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Illinois House Bill HB5005

Illinois 2023-2024 Regular Session

Illinois House Bill HB5005 Compare Versions

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1-Public Act 103-0595
21 HB5005 EnrolledLRB103 37016 SPS 67131 b HB5005 Enrolled LRB103 37016 SPS 67131 b
32 HB5005 Enrolled LRB103 37016 SPS 67131 b
4-AN ACT concerning State government.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Department of Commerce and Economic
8-Opportunity Law of the Civil Administrative Code of Illinois
9-is amended by adding Section 605-1115 as follows:
10-(20 ILCS 605/605-1115 new)
11-Sec. 605-1115. Quantum computing campuses.
12-(a) As used in this Section:
13-"Data center" means a facility: (1) whose primary services
14-are the storage, management, and processing of digital data;
15-and (2) that is used to house (A) computer and network systems,
16-including associated components such as servers, network
17-equipment and appliances, telecommunications, and data storage
18-systems, (B) systems for monitoring and managing
19-infrastructure performance, (C) Internet-related equipment and
20-services, (D) data communications connections, (E)
21-environmental controls, (F) fire protection systems, and (G)
22-security systems and services.
23-"Full-time equivalent job" means a job in which an
24-employee works for a tenant of the quantum campus at a rate of
25-at least 35 hours per week. Vacations, paid holidays, and sick
26-time are included in this computation. Overtime is not
3+1 AN ACT concerning State government.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Department of Commerce and Economic
7+5 Opportunity Law of the Civil Administrative Code of Illinois
8+6 is amended by adding Section 605-1115 as follows:
9+7 (20 ILCS 605/605-1115 new)
10+8 Sec. 605-1115. Quantum computing campuses.
11+9 (a) As used in this Section:
12+10 "Data center" means a facility: (1) whose primary services
13+11 are the storage, management, and processing of digital data;
14+12 and (2) that is used to house (A) computer and network systems,
15+13 including associated components such as servers, network
16+14 equipment and appliances, telecommunications, and data storage
17+15 systems, (B) systems for monitoring and managing
18+16 infrastructure performance, (C) Internet-related equipment and
19+17 services, (D) data communications connections, (E)
20+18 environmental controls, (F) fire protection systems, and (G)
21+19 security systems and services.
22+20 "Full-time equivalent job" means a job in which an
23+21 employee works for a tenant of the quantum campus at a rate of
24+22 at least 35 hours per week. Vacations, paid holidays, and sick
25+23 time are included in this computation. Overtime is not
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33-considered a part of regular hours.
34-"Quantum computing campus" or "campus" is a contiguous
35-area located in the State of Illinois that is designated by the
36-Department as a quantum computing campus in order to support
37-the demand for quantum computing research, development, and
38-implementation for practical use. A quantum computing campus
39-may include educational intuitions, nonprofit research and
40-development organizations, and for-profit organizations
41-serving as anchor tenants and joining tenants that, with
42-approval from the Department, may change. Tenants located at
43-the campus shall have direct and supporting roles in quantum
44-computing activities. Eligible tenants include quantum
45-computer operators and research facilities, data centers,
46-manufacturers and assemblers of quantum computers and
47-component parts, cryogenic or refrigeration facilities, and
48-other facilities determined, by industry and academic leaders,
49-to be fundamental to the research and development of quantum
50-computing for practical solutions. Quantum computing shall
51-include the research, development, and use of computing
52-methods that generate and manipulate quantum bits in a
53-controlled quantum state. This includes the use of photons,
54-semiconductors, superconductors, trapped ions, and other
55-industry and academically regarded methods for simulating
56-quantum bits. Additionally, a quantum campus shall meet the
57-following criteria:
58-(1) the campus must comprise a minimum of one-half
59-
60-
61-square mile and not more than 4 square miles;
62-(2) the campus must contain tenants that demonstrate a
63-substantial plan for using the designation to encourage
64-participation by organizations owned by minorities, women,
65-and persons with disabilities, as those terms are defined
66-in the Business Enterprise for Minorities, Women, and
67-Persons with Disabilities Act, and the hiring of
68-minorities, women, and persons with disabilities;
69-(3) upon being placed in service, within 60 months
70-after designation or incorporation into a campus, the
71-owners of property located in a campus shall certify to
72-the Department that the property is carbon neutral or has
73-attained certification under one or more of the following
74-green building standards:
75-(A) BREEAM for New Construction or BREEAM, In-Use;
76-(B) ENERGY STAR;
77-(C) Envision;
78-(D) ISO 50001-energy management;
79-(E) LEED for Building Design and Construction, or
80-LEED for Operations and Maintenance;
81-(F) Green Globes for New Construction, or Green
82-Globes for Existing Buildings;
83-(G) UL 3223; or
84-(H) an equivalent program approved by the
85-Department.
