal Revenue Code; | ||||||
11 | (D) is used in the Enterprise Zone or River Edge | ||||||
12 | Redevelopment Zone by the taxpayer; and | ||||||
13 | (E) has not been previously used in Illinois in | ||||||
14 | such a manner and by
such a person as would qualify for | ||||||
15 | the credit provided by this subsection
(f) or | ||||||
16 | subsection (e). | ||||||
17 | (3) The basis of qualified property shall be the basis | ||||||
18 | used to compute
the depreciation deduction for federal | ||||||
19 | income tax purposes. | ||||||
20 | (4) If the basis of the property for federal income | ||||||
21 | tax depreciation
purposes is increased after it has been | ||||||
22 | placed in service in the Enterprise
Zone or River Edge | ||||||
23 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
24 | increase shall be deemed property
placed in service on the | ||||||
25 | date of such increase in basis. | ||||||
26 | (5) The term "placed in service" shall have the same |
| |||||||
| |||||||
1 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
2 | (6) If during any taxable year, any property ceases to | ||||||
3 | be qualified
property in the hands of the taxpayer within | ||||||
4 | 48 months after being placed
in service, or the situs of | ||||||
5 | any qualified property is moved outside the
Enterprise | ||||||
6 | Zone or River Edge Redevelopment Zone within 48 months | ||||||
7 | after being placed in service, the tax
imposed under | ||||||
8 | subsections (a) and (b) of this Section for such taxable | ||||||
9 | year
shall be increased. Such increase shall be determined | ||||||
10 | by (i) recomputing
the investment credit which would have | ||||||
11 | been allowed for the year in which
credit for such | ||||||
12 | property was originally allowed by eliminating such
| ||||||
13 | property from such computation, and (ii) subtracting such | ||||||
14 | recomputed credit
from the amount of credit previously | ||||||
15 | allowed. For the purposes of this
paragraph (6), a | ||||||
16 | reduction of the basis of qualified property resulting
| ||||||
17 | from a redetermination of the purchase price shall be | ||||||
18 | deemed a disposition
of qualified property to the extent | ||||||
19 | of such reduction. | ||||||
20 | (7) There shall be allowed an additional credit equal | ||||||
21 | to 0.5% of the basis of qualified property placed in | ||||||
22 | service during the taxable year in a River Edge | ||||||
23 | Redevelopment Zone, provided such property is placed in | ||||||
24 | service on or after July 1, 2006, and the taxpayer's base | ||||||
25 | employment within Illinois has increased by 1% or more | ||||||
26 | over the preceding year as determined by the taxpayer's |
| |||||||
| |||||||
1 | employment records filed with the Illinois Department of | ||||||
2 | Employment Security. Taxpayers who are new to Illinois | ||||||
3 | shall be deemed to have met the 1% growth in base | ||||||
4 | employment for the first year in which they file | ||||||
5 | employment records with the Illinois Department of | ||||||
6 | Employment Security. If, in any year, the increase in base | ||||||
7 | employment within Illinois over the preceding year is less | ||||||
8 | than 1%, the additional credit shall be limited to that | ||||||
9 | percentage times a fraction, the numerator of which is | ||||||
10 | 0.5% and the denominator of which is 1%, but shall not | ||||||
11 | exceed 0.5%.
| ||||||
12 | (8) For taxable years beginning on or after January 1, | ||||||
13 | 2021, there shall be allowed an Enterprise Zone | ||||||
14 | construction jobs credit against the taxes imposed under | ||||||
15 | subsections (a) and (b) of this Section as provided in | ||||||
16 | Section 13 of the Illinois Enterprise Zone Act. | ||||||
17 | The credit or credits may not reduce the taxpayer's | ||||||
18 | liability to less than zero. If the amount of the credit or | ||||||
19 | credits exceeds the taxpayer's liability, the excess may | ||||||
20 | be carried forward and applied against the taxpayer's | ||||||
21 | liability in succeeding calendar years in the same manner | ||||||
22 | provided under paragraph (4) of Section 211 of this Act. | ||||||
23 | The credit or credits shall be applied to the earliest | ||||||
24 | year for which there is a tax liability. If there are | ||||||
25 | credits from more than one taxable year that are available | ||||||
26 | to offset a liability, the earlier credit shall be applied |
| |||||||
| |||||||
1 | first. | ||||||
2 | For partners, shareholders of Subchapter S | ||||||
3 | corporations, and owners of limited liability companies, | ||||||
4 | if the liability company is treated as a partnership for | ||||||
5 | the purposes of federal and State income taxation, there | ||||||
6 | shall be allowed a credit under this Section to be | ||||||
7 | determined in accordance with the determination of income | ||||||
8 | and distributive share of income under Sections 702 and | ||||||
9 | 704 and Subchapter S of the Internal Revenue Code. | ||||||
10 | The total aggregate amount of credits awarded under | ||||||
11 | the Blue Collar Jobs Act (Article 20 of Public Act 101-9 | ||||||
12 | this amendatory Act of the 101st General Assembly ) shall | ||||||
13 | not exceed $20,000,000 in any State fiscal year . | ||||||
14 | This paragraph (8) is exempt from the provisions of | ||||||
15 | Section 250. | ||||||
16 | (f-1) Investment credit; Energy Transition Zone. | ||||||
17 | (1) For tax years beginning on or after January 1, | ||||||
18 | 2021, a taxpayer shall be allowed a credit against the
tax | ||||||
19 | imposed by subsections (a) and (b) of this Section for | ||||||
20 | investment in qualified property which is placed in | ||||||
21 | service for the use of the production of green energy by a | ||||||
22 | green energy enterprise in an Energy Transition Zone | ||||||
23 | created pursuant to the Illinois Energy Transition Zone | ||||||
24 | Act. For partners, shareholders of Subchapter S | ||||||
25 | corporations, and owners of limited liability companies, | ||||||
26 | if the liability company is treated as a partnership for |
| |||||||
| |||||||
1 | purposes of federal and State income taxation, there shall | ||||||
2 | be allowed a credit under this subsection (f-1) to be | ||||||
3 | determined in accordance with the determination of income | ||||||
4 | and distributive share of income under Sections 702 and | ||||||
5 | 704 and Subchapter S of the Internal Revenue Code. The | ||||||
6 | credit shall be 0.5% of the basis for such property. The | ||||||
7 | credit shall be available only in the taxable year in | ||||||
8 | which the property is placed in service in the Energy | ||||||
9 | Transition Zone and shall not be allowed to the extent | ||||||
10 | that it would reduce a taxpayer's liability for the tax | ||||||
11 | imposed by subsections (a) and (b) of this Section to | ||||||
12 | below zero. 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-1); | ||||||
5 | (C) is acquired by purchase as defined in Section
| ||||||
6 | 179(d) of the Internal Revenue Code; | ||||||
7 | (D) is used in the Energy Transition Zone
by the | ||||||
8 | taxpayer in relation to producing green energy; 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-1). | ||||||
12 | (3) The basis of qualified property shall be the
basis | ||||||
13 | used to compute the depreciation deduction for federal | ||||||
14 | income tax purposes. | ||||||
15 | (4) If the basis of the property for federal income
| ||||||
16 | tax depreciation purposes is increased after it has been | ||||||
17 | placed in service in the Energy Transition Zone by the | ||||||
18 | taxpayer, the amount of such increase shall be deemed | ||||||
19 | property placed in service on the date of such increase in | ||||||
20 | basis. | ||||||
21 | (5) The term "placed in service" shall have the same
| ||||||
22 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
23 | (6) If during any taxable year, any property ceases
to | ||||||
24 | be qualified property in the hands of the taxpayer within | ||||||
25 | 48 months after being placed in service, or the situs of | ||||||
26 | any qualified property is moved outside the Energy |
| |||||||
| |||||||
1 | Transition Zone within 48 months after being placed in | ||||||
2 | service, the tax imposed under subsections (a) and (b) of | ||||||
3 | this Section for such taxable year shall be increased. | ||||||
4 | Such increase shall be determined by (i) recomputing the | ||||||
5 | investment credit which would have been allowed for the | ||||||
6 | year in which credit for such property was originally | ||||||
7 | allowed by eliminating such property from such | ||||||
8 | computation, and (ii) subtracting such recomputed credit | ||||||
9 | from the amount of credit previously allowed. For the | ||||||
10 | purposes of this paragraph (6), a reduction of the basis | ||||||
11 | of qualified property resulting from a redetermination of | ||||||
12 | the purchase price shall be deemed a disposition of | ||||||
13 | qualified property to the extent of such reduction. | ||||||
14 | (g) (Blank). | ||||||
15 | (h) Investment credit; High Impact Business. | ||||||
16 | (1) Subject to subsections (b) and (b-5) of Section
| ||||||
17 | 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall | ||||||
18 | be allowed a credit
against the tax imposed by subsections | ||||||
19 | (a) and (b) of this Section for
investment in qualified
| ||||||
20 | property which is placed in service by a Department of | ||||||
21 | Commerce and Economic Opportunity
designated High Impact | ||||||
22 | Business. The credit shall be .5% of the basis
for such | ||||||
23 | property. The credit shall not be available (i) until the | ||||||
24 | minimum
investments in qualified property set forth in | ||||||
25 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
26 | Enterprise Zone Act have been satisfied
or (ii) until the |
| |||||||
| |||||||
1 | time authorized in subsection (b-5) of the Illinois
| ||||||
2 | Enterprise Zone Act for entities designated as High Impact | ||||||
3 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
4 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
5 | Act, and shall not be allowed to the extent that it would
| ||||||
6 | reduce a taxpayer's liability for the tax imposed by | ||||||
7 | subsections (a) and (b) of
this Section to below zero. The | ||||||
8 | credit applicable to such investments shall be
taken in | ||||||
9 | the taxable year in which such investments have been | ||||||
10 | completed. The
credit for additional investments beyond | ||||||
11 | the minimum investment by a designated
high impact | ||||||
12 | business authorized under subdivision (a)(3)(A) of Section | ||||||
13 | 5.5 of
the Illinois Enterprise Zone Act shall be available | ||||||
14 | only in the taxable year in
which the property is placed in | ||||||
15 | service and shall not be allowed to the extent
that it | ||||||
16 | would reduce a taxpayer's liability for the tax imposed by | ||||||
17 | subsections
(a) and (b) of this Section to below zero.
