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92_HB0353
LRB9202161SMdvA
1 AN ACT concerning the environment.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Enterprise Zone Act is amended
5 by adding Section 4.5 as follows:
6 (20 ILCS 655/4.5 new)
7 Sec. 4.5. Eligibility of environmental remediation
8 projects. A project eligible for an environmental
9 remediation tax credit under Section 58.14 of the
10 Environmental Protection Act may be eligible for the
11 incentives provided under this Act as provided in subsection
12 (f-10) of Section 58.14 of the Environmental Protection Act.
13 Section 10. The State Finance Act is amended by adding
14 Section 5.545 as follows:
15 (30 ILCS 105/5.545 new)
16 Sec. 5.545. The Distressed Communities and Industries
17 Grant Fund. Subsections (b) and (c) of Section 5 of this Act
18 do not apply to this Fund.
19 Section 15. The Economic Development for a Growing
20 Economy Tax Credit Act is amended by changing Section 5-20 as
21 follows:
22 (35 ILCS 10/5-20)
23 Sec. 5-20. Application for a project to create and
24 retain new jobs.
25 (a) Any Taxpayer proposing a project located or planned
26 to be located in Illinois may request consideration for
27 designation of its project, by formal written letter of
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1 request or by formal application to the Department, in which
2 the Applicant states its intent to make at least a specified
3 level of investment and intends to hire or retain a specified
4 number of full-time employees at a designated location in
5 Illinois. As circumstances require, the Department may
6 require a formal application from an Applicant and a formal
7 letter of request for assistance.
8 (b) In order to qualify for Credits under this Act, an
9 Applicant's project must:
10 (1) involve an investment of at least $5,000,000 in
11 capital improvements to be placed in service and to
12 employ at least 25 New Employees within the State as a
13 direct result of the project; or
14 (2) involve an investment of at least an amount (to
15 be expressly specified by the Department and the
16 Committee) in capital improvements to be placed in
17 service and will employ at least an amount (to be
18 expressly specified by the Department and the Committee)
19 of New Employees within the State, provided that the
20 Department and the Committee have determined that the
21 project will provide a substantial economic benefit to
22 the State; or
23 (3) meet the requirements set forth in subsection
24 (f-10) of Section 58.14 of the Environmental Protection
25 Act.
26 (c) After receipt of an application, the Department may
27 enter into an Agreement with the Applicant if the application
28 is accepted in accordance with Section 5-25.
29 (Source: P.A. 91-476, eff. 8-11-99.)
30 Section 20. The Illinois Income Tax Act is amended by
31 changing Section 201 as follows:
32 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
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1 Sec. 201. Tax Imposed.
2 (a) In general. A tax measured by net income is hereby
3 imposed on every individual, corporation, trust and estate
4 for each taxable year ending after July 31, 1969 on the
5 privilege of earning or receiving income in or as a resident
6 of this State. Such tax shall be in addition to all other
7 occupation or privilege taxes imposed by this State or by any
8 municipal corporation or political subdivision thereof.
9 (b) Rates. The tax imposed by subsection (a) of this
10 Section shall be determined as follows, except as adjusted by
11 subsection (d-1):
12 (1) In the case of an individual, trust or estate,
13 for taxable years ending prior to July 1, 1989, an amount
14 equal to 2 1/2% of the taxpayer's net income for the
15 taxable year.
16 (2) In the case of an individual, trust or estate,
17 for taxable years beginning prior to July 1, 1989 and
18 ending after June 30, 1989, an amount equal to the sum of
19 (i) 2 1/2% of the taxpayer's net income for the period
20 prior to July 1, 1989, as calculated under Section 202.3,
21 and (ii) 3% of the taxpayer's net income for the period
22 after June 30, 1989, as calculated under Section 202.3.
23 (3) In the case of an individual, trust or estate,
24 for taxable years beginning after June 30, 1989, an
25 amount equal to 3% of the taxpayer's net income for the
26 taxable year.
27 (4) (Blank).
28 (5) (Blank).
29 (6) In the case of a corporation, for taxable years
30 ending prior to July 1, 1989, an amount equal to 4% of
31 the taxpayer's net income for the taxable year.
32 (7) In the case of a corporation, for taxable years
33 beginning prior to July 1, 1989 and ending after June 30,
34 1989, an amount equal to the sum of (i) 4% of the
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1 taxpayer's net income for the period prior to July 1,
2 1989, as calculated under Section 202.3, and (ii) 4.8% of
3 the taxpayer's net income for the period after June 30,
4 1989, as calculated under Section 202.3.
5 (8) In the case of a corporation, for taxable years
6 beginning after June 30, 1989, an amount equal to 4.8% of
7 the taxpayer's net income for the taxable year.
8 (c) Beginning on July 1, 1979 and thereafter, in
9 addition to such income tax, there is also hereby imposed the
10 Personal Property Tax Replacement Income Tax measured by net
11 income on every corporation (including Subchapter S
12 corporations), partnership and trust, for each taxable year
13 ending after June 30, 1979. Such taxes are imposed on the
14 privilege of earning or receiving income in or as a resident
15 of this State. The Personal Property Tax Replacement Income
16 Tax shall be in addition to the income tax imposed by
17 subsections (a) and (b) of this Section and in addition to
18 all other occupation or privilege taxes imposed by this State
19 or by any municipal corporation or political subdivision
20 thereof.
21 (d) Additional Personal Property Tax Replacement Income
22 Tax Rates. The personal property tax replacement income tax
23 imposed by this subsection and subsection (c) of this Section
24 in the case of a corporation, other than a Subchapter S
25 corporation and except as adjusted by subsection (d-1), shall
26 be an additional amount equal to 2.85% of such taxpayer's net
27 income for the taxable year, except that beginning on January
28 1, 1981, and thereafter, the rate of 2.85% specified in this
29 subsection shall be reduced to 2.5%, and in the case of a
30 partnership, trust or a Subchapter S corporation shall be an
31 additional amount equal to 1.5% of such taxpayer's net income
32 for the taxable year.
33 (d-1) Rate reduction for certain foreign insurers. In
34 the case of a foreign insurer, as defined by Section 35A-5 of
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1 the Illinois Insurance Code, whose state or country of
2 domicile imposes on insurers domiciled in Illinois a
3 retaliatory tax (excluding any insurer whose premiums from
4 reinsurance assumed are 50% or more of its total insurance
5 premiums as determined under paragraph (2) of subsection (b)
6 of Section 304, except that for purposes of this
7 determination premiums from reinsurance do not include
8 premiums from inter-affiliate reinsurance arrangements),
9 beginning with taxable years ending on or after December 31,
10 1999, the sum of the rates of tax imposed by subsections (b)
11 and (d) shall be reduced (but not increased) to the rate at
12 which the total amount of tax imposed under this Act, net of
13 all credits allowed under this Act, shall equal (i) the total
14 amount of tax that would be imposed on the foreign insurer's
15 net income allocable to Illinois for the taxable year by such
16 foreign insurer's state or country of domicile if that net
17 income were subject to all income taxes and taxes measured by
18 net income imposed by such foreign insurer's state or country
19 of domicile, net of all credits allowed or (ii) a rate of
20 zero if no such tax is imposed on such income by the foreign
21 insurer's state of domicile. For the purposes of this
22 subsection (d-1), an inter-affiliate includes a mutual
23 insurer under common management.
