Illinois 2023-2024 Regular Session

Illinois House Bill HB4064 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4064 Introduced , by Rep. Amy Elik SYNOPSIS AS INTRODUCED: 20 ILCS 686/2020 ILCS 686/3020 ILCS 686/4020 ILCS 686/45 Amends the Reimagining Energy and Vehicles in Illinois Act. Provides that, if the agreement is entered into on or after the effective date of the amendatory Act and before June 1, 2024 and the applicant (i) is an electric vehicle manufacturer, an electric vehicle component parts manufacturer, or a renewable energy manufacturer or (ii) has existing operations within Illinois that the applicant intends to convert or expand, in whole or in part, from traditional manufacturing to electric vehicle manufacturing, electric vehicle component parts manufacturing, renewable energy manufacturing, or electric vehicle power supply equipment manufacturing, then the applicant must (A) make an investment of at least $500,000,000 in capital improvements at the project site to be placed in service within the State within a 60-month period after approval of the application and (B) retain at least 800 full-time employee jobs in Illinois. Provides that, with respect to those agreements, a taxpayer may receive a tax credit not to exceed 75% of the incremental income tax attributable to retained employees at the applicant's project, except that, if the project is in an underserved area or an energy transition area, then the maximum amount of the credit attributable to retained employees for the applicant may be increased to an amount not to exceed 100% of the incremental income tax attributable to retained employees at the applicant's project. Effective immediately. LRB103 31959 HLH 61416 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4064 Introduced , by Rep. Amy Elik SYNOPSIS AS INTRODUCED: 20 ILCS 686/2020 ILCS 686/3020 ILCS 686/4020 ILCS 686/45 20 ILCS 686/20 20 ILCS 686/30 20 ILCS 686/40 20 ILCS 686/45 Amends the Reimagining Energy and Vehicles in Illinois Act. Provides that, if the agreement is entered into on or after the effective date of the amendatory Act and before June 1, 2024 and the applicant (i) is an electric vehicle manufacturer, an electric vehicle component parts manufacturer, or a renewable energy manufacturer or (ii) has existing operations within Illinois that the applicant intends to convert or expand, in whole or in part, from traditional manufacturing to electric vehicle manufacturing, electric vehicle component parts manufacturing, renewable energy manufacturing, or electric vehicle power supply equipment manufacturing, then the applicant must (A) make an investment of at least $500,000,000 in capital improvements at the project site to be placed in service within the State within a 60-month period after approval of the application and (B) retain at least 800 full-time employee jobs in Illinois. Provides that, with respect to those agreements, a taxpayer may receive a tax credit not to exceed 75% of the incremental income tax attributable to retained employees at the applicant's project, except that, if the project is in an underserved area or an energy transition area, then the maximum amount of the credit attributable to retained employees for the applicant may be increased to an amount not to exceed 100% of the incremental income tax attributable to retained employees at the applicant's project. Effective immediately. LRB103 31959 HLH 61416 b LRB103 31959 HLH 61416 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4064 Introduced , by Rep. Amy Elik SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 686/2020 ILCS 686/3020 ILCS 686/4020 ILCS 686/45 20 ILCS 686/20 20 ILCS 686/30 20 ILCS 686/40 20 ILCS 686/45
4	4	20 ILCS 686/20
5	5	20 ILCS 686/30
6	6	20 ILCS 686/40
7	7	20 ILCS 686/45
8	8	Amends the Reimagining Energy and Vehicles in Illinois Act. Provides that, if the agreement is entered into on or after the effective date of the amendatory Act and before June 1, 2024 and the applicant (i) is an electric vehicle manufacturer, an electric vehicle component parts manufacturer, or a renewable energy manufacturer or (ii) has existing operations within Illinois that the applicant intends to convert or expand, in whole or in part, from traditional manufacturing to electric vehicle manufacturing, electric vehicle component parts manufacturing, renewable energy manufacturing, or electric vehicle power supply equipment manufacturing, then the applicant must (A) make an investment of at least $500,000,000 in capital improvements at the project site to be placed in service within the State within a 60-month period after approval of the application and (B) retain at least 800 full-time employee jobs in Illinois. Provides that, with respect to those agreements, a taxpayer may receive a tax credit not to exceed 75% of the incremental income tax attributable to retained employees at the applicant's project, except that, if the project is in an underserved area or an energy transition area, then the maximum amount of the credit attributable to retained employees for the applicant may be increased to an amount not to exceed 100% of the incremental income tax attributable to retained employees at the applicant's project. Effective immediately.
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14	14	1 AN ACT concerning State government.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Reimagining Energy and Vehicles in Illinois
18	18	5 Act is amended by changing Sections 20, 30, 40, and 45 as
19	19	6 follows:
20	20	7 (20 ILCS 686/20)
21	21	8 Sec. 20. REV Illinois Program; project applications.
22	22	9 (a) The Reimagining Energy and Vehicles in Illinois (REV
23	23	10 Illinois) Program is hereby established and shall be
24	24	11 administered by the Department. The Program will provide
25	25	12 financial incentives to any one or more of the following: (1)
26	26	13 eligible manufacturers of electric vehicles, electric vehicle
27	27	14 component parts, and electric vehicle power supply equipment;
28	28	15 (2) battery recycling and reuse manufacturers; (3) battery raw
29	29	16 materials refining service providers; or (4) renewable energy
30	30	17 manufacturers.
31	31	18 (b) Any taxpayer planning a project to be located in
32	32	19 Illinois may request consideration for designation of its
33	33	20 project as a REV Illinois Project, by formal written letter of
34	34	21 request or by formal application to the Department, in which
35	35	22 the applicant states its intent to make at least a specified
36	36	23 level of investment and intends to hire a specified number of
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40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4064 Introduced , by Rep. Amy Elik SYNOPSIS AS INTRODUCED:
41	41	20 ILCS 686/2020 ILCS 686/3020 ILCS 686/4020 ILCS 686/45 20 ILCS 686/20 20 ILCS 686/30 20 ILCS 686/40 20 ILCS 686/45
42	42	20 ILCS 686/20
43	43	20 ILCS 686/30
44	44	20 ILCS 686/40
45	45	20 ILCS 686/45
46	46	Amends the Reimagining Energy and Vehicles in Illinois Act. Provides that, if the agreement is entered into on or after the effective date of the amendatory Act and before June 1, 2024 and the applicant (i) is an electric vehicle manufacturer, an electric vehicle component parts manufacturer, or a renewable energy manufacturer or (ii) has existing operations within Illinois that the applicant intends to convert or expand, in whole or in part, from traditional manufacturing to electric vehicle manufacturing, electric vehicle component parts manufacturing, renewable energy manufacturing, or electric vehicle power supply equipment manufacturing, then the applicant must (A) make an investment of at least $500,000,000 in capital improvements at the project site to be placed in service within the State within a 60-month period after approval of the application and (B) retain at least 800 full-time employee jobs in Illinois. Provides that, with respect to those agreements, a taxpayer may receive a tax credit not to exceed 75% of the incremental income tax attributable to retained employees at the applicant's project, except that, if the project is in an underserved area or an energy transition area, then the maximum amount of the credit attributable to retained employees for the applicant may be increased to an amount not to exceed 100% of the incremental income tax attributable to retained employees at the applicant's project. Effective immediately.
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48	48	LRB103 31959 HLH 61416 b
49	49	A BILL FOR
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58	58	20 ILCS 686/45
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77	77	1 full-time employees at a designated location in Illinois. As
78	78	2 circumstances require, the Department shall require a formal
79	79	3 application from an applicant and a formal letter of request
80	80	4 for assistance.
81	81	5 (c) In order to qualify for credits under the REV Illinois
82	82	6 Program, an applicant must:
83	83	7 (1) if the applicant is an electric vehicle
84	84	8 manufacturer:
85	85	9 (A) make an investment of at least $1,500,000,000
86	86	10 in capital improvements at the project site;
87	87	11 (B) to be placed in service within the State
88	88	12 within a 60-month period after approval of the
89	89	13 application; and
90	90	14 (C) create at least 500 new full-time employee
91	91	15 jobs; or
92	92	16 (2) if the applicant is an electric vehicle component
93	93	17 parts manufacturer or a renewable energy manufacturer:
94	94	18 (A) make an investment of at least $300,000,000 in
95	95	19 capital improvements at the project site;
96	96	20 (B) manufacture one or more parts that are
97	97	21 primarily used for electric vehicle manufacturing;
98	98	22 (C) to be placed in service within the State
99	99	23 within a 60-month period after approval of the
100	100	24 application; and
101	101	25 (D) create at least 150 new full-time employee
102	102	26 jobs; or
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113	113	1 (3) if the agreement is entered into before the
114	114	2 effective date of this amendatory Act of the 102nd General
115	115	3 Assembly and the applicant is an electric vehicle
116	116	4 manufacturer, an electric vehicle power supply equipment
117	117	5 manufacturer, an electric vehicle component part
118	118	6 manufacturer that does not qualify under paragraph (2)
119	119	7 above, a battery recycling and reuse manufacturer, or a
120	120	8 battery raw materials refining service provider:
121	121	9 (A) make an investment of at least $20,000,000 in
122	122	10 capital improvements at the project site;
123	123	11 (B) for electric vehicle component part
124	124	12 manufacturers, manufacture one or more parts that are
125	125	13 primarily used for electric vehicle manufacturing;
126	126	14 (C) to be placed in service within the State
127	127	15 within a 48-month period after approval of the
128	128	16 application; and
129	129	17 (D) create at least 50 new full-time employee
130	130	18 jobs; or
131	131	19 (3.1) if the agreement is entered into on or after the
132	132	20 effective date of this amendatory Act of the 102nd General
133	133	21 Assembly and the applicant is an electric vehicle
134	134	22 manufacturer, an electric vehicle power supply equipment
135	135	23 manufacturer, an electric vehicle component part
136	136	24 manufacturer that does not qualify under paragraph (2)
137	137	25 above, a renewable energy manufacturer that does not
138	138	26 qualify under paragraph (2) above, a battery recycling and
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149	149	1 reuse manufacturer, or a battery raw materials refining
150	150	2 service provider:
151	151	3 (A) make an investment of at least $2,500,000 in
152	152	4 capital improvements at the project site;
153	153	5 (B) in the case of electric vehicle component part
154	154	6 manufacturers, manufacture one or more parts that are
155	155	7 used for electric vehicle manufacturing;
156	156	8 (C) to be placed in service within the State
157	157	9 within a 48-month period after approval of the
158	158	10 application; and
159	159	11 (D) create the lesser of 50 new full-time employee
160	160	12 jobs or new full-time employee jobs equivalent to 10%
161	161	13 of the Statewide baseline applicable to the taxpayer
162	162	14 and any related member at the time of application; or
163	163	15 (4) if the agreement is entered into before the
164	164	16 effective date of this amendatory Act of the 102nd General
165	165	17 Assembly and the applicant is an electric vehicle
166	166	18 manufacturer or electric vehicle component parts
167	167	19 manufacturer with existing operations within Illinois that
168	168	20 intends to convert or expand, in whole or in part, the
169	169	21 existing facility from traditional manufacturing to
170	170	22 primarily electric vehicle manufacturing, electric vehicle
171	171	23 component parts manufacturing, or electric vehicle power
172	172	24 supply equipment manufacturing:
173	173	25 (A) make an investment of at least $100,000,000 in
174	174	26 capital improvements at the project site;
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185	185	1 (B) to be placed in service within the State
186	186	2 within a 60-month period after approval of the
187	187	3 application; and
188	188	4 (C) create the lesser of 75 new full-time employee
189	189	5 jobs or new full-time employee jobs equivalent to 10%
190	190	6 of the Statewide baseline applicable to the taxpayer
191	191	7 and any related member at the time of application; or
192	192	8 (4.1) if the agreement is entered into on or after the
193	193	9 effective date of this amendatory Act of the 102nd General
194	194	10 Assembly and the applicant (i) is an electric vehicle
195	195	11 manufacturer, an electric vehicle component parts
196	196	12 manufacturer, or a renewable energy manufacturer and (ii)
197	197	13 has existing operations within Illinois that the applicant
198	198	14 intends to convert or expand, in whole or in part, from
199	199	15 traditional manufacturing to electric vehicle
200	200	16 manufacturing, electric vehicle component parts
201	201	17 manufacturing, renewable energy manufacturing, or electric
202	202	18 vehicle power supply equipment manufacturing:
203	203	19 (A) make an investment of at least $100,000,000 in
204	204	20 capital improvements at the project site;
205	205	21 (B) to be placed in service within the State
206	206	22 within a 60-month period after approval of the
207	207	23 application; and
208	208	24 (C) create the lesser of 50 new full-time employee
209	209	25 jobs or new full-time employee jobs equivalent to 10%
210	210	26 of the Statewide baseline applicable to the taxpayer
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221	221	1 and any related member at the time of application; or .
222	222	2 (5) if the agreement is entered into on or after the
223	223	3 effective date of this amendatory Act of the 103rd General
224	224	4 Assembly and before June 1, 2024 and the applicant (i) is
225	225	5 an electric vehicle manufacturer, an electric vehicle
226	226	6 component parts manufacturer, or a renewable energy
227	227	7 manufacturer or (ii) has existing operations within
228	228	8 Illinois that the applicant intends to convert or expand,
229	229	9 in whole or in part, from traditional manufacturing to
230	230	10 electric vehicle manufacturing, electric vehicle component
231	231	11 parts manufacturing, renewable energy manufacturing, or
232	232	12 electric vehicle power supply equipment manufacturing:
233	233	13 (A) make an investment of at least $500,000,000 in
234	234	14 capital improvements at the project site;
235	235	15 (B) to be placed in service within the State
236	236	16 within a 60-month period after approval of the
237	237	17 application; and
238	238	18 (C) retain at least 800 full-time employee jobs at
239	239	19 the project.
240	240	20 (d) For agreements entered into prior to April 19, 2022
241	241	21 (the effective date of Public Act 102-700), for any applicant
242	242	22 creating the full-time employee jobs noted in subsection (c),
243	243	23 those jobs must have a total compensation equal to or greater
244	244	24 than 120% of the average wage paid to full-time employees in
245	245	25 the county where the project is located, as determined by the
246	246	26 U.S. Bureau of Labor Statistics. For agreements entered into
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257	257	1 on or after April 19, 2022 (the effective date of Public Act
258	258	2 102-700), for any applicant creating the full-time employee
259	259	3 jobs noted in subsection (c), those jobs must have a
260	260	4 compensation equal to or greater than 120% of the average wage
261	261	5 paid to full-time employees in a similar position within an
262	262	6 occupational group in the county where the project is located,
263	263	7 as determined by the Department.
264	264	8 (e) For any applicant, within 24 months after being placed
265	265	9 in service, it must certify to the Department that it is carbon
266	266	10 neutral or has attained certification under one of more of the
267	267	11 following green building standards:
268	268	12 (1) BREEAM for New Construction or BREEAM In-Use;
269	269	13 (2) ENERGY STAR;
270	270	14 (3) Envision;
271	271	15 (4) ISO 50001 - energy management;
272	272	16 (5) LEED for Building Design and Construction or LEED
273	273	17 for Building Operations and Maintenance;
274	274	18 (6) Green Globes for New Construction or Green Globes
275	275	19 for Existing Buildings; or
276	276	20 (7) UL 3223.
277	277	21 (f) Each applicant must outline its hiring plan and
278	278	22 commitment to recruit and hire full-time employee positions at
279	279	23 the project site. The hiring plan may include a partnership
280	280	24 with an institution of higher education to provide
281	281	25 internships, including, but not limited to, internships
282	282	26 supported by the Clean Jobs Workforce Network Program, or
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293	293	1 full-time permanent employment for students at the project
294	294	2 site. Additionally, the applicant may create or utilize
295	295	3 participants from apprenticeship programs that are approved by
296	296	4 and registered with the United States Department of Labor's
297	297	5 Bureau of Apprenticeship and Training. The applicant may apply
298	298	6 for apprenticeship education expense credits in accordance
299	299	7 with the provisions set forth in 14 Ill. Adm. Code 522. Each
300	300	8 applicant is required to report annually, on or before April
301	301	9 15, on the diversity of its workforce in accordance with
302	302	10 Section 50 of this Act. For existing facilities of applicants
303	303	11 under paragraph (3) of subsection (b) above, if the taxpayer
304	304	12 expects a reduction in force due to its transition to
305	305	13 manufacturing electric vehicle, electric vehicle component
306	306	14 parts, or electric vehicle power supply equipment, the plan
307	307	15 submitted under this Section must outline the taxpayer's plan
308	308	16 to assist with retraining its workforce aligned with the
309	309	17 taxpayer's adoption of new technologies and anticipated
310	310	18 efforts to retrain employees through employment opportunities
311	311	19 within the taxpayer's workforce.
312	312	20 (g) Each applicant must demonstrate a contractual or other
313	313	21 relationship with a recycling facility, or demonstrate its own
314	314	22 recycling capabilities, at the time of application and report
315	315	23 annually a continuing contractual or other relationship with a
316	316	24 recycling facility and the percentage of batteries used in
317	317	25 electric vehicles recycled throughout the term of the
318	318	26 agreement.
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329	329	1 (h) A taxpayer may not enter into more than one agreement
330	330	2 under this Act with respect to a single address or location for
331	331	3 the same period of time. Also, a taxpayer may not enter into an
332	332	4 agreement under this Act with respect to a single address or
333	333	5 location for the same period of time for which the taxpayer
334	334	6 currently holds an active agreement under the Economic
335	335	7 Development for a Growing Economy Tax Credit Act. This
336	336	8 provision does not preclude the applicant from entering into
337	337	9 an additional agreement after the expiration or voluntary
338	338	10 termination of an earlier agreement under this Act or under
339	339	11 the Economic Development for a Growing Economy Tax Credit Act
340	340	12 to the extent that the taxpayer's application otherwise
341	341	13 satisfies the terms and conditions of this Act and is approved
342	342	14 by the Department. An applicant with an existing agreement
343	343	15 under the Economic Development for a Growing Economy Tax
344	344	16 Credit Act may submit an application for an agreement under
345	345	17 this Act after it terminates any existing agreement under the
346	346	18 Economic Development for a Growing Economy Tax Credit Act with
347	347	19 respect to the same address or location. If a project that is
348	348	20 subject to an existing agreement under the Economic
349	349	21 Development for a Growing Economy Tax Credit Act meets the
350	350	22 requirements to be designated as a REV Illinois project under
351	351	23 this Act, including for actions undertaken prior to the
352	352	24 effective date of this Act, the taxpayer that is subject to
353	353	25 that existing agreement under the Economic Development for a
354	354	26 Growing Economy Tax Credit Act may apply to the Department to
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365	365	1 amend the agreement to allow the project to become a
366	366	2 designated REV Illinois project. Following the amendment, time
367	367	3 accrued during which the project was eligible for credits
368	368	4 under the existing agreement under the Economic Development
369	369	5 for a Growing Economy Tax Credit Act shall count toward the
370	370	6 duration of the credit subject to limitations described in
371	371	7 Section 40 of this Act.
372	372	8 (i) If, at any time following the designation of a project
373	373	9 as a REV Illinois Project by the Department and prior to the
374	374	10 termination or expiration of an agreement under this Act, the
375	375	11 project ceases to qualify as a REV Illinois project because
376	376	12 the taxpayer is no longer an electric vehicle manufacturer, an
377	377	13 electric vehicle component manufacturer, an electric vehicle
378	378	14 power supply equipment manufacturer, a battery recycling and
379	379	15 reuse manufacturer, or a battery raw materials refining
380	380	16 service provider, that project may receive tax credit awards
381	381	17 as described in Section 5-15 and Section 5-51 of the Economic
382	382	18 Development for a Growing Economy Tax Credit Act, as long as
383	383	19 the project continues to meet requirements to obtain those
384	384	20 credits as described in the Economic Development for a Growing
385	385	21 Economy Tax Credit Act and remains compliant with terms
386	386	22 contained in the Agreement under this Act not related to their
387	387	23 status as an electric vehicle manufacturer, an electric
388	388	24 vehicle component manufacturer, an electric vehicle power
389	389	25 supply equipment manufacturer, a battery recycling and reuse
390	390	26 manufacturer, or a battery raw materials refining service
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401	401	1 provider. Time accrued during which the project was eligible
402	402	2 for credits under an agreement under this Act shall count
403	403	3 toward the duration of the credit subject to limitations
404	404	4 described in Section 5-45 of the Economic Development for a
405	405	5 Growing Economy Tax Credit Act.
406	406	6 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
407	407	7 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
408	408	8 (20 ILCS 686/30)
409	409	9 Sec. 30. Tax credit awards.
410	410	10 (a) Subject to the conditions set forth in this Act, a
411	411	11 taxpayer is entitled to a credit against the tax imposed
412	412	12 pursuant to subsections (a) and (b) of Section 201 of the
413	413	13 Illinois Income Tax Act for a taxable year beginning on or
414	414	14 after January 1, 2025 if the taxpayer is awarded a credit by
415	415	15 the Department in accordance with an agreement under this Act.
416	416	16 The Department has authority to award credits under this Act
417	417	17 on and after January 1, 2022.
418	418	18 (b) REV Illinois Credits. A taxpayer may receive a tax
419	419	19 credit against the tax imposed under subsections (a) and (b)
420	420	20 of Section 201 of the Illinois Income Tax Act, not to exceed
421	421	21 the sum of (i) 75% of the incremental income tax attributable
422	422	22 to new employees at the applicant's project and (ii) 10% of the
423	423	23 training costs of the new employees. If the project is located
424	424	24 in an underserved area or an energy transition area, then the
425	425	25 amount of the credit may not exceed the sum of (i) 100% of the
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436	436	1 incremental income tax attributable to new employees at the
437	437	2 applicant's project; and (ii) 10% of the training costs of the
438	438	3 new employees. The percentage of training costs includable in
439	439	4 the calculation may be increased by an additional 15% for
440	440	5 training costs associated with new employees that are recent
441	441	6 (2 years or less) graduates, certificate holders, or
442	442	7 credential recipients from an institution of higher education
443	443	8 in Illinois, or, if the training is provided by an institution
444	444	9 of higher education in Illinois, the Clean Jobs Workforce
445	445	10 Network Program, or an apprenticeship and training program
446	446	11 located in Illinois and approved by and registered with the
447	447	12 United States Department of Labor's Bureau of Apprenticeship
448	448	13 and Training. An applicant is also eligible for a training
449	449	14 credit that shall not exceed 10% of the training costs of
450	450	15 retained employees for the purpose of upskilling to meet the
451	451	16 operational needs of the applicant or the REV Illinois
452	452	17 Project. The percentage of training costs includable in the
453	453	18 calculation shall not exceed a total of 25%. If an applicant
454	454	19 agrees to hire the required number of new employees, then the
455	455	20 maximum amount of the credit for that applicant may be
456	456	21 increased by an amount not to exceed 75% of the incremental
457	457	22 income tax attributable to retained employees at the
458	458	23 applicant's project; provided that, in order to receive the
459	459	24 increase for retained employees, the applicant must, if
460	460	25 applicable, meet or exceed the statewide baseline. For
461	461	26 agreements entered into on or after the effective date of this
462	462
463	463
464	464
465	465
466	466
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468	468
469	469
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471	471	HB4064 - 13 - LRB103 31959 HLH 61416 b
472	472	1 amendatory Act of the 103rd General Assembly and before June
473	473	2 1, 2024 that qualify under paragraph (5) of subsection (c) of
474	474	3 Section 20, a taxpayer may receive a tax credit not to exceed
475	475	4 75% of the incremental income tax attributable to retained
476	476	5 employees at the applicant's project. If the project is in an
477	477	6 underserved area or an energy transition area and qualifies
478	478	7 under paragraph (5) of subsection (c) of Section 20, then the
479	479	8 maximum amount of the credit attributable to retained
480	480	9 employees for the applicant may be increased to an amount not
481	481	10 to exceed 100% of the incremental income tax attributable to
482	482	11 retained employees at the applicant's project.
483	483	12 If the Project is in an underserved area or an energy
484	484	13 transition area, the maximum amount of the credit attributable
485	485	14 to retained employees for the applicant may be increased to an
486	486	15 amount not to exceed 100% of the incremental income tax
487	487	16 attributable to retained employees at the applicant's project;
488	488	17 provided that, in order to receive the increase for retained
489	489	18 employees, the applicant must meet or exceed the statewide
490	490	19 baseline. REV Illinois Credits awarded may include credit
491	491	20 earned for incremental income tax withheld and training costs
492	492	21 incurred by the taxpayer beginning on or after January 1,
493	493	22 2022. Credits so earned and certified by the Department may be
494	494	23 applied against the tax imposed by subsections (a) and (b) of
495	495	24 Section 201 of the Illinois Income Tax Act for taxable years
496	496	25 beginning on or after January 1, 2025.
497	497	26 (c) REV Construction Jobs Credit. For construction wages
498	498
499	499
500	500
501	501
502	502
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504	504
505	505
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507	507	HB4064 - 14 - LRB103 31959 HLH 61416 b
508	508	1 associated with a project that qualified for a REV Illinois
509	509	2 Credit under subsection (b), the taxpayer may receive a tax
510	510	3 credit against the tax imposed under subsections (a) and (b)
511	511	4 of Section 201 of the Illinois Income Tax Act in an amount
512	512	5 equal to 50% of the incremental income tax attributable to
513	513	6 construction wages paid in connection with construction of the
514	514	7 project facilities, as a jobs credit for workers hired to
515	515	8 construct the project.
516	516	9 The REV Construction Jobs Credit may not exceed 75% of the
517	517	10 amount of the incremental income tax attributable to
518	518	11 construction wages paid in connection with construction of the
519	519	12 project facilities if the project is in an underserved area or
520	520	13 an energy transition area.
521	521	14 (d) The Department shall certify to the Department of
522	522	15 Revenue: (1) the identity of Taxpayers that are eligible for
523	523	16 the REV Illinois Credit and REV Construction Jobs Credit; (2)
524	524	17 the amount of the REV Illinois Credits and REV Construction
525	525	18 Jobs Credits awarded in each calendar year; and (3) the amount
526	526	19 of the REV Illinois Credit and REV Construction Jobs Credit
527	527	20 claimed in each calendar year. REV Illinois Credits awarded
528	528	21 may include credit earned for Incremental Income Tax withheld
529	529	22 and Training Costs incurred by the Taxpayer beginning on or
530	530	23 after January 1, 2022. Credits so earned and certified by the
531	531	24 Department may be applied against the tax imposed by Section
532	532	25 201(a) and (b) of the Illinois Income Tax Act for taxable years
533	533	26 beginning on or after January 1, 2025.
534	534
535	535
536	536
537	537
538	538
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540	540
541	541
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543	543	HB4064 - 15 - LRB103 31959 HLH 61416 b
544	544	1 (e) Applicants seeking certification for a tax credits
545	545	2 related to the construction of the project facilities in the
546	546	3 State shall require the contractor to enter into a project
547	547	4 labor agreement that conforms with the Project Labor
548	548	5 Agreements Act.
549	549	6 (f) Any applicant issued a certificate for a tax credit or
550	550	7 tax exemption under this Act must annually report to the
551	551	8 Department the total project tax benefits received. Reports
552	552	9 are due no later than May 31 of each year and shall cover the
553	553	10 previous calendar year. The first report is for the 2022
554	554	11 calendar year and is due no later than May 31, 2023. For
555	555	12 applicants issued a certificate of exemption under Section 105
556	556	13 of this Act, the report shall be the same as required for a
557	557	14 High Impact Business under subsection (a-5) of Section 8.1 of
558	558	15 the Illinois Enterprise Zone Act. Each person required to file
559	559	16 a return under the Gas Revenue Tax Act, the Electricity Excise
560	560	17 Tax Law, or the Telecommunications Excise Tax Act shall file a
561	561	18 report containing information about customers that are issued
562	562	19 an exemption certificate under Section 95 of this Act in the
563	563	20 same manner and form as they are required to report under
564	564	21 subsection (b) of Section 8.1 of the Illinois Enterprise Zone
565	565	22 Act.
566	566	23 (g) Nothing in this Act shall prohibit an award of credit
567	567	24 to an applicant that uses a PEO if all other award criteria are
568	568	25 satisfied.
569	569	26 (h) With respect to any portion of a REV Illinois Credit
570	570
571	571
572	572
573	573
574	574
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576	576
577	577
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579	579	HB4064 - 16 - LRB103 31959 HLH 61416 b
580	580	1 that is based on the incremental income tax attributable to
581	581	2 new employees or retained employees, in lieu of the Credit
582	582	3 allowed under this Act against the taxes imposed pursuant to
583	583	4 subsections (a) and (b) of Section 201 of the Illinois Income
584	584	5 Tax Act, a taxpayer that otherwise meets the criteria set
585	585	6 forth in this Section, the taxpayer may elect to claim the
586	586	7 credit, on or after January 1, 2025, against its obligation to
587	587	8 pay over withholding under Section 704A of the Illinois Income
588	588	9 Tax Act. The election shall be made in the manner prescribed by
589	589	10 the Department of Revenue and once made shall be irrevocable.
590	590	11 (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22;
591	591	12 102-1125, eff. 2-3-23; revised 4-5-23.)
592	592	13 (20 ILCS 686/40)
593	593	14 Sec. 40. Amount and duration of the credits; limitation to
594	594	15 amount of costs of specified items. The Department shall
595	595	16 determine the amount and duration of the REV Illinois Credit
596	596	17 awarded under this Act, subject to the limitations set forth
597	597	18 in this Act. For a project that qualified under paragraph (1),
598	598	19 (2), (4), or (4.1), or (5) of subsection (c) of Section 20, the
599	599	20 duration of the credit may not exceed 15 taxable years, with an
600	600	21 option to renew the agreement for no more than one term not to
601	601	22 exceed an additional 15 taxable years. For a project that
602	602	23 qualified under paragraph (3) or (3.1) of subsection (c) of
603	603	24 Section 20, the duration of the credit may not exceed 10
604	604	25 taxable years, with an option to renew the agreement for no
605	605
606	606
607	607
608	608
609	609
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611	611
612	612
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614	614	HB4064 - 17 - LRB103 31959 HLH 61416 b
615	615	1 more than one term not to exceed an additional 10 taxable
616	616	2 years. The credit may be stated as a percentage of the
617	617	3 incremental income tax and training costs attributable to the
618	618	4 applicant's project and may include a fixed dollar limitation.
619	619	5 Nothing in this Section shall prevent the Department, in
620	620	6 consultation with the Department of Revenue, from adopting
621	621	7 rules to extend the sunset of any earned, existing, and unused
622	622	8 tax credit or credits a taxpayer may be in possession of, as
623	623	9 provided for in Section 605-1055 of the Department of Commerce
624	624	10 and Economic Opportunity Law of the Civil Administrative Code
625	625	11 of Illinois, notwithstanding the carry-forward provisions
626	626	12 pursuant to paragraph (4) of Section 211 of the Illinois
627	627	13 Income Tax Act.
628	628	14 (Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22;
629	629	15 102-1125, eff. 2-3-23; revised 4-5-23.)
630	630	16 (20 ILCS 686/45)
631	631	17 Sec. 45. Contents of agreements with applicants.
632	632	18 (a) The Department shall enter into an agreement with an
633	633	19 applicant that is awarded a credit under this Act. The
634	634	20 agreement shall include all of the following:
635	635	21 (1) A detailed description of the project that is the
636	636	22 subject of the agreement, including the location and
637	637	23 amount of the investment and jobs created or retained.
638	638	24 (2) The duration of the credit, the first taxable year
639	639	25 for which the credit may be awarded, and the first taxable
640	640
641	641
642	642
643	643
644	644
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646	646
647	647
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649	649	HB4064 - 18 - LRB103 31959 HLH 61416 b
650	650	1 year in which the credit may be used by the taxpayer.
651	651	2 (3) The credit amount that will be allowed for each
652	652	3 taxable year.
653	653	4 (4) For a project qualified under paragraphs (1), (2),
654	654	5 or (4), or (5) of subsection (c) of Section 20, a
655	655	6 requirement that the taxpayer shall maintain operations at
656	656	7 the project location a minimum number of years not to
657	657	8 exceed 15. For a project qualified under paragraph (3) of
658	658	9 subsection (c) of Section 20, a requirement that the
659	659	10 taxpayer shall maintain operations at the project location
660	660	11 a minimum number of years not to exceed 10.
661	661	12 (5) A specific method for determining the number of
662	662	13 new employees and if applicable, retained employees,
663	663	14 employed during a taxable year.
664	664	15 (6) A requirement that the taxpayer shall annually
665	665	16 report to the Department the number of new employees, the
666	666	17 incremental income tax withheld in connection with the new
667	667	18 employees, and any other information the Department deems
668	668	19 necessary and appropriate to perform its duties under this
669	669	20 Act.
670	670	21 (7) A requirement that the Director is authorized to
671	671	22 verify with the appropriate State agencies the amounts
672	672	23 reported under paragraph (6), and after doing so shall
673	673	24 issue a certificate to the taxpayer stating that the
674	674	25 amounts have been verified.
675	675	26 (8) A requirement that the taxpayer shall provide
676	676
677	677
678	678
679	679
680	680
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682	682
683	683
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685	685	HB4064 - 19 - LRB103 31959 HLH 61416 b
686	686	1 written notification to the Director not more than 30 days
687	687	2 after the taxpayer makes or receives a proposal that would
688	688	3 transfer the taxpayer's State tax liability obligations to
689	689	4 a successor taxpayer.
690	690	5 (9) A detailed description of the number of new
691	691	6 employees to be hired, and the occupation and payroll of
692	692	7 full-time jobs to be created or retained because of the
693	693	8 project.
694	694	9 (10) The minimum investment the taxpayer will make in
695	695	10 capital improvements, the time period for placing the
696	696	11 property in service, and the designated location in
697	697	12 Illinois for the investment.
698	698	13 (11) A requirement that the taxpayer shall provide
699	699	14 written notification to the Director and the Director's
700	700	15 designee not more than 30 days after the taxpayer
701	701	16 determines that the minimum job creation or retention,
702	702	17 employment payroll, or investment no longer is or will be
703	703	18 achieved or maintained as set forth in the terms and
704	704	19 conditions of the agreement. Additionally, the
705	705	20 notification should outline to the Department the number
706	706	21 of layoffs, date of the layoffs, and detail taxpayer's
707	707	22 efforts to provide career and training counseling for the
708	708	23 impacted workers with industry-related certifications and
709	709	24 trainings.
710	710	25 (12) If applicable, a A provision that, if the total
711	711	26 number of new employees falls below a specified level, the
712	712
713	713
714	714
715	715
716	716
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718	718
719	719
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721	721	HB4064 - 20 - LRB103 31959 HLH 61416 b
722	722	1 allowance of credit shall be suspended until the number of
723	723	2 new employees equals or exceeds the agreement amount.
724	724	3 (13) If applicable, a provision that specifies the
725	725	4 statewide baseline at the time of application for retained
726	726	5 employees. The Additionally, the agreement must have a
727	727	6 provision addressing if the total number of retained
728	728	7 employees falls below the lesser of the statewide baseline
729	729	8 or the retention requirements specified in the agreement,
730	730	9 the allowance of the credit shall be suspended until the
731	731	10 number of retained employees equals or exceeds the
732	732	11 agreement amount.
733	733	12 (14) A detailed description of the items for which the
734	734	13 costs incurred by the Taxpayer will be included in the
735	735	14 limitation on the Credit provided in Section 40.
736	736	15 (15) If the agreement is entered into before the
737	737	16 effective date of this amendatory Act of the 103rd General
738	738	17 Assembly, a A provision stating that if the taxpayer fails
739	739	18 to meet either the investment or job creation and
740	740	19 retention requirements specified in the agreement during
741	741	20 the entire 5-year period beginning on the first day of the
742	742	21 first taxable year in which the agreement is executed and
743	743	22 ending on the last day of the fifth taxable year after the
744	744	23 agreement is executed, then the agreement is automatically
745	745	24 terminated on the last day of the fifth taxable year after
746	746	25 the agreement is executed, and the taxpayer is not
747	747	26 entitled to the award of any credits for any of that 5-year
748	748
749	749
750	750
751	751
752	752
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754	754
755	755
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757	757	HB4064 - 21 - LRB103 31959 HLH 61416 b
758	758	1 period. If the agreement is entered into on or after the
759	759	2 effective date of this amendatory Act of the 103rd General
760	760	3 Assembly, a provision stating that if the taxpayer fails
761	761	4 to meet either the investment or job creation and
762	762	5 retention requirements specified in the agreement during
763	763	6 the entire 10-year period beginning on the effective date
764	764	7 of the agreement and ending 10 years after the effective
765	765	8 date of the agreement, then the agreement is automatically
766	766	9 terminated, and the taxpayer is not entitled to the award
767	767	10 of any credits for any of that 10-year period.
768	768	11 (16) A provision stating that if the taxpayer ceases
769	769	12 principal operations with the intent to permanently shut
770	770	13 down the project in the State during the term of the
771	771	14 Agreement, then the entire credit amount awarded to the
772	772	15 taxpayer prior to the date the taxpayer ceases principal
773	773	16 operations shall be returned to the Department and shall
774	774	17 be reallocated to the local workforce investment area in
775	775	18 which the project was located.
776	776	19 (17) A provision stating that the Taxpayer must
777	777	20 provide the reports outlined in Sections 50 and 55 on or
778	778	21 before April 15 each year.
779	779	22 (18) A provision requiring the taxpayer to report
780	780	23 annually its contractual obligations or otherwise with a
781	781	24 recycling facility for its operations.
782	782	25 (19) Any other performance conditions or contract
783	783	26 provisions the Department determines are necessary or
784	784
785	785
786	786
787	787
788	788
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790	790
791	791
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794	794	1 appropriate.
795	795	2 (20) Each taxpayer under paragraph (1) of subsection
796	796	3 (c) of Section 20 above shall maintain labor neutrality
797	797	4 toward any union organizing campaign for any employees of
798	798	5 the taxpayer assigned to work on the premises of the REV
799	799	6 Illinois Project Site. This paragraph shall not apply to
800	800	7 an electric vehicle manufacturer, electric vehicle
801	801	8 component part manufacturer, electric vehicle power supply
802	802	9 manufacturer, or renewable energy manufacturer, or any
803	803	10 joint venture including an electric vehicle manufacturer,
804	804	11 electric vehicle component part manufacturer, electric
805	805	12 vehicle power supply manufacturer, or renewable energy
806	806	13 manufacturer, who is subject to collective bargaining
807	807	14 agreement entered into prior to the taxpayer filing an
808	808	15 application pursuant to this Act.
809	809	16 (b) The Department shall post on its website the terms of
810	810	17 each agreement entered into under this Act. Such information
811	811	18 shall be posted within 10 days after entering into the
812	812	19 agreement and must include the following:
813	813	20 (1) the name of the taxpayer;
814	814	21 (2) the location of the project;
815	815	22 (3) the estimated value of the credit;
816	816	23 (4) the number of new employee jobs and, if
817	817	24 applicable, number of retained employee jobs at the
818	818	25 project; and
819	819	26 (5) whether or not the project is in an underserved
820	820
821	821
822	822
823	823
824	824
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826	826
827	827
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829	829	HB4064 - 23 - LRB103 31959 HLH 61416 b
830	830	1 area or energy transition area.
831	831	2 (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
832	832	3 revised 4-5-23.)
833	833	4 Section 99. Effective date. This Act takes effect upon
834	834	5 becoming law.
835	835
836	836
837	837
838	838
839	839
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