For | ||||||
18 | tax years ending on or after December 31, 1987, the credit | ||||||
19 | shall be
allowed for the tax year in which the property is | ||||||
20 | placed in service, or, if
the amount of the credit exceeds | ||||||
21 | the tax liability for that year, whether
it exceeds the | ||||||
22 | original liability or the liability as later amended, such
| ||||||
23 | excess may be carried forward and applied to the tax | ||||||
24 | liability of the 5
taxable years following the excess | ||||||
25 | credit year. The credit shall be
applied to the earliest | ||||||
26 | year for which there is a liability. If there is
credit |
| |||||||
| |||||||
1 | from more than one tax year that is available to offset a | ||||||
2 | liability,
the credit accruing first in time shall be | ||||||
3 | applied first. | ||||||
4 | Changes made in this subdivision (h)(1) by Public Act | ||||||
5 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
6 | reflect existing law. | ||||||
7 | (2) The term qualified property means property which: | ||||||
8 | (A) is tangible, whether new or used, including | ||||||
9 | buildings and
structural components of buildings; | ||||||
10 | (B) is depreciable pursuant to Section 167 of the | ||||||
11 | Internal Revenue
Code, except that "3-year property" | ||||||
12 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
13 | eligible for the credit provided by this subsection | ||||||
14 | (h); | ||||||
15 | (C) is acquired by purchase as defined in Section | ||||||
16 | 179(d) of the
Internal Revenue Code; and | ||||||
17 | (D) is not eligible for the Enterprise Zone | ||||||
18 | Investment Credit provided
by subsection (f) of this | ||||||
19 | Section. | ||||||
20 | (3) The basis of qualified property shall be the basis | ||||||
21 | used to compute
the depreciation deduction for federal | ||||||
22 | income tax purposes. | ||||||
23 | (4) If the basis of the property for federal income | ||||||
24 | tax depreciation
purposes is increased after it has been | ||||||
25 | placed in service in a federally
designated Foreign Trade | ||||||
26 | Zone or Sub-Zone located in Illinois by the taxpayer,
the |
| |||||||
| |||||||
1 | amount of such increase shall be deemed property placed in | ||||||
2 | service on
the date of such increase in basis. | ||||||
3 | (5) The term "placed in service" shall have the same | ||||||
4 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
5 | (6) If during any taxable year ending on or before | ||||||
6 | December 31, 1996,
any property ceases to be qualified
| ||||||
7 | property in the hands of the taxpayer within 48 months | ||||||
8 | after being placed
in service, or the situs of any | ||||||
9 | qualified property is moved outside
Illinois within 48 | ||||||
10 | months after being placed in service, the tax imposed
| ||||||
11 | under subsections (a) and (b) of this Section for such | ||||||
12 | taxable year shall
be increased. Such increase shall be | ||||||
13 | determined by (i) recomputing the
investment credit which | ||||||
14 | would have been allowed for the year in which
credit for | ||||||
15 | such property was originally allowed by eliminating such
| ||||||
16 | property from such computation, and (ii) subtracting such | ||||||
17 | recomputed credit
from the amount of credit previously | ||||||
18 | allowed. For the purposes of this
paragraph (6), a | ||||||
19 | reduction of the basis of qualified property resulting
| ||||||
20 | from a redetermination of the purchase price shall be | ||||||
21 | deemed a disposition
of qualified property to the extent | ||||||
22 | of such reduction. | ||||||
23 | (7) Beginning with tax years ending after December 31, | ||||||
24 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
25 | subsection (h) and thereby is
granted a tax abatement and | ||||||
26 | the taxpayer relocates its entire facility in
violation of |
| |||||||
| |||||||
1 | the explicit terms and length of the contract under | ||||||
2 | Section
18-183 of the Property Tax Code, the tax imposed | ||||||
3 | under subsections
(a) and (b) of this Section shall be | ||||||
4 | increased for the taxable year
in which the taxpayer | ||||||
5 | relocated its facility by an amount equal to the
amount of | ||||||
6 | credit received by the taxpayer under this subsection (h). | ||||||
7 | (h-5) High Impact Business construction constructions jobs | ||||||
8 | credit. For taxable years beginning on or after January 1, | ||||||
9 | 2021, there shall also be allowed a High Impact Business | ||||||
10 | construction jobs credit against the tax imposed under | ||||||
11 | subsections (a) and (b) of this Section as provided in | ||||||
12 | subsections (i) and (j) of Section 5.5 of the Illinois | ||||||
13 | Enterprise Zone Act. | ||||||
14 | The credit or credits may not reduce the taxpayer's | ||||||
15 | liability to less than zero. If the amount of the credit or | ||||||
16 | credits exceeds the taxpayer's liability, the excess may be | ||||||
17 | carried forward and applied against the taxpayer's liability | ||||||
18 | in succeeding calendar years in the manner provided under | ||||||
19 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
20 | shall be applied to the earliest year for which there is a tax | ||||||
21 | liability. If there are credits from more than one taxable | ||||||
22 | year that are available to offset a liability, the earlier | ||||||
23 | credit shall be applied first. | ||||||
24 | For partners, shareholders of Subchapter S corporations, | ||||||
25 | and owners of limited liability companies, if the liability | ||||||
26 | company is treated as a partnership for the purposes of |
| |||||||
| |||||||
1 | federal and State income taxation, there shall be allowed a | ||||||
2 | credit under this Section to be determined in accordance with | ||||||
3 | the determination of income and distributive share of income | ||||||
4 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
5 | Revenue Code. | ||||||
6 | The total aggregate amount of credits awarded under the | ||||||
7 | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this | ||||||
8 | amendatory Act of the 101st General Assembly ) shall not exceed | ||||||
9 | $20,000,000 in any State fiscal year . | ||||||
10 | This subsection (h-5) is exempt from the provisions of | ||||||
11 | Section 250. | ||||||
12 | (i) Credit for Personal Property Tax Replacement Income | ||||||
13 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
14 | shall be allowed
against the tax imposed by
subsections (a) | ||||||
15 | and (b) of this Section for the tax imposed by subsections (c)
| ||||||
16 | and (d) of this Section. This credit shall be computed by | ||||||
17 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
18 | Section by a fraction, the numerator
of which is base income | ||||||
19 | allocable to Illinois and the denominator of which is
Illinois | ||||||
20 | base income, and further multiplying the product by the tax | ||||||
21 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
22 | Any credit earned on or after December 31, 1986 under
this | ||||||
23 | subsection which is unused in the year
the credit is computed | ||||||
24 | because it exceeds the tax liability imposed by
subsections | ||||||
25 | (a) and (b) for that year (whether it exceeds the original
| ||||||
26 | liability or the liability as later amended) may be carried |
| |||||||
| |||||||
1 | forward and
applied to the tax liability imposed by | ||||||
2 | subsections (a) and (b) of the 5
taxable years following the | ||||||
3 | excess credit year, provided that no credit may
be carried | ||||||
4 | forward to any year ending on or
after December 31, 2003. This | ||||||
5 | credit shall be
applied first to the earliest year for which | ||||||
6 | there is a liability. If
there is a credit under this | ||||||
7 | subsection from more than one tax year that is
available to | ||||||
8 | offset a liability the earliest credit arising under this
| ||||||
9 | subsection shall be applied first. | ||||||
10 | If, during any taxable year ending on or after December | ||||||
11 | 31, 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
12 | Section for which a taxpayer
has claimed a credit under this | ||||||
13 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
14 | shall also be reduced. Such reduction shall be
determined by | ||||||
15 | recomputing the credit to take into account the reduced tax
| ||||||
16 | imposed by subsections (c) and (d). If any portion of the
| ||||||
17 | reduced amount of credit has been carried to a different | ||||||
18 | taxable year, an
amended return shall be filed for such | ||||||
19 | taxable year to reduce the amount of
credit claimed. | ||||||
20 | (j) Training expense credit. Beginning with tax years | ||||||
21 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
22 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
23 | imposed by subsections (a) and (b) under this Section
for all | ||||||
24 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
25 | the taxpayer in Illinois or Illinois residents employed
| ||||||
26 | outside of Illinois by a taxpayer, for educational or |
| |||||||
| |||||||
1 | vocational training in
semi-technical or technical fields or | ||||||
2 | semi-skilled or skilled fields, which
were deducted from gross | ||||||
3 | income in the computation of taxable income. The
credit | ||||||
4 | against the tax imposed by subsections (a) and (b) shall be | ||||||
5 | 1.6% of
such training expenses. For partners, shareholders of | ||||||
6 | subchapter S
corporations, and owners of limited liability | ||||||
7 | companies, if the liability
company is treated as a | ||||||
8 | partnership for purposes of federal and State income
taxation, | ||||||
9 | there shall be allowed a credit under this subsection (j) to be
| ||||||
10 | determined in accordance with the determination of income and | ||||||
11 | distributive
share of income under Sections 702 and 704 and | ||||||
12 | subchapter S of the Internal
Revenue Code. | ||||||
13 | Any credit allowed under this subsection which is unused | ||||||
14 | in the year
the credit is earned may be carried forward to each | ||||||
15 | of the 5 taxable
years following the year for which the credit | ||||||
16 | is first computed until it is
used. This credit shall be | ||||||
17 | applied first to the earliest year for which
there is a | ||||||