24 (1) For the purposes of subsection (d-1), in no
25 event shall the sum of the rates of tax imposed by
26 subsections (b) and (d) be reduced below the rate at
27 which the sum of:
28 (A) the total amount of tax imposed on such
29 foreign insurer under this Act for a taxable year,
30 net of all credits allowed under this Act, plus
31 (B) the privilege tax imposed by Section 409
32 of the Illinois Insurance Code, the fire insurance
33 company tax imposed by Section 12 of the Fire
34 Investigation Act, and the fire department taxes
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1 imposed under Section 11-10-1 of the Illinois
2 Municipal Code,
3 equals 1.25% of the net taxable premiums written for the
4 taxable year, as described by subsection (1) of Section
5 409 of the Illinois Insurance Code. This paragraph will
6 in no event increase the rates imposed under subsections
7 (b) and (d).
8 (2) Any reduction in the rates of tax imposed by
9 this subsection shall be applied first against the rates
10 imposed by subsection (b) and only after the tax imposed
11 by subsection (a) net of all credits allowed under this
12 Section other than the credit allowed under subsection
13 (i) has been reduced to zero, against the rates imposed
14 by subsection (d).
15 This subsection (d-1) is exempt from the provisions of
16 Section 250.
17 (e) Investment credit. A taxpayer shall be allowed a
18 credit against the Personal Property Tax Replacement Income
19 Tax for investment in qualified property.
20 (1) A taxpayer shall be allowed a credit equal to
21 .5% of the basis of qualified property placed in service
22 during the taxable year, provided such property is placed
23 in service on or after July 1, 1984. There shall be
24 allowed an additional credit equal to .5% of the basis of
25 qualified property placed in service during the taxable
26 year, provided such property is placed in service on or
27 after July 1, 1986, and the taxpayer's base employment
28 within Illinois has increased by 1% or more over the
29 preceding year as determined by the taxpayer's employment
30 records filed with the Illinois Department of Employment
31 Security. Taxpayers who are new to Illinois shall be
32 deemed to have met the 1% growth in base employment for
33 the first year in which they file employment records with
34 the Illinois Department of Employment Security. The
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1 provisions added to this Section by Public Act 85-1200
2 (and restored by Public Act 87-895) shall be construed as
3 declaratory of existing law and not as a new enactment.
4 If, in any year, the increase in base employment within
5 Illinois over the preceding year is less than 1%, the
6 additional credit shall be limited to that percentage
7 times a fraction, the numerator of which is .5% and the
8 denominator of which is 1%, but shall not exceed .5%.
9 The investment credit shall not be allowed to the extent
10 that it would reduce a taxpayer's liability in any tax
11 year below zero, nor may any credit for qualified
12 property be allowed for any year other than the year in
13 which the property was placed in service in Illinois. For
14 tax years ending on or after December 31, 1987, and on or
15 before December 31, 1988, the credit shall be allowed for
16 the tax year in which the property is placed in service,
17 or, if the amount of the credit exceeds the tax liability
18 for that year, whether it exceeds the original liability
19 or the liability as later amended, such excess may be
20 carried forward and applied to the tax liability of the 5
21 taxable years following the excess credit years if the
22 taxpayer (i) makes investments which cause the creation
23 of a minimum of 2,000 full-time equivalent jobs in
24 Illinois, (ii) is located in an enterprise zone
25 established pursuant to the Illinois Enterprise Zone Act
26 and (iii) is certified by the Department of Commerce and
27 Community Affairs as complying with the requirements
28 specified in clause (i) and (ii) by July 1, 1986. The
29 Department of Commerce and Community Affairs shall notify
30 the Department of Revenue of all such certifications
31 immediately. For tax years ending after December 31,
32 1988, the credit shall be allowed for the tax year in
33 which the property is placed in service, or, if the
34 amount of the credit exceeds the tax liability for that
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1 year, whether it exceeds the original liability or the
2 liability as later amended, such excess may be carried
3 forward and applied to the tax liability of the 5 taxable
4 years following the excess credit years. The credit shall
5 be applied to the earliest year for which there is a
6 liability. If there is credit from more than one tax year
7 that is available to offset a liability, earlier credit
8 shall be applied first.
9 (2) The term "qualified property" means property
10 which:
11 (A) is tangible, whether new or used,
12 including buildings and structural components of
13 buildings and signs that are real property, but not
14 including land or improvements to real property that
15 are not a structural component of a building such as
16 landscaping, sewer lines, local access roads,
17 fencing, parking lots, and other appurtenances;
18 (B) is depreciable pursuant to Section 167 of
19 the Internal Revenue Code, except that "3-year
20 property" as defined in Section 168(c)(2)(A) of that
21 Code is not eligible for the credit provided by this
22 subsection (e);
23 (C) is acquired by purchase as defined in
24 Section 179(d) of the Internal Revenue Code;
25 (D) is used in Illinois by a taxpayer who is
26 primarily engaged in manufacturing, or in mining
27 coal or fluorite, or in retailing; and
28 (E) has not previously been used in Illinois
29 in such a manner and by such a person as would
30 qualify for the credit provided by this subsection
31 (e) or subsection (f).
32 (3) For purposes of this subsection (e),
33 "manufacturing" means the material staging and production
34 of tangible personal property by procedures commonly
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1 regarded as manufacturing, processing, fabrication, or
2 assembling which changes some existing material into new
3 shapes, new qualities, or new combinations. For purposes
4 of this subsection (e) the term "mining" shall have the
5 same meaning as the term "mining" in Section 613(c) of
6 the Internal Revenue Code. For purposes of this
7 subsection (e), the term "retailing" means the sale of
8 tangible personal property or services rendered in
9 conjunction with the sale of tangible consumer goods or
10 commodities.
11 (4) The basis of qualified property shall be the
12 basis used to compute the depreciation deduction for
13 federal income tax purposes.
14 (5) If the basis of the property for federal income
15 tax depreciation purposes is increased after it has been
16 placed in service in Illinois by the taxpayer, the amount
17 of such increase shall be deemed property placed in
18 service on the date of such increase in basis.
19 (6) The term "placed in service" shall have the
20 same meaning as under Section 46 of the Internal Revenue
21 Code.
22 (7) If during any taxable year, any property ceases
23 to be qualified property in the hands of the taxpayer
24 within 48 months after being placed in service, or the
25 situs of any qualified property is moved outside Illinois
26 within 48 months after being placed in service, the
27 Personal Property Tax Replacement Income Tax for such
28 taxable year shall be increased. Such increase shall be
29 determined by (i) recomputing the investment credit which
30 would have been allowed for the year in which credit for
31 such property was originally allowed by eliminating such
32 property from such computation and, (ii) subtracting such
33 recomputed credit from the amount of credit previously
34 allowed. For the purposes of this paragraph (7), a
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1 reduction of the basis of qualified property resulting
2 from a redetermination of the purchase price shall be
3 deemed a disposition of qualified property to the extent
4 of such reduction.
