IL
Illinois House Bill HB2484

Illinois 2023-2024 Regular Session

Illinois House Bill HB2484 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2484 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 20 ILCS 663/520 ILCS 663/2020 ILCS 663/2520 ILCS 663/4020 ILCS 663/4520 ILCS 663/55 Amends the New Markets Development Program Act. Provides that the Department of Commerce and Economic Opportunity shall limit the monetary amount of qualified equity investments at no more than $20,000,000 of tax credits for the primary allocation and no more than $12,000,000 of tax credits for the targeted allocation. Provides that, on or after January 1, 2024, but not more than 120 days after the Community Development Financial Institutions Fund of the United States Department of the Treasury announces allocation awards under a Notice of Funding Availability that was published in the Federal Register on November 22, 2022, $250,000,000 of qualified equity investments for the primary allocation and $150,000,000 of qualified equity investments for the targeted allocation shall be allocated by the Department. Makes other changes. Defines terms. Effective immediately. LRB103 30885 HLH 57416 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2484 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 20 ILCS 663/520 ILCS 663/2020 ILCS 663/2520 ILCS 663/4020 ILCS 663/4520 ILCS 663/55 20 ILCS 663/5 20 ILCS 663/20 20 ILCS 663/25 20 ILCS 663/40 20 ILCS 663/45 20 ILCS 663/55 Amends the New Markets Development Program Act. Provides that the Department of Commerce and Economic Opportunity shall limit the monetary amount of qualified equity investments at no more than $20,000,000 of tax credits for the primary allocation and no more than $12,000,000 of tax credits for the targeted allocation. Provides that, on or after January 1, 2024, but not more than 120 days after the Community Development Financial Institutions Fund of the United States Department of the Treasury announces allocation awards under a Notice of Funding Availability that was published in the Federal Register on November 22, 2022, $250,000,000 of qualified equity investments for the primary allocation and $150,000,000 of qualified equity investments for the targeted allocation shall be allocated by the Department. Makes other changes. Defines terms. Effective immediately. LRB103 30885 HLH 57416 b LRB103 30885 HLH 57416 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2484 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
33 20 ILCS 663/520 ILCS 663/2020 ILCS 663/2520 ILCS 663/4020 ILCS 663/4520 ILCS 663/55 20 ILCS 663/5 20 ILCS 663/20 20 ILCS 663/25 20 ILCS 663/40 20 ILCS 663/45 20 ILCS 663/55
44 20 ILCS 663/5
55 20 ILCS 663/20
66 20 ILCS 663/25
77 20 ILCS 663/40
88 20 ILCS 663/45
99 20 ILCS 663/55
1010 Amends the New Markets Development Program Act. Provides that the Department of Commerce and Economic Opportunity shall limit the monetary amount of qualified equity investments at no more than $20,000,000 of tax credits for the primary allocation and no more than $12,000,000 of tax credits for the targeted allocation. Provides that, on or after January 1, 2024, but not more than 120 days after the Community Development Financial Institutions Fund of the United States Department of the Treasury announces allocation awards under a Notice of Funding Availability that was published in the Federal Register on November 22, 2022, $250,000,000 of qualified equity investments for the primary allocation and $150,000,000 of qualified equity investments for the targeted allocation shall be allocated by the Department. Makes other changes. Defines terms. Effective immediately.
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1616 1 AN ACT concerning State government.
1717 2 Be it enacted by the People of the State of Illinois,
1818 3 represented in the General Assembly:
1919 4 Section 5. The New Markets Development Program Act is
2020 5 amended by changing Sections 5, 20, 25, 40, 45, and 55 as
2121 6 follows:
2222 7 (20 ILCS 663/5)
2323 8 Sec. 5. Definitions. As used in this Act:
2424 9 "Applicable percentage" means 0% for each of the first 2
2525 10 credit allowance dates, 7% for the third credit allowance
2626 11 date, and 8% for the next 4 credit allowance dates.
2727 12 "Credit allowance date" means with respect to any
2828 13 qualified equity investment:
2929 14 (1) the date on which the investment is initially
3030 15 made; and
3131 16 (2) each of the 6 anniversary dates of that date
3232 17 thereafter.
3333 18 "Department" means the Department of Commerce and Economic
3434 19 Opportunity.
3535 20 "Long-term debt security" means any debt instrument issued
3636 21 by a qualified community development entity, at par value or a
3737 22 premium, with an original maturity date of at least 7 years
3838 23 from the date of its issuance, with no acceleration of
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4242 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2484 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
4343 20 ILCS 663/520 ILCS 663/2020 ILCS 663/2520 ILCS 663/4020 ILCS 663/4520 ILCS 663/55 20 ILCS 663/5 20 ILCS 663/20 20 ILCS 663/25 20 ILCS 663/40 20 ILCS 663/45 20 ILCS 663/55
4444 20 ILCS 663/5
4545 20 ILCS 663/20
4646 20 ILCS 663/25
4747 20 ILCS 663/40
4848 20 ILCS 663/45
4949 20 ILCS 663/55
5050 Amends the New Markets Development Program Act. Provides that the Department of Commerce and Economic Opportunity shall limit the monetary amount of qualified equity investments at no more than $20,000,000 of tax credits for the primary allocation and no more than $12,000,000 of tax credits for the targeted allocation. Provides that, on or after January 1, 2024, but not more than 120 days after the Community Development Financial Institutions Fund of the United States Department of the Treasury announces allocation awards under a Notice of Funding Availability that was published in the Federal Register on November 22, 2022, $250,000,000 of qualified equity investments for the primary allocation and $150,000,000 of qualified equity investments for the targeted allocation shall be allocated by the Department. Makes other changes. Defines terms. Effective immediately.
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8383 1 repayment, amortization, or prepayment features prior to its
8484 2 original maturity date. Cumulative cash payments of interest
8585 3 on the qualified debt instrument during the period commencing
8686 4 with the issuance of the qualified debt instrument and ending
8787 5 with the seventh anniversary of its issuance shall not exceed
8888 6 the sum of such cash interest payments and the cumulative net
8989 7 income of the issuing community development entity for the
9090 8 same period. This definition in no way limits the holder's
9191 9 ability to accelerate payments on the debt instrument in
9292 10 situations where the issuer has defaulted on covenants
9393 11 designed to ensure compliance with this Act or Section 45D of
9494 12 the Internal Revenue Code of 1986, as amended.
9595 13 "Primary allocation" means $250,000,000 in qualified
9696 14 equity investment authority to be awarded on or after January
9797 15 1, 2024 for investment in qualified active low-income
9898 16 community businesses.
9999 17 "Purchase price" means the amount paid to the issuer of a
100100 18 qualified equity investment for that qualified equity
101101 19 investment.
102102 20 "Qualified active low-income community business" has the
103103 21 meaning given to that term in Section 45D of the Internal
104104 22 Revenue Code of 1986, as amended; except that any business
105105 23 that derives or projects to derive 15% or more of its annual
106106 24 revenue from the rental or sale of real estate is not
107107 25 considered to be a qualified active low-income community
108108 26 business. This exception does not apply to a business that is
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119119 1 controlled by or under common control with another business if
120120 2 the second business (i) does not derive or project to derive
121121 3 15% or more of its annual revenue from the rental or sale of
122122 4 real estate and (ii) is the primary tenant of the real estate
123123 5 leased from the initial business. A business shall be
124124 6 considered a qualified active low-income community business
125125 7 for the duration of the qualified community development
126126 8 entity's investment in or loan to the business if the entity
127127 9 reasonably expects, at the time it makes the investment or
128128 10 loan, that the business will continue to satisfy the
129129 11 requirements for being a qualified active low-income community
130130 12 business throughout the entire period of the investment or
131131 13 loan.
132132 14 "Qualified community development entity" has the meaning
133133 15 given to that term in Section 45D of the Internal Revenue Code
134134 16 of 1986, as amended; provided that such entity has entered
135135 17 into, or is controlled by an entity that has entered into, an
136136 18 allocation agreement with the Community Development Financial
137137 19 Institutions Fund of the U.S. Treasury Department with respect
138138 20 to credits authorized by Section 45D of the Internal Revenue
139139 21 Code of 1986, as amended, that includes the State of Illinois
140140 22 within the service area set forth in that allocation
141141 23 agreement.
