Illinois House Bill HB5005 Chaptered / Bill

                    Public Act 103-0595
HB5005 EnrolledLRB103 37016 SPS 67131 b HB5005 Enrolled LRB103 37016 SPS 67131 b
HB5005 Enrolled LRB103 37016 SPS 67131 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Section 605-1115 as follows:
(20 ILCS 605/605-1115 new)
Sec. 605-1115. Quantum computing campuses.
(a) As used in this Section:
"Data center" means a facility: (1) whose primary services
are the storage, management, and processing of digital data;
and (2) that is used to house (A) computer and network systems,
including associated components such as servers, network
equipment and appliances, telecommunications, and data storage
systems, (B) systems for monitoring and managing
infrastructure performance, (C) Internet-related equipment and
services, (D) data communications connections, (E)
environmental controls, (F) fire protection systems, and (G)
security systems and services.
"Full-time equivalent job" means a job in which an
employee works for a tenant of the quantum campus at a rate of
at least 35 hours per week. Vacations, paid holidays, and sick
time are included in this computation. Overtime is not

 

HB5005 Enrolled LRB103 37016 SPS 67131 b


considered a part of regular hours.
"Quantum computing campus" or "campus" is a contiguous
area located in the State of Illinois that is designated by the
Department as a quantum computing campus in order to support
the demand for quantum computing research, development, and
implementation for practical use. A quantum computing campus
may include educational intuitions, nonprofit research and
development organizations, and for-profit organizations
serving as anchor tenants and joining tenants that, with
approval from the Department, may change. Tenants located at
the campus shall have direct and supporting roles in quantum
computing activities. Eligible tenants include quantum
computer operators and research facilities, data centers,
manufacturers and assemblers of quantum computers and
component parts, cryogenic or refrigeration facilities, and
other facilities determined, by industry and academic leaders,
to be fundamental to the research and development of quantum
computing for practical solutions. Quantum computing shall
include the research, development, and use of computing
methods that generate and manipulate quantum bits in a
controlled quantum state. This includes the use of photons,
semiconductors, superconductors, trapped ions, and other
industry and academically regarded methods for simulating
quantum bits. Additionally, a quantum campus shall meet the
following criteria:
(1) the campus must comprise a minimum of one-half


square mile and not more than 4 square miles;
(2) the campus must contain tenants that demonstrate a
substantial plan for using the designation to encourage
participation by organizations owned by minorities, women,
and persons with disabilities, as those terms are defined
in the Business Enterprise for Minorities, Women, and
Persons with Disabilities Act, and the hiring of
minorities, women, and persons with disabilities;
(3) upon being placed in service, within 60 months
after designation or incorporation into a campus, the
owners of property located in a campus shall certify to
the Department that the property is carbon neutral or has
attained certification under one or more of the following
green building standards:
(A) BREEAM for New Construction or BREEAM, In-Use;
(B) ENERGY STAR;
(C) Envision;
(D) ISO 50001-energy management;
(E) LEED for Building Design and Construction, or
LEED for Operations and Maintenance;
(F) Green Globes for New Construction, or Green
Globes for Existing Buildings;
(G) UL 3223; or
(H) an equivalent program approved by the
Department.
(b) Tenants located in a designated quantum computing


campus shall qualify for the following exemptions and credits:
(1) the Department may certify a taxpayer for an
exemption from any State or local use tax or retailers'
occupation tax on building materials that will be
incorporated into real estate at a quantum computing
campus;
(2) an exemption from the charges imposed under
Section 9-222 of the Public Utilities Act, Section 5-10 of
the Gas Use Tax Law, Section 2-4 of the Electricity Excise
Tax Law, Section 2 of the Telecommunications Excise Tax
Act, Section 10 of the Telecommunications Infrastructure
Maintenance Fee Act, and Section 5-7 of the Simplified
Municipal Telecommunications Tax Act; and
(3) a credit against the taxes imposed under
subsections (a) and (b) of Section 201 of the Illinois
Income Tax Act as provided in Section 241 of the Illinois
Income Tax Act.
(c) Certificates of exemption and credit certificates
under this Section shall be issued by the Department. Upon
certification by the Department under this Section, the
Department shall notify the Department of Revenue of the
certification. The exemption status shall take effect within 3
months after certification of the taxpayer and notice to the
Department of Revenue by the Department.
(d) Entities seeking to form a quantum computing campus
must apply to the Department in the manner specified by the


Department. Entities seeking to join an established campus
must apply for an amendment to the existing campus. This
application for amendment must be submitted to the Department
with support from other campus members.
The Department shall determine the duration of
certificates of exemption awarded under this Act. The duration
of the certificates of exemption may not exceed 20 calendar
years and one renewal for an additional 20 years.
The Department and any tenant located in a quantum
computing campus seeking the benefits under this Section must
enter into a memorandum of understanding that, at a minimum,
provides:
(1) the details for determining the amount of capital
investment to be made;
(2) the number of new jobs created;
(3) the timeline for achieving the capital investment
and new job goals;
(4) the repayment obligation should those goals not be
achieved and any conditions under which repayment by the
tenant or tenants claiming the exemption shall be
required;
(5) the duration of the exemptions; and
(6) other provisions as deemed necessary by the
Department.
The Department shall, within 10 days after the
designation, send a letter of notification to each member of


the General Assembly whose legislative district or
representative district contains all or part of the designated
area.
(e) Beginning on July 1, 2025, and each year thereafter,
the Department shall annually report to the Governor and the
General Assembly on the outcomes and effectiveness of this
amendatory Act of the 103rd General Assembly. The report shall
include the following:
(1) the names of each tenant located within the
quantum computing campus;
(2) the location of each quantum computing campus;
(3) the estimated value of the credits to be issued to
quantum computing campus tenants;
(4) the number of new jobs and, if applicable,
retained jobs pledged at each quantum computing campus;
and
(5) whether or not the quantum computing campus is
located in an underserved area, an energy transition zone,
or an opportunity zone.
(f) Tenants at the quantum computing campus seeking a
certificate of exemption related to the construction of
required facilities shall require the contractor and all
subcontractors to:
(1) comply with the requirements of Section 30-22 of
the Illinois Procurement Code as those requirements apply
to responsible bidders and to present satisfactory


evidence of that compliance to the Department; and
(2) enter into a project labor agreement submitted to
the Department.
(g) The Department shall not issue any new certificates of
exemption under the provisions of this Section after July 1,
2030. This sunset shall not affect any existing certificates
of exemption in effect on July 1, 2030.
(h) The Department shall adopt rules to implement and
administer this Section.
Section 10. The Illinois Enterprise Zone Act is amended by
changing Sections 5.5 and 13 as follows:
(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
Sec. 5.5. High Impact Business.
(a) In order to respond to unique opportunities to assist
in the encouragement, development, growth, and expansion of
the private sector through large scale investment and
development projects, the Department is authorized to receive
and approve applications for the designation of "High Impact
Businesses" in Illinois, for an initial term of 20 years with
an option for renewal for a term not to exceed 20 years,
subject to the following conditions:
(1) such applications may be submitted at any time
during the year;
(2) such business is not located, at the time of


designation, in an enterprise zone designated pursuant to
this Act, except for grocery stores, as defined in the
Grocery Initiative Act;
(3) the business intends to do, commits to do, or is
one or more of the following:
(A) the business intends to make a minimum
investment of $12,000,000 which will be placed in
service in qualified property and intends to create
500 full-time equivalent jobs at a designated location
in Illinois or intends to make a minimum investment of
$30,000,000 which will be placed in service in
qualified property and intends to retain 1,500
full-time retained jobs at a designated location in
Illinois. The terms "placed in service" and "qualified
property" have the same meanings as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(B) the business intends to establish a new
electric generating facility at a designated location
in Illinois. "New electric generating facility", for
purposes of this Section, means a newly constructed
electric generation plant or a newly constructed
generation capacity expansion at an existing electric
generation plant, including the transmission lines and
associated equipment that transfers electricity from
points of supply to points of delivery, and for which


such new foundation construction commenced not sooner
than July 1, 2001. Such facility shall be designed to
provide baseload electric generation and shall operate
on a continuous basis throughout the year; and (i)
shall have an aggregate rated generating capacity of
at least 1,000 megawatts for all new units at one site
if it uses natural gas as its primary fuel and
foundation construction of the facility is commenced
on or before December 31, 2004, or shall have an
aggregate rated generating capacity of at least 400
megawatts for all new units at one site if it uses coal
or gases derived from coal as its primary fuel and
shall support the creation of at least 150 new
Illinois coal mining jobs, or (ii) shall be funded
through a federal Department of Energy grant before
December 31, 2010 and shall support the creation of
Illinois coal mining coal-mining jobs, or (iii) shall
use coal gasification or integrated
gasification-combined cycle units that generate
electricity or chemicals, or both, and shall support
the creation of Illinois coal mining coal-mining jobs.
The term "placed in service" has the same meaning as
described in subsection (h) of Section 201 of the
Illinois Income Tax Act; or
(B-5) the business intends to establish a new
gasification facility at a designated location in


Illinois. As used in this Section, "new gasification
facility" means a newly constructed coal gasification
facility that generates chemical feedstocks or
transportation fuels derived from coal (which may
include, but are not limited to, methane, methanol,
and nitrogen fertilizer), that supports the creation
or retention of Illinois coal mining coal-mining jobs,
and that qualifies for financial assistance from the
Department before December 31, 2010. A new
gasification facility does not include a pilot project
located within Jefferson County or within a county
adjacent to Jefferson County for synthetic natural gas
from coal; or
(C) the business intends to establish production
operations at a new coal mine, re-establish production
operations at a closed coal mine, or expand production
at an existing coal mine at a designated location in
Illinois not sooner than July 1, 2001; provided that
the production operations result in the creation of
150 new Illinois coal mining jobs as described in
subdivision (a)(3)(B) of this Section, and further
provided that the coal extracted from such mine is
utilized as the predominant source for a new electric
generating facility. The term "placed in service" has
the same meaning as described in subsection (h) of
Section 201 of the Illinois Income Tax Act; or


(D) the business intends to construct new
transmission facilities or upgrade existing
transmission facilities at designated locations in
Illinois, for which construction commenced not sooner
than July 1, 2001. For the purposes of this Section,
"transmission facilities" means transmission lines
with a voltage rating of 115 kilovolts or above,
including associated equipment, that transfer
electricity from points of supply to points of
delivery and that transmit a majority of the
electricity generated by a new electric generating
facility designated as a High Impact Business in
accordance with this Section. The term "placed in
service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(E) the business intends to establish a new wind
power facility at a designated location in Illinois.
For purposes of this Section, "new wind power
facility" means a newly constructed electric
generation facility, a newly constructed expansion of
an existing electric generation facility, or the
replacement of an existing electric generation
facility, including the demolition and removal of an
electric generation facility irrespective of whether
it will be replaced, placed in service or replaced on


or after July 1, 2009, that generates electricity
using wind energy devices, and such facility shall be
deemed to include any permanent structures associated
with the electric generation facility and all
associated transmission lines, substations, and other
equipment related to the generation of electricity
from wind energy devices. For purposes of this
Section, "wind energy device" means any device, with a
nameplate capacity of at least 0.5 megawatts, that is
used in the process of converting kinetic energy from
the wind to generate electricity; or
(E-5) the business intends to establish a new
utility-scale solar facility at a designated location
in Illinois. For purposes of this Section, "new
utility-scale solar power facility" means a newly
constructed electric generation facility, or a newly
constructed expansion of an existing electric
generation facility, placed in service on or after
July 1, 2021, that (i) generates electricity using
photovoltaic cells and (ii) has a nameplate capacity
that is greater than 5,000 kilowatts, and such
facility shall be deemed to include all associated
transmission lines, substations, energy storage
facilities, and other equipment related to the
generation and storage of electricity from
photovoltaic cells; or


(F) the business commits to (i) make a minimum
investment of $500,000,000, which will be placed in
service in a qualified property, (ii) create 125
full-time equivalent jobs at a designated location in
Illinois, (iii) establish a fertilizer plant at a
designated location in Illinois that complies with the
set-back standards as described in Table 1: Initial
Isolation and Protective Action Distances in the 2012
Emergency Response Guidebook published by the United
States Department of Transportation, (iv) pay a
prevailing wage for employees at that location who are
engaged in construction activities, and (v) secure an
appropriate level of general liability insurance to
protect against catastrophic failure of the fertilizer
plant or any of its constituent systems; in addition,
the business must agree to enter into a construction
project labor agreement including provisions
establishing wages, benefits, and other compensation
for employees performing work under the project labor
agreement at that location; for the purposes of this
Section, "fertilizer plant" means a newly constructed
or upgraded plant utilizing gas used in the production
of anhydrous ammonia and downstream nitrogen
fertilizer products for resale; for the purposes of
this Section, "prevailing wage" means the hourly cash
wages plus fringe benefits for training and


apprenticeship programs approved by the U.S.
Department of Labor, Bureau of Apprenticeship and
Training, health and welfare, insurance, vacations and
pensions paid generally, in the locality in which the
work is being performed, to employees engaged in work
of a similar character on public works; this paragraph
(F) applies only to businesses that submit an
application to the Department within 60 days after
July 25, 2013 (the effective date of Public Act
98-109); or
(G) the business intends to establish a new
cultured cell material food production facility at a
designated location in Illinois. As used in this
paragraph (G):
"Cultured cell material food production facility"
means a facility (i) at which cultured animal cell
food is developed using animal cell culture
technology, (ii) at which production processes occur
that include the establishment of cell lines and cell
banks, manufacturing controls, and all components and
inputs, and (iii) that complies with all existing
registrations, inspections, licensing, and approvals
from all applicable and participating State and
federal food agencies, including the Department of
Agriculture, the Department of Public Health, and the
United States Food and Drug Administration, to ensure


that all food production is safe and lawful under
provisions of the Federal Food, Drug and Cosmetic Act
related to the development, production, and storage of
cultured animal cell food.
"New cultured cell material food production
facility" means a newly constructed cultured cell
material food production facility that is placed in
service on or after June 7, 2023 (the effective date of
Public Act 103-9) this amendatory Act of the 103rd
General Assembly or a newly constructed expansion of
an existing cultured cell material food production
facility, in a controlled environment, when the
improvements are placed in service on or after June 7,
2023 (the effective date of Public Act 103-9) this
amendatory Act of the 103rd General Assembly; or and
(H) (G) the business is an existing or planned
grocery store, as that term is defined in Section 5 of
the Grocery Initiative Act, and receives financial
support under that Act within the 10 years before
submitting its application under this Act; and
(4) no later than 90 days after an application is
submitted, the Department shall notify the applicant of
the Department's determination of the qualification of the
proposed High Impact Business under this Section.
(b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall


qualify for the credits and exemptions described in the
following Acts: Section 9-222 and Section 9-222.1A of the
Public Utilities Act, subsection (h) of Section 201 of the
Illinois Income Tax Act, and Section 1d of the Retailers'
Occupation Tax Act; provided that these credits and exemptions
described in these Acts shall not be authorized until the
minimum investments set forth in subdivision (a)(3)(A) of this
Section have been placed in service in qualified properties
and, in the case of the exemptions described in the Public
Utilities Act and Section 1d of the Retailers' Occupation Tax
Act, the minimum full-time equivalent jobs or full-time
retained jobs set forth in subdivision (a)(3)(A) of this
Section have been created or retained. Businesses designated
as High Impact Businesses under this Section shall also
qualify for the exemption described in Section 5l of the
Retailers' Occupation Tax Act. The credit provided in
subsection (h) of Section 201 of the Illinois Income Tax Act
shall be applicable to investments in qualified property as
set forth in subdivision (a)(3)(A) of this Section.
(b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
(a)(3)(D), and (a)(3)(G), and (a)(3)(H) of this Section shall
qualify for the credits and exemptions described in the
following Acts: Section 51 of the Retailers' Occupation Tax
Act, Section 9-222 and Section 9-222.1A of the Public
Utilities Act, and subsection (h) of Section 201 of the


Illinois Income Tax Act; however, the credits and exemptions
authorized under Section 9-222 and Section 9-222.1A of the
Public Utilities Act, and subsection (h) of Section 201 of the
Illinois Income Tax Act shall not be authorized until the new
electric generating facility, the new gasification facility,
the new transmission facility, the new, expanded, or reopened
coal mine, or the new cultured cell material food production
facility, or the existing or planned grocery store is
operational, except that a new electric generating facility
whose primary fuel source is natural gas is eligible only for
the exemption under Section 5l of the Retailers' Occupation
Tax Act.
(b-6) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
Section shall qualify for the exemptions described in Section
5l of the Retailers' Occupation Tax Act; any business so
designated as a High Impact Business being, for purposes of
this Section, a "Wind Energy Business".
(b-7) Beginning on January 1, 2021, businesses designated
as High Impact Businesses by the Department shall qualify for
the High Impact Business construction jobs credit under
subsection (h-5) of Section 201 of the Illinois Income Tax Act
if the business meets the criteria set forth in subsection (i)
of this Section. The total aggregate amount of credits awarded
under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
shall not exceed $20,000,000 in any State fiscal year.


(c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
(d) Except for businesses contemplated under subdivision
(a)(3)(E), (a)(3)(E-5), or (a)(3)(G), or (a)(3)(H) of this
Section, existing Illinois businesses which apply for
designation as a High Impact Business must provide the
Department with the prospective plan for which 1,500 full-time
retained jobs would be eliminated in the event that the
business is not designated.
(e) Except for new businesses contemplated under
subdivision (a)(3)(E), or subdivision (a)(3)(G), or
subdivision (a)(3)(H) of this Section, new proposed facilities
which apply for designation as High Impact Business must
provide the Department with proof of alternative non-Illinois
sites which would receive the proposed investment and job
creation in the event that the business is not designated as a
High Impact Business.
(f) Except for businesses contemplated under subdivision
(a)(3)(E), or subdivision (a)(3)(G), or subdivision (a)(3)(H)
of this Section, in the event that a business is designated a
High Impact Business and it is later determined after
reasonable notice and an opportunity for a hearing as provided


under the Illinois Administrative Procedure Act, that the
business would have placed in service in qualified property
the investments and created or retained the requisite number
of jobs without the benefits of the High Impact Business
designation, the Department shall be required to immediately
revoke the designation and notify the Director of the
Department of Revenue who shall begin proceedings to recover
all wrongfully exempted State taxes with interest. The
business shall also be ineligible for all State funded
Department programs for a period of 10 years.
(g) The Department shall revoke a High Impact Business
designation if the participating business fails to comply with
the terms and conditions of the designation.
(h) Prior to designating a business, the Department shall
provide the members of the General Assembly and Commission on
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
(i) High Impact Business construction jobs credit.
Beginning on January 1, 2021, a High Impact Business may
receive a tax credit against the tax imposed under subsections
(a) and (b) of Section 201 of the Illinois Income Tax Act in an
amount equal to 50% of the amount of the incremental income tax
attributable to High Impact Business construction jobs credit
employees employed in the course of completing a High Impact


Business construction jobs project. However, the High Impact
Business construction jobs credit may equal 75% of the amount
of the incremental income tax attributable to High Impact
Business construction jobs credit employees if the High Impact
Business construction jobs credit project is located in an
underserved area.
The Department shall certify to the Department of Revenue:
(1) the identity of taxpayers that are eligible for the High
Impact Business construction jobs credit; and (2) the amount
of High Impact Business construction jobs credits that are
claimed pursuant to subsection (h-5) of Section 201 of the
Illinois Income Tax Act in each taxable year. Any business
entity that receives a High Impact Business construction jobs
credit shall maintain a certified payroll pursuant to
subsection (j) of this Section.
As used in this subsection (i):
"High Impact Business construction jobs credit" means an
amount equal to 50% (or 75% if the High Impact Business
construction project is located in an underserved area) of the
incremental income tax attributable to High Impact Business
construction job employees. The total aggregate amount of
credits awarded under the Blue Collar Jobs Act (Article 20 of
Public Act 101-9) shall not exceed $20,000,000 in any State
fiscal year
"High Impact Business construction job employee" means a
laborer or worker who is employed by a an Illinois contractor


or subcontractor in the actual construction work on the site
of a High Impact Business construction job project.
"High Impact Business construction jobs project" means
building a structure or building or making improvements of any
kind to real property, undertaken and commissioned by a
business that was designated as a High Impact Business by the
Department. The term "High Impact Business construction jobs
project" does not include the routine operation, routine
repair, or routine maintenance of existing structures,
buildings, or real property.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of High Impact
Business construction job employees.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey;
(2) 35% or more of the families with children in the
area are living below 130% of the poverty line, according
to the latest American Community Survey;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national


unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(j) (Blank). Each contractor and subcontractor who is
engaged in and executing a High Impact Business Construction
jobs project, as defined under subsection (i) of this Section,
for a business that is entitled to a credit pursuant to
subsection (i) of this Section shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for a High Impact Business Construction Jobs
Project, records for all laborers and other workers
employed by the contractor or subcontractor on the
project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;


(I) the worker's hourly wage rate;
(J) the worker's hourly overtime wage rate;
(K) the worker's race and ethnicity; and
(L) the worker's gender;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the High Impact
Business construction jobs project; within 5 business days
after receiving the certified payroll, the taxpayer shall
file the certified payroll with the Department of Labor
and the Department of Commerce and Economic Opportunity; a
certified payroll must be filed for only those calendar
months during which construction on a High Impact Business
construction jobs project has occurred; the certified
payroll shall consist of a complete copy of the records
identified in paragraph (1) of this subsection (j), but
may exclude the starting and ending times of work each
day; the certified payroll shall be accompanied by a
statement signed by the contractor or subcontractor or an
officer, employee, or agent of the contractor or
subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be


false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this
subsection, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who
willfully files a false certified payroll that is false as to
any material fact is in violation of this Act and guilty of a
Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after June 5, 2019 (the effective date of Public Act 101-9) for
a period of 5 years from the date of the last payment for work
on a contract or subcontract for the High Impact Business
construction jobs project.
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall share the information with


the Department in order to comply with the awarding of a High
Impact Business construction jobs credit. A contractor,
subcontractor, or public body may retain records required
under this Section in paper or electronic format.
(j-5) Annually, until construction is completed, a company
seeking High Impact Business Construction Job credits shall
submit a report that, at a minimum, describes the projected
project scope, timeline, and anticipated budget. Once the
project has commenced, the annual report shall include actual
data for the prior year as well as projections for each
additional year through completion of the project. The
Department shall issue detailed reporting guidelines
prescribing the requirements of construction-related reports.
In order to receive credit for construction expenses, the
company must provide the Department with evidence that a
certified third-party executed an Agreed-Upon Procedure (AUP)
verifying the construction expenses or accept the standard
construction wage expense estimated by the Department.
Upon review of the final project scope, timeline, budget,
and AUP, the Department shall issue a tax credit certificate
reflecting a percentage of the total construction job wages
paid throughout the completion of the project.
(k) Upon 7 business days' notice, each taxpayer contractor
and subcontractor shall make available to each State agency
and to federal, State, or local law enforcement agencies and
prosecutors for inspection and copying at a location within


this State during reasonable hours, the report under
subsection (j-5) records identified in this subsection (j) to
the taxpayer in charge of the High Impact Business
construction jobs project, its officers and agents, the
Director of the Department of Labor and his or her deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(l) The changes made to this Section by Public Act
102-1125 this amendatory Act of the 102nd General Assembly,
other than the changes in subsection (a), apply to High Impact
Businesses high impact businesses that submit applications on
or after February 3, 2023 (the effective date of Public Act
102-1125) this amendatory Act of the 102nd General Assembly.
(Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.)
(20 ILCS 655/13)
Sec. 13. Enterprise Zone construction jobs credit.
(a) Beginning on January 1, 2021, a business entity in a
certified Enterprise Zone that makes a capital investment of
at least $10,000,000 in an Enterprise Zone construction jobs
project may receive an Enterprise Zone construction jobs
credit against the tax imposed under subsections (a) and (b)
of Section 201 of the Illinois Income Tax Act in an amount


equal to 50% of the amount of the incremental income tax
attributable to Enterprise Zone construction jobs credit
employees employed in the course of completing an Enterprise
Zone construction jobs project. However, the Enterprise Zone
construction jobs credit may equal 75% of the amount of the
incremental income tax attributable to Enterprise Zone
construction jobs credit employees if the project is located
in an underserved area.
(b) A business entity seeking a credit under this Section
must submit an application to the Department and must receive
approval from the designating municipality or county and the
Department for the Enterprise Zone construction jobs credit
project. The application must describe the nature and benefit
of the project to the certified Enterprise Zone and its
potential contributors. The total aggregate amount of credits
awarded under the Blue Collar Jobs Act (Article 20 of Public
Act 101-9) shall not exceed $20,000,000 in any State fiscal
year.
Within 45 days after receipt of an application, the
Department shall give notice to the applicant as to whether
the application has been approved or disapproved. If the
Department disapproves the application, it shall specify the
reasons for this decision and allow 60 days for the applicant
to amend and resubmit its application. The Department shall
provide assistance upon request to applicants. Resubmitted
applications shall receive the Department's approval or


disapproval within 30 days after the application is
resubmitted. Those resubmitted applications satisfying initial
Department objectives shall be approved unless reasonable
circumstances warrant disapproval.
On an annual basis, the designated zone organization shall
furnish a statement to the Department on the programmatic and
financial status of any approved project and an audited
financial statement of the project.
The Department shall certify to the Department of Revenue
the identity of taxpayers who are eligible for the credits and
the amount of credits that are claimed pursuant to
subparagraph (8) of subsection (f) of Section 201 the Illinois
Income Tax Act.
The Enterprise Zone construction jobs credit project must
be undertaken by the business entity in the course of
completing a project that complies with the criteria contained
in Section 4 of this Act and is undertaken in a certified
Enterprise Zone. The Department shall adopt any necessary
rules for the implementation of this subsection (b).
(c) (Blank). Any business entity that receives an
Enterprise Zone construction jobs credit shall maintain a
certified payroll pursuant to subsection (d) of this Section.
(d) Annually, until construction is completed, a company
seeking Enterprise Zone construction job credits shall submit
a report that, at a minimum, describes the projected project
scope, timeline, and anticipated budget. Once the project has


commenced, the annual report shall include actual data for the
prior year as well as projections for each additional year
through completion of the project. The Department shall issue
detailed reporting guidelines prescribing the requirements of
construction-related reports.
In order to receive credit for construction expenses, the
company must provide the Department with evidence that a
certified third-party executed an Agreed-Upon Procedure (AUP)
verifying the construction expenses or accept the standard
construction wage expense estimated by the Department.
Upon review of the final project scope, timeline, budget,
and AUP, the Department shall issue a tax credit certificate
reflecting a percentage of the total construction job wages
paid throughout the completion of the project.
Each contractor and subcontractor who is engaged in and is
executing an Enterprise Zone construction jobs credit project
for a business that is entitled to a credit pursuant to this
Section shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for an Enterprise Zone construction jobs
credit project, records for all laborers and other workers
employed by them on the project; the records shall
include:
(A) the worker's name;