5 (8) Unless the investment credit is extended by
6 law, the basis of qualified property shall not include
7 costs incurred after December 31, 2003, except for costs
8 incurred pursuant to a binding contract entered into on
9 or before December 31, 2003.
10 (9) Each taxable year ending before December 31,
11 2000, a partnership may elect to pass through to its
12 partners the credits to which the partnership is entitled
13 under this subsection (e) for the taxable year. A
14 partner may use the credit allocated to him or her under
15 this paragraph only against the tax imposed in
16 subsections (c) and (d) of this Section. If the
17 partnership makes that election, those credits shall be
18 allocated among the partners in the partnership in
19 accordance with the rules set forth in Section 704(b) of
20 the Internal Revenue Code, and the rules promulgated
21 under that Section, and the allocated amount of the
22 credits shall be allowed to the partners for that taxable
23 year. The partnership shall make this election on its
24 Personal Property Tax Replacement Income Tax return for
25 that taxable year. The election to pass through the
26 credits shall be irrevocable.
27 For taxable years ending on or after December 31,
28 2000, a partner that qualifies its partnership for a
29 subtraction under subparagraph (I) of paragraph (2) of
30 subsection (d) of Section 203 or a shareholder that
31 qualifies a Subchapter S corporation for a subtraction
32 under subparagraph (S) of paragraph (2) of subsection (b)
33 of Section 203 shall be allowed a credit under this
34 subsection (e) equal to its share of the credit earned
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1 under this subsection (e) during the taxable year by the
2 partnership or Subchapter S corporation, determined in
3 accordance with the determination of income and
4 distributive share of income under Sections 702 and 704
5 and Subchapter S of the Internal Revenue Code. This
6 paragraph is exempt from the provisions of Section 250.
7 (f) Investment credit; Enterprise Zone.
8 (1) A taxpayer shall be allowed a credit against
9 the tax imposed by subsections (a) and (b) of this
10 Section for investment in qualified property which is
11 placed in service in an Enterprise Zone created pursuant
12 to the Illinois Enterprise Zone Act. For partners,
13 shareholders of Subchapter S corporations, and owners of
14 limited liability companies, if the liability company is
15 treated as a partnership for purposes of federal and
16 State income taxation, there shall be allowed a credit
17 under this subsection (f) to be determined in accordance
18 with the determination of income and distributive share
19 of income under Sections 702 and 704 and Subchapter S of
20 the Internal Revenue Code. The credit shall be .5% of the
21 basis for such property. The credit shall be available
22 only in the taxable year in which the property is placed
23 in service in the Enterprise Zone and shall not be
24 allowed to the extent that it would reduce a taxpayer's
25 liability for the tax imposed by subsections (a) and (b)
26 of this Section to below zero. For tax years ending on or
27 after December 31, 1985, the credit shall be allowed for
28 the tax year in which the property is placed in service,
29 or, if the amount of the credit exceeds the tax liability
30 for that year, whether it exceeds the original liability
31 or the liability as later amended, such excess may be
32 carried forward and applied to the tax liability of the 5
33 taxable years following the excess credit year. The
34 credit shall be applied to the earliest year for which
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1 there is a liability. If there is credit from more than
2 one tax year that is available to offset a liability, the
3 credit accruing first in time shall be applied first.
4 (2) The term qualified property means property
5 which:
6 (A) is tangible, whether new or used,
7 including buildings and structural components of
8 buildings;
9 (B) is depreciable pursuant to Section 167 of
10 the Internal Revenue Code, except that "3-year
11 property" as defined in Section 168(c)(2)(A) of that
12 Code is not eligible for the credit provided by this
13 subsection (f);
14 (C) is acquired by purchase as defined in
15 Section 179(d) of the Internal Revenue Code;
16 (D) is used in the Enterprise Zone by the
17 taxpayer; and
18 (E) has not been previously used in Illinois
19 in such a manner and by such a person as would
20 qualify for the credit provided by this subsection
21 (f) or subsection (e).
22 (3) The basis of qualified property shall be the
23 basis used to compute the depreciation deduction for
24 federal income tax purposes.
25 (4) If the basis of the property for federal income
26 tax depreciation purposes is increased after it has been
27 placed in service in the Enterprise Zone by the taxpayer,
28 the amount of such increase shall be deemed property
29 placed in service on the date of such increase in basis.
30 (5) The term "placed in service" shall have the
31 same meaning as under Section 46 of the Internal Revenue
32 Code.
33 (6) If during any taxable year, any property ceases
34 to be qualified property in the hands of the taxpayer
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1 within 48 months after being placed in service, or the
2 situs of any qualified property is moved outside the
3 Enterprise Zone within 48 months after being placed in
4 service, the tax imposed under subsections (a) and (b) of
5 this Section for such taxable year shall be increased.
6 Such increase shall be determined by (i) recomputing the
7 investment credit which would have been allowed for the
8 year in which credit for such property was originally
9 allowed by eliminating such property from such
10 computation, and (ii) subtracting such recomputed credit
11 from the amount of credit previously allowed. For the
12 purposes of this paragraph (6), a reduction of the basis
13 of qualified property resulting from a redetermination of
14 the purchase price shall be deemed a disposition of
15 qualified property to the extent of such reduction.
16 (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade
17 Zone or Sub-Zone.
18 (1) A taxpayer conducting a trade or business in an
19 enterprise zone or a High Impact Business designated by
20 the Department of Commerce and Community Affairs
21 conducting a trade or business in a federally designated
22 Foreign Trade Zone or Sub-Zone shall be allowed a credit
23 against the tax imposed by subsections (a) and (b) of
24 this Section in the amount of $500 per eligible employee
25 hired to work in the zone during the taxable year.
26 (2) To qualify for the credit:
27 (A) the taxpayer must hire 5 or more eligible
28 employees to work in an enterprise zone or federally
29 designated Foreign Trade Zone or Sub-Zone during the
30 taxable year;
31 (B) the taxpayer's total employment within the
32 enterprise zone or federally designated Foreign
33 Trade Zone or Sub-Zone must increase by 5 or more
34 full-time employees beyond the total employed in
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1 that zone at the end of the previous tax year for
2 which a jobs tax credit under this Section was
3 taken, or beyond the total employed by the taxpayer
4 as of December 31, 1985, whichever is later; and
5 (C) the eligible employees must be employed
6 180 consecutive days in order to be deemed hired for
7 purposes of this subsection.
8 (3) An "eligible employee" means an employee who
9 is:
10 (A) Certified by the Department of Commerce
11 and Community Affairs as "eligible for services"
12 pursuant to regulations promulgated in accordance
13 with Title II of the Job Training Partnership Act,
14 Training Services for the Disadvantaged or Title III
15 of the Job Training Partnership Act, Employment and
16 Training Assistance for Dislocated Workers Program.
17 (B) Hired after the enterprise zone or
18 federally designated Foreign Trade Zone or Sub-Zone
19 was designated or the trade or business was located
20 in that zone, whichever is later.