86-(b) Tenants located in a designated quantum computing
87-
88-
89-campus shall qualify for the following exemptions and credits:
90-(1) the Department may certify a taxpayer for an
91-exemption from any State or local use tax or retailers'
92-occupation tax on building materials that will be
93-incorporated into real estate at a quantum computing
94-campus;
95-(2) an exemption from the charges imposed under
96-Section 9-222 of the Public Utilities Act, Section 5-10 of
97-the Gas Use Tax Law, Section 2-4 of the Electricity Excise
98-Tax Law, Section 2 of the Telecommunications Excise Tax
99-Act, Section 10 of the Telecommunications Infrastructure
100-Maintenance Fee Act, and Section 5-7 of the Simplified
101-Municipal Telecommunications Tax Act; and
102-(3) a credit against the taxes imposed under
103-subsections (a) and (b) of Section 201 of the Illinois
104-Income Tax Act as provided in Section 241 of the Illinois
105-Income Tax Act.
106-(c) Certificates of exemption and credit certificates
107-under this Section shall be issued by the Department. Upon
108-certification by the Department under this Section, the
109-Department shall notify the Department of Revenue of the
110-certification. The exemption status shall take effect within 3
111-months after certification of the taxpayer and notice to the
112-Department of Revenue by the Department.
113-(d) Entities seeking to form a quantum computing campus
114-must apply to the Department in the manner specified by the
115-
116-
117-Department. Entities seeking to join an established campus
118-must apply for an amendment to the existing campus. This
119-application for amendment must be submitted to the Department
120-with support from other campus members.
121-The Department shall determine the duration of
122-certificates of exemption awarded under this Act. The duration
123-of the certificates of exemption may not exceed 20 calendar
124-years and one renewal for an additional 20 years.
125-The Department and any tenant located in a quantum
126-computing campus seeking the benefits under this Section must
127-enter into a memorandum of understanding that, at a minimum,
128-provides:
129-(1) the details for determining the amount of capital
130-investment to be made;
131-(2) the number of new jobs created;
132-(3) the timeline for achieving the capital investment
133-and new job goals;
134-(4) the repayment obligation should those goals not be
135-achieved and any conditions under which repayment by the
136-tenant or tenants claiming the exemption shall be
137-required;
138-(5) the duration of the exemptions; and
139-(6) other provisions as deemed necessary by the
140-Department.
141-The Department shall, within 10 days after the
142-designation, send a letter of notification to each member of
143-
144-
145-the General Assembly whose legislative district or
146-representative district contains all or part of the designated
147-area.
148-(e) Beginning on July 1, 2025, and each year thereafter,
149-the Department shall annually report to the Governor and the
150-General Assembly on the outcomes and effectiveness of this
151-amendatory Act of the 103rd General Assembly. The report shall
152-include the following:
153-(1) the names of each tenant located within the
154-quantum computing campus;
155-(2) the location of each quantum computing campus;
156-(3) the estimated value of the credits to be issued to
157-quantum computing campus tenants;
158-(4) the number of new jobs and, if applicable,
159-retained jobs pledged at each quantum computing campus;
160-and
161-(5) whether or not the quantum computing campus is
162-located in an underserved area, an energy transition zone,
163-or an opportunity zone.