142142 24 "Qualified equity investment" means any equity investment
143143 25 in, or long-term debt security issued by, a qualified
144144 26 community development entity that:
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155155 1 (1) is acquired after the effective date of this Act
156156 2 at its original issuance solely in exchange for cash;
157157 3 (2) with respect to qualified equity investments made
158158 4 before January 1, 2024 2017, has at least 85% of its cash
159159 5 purchase price used by the issuer to make qualified
160160 6 low-income community investments in the State of Illinois,
161161 7 and, with respect to qualified equity investments made on
162162 8 or after January 1, 2024 2017, has 100% of the cash
163163 9 purchase price used by the issuer to make qualified
164164 10 low-income community investments in the State of Illinois;
165165 11 and
166166 12 (3) is designated by the issuer as a qualified equity
167167 13 investment under this Act; with respect to qualified
168168 14 equity investments made on or after January 1, 2024 2017,
169169 15 is designated by the issuer as a qualified equity
170170 16 investment under Section 45D of the Internal Revenue Code
171171 17 of 1986, as amended; and is certified by the Department as
172172 18 not exceeding the limitation contained in Section 20.
173173 19 This term includes any qualified equity investment that
174174 20 does not meet the provisions of item (1) of this definition if
175175 21 the investment was a qualified equity investment in the hands
176176 22 of a prior holder.
177177 23 "Qualified low-income community investment" means any
178178 24 capital or equity investment in, or loan to, any qualified
179179 25 active low-income community business. With respect to any one
180180 26 qualified active low-income community business, the maximum
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191191 1 amount of qualified low-income community investments made in
192192 2 that business, on a collective basis with all of its
193193 3 affiliates that may be counted towards the satisfaction of
194194 4 paragraph (2) of the definition of qualified equity
195195 5 investment, shall be $10,000,000 whether issued to one or
196196 6 several qualified community development entities.
197197 7 "Targeted allocation" means $150,000,000 in qualified
198198 8 equity investment authority to be awarded for investment in
199199 9 qualified active low-income community businesses engaged in
200200 10 targeted industries.
201201 11 "Targeted industries" means any business engaged in an
202202 12 activity classified by the North American Industry
203203 13 Classification System (NAICS) as Sector 11, 31-33, or 2211.
204204 14 "Tax credit" means a credit against any income, franchise,
205205 15 or insurance premium taxes, including insurance retaliatory
206206 16 taxes, otherwise due under Illinois law.
207207 17 "Taxpayer" means any individual or entity subject to any
208208 18 income, franchise, or insurance premium tax under Illinois
209209 19 law.
210210 20 (Source: P.A. 100-408, eff. 8-25-17.)
211211 21 (20 ILCS 663/20)
212212 22 Sec. 20. Annual cap on credits. The Department shall limit
213213 23 the monetary amount of qualified equity investments permitted
214214 24 under this Act to a level necessary to limit tax credit use at
215215 25 no more than $20,000,000 of tax credits for the primary
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226226 1 allocation and no more than $12,000,000 of tax credits for the
227227 2 targeted allocation in any fiscal year. This limitation on
228228 3 qualified equity investments shall be based on the anticipated
229229 4 use of credits without regard to the potential for taxpayers
230230 5 to carry forward tax credits to later tax years.
231231 6 (Source: P.A. 100-408, eff. 8-25-17.)
232232 7 (20 ILCS 663/25)
233233 8 Sec. 25. Certification of qualified equity investments.
234234 9 (a) A qualified community development entity that seeks to
235235 10 have an equity investment or long-term debt security
236236 11 designated as a qualified equity investment and eligible for
237237 12 tax credits under this Section shall apply to the Department.
238238 13 The qualified community development entity must submit an
239239 14 application on a form that the Department provides that
240240 15 includes:
241241 16 (1) The name, address, tax identification number of
242242 17 the entity, and evidence of the entity's certification as
243243 18 a qualified community development entity.
244244 19 (2) A copy of the allocation agreement executed by the
245245 20 entity, or its controlling entity, and the Community
246246 21 Development Financial Institutions Fund.
247247 22 (3) A certificate executed by an executive officer of
248248 23 the entity attesting that the allocation agreement remains
249249 24 in effect and has not been revoked or cancelled by the
250250 25 Community Development Financial Institutions Fund.
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261261 1 (4) A description of the proposed amount, structure,
262262 2 and purchaser of the equity investment or long-term debt
263263 3 security and, for applications submitted after January 1,
264264 4 2024, whether qualified equity investment authority is
265265 5 sought under the primary allocation or the targeted
266266 6 allocation.
267267 7 (5) The name and tax identification number of any
268268 8 taxpayer eligible to utilize tax credits earned as a
269269 9 result of the issuance of the qualified equity investment.
270270 10 (6) Information regarding the proposed use of proceeds
271271 11 from the issuance of the qualified equity investment.
272272 12 (7) A nonrefundable application fee of $5,000. This
273273 13 fee shall be paid to the Department and shall be required
274274 14 of each application submitted.
275275 15 (7.5) For applications submitted after January 1,
276276 16 2024, a description of whether a qualified community
277277 17 development entity is applying for the primary allocation
278278 18 or the targeted allocation.
279279 19 (8) With respect to qualified equity investments made
280280 20 on or after January 1, 2017, the amount of qualified
281281 21 equity investment authority the applicant agrees to
282282 22 designate as a federal qualified equity investment under
283283 23 Section 45D of the Internal Revenue Code, including a copy
284284 24 of the screen shot from the Community Development
285285 25 Financial Institutions Fund's Allocation Tracking System
286286 26 of the applicant's remaining federal qualified equity
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297297 1 investment authority.
298298 2 (b) Within 30 days after receipt of a completed
299299 3 application containing the information necessary for the
300300 4 Department to certify a potential qualified equity investment,
301301 5 including the payment of the application fee, the Department
302302 6 shall grant or deny the application in full or in part. If the
303303 7 Department denies any part of the application, it shall inform
304304 8 the qualified community development entity of the grounds for
305305 9 the denial. If the qualified community development entity
306306 10 provides any additional information required by the Department
307307 11 or otherwise completes its application within 15 days of the
308308 12 notice of denial, the application shall be considered
309309 13 completed as of the original date of submission. If the
310310 14 qualified community development entity fails to provide the
311311 15 information or complete its application within the 15-day
312312 16 period, the application remains denied and must be resubmitted
313313 17 in full with a new submission date.
314314 18 (c) If the application is deemed complete, the Department
315315 19 shall certify the proposed equity investment or long-term debt
316316 20 security as a qualified equity investment that is eligible for
317317 21 tax credits under this Section, subject to the limitations
318318 22 contained in Section 20. The Department shall provide written
319319 23 notice of the certification to the qualified community
320320 24 development entity. The notice shall include the names of
321321 25 those taxpayers who are eligible to utilize the credits and
322322 26 their respective credit amounts. If the names of the taxpayers
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333333 1 who are eligible to utilize the credits change due to a
334334 2 transfer of a qualified equity investment or a change in an
335335 3 allocation pursuant to Section 15, the qualified community
336336 4 development entity shall notify the Department of such change.
337337 5 (d) With respect to applications received before January
338338 6 1, 2017, the Department shall certify qualified equity
339339 7 investments in the order applications are received by the
340340 8 Department. Applications received on the same day shall be
341341 9 deemed to have been received simultaneously. For applications
342342 10 received on the same day and deemed complete, the Department
343343 11 shall certify, consistent with remaining tax credit capacity,
344344 12 qualified equity investments in proportionate percentages
345345 13 based upon the ratio of the amount of qualified equity
346346 14 investment requested in an application to the total amount of
347347 15 qualified equity investments requested in all applications
348348 16 received on the same day.
349349 17 (d-5) With respect to applications received on or after
350350 18 January 1, 2017, the Department shall certify applications by
351351 19 applicants that agree to designate qualified equity
352352 20 investments as federal qualified equity investments in
353353 21 accordance with item (8) of subsection (a) of this Section in
354354 22 proportionate percentages based upon the ratio of the amount
355355 23 of qualified equity investments requested in an application to
356356 24 be designated as federal qualified equity investments to the
357357 25 total amount of qualified equity investments to be designated
358358 26 as federal qualified equity investments requested in all
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369369 1 applications received on the same day.
370370 2 (d-10) With respect to applications received on or after
371371 3 January 1, 2017, after complying with subsection (d-5), the
372372 4 Department shall certify the qualified equity investments of
373373 5 all other applicants, including the remaining qualified equity
374374 6 investment authority requested by applicants not designated as
375375 7 federal qualified equity investments in accordance with item
376376 8 (8) of subsection (a) of this Section, in proportionate
377377 9 percentages based upon the ratio of the amount of qualified
378378 10 equity investments requested in the applications to the total
379379 11 amount of qualified equity investments requested in all
380380 12 applications received on the same day.
381381 13 (e) Once the Department has certified qualified equity
382382 14 investments that, on a cumulative basis, are eligible for
383383 15 $20,000,000 in tax credits for the primary allocation and
384384 16 $12,000,000 in tax credits for the targeted allocation, the
385385 17 Department may not certify any more qualified equity
386386 18 investments. If a pending request cannot be fully certified,
387387 19 the Department shall certify the portion that may be certified
388388 20 unless the qualified community development entity elects to
389389 21 withdraw its request rather than receive partial credit.
390390 22 (f) Within 30 days after receiving notice of
391391 23 certification, the qualified community development entity
392392 24 shall (i) issue the qualified equity investment and receive
393393 25 cash in the amount of the certified amount and (ii) with
394394 26 respect to qualified equity investments made on or after
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405405 1 January 1, 2017, if applicable, designate the required amount
406406 2 of qualified equity investment authority as a federal
407407 3 qualified equity investment. The qualified community
408408 4 development entity must provide the Department with evidence
409409 5 of the receipt of the cash investment within 10 business days
410410 6 after receipt and, with respect to qualified equity
411411 7 investments made on or after January 1, 2017, if applicable,
412412 8 provide evidence that the required amount of qualified equity
413413 9 investment authority was designated as a federal qualified
414414 10 equity investment. If the qualified community development
415415 11 entity does not receive the cash investment and issue the
416416 12 qualified equity investment within 30 days following receipt
417417 13 of the certification notice, the certification shall lapse and
418418 14 the entity may not issue the qualified equity investment
419419 15 without reapplying to the Department for certification. A
420420 16 certification that lapses reverts back to the Department and
421421 17 may be reissued only in accordance with the application
422422 18 process outline in this Section 25.
423423 19 (g) Allocation rounds enabled by this Act shall be applied
424424 20 for according to the following schedule:
425425 21 (1) on January 2, 2019, $125,000,000 of qualified
426426 22 equity investments; and
427427 23 (2) not less than 45 days after but not more than 90
428428 24 days after the Community Development Financial
429429 25 Institutions Fund of the United States Department of the
430430 26 Treasury announces allocation awards under a Notice of
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441441 1 Funding Availability that is published in the Federal
442442 2 Register after September 6, 2019, $125,000,000 of
443443 3 qualified equity investments.
444444 4 (3) on or after January 1, 2024, but not more than 120
445445 5 days after the Community Development Financial
446446 6 Institutions Fund of the United States Department of the
447447 7 Treasury announces allocation awards under a Notice of
448448 8 Funding Availability that was published in the Federal
449449 9 Register on November 22, 2022, $250,000,000 of qualified
450450 10 equity investments for the primary allocation and
451451 11 $150,000,000 of qualified equity investments for the
452452 12 targeted allocation.
453453 13 (Source: P.A. 100-408, eff. 8-25-17; 101-604, eff. 12-13-19.)
454454 14 (20 ILCS 663/40)
455455 15 Sec. 40. Recapture. The Department of Revenue shall
456456 16 recapture, from the taxpayer that claimed the credit on a
457457 17 return, the tax credit allowed under this Act if:
458458 18 (1) any amount of the federal tax credit available
459459 19 with respect to a qualified equity investment that is
460460 20 eligible for a tax credit under this Act is recaptured
461461 21 under Section 45D of the Internal Revenue Code of 1986, as
462462 22 amended. In that case, the Department of Revenue's
463463 23 recapture shall be proportionate to the federal recapture
464464 24 with respect to that qualified equity investment;
465465 25 (2) the issuer redeems or makes principal repayment
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476476 1 with respect to a qualified equity investment prior to the
477477 2 7th anniversary of the issuance of the qualified equity
478478 3 investment. In that case, the Department of Revenue's
479479 4 recapture shall be proportionate to the amount of the
480480 5 redemption or repayment with respect to the qualified
481481 6 equity investment;
482482 7 (3) the issuer fails to invest at least 85% of the cash
483483 8 purchase price of the qualified equity investment with
484484 9 respect to qualified equity investments made before
485485 10 January 1, 2017 and 100% of the cash purchase price of the
486486 11 qualified equity investment with respect to qualified
487487 12 equity investments made on or after January 1, 2017 in
488488 13 qualified low-income community investments in the State of
489489 14 Illinois within 12 months of the issuance of the qualified
490490 15 equity investment and maintain such level of investment in
491491 16 qualified low-income community investments in Illinois
492492 17 until the last credit allowance date for such qualified
493493 18 equity investment, provided that with respect to qualified
494494 19 equity investments made after January 1, 2024 pursuant to
495495 20 the targeted allocation, the issuer must invest 100% of
496496 21 the cash purchase price of the qualified equity investment
497497 22 in qualified low-income community investments in the State
498498 23 of Illinois in qualified active low-income community
499499 24 businesses engaged in a targeted industry within 12 months
500500 25 of the issuance of the qualified equity investment and
501501 26 maintain such level of investment in qualified low-income
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512512 1 community investments in such targeted industries until
513513 2 the last credit allowance date; or
514514 3 (4) with respect to qualified equity investments made
515515 4 on or after January 1, 2017, the issuer violates Section
516516 5 43 of this Act.
517517 6 For purposes of this Section, an investment shall be
518518 7 considered held by an issuer even if the investment has been
519519 8 sold or repaid; provided that the issuer reinvests an amount
520520 9 equal to the capital returned to or recovered by the issuer
521521 10 from the original investment, exclusive of any profits
522522 11 realized, in another qualified low-income community investment
523523 12 in this State within 12 months after the receipt of that
524524 13 capital. An issuer is not required to reinvest capital
525525 14 returned from qualified low-income community investments after
526526 15 the 6th anniversary of the issuance of the qualified equity
527527 16 investment, the proceeds of which were used to make the
528528 17 qualified low-income community investment, and the qualified
529529 18 low-income community investment shall be considered held by
530530 19 the issuer through the 7th anniversary of the qualified equity
531531 20 investment's issuance.
532532 21 The Department of Revenue shall provide notice to the
533533 22 qualified community development entity of any proposed
534534 23 recapture of tax credits pursuant to this Section. The entity
535535 24 shall have 90 days to cure any deficiency indicated in the
536536 25 Department of Revenue's original recapture notice and avoid
537537 26 such recapture. If the entity fails or is unable to cure such
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548548 1 deficiency with the 90-day period, the Department of Revenue
549549 2 shall provide the entity and the taxpayer from whom the credit
550550 3 is to be recaptured with a final order of recapture. Any tax
551551 4 credit for which a final recapture order has been issued shall
552552 5 be recaptured by the Department of Revenue from the taxpayer
553553 6 who claimed the tax credit on a tax return.
554554 7 (Source: P.A. 100-408, eff. 8-25-17.)
555555 8 (20 ILCS 663/45)
556556 9 Sec. 45. Examination and Rulemaking.
557557 10 (a) The Department may conduct examinations to verify that
558558 11 the tax credits under this Act have been received and applied
559559 12 according to the requirements of this Act and to verify that no
560560 13 event has occurred that would result in a recapture of tax
561561 14 credits under Section 40.
562562 15 (b) Neither the Department nor the Department of Revenue
563563 16 shall have the authority to promulgate rules under the Act,
564564 17 but, with respect to qualified equity investments issued
565565 18 before January 1, 2024, the Department and the Department of
566566 19 Revenue shall have the authority to issue advisory letters to
567567 20 individual qualified community development entities and their
568568 21 investors that are limited to the specific facts outlined in
569569 22 an advisory letter request from a qualified community
570570 23 development entity. Such rulings cannot be relied upon by any
571571 24 person or entity other than the qualified community
572572 25 development entity that requested the letter and the taxpayers
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583583 1 that are entitled to any tax credits generated from
584584 2 investments in such entity. For purposes of this subsection,
585585 3 "rules" is given the meaning contained in Section 1-70 of the
586586 4 Illinois Administrative Procedure Act.
587587 5 (c) In rendering advisory letters and making other
588588 6 determinations under this Act prior to January 1, 2024, to the
589589 7 extent applicable, the Department and the Department of
590590 8 Revenue shall look for guidance to Section 45D of the Internal
591591 9 Revenue Code of 1986, as amended, and the rules and
592592 10 regulations issued thereunder.
593593 11 (d) It is the intent of the General Assembly that
594594 12 qualified equity investment structures allowed pursuant to
595595 13 advisory letters and other determinations by the Department
596596 14 and the Department of Revenue prior to January 1, 2024 shall be
597597 15 allowed under the primary allocation and the targeted
598598 16 allocation and that qualified community development entities
599599 17 may rely on the rules and regulations issued under Section 45D
600600 18 of the Internal Revenue Code of 1986, as amended, where
601601 19 applicable.
602602 20 (Source: P.A. 95-1024, eff. 12-31-08.)
603603 21 (20 ILCS 663/55)
604604 22 Sec. 55. Annual report. Each qualified community
605605 23 development entity shall submit an annual report to the
606606 24 Department within 45 days after the beginning of each calendar
607607 25 year during the compliance period. No annual report shall be
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618618 1 due prior to the first anniversary of the initial credit
619619 2 allowance date. The report shall include, but is not limited
620620 3 to, the following:
621621 4 (1) an attestation from an authorized officer of the
622622 5 qualified community development entity that the entity has
623623 6 not been the subject of any investigation by a government
624624 7 agency relating to tax credits or financial services
625625 8 during the preceding calendar year;
626626 9 (2) information with respect to all qualified
627627 10 low-income community investments made by the qualified
628628 11 community development entity, including:
629629 12 (A) the date and amount of, and bank statements or
630630 13 wire transfer reports documenting, such qualified
631631 14 low-income community investments;
632632 15 (B) the name, address, and EIN, and the North
633633 16 American Industry Classification System (NAICS) code
634634 17 for the targeted allocation, of each qualified active
635635 18 low-income community business funded by the qualified
636636 19 community development entity, the number of persons
637637 20 employed by such business at the time of the initial
638638 21 investment, and a brief description of the business,
639639 22 the financing, and community benefits of the
640640 23 financing; and
641641 24 (C) the number of employment positions maintained
642642 25 by each qualified active low-income community business
643643 26 as of the date of report or the end of the preceding
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654654 1 calendar year and the average annual salaries of such
655655 2 positions; and
656656 3 (D) the total number of employment positions
657657 4 created and retained as a result of qualified
658658 5 low-income community investments and the average
659659 6 annual salaries of those positions; and
660660 7 (3) any changes with respect to the taxpayers entitled
661661 8 to claim tax credits with respect to qualified equity
662662 9 investments issued by the qualified community development
663663 10 entity since its last report pursuant to this Section.
664664 11 The qualified community development entity is not required
665665 12 to provide the annual report set forth in this Section for
666666 13 qualified low-income community investments that have been
667667 14 redeemed or repaid.
668668 15 (Source: P.A. 100-408, eff. 8-25-17.)
669669 16 Section 99. Effective date. This Act takes effect upon
670670 17 becoming law.
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