21 (C) Employed in the enterprise zone or Foreign
22 Trade Zone or Sub-Zone. An employee is employed in
23 an enterprise zone or federally designated Foreign
24 Trade Zone or Sub-Zone if his services are rendered
25 there or it is the base of operations for the
26 services performed.
27 (D) A full-time employee working 30 or more
28 hours per week.
29 (4) For tax years ending on or after December 31,
30 1985 and prior to December 31, 1988, the credit shall be
31 allowed for the tax year in which the eligible employees
32 are hired. For tax years ending on or after December 31,
33 1988, the credit shall be allowed for the tax year
34 immediately following the tax year in which the eligible
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1 employees are hired. If the amount of the credit exceeds
2 the tax liability for that year, whether it exceeds the
3 original liability or the liability as later amended,
4 such excess may be carried forward and applied to the tax
5 liability of the 5 taxable years following the excess
6 credit year. The credit shall be applied to the earliest
7 year for which there is a liability. If there is credit
8 from more than one tax year that is available to offset a
9 liability, earlier credit shall be applied first.
10 (5) The Department of Revenue shall promulgate such
11 rules and regulations as may be deemed necessary to carry
12 out the purposes of this subsection (g).
13 (6) The credit shall be available for eligible
14 employees hired on or after January 1, 1986.
15 (h) Investment credit; High Impact Business.
16 (1) Subject to subsection (b) of Section 5.5 of the
17 Illinois Enterprise Zone Act, a taxpayer shall be allowed
18 a credit against the tax imposed by subsections (a) and
19 (b) of this Section for investment in qualified property
20 which is placed in service by a Department of Commerce
21 and Community Affairs designated High Impact Business.
22 The credit shall be .5% of the basis for such property.
23 The credit shall not be available until the minimum
24 investments in qualified property set forth in Section
25 5.5 of the Illinois Enterprise Zone Act have been
26 satisfied and shall not be allowed to the extent that it
27 would reduce a taxpayer's liability for the tax imposed
28 by subsections (a) and (b) of this Section to below zero.
29 The credit applicable to such minimum investments shall
30 be taken in the taxable year in which such minimum
31 investments have been completed. The credit for
32 additional investments beyond the minimum investment by a
33 designated high impact business shall be available only
34 in the taxable year in which the property is placed in
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1 service and shall not be allowed to the extent that it
2 would reduce a taxpayer's liability for the tax imposed
3 by subsections (a) and (b) of this Section to below zero.
4 For tax years ending on or after December 31, 1987, the
5 credit shall be allowed for the tax year in which the
6 property is placed in service, or, if the amount of the
7 credit exceeds the tax liability for that year, whether
8 it exceeds the original liability or the liability as
9 later amended, such excess may be carried forward and
10 applied to the tax liability of the 5 taxable years
11 following the excess credit year. The credit shall be
12 applied to the earliest year for which there is a
13 liability. If there is credit from more than one tax
14 year that is available to offset a liability, the credit
15 accruing first in time shall be applied first.
16 Changes made in this subdivision (h)(1) by Public
17 Act 88-670 restore changes made by Public Act 85-1182 and
18 reflect existing law.
19 (2) The term qualified property means property
20 which:
21 (A) is tangible, whether new or used,
22 including buildings and structural components of
23 buildings;
24 (B) is depreciable pursuant to Section 167 of
25 the Internal Revenue Code, except that "3-year
26 property" as defined in Section 168(c)(2)(A) of that
27 Code is not eligible for the credit provided by this
28 subsection (h);
29 (C) is acquired by purchase as defined in
30 Section 179(d) of the Internal Revenue Code; and
31 (D) is not eligible for the Enterprise Zone
32 Investment Credit provided by subsection (f) of this
33 Section.
34 (3) The basis of qualified property shall be the
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1 basis used to compute the depreciation deduction for
2 federal income tax purposes.
3 (4) If the basis of the property for federal income
4 tax depreciation purposes is increased after it has been
5 placed in service in a federally designated Foreign Trade
6 Zone or Sub-Zone located in Illinois by the taxpayer, the
7 amount of such increase shall be deemed property placed
8 in service on the date of such increase in basis.
9 (5) The term "placed in service" shall have the
10 same meaning as under Section 46 of the Internal Revenue
11 Code.
12 (6) If during any taxable year ending on or before
13 December 31, 1996, any property ceases to be qualified
14 property in the hands of the taxpayer within 48 months
15 after being placed in service, or the situs of any
16 qualified property is moved outside Illinois within 48
17 months after being placed in service, the tax imposed
18 under subsections (a) and (b) of this Section for such
19 taxable year shall be increased. Such increase shall be
20 determined by (i) recomputing the investment credit which
21 would have been allowed for the year in which credit for
22 such property was originally allowed by eliminating such
23 property from such computation, and (ii) subtracting such
24 recomputed credit from the amount of credit previously
25 allowed. For the purposes of this paragraph (6), a
26 reduction of the basis of qualified property resulting
27 from a redetermination of the purchase price shall be
28 deemed a disposition of qualified property to the extent
29 of such reduction.
30 (7) Beginning with tax years ending after December
31 31, 1996, if a taxpayer qualifies for the credit under
32 this subsection (h) and thereby is granted a tax
33 abatement and the taxpayer relocates its entire facility
34 in violation of the explicit terms and length of the
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1 contract under Section 18-183 of the Property Tax Code,
2 the tax imposed under subsections (a) and (b) of this
3 Section shall be increased for the taxable year in which
4 the taxpayer relocated its facility by an amount equal to
5 the amount of credit received by the taxpayer under this
6 subsection (h).
7 (i) A credit shall be allowed against the tax imposed by
8 subsections (a) and (b) of this Section for the tax imposed
9 by subsections (c) and (d) of this Section. This credit
10 shall be computed by multiplying the tax imposed by
11 subsections (c) and (d) of this Section by a fraction, the
12 numerator of which is base income allocable to Illinois and
13 the denominator of which is Illinois base income, and further
14 multiplying the product by the tax rate imposed by
15 subsections (a) and (b) of this Section.
16 Any credit earned on or after December 31, 1986 under
17 this subsection which is unused in the year the credit is
18 computed because it exceeds the tax liability imposed by
19 subsections (a) and (b) for that year (whether it exceeds the
20 original liability or the liability as later amended) may be
21 carried forward and applied to the tax liability imposed by
22 subsections (a) and (b) of the 5 taxable years following the
23 excess credit year. This credit shall be applied first to
24 the earliest year for which there is a liability. If there
25 is a credit under this subsection from more than one tax year
26 that is available to offset a liability the earliest credit
27 arising under this subsection shall be applied first.