18 | liability. If there is a credit under this subsection from | ||||||
19 | more
than one tax year that is available to offset a liability , | ||||||
20 | the earliest
credit arising under this subsection shall be | ||||||
21 | applied first. No carryforward
credit may be claimed in any | ||||||
22 | tax year ending on or after
December 31, 2003. | ||||||
23 | (k) Research and development credit. For tax years ending | ||||||
24 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
25 | beginning again for tax years ending on or after December 31, | ||||||
26 | 2004, and ending prior to January 1, 2027, a taxpayer shall be
|
| |||||||
| |||||||
1 | allowed a credit against the tax imposed by subsections (a) | ||||||
2 | and (b) of this
Section for increasing research activities in | ||||||
3 | this State. The credit
allowed against the tax imposed by | ||||||
4 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
5 | qualifying expenditures for increasing research activities
in | ||||||
6 | this State. For partners, shareholders of subchapter S | ||||||
7 | corporations, and
owners of limited liability companies, if | ||||||
8 | the liability company is treated as a
partnership for purposes | ||||||
9 | of federal and State income taxation, there shall be
allowed a | ||||||
10 | credit under this subsection to be determined in accordance | ||||||
11 | with the
determination of income and distributive share of | ||||||
12 | income under Sections 702 and
704 and subchapter S of the | ||||||
13 | Internal Revenue Code. | ||||||
14 | For purposes of this subsection, "qualifying expenditures" | ||||||
15 | means the
qualifying expenditures as defined for the federal | ||||||
16 | credit for increasing
research activities which would be | ||||||
17 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
18 | which are conducted in this State, "qualifying
expenditures | ||||||
19 | for increasing research activities in this State" means the
| ||||||
20 | excess of qualifying expenditures for the taxable year in | ||||||
21 | which incurred
over qualifying expenditures for the base | ||||||
22 | period, "qualifying expenditures
for the base period" means | ||||||
23 | the average of the qualifying expenditures for
each year in | ||||||
24 | the base period, and "base period" means the 3 taxable years
| ||||||
25 | immediately preceding the taxable year for which the | ||||||
26 | determination is
being made. |
| |||||||
| |||||||
1 | Any credit in excess of the tax liability for the taxable | ||||||
2 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
3 | unused credit shown on its final completed return carried over | ||||||
4 | as a credit
against the tax liability for the following 5 | ||||||
5 | taxable years or until it has
been fully used, whichever | ||||||
6 | occurs first; provided that no credit earned in a tax year | ||||||
7 | ending prior to December 31, 2003 may be carried forward to any | ||||||
8 | year ending on or after December 31, 2003. | ||||||
9 | If an unused credit is carried forward to a given year from | ||||||
10 | 2 or more
earlier years, that credit arising in the earliest | ||||||
11 | year will be applied
first against the tax liability for the | ||||||
12 | given year. If a tax liability for
the given year still | ||||||
13 | remains, the credit from the next earliest year will
then be | ||||||
14 | applied, and so on, until all credits have been used or no tax
| ||||||
15 | liability for the given year remains. Any remaining unused | ||||||
16 | credit or
credits then will be carried forward to the next | ||||||
17 | following year in which a
tax liability is incurred, except | ||||||
18 | that no credit can be carried forward to
a year which is more | ||||||
19 | than 5 years after the year in which the expense for
which the | ||||||
20 | credit is given was incurred. | ||||||
21 | No inference shall be drawn from Public Act 91-644 this | ||||||
22 | amendatory Act of the 91st General
Assembly in construing this | ||||||
23 | Section for taxable years beginning before January
1, 1999. | ||||||
24 | It is the intent of the General Assembly that the research | ||||||
25 | and development credit under this subsection (k) shall apply | ||||||
26 | continuously for all tax years ending on or after December 31, |
| |||||||
| |||||||
1 | 2004 and ending prior to January 1, 2027, including, but not | ||||||
2 | limited to, the period beginning on January 1, 2016 and ending | ||||||
3 | on July 6, 2017 ( the effective date of Public Act 100-22) this | ||||||
4 | amendatory Act of the 100th General Assembly . All actions | ||||||
5 | taken in reliance on the continuation of the credit under this | ||||||
6 | subsection (k) by any taxpayer are hereby validated. | ||||||
7 | (l) Environmental Remediation Tax Credit. | ||||||
8 | (i) For tax years ending after December 31, 1997 and | ||||||
9 | on or before
December 31, 2001, a taxpayer shall be | ||||||
10 | allowed a credit against the tax
imposed by subsections | ||||||
11 | (a) and (b) of this Section for certain amounts paid
for | ||||||
12 | unreimbursed eligible remediation costs, as specified in | ||||||
13 | this subsection.
For purposes of this Section, | ||||||
14 | "unreimbursed eligible remediation costs" means
costs | ||||||
15 | approved by the Illinois Environmental Protection Agency | ||||||
16 | ("Agency") under
Section 58.14 of the Environmental | ||||||
17 | Protection Act that were paid in performing
environmental | ||||||
18 | remediation at a site for which a No Further Remediation | ||||||
19 | Letter
was issued by the Agency and recorded under Section | ||||||
20 | 58.10 of the Environmental
Protection Act. The credit must | ||||||
21 | be claimed for the taxable year in which
Agency approval | ||||||
22 | of the eligible remediation costs is granted. The credit | ||||||
23 | is
not available to any taxpayer if the taxpayer or any | ||||||
24 | related party caused or
contributed to, in any material | ||||||
25 | respect, a release of regulated substances on,
in, or | ||||||
26 | under the site that was identified and addressed by the |
| |||||||
| |||||||
1 | remedial
action pursuant to the Site Remediation Program | ||||||
2 | of the Environmental Protection
Act. After the Pollution | ||||||
3 | Control Board rules are adopted pursuant to the
Illinois | ||||||
4 | Administrative Procedure Act for the administration and | ||||||
5 | enforcement of
Section 58.9 of the Environmental | ||||||
6 | Protection Act, determinations as to credit
availability | ||||||
7 | for purposes of this Section shall be made consistent with | ||||||
8 | those
rules. For purposes of this Section, "taxpayer" | ||||||
9 | includes a person whose tax
attributes the taxpayer has | ||||||
10 | succeeded to under Section 381 of the Internal
Revenue | ||||||
11 | Code and "related party" includes the persons disallowed a | ||||||
12 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
13 | Section 267 of the Internal
Revenue Code by virtue of | ||||||
14 | being a related taxpayer, as well as any of its
partners. | ||||||
15 | The credit allowed against the tax imposed by subsections | ||||||
16 | (a) and
(b) shall be equal to 25% of the unreimbursed | ||||||
17 | eligible remediation costs in
excess of $100,000 per site, | ||||||
18 | except that the $100,000 threshold shall not apply
to any | ||||||
19 | site contained in an enterprise zone as determined by the | ||||||
20 | Department of
Commerce and Community Affairs (now | ||||||
21 | Department of Commerce and Economic Opportunity). The | ||||||
22 | total credit allowed shall not exceed
$40,000 per year | ||||||
23 | with a maximum total of $150,000 per site. For partners | ||||||
24 | and
shareholders of subchapter S corporations, there shall | ||||||
25 | be allowed a credit
under this subsection to be determined | ||||||
26 | in accordance with the determination of
income and |
| |||||||
| |||||||
1 | distributive share of income under Sections 702 and 704 | ||||||
2 | and
subchapter S of the Internal Revenue Code. | ||||||
3 | (ii) A credit allowed under this subsection that is | ||||||
4 | unused in the year
the credit is earned may be carried | ||||||
5 | forward to each of the 5 taxable years
following the year | ||||||
6 | for which the credit is first earned until it is used.
The | ||||||
7 | term "unused credit" does not include any amounts of | ||||||
8 | unreimbursed eligible
remediation costs in excess of the | ||||||
9 | maximum credit per site authorized under
paragraph (i). | ||||||
10 | This credit shall be applied first to the earliest year
| ||||||
11 | for which there is a liability. If there is a credit under | ||||||
12 | this subsection
from more than one tax year that is | ||||||
13 | available to offset a liability, the
earliest credit | ||||||
14 | arising under this subsection shall be applied first. A
| ||||||
15 | credit allowed under this subsection may be sold to a | ||||||
16 | buyer as part of a sale
of all or part of the remediation | ||||||
17 | site for which the credit was granted. The
purchaser of a | ||||||
18 | remediation site and the tax credit shall succeed to the | ||||||
19 | unused
credit and remaining carry-forward period of the | ||||||
20 | seller. To perfect the
transfer, the assignor shall record | ||||||
21 | the transfer in the chain of title for the
site and provide | ||||||
22 | written notice to the Director of the Illinois Department | ||||||
23 | of
Revenue of the assignor's intent to sell the | ||||||
24 | remediation site and the amount of
the tax credit to be | ||||||
25 | transferred as a portion of the sale. In no event may a
| ||||||
26 | credit be transferred to any taxpayer if the taxpayer or a |
| |||||||
| |||||||
1 | related party would
not be eligible under the provisions | ||||||
2 | of subsection (i). | ||||||
3 | (iii) For purposes of this Section, the term "site" | ||||||
4 | shall have the same
meaning as under Section 58.2 of the | ||||||
5 | Environmental Protection Act. | ||||||
6 | (m) Education expense credit. Beginning with tax years | ||||||
7 | ending after
December 31, 1999, a taxpayer who
is the | ||||||
8 | custodian of one or more qualifying pupils shall be allowed a | ||||||
9 | credit
against the tax imposed by subsections (a) and (b) of | ||||||
10 | this Section for
qualified education expenses incurred on | ||||||
11 | behalf of the qualifying pupils.