(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed
for only those calendar months during which construction
on an Enterprise Zone construction jobs project has
occurred; the certified payroll shall consist of a
complete copy of the records identified in paragraph (1)
of this subsection (d), but may exclude the starting and
ending times of work each day; the certified payroll shall
be accompanied by a statement signed by the contractor or


subcontractor or an officer, employee, or agent of the
contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this
subsection, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who
willfully files a false certified payroll that is false as to
any material fact is in violation of this Act and guilty of a
Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after June 5, 2019 (the effective date of Public Act 101-9) for
a period of 5 years from the date of the last payment for work


on a contract or subcontract for the project.
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall accept any reasonable
submissions by the contractor that meet the requirements of
this subsection and shall share the information with the
Department in order to comply with the awarding of Enterprise
Zone construction jobs credits. A contractor, subcontractor,
or public body may retain records required under this Section
in paper or electronic format.
Upon 7 business days' notice, the taxpayer contractor and
each subcontractor shall make available to any State agency
and to federal, State, or local law enforcement agencies and
prosecutors for inspection and copying at a location within
this State during reasonable hours, the report under this
subsection (d) records identified in paragraph (1) of this
subsection to the taxpayer in charge of the project, its
officers and agents, the Director of Labor and his or her
deputies and agents, and to federal, State, or local law
enforcement agencies and prosecutors.
(e) As used in this Section:
"Enterprise Zone construction jobs credit" means an amount
equal to 50% (or 75% if the project is located in an
underserved area) of the incremental income tax attributable


to Enterprise Zone construction jobs credit employees.
"Enterprise Zone construction jobs credit employee" means
a laborer or worker who is employed by a an Illinois contractor
or subcontractor in the actual construction work on the site
of an Enterprise Zone construction jobs credit project.
"Enterprise Zone construction jobs credit project" means
building a structure or building or making improvements of any
kind to real property commissioned and paid for by a business
that has applied and been approved for an Enterprise Zone
construction jobs credit pursuant to this Section. "Enterprise
Zone construction jobs credit project" does not include the
routine operation, routine repair, or routine maintenance of
existing structures, buildings, or real property.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of Enterprise
Zone construction jobs credit employees.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey;
(2) 35% or more of the families with children in the
area are living below 130% of the poverty line, according
to the latest American Community Survey;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or


(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
102-558, eff. 8-20-21.)
Section 15. The Reimagining Energy and Vehicles in
Illinois Act is amended by changing Sections 10, 20, 35, 45,
65, 95, and 105 as follows:
(20 ILCS 686/10)
Sec. 10. Definitions. As used in this Act:
"Advanced battery" means a battery that consists of a
battery cell that can be integrated into a module, pack, or
system to be used in energy storage applications, including a
battery used in an electric vehicle or the electric grid.
"Advanced battery component" means a component of an
advanced battery, including materials, enhancements,
enclosures, anodes, cathodes, electrolytes, cells, and other
associated technologies that comprise an advanced battery.
"Agreement" means the agreement between a taxpayer and the
Department under the provisions of Section 45 of this Act.
"Applicant" means a taxpayer that (i) operates a business


in Illinois or is planning to locate a business within the
State of Illinois and (ii) is engaged in interstate or
intrastate commerce as an electric vehicle manufacturer, an
electric vehicle component parts manufacturer, or an electric
vehicle power supply equipment manufacturer. For applications
for credits under this Act that are submitted on or after the
effective date of this amendatory Act of the 102nd General
Assembly, "applicant" also includes a taxpayer that (i)
operates a business in Illinois or is planning to locate a
business within the State of Illinois and (ii) is engaged in
interstate or intrastate commerce as a renewable energy
manufacturer. "Applicant" does not include a taxpayer who
closes or substantially reduces by more than 50% operations at
one location in the State and relocates substantially the same
operation to another location in the State. This does not
prohibit a Taxpayer from expanding its operations at another
location in the State. This also does not prohibit a Taxpayer
from moving its operations from one location in the State to
another location in the State for the purpose of expanding the
operation, provided that the Department determines that
expansion cannot reasonably be accommodated within the
municipality or county in which the business is located, or,
in the case of a business located in an incorporated area of
the county, within the county in which the business is
located, after conferring with the chief elected official of
the municipality or county and taking into consideration any


evidence offered by the municipality or county regarding the
ability to accommodate expansion within the municipality or
county.
"Battery raw materials" means the raw and processed form
of a mineral, metal, chemical, or other material used in an
advanced battery component.
"Battery raw materials refining service provider" means a
business that operates a facility that filters, sifts, and
treats battery raw materials for use in an advanced battery.
"Battery recycling and reuse manufacturer" means a
manufacturer that is primarily engaged in the recovery,
retrieval, processing, recycling, or recirculating of battery
raw materials for new use in electric vehicle batteries.
"Capital improvements" means the purchase, renovation,
rehabilitation, or construction of permanent tangible land,
buildings, structures, equipment, and furnishings in an
approved project sited in Illinois and expenditures for goods
or services that are normally capitalized, including
organizational costs and research and development costs
incurred in Illinois. For land, buildings, structures, and
equipment that are leased, the lease must equal or exceed the
term of the agreement, and the cost of the property shall be
determined from the present value, using the corporate
interest rate prevailing at the time of the application, of
the lease payments.
"Credit" means either a "REV Illinois Credit" or a "REV


Construction Jobs Credit" agreed to between the Department and
applicant under this Act.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Electric vehicle" means a vehicle that is exclusively
powered by and refueled by electricity, including electricity
generated through a hydrogen fuel cells or solar technology.
"Electric vehicle", except when referencing aircraft with
hybrid electric propulsion systems, does not include hybrid
electric vehicles, electric bicycles, or extended-range
electric vehicles that are also equipped with conventional
fueled propulsion or auxiliary engines.
"Electric vehicle manufacturer" means a new or existing
manufacturer that is primarily focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicles as defined in this
Section.
"Electric vehicle component parts manufacturer" means a
new or existing manufacturer that is focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces parts or accessories used in electric
vehicles, as defined by this Section, including advanced
battery component parts. The changes to this definition of
"electric vehicle component parts manufacturer" apply to


agreements under this Act that are entered into on or after the
effective date of this amendatory Act of the 102nd General
Assembly.
"Electric vehicle power supply equipment" means the
equipment used specifically for the purpose of delivering
electricity to an electric vehicle, including hydrogen fuel
cells or solar refueling infrastructure.
"Electric vehicle power supply manufacturer" means a new
or existing manufacturer that is focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicle power supply equipment
used for the purpose of delivering electricity to an electric
vehicle, including hydrogen fuel cell or solar refueling
infrastructure.
"Electric vehicle powertrain technology" means equipment
used to convert electricity for use in aerospace propulsion.
"Electric vehicle powertrain technology manufacturer"
means a new or existing manufacturer that is focused on
reequipping, expanding, or establishing a manufacturing
facility in Illinois that develops and validates electric
vehicle powertrain technology for use in aerospace propulsion.
"Electric vertical takeoff and landing aircraft" or "eVTOL
aircraft" means a fully electric aircraft that lands and takes
off vertically.
"Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of


the following:
(1) a fossil fuel plant that was retired from service
or has significant reduced service within 6 years before
the time of the application or will be retired or have
service significantly reduced within 6 years following the
time of the application; or
(2) a coal mine that was closed or had operations
significantly reduced within 6 years before the time of
the application or is anticipated to be closed or have
operations significantly reduced within 6 years following
the time of the application.
"Full-time employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week.
"Green steel manufacturer" means an entity that
manufactures steel without the use of fossil fuels and with
zero net carbon emissions.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project


that is the subject of an agreement.
"Institution of higher education" or "institution" means
any accredited public or private university, college,
community college, business, technical, or vocational school,
or other accredited educational institution offering degrees
and instruction beyond the secondary school level.
"Minority person" means a minority person as defined in
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
"New employee" means a newly-hired full-time employee
employed to work at the project site and whose work is directly
related to the project.
"Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director, pursuant to Section 70.
"Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,
and the facility is constructed and ready to conduct its
facility operations to manufacture goods.
"Professional employer organization" (PEO) means an


employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
"Program" means the Reimagining Energy and Vehicles in
Illinois Program (the REV Illinois Program) established in
this Act.
"Project" or "REV Illinois Project" means a for-profit
economic development activity for the manufacture of electric
vehicles, electric vehicle component parts, electric vehicle
power supply equipment, or renewable energy products, which is
designated by the Department as a REV Illinois Project and is
the subject of an agreement.
"Recycling facility" means a location at which the
taxpayer disposes of batteries and other component parts in
manufacturing of electric vehicles, electric vehicle component
parts, or electric vehicle power supply equipment.
"Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
(1) An individual stockholder, if the stockholder and
the members of the stockholder's family (as defined in
Section 318 of the Internal Revenue Code) own directly,
indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the taxpayer's
outstanding stock.
(2) A partnership, estate, trust and any partner or
beneficiary, if the partnership, estate, or trust, and its


partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation under the attribution rules
of Section 318 of the Internal Revenue Code, if the
Taxpayer owns directly, indirectly, beneficially, or
constructively at least 50% of the value of the
corporation's outstanding stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the taxpayer.
(5) A person to or from whom there is an attribution of
stock ownership in accordance with Section 1563(e) of the
Internal Revenue Code, except, for purposes of determining
whether a person is a related member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Renewable energy" means energy produced using the


materials and sources of energy through which renewable energy
resources are generated.
"Renewable energy manufacturer" means a manufacturer whose
primary function is to manufacture or assemble: (i) equipment,
systems, or products used to produce renewable or nuclear
energy; (ii) products used for energy conservation, storage,
or grid efficiency purposes; or (iii) component parts for that
equipment or those systems or products.
"Renewable energy resources" has the meaning ascribed to
that term in Section 1-10 of the Illinois Power Agency Act.
"Research and development" means work directed toward the
innovation, introduction, and improvement of products and
processes. "Research and development" includes all levels of
research and development that directly result in the potential
manufacturing and marketability of renewable energy, electric
vehicles, electric vehicle component parts, and electric or
hybrid aircraft.
"Retained employee" means a full-time employee employed by
the taxpayer prior to the term of the Agreement who continues
to be employed during the term of the agreement whose job
duties are directly related to the project. The term "retained
employee" does not include any individual who has a direct or
an indirect ownership interest of at least 5% in the profits,
equity, capital, or value of the taxpayer or a child,
grandchild, parent, or spouse, other than a spouse who is
legally separated from the individual, of any individual who


has a direct or indirect ownership of at least 5% in the
profits, equity, capital, or value of the taxpayer. The
changes to this definition of "retained employee" apply to
agreements for credits under this Act that are entered into on
or after the effective date of this amendatory Act of the 102nd
General Assembly.
"REV Illinois credit" means a credit agreed to between the
Department and the applicant under this Act that is based on
the incremental income tax attributable to new employees and,
if applicable, retained employees, and on training costs for
such employees at the applicant's project.
"REV construction jobs credit" means a credit agreed to
between the Department and the applicant under this Act that
is based on the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities.
"Statewide baseline" means the total number of full-time
employees of the applicant and any related member employed by
such entities at the time of application for incentives under
this Act.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has a legal obligation to pay Illinois
income taxes and file an Illinois income tax return.
"Training costs" means costs incurred to upgrade the
technological skills of full-time employees in Illinois and
includes: curriculum development; training materials


(including scrap product costs); trainee domestic travel
expenses; instructor costs (including wages, fringe benefits,
tuition and domestic travel expenses); rent, purchase or lease
of training equipment; and other usual and customary training
costs. "Training costs" do not include costs associated with
travel outside the United States (unless the Taxpayer receives
prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and
fringe benefits of employees during periods of training, or
administrative cost related to full-time employees of the
taxpayer.
"Underserved area" means any geographic area areas as
defined in Section 5-5 of the Economic Development for a
Growing Economy Tax Credit Act.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
(20 ILCS 686/20)
Sec. 20. REV Illinois Program; project applications.
(a) The Reimagining Energy and Vehicles in Illinois (REV
Illinois) Program is hereby established and shall be
administered by the Department. The Program will provide
financial incentives to any one or more of the following: (1)
eligible manufacturers of electric vehicles, electric vehicle
component parts, and electric vehicle power supply equipment;


(2) battery recycling and reuse manufacturers; (3) battery raw
materials refining service providers; or (4) renewable energy
manufacturers.
(b) Any taxpayer planning a project to be located in
Illinois may request consideration for designation of its
project as a REV Illinois Project, by formal written letter of
request or by formal application to the Department, in which
the applicant states its intent to make at least a specified
level of investment and intends to hire a specified number of
full-time employees at a designated location in Illinois. As
circumstances require, the Department shall require a formal
application from an applicant and a formal letter of request
for assistance.
(c) In order to qualify for credits under the REV Illinois
Program, an applicant must:
(1) if the applicant is an electric vehicle
manufacturer:
(A) make an investment of at least $1,500,000,000
in capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) create at least 500 new full-time employee
jobs; or
(2) if the applicant is an electric vehicle component
parts manufacturer, or a renewable energy manufacturer, a


green steel manufacturer, or an entity engaged in
research, development, or manufacturing of eVTOL aircraft
or hybrid-electric or fully electric propulsion systems
for airliners:
(A) make an investment of at least $300,000,000 in
capital improvements at the project site;
(B) manufacture one or more parts that are
primarily used for electric vehicle, renewable energy,
or green steel manufacturing;
(C) to be placed in service within the State
within a 60-month period after approval of the
application; and
(D) create at least 150 new full-time employee
jobs; or
(3) if the agreement is entered into before the
effective date of this amendatory Act of the 102nd General
Assembly and the applicant is an electric vehicle
manufacturer, an electric vehicle power supply equipment
manufacturer, an electric vehicle component part
manufacturer, renewable energy manufacturer, or green
steel manufacturer that does not qualify under paragraph
(2) above, a battery recycling and reuse manufacturer, or
a battery raw materials refining service provider:
(A) make an investment of at least $20,000,000 in
capital improvements at the project site;
(B) for electric vehicle component part


manufacturers, manufacture one or more parts that are
primarily used for electric vehicle manufacturing;
(C) to be placed in service within the State
within a 48-month period after approval of the
application; and
(D) create at least 50 new full-time employee
jobs; or
(3.1) if the agreement is entered into on or after the
effective date of this amendatory Act of the 102nd General
Assembly and the applicant is an electric vehicle
manufacturer, an electric vehicle power supply equipment
manufacturer, an electric vehicle component part
manufacturer, a renewable energy manufacturer, a green
steel manufacturer, or an entity engaged in research,
development, or manufacturing of eVTOL aircraft or
hybrid-electric or fully electric propulsion systems for
airliners that does not qualify under paragraph (2) above,
a renewable energy manufacturer that does not qualify
under paragraph (2) above, a battery recycling and reuse
manufacturer, or a battery raw materials refining service
provider:
(A) make an investment of at least $2,500,000 in
capital improvements at the project site;
(B) in the case of electric vehicle component part
manufacturers, manufacture one or more parts that are
used for electric vehicle manufacturing;


(C) to be placed in service within the State
within a 48-month period after approval of the
application; and
(D) create the lesser of 50 new full-time employee
jobs or new full-time employee jobs equivalent to 10%
of the Statewide baseline applicable to the taxpayer
and any related member at the time of application; or
(4) if the agreement is entered into before the
effective date of this amendatory Act of the 102nd General
Assembly and the applicant is an electric vehicle
manufacturer or electric vehicle component parts
manufacturer with existing operations within Illinois that
intends to convert or expand, in whole or in part, the
existing facility from traditional manufacturing to
primarily electric vehicle manufacturing, electric vehicle
component parts manufacturing, an or electric vehicle
power supply equipment manufacturing, or a green steel
manufacturer:
(A) make an investment of at least $100,000,000 in
capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) create the lesser of 75 new full-time employee
jobs or new full-time employee jobs equivalent to 10%
of the Statewide baseline applicable to the taxpayer


and any related member at the time of application;
(4.1) if the agreement is entered into on or after the
effective date of this amendatory Act of the 102nd General
Assembly and the applicant (i) is an electric vehicle
manufacturer, an electric vehicle component parts
manufacturer, or a renewable energy manufacturer, a green
steel manufacturer, or an entity engaged in research,
development, or manufacturing of eVTOL aircraft or hybrid
electric or fully electric propulsion systems for
airliners and (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:
(A) make an investment of at least $100,000,000 in
capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) create the lesser of 50 new full-time employee
jobs or new full-time employee jobs equivalent to 10%
of the Statewide baseline applicable to the taxpayer
and any related member at the time of application; or
(5) if the agreement is entered into on or after the
effective date of the changes made to this Section by this


amendatory Act of the 103rd General Assembly 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:
(A) make an investment of at least $500,000,000 in
capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and
(C) retain at least 800 full-time employee jobs at
the project.
(d) For agreements entered into prior to April 19, 2022
(the effective date of Public Act 102-700), for any applicant
creating the full-time employee jobs noted in subsection (c),
those jobs must have a total compensation equal to or greater
than 120% of the average wage paid to full-time employees in
the county where the project is located, as determined by the
U.S. Bureau of Labor Statistics. For agreements entered into
on or after April 19, 2022 (the effective date of Public Act
102-700), for any applicant creating the full-time employee


jobs noted in subsection (c), those jobs must have a
compensation equal to or greater than 120% of the average wage
paid to full-time employees in a similar position within an
occupational group in the county where the project is located,
as determined by the Department.
(e) For any applicant, within 24 months after being placed
in service, it must certify to the Department that it is carbon
neutral or has attained certification under one of more of the
following green building standards:
(1) BREEAM for New Construction or BREEAM In-Use;
(2) ENERGY STAR;
(3) Envision;
(4) ISO 50001 - energy management;
(5) LEED for Building Design and Construction or LEED
for Building Operations and Maintenance;
(6) Green Globes for New Construction or Green Globes
for Existing Buildings; or
(7) UL 3223.
(f) Each applicant must outline its hiring plan and
commitment to recruit and hire full-time employee positions at
the project site. The hiring plan may include a partnership
with an institution of higher education to provide
internships, including, but not limited to, internships
supported by the Clean Jobs Workforce Network Program, or
full-time permanent employment for students at the project
site. Additionally, the applicant may create or utilize


participants from apprenticeship programs that are approved by
and registered with the United States Department of Labor's
Bureau of Apprenticeship and Training. The applicant may apply
for apprenticeship education expense credits in accordance
with the provisions set forth in 14 Ill. Adm. Code 522. Each
applicant is required to report annually, on or before April
15, on the diversity of its workforce in accordance with
Section 50 of this Act. For existing facilities of applicants
under paragraph (3) of subsection (b) above, if the taxpayer
expects a reduction in force due to its transition to
manufacturing electric vehicle, electric vehicle component
parts, or electric vehicle power supply equipment, the plan
submitted under this Section must outline the taxpayer's plan
to assist with retraining its workforce aligned with the
taxpayer's adoption of new technologies and anticipated
efforts to retrain employees through employment opportunities
within the taxpayer's workforce.
(g) Each applicant must demonstrate a contractual or other
relationship with a recycling facility, or demonstrate its own
recycling capabilities, at the time of application and report
annually a continuing contractual or other relationship with a
recycling facility and the percentage of batteries used in
electric vehicles recycled throughout the term of the
agreement.
(h) A taxpayer may not enter into more than one agreement
under this Act with respect to a single address or location for


the same period of time. Also, a taxpayer may not enter into an
agreement under this Act with respect to a single address or
location for the same period of time for which the taxpayer
currently holds an active agreement under the Economic
Development for a Growing Economy Tax Credit Act. This
provision does not preclude the applicant from entering into
an additional agreement after the expiration or voluntary
termination of an earlier agreement under this Act or under
the Economic Development for a Growing Economy Tax Credit Act
to the extent that the taxpayer's application otherwise
satisfies the terms and conditions of this Act and is approved
by the Department. An applicant with an existing agreement
under the Economic Development for a Growing Economy Tax
Credit Act may submit an application for an agreement under
this Act after it terminates any existing agreement under the
Economic Development for a Growing Economy Tax Credit Act with
respect to the same address or location. If a project that is
subject to an existing agreement under the Economic
Development for a Growing Economy Tax Credit Act meets the
requirements to be designated as a REV Illinois project under
this Act, including for actions undertaken prior to the
effective date of this Act, the taxpayer that is subject to
that existing agreement under the Economic Development for a
Growing Economy Tax Credit Act may apply to the Department to
amend the agreement to allow the project to become a
designated REV Illinois project. Following the amendment, time


accrued during which the project was eligible for credits
under the existing agreement under the Economic Development
for a Growing Economy Tax Credit Act shall count toward the
duration of the credit subject to limitations described in
Section 40 of this Act.
(i) If, at any time following the designation of a project
as a REV Illinois Project by the Department and prior to the
termination or expiration of an agreement under this Act, the
project ceases to qualify as a REV Illinois project because
the taxpayer is no longer an electric vehicle manufacturer, an
electric vehicle component manufacturer, an electric vehicle
power supply equipment manufacturer, a battery recycling and
reuse manufacturer, or a battery raw materials refining
service provider, or an entity engaged in eVTOL or hybrid
electric or fully electric propulsion systems for airliners
research, development, or manufacturing, that project may
receive tax credit awards as described in Section 5-15 and
Section 5-51 of the Economic Development for a Growing Economy
Tax Credit Act, as long as the project continues to meet
requirements to obtain those credits as described in the
Economic Development for a Growing Economy Tax Credit Act and
remains compliant with terms contained in the Agreement under
this Act not related to their status as an electric vehicle
manufacturer, an electric vehicle component manufacturer, an
electric vehicle power supply equipment manufacturer, a
battery recycling and reuse manufacturer, or a battery raw


materials refining service provider, or an entity engaged in
eVTOL or hybrid-electric or fully electric propulsion systems
for airliners research, development, or manufacturing. Time
accrued during which the project was eligible for credits
under an agreement under this Act shall count toward the
duration of the credit subject to limitations described in
Section 5-45 of the Economic Development for a Growing Economy
Tax Credit Act.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff.
6-7-23.)
(20 ILCS 686/35)
Sec. 35. Relocation of jobs in Illinois. A taxpayer is not
entitled to claim a credit provided by this Act with respect to
any jobs that the Taxpayer relocates from one site in Illinois
to another site in Illinois unless the taxpayer has agreed to
hire the minimum number of new employees and the Department
has determined that the expansion cannot reasonably be
accommodated within the municipality in which the business is
located. Any full-time employee relocated to Illinois in
connection with a qualifying project is deemed to be a new
employee for purposes of this Act. Determinations under this
Section shall be made by the Department.
(Source: P.A. 102-669, eff. 11-16-21.)


(20 ILCS 686/45)
Sec. 45. Contents of agreements with applicants.
(a) The Department shall enter into an agreement with an
applicant that is awarded a credit under this Act. The
agreement shall include all of the following:
(1) A detailed description of the project that is the
subject of the agreement, including the location and
amount of the investment and jobs created or retained.
(2) The duration of the credit, the first taxable year
for which the credit may be awarded, and the first taxable
year in which the credit may be used by the taxpayer.
(3) The credit amount that will be allowed for each
taxable year.
(4) For a project qualified under paragraphs (1), (2),
(4), or (5) of subsection (c) of Section 20, a requirement
that the taxpayer shall maintain operations at the project
location a minimum number of years not to exceed 15. For a
project qualified under paragraph (3) of subsection (c) of
Section 20, a requirement that the taxpayer shall maintain
operations at the project location a minimum number of
years not to exceed 10.
(5) A specific method for determining the number of
new employees and if applicable, retained employees,
employed during a taxable year.
(6) A requirement that the taxpayer shall annually
report to the Department the number of new employees, the


incremental income tax withheld in connection with the new
employees, and any other information the Department deems
necessary and appropriate to perform its duties under this
Act.
(7) A requirement that the Director is authorized to
verify with the appropriate State agencies the amounts
reported under paragraph (6), and after doing so shall
issue a certificate to the taxpayer stating that the
amounts have been verified.
(8) A requirement that the taxpayer shall provide
written notification to the Director not more than 30 days
after the taxpayer makes or receives a proposal that would
transfer the taxpayer's State tax liability obligations to
a successor taxpayer.
(9) A detailed description of the number of new
employees to be hired, and the occupation and payroll of
full-time jobs to be created or retained because of the
project.
(10) The minimum investment the taxpayer will make in
capital improvements, the time period for placing the
property in service, and the designated location in
Illinois for the investment.
(11) A requirement that the taxpayer shall provide
written notification to the Director and the Director's
designee not more than 30 days after the taxpayer
determines that the minimum job creation or retention,


employment payroll, or investment no longer is or will be
achieved or maintained as set forth in the terms and
conditions of the agreement. Additionally, the
notification should outline to the Department the number
of layoffs, date of the layoffs, and detail taxpayer's
efforts to provide career and training counseling for the
impacted workers with industry-related certifications and
trainings.
(12) If applicable, a provision that, if the total
number of new employees falls below a specified level, the
allowance of credit shall be suspended until the number of
new employees equals or exceeds the agreement amount.
(13) If applicable, a provision that specifies the
statewide baseline at the time of application for retained
employees. The agreement must have a provision addressing
if the total number of retained employees falls below the
lesser of the statewide baseline or the retention
requirements specified in the agreement, the allowance of
the credit shall be suspended until the number of retained
employees equals or exceeds the agreement amount.
(14) A detailed description of the items for which the
costs incurred by the Taxpayer will be included in the
limitation on the Credit provided in Section 40.
(15) If the agreement is entered into before the
effective date of the changes made to this Section by this
amendatory Act of the 103rd General Assembly, a provision


stating that if the taxpayer fails to meet either the
investment or job creation and retention requirements
specified in the agreement during the entire 5-year period
beginning on the first day of the first taxable year in
which the agreement is executed and ending on the last day
of the fifth taxable year after the agreement is executed,
then the agreement is automatically terminated on the last
day of the fifth taxable year after the agreement is
executed, and the taxpayer is not entitled to the award of
any credits for any of that 5-year period. If the
agreement is entered into on or after the effective date
of the changes made to this Section by this amendatory Act
of the 103rd General Assembly, a provision stating that if
the taxpayer fails to meet either the investment or job
creation and retention requirements specified in the
agreement during the entire 10-year period beginning on
the effective date of the agreement and ending 10 years
after the effective date of the agreement, then the
agreement is automatically terminated, and the taxpayer is
not entitled to the award of any credits for any of that
10-year period.
(16) A provision stating that if the taxpayer ceases
principal operations with the intent to permanently shut
down the project in the State during the term of the
Agreement, then the entire credit amount awarded to the
taxpayer prior to the date the taxpayer ceases principal


operations shall be returned to the Department and shall
be reallocated to the local workforce investment area in
which the project was located.
(17) A provision stating that the Taxpayer must
provide the reports outlined in Sections 50 and 55 on or
before April 15 each year.
(18) A provision requiring the taxpayer to report
annually its contractual obligations or otherwise with a
recycling facility for its operations.
(19) Any other performance conditions or contract
provisions the Department determines are necessary or
appropriate.
(20) Each taxpayer under paragraph (1) of subsection
(c) of Section 20 above shall maintain labor neutrality
toward any union organizing campaign for any employees of
the taxpayer assigned to work on the premises of the REV
Illinois Project Site. This paragraph shall not apply to
an electric vehicle manufacturer, electric vehicle
component part manufacturer, electric vehicle power supply
manufacturer, or renewable energy manufacturer, or any
joint venture including an electric vehicle manufacturer,
electric vehicle component part manufacturer, electric
vehicle power supply manufacturer, or renewable energy
manufacturer, or an entity engaged in eVTOL or
hybrid-electric or fully electric propulsion systems for
airliners research, development, or manufacturing, who is


subject to collective bargaining agreement entered into
prior to the taxpayer filing an application pursuant to
this Act.
(b) The Department shall post on its website the terms of
each agreement entered into under this Act. Such information
shall be posted within 10 days after entering into the
agreement and must include the following:
(1) the name of the taxpayer;
(2) the location of the project;
(3) the estimated value of the credit;
(4) the number of new employee jobs and, if
applicable, number of retained employee jobs at the
project; and
(5) whether or not the project is in an underserved
area or energy transition area.
(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
103-9, eff. 6-7-23.)
(20 ILCS 686/65)
Sec. 65. REV Construction Jobs Credits Certified payroll.
(a) Each REV program participant contractor and
subcontractor that is engaged in construction work on project
facilities for a taxpayer who seeks to apply for a REV
Construction Jobs credit shall annually, until construction is
completed, submit a report that, at a minimum, describes the
projected project scope, timeline, and anticipated budget.


Once the project has commenced, the annual report shall
include actual data for the prior year as well as projections
for each additional year through completion of the project.
The Department shall issue detailed reporting guidelines
prescribing the requirements of construction related reports. :
In order to receive credit for construction expenses, the
company must provide the Department with evidence that a
certified third-party executed an Agreed-Upon Procedure (AUP)
verifying the construction expenses or accept the standard
construction wage expense estimated by the Department.
Upon review of the final project scope, timeline, budget,
and AUP, the Department shall issue a tax credit certificate
reflecting a percentage of the total construction job wages
paid throughout the completion of the project.
(1) make and keep, for a period of 5 years from the
date of the last payment made on a contract or subcontract
for construction of facilities for a REV Illinois Project
pursuant to an agreement, records of all laborers and
other workers employed by the contractor or subcontractor
on the project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;


(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked in each
day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
Taxpayer shall file the certified payroll with the
Department of Labor and the Department; a certified
payroll must be filed for only those calendar months
during which construction on the REV Illinois Project
facilities has occurred; the certified payroll shall
consist of a complete copy of the records identified in
paragraph (1), but may exclude the starting and ending
times of work each day; the certified payroll shall be
accompanied by a statement signed by the contractor or
subcontractor or an officer, employee, or agent of the
contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and


(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
(b) (Blank). Any contractor or subcontractor subject to
this Section, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
Section, who willfully fails to file such a certified payroll,
on or before the date such certified payroll is required to be
filed and any person who willfully files a false certified
payroll as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor and may be enforced by the
Illinois Department of Labor or the Department. The Attorney
General shall represented the Illinois Department of Labor or
the Department in the proceeding.
(c) (Blank). The taxpayer in charge of the project shall
keep the records submitted in accordance with this Section for
a period of 5 years from the date of the last payment for work
on a contract or subcontract for the project.
(d) (Blank). The records submitted in accordance with this
Section shall be considered public records, except an
employee's address, telephone number, and social security


number, which shall be redacted. The records shall be made
publicly available in accordance with the Freedom of
Information Act. The contractor or subcontractor shall submit
reports to the Department of Labor electronically that meet
the requirements of this subsection and shall share the
information with the Department to comply with the awarding of
the REV Construction Jobs Credit. A contractor, subcontractor,
or public body may retain records required under this Section
in paper or electronic format.
(e) Upon 7 business days' notice, the taxpayer contractor
and each subcontractor shall make available to any State
agency and to federal, State, or local law enforcement
agencies and prosecutors for inspection and copying at a
location within this State during reasonable hours, the report
described in subsection (a) records identified in paragraph
(1) of this subsection to the Taxpayer in charge of the
Project, its officers and agents, the Director of the
Department of Labor and his/her deputies and agents, and to
federal, State, or local law enforcement agencies and
prosecutors.
(Source: P.A. 102-669, eff. 11-16-21.)
(20 ILCS 686/95)
Sec. 95. Utility tax exemptions for REV Illinois Project
sites. The Department may certify a taxpayer with a REV
Illinois credit for a Project that meets the qualifications


under Section paragraphs (1), (2), and (4), (4.1), or (5) of
subsection (c) of Section 20, subject to an agreement under
this Act for an exemption from the tax imposed at the project
site by Section 2-4 of the Electricity Excise Tax Law. To
receive such certification, the taxpayer must be registered to
self-assess that tax. The taxpayer is also exempt from any
additional charges added to the taxpayer's utility bills at
the project site as a pass-on of State utility taxes under
Section 9-222 of the Public Utilities Act. The taxpayer must
meet any other the criteria for certification set by the
Department.
The Department shall determine the period during which the
exemption from the Electricity Excise Tax Law and the charges
imposed under Section 9-222 of the Public Utilities Act are in
effect, which shall not exceed 30 10 years from the date of the
taxpayer's initial receipt of certification from the
Department under this Section.
The Department is authorized to adopt rules to carry out
the provisions of this Section, including procedures to apply
for the exemptions; to define the amounts and types of
eligible investments that an applicant must make in order to
receive electricity excise tax exemptions or exemptions from
the additional charges imposed under Section 9-222 and the
Public Utilities Act; to approve such electricity excise tax
exemptions for applicants whose investments are not yet placed
in service; and to require that an applicant granted an


electricity excise tax exemption or an exemption from
additional charges under Section 9-222 of the Public Utilities
Act repay the exempted amount if the Applicant fails to comply
with the terms and conditions of the agreement.
Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The Department of Revenue shall notify the
public utilities of the exempt status of any taxpayer
certified for exemption under this Act from the electricity
excise tax or pass-on charges. The exemption status shall take
effect within 3 months after certification of the taxpayer and
notice to the Department of Revenue by the Department.
(Source: P.A. 102-669, eff. 11-16-21.)
(20 ILCS 686/105)
Sec. 105. Building materials exemptions for REV Illinois
Project sites.
(a) The Department may certify a Taxpayer with a REV
Illinois Project that meets the qualifications under
paragraphs (1), (2), or (4), (4.1), or (5) of subsection (c) of
Section 20, subject to an agreement under this Act, for an
exemption from any State or local use tax or retailers'
occupation tax on building materials for the construction of
its project facilities. The taxpayer must meet any criteria
for certification set by the Department under this Act.
The Department shall determine the period during which the


exemption from State and local use tax and retailers'
occupation tax are in effect, but in no event shall exceed 5
years in accordance with Section 5m of the Retailers'
Occupation Tax Act.
The Department is authorized to promulgate rules and
regulations to carry out the provisions of this Section,
including procedures to apply for the exemption; to define the
amounts and types of eligible investments that an applicant
must make in order to receive tax exemption; to approve such
tax exemption for an applicant whose investments are not yet
placed in service; and to require that an applicant granted
exemption repay the exempted amount if the applicant fails to
comply with the terms and conditions of the agreement with the
Department.
Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The exemption status shall take effect within 3
months after certification of the taxpayer and notice to the
Department of Revenue by the Department.
(Source: P.A. 102-669, eff. 11-16-21.)
Section 17. The Energy Transition Act is amended by
changing Sections 5-20 and 5-45 as follows:
(20 ILCS 730/5-20)
(Section scheduled to be repealed on September 15, 2045)


Sec. 5-20. Clean Jobs Workforce Network Program.
(a) As used in this Section, "Program" means the Clean
Jobs Workforce Network Program.
(b) Subject to appropriation, the Department shall develop
and, through Regional Administrators, administer the Clean
Jobs Workforce Network Program to create a network of 14 13
Program delivery Hub Sites with program elements delivered by
community-based organizations and their subcontractors
geographically distributed across the State including at least
one Hub Site located in or near each of the following areas:
Chicago (South Side), Chicago (Southwest and West Sides),
Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign,
Danville, Decatur, Carbondale, East St. Louis, Kankakee, and
Alton.
(c) In admitting program participants, for each workforce
Hub Site, the Regional Administrators shall:
(1) in each Hub Site where the applicant pool allows:
(A) dedicate at least one-third of program
placements to applicants who reside in a geographic
area that is impacted by economic and environmental
challenges, defined as an area that is both (i) an R3
Area, as defined pursuant to Section 10-40 of the
Cannabis Regulation and Tax Act, and (ii) an
environmental justice community, as defined by the
Illinois Power Agency, excluding any racial or ethnic
indicators used by the agency unless and until the


constitutional basis for their inclusion in
determining program admissions is established. Among
applicants that satisfy these criteria, preference
shall be given to applicants who face barriers to
employment, such as low educational attainment, prior
involvement with the criminal legal system, and
language barriers; and applicants that are graduates
of or currently enrolled in the foster care system;
and
(B) dedicate at least two-thirds of program
placements to applicants that satisfy the criteria in
paragraph (1) or who reside in a geographic area that
is impacted by economic or environmental challenges,
defined as an area that is either (i) an R3 Area, as
defined pursuant to Section 10-40 of the Cannabis
Regulation and Tax Act, or (ii) an environmental
justice community, as defined by the Illinois Power
Agency, excluding any racial or ethnic indicators used
by the agency unless and until the constitutional
basis for their inclusion in determining program
admissions is established. Among applicants that
satisfy these criteria, preference shall be given to
applicants who face barriers to employment, such as
low educational attainment, prior involvement with the
criminal legal system, and language barriers; and
applicants that are graduates of or currently enrolled


in the foster care system; and
(2) prioritize the remaining program placements for:
applicants who are displaced energy workers as defined in
the Energy Community Reinvestment Act; persons who face
barriers to employment, including low educational
attainment, prior involvement with the criminal legal
system, and language barriers; and applicants who are
graduates of or currently enrolled in the foster care
system, regardless of the applicant's area of residence.
The Department and Regional Administrators shall protect
the confidentiality of any personal information provided by
program applicants regarding the applicant's status as a
formerly incarcerated person or foster care recipient;
however, the Department or Regional Administrators may publish
aggregated data on the number of participants that were
formerly incarcerated or foster care recipients so long as
that publication protects the identities of those persons.
Any person who applies to the program may elect not to
share with the Department or Regional Administrators whether
he or she is a graduate or currently enrolled in the foster
care system or was formerly convicted.
(d) Program elements for each Hub Site shall be provided
by a community-based organization. The Department shall
initially select a community-based organization in each Hub
Site and shall subsequently select a community-based
organization in each Hub Site every 3 years. Community-based


organizations delivering program elements outlined in
subsection (e) may provide all elements required or may
subcontract to other entities for provision of portions of
program elements, including, but not limited to,
administrative soft and hard skills for program participants,
delivery of specific training in the core curriculum, or
provision of other support functions for program delivery
compliance.
(e) The Clean Jobs Workforce Hubs Network shall:
(1) coordinate with Energy Transition Navigators: (i)
to increase participation in the Clean Jobs Workforce
Network Program and clean energy and related sector
workforce and training opportunities; (ii) coordinate
recruitment, communications, and ongoing engagement with
potential employers, including, but not limited to,
activities such as job matchmaking initiatives, hosting
events such as job fairs, and collaborating with other Hub
Sites to identify and implement best practices for
employer engagement; and (iii) leverage community-based
organizations, educational institutions, and
community-based and labor-based training providers to
ensure program-eligible individuals across the State have
dedicated and sustained support to enter and complete the
career pipeline for clean energy and related sector jobs;
(2) develop formal partnerships, including formal
sector partnerships between community-based organizations


and entities that provide clean energy jobs, including
businesses, nonprofit organizations, and worker-owned
cooperatives, to ensure that Program participants have
priority access to employment training and hiring
opportunities; and
(3) implement the Clean Jobs Curriculum to provide,
including, but not limited to, training, certification
preparation, job readiness, and skill development,
including soft skills, math skills, technical skills,
certification test preparation, and other development
needed, to Program participants.
(f) Funding for the Program is subject to appropriation
from the Energy Transition Assistance Fund.
(g) The Department shall require submission of quarterly
reports, including program performance metrics by each Hub
Site to the Regional Administrator of their Program Delivery
Area. Program performance metrics include, but are not limited
to:
(1) demographic data, including racial, gender,
residency in eligible communities, and geographic
distribution data, on Program trainees entering and
graduating the Program;
(2) demographic data, including racial, gender,
residency in eligible communities, and geographic
distribution data, on Program trainees who are placed in
employment, including the percentages of trainees by race,


gender, and geographic categories in each individual job
type or category and whether employment is union,
nonunion, or nonunion via temporary agency;
(3) trainee job acquisition and retention statistics,
including the duration of employment (start and end dates
of hires) by race, gender, and geography;
(4) hourly wages, including hourly overtime pay rate,
and benefits of trainees placed into employment by race,
gender, and geography;
(5) percentage of jobs by race, gender, and geography
held by Program trainees or graduates that are full-time
equivalent positions, meaning that the position held is
full-time, direct, and permanent based on 2,080 hours
worked per year (paid directly by the employer, whose
activities, schedule, and manner of work the employer
controls, and receives pay and benefits in the same manner
as permanent employees); and
(6) qualitative data consisting of open-ended
reporting on pertinent issues, including, but not limited
to, qualitative descriptions accompanying metrics or
identifying key successes and challenges.
(h) Within 3 years after the effective date of this Act,
the Department shall select an independent evaluator to review
and prepare a report on the performance of the Program and
Regional Administrators.
(Source: P.A. 102-662, eff. 9-15-21.)


(20 ILCS 730/5-45)
(Section scheduled to be repealed on September 15, 2045)
Sec. 5-45. Clean Energy Contractor Incubator Program.
(a) As used in this Section, "community-based
organization" means a nonprofit organization, including an
accredited public college or university that:
(1) has a history of providing business-related
assistance and knowledge to help entrepreneurs start, run,
and grow their businesses;
(2) has knowledge of construction and clean energy
trades;
(3) demonstrates relationships with local residents
and other organizations serving the community; and
(4) demonstrates the ability to effectively serve
diverse and underrepresented populations.
(b) Subject to appropriation, the Department shall
develop, and through the Regional Administrators, administer
the Clean Energy Contractor Incubator Program ("Program") to
create a network of 14 13 Program delivery Hub Sites with
program elements delivered by community-based organizations
and their subcontractors geographically distributed across the
State, including at least one Hub Site located in or near each
of the following areas: Chicago (South Side), Chicago
(Southwest and West Sides), Waukegan, Rockford, Aurora,
Joliet, Peoria, Champaign, Danville, Decatur, Carbondale, East


St. Louis, Kankakee, and Alton.
(c) In admitting program participants, for each Contractor
Incubator Hub Site the Regional Administrators shall:
(1) in each Hub Site where the applicant pool allows:
(A) dedicate at least one-third of program
placements to the owners of clean energy contractor
businesses and nonprofits who reside in a geographic
area that is impacted by economic and environmental
challenges, defined as an area that is both (i) an R3
Area, as defined pursuant to Section 10-40 of the
Cannabis Regulation and Tax Act, and (ii) an
environmental justice community, as defined by the
Illinois Power Agency, excluding any racial or ethnic
indicators used by the agency unless and until the
constitutional basis for their inclusion in
determining program admissions is established. Among
applicants that satisfy these criteria, preference
shall be given to applicants who face barriers to
employment, such as low educational attainment, prior
involvement with the criminal legal system, and
language barriers; and applicants that are graduates
of or currently enrolled in the foster care system;
and
(B) dedicate at least two-thirds of program
placements to the owners of clean energy contractor
businesses and nonprofits that satisfy the criteria in


paragraph (1) or who reside in eligible communities.
Among applicants who live in eligible communities,
preference shall be given to applicants who face
barriers to employment, such as low educational
attainment, prior involvement with the criminal legal
system, and language barriers; and applicants that are
graduates of or currently enrolled in the foster care
system; and
(2) prioritize the remaining program placements for:
applicants who are displaced energy workers as defined in
the Energy Community Reinvestment Act; persons who face
barriers to employment, including low educational
attainment, prior involvement with the criminal legal
system, and language barriers; and applicants who are
graduates of or currently enrolled in the foster care
system, regardless of the applicants' area of residence.
Consideration shall also be given to any current or past
participant in the Clean Jobs Workforce Network Program,
Illinois Climate Works Preapprenticeship Program, or Returning
Residents Clean Energy Jobs Training Program.
The Department and Regional Administrators shall protect
the confidentiality of any personal information provided by
program applicants regarding the applicant's status as a
formerly incarcerated person or foster care recipient;
however, the Department or Regional Administrators may publish
aggregated data on the number of participants that were


formerly incarcerated or foster care recipients so long as
that publication protects the identities of those persons.
Any person who applies to the program may elect not to
share with the Department or Regional Administrators whether
he or she is a graduate or currently enrolled in the foster
care system or was formerly convicted.
(d) Program elements at each Hub Site shall be provided by
a local community-based organization. The Department shall
initially select a community-based organization in each Hub
Site and shall subsequently select a community-based
organization in each Hub Site every 3 years. Community-based
organizations delivering program elements outlined in
subsection (e) may provide all elements required or may
subcontract to other entities for provision of portions of
program elements, including, but not limited to,
administrative soft and hard skills for program participants,
delivery of specific training in the core curriculum, or
provision of other support functions for program delivery
compliance.
(e) The Clean Energy Contractor Incubator Program shall:
(1) provide access to low-cost capital for small clean
energy businesses and contractors;
(2) provide support for obtaining financial assurance,
including, but not limited to: bonding; back office
services; insurance, permits, training and certifications;
business planning; and low-interest loans;


(3) train, mentor, and provide other support needed to
allow participant contractors to: (i) build their
businesses and connect to specific projects, (ii) register
as approved vendors, (iii) engage in approved vendor
subcontracting and qualified installer opportunities, (iv)
develop partnering and networking skills, (v) compete for
capital and other resources, and (vi) execute clean
energy-related project installations and subcontracts;
(4) ensure that participant contractors, community
partners, and potential contractor clients are aware of
and engaged in the Program;
(5) connect participant contractors with the
Department of Labor for resources, training, and technical
support on prevailing wage compliance;
(6) provide recruitment and ongoing engagement with
entities that hire contractors and subcontractors,
programs providing renewable energy resource-related
projects, incentive programs, and approved vendor and
qualified installer opportunities, including, but not
limited to, activities such as matchmaking, events, and
collaborating with other Hub Sites.
(f) Funding for the Program and independent evaluations as
described in subsection (h) are subject to appropriation from
the Energy Transition Assistance Fund.
(g) The Department shall require submission of quarterly
reports including program performance metrics by each Hub Site


to the Regional Administrator of their Program Delivery Area.
Program performance metrics include, but are not limited to:
(1) demographic data including: race, gender,
geographic location, R3 residency, Environmental Justice
Community residency, foster care system participation, and
justice-involvement for the owners of contractors
applying, accepted into, and graduating from the Program;
(2) the number of projects completed by participant
contractors, alone or in partnership, by race, gender,
geographic location, R3 residency, Environmental Justice
Community residency, foster care system participation, and
justice-involvement for the owners of contractors;
(3) the number of partnerships with participant
contractors that are expected to result in contracts for
work by the participant contractor, by race, gender,
geographic location, R3 residency, Environmental Justice
Community residency, foster care system participation, and
justice-involvement for the owners of contractors;
(4) changes in participant contractors' business
revenue, by race, gender, geographic location, R3
residency, Environmental Justice Community residency,
foster care system participation, and justice-involvement
for the owners of contractors;
(5) the number of new hires by participant
contractors, by race, gender, geographic location, R3
residency, Environmental Justice Community residency,


foster care system participation, and justice-involvement;
(6) demographic data, including race, gender,
geographic location, R3 residency, Environmental Justice
Community residency, foster care system participation, and
justice-involvement, and average wage data, for new hires
by participant contractors;
(7) certifications held by participant contractors,
and number of participants holding each certification,
including, but not limited to, registration under the
Business Enterprise for Minorities, Women, and Persons
with Disabilities Act program and other programs intended
to certify BIPOC entities;
(8) the number of Program sessions attended by
participant contractors, aggregated by race; and
(9) indicators relevant for assessing the general
financial health of participant contractors.
(h) Within 3 years after the effective date of this Act,
the Department shall select an independent evaluator to review
and prepare a report on the performance of the Program and
Regional Administrators. The report shall be posted publicly.
(Source: P.A. 102-662, eff. 9-15-21.)
Section 20. The Illinois Income Tax Act is amended by
changing Section 201 and by adding Section 241 as follows:
(35 ILCS 5/201)


Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.