28 If, during any taxable year ending on or after December
29 31, 1986, the tax imposed by subsections (c) and (d) of this
30 Section for which a taxpayer has claimed a credit under this
31 subsection (i) is reduced, the amount of credit for such tax
32 shall also be reduced. Such reduction shall be determined by
33 recomputing the credit to take into account the reduced tax
34 imposed by subsection (c) and (d). If any portion of the
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1 reduced amount of credit has been carried to a different
2 taxable year, an amended return shall be filed for such
3 taxable year to reduce the amount of credit claimed.
4 (j) Training expense credit. Beginning with tax years
5 ending on or after December 31, 1986, a taxpayer shall be
6 allowed a credit against the tax imposed by subsection (a)
7 and (b) under this Section for all amounts paid or accrued,
8 on behalf of all persons employed by the taxpayer in Illinois
9 or Illinois residents employed outside of Illinois by a
10 taxpayer, for educational or vocational training in
11 semi-technical or technical fields or semi-skilled or skilled
12 fields, which were deducted from gross income in the
13 computation of taxable income. The credit against the tax
14 imposed by subsections (a) and (b) shall be 1.6% of such
15 training expenses. For partners, shareholders of subchapter
16 S corporations, and owners of limited liability companies, if
17 the liability company is treated as a partnership for
18 purposes of federal and State income taxation, there shall be
19 allowed a credit under this subsection (j) to be determined
20 in accordance with the determination of income and
21 distributive share of income under Sections 702 and 704 and
22 subchapter S of the Internal Revenue Code.
23 Any credit allowed under this subsection which is unused
24 in the year the credit is earned may be carried forward to
25 each of the 5 taxable years following the year for which the
26 credit is first computed until it is used. This credit shall
27 be applied first to the earliest year for which there is a
28 liability. If there is a credit under this subsection from
29 more than one tax year that is available to offset a
30 liability the earliest credit arising under this subsection
31 shall be applied first.
32 (k) Research and development credit.
33 Beginning with tax years ending after July 1, 1990, a
34 taxpayer shall be allowed a credit against the tax imposed by
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1 subsections (a) and (b) of this Section for increasing
2 research activities in this State. The credit allowed
3 against the tax imposed by subsections (a) and (b) shall be
4 equal to 6 1/2% of the qualifying expenditures for increasing
5 research activities in this State. For partners, shareholders
6 of 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
9 taxation, there shall be allowed a credit under this
10 subsection to be determined in accordance with the
11 determination of income and distributive share of income
12 under Sections 702 and 704 and subchapter S of the Internal
13 Revenue Code.
14 For purposes of this subsection, "qualifying
15 expenditures" means the qualifying expenditures as defined
16 for the federal credit for increasing research activities
17 which would be allowable under Section 41 of the Internal
18 Revenue Code and which are conducted in this State,
19 "qualifying expenditures for increasing research activities
20 in this State" means the excess of qualifying expenditures
21 for the taxable year in which incurred over qualifying
22 expenditures for the base period, "qualifying expenditures
23 for the base period" means the average of the qualifying
24 expenditures for each year in the base period, and "base
25 period" means the 3 taxable years immediately preceding the
26 taxable year for which the determination is being made.
27 Any credit in excess of the tax liability for the taxable
28 year may be carried forward. A taxpayer may elect to have the
29 unused credit shown on its final completed return carried
30 over as a credit against the tax liability for the following
31 5 taxable years or until it has been fully used, whichever
32 occurs first.
33 If an unused credit is carried forward to a given year
34 from 2 or more earlier years, that credit arising in the
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1 earliest year will be applied first against the tax liability
2 for the given year. If a tax liability for the given year
3 still remains, the credit from the next earliest year will
4 then be applied, and so on, until all credits have been used
5 or no tax liability for the given year remains. Any
6 remaining unused credit or credits then will be carried
7 forward to the next following year in which a tax liability
8 is incurred, except that no credit can be carried forward to
9 a year which is more than 5 years after the year in which the
10 expense for which the credit is given was incurred.
11 Unless extended by law, the credit shall not include
12 costs incurred after December 31, 2004, except for costs
13 incurred pursuant to a binding contract entered into on or
14 before December 31, 2004.
15 No inference shall be drawn from this amendatory Act of
16 the 91st General Assembly in construing this Section for
17 taxable years beginning before January 1, 1999.
18 (l) Environmental Remediation Tax Credit.
19 (i) For tax years ending after December 31, 1997
20 and on or before December 31, 2010 2001, a taxpayer shall
21 be allowed a credit against the tax imposed by
22 subsections (a) and (b) of this Section for certain
23 amounts paid for unreimbursed eligible remediation costs,
24 as specified in this subsection. For purposes of this
25 Section, "unreimbursed eligible remediation costs" means
26 costs approved by the Illinois Environmental Protection
27 Agency ("Agency") under Section 58.14 of the
28 Environmental Protection Act that were paid in performing
29 environmental remediation at a site accepted into the
30 Site Remediation Program that meets the criteria set
31 forth in Section 58.14 of the Illinois Environmental
32 Protection Act. The credit applies only to costs
33 incurred during the 10-year period following the
34 acceptance of the site into the Site Remediation Program
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1 unless an extension of this period is granted by the
2 Agency for which a No Further Remediation Letter was
3 issued by the Agency and recorded under Section 58.10 of
4 the Environmental Protection Act. The credit must be
5 claimed for the taxable year in which Agency approval of
6 the eligible remediation costs is granted. The credit is
7 not available to any taxpayer if the taxpayer or any
8 related party caused or contributed to, in any material
9 respect, a release of regulated substances on, in, or
10 under the site that is being was identified and addressed
11 by the remedial action pursuant to the Site Remediation
12 Program of the Environmental Protection Act. After the
13 Pollution Control Board rules are adopted pursuant to the
14 Illinois Administrative Procedure Act for the
15 administration and enforcement of Section 58.9 of the
16 Environmental Protection Act, determinations as to credit
17 availability for purposes of this Section shall be made
18 consistent with those rules. For purposes of this
19 Section, "taxpayer" includes a person whose tax
20 attributes the taxpayer has succeeded to under Section
21 381 of the Internal Revenue Code and "related party"
22 includes the persons disallowed a deduction for losses by
23 paragraphs (b), (c), and (f)(1) of Section 267 of the
24 Internal Revenue Code by virtue of being a related
25 taxpayer, as well as any of its partners. The credit
26 allowed against the tax imposed by subsections (a) and
27 (b) shall be equal to 100% 25% of the unreimbursed
28 eligible remediation costs, as set forth in Section 58.14
29 of the Environmental Protection Act in excess of $100,000
30 per site, except that the $100,000 threshold shall not
31 apply to any site contained in an enterprise zone as
32 determined by the Department of Commerce and Community
33 Affairs. The total credit allowed shall not exceed
34 $40,000 per year with a maximum total of $150,000 per
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1 site. For partners and shareholders of subchapter S
2 corporations, there shall be allowed a credit under this
3 subsection to be determined in accordance with the
4 determination of income and distributive share of income
5 under Sections 702 and 704 and of subchapter S of the
6 Internal Revenue Code.
7 (ii) Until the Agency issues a No Further
8 Remediation Letter for the site, no more than 75% of the
9 allowed credit may be claimed by the eligible taxpayer.
10 The remaining 25% in allowed tax credits may be claimed
11 following the issuance by the Agency of a No Further
12 Remediation Letter for the site.
13 (iii) (ii) A credit allowed under this subsection
14 that is unused in the year the credit is earned may be
15 carried forward to each of the 15 5 taxable years
16 following the year for which the credit is first earned
17 until it is used. The term "unused credit" does not
18 include any amounts of unreimbursed eligible remediation
19 costs in excess of the maximum credit per site authorized
20 under paragraph (i). This credit shall be applied first
21 to the earliest year for which there is a liability. If
22 there is a credit under this subsection from more than
23 one tax year that is available to offset a liability, the
24 earliest credit arising under this subsection shall be
25 applied first. The recipient of credits may assign, sell,
26 or transfer, in whole or in part, the tax credit allowed
27 under this subsection to any other person. A credit
28 allowed under this subsection may be sold to a buyer as
29 part of a sale of all or part of the remediation site for
30 which the credit was granted. The purchaser of a
31 remediation site and the tax credit shall succeed to the
32 unused credit and remaining carry-forward period of the
33 seller. To perfect the transfer, the assignor shall
34 record the transfer in the chain of title for the site
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1 and provide written notice to the Director of the
2 Illinois Department of Revenue of (i) the assignor's
3 intent to transfer the tax credits to the assignee, (ii)
4 the date the transfer is effective, (iii) the assignee's
5 name and address, (iv) the assignee's tax period, and (v)
6 the amount of tax credits to be transferred. The number
7 of tax periods during which the assignee may subsequently
8 claim the tax credits shall not exceed 15 tax periods,
9 less the number of tax periods the assignor previously
10 claimed the credits before the transfer occurred sell the
11 remediation site and the amount of the tax credit to be
12 transferred as a portion of the sale. In no event may a
13 credit be transferred to any taxpayer if the taxpayer or
14 a related party would not be eligible under the
15 provisions of subsection (i).
16 (iv) (iii) For purposes of this Section, the term
17 "site" shall have the same meaning as under Section 58.2
18 of the Environmental Protection Act.
19 The changes made to this subsection (l) by this
20 amendatory Act of the 92nd General Assembly apply to taxable
21 years ending on or after December 31, 2001.
22 (m) Education expense credit.
23 Beginning with tax years ending after December 31, 1999,
24 a taxpayer who is the custodian of one or more qualifying
25 pupils shall be allowed a credit against the tax imposed by
26 subsections (a) and (b) of this Section for qualified
27 education expenses incurred on behalf of the qualifying
28 pupils. The credit shall be equal to 25% of qualified
29 education expenses, but in no event may the total credit
30 under this Section claimed by a family that is the custodian
31 of qualifying pupils exceed $500. In no event shall a credit
32 under this subsection reduce the taxpayer's liability under
33 this Act to less than zero. This subsection is exempt from
34 the provisions of Section 250 of this Act.
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1 For purposes of this subsection;
2 "Qualifying pupils" means individuals who (i) are
3 residents of the State of Illinois, (ii) are under the age of
4 21 at the close of the school year for which a credit is
5 sought, and (iii) during the school year for which a credit
6 is sought were full-time pupils enrolled in a kindergarten
7 through twelfth grade education program at any school, as
8 defined in this subsection.
9 "Qualified education expense" means the amount incurred
10 on behalf of a qualifying pupil in excess of $250 for
11 tuition, book fees, and lab fees at the school in which the
12 pupil is enrolled during the regular school year.
13 "School" means any public or nonpublic elementary or
14 secondary school in Illinois that is in compliance with Title
15 VI of the Civil Rights Act of 1964 and attendance at which
16 satisfies the requirements of Section 26-1 of the School
17 Code, except that nothing shall be construed to require a
18 child to attend any particular public or nonpublic school to
19 qualify for the credit under this Section.
20 "Custodian" means, with respect to qualifying pupils, an
21 Illinois resident who is a parent, the parents, a legal
22 guardian, or the legal guardians of the qualifying pupils.
23 (Source: P.A. 90-123, eff. 7-21-97; 90-458, eff. 8-17-97;
24 90-605, eff. 6-30-98; 90-655, eff. 7-30-98; 90-717, eff.
25 8-7-98; 90-792, eff. 1-1-99; 91-9, eff. 1-1-00; 91-357, eff.
26 7-29-99; 91-643, eff. 8-20-99; 91-644, eff. 8-20-99; 91-860,
27 eff. 6-22-00; 91-913, eff. 1-1-01; revised 10-24-00.)
28 Section 25. The Environmental Protection Act is amended
29 by changing Section 58.14 and adding Section 58.13a as
30 follows:
31 (415 ILCS 5/58.13a new)
32 Sec. 58.13a. Distressed Communities and Industries Grant
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1 Fund.
2 (a) The Director of Commerce and Community Affairs,
3 subject to other applicable provisions of this Title XVII,
4 may issue a grant to any entity for the purpose of paying the
5 allowable costs needed to cause an eligible project to occur,
6 including, but not limited to, demolition, remediation, site
7 preparation remediation, or site investigation costs, subject
8 to the following conditions:
9 (1) The project otherwise qualifies as an eligible
10 project in accordance with Section 58.14 and is
11 economically sound.
12 (2) Twenty-five percent of all grant funds will be
13 made available to counties with populations over
14 2,000,000 and the remaining grant funds will be disbursed
15 throughout the State.
16 (3) The proposed recipient of the grant given under
17 this Section is unable to finance the entire cost of the
18 project through ordinary financial channels.
19 (4) When completed, the eligible project is
20 projected to involve an investment of at least an amount
21 (to be expressly specified by the Department) in capital
22 improvements to be placed in service and will employ at
23 least an amount (to be expressly specified by the
24 Department) of new employees within the State, provided
25 that the Department has determined that the project will
26 provide a substantial economic benefit to the State.
27 This projection shall be made by the proposed recipient
28 and confirmed by the Department of Commerce and Community
29 Affairs.
30 (5) The amount to be issued in a grant shall not
31 exceed $1,000,000 or 100% of the allowable cost,
32 whichever is less. In no event, however, may the total
33 financial assistance provided under this Section, Section
34 58.14, and Section 201 of the Illinois Income Tax Act
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1 exceed the allowable cost.
2 (6) Priority for grants issued under this Section
3 shall be given to areas with high levels of poverty,
4 where the unemployment rate exceeds the State average,
5 where an enterprise zone exists, or where the area is
6 otherwise economically depressed as determined by the
7 Department of Commerce and Community Affairs.
8 (b) The determinations of the Department of Commerce and
9 Community Affairs under this Section shall be conclusive for
10 purposes of the validity of a grant agreement signed by the
11 Director of Commerce and Community Affairs.
12 (c) Grants issued under this Section shall be such as
13 the Department of Commerce and Community Affairs determines
14 to be appropriate and in furtherance of the purpose for which
15 the grants are made. The moneys used in making the grants
16 shall be disbursed from the Distressed Communities and
17 Industries Grant Fund upon written order of the Department of
18 Commerce and Community Affairs.
19 (d) The grants issued under this Section shall be used
20 for the purposes approved by the Department of Commerce and
21 Community Affairs. In no event, however, shall the grant
22 money be used to hire or pay additional employees of the
23 grant recipient.