The credit shall be equal to | ||||||
12 | 25% of qualified education expenses, but in no
event may the | ||||||
13 | total credit under this subsection claimed by a
family that is | ||||||
14 | the
custodian of qualifying pupils exceed (i) $500 for tax | ||||||
15 | years ending prior to December 31, 2017, and (ii) $750 for tax | ||||||
16 | years ending on or after December 31, 2017. In no event shall a | ||||||
17 | credit under
this subsection reduce the taxpayer's liability | ||||||
18 | under this Act to less than
zero. Notwithstanding any other | ||||||
19 | provision of law, for taxable years beginning on or after | ||||||
20 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
21 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
22 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
23 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
24 | of all other taxpayers. This subsection is exempt from the | ||||||
25 | provisions of Section 250 of this
Act. | ||||||
26 | For purposes of this subsection: |
| |||||||
| |||||||
1 | "Qualifying pupils" means individuals who (i) are | ||||||
2 | residents of the State of
Illinois, (ii) are under the age of | ||||||
3 | 21 at the close of the school year for
which a credit is | ||||||
4 | sought, and (iii) during the school year for which a credit
is | ||||||
5 | sought were full-time pupils enrolled in a kindergarten | ||||||
6 | through twelfth
grade education program at any school, as | ||||||
7 | defined in this subsection. | ||||||
8 | "Qualified education expense" means the amount incurred
on | ||||||
9 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
10 | book fees, and
lab fees at the school in which the pupil is | ||||||
11 | enrolled during the regular school
year. | ||||||
12 | "School" means any public or nonpublic elementary or | ||||||
13 | secondary school in
Illinois that is in compliance with Title | ||||||
14 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
15 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
16 | except that nothing shall be construed to require a child to
| ||||||
17 | attend any particular public or nonpublic school to qualify | ||||||
18 | for the credit
under this Section. | ||||||
19 | "Custodian" means, with respect to qualifying pupils, an | ||||||
20 | Illinois resident
who is a parent, the parents, a legal | ||||||
21 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
22 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
23 | credit.
| ||||||
24 | (i) For tax years ending on or after December 31, | ||||||
25 | 2006, a taxpayer shall be allowed a credit against the tax | ||||||
26 | imposed by subsections (a) and (b) of this Section for |
| |||||||
| |||||||
1 | certain amounts paid for unreimbursed eligible remediation | ||||||
2 | costs, as specified in this subsection. For purposes of | ||||||
3 | this Section, "unreimbursed eligible remediation costs" | ||||||
4 | means costs approved by the Illinois Environmental | ||||||
5 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
6 | Environmental Protection Act that were paid in performing | ||||||
7 | environmental remediation at a site within a River Edge | ||||||
8 | Redevelopment Zone for which a No Further Remediation | ||||||
9 | Letter was issued by the Agency and recorded under Section | ||||||
10 | 58.10 of the Environmental Protection Act. The credit must | ||||||
11 | be claimed for the taxable year in which Agency approval | ||||||
12 | of the eligible remediation costs is granted. The credit | ||||||
13 | is not available to any taxpayer if the taxpayer or any | ||||||
14 | related party caused or contributed to, in any material | ||||||
15 | respect, a release of regulated substances on, in, or | ||||||
16 | under the site that was identified and addressed by the | ||||||
17 | remedial action pursuant to the Site Remediation Program | ||||||
18 | of the Environmental Protection Act. Determinations as to | ||||||
19 | credit availability for purposes of this Section shall be | ||||||
20 | made consistent with rules adopted by the Pollution | ||||||
21 | Control Board pursuant to the Illinois Administrative | ||||||
22 | Procedure Act for the administration and enforcement of | ||||||
23 | Section 58.9 of the Environmental Protection Act. For | ||||||
24 | purposes of this Section, "taxpayer" includes a person | ||||||
25 | whose tax attributes the taxpayer has succeeded to under | ||||||
26 | Section 381 of the Internal Revenue Code and "related |
| |||||||
| |||||||
1 | party" includes the persons disallowed a deduction for | ||||||
2 | losses by paragraphs (b), (c), and (f)(1) of Section 267 | ||||||
3 | of the Internal Revenue Code by virtue of being a related | ||||||
4 | taxpayer, as well as any of its partners. The credit | ||||||
5 | allowed against the tax imposed by subsections (a) and (b) | ||||||
6 | shall be equal to 25% of the unreimbursed eligible | ||||||
7 | remediation costs in excess of $100,000 per site. | ||||||
8 | (ii) A credit allowed under this subsection that is | ||||||
9 | unused in the year the credit is earned may be carried | ||||||
10 | forward to each of the 5 taxable years following the year | ||||||
11 | for which the credit is first earned until it is used. This | ||||||
12 | credit shall be applied first to the earliest year for | ||||||
13 | which there is a liability. If there is a credit under this | ||||||
14 | subsection from more than one tax year that is available | ||||||
15 | to offset a liability, the earliest credit arising under | ||||||
16 | this subsection shall be applied first. A credit allowed | ||||||
17 | under this subsection may be sold to a buyer as part of a | ||||||
18 | sale of all or part of the remediation site for which the | ||||||
19 | credit was granted. The purchaser of a remediation site | ||||||
20 | and the tax credit shall succeed to the unused credit and | ||||||
21 | remaining carry-forward period of the seller. To perfect | ||||||
22 | the transfer, the assignor shall record the transfer in | ||||||
23 | the chain of title for the site and provide written notice | ||||||
24 | to the Director of the Illinois Department of Revenue of | ||||||
25 | the assignor's intent to sell the remediation site and the | ||||||
26 | amount of the tax credit to be transferred as a portion of |
| |||||||
| |||||||
1 | the sale. In no event may a credit be transferred to any | ||||||
2 | taxpayer if the taxpayer or a related party would not be | ||||||
3 | eligible under the provisions of subsection (i). | ||||||
4 | (iii) For purposes of this Section, the term "site" | ||||||
5 | shall have the same meaning as under Section 58.2 of the | ||||||
6 | Environmental Protection Act. | ||||||
7 | (o) For each of taxable years during the Compassionate Use | ||||||
8 | of Medical Cannabis Program, a surcharge is imposed on all | ||||||
9 | taxpayers on income arising from the sale or exchange of | ||||||
10 | capital assets, depreciable business property, real property | ||||||
11 | used in the trade or business, and Section 197 intangibles of | ||||||
12 | an organization registrant under the Compassionate Use of | ||||||
13 | Medical Cannabis Program Act. The amount of the surcharge is | ||||||
14 | equal to the amount of federal income tax liability for the | ||||||
15 | taxable year attributable to those sales and exchanges. The | ||||||
16 | surcharge imposed does not apply if: | ||||||
17 | (1) the medical cannabis cultivation center | ||||||
18 | registration, medical cannabis dispensary registration, or | ||||||
19 | the property of a registration is transferred as a result | ||||||
20 | of any of the following: | ||||||
21 | (A) bankruptcy, a receivership, or a debt | ||||||
22 | adjustment initiated by or against the initial | ||||||
23 | registration or the substantial owners of the initial | ||||||
24 | registration; | ||||||
25 | (B) cancellation, revocation, or termination of | ||||||
26 | any registration by the Illinois Department of Public |
| |||||||
| |||||||
1 | Health; | ||||||
2 | (C) a determination by the Illinois Department of | ||||||
3 | Public Health that transfer of the registration is in | ||||||
4 | the best interests of Illinois qualifying patients as | ||||||
5 | defined by the Compassionate Use of Medical Cannabis | ||||||
6 | Program Act; | ||||||
7 | (D) the death of an owner of the equity interest in | ||||||
8 | a registrant; | ||||||
9 | (E) the acquisition of a controlling interest in | ||||||
10 | the stock or substantially all of the assets of a | ||||||
11 | publicly traded company; | ||||||
12 | (F) a transfer by a parent company to a wholly | ||||||
13 | owned subsidiary; or | ||||||
14 | (G) the transfer or sale to or by one person to | ||||||
15 | another person where both persons were initial owners | ||||||
16 | of the registration when the registration was issued; | ||||||
17 | or | ||||||
18 | (2) the cannabis cultivation center registration, | ||||||
19 | medical cannabis dispensary registration, or the | ||||||
20 | controlling interest in a registrant's property is | ||||||
21 | transferred in a transaction to lineal descendants in | ||||||
22 | which no gain or loss is recognized or as a result of a | ||||||
23 | transaction in accordance with Section 351 of the Internal | ||||||
24 | Revenue Code in which no gain or loss is recognized. | ||||||
25 | (Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for | ||||||
26 | effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; |
| |||||||
| |||||||
1 | 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.) | ||||||
2 | Section 10-25. The Retailers' Occupation Tax Act is | ||||||
3 | amended by adding Section 5k-1 as follows: | ||||||
4 | (35 ILCS 120/5k-1 new) | ||||||
5 | Sec. 5k-1. Building materials exemption; Energy Transition | ||||||
6 | Zone. | ||||||
7 | (a) Each retailer who makes a qualified sale of building | ||||||
8 | materials to be incorporated into a green energy project, as | ||||||
9 | defined in the Energy Transition Zone Act, being built by a | ||||||
10 | green energy enterprise in an Energy Transition Zone | ||||||
11 | established by or municipality under the Illinois Energy | ||||||
12 | Transition Zone Act by remodeling, rehabilitation or new | ||||||
13 | construction, may deduct receipts from such sales when | ||||||
14 | calculating the tax imposed by this Act. For purposes of this | ||||||
15 | Section, "qualified sale" means a sale of building materials | ||||||
16 | that will be incorporated into real estate as part of a | ||||||
17 | building project for which an Energy Transition Zone Building | ||||||
18 | Materials Exemption Certificate has been issued to the | ||||||
19 | purchaser by the Department. A construction contractor or | ||||||
20 | other entity shall not make tax-free purchases unless it has | ||||||
21 | an active Energy Transition Zone Building Materials Exemption | ||||||
22 | Certificate issued by the Department at the time of the | ||||||
23 | purchase. | ||||||
24 | (b) To document the exemption allowed under this Section, |
| |||||||
| |||||||
1 | the retailer must obtain from the purchaser the certification | ||||||
2 | required under subsection (c), which must contain the Energy | ||||||
3 | Transition Zone Building Materials Exemption Certificate | ||||||
4 | number issued to the purchaser by the Department. Upon request | ||||||
5 | from the Energy Transition Zone Administrator, the Department | ||||||
6 | shall issue an Energy Transition Zone Building Materials | ||||||
7 | Exemption Certificate for each construction contractor or | ||||||
8 | other entity identified by the Energy Transition Zone | ||||||
9 | Administrator. The Department shall make the Energy Transition | ||||||
10 | Zone Building Materials Exemption Certificates available | ||||||
11 | directly to each Energy Transition Zone Administrator, | ||||||
12 | construction contractor, or other entity. The request for | ||||||
13 | Energy Transition Zone Building Materials Exemption | ||||||
14 | Certificates from the Energy Transition Zone Administrator to | ||||||
15 | the Department must include the following information: | ||||||
16 | (1) the name and address of the construction | ||||||
17 | contractor or other entity; | ||||||
18 | (2) the name and number of the Energy Transition Zone; | ||||||
19 | (3) the name and location or address of the green | ||||||
20 | energy enterprise; | ||||||
21 | (4) the estimated amount of the exemption for each
| ||||||
22 | construction contractor or other entity for which a | ||||||
23 | request for Energy Transition Zone Building Materials | ||||||
24 | Exemption Certificate is made, based on a stated estimated | ||||||
25 | average tax rate and the percentage of the contract that | ||||||
26 | consists of materials; |
| |||||||
| |||||||
1 | (5) the period of time over which supplies for the
| ||||||
2 | project are expected to be purchased; and | ||||||
3 | (6) other reasonable information as the Department
may | ||||||
4 | require, including, but not limited to FEIN numbers, to | ||||||
5 | determine if the contractor or other entity, or any | ||||||
6 | partner, or a corporate officer, and in the case of a | ||||||
7 | limited liability company, any manager or member, of the | ||||||
8 | construction contractor or other entity, is or has been | ||||||
9 | the owner, a partner, a corporate officer, and in the case | ||||||
10 | of a limited liability company, a manager or member, of a | ||||||
11 | person that is in default for moneys due to the Department | ||||||
12 | under this Act or any other tax or fee Act administered by | ||||||
13 | the Department. | ||||||
14 | The Department shall issue the Energy Transition Zone | ||||||
15 | Building Materials Exemption Certificates within 3 business | ||||||
16 | days after receipt of request from the Zone Administrator. | ||||||
17 | This requirement does not apply in circumstances where the | ||||||
18 | Department, for reasonable cause, is unable to issue the | ||||||
19 | Energy Transition Zone Building Materials Exemption | ||||||
20 | Certificate within 3 business days. The Department may refuse | ||||||
21 | to issue an Energy Transition Zone Building Materials | ||||||
22 | Exemption Certificate if the owner, any partner, or a | ||||||
23 | corporate officer, and in the case of a limited liability | ||||||
24 | company, any manager or member, of the construction contractor | ||||||
25 | or other entity is or has been the owner, a partner, a | ||||||
26 | corporate officer, and in the case of a limited liability |
| |||||||
| |||||||
1 | company, a manager or member, of a person that is in default | ||||||
2 | for moneys due to the Department under this Act or any other | ||||||
3 | tax or fee Act administered by the Department. The Energy | ||||||
4 | Transition Zone Building Materials Exemption Certificate shall | ||||||
5 | contain language stating that if the construction contractor | ||||||
6 | or other entity who is issued the Energy Transition Zone | ||||||
7 | Building Materials Exemption Certificate makes a tax-exempt | ||||||
8 | purchase, as described in this Section, that is not eligible | ||||||
9 | for exemption under this Section or allows another person to | ||||||
10 | make a tax-exempt purchase, as described in this Section, that | ||||||
11 | is not eligible for exemption under this Section, then, in | ||||||
12 | addition to any tax or other penalty imposed, the construction | ||||||
13 | contractor or other entity is subject to a penalty equal to the | ||||||
14 | tax that would have been paid by the retailer under this Act as | ||||||
15 | well as any applicable local retailers' occupation tax on the | ||||||
16 | purchase that is not eligible for the exemption. | ||||||
17 | The Department, in its discretion, may require that the | ||||||
18 | request for Energy Transition Zone Building Materials | ||||||
19 | Exemption Certificates be submitted electronically. The | ||||||
20 | Department may, in its discretion, issue the Energy Transition | ||||||
21 | Zone Building Materials Exemption Certificates electronically. | ||||||
22 | The Energy Transition Zone Building Materials Exemption | ||||||
23 | Certificate number shall be designed in such a way that the | ||||||
24 | Department can identify from the unique number on the Energy | ||||||
25 | Transition Zone Building Materials Exemption Certificate | ||||||
26 | issued to a given construction contractor or other entity, the |
| |||||||
| |||||||
1 | name of the Energy Transition Zone, the project for which the | ||||||
2 | Energy Transition Zone Building Materials Exemption | ||||||
3 | Certificate is issued, and the construction contractor or | ||||||
4 | other entity to whom the Energy Transition Zone Building | ||||||
5 | Materials Exemption Certificate is issued. The Energy | ||||||
6 | Transition Zone Building Materials Exemption Certificate shall | ||||||
7 | contain an expiration date, which shall be no more than 2 years | ||||||
8 | after the date of issuance. At the request of the Zone | ||||||
9 | Administrator, the Department may renew an Energy Transition | ||||||
10 | Zone Building Materials Exemption Certificate. After the | ||||||
11 | Department issues Energy Transition Zone Building Materials | ||||||
12 | Exemption Certificates for a given Energy Transition Zone | ||||||
13 | project, the Energy Transition Zone Administrator may notify | ||||||
14 | the Department of additional construction contractors or other | ||||||
15 | entities eligible for an Energy Transition Zone Building | ||||||
16 | Materials Exemption Certificate. Upon notification by the | ||||||
17 | Energy Transition Zone Administrator and subject to the other | ||||||
18 | provisions of this subsection (b), the Department shall issue | ||||||
19 | an Energy Transition Zone Building Materials Exemption | ||||||
20 | Certificate to each additional construction contractor or | ||||||
21 | other entity identified by the Energy Transition Zone | ||||||
22 | Administrator. An Energy Transition Zone Administrator may | ||||||
23 | notify the Department to rescind an Energy Transition Zone | ||||||
24 | Building Materials Exemption Certificate previously issued by | ||||||
25 | the Department but that has not yet expired. Upon notification | ||||||
26 | by the Energy Transition Zone Administrator and subject to the |
| |||||||
| |||||||
1 | other provisions of this subsection (b), the Department shall | ||||||
2 | issue the rescission of the Energy Transition Zone Building | ||||||
3 | Materials Exemption Certificate to the construction contractor | ||||||
4 | or other entity identified by the Energy Transition Zone | ||||||
5 | Administrator and provide a copy to the Energy Transition Zone | ||||||
6 | Administrator. | ||||||
7 | If the Department of Revenue determines that a | ||||||
8 | construction contractor or other entity that was issued an | ||||||
9 | Energy Transition Zone Building Materials Exemption | ||||||
10 | Certificate under this subsection (b) made a tax-exempt | ||||||
11 | purchase, as described in this Section, that was not eligible | ||||||
12 | for exemption under this Section or allowed another person to | ||||||
13 | make a tax-exempt purchase, as described in this Section, that | ||||||
14 | was not eligible for exemption under this Section, then, in | ||||||
15 | addition to any tax or other penalty imposed, the construction | ||||||
16 | contractor or other entity is subject to a penalty equal to the | ||||||
17 | tax that would have been paid by the retailer under this Act as | ||||||
18 | well as any applicable local retailers' occupation tax on the | ||||||
19 | purchase that was not eligible for the exemption. | ||||||
20 | (c) In addition, the retailer must obtain certification | ||||||
21 | from the purchaser that contains: | ||||||
22 | (1) a statement that the building materials are being | ||||||
23 | purchased for incorporation into a green energy project | ||||||
24 | located in an Illinois Energy Transition Zone; | ||||||
25 | (2) the location or address of the real estate into
| ||||||
26 | which the building materials will be incorporated; |
| |||||||
| |||||||
1 | (3) the name of the Energy Transition Zone in which | ||||||
2 | that real estate is located; | ||||||
3 | (4) a description of the building materials being
| ||||||
4 | purchased; | ||||||
5 | (5) the purchaser's
Energy Transition Zone Building | ||||||
6 | Materials Exemption Certificate number issued by the | ||||||
7 | Department; and | ||||||
8 | (6) the purchaser's signature and date of purchase. | ||||||
9 | (d) The deduction allowed by this Section for the sale of | ||||||
10 | building materials may be limited, to the extent authorized by | ||||||
11 | ordinance by the municipality or county that created the | ||||||
12 | Energy Transition Zone into which the building materials will | ||||||
13 | be incorporated. The ordinance, however, may neither require | ||||||
14 | nor prohibit the purchase of building materials from any | ||||||
15 | retailer or class of retailers in order to qualify for the | ||||||
16 | exemption allowed under this Section. The provisions of this | ||||||
17 | Section are exempt from Section 2-70. | ||||||
18 | Section 10-30. The Illinois Municipal Code is amended by | ||||||
19 | changing Section 8-11-2 as follows:
| ||||||
20 | (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
| ||||||
21 | Sec. 8-11-2. The corporate authorities of any municipality | ||||||
22 | may tax any or
all of the following occupations or privileges:
| ||||||
23 | 1. (Blank).
| ||||||
24 | 2. Persons engaged in the business of distributing, |
| |||||||
| |||||||
1 | supplying,
furnishing, or selling gas for use or | ||||||
2 | consumption within the corporate
limits of a municipality | ||||||
3 | of 500,000 or fewer population, and not for resale,
at a | ||||||
4 | rate not to exceed 5% of the gross receipts therefrom.
| ||||||
5 | 2a. Persons engaged in the business of distributing, | ||||||
6 | supplying,
furnishing, or selling gas for use or | ||||||
7 | consumption within the corporate limits
of a municipality | ||||||
8 | of over 500,000 population, and not for resale, at a rate
| ||||||
9 | not to exceed 8% of the gross receipts therefrom. If | ||||||
10 | imposed, this tax shall
be paid in monthly payments.
| ||||||
11 | 3. The privilege of using or consuming
electricity | ||||||
12 | acquired in a purchase at retail and used or
consumed | ||||||
13 | within the corporate limits of the municipality at
rates | ||||||
14 | not to exceed the following maximum rates, calculated on
a | ||||||
15 | monthly basis for each purchaser:
| ||||||
16 | (i) For the first 2,000 kilowatt-hours used or | ||||||
17 | consumed in a month; 0.61
cents per kilowatt-hour;
| ||||||
18 | (ii) For the next 48,000 kilowatt-hours used or | ||||||
19 | consumed in a month; 0.40
cents per kilowatt-hour;
| ||||||
20 | (iii) For the next 50,000 kilowatt-hours used or | ||||||
21 | consumed in a month;
0.36 cents per kilowatt-hour;
| ||||||
22 | (iv) For the next 400,000 kilowatt-hours used or | ||||||
23 | consumed in a month;
0.35 cents per kilowatt-hour;
| ||||||
24 | (v) For the next 500,000 kilowatt-hours used or | ||||||
25 | consumed in a month;
0.34 cents per kilowatt-hour;
| ||||||
26 | (vi) For the next 2,000,000 kilowatt-hours used or |
| |||||||
| |||||||
1 | consumed in a month;
0.32 cents per kilowatt-hour;
| ||||||
2 | (vii) For the next 2,000,000 kilowatt-hours used | ||||||
3 | or consumed in a month;
0.315 cents per kilowatt-hour;
| ||||||
4 | (viii) For the next 5,000,000 kilowatt-hours used | ||||||
5 | or consumed in a month;
0.31 cents per kilowatt-hour;
| ||||||
6 | (ix) For the next 10,000,000 kilowatt-hours used | ||||||
7 | or consumed in a month;
0.305 cents per kilowatt-hour; | ||||||
8 | and
| ||||||
9 | (x) For all electricity used or consumed in excess | ||||||
10 | of 20,000,000
kilowatt-hours in a month, 0.30 cents | ||||||
11 | per kilowatt-hour.
| ||||||
12 | If a municipality imposes a tax at rates lower than | ||||||
13 | either the maximum
rates specified in this Section or the | ||||||
14 | alternative maximum rates promulgated
by the Illinois | ||||||
15 | Commerce Commission, as provided below, the tax rates | ||||||
16 | shall
be imposed upon the kilowatt - hour categories set | ||||||
17 | forth above with the same
proportional relationship as | ||||||
18 | that which exists among such maximum rates.
| ||||||
19 | Notwithstanding the foregoing, until December 31, 2008, no | ||||||
20 | municipality shall
establish rates that are in excess of | ||||||
21 | rates reasonably calculated to produce
revenues that equal | ||||||
22 | the maximum total revenues such municipality could have
| ||||||
23 | received under the tax authorized by this subparagraph in | ||||||
24 | the last full
calendar year prior to August 1, 1998 (the | ||||||
25 | effective date of Section 65 of Public Act 90-561); | ||||||
26 | provided that this shall not be a limitation on the amount |
| |||||||
| |||||||
1 | of tax
revenues actually collected by such municipality.
| ||||||
2 | Upon the request of the corporate authorities
of a | ||||||
3 | municipality, the Illinois Commerce Commission shall,
| ||||||
4 | within 90 days after receipt of such request, promulgate
| ||||||
5 | alternative rates for each of these kilowatt-hour | ||||||
6 | categories
that will reflect, as closely as reasonably | ||||||
7 | practical for that municipality,
the distribution of the | ||||||
8 | tax among classes of purchasers as if the tax
were based on | ||||||
9 | a uniform percentage of the purchase price of electricity.
| ||||||
10 | A municipality that has adopted an ordinance imposing a | ||||||
11 | tax pursuant to
subparagraph 3 as it existed prior to | ||||||
12 | August 1, 1998 (the effective date of Section 65 of Public | ||||||
13 | Act 90-561) may, rather than imposing the tax permitted by | ||||||
14 | Public Act 90-561, continue to impose the tax pursuant to | ||||||
15 | that ordinance
with respect to gross receipts received | ||||||
16 | from residential
customers through July 31, 1999, and with | ||||||
17 | respect to gross receipts from
any non-residential | ||||||
18 | customer until the first bill issued to such customer for
| ||||||
19 | delivery services in accordance with Section 16-104 of the | ||||||
20 | Public Utilities Act
but in no case later than the last | ||||||
21 | bill issued to such customer before
December 31, 2000. No | ||||||
22 | ordinance imposing the tax permitted by Public Act 90-561 | ||||||
23 | shall be applicable to any non-residential customer until | ||||||
24 | the first
bill issued to such customer for delivery | ||||||
25 | services in
accordance with Section 16-104 of the Public | ||||||
26 | Utilities Act but in no case later
than the last bill |
| |||||||
| |||||||
1 | issued to such non-residential customer
before December | ||||||
2 | 31, 2000.
| ||||||
3 | 4. Persons engaged in the business of distributing, | ||||||
4 | supplying,
furnishing, or selling water for use or | ||||||
5 | consumption within the corporate
limits of the | ||||||
6 | municipality, and not for resale, at a rate not to exceed | ||||||
7 | 5%
of the gross receipts therefrom.
| ||||||
8 | None of the taxes authorized by this Section may be | ||||||
9 | imposed with respect
to any transaction in interstate commerce | ||||||
10 | or otherwise to the extent to
which the business or privilege | ||||||
11 | may not, under the constitution and statutes
of the United | ||||||
12 | States, be made the subject of taxation by this State or any
| ||||||
13 | political sub - division thereof; nor shall any persons engaged | ||||||
14 | in the business
of distributing, supplying, furnishing, | ||||||
15 | selling or transmitting gas, water,
or electricity, or using | ||||||
16 | or consuming electricity acquired in a purchase at
retail, be | ||||||
17 | subject to taxation under the provisions of this Section for | ||||||
18 | those
transactions that are or may become subject to taxation | ||||||
19 | under the provisions
of the Municipal Retailers' Occupation | ||||||
20 | Tax Act authorized by Section 8-11-1;
nor shall any tax | ||||||
21 | authorized by this Section be imposed upon any person engaged
| ||||||
22 | in a business or on any privilege unless the tax is imposed in | ||||||
23 | like manner and
at the same rate upon all persons engaged in | ||||||
24 | businesses of the same class in
the municipality, whether | ||||||
25 | privately or municipally owned or operated, or
exercising the | ||||||
26 | same privilege within the municipality.
|
| |||||||
| |||||||
1 | Any of the taxes enumerated in this Section may be in | ||||||
2 | addition to the
payment of money, or value of products or | ||||||
3 | services furnished to the
municipality by the taxpayer as | ||||||
4 | compensation for the use of its streets,
alleys, or other | ||||||
5 | public places, or installation and maintenance therein,
| ||||||
6 | thereon or thereunder of poles, wires, pipes, or other | ||||||
7 | equipment used in the
operation of the taxpayer's business.
| ||||||
8 | (a) If the corporate authorities of any home rule | ||||||
9 | municipality have adopted
an ordinance that imposed a tax on | ||||||
10 | public utility customers, between July 1,
1971, and October 1, | ||||||
11 | 1981, on the good faith belief that they were exercising
| ||||||
12 | authority pursuant to Section 6 of Article VII of the 1970 | ||||||
13 | Illinois
Constitution, that action of the corporate | ||||||
14 | authorities shall be declared legal
and valid, notwithstanding | ||||||
15 | a later decision of a judicial tribunal declaring
the | ||||||
16 | ordinance invalid. No municipality shall be required to | ||||||
17 | rebate, refund, or
issue credits for any taxes described in | ||||||
18 | this paragraph, and those taxes shall
be deemed to have been | ||||||
19 | levied and collected in accordance with the Constitution
and | ||||||
20 | laws of this State.
| ||||||
21 | (b) In any case in which (i) prior to October 19, 1979, the | ||||||
22 | corporate
authorities of any municipality have adopted an | ||||||
23 | ordinance imposing a tax
authorized by this Section (or by the | ||||||
24 | predecessor provision of the Revised
Cities and Villages Act) | ||||||
25 | and have explicitly or in practice interpreted gross
receipts | ||||||
26 | to include either charges added to customers' bills pursuant |
| |||||||
| |||||||
1 | to the
provision of paragraph (a) of Section 36 of the Public | ||||||
2 | Utilities Act or charges
added to customers' bills by | ||||||
3 | taxpayers who are not subject to rate regulation
by the | ||||||
4 | Illinois Commerce Commission for the purpose of recovering any | ||||||
5 | of the
tax liabilities or other amounts specified in such | ||||||
6 | paragraph (a) of Section 36
of that Act, and (ii) on or after | ||||||
7 | October 19, 1979, a judicial tribunal has
construed gross | ||||||
8 | receipts to exclude all or part of those charges, then neither | ||||||
9 | that
municipality nor any taxpayer who paid the tax shall be | ||||||
10 | required to
rebate, refund, or issue credits for any tax | ||||||
11 | imposed or charge collected from
customers pursuant to the | ||||||
12 | municipality's interpretation prior to October 19,
1979. This | ||||||
13 | paragraph reflects a legislative finding that it would be | ||||||
14 | contrary
to the public interest to require a municipality or | ||||||
15 | its taxpayers to refund
taxes or charges attributable to the | ||||||
16 | municipality's more inclusive
interpretation of gross receipts | ||||||
17 | prior to October 19, 1979, and is not
intended to prescribe or | ||||||
18 | limit judicial construction of this Section. The
legislative | ||||||
19 | finding set forth in this subsection does not apply to taxes
| ||||||
20 | imposed after January 1, 1996 (the effective date of Public | ||||||
21 | Act 89-325).
| ||||||
22 | (c) The tax authorized by subparagraph 3 shall be
| ||||||
23 | collected from the purchaser by the person maintaining a
place | ||||||
24 | of business in this State who delivers the electricity
to the | ||||||
25 | purchaser. This tax shall constitute a debt of the
purchaser | ||||||
26 | to the person who delivers the electricity to the
purchaser |
| |||||||
| |||||||
1 | and if unpaid, is recoverable in the same manner as
the | ||||||
2 | original charge for delivering the electricity. Any tax
| ||||||
3 | required to be collected pursuant to an ordinance authorized
| ||||||
4 | by subparagraph 3 and any such tax collected by a person
| ||||||
5 | delivering electricity shall constitute a debt owed to the
| ||||||
6 | municipality by such person delivering the electricity, | ||||||
7 | provided, that the
person delivering electricity shall be | ||||||
8 | allowed credit for such tax related to
deliveries of | ||||||
9 | electricity the charges for which are written off as
| ||||||
10 | uncollectible, and provided further, that if such charges are | ||||||
11 | thereafter
collected, the delivering supplier shall be | ||||||
12 | obligated to remit such tax. For
purposes of this subsection | ||||||
13 | (c), any partial payment not specifically
identified by the | ||||||
14 | purchaser shall be deemed to be for the delivery of
| ||||||
15 | electricity. Persons delivering electricity shall collect the | ||||||
16 | tax from the
purchaser by adding such tax to the gross charge | ||||||
17 | for
delivering the electricity, in the manner prescribed by | ||||||
18 | the
municipality. Persons delivering electricity shall also be
| ||||||
19 | authorized to add to such gross charge an amount equal to 3%
of | ||||||
20 | the tax to reimburse the person delivering
electricity for the | ||||||
21 | expenses incurred in keeping records,
billing customers, | ||||||
22 | preparing and filing returns, remitting the
tax and supplying | ||||||
23 | data to the municipality upon request. If
the person | ||||||
24 | delivering electricity fails to collect the tax
from the | ||||||
25 | purchaser, then the purchaser shall be required to
pay the tax | ||||||
26 | directly to the municipality in the manner
prescribed by the |
| |||||||
| |||||||
1 | municipality. Persons delivering
electricity who file returns | ||||||
2 | pursuant to this paragraph (c)
shall, at the time of filing | ||||||
3 | such return, pay the municipality
the amount of the tax | ||||||
4 | collected pursuant to subparagraph 3.
| ||||||
5 | (d) For the purpose of the taxes enumerated in this | ||||||
6 | Section:
| ||||||
7 | "Gross receipts" means the consideration received for | ||||||
8 | distributing, supplying,
furnishing or selling gas for use or | ||||||
9 | consumption and not for resale, and the
consideration received | ||||||
10 | for distributing, supplying, furnishing or selling
water for | ||||||
11 | use or consumption and not for resale, and for all services
| ||||||
12 | rendered in connection therewith valued in money, whether | ||||||
13 | received in money
or otherwise, including cash, credit, | ||||||
14 | services and property of every kind
and material and for all | ||||||
15 | services rendered therewith, and shall be
determined without | ||||||
16 | any deduction on account of the cost of the service,
product or | ||||||
17 | commodity supplied, the cost of materials used, labor or | ||||||
18 | service
cost, or any other expenses whatsoever. "Gross | ||||||
19 | receipts" shall not include
that portion of the consideration | ||||||
20 | received for distributing, supplying,
furnishing, or selling | ||||||
21 | gas or water to business enterprises or green energy | ||||||
22 | enterprises described in
paragraph (e) of this Section to the | ||||||
23 | extent and during the period in which the
exemption authorized | ||||||
24 | by paragraph (e) is in effect or for school districts or
units | ||||||
25 | of local government described in paragraph (f) during the | ||||||
26 | period in which
the exemption authorized in paragraph (f) is |
| |||||||
| |||||||
1 | in effect.
| ||||||
2 | For utility bills issued on or after May 1, 1996, but | ||||||
3 | before May 1, 1997,
and for receipts from those utility bills, | ||||||
4 | "gross receipts" does not include
one-third of (i) amounts | ||||||
5 | added to customers' bills under Section 9-222 of the
Public | ||||||
6 | Utilities Act, or (ii) amounts added to customers' bills by | ||||||
7 | taxpayers
who are not subject to rate regulation by the | ||||||
8 | Illinois Commerce Commission for
the purpose of recovering any | ||||||
9 | of the tax liabilities described in Section
9-222 of the | ||||||
10 | Public Utilities Act. For utility bills issued on or after May | ||||||
11 | 1,
1997, but before May 1, 1998, and for receipts from those | ||||||
12 | utility bills, "gross
receipts" does not include two-thirds of | ||||||
13 | (i) amounts added to customers' bills
under Section 9-222 of | ||||||
14 | the Public Utilities Act, or (ii) amount added to
customers' | ||||||
15 | bills by taxpayers who are not subject to rate regulation by | ||||||
16 | the
Illinois Commerce Commission for the purpose of recovering | ||||||
17 | any of the tax
liabilities described in Section 9-222 of the | ||||||
18 | Public Utilities Act. For
utility bills issued on or after May | ||||||
19 | 1, 1998, and for receipts from those
utility bills, "gross | ||||||
20 | receipts" does not include (i) amounts added to
customers' | ||||||
21 | bills under Section 9-222 of the Public Utilities Act, or (ii)
| ||||||
22 | amounts added to customers' bills by taxpayers who are
not | ||||||
23 | subject to rate regulation by the Illinois Commerce Commission | ||||||
24 | for the
purpose of recovering any of the tax liabilities | ||||||
25 | described in Section 9-222
of the Public Utilities Act.
| ||||||
26 | For purposes of this Section "gross receipts" shall not |
| |||||||
| |||||||
1 | include amounts
added to customers' bills under Section 9-221 | ||||||
2 | of the Public Utilities Act.
This paragraph is not intended to | ||||||
3 | nor does it make any change in the meaning
of "gross receipts" | ||||||
4 | for the purposes of this Section, but is intended to
remove | ||||||
5 | possible ambiguities, thereby confirming the existing meaning | ||||||
6 | of
"gross receipts" prior to January 1, 1996 (the effective | ||||||
7 | date of Public Act 89-325).
| ||||||
8 | "Person" as used in this Section means any natural | ||||||
9 | individual, firm,
trust, estate, partnership, association, | ||||||
10 | joint stock company, joint
adventure, corporation, limited | ||||||
11 | liability company, municipal corporation,
the State or any of | ||||||
12 | its political subdivisions, any State university created
by | ||||||
13 | statute, or a receiver, trustee, guardian or other | ||||||
14 | representative appointed
by order of any court.
| ||||||
15 | "Person maintaining a place of business in this State"
| ||||||
16 | shall mean any person having or maintaining within this State,
| ||||||
17 | directly or by a subsidiary or other affiliate, an office,
| ||||||
18 | generation facility, distribution facility, transmission
| ||||||
19 | facility, sales office or other place of business, or any
| ||||||
20 | employee, agent, or other representative operating within this
| ||||||
21 | State under the authority of the person or its subsidiary or
| ||||||
22 | other affiliate, irrespective of whether such place of
| ||||||
23 | business or agent or other representative is located in this
| ||||||
24 | State permanently or temporarily, or whether such person,
| ||||||
25 | subsidiary or other affiliate is licensed or qualified to do
| ||||||
26 | business in this State.
|
| |||||||
| |||||||
1 | "Public utility" shall have the meaning ascribed to it in | ||||||
2 | Section 3-105
of the Public Utilities Act and shall include | ||||||
3 | alternative retail
electric suppliers as defined in Section | ||||||
4 | 16-102 of that Act.
| ||||||
5 | "Purchase at retail" shall mean any acquisition of
| ||||||
6 | electricity by a purchaser for purposes of use or consumption,
| ||||||
7 | and not for resale, but shall not include the use of
| ||||||
8 | electricity by a public utility directly in the generation,
| ||||||
9 | production, transmission, delivery or sale of electricity.
| ||||||
10 | "Purchaser" shall mean any person who uses or consumes,
| ||||||
11 | within the corporate limits of the municipality, electricity
| ||||||
12 | acquired in a purchase at retail.
| ||||||
13 | (e) Any municipality that imposes taxes upon public | ||||||
14 | utilities or upon the
privilege of using or consuming | ||||||
15 | electricity pursuant to this Section whose
territory includes | ||||||
16 | any part of an enterprise zone , Energy Transition Zone, or | ||||||
17 | federally designated
Foreign Trade Zone or Sub-Zone may, by a | ||||||
18 | majority vote of its corporate
authorities, exempt from those | ||||||
19 | taxes for a period not exceeding 20 years any
specified | ||||||
20 | percentage of gross receipts of public utilities received | ||||||
21 | from, or
electricity used or consumed by, business enterprises | ||||||
22 | or green energy enterprises that:
| ||||||
23 | (1) either (i) make investments that cause the | ||||||
24 | creation of a minimum
of 200 full-time equivalent jobs in | ||||||
25 | Illinois, (ii) make investments of at
least $175,000,000 | ||||||
26 | that cause the creation of a minimum of 150 full-time
|
| |||||||
| |||||||
1 | equivalent jobs in Illinois, or (iii) make investments | ||||||
2 | that
cause the retention of a minimum of 1,000 full-time | ||||||
3 | jobs in Illinois; and
| ||||||
4 | (2) are either (i) located in an Enterprise Zone | ||||||
5 | established pursuant to
the Illinois Enterprise Zone Act | ||||||
6 | or (ii) Department of Commerce and
Economic Opportunity | ||||||
7 | designated High Impact Businesses located in a federally
| ||||||
8 | designated Foreign Trade Zone or Sub-Zone; or (iii) | ||||||
9 | located in an Energy Transition Zone established pursuant | ||||||
10 | to the Illinois Energy Transition Zone Act; and
| ||||||
11 | (3) are certified by the Department of Commerce and | ||||||
12 | Economic Opportunity as
complying with the requirements | ||||||
13 | specified in clauses (1) and (2) of this
paragraph (e).
| ||||||
14 | Upon adoption of the ordinance authorizing the exemption, | ||||||
15 | the municipal
clerk shall transmit a copy of that ordinance to | ||||||
16 | the Department of Commerce
and Economic Opportunity. The | ||||||
17 | Department of Commerce and Economic Opportunity shall
| ||||||
18 | determine whether the business enterprises or green energy | ||||||
19 | enterprises located in the municipality meet the
criteria | ||||||
20 | prescribed in this paragraph. If the Department of Commerce | ||||||
21 | and
Economic Opportunity determines that the business | ||||||
22 | enterprises or green energy enterprises meet the criteria,
it | ||||||
23 | shall grant certification. The Department of Commerce and | ||||||
24 | Economic Opportunity
shall act upon certification requests | ||||||
25 | within 30 days after receipt of the
ordinance.
| ||||||
26 | Upon certification of the business enterprise or green |
| |||||||
| |||||||
1 | energy enterprises by the Department of
Commerce and Economic | ||||||
2 | Opportunity, the Department of Commerce and Economic | ||||||
3 | Opportunity shall notify the Department of Revenue of the | ||||||
4 | certification. The
Department of Revenue shall notify the | ||||||
5 | public utilities of the exemption
status of the gross receipts | ||||||
6 | received from, and the electricity used or
consumed by, the | ||||||
7 | certified business enterprises and certified green energy | ||||||
8 | enterprises . Such exemption status shall
be effective within 3 | ||||||
9 | months after certification.
| ||||||
10 | (f) A municipality that imposes taxes upon public | ||||||
11 | utilities or upon the
privilege of using or consuming | ||||||
12 | electricity under this Section and whose
territory includes | ||||||
13 | part of another unit of local government or a school
district | ||||||
14 | may by ordinance exempt the other unit of local government or | ||||||
15 | school
district from those taxes.
| ||||||
16 | (g) The amendment of this Section by Public Act 84-127 | ||||||
17 | shall take precedence
over any other amendment of this Section | ||||||
18 | by any other amendatory Act passed by
the 84th General | ||||||
19 | Assembly before August 1, 1985 (the effective date of Public | ||||||
20 | Act 84-127).
| ||||||
21 | (h) In any case in which, before July 1, 1992, a person | ||||||
22 | engaged in
the business of transmitting messages through the | ||||||
23 | use of mobile equipment,
such as cellular phones and paging | ||||||
24 | systems, has determined the municipality
within which the | ||||||
25 | gross receipts from the business originated by reference to
| ||||||
26 | the location of its transmitting or switching equipment, then |
| |||||||
| |||||||
1 | (i) neither the
municipality to which tax was paid on that | ||||||
2 | basis nor the taxpayer that paid tax
on that basis shall be | ||||||
3 | required to rebate, refund, or issue credits for any
such tax | ||||||
4 | or charge collected from customers to reimburse the taxpayer | ||||||
5 | for the
tax and (ii) no municipality to which tax would have | ||||||
6 | been paid with respect to
those gross receipts if the | ||||||
7 | provisions of Public Act 87-773 had been
in effect before July | ||||||
8 | 1, 1992, shall have any claim against the taxpayer for
any | ||||||
9 | amount of the tax.
| ||||||
10 | (Source: P.A. 100-201, eff. 8-18-17.)
| ||||||
11 | Section 10-35. 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 | ||||||
16 | such 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, | ||||||
20 | with interest,
in such manner as it shall deem just and | ||||||
21 | reasonable, and in and by such
order shall require the utility | ||||||
22 | to file an amended supplemental schedule
corresponding to the | ||||||
23 | finding and 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 | ||||||
2 | utility
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 | ||||||
14 | exemption is in effect,
in addition to any rate authorized by | ||||||
15 | this Act, an additional
charge equal to the total amount of | ||||||
16 | such taxes. The exemption of this
Section relating to high | ||||||
17 | impact businesses shall be subject to the
provisions of | ||||||
18 | subsections (a), (b), and (b-5) of Section 5.5 of
the Illinois
| ||||||
19 | Enterprise Zone Act. This requirement shall not
apply to taxes | ||||||
20 | on invested capital imposed pursuant to the Messages Tax
Act, | ||||||
21 | the Gas Revenue Tax Act and the Public Utilities Revenue Act.
| ||||||
22 | Such utility shall file with the Commission
a supplemental | ||||||
23 | schedule which shall specify such additional charge and
which | ||||||
24 | shall become effective upon filing without further notice. | ||||||
25 | Such
additional charge shall be shown separately on the | ||||||
26 | utility bill to each
customer. The Commission shall have the |
| |||||||
| |||||||
1 | power to 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 | ||||||
6 | order require a
refund to the appropriate customers of the | ||||||
7 | excess, if any, with interest,
in such manner as it shall deem | ||||||
8 | just and reasonable, and in and by such
order shall require the | ||||||
9 | utility to file an amended supplemental schedule
corresponding | ||||||
10 | to the finding and order of the Commission.
Except with | ||||||
11 | respect to taxes imposed on invested capital,
such tax | ||||||
12 | liabilities shall be recovered from customers solely by means | ||||||
13 | of
the additional charges authorized by this Section.
| ||||||
14 | (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
| ||||||
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 | ||||||
23 | taxes under Sections 9-221 and 9-222 of this Act, to the extent | ||||||
24 | such charges are exempted by ordinance adopted in accordance | ||||||
25 | with paragraph (e) of Section 8-11-2 of the Illinois Municipal |
| |||||||
| |||||||
1 | Code in the case of municipal utility taxes, and to the extent | ||||||
2 | such 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
| ||||||
15 | established pursuant to the Illinois Energy Transition | ||||||
16 | Zone Act; and | ||||||
17 | (3) it is certified by the Department of Commerce and
| ||||||
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 |
| |||||||
| |||||||
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 | ||||||
4 | under this Section; to define the amounts and types of | ||||||
5 | eligible investments which green energy enterprises must make | ||||||
6 | in order to receive State utility tax exemptions pursuant to | ||||||
7 | Sections 9-222 and 9-222.1B of this Act; to approve such | ||||||
8 | utility tax exemptions for green energy enterprises whose | ||||||
9 | investments are not yet placed in service; and to require that | ||||||
10 | green energy enterprises granted tax exemptions repay the | ||||||
11 | exempted tax should the green energy enterprise fail to comply | ||||||
12 | with the terms and conditions of the certification. However, | ||||||
13 | no green energy enterprise shall be required, as a condition | ||||||
14 | for certification under clause (3) of this Section, to attest | ||||||
15 | that its decision to invest under clause (1) of this Section | ||||||
16 | and to locate under clause (2) of this Section is predicated | ||||||
17 | upon the availability of the exemptions authorized by this | ||||||
18 | Section. | ||||||
19 | A green energy enterprise shall be exempt, in whole or in | ||||||
20 | part, from the pass-on charges of municipal utility taxes | ||||||
21 | imposed under Section 9-221, only if it meets the criteria | ||||||
22 | specified in clauses (1) through (3) of this Section and the | ||||||
23 | municipality has adopted an ordinance authorizing the | ||||||
24 | exemption under paragraph (e) of Section 8-11-2 of the | ||||||
25 | Illinois Municipal Code. Upon certification of the green | ||||||
26 | energy enterprises by the Department of Commerce and Economic |
| |||||||
| |||||||
1 | Opportunity, the Department of Commerce and Economic | ||||||
2 | Opportunity shall notify the Department of Revenue of such | ||||||
3 | certification. The Department of Revenue shall notify the | ||||||
4 | public utilities of the exemption status of green energy | ||||||
5 | enterprises from the pass-on charges of State and municipal | ||||||
6 | utility taxes. Such exemption status shall be effective within | ||||||
7 | 3 months after certification of the green energy enterprise. | ||||||
8 | Article 99. Effective date
| ||||||
9 | Section 99-99. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
|