(4) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2011,
and ending prior to January 1, 2015, an amount equal to 5%
of the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section
202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of


(i) 3.75% of the taxpayer's net income for the period
prior to July 1, 2017, as calculated under Section 202.5,
and (ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to


January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1,
2017, as calculated under Section 202.5, and (ii) 7% of
the taxpayer's net income for the period after June 30,
2017, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years


beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing
Act of 1975 and (ii) of an organization gaming licensee under
the Illinois Gambling Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;


(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other


than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The
Personal Property Tax Replacement Income Tax shall be in
addition to the income tax imposed by subsections (a) and (b)
of this Section and in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a


partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on
such income by the foreign insurer's state of domicile. For
the purposes of this subsection (d-1), an inter-affiliate


includes a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such
foreign insurer under this Act for a taxable year, net
of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of
the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% for taxable years ending prior to December
31, 2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of
Section 409 of the Illinois Insurance Code. This paragraph
will in no event increase the rates imposed under
subsections (b) and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by


subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a
credit against the Personal Property Tax Replacement Income
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be allowed
an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment
records filed with the Illinois Department of Employment
Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for the
first year in which they file employment records with the
Illinois Department of Employment Security. The provisions
added to this Section by Public Act 85-1200 (and restored
by Public Act 87-895) shall be construed as declaratory of
existing law and not as a new enactment. If, in any year,
the increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit


shall be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i)
and (ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all


such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, earlier
credit shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land
or improvements to real property that are not a
structural component of a building such as
landscaping, sewer lines, local access roads, fencing,
parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);


(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection
(e), the term "retailing" means the sale of tangible
personal property for use or consumption and not for
resale, or services rendered in conjunction with the sale
of tangible personal property for use or consumption and
not for resale. For purposes of this subsection (e),


"tangible personal property" has the same meaning as when
that term is used in the Retailers' Occupation Tax Act,
and, for taxable years ending after December 31, 2008,
does not include the generation, transmission, or
distribution of electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal
Property Tax Replacement Income Tax for such taxable year
shall be increased. Such increase shall be determined by
(i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such


recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners
the credits to which the partnership is entitled under
this subsection (e) for the taxable year. A partner may
use the credit allocated to him or her under this
paragraph only against the tax imposed in subsections (c)
and (d) of this Section. If the partnership makes that
election, those credits shall be allocated among the
partners in the partnership in accordance with the rules
set forth in Section 704(b) of the Internal Revenue Code,
and the rules promulgated under that Section, and the
allocated amount of the credits shall be allowed to the
partners for that taxable year. The partnership shall make
this election on its Personal Property Tax Replacement
Income Tax return for that taxable year. The election to


pass through the credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a
subtraction under subparagraph (I) of paragraph (2) of
subsection (d) of Section 203 or a shareholder that
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the
partnership or Subchapter S corporation, determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in
service in an Enterprise Zone created pursuant to the
Illinois Enterprise Zone Act or, for property placed in
service on or after July 1, 2006, a River Edge
Redevelopment Zone established pursuant to the River Edge
Redevelopment Zone Act. For partners, shareholders of
Subchapter S corporations, and owners of limited liability


companies, if the liability company is treated as a
partnership for purposes of federal and State income
taxation, for taxable years ending before December 31,
2023, there shall be allowed a credit under this
subsection (f) to be determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the
Internal Revenue Code. For taxable years ending on or
after December 31, 2023, for partners and shareholders of
Subchapter S corporations, the provisions of Section 251
shall apply with respect to the credit under this
subsection. The credit shall be .5% of the basis for such
property. The credit shall be available only in the
taxable year in which the property is placed in service in
the Enterprise Zone or River Edge Redevelopment Zone and
shall not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections
(a) and (b) of this Section to below zero. For tax years
ending on or after December 31, 1985, the credit shall be
allowed for the tax year in which the property is placed in
service, or, if the amount of the credit exceeds the tax
liability for that year, whether it exceeds the original
liability or the liability as later amended, such excess
may be carried forward and applied to the tax liability of
the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which


there is a liability. If there is credit from more than one
tax year that is available to offset a liability, the
credit accruing first in time shall be applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such


increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise
Zone or River Edge Redevelopment Zone within 48 months
after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in


service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more
over the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file
employment records with the Illinois Department of
Employment Security. If, in any year, the increase in base
employment within Illinois over the preceding year is less
than 1%, the additional credit shall be limited to that
percentage times a fraction, the numerator of which is
0.5% and the denominator of which is 1%, but shall not
exceed 0.5%.
(8) For taxable years beginning on or after January 1,
2021, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may
be carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest


year for which there is a tax liability. If there are
credits from more than one taxable year that are available
to offset a liability, the earlier credit shall be applied
first.
For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, for
taxable years ending before December 31, 2023, there shall
be allowed a credit under this Section to be determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. For taxable
years ending on or after December 31, 2023, for partners
and shareholders of Subchapter S corporations, the
provisions of Section 251 shall apply with respect to the
credit under this subsection.
The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
shall not exceed $20,000,000 in any State fiscal year.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall


be allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in
the taxable year in which such investments have been
completed. The credit for additional investments beyond
the minimum investment by a designated high impact
business authorized under subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act shall be available
only in the taxable year in which the property is placed in
service and shall not be allowed to the extent that it
would reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For


tax years ending on or after December 31, 1987, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone


Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the
amount of such increase shall be deemed property placed in
service on the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously


allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under
Section 18-183 of the Property Tax Code, the tax imposed
under subsections (a) and (b) of this Section shall be
increased for the taxable year in which the taxpayer
relocated its facility by an amount equal to the amount of
credit received by the taxpayer under this subsection (h).
(h-5) High Impact Business construction jobs credit. For
taxable years beginning on or after January 1, 2021, there
shall also be allowed a High Impact Business construction jobs
credit against the tax imposed under subsections (a) and (b)
of this Section as provided in subsections (i) and (j) of
Section 5.5 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under


paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier
credit shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, for taxable years
ending before December 31, 2023, if the liability company is
treated as a partnership for the purposes of federal and State
income taxation, there shall be allowed a credit under this
Section to be determined in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code. For
taxable years ending on or after December 31, 2023, for
partners and shareholders of Subchapter S corporations, the
provisions of Section 251 shall apply with respect to the
credit under this subsection.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
exceed $20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a)
and (b) of this Section for the tax imposed by subsections (c)


and (d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections
(a) and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year, provided that no credit may be carried
forward to any year ending on or after December 31, 2003. This
credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax


imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such
taxable year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed
outside of Illinois by a taxpayer, for educational or
vocational training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from gross
income in the computation of taxable income. The credit
against the tax imposed by subsections (a) and (b) shall be
1.6% of such training expenses. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
for taxable years ending before December 31, 2023, there shall
be allowed a credit under this subsection (j) to be determined
in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code. For taxable years
ending on or after December 31, 2023, for partners and
shareholders of Subchapter S corporations, the provisions of


Section 251 shall apply with respect to the credit under this
subsection.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to each
of the 5 taxable years following the year for which the credit
is first computed until it is used. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a liability,
the earliest credit arising under this subsection shall be
applied first. No carryforward credit may be claimed in any
tax year ending on or after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2032 January 1, 2027, a
taxpayer shall be allowed a credit against the tax imposed by
subsections (a) and (b) of this Section for increasing
research activities in this State. The credit allowed against
the tax imposed by subsections (a) and (b) shall be equal to 6
1/2% of the qualifying expenditures for increasing research
activities in this State. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
for taxable years ending before December 31, 2023, there shall


be allowed a credit under this subsection to be determined in
accordance with the determination of income and distributive
share of income under Sections 702 and 704 and subchapter S of
the Internal Revenue Code. For taxable years ending on or
after December 31, 2023, for partners and shareholders of
Subchapter S corporations, the provisions of Section 251 shall
apply with respect to the credit under this subsection.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures
for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in
which incurred over qualifying expenditures for the base
period, "qualifying expenditures for the base period" means
the average of the qualifying expenditures for each year in
the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the
determination is being made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever
occurs first; provided that no credit earned in a tax year


ending prior to December 31, 2003 may be carried forward to any
year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from Public Act 91-644 in
construing this Section for taxable years beginning before
January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2032 January 1, 2027,
including, but not limited to, the period beginning on January
1, 2016 and ending on July 6, 2017 (the effective date of
Public Act 100-22). All actions taken in reliance on the
continuation of the credit under this subsection (k) by any
taxpayer are hereby validated.


(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and
on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for certain amounts paid for
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs
approved by the Illinois Environmental Protection Agency
("Agency") under Section 58.14 of the Environmental
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. After the Pollution
Control Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability


for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue
Code and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of
being a related taxpayer, as well as any of its partners.
The credit allowed against the tax imposed by subsections
(a) and (b) shall be equal to 25% of the unreimbursed
eligible remediation costs in excess of $100,000 per site,
except that the $100,000 threshold shall not apply to any
site contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year
with a maximum total of $150,000 per site. For partners
and shareholders of subchapter S corporations, there shall
be allowed a credit under this subsection to be determined
in accordance with the determination of income and
distributive share of income under Sections 702 and 704
and subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The


term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year
for which there is a liability. If there is a credit under
this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A
credit allowed under this subsection may be sold to a
buyer as part of a sale of all or part of the remediation
site for which the credit was granted. The purchaser of a
remediation site and the tax credit shall succeed to the
unused credit and remaining carry-forward period of the
seller. To perfect the transfer, the assignor shall record
the transfer in the chain of title for the site and provide
written notice to the Director of the Illinois Department
of Revenue of the assignor's intent to sell the
remediation site and the amount of the tax credit to be
transferred as a portion of the sale. In no event may a
credit be transferred to any taxpayer if the taxpayer or a
related party would not be eligible under the provisions
of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years


ending after December 31, 1999, a taxpayer who is the
custodian of one or more qualifying pupils shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for qualified education expenses incurred on
behalf of the qualifying pupils. The credit shall be equal to
25% of qualified education expenses, but in no event may the
total credit under this subsection claimed by a family that is
the custodian of qualifying pupils exceed (i) $500 for tax
years ending prior to December 31, 2017, and (ii) $750 for tax
years ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as


defined in this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify
for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31,
2006, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing


environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. Determinations as to
credit availability for purposes of this Section shall be
made consistent with rules adopted by the Pollution
Control Board pursuant to the Illinois Administrative
Procedure Act for the administration and enforcement of
Section 58.9 of the Environmental Protection Act. For
purposes of this Section, "taxpayer" includes a person
whose tax attributes the taxpayer has succeeded to under
Section 381 of the Internal Revenue Code and "related
party" includes the persons disallowed a deduction for
losses by paragraphs (b), (c), and (f)(1) of Section 267
of the Internal Revenue Code by virtue of being a related
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and (b)
shall be equal to 25% of the unreimbursed eligible


remediation costs in excess of $100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available
to offset a liability, the earliest credit arising under
this subsection shall be applied first. A credit allowed
under this subsection may be sold to a buyer as part of a
sale of all or part of the remediation site for which the
credit was granted. The purchaser of a remediation site
and the tax credit shall succeed to the unused credit and
remaining carry-forward period of the seller. To perfect
the transfer, the assignor shall record the transfer in
the chain of title for the site and provide written notice
to the Director of the Illinois Department of Revenue of
the assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.


(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Program, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Program Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Program Act;


(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in
which no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(p) Pass-through entity tax.
(1) For taxable years ending on or after December 31,
2021 and beginning prior to January 1, 2026, a partnership
(other than a publicly traded partnership under Section
7704 of the Internal Revenue Code) or Subchapter S
corporation may elect to apply the provisions of this
subsection. A separate election shall be made for each
taxable year. Such election shall be made at such time,


and in such form and manner as prescribed by the
Department, and, once made, is irrevocable.
(2) Entity-level tax. A partnership or Subchapter S
corporation electing to apply the provisions of this
subsection shall be subject to a tax for the privilege of
earning or receiving income in this State in an amount
equal to 4.95% of the taxpayer's net income for the
taxable year.
(3) Net income defined.
(A) In general. For purposes of paragraph (2), the
term net income has the same meaning as defined in
Section 202 of this Act, except that, for tax years
ending on or after December 31, 2023, a deduction
shall be allowed in computing base income for
distributions to a retired partner to the extent that
the partner's distributions are exempt from tax under
Section 203(a)(2)(F) of this Act. In addition, the
following modifications shall not apply:
(i) the standard exemption allowed under
Section 204;
(ii) the deduction for net losses allowed
under Section 207;
(iii) in the case of an S corporation, the
modification under Section 203(b)(2)(S); and
(iv) in the case of a partnership, the
modifications under Section 203(d)(2)(H) and


Section 203(d)(2)(I).
(B) Special rule for tiered partnerships. If a
taxpayer making the election under paragraph (1) is a
partner of another taxpayer making the election under
paragraph (1), net income shall be computed as
provided in subparagraph (A), except that the taxpayer
shall subtract its distributive share of the net
income of the electing partnership (including its
distributive share of the net income of the electing
partnership derived as a distributive share from
electing partnerships in which it is a partner).
(4) Credit for entity level tax. Each partner or
shareholder of a taxpayer making the election under this
Section shall be allowed a credit against the tax imposed
under subsections (a) and (b) of Section 201 of this Act
for the taxable year of the partnership or Subchapter S
corporation for which an election is in effect ending
within or with the taxable year of the partner or
shareholder in an amount equal to 4.95% times the partner
or shareholder's distributive share of the net income of
the electing partnership or Subchapter S corporation, but
not to exceed the partner's or shareholder's share of the
tax imposed under paragraph (1) which is actually paid by
the partnership or Subchapter S corporation. If the
taxpayer is a partnership or Subchapter S corporation that
is itself a partner of a partnership making the election


under paragraph (1), the credit under this paragraph shall
be allowed to the taxpayer's partners or shareholders (or
if the partner is a partnership or Subchapter S
corporation then its partners or shareholders) in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. If the
amount of the credit allowed under this paragraph exceeds
the partner's or shareholder's liability for tax imposed
under subsections (a) and (b) of Section 201 of this Act
for the taxable year, such excess shall be treated as an
overpayment for purposes of Section 909 of this Act.
(5) Nonresidents. A nonresident individual who is a
partner or shareholder of a partnership or Subchapter S
corporation for a taxable year for which an election is in
effect under paragraph (1) shall not be required to file
an income tax return under this Act for such taxable year
if the only source of net income of the individual (or the
individual and the individual's spouse in the case of a
joint return) is from an entity making the election under
paragraph (1) and the credit allowed to the partner or
shareholder under paragraph (4) equals or exceeds the
individual's liability for the tax imposed under
subsections (a) and (b) of Section 201 of this Act for the
taxable year.
(6) Liability for tax. Except as provided in this


paragraph, a partnership or Subchapter S making the
election under paragraph (1) is liable for the
entity-level tax imposed under paragraph (2). If the
electing partnership or corporation fails to pay the full
amount of tax deemed assessed under paragraph (2), the
partners or shareholders shall be liable to pay the tax
assessed (including penalties and interest). Each partner
or shareholder shall be liable for the unpaid assessment
based on the ratio of the partner's or shareholder's share
of the net income of the partnership over the total net
income of the partnership. If the partnership or
Subchapter S corporation fails to pay the tax assessed
(including penalties and interest) and thereafter an
amount of such tax is paid by the partners or
shareholders, such amount shall not be collected from the
partnership or corporation.
(7) Foreign tax. For purposes of the credit allowed
under Section 601(b)(3) of this Act, tax paid by a
partnership or Subchapter S corporation to another state
which, as determined by the Department, is substantially
similar to the tax imposed under this subsection, shall be
considered tax paid by the partner or shareholder to the
extent that the partner's or shareholder's share of the
income of the partnership or Subchapter S corporation
allocated and apportioned to such other state bears to the
total income of the partnership or Subchapter S


corporation allocated or apportioned to such other state.
(8) Suspension of withholding. The provisions of
Section 709.5 of this Act shall not apply to a partnership
or Subchapter S corporation for the taxable year for which
an election under paragraph (1) is in effect.
(9) Requirement to pay estimated tax. For each taxable
year for which an election under paragraph (1) is in
effect, a partnership or Subchapter S corporation is
required to pay estimated tax for such taxable year under
Sections 803 and 804 of this Act if the amount payable as
estimated tax can reasonably be expected to exceed $500.
(10) The provisions of this subsection shall apply
only with respect to taxable years for which the
limitation on individual deductions applies under Section
164(b)(6) of the Internal Revenue Code.
(Source: P.A. 102-558, eff. 8-20-21; 102-658, eff. 8-27-21;
103-9, eff. 6-7-23; 103-396, eff. 1-1-24; revised 12-12-23.)
(35 ILCS 5/241 new)
Sec. 241. Credit for quantum computing campuses.
(a) A taxpayer who has been awarded a credit by the
Department of Commerce and Economic Opportunity under Section
605-115 of the Department of Commerce and Economic Opportunity
Law of the Civil Administrative Code of Illinois is entitled
to a credit against the taxes imposed under subsections (a)
and (b) of Section 201 of this Act. The amount of the credit


shall be 20% of the wages paid by the taxpayer during the
taxable year to a full-time or part-time employee of a
construction contractor employed in the construction of an
eligible facility located on a quantum computing campus
designated under Section 605-115 of the Department of Commerce
and Economic Opportunity Law of the Civil Administrative Code
of Illinois.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(c) A person claiming the credit allowed under this
Section shall attach to its Illinois income tax return for the
taxable year for which the credit is allowed a copy of the tax
credit certificate issued by the Department of Commerce and
Economic Opportunity.
(d) Partners and shareholders of Subchapter S corporations
are entitled to a credit under this Section as provided in
Section 251.
(e) As used in this Section, "eligible facility" means a
building used primarily to house one or more of the following:


a quantum computer operator; a research facility; a data
center; a manufacturer and assembler of quantum computers and
component parts; a cryogenic or refrigeration facility; or any
other facility determined, by industry and academic leaders,
to be fundamental to the research and development of quantum
computing for practical solutions.
(f) This Section is exempt from the provisions of Section
250.
Section 23. The Illinois Income Tax Act is amended by
changing Section 213 as follows:
(35 ILCS 5/213)
Sec. 213. Film production services credit.
(a) For tax years beginning on or after January 1, 2004, a
taxpayer who has been awarded a tax credit under the Film
Production Services Tax Credit Act or under the Film
Production Services Tax Credit Act of 2008 is entitled to a
credit against the taxes imposed under subsections (a) and (b)
of Section 201 of this Act in an amount determined by the
Department of Commerce and Economic Opportunity under those
Acts. If the taxpayer is a partnership or Subchapter S
corporation, the credit is allowed to the partners or
shareholders in accordance with the determination of income
and distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code.


(b) Beginning July 1, 2024, taxpayers who have been
awarded a tax credit under the Film Production Services Tax
Credit Act of 2008 shall pay to the Department of Commerce and
Economic Opportunity, after determination of the tax credit
amount but prior to the issuance of a tax credit certificate
pursuant to Section 35 of the Film Production Services Tax
Credit Act of 2008, a fee equal to 2.5% of the credit amount
awarded to the taxpayer under the Film Production Services Tax
Credit Act of 2008 that is attributable to wages paid to
nonresidents, as described in Section 10 of the Film
Production Services Tax Credit Act of 2008, and an additional
fee equal to 0.25% of the amount generated by subtracting the
credit amount awarded to the taxpayer under the Film
Production Services Tax Credit Act of 2008 that is
attributable to wages paid to nonresidents from the total
credit amount awarded to the taxpayer under that Act. All fees
collected under this subsection shall be deposited into the
Illinois Production Workforce Development Fund. No tax credit
certificate shall be issued by the Department of Commerce and
Economic Opportunity until the total fees owed according to
this subsection have been received by the Department of
Commerce and Economic Opportunity.
(c) A transfer of this credit may be made by the taxpayer
earning the credit within one year after the credit is awarded
in accordance with rules adopted by the Department of Commerce
and Economic Opportunity. Beginning July 1, 2023 and through


June 30, 2024, if a credit is transferred under this Section by
the taxpayer, then the transferor taxpayer shall pay to the
Department of Commerce and Economic Opportunity, upon
notification of a transfer, a fee equal to 2.5% of the
transferred credit amount eligible for nonresident wages, as
described in Section 10 of the Film Production Services Tax
Credit Act of 2008, and an additional fee of 0.25% of the total
amount of the transferred credit that is not calculated on
nonresident wages, which shall be deposited into the Illinois
Production Workforce Development Fund.
(d) The Department, in cooperation with the Department of
Commerce and Economic Opportunity, must prescribe rules to
enforce and administer the provisions of this Section. This
Section is exempt from the provisions of Section 250 of this
Act.
(e) The credit may not be carried back. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one tax year
that are available to offset a liability, the earlier credit
shall be applied first. In no event shall a credit under this
Section reduce the taxpayer's liability to less than zero.
(Source: P.A. 102-700, eff. 4-19-22.)


Section 25. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Sections 5-5, 5-15,
5-20, 5-35, 5-45, and 5-56 as follows:
(35 ILCS 10/5-5)
Sec. 5-5. Definitions. As used in this Act:
"Agreement" means the Agreement between a Taxpayer and the
Department under the provisions of Section 5-50 of this Act.
"Applicant" means a Taxpayer that is operating a business
located or that the Taxpayer plans to locate within the State
of Illinois and that is engaged in interstate or intrastate
commerce for the purpose of manufacturing, processing,
assembling, warehousing, or distributing products, conducting
research and development, providing tourism services, or
providing services in interstate commerce, office industries,
or agricultural processing, but excluding retail, retail food,
health, or professional services, and services delivered to
business customer sites. "Applicant" does not include a
Taxpayer who closes or substantially reduces an operation at
one location in the State and relocates substantially the same
operation to another location in the State. This does not
prohibit a Taxpayer from expanding its operations at another
location in the State, provided that existing operations of a
similar nature located within the State are not closed or
substantially reduced. This also does not prohibit a Taxpayer
from moving its operations from one location in the State to


another location in the State for the purpose of expanding the
operation provided that the Department determines that
expansion cannot reasonably be accommodated within the
municipality in which the business is located, or in the case
of a business located in an incorporated area of the county,
within the county in which the business is located, after
conferring with the chief elected official of the municipality
or county and taking into consideration any evidence offered
by the municipality or county regarding the ability to
accommodate expansion within the municipality or county.
"Credit" means the amount agreed to between the Department
and Applicant under this Act, but not to exceed the lesser of:
(1) the sum of (i) 50% of the Incremental Income Tax
attributable to New Employees at the Applicant's project and
(ii) 10% of the training costs of New Employees; or (2) 100% of
the Incremental Income Tax attributable to New Employees at
the Applicant's project. However, if the project is located in
an underserved area, then the amount of the Credit may not
exceed the lesser of: (1) the sum of (i) 75% of the Incremental
Income Tax attributable to New Employees at the Applicant's
project and (ii) 10% of the training costs of New Employees; or
(2) 100% of the Incremental Income Tax attributable to New
Employees at the Applicant's project. If the project is not
located in an underserved area and the Applicant agrees to
hire the required number of New Employees, then the maximum
amount of the Credit for that Applicant may be increased by an


amount not to exceed 25% of the Incremental Income Tax
attributable to retained employees at the Applicant's project.
If the project is located in an underserved area and the
Applicant agrees to hire the required number of New Employees,
then the maximum amount of the credit for that Applicant may be
increased by an amount not to exceed 50% of the Incremental
Income Tax attributable to retained employees at the
Applicant's project.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Full-time Employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the Applicant for consideration for at least 35
hours each week or who renders any other standard of service
generally accepted by industry custom or practice as full-time
employment to Applicant. The employee need not be physically
present at the EDGE project location during the entire
full-time workweek; however, the agreement shall set forth a
minimum number of hours during which the employee is scheduled
to be present at the EDGE project location.


"Incremental Income Tax" means the total amount withheld
during the taxable year from the compensation of New Employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an Agreement.
"New Construction EDGE Agreement" means the Agreement
between a Taxpayer and the Department under the provisions of
Section 5-51 of this Act.
"New Construction EDGE Credit" means an amount agreed to
between the Department and the Applicant under this Act as
part of a New Construction EDGE Agreement that does not exceed
50% of the Incremental Income Tax attributable to New
Construction EDGE Employees at the Applicant's project;
however, if the New Construction EDGE Project is located in an
underserved area, then the amount of the New Construction EDGE
Credit may not exceed 75% of the Incremental Income Tax
attributable to New Construction EDGE Employees at the
Applicant's New Construction EDGE Project.
"New Construction EDGE Employee" means a laborer or worker
who is employed by a an Illinois contractor or subcontractor
in the actual construction work on the site of a New
Construction EDGE Project, pursuant to a New Construction EDGE
Agreement.
"New Construction EDGE Incremental Income Tax" means the
total amount withheld during the taxable year from the
compensation of New Construction EDGE Employees.


"New Construction EDGE Project" means the building of a
Taxpayer's structure or building, or making improvements of
any kind to real property. "New Construction EDGE Project"
does not include the routine operation, routine repair, or
routine maintenance of existing structures, buildings, or real
property.
"New Employee" means:
(a) A Full-time Employee first employed by a Taxpayer
at in the project, or assigned to the project as their
primary work location, that is the subject of an Agreement
and who is hired after the Taxpayer enters into the tax
credit Agreement.
(b) The term "New Employee" does not include:
(1) an employee of the Taxpayer who performs a job
that was previously performed by another employee, if
that job existed for at least 6 months before hiring
the employee;
(2) an employee of the Taxpayer who was previously
employed in Illinois by a Related Member of the
Taxpayer and whose employment was shifted to the
Taxpayer after the Taxpayer entered into the tax
credit Agreement; or
(3) a child, grandchild, parent, or spouse, other
than a spouse who is legally separated from the
individual, of any individual who has a direct or an
indirect ownership interest of at least 5% in the


profits, capital, or value of the Taxpayer.
(c) Notwithstanding paragraph (1) of subsection (b),
an employee may be considered a New Employee under the
Agreement if the employee performs a job that was
previously performed by an employee who was:
(1) treated under the Agreement as a New Employee;
and
(2) promoted by the Taxpayer to another job.
(d) Notwithstanding subsection (a), the Department may
award Credit to an Applicant with respect to an employee
hired prior to the date of the Agreement if:
(1) the Applicant is in receipt of a letter from
the Department stating an intent to enter into a
credit Agreement;
(2) the letter described in paragraph (1) is
issued by the Department not later than 15 days after
the effective date of this Act; and
(3) the employee was hired after the date the
letter described in paragraph (1) was issued.
"Noncompliance Date" means, in the case of a Taxpayer that
is not complying with the requirements of the Agreement or the
provisions of this Act, the day following the last date upon
which the Taxpayer was in compliance with the requirements of
the Agreement and the provisions of this Act, as determined by
the Director, pursuant to Section 5-65.
"Pass Through Entity" means an entity that is exempt from


the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Professional Employer Organization" (PEO) means an
employee leasing company, as defined in Section 206.1(A)(2) of
the Illinois Unemployment Insurance Act.
"Related Member" means a person that, with respect to the
Taxpayer during any portion of the taxable year, is any one of
the following:
(1) An individual stockholder, if the stockholder and
the members of the stockholder's family (as defined in
Section 318 of the Internal Revenue Code) own directly,
indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the Taxpayer's
outstanding stock.
(2) A partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
Taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the Taxpayer
owns directly, indirectly, beneficially, or constructively


at least 50% of the value of the corporation's outstanding
stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the Taxpayer.
(5) A person to or from whom there is attribution of
stock ownership in accordance with Section 1563(e) of the
Internal Revenue Code, except, for purposes of determining
whether a person is a Related Member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Startup taxpayer" means, for Agreements that are executed
before the effective date of the changes made to this Section
by this amendatory Act of the 103rd General Assembly, a
corporation, partnership, or other entity incorporated or
organized no more than 5 years before the filing of an
application for an Agreement that has never had any Illinois
income tax liability, excluding any Illinois income tax
liability of a Related Member which shall not be attributed to
the startup taxpayer. "Startup taxpayer" means, for Agreements
that are executed on or after the effective date of this


amendatory Act of the 103rd General Assembly, a corporation,
partnership, or other entity that is incorporated or organized
no more than 10 years before the filing of an application for
an Agreement and that has never had any Illinois income tax
liability. For the purpose of determining whether the taxpayer
has had any Illinois income tax liability, the Illinois income
tax liability of a Related Member shall not be attributed to
the startup taxpayer.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has any Illinois Income Tax liability.
Until July 1, 2022, "underserved area" means a geographic
area that meets one or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area
participate in the federal free lunch program according to
reported statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.


On and after July 1, 2022, "underserved area" means a
geographic area that meets one or more of the following
conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey;
(2) 35% or more of the families with children in the
area are living below 130% of the poverty line, according
to the latest American Community Survey;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(Source: P.A. 102-330, eff. 1-1-22; 102-700, eff. 4-19-22;
102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
(35 ILCS 10/5-15)
Sec. 5-15. Tax Credit Awards. Subject to the conditions
set forth in this Act, a Taxpayer is entitled to a Credit
against or, as described in subsection (g) of this Section, a
payment towards taxes imposed pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act that may be


imposed on the Taxpayer for a taxable year beginning on or
after January 1, 1999, if the Taxpayer is awarded a Credit by
the Department under this Act for that taxable year.
(a) The Department shall make Credit awards under this Act
to foster job creation and retention in Illinois.
(b) A person that proposes a project to create new jobs in
Illinois must enter into an Agreement with the Department for
the Credit under this Act.
(c) The Credit shall be claimed for the taxable years
specified in the Agreement.
(d) The Credit shall not exceed the Incremental Income Tax
attributable to the project that is the subject of the
Agreement.
(e) Nothing herein shall prohibit a Tax Credit Award to an
Applicant that uses a PEO if all other award criteria are
satisfied.
(f) In lieu of the Credit allowed under this Act against
the taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act for any taxable year
ending on or after December 31, 2009, for Taxpayers that
entered into Agreements prior to January 1, 2015 and otherwise
meet the criteria set forth in this subsection (f), the
Taxpayer may elect to claim the Credit against its obligation
to pay over withholding under Section 704A of the Illinois
Income Tax Act.
(1) The election under this subsection (f) may be made


only by a Taxpayer that (i) is primarily engaged in one of
the following business activities: water purification and
treatment, motor vehicle metal stamping, automobile
manufacturing, automobile and light duty motor vehicle
manufacturing, motor vehicle manufacturing, light truck
and utility vehicle manufacturing, heavy duty truck
manufacturing, motor vehicle body manufacturing, cable
television infrastructure design or manufacturing, or
wireless telecommunication or computing terminal device
design or manufacturing for use on public networks and
(ii) meets the following criteria:
(A) the Taxpayer (i) had an Illinois net loss or an
Illinois net loss deduction under Section 207 of the
Illinois Income Tax Act for the taxable year in which
the Credit is awarded, (ii) employed a minimum of
1,000 full-time employees in this State during the
taxable year in which the Credit is awarded, (iii) has
an Agreement under this Act on December 14, 2009 (the
effective date of Public Act 96-834), and (iv) is in
compliance with all provisions of that Agreement;
(B) the Taxpayer (i) had an Illinois net loss or an
Illinois net loss deduction under Section 207 of the
Illinois Income Tax Act for the taxable year in which
the Credit is awarded, (ii) employed a minimum of
1,000 full-time employees in this State during the
taxable year in which the Credit is awarded, and (iii)


has applied for an Agreement within 365 days after
December 14, 2009 (the effective date of Public Act
96-834);
(C) the Taxpayer (i) had an Illinois net operating
loss carryforward under Section 207 of the Illinois
Income Tax Act in a taxable year ending during
calendar year 2008, (ii) has applied for an Agreement
within 150 days after the effective date of this
amendatory Act of the 96th General Assembly, (iii)
creates at least 400 new jobs in Illinois, (iv)
retains at least 2,000 jobs in Illinois that would
have been at risk of relocation out of Illinois over a
10-year period, and (v) makes a capital investment of
at least $75,000,000;
(D) the Taxpayer (i) had an Illinois net operating
loss carryforward under Section 207 of the Illinois
Income Tax Act in a taxable year ending during
calendar year 2009, (ii) has applied for an Agreement
within 150 days after the effective date of this
amendatory Act of the 96th General Assembly, (iii)
creates at least 150 new jobs, (iv) retains at least
1,000 jobs in Illinois that would have been at risk of
relocation out of Illinois over a 10-year period, and
(v) makes a capital investment of at least
$57,000,000; or
(E) the Taxpayer (i) employed at least 2,500


full-time employees in the State during the year in
which the Credit is awarded, (ii) commits to make at
least $500,000,000 in combined capital improvements
and project costs under the Agreement, (iii) applies
for an Agreement between January 1, 2011 and June 30,
2011, (iv) executes an Agreement for the Credit during
calendar year 2011, and (v) was incorporated no more
than 5 years before the filing of an application for an
Agreement.
(1.5) The election under this subsection (f) may also
be made by a Taxpayer for any Credit awarded pursuant to an
agreement that was executed between January 1, 2011 and
June 30, 2011, if the Taxpayer (i) is primarily engaged in
the manufacture of inner tubes or tires, or both, from
natural and synthetic rubber, (ii) employs a minimum of
2,400 full-time employees in Illinois at the time of
application, (iii) creates at least 350 full-time jobs and
retains at least 250 full-time jobs in Illinois that would
have been at risk of being created or retained outside of
Illinois, and (iv) makes a capital investment of at least
$200,000,000 at the project location.
(1.6) The election under this subsection (f) may also
be made by a Taxpayer for any Credit awarded pursuant to an
agreement that was executed within 150 days after the
effective date of this amendatory Act of the 97th General
Assembly, if the Taxpayer (i) is primarily engaged in the


operation of a discount department store, (ii) maintains
its corporate headquarters in Illinois, (iii) employs a
minimum of 4,250 full-time employees at its corporate
headquarters in Illinois at the time of application, (iv)
retains at least 4,250 full-time jobs in Illinois that
would have been at risk of being relocated outside of
Illinois, (v) had a minimum of $40,000,000,000 in total
revenue in 2010, and (vi) makes a capital investment of at
least $300,000,000 at the project location.
(1.7) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by a
Taxpayer for any Credit awarded pursuant to an agreement
that was executed or applied for on or after July 1, 2011
and on or before March 31, 2012, if the Taxpayer is
primarily engaged in the manufacture of original and
aftermarket filtration parts and products for automobiles,
motor vehicles, light duty motor vehicles, light trucks
and utility vehicles, and heavy duty trucks, (ii) employs
a minimum of 1,000 full-time employees in Illinois at the
time of application, (iii) creates at least 250 full-time
jobs in Illinois, (iv) relocates its corporate
headquarters to Illinois from another state, and (v) makes
a capital investment of at least $4,000,000 at the project
location.
(1.8) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by a


startup taxpayer for any Credit awarded pursuant to an
Agreement that was executed on or after the effective date
of this amendatory Act of the 102nd General Assembly. Any
such election under this paragraph (1.8) shall be
effective unless and until such startup taxpayer has any
Illinois income tax liability. This election under this
paragraph (1.8) shall automatically terminate when the
startup taxpayer has any Illinois income tax liability at
the end of any taxable year during the term of the
Agreement. Thereafter, the startup taxpayer may receive a
Credit, taking into account any benefits previously
enjoyed or received by way of the election under this
paragraph (1.8), so long as the startup taxpayer remains
in compliance with the terms and conditions of the
Agreement.
(1.9) Notwithstanding any other provision of law, the
election under this subsection (f) may also be made by an
applicant qualified under paragraph (1.7) of subsection
(b) of Section 5-20 for any Credit awarded pursuant to an
Agreement that was executed on or after the effective date
of this amendatory Act of the 103rd General Assembly. Any
such election under this paragraph (1.9) shall be
effective unless and until such taxpayer has any Illinois
income tax liability. This election under this paragraph
(1.9) shall automatically terminate when the taxpayer has
any Illinois income tax liability at the end of any


taxable year during the term of the Agreement. Thereafter,
the startup taxpayer may receive a Credit, taking into
account any benefits previously enjoyed or received by way
of the election under this paragraph (1.9), so long as the
startup taxpayer remains in compliance with the terms and
conditions of the Agreement.
(2) An election under this subsection shall allow the
credit to be taken against payments otherwise due under
Section 704A of the Illinois Income Tax Act during the
first calendar quarter beginning after the end of the
taxable quarter in which the credit is awarded under this
Act.
(3) The election shall be made in the form and manner
required by the Illinois Department of Revenue and, once
made, shall be irrevocable.
(4) If a Taxpayer who meets the requirements of
subparagraph (A) of paragraph (1) of this subsection (f)
elects to claim the Credit against its withholdings as
provided in this subsection (f), then, on and after the
date of the election, the terms of the Agreement between
the Taxpayer and the Department may not be further amended
during the term of the Agreement.
(g) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat
some or all of the credit awarded pursuant to this Act as a tax
payment for purposes of the Illinois Income Tax Act. The term


"tax payment" means a payment as described in Article 6 or
Article 8 of the Illinois Income Tax Act or a composite payment
made by a pass-through entity on behalf of any of its
shareholders or partners to satisfy such shareholders' or
partners' taxes imposed pursuant to subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act. In no event shall
the amount of the award credited pursuant to this Act exceed
the Illinois income tax liability of the pass-through entity
or its shareholders or partners for the taxable year.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
(35 ILCS 10/5-20)
Sec. 5-20. Application for a project to create and retain
new jobs.
(a) Any Taxpayer proposing a project located or planned to
be located in Illinois may request consideration for
designation of its project, by formal written letter of
request or by formal application to the Department, in which
the Applicant states its intent to make at least a specified
level of investment and intends to hire or retain a specified
number of full-time employees at a designated location in
Illinois. As circumstances require, the Department may require
a formal application from an Applicant and a formal letter of
request for assistance.
(b) In order to qualify for Credits under this Act, an
Applicant's project must:


(1) if the Applicant has more than 100 employees,
involve an investment of at least $2,500,000 in capital
improvements to be placed in service within the State as a
direct result of the project; if the Applicant has 100 or
fewer employees, then there is no capital investment
requirement;
(1.5) if the Applicant has more than 100 employees,
employ a number of new employees in the State equal to the
lesser of (A) 10% of the number of full-time employees
employed by the applicant world-wide on the date the
application is filed with the Department or (B) 50 New
Employees; and, if the Applicant has 100 or fewer
employees, employ a number of new employees in the State
equal to the lesser of (A) 5% of the number of full-time
employees employed by the applicant world-wide on the date
the application is filed with the Department or (B) 50 New
Employees;
(1.6) if the Applicant is a startup taxpayer, the
employees employed by Related Members shall not be
attributed to the Applicant for purposes of determining
the capital investment or job creation requirements under
this subsection (b);
(1.7) if the agreement is entered into on or after the
effective date of this amendatory Act of the 103rd General
Assembly and the Applicant's project:
(A) makes an investment of at least $50,000,000 in


capital improvements at the project site;
(B) is placed in service after approval of the
application; and
(C) creates jobs for at least 100 new full-time
employees.
(2) (blank);
(3) (blank); and
(4) include an annual sexual harassment policy report
as provided under Section 5-58.
(c) After receipt of an application, the Department may
enter into an Agreement with the Applicant if the application
is accepted in accordance with Section 5-25.
(Source: P.A. 101-81, eff. 7-12-19; 102-700, eff. 4-19-22.)
(35 ILCS 10/5-35)
Sec. 5-35. Relocation of jobs in Illinois. A taxpayer is
not entitled to claim the credit provided by this Act with
respect to any jobs that the taxpayer relocates from one site
in Illinois unless the taxpayer has agreed to hire the minimum
number of new employees and the Department has determined that
the expansion cannot reasonably be accommodated within the
municipality in which the business is located to another site
in Illinois. A taxpayer with respect to a qualifying project
certified under the Corporate Headquarters Relocation Act,
however, is not subject to the requirements of this Section
but is nevertheless considered an applicant for purposes of


this Act. Moreover, any full-time employee of an eligible
business relocated to Illinois in connection with that
qualifying project is deemed to be a new employee for purposes
of this Act. Determinations under this Section shall be made
by the Department.
(Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.)
(35 ILCS 10/5-45)
Sec. 5-45. Amount and duration of the credit.
(a) The Department shall determine the amount and duration
of the credit awarded under this Act. The duration of the
credit may not exceed 10 taxable years for projects qualified
under paragraph (1), (1.5), or (1.6) of subsection (b) of
Section 5-20 or 15 taxable years for projects qualified under
paragraph (1.7) of subsection (b) of Section 5-20. The credit
may be stated as a percentage of the Incremental Income Tax
attributable to the applicant's project and may include a
fixed dollar limitation.
(b) Notwithstanding subsection (a), and except as the
credit may be applied in a carryover year pursuant to Section
211(4) of the Illinois Income Tax Act, the credit may be
applied against the State income tax liability in more than 10
taxable years but not in more than 15 taxable years for an
eligible business that (i) qualifies under this Act and the
Corporate Headquarters Relocation Act and has in fact
undertaken a qualifying project within the time frame


specified by the Department of Commerce and Economic
Opportunity under that Act, and (ii) applies against its State
income tax liability, during the entire 15-year period, no
more than 60% of the maximum credit per year that would
otherwise be available under this Act.
(c) Nothing in this Section shall prevent the Department,
in consultation with the Department of Revenue, from adopting
rules to extend the sunset of any earned, existing, and unused
tax credit or credits a taxpayer may be in possession of, as
provided for in Section 605-1070 of the Department of Commerce
and Economic Opportunity Law of the Civil Administrative Code
of Illinois, notwithstanding the carry-forward provisions
pursuant to paragraph (4) of Section 211 of the Illinois
Income Tax Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)
(35 ILCS 10/5-56)
Sec. 5-56. Annual report. Certified payroll. Annually,
until construction is completed, a company seeking New
Construction EDGE Credits shall submit a report that, at a
minimum, describes the projected project scope, timeline, and
anticipated budget. Once the project has commenced, the annual
report shall include actual data for the prior year as well as
projections for each additional year through completion of the
project. The Department shall issue detailed reporting
guidelines prescribing the requirements of construction


related reports. In order to receive credit for construction
expenses, the company must provide the Department with
evidence that a certified third-party executed an Agreed-Upon
Procedure (AUP) verifying the construction expenses or accept
the standard construction wage expense estimated by the
Department.
Upon review of the final project scope, timeline, budget,
and AUP, the Department shall issue a tax credit certificate
reflecting a percentage of the total construction job wages
paid throughout the completion of the project.
Each contractor and subcontractor that is engaged in and is
executing a New Construction EDGE Project for a Taxpayer,
pursuant to a New Construction EDGE Agreement shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for a New Construction EDGE Project pursuant
to a New Construction EDGE Agreement, records of all
laborers and other workers employed by the contractor or
subcontractor on the project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;


(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed
for only those calendar months during which construction
on a New Construction EDGE Project has occurred; the
certified payroll shall consist of a complete copy of the
records identified in paragraph (1), but may exclude the
starting and ending times of work each day; the certified
payroll shall be accompanied by a statement signed by the
contractor or subcontractor or an officer, employee, or
agent of the contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that


filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this Section,
and any officer, employee, or agent of such contractor or
subcontractor whose duty as an officer, employee, or agent it
is to file a certified payroll under this Section, who
willfully fails to file such a certified payroll on or before
the date such certified payroll is required to be filed and any
person who willfully files a false certified payroll that is
false as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this Section on or after
June 5, 2019 (the effective date of Public Act 101-9) for a
period of 5 years from the date of the last payment for work on
a contract or subcontract for the project.
The records submitted in accordance with this Section
shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall accept any reasonable
submissions by the contractor that meet the requirements of


this Section and shall share the information with the
Department in order to comply with the awarding of New
Construction EDGE Credits. A contractor, subcontractor, or
public body may retain records required under this Section in
paper or electronic format.
Upon 7 business days' notice, the taxpayer contractor and
each subcontractor shall make available for inspection and
copying at a location within this State during reasonable
hours, the records identified in paragraph (1) of this Section
to the taxpayer in charge of the project, its officers and
agents, the Director of Labor and his or her deputies and
agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
Section 27. The Film Production Services Tax Credit Act of
2008 is amended by changing Sections 10 and 46 as follows:
(35 ILCS 16/10)
Sec. 10. Definitions.  As used in this Act:
"Accredited production" means: (i) for productions
commencing before May 1, 2006, a film, video, or television
production that has been certified by the Department in which
the aggregate Illinois labor expenditures included in the cost
of the production, in the period that ends 12 months after the
time principal filming or taping of the production began,


exceed $100,000 for productions of 30 minutes or longer, or
$50,000 for productions of less than 30 minutes; and (ii) for
productions commencing on or after May 1, 2006, a film, video,
or television production that has been certified by the
Department in which the Illinois production spending included
in the cost of production in the period that ends 12 months
after the time principal filming or taping of the production
began exceeds $100,000 for productions of 30 minutes or longer
or exceeds $50,000 for productions of less than 30 minutes.
"Accredited production" does not include a production that:
(1) is news, current events, or public programming, or
a program that includes weather or market reports;
(2) is a talk show produced for local or regional
markets;
(3) (blank); is a production in respect of a game,
questionnaire, or contest;
(4) is a sports event or activity;
(5) is a gala presentation or awards show;
(6) is a finished production that solicits funds;
(7) is a production produced by a film production
company if records, as required by 18 U.S.C. 2257, are to
be maintained by that film production company with respect
to any performer portrayed in that single media or
multimedia program; or
(8) is a production produced primarily for industrial,
corporate, or institutional purposes.


"Accredited animated production" means an accredited
production in which movement and characters' performances are
created using a frame-by-frame technique and a significant
number of major characters are animated. Motion capture by
itself is not an animation technique.
"Accredited production certificate" means a certificate
issued by the Department certifying that the production is an
accredited production that meets the guidelines of this Act.
"Applicant" means a taxpayer that is a film production
company that is operating or has operated an accredited
production located within the State of Illinois and that (i)
owns the copyright in the accredited production throughout the
Illinois production period or (ii) has contracted directly
with the owner of the copyright in the accredited production
or a person acting on behalf of the owner to provide services
for the production, where the owner of the copyright is not an
eligible production corporation.
"Credit" means:
(1) for an accredited production approved by the
Department on or before January 1, 2005 and commencing
before May 1, 2006, the amount equal to 25% of the Illinois
labor expenditure approved by the Department. The
applicant is deemed to have paid, on its balance due day
for the year, an amount equal to 25% of its qualified
Illinois labor expenditure for the tax year. For Illinois
labor expenditures generated by the employment of


residents of geographic areas of high poverty or high
unemployment, as determined by the Department, in an
accredited production commencing before May 1, 2006 and
approved by the Department after January 1, 2005, the
applicant shall receive an enhanced credit of 10% in
addition to the 25% credit; and
(2) for an accredited production commencing on or
after May 1, 2006 and before January 1, 2009, the amount
equal to:
(i) 20% of the Illinois production spending for
the taxable year; plus
(ii) 15% of the Illinois labor expenditures
generated by the employment of residents of geographic
areas of high poverty or high unemployment, as
determined by the Department; and
(3) for an accredited production commencing on or
after January 1, 2009, the amount equal to:
(i) 30% of the Illinois production spending for
the taxable year; plus
(ii) 15% of the Illinois labor expenditures
generated by the employment of residents of geographic
areas of high poverty or high unemployment, as
determined by the Department.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic


Opportunity.
"Illinois labor expenditure" means salary or wages paid to
employees of the applicant for services on the accredited
production.
To qualify as an Illinois labor expenditure, the
expenditure must be:
(1) Reasonable in the circumstances.
(2) Included in the federal income tax basis of the
property.
(3) Incurred by the applicant for services on or after
January 1, 2004.
(4) Incurred for the production stages of the
accredited production, from the final script stage to the
end of the post-production stage.
(5) Limited to the first $25,000 of wages paid or
incurred to each employee of a production commencing
before May 1, 2006 and the first $100,000 of wages paid or
incurred to each employee of a production commencing on or
after May 1, 2006 and prior to July 1, 2022. For
productions commencing on or after July 1, 2022, limited
to the first $500,000 of wages paid or incurred to each
eligible nonresident or resident employee of a production
company or loan out company that provides in-State
services to a production, whether those wages are paid or
incurred by the production company, loan out company, or
both, subject to withholding payments provided for in


Article 7 of the Illinois Income Tax Act. For purposes of
calculating Illinois labor expenditures for a television
series, the eligible nonresident wage limitations provided
under this subparagraph are applied to the entire season.
For the purpose of this paragraph (5), an eligible
nonresident is a nonresident whose wages qualify as an
Illinois labor expenditure under the provisions of
paragraph (9) that apply to that production.
(6) For a production commencing before May 1, 2006,
exclusive of the salary or wages paid to or incurred for
the 2 highest paid employees of the production.
(7) Directly attributable to the accredited
production.
(8) (Blank).
(9) Prior to July 1, 2022, paid to persons resident in
Illinois at the time the payments were made. For a
production commencing on or after July 1, 2022, paid to
persons resident in Illinois and nonresidents at the time
the payments were made.
For purposes of this subparagraph, if the production
is accredited by the Department before the effective date
of this amendatory Act of the 102nd General Assembly, only
wages paid to nonresidents working in the following
positions shall be considered Illinois labor expenditures:
Writer, Director, Director of Photography, Production
Designer, Costume Designer, Production Accountant, VFX


Supervisor, Editor, Composer, and Actor, subject to the
limitations set forth under this subparagraph. For an
accredited Illinois production spending of $25,000,000 or
less, no more than 2 nonresident actors' wages shall
qualify as an Illinois labor expenditure. For an
accredited production with Illinois production spending of
more than $25,000,000, no more than 4 nonresident actor's
wages shall qualify as Illinois labor expenditures.
For purposes of this subparagraph, if the production
is accredited by the Department on or after the effective
date of this amendatory Act of the 102nd General Assembly,
wages paid to nonresidents shall qualify as Illinois labor
expenditures only under the following conditions:
(A) the nonresident must be employed in a
qualified position;
(B) for each of those accredited productions, the
wages of not more than 9 nonresidents who are employed
in a qualified position other than Actor shall qualify
as Illinois labor expenditures;
(C) for an accredited production with Illinois
production spending of $25,000,000 or less, no more
than 2 nonresident actors' wages shall qualify as
Illinois labor expenditures; and
(D) for an accredited production with Illinois
production spending of more than $25,000,000, no more
than 4 nonresident actors' wages shall qualify as


Illinois labor expenditures.
As used in this paragraph (9), "qualified position"
means: Writer, Director, Director of Photography,
Production Designer, Costume Designer, Production
Accountant, VFX Supervisor, Editor, Composer, or Actor.
(10) Paid for services rendered in Illinois.
"Illinois production spending" means the expenses incurred
by the applicant for an accredited production, but does not
include any monetary prize or the cost of any non-monetary
prize awarded pursuant to a production in respect of a game,
questionnaire, or contest. "Illinois production spending"
includes, including, without limitation, all of the following:
(1) expenses to purchase, from vendors within
Illinois, tangible personal property that is used in the
accredited production;
(2) expenses to acquire services, from vendors in
Illinois, for film production, editing, or processing; and
(3) for a production commencing before July 1, 2022,
the compensation, not to exceed $100,000 for any one
employee, for contractual or salaried employees who are
Illinois residents performing services with respect to the
accredited production. For a production commencing on or
after July 1, 2022, the compensation, not to exceed
$500,000 for any one employee, for contractual or salaried
employees who are Illinois residents or nonresident
employees, subject to the limitations set forth under


Section 10 of this Act.
"Loan out company" means a personal service corporation or
other entity that is under contract with the taxpayer to
provide specified individual personnel, such as artists, crew,
actors, producers, or directors for the performance of
services used directly in a production. "Loan out company"
does not include entities contracted with by the taxpayer to
provide goods or ancillary contractor services such as
catering, construction, trailers, equipment, or
transportation.
"Qualified production facility" means stage facilities in
the State in which television shows and films are or are
intended to be regularly produced and that contain at least
one sound stage of at least 15,000 square feet.
Rulemaking authority to implement Public Act 95-1006, if
any, is conditioned on the rules being adopted in accordance
with all provisions of the Illinois Administrative Procedure
Act and all rules and procedures of the Joint Committee on
Administrative Rules; any purported rule not so adopted, for
whatever reason, is unauthorized.
(Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22;
102-1125, eff. 2-3-23.)
(35 ILCS 16/46)
Sec. 46. Illinois Production Workforce Development Fund.
(a) The Illinois Production Workforce Development Fund is


created as a special fund in the State Treasury. Beginning
July 1, 2023 July 1, 2022, amounts paid to the Department of
Commerce and Economic Opportunity pursuant to Section 213 of
the Illinois Income Tax Act shall be deposited into the Fund.
The Fund shall be used exclusively to provide grants to
community-based organizations, labor organizations, private
and public universities, community colleges, and other
organizations and institutions that may be deemed appropriate
by the Department to administer workforce training programs
that support efforts to recruit, hire, promote, retain,
develop, and train a diverse and inclusive workforce in the
film industry.
(b) Pursuant to Section 213 of the Illinois Income Tax
Act, taxpayers who have been awarded a tax credit under this
Act shall pay to the Department of Commerce and Economic
Opportunity, after determination of the tax credit amount but
prior to the issuance of a tax credit certificate, a fee equal
to 2.5% of the credit amount awarded to the taxpayer under the
Film Production Services Tax Credit Act of 2008 that is
attributable to wages paid to nonresidents, as described in
Section 10 of the Film Production Services Tax Credit Act of
2008, and an additional fee equal to 0.25% of the amount
generated by subtracting the credit amount awarded to the
taxpayer under the Film Production Services Tax Credit Act of
2008 that is attributable to wages paid to nonresidents from
the total credit amount awarded to the taxpayer under that


Act. All fees collected under this subsection shall be
deposited into the Illinois Production Workforce Development
Fund. No tax credit certificate shall be issued by the
Department of Commerce and Economic Opportunity until the
total fees owed according to this subsection have been
received by the Department of Commerce and Economic
Opportunity. the Fund shall receive deposits in amounts not to
exceed 0.25% of the amount of each credit certificate issued
that is not calculated on out-of-state wages and transferred
or claimed on an Illinois tax return in the quarter such credit
was transferred or claimed. In addition, such amount shall
also include 2.5% of the credit amount calculated on wages
paid to nonresidents that is transferred or claimed on an
Illinois tax return in the quarter such credit was transferred
or claimed.
(c) At the request of the Department, the State
Comptroller and the State Treasurer may advance amounts to the
Fund on an annual basis not to exceed $1,000,000 in any fiscal
year. The fund from which the moneys are advanced shall be
reimbursed in the same fiscal year for any such advance
payments as described in this Section. The method of
reimbursement shall be set forth in rules.
(d) Of the appropriated funds in a given fiscal year, 50%
of the appropriated funds shall be reserved for organizations
that meet one of the following criteria. The organization is:
(1) a minority-owned business, as defined by the Business


Enterprise for Minorities, Women, and Persons with
Disabilities Act; (2) located in an underserved area, as
defined by the Economic Development for a Growing Economy Tax
Credit Act; or (3) on an annual basis, training a cohort of
program participants where at least 50% of the program
participants are either a minority person, as defined by the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act, or reside in an underserved area, as defined
by the Economic Development for a Growing Economy Tax Credit
Act.
(e) The Illinois Production Workforce Development Fund
shall be administered by the Department. The Department may
adopt rules necessary to administer the provisions of this
Section.
(f) Notwithstanding any other law to the contrary, the
Illinois Production Workforce Development Fund is not subject
to sweeps, administrative charge-backs, or any other fiscal or
budgetary maneuver that would in any way transfer any amounts
from the Illinois Production Workforce Development Fund.
(g) By June 30 of each fiscal year, the Department must
submit to the General Assembly a report that includes the
following information: (1) an identification of the
organizations and institutions that received funding to
administer workforce training programs during the fiscal year;
(2) the number of total persons trained and the number of
persons trained per workforce training program in the fiscal


year; and (3) in the aggregate, per organization, the number
of persons identified as a minority person or that reside in an
underserved area that received training in the fiscal year.
(Source: P.A. 102-700, eff. 4-19-22.)
Section 30. The Manufacturing Illinois Chips for Real
Opportunity (MICRO) Act is amended by changing Sections 110-5,
110-10, 110-20, 110-35, 110-65, and 110-95 as follows:
(35 ILCS 45/110-5)
Sec. 110-5. Purpose. It is the intent of the General
Assembly that Illinois should lead the nation in the
production of quantum computers and the production of
semiconductors and microchips as they become even more
prevalent in everyday life. The General Assembly finds that,
through investments in quantum computing and semiconductors
and microchips, Illinois will be on the forefront of the
quantum computing industry and the forefront of reshoring
semiconductor and microchip production that fuels modern
technologies that are essential to the operation of computers,
phones, vehicles and the any electric products product that
have become essential to modern life. This Act will create
good paying jobs, and generate long-term economic investment
in the Illinois business economy, in addition to ensuring a
vital product is made in the United States. Illinois must
aggressively adopt new business development investment tools


so that Illinois can compete with domestic and foreign
competitors for quantum computer manufacturing and
semiconductor and chip manufacturing.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 45/110-10)
Sec. 110-10. Definitions. As used in this Act:
"Agreement" means the agreement between a taxpayer and the
Department under the provisions of this Act.
"Applicant" means a taxpayer that: (i) operates a business
in Illinois as a quantum computer manufacturer, a
semiconductor manufacturer, a microchip manufacturer, or a
manufacturer of quantum computer, semiconductor, or microchip
component parts or a business in Illinois that primarily
engages in research and development in the manufacturing of
quantum computers, semiconductors, or microchips; or (ii) is
planning to locate a business within the State of Illinois as a
quantum computer manufacturer, a semiconductor manufacturer, a
microchip manufacturer, or a manufacturer of quantum computer,
semiconductor, or microchip component parts or a business
within the State of Illinois that primarily engages in
research and development in the manufacturing of quantum
computers, semiconductors, or microchips. For the purposes of
this definition, a business primarily engages in research and
development in the manufacturing of quantum computers,
semiconductors, or microchips if at least 50% of its business


activities involve research and development in the
manufacturing of quantum computers, semiconductors, or
microchips. "Applicant" does not include a taxpayer who closes
or substantially reduces by more than 50% operations at one
location in the State and relocates substantially the same
operation to another location in the State. This does not
prohibit a taxpayer from expanding its operations at another
location in the State. This also does not prohibit a taxpayer
from moving its operations from one location in the State to
another location in the State for the purpose of expanding the
operation, provided that the Department determines that
expansion cannot reasonably be accommodated within the
municipality or county in which the business is located, or,
in the case of a business located in an incorporated area of
the county, within the county in which the business is
located, after conferring with the chief elected official of
the municipality or county and taking into consideration any
evidence offered by the municipality or county regarding the
ability to accommodate expansion within the municipality or
county.
"Capital improvements" means the purchase, renovation,
rehabilitation, or construction of permanent tangible land,
buildings, structures, equipment, and furnishings in an
approved project sited in Illinois and expenditures for goods
or services that are normally capitalized, including
organizational costs and research and development costs


incurred in Illinois. For land, buildings, structures, and
equipment that are leased, the lease must equal or exceed the
term of the agreement, and the cost of the property shall be
determined from the present value, using the corporate
interest rate prevailing at the time of the application, of
the lease payments.
"Credit" or "MICRO credit" means a credit agreed to
between the Department and applicant under this Act.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of
the following:
(1) a fossil fuel plant that was retired from service
or has significant reduced service within 6 years before
the time of the application or will be retired or have
service significantly reduced within 6 years following the
time of the application; or
(2) a coal mine that was closed or had operations
significantly reduced within 6 years before the time of
the application or is anticipated to be closed or have
operations significantly reduced within 6 years following
the time of the application.
"Full-time employee" means an individual who is employed


for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an agreement.
"Institution of higher education" or "institution" means
any accredited public or private university, college,
community college, business, technical, or vocational school,
or other accredited educational institution offering degrees
and instruction beyond the secondary school level.
"MICRO construction jobs credit" means a credit agreed to
between the Department and the applicant under this Act that
is based on the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities.
"MICRO credit" means a credit agreed to between the
Department and the applicant under this Act that is based on
the incremental income tax attributable to new employees and,
if applicable, retained employees, and on training costs for


such employees at the applicant's project.
"Microchip" means a wafer of semiconducting material that
is less than 15 millimeters long and less than 5 millimeters
wide and is used to make an integrated circuit.
"Microchip manufacturer" means a new or existing
manufacturer that is focused on reequipping, expanding, or
establishing a manufacturing facility in Illinois that
produces microchips or key components that directly support
the functions of microchips.
"Minority person" means a minority person as defined in
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
"New employee" means a newly-hired full-time employee
employed to work at the project site and whose work is directly
related to the project.
"Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director.
"Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,


and the facility is constructed and ready to conduct its
facility operations to manufacture goods.
"Professional employer organization" (PEO) means an
employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
"Program" means the Manufacturing Illinois Chips for Real
Opportunity (MICRO) program established in this Act.
"Project" means a for-profit economic development activity
for the manufacture of quantum computers, semiconductors, or
and microchips.
"Quantum computer" means a machine that uses the
properties of quantum physics to perform computations and
store data, as distinct from classical computing machines.
"Quantum computer manufacturer" or "manufacturer of
quantum computers or quantum computer component parts" means a
new or existing manufacturer that is focused on reequipping,
expanding, or establishing a facility in Illinois that
manufactures a quantum computer, quantum computer prototype
devices, or components that support the functions of a quantum
computer.
"Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
(1) An individual stockholder, if the stockholder and
the members of the stockholder's family (as defined in
Section 318 of the Internal Revenue Code) own directly,


indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the taxpayer's
outstanding stock.
(2) A partnership, estate, trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation under the attribution rules
of Section 318 of the Internal Revenue Code, if the
taxpayer owns directly, indirectly, beneficially, or
constructively at least 50% of the value of the
corporation's outstanding stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the taxpayer.
(5) A person to or from whom there is an attribution of
stock ownership in accordance with Section 1563(e) of the


Internal Revenue Code, except, for purposes of determining
whether a person is a related member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Research and development in the manufacturing of quantum
computers, semiconductors, or microchips" means work directed
toward the innovation, introduction, and improvement of
products and processes in the space of quantum computing
manufacturing, semiconductor manufacturing, microchip
manufacturing, or the manufacturing of semiconductor, quantum
computer, or microchip component parts.
"Retained employee" means a full-time employee employed by
the taxpayer prior to the term of the agreement who continues
to be employed during the term of the agreement whose job
duties are directly and substantially related to the project.
For purposes of this definition, "directly and substantially
related to the project" means at least two-thirds of the
employee's job duties must be directly related to the project
and the employee must devote at least two-thirds of his or her
time to the project. The term "retained employee" does not
include any individual who has a direct or an indirect
ownership interest of at least 5% in the profits, equity,
capital, or value of the taxpayer or a child, grandchild,
parent, or spouse, other than a spouse who is legally
separated from the individual, of any individual who has a
direct or indirect ownership of at least 5% in the profits,


equity, capital, or value of the taxpayer.
"Semiconductor" means any class of crystalline solids
intermediate in electrical conductivity between a conductor
and an insulator.
"Semiconductor manufacturer" means a new or existing
manufacturer that is focused on reequipping, expanding, or
establishing a manufacturing facility in Illinois that
produces semiconductors or key components that directly
support the functions of semiconductors. Semiconductor
manufacturing also includes the manufacturing of component
parts that are required for the development and operation of
quantum computers and quantum computing facilities.
"Statewide baseline" means the total number of full-time
employees of the applicant and any related member employed by
such entities at the time of application for incentives under
this Act.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has a legal obligation to pay Illinois
income taxes and file an Illinois income tax return.
"Training costs" means costs incurred to upgrade the
technological skills of full-time employees in Illinois and
includes: curriculum development; training materials
(including scrap product costs); trainee domestic travel
expenses; instructor costs (including wages, fringe benefits,
tuition and domestic travel expenses); rent, purchase or lease
of training equipment; and other usual and customary training


costs. "Training costs" do not include costs associated with
travel outside the United States (unless the taxpayer receives
prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and
fringe benefits of employees during periods of training, or
administrative cost related to full-time employees of the
taxpayer.
"Underserved area" means any geographic area areas as
defined in Section 5-5 of the Economic Development for a
Growing Economy Tax Credit Act.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 45/110-20)
Sec. 110-20. Manufacturing Illinois Chips for Real
Opportunity (MICRO) Program; project applications.
(a) The Manufacturing Illinois Chips for Real Opportunity
(MICRO) Program is hereby established and shall be
administered by the Department. The Program will provide
financial incentives to eligible semiconductor manufacturers,
and microchip manufacturers, quantum computer manufacturers,
and companies that primarily engage in research and
development in the manufacturing of quantum computers,
semiconductors, or microchips. For the purposes of this
Section, a company is primarily engaged in research and
development in the manufacturing of quantum computers,


semiconductors, or microchips if at least 50% of its business
activities involve research and development in the
manufacturing of quantum computers, semiconductors, or
microchips..
(b) Any taxpayer planning a project to be located in
Illinois may request consideration for designation of its
project as a MICRO project, by formal written letter of
request or by formal application to the Department, in which
the applicant states its intent to make at least a specified
level of investment and intends to hire a specified number of
full-time employees at a designated location in Illinois. As
circumstances require, the Department shall require a formal
application from an applicant and a formal letter of request
for assistance.
(c) In order to qualify for credits under the program, an
applicant must:
(1) for a semiconductor manufacturer, a or microchip
manufacturer, a quantum computer manufacturer, or a
company focusing on research and development in the
manufacturing of quantum computers, semiconductors, or
microchips:
(A) make an investment of at least $1,500,000,000
in capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and


(C) create at least 500 new full-time employee
jobs; or
(2) for a semiconductor component parts manufacturer,
a or microchip component parts manufacturer, a quantum
computer component parts manufacturer, or a company
focusing on research and development in the manufacture of
component parts for quantum computers, semiconductors, or
microchips:
(A) make an investment of at least $300,000,000 in
capital improvements at the project site;
(B) manufacture one or more parts that are
primarily used for the manufacture of semiconductors
or microchips;
(C) to be placed in service within the State
within a 60-month period after approval of the
application; and
(D) create at least 150 new full-time employee
jobs; or
(3) for a semiconductor manufacturer, a or microchip
manufacturer, a quantum computer manufacturer, a company
focusing on research and development in the manufacturing
of quantum computers, semiconductors, or microchips, or or
a semiconductor or microchip component parts manufacturer
that does not quality under paragraph (2) above:
(A) make an investment of at least $2,500,000
$20,000,000 in capital improvements at the project


site;
(B) to be placed in service within the State
within a 48-month period after approval of the
application; and
(C) create at least 50 new full-time employee jobs
or new full-time employees equivalent to 10% of the
number of full-time employees employed by the
applicant world-wide on the date the application is
filed with the Department; or
(4) for a semiconductor manufacturer, quantum computer
manufacturer, or microchip manufacturer, or a
semiconductor or microchip component parts manufacturer
with existing operations in Illinois that intends to
convert or expand, in whole or in part, the existing
facility from traditional manufacturing to semiconductor
manufacturing, quantum computer manufacturing, or
microchip manufacturing or semiconductor, quantum
computer, or microchip component parts manufacturing, or a
company focusing on research and development in the
manufacturing of quantum computers, semiconductors, or
microchips:
(A) make an investment of at least $100,000,000 in
capital improvements at the project site;
(B) to be placed in service within the State
within a 60-month period after approval of the
application; and


(C) create the lesser of 75 new full-time employee
jobs or new full-time employee jobs equivalent to 10%
of the Statewide baseline applicable to the taxpayer
and any related member at the time of application.
(d) For any applicant creating the full-time employee jobs
noted in subsection (c), those jobs must have a total
compensation equal to or greater than 120% of the average wage
paid to full-time employees in the county where the project is
located, as determined by the Department.
(e) Each applicant must outline its hiring plan and
commitment to recruit and hire full-time employee positions at
the project site. The hiring plan may include a partnership
with an institution of higher education to provide
internships, including, but not limited to, internships
supported by the Clean Jobs Workforce Network Program, or
full-time permanent employment for students at the project
site. Additionally, the applicant may create or utilize
participants from apprenticeship programs that are approved by
and registered with the United States Department of Labor's
Bureau of Apprenticeship and Training. The Applicant may apply
for apprenticeship education expense credits in accordance
with the provisions set forth in 14 Ill. Admin. Code 522. Each
applicant is required to report annually, on or before April
15, on the diversity of its workforce in accordance with
Section 110-50 of this Act. For existing facilities of
applicants under paragraph (3) of subsection (b) above, if the


taxpayer expects a reduction in force due to its transition to
manufacturing semiconductors, microchips, or semiconductor or
microchip component parts, the plan submitted under this
Section must outline the taxpayer's plan to assist with
retraining its workforce aligned with the taxpayer's adoption
of new technologies and anticipated efforts to retrain
employees through employment opportunities within the
taxpayer's workforce.
(f) A taxpayer may not enter into more than one agreement
under this Act with respect to a single address or location for
the same period of time. Also, a taxpayer may not enter into an
agreement under this Act with respect to a single address or
location for the same period of time for which the taxpayer
currently holds an active agreement under the Economic
Development for a Growing Economy Tax Credit Act. This
provision does not preclude the applicant from entering into
an additional agreement after the expiration or voluntary
termination of an earlier agreement under this Act or under
the Economic Development for a Growing Economy Tax Credit Act
to the extent that the taxpayer's application otherwise
satisfies the terms and conditions of this Act and is approved
by the Department. An applicant with an existing agreement
under the Economic Development for a Growing Economy Tax
Credit Act may submit an application for an agreement under
this Act after it terminates any existing agreement under the
Economic Development for a Growing Economy Tax Credit Act with


respect to the same address or location.
(Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
(35 ILCS 45/110-35)
Sec. 110-35. Relocation of jobs in Illinois. A taxpayer is
not entitled to claim a credit provided by this Act with
respect to any jobs that the taxpayer relocates from one site
in Illinois to another site in Illinois unless the taxpayer
has agreed to hire the minimum number of new employees and the
Department has determined that the expansion cannot reasonably
be accommodated within the municipality in which the business
is located. Any full-time employee relocated to Illinois in
connection with a qualifying project is deemed to be a new
employee for purposes of this Act. Determinations under this
Section shall be made by the Department.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 45/110-65)
Sec. 110-65. Certified payroll.
(a) Annually, until construction is completed, a company
seeking MICRO Construction Job Credits shall submit a report
that, at a minimum, describes the projected project scope,
timeline, and anticipated budget. Once the project has
commenced, the annual report shall include actual data for the
prior year as well as projections for each additional year
through completion of the project. The Department shall issue


detailed reporting guidelines prescribing the requirements of
construction-related reports. Each contractor and
subcontractor that is engaged in construction work on project
facilities for a taxpayer who seeks to apply for a MICRO
Construction Jobs Credit shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on a contract or subcontract
for construction of facilities for a project pursuant to
an agreement, records of all laborers and other workers
employed by the contractor or subcontractor on the
project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked in each
day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,


provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department; a certified
payroll must be filed for only those calendar months
during which construction on the project facilities has
occurred; the certified payroll shall consist of a
complete copy of the records identified in paragraph (1),
but may exclude the starting and ending times of work each
day; the certified payroll shall be accompanied by a
statement signed by the contractor or subcontractor or an
officer, employee, or agent of the contractor or
subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
(b) In order to receive credit for construction expenses,
the company must provide the Department with evidence that a


certified third party executed an Agreed-Upon Procedure (AUP)
verifying the construction expenses or accept the standard
construction wage expense estimated by the Department. Any
contractor or subcontractor subject to this Section, and any
officer, employee, or agent of such contractor or
subcontractor whose duty as an officer, employee, or agent it
is to file a certified payroll under this Section, who
willfully fails to file such a certified payroll, on or before
the date such certified payroll is required to be filed and any
person who willfully files a false certified payroll as to any
material fact is in violation of this Act and guilty of a Class
A misdemeanor and may be enforced by the Illinois Department
of Labor or the Department. The Attorney General shall
represented the Illinois Department of Labor or the Department
in the proceeding.
(c) Upon review of the final project scope, timeline,
budget, and AUP, the Department shall issue a tax credit
certificate reflecting a percentage of the total construction
job wages paid throughout the completion of the project. The
taxpayer in charge of the project shall keep the records
submitted in accordance with this Section for a period of 5
years from the date of the last payment for work on a contract
or subcontract for the project.
(d) (Blank). The records submitted in accordance with this
Section shall be considered public records, except an
employee's address, telephone number, and social security


number, which shall be redacted. The records shall be made
publicly available in accordance with the Freedom of
Information Act. The contractor or subcontractor shall submit
reports to the Department of Labor electronically that meet
the requirements of this subsection and shall share the
information with the Department to comply with the awarding of
the MICRO Construction Jobs Credit. A contractor,
subcontractor, or public body may retain records required
under this Section in paper or electronic format.
(e) Upon 7 business days' notice, the taxpayer contractor
and each subcontractor shall make available to each State
agency and to federal, State, or local law enforcement
agencies and prosecutors for inspection and copying at a
location within this State during reasonable hours, the report
described in subsection (a) records identified in paragraph
(1) of this subsection to the taxpayer in charge of the
Project, its officers and agents, the Director of the
Department of Labor and his/her deputies and agents, and to
federal, State, or local law enforcement agencies and
prosecutors.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 45/110-95)
Sec. 110-95. Utility tax exemptions for MICRO projects.
The Department may certify a taxpayer with a credit for a
project that meets the qualifications under paragraphs (1),


(2), and (4) of subsection (c) of Section 110-20, subject to an
agreement under this Act, for an exemption from the tax
imposed at the project site by Section 2-4 of the Electricity
Excise Tax Law. To receive such certification, the taxpayer
must be registered to self-assess that tax. The taxpayer is
also exempt from any additional charges added to the
taxpayer's utility bills at the project site as a pass-on of
State utility taxes under Section 9-222 of the Public
Utilities Act. The taxpayer must meet any other the criteria
for certification set by the Department.
The Department shall determine the period during which the
exemption from the Electricity Excise Tax Law and the charges
imposed under Section 9-222 of the Public Utilities Act are in
effect, which shall not exceed 30 10 years from the date of the
taxpayer's initial receipt of certification from the
Department under this Section.
The Department is authorized to adopt rules to carry out
the provisions of this Section, including procedures to apply
for the exemptions; to define the amounts and types of
eligible investments that an applicant must make in order to
receive electricity excise tax exemptions or exemptions from
the additional charges imposed under Section 9-222 and the
Public Utilities Act; to approve such electricity excise tax
exemptions for applicants whose investments are not yet placed
in service; and to require that an applicant granted an
electricity excise tax exemption or an exemption from


additional charges under Section 9-222 of the Public Utilities
Act repay the exempted amount if the applicant fails to comply
with the terms and conditions of the agreement.
Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The Department of Revenue shall notify the
public utilities of the exempt status of any taxpayer
certified for exemption under this Act from the electricity
excise tax or pass-on charges. The exemption status shall take
effect within 3 months after certification of the taxpayer and
notice to the Department of Revenue by the Department.
(Source: P.A. 102-700, eff. 4-19-22.)
Section 35. The Use Tax Act is amended by changing Section
12 as follows:
(35 ILCS 105/12) (from Ch. 120, par. 439.12)
Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
2-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5
(except that the time limitation provisions on the issuance of
notices of tax liability shall run from the date when the tax
is due rather than from the date when gross receipts are


received and except that in the case of a failure to file a
return required by this Act, no notice of tax liability shall
be issued on and after each July 1 and January 1 covering tax
due with that return during any month or period more than 6
years before that July 1 or January 1, respectively), 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and
12 of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, which are not inconsistent
with this Act, shall apply, as far as practicable, to the
subject matter of this Act to the same extent as if such
provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
Section 40. The Service Use Tax Act is amended by changing
Section 12 as follows:
(35 ILCS 110/12) (from Ch. 120, par. 439.42)
Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
2-29, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
Department of the money collected under this Act), 4 (except
that the time limitation provisions shall run from the date
when gross receipts are received), 5 (except that the time
limitation provisions on the issuance of notices of tax
liability shall run from the date when the tax is due rather


than from the date when gross receipts are received and except
that in the case of a failure to file a return required by this
Act, no notice of tax liability shall be issued on and after
July 1 and January 1 covering tax due with that return during
any month or period more than 6 years before that July 1 or
January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
Occupation Tax Act which are not inconsistent with this Act,
and Section 3-7 of the Uniform Penalty and Interest Act, shall
apply, as far as practicable, to the subject matter of this Act
to the same extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
Section 45. The Service Occupation Tax Act is amended by
changing Section 12 as follows:
(35 ILCS 115/12) (from Ch. 120, par. 439.112)
Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-29, 2-54, 2a, 2b, 2c, 3
(except as to the disposition by the Department of the tax
collected under this Act), 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5
(except that the time limitation provisions on the issuance of
notices of tax liability shall run from the date when the tax
is due rather than from the date when gross receipts are


received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d,
7, 8, 9, 10, 11, and 12 of the "Retailers' Occupation Tax Act"
which are not inconsistent with this Act, and Section 3-7 of
the Uniform Penalty and Interest Act shall apply, as far as
practicable, to the subject matter of this Act to the same
extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
revised 9-26-23.)
Section 50. The Retailers' Occupation Tax Act is amended
by adding Section 2-29 as follows:
(35 ILCS 120/2-29 new)
Sec. 2-29. Quantum computing campus building materials
exemption.
(a) Each retailer who makes a qualified sale of building
materials to be incorporated into real estate at a quantum
computing campus certified by the Department of Commerce and
Economic Opportunity under Section 605-1115 of the Department
of Commerce and Economic Opportunity Law of the Civil
Administrative Code of Illinois may deduct receipts from those
sales when calculating the tax imposed by this Act. Quantum
Computing Campus Building Materials Exemption Certificates
shall be issued for an initial period not to exceed 20 years
and can be renewed once for a period not to exceed 20 years.
(b) No retailer who is eligible for the deduction or


credit for a given sale under Section 5k of this Act related to
enterprise zones, Section 5l of this Act related to High
Impact Businesses, Section 5m of this Act related to REV
Illinois projects, or Section 5n of this Act related to MICRO
facilities shall be eligible for the deduction or credit
authorized under this Section for that same sale.
(c) A construction contractor or other entity shall not
make tax-free purchases unless it has an active Exemption
Certificate issued by the Department at the time of the
purchase.
(d) A taxpayer that is certified by the Department of
Commerce and Economic Opportunity under Section 605-1115 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois shall submit a request
to the Department for an initial or renewal Quantum Computing
Campus Materials Exemption Certificate. Upon request from the
certified taxpayer, the Department shall issue a Quantum
Computing Campus Building Materials Exemption Certificate for
each construction contractor or other entity identified by the
certified taxpayer. The Department shall make the Quantum
Computing Campus Building Materials Exemption Certificates
available to each construction contractor or other entity
identified by the certified taxpayer and to the certified
taxpayer. The request for Quantum Computing Campus Building
Materials Exemption Certificates under this Section must
include the following information:


(1) the name and address of the construction
contractor or other entity;
(2) the name and location or address of the building
project site;
(3) the estimated amount of the exemption for each
construction contractor or other entity for which a
request for a Quantum Computing Campus Building Materials
Exemption Certificate is made, based on a stated estimated
average tax rate and the percentage of the contract that
consists of materials;
(4) the period of time over which supplies for the
project are expected to be purchased; and
(5) other reasonable information as the Department may
require, including, but not limited to, FEIN numbers, to
determine if the contractor or other entity, or any
partner, or a corporate officer, and in the case of a
limited liability company, any manager or member, of the
construction contractor or other entity, is or has been
the owner, a partner, a corporate officer, and, in the
case of a limited liability company, a manager or member,
of a person that is in default for moneys due to the
Department under this Act or any other tax or fee Act
administered by the Department.
The Department, in its discretion, may require that the
request for Quantum Computing Campus Building Materials
Exemption Certificates be submitted electronically. The


Department may, in its discretion, issue the Exemption
Certificates electronically.
(e) To document the exemption allowed under this Section,
the retailer must obtain from the purchaser the certification
required under this Section, which must contain the Quantum
Computing Campus Building Materials Exemption Certificate
number issued to the purchaser by the Department. In addition,
the retailer must obtain certification from the purchaser that
contains:
(1) a statement that the building materials are being
purchased for incorporation into real estate located in a
quantum computing campus;
(2) the location or address of the real estate into
which the building materials will be incorporated;
(3) the name of the quantum computing campus in which
that real estate is located;
(4) a description of the building materials being
purchased;
(5) the purchaser's Quantum Computing Campus Building
Materials Exemption Certificate number issued by the
Department; and
(6) the purchaser's signature and date of purchase.
(f) The Department shall issue the Quantum Computing
Campus Building Materials Exemption Certificates within 3
business days after receipt of the request from the certified
taxpayer. This requirement does not apply in circumstances


where the Department, for reasonable cause, is unable to issue
the Exemption Certificate within 3 business days. The
Department may refuse to issue a Quantum Computing Campus
Building Materials Exemption Certificate if the owner, any
partner, or a corporate officer, and in the case of a limited
liability company, any manager or member, of the construction
contractor or other entity is or has been the owner, a partner,
a corporate officer, and, in the case of a limited liability
company, a manager or member, of a person that is in default
for moneys due to the Department under this Act or any other
tax or fee Act administered by the Department.
(g) The Quantum Computing Campus Building Materials
Exemption Certificate shall contain:
(1) a unique identifying number that shall be designed
in such a way that the Department can identify from the
unique number on the Exemption Certificate issued to a
given construction contractor or other entity, the name of
the quantum computing campus and the construction
contractor or other entity to whom the Exemption
Certificate is issued;
(2) the name of the construction contractor or entity
to whom the Exemption Certificate is issued;
(3) issuance, effective, and expiration dates; and
(4) language stating that if the construction
contractor or other entity who is issued the Exemption
Certificate makes a tax-exempt purchase, as described in


this Section, that is not eligible for exemption under
this Section or allows another person to make a tax-exempt
purchase, as described in this Section, that is not
eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the
construction contractor or other entity is subject to a
penalty equal to the tax that would have been paid by the
retailer under this Act as well as any applicable local
retailers' occupation tax on the purchase that is not
eligible for the exemption.
(h) After the Department issues Exemption Certificates for
a given quantum computing campus, the certified taxpayer may
notify the Department of additional construction contractors
or other entities that are eligible for a Quantum Computing
Campus Building Materials Exemption Certificate. Upon
receiving such a notification and subject to the other
provisions of this Section, the Department shall issue a
Quantum Computing Campus Building Materials Exemption
Certificate to each additional construction contractor or
other entity so identified.
(i) A certified taxpayer may ask the Department to rescind
a Quantum Computing Campus Building Materials Exemption
Certificate previously issued by the Department to a
construction contractor or other entity working at that
certified quantum computing campus if that Quantum Computing
Campus Building Materials Exemption Certificate has not yet


expired. Upon receiving such a request and subject to the
other provisions of this Section, the Department shall issue
the rescission of the Quantum Computing Campus Building
Materials Exemption Certificate to the construction contractor
or other entity identified by the certified taxpayer and
provide a copy of the rescission to the construction
contractor or other entity and to the certified taxpayer.
(j) If the Department of Revenue determines that a
construction contractor or other entity that was issued an
Exemption Certificate under this Section made a tax-exempt
purchase, as described in this Section, that was not eligible
for exemption under this Section or allowed another person to
make a tax-exempt purchase, as described in this Section, that
was not eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that was not eligible for the exemption.
(k) Each contractor or other entity that has been issued a
Quantum Computing Campus Building Materials Exemption
Certificate under this Section shall annually report to the
Department the total value of the quantum computing campus
building materials exemption from State taxes. Reports shall
contain information reasonably required by the Department to
enable it to verify and calculate the total tax benefits for


taxes imposed by the State and shall be broken down by quantum
computing campus site. Reports are due no later than May 31 of
each year and shall cover the previous calendar year. Failure
to report data may result in revocation of the Quantum
Computing Campus Building Materials Exemption Certificate
issued to the contractor or other entity. The Department is
authorized to adopt rules governing revocation determinations,
including the length of revocation. Factors to be considered
in revocations shall include, but are not limited to, prior
compliance with the reporting requirements, cooperation in
discontinuing and correcting violations, and whether the
certificate was used unlawfully during the preceding year. The
Department, in its discretion, may require that the reports
filed under this Section be submitted electronically.
(l) As used in this Section:
"Certified taxpayer" means a person certified by the
Department of Commerce and Economic Opportunity under Section
605-1115 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
"Qualified sale" means a sale of building materials that
will be incorporated into real estate as part of a building
project for which a Quantum Computing Campus Building
Materials Exemption Certificate has been issued to the
purchaser by the Department.
(m) The Department shall have the authority to adopt rules
as are reasonable and necessary to implement the provisions of


this Section.
(n) This Section is exempt from the provisions of Section
2-70.
(o) This exemption also applies to the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act and is
incorporated by reference in Section 12 of each of those
respective Acts.
Section 53. The Gas Use Tax Law is amended by changing
Section 5-10 as follows:
(35 ILCS 173/5-10)
Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a
tax is imposed upon the privilege of using in this State gas
obtained in a purchase of out-of-state gas at the rate of 2.4
cents per therm or 5% of the purchase price for the billing
period, whichever is the lower rate. Such tax rate shall be
referred to as the "self-assessing purchaser tax rate".
Beginning with bills issued by delivering suppliers on and
after October 1, 2003, purchasers may elect an alternative tax
rate of 2.4 cents per therm to be paid under the provisions of
Section 5-15 of this Law to a delivering supplier maintaining
a place of business in this State. Such tax rate shall be
referred to as the "alternate tax rate". The tax imposed under
this Section shall not apply to gas used by business
enterprises certified under Section 9-222.1 of the Public


Utilities Act or Section 605-1115 of the Department of
Commerce and Economic Opportunity Law of the Civil
Administrative Code of Illinois, as amended, to the extent of
such exemption and during the period of time specified by the
Department of Commerce and Economic Opportunity.
(Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
Section 55. The Property Tax Code is amended by changing
Sections 18-184.15 and 18-184.20 as follows:
(35 ILCS 200/18-184.15)
Sec. 18-184.15. REV Illinois project facilities for
electric vehicles, electric vehicle component parts, or
electric vehicle power supply equipment; abatement.
(a) Any taxing district, upon a majority vote of its
governing body, may, after determination of the assessed value
as set forth in this Code, order the clerk of the appropriate
municipality or county to abate, for a period not to exceed 30
consecutive years, any portion of real property taxes
otherwise levied or extended by the taxing district on a REV
Illinois Project facility owned by an electric vehicle
manufacturer, electric vehicle component parts manufacturer,
or an electric vehicle power supply manufacturer that is
subject to an agreement with the Department of Commerce and
Economic Opportunity under Section 45 of the Reimagining
Energy and Vehicles in Illinois Act, during the period of time


such agreement is in effect as specified by the Department of
Commerce and Economic Opportunity.
(b) Two or more taxing districts, upon a majority vote of
each of their respective governing bodies, may agree to abate,
for a period not to exceed 30 consecutive tax years, a portion
of the real property taxes otherwise levied or extended by
those taxing districts on a REV Illinois Project facility that
is subject to an agreement with the Department of Commerce and
Economic Opportunity under Section 45 of the Reimagining
Energy and Vehicles in Illinois Act. The agreement entered
into by the taxing districts under this subsection (b) shall
be filed with the county clerk who shall, for the period the
agreement remains in effect, abate the portion of the real
estate taxes levied or extended by those taxing districts as
directed in the agreement. Any such agreement entered into by
2 or more taxing districts before the effective date of this
amendatory Act of the 103rd General Assembly that is not
inconsistent with the provisions of this subsection (b) is
hereby declared valid and enforceable for the effective period
of that agreement.
(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
(35 ILCS 200/18-184.20)
Sec. 18-184.20. MICRO Illinois project facilities. Any
taxing district, upon a majority vote of its governing body,
may, after determination of the assessed value as set forth in


this Code, order the clerk of the appropriate municipality or
county to abate, for a period not to exceed 30 consecutive
years, any portion of real property taxes otherwise levied or
extended by the taxing district on a MICRO Illinois Project
facility owned by a semiconductor manufacturer or microchip
manufacturer or a semiconductor or microchip component parts
manufacturer that is subject to an agreement with the
Department of Commerce and Economic Opportunity under the
Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
during the period of time such agreement is in effect as
specified by the Department of Commerce and Economic
Opportunity.
(Source: P.A. 102-700, eff. 4-19-22.)
Section 60. The Telecommunications Excise Tax Act is
amended by changing Section 2 as follows:
(35 ILCS 630/2) (from Ch. 120, par. 2002)
Sec. 2. As used in this Article, unless the context
clearly requires otherwise:
(a) "Gross charge" means the amount paid for the act or
privilege of originating or receiving telecommunications in
this State and for all services and equipment provided in
connection therewith by a retailer, valued in money whether
paid in money or otherwise, including cash, credits, services
and property of every kind or nature, and shall be determined


without any deduction on account of the cost of such
telecommunications, the cost of materials used, labor or
service costs or any other expense whatsoever. In case credit
is extended, the amount thereof shall be included only as and
when paid. "Gross charges" for private line service shall
include charges imposed at each channel termination point
within this State, charges for the channel mileage between
each channel termination point within this State, and charges
for that portion of the interstate inter-office channel
provided within Illinois. Charges for that portion of the
interstate inter-office channel provided in Illinois shall be
determined by the retailer as follows: (i) for interstate
inter-office channels having 2 channel termination points,
only one of which is in Illinois, 50% of the total charge
imposed; or (ii) for interstate inter-office channels having
more than 2 channel termination points, one or more of which
are in Illinois, an amount equal to the total charge
multiplied by a fraction, the numerator of which is the number
of channel termination points within Illinois and the
denominator of which is the total number of channel
termination points. Prior to January 1, 2004, any method
consistent with this paragraph or other method that reasonably
apportions the total charges for interstate inter-office
channels among the states in which channel terminations points
are located shall be accepted as a reasonable method to
determine the charges for that portion of the interstate


inter-office channel provided within Illinois for that period.
However, "gross charges" shall not include any of the
following:
(1) Any amounts added to a purchaser's bill because of
a charge made pursuant to (i) the tax imposed by this
Article; (ii) charges added to customers' bills pursuant
to the provisions of Sections 9-221 or 9-222 of the Public
Utilities Act, as amended, or any similar charges added to
customers' bills by retailers who are not subject to rate
regulation by the Illinois Commerce Commission for the
purpose of recovering any of the tax liabilities or other
amounts specified in such provisions of such Act; (iii)
the tax imposed by Section 4251 of the Internal Revenue
Code; (iv) 911 surcharges; or (v) the tax imposed by the
Simplified Municipal Telecommunications Tax Act.
(2) Charges for a sent collect telecommunication
received outside of the State.
(3) Charges for leased time on equipment or charges
for the storage of data or information for subsequent
retrieval or the processing of data or information
intended to change its form or content. Such equipment
includes, but is not limited to, the use of calculators,
computers, data processing equipment, tabulating equipment
or accounting equipment and also includes the usage of
computers under a time-sharing agreement.
(4) Charges for customer equipment, including such


equipment that is leased or rented by the customer from
any source, wherein such charges are disaggregated and
separately identified from other charges.
(5) Charges to business enterprises certified under
Section 9-222.1 of the Public Utilities Act, as amended,
or under Section 95 of the Reimagining Energy and Vehicles
in Illinois Act, to the extent of such exemption and
during the period of time specified by the Department of
Commerce and Economic Opportunity.
(5.1) Charges to business enterprises certified under
the Manufacturing Illinois Chips for Real Opportunity
(MICRO) Act, to the extent of the exemption and during the
period of time specified by the Department of Commerce and
Economic Opportunity.
(5.2) Charges to entities certified under Section
605-1115 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of
Illinois to the extent of the exemption and during the
period of time specified by the Department of Commerce and
Economic Opportunity.
(6) Charges for telecommunications and all services
and equipment provided in connection therewith between a
parent corporation and its wholly owned subsidiaries or
between wholly owned subsidiaries when the tax imposed
under this Article has already been paid to a retailer and
only to the extent that the charges between the parent


corporation and wholly owned subsidiaries or between
wholly owned subsidiaries represent expense allocation
between the corporations and not the generation of profit
for the corporation rendering such service.
(7) Bad debts. Bad debt means any portion of a debt
that is related to a sale at retail for which gross charges
are not otherwise deductible or excludable that has become
worthless or uncollectable, as determined under applicable
federal income tax standards. If the portion of the debt
deemed to be bad is subsequently paid, the retailer shall
report and pay the tax on that portion during the
reporting period in which the payment is made.
(8) Charges paid by inserting coins in coin-operated
telecommunication devices.
(9) Amounts paid by telecommunications retailers under
the Telecommunications Municipal Infrastructure
Maintenance Fee Act.
(10) Charges for nontaxable services or
telecommunications if (i) those charges are aggregated
with other charges for telecommunications that are
taxable, (ii) those charges are not separately stated on
the customer bill or invoice, and (iii) the retailer can
reasonably identify the nontaxable charges on the
retailer's books and records kept in the regular course of
business. If the nontaxable charges cannot reasonably be
identified, the gross charge from the sale of both taxable


and nontaxable services or telecommunications billed on a
combined basis shall be attributed to the taxable services
or telecommunications. The burden of proving nontaxable
charges shall be on the retailer of the
telecommunications.
(b) "Amount paid" means the amount charged to the
taxpayer's service address in this State regardless of where
such amount is billed or paid.
(c) "Telecommunications", in addition to the meaning
ordinarily and popularly ascribed to it, includes, without
limitation, messages or information transmitted through use of
local, toll and wide area telephone service; private line
services; channel services; telegraph services;
teletypewriter; computer exchange services; cellular mobile
telecommunications service; specialized mobile radio;
stationary two way radio; paging service; or any other form of
mobile and portable one-way or two-way communications; or any
other transmission of messages or information by electronic or
similar means, between or among points by wire, cable,
fiber-optics, laser, microwave, radio, satellite or similar
facilities. As used in this Act, "private line" means a
dedicated non-traffic sensitive service for a single customer,
that entitles the customer to exclusive or priority use of a
communications channel or group of channels, from one or more
specified locations to one or more other specified locations.
The definition of "telecommunications" shall not include value


added services in which computer processing applications are
used to act on the form, content, code and protocol of the
information for purposes other than transmission.
"Telecommunications" shall not include purchases of
telecommunications by a telecommunications service provider
for use as a component part of the service provided by him to
the ultimate retail consumer who originates or terminates the
taxable end-to-end communications. Carrier access charges,
right of access charges, charges for use of inter-company
facilities, and all telecommunications resold in the
subsequent provision of, used as a component of, or integrated
into end-to-end telecommunications service shall be
non-taxable as sales for resale.
(d) "Interstate telecommunications" means all
telecommunications that either originate or terminate outside
this State.
(e) "Intrastate telecommunications" means all
telecommunications that originate and terminate within this
State.
(f) "Department" means the Department of Revenue of the
State of Illinois.
(g) "Director" means the Director of Revenue for the
Department of Revenue of the State of Illinois.
(h) "Taxpayer" means a person who individually or through
his agents, employees or permittees engages in the act or
privilege of originating or receiving telecommunications in


this State and who incurs a tax liability under this Article.
(i) "Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian or other representative appointed
by order of any court, the Federal and State governments,
including State universities created by statute or any city,
town, county or other political subdivision of this State.
(j) "Purchase at retail" means the acquisition,
consumption or use of telecommunication through a sale at
retail.
(k) "Sale at retail" means the transmitting, supplying or
furnishing of telecommunications and all services and
equipment provided in connection therewith for a consideration
to persons other than the Federal and State governments, and
State universities created by statute and other than between a
parent corporation and its wholly owned subsidiaries or
between wholly owned subsidiaries for their use or consumption
and not for resale.
(l) "Retailer" means and includes every person engaged in
the business of making sales at retail as defined in this
Article. The Department may, in its discretion, upon
application, authorize the collection of the tax hereby
imposed by any retailer not maintaining a place of business
within this State, who, to the satisfaction of the Department,
furnishes adequate security to insure collection and payment


of the tax. Such retailer shall be issued, without charge, a
permit to collect such tax. When so authorized, it shall be the
duty of such retailer to collect the tax upon all of the gross
charges for telecommunications in this State in the same
manner and subject to the same requirements as a retailer
maintaining a place of business within this State. The permit
may be revoked by the Department at its discretion.
(m) "Retailer maintaining a place of business in this
State", or any like term, means and includes any retailer
having or maintaining within this State, directly or by a
subsidiary, an office, distribution facilities, transmission
facilities, sales office, warehouse or other place of
business, or any agent or other representative operating
within this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or
agent or other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State.
(n) "Service address" means the location of
telecommunications equipment from which the telecommunications
services are originated or at which telecommunications
services are received by a taxpayer. In the event this may not
be a defined location, as in the case of mobile phones, paging
systems, maritime systems, service address means the
customer's place of primary use as defined in the Mobile
Telecommunications Sourcing Conformity Act. For air-to-ground


systems and the like, service address shall mean the location
of a taxpayer's primary use of the telecommunications
equipment as defined by telephone number, authorization code,
or location in Illinois where bills are sent.
(o) "Prepaid telephone calling arrangements" mean the
right to exclusively purchase telephone or telecommunications
services that must be paid for in advance and enable the
origination of one or more intrastate, interstate, or
international telephone calls or other telecommunications
using an access number, an authorization code, or both,
whether manually or electronically dialed, for which payment
to a retailer must be made in advance, provided that, unless
recharged, no further service is provided once that prepaid
amount of service has been consumed. Prepaid telephone calling
arrangements include the recharge of a prepaid calling
arrangement. For purposes of this subsection, "recharge" means
the purchase of additional prepaid telephone or
telecommunications services whether or not the purchaser
acquires a different access number or authorization code.
"Prepaid telephone calling arrangement" does not include an
arrangement whereby a customer purchases a payment card and
pursuant to which the service provider reflects the amount of
such purchase as a credit on an invoice issued to that customer
under an existing subscription plan.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
102-1125, eff. 2-3-23.)


Section 65. The Telecommunications Infrastructure
Maintenance Fee Act is amended by changing Section 10 as
follows:
(35 ILCS 635/10)
Sec. 10. Definitions.
(a) "Gross charges" means the amount paid to a
telecommunications retailer for the act or privilege of
originating or receiving telecommunications in this State and
for all services rendered in connection therewith, valued in
money whether paid in money or otherwise, including cash,
credits, services, and property of every kind or nature, and
shall be determined without any deduction on account of the
cost of such telecommunications, the cost of the materials
used, labor or service costs, or any other expense whatsoever.
In case credit is extended, the amount thereof shall be
included only as and when paid. "Gross charges" for private
line service shall include charges imposed at each channel
termination point within this State, charges for the channel
mileage between each channel termination point within this
State, and charges for that portion of the interstate
inter-office channel provided within Illinois. Charges for
that portion of the interstate inter-office channel provided
in Illinois shall be determined by the retailer as follows:
(i) for interstate inter-office channels having 2 channel


termination points, only one of which is in Illinois, 50% of
the total charge imposed; or (ii) for interstate inter-office
channels having more than 2 channel termination points, one or
more of which are in Illinois, an amount equal to the total
charge multiplied by a fraction, the numerator of which is the
number of channel termination points within Illinois and the
denominator of which is the total number of channel
termination points. Prior to January 1, 2004, any method
consistent with this paragraph or other method that reasonably
apportions the total charges for interstate inter-office
channels among the states in which channel terminations points
are located shall be accepted as a reasonable method to
determine the charges for that portion of the interstate
inter-office channel provided within Illinois for that period.
However, "gross charges" shall not include any of the
following:
(1) Any amounts added to a purchaser's bill because of
a charge made under: (i) the fee imposed by this Section,
(ii) additional charges added to a purchaser's bill under
Section 9-221 or 9-222 of the Public Utilities Act, (iii)
the tax imposed by the Telecommunications Excise Tax Act,
(iv) 911 surcharges, (v) the tax imposed by Section 4251
of the Internal Revenue Code, or (vi) the tax imposed by
the Simplified Municipal Telecommunications Tax Act.
(2) Charges for a sent collect telecommunication
received outside of this State.


(3) Charges for leased time on equipment or charges
for the storage of data or information or subsequent
retrieval or the processing of data or information
intended to change its form or content. Such equipment
includes, but is not limited to, the use of calculators,
computers, data processing equipment, tabulating
equipment, or accounting equipment and also includes the
usage of computers under a time-sharing agreement.
(4) Charges for customer equipment, including such
equipment that is leased or rented by the customer from
any source, wherein such charges are disaggregated and
separately identified from other charges.
(5) Charges to business enterprises certified under
Section 9-222.1 of the Public Utilities Act to the extent
of such exemption and during the period of time specified
by the Department of Commerce and Economic Opportunity.
(5.1) Charges to business enterprises certified under
Section 95 of the Reimagining Energy and Vehicles in
Illinois Act, to the extent of the exemption and during
the period of time specified by the Department of Commerce
and Economic Opportunity.
(5.2) Charges to business enterprises certified under
Section 110-95 of the Manufacturing Illinois Chips for
Real Opportunity (MICRO) Act, to the extent of the
exemption and during the period of time specified by the
Department of Commerce and Economic Opportunity.


(5.3) Charges to entities certified under Section
605-1115 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of
Illinois to the extent of the exemption and during the
period of time specified by the Department of Commerce and
Economic Opportunity.
(6) Charges for telecommunications and all services
and equipment provided in connection therewith between a
parent corporation and its wholly owned subsidiaries or
between wholly owned subsidiaries, and only to the extent
that the charges between the parent corporation and wholly
owned subsidiaries or between wholly owned subsidiaries
represent expense allocation between the corporations and
not the generation of profit other than a regulatory
required profit for the corporation rendering such
services.
(7) Bad debts ("bad debt" means any portion of a debt
that is related to a sale at retail for which gross charges
are not otherwise deductible or excludable that has become
worthless or uncollectible, as determined under applicable
federal income tax standards; if the portion of the debt
deemed to be bad is subsequently paid, the retailer shall
report and pay the tax on that portion during the
reporting period in which the payment is made).
(8) Charges paid by inserting coins in coin-operated
telecommunication devices.


(9) Charges for nontaxable services or
telecommunications if (i) those charges are aggregated
with other charges for telecommunications that are
taxable, (ii) those charges are not separately stated on
the customer bill or invoice, and (iii) the retailer can
reasonably identify the nontaxable charges on the
retailer's books and records kept in the regular course of
business. If the nontaxable charges cannot reasonably be
identified, the gross charge from the sale of both taxable
and nontaxable services or telecommunications billed on a
combined basis shall be attributed to the taxable services
or telecommunications. The burden of proving nontaxable
charges shall be on the retailer of the
telecommunications.
(a-5) "Department" means the Illinois Department of
Revenue.
(b) "Telecommunications" includes, but is not limited to,
messages or information transmitted through use of local,
toll, and wide area telephone service, channel services,
telegraph services, teletypewriter service, computer exchange
services, private line services, specialized mobile radio
services, or any other transmission of messages or information
by electronic or similar means, between or among points by
wire, cable, fiber optics, laser, microwave, radio, satellite,
or similar facilities. Unless the context clearly requires
otherwise, "telecommunications" shall also include wireless


telecommunications as hereinafter defined.
"Telecommunications" shall not include value added services in
which computer processing applications are used to act on the
form, content, code, and protocol of the information for
purposes other than transmission. "Telecommunications" shall
not include purchase of telecommunications by a
telecommunications service provider for use as a component
part of the service provided by him or her to the ultimate
retail consumer who originates or terminates the end-to-end
communications. Retailer access charges, right of access
charges, charges for use of intercompany facilities, and all
telecommunications resold in the subsequent provision and used
as a component of, or integrated into, end-to-end
telecommunications service shall not be included in gross
charges as sales for resale. "Telecommunications" shall not
include the provision of cable services through a cable system
as defined in the Cable Communications Act of 1984 (47 U.S.C.
Sections 521 and following) as now or hereafter amended or
through an open video system as defined in the Rules of the
Federal Communications Commission (47 C.D.F. 76.1550 and
following) as now or hereafter amended. Beginning January 1,
2001, prepaid telephone calling arrangements shall not be
considered "telecommunications" subject to the tax imposed
under this Act. For purposes of this Section, "prepaid
telephone calling arrangements" means that term as defined in
Section 2-27 of the Retailers' Occupation Tax Act.


(c) "Wireless telecommunications" includes cellular mobile
telephone services, personal wireless services as defined in
Section 704(C) of the Telecommunications Act of 1996 (Public
Law No. 104-104) as now or hereafter amended, including all
commercial mobile radio services, and paging services.
(d) "Telecommunications retailer" or "retailer" or
"carrier" means and includes every person engaged in the
business of making sales of telecommunications at retail as
defined in this Section. The Department may, in its
discretion, upon applications, authorize the collection of the
fee hereby imposed by any retailer not maintaining a place of
business within this State, who, to the satisfaction of the
Department, furnishes adequate security to insure collection
and payment of the fee. When so authorized, it shall be the
duty of such retailer to pay the fee upon all of the gross
charges for telecommunications in the same manner and subject
to the same requirements as a retailer maintaining a place of
business within this State.
(e) "Retailer maintaining a place of business in this
State", or any like term, means and includes any retailer
having or maintaining within this State, directly or by a
subsidiary, an office, distribution facilities, transmission
facilities, sales office, warehouse, or other place of
business, or any agent or other representative operating
within this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or


agent or other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State.
(f) "Sale of telecommunications at retail" means the
transmitting, supplying, or furnishing of telecommunications
and all services rendered in connection therewith for a
consideration, other than between a parent corporation and its
wholly owned subsidiaries or between wholly owned
subsidiaries, when the gross charge made by one such
corporation to another such corporation is not greater than
the gross charge paid to the retailer for their use or
consumption and not for sale.
(g) "Service address" means the location of
telecommunications equipment from which telecommunications
services are originated or at which telecommunications
services are received. If this is not a defined location, as in
the case of wireless telecommunications, paging systems,
maritime systems, service address means the customer's place
of primary use as defined in the Mobile Telecommunications
Sourcing Conformity Act. For air-to-ground systems, and the
like, "service address" shall mean the location of the
customer's primary use of the telecommunications equipment as
defined by the location in Illinois where bills are sent.
(Source: P.A. 102-1125, eff. 2-3-23.)
Section 70. The Simplified Municipal Telecommunications


Tax Act is amended by changing Section 5-7 as follows:
(35 ILCS 636/5-7)
Sec. 5-7. Definitions. For purposes of the taxes
authorized by this Act:
"Amount paid" means the amount charged to the taxpayer's
service address in such municipality regardless of where such
amount is billed or paid.
"Department" means the Illinois Department of Revenue.
"Gross charge" means the amount paid for the act or
privilege of originating or receiving telecommunications in
such municipality and for all services and equipment provided
in connection therewith by a retailer, valued in money whether
paid in money or otherwise, including cash, credits, services
and property of every kind or nature, and shall be determined
without any deduction on account of the cost of such
telecommunications, the cost of the materials used, labor or
service costs or any other expense whatsoever. In case credit
is extended, the amount thereof shall be included only as and
when paid. "Gross charges" for private line service shall
include charges imposed at each channel termination point
within a municipality that has imposed a tax under this
Section and charges for the portion of the inter-office
channels provided within that municipality. Charges for that
portion of the inter-office channel connecting 2 or more
channel termination points, one or more of which is located


within the jurisdictional boundary of such municipality, shall
be determined by the retailer by multiplying an amount equal
to the total charge for the inter-office channel by a
fraction, the numerator of which is the number of channel
termination points that are located within the jurisdictional
boundary of the municipality and the denominator of which is
the total number of channel termination points connected by
the inter-office channel. Prior to January 1, 2004, any method
consistent with this paragraph or other method that reasonably
apportions the total charges for inter-office channels among
the municipalities in which channel termination points are
located shall be accepted as a reasonable method to determine
the taxable portion of an inter-office channel provided within
a municipality for that period. However, "gross charge" shall
not include any of the following:
(1) Any amounts added to a purchaser's bill because of
a charge made pursuant to: (i) the tax imposed by this Act,
(ii) the tax imposed by the Telecommunications Excise Tax
Act, (iii) the tax imposed by Section 4251 of the Internal
Revenue Code, (iv) 911 surcharges, or (v) charges added to
customers' bills pursuant to the provisions of Section
9-221 or 9-222 of the Public Utilities Act, as amended, or
any similar charges added to customers' bills by retailers
who are not subject to rate regulation by the Illinois
Commerce Commission for the purpose of recovering any of
the tax liabilities or other amounts specified in those


provisions of the Public Utilities Act.
(2) Charges for a sent collect telecommunication
received outside of such municipality.
(3) Charges for leased time on equipment or charges
for the storage of data or information for subsequent
retrieval or the processing of data or information
intended to change its form or content. Such equipment
includes, but is not limited to, the use of calculators,
computers, data processing equipment, tabulating equipment
or accounting equipment and also includes the usage of
computers under a time-sharing agreement.
(4) Charges for customer equipment, including such
equipment that is leased or rented by the customer from
any source, wherein such charges are disaggregated and
separately identified from other charges.
(5) Charges to business enterprises certified as
exempt under Section 9-222.1 of the Public Utilities Act
to the extent of such exemption and during the period of
time specified by the Department of Commerce and Economic
Opportunity.
(5.1) Charges to business enterprises certified under
Section 95 of the Reimagining Energy and Vehicles in
Illinois Act, to the extent of the exemption and during
the period of time specified by the Department of Commerce
and Economic Opportunity.
(5.2) Charges to business enterprises certified under


Section 110-95 of the Manufacturing Illinois Chips for
Real Opportunity (MICRO) Act, to the extent of the
exemption and during the period of time specified by the
Department of Commerce and Economic Opportunity.
(5.3) Charges to entities certified under Section
605-1115 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of
Illinois to the extent of the exemption and during the
period of time specified by the Department of Commerce and
Economic Opportunity.
(6) Charges for telecommunications and all services
and equipment provided in connection therewith between a
parent corporation and its wholly owned subsidiaries or
between wholly owned subsidiaries when the tax imposed
under this Act has already been paid to a retailer and only
to the extent that the charges between the parent
corporation and wholly owned subsidiaries or between
wholly owned subsidiaries represent expense allocation
between the corporations and not the generation of profit
for the corporation rendering such service.
(7) Bad debts ("bad debt" means any portion of a debt
that is related to a sale at retail for which gross charges
are not otherwise deductible or excludable that has become
worthless or uncollectible, as determined under applicable
federal income tax standards; if the portion of the debt
deemed to be bad is subsequently paid, the retailer shall


report and pay the tax on that portion during the
reporting period in which the payment is made).
(8) Charges paid by inserting coins in coin-operated
telecommunication devices.
(9) Amounts paid by telecommunications retailers under
the Telecommunications Infrastructure Maintenance Fee Act.
(10) Charges for nontaxable services or
telecommunications if (i) those charges are aggregated
with other charges for telecommunications that are
taxable, (ii) those charges are not separately stated on
the customer bill or invoice, and (iii) the retailer can
reasonably identify the nontaxable charges on the
retailer's books and records kept in the regular course of
business. If the nontaxable charges cannot reasonably be
identified, the gross charge from the sale of both taxable
and nontaxable services or telecommunications billed on a
combined basis shall be attributed to the taxable services
or telecommunications. The burden of proving nontaxable
charges shall be on the retailer of the
telecommunications.
"Interstate telecommunications" means all
telecommunications that either originate or terminate outside
this State.
"Intrastate telecommunications" means all
telecommunications that originate and terminate within this
State.


"Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court, the Federal and State governments,
including State universities created by statute, or any city,
town, county, or other political subdivision of this State.
"Purchase at retail" means the acquisition, consumption or
use of telecommunications through a sale at retail.
"Retailer" means and includes every person engaged in the
business of making sales at retail as defined in this Section.
The Department may, in its discretion, upon application,
authorize the collection of the tax hereby imposed by any
retailer not maintaining a place of business within this
State, who, to the satisfaction of the Department, furnishes
adequate security to insure collection and payment of the tax.
Such retailer shall be issued, without charge, a permit to
collect such tax. When so authorized, it shall be the duty of
such retailer to collect the tax upon all of the gross charges
for telecommunications in this State in the same manner and
subject to the same requirements as a retailer maintaining a
place of business within this State. The permit may be revoked
by the Department at its discretion.
"Retailer maintaining a place of business in this State",
or any like term, means and includes any retailer having or
maintaining within this State, directly or by a subsidiary, an


office, distribution facilities, transmission facilities,
sales office, warehouse or other place of business, or any
agent or other representative operating within this State
under the authority of the retailer or its subsidiary,
irrespective of whether such place of business or agent or
other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State.
"Sale at retail" means the transmitting, supplying or
furnishing of telecommunications and all services and
equipment provided in connection therewith for a
consideration, to persons other than the Federal and State
governments, and State universities created by statute and
other than between a parent corporation and its wholly owned
subsidiaries or between wholly owned subsidiaries for their
use or consumption and not for resale.
"Service address" means the location of telecommunications
equipment from which telecommunications services are
originated or at which telecommunications services are
received by a taxpayer. In the event this may not be a defined
location, as in the case of mobile phones, paging systems, and
maritime systems, service address means the customer's place
of primary use as defined in the Mobile Telecommunications
Sourcing Conformity Act. For air-to-ground systems and the
like, "service address" shall mean the location of a
taxpayer's primary use of the telecommunications equipment as


defined by telephone number, authorization code, or location
in Illinois where bills are sent.
"Taxpayer" means a person who individually or through his
or her agents, employees, or permittees engages in the act or
privilege of originating or receiving telecommunications in a
municipality and who incurs a tax liability as authorized by
this Act.
"Telecommunications", in addition to the meaning
ordinarily and popularly ascribed to it, includes, without
limitation, messages or information transmitted through use of
local, toll, and wide area telephone service, private line
services, channel services, telegraph services,
teletypewriter, computer exchange services, cellular mobile
telecommunications service, specialized mobile radio,
stationary two-way radio, paging service, or any other form of
mobile and portable one-way or two-way communications, or any
other transmission of messages or information by electronic or
similar means, between or among points by wire, cable, fiber
optics, laser, microwave, radio, satellite, or similar
facilities. As used in this Act, "private line" means a
dedicated non-traffic sensitive service for a single customer,
that entitles the customer to exclusive or priority use of a
communications channel or group of channels, from one or more
specified locations to one or more other specified locations.
The definition of "telecommunications" shall not include value
added services in which computer processing applications are


used to act on the form, content, code, and protocol of the
information for purposes other than transmission.
"Telecommunications" shall not include purchases of
telecommunications by a telecommunications service provider
for use as a component part of the service provided by such
provider to the ultimate retail consumer who originates or
terminates the taxable end-to-end communications. Carrier
access charges, right of access charges, charges for use of
inter-company facilities, and all telecommunications resold in
the subsequent provision of, used as a component of, or
integrated into, end-to-end telecommunications service shall
be non-taxable as sales for resale. Prepaid telephone calling
arrangements shall not be considered "telecommunications"
subject to the tax imposed under this Act. For purposes of this
Section, "prepaid telephone calling arrangements" means that
term as defined in Section 2-27 of the Retailers' Occupation
Tax Act.
(Source: P.A. 102-1125, eff. 2-3-23.)
Section 75. The Electricity Excise Tax Law is amended by
changing Section 2-4 as follows:
(35 ILCS 640/2-4)
Sec. 2-4. Tax imposed.
(a) Except as provided in subsection (b), a tax is imposed
on the privilege of using in this State electricity purchased


for use or consumption and not for resale, other than by
municipal corporations owning and operating a local
transportation system for public service, at the following
rates per kilowatt-hour delivered to the purchaser:
(i) For the first 2000 kilowatt-hours used or consumed
in a month: 0.330 cents per kilowatt-hour;
(ii) For the next 48,000 kilowatt-hours used or
consumed in a month: 0.319 cents per kilowatt-hour;
(iii) For the next 50,000 kilowatt-hours used or
consumed in a month: 0.303 cents per kilowatt-hour;
(iv) For the next 400,000 kilowatt-hours used or
consumed in a month: 0.297 cents per kilowatt-hour;
(v) For the next 500,000 kilowatt-hours used or
consumed in a month: 0.286 cents per kilowatt-hour;
(vi) For the next 2,000,000 kilowatt-hours used or
consumed in a month: 0.270 cents per kilowatt-hour;
(vii) For the next 2,000,000 kilowatt-hours used or
consumed in a month: 0.254 cents per kilowatt-hour;
(viii) For the next 5,000,000 kilowatt-hours used or
consumed in a month: 0.233 cents per kilowatt-hour;
(ix) For the next 10,000,000 kilowatt-hours used or
consumed in a month: 0.207 cents per kilowatt-hour;
(x) For all electricity in excess of 20,000,000
kilowatt-hours used or consumed in a month: 0.202 cents
per kilowatt-hour.
Provided, that in lieu of the foregoing rates, the tax is


imposed on a self-assessing purchaser at the rate of 5.1% of
the self-assessing purchaser's purchase price for all
electricity distributed, supplied, furnished, sold,
transmitted and delivered to the self-assessing purchaser in a
month.
(b) A tax is imposed on the privilege of using in this
State electricity purchased from a municipal system or
electric cooperative, as defined in Article XVII of the Public
Utilities Act, which has not made an election as permitted by
either Section 17-200 or Section 17-300 of such Act, at the
lesser of 0.32 cents per kilowatt hour of all electricity
distributed, supplied, furnished, sold, transmitted, and
delivered by such municipal system or electric cooperative to
the purchaser or 5% of each such purchaser's purchase price
for all electricity distributed, supplied, furnished, sold,
transmitted, and delivered by such municipal system or
electric cooperative to the purchaser, whichever is the lower
rate as applied to each purchaser in each billing period.
(c) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity by business enterprises
certified under Section 9-222.1 or 9-222.1A of the Public
Utilities Act, as amended, to the extent of such exemption and
during the time specified by the Department of Commerce and
Economic Opportunity; or with respect to any transaction in
interstate commerce, or otherwise, to the extent to which such
transaction may not, under the Constitution and statutes of


the United States, be made the subject of taxation by this
State.
(d) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity at a REV Illinois Project
site that has received a certification for tax exemption from
the Department of Commerce and Economic Opportunity pursuant
to Section 95 of the Reimagining Energy and Vehicles in
Illinois Act, to the extent of such exemption, which shall be
no more than 10 years.
(e) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity at a project site that has
received a certification for tax exemption from the Department
of Commerce and Economic Opportunity pursuant to the
Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
to the extent of such exemption, which shall be no more than 10
years.
(f) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity at a quantum computing
campus that has received a certification for tax exemption
from the Department of Commerce and Economic Opportunity
pursuant to Section 605-1115 of the Department of Commerce and
Economic Opportunity Law of the Civil Administrative Code of
Illinois to the extent of the exemption and during the period
of time specified by the Department of Commerce and Economic
Opportunity.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;


102-1125, eff. 2-3-23.)
Section 80. The River Edge Redevelopment Zone Act is
amended by changing Sections 10-4, 10-5.3, 10-10.3, and
10-10.4 as follows:
(65 ILCS 115/10-4)
Sec. 10-4. Qualifications for River Edge Redevelopment
Zones.  An area is qualified to become a zone if it:
(1) is a contiguous area adjacent to or surrounding a
river;
(2) comprises a minimum of one half square mile and
not more than 12 square miles, exclusive of lakes and
waterways;
(3) satisfies any additional criteria established by
the Department consistent with the purposes of this Act;
(4) is entirely within a single municipality; and
(5) has at least 100 acres of environmentally
challenged land within 1500 yards of the riverfront.
Any River Edge Redevelopment Zone may have an overlapping
geographic area with an Enterprise Zone. If a taxpayer is
located in an area with an overlapping Enterprise Zone and
River Edge Redevelopment Zone, the taxpayer must elect, in the
form and manner required by the Department, from which program
it would like to request benefits.
(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)


(65 ILCS 115/10-5.3)
Sec. 10-5.3. Certification of River Edge Redevelopment
Zones.
(a) Approval of designated River Edge Redevelopment Zones
shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each zone upon its approval. The certificate
shall be signed by the Director of the Department, shall make
specific reference to the designating ordinance, which shall
be attached thereto, and shall be filed in the office of the
Secretary of State. A certified copy of the River Edge
Redevelopment Zone Certificate, or a duplicate original
thereof, shall be recorded in the office of the recorder of
deeds of the county in which the River Edge Redevelopment Zone
lies.
(b) A River Edge Redevelopment Zone shall be effective
upon its certification. The Department shall transmit a copy
of the certification to the Department of Revenue, and to the
designating municipality. Upon certification of a River Edge
Redevelopment Zone, the terms and provisions of the
designating ordinance shall be in effect, and may not be
amended or repealed except in accordance with Section 10-5.4.
(c) A River Edge Redevelopment Zone shall be in effect for
the period stated in the certificate, which shall in no event
exceed 30 calendar years. Zones shall terminate at midnight of


December 31 of the final calendar year of the certified term,
except as provided in Section 10-5.4.
(d) In calendar years 2006 and 2007, the Department may
certify one pilot River Edge Redevelopment Zone in the City of
East St. Louis, one pilot River Edge Redevelopment Zone in the
City of Rockford, and one pilot River Edge Redevelopment Zone
in the City of Aurora.
In calendar year 2009, the Department may certify one
pilot River Edge Redevelopment Zone in the City of Elgin.
On or after the effective date of this amendatory Act of
the 97th General Assembly, the Department may certify one
additional pilot River Edge Redevelopment Zone in the City of
Peoria.
On or after the effective date of this amendatory Act of
the 103rd General Assembly, the Department may certify 2
additional pilot River Edge Redevelopment Zones, including one
in the City of Joliet and one in the City of Kankakee.
On or after the effective date of this amendatory Act of
the 103rd General Assembly, the Department may certify 7
additional pilot River Edge Redevelopment Zones, including one
in the City of East Moline, one in the City of Moline, one in
the City of Ottawa, one in the City of LaSalle, one in the City
of Peru, one in the City of Rock Island, and one in the City of
Quincy.
After certifying the additional pilot River Edge
Redevelopment Zones authorized by the above paragraphs, the


Department may not certify any additional River Edge
Redevelopment Zones, but it may amend and rescind
certifications of existing River Edge Redevelopment Zones in
accordance with Section 10-5.4, except that no River Edge
Redevelopment Zone may be extended on or after the effective
date of this amendatory Act of the 97th General Assembly. Each
River Edge Redevelopment Zone in existence on the effective
date of this amendatory Act of the 97th General Assembly shall
continue until its scheduled termination under this Act,
unless the Zone is decertified sooner. At the time of its term
expiration each River Edge Redevelopment Zone will become an
open enterprise zone, available for the previously designated
area or a different area to compete for designation as an
enterprise zone. No preference for designation as a Zone will
be given to the previously designated area.
(e) A municipality in which a River Edge Redevelopment
Zone has been certified must submit to the Department, within
60 days after the certification, a plan for encouraging the
participation by minority persons, women, persons with
disabilities, and veterans in the zone. The Department may
assist the municipality in developing and implementing the
plan. The terms "minority person", "woman", and "person with a
disability" have the meanings set forth under Section 2 of the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act. "Veteran" means an Illinois resident who is
a veteran as defined in subsection (h) of Section 1491 of Title


10 of the United States Code.
(Source: P.A. 103-9, eff. 6-7-23.)
(65 ILCS 115/10-10.3)
Sec. 10-10.3. River Edge Construction Jobs Credit.
(a) Beginning on January 1, 2021, a business entity may
receive a tax credit against the tax imposed under subsections
(a) and (b) of Section 201 in an amount equal to 50% (or 75% if
the project is located in an underserved area) of the amount of
the incremental income tax attributable to River Edge
construction jobs employees employed in the course of
completing a River Edge construction jobs project. The credit
allowed under this Section shall apply only to taxpayers that
make a capital investment of at least $1,000,000 in a
qualified rehabilitation plan.
(b) A business entity seeking a credit under this Section
must submit an application to the Department describing the
nature and benefit of the River Edge construction jobs project
to the qualified rehabilitation project and the River Edge
Redevelopment Zone. The Department may adopt any necessary
rules in order to administer the provisions of this Section.
(c) Within 45 days after the receipt of an application,
the Department shall give notice to the applicant as to
whether the application has been approved or disapproved. If
the Department disapproves the application, it shall specify
the reasons for this decision and allow 60 days for the


applicant to amend and resubmit its application. The
Department shall provide assistance upon request to
applicants. Resubmitted applications shall receive the
Department's approval or disapproval within 30 days of
resubmission. Those resubmitted applications satisfying
initial Department objectives shall be approved unless
reasonable circumstances warrant disapproval.
(d) On an annual basis, the designated zone organization
shall furnish a statement to the Department on the
programmatic and financial status of any approved project and
an audited financial statement of the project.
(e) The Department shall certify to the Department of
Revenue the identity of the taxpayers who are eligible for
River Edge construction jobs credits and the amounts of River
Edge construction jobs credits awarded in each taxable year.
(f) (Blank). The Department, in collaboration with the
Department of Labor, shall require certified payroll
reporting, pursuant to Section 10-10.4 of this Act, be
completed in order to verify the wages and any other necessary
information which the Department may deem necessary to
ascertain and certify the total number of River Edge
construction jobs employees and determine the amount of a
River Edge construction jobs credit.
(g) The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of this amendatory Act of
the 101st General Assembly) shall not exceed $20,000,000 in


any State fiscal year.
(Source: P.A. 101-9, eff. 6-5-19.)
(65 ILCS 115/10-10.4)
Sec. 10-10.4. Certified payroll. Any taxpayer seeking Any
contractor and each subcontractor who is engaged in and is
executing a River Edge construction job tax credits must jobs
project for a taxpayer that is entitled to a credit pursuant to
Section 10-10.3 of this Act shall:
(1) annually, until construction is completed, submit
a report that, at a minimum, describes the projected
project scope, timeline, and anticipated budget; once the
project has commenced, the annual report shall include
actual data for the prior year as well as projections for
each additional year through completion of the project;
the Department shall issue detailed reporting guidelines
prescribing the requirements of construction-related
reports; and
(2) provide the Department with evidence that a
certified third-party executed an Agreed-Upon Procedure
(AUP) verifying the construction expenses or accept the
standard construction wage expense estimated by the
Department; upon review of the final project scope,
timeline, budget, and AUP, the Department shall issue a
tax credit certificate reflecting a percentage of the
total construction job wages paid throughout the


completion of the project.
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for a River Edge Construction Jobs Project in
a River Edge Redevelopment Zone records of all laborers
and other workers employed by them on the project; the
records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the


Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed
for only those calendar months during which construction
on a River Edge Construction Jobs Project has occurred;
the certified payroll shall consist of a complete copy of
the records identified in paragraph (1), but may exclude
the starting and ending times of work each day; the
certified payroll shall be accompanied by a statement
signed by the contractor or subcontractor or an officer,
employee, or agent of the contractor or subcontractor
which avers that:
(A) he or she has examined the certified payroll
records required to be submitted and such records are
true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this Section,
and any officer, employee, or agent of such contractor or
subcontractor whose duty as an officer, employee, or agent it
is to file a certified payroll under this Section, who
willfully fails to file such a certified payroll on or before


the date such certified payroll is required to be filed and any
person who willfully files a false certified payroll that is
false as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this Section on or after
June 5, 2019 (the effective date of Public Act 101-9) for a
period of 5 years from the date of the last payment for work on
a contract or subcontract for the project.
The records submitted in accordance with this Section
shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall accept any reasonable
submissions by the contractor that meet the requirements of
this Section and shall share the information with the
Department in order to comply with the awarding of River Edge
construction jobs credits. A contractor, subcontractor, or
public body may retain records required under this Section in
paper or electronic format.
Upon 7 business days' notice, the taxpayer contractor and
each subcontractor shall make available for inspection and
copying at a location within this State during reasonable
hours, the records identified in paragraph (1) of this Section
to the taxpayer in charge of the project, its officers and
agents, the Director of Labor and his or her deputies and


agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
Section 82. The Private Business and Vocational Schools
Act of 2012 is amended by changing Section 30 as follows:
(105 ILCS 426/30)
Sec. 30. Exemptions. For purposes of this Act, the
following shall not be considered to be a private business and
vocational school:
(1) Any institution devoted entirely to the teaching
of religion or theology.
(2) Any in-service program of study and subject
offered by an employer, provided that no tuition is
charged and the instruction is offered only to employees
of the employer.
(3) Any educational institution that (A) enrolls a
majority of its students in degree programs and has
maintained an accredited status with a regional
accrediting agency that is recognized by the U.S.
Department of Education or (B) enrolls students in one or
more bachelor-level programs, enrolls a majority of its
students in degree programs, and is accredited by a
national or regional accrediting agency that is recognized
by the U.S. Department of Education or that (i) is


regulated by the Board under the Private College Act or
the Academic Degree Act or is exempt from such regulation
under either the Private College Act or the Academic
Degree Act solely for the reason that the educational
institution was in operation on the effective date of
either the Private College Act or the Academic Degree Act
or (ii) is regulated by the State Board of Education.
(4) Any institution and the franchisees of that
institution that exclusively offer a program of study in
income tax theory or return preparation at a total
contract price of no more than $400, provided that the
total annual enrollment of the institution for all such
courses of instruction exceeds 500 students and further
provided that the total contract price for all instruction
offered to a student in any one calendar year does not
exceed $3,000.
(5) Any person or organization selling mediated
instruction products through a media, such as tapes,
compact discs, digital video discs, or similar media, so
long as the instruction is not intended to result in the
acquisition of training for a specific employment field,
is not intended to meet a qualification for licensure or
certification in an employment field, or is not intended
to provide credit that can be applied toward a certificate
or degree program.
(6) Schools with no physical presence in this State.


Schools offering instruction or programs of study, but
that have no physical presence in this State, are not
required to receive Board approval. Such an institution
must not be considered not to have a physical presence in
this State unless it has received a written finding from
the Board that it has no physical presence. In determining
whether an institution has no physical presence, the Board
shall require all of the following:
(A) Evidence of authorization to operate in at
least one other state and that the school is in good
standing with that state's authorizing agency.
(B) Evidence that the school has a means of
receiving and addressing student complaints in
compliance with any federal or state requirements.
(C) Evidence that the institution is providing no
instruction in this State.
(D) Evidence that the institution is not providing
core academic support services, including, but not
limited to, admissions, evaluation, assessment,
registration, financial aid, academic scheduling, and
faculty hiring and support in this State.
(7) A school or program within a school that
exclusively provides yoga instruction, yoga teacher
training, or both.
(8) Organizations that receive funding from the
Department of Commerce and Economic Opportunity for


workforce development preparation programs as provided for
in the Energy Transition Act and the Illinois Works Jobs
Program Act in which participants are not charged tuition.
This paragraph does not include public institutions of
higher education or private institutions of higher
education, as defined in the Board of Higher Education
Act, or community colleges, as defined in the Public
Community College Act. For purposes of this paragraph, the
Department of Commerce and Economic Opportunity shall
provide the Board of Higher Education a complete list of
all qualifying organizations under this paragraph on July
1 of each year.
(9) Labor organizations, as defined in Section 10 of
the Collective Bargaining Freedom Act, that sponsor a
United States Department of Labor registered
apprenticeship program.
(Source: P.A. 102-1046, eff. 6-7-22.)
Section 85. The Public Utilities Act is amended by
changing Section 9-222 as follows:
(220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
Sec. 9-222. Whenever a tax is imposed upon a public
utility engaged in the business of distributing, supplying,
furnishing, or selling gas for use or consumption pursuant to
Section 2 of the Gas Revenue Tax Act, or whenever a tax is


required to be collected by a delivering supplier pursuant to
Section 2-7 of the Electricity Excise Tax Act, or whenever a
tax is imposed upon a public utility pursuant to Section 2-202
of this Act, such utility may charge its customers, other than
customers who are high impact businesses under Section 5.5 of
the Illinois Enterprise Zone Act, customers who are certified
under Section 95 of the Reimagining Energy and Vehicles in
Illinois Act, manufacturers under the Manufacturing Illinois
Chips for Real Opportunity (MICRO) Act, customers who are
tenants in a quantum computing campus under Section 605-1115
of the Department of Commerce and Economic Opportunity Law of
the Civil Administrative Code of Illinois, or certified
business enterprises under Section 9-222.1 of this Act, to the
extent of such exemption and during the period in which such
exemption is in effect, in addition to any rate authorized by
this Act, an additional charge equal to the total amount of
such taxes. The exemption of this Section relating to high
impact businesses shall be subject to the provisions of
subsections (a), (b), and (b-5) of Section 5.5 of the Illinois
Enterprise Zone Act. This requirement shall not apply to taxes
on invested capital imposed pursuant to the Messages Tax Act,
the Gas Revenue Tax Act and the Public Utilities Revenue Act.
Such utility shall file with the Commission a supplemental
schedule which shall specify such additional charge and which
shall become effective upon filing without further notice.
Such additional charge shall be shown separately on the


utility bill to each customer. The Commission shall have the
power to investigate whether or not such supplemental schedule
correctly specifies such additional charge, but shall have no
power to suspend such supplemental schedule. If the Commission
finds, after a hearing, that such supplemental schedule does
not correctly specify such additional charge, it shall by
order require a refund to the appropriate customers of the
excess, if any, with interest, in such manner as it shall deem
just and reasonable, and in and by such order shall require the
utility to file an amended supplemental schedule corresponding
to the finding and order of the Commission. Except with
respect to taxes imposed on invested capital, such tax
liabilities shall be recovered from customers solely by means
of the additional charges authorized by this Section.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
102-1125, eff. 2-3-23.)