24 (e) The Department of Commerce and Community Affairs may
25 fix service charges for the making of a grant to offset its
26 costs of administering the program and processing grant
27 applications. The charges shall be payable at such time and
28 place and in such amounts and manner as may be prescribed by
29 the Department.
30 (f) In the exercise of the sound discretion of the
31 Department of Commerce and Community Affairs, the grant
32 described in this Section may be terminated, suspended, or
33 revoked if the grant recipient fails to continue to meet the
34 conditions set forth in this Section. In making such a
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1 determination, the Department of Commerce and Community
2 Affairs shall consider the severity of the condition
3 violation, actions taken to correct the violation, the
4 frequency of any condition violations, and whether the
5 actions exhibit a pattern of conduct by the recipient. The
6 Department shall also consider changes in general economic
7 conditions affecting the project. The Department shall
8 notify the Director of the Agency of the suspension or
9 revocation of the grant. In the event the grant recipient
10 fails to repay the grant, the Department of Commerce and
11 Community Affairs shall refer the matter to the Attorney
12 General to institute collection proceedings as appropriate.
13 In any event, however, the Department of Commerce and
14 Community Affairs may immediately file a lien on the property
15 that is the subject of the grant in accordance with
16 applicable law.
17 (g) There is hereby created in the State treasury a
18 special fund to be known as the Distressed Communities and
19 Industries Grant Fund. The Fund is intended to provide
20 $10,000,000 annually in uncommitted funds for grants that are
21 to be made under this Section. The Fund shall consist of all
22 moneys that may be appropriated to it by the General
23 Assembly, any gifts, contributions, grants, or bequests
24 received from federal, private, or other sources, and moneys
25 from the repayment of any grants terminated, suspended, or
26 revoked under this Section. Subsections (b) and (c) of
27 Section 5 of the State Finance Act do not apply to the
28 Distressed Communities and Industries Grant Fund.
29 (A) At least annually, the State Treasurer shall
30 certify the amount deposited into the Fund to the
31 Department of Commerce and Community Affairs.
32 (B) Any portion of the Fund not immediately needed
33 for the purposes authorized shall be invested by the
34 State Treasurer as provided by the constitution and laws
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1 of this State. All income from the investments shall be
2 credited to the Fund.
3 (h) Within 6 months after the effective date of this
4 amendatory Act of the 92nd General Assembly, the Agency and
5 the Department of Commerce and Community Affairs shall
6 propose rules prescribing procedures and standards for the
7 administration of this Section.
8 (415 ILCS 5/58.14)
9 Sec. 58.14. Environmental Remediation Tax Credit review.
10 (a) Prior to applying for the Environmental Remediation
11 Tax Credit under Section 201 of the Illinois Income Tax Act,
12 Remediation Applicants shall first submit to the Agency an
13 application for review of remediation costs. The application
14 and review process shall be conducted in accordance with the
15 requirements of this Section and the rules adopted under
16 subsection (g). A preliminary review of the estimated
17 remediation costs for development and implementation of the
18 Remedial Action Plan may be obtained in accordance with
19 subsection (d).
20 (b) No application for review shall be submitted until a
21 No Further Remediation Letter has been issued by the Agency
22 and recorded in the chain of title for the site in accordance
23 with Section 58.10. The Agency shall review the application
24 to determine whether the costs submitted are remediation
25 costs, and whether the costs incurred are reasonable. The
26 application shall be on forms prescribed and provided by the
27 Agency. At a minimum, the application shall include the
28 following:
29 (1) information identifying the Remediation
30 Applicant and the site for which the tax credit is being
31 sought and the date of acceptance of the site into the
32 Site Remediation Program;
33 (2) a determination by the Department of Commerce
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1 and Community Affairs that remediation of the site for
2 which the credit is being sought will result in a net
3 economic benefit to the State of Illinois. "Net economic
4 benefit" shall be determined based on factors such as the
5 number of jobs created, the number of jobs retained if it
6 is demonstrated the jobs would otherwise be lost, capital
7 investment, capital improvements, the number of
8 construction-related jobs, increased sales, material
9 purchases, other increases in service and operational
10 expenditures, and other factors established by the
11 Department of Commerce and Community Affairs. Priority
12 shall be given to sites located in areas with high levels
13 of poverty, where the unemployment rate exceeds the State
14 average, where an enterprise zone exists, or where the
15 area is otherwise economically depressed as determined by
16 the Department of Commerce and Community Affairs a copy
17 of the No Further Remediation Letter with official
18 verification that the letter has been recorded in the
19 chain of title for the site and a demonstration that the
20 site for which the application is submitted is the same
21 site as the one for which the No Further Remediation
22 Letter is issued;
23 (3) a demonstration that the release of the
24 regulated substances of concern that is being remediated
25 under the Site Remediation Program was for which the No
26 Further Remediation Letter was issued were not caused or
27 contributed to in any material respect by the Remediation
28 Applicant. After the Pollution Control Board rules are
29 adopted pursuant to the Illinois Administrative Procedure
30 Act for the administration and enforcement of Section
31 58.9 of the Environmental Protection Act, determinations
32 as to credit availability shall be made consistent with
33 those rules;
34 (4) an itemization and documentation, including
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1 receipts, of the remediation costs incurred;
2 (5) a demonstration that the costs incurred are
3 remediation costs as defined in this Act and its rules;
4 (6) a demonstration that the costs submitted for
5 review were incurred by the Remediation Applicant who
6 received the No Further Remediation Letter;
7 (7) an application fee in the amount set forth in
8 subsection (e) for each site for which review of
9 remediation costs is requested and, if applicable,
10 certification from the Department of Commerce and
11 Community Affairs that the site is located in an
12 enterprise zone; and
13 (8) any other information deemed appropriate by the
14 Agency.
15 (c) Within 60 days after receipt by the Agency of an
16 application meeting the requirements of subsection (b), the
17 Agency shall issue a letter to the applicant approving,
18 disapproving, or modifying the remediation costs submitted in
19 the application. If the remediation costs are approved as
20 submitted, the Agency's letter shall state the amount of the
21 remediation costs to be applied toward the Environmental
22 Remediation Tax Credit. If an application is disapproved or
23 approved with modification of remediation costs, the Agency's
24 letter shall set forth the reasons for the disapproval or
25 modification and state the amount of the remediation costs,
26 if any, to be applied toward the Environmental Remediation
27 Tax Credit.
28 If a preliminary review of a budget plan has been
29 obtained under subsection (d), the Remediation Applicant may
30 submit, with the application and supporting documentation
31 under subsection (b), a copy of the Agency's final
32 determination accompanied by a certification that the actual
33 remediation costs incurred for the development and
34 implementation of the Remedial Action Plan are equal to or
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1 less than the costs approved in the Agency's final
2 determination on the budget plan. The certification shall be
3 signed by the Remediation Applicant and notarized. Based on
4 that submission, the Agency shall not be required to conduct
5 further review of the costs incurred for development and
6 implementation of the Remedial Action Plan and may approve
7 costs as submitted.
8 Within 35 days after receipt of an Agency letter
9 disapproving or modifying an application for approval of
10 remediation costs, the Remediation Applicant may appeal the
11 Agency's decision to the Board in the manner provided for the
12 review of permits in Section 40 of this Act.
13 (d) (1) A Remediation Applicant may obtain a preliminary
14 review of estimated remediation costs for the development
15 and implementation of the Remedial Action Plan by
16 submitting a budget plan along with the Remedial Action
17 Plan. The budget plan shall be set forth on forms
18 prescribed and provided by the Agency and shall include
19 but shall not be limited to line item estimates of the
20 costs associated with each line item (such as personnel,
21 equipment, and materials) that the Remediation Applicant
22 anticipates will be incurred for the development and
23 implementation of the Remedial Action Plan. The Agency
24 shall review the budget plan along with the Remedial
25 Action Plan to determine whether the estimated costs
26 submitted are remediation costs and whether the costs
27 estimated for the activities are reasonable.
28 (2) If the Remedial Action Plan is amended by the
29 Remediation Applicant or as a result of Agency action,
30 the corresponding budget plan shall be revised
31 accordingly and resubmitted for Agency review.
32 (3) The budget plan shall be accompanied by the
33 applicable fee as set forth in subsection (e).
34 (4) Submittal of a budget plan shall be deemed an
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1 automatic 60-day waiver of the Remedial Action Plan
2 review deadlines set forth in this Section and its rules.
3 (5) Within the applicable period of review, the
4 Agency shall issue a letter to the Remediation Applicant
5 approving, disapproving, or modifying the estimated
6 remediation costs submitted in the budget plan. If a
7 budget plan is disapproved or approved with modification
8 of estimated remediation costs, the Agency's letter shall
9 set forth the reasons for the disapproval or
10 modification.
11 (6) Within 35 days after receipt of an Agency
12 letter disapproving or modifying a budget plan, the
13 Remediation Applicant may appeal the Agency's decision to
14 the Board in the manner provided for the review of
15 permits in Section 40 of this Act.
16 (e) The fees for reviews conducted under this Section
17 are in addition to any other fees or payments for Agency
18 services rendered pursuant to the Site Remediation Program
19 and shall be as follows:
20 (1) The fee for an application for review of
21 remediation costs shall be $1,000 for each site reviewed.
22 (2) The fee for the review of the budget plan
23 submitted under subsection (d) shall be $500 for each
24 site reviewed.
25 (3) In the case of a Remediation Applicant
26 submitting for review total remediation costs of $100,000
27 or less for a site located within an enterprise zone (as
28 set forth in paragraph (i) of subsection (l) of Section
29 201 of the Illinois Income Tax Act), the fee for an
30 application for review of remediation costs shall be $250
31 for each site reviewed. For those sites, there shall be
32 no fee for review of a budget plan under subsection (d).
33 The application fee shall be made payable to the State of
34 Illinois, for deposit into the Hazardous Waste Fund.
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1 Pursuant to appropriation, the Agency shall use the fees
2 collected under this subsection for development and
3 administration of the review program.
4 (f) The Agency shall have the authority to enter into
5 any contracts or agreements that may be necessary to carry
6 out its duties and responsibilities under this Section.
7 (f-5) The Agency may immediately file a lien on the
8 property that is the subject of the tax credit in accordance
9 with applicable law if the recipient of the tax credit fails
10 to continue to meet the conditions set forth in this Section.
11 In making such a determination, the Agency shall consider the
12 severity of the condition violation, actions taken to correct
13 the violation, the frequency of any condition violations, and
14 whether the actions exhibit a pattern of conduct by the
15 recipient. The Director of the Agency shall provide notice
16 to the recipient of alleged noncompliance and allow the
17 recipient a hearing under the provisions of the Illinois
18 Administrative Procedure Act. If, after such notice and any
19 hearing, the Agency determines that a noncompliance exists,
20 the Director of the Agency shall notify the Director of
21 Commerce and Community Affairs and the Director of Revenue of
22 the suspension or revocation of the tax credit.
23 (f-10) For eligible projects, the Director of Commerce
24 and Community Affairs, with notice to the Directors of the
25 Agency and Revenue, and subject to the other provisions of
26 Section 201 of the Illinois Income Tax Act and this Section,
27 may not create a new enterprise zone but may decide that a
28 prospective operator of a facility being remedied and
29 renovated under this Section may receive the tax credits and
30 exemptions under the Economic Development for a Growing
31 Economy Tax Credit Act and the Illinois Enterprise Zone Act.
32 The tax credits allowed under this subsection (f-10) shall be
33 used to offset the tax imposed by subsections (a) and (b) of
34 Section 201 of the Illinois Income Tax Act. For purposes of
-35- LRB9202161SMdvA
1 this subsection (f-10):
2 (1) For receipt of the tax credit for new or
3 expanded business facilities under the Economic
4 Development for a Growing Economy Tax Credit Act and the
5 Illinois Enterprise Zone Act, the eligible project must
6 create at least 10 new jobs or retain businesses that
7 supply at least 25 existing jobs, or a combination
8 thereof. For purposes of this Section, the financial
9 incentives described in the Economic Development for a
10 Growing Economy Tax Credit Act are modified only as
11 follows: the tax credit shall be $400 per employee per
12 year, an additional $400 per year for each employee
13 exceeding the minimum employment thresholds of 10 and 25
14 jobs for new and existing businesses, respectively, and
15 an additional $400 per year for each person who is
16 unemployed for at least 3 months immediately prior to
17 being employed at the new business facility.
18 (g) Within 6 months after the effective date of this
19 amendatory Act of 1997, the Agency shall propose rules
20 prescribing procedures and standards for its administration
21 of this Section. Within 6 months after receipt of the
22 Agency's proposed rules, the Board shall adopt on second
23 notice, pursuant to Sections 27 and 28 of this Act and the
24 Illinois Administrative Procedure Act, rules that are
25 consistent with this Section. Prior to the effective date of
26 rules adopted under this Section, the Agency may conduct
27 reviews of applications under this Section and the Agency is
28 further authorized to distribute guidance documents on costs
29 that are eligible or ineligible as remediation costs.
30 (h) Within 6 months after the effective date of this
31 amendatory Act of the 92nd General Assembly, the Agency and
32 the Department of Commerce and Community Affairs shall
33 propose rules prescribing procedures and standards for the
34 administration of this Section as changed by this amendatory
-36- LRB9202161SMdvA
1 Act of the 92nd General Assembly.
2 (i) The changes relating to taxes made to this Section
3 by this amendatory Act of the 92nd General Assembly apply to
4 taxable years ending on or after December 31, 2001.
5 (Source: P.A. 90-123, eff. 7-21-97; 90-792, eff. 1-1-99.)
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.