164-(f) Tenants at the quantum computing campus seeking a
165-certificate of exemption related to the construction of
166-required facilities shall require the contractor and all
167-subcontractors to:
168-(1) comply with the requirements of Section 30-22 of
169-the Illinois Procurement Code as those requirements apply
170-to responsible bidders and to present satisfactory
171-
172-
173-evidence of that compliance to the Department; and
174-(2) enter into a project labor agreement submitted to
175-the Department.
176-(g) The Department shall not issue any new certificates of
177-exemption under the provisions of this Section after July 1,
178-2030. This sunset shall not affect any existing certificates
179-of exemption in effect on July 1, 2030.
180-(h) The Department shall adopt rules to implement and
181-administer this Section.
182-Section 10. The Illinois Enterprise Zone Act is amended by
183-changing Sections 5.5 and 13 as follows:
184-(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
185-Sec. 5.5. High Impact Business.
186-(a) In order to respond to unique opportunities to assist
187-in the encouragement, development, growth, and expansion of
188-the private sector through large scale investment and
189-development projects, the Department is authorized to receive
190-and approve applications for the designation of "High Impact
191-Businesses" in Illinois, for an initial term of 20 years with
192-an option for renewal for a term not to exceed 20 years,
193-subject to the following conditions:
194-(1) such applications may be submitted at any time
195-during the year;
196-(2) such business is not located, at the time of
197-
198-
199-designation, in an enterprise zone designated pursuant to
200-this Act, except for grocery stores, as defined in the
201-Grocery Initiative Act;
202-(3) the business intends to do, commits to do, or is
203-one or more of the following:
204-(A) the business intends to make a minimum
205-investment of $12,000,000 which will be placed in
206-service in qualified property and intends to create
207-500 full-time equivalent jobs at a designated location
208-in Illinois or intends to make a minimum investment of
209-$30,000,000 which will be placed in service in
210-qualified property and intends to retain 1,500
211-full-time retained jobs at a designated location in
212-Illinois. The terms "placed in service" and "qualified
213-property" have the same meanings as described in
214-subsection (h) of Section 201 of the Illinois Income
215-Tax Act; or
216-(B) the business intends to establish a new
217-electric generating facility at a designated location
218-in Illinois. "New electric generating facility", for
219-purposes of this Section, means a newly constructed
220-electric generation plant or a newly constructed
221-generation capacity expansion at an existing electric
222-generation plant, including the transmission lines and
223-associated equipment that transfers electricity from
224-points of supply to points of delivery, and for which
225-
226-
227-such new foundation construction commenced not sooner
228-than July 1, 2001. Such facility shall be designed to
229-provide baseload electric generation and shall operate
230-on a continuous basis throughout the year; and (i)
231-shall have an aggregate rated generating capacity of
232-at least 1,000 megawatts for all new units at one site
233-if it uses natural gas as its primary fuel and
234-foundation construction of the facility is commenced
235-on or before December 31, 2004, or shall have an
236-aggregate rated generating capacity of at least 400
237-megawatts for all new units at one site if it uses coal
238-or gases derived from coal as its primary fuel and
239-shall support the creation of at least 150 new
240-Illinois coal mining jobs, or (ii) shall be funded
241-through a federal Department of Energy grant before
242-December 31, 2010 and shall support the creation of
243-Illinois coal mining coal-mining jobs, or (iii) shall
244-use coal gasification or integrated
245-gasification-combined cycle units that generate
246-electricity or chemicals, or both, and shall support
247-the creation of Illinois coal mining coal-mining jobs.
248-The term "placed in service" has the same meaning as
249-described in subsection (h) of Section 201 of the
250-Illinois Income Tax Act; or
251-(B-5) the business intends to establish a new
252-gasification facility at a designated location in
253-
254-
255-Illinois. As used in this Section, "new gasification
256-facility" means a newly constructed coal gasification
257-facility that generates chemical feedstocks or
258-transportation fuels derived from coal (which may
259-include, but are not limited to, methane, methanol,
260-and nitrogen fertilizer), that supports the creation
261-or retention of Illinois coal mining coal-mining jobs,
262-and that qualifies for financial assistance from the
263-Department before December 31, 2010. A new
264-gasification facility does not include a pilot project
265-located within Jefferson County or within a county
266-adjacent to Jefferson County for synthetic natural gas
267-from coal; or
268-(C) the business intends to establish production
269-operations at a new coal mine, re-establish production
270-operations at a closed coal mine, or expand production
271-at an existing coal mine at a designated location in
272-Illinois not sooner than July 1, 2001; provided that
273-the production operations result in the creation of
274-150 new Illinois coal mining jobs as described in
275-subdivision (a)(3)(B) of this Section, and further
276-provided that the coal extracted from such mine is
277-utilized as the predominant source for a new electric
278-generating facility. The term "placed in service" has
279-the same meaning as described in subsection (h) of
280-Section 201 of the Illinois Income Tax Act; or
281-
282-
283-(D) the business intends to construct new
284-transmission facilities or upgrade existing
285-transmission facilities at designated locations in
286-Illinois, for which construction commenced not sooner
287-than July 1, 2001. For the purposes of this Section,
288-"transmission facilities" means transmission lines
289-with a voltage rating of 115 kilovolts or above,
290-including associated equipment, that transfer
291-electricity from points of supply to points of
292-delivery and that transmit a majority of the
293-electricity generated by a new electric generating
294-facility designated as a High Impact Business in
295-accordance with this Section. The term "placed in
296-service" has the same meaning as described in
297-subsection (h) of Section 201 of the Illinois Income
298-Tax Act; or
299-(E) the business intends to establish a new wind
300-power facility at a designated location in Illinois.
301-For purposes of this Section, "new wind power
302-facility" means a newly constructed electric
303-generation facility, a newly constructed expansion of
304-an existing electric generation facility, or the
305-replacement of an existing electric generation
306-facility, including the demolition and removal of an
307-electric generation facility irrespective of whether
308-it will be replaced, placed in service or replaced on
309-
310-
311-or after July 1, 2009, that generates electricity
312-using wind energy devices, and such facility shall be
313-deemed to include any permanent structures associated
314-with the electric generation facility and all
315-associated transmission lines, substations, and other
316-equipment related to the generation of electricity
317-from wind energy devices. For purposes of this
318-Section, "wind energy device" means any device, with a
319-nameplate capacity of at least 0.5 megawatts, that is
320-used in the process of converting kinetic energy from
321-the wind to generate electricity; or
322-(E-5) the business intends to establish a new
323-utility-scale solar facility at a designated location
324-in Illinois. For purposes of this Section, "new
325-utility-scale solar power facility" means a newly
326-constructed electric generation facility, or a newly
327-constructed expansion of an existing electric
328-generation facility, placed in service on or after
329-July 1, 2021, that (i) generates electricity using
330-photovoltaic cells and (ii) has a nameplate capacity
331-that is greater than 5,000 kilowatts, and such
332-facility shall be deemed to include all associated
333-transmission lines, substations, energy storage
334-facilities, and other equipment related to the
335-generation and storage of electricity from
336-photovoltaic cells; or
337-
338-
339-(F) the business commits to (i) make a minimum
340-investment of $500,000,000, which will be placed in
341-service in a qualified property, (ii) create 125
342-full-time equivalent jobs at a designated location in
343-Illinois, (iii) establish a fertilizer plant at a
344-designated location in Illinois that complies with the
345-set-back standards as described in Table 1: Initial
346-Isolation and Protective Action Distances in the 2012
347-Emergency Response Guidebook published by the United
348-States Department of Transportation, (iv) pay a
349-prevailing wage for employees at that location who are
350-engaged in construction activities, and (v) secure an
351-appropriate level of general liability insurance to
352-protect against catastrophic failure of the fertilizer
353-plant or any of its constituent systems; in addition,
354-the business must agree to enter into a construction
355-project labor agreement including provisions
356-establishing wages, benefits, and other compensation
357-for employees performing work under the project labor
358-agreement at that location; for the purposes of this
359-Section, "fertilizer plant" means a newly constructed
360-or upgraded plant utilizing gas used in the production
361-of anhydrous ammonia and downstream nitrogen
362-fertilizer products for resale; for the purposes of
363-this Section, "prevailing wage" means the hourly cash
364-wages plus fringe benefits for training and
365-
366-
367-apprenticeship programs approved by the U.S.
368-Department of Labor, Bureau of Apprenticeship and
369-Training, health and welfare, insurance, vacations and
370-pensions paid generally, in the locality in which the
371-work is being performed, to employees engaged in work
372-of a similar character on public works; this paragraph
373-(F) applies only to businesses that submit an
374-application to the Department within 60 days after
375-July 25, 2013 (the effective date of Public Act
376-98-109); or
377-(G) the business intends to establish a new
378-cultured cell material food production facility at a
379-designated location in Illinois. As used in this
380-paragraph (G):
381-"Cultured cell material food production facility"
382-means a facility (i) at which cultured animal cell
383-food is developed using animal cell culture
384-technology, (ii) at which production processes occur
385-that include the establishment of cell lines and cell
386-banks, manufacturing controls, and all components and
387-inputs, and (iii) that complies with all existing
388-registrations, inspections, licensing, and approvals
389-from all applicable and participating State and
390-federal food agencies, including the Department of
391-Agriculture, the Department of Public Health, and the
392-United States Food and Drug Administration, to ensure
393-
394-
395-that all food production is safe and lawful under
396-provisions of the Federal Food, Drug and Cosmetic Act
397-related to the development, production, and storage of
398-cultured animal cell food.
399-"New cultured cell material food production
400-facility" means a newly constructed cultured cell
401-material food production facility that is placed in
402-service on or after June 7, 2023 (the effective date of
403-Public Act 103-9) this amendatory Act of the 103rd
404-General Assembly or a newly constructed expansion of
405-an existing cultured cell material food production
406-facility, in a controlled environment, when the
407-improvements are placed in service on or after June 7,
408-2023 (the effective date of Public Act 103-9) this
409-amendatory Act of the 103rd General Assembly; or and
410-(H) (G) the business is an existing or planned
411-grocery store, as that term is defined in Section 5 of
412-the Grocery Initiative Act, and receives financial
413-support under that Act within the 10 years before
414-submitting its application under this Act; and
415-(4) no later than 90 days after an application is
416-submitted, the Department shall notify the applicant of
417-the Department's determination of the qualification of the
418-proposed High Impact Business under this Section.
419-(b) Businesses designated as High Impact Businesses
420-pursuant to subdivision (a)(3)(A) of this Section shall
421-
422-
423-qualify for the credits and exemptions described in the
424-following Acts: Section 9-222 and Section 9-222.1A of the
425-Public Utilities Act, subsection (h) of Section 201 of the
426-Illinois Income Tax Act, and Section 1d of the Retailers'
427-Occupation Tax Act; provided that these credits and exemptions
428-described in these Acts shall not be authorized until the
429-minimum investments set forth in subdivision (a)(3)(A) of this
430-Section have been placed in service in qualified properties
431-and, in the case of the exemptions described in the Public
432-Utilities Act and Section 1d of the Retailers' Occupation Tax
433-Act, the minimum full-time equivalent jobs or full-time
434-retained jobs set forth in subdivision (a)(3)(A) of this
435-Section have been created or retained. Businesses designated
436-as High Impact Businesses under this Section shall also
437-qualify for the exemption described in Section 5l of the
438-Retailers' Occupation Tax Act. The credit provided in
439-subsection (h) of Section 201 of the Illinois Income Tax Act
440-shall be applicable to investments in qualified property as
441-set forth in subdivision (a)(3)(A) of this Section.
442-(b-5) Businesses designated as High Impact Businesses
443-pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
444-(a)(3)(D), and (a)(3)(G), and (a)(3)(H) of this Section shall
445-qualify for the credits and exemptions described in the
446-following Acts: Section 51 of the Retailers' Occupation Tax
447-Act, Section 9-222 and Section 9-222.1A of the Public
448-Utilities Act, and subsection (h) of Section 201 of the
449-
450-
451-Illinois Income Tax Act; however, the credits and exemptions
452-authorized under Section 9-222 and Section 9-222.1A of the
453-Public Utilities Act, and subsection (h) of Section 201 of the
454-Illinois Income Tax Act shall not be authorized until the new
455-electric generating facility, the new gasification facility,
456-the new transmission facility, the new, expanded, or reopened
457-coal mine, or the new cultured cell material food production
458-facility, or the existing or planned grocery store is
459-operational, except that a new electric generating facility
460-whose primary fuel source is natural gas is eligible only for
461-the exemption under Section 5l of the Retailers' Occupation
462-Tax Act.
463-(b-6) Businesses designated as High Impact Businesses
464-pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
465-Section shall qualify for the exemptions described in Section
466-5l of the Retailers' Occupation Tax Act; any business so
467-designated as a High Impact Business being, for purposes of
468-this Section, a "Wind Energy Business".
469-(b-7) Beginning on January 1, 2021, businesses designated
470-as High Impact Businesses by the Department shall qualify for
471-the High Impact Business construction jobs credit under
472-subsection (h-5) of Section 201 of the Illinois Income Tax Act
473-if the business meets the criteria set forth in subsection (i)
474-of this Section. The total aggregate amount of credits awarded
475-under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
476-shall not exceed $20,000,000 in any State fiscal year.
477-
478-
479-(c) High Impact Businesses located in federally designated
480-foreign trade zones or sub-zones are also eligible for
481-additional credits, exemptions and deductions as described in
482-the following Acts: Section 9-221 and Section 9-222.1 of the
483-Public Utilities Act; and subsection (g) of Section 201, and
484-Section 203 of the Illinois Income Tax Act.
485-(d) Except for businesses contemplated under subdivision
486-(a)(3)(E), (a)(3)(E-5), or (a)(3)(G), or (a)(3)(H) of this
487-Section, existing Illinois businesses which apply for
488-designation as a High Impact Business must provide the
489-Department with the prospective plan for which 1,500 full-time
490-retained jobs would be eliminated in the event that the
491-business is not designated.
492-(e) Except for new businesses contemplated under
493-subdivision (a)(3)(E), or subdivision (a)(3)(G), or
494-subdivision (a)(3)(H) of this Section, new proposed facilities
495-which apply for designation as High Impact Business must
496-provide the Department with proof of alternative non-Illinois
497-sites which would receive the proposed investment and job
498-creation in the event that the business is not designated as a
499-High Impact Business.
500-(f) Except for businesses contemplated under subdivision
501-(a)(3)(E), or subdivision (a)(3)(G), or subdivision (a)(3)(H)
502-of this Section, in the event that a business is designated a
503-High Impact Business and it is later determined after
504-reasonable notice and an opportunity for a hearing as provided
505-
506-
507-under the Illinois Administrative Procedure Act, that the
508-business would have placed in service in qualified property
509-the investments and created or retained the requisite number
510-of jobs without the benefits of the High Impact Business
511-designation, the Department shall be required to immediately
512-revoke the designation and notify the Director of the
513-Department of Revenue who shall begin proceedings to recover
514-all wrongfully exempted State taxes with interest. The
515-business shall also be ineligible for all State funded
516-Department programs for a period of 10 years.
517-(g) The Department shall revoke a High Impact Business
518-designation if the participating business fails to comply with
519-the terms and conditions of the designation.
520-(h) Prior to designating a business, the Department shall
521-provide the members of the General Assembly and Commission on
522-Government Forecasting and Accountability with a report
523-setting forth the terms and conditions of the designation and
524-guarantees that have been received by the Department in
525-relation to the proposed business being designated.
526-(i) High Impact Business construction jobs credit.
527-Beginning on January 1, 2021, a High Impact Business may
528-receive a tax credit against the tax imposed under subsections
529-(a) and (b) of Section 201 of the Illinois Income Tax Act in an
530-amount equal to 50% of the amount of the incremental income tax
531-attributable to High Impact Business construction jobs credit
532-employees employed in the course of completing a High Impact
533-
534-
535-Business construction jobs project. However, the High Impact
536-Business construction jobs credit may equal 75% of the amount
537-of the incremental income tax attributable to High Impact
538-Business construction jobs credit employees if the High Impact
539-Business construction jobs credit project is located in an
540-underserved area.
541-The Department shall certify to the Department of Revenue:
542-(1) the identity of taxpayers that are eligible for the High
543-Impact Business construction jobs credit; and (2) the amount
544-of High Impact Business construction jobs credits that are
545-claimed pursuant to subsection (h-5) of Section 201 of the
546-Illinois Income Tax Act in each taxable year. Any business
547-entity that receives a High Impact Business construction jobs
548-credit shall maintain a certified payroll pursuant to
549-subsection (j) of this Section.
550-As used in this subsection (i):
551-"High Impact Business construction jobs credit" means an
552-amount equal to 50% (or 75% if the High Impact Business
553-construction project is located in an underserved area) of the
554-incremental income tax attributable to High Impact Business
555-construction job employees. The total aggregate amount of
556-credits awarded under the Blue Collar Jobs Act (Article 20 of
557-Public Act 101-9) shall not exceed $20,000,000 in any State
558-fiscal year
559-"High Impact Business construction job employee" means a
560-laborer or worker who is employed by a an Illinois contractor
561-
562-
563-or subcontractor in the actual construction work on the site
564-of a High Impact Business construction job project.
565-"High Impact Business construction jobs project" means
566-building a structure or building or making improvements of any
567-kind to real property, undertaken and commissioned by a
568-business that was designated as a High Impact Business by the
569-Department. The term "High Impact Business construction jobs
570-project" does not include the routine operation, routine
571-repair, or routine maintenance of existing structures,
572-buildings, or real property.
573-"Incremental income tax" means the total amount withheld
574-during the taxable year from the compensation of High Impact
575-Business construction job employees.
576-"Underserved area" means a geographic area that meets one
577-or more of the following conditions:
578-(1) the area has a poverty rate of at least 20%
579-according to the latest American Community Survey;
580-(2) 35% or more of the families with children in the
581-area are living below 130% of the poverty line, according
582-to the latest American Community Survey;
583-(3) at least 20% of the households in the area receive
584-assistance under the Supplemental Nutrition Assistance
585-Program (SNAP); or
586-(4) the area has an average unemployment rate, as
587-determined by the Illinois Department of Employment
588-Security, that is more than 120% of the national
589-
590-
591-unemployment average, as determined by the U.S. Department
592-of Labor, for a period of at least 2 consecutive calendar
593-years preceding the date of the application.
594-(j) (Blank). Each contractor and subcontractor who is
595-engaged in and executing a High Impact Business Construction
596-jobs project, as defined under subsection (i) of this Section,
597-for a business that is entitled to a credit pursuant to
598-subsection (i) of this Section shall:
599-(1) make and keep, for a period of 5 years from the
600-date of the last payment made on or after June 5, 2019 (the
601-effective date of Public Act 101-9) on a contract or
602-subcontract for a High Impact Business Construction Jobs
603-Project, records for all laborers and other workers
604-employed by the contractor or subcontractor on the
605-project; the records shall include:
606-(A) the worker's name;
607-(B) the worker's address;
608-(C) the worker's telephone number, if available;
609-(D) the worker's social security number;
610-(E) the worker's classification or
611-classifications;
612-(F) the worker's gross and net wages paid in each
613-pay period;
614-(G) the worker's number of hours worked each day;
615-(H) the worker's starting and ending times of work
616-each day;
617-
618-
619-(I) the worker's hourly wage rate;
620-(J) the worker's hourly overtime wage rate;
621-(K) the worker's race and ethnicity; and
622-(L) the worker's gender;
623-(2) no later than the 15th day of each calendar month,
624-provide a certified payroll for the immediately preceding
625-month to the taxpayer in charge of the High Impact
626-Business construction jobs project; within 5 business days
627-after receiving the certified payroll, the taxpayer shall
628-file the certified payroll with the Department of Labor
629-and the Department of Commerce and Economic Opportunity; a
630-certified payