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92_HB1599enr HB1599 Enrolled LRB9207178TAcs 1 AN ACT regarding Illinois resource development and energy 2 security. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. Short title. This Act may be cited as the 6 Illinois Resource Development and Energy Security Act. 7 Section 5. Findings. The General Assembly finds that: 8 (a) Growth of the State's population and economic base 9 has created a need for new electric generation capacity in 10 Illinois. 11 (b) Illinois has considerable natural resources that are 12 currently underutilized and could support development of new 13 electric power at an affordable price. 14 (c) The development of new electric generating capacity 15 is needed if the State is to continue to be successful in 16 attracting new businesses and jobs. 17 (d) Certain regions of the State, such as Southern 18 Illinois, could benefit greatly from new employment 19 opportunities created by development of electric generating 20 plants utilizing the plentiful supply of Illinois coal. 21 (e) Technology can be deployed that allows high-sulfur 22 Illinois coal to be burned efficiently while meeting strict 23 State and federal air quality limitations. Specifically, the 24 State of Illinois will encourage the use of advanced clean 25 coal technology, such as coal gasification. 26 (f) Renewable forms of energy should be promoted as an 27 important element of the energy and environmental policies of 28 the State and it is a goal of the State that at least 5% of 29 the State's energy production and use be derived from 30 renewable forms of energy by 2010 and at least 15% from 31 renewable forms of energy by 2020. HB1599 Enrolled -2- LRB9207178TAcs 1 Section 10. Definitions. As used in this Act: 2 "Department" means the Illinois Department of Commerce 3 and Community Affairs. 4 Section 15. Purpose. The State of Illinois and its 5 people will benefit for many years to come if new electric 6 generating facilities are built that increase the in-State 7 capacity to provide for current and anticipated electricity 8 demand at a competitive price. The purpose of this Act is to 9 enhance the State's energy security by ensuring that: (i) the 10 State's vast and underutilized coal resources are tapped as a 11 fuel source for new electric plants; (ii) the electric 12 transmission system within the State is upgraded to more 13 efficiently distribute additional amounts of electricity; 14 (iii) well-paying jobs are created as new electric plants are 15 built in regions of the State with relatively high 16 unemployment; and (iv) pilot projects are undertaken to 17 explore the capacity of new, often renewable sources of 18 energy to contribute to the State's energy security. 19 Section 20. Rules. The Department is authorized to 20 adopt rules necessary to administer the requirements of this 21 Act. The Department may implement this Act through the use 22 of emergency rules in accordance with the provisions of 23 Section 5-45 of the Illinois Administrative Procedure Act. 24 For purposes of the Illinois Administrative Procedure Act, 25 the adoption of rules to implement this Act shall be deemed 26 an emergency and necessary for the public interest, safety, 27 and welfare. 28 Section 905. The Department of Commerce and Community 29 Affairs Law of the Civil Administrative Code of Illinois is 30 amended by adding Section 605-332 as follows: HB1599 Enrolled -3- LRB9207178TAcs 1 (20 ILCS 605/605-332 new) 2 Sec. 605-332. Financial assistance to energy generation 3 facilities. 4 (a) As used in this Section: 5 "New electric generating facility" means a 6 newly-constructed electric generation plant or a newly 7 constructed generation capacity expansion at an existing 8 facility, including the transmission lines and associated 9 equipment that transfers electricity from points of supply to 10 points of delivery, and for which foundation construction 11 commenced not sooner than July 1, 2001, which is designed to 12 provide baseload electric generation operating on a 13 continuous basis throughout the year; and which has an 14 aggregate rated generating capacity of at least 400 megawatts 15 for all new units at one site, uses coal or gases derived 16 from coal as its primary fuel source, and supports the 17 creation of at least 150 new Illinois coal mining jobs. 18 "Eligible business" means an entity that proposes to 19 construct a new electric generating facility and that has 20 applied to the Department to receive financial assistance 21 pursuant to this Section. With respect to use and occupation 22 taxes, wherever there is a reference to taxes, that reference 23 means only those taxes paid on Illinois-mined coal used in a 24 new electric generating facility. 25 "Department" means the Illinois Department of Commerce 26 and Community Affairs. 27 (b) The Department is authorized to provide financial 28 assistance to eligible businesses for new electric generating 29 facilities from funds appropriated by the General Assembly as 30 further provided in this Section. 31 An eligible business seeking qualification for financial 32 assistance for a new electric generating facility, for 33 purposes of this Section only, shall apply to the Department 34 in the manner specified by the Department. An application HB1599 Enrolled -4- LRB9207178TAcs 1 shall include, but not be limited to: 2 (1) the completion date of the new electric 3 generating facility for which financial assistance is 4 sought; 5 (2) copies of documentation deemed acceptable by 6 the Department establishing the total State occupation 7 and use taxes paid on Illinois-mined coal used at the new 8 electric generating facility for a minimum of 4 preceding 9 calendar quarters; and 10 (3) the amount of capital investment by the 11 eligible business in the new electric generating 12 facility. 13 The Department shall determine the maximum amount of 14 financial assistance for eligible businesses in accordance 15 with this paragraph. The Department shall not provide 16 financial assistance from general obligation bond funds to 17 any eligible business unless it receives a written 18 certification from the Director of the Bureau of the Budget 19 that 80% of the State occupation and use tax receipts for a 20 minimum of the preceding 4 calendar quarters for all eligible 21 businesses equal or exceed 110% of the maximum annual debt 22 service required with respect to general obligation bonds 23 issued for that purpose. The Department may provide 24 financial assistance not to exceed the amount of State 25 general obligation debt calculated as above, the amount of 26 capital investment in the energy generation facility, or 27 $100,000,000, whichever is less. Financial assistance 28 received pursuant to this Section may be used for capital 29 facilities consisting of buildings, structures, durable 30 equipment, and land at the new electric generating facility. 31 An eligible business shall file a monthly report with the 32 Illinois Department of Revenue stating the amount of 33 Illinois-mined coal purchased during the previous month for 34 use in the new electric generating facility, the purchase HB1599 Enrolled -5- LRB9207178TAcs 1 price of that coal, the amount of State occupation and use 2 taxes paid on that purchase to the seller of the 3 Illinois-mined coal, and such other information as that 4 Department may reasonably require. In sales of 5 Illinois-mined coal between related parties, the purchase 6 price of the coal must have been determined in an arms-length 7 transaction. The report shall be filed with the Illinois 8 Department of Revenue on or before the 20th day of each month 9 on a form provided by that Department. However, no report 10 need be filed by an eligible business in a month when it made 11 no reportable purchases of coal in the previous month. The 12 Illinois Department of Revenue shall provide a summary of 13 such reports to the Bureau of the Budget. 14 Upon granting financial assistance to an eligible 15 business, the Department shall certify the name of the 16 eligible business to the Illinois Department of Revenue. 17 Beginning with the receipt of the first report of State 18 occupation and use taxes paid by an eligible business and 19 continuing for a 25-year period, the Illinois Department of 20 Revenue shall each month pay into the Energy Infrastructure 21 Fund 80% of the net revenue realized from the 6.25% general 22 rate on the selling price of Illinois-mined coal that was 23 sold to an eligible business. 24 Section 910. The Illinois Enterprise Zone Act is amended 25 by changing Section 5.5 as follows: 26 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1) 27 Sec. 5.5. High Impact Business. 28 (a) In order to respond to unique opportunities to 29 assist in the encouragement, development, growth and 30 expansion of the private sector through large scale 31 investment and development projects, the Department is 32 authorized to receive and approve applications for the HB1599 Enrolled -6- LRB9207178TAcs 1 designation of "High Impact Businesses" in Illinois subject 2 to the following conditions: 3 (1) such applications may be submitted at any time 4 during the year; 5 (2) such business is not located, at the time of 6 designation, in an enterprise zone designated pursuant to 7 this Act; 8 (3) (A) the business intends to make a minimum 9 investment of $12,000,000 which will be placed in 10 service in qualified property and intends to create 11 500 full-time equivalent jobs at a designated 12 location in Illinois or intends to make a minimum 13 investment of $30,000,000 which will be placed in 14 service in qualified property and intends to retain 15 1,500 full-time jobs at a designated location in 16 Illinois. The business must certify in writing that 17 the investments would not be placed in service in 18 qualified property and the job creation or job 19 retention would not occur without the tax credits 20 and exemptions set forth in subsection (b) of this 21 Section. The terms "placed in service" and 22 "qualified property" have the same meanings as 23 described in subsection (h) of Section 201 of the 24 Illinois Income Tax Act; or 25 (B) the business intends to establish a new 26 electric generating facility at a designated 27 location in Illinois. "New electric generating 28 facility" for purposes of this Section means a 29 newly-constructed electric generation plant or a 30 newly-constructed generation capacity expansion at 31 an existing electric generation plant, including the 32 transmission lines and associated equipment that 33 transfers electricity from points of supply to 34 points of delivery, and for which such new HB1599 Enrolled -7- LRB9207178TAcs 1 foundation construction commenced not sooner than 2 July 1, 2001. Such facility shall be designed to 3 provide baseload electric generation and shall 4 operate on a continuous basis throughout the year; 5 and shall have an aggregate rated generating 6 capacity of at least 1,000 megawatts for all new 7 units at one site if it uses natural gas as its 8 primary fuel and foundation construction of the 9 facility is commenced on or before December 31, 10 2004, or shall have an aggregate rated generating 11 capacity of at least 400 megawatts for all new units 12 at one site if it uses coal or gases derived from 13 coal as its primary fuel and shall support the 14 creation of at least 150 new Illinois coal mining 15 jobs. The business must certify in writing that the 16 investments necessary to establish a new electric 17 generating facility would not be placed in service 18 and the job creation in the case of a coal-fueled 19 plant would not occur without the tax credits and 20 exemptions set forth in subsection (b-5) of this 21 Section. The term "placed in service" has the same 22 meaning as described in subsection (h) of Section 23 201 of the Illinois Income Tax Act; or 24 (C) the business intends to establish 25 production operations at a new coal mine, 26 re-establish production operations at a closed coal 27 mine, or expand production at an existing coal mine 28 at a designated location in Illinois not sooner than 29 July 1, 2001; provided that the production 30 operations result in the creation of 150 new 31 Illinois coal mining jobs as described in 32 subdivision (a)(3)(B) of this Section, and further 33 provided that the coal extracted from such mine is 34 utilized as the predominant source for a new HB1599 Enrolled -8- LRB9207178TAcs 1 electric generating facility. The business must 2 certify in writing that the investments necessary to 3 establish a new, expanded, or reopened coal mine 4 would not be placed in service and the job creation 5 would not occur without the tax credits and 6 exemptions set forth in subsection (b-5) of this 7 Section. The term "placed in service" has the same 8 meaning as described in subsection (h) of Section 9 201 of the Illinois Income Tax Act; or 10 (D) the business intends to construct new 11 transmission facilities or upgrade existing 12 transmission facilities at designated locations in 13 Illinois, for which construction commenced not 14 sooner than July 1, 2001. For the purposes of this 15 Section, "transmission facilities" means 16 transmission lines with a voltage rating of 115 17 kilovolts or above, including associated equipment, 18 that transfer electricity from points of supply to 19 points of delivery and that transmit a majority of 20 the electricity generated by a new electric 21 generating facility designated as a High Impact 22 Business in accordance with this Section. The 23 business must certify in writing that the 24 investments necessary to construct new transmission 25 facilities or upgrade existing transmission 26 facilities would not be placed in service without 27 the tax credits and exemptions set forth in 28 subsection (b-5) of this Section. The term "placed 29 in service" has the same meaning as described in 30 subsection (h) of Section 201 of the Illinois Income 31 Tax Act; and 32 (4) no later than 90 days after an application is 33 submitted, the Department shall notify the applicant of 34 the Department's determination of the qualification of HB1599 Enrolled -9- LRB9207178TAcs 1 the proposed High Impact Business under this Section. 2 (b) Businesses designated as High Impact Businesses 3 pursuant to subdivision (a)(3)(A) of this Section shall 4 qualify for the credits and exemptions described in the 5 following Acts: Section 9-222 and Section 9-222.1A of The 6 Public Utilities Act, subsection (h) of Section 201 of the 7 Illinois Income Tax Act; and, Section 1d of the Retailers' 8 Occupation Tax Act, provided that these credits and 9 exemptions described in these Acts shall not be authorized 10 until the minimum investments set forth in subdivision 11 (a)(3)(A)subsection (a)of this Section have been placed in 12 service in qualified properties and, in the case of the 13 exemptions described in the Public Utilities Act and Section 14 1d of the Retailers' Occupation Tax Act, the minimum 15 full-time equivalent jobs or full-time jobs set forth in 16 subdivision (a)(3)(A)subsection (a)of this Section have 17 been created or retained. Businesses designated as High 18 Impact Businesses under this Section shall also qualify for 19 the exemption described in Section 5l of the Retailers' 20 Occupation Tax Act. The credit provided in subsection (h) of 21 Section 201 of the Illinois Income Tax Act shall be 22 applicable to investments in qualified property as set forth 23 in subdivision (a)(3)(A)subsection (a)of this Section. 24 (b-5) Businesses designated as High Impact Businesses 25 pursuant to subdivisions (a)(3)(B), (a)(3)(C), and (a)(3)(D) 26 of this Section shall qualify for the credits and exemptions 27 described in the following Acts: Section 51 of the 28 Retailers' Occupation Tax Act, Section 9-222 and Section 29 9-222.1A of the Public Utilities Act, and subsection (h) of 30 Section 201 of the Illinois Income Tax Act; however, the 31 credits and exemptions authorized under Section 9-222 and 32 Section 9-222.1A of the Public Utilities Act, and subsection 33 (h) of Section 201 of the Illinois Income Tax Act shall not 34 be authorized until the new electric generating facility, the HB1599 Enrolled -10- LRB9207178TAcs 1 new transmission facility, or the new, expanded, or reopened 2 coal mine is operational, except that a new electric 3 generating facility whose primary fuel source is natural gas 4 is eligible only for the exemption under Section 5l of the 5 Retailers' Occupation Tax Act. 6 (c) High Impact Businesses located in federally 7 designated foreign trade zones or sub-zones are also eligible 8 for additional credits, exemptions and deductions as 9 described in the following Acts: Section 9-221 and Section 10 9-222.1 of the Public Utilities Act; and subsection (g) of 11 Section 201, and Section 203 of the Illinois Income Tax Act. 12 (d) Existing Illinois businesses which apply for 13 designation as a High Impact Business must provide the 14 Department with the prospective plan for which 1,500 15 full-time jobs would be eliminated in the event that the 16 business is not designated. 17 (e) New proposed facilities which apply for designation 18 as High Impact Business must provide the Department with 19 proof of alternative non-Illinois sites which would receive 20 the proposed investment and job creation in the event that 21 the business is not designated as a High Impact Business. 22 (f) In the event that a business is designated a High 23 Impact Business and it is later determined after reasonable 24 notice and an opportunity for a hearing as provided under The 25 Illinois Administrative Procedure Act, that the business 26 would have placed in service in qualified property the 27 investments and created or retained the requisite number of 28 jobs without the benefits of the High Impact Business 29 designation, the Department shall be required to immediately 30 revoke the designation and notify the Director of the 31 Department of Revenue who shall begin proceedings to recover 32 all wrongfully exempted State taxes with interest. The 33 business shall also be ineligible for all State funded 34 Department programs for a period of 10 years. HB1599 Enrolled -11- LRB9207178TAcs 1 (g) The Department shall revoke a High Impact Business 2 designation if the participating business fails to comply 3 with the terms and conditions of the designation. 4 (h) Prior to designating a business, the Department 5 shall provide the members of the General Assembly and 6 Illinois Economic and Fiscal Commission with a report setting 7 forth the terms and conditions of the designation and 8 guarantees that have been received by the Department in 9 relation to the proposed business being designated. 10 (Source: P.A. 91-914, eff. 7-7-00.) 11 Section 912. The Renewable Energy, Energy Efficiency, 12 and Coal Resources Development Law of 1997 is amended by 13 changing Section 6-3 as follows: 14 (20 ILCS 687/6-3) 15 (Section scheduled to be repealed on December 16, 2007) 16 Sec. 6-3. Renewable energy resources program. 17 (a) The Department of Commerce and Community Affairs, to 18 be called the "Department" hereinafter in this Law, shall 19 administer the Renewable Energy Resources Program to provide 20 grants, loans, and other incentives to foster investment in 21 and the development and use of renewable energy resources. 22 (b) The Department shall establish eligibility criteria 23 for grants, loans, and other incentives to foster investment 24 in and the development and use of renewable energy resources. 25 These criteria shall be reviewed annually and adjusted as 26 necessary. The criteria should promote the goal of fostering 27 investment in and the development and use, in Illinois, of 28 renewable energy resources. 29 (c) The Department shall accept applications for grants, 30 loans, and other incentives to foster investment in and the 31 development and use of renewable energy resources. 32 (d) To the extent that funds are available and HB1599 Enrolled -12- LRB9207178TAcs 1 appropriated, the Department shall provide grants, loans, and 2 other incentives to applicants that meet the criteria 3 specified by the Department. 4 (e) The Department shall conduct an annual study on the 5 use and availability of renewable energy resources in 6 Illinois. Each year, the Department shall submit a report on 7 the study to the General Assembly. This report shall include 8 suggestions for legislation which will encourage the 9 development and use of renewable energy resources. 10 (f) As used in this Law, "renewable energy resources" 11 includes energy from wind, solar thermal energy, photovoltaic 12 cells and panels, dedicated crops grown for energy production 13 and organic waste biomass, hydropower that does not involve 14 new construction or significant expansion of hydropower dams, 15 and other such alternative sources of environmentally 16 preferable energy. "Renewable energy resources" does not 17 include, however, energy from the incineration, burning or 18 heating of waste wood, tires, garbage, general household, 19 institutional and commercial waste, industrial lunchroom or 20 office waste, landscape waste, or construction or demolition 21 debris. 22 (g) There is created the Energy Efficiency Investment 23 Fund as a special fund in the State Treasury, to be 24 administered by the Department to support the development of 25 technologies for wind, biomass, and solar power in Illinois. 26 The Department may accept private and public funds, including 27 federal funds, for deposit into the Fund. 28 (Source: P.A. 90-561, eff. 12-16-97.) 29 Section 915. The State Finance Act is amended by adding 30 Sections 5.545, 5.546, and 6z-51 as follows: 31 (30 ILCS 105/5.545 new) 32 Sec. 5.545. The Energy Infrastructure Fund. HB1599 Enrolled -13- LRB9207178TAcs 1 (30 ILCS 105/5.546 new) 2 Sec. 5.546. The Energy Efficiency Investment Fund. 3 (30 ILCS 105/6z-51 new) 4 Sec. 6z-51. The Energy Infrastructure Fund. 5 (a) The Energy Infrastructure Fund is created as a 6 special fund in the State treasury. 7 (b) Money in the Energy Infrastructure Fund shall, if 8 and when the State of Illinois issues any bonded indebtedness 9 for financial assistance to new electric generating 10 facilities, as provided in Section 605-332 of the Department 11 of Commerce and Community Affairs Law of the Civil 12 Administrative Code of Illinois, be set aside and used for 13 the purpose of paying and discharging annually the principal 14 and interest on that bonded indebtedness then due and 15 payable, and for no other purpose. 16 In addition to other transfers to the General Obligation 17 Bond Retirement and Interest Fund made pursuant to Section 15 18 of the General Obligation Bond Act, upon each delivery of 19 bonds issued for financial assistance to new electric 20 generating facilities under Section 605-332 of the Department 21 of Commerce and Community Affairs Law of the Civil 22 Administrative Code of Illinois, the State Comptroller shall 23 compute and certify to the State Treasurer the total amount 24 of principal and interest, and premium, if any, on such bonds 25 during the then current and each succeeding fiscal year. On 26 or before the last day of each month, the State Treasurer and 27 the State Comptroller shall transfer from the Energy 28 Infrastructure Fund to the General Obligation Bond Retirement 29 and Interest Fund an amount sufficient to pay the aggregate 30 of the principal of, interest on, and premium, if any, on the 31 bonds payable on their next payment date, divided by the 32 number of monthly transfers occurring between the last 33 previous payment date (or the delivery date if no payment HB1599 Enrolled -14- LRB9207178TAcs 1 date has yet occurred) and the next succeeding payment date. 2 (c) To the extent that moneys in the Energy 3 Infrastructure Fund, in the opinion of the Governor and the 4 Director of the Bureau of the Budget, are in excess of 125% 5 of the maximum debt service in any fiscal year, such surplus 6 shall, subject to appropriation, be used by the Department of 7 Commerce and Community Affairs for financial assistance under 8 other coal development programs administered by the 9 Department, in accordance with the rules of the Department or 10 for other State purposes subject to appropriation. 11 Section 918. The Illinois Income Tax Act is amended by 12 changing Section 201 as follows: 13 (35 ILCS 5/201) (from Ch. 120, par. 2-201) 14 Sec. 201. Tax Imposed. 15 (a) In general. A tax measured by net income is hereby 16 imposed on every individual, corporation, trust and estate 17 for each taxable year ending after July 31, 1969 on the 18 privilege of earning or receiving income in or as a resident 19 of this State. Such tax shall be in addition to all other 20 occupation or privilege taxes imposed by this State or by any 21 municipal corporation or political subdivision thereof. 22 (b) Rates. The tax imposed by subsection (a) of this 23 Section shall be determined as follows, except as adjusted by 24 subsection (d-1): 25 (1) In the case of an individual, trust or estate, 26 for taxable years ending prior to July 1, 1989, an amount 27 equal to 2 1/2% of the taxpayer's net income for the 28 taxable year. 29 (2) In the case of an individual, trust or estate, 30 for taxable years beginning prior to July 1, 1989 and 31 ending after June 30, 1989, an amount equal to the sum of 32 (i) 2 1/2% of the taxpayer's net income for the period HB1599 Enrolled -15- LRB9207178TAcs 1 prior to July 1, 1989, as calculated under Section 202.3, 2 and (ii) 3% of the taxpayer's net income for the period 3 after June 30, 1989, as calculated under Section 202.3. 4 (3) In the case of an individual, trust or estate, 5 for taxable years beginning after June 30, 1989, an 6 amount equal to 3% of the taxpayer's net income for the 7 taxable year. 8 (4) (Blank). 9 (5) (Blank). 10 (6) In the case of a corporation, for taxable years 11 ending prior to July 1, 1989, an amount equal to 4% of 12 the taxpayer's net income for the taxable year. 13 (7) In the case of a corporation, for taxable years 14 beginning prior to July 1, 1989 and ending after June 30, 15 1989, an amount equal to the sum of (i) 4% of the 16 taxpayer's net income for the period prior to July 1, 17 1989, as calculated under Section 202.3, and (ii) 4.8% of 18 the taxpayer's net income for the period after June 30, 19 1989, as calculated under Section 202.3. 20 (8) In the case of a corporation, for taxable years 21 beginning after June 30, 1989, an amount equal to 4.8% of 22 the taxpayer's net income for the taxable year. 23 (c) Beginning on July 1, 1979 and thereafter, in 24 addition to such income tax, there is also hereby imposed the 25 Personal Property Tax Replacement Income Tax measured by net 26 income on every corporation (including Subchapter S 27 corporations), partnership and trust, for each taxable year 28 ending after June 30, 1979. Such taxes are imposed on the 29 privilege of earning or receiving income in or as a resident 30 of this State. The Personal Property Tax Replacement Income 31 Tax shall be in addition to the income tax imposed by 32 subsections (a) and (b) of this Section and in addition to 33 all other occupation or privilege taxes imposed by this State 34 or by any municipal corporation or political subdivision HB1599 Enrolled -16- LRB9207178TAcs 1 thereof. 2 (d) Additional Personal Property Tax Replacement Income 3 Tax Rates. The personal property tax replacement income tax 4 imposed by this subsection and subsection (c) of this Section 5 in the case of a corporation, other than a Subchapter S 6 corporation and except as adjusted by subsection (d-1), shall 7 be an additional amount equal to 2.85% of such taxpayer's net 8 income for the taxable year, except that beginning on January 9 1, 1981, and thereafter, the rate of 2.85% specified in this 10 subsection shall be reduced to 2.5%, and in the case of a 11 partnership, trust or a Subchapter S corporation shall be an 12 additional amount equal to 1.5% of such taxpayer's net income 13 for the taxable year. 14 (d-1) Rate reduction for certain foreign insurers. In 15 the case of a foreign insurer, as defined by Section 35A-5 of 16 the Illinois Insurance Code, whose state or country of 17 domicile imposes on insurers domiciled in Illinois a 18 retaliatory tax (excluding any insurer whose premiums from 19 reinsurance assumed are 50% or more of its total insurance 20 premiums as determined under paragraph (2) of subsection (b) 21 of Section 304, except that for purposes of this 22 determination premiums from reinsurance do not include 23 premiums from inter-affiliate reinsurance arrangements), 24 beginning with taxable years ending on or after December 31, 25 1999, the sum of the rates of tax imposed by subsections (b) 26 and (d) shall be reduced (but not increased) to the rate at 27 which the total amount of tax imposed under this Act, net of 28 all credits allowed under this Act, shall equal (i) the total 29 amount of tax that would be imposed on the foreign insurer's 30 net income allocable to Illinois for the taxable year by such 31 foreign insurer's state or country of domicile if that net 32 income were subject to all income taxes and taxes measured by 33 net income imposed by such foreign insurer's state or country 34 of domicile, net of all credits allowed or (ii) a rate of HB1599 Enrolled -17- LRB9207178TAcs 1 zero if no such tax is imposed on such income by the foreign 2 insurer's state of domicile. For the purposes of this 3 subsection (d-1), an inter-affiliate includes a mutual 4 insurer under common management. 5 (1) For the purposes of subsection (d-1), in no 6 event shall the sum of the rates of tax imposed by 7 subsections (b) and (d) be reduced below the rate at 8 which the sum of: 9 (A) the total amount of tax imposed on such 10 foreign insurer under this Act for a taxable year, 11 net of all credits allowed under this Act, plus 12 (B) the privilege tax imposed by Section 409 13 of the Illinois Insurance Code, the fire insurance 14 company tax imposed by Section 12 of the Fire 15 Investigation Act, and the fire department taxes 16 imposed under Section 11-10-1 of the Illinois 17 Municipal Code, 18 equals 1.25% of the net taxable premiums written for the 19 taxable year, as described by subsection (1) of Section 20 409 of the Illinois Insurance Code. This paragraph will 21 in no event increase the rates imposed under subsections 22 (b) and (d). 23 (2) Any reduction in the rates of tax imposed by 24 this subsection shall be applied first against the rates 25 imposed by subsection (b) and only after the tax imposed 26 by subsection (a) net of all credits allowed under this 27 Section other than the credit allowed under subsection 28 (i) has been reduced to zero, against the rates imposed 29 by subsection (d). 30 This subsection (d-1) is exempt from the provisions of 31 Section 250. 32 (e) Investment credit. A taxpayer shall be allowed a 33 credit against the Personal Property Tax Replacement Income 34 Tax for investment in qualified property. HB1599 Enrolled -18- LRB9207178TAcs 1 (1) A taxpayer shall be allowed a credit equal to 2 .5% of the basis of qualified property placed in service 3 during the taxable year, provided such property is placed 4 in service on or after July 1, 1984. There shall be 5 allowed an additional credit equal to .5% of the basis of 6 qualified property placed in service during the taxable 7 year, provided such property is placed in service on or 8 after July 1, 1986, and the taxpayer's base employment 9 within Illinois has increased by 1% or more over the 10 preceding year as determined by the taxpayer's employment 11 records filed with the Illinois Department of Employment 12 Security. Taxpayers who are new to Illinois shall be 13 deemed to have met the 1% growth in base employment for 14 the first year in which they file employment records with 15 the Illinois Department of Employment Security. The 16 provisions added to this Section by Public Act 85-1200 17 (and restored by Public Act 87-895) shall be construed as 18 declaratory of existing law and not as a new enactment. 19 If, in any year, the increase in base employment within 20 Illinois over the preceding year is less than 1%, the 21 additional credit shall be limited to that percentage 22 times a fraction, the numerator of which is .5% and the 23 denominator of which is 1%, but shall not exceed .5%. 24 The investment credit shall not be allowed to the extent 25 that it would reduce a taxpayer's liability in any tax 26 year below zero, nor may any credit for qualified 27 property be allowed for any year other than the year in 28 which the property was placed in service in Illinois. For 29 tax years ending on or after December 31, 1987, and on or 30 before December 31, 1988, the credit shall be allowed for 31 the tax year in which the property is placed in service, 32 or, if the amount of the credit exceeds the tax liability 33 for that year, whether it exceeds the original liability 34 or the liability as later amended, such excess may be HB1599 Enrolled -19- LRB9207178TAcs 1 carried forward and applied to the tax liability of the 5 2 taxable years following the excess credit years if the 3 taxpayer (i) makes investments which cause the creation 4 of a minimum of 2,000 full-time equivalent jobs in 5 Illinois, (ii) is located in an enterprise zone 6 established pursuant to the Illinois Enterprise Zone Act 7 and (iii) is certified by the Department of Commerce and 8 Community Affairs as complying with the requirements 9 specified in clause (i) and (ii) by July 1, 1986. The 10 Department of Commerce and Community Affairs shall notify 11 the Department of Revenue of all such certifications 12 immediately. For tax years ending after December 31, 13 1988, the credit shall be allowed for the tax year in 14 which the property is placed in service, or, if the 15 amount of the credit exceeds the tax liability for that 16 year, whether it exceeds the original liability or the 17 liability as later amended, such excess may be carried 18 forward and applied to the tax liability of the 5 taxable 19 years following the excess credit years. The credit shall 20 be applied to the earliest year for which there is a 21 liability. If there is credit from more than one tax year 22 that is available to offset a liability, earlier credit 23 shall be applied first. 24 (2) The term "qualified property" means property 25 which: 26 (A) is tangible, whether new or used, 27 including buildings and structural components of 28 buildings and signs that are real property, but not 29 including land or improvements to real property that 30 are not a structural component of a building such as 31 landscaping, sewer lines, local access roads, 32 fencing, parking lots, and other appurtenances; 33 (B) is depreciable pursuant to Section 167 of 34 the Internal Revenue Code, except that "3-year HB1599 Enrolled -20- LRB9207178TAcs 1 property" as defined in Section 168(c)(2)(A) of that 2 Code is not eligible for the credit provided by this 3 subsection (e); 4 (C) is acquired by purchase as defined in 5 Section 179(d) of the Internal Revenue Code; 6 (D) is used in Illinois by a taxpayer who is 7 primarily engaged in manufacturing, or in mining 8 coal or fluorite, or in retailing; and 9 (E) has not previously been used in Illinois 10 in such a manner and by such a person as would 11 qualify for the credit provided by this subsection 12 (e) or subsection (f). 13 (3) For purposes of this subsection (e), 14 "manufacturing" means the material staging and production 15 of tangible personal property by procedures commonly 16 regarded as manufacturing, processing, fabrication, or 17 assembling which changes some existing material into new 18 shapes, new qualities, or new combinations. For purposes 19 of this subsection (e) the term "mining" shall have the 20 same meaning as the term "mining" in Section 613(c) of 21 the Internal Revenue Code. For purposes of this 22 subsection (e), the term "retailing" means the sale of 23 tangible personal property or services rendered in 24 conjunction with the sale of tangible consumer goods or 25 commodities. 26 (4) The basis of qualified property shall be the 27 basis used to compute the depreciation deduction for 28 federal income tax purposes. 29 (5) If the basis of the property for federal income 30 tax depreciation purposes is increased after it has been 31 placed in service in Illinois by the taxpayer, the amount 32 of such increase shall be deemed property placed in 33 service on the date of such increase in basis. 34 (6) The term "placed in service" shall have the HB1599 Enrolled -21- LRB9207178TAcs 1 same meaning as under Section 46 of the Internal Revenue 2 Code. 3 (7) If during any taxable year, any property ceases 4 to be qualified property in the hands of the taxpayer 5 within 48 months after being placed in service, or the 6 situs of any qualified property is moved outside Illinois 7 within 48 months after being placed in service, the 8 Personal Property Tax Replacement Income Tax for such 9 taxable year shall be increased. Such increase shall be 10 determined by (i) recomputing the investment credit which 11 would have been allowed for the year in which credit for 12 such 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 (7), 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 (8) Unless the investment credit is extended by 21 law, the basis of qualified property shall not include 22 costs incurred after December 31, 2003, except for costs 23 incurred pursuant to a binding contract entered into on 24 or before December 31, 2003. 25 (9) Each taxable year ending before December 31, 26 2000, a partnership may elect to pass through to its 27 partners the credits to which the partnership is entitled 28 under this subsection (e) for the taxable year. A 29 partner may use the credit allocated to him or her under 30 this paragraph only against the tax imposed in 31 subsections (c) and (d) of this Section. If the 32 partnership makes that election, those credits shall be 33 allocated among the partners in the partnership in 34 accordance with the rules set forth in Section 704(b) of HB1599 Enrolled -22- LRB9207178TAcs 1 the Internal Revenue Code, and the rules promulgated 2 under that Section, and the allocated amount of the 3 credits shall be allowed to the partners for that taxable 4 year. The partnership shall make this election on its 5 Personal Property Tax Replacement Income Tax return for 6 that taxable year. The election to pass through the 7 credits shall be irrevocable. 8 For taxable years ending on or after December 31, 9 2000, a partner that qualifies its partnership for a 10 subtraction under subparagraph (I) of paragraph (2) of 11 subsection (d) of Section 203 or a shareholder that 12 qualifies a Subchapter S corporation for a subtraction 13 under subparagraph (S) of paragraph (2) of subsection (b) 14 of Section 203 shall be allowed a credit under this 15 subsection (e) equal to its share of the credit earned 16 under this subsection (e) during the taxable year by the 17 partnership or Subchapter S corporation, determined in 18 accordance with the determination of income and 19 distributive share of income under Sections 702 and 704 20 and Subchapter S of the Internal Revenue Code. This 21 paragraph is exempt from the provisions of Section 250. 22 (f) Investment credit; Enterprise Zone. 23 (1) A taxpayer shall be allowed a credit against 24 the tax imposed by subsections (a) and (b) of this 25 Section for investment in qualified property which is 26 placed in service in an Enterprise Zone created pursuant 27 to the Illinois Enterprise Zone Act. For partners, 28 shareholders of Subchapter S corporations, and owners of 29 limited liability companies, if the liability company is 30 treated as a partnership for purposes of federal and 31 State income taxation, there shall be allowed a credit 32 under this subsection (f) to be determined in accordance 33 with the determination of income and distributive share 34 of income under Sections 702 and 704 and Subchapter S of HB1599 Enrolled -23- LRB9207178TAcs 1 the Internal Revenue Code. The credit shall be .5% of the 2 basis for such property. The credit shall be available 3 only in the taxable year in which the property is placed 4 in service in the Enterprise Zone and shall not be 5 allowed to the extent that it would reduce a taxpayer's 6 liability for the tax imposed by subsections (a) and (b) 7 of this Section to below zero. For tax years ending on or 8 after December 31, 1985, the credit shall be allowed for 9 the tax year in which the property is placed in service, 10 or, if the amount of the credit exceeds the tax liability 11 for that year, whether it exceeds the original liability 12 or the liability as later amended, such excess may be 13 carried forward and applied to the tax liability of the 5 14 taxable years following the excess credit year. The 15 credit shall be applied to the earliest year for which 16 there is a liability. If there is credit from more than 17 one tax year that is available to offset a liability, the 18 credit accruing first in time shall be applied first. 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 (f); 29 (C) is acquired by purchase as defined in 30 Section 179(d) of the Internal Revenue Code; 31 (D) is used in the Enterprise Zone by the 32 taxpayer; and 33 (E) has not been previously used in Illinois 34 in such a manner and by such a person as would HB1599 Enrolled -24- LRB9207178TAcs 1 qualify for the credit provided by this subsection 2 (f) or subsection (e). 3 (3) The basis of qualified property shall be the 4 basis used to compute the depreciation deduction for 5 federal income tax purposes. 6 (4) If the basis of the property for federal income 7 tax depreciation purposes is increased after it has been 8 placed in service in the Enterprise Zone by the taxpayer, 9 the amount of such increase shall be deemed property 10 placed in service on the date of such increase in basis. 11 (5) The term "placed in service" shall have the 12 same meaning as under Section 46 of the Internal Revenue 13 Code. 14 (6) If during any taxable year, any property ceases 15 to be qualified property in the hands of the taxpayer 16 within 48 months after being placed in service, or the 17 situs of any qualified property is moved outside the 18 Enterprise Zone within 48 months after being placed in 19 service, the tax imposed under subsections (a) and (b) of 20 this Section for such taxable year shall be increased. 21 Such increase shall be determined by (i) recomputing the 22 investment credit which would have been allowed for the 23 year in which credit for such property was originally 24 allowed by eliminating such property from such 25 computation, and (ii) subtracting such recomputed credit 26 from the amount of credit previously allowed. For the 27 purposes of this paragraph (6), a reduction of the basis 28 of qualified property resulting from a redetermination of 29 the purchase price shall be deemed a disposition of 30 qualified property to the extent of such reduction. 31 (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade 32 Zone or Sub-Zone. 33 (1) A taxpayer conducting a trade or business in an 34 enterprise zone or a High Impact Business designated by HB1599 Enrolled -25- LRB9207178TAcs 1 the Department of Commerce and Community Affairs 2 conducting a trade or business in a federally designated 3 Foreign Trade Zone or Sub-Zone shall be allowed a credit 4 against the tax imposed by subsections (a) and (b) of 5 this Section in the amount of $500 per eligible employee 6 hired to work in the zone during the taxable year. 7 (2) To qualify for the credit: 8 (A) the taxpayer must hire 5 or more eligible 9 employees to work in an enterprise zone or federally 10 designated Foreign Trade Zone or Sub-Zone during the 11 taxable year; 12 (B) the taxpayer's total employment within the 13 enterprise zone or federally designated Foreign 14 Trade Zone or Sub-Zone must increase by 5 or more 15 full-time employees beyond the total employed in 16 that zone at the end of the previous tax year for 17 which a jobs tax credit under this Section was 18 taken, or beyond the total employed by the taxpayer 19 as of December 31, 1985, whichever is later; and 20 (C) the eligible employees must be employed 21 180 consecutive days in order to be deemed hired for 22 purposes of this subsection. 23 (3) An "eligible employee" means an employee who 24 is: 25 (A) Certified by the Department of Commerce 26 and Community Affairs as "eligible for services" 27 pursuant to regulations promulgated in accordance 28 with Title II of the Job Training Partnership Act, 29 Training Services for the Disadvantaged or Title III 30 of the Job Training Partnership Act, Employment and 31 Training Assistance for Dislocated Workers Program. 32 (B) Hired after the enterprise zone or 33 federally designated Foreign Trade Zone or Sub-Zone 34 was designated or the trade or business was located HB1599 Enrolled -26- LRB9207178TAcs 1 in that zone, whichever is later. 2 (C) Employed in the enterprise zone or Foreign 3 Trade Zone or Sub-Zone. An employee is employed in 4 an enterprise zone or federally designated Foreign 5 Trade Zone or Sub-Zone if his services are rendered 6 there or it is the base of operations for the 7 services performed. 8 (D) A full-time employee working 30 or more 9 hours per week. 10 (4) For tax years ending on or after December 31, 11 1985 and prior to December 31, 1988, the credit shall be 12 allowed for the tax year in which the eligible employees 13 are hired. For tax years ending on or after December 31, 14 1988, the credit shall be allowed for the tax year 15 immediately following the tax year in which the eligible 16 employees are hired. If the amount of the credit exceeds 17 the tax liability for that year, whether it exceeds the 18 original liability or the liability as later amended, 19 such excess may be carried forward and applied to the tax 20 liability of the 5 taxable years following the excess 21 credit year. The credit shall be applied to the earliest 22 year for which there is a liability. If there is credit 23 from more than one tax year that is available to offset a 24 liability, earlier credit shall be applied first. 25 (5) The Department of Revenue shall promulgate such 26 rules and regulations as may be deemed necessary to carry 27 out the purposes of this subsection (g). 28 (6) The credit shall be available for eligible 29 employees hired on or after January 1, 1986. 30 (h) Investment credit; High Impact Business. 31 (1) Subject to subsectionssubsection(b) and (b-5) 32 of Section 5.5 of the Illinois Enterprise Zone Act, a 33 taxpayer shall be allowed a credit against the tax 34 imposed by subsections (a) and (b) of this Section for HB1599 Enrolled -27- LRB9207178TAcs 1 investment in qualified property which is placed in 2 service by a Department of Commerce and Community Affairs 3 designated High Impact Business. The credit shall be .5% 4 of the basis for such property. The credit shall not be 5 available (i) until the minimum investments in qualified 6 property set forth in subdivision (a)(3)(A) of Section 7 5.5 of the Illinois Enterprise Zone Act have been 8 satisfied or (ii) until the time authorized in subsection 9 (b-5) of the Illinois Enterprise Zone Act for entities 10 designated as High Impact Businesses under subdivisions 11 (a)(3)(B), (a)(3)(C), and (a)(3)(D) of Section 5.5 of the 12 Illinois Enterprise Zone Act, and shall not be allowed to 13 the extent that it would reduce a taxpayer's liability 14 for the tax imposed by subsections (a) and (b) of this 15 Section to below zero. The credit applicable to such 16minimuminvestments shall be taken in the taxable year in 17 which suchminimuminvestments have been completed. The 18 credit for additional investments beyond the minimum 19 investment by a designated high impact business 20 authorized under subdivision (a)(3)(A) of Section 5.5 of 21 the Illinois Enterprise Zone Act shall be available only 22 in the taxable year in which the property is placed in 23 service and shall not be allowed to the extent that it 24 would reduce a taxpayer's liability for the tax imposed 25 by subsections (a) and (b) of this Section to below zero. 26 For tax years ending on or after December 31, 1987, the 27 credit shall be allowed for the tax year in which the 28 property is placed in service, or, if the amount of the 29 credit exceeds the tax liability for that year, whether 30 it exceeds the original liability or the liability as 31 later amended, such excess may be carried forward and 32 applied to the tax liability of the 5 taxable years 33 following the excess credit year. The credit shall be 34 applied to the earliest year for which there is a HB1599 Enrolled -28- LRB9207178TAcs 1 liability. If there is credit from more than one tax 2 year that is available to offset a liability, the credit 3 accruing first in time shall be applied first. 4 Changes made in this subdivision (h)(1) by Public 5 Act 88-670 restore changes made by Public Act 85-1182 and 6 reflect existing law. 7 (2) The term qualified property means property 8 which: 9 (A) is tangible, whether new or used, 10 including buildings and structural components of 11 buildings; 12 (B) is depreciable pursuant to Section 167 of 13 the Internal Revenue Code, except that "3-year 14 property" as defined in Section 168(c)(2)(A) of that 15 Code is not eligible for the credit provided by this 16 subsection (h); 17 (C) is acquired by purchase as defined in 18 Section 179(d) of the Internal Revenue Code; and 19 (D) is not eligible for the Enterprise Zone 20 Investment Credit provided by subsection (f) of this 21 Section. 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 a federally designated Foreign Trade 28 Zone or Sub-Zone located in Illinois by the taxpayer, the 29 amount of such increase shall be deemed property placed 30 in service on the date of such increase in basis. 31 (5) The term "placed in service" shall have the 32 same meaning as under Section 46 of the Internal Revenue 33 Code. 34 (6) If during any taxable year ending on or before HB1599 Enrolled -29- LRB9207178TAcs 1 December 31, 1996, any property ceases to be qualified 2 property in the hands of the taxpayer within 48 months 3 after being placed in service, or the situs of any 4 qualified property is moved outside Illinois within 48 5 months after being placed in service, the tax imposed 6 under subsections (a) and (b) of this Section for such 7 taxable year shall be increased. Such increase shall be 8 determined by (i) recomputing the investment credit which 9 would have been allowed for the year in which credit for 10 such property was originally allowed by eliminating such 11 property from such computation, and (ii) subtracting such 12 recomputed credit from the amount of credit previously 13 allowed. For the purposes of this paragraph (6), a 14 reduction of the basis of qualified property resulting 15 from a redetermination of the purchase price shall be 16 deemed a disposition of qualified property to the extent 17 of such reduction. 18 (7) Beginning with tax years ending after December 19 31, 1996, if a taxpayer qualifies for the credit under 20 this subsection (h) and thereby is granted a tax 21 abatement and the taxpayer relocates its entire facility 22 in violation of the explicit terms and length of the 23 contract under Section 18-183 of the Property Tax Code, 24 the tax imposed under subsections (a) and (b) of this 25 Section shall be increased for the taxable year in which 26 the taxpayer relocated its facility by an amount equal to 27 the amount of credit received by the taxpayer under this 28 subsection (h). 29 (i) A credit shall be allowed against the tax imposed by 30 subsections (a) and (b) of this Section for the tax imposed 31 by subsections (c) and (d) of this Section. This credit 32 shall be computed by multiplying the tax imposed by 33 subsections (c) and (d) of this Section by a fraction, the 34 numerator of which is base income allocable to Illinois and HB1599 Enrolled -30- LRB9207178TAcs 1 the denominator of which is Illinois base income, and further 2 multiplying the product by the tax rate imposed by 3 subsections (a) and (b) of this Section. 4 Any credit earned on or after December 31, 1986 under 5 this subsection which is unused in the year the credit is 6 computed because it exceeds the tax liability imposed by 7 subsections (a) and (b) for that year (whether it exceeds the 8 original liability or the liability as later amended) may be 9 carried forward and applied to the tax liability imposed by 10 subsections (a) and (b) of the 5 taxable years following the 11 excess credit year. This credit shall be applied first to 12 the earliest year for which there is a liability. If there 13 is a credit under this subsection from more than one tax year 14 that is available to offset a liability the earliest credit 15 arising under this subsection shall be applied first. 16 If, during any taxable year ending on or after December 17 31, 1986, the tax imposed by subsections (c) and (d) of this 18 Section for which a taxpayer has claimed a credit under this 19 subsection (i) is reduced, the amount of credit for such tax 20 shall also be reduced. Such reduction shall be determined by 21 recomputing the credit to take into account the reduced tax 22 imposed by subsection (c) and (d). If any portion of the 23 reduced amount of credit has been carried to a different 24 taxable year, an amended return shall be filed for such 25 taxable year to reduce the amount of credit claimed. 26 (j) Training expense credit. Beginning with tax years 27 ending on or after December 31, 1986, a taxpayer shall be 28 allowed a credit against the tax imposed by subsection (a) 29 and (b) under this Section for all amounts paid or accrued, 30 on behalf of all persons employed by the taxpayer in Illinois 31 or Illinois residents employed outside of Illinois by a 32 taxpayer, for educational or vocational training in 33 semi-technical or technical fields or semi-skilled or skilled 34 fields, which were deducted from gross income in the HB1599 Enrolled -31- LRB9207178TAcs 1 computation of taxable income. The credit against the tax 2 imposed by subsections (a) and (b) shall be 1.6% of such 3 training expenses. For partners, shareholders of subchapter 4 S corporations, and owners of limited liability companies, if 5 the liability company is treated as a partnership for 6 purposes of federal and State income taxation, there shall be 7 allowed a credit under this subsection (j) to be determined 8 in accordance with the determination of income and 9 distributive share of income under Sections 702 and 704 and 10 subchapter S of the Internal Revenue Code. 11 Any credit allowed under this subsection which is unused 12 in the year the credit is earned may be carried forward to 13 each of the 5 taxable years following the year for which the 14 credit is first computed until it is used. This credit shall 15 be applied first to the earliest year for which there is a 16 liability. If there is a credit under this subsection from 17 more than one tax year that is available to offset a 18 liability the earliest credit arising under this subsection 19 shall be applied first. 20 (k) Research and development credit. 21 Beginning with tax years ending after July 1, 1990, a 22 taxpayer shall be allowed a credit against the tax imposed by 23 subsections (a) and (b) of this Section for increasing 24 research activities in this State. The credit allowed 25 against the tax imposed by subsections (a) and (b) shall be 26 equal to 6 1/2% of the qualifying expenditures for increasing 27 research activities in this State. For partners, shareholders 28 of subchapter S corporations, and owners of limited liability 29 companies, if the liability company is treated as a 30 partnership for purposes of federal and State income 31 taxation, there shall be allowed a credit under this 32 subsection to be determined in accordance with the 33 determination of income and distributive share of income 34 under Sections 702 and 704 and subchapter S of the Internal HB1599 Enrolled -32- LRB9207178TAcs 1 Revenue Code. 2 For purposes of this subsection, "qualifying 3 expenditures" means the qualifying expenditures as defined 4 for the federal credit for increasing research activities 5 which would be allowable under Section 41 of the Internal 6 Revenue Code and which are conducted in this State, 7 "qualifying expenditures for increasing research activities 8 in this State" means the excess of qualifying expenditures 9 for the taxable year in which incurred over qualifying 10 expenditures for the base period, "qualifying expenditures 11 for the base period" means the average of the qualifying 12 expenditures for each year in the base period, and "base 13 period" means the 3 taxable years immediately preceding the 14 taxable year for which the determination is being made. 15 Any credit in excess of the tax liability for the taxable 16 year may be carried forward. A taxpayer may elect to have the 17 unused credit shown on its final completed return carried 18 over as a credit against the tax liability for the following 19 5 taxable years or until it has been fully used, whichever 20 occurs first. 21 If an unused credit is carried forward to a given year 22 from 2 or more earlier years, that credit arising in the 23 earliest year will be applied first against the tax liability 24 for the given year. If a tax liability for the given year 25 still remains, the credit from the next earliest year will 26 then be applied, and so on, until all credits have been used 27 or no tax liability for the given year remains. Any 28 remaining unused credit or credits then will be carried 29 forward to the next following year in which a tax liability 30 is incurred, except that no credit can be carried forward to 31 a year which is more than 5 years after the year in which the 32 expense for which the credit is given was incurred. 33 Unless extended by law, the credit shall not include 34 costs incurred after December 31, 2004, except for costs HB1599 Enrolled -33- LRB9207178TAcs 1 incurred pursuant to a binding contract entered into on or 2 before December 31, 2004. 3 No inference shall be drawn from this amendatory Act of 4 the 91st General Assembly in construing this Section for 5 taxable years beginning before January 1, 1999. 6 (l) Environmental Remediation Tax Credit. 7 (i) For tax years ending after December 31, 1997 8 and on or before December 31, 2001, a taxpayer shall be 9 allowed a credit against the tax imposed by subsections 10 (a) and (b) of this Section for certain amounts paid for 11 unreimbursed eligible remediation costs, as specified in 12 this subsection. For purposes of this Section, 13 "unreimbursed eligible remediation costs" means costs 14 approved by the Illinois Environmental Protection Agency 15 ("Agency") under Section 58.14 of the Environmental 16 Protection Act that were paid in performing environmental 17 remediation at a site for which a No Further Remediation 18 Letter was issued by the Agency and recorded under 19 Section 58.10 of the Environmental Protection Act. The 20 credit must be claimed for the taxable year in which 21 Agency approval of the eligible remediation costs is 22 granted. The credit is not available to any taxpayer if 23 the taxpayer or any related party caused or contributed 24 to, in any material respect, a release of regulated 25 substances on, in, or under the site that was identified 26 and addressed by the remedial action pursuant to the Site 27 Remediation Program of the Environmental Protection Act. 28 After the Pollution Control Board rules are adopted 29 pursuant to the Illinois Administrative Procedure Act for 30 the administration and enforcement of Section 58.9 of the 31 Environmental Protection Act, determinations as to credit 32 availability for purposes of this Section shall be made 33 consistent with those rules. For purposes of this 34 Section, "taxpayer" includes a person whose tax HB1599 Enrolled -34- LRB9207178TAcs 1 attributes the taxpayer has succeeded to under Section 2 381 of the Internal Revenue Code and "related party" 3 includes the persons disallowed a deduction for losses by 4 paragraphs (b), (c), and (f)(1) of Section 267 of the 5 Internal Revenue Code by virtue of being a related 6 taxpayer, as well as any of its partners. The credit 7 allowed against the tax imposed by subsections (a) and 8 (b) shall be equal to 25% of the unreimbursed eligible 9 remediation costs in excess of $100,000 per site, except 10 that the $100,000 threshold shall not apply to any site 11 contained in an enterprise zone as determined by the 12 Department of Commerce and Community Affairs. The total 13 credit allowed shall not exceed $40,000 per year with a 14 maximum total of $150,000 per site. For partners and 15 shareholders of subchapter S corporations, there shall be 16 allowed a credit under this subsection to be determined 17 in accordance with the determination of income and 18 distributive share of income under Sections 702 and 704 19 andofsubchapter S of the Internal Revenue Code. 20 (ii) A credit allowed under this subsection that is 21 unused in the year the credit is earned may be carried 22 forward to each of the 5 taxable years following the year 23 for which the credit is first earned until it is used. 24 The term "unused credit" does not include any amounts of 25 unreimbursed eligible remediation costs in excess of the 26 maximum credit per site authorized under paragraph (i). 27 This credit shall be applied first to the earliest year 28 for which there is a liability. If there is a credit 29 under this subsection from more than one tax year that is 30 available to offset a liability, the earliest credit 31 arising under this subsection shall be applied first. A 32 credit allowed under this subsection may be sold to a 33 buyer as part of a sale of all or part of the remediation 34 site for which the credit was granted. The purchaser of HB1599 Enrolled -35- LRB9207178TAcs 1 a remediation site and the tax credit shall succeed to 2 the unused credit and remaining carry-forward period of 3 the seller. To perfect the transfer, the assignor shall 4 record the transfer in the chain of title for the site 5 and provide written notice to the Director of the 6 Illinois Department of Revenue of the assignor's intent 7 to sell the remediation site and the amount of the tax 8 credit to be transferred as a portion of the sale. In no 9 event may a credit be transferred to any taxpayer if the 10 taxpayer or a related party would not be eligible under 11 the provisions of subsection (i). 12 (iii) For purposes of this Section, the term "site" 13 shall have the same meaning as under Section 58.2 of the 14 Environmental Protection Act. 15 (m) Education expense credit. 16 Beginning with tax years ending after December 31, 1999, 17 a taxpayer who is the custodian of one or more qualifying 18 pupils shall be allowed a credit against the tax imposed by 19 subsections (a) and (b) of this Section for qualified 20 education expenses incurred on behalf of the qualifying 21 pupils. The credit shall be equal to 25% of qualified 22 education expenses, but in no event may the total credit 23 under this Section claimed by a family that is the custodian 24 of qualifying pupils exceed $500. In no event shall a credit 25 under this subsection reduce the taxpayer's liability under 26 this Act to less than zero. This subsection is exempt from 27 the provisions of Section 250 of this Act. 28 For purposes of this subsection; 29 "Qualifying pupils" means individuals who (i) are 30 residents of the State of Illinois, (ii) are under the age of 31 21 at the close of the school year for which a credit is 32 sought, and (iii) during the school year for which a credit 33 is sought were full-time pupils enrolled in a kindergarten 34 through twelfth grade education program at any school, as HB1599 Enrolled -36- LRB9207178TAcs 1 defined in this subsection. 2 "Qualified education expense" means the amount incurred 3 on behalf of a qualifying pupil in excess of $250 for 4 tuition, book fees, and lab fees at the school in which the 5 pupil is enrolled during the regular school year. 6 "School" means any public or nonpublic elementary or 7 secondary school in Illinois that is in compliance with Title 8 VI of the Civil Rights Act of 1964 and attendance at which 9 satisfies the requirements of Section 26-1 of the School 10 Code, except that nothing shall be construed to require a 11 child to attend any particular public or nonpublic school to 12 qualify for the credit under this Section. 13 "Custodian" means, with respect to qualifying pupils, an 14 Illinois resident who is a parent, the parents, a legal 15 guardian, or the legal guardians of the qualifying pupils. 16 (Source: P.A. 90-123, eff. 7-21-97; 90-458, eff. 8-17-97; 17 90-605, eff. 6-30-98; 90-655, eff. 7-30-98; 90-717, eff. 18 8-7-98; 90-792, eff. 1-1-99; 91-9, eff. 1-1-00; 91-357, eff. 19 7-29-99; 91-643, eff. 8-20-99; 91-644, eff. 8-20-99; 91-860, 20 eff. 6-22-00; 91-913, eff. 1-1-01; revised 10-24-00.) 21 Section 920. The Use Tax Act is amended by changing 22 Section 9 as follows: 23 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 24 Sec. 9. Except as to motor vehicles, watercraft, 25 aircraft, and trailers that are required to be registered 26 with an agency of this State, each retailer required or 27 authorized to collect the tax imposed by this Act shall pay 28 to the Department the amount of such tax (except as otherwise 29 provided) at the time when he is required to file his return 30 for the period during which such tax was collected, less a 31 discount of 2.1% prior to January 1, 1990, and 1.75% on and 32 after January 1, 1990, or $5 per calendar year, whichever is HB1599 Enrolled -37- LRB9207178TAcs 1 greater, which is allowed to reimburse the retailer for 2 expenses incurred in collecting the tax, keeping records, 3 preparing and filing returns, remitting the tax and supplying 4 data to the Department on request. In the case of retailers 5 who report and pay the tax on a transaction by transaction 6 basis, as provided in this Section, such discount shall be 7 taken with each such tax remittance instead of when such 8 retailer files his periodic return. A retailer need not 9 remit that part of any tax collected by him to the extent 10 that he is required to remit and does remit the tax imposed 11 by the Retailers' Occupation Tax Act, with respect to the 12 sale of the same property. 13 Where such tangible personal property is sold under a 14 conditional sales contract, or under any other form of sale 15 wherein the payment of the principal sum, or a part thereof, 16 is extended beyond the close of the period for which the 17 return is filed, the retailer, in collecting the tax (except 18 as to motor vehicles, watercraft, aircraft, and trailers that 19 are required to be registered with an agency of this State), 20 may collect for each tax return period, only the tax 21 applicable to that part of the selling price actually 22 received during such tax return period. 23 Except as provided in this Section, on or before the 24 twentieth day of each calendar month, such retailer shall 25 file a return for the preceding calendar month. Such return 26 shall be filed on forms prescribed by the Department and 27 shall furnish such information as the Department may 28 reasonably require. 29 The Department may require returns to be filed on a 30 quarterly basis. If so required, a return for each calendar 31 quarter shall be filed on or before the twentieth day of the 32 calendar month following the end of such calendar quarter. 33 The taxpayer shall also file a return with the Department for 34 each of the first two months of each calendar quarter, on or HB1599 Enrolled -38- LRB9207178TAcs 1 before the twentieth day of the following calendar month, 2 stating: 3 1. The name of the seller; 4 2. The address of the principal place of business 5 from which he engages in the business of selling tangible 6 personal property at retail in this State; 7 3. The total amount of taxable receipts received by 8 him during the preceding calendar month from sales of 9 tangible personal property by him during such preceding 10 calendar month, including receipts from charge and time 11 sales, but less all deductions allowed by law; 12 4. The amount of credit provided in Section 2d of 13 this Act; 14 5. The amount of tax due; 15 5-5. The signature of the taxpayer; and 16 6. Such other reasonable information as the 17 Department may require. 18 If a taxpayer fails to sign a return within 30 days after 19 the proper notice and demand for signature by the Department, 20 the return shall be considered valid and any amount shown to 21 be due on the return shall be deemed assessed. 22 Beginning October 1, 1993, a taxpayer who has an average 23 monthly tax liability of $150,000 or more shall make all 24 payments required by rules of the Department by electronic 25 funds transfer. Beginning October 1, 1994, a taxpayer who has 26 an average monthly tax liability of $100,000 or more shall 27 make all payments required by rules of the Department by 28 electronic funds transfer. Beginning October 1, 1995, a 29 taxpayer who has an average monthly tax liability of $50,000 30 or more shall make all payments required by rules of the 31 Department by electronic funds transfer. Beginning October 1, 32 2000, a taxpayer who has an annual tax liability of $200,000 33 or more shall make all payments required by rules of the 34 Department by electronic funds transfer. The term "annual HB1599 Enrolled -39- LRB9207178TAcs 1 tax liability" shall be the sum of the taxpayer's liabilities 2 under this Act, and under all other State and local 3 occupation and use tax laws administered by the Department, 4 for the immediately preceding calendar year. The term 5 "average monthly tax liability" means the sum of the 6 taxpayer's liabilities under this Act, and under all other 7 State and local occupation and use tax laws administered by 8 the Department, for the immediately preceding calendar year 9 divided by 12. 10 Before August 1 of each year beginning in 1993, the 11 Department shall notify all taxpayers required to make 12 payments by electronic funds transfer. All taxpayers required 13 to make payments by electronic funds transfer shall make 14 those payments for a minimum of one year beginning on October 15 1. 16 Any taxpayer not required to make payments by electronic 17 funds transfer may make payments by electronic funds transfer 18 with the permission of the Department. 19 All taxpayers required to make payment by electronic 20 funds transfer and any taxpayers authorized to voluntarily 21 make payments by electronic funds transfer shall make those 22 payments in the manner authorized by the Department. 23 The Department shall adopt such rules as are necessary to 24 effectuate a program of electronic funds transfer and the 25 requirements of this Section. 26 Before October 1, 2000, if the taxpayer's average monthly 27 tax liability to the Department under this Act, the 28 Retailers' Occupation Tax Act, the Service Occupation Tax 29 Act, the Service Use Tax Act was $10,000 or more during the 30 preceding 4 complete calendar quarters, he shall file a 31 return with the Department each month by the 20th day of the 32 month next following the month during which such tax 33 liability is incurred and shall make payments to the 34 Department on or before the 7th, 15th, 22nd and last day of HB1599 Enrolled -40- LRB9207178TAcs 1 the month during which such liability is incurred. On and 2 after October 1, 2000, if the taxpayer's average monthly tax 3 liability to the Department under this Act, the Retailers' 4 Occupation Tax Act, the Service Occupation Tax Act, and the 5 Service Use Tax Act was $20,000 or more during the preceding 6 4 complete calendar quarters, he shall file a return with the 7 Department each month by the 20th day of the month next 8 following the month during which such tax liability is 9 incurred and shall make payment to the Department on or 10 before the 7th, 15th, 22nd and last day of the month during 11 which such liability is incurred. If the month during which 12 such tax liability is incurred began prior to January 1, 13 1985, each payment shall be in an amount equal to 1/4 of the 14 taxpayer's actual liability for the month or an amount set by 15 the Department not to exceed 1/4 of the average monthly 16 liability of the taxpayer to the Department for the preceding 17 4 complete calendar quarters (excluding the month of highest 18 liability and the month of lowest liability in such 4 quarter 19 period). If the month during which such tax liability is 20 incurred begins on or after January 1, 1985, and prior to 21 January 1, 1987, each payment shall be in an amount equal to 22 22.5% of the taxpayer's actual liability for the month or 23 27.5% of the taxpayer's liability for the same calendar month 24 of the preceding year. If the month during which such tax 25 liability is incurred begins on or after January 1, 1987, and 26 prior to January 1, 1988, each payment shall be in an amount 27 equal to 22.5% of the taxpayer's actual liability for the 28 month or 26.25% of the taxpayer's liability for the same 29 calendar month of the preceding year. If the month during 30 which such tax liability is incurred begins on or after 31 January 1, 1988, and prior to January 1, 1989, or begins on 32 or after January 1, 1996, each payment shall be in an amount 33 equal to 22.5% of the taxpayer's actual liability for the 34 month or 25% of the taxpayer's liability for the same HB1599 Enrolled -41- LRB9207178TAcs 1 calendar month of the preceding year. If the month during 2 which such tax liability is incurred begins on or after 3 January 1, 1989, and prior to January 1, 1996, each payment 4 shall be in an amount equal to 22.5% of the taxpayer's actual 5 liability for the month or 25% of the taxpayer's liability 6 for the same calendar month of the preceding year or 100% of 7 the taxpayer's actual liability for the quarter monthly 8 reporting period. The amount of such quarter monthly 9 payments shall be credited against the final tax liability of 10 the taxpayer's return for that month. Before October 1, 11 2000, once applicable, the requirement of the making of 12 quarter monthly payments to the Department shall continue 13 until such taxpayer's average monthly liability to the 14 Department during the preceding 4 complete calendar quarters 15 (excluding the month of highest liability and the month of 16 lowest liability) is less than $9,000, or until such 17 taxpayer's average monthly liability to the Department as 18 computed for each calendar quarter of the 4 preceding 19 complete calendar quarter period is less than $10,000. 20 However, if a taxpayer can show the Department that a 21 substantial change in the taxpayer's business has occurred 22 which causes the taxpayer to anticipate that his average 23 monthly tax liability for the reasonably foreseeable future 24 will fall below the $10,000 threshold stated above, then such 25 taxpayer may petition the Department for change in such 26 taxpayer's reporting status. On and after October 1, 2000, 27 once applicable, the requirement of the making of quarter 28 monthly payments to the Department shall continue until such 29 taxpayer's average monthly liability to the Department during 30 the preceding 4 complete calendar quarters (excluding the 31 month of highest liability and the month of lowest liability) 32 is less than $19,000 or until such taxpayer's average monthly 33 liability to the Department as computed for each calendar 34 quarter of the 4 preceding complete calendar quarter period HB1599 Enrolled -42- LRB9207178TAcs 1 is less than $20,000. However, if a taxpayer can show the 2 Department that a substantial change in the taxpayer's 3 business has occurred which causes the taxpayer to anticipate 4 that his average monthly tax liability for the reasonably 5 foreseeable future will fall below the $20,000 threshold 6 stated above, then such taxpayer may petition the Department 7 for a change in such taxpayer's reporting status. The 8 Department shall change such taxpayer's reporting status 9 unless it finds that such change is seasonal in nature and 10 not likely to be long term. If any such quarter monthly 11 payment is not paid at the time or in the amount required by 12 this Section, then the taxpayer shall be liable for penalties 13 and interest on the difference between the minimum amount due 14 and the amount of such quarter monthly payment actually and 15 timely paid, except insofar as the taxpayer has previously 16 made payments for that month to the Department in excess of 17 the minimum payments previously due as provided in this 18 Section. The Department shall make reasonable rules and 19 regulations to govern the quarter monthly payment amount and 20 quarter monthly payment dates for taxpayers who file on other 21 than a calendar monthly basis. 22 If any such payment provided for in this Section exceeds 23 the taxpayer's liabilities under this Act, the Retailers' 24 Occupation Tax Act, the Service Occupation Tax Act and the 25 Service Use Tax Act, as shown by an original monthly return, 26 the Department shall issue to the taxpayer a credit 27 memorandum no later than 30 days after the date of payment, 28 which memorandum may be submitted by the taxpayer to the 29 Department in payment of tax liability subsequently to be 30 remitted by the taxpayer to the Department or be assigned by 31 the taxpayer to a similar taxpayer under this Act, the 32 Retailers' Occupation Tax Act, the Service Occupation Tax Act 33 or the Service Use Tax Act, in accordance with reasonable 34 rules and regulations to be prescribed by the Department, HB1599 Enrolled -43- LRB9207178TAcs 1 except that if such excess payment is shown on an original 2 monthly return and is made after December 31, 1986, no credit 3 memorandum shall be issued, unless requested by the taxpayer. 4 If no such request is made, the taxpayer may credit such 5 excess payment against tax liability subsequently to be 6 remitted by the taxpayer to the Department under this Act, 7 the Retailers' Occupation Tax Act, the Service Occupation Tax 8 Act or the Service Use Tax Act, in accordance with reasonable 9 rules and regulations prescribed by the Department. If the 10 Department subsequently determines that all or any part of 11 the credit taken was not actually due to the taxpayer, the 12 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 13 by 2.1% or 1.75% of the difference between the credit taken 14 and that actually due, and the taxpayer shall be liable for 15 penalties and interest on such difference. 16 If the retailer is otherwise required to file a monthly 17 return and if the retailer's average monthly tax liability to 18 the Department does not exceed $200, the Department may 19 authorize his returns to be filed on a quarter annual basis, 20 with the return for January, February, and March of a given 21 year being due by April 20 of such year; with the return for 22 April, May and June of a given year being due by July 20 of 23 such year; with the return for July, August and September of 24 a given year being due by October 20 of such year, and with 25 the return for October, November and December of a given year 26 being due by January 20 of the following year. 27 If the retailer is otherwise required to file a monthly 28 or quarterly return and if the retailer's average monthly tax 29 liability to the Department does not exceed $50, the 30 Department may authorize his returns to be filed on an annual 31 basis, with the return for a given year being due by January 32 20 of the following year. 33 Such quarter annual and annual returns, as to form and 34 substance, shall be subject to the same requirements as HB1599 Enrolled -44- LRB9207178TAcs 1 monthly returns. 2 Notwithstanding any other provision in this Act 3 concerning the time within which a retailer may file his 4 return, in the case of any retailer who ceases to engage in a 5 kind of business which makes him responsible for filing 6 returns under this Act, such retailer shall file a final 7 return under this Act with the Department not more than one 8 month after discontinuing such business. 9 In addition, with respect to motor vehicles, watercraft, 10 aircraft, and trailers that are required to be registered 11 with an agency of this State, every retailer selling this 12 kind of tangible personal property shall file, with the 13 Department, upon a form to be prescribed and supplied by the 14 Department, a separate return for each such item of tangible 15 personal property which the retailer sells, except that if, 16 in the same transaction, (i) a retailer of aircraft, 17 watercraft, motor vehicles or trailers transfers more than 18 one aircraft, watercraft, motor vehicle or trailer to another 19 aircraft, watercraft, motor vehicle or trailer retailer for 20 the purpose of resale or (ii) a retailer of aircraft, 21 watercraft, motor vehicles, or trailers transfers more than 22 one aircraft, watercraft, motor vehicle, or trailer to a 23 purchaser for use as a qualifying rolling stock as provided 24 in Section 3-55 of this Act, then that seller may report the 25 transfer of all the aircraft, watercraft, motor vehicles or 26 trailers involved in that transaction to the Department on 27 the same uniform invoice-transaction reporting return form. 28 For purposes of this Section, "watercraft" means a Class 2, 29 Class 3, or Class 4 watercraft as defined in Section 3-2 of 30 the Boat Registration and Safety Act, a personal watercraft, 31 or any boat equipped with an inboard motor. 32 The transaction reporting return in the case of motor 33 vehicles or trailers that are required to be registered with 34 an agency of this State, shall be the same document as the HB1599 Enrolled -45- LRB9207178TAcs 1 Uniform Invoice referred to in Section 5-402 of the Illinois 2 Vehicle Code and must show the name and address of the 3 seller; the name and address of the purchaser; the amount of 4 the selling price including the amount allowed by the 5 retailer for traded-in property, if any; the amount allowed 6 by the retailer for the traded-in tangible personal property, 7 if any, to the extent to which Section 2 of this Act allows 8 an exemption for the value of traded-in property; the balance 9 payable after deducting such trade-in allowance from the 10 total selling price; the amount of tax due from the retailer 11 with respect to such transaction; the amount of tax collected 12 from the purchaser by the retailer on such transaction (or 13 satisfactory evidence that such tax is not due in that 14 particular instance, if that is claimed to be the fact); the 15 place and date of the sale; a sufficient identification of 16 the property sold; such other information as is required in 17 Section 5-402 of the Illinois Vehicle Code, and such other 18 information as the Department may reasonably require. 19 The transaction reporting return in the case of 20 watercraft and aircraft must show the name and address of the 21 seller; the name and address of the purchaser; the amount of 22 the selling price including the amount allowed by the 23 retailer for traded-in property, if any; the amount allowed 24 by the retailer for the traded-in tangible personal property, 25 if any, to the extent to which Section 2 of this Act allows 26 an exemption for the value of traded-in property; the balance 27 payable after deducting such trade-in allowance from the 28 total selling price; the amount of tax due from the retailer 29 with respect to such transaction; the amount of tax collected 30 from the purchaser by the retailer on such transaction (or 31 satisfactory evidence that such tax is not due in that 32 particular instance, if that is claimed to be the fact); the 33 place and date of the sale, a sufficient identification of 34 the property sold, and such other information as the HB1599 Enrolled -46- LRB9207178TAcs 1 Department may reasonably require. 2 Such transaction reporting return shall be filed not 3 later than 20 days after the date of delivery of the item 4 that is being sold, but may be filed by the retailer at any 5 time sooner than that if he chooses to do so. The 6 transaction reporting return and tax remittance or proof of 7 exemption from the tax that is imposed by this Act may be 8 transmitted to the Department by way of the State agency with 9 which, or State officer with whom, the tangible personal 10 property must be titled or registered (if titling or 11 registration is required) if the Department and such agency 12 or State officer determine that this procedure will expedite 13 the processing of applications for title or registration. 14 With each such transaction reporting return, the retailer 15 shall remit the proper amount of tax due (or shall submit 16 satisfactory evidence that the sale is not taxable if that is 17 the case), to the Department or its agents, whereupon the 18 Department shall issue, in the purchaser's name, a tax 19 receipt (or a certificate of exemption if the Department is 20 satisfied that the particular sale is tax exempt) which such 21 purchaser may submit to the agency with which, or State 22 officer with whom, he must title or register the tangible 23 personal property that is involved (if titling or 24 registration is required) in support of such purchaser's 25 application for an Illinois certificate or other evidence of 26 title or registration to such tangible personal property. 27 No retailer's failure or refusal to remit tax under this 28 Act precludes a user, who has paid the proper tax to the 29 retailer, from obtaining his certificate of title or other 30 evidence of title or registration (if titling or registration 31 is required) upon satisfying the Department that such user 32 has paid the proper tax (if tax is due) to the retailer. The 33 Department shall adopt appropriate rules to carry out the 34 mandate of this paragraph. HB1599 Enrolled -47- LRB9207178TAcs 1 If the user who would otherwise pay tax to the retailer 2 wants the transaction reporting return filed and the payment 3 of tax or proof of exemption made to the Department before 4 the retailer is willing to take these actions and such user 5 has not paid the tax to the retailer, such user may certify 6 to the fact of such delay by the retailer, and may (upon the 7 Department being satisfied of the truth of such 8 certification) transmit the information required by the 9 transaction reporting return and the remittance for tax or 10 proof of exemption directly to the Department and obtain his 11 tax receipt or exemption determination, in which event the 12 transaction reporting return and tax remittance (if a tax 13 payment was required) shall be credited by the Department to 14 the proper retailer's account with the Department, but 15 without the 2.1% or 1.75% discount provided for in this 16 Section being allowed. When the user pays the tax directly 17 to the Department, he shall pay the tax in the same amount 18 and in the same form in which it would be remitted if the tax 19 had been remitted to the Department by the retailer. 20 Where a retailer collects the tax with respect to the 21 selling price of tangible personal property which he sells 22 and the purchaser thereafter returns such tangible personal 23 property and the retailer refunds the selling price thereof 24 to the purchaser, such retailer shall also refund, to the 25 purchaser, the tax so collected from the purchaser. When 26 filing his return for the period in which he refunds such tax 27 to the purchaser, the retailer may deduct the amount of the 28 tax so refunded by him to the purchaser from any other use 29 tax which such retailer may be required to pay or remit to 30 the Department, as shown by such return, if the amount of the 31 tax to be deducted was previously remitted to the Department 32 by such retailer. If the retailer has not previously 33 remitted the amount of such tax to the Department, he is 34 entitled to no deduction under this Act upon refunding such HB1599 Enrolled -48- LRB9207178TAcs 1 tax to the purchaser. 2 Any retailer filing a return under this Section shall 3 also include (for the purpose of paying tax thereon) the 4 total tax covered by such return upon the selling price of 5 tangible personal property purchased by him at retail from a 6 retailer, but as to which the tax imposed by this Act was not 7 collected from the retailer filing such return, and such 8 retailer shall remit the amount of such tax to the Department 9 when filing such return. 10 If experience indicates such action to be practicable, 11 the Department may prescribe and furnish a combination or 12 joint return which will enable retailers, who are required to 13 file returns hereunder and also under the Retailers' 14 Occupation Tax Act, to furnish all the return information 15 required by both Acts on the one form. 16 Where the retailer has more than one business registered 17 with the Department under separate registration under this 18 Act, such retailer may not file each return that is due as a 19 single return covering all such registered businesses, but 20 shall file separate returns for each such registered 21 business. 22 Beginning January 1, 1990, each month the Department 23 shall pay into the State and Local Sales Tax Reform Fund, a 24 special fund in the State Treasury which is hereby created, 25 the net revenue realized for the preceding month from the 1% 26 tax on sales of food for human consumption which is to be 27 consumed off the premises where it is sold (other than 28 alcoholic beverages, soft drinks and food which has been 29 prepared for immediate consumption) and prescription and 30 nonprescription medicines, drugs, medical appliances and 31 insulin, urine testing materials, syringes and needles used 32 by diabetics. 33 Beginning January 1, 1990, each month the Department 34 shall pay into the County and Mass Transit District Fund 4% HB1599 Enrolled -49- LRB9207178TAcs 1 of the net revenue realized for the preceding month from the 2 6.25% general rate on the selling price of tangible personal 3 property which is purchased outside Illinois at retail from a 4 retailer and which is titled or registered by an agency of 5 this State's government. 6 Beginning January 1, 1990, each month the Department 7 shall pay into the State and Local Sales Tax Reform Fund, a 8 special fund in the State Treasury, 20% of the net revenue 9 realized for the preceding month from the 6.25% general rate 10 on the selling price of tangible personal property, other 11 than tangible personal property which is purchased outside 12 Illinois at retail from a retailer and which is titled or 13 registered by an agency of this State's government. 14 Beginning August 1, 2000, each month the Department shall 15 pay into the State and Local Sales Tax Reform Fund 100% of 16 the net revenue realized for the preceding month from the 17 1.25% rate on the selling price of motor fuel and gasohol. 18 Beginning January 1, 1990, each month the Department 19 shall pay into the Local Government Tax Fund 16% of the net 20 revenue realized for the preceding month from the 6.25% 21 general rate on the selling price of tangible personal 22 property which is purchased outside Illinois at retail from a 23 retailer and which is titled or registered by an agency of 24 this State's government. 25 Of the remainder of the moneys received by the Department 26 pursuant to this Act, (a) 1.75% thereof shall be paid into 27 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 28 and on and after July 1, 1989, 3.8% thereof shall be paid 29 into the Build Illinois Fund; provided, however, that if in 30 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 31 as the case may be, of the moneys received by the Department 32 and required to be paid into the Build Illinois Fund pursuant 33 to Section 3 of the Retailers' Occupation Tax Act, Section 9 34 of the Use Tax Act, Section 9 of the Service Use Tax Act, and HB1599 Enrolled -50- LRB9207178TAcs 1 Section 9 of the Service Occupation Tax Act, such Acts being 2 hereinafter called the "Tax Acts" and such aggregate of 2.2% 3 or 3.8%, as the case may be, of moneys being hereinafter 4 called the "Tax Act Amount", and (2) the amount transferred 5 to the Build Illinois Fund from the State and Local Sales Tax 6 Reform Fund shall be less than the Annual Specified Amount 7 (as defined in Section 3 of the Retailers' Occupation Tax 8 Act), an amount equal to the difference shall be immediately 9 paid into the Build Illinois Fund from other moneys received 10 by the Department pursuant to the Tax Acts; and further 11 provided, that if on the last business day of any month the 12 sum of (1) the Tax Act Amount required to be deposited into 13 the Build Illinois Bond Account in the Build Illinois Fund 14 during such month and (2) the amount transferred during such 15 month to the Build Illinois Fund from the State and Local 16 Sales Tax Reform Fund shall have been less than 1/12 of the 17 Annual Specified Amount, an amount equal to the difference 18 shall be immediately paid into the Build Illinois Fund from 19 other moneys received by the Department pursuant to the Tax 20 Acts; and, further provided, that in no event shall the 21 payments required under the preceding proviso result in 22 aggregate payments into the Build Illinois Fund pursuant to 23 this clause (b) for any fiscal year in excess of the greater 24 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 25 for such fiscal year; and, further provided, that the amounts 26 payable into the Build Illinois Fund under this clause (b) 27 shall be payable only until such time as the aggregate amount 28 on deposit under each trust indenture securing Bonds issued 29 and outstanding pursuant to the Build Illinois Bond Act is 30 sufficient, taking into account any future investment income, 31 to fully provide, in accordance with such indenture, for the 32 defeasance of or the payment of the principal of, premium, if 33 any, and interest on the Bonds secured by such indenture and 34 on any Bonds expected to be issued thereafter and all fees HB1599 Enrolled -51- LRB9207178TAcs 1 and costs payable with respect thereto, all as certified by 2 the Director of the Bureau of the Budget. If on the last 3 business day of any month in which Bonds are outstanding 4 pursuant to the Build Illinois Bond Act, the aggregate of the 5 moneys deposited in the Build Illinois Bond Account in the 6 Build Illinois Fund in such month shall be less than the 7 amount required to be transferred in such month from the 8 Build Illinois Bond Account to the Build Illinois Bond 9 Retirement and Interest Fund pursuant to Section 13 of the 10 Build Illinois Bond Act, an amount equal to such deficiency 11 shall be immediately paid from other moneys received by the 12 Department pursuant to the Tax Acts to the Build Illinois 13 Fund; provided, however, that any amounts paid to the Build 14 Illinois Fund in any fiscal year pursuant to this sentence 15 shall be deemed to constitute payments pursuant to clause (b) 16 of the preceding sentence and shall reduce the amount 17 otherwise payable for such fiscal year pursuant to clause (b) 18 of the preceding sentence. The moneys received by the 19 Department pursuant to this Act and required to be deposited 20 into the Build Illinois Fund are subject to the pledge, claim 21 and charge set forth in Section 12 of the Build Illinois Bond 22 Act. 23 Subject to payment of amounts into the Build Illinois 24 Fund as provided in the preceding paragraph or in any 25 amendment thereto hereafter enacted, the following specified 26 monthly installment of the amount requested in the 27 certificate of the Chairman of the Metropolitan Pier and 28 Exposition Authority provided under Section 8.25f of the 29 State Finance Act, but not in excess of the sums designated 30 as "Total Deposit", shall be deposited in the aggregate from 31 collections under Section 9 of the Use Tax Act, Section 9 of 32 the Service Use Tax Act, Section 9 of the Service Occupation 33 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 34 into the McCormick Place Expansion Project Fund in the HB1599 Enrolled -52- LRB9207178TAcs 1 specified fiscal years. 2 Fiscal Year Total Deposit 3 1993 $0 4 1994 53,000,000 5 1995 58,000,000 6 1996 61,000,000 7 1997 64,000,000 8 1998 68,000,000 9 1999 71,000,000 10 2000 75,000,000 11 2001 80,000,000 12 2002 84,000,000 13 2003 89,000,000 14 2004 93,000,000 15 2005 97,000,000 16 2006 102,000,000 17 2007 108,000,000 18 2008 115,000,000 19 2009 120,000,000 20 2010 126,000,000 21 2011 132,000,000 22 2012 138,000,000 23 2013 and 145,000,000 24 each fiscal year 25 thereafter that bonds 26 are outstanding under 27 Section 13.2 of the 28 Metropolitan Pier and 29 Exposition Authority 30 Act, but not after fiscal year 2029. 31 Beginning July 20, 1993 and in each month of each fiscal 32 year thereafter, one-eighth of the amount requested in the 33 certificate of the Chairman of the Metropolitan Pier and 34 Exposition Authority for that fiscal year, less the amount HB1599 Enrolled -53- LRB9207178TAcs 1 deposited into the McCormick Place Expansion Project Fund by 2 the State Treasurer in the respective month under subsection 3 (g) of Section 13 of the Metropolitan Pier and Exposition 4 Authority Act, plus cumulative deficiencies in the deposits 5 required under this Section for previous months and years, 6 shall be deposited into the McCormick Place Expansion Project 7 Fund, until the full amount requested for the fiscal year, 8 but not in excess of the amount specified above as "Total 9 Deposit", has been deposited. 10 Subject to payment of amounts into the Build Illinois 11 Fund and the McCormick Place Expansion Project Fund pursuant 12 to the preceding paragraphs or in any amendment thereto 13 hereafter enacted, each month the Department shall pay into 14 the Local Government Distributive Fund .4% of the net revenue 15 realized for the preceding month from the 5% general rate, or 16 .4% of 80% of the net revenue realized for the preceding 17 month from the 6.25% general rate, as the case may be, on the 18 selling price of tangible personal property which amount 19 shall, subject to appropriation, be distributed as provided 20 in Section 2 of the State Revenue Sharing Act. No payments or 21 distributions pursuant to this paragraph shall be made if the 22 tax imposed by this Act on photoprocessing products is 23 declared unconstitutional, or if the proceeds from such tax 24 are unavailable for distribution because of litigation. 25 Subject to payment of amounts into the Build Illinois 26 Fund, the McCormick Place Expansion Project Fund, and the 27 Local Government Distributive Fund pursuant to the preceding 28 paragraphs or in any amendments thereto hereafter enacted, 29 beginning July 1, 1993, the Department shall each month pay 30 into the Illinois Tax Increment Fund 0.27% of 80% of the net 31 revenue realized for the preceding month from the 6.25% 32 general rate on the selling price of tangible personal 33 property. 34 Subject to payment of amounts into the Build Illinois HB1599 Enrolled -54- LRB9207178TAcs 1 Fund, the McCormick Place Expansion Project Fund, and the 2 Local Government Distributive Fund pursuant to the preceding 3 paragraphs or in any amendments thereto hereafter enacted, 4 beginning with the receipt of the first report of taxes paid 5 by an eligible business and continuing for a 25-year period, 6 the Department shall each month pay into the Energy 7 Infrastructure Fund 80% of the net revenue realized from the 8 6.25% general rate on the selling price of Illinois-mined 9 coal that was sold to an eligible business. For purposes of 10 this paragraph, the term "eligible business" means a new 11 electric generating facility certified pursuant to Section 12 605-332 of the Department of Commerce and Community Affairs 13 Law of the Civil Administrative Code of Illinois. 14 Of the remainder of the moneys received by the Department 15 pursuant to this Act, 75% thereof shall be paid into the 16 State Treasury and 25% shall be reserved in a special account 17 and used only for the transfer to the Common School Fund as 18 part of the monthly transfer from the General Revenue Fund in 19 accordance with Section 8a of the State Finance Act. 20 As soon as possible after the first day of each month, 21 upon certification of the Department of Revenue, the 22 Comptroller shall order transferred and the Treasurer shall 23 transfer from the General Revenue Fund to the Motor Fuel Tax 24 Fund an amount equal to 1.7% of 80% of the net revenue 25 realized under this Act for the second preceding month. 26 Beginning April 1, 2000, this transfer is no longer required 27 and shall not be made. 28 Net revenue realized for a month shall be the revenue 29 collected by the State pursuant to this Act, less the amount 30 paid out during that month as refunds to taxpayers for 31 overpayment of liability. 32 For greater simplicity of administration, manufacturers, 33 importers and wholesalers whose products are sold at retail 34 in Illinois by numerous retailers, and who wish to do so, may HB1599 Enrolled -55- LRB9207178TAcs 1 assume the responsibility for accounting and paying to the 2 Department all tax accruing under this Act with respect to 3 such sales, if the retailers who are affected do not make 4 written objection to the Department to this arrangement. 5 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 6 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 7 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 8 eff. 1-1-01; revised 8-30-00.) 9 Section 925. The Service Use Tax Act is amended by 10 changing Section 9 as follows: 11 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 12 Sec. 9. Each serviceman required or authorized to 13 collect the tax herein imposed shall pay to the Department 14 the amount of such tax (except as otherwise provided) at the 15 time when he is required to file his return for the period 16 during which such tax was collected, less a discount of 2.1% 17 prior to January 1, 1990 and 1.75% on and after January 1, 18 1990, or $5 per calendar year, whichever is greater, which is 19 allowed to reimburse the serviceman for expenses incurred in 20 collecting the tax, keeping records, preparing and filing 21 returns, remitting the tax and supplying data to the 22 Department on request. A serviceman need not remit that part 23 of any tax collected by him to the extent that he is required 24 to pay and does pay the tax imposed by the Service Occupation 25 Tax Act with respect to his sale of service involving the 26 incidental transfer by him of the same property. 27 Except as provided hereinafter in this Section, on or 28 before the twentieth day of each calendar month, such 29 serviceman shall file a return for the preceding calendar 30 month in accordance with reasonable Rules and Regulations to 31 be promulgated by the Department. Such return shall be filed 32 on a form prescribed by the Department and shall contain such HB1599 Enrolled -56- LRB9207178TAcs 1 information as the Department may reasonably require. 2 The Department may require returns to be filed on a 3 quarterly basis. If so required, a return for each calendar 4 quarter shall be filed on or before the twentieth day of the 5 calendar month following the end of such calendar quarter. 6 The taxpayer shall also file a return with the Department for 7 each of the first two months of each calendar quarter, on or 8 before the twentieth day of the following calendar month, 9 stating: 10 1. The name of the seller; 11 2. The address of the principal place of business 12 from which he engages in business as a serviceman in this 13 State; 14 3. The total amount of taxable receipts received by 15 him during the preceding calendar month, including 16 receipts from charge and time sales, but less all 17 deductions allowed by law; 18 4. The amount of credit provided in Section 2d of 19 this Act; 20 5. The amount of tax due; 21 5-5. The signature of the taxpayer; and 22 6. Such other reasonable information as the 23 Department may require. 24 If a taxpayer fails to sign a return within 30 days after 25 the proper notice and demand for signature by the Department, 26 the return shall be considered valid and any amount shown to 27 be due on the return shall be deemed assessed. 28 Beginning October 1, 1993, a taxpayer who has an average 29 monthly tax liability of $150,000 or more shall make all 30 payments required by rules of the Department by electronic 31 funds transfer. Beginning October 1, 1994, a taxpayer who 32 has an average monthly tax liability of $100,000 or more 33 shall make all payments required by rules of the Department 34 by electronic funds transfer. Beginning October 1, 1995, a HB1599 Enrolled -57- LRB9207178TAcs 1 taxpayer who has an average monthly tax liability of $50,000 2 or more shall make all payments required by rules of the 3 Department by electronic funds transfer. Beginning October 1, 4 2000, a taxpayer who has an annual tax liability of $200,000 5 or more shall make all payments required by rules of the 6 Department by electronic funds transfer. The term "annual 7 tax liability" shall be the sum of the taxpayer's liabilities 8 under this Act, and under all other State and local 9 occupation and use tax laws administered by the Department, 10 for the immediately preceding calendar year. The term 11 "average monthly tax liability" means the sum of the 12 taxpayer's liabilities under this Act, and under all other 13 State and local occupation and use tax laws administered by 14 the Department, for the immediately preceding calendar year 15 divided by 12. 16 Before August 1 of each year beginning in 1993, the 17 Department shall notify all taxpayers required to make 18 payments by electronic funds transfer. All taxpayers required 19 to make payments by electronic funds transfer shall make 20 those payments for a minimum of one year beginning on October 21 1. 22 Any taxpayer not required to make payments by electronic 23 funds transfer may make payments by electronic funds transfer 24 with the permission of the Department. 25 All taxpayers required to make payment by electronic 26 funds transfer and any taxpayers authorized to voluntarily 27 make payments by electronic funds transfer shall make those 28 payments in the manner authorized by the Department. 29 The Department shall adopt such rules as are necessary to 30 effectuate a program of electronic funds transfer and the 31 requirements of this Section. 32 If the serviceman is otherwise required to file a monthly 33 return and if the serviceman's average monthly tax liability 34 to the Department does not exceed $200, the Department may HB1599 Enrolled -58- LRB9207178TAcs 1 authorize his returns to be filed on a quarter annual basis, 2 with the return for January, February and March of a given 3 year being due by April 20 of such year; with the return for 4 April, May and June of a given year being due by July 20 of 5 such year; with the return for July, August and September of 6 a given year being due by October 20 of such year, and with 7 the return for October, November and December of a given year 8 being due by January 20 of the following year. 9 If the serviceman is otherwise required to file a monthly 10 or quarterly return and if the serviceman's average monthly 11 tax liability to the Department does not exceed $50, the 12 Department may authorize his returns to be filed on an annual 13 basis, with the return for a given year being due by January 14 20 of the following year. 15 Such quarter annual and annual returns, as to form and 16 substance, shall be subject to the same requirements as 17 monthly returns. 18 Notwithstanding any other provision in this Act 19 concerning the time within which a serviceman may file his 20 return, in the case of any serviceman who ceases to engage in 21 a kind of business which makes him responsible for filing 22 returns under this Act, such serviceman shall file a final 23 return under this Act with the Department not more than 1 24 month after discontinuing such business. 25 Where a serviceman collects the tax with respect to the 26 selling price of property which he sells and the purchaser 27 thereafter returns such property and the serviceman refunds 28 the selling price thereof to the purchaser, such serviceman 29 shall also refund, to the purchaser, the tax so collected 30 from the purchaser. When filing his return for the period in 31 which he refunds such tax to the purchaser, the serviceman 32 may deduct the amount of the tax so refunded by him to the 33 purchaser from any other Service Use Tax, Service Occupation 34 Tax, retailers' occupation tax or use tax which such HB1599 Enrolled -59- LRB9207178TAcs 1 serviceman may be required to pay or remit to the Department, 2 as shown by such return, provided that the amount of the tax 3 to be deducted shall previously have been remitted to the 4 Department by such serviceman. If the serviceman shall not 5 previously have remitted the amount of such tax to the 6 Department, he shall be entitled to no deduction hereunder 7 upon refunding such tax to the purchaser. 8 Any serviceman filing a return hereunder shall also 9 include the total tax upon the selling price of tangible 10 personal property purchased for use by him as an incident to 11 a sale of service, and such serviceman shall remit the amount 12 of such tax to the Department when filing such return. 13 If experience indicates such action to be practicable, 14 the Department may prescribe and furnish a combination or 15 joint return which will enable servicemen, who are required 16 to file returns hereunder and also under the Service 17 Occupation Tax Act, to furnish all the return information 18 required by both Acts on the one form. 19 Where the serviceman has more than one business 20 registered with the Department under separate registration 21 hereunder, such serviceman shall not file each return that is 22 due as a single return covering all such registered 23 businesses, but shall file separate returns for each such 24 registered business. 25 Beginning January 1, 1990, each month the Department 26 shall pay into the State and Local Tax Reform Fund, a special 27 fund in the State Treasury, the net revenue realized for the 28 preceding month from the 1% tax on sales of food for human 29 consumption which is to be consumed off the premises where it 30 is sold (other than alcoholic beverages, soft drinks and food 31 which has been prepared for immediate consumption) and 32 prescription and nonprescription medicines, drugs, medical 33 appliances and insulin, urine testing materials, syringes and 34 needles used by diabetics. HB1599 Enrolled -60- LRB9207178TAcs 1 Beginning January 1, 1990, each month the Department 2 shall pay into the State and Local Sales Tax Reform Fund 20% 3 of the net revenue realized for the preceding month from the 4 6.25% general rate on transfers of tangible personal 5 property, other than tangible personal property which is 6 purchased outside Illinois at retail from a retailer and 7 which is titled or registered by an agency of this State's 8 government. 9 Beginning August 1, 2000, each month the Department shall 10 pay into the State and Local Sales Tax Reform Fund 100% of 11 the net revenue realized for the preceding month from the 12 1.25% rate on the selling price of motor fuel and gasohol. 13 Of the remainder of the moneys received by the Department 14 pursuant to this Act, (a) 1.75% thereof shall be paid into 15 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 16 and on and after July 1, 1989, 3.8% thereof shall be paid 17 into the Build Illinois Fund; provided, however, that if in 18 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 19 as the case may be, of the moneys received by the Department 20 and required to be paid into the Build Illinois Fund pursuant 21 to Section 3 of the Retailers' Occupation Tax Act, Section 9 22 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 23 Section 9 of the Service Occupation Tax Act, such Acts being 24 hereinafter called the "Tax Acts" and such aggregate of 2.2% 25 or 3.8%, as the case may be, of moneys being hereinafter 26 called the "Tax Act Amount", and (2) the amount transferred 27 to the Build Illinois Fund from the State and Local Sales Tax 28 Reform Fund shall be less than the Annual Specified Amount 29 (as defined in Section 3 of the Retailers' Occupation Tax 30 Act), an amount equal to the difference shall be immediately 31 paid into the Build Illinois Fund from other moneys received 32 by the Department pursuant to the Tax Acts; and further 33 provided, that if on the last business day of any month the 34 sum of (1) the Tax Act Amount required to be deposited into HB1599 Enrolled -61- LRB9207178TAcs 1 the Build Illinois Bond Account in the Build Illinois Fund 2 during such month and (2) the amount transferred during such 3 month to the Build Illinois Fund from the State and Local 4 Sales Tax Reform Fund shall have been less than 1/12 of the 5 Annual Specified Amount, an amount equal to the difference 6 shall be immediately paid into the Build Illinois Fund from 7 other moneys received by the Department pursuant to the Tax 8 Acts; and, further provided, that in no event shall the 9 payments required under the preceding proviso result in 10 aggregate payments into the Build Illinois Fund pursuant to 11 this clause (b) for any fiscal year in excess of the greater 12 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 13 for such fiscal year; and, further provided, that the amounts 14 payable into the Build Illinois Fund under this clause (b) 15 shall be payable only until such time as the aggregate amount 16 on deposit under each trust indenture securing Bonds issued 17 and outstanding pursuant to the Build Illinois Bond Act is 18 sufficient, taking into account any future investment income, 19 to fully provide, in accordance with such indenture, for the 20 defeasance of or the payment of the principal of, premium, if 21 any, and interest on the Bonds secured by such indenture and 22 on any Bonds expected to be issued thereafter and all fees 23 and costs payable with respect thereto, all as certified by 24 the Director of the Bureau of the Budget. If on the last 25 business day of any month in which Bonds are outstanding 26 pursuant to the Build Illinois Bond Act, the aggregate of the 27 moneys deposited in the Build Illinois Bond Account in the 28 Build Illinois Fund in such month shall be less than the 29 amount required to be transferred in such month from the 30 Build Illinois Bond Account to the Build Illinois Bond 31 Retirement and Interest Fund pursuant to Section 13 of the 32 Build Illinois Bond Act, an amount equal to such deficiency 33 shall be immediately paid from other moneys received by the 34 Department pursuant to the Tax Acts to the Build Illinois HB1599 Enrolled -62- LRB9207178TAcs 1 Fund; provided, however, that any amounts paid to the Build 2 Illinois Fund in any fiscal year pursuant to this sentence 3 shall be deemed to constitute payments pursuant to clause (b) 4 of the preceding sentence and shall reduce the amount 5 otherwise payable for such fiscal year pursuant to clause (b) 6 of the preceding sentence. The moneys received by the 7 Department pursuant to this Act and required to be deposited 8 into the Build Illinois Fund are subject to the pledge, claim 9 and charge set forth in Section 12 of the Build Illinois Bond 10 Act. 11 Subject to payment of amounts into the Build Illinois 12 Fund as provided in the preceding paragraph or in any 13 amendment thereto hereafter enacted, the following specified 14 monthly installment of the amount requested in the 15 certificate of the Chairman of the Metropolitan Pier and 16 Exposition Authority provided under Section 8.25f of the 17 State Finance Act, but not in excess of the sums designated 18 as "Total Deposit", shall be deposited in the aggregate from 19 collections under Section 9 of the Use Tax Act, Section 9 of 20 the Service Use Tax Act, Section 9 of the Service Occupation 21 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 22 into the McCormick Place Expansion Project Fund in the 23 specified fiscal years. 24 Fiscal Year Total Deposit 25 1993 $0 26 1994 53,000,000 27 1995 58,000,000 28 1996 61,000,000 29 1997 64,000,000 30 1998 68,000,000 31 1999 71,000,000 32 2000 75,000,000 33 2001 80,000,000 34 2002 84,000,000 HB1599 Enrolled -63- LRB9207178TAcs 1 2003 89,000,000 2 2004 93,000,000 3 2005 97,000,000 4 2006 102,000,000 5 2007 108,000,000 6 2008 115,000,000 7 2009 120,000,000 8 2010 126,000,000 9 2011 132,000,000 10 2012 138,000,000 11 2013 and 145,000,000 12 each fiscal year 13 thereafter that bonds 14 are outstanding under 15 Section 13.2 of the 16 Metropolitan Pier and 17 Exposition Authority Act, 18 but not after fiscal year 2029. 19 Beginning July 20, 1993 and in each month of each fiscal 20 year thereafter, one-eighth of the amount requested in the 21 certificate of the Chairman of the Metropolitan Pier and 22 Exposition Authority for that fiscal year, less the amount 23 deposited into the McCormick Place Expansion Project Fund by 24 the State Treasurer in the respective month under subsection 25 (g) of Section 13 of the Metropolitan Pier and Exposition 26 Authority Act, plus cumulative deficiencies in the deposits 27 required under this Section for previous months and years, 28 shall be deposited into the McCormick Place Expansion Project 29 Fund, until the full amount requested for the fiscal year, 30 but not in excess of the amount specified above as "Total 31 Deposit", has been deposited. 32 Subject to payment of amounts into the Build Illinois 33 Fund and the McCormick Place Expansion Project Fund pursuant 34 to the preceding paragraphs or in any amendment thereto HB1599 Enrolled -64- LRB9207178TAcs 1 hereafter enacted, each month the Department shall pay into 2 the Local Government Distributive Fund 0.4% of the net 3 revenue realized for the preceding month from the 5% general 4 rate or 0.4% of 80% of the net revenue realized for the 5 preceding month from the 6.25% general rate, as the case may 6 be, on the selling price of tangible personal property which 7 amount shall, subject to appropriation, be distributed as 8 provided in Section 2 of the State Revenue Sharing Act. No 9 payments or distributions pursuant to this paragraph shall be 10 made if the tax imposed by this Act on photo processing 11 products is declared unconstitutional, or if the proceeds 12 from such tax are unavailable for distribution because of 13 litigation. 14 Subject to payment of amounts into the Build Illinois 15 Fund, the McCormick Place Expansion Project Fund, and the 16 Local Government Distributive Fund pursuant to the preceding 17 paragraphs or in any amendments thereto hereafter enacted, 18 beginning July 1, 1993, the Department shall each month pay 19 into the Illinois Tax Increment Fund 0.27% of 80% of the net 20 revenue realized for the preceding month from the 6.25% 21 general rate on the selling price of tangible personal 22 property. 23 Subject to payment of amounts into the Build Illinois 24 Fund, the McCormick Place Expansion Project Fund, and the 25 Local Government Distributive Fund pursuant to the preceding 26 paragraphs or in any amendments thereto hereafter enacted, 27 beginning with the receipt of the first report of taxes paid 28 by an eligible business and continuing for a 25-year period, 29 the Department shall each month pay into the Energy 30 Infrastructure Fund 80% of the net revenue realized from the 31 6.25% general rate on the selling price of Illinois-mined 32 coal that was sold to an eligible business. For purposes of 33 this paragraph, the term "eligible business" means a new 34 electric generating facility certified pursuant to Section HB1599 Enrolled -65- LRB9207178TAcs 1 605-332 of the Department of Commerce and Community Affairs 2 Law of the Civil Administrative Code of Illinois. 3 All remaining moneys received by the Department pursuant 4 to this Act shall be paid into the General Revenue Fund of 5 the State Treasury. 6 As soon as possible after the first day of each month, 7 upon certification of the Department of Revenue, the 8 Comptroller shall order transferred and the Treasurer shall 9 transfer from the General Revenue Fund to the Motor Fuel Tax 10 Fund an amount equal to 1.7% of 80% of the net revenue 11 realized under this Act for the second preceding month. 12 Beginning April 1, 2000, this transfer is no longer required 13 and shall not be made. 14 Net revenue realized for a month shall be the revenue 15 collected by the State pursuant to this Act, less the amount 16 paid out during that month as refunds to taxpayers for 17 overpayment of liability. 18 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 19 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 20 91-872, eff. 7-1-00.) 21 Section 930. The Service Occupation Tax Act is amended 22 by changing Section 9 as follows: 23 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 24 Sec. 9. Each serviceman required or authorized to 25 collect the tax herein imposed shall pay to the Department 26 the amount of such tax at the time when he is required to 27 file his return for the period during which such tax was 28 collectible, less a discount of 2.1% prior to January 1, 29 1990, and 1.75% on and after January 1, 1990, or $5 per 30 calendar year, whichever is greater, which is allowed to 31 reimburse the serviceman for expenses incurred in collecting 32 the tax, keeping records, preparing and filing returns, HB1599 Enrolled -66- LRB9207178TAcs 1 remitting the tax and supplying data to the Department on 2 request. 3 Where such tangible personal property is sold under a 4 conditional sales contract, or under any other form of sale 5 wherein the payment of the principal sum, or a part thereof, 6 is extended beyond the close of the period for which the 7 return is filed, the serviceman, in collecting the tax may 8 collect, for each tax return period, only the tax applicable 9 to the part of the selling price actually received during 10 such tax return period. 11 Except as provided hereinafter in this Section, on or 12 before the twentieth day of each calendar month, such 13 serviceman shall file a return for the preceding calendar 14 month in accordance with reasonable rules and regulations to 15 be promulgated by the Department of Revenue. Such return 16 shall be filed on a form prescribed by the Department and 17 shall contain such information as the Department may 18 reasonably require. 19 The Department may require returns to be filed on a 20 quarterly basis. If so required, a return for each calendar 21 quarter shall be filed on or before the twentieth day of the 22 calendar month following the end of such calendar quarter. 23 The taxpayer shall also file a return with the Department for 24 each of the first two months of each calendar quarter, on or 25 before the twentieth day of the following calendar month, 26 stating: 27 1. The name of the seller; 28 2. The address of the principal place of business 29 from which he engages in business as a serviceman in this 30 State; 31 3. The total amount of taxable receipts received by 32 him during the preceding calendar month, including 33 receipts from charge and time sales, but less all 34 deductions allowed by law; HB1599 Enrolled -67- LRB9207178TAcs 1 4. The amount of credit provided in Section 2d of 2 this Act; 3 5. The amount of tax due; 4 5-5. The signature of the taxpayer; and 5 6. Such other reasonable information as the 6 Department may require. 7 If a taxpayer fails to sign a return within 30 days after 8 the proper notice and demand for signature by the Department, 9 the return shall be considered valid and any amount shown to 10 be due on the return shall be deemed assessed. 11 A serviceman may accept a Manufacturer's Purchase Credit 12 certification from a purchaser in satisfaction of Service Use 13 Tax as provided in Section 3-70 of the Service Use Tax Act if 14 the purchaser provides the appropriate documentation as 15 required by Section 3-70 of the Service Use Tax Act. A 16 Manufacturer's Purchase Credit certification, accepted by a 17 serviceman as provided in Section 3-70 of the Service Use Tax 18 Act, may be used by that serviceman to satisfy Service 19 Occupation Tax liability in the amount claimed in the 20 certification, not to exceed 6.25% of the receipts subject to 21 tax from a qualifying purchase. 22 If the serviceman's average monthly tax liability to the 23 Department does not exceed $200, the Department may authorize 24 his returns to be filed on a quarter annual basis, with the 25 return for January, February and March of a given year being 26 due by April 20 of such year; with the return for April, May 27 and June of a given year being due by July 20 of such year; 28 with the return for July, August and September of a given 29 year being due by October 20 of such year, and with the 30 return for October, November and December of a given year 31 being due by January 20 of the following year. 32 If the serviceman's average monthly tax liability to the 33 Department does not exceed $50, the Department may authorize 34 his returns to be filed on an annual basis, with the return HB1599 Enrolled -68- LRB9207178TAcs 1 for a given year being due by January 20 of the following 2 year. 3 Such quarter annual and annual returns, as to form and 4 substance, shall be subject to the same requirements as 5 monthly returns. 6 Notwithstanding any other provision in this Act 7 concerning the time within which a serviceman may file his 8 return, in the case of any serviceman who ceases to engage in 9 a kind of business which makes him responsible for filing 10 returns under this Act, such serviceman shall file a final 11 return under this Act with the Department not more than 1 12 month after discontinuing such business. 13 Beginning October 1, 1993, a taxpayer who has an average 14 monthly tax liability of $150,000 or more shall make all 15 payments required by rules of the Department by electronic 16 funds transfer. Beginning October 1, 1994, a taxpayer who 17 has an average monthly tax liability of $100,000 or more 18 shall make all payments required by rules of the Department 19 by electronic funds transfer. Beginning October 1, 1995, a 20 taxpayer who has an average monthly tax liability of $50,000 21 or more shall make all payments required by rules of the 22 Department by electronic funds transfer. Beginning October 23 1, 2000, a taxpayer who has an annual tax liability of 24 $200,000 or more shall make all payments required by rules of 25 the Department by electronic funds transfer. The term 26 "annual tax liability" shall be the sum of the taxpayer's 27 liabilities under this Act, and under all other State and 28 local occupation and use tax laws administered by the 29 Department, for the immediately preceding calendar year. The 30 term "average monthly tax liability" means the sum of the 31 taxpayer's liabilities under this Act, and under all other 32 State and local occupation and use tax laws administered by 33 the Department, for the immediately preceding calendar year 34 divided by 12. HB1599 Enrolled -69- LRB9207178TAcs 1 Before August 1 of each year beginning in 1993, the 2 Department shall notify all taxpayers required to make 3 payments by electronic funds transfer. All taxpayers 4 required to make payments by electronic funds transfer shall 5 make those payments for a minimum of one year beginning on 6 October 1. 7 Any taxpayer not required to make payments by electronic 8 funds transfer may make payments by electronic funds transfer 9 with the permission of the Department. 10 All taxpayers required to make payment by electronic 11 funds transfer and any taxpayers authorized to voluntarily 12 make payments by electronic funds transfer shall make those 13 payments in the manner authorized by the Department. 14 The Department shall adopt such rules as are necessary to 15 effectuate a program of electronic funds transfer and the 16 requirements of this Section. 17 Where a serviceman collects the tax with respect to the 18 selling price of tangible personal property which he sells 19 and the purchaser thereafter returns such tangible personal 20 property and the serviceman refunds the selling price thereof 21 to the purchaser, such serviceman shall also refund, to the 22 purchaser, the tax so collected from the purchaser. When 23 filing his return for the period in which he refunds such tax 24 to the purchaser, the serviceman may deduct the amount of the 25 tax so refunded by him to the purchaser from any other 26 Service Occupation Tax, Service Use Tax, Retailers' 27 Occupation Tax or Use Tax which such serviceman may be 28 required to pay or remit to the Department, as shown by such 29 return, provided that the amount of the tax to be deducted 30 shall previously have been remitted to the Department by such 31 serviceman. If the serviceman shall not previously have 32 remitted the amount of such tax to the Department, he shall 33 be entitled to no deduction hereunder upon refunding such tax 34 to the purchaser. HB1599 Enrolled -70- LRB9207178TAcs 1 If experience indicates such action to be practicable, 2 the Department may prescribe and furnish a combination or 3 joint return which will enable servicemen, who are required 4 to file returns hereunder and also under the Retailers' 5 Occupation Tax Act, the Use Tax Act or the Service Use Tax 6 Act, to furnish all the return information required by all 7 said Acts on the one form. 8 Where the serviceman has more than one business 9 registered with the Department under separate registrations 10 hereunder, such serviceman shall file separate returns for 11 each registered business. 12 Beginning January 1, 1990, each month the Department 13 shall pay into the Local Government Tax Fund the revenue 14 realized for the preceding month from the 1% tax on sales of 15 food for human consumption which is to be consumed off the 16 premises where it is sold (other than alcoholic beverages, 17 soft drinks and food which has been prepared for immediate 18 consumption) and prescription and nonprescription medicines, 19 drugs, medical appliances and insulin, urine testing 20 materials, syringes and needles used by diabetics. 21 Beginning January 1, 1990, each month the Department 22 shall pay into the County and Mass Transit District Fund 4% 23 of the revenue realized for the preceding month from the 24 6.25% general rate. 25 Beginning August 1, 2000, each month the Department shall 26 pay into the County and Mass Transit District Fund 20% of the 27 net revenue realized for the preceding month from the 1.25% 28 rate on the selling price of motor fuel and gasohol. 29 Beginning January 1, 1990, each month the Department 30 shall pay into the Local Government Tax Fund 16% of the 31 revenue realized for the preceding month from the 6.25% 32 general rate on transfers of tangible personal property. 33 Beginning August 1, 2000, each month the Department shall 34 pay into the Local Government Tax Fund 80% of the net revenue HB1599 Enrolled -71- LRB9207178TAcs 1 realized for the preceding month from the 1.25% rate on the 2 selling price of motor fuel and gasohol. 3 Of the remainder of the moneys received by the Department 4 pursuant to this Act, (a) 1.75% thereof shall be paid into 5 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 6 and on and after July 1, 1989, 3.8% thereof shall be paid 7 into the Build Illinois Fund; provided, however, that if in 8 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 9 as the case may be, of the moneys received by the Department 10 and required to be paid into the Build Illinois Fund pursuant 11 to Section 3 of the Retailers' Occupation Tax Act, Section 9 12 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 13 Section 9 of the Service Occupation Tax Act, such Acts being 14 hereinafter called the "Tax Acts" and such aggregate of 2.2% 15 or 3.8%, as the case may be, of moneys being hereinafter 16 called the "Tax Act Amount", and (2) the amount transferred 17 to the Build Illinois Fund from the State and Local Sales Tax 18 Reform Fund shall be less than the Annual Specified Amount 19 (as defined in Section 3 of the Retailers' Occupation Tax 20 Act), an amount equal to the difference shall be immediately 21 paid into the Build Illinois Fund from other moneys received 22 by the Department pursuant to the Tax Acts; and further 23 provided, that if on the last business day of any month the 24 sum of (1) the Tax Act Amount required to be deposited into 25 the Build Illinois Account in the Build Illinois Fund during 26 such month and (2) the amount transferred during such month 27 to the Build Illinois Fund from the State and Local Sales Tax 28 Reform Fund shall have been less than 1/12 of the Annual 29 Specified Amount, an amount equal to the difference shall be 30 immediately paid into the Build Illinois Fund from other 31 moneys received by the Department pursuant to the Tax Acts; 32 and, further provided, that in no event shall the payments 33 required under the preceding proviso result in aggregate 34 payments into the Build Illinois Fund pursuant to this clause HB1599 Enrolled -72- LRB9207178TAcs 1 (b) for any fiscal year in excess of the greater of (i) the 2 Tax Act Amount or (ii) the Annual Specified Amount for such 3 fiscal year; and, further provided, that the amounts payable 4 into the Build Illinois Fund under this clause (b) shall be 5 payable only until such time as the aggregate amount on 6 deposit under each trust indenture securing Bonds issued and 7 outstanding pursuant to the Build Illinois Bond Act is 8 sufficient, taking into account any future investment income, 9 to fully provide, in accordance with such indenture, for the 10 defeasance of or the payment of the principal of, premium, if 11 any, and interest on the Bonds secured by such indenture and 12 on any Bonds expected to be issued thereafter and all fees 13 and costs payable with respect thereto, all as certified by 14 the Director of the Bureau of the Budget. If on the last 15 business day of any month in which Bonds are outstanding 16 pursuant to the Build Illinois Bond Act, the aggregate of the 17 moneys deposited in the Build Illinois Bond Account in the 18 Build Illinois Fund in such month shall be less than the 19 amount required to be transferred in such month from the 20 Build Illinois Bond Account to the Build Illinois Bond 21 Retirement and Interest Fund pursuant to Section 13 of the 22 Build Illinois Bond Act, an amount equal to such deficiency 23 shall be immediately paid from other moneys received by the 24 Department pursuant to the Tax Acts to the Build Illinois 25 Fund; provided, however, that any amounts paid to the Build 26 Illinois Fund in any fiscal year pursuant to this sentence 27 shall be deemed to constitute payments pursuant to clause (b) 28 of the preceding sentence and shall reduce the amount 29 otherwise payable for such fiscal year pursuant to clause (b) 30 of the preceding sentence. The moneys received by the 31 Department pursuant to this Act and required to be deposited 32 into the Build Illinois Fund are subject to the pledge, claim 33 and charge set forth in Section 12 of the Build Illinois Bond 34 Act. HB1599 Enrolled -73- LRB9207178TAcs 1 Subject to payment of amounts into the Build Illinois 2 Fund as provided in the preceding paragraph or in any 3 amendment thereto hereafter enacted, the following specified 4 monthly installment of the amount requested in the 5 certificate of the Chairman of the Metropolitan Pier and 6 Exposition Authority provided under Section 8.25f of the 7 State Finance Act, but not in excess of the sums designated 8 as "Total Deposit", shall be deposited in the aggregate from 9 collections under Section 9 of the Use Tax Act, Section 9 of 10 the Service Use Tax Act, Section 9 of the Service Occupation 11 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 12 into the McCormick Place Expansion Project Fund in the 13 specified fiscal years. 14 Fiscal Year Total Deposit 15 1993 $0 16 1994 53,000,000 17 1995 58,000,000 18 1996 61,000,000 19 1997 64,000,000 20 1998 68,000,000 21 1999 71,000,000 22 2000 75,000,000 23 2001 80,000,000 24 2002 84,000,000 25 2003 89,000,000 26 2004 93,000,000 27 2005 97,000,000 28 2006 102,000,000 29 2007 108,000,000 30 2008 115,000,000 31 2009 120,000,000 32 2010 126,000,000 33 2011 132,000,000 34 2012 138,000,000 HB1599 Enrolled -74- LRB9207178TAcs 1 2013 and 145,000,000 2 each fiscal year 3 thereafter that bonds 4 are outstanding under 5 Section 13.2 of the 6 Metropolitan Pier and 7 Exposition Authority 8 Act, but not after fiscal year 2029. 9 Beginning July 20, 1993 and in each month of each fiscal 10 year thereafter, one-eighth of the amount requested in the 11 certificate of the Chairman of the Metropolitan Pier and 12 Exposition Authority for that fiscal year, less the amount 13 deposited into the McCormick Place Expansion Project Fund by 14 the State Treasurer in the respective month under subsection 15 (g) of Section 13 of the Metropolitan Pier and Exposition 16 Authority Act, plus cumulative deficiencies in the deposits 17 required under this Section for previous months and years, 18 shall be deposited into the McCormick Place Expansion Project 19 Fund, until the full amount requested for the fiscal year, 20 but not in excess of the amount specified above as "Total 21 Deposit", has been deposited. 22 Subject to payment of amounts into the Build Illinois 23 Fund and the McCormick Place Expansion Project Fund pursuant 24 to the preceding paragraphs or in any amendment thereto 25 hereafter enacted, each month the Department shall pay into 26 the Local Government Distributive Fund 0.4% of the net 27 revenue realized for the preceding month from the 5% general 28 rate or 0.4% of 80% of the net revenue realized for the 29 preceding month from the 6.25% general rate, as the case may 30 be, on the selling price of tangible personal property which 31 amount shall, subject to appropriation, be distributed as 32 provided in Section 2 of the State Revenue Sharing Act. No 33 payments or distributions pursuant to this paragraph shall be 34 made if the tax imposed by this Act on photoprocessing HB1599 Enrolled -75- LRB9207178TAcs 1 products is declared unconstitutional, or if the proceeds 2 from such tax are unavailable for distribution because of 3 litigation. 4 Subject to payment of amounts into the Build Illinois 5 Fund, the McCormick Place Expansion Project Fund, and the 6 Local Government Distributive Fund pursuant to the preceding 7 paragraphs or in any amendments thereto hereafter enacted, 8 beginning July 1, 1993, the Department shall each month pay 9 into the Illinois Tax Increment Fund 0.27% of 80% of the net 10 revenue realized for the preceding month from the 6.25% 11 general rate on the selling price of tangible personal 12 property. 13 Subject to payment of amounts into the Build Illinois 14 Fund, the McCormick Place Expansion Project Fund, and the 15 Local Government Distributive Fund pursuant to the preceding 16 paragraphs or in any amendments thereto hereafter enacted, 17 beginning with the receipt of the first report of taxes paid 18 by an eligible business and continuing for a 25-year period, 19 the Department shall each month pay into the Energy 20 Infrastructure Fund 80% of the net revenue realized from the 21 6.25% general rate on the selling price of Illinois-mined 22 coal that was sold to an eligible business. For purposes of 23 this paragraph, the term "eligible business" means a new 24 electric generating facility certified pursuant to Section 25 605-332 of the Department of Commerce and Community Affairs 26 Law of the Civil Administrative Code of Illinois. 27 Remaining moneys received by the Department pursuant to 28 this Act shall be paid into the General Revenue Fund of the 29 State Treasury. 30 The Department may, upon separate written notice to a 31 taxpayer, require the taxpayer to prepare and file with the 32 Department on a form prescribed by the Department within not 33 less than 60 days after receipt of the notice an annual 34 information return for the tax year specified in the notice. HB1599 Enrolled -76- LRB9207178TAcs 1 Such annual return to the Department shall include a 2 statement of gross receipts as shown by the taxpayer's last 3 Federal income tax return. If the total receipts of the 4 business as reported in the Federal income tax return do not 5 agree with the gross receipts reported to the Department of 6 Revenue for the same period, the taxpayer shall attach to his 7 annual return a schedule showing a reconciliation of the 2 8 amounts and the reasons for the difference. The taxpayer's 9 annual return to the Department shall also disclose the cost 10 of goods sold by the taxpayer during the year covered by such 11 return, opening and closing inventories of such goods for 12 such year, cost of goods used from stock or taken from stock 13 and given away by the taxpayer during such year, pay roll 14 information of the taxpayer's business during such year and 15 any additional reasonable information which the Department 16 deems would be helpful in determining the accuracy of the 17 monthly, quarterly or annual returns filed by such taxpayer 18 as hereinbefore provided for in this Section. 19 If the annual information return required by this Section 20 is not filed when and as required, the taxpayer shall be 21 liable as follows: 22 (i) Until January 1, 1994, the taxpayer shall be 23 liable for a penalty equal to 1/6 of 1% of the tax due 24 from such taxpayer under this Act during the period to be 25 covered by the annual return for each month or fraction 26 of a month until such return is filed as required, the 27 penalty to be assessed and collected in the same manner 28 as any other penalty provided for in this Act. 29 (ii) On and after January 1, 1994, the taxpayer 30 shall be liable for a penalty as described in Section 3-4 31 of the Uniform Penalty and Interest Act. 32 The chief executive officer, proprietor, owner or highest 33 ranking manager shall sign the annual return to certify the 34 accuracy of the information contained therein. Any person HB1599 Enrolled -77- LRB9207178TAcs 1 who willfully signs the annual return containing false or 2 inaccurate information shall be guilty of perjury and 3 punished accordingly. The annual return form prescribed by 4 the Department shall include a warning that the person 5 signing the return may be liable for perjury. 6 The foregoing portion of this Section concerning the 7 filing of an annual information return shall not apply to a 8 serviceman who is not required to file an income tax return 9 with the United States Government. 10 As soon as possible after the first day of each month, 11 upon certification of the Department of Revenue, the 12 Comptroller shall order transferred and the Treasurer shall 13 transfer from the General Revenue Fund to the Motor Fuel Tax 14 Fund an amount equal to 1.7% of 80% of the net revenue 15 realized under this Act for the second preceding month. 16 Beginning April 1, 2000, this transfer is no longer required 17 and shall not be made. 18 Net revenue realized for a month shall be the revenue 19 collected by the State pursuant to this Act, less the amount 20 paid out during that month as refunds to taxpayers for 21 overpayment of liability. 22 For greater simplicity of administration, it shall be 23 permissible for manufacturers, importers and wholesalers 24 whose products are sold by numerous servicemen in Illinois, 25 and who wish to do so, to assume the responsibility for 26 accounting and paying to the Department all tax accruing 27 under this Act with respect to such sales, if the servicemen 28 who are affected do not make written objection to the 29 Department to this arrangement. 30 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 31 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 32 91-872, eff. 7-1-00.) 33 Section 935. The Retailers' Occupation Tax Act is HB1599 Enrolled -78- LRB9207178TAcs 1 amended by changing Section 3 as follows: 2 (35 ILCS 120/3) (from Ch. 120, par. 442) 3 Sec. 3. Except as provided in this Section, on or before 4 the twentieth day of each calendar month, every person 5 engaged in the business of selling tangible personal property 6 at retail in this State during the preceding calendar month 7 shall file a return with the Department, stating: 8 1. The name of the seller; 9 2. His residence address and the address of his 10 principal place of business and the address of the 11 principal place of business (if that is a different 12 address) from which he engages in the business of selling 13 tangible personal property at retail in this State; 14 3. Total amount of receipts received by him during 15 the preceding calendar month or quarter, as the case may 16 be, from sales of tangible personal property, and from 17 services furnished, by him during such preceding calendar 18 month or quarter; 19 4. Total amount received by him during the 20 preceding calendar month or quarter on charge and time 21 sales of tangible personal property, and from services 22 furnished, by him prior to the month or quarter for which 23 the return is filed; 24 5. Deductions allowed by law; 25 6. Gross receipts which were received by him during 26 the preceding calendar month or quarter and upon the 27 basis of which the tax is imposed; 28 7. The amount of credit provided in Section 2d of 29 this Act; 30 8. The amount of tax due; 31 9. The signature of the taxpayer; and 32 10. Such other reasonable information as the 33 Department may require. HB1599 Enrolled -79- LRB9207178TAcs 1 If a taxpayer fails to sign a return within 30 days after 2 the proper notice and demand for signature by the Department, 3 the return shall be considered valid and any amount shown to 4 be due on the return shall be deemed assessed. 5 Each return shall be accompanied by the statement of 6 prepaid tax issued pursuant to Section 2e for which credit is 7 claimed. 8 A retailer may accept a Manufacturer's Purchase Credit 9 certification from a purchaser in satisfaction of Use Tax as 10 provided in Section 3-85 of the Use Tax Act if the purchaser 11 provides the appropriate documentation as required by Section 12 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 13 certification, accepted by a retailer as provided in Section 14 3-85 of the Use Tax Act, may be used by that retailer to 15 satisfy Retailers' Occupation Tax liability in the amount 16 claimed in the certification, not to exceed 6.25% of the 17 receipts subject to tax from a qualifying purchase. 18 The Department may require returns to be filed on a 19 quarterly basis. If so required, a return for each calendar 20 quarter shall be filed on or before the twentieth day of the 21 calendar month following the end of such calendar quarter. 22 The taxpayer shall also file a return with the Department for 23 each of the first two months of each calendar quarter, on or 24 before the twentieth day of the following calendar month, 25 stating: 26 1. The name of the seller; 27 2. The address of the principal place of business 28 from which he engages in the business of selling tangible 29 personal property at retail in this State; 30 3. The total amount of taxable receipts received by 31 him during the preceding calendar month from sales of 32 tangible personal property by him during such preceding 33 calendar month, including receipts from charge and time 34 sales, but less all deductions allowed by law; HB1599 Enrolled -80- LRB9207178TAcs 1 4. The amount of credit provided in Section 2d of 2 this Act; 3 5. The amount of tax due; and 4 6. Such other reasonable information as the 5 Department may require. 6 If a total amount of less than $1 is payable, refundable 7 or creditable, such amount shall be disregarded if it is less 8 than 50 cents and shall be increased to $1 if it is 50 cents 9 or more. 10 Beginning October 1, 1993, a taxpayer who has an average 11 monthly tax liability of $150,000 or more shall make all 12 payments required by rules of the Department by electronic 13 funds transfer. Beginning October 1, 1994, a taxpayer who 14 has an average monthly tax liability of $100,000 or more 15 shall make all payments required by rules of the Department 16 by electronic funds transfer. Beginning October 1, 1995, a 17 taxpayer who has an average monthly tax liability of $50,000 18 or more shall make all payments required by rules of the 19 Department by electronic funds transfer. Beginning October 20 1, 2000, a taxpayer who has an annual tax liability of 21 $200,000 or more shall make all payments required by rules of 22 the Department by electronic funds transfer. The term 23 "annual tax liability" shall be the sum of the taxpayer's 24 liabilities under this Act, and under all other State and 25 local occupation and use tax laws administered by the 26 Department, for the immediately preceding calendar year. The 27 term "average monthly tax liability" shall be the sum of the 28 taxpayer's liabilities under this Act, and under all other 29 State and local occupation and use tax laws administered by 30 the Department, for the immediately preceding calendar year 31 divided by 12. 32 Before August 1 of each year beginning in 1993, the 33 Department shall notify all taxpayers required to make 34 payments by electronic funds transfer. All taxpayers HB1599 Enrolled -81- LRB9207178TAcs 1 required to make payments by electronic funds transfer shall 2 make those payments for a minimum of one year beginning on 3 October 1. 4 Any taxpayer not required to make payments by electronic 5 funds transfer may make payments by electronic funds transfer 6 with the permission of the Department. 7 All taxpayers required to make payment by electronic 8 funds transfer and any taxpayers authorized to voluntarily 9 make payments by electronic funds transfer shall make those 10 payments in the manner authorized by the Department. 11 The Department shall adopt such rules as are necessary to 12 effectuate a program of electronic funds transfer and the 13 requirements of this Section. 14 Any amount which is required to be shown or reported on 15 any return or other document under this Act shall, if such 16 amount is not a whole-dollar amount, be increased to the 17 nearest whole-dollar amount in any case where the fractional 18 part of a dollar is 50 cents or more, and decreased to the 19 nearest whole-dollar amount where the fractional part of a 20 dollar is less than 50 cents. 21 If the retailer is otherwise required to file a monthly 22 return and if the retailer's average monthly tax liability to 23 the Department does not exceed $200, the Department may 24 authorize his returns to be filed on a quarter annual basis, 25 with the return for January, February and March of a given 26 year being due by April 20 of such year; with the return for 27 April, May and June of a given year being due by July 20 of 28 such year; with the return for July, August and September of 29 a given year being due by October 20 of such year, and with 30 the return for October, November and December of a given year 31 being due by January 20 of the following year. 32 If the retailer is otherwise required to file a monthly 33 or quarterly return and if the retailer's average monthly tax 34 liability with the Department does not exceed $50, the HB1599 Enrolled -82- LRB9207178TAcs 1 Department may authorize his returns to be filed on an annual 2 basis, with the return for a given year being due by January 3 20 of the following year. 4 Such quarter annual and annual returns, as to form and 5 substance, shall be subject to the same requirements as 6 monthly returns. 7 Notwithstanding any other provision in this Act 8 concerning the time within which a retailer may file his 9 return, in the case of any retailer who ceases to engage in a 10 kind of business which makes him responsible for filing 11 returns under this Act, such retailer shall file a final 12 return under this Act with the Department not more than one 13 month after discontinuing such business. 14 Where the same person has more than one business 15 registered with the Department under separate registrations 16 under this Act, such person may not file each return that is 17 due as a single return covering all such registered 18 businesses, but shall file separate returns for each such 19 registered business. 20 In addition, with respect to motor vehicles, watercraft, 21 aircraft, and trailers that are required to be registered 22 with an agency of this State, every retailer selling this 23 kind of tangible personal property shall file, with the 24 Department, upon a form to be prescribed and supplied by the 25 Department, a separate return for each such item of tangible 26 personal property which the retailer sells, except that if, 27 in the same transaction, (i) a retailer of aircraft, 28 watercraft, motor vehicles or trailers transfers more than 29 one aircraft, watercraft, motor vehicle or trailer to another 30 aircraft, watercraft, motor vehicle retailer or trailer 31 retailer for the purpose of resale or (ii) a retailer of 32 aircraft, watercraft, motor vehicles, or trailers transfers 33 more than one aircraft, watercraft, motor vehicle, or trailer 34 to a purchaser for use as a qualifying rolling stock as HB1599 Enrolled -83- LRB9207178TAcs 1 provided in Section 2-5 of this Act, then that seller may 2 report the transfer of all aircraft, watercraft, motor 3 vehicles or trailers involved in that transaction to the 4 Department on the same uniform invoice-transaction reporting 5 return form. For purposes of this Section, "watercraft" 6 means a Class 2, Class 3, or Class 4 watercraft as defined in 7 Section 3-2 of the Boat Registration and Safety Act, a 8 personal watercraft, or any boat equipped with an inboard 9 motor. 10 Any retailer who sells only motor vehicles, watercraft, 11 aircraft, or trailers that are required to be registered with 12 an agency of this State, so that all retailers' occupation 13 tax liability is required to be reported, and is reported, on 14 such transaction reporting returns and who is not otherwise 15 required to file monthly or quarterly returns, need not file 16 monthly or quarterly returns. However, those retailers shall 17 be required to file returns on an annual basis. 18 The transaction reporting return, in the case of motor 19 vehicles or trailers that are required to be registered with 20 an agency of this State, shall be the same document as the 21 Uniform Invoice referred to in Section 5-402 of The Illinois 22 Vehicle Code and must show the name and address of the 23 seller; the name and address of the purchaser; the amount of 24 the selling price including the amount allowed by the 25 retailer for traded-in property, if any; the amount allowed 26 by the retailer for the traded-in tangible personal property, 27 if any, to the extent to which Section 1 of this Act allows 28 an exemption for the value of traded-in property; the balance 29 payable after deducting such trade-in allowance from the 30 total selling price; the amount of tax due from the retailer 31 with respect to such transaction; the amount of tax collected 32 from the purchaser by the retailer on such transaction (or 33 satisfactory evidence that such tax is not due in that 34 particular instance, if that is claimed to be the fact); the HB1599 Enrolled -84- LRB9207178TAcs 1 place and date of the sale; a sufficient identification of 2 the property sold; such other information as is required in 3 Section 5-402 of The Illinois Vehicle Code, and such other 4 information as the Department may reasonably require. 5 The transaction reporting return in the case of 6 watercraft or aircraft must show the name and address of the 7 seller; the name and address of the purchaser; the amount of 8 the selling price including the amount allowed by the 9 retailer for traded-in property, if any; the amount allowed 10 by the retailer for the traded-in tangible personal property, 11 if any, to the extent to which Section 1 of this Act allows 12 an exemption for the value of traded-in property; the balance 13 payable after deducting such trade-in allowance from the 14 total selling price; the amount of tax due from the retailer 15 with respect to such transaction; the amount of tax collected 16 from the purchaser by the retailer on such transaction (or 17 satisfactory evidence that such tax is not due in that 18 particular instance, if that is claimed to be the fact); the 19 place and date of the sale, a sufficient identification of 20 the property sold, and such other information as the 21 Department may reasonably require. 22 Such transaction reporting return shall be filed not 23 later than 20 days after the day of delivery of the item that 24 is being sold, but may be filed by the retailer at any time 25 sooner than that if he chooses to do so. The transaction 26 reporting return and tax remittance or proof of exemption 27 from the Illinois use tax may be transmitted to the 28 Department by way of the State agency with which, or State 29 officer with whom the tangible personal property must be 30 titled or registered (if titling or registration is required) 31 if the Department and such agency or State officer determine 32 that this procedure will expedite the processing of 33 applications for title or registration. 34 With each such transaction reporting return, the retailer HB1599 Enrolled -85- LRB9207178TAcs 1 shall remit the proper amount of tax due (or shall submit 2 satisfactory evidence that the sale is not taxable if that is 3 the case), to the Department or its agents, whereupon the 4 Department shall issue, in the purchaser's name, a use tax 5 receipt (or a certificate of exemption if the Department is 6 satisfied that the particular sale is tax exempt) which such 7 purchaser may submit to the agency with which, or State 8 officer with whom, he must title or register the tangible 9 personal property that is involved (if titling or 10 registration is required) in support of such purchaser's 11 application for an Illinois certificate or other evidence of 12 title or registration to such tangible personal property. 13 No retailer's failure or refusal to remit tax under this 14 Act precludes a user, who has paid the proper tax to the 15 retailer, from obtaining his certificate of title or other 16 evidence of title or registration (if titling or registration 17 is required) upon satisfying the Department that such user 18 has paid the proper tax (if tax is due) to the retailer. The 19 Department shall adopt appropriate rules to carry out the 20 mandate of this paragraph. 21 If the user who would otherwise pay tax to the retailer 22 wants the transaction reporting return filed and the payment 23 of the tax or proof of exemption made to the Department 24 before the retailer is willing to take these actions and such 25 user has not paid the tax to the retailer, such user may 26 certify to the fact of such delay by the retailer and may 27 (upon the Department being satisfied of the truth of such 28 certification) transmit the information required by the 29 transaction reporting return and the remittance for tax or 30 proof of exemption directly to the Department and obtain his 31 tax receipt or exemption determination, in which event the 32 transaction reporting return and tax remittance (if a tax 33 payment was required) shall be credited by the Department to 34 the proper retailer's account with the Department, but HB1599 Enrolled -86- LRB9207178TAcs 1 without the 2.1% or 1.75% discount provided for in this 2 Section being allowed. When the user pays the tax directly 3 to the Department, he shall pay the tax in the same amount 4 and in the same form in which it would be remitted if the tax 5 had been remitted to the Department by the retailer. 6 Refunds made by the seller during the preceding return 7 period to purchasers, on account of tangible personal 8 property returned to the seller, shall be allowed as a 9 deduction under subdivision 5 of his monthly or quarterly 10 return, as the case may be, in case the seller had 11 theretofore included the receipts from the sale of such 12 tangible personal property in a return filed by him and had 13 paid the tax imposed by this Act with respect to such 14 receipts. 15 Where the seller is a corporation, the return filed on 16 behalf of such corporation shall be signed by the president, 17 vice-president, secretary or treasurer or by the properly 18 accredited agent of such corporation. 19 Where the seller is a limited liability company, the 20 return filed on behalf of the limited liability company shall 21 be signed by a manager, member, or properly accredited agent 22 of the limited liability company. 23 Except as provided in this Section, the retailer filing 24 the return under this Section shall, at the time of filing 25 such return, pay to the Department the amount of tax imposed 26 by this Act less a discount of 2.1% prior to January 1, 1990 27 and 1.75% on and after January 1, 1990, or $5 per calendar 28 year, whichever is greater, which is allowed to reimburse the 29 retailer for the expenses incurred in keeping records, 30 preparing and filing returns, remitting the tax and supplying 31 data to the Department on request. Any prepayment made 32 pursuant to Section 2d of this Act shall be included in the 33 amount on which such 2.1% or 1.75% discount is computed. In 34 the case of retailers who report and pay the tax on a HB1599 Enrolled -87- LRB9207178TAcs 1 transaction by transaction basis, as provided in this 2 Section, such discount shall be taken with each such tax 3 remittance instead of when such retailer files his periodic 4 return. 5 Before October 1, 2000, if the taxpayer's average monthly 6 tax liability to the Department under this Act, the Use Tax 7 Act, the Service Occupation Tax Act, and the Service Use Tax 8 Act, excluding any liability for prepaid sales tax to be 9 remitted in accordance with Section 2d of this Act, was 10 $10,000 or more during the preceding 4 complete calendar 11 quarters, he shall file a return with the Department each 12 month by the 20th day of the month next following the month 13 during which such tax liability is incurred and shall make 14 payments to the Department on or before the 7th, 15th, 22nd 15 and last day of the month during which such liability is 16 incurred. On and after October 1, 2000, if the taxpayer's 17 average monthly tax liability to the Department under this 18 Act, the Use Tax Act, the Service Occupation Tax Act, and the 19 Service Use Tax Act, excluding any liability for prepaid 20 sales tax to be remitted in accordance with Section 2d of 21 this Act, was $20,000 or more during the preceding 4 complete 22 calendar quarters, he shall file a return with the Department 23 each month by the 20th day of the month next following the 24 month during which such tax liability is incurred and shall 25 make payment to the Department on or before the 7th, 15th, 26 22nd and last day of the month during which such liability is 27 incurred. If the month during which such tax liability is 28 incurred began prior to January 1, 1985, each payment shall 29 be in an amount equal to 1/4 of the taxpayer's actual 30 liability for the month or an amount set by the Department 31 not to exceed 1/4 of the average monthly liability of the 32 taxpayer to the Department for the preceding 4 complete 33 calendar quarters (excluding the month of highest liability 34 and the month of lowest liability in such 4 quarter period). HB1599 Enrolled -88- LRB9207178TAcs 1 If the month during which such tax liability is incurred 2 begins on or after January 1, 1985 and prior to January 1, 3 1987, each payment shall be in an amount equal to 22.5% of 4 the taxpayer's actual liability for the month or 27.5% of the 5 taxpayer's liability for the same calendar month of the 6 preceding year. If the month during which such tax liability 7 is incurred begins on or after January 1, 1987 and prior to 8 January 1, 1988, each payment shall be in an amount equal to 9 22.5% of the taxpayer's actual liability for the month or 10 26.25% of the taxpayer's liability for the same calendar 11 month of the preceding year. If the month during which such 12 tax liability is incurred begins on or after January 1, 1988, 13 and prior to January 1, 1989, or begins on or after January 14 1, 1996, each payment shall be in an amount equal to 22.5% of 15 the taxpayer's actual liability for the month or 25% of the 16 taxpayer's liability for the same calendar month of the 17 preceding year. If the month during which such tax liability 18 is incurred begins on or after January 1, 1989, and prior to 19 January 1, 1996, each payment shall be in an amount equal to 20 22.5% of the taxpayer's actual liability for the month or 25% 21 of the taxpayer's liability for the same calendar month of 22 the preceding year or 100% of the taxpayer's actual liability 23 for the quarter monthly reporting period. The amount of such 24 quarter monthly payments shall be credited against the final 25 tax liability of the taxpayer's return for that month. 26 Before October 1, 2000, once applicable, the requirement of 27 the making of quarter monthly payments to the Department by 28 taxpayers having an average monthly tax liability of $10,000 29 or more as determined in the manner provided above shall 30 continue until such taxpayer's average monthly liability to 31 the Department during the preceding 4 complete calendar 32 quarters (excluding the month of highest liability and the 33 month of lowest liability) is less than $9,000, or until such 34 taxpayer's average monthly liability to the Department as HB1599 Enrolled -89- LRB9207178TAcs 1 computed for each calendar quarter of the 4 preceding 2 complete calendar quarter period is less than $10,000. 3 However, if a taxpayer can show the Department that a 4 substantial change in the taxpayer's business has occurred 5 which causes the taxpayer to anticipate that his average 6 monthly tax liability for the reasonably foreseeable future 7 will fall below the $10,000 threshold stated above, then such 8 taxpayer may petition the Department for a change in such 9 taxpayer's reporting status. On and after October 1, 2000, 10 once applicable, the requirement of the making of quarter 11 monthly payments to the Department by taxpayers having an 12 average monthly tax liability of $20,000 or more as 13 determined in the manner provided above shall continue until 14 such taxpayer's average monthly liability to the Department 15 during the preceding 4 complete calendar quarters (excluding 16 the month of highest liability and the month of lowest 17 liability) is less than $19,000 or until such taxpayer's 18 average monthly liability to the Department as computed for 19 each calendar quarter of the 4 preceding complete calendar 20 quarter period is less than $20,000. However, if a taxpayer 21 can show the Department that a substantial change in the 22 taxpayer's business has occurred which causes the taxpayer to 23 anticipate that his average monthly tax liability for the 24 reasonably foreseeable future will fall below the $20,000 25 threshold stated above, then such taxpayer may petition the 26 Department for a change in such taxpayer's reporting status. 27 The Department shall change such taxpayer's reporting status 28 unless it finds that such change is seasonal in nature and 29 not likely to be long term. If any such quarter monthly 30 payment is not paid at the time or in the amount required by 31 this Section, then the taxpayer shall be liable for penalties 32 and interest on the difference between the minimum amount due 33 as a payment and the amount of such quarter monthly payment 34 actually and timely paid, except insofar as the taxpayer has HB1599 Enrolled -90- LRB9207178TAcs 1 previously made payments for that month to the Department in 2 excess of the minimum payments previously due as provided in 3 this Section. The Department shall make reasonable rules and 4 regulations to govern the quarter monthly payment amount and 5 quarter monthly payment dates for taxpayers who file on other 6 than a calendar monthly basis. 7 Without regard to whether a taxpayer is required to make 8 quarter monthly payments as specified above, any taxpayer who 9 is required by Section 2d of this Act to collect and remit 10 prepaid taxes and has collected prepaid taxes which average 11 in excess of $25,000 per month during the preceding 2 12 complete calendar quarters, shall file a return with the 13 Department as required by Section 2f and shall make payments 14 to the Department on or before the 7th, 15th, 22nd and last 15 day of the month during which such liability is incurred. If 16 the month during which such tax liability is incurred began 17 prior to the effective date of this amendatory Act of 1985, 18 each payment shall be in an amount not less than 22.5% of the 19 taxpayer's actual liability under Section 2d. If the month 20 during which such tax liability is incurred begins on or 21 after January 1, 1986, each payment shall be in an amount 22 equal to 22.5% of the taxpayer's actual liability for the 23 month or 27.5% of the taxpayer's liability for the same 24 calendar month of the preceding calendar year. If the month 25 during which such tax liability is incurred begins on or 26 after January 1, 1987, each payment shall be in an amount 27 equal to 22.5% of the taxpayer's actual liability for the 28 month or 26.25% of the taxpayer's liability for the same 29 calendar month of the preceding year. The amount of such 30 quarter monthly payments shall be credited against the final 31 tax liability of the taxpayer's return for that month filed 32 under this Section or Section 2f, as the case may be. Once 33 applicable, the requirement of the making of quarter monthly 34 payments to the Department pursuant to this paragraph shall HB1599 Enrolled -91- LRB9207178TAcs 1 continue until such taxpayer's average monthly prepaid tax 2 collections during the preceding 2 complete calendar quarters 3 is $25,000 or less. If any such quarter monthly payment is 4 not paid at the time or in the amount required, the taxpayer 5 shall be liable for penalties and interest on such 6 difference, except insofar as the taxpayer has previously 7 made payments for that month in excess of the minimum 8 payments previously due. 9 If any payment provided for in this Section exceeds the 10 taxpayer's liabilities under this Act, the Use Tax Act, the 11 Service Occupation Tax Act and the Service Use Tax Act, as 12 shown on an original monthly return, the Department shall, if 13 requested by the taxpayer, issue to the taxpayer a credit 14 memorandum no later than 30 days after the date of payment. 15 The credit evidenced by such credit memorandum may be 16 assigned by the taxpayer to a similar taxpayer under this 17 Act, the Use Tax Act, the Service Occupation Tax Act or the 18 Service Use Tax Act, in accordance with reasonable rules and 19 regulations to be prescribed by the Department. If no such 20 request is made, the taxpayer may credit such excess payment 21 against tax liability subsequently to be remitted to the 22 Department under this Act, the Use Tax Act, the Service 23 Occupation Tax Act or the Service Use Tax Act, in accordance 24 with reasonable rules and regulations prescribed by the 25 Department. If the Department subsequently determined that 26 all or any part of the credit taken was not actually due to 27 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 28 shall be reduced by 2.1% or 1.75% of the difference between 29 the credit taken and that actually due, and that taxpayer 30 shall be liable for penalties and interest on such 31 difference. 32 If a retailer of motor fuel is entitled to a credit under 33 Section 2d of this Act which exceeds the taxpayer's liability 34 to the Department under this Act for the month which the HB1599 Enrolled -92- LRB9207178TAcs 1 taxpayer is filing a return, the Department shall issue the 2 taxpayer a credit memorandum for the excess. 3 Beginning January 1, 1990, each month the Department 4 shall pay into the Local Government Tax Fund, a special fund 5 in the State treasury which is hereby created, the net 6 revenue realized for the preceding month from the 1% tax on 7 sales of food for human consumption which is to be consumed 8 off the premises where it is sold (other than alcoholic 9 beverages, soft drinks and food which has been prepared for 10 immediate consumption) and prescription and nonprescription 11 medicines, drugs, medical appliances and insulin, urine 12 testing materials, syringes and needles used by diabetics. 13 Beginning January 1, 1990, each month the Department 14 shall pay into the County and Mass Transit District Fund, a 15 special fund in the State treasury which is hereby created, 16 4% of the net revenue realized for the preceding month from 17 the 6.25% general rate. 18 Beginning August 1, 2000, each month the Department shall 19 pay into the County and Mass Transit District Fund 20% of the 20 net revenue realized for the preceding month from the 1.25% 21 rate on the selling price of motor fuel and gasohol. 22 Beginning January 1, 1990, each month the Department 23 shall pay into the Local Government Tax Fund 16% of the net 24 revenue realized for the preceding month from the 6.25% 25 general rate on the selling price of tangible personal 26 property. 27 Beginning August 1, 2000, each month the Department shall 28 pay into the Local Government Tax Fund 80% of the net revenue 29 realized for the preceding month from the 1.25% rate on the 30 selling price of motor fuel and gasohol. 31 Of the remainder of the moneys received by the Department 32 pursuant to this Act, (a) 1.75% thereof shall be paid into 33 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 34 and on and after July 1, 1989, 3.8% thereof shall be paid HB1599 Enrolled -93- LRB9207178TAcs 1 into the Build Illinois Fund; provided, however, that if in 2 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 3 as the case may be, of the moneys received by the Department 4 and required to be paid into the Build Illinois Fund pursuant 5 to this Act, Section 9 of the Use Tax Act, Section 9 of the 6 Service Use Tax Act, and Section 9 of the Service Occupation 7 Tax Act, such Acts being hereinafter called the "Tax Acts" 8 and such aggregate of 2.2% or 3.8%, as the case may be, of 9 moneys being hereinafter called the "Tax Act Amount", and (2) 10 the amount transferred to the Build Illinois Fund from the 11 State and Local Sales Tax Reform Fund shall be less than the 12 Annual Specified Amount (as hereinafter defined), an amount 13 equal to the difference shall be immediately paid into the 14 Build Illinois Fund from other moneys received by the 15 Department pursuant to the Tax Acts; the "Annual Specified 16 Amount" means the amounts specified below for fiscal years 17 1986 through 1993: 18 Fiscal Year Annual Specified Amount 19 1986 $54,800,000 20 1987 $76,650,000 21 1988 $80,480,000 22 1989 $88,510,000 23 1990 $115,330,000 24 1991 $145,470,000 25 1992 $182,730,000 26 1993 $206,520,000; 27 and means the Certified Annual Debt Service Requirement (as 28 defined in Section 13 of the Build Illinois Bond Act) or the 29 Tax Act Amount, whichever is greater, for fiscal year 1994 30 and each fiscal year thereafter; and further provided, that 31 if on the last business day of any month the sum of (1) the 32 Tax Act Amount required to be deposited into the Build 33 Illinois Bond Account in the Build Illinois Fund during such 34 month and (2) the amount transferred to the Build Illinois HB1599 Enrolled -94- LRB9207178TAcs 1 Fund from the State and Local Sales Tax Reform Fund shall 2 have been less than 1/12 of the Annual Specified Amount, an 3 amount equal to the difference shall be immediately paid into 4 the Build Illinois Fund from other moneys received by the 5 Department pursuant to the Tax Acts; and, further provided, 6 that in no event shall the payments required under the 7 preceding proviso result in aggregate payments into the Build 8 Illinois Fund pursuant to this clause (b) for any fiscal year 9 in excess of the greater of (i) the Tax Act Amount or (ii) 10 the Annual Specified Amount for such fiscal year. The 11 amounts payable into the Build Illinois Fund under clause (b) 12 of the first sentence in this paragraph shall be payable only 13 until such time as the aggregate amount on deposit under each 14 trust indenture securing Bonds issued and outstanding 15 pursuant to the Build Illinois Bond Act is sufficient, taking 16 into account any future investment income, to fully provide, 17 in accordance with such indenture, for the defeasance of or 18 the payment of the principal of, premium, if any, and 19 interest on the Bonds secured by such indenture and on any 20 Bonds expected to be issued thereafter and all fees and costs 21 payable with respect thereto, all as certified by the 22 Director of the Bureau of the Budget. If on the last 23 business day of any month in which Bonds are outstanding 24 pursuant to the Build Illinois Bond Act, the aggregate of 25 moneys deposited in the Build Illinois Bond Account in the 26 Build Illinois Fund in such month shall be less than the 27 amount required to be transferred in such month from the 28 Build Illinois Bond Account to the Build Illinois Bond 29 Retirement and Interest Fund pursuant to Section 13 of the 30 Build Illinois Bond Act, an amount equal to such deficiency 31 shall be immediately paid from other moneys received by the 32 Department pursuant to the Tax Acts to the Build Illinois 33 Fund; provided, however, that any amounts paid to the Build 34 Illinois Fund in any fiscal year pursuant to this sentence HB1599 Enrolled -95- LRB9207178TAcs 1 shall be deemed to constitute payments pursuant to clause (b) 2 of the first sentence of this paragraph and shall reduce the 3 amount otherwise payable for such fiscal year pursuant to 4 that clause (b). The moneys received by the Department 5 pursuant to this Act and required to be deposited into the 6 Build Illinois Fund are subject to the pledge, claim and 7 charge set forth in Section 12 of the Build Illinois Bond 8 Act. 9 Subject to payment of amounts into the Build Illinois 10 Fund as provided in the preceding paragraph or in any 11 amendment thereto hereafter enacted, the following specified 12 monthly installment of the amount requested in the 13 certificate of the Chairman of the Metropolitan Pier and 14 Exposition Authority provided under Section 8.25f of the 15 State Finance Act, but not in excess of sums designated as 16 "Total Deposit", shall be deposited in the aggregate from 17 collections under Section 9 of the Use Tax Act, Section 9 of 18 the Service Use Tax Act, Section 9 of the Service Occupation 19 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 20 into the McCormick Place Expansion Project Fund in the 21 specified fiscal years. 22 Fiscal Year Total Deposit 23 1993 $0 24 1994 53,000,000 25 1995 58,000,000 26 1996 61,000,000 27 1997 64,000,000 28 1998 68,000,000 29 1999 71,000,000 30 2000 75,000,000 31 2001 80,000,000 32 2002 84,000,000 33 2003 89,000,000 34 2004 93,000,000 HB1599 Enrolled -96- LRB9207178TAcs 1 2005 97,000,000 2 2006 102,000,000 3 2007 108,000,000 4 2008 115,000,000 5 2009 120,000,000 6 2010 126,000,000 7 2011 132,000,000 8 2012 138,000,000 9 2013 and 145,000,000 10 each fiscal year 11 thereafter that bonds 12 are outstanding under 13 Section 13.2 of the 14 Metropolitan Pier and 15 Exposition Authority 16 Act, but not after fiscal year 2029. 17 Beginning July 20, 1993 and in each month of each fiscal 18 year thereafter, one-eighth of the amount requested in the 19 certificate of the Chairman of the Metropolitan Pier and 20 Exposition Authority for that fiscal year, less the amount 21 deposited into the McCormick Place Expansion Project Fund by 22 the State Treasurer in the respective month under subsection 23 (g) of Section 13 of the Metropolitan Pier and Exposition 24 Authority Act, plus cumulative deficiencies in the deposits 25 required under this Section for previous months and years, 26 shall be deposited into the McCormick Place Expansion Project 27 Fund, until the full amount requested for the fiscal year, 28 but not in excess of the amount specified above as "Total 29 Deposit", has been deposited. 30 Subject to payment of amounts into the Build Illinois 31 Fund and the McCormick Place Expansion Project Fund pursuant 32 to the preceding paragraphs or in any amendment thereto 33 hereafter enacted, each month the Department shall pay into 34 the Local Government Distributive Fund 0.4% of the net HB1599 Enrolled -97- LRB9207178TAcs 1 revenue realized for the preceding month from the 5% general 2 rate or 0.4% of 80% of the net revenue realized for the 3 preceding month from the 6.25% general rate, as the case may 4 be, on the selling price of tangible personal property which 5 amount shall, subject to appropriation, be distributed as 6 provided in Section 2 of the State Revenue Sharing Act. No 7 payments or distributions pursuant to this paragraph shall be 8 made if the tax imposed by this Act on photoprocessing 9 products is declared unconstitutional, or if the proceeds 10 from such tax are unavailable for distribution because of 11 litigation. 12 Subject to payment of amounts into the Build Illinois 13 Fund, the McCormick Place Expansion Project Fund, and the 14 Local Government Distributive Fund pursuant to the preceding 15 paragraphs or in any amendments thereto hereafter enacted, 16 beginning July 1, 1993, the Department shall each month pay 17 into the Illinois Tax Increment Fund 0.27% of 80% of the net 18 revenue realized for the preceding month from the 6.25% 19 general rate on the selling price of tangible personal 20 property. 21 Subject to payment of amounts into the Build Illinois 22 Fund, the McCormick Place Expansion Project Fund, and the 23 Local Government Distributive Fund pursuant to the preceding 24 paragraphs or in any amendments thereto hereafter enacted, 25 beginning with the receipt of the first report of taxes paid 26 by an eligible business and continuing for a 25-year period, 27 the Department shall each month pay into the Energy 28 Infrastructure Fund 80% of the net revenue realized from the 29 6.25% general rate on the selling price of Illinois-mined 30 coal that was sold to an eligible business. For purposes of 31 this paragraph, the term "eligible business" means a new 32 electric generating facility certified pursuant to Section 33 605-332 of the Department of Commerce and Community Affairs 34 Law of the Civil Administrative Code of Illinois. HB1599 Enrolled -98- LRB9207178TAcs 1 Of the remainder of the moneys received by the Department 2 pursuant to this Act, 75% thereof shall be paid into the 3 State Treasury and 25% shall be reserved in a special account 4 and used only for the transfer to the Common School Fund as 5 part of the monthly transfer from the General Revenue Fund in 6 accordance with Section 8a of the State Finance Act. 7 The Department may, upon separate written notice to a 8 taxpayer, require the taxpayer to prepare and file with the 9 Department on a form prescribed by the Department within not 10 less than 60 days after receipt of the notice an annual 11 information return for the tax year specified in the notice. 12 Such annual return to the Department shall include a 13 statement of gross receipts as shown by the retailer's last 14 Federal income tax return. If the total receipts of the 15 business as reported in the Federal income tax return do not 16 agree with the gross receipts reported to the Department of 17 Revenue for the same period, the retailer shall attach to his 18 annual return a schedule showing a reconciliation of the 2 19 amounts and the reasons for the difference. The retailer's 20 annual return to the Department shall also disclose the cost 21 of goods sold by the retailer during the year covered by such 22 return, opening and closing inventories of such goods for 23 such year, costs of goods used from stock or taken from stock 24 and given away by the retailer during such year, payroll 25 information of the retailer's business during such year and 26 any additional reasonable information which the Department 27 deems would be helpful in determining the accuracy of the 28 monthly, quarterly or annual returns filed by such retailer 29 as provided for in this Section. 30 If the annual information return required by this Section 31 is not filed when and as required, the taxpayer shall be 32 liable as follows: 33 (i) Until January 1, 1994, the taxpayer shall be 34 liable for a penalty equal to 1/6 of 1% of the tax due HB1599 Enrolled -99- LRB9207178TAcs 1 from such taxpayer under this Act during the period to be 2 covered by the annual return for each month or fraction 3 of a month until such return is filed as required, the 4 penalty to be assessed and collected in the same manner 5 as any other penalty provided for in this Act. 6 (ii) On and after January 1, 1994, the taxpayer 7 shall be liable for a penalty as described in Section 3-4 8 of the Uniform Penalty and Interest Act. 9 The chief executive officer, proprietor, owner or highest 10 ranking manager shall sign the annual return to certify the 11 accuracy of the information contained therein. Any person 12 who willfully signs the annual return containing false or 13 inaccurate information shall be guilty of perjury and 14 punished accordingly. The annual return form prescribed by 15 the Department shall include a warning that the person 16 signing the return may be liable for perjury. 17 The provisions of this Section concerning the filing of 18 an annual information return do not apply to a retailer who 19 is not required to file an income tax return with the United 20 States Government. 21 As soon as possible after the first day of each month, 22 upon certification of the Department of Revenue, the 23 Comptroller shall order transferred and the Treasurer shall 24 transfer from the General Revenue Fund to the Motor Fuel Tax 25 Fund an amount equal to 1.7% of 80% of the net revenue 26 realized under this Act for the second preceding month. 27 Beginning April 1, 2000, this transfer is no longer required 28 and shall not be made. 29 Net revenue realized for a month shall be the revenue 30 collected by the State pursuant to this Act, less the amount 31 paid out during that month as refunds to taxpayers for 32 overpayment of liability. 33 For greater simplicity of administration, manufacturers, 34 importers and wholesalers whose products are sold at retail HB1599 Enrolled -100- LRB9207178TAcs 1 in Illinois by numerous retailers, and who wish to do so, may 2 assume the responsibility for accounting and paying to the 3 Department all tax accruing under this Act with respect to 4 such sales, if the retailers who are affected do not make 5 written objection to the Department to this arrangement. 6 Any person who promotes, organizes, provides retail 7 selling space for concessionaires or other types of sellers 8 at the Illinois State Fair, DuQuoin State Fair, county fairs, 9 local fairs, art shows, flea markets and similar exhibitions 10 or events, including any transient merchant as defined by 11 Section 2 of the Transient Merchant Act of 1987, is required 12 to file a report with the Department providing the name of 13 the merchant's business, the name of the person or persons 14 engaged in merchant's business, the permanent address and 15 Illinois Retailers Occupation Tax Registration Number of the 16 merchant, the dates and location of the event and other 17 reasonable information that the Department may require. The 18 report must be filed not later than the 20th day of the month 19 next following the month during which the event with retail 20 sales was held. Any person who fails to file a report 21 required by this Section commits a business offense and is 22 subject to a fine not to exceed $250. 23 Any person engaged in the business of selling tangible 24 personal property at retail as a concessionaire or other type 25 of seller at the Illinois State Fair, county fairs, art 26 shows, flea markets and similar exhibitions or events, or any 27 transient merchants, as defined by Section 2 of the Transient 28 Merchant Act of 1987, may be required to make a daily report 29 of the amount of such sales to the Department and to make a 30 daily payment of the full amount of tax due. The Department 31 shall impose this requirement when it finds that there is a 32 significant risk of loss of revenue to the State at such an 33 exhibition or event. Such a finding shall be based on 34 evidence that a substantial number of concessionaires or HB1599 Enrolled -101- LRB9207178TAcs 1 other sellers who are not residents of Illinois will be 2 engaging in the business of selling tangible personal 3 property at retail at the exhibition or event, or other 4 evidence of a significant risk of loss of revenue to the 5 State. The Department shall notify concessionaires and other 6 sellers affected by the imposition of this requirement. In 7 the absence of notification by the Department, the 8 concessionaires and other sellers shall file their returns as 9 otherwise required in this Section. 10 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 11 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 12 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 13 eff. 1-1-01; revised 1-15-01.) 14 Section 940. The Property Tax Code is amended by 15 changing Section 18-165 as follows: 16 (35 ILCS 200/18-165) 17 Sec. 18-165. Abatement of taxes. 18 (a) Any taxing district, upon a majority vote of its 19 governing authority, may, after the determination of the 20 assessed valuation of its property, order the clerk of that 21 county to abate any portion of its taxes on the following 22 types of property: 23 (1) Commercial and industrial. 24 (A) The property of any commercial or 25 industrial firm, including but not limited to the 26 property of (i) any firm that is used for 27 collecting, separating, storing, or processing 28 recyclable materials, locating within the taxing 29 district during the immediately preceding year from 30 another state, territory, or country, or having been 31 newly created within this State during the 32 immediately preceding year, or expanding an existing HB1599 Enrolled -102- LRB9207178TAcs 1 facility, or (ii) any firm that is used for the 2 generation and transmission of electricity locating 3 within the taxing district during the immediately 4 preceding year or expanding its presence within the 5 taxing district during the immediately preceding 6 year by construction of a new electric generating 7 facility that uses natural gas as its fuel, or any 8 firm that is used for production operations at a 9 new, expanded, or reopened coal mine within the 10 taxing district, that has been certified as a High 11 Impact Business by the Illinois Department of 12 Commerce and Community Affairs. The property of any 13 firm used for the generation and transmission of 14 electricity shall include all property of the firm 15 used for transmission facilities as defined in 16 Section 5.5 of the Illinois Enterprise Zone Act. 17 The abatement shall not exceed a period of 10 years 18 and the aggregate amount of abated taxes for all 19 taxing districts combined shall not exceed 20 $4,000,000. 21 (A-5) Any property in the taxing district of a 22 new electric generating facility, as defined in 23 Section 605-332 of the Department of Commerce and 24 Community Affairs Law of the Civil Administrative 25 Code of Illinois. The abatement shall not exceed a 26 period of 10 years. The abatement shall be subject 27 to the following limitations: 28 (i) if the equalized assessed valuation 29 of the new electric generating facility is 30 equal to or greater than $25,000,000 but less 31 than $50,000,000, then the abatement may not 32 exceed (i) over the entire term of the 33 abatement, 5% of the taxing district's 34 aggregate taxes from the new electric HB1599 Enrolled -103- LRB9207178TAcs 1 generating facility and (ii) in any one year of 2 abatement, 20% of the taxing district's taxes 3 from the new electric generating facility; 4 (ii) if the equalized assessed valuation 5 of the new electric generating facility is 6 equal to or greater than $50,000,000 but less 7 than $75,000,000, then the abatement may not 8 exceed (i) over the entire term of the 9 abatement, 10% of the taxing district's 10 aggregate taxes from the new electric 11 generating facility and (ii) in any one year of 12 abatement, 35% of the taxing district's taxes 13 from the new electric generating facility; 14 (iii) if the equalized assessed valuation 15 of the new electric generating facility is 16 equal to or greater than $75,000,000 but less 17 than $100,000,000, then the abatement may not 18 exceed (i) over the entire term of the 19 abatement, 20% of the taxing district's 20 aggregate taxes from the new electric 21 generating facility and (ii) in any one year of 22 abatement, 50% of the taxing district's taxes 23 from the new electric generating facility; 24 (iv) if the equalized assessed valuation 25 of the new electric generating facility is 26 equal to or greater than $100,000,000 but less 27 than $125,000,000, then the abatement may not 28 exceed (i) over the entire term of the 29 abatement, 30% of the taxing district's 30 aggregate taxes from the new electric 31 generating facility and (ii) in any one year of 32 abatement, 60% of the taxing district's taxes 33 from the new electric generating facility; 34 (v) if the equalized assessed valuation HB1599 Enrolled -104- LRB9207178TAcs 1 of the new electric generating facility is 2 equal to or greater than $125,000,000 but less 3 than $150,000,000, then the abatement may not 4 exceed (i) over the entire term of the 5 abatement, 40% of the taxing district's 6 aggregate taxes from the new electric 7 generating facility and (ii) in any one year of 8 abatement, 60% of the taxing district's taxes 9 from the new electric generating facility; 10 (vi) if the equalized assessed valuation 11 of the new electric generating facility is 12 equal to or greater than $150,000,000, then the 13 abatement may not exceed (i) over the entire 14 term of the abatement, 50% of the taxing 15 district's aggregate taxes from the new 16 electric generating facility and (ii) in any 17 one year of abatement, 60% of the taxing 18 district's taxes from the new electric 19 generating facility. 20 The abatement is not effective unless the owner 21 of the new electric generating facility agrees to 22 repay to the taxing district all amounts previously 23 abated, together with interest computed at the rate 24 and in the manner provided for delinquent taxes, in 25 the event that the owner of the new electric 26 generating facility closes the new electric 27 generating facility before the expiration of the 28 entire term of the abatement. 29 The authorization of taxing districts to abate 30 taxes under this subdivision (a)(1)(A-5) expires on 31 January 1, 2010.; or32 (B) The property of any commercial or 33 industrial development of at least 500 acres having 34 been created within the taxing district. The HB1599 Enrolled -105- LRB9207178TAcs 1 abatement shall not exceed a period of 20 years and 2 the aggregate amount of abated taxes for all taxing 3 districts combined shall not exceed $12,000,000. 4 (C) The property of any commercial or 5 industrial firm currently located in the taxing 6 district that expands a facility or its number of 7 employees. The abatement shall not exceed a period 8 of 10 years and the aggregate amount of abated taxes 9 for all taxing districts combined shall not exceed 10 $4,000,000. The abatement period may be renewed at 11 the option of the taxing districts. 12 (2) Horse racing. Any property in the taxing 13 district which is used for the racing of horses and upon 14 which capital improvements consisting of expansion, 15 improvement or replacement of existing facilities have 16 been made since July 1, 1987. The combined abatements 17 for such property from all taxing districts in any county 18 shall not exceed $5,000,000 annually and shall not exceed 19 a period of 10 years. 20 (3) Auto racing. Any property designed exclusively 21 for the racing of motor vehicles. Such abatement shall 22 not exceed a period of 10 years. 23 (4) Academic or research institute. The property 24 of any academic or research institute in the taxing 25 district that (i) is an exempt organization under 26 paragraph (3) of Section 501(c) of the Internal Revenue 27 Code, (ii) operates for the benefit of the public by 28 actually and exclusively performing scientific research 29 and making the results of the research available to the 30 interested public on a non-discriminatory basis, and 31 (iii) employs more than 100 employees. An abatement 32 granted under this paragraph shall be for at least 15 33 years and the aggregate amount of abated taxes for all 34 taxing districts combined shall not exceed $5,000,000. HB1599 Enrolled -106- LRB9207178TAcs 1 (5) Housing for older persons. Any property in the 2 taxing district that is devoted exclusively to affordable 3 housing for older households. For purposes of this 4 paragraph, "older households" means those households (i) 5 living in housing provided under any State or federal 6 program that the Department of Human Rights determines is 7 specifically designed and operated to assist elderly 8 persons and is solely occupied by persons 55 years of age 9 or older and (ii) whose annual income does not exceed 80% 10 of the area gross median income, adjusted for family 11 size, as such gross income and median income are 12 determined from time to time by the United States 13 Department of Housing and Urban Development. The 14 abatement shall not exceed a period of 15 years, and the 15 aggregate amount of abated taxes for all taxing districts 16 shall not exceed $3,000,000. 17 (6) Historical society. For assessment years 1998 18 through 2000, the property of an historical society 19 qualifying as an exempt organization under Section 20 501(c)(3) of the federal Internal Revenue Code. 21 (7) Recreational facilities. Any property in the 22 taxing district (i) that is used for a municipal airport, 23 (ii) that is subject to a leasehold assessment under 24 Section 9-195 of this Code and (iii) which is sublet from 25 a park district that is leasing the property from a 26 municipality, but only if the property is used 27 exclusively for recreational facilities or for parking 28 lots used exclusively for those facilities. The 29 abatement shall not exceed a period of 10 years. 30 (b) Upon a majority vote of its governing authority, any 31 municipality may, after the determination of the assessed 32 valuation of its property, order the county clerk to abate 33 any portion of its taxes on any property that is located 34 within the corporate limits of the municipality in accordance HB1599 Enrolled -107- LRB9207178TAcs 1 with Section 8-3-18 of the Illinois Municipal Code. 2 (Source: P.A. 90-46, eff. 7-3-97; 90-415, eff. 8-15-97; 3 90-568, eff. 1-1-99; 90-655, eff. 7-30-98; 91-644, eff. 4 8-20-99; 91-885, eff. 7-6-00.) 5 Section 945. The Public Utilities Act is amended by 6 changing Sections 9-222, 9-222.1A, and 16-126 as follows: 7 (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222) 8 Sec. 9-222. Whenever a tax is imposed upon a public 9 utility engaged in the business of distributing, supplying, 10 furnishing, or selling gas for use or consumption pursuant to 11 Section 2 of the Gas Revenue Tax Act, or whenever a tax is 12 required to be collected by a delivering supplier pursuant to 13 Section 2-7 of the Electricity Excise Tax Act, or whenever a 14 tax is imposed upon a public utility pursuant to Section 15 2-202 of this Act, such utility may charge its customers, 16 other than customers who are high impact businesses under 17 Section 5.5 of the Illinois Enterprise Zone Act, or certified 18 business enterprises under Section 9-222.1 of this Act, to 19 the extent of such exemption and during the period in which 20 such exemption is in effect, in addition to any rate 21 authorized by this Act, an additional charge equal to the 22 total amount of such taxes. The exemption of this Section 23 relating to high impact businesses shall be subject to the 24 provisions of subsections (a),and(b), and (b-5) of Section 25 5.5 of the Illinois Enterprise Zone Act. This requirement 26 shall not apply to taxes on invested capital imposed pursuant 27 to the Messages Tax Act, the Gas Revenue Tax Act and the 28 Public Utilities Revenue Act. Such utility shall file with 29 the Commission a supplemental schedule which shall specify 30 such additional charge and which shall become effective upon 31 filing without further notice. Such additional charge shall 32 be shown separately on the utility bill to each customer. HB1599 Enrolled -108- LRB9207178TAcs 1 The Commission shall have the power to investigate whether or 2 not such supplemental schedule correctly specifies such 3 additional charge, but shall have no power to suspend such 4 supplemental schedule. If the Commission finds, after a 5 hearing, that such supplemental schedule does not correctly 6 specify such additional charge, it shall by order require a 7 refund to the appropriate customers of the excess, if any, 8 with interest, in such manner as it shall deem just and 9 reasonable, and in and by such order shall require the 10 utility to file an amended supplemental schedule 11 corresponding to the finding and order of the Commission. 12 Except with respect to taxes imposed on invested capital, 13 such tax liabilities shall be recovered from customers solely 14 by means of the additional charges authorized by this 15 Section. 16 (Source: P.A. 91-914, eff. 7-7-00.) 17 (220 ILCS 5/9-222.1A) 18 Sec. 9-222.1A. High impact business. Beginning on August 19 1, 1998 and thereafter, a business enterprise that is 20 certified as a High Impact Business by the Department of 21 Commerce and Community Affairs is exempt from the tax 22 imposed by Section 2-4 of the Electricity Excise Tax Law, if 23 the High Impact Business is registered to self-assess that 24 tax, and is exempt from any additional charges added to the 25 business enterprise's utility bills as a pass-on of State 26 utility taxes under Section 9-222 of this Act, to the extent 27 the tax or charges are exempted by the percentage specified 28 by the Department of Commerce and Community Affairs for 29 State utility taxes, provided the business enterprise meets 30 the following criteria: 31 (1) (A) it intends either (i) to make a minimum 32 eligible investment of $12,000,000 that will be 33 placed in service in qualified property in Illinois HB1599 Enrolled -109- LRB9207178TAcs 1 and is intended to create at least 500 full-time 2 equivalent jobs at a designated location in 3 Illinois; or (ii) to make a minimum eligible 4 investment of $30,000,000 that will be placed in 5 service in qualified property in Illinois and is 6 intended to retain at least 1,500 full-time 7 equivalent jobs at a designated location in 8 Illinois; or 9 (B) it meets the criteria of subdivision 10 (a)(3)(B), (a)(3)(C), or (a)(3)(D) of Section 5.5 of 11 the Illinois Enterprise Zone Act; 12 (2) it is designated as a High Impact Business by 13 the Department of Commerce and Community Affairs; and 14 (3) it is certified by the Department of Commerce 15 and Community Affairs as complying with the requirements 16 specified in clauses (1) and (2) of this Section. 17 The Department of Commerce and Community Affairs shall 18 determine the period during which the exemption from the 19 Electricity Excise Tax Law and the charges imposed under 20 Section 9-222 are in effect, which shall not exceed 20 years 21 from the date of initial certification, and shall specify the 22 percentage of the exemption from those taxes or additional 23 charges. 24 The Department of Commerce and Community Affairs is 25 authorized to promulgate rules and regulations to carry out 26 the provisions of this Section, including procedures for 27 complying with the requirements specified in clauses (1) 28 and (2) of this Section and procedures for applying for the 29 exemptions authorized under this Section; to define the 30 amounts and types of eligible investments that business 31 enterprises must make in order to receive State utility tax 32 exemptions or exemptions from the additional charges imposed 33 under Section 9-222 and this Section; to approve such utility 34 tax exemptions for business enterprises whose investments are HB1599 Enrolled -110- LRB9207178TAcs 1 not yet placed in service; and to require that business 2 enterprises granted tax exemptions or exemptions from 3 additional charges under Section 9-222 repay the exempted 4 amount if the business enterprise fails to comply with the 5 terms and conditions of the certification. 6 Upon certification of the business enterprises by the 7 Department of Commerce and Community Affairs, the Department 8 of Commerce and Community Affairs shall notify the Department 9 of Revenue of the certification. The Department of Revenue 10 shall notify the public utilities of the exemption status of 11 business enterprises from the tax or pass-on charges of State 12 utility taxes. The exemption status shall take effect within 13 3 months after certification of the business enterprise. 14 (Source: P.A. 91-914, eff. 7-7-00.) 15 (220 ILCS 5/16-126) 16 Sec. 16-126. Membership in an independent system 17 operator. 18 (a) The General Assembly finds that the establishment of 19 one or more independent system operators or their functional 20 equivalents is required to facilitate the development of an 21 open and efficient marketplace for electric power and energy 22 to the benefit of Illinois consumers. Therefore, each 23 Illinois electric utility owning or controlling transmission 24 facilities or providing transmission services in Illinois and 25 that is a member of the Mid-American Interconnected Network 26 as of the effective date of this amendatory Act of 1997 shall 27 submit for approval to the Federal Energy Regulatory 28 Commission an application for establishing or joining an 29 independent system operator that shall: 30 (1) independently manage and control transmission 31 facilities of any electric utility; 32 (2) provide for nondiscriminatory access to and use 33 of the transmission system for buyers and sellers of HB1599 Enrolled -111- LRB9207178TAcs 1 electricity; 2 (3) direct the transmission activities of the 3 control area operators; 4 (4) coordinate, plan, and order the installation of 5 new transmission facilities; 6 (5) adopt inspection, maintenance, repair, and 7 replacement standards for the transmission facilities 8 under its control and direct maintenance, repair, and 9 replacement of all facilities under its control; and 10 (6) implement procedures and act to assure the 11 provision of adequate and reliable service. 12 These standards shall be consistent with reliability 13 criteria no less stringent than those established by the 14 Mid-American Interconnected Network and the North American 15 Electric Reliability Council or their successors. 16 (b) The requirements of this Section may be met by 17 joining or establishing a regional independent system 18 operator that meets the criteria enumerated in subsections 19 (a), (c), and (d) of this Section, as determined by the 20 Commission. To achieve the objectives set forth in subsection 21 (a), the State of Illinois, through the appropriate officers, 22 departments, and agencies, shall work cooperatively with the 23 appropriate officials and agencies of those States contiguous 24 to this State and the Federal Energy Regulatory Commission 25 towards the formation of one or more regional independent 26 system operators. 27 (c) The independent system operator's governance 28 structure must be fair and nondiscriminatory, and the 29 independent system operator must be independent of any one 30 market participant or class of participants. The independent 31 system operator's rules of governance must prevent control, 32 or the appearance of control, of decision-making by any class 33 of participants. 34 (d) Participants in the independent system operator HB1599 Enrolled -112- LRB9207178TAcs 1 shall make available to the independent system operator all 2 information required by the independent system operator in 3 performance of its functions described herein. The 4 independent system operator and the electric utilities 5 participating in the independent system operator shall make 6 all filings required by the Federal Energy Regulatory 7 Commission. The independent system operator shall ensure that 8 additional filings at the Federal Energy Regulatory 9 Commission request confirmation of the relevant provisions of 10 this amendatory Act of 1997. 11 (e) If a spot market, exchange market, or other 12 market-based mechanism providing transparent real-time market 13 prices for electric power has not been developed, the 14 independent system operator or a closely cooperating agent of 15 the independent system operator may provide an efficient 16 competitive power exchange auction for electric power and 17 energy, open on a nondiscriminatory basis to all suppliers, 18 which meets the loads of all auction customers at efficient 19 prices. 20 (f) For those electric utilities referred to in 21 subsection (a) which have not filed with the Federal Energy 22 Regulatory Commission by June 30, 1998 an application for 23 establishment or participation in an independent system 24 operator or if such application has not been approved by the 25 Federal Energy Regulatory Commission by March 31, 1999, a 5 26 member Oversight Board shall be formed. The Oversight Board 27 shall (1) oversee the creation of an Illinois independent 28 system operator and (2) determine the composition and initial 29 terms of service of, and appoint the initial members of, the 30 Illinois independent system operator board of directors. The 31 Oversight Board shall consist of the following: (1) 3 persons 32 appointed by the Governor; (2) one person appointed by the 33 Speaker of the House of Representatives; and (3) one person 34 appointed by the President of the Senate. The Oversight Board HB1599 Enrolled -113- LRB9207178TAcs 1 shall take the steps that are necessary to ensure the 2 earliest possible incorporation of an Illinois independent 3 system operator under the Business Corporation Act of 1983, 4 and shall serve until the Illinois independent system 5 operator is incorporated. 6 (g) After notice and hearing, the Commission shall 7 require each electric utility referred to in subsection (a), 8 that is not participating in an independent system operator 9 meeting the requirements of subsections (a) and (c), to seek 10 authority from the Federal Energy Regulatory Commission to 11 transfer functional control of transmission facilities to the 12 Illinois independent system operator for control by the 13 Illinois independent system operator consistent with the 14 requirements of subsection (a). Upon approval by the Federal 15 Energy Regulatory Commission, electric utilities may also 16 elect to transfer ownership of transmission facilities to the 17 Illinois independent system operator. Nothing in this Act 18 shall be deemed to preclude the Illinois independent system 19 operator from (1) seeking authority, as necessary, to merge 20 with or otherwise combine its operations with those of one or 21 more other entities authorized to provide transmission 22 services, (2) purchasing or leasing transmission assets from 23 transmission-owning entities not required by this Section to 24 lease transmission facilities to the Illinois independent 25 system operator, or (3) operating as a transmission public 26 utility under the Federal Power Act. 27 (h) Any other owner of transmission facilities in 28 Illinois not required by this Section to participate in an 29 independent system operator shall be permitted, but not 30 required, to become a member of the Illinois independent 31 system operator. 32 (i) The Illinois independent system operator created 33 under this Section, and any other independent system operator 34 authorized by the Federal Energy Regulatory Commission to HB1599 Enrolled -114- LRB9207178TAcs 1 provide transmission services as a public utility under the 2 Federal Power Act within the State of Illinois, shall be 3 deemed to be a public utility for purposes of Section 8-503 4 and 8-509 of this Act. An independent system operator or 5 regional transmission organization that is the subject of an 6 order entered by the Commission under Section 8-503 need not 7 possess a certificate of service authority under Section 8 8-406 in order to be authorized to take the actions set forth 9 in Section 8-509. 10 (j) Electric utilities referred to in subsection (a) may 11 withdraw from the Illinois independent system operator upon 12 becoming a member of an independent system operator or 13 operators conforming with the criteria in subsections (a) and 14 (c) and whose formation and operation has been approved by 15 the Federal Energy Regulatory Commission. This subsection 16 does not relieve any electric utility of any obligations 17 under Federal law. 18 (k) Nothing in this Section shall be construed as 19 imposing any requirements or obligations that are in conflict 20 with federal law. 21 (l) A regional transmission organization created under 22 the rules of the Federal Energy Regulatory Commission shall 23 be considered to be the functional equivalent of an 24 independent system operator for purposes of this Section, and 25 an electric utility shall be deemed to meet its obligations 26 under this Section through membership in a regional 27 transmission organization that fulfills the requirements of 28 an independent system operator under this Section. 29 (Source: P.A. 90-561, eff. 12-16-97.) 30 Section 950. The Environmental Protection Act is amended 31 by changing Section 9.9 and adding Section 9.10 as follows: 32 (415 ILCS 5/9.9) HB1599 Enrolled -115- LRB9207178TAcs 1 Sec. 9.9. Nitrogen oxides trading system. 2 (a) The General Assembly finds: 3 (1) That USEPA has issued a Final Rule published in 4 the Federal Register on October 27, 1998, entitled 5 "Finding of Significant Contribution and Rulemaking for 6 Certain States in the Ozone Transport Assessment Group 7 Region for Purposes of Reducing Regional Transport of 8 Ozone", hereinafter referred to as the "NOx SIP Call", 9 compliance with which will require reducing emissions of 10 nitrogen oxides ("NOx"); 11 (2) That reducing emissions of NOx in the State 12 helps the State to meet the national ambient air quality 13 standard for ozone; 14 (3) That emissions trading is a cost-effective 15 means of obtaining reductions of NOx emissions. 16 (b) The Agency shall propose and the Board shall adopt 17 regulations to implement an interstate NOx trading program 18 (hereinafter referred to as the "NOx Trading Program") as 19 provided for in 40 CFR Part 96, including incorporation by 20 reference of appropriate provisions of 40 CFR Part 96 and 21 regulations to address 40 CFR Section 96.4(b), Section 22 96.55(c), Subpart E, and Subpart I. In addition, the Agency 23 shall propose and the Board shall adopt regulations to 24 implement NOx emission reduction programs for cement kilns 25 and stationary internal combustion engines. 26 (c) Allocations of NOx allowances to large electric 27 generating units ("EGUs") and large non-electric generating 28 units ("non-EGUs"), as defined by 40 CFR Part 96.4(a), shall 29 not exceed the State's trading budget for those source 30 categories to be included in the State Implementation Plan 31 for NOx. 32 (d) In adopting regulations to implement the NOx Trading 33 Program, the Board shall: 34 (1) assure that the economic impact and technical HB1599 Enrolled -116- LRB9207178TAcs 1 feasibility of NOx emissions reductions under the NOx 2 Trading Program are considered relative to the 3 traditional regulatory control requirements in the State 4 for EGUs and non-EGUs; 5 (2) provide that emission units, as defined in 6 Section 39.5(1) of this Act, may opt into the NOx Trading 7 Program; 8 (3) provide for voluntary reductions of NOx 9 emissions from emission units, as defined in Section 10 39.5(1) of this Act, not otherwise included under 11 paragraph (c) or (d)(2) of this Section to provide 12 additional allowances to EGUs and non-EGUs to be 13 allocated by the Agency. The regulations shall further 14 provide that such voluntary reductions are verifiable, 15 quantifiable, permanent, and federally enforceable; 16 (4) provide that the Agency allocate to non-EGUs 17 allowances that are designated in the rule, unless the 18 Agency has been directed to transfer the allocations to 19 another unit subject to the requirements of the NOx 20 Trading Program, and that upon shutdown of a non-EGU, the 21 unit may transfer or sell the NOx allowances that are 22 allocated to such unit; and 23 (5) provide that the Agency shall set aside 24 annually a number of allowances, not to exceed 5% of the 25 total EGU trading budget, to be made available to new 26 EGUs. 27 (A) Those EGUs that commence commercial 28 operation, as defined in 40 CFR Section 96.2, at a 29 time that is more than half way through the control 30 period in 20032002shall return to the Agency any 31 allowances that were issued to it by the Agency and 32 were not used for compliance in 20042003. 33 (B) The Agency may charge EGUs that commence 34 commercial operation, as defined in 40 CFR Section HB1599 Enrolled -117- LRB9207178TAcs 1 96.2, on or after January 1, 2003, for the 2 allowances it issues to them. 3 (e) The Agency may adopt procedural rules, as necessary, 4 to implement the regulations promulgated by the Board 5 pursuant to subsections (b) and (d) and to implement 6 subsection (i) of this Section. 7 (f) Notwithstanding any provisions in subparts T, U, and 8 W of Section 217 of Title 35 of the Illinois Administrative 9 Code to the contrary, compliance with the regulations 10 promulgated by the Board pursuant to subsections (b) and (d) 11 of this Section is required by May 31, 2004.The regulations12promulgated by the Board pursuant to subsections (b) and (d)13of this Section shall not be enforced until the later of May141, 2003, or the first day of the control season subsequent to15the calendar year in which all of the other states subject to16the provisions of the NOx SIP Call that are located in USEPA17Region V or that are contiguous to Illinois have adopted18regulations to implement NOx trading programs and other19required reductions of NOx emissions pursuant to the NOx SIP20Call, and such regulations have received final approval by21USEPA as part of the respective states' SIPS for ozone, or a22final FIP for ozone promulgated by USEPA is effective for23such other states.24 (g) To the extent that a court of competent jurisdiction 25 finds a provision of 40 CFR Part 96 invalid, the 26 corresponding Illinois provision shall be stayed until such 27 provision of 40 CFR Part 96 is found to be valid or is 28 re-promulgated. To the extent that USEPA or any court of 29 competent jurisdiction stays the applicability of any 30 provision of the NOx SIP Call to any person or circumstance 31 relating to Illinois, during the period of that stay, the 32 effectiveness of the corresponding Illinois provision shall 33 be stayed. To the extent that the invalidity of the 34 particular requirement or application does not affect other HB1599 Enrolled -118- LRB9207178TAcs 1 provisions or applications of the NOx SIP Call pursuant to 40 2 CFR 51.121 or the NOx trading program pursuant to 40 CFR Part 3 96 or 40 CFR Part 97, this Section, and rules or regulations 4 promulgated hereunder, will be given effect without the 5 invalid provisions or applications. 6 (h) Notwithstanding any other provision of this Act, any 7 source or other authorized person that participates in the 8 NOx Trading Program shall be eligible to exchange NOx 9 allowances with other sources in accordance with this Section 10 and with regulations promulgated by the Board or the Agency. 11 (i) There is hereby created within the State Treasury an 12 interest-bearing special fund to be known as the NOx Trading 13 System Fund, which shall be used and administered by the 14 Agency for the purposes stated below: 15 (1) To accept funds from persons who purchase NOx 16 allowances from the Agency; 17 (2) To disburse the proceeds of the NOx allowances 18 sales pro-rata to the owners or operators of the EGUs 19 that received allowances from the Agency but not from the 20 Agency's set-aside, in accordance with regulations that 21 may be promulgated by the Agency; and 22 (3) To finance the reasonable costs incurred by the 23 Agency in the administration of the NOx Trading System. 24 (Source: P.A. 91-631, eff. 8-19-99.) 25 (415 ILCS 5/9.10 new) 26 Sec. 9.10. Fossil fuel-fired electric generating plants. 27 (a) The General Assembly finds and declares that: 28 (1) fossil fuel-fired electric generating plants 29 are a significant source of air emissions in this State 30 and have become the subject of a number of important new 31 studies of their effects on the public health; 32 (2) existing state and federal policies, that allow 33 older plants that meet federal standards to operate HB1599 Enrolled -119- LRB9207178TAcs 1 without meeting the more stringent requirements 2 applicable to new plants, are being questioned on the 3 basis of their environmental impacts and the economic 4 distortions such policies cause in a deregulated energy 5 market; 6 (3) fossil fuel-fired electric generating plants 7 are, or may be, affected by a number of regulatory 8 programs, some of which are under review or development 9 on the state and national levels, and to a certain extent 10 the international level, including the federal acid rain 11 program, tropospheric ozone, mercury and other hazardous 12 pollutant control requirements, regional haze, and global 13 warming; 14 (4) scientific uncertainty regarding the formation 15 of certain components of regional haze and the air 16 quality modeling that predict impacts of control measures 17 requires careful consideration of the timing of the 18 control of some of the pollutants from these facilities, 19 particularly sulfur dioxides and nitrogen oxides that 20 each interact with ammonia and other substances in the 21 atmosphere; 22 (5) the development of energy policies to promote a 23 safe, sufficient, reliable, and affordable energy supply 24 on the state and national levels is being affected by the 25 on-going deregulation of the power generation industry 26 and the evolving energy markets; 27 (6) the Governor's formation of an Energy Cabinet 28 and the development of a State energy policy calls for 29 actions by the Agency and the Board that are in harmony 30 with the energy needs and policy of the State, while 31 protecting the public health and the environment; 32 (7) Illinois coal is an abundant resource and an 33 important component of Illinois' economy whose use should 34 be encouraged to the greatest extent possible consistent HB1599 Enrolled -120- LRB9207178TAcs 1 with protecting the public health and the environment; 2 (8) renewable forms of energy should be promoted as 3 an important element of the energy and environmental 4 policies of the State and that it is a goal of the State 5 that at least 5% of the State's energy production and use 6 be derived from renewable forms of energy by 2010 and at 7 least 15% from renewable forms of energy by 2020; 8 (9) efforts on the state and federal levels are 9 underway to consider the multiple environmental 10 regulations affecting electric generating plants in order 11 to improve the ability of government and the affected 12 industry to engage in effective planning through the use 13 of multi-pollutant strategies; and 14 (10) these issues, taken together, call for a 15 comprehensive review of the impact of these facilities on 16 the public health, considering also the energy supply, 17 reliability, and costs, the role of renewable forms of 18 energy, and the developments in federal law and 19 regulations that may affect any state actions, prior to 20 making final decisions in Illinois. 21 (b) Taking into account the findings and declarations of 22 the General Assembly contained in subsection (a) of this 23 Section, the Agency shall, before September 30, 2004, but not 24 before September 30, 2003, issue to the House and Senate 25 Committees on Environment and Energy findings that address 26 the potential need for the control or reduction of emissions 27 from fossil fuel-fired electric generating plants, including 28 the following provisions: 29 (1) reduction of nitrogen oxide emissions, as 30 appropriate, with consideration of maximum annual 31 emissions rate limits or establishment of an emissions 32 trading program and with consideration of the 33 developments in federal law and regulations that may 34 affect any State action, prior to making final decisions HB1599 Enrolled -121- LRB9207178TAcs 1 in Illinois; 2 (2) reduction of sulfur dioxide emissions, as 3 appropriate, with consideration of maximum annual 4 emissions rate limits or establishment of an emissions 5 trading program and with consideration of the 6 developments in federal law and regulations that may 7 affect any State action, prior to making final decisions 8 in Illinois; 9 (3) incentives to promote renewable sources of 10 energy consistent with item (8) of subsection (a) of 11 this Section; 12 (4) reduction of mercury as appropriate, 13 consideration of the availability of control technology, 14 industry practice requirements, or incentive programs, or 15 some combination of these approaches that are sufficient 16 to prevent unacceptable local impacts from individual 17 facilities and with consideration of the developments in 18 federal law and regulations that may affect any state 19 action, prior to making final decisions in Illinois; and 20 (5) establishment of a banking system, consistent 21 with the United States Department of Energy's voluntary 22 reporting system, for certifying credits for voluntary 23 offsets of emissions of greenhouse gases, as identified 24 by the United States Environmental Protection Agency, or 25 other voluntary reductions of greenhouse gases. Such 26 reduction efforts may include, but are not limited to, 27 carbon sequestration, technology-based control measures, 28 energy efficiency measures, and the use of renewable 29 energy sources. 30 The Agency shall consider the impact on the public 31 health, considering also energy supply, reliability and 32 costs, the role of renewable forms of energy, and 33 developments in federal law and regulations that may affect 34 any state actions, prior to making final decisions in HB1599 Enrolled -122- LRB9207178TAcs 1 Illinois. 2 (c) Nothing in this Section is intended to or should be 3 interpreted in a manner to limit or restrict the authority of 4 the Illinois Environmental Protection Agency to propose, or 5 the Illinois Pollution Control Board to adopt, any 6 regulations applicable or that may become applicable to the 7 facilities covered by this Section that are required by 8 federal law. 9 (d) The Agency may file proposed rules with the Board to 10 effectuate its findings provided to the Senate Committee on 11 Environment and Energy and the House Committee on Environment 12 and Energy in accordance with subsection (b) of this Section. 13 Any such proposal shall not be submitted sooner than 90 days 14 after the issuance of the findings provided for in subsection 15 (b) of this Section. The Board shall take action on any such 16 proposal within one year of the Agency's filing of the 17 proposed rules. 18 (e) This Section shall apply only to those electrical 19 generating units that are subject to the provisions of 20 Subpart W of Part 217 of Title 35 of the Illinois 21 Administrative Code, as promulgated by the Illinois Pollution 22 Control Board on December 21, 2000. 23 Section 955. The Illinois Development Finance Authority 24 Act is amended by adding Section 7.90 as follows: 25 (20 ILCS 3505/7.90 new) 26 Sec. 7.90. Clean Coal and Energy Project Financing. 27 (a) Findings and declaration of policy. It is hereby 28 found and declared that Illinois has abundant coal resources 29 and, in some areas of Illinois, the demand for power exceeds 30 the generating capacity. Incentives to encourage the 31 construction of coal-fired electric generating plants in 32 Illinois to ensure power-generating capacity into the future HB1599 Enrolled -123- LRB9207178TAcs 1 are in the best interests of all of the citizens of Illinois. 2 The Authority is authorized to issue bonds to help finance 3 Clean Coal and Energy projects pursuant to this Section and 4 under this Act. 5 (b) Definition. "Clean Coal and Energy projects" means 6 new electric generating facilities, as defined in Section 7 605-332 of the Department of Commerce and Community Affairs 8 Law of the Civil Administrative Code of Illinois, which may 9 include mine-mouth power plants, projects that employ the use 10 of clean coal technology, projects to develop alternative 11 energy sources, including renewable energy projects, projects 12 to provide scrubber technology for existing energy generating 13 plants, or projects to provide electric transmission 14 facilities. 15 (c) Creation of reserve funds. The Authority may 16 establish and maintain one or more reserve funds to enhance 17 bonds issued by the Authority for Clean Coal and Energy 18 projects under this Section. There may be one or more 19 accounts in these reserve funds in which there may be 20 deposited: 21 (1) any proceeds of bonds issued by the Authority 22 required to be deposited therein by the terms of any 23 contract between the Authority and its bondholders or any 24 resolution of the Authority; 25 (2) any other moneys or funds of the Authority that 26 it may determine to deposit therein from any other 27 source; and 28 (3) any other moneys or funds made available to the 29 Authority. 30 Subject to the terms of any pledge to the owners of any 31 bonds, moneys in any reserve fund may be held and applied to 32 the payment of the interest, premium, if any, or principal of 33 bonds or for any other purpose authorized by the Authority. 34 (d) Powers and duties. The Authority has the power: HB1599 Enrolled -124- LRB9207178TAcs 1 (1) To issue bonds in one or more series pursuant 2 to one or more resolutions of the Authority for any Clean 3 Coal and Energy projects authorized under this Section, 4 within the authorization set forth in subsection (e). 5 (2) To provide for the funding of any reserves or 6 other funds or accounts deemed necessary by the Authority 7 in connection with any bonds issued by the Authority. 8 (3) To pledge any funds of the Authority or funds 9 made available to the Authority that may be applied to 10 such purpose as security for any bonds or any guarantees, 11 letters of credit, insurance contracts, or similar credit 12 support or liquidity instruments securing the bonds. 13 (4) To enter into agreements or contracts with 14 third parties, whether public or private, including, 15 without limitation, the United States of America, the 16 State, or any department or agency thereof, to obtain any 17 appropriations, grants, loans, or guarantees that are 18 deemed necessary or desirable by the Authority. Any such 19 guarantee, agreement, or contract may contain terms and 20 provisions necessary or desirable in connection with the 21 program, subject to the requirements established by the 22 Act. 23 (5) To exercise such other powers as are necessary 24 or incidental to the foregoing. 25 (e) Clean Coal Energy bond authorization and financing 26 limits. In addition to any other bonds authorized to be 27 issued under this Act, the Authority may have outstanding, at 28 any time, bonds for the purpose enumerated in this Section in 29 an aggregate principal amount that shall not exceed 30 $3,000,000,000, of which no more than $300,000,000 may be 31 issued to finance transmission facilities, no more than 32 $500,000,000 may be issued to finance scrubbers at existing 33 generating plants, no more than $500,000,000 may be issued to 34 finance alternative energy sources, including renewable HB1599 Enrolled -125- LRB9207178TAcs 1 energy projects, and no more than $1,700,000,000 may be 2 issued to finance new electric generating facilities, as 3 defined in Section 605-332 of the Department of Commerce and 4 Community Affairs Law of the Civil Administrative Code of 5 Illinois, which may include mine-mouth power plants. An 6 application for a loan financed from bond proceeds from a 7 borrower or its affiliates for a Clean Coal and Energy 8 project may not be approved by the Authority for an amount in 9 excess of $450,000,000 for any borrower or its affiliates. 10 These bonds shall not constitute an indebtedness or 11 obligation of the State of Illinois and it shall be plainly 12 stated on the face of each bond that it does not constitute 13 an indebtedness or obligation of the State of Illinois but is 14 payable solely from the revenues, income, or other assets of 15 the Authority pledged therefor. 16 (f) Criteria for participation in the program. 17 Applications to the Authority for financing of any Clean Coal 18 and Energy project shall be reviewed by the Authority. Upon 19 submission of any such application, the Authority staff shall 20 review the application for its completeness and may, at the 21 discretion of the Authority staff, request such additional 22 information as it deems necessary or advisable to aid in 23 review. If the Authority receives applications for financing 24 for Clean Coal and Energy projects in excess of the bond 25 authorization available for such financing at any one time, 26 it shall consider applications in the order of priority as it 27 shall determine, in consultation with other State agencies. 28 Section 999. Effective date. This Act takes effect on 29 July 1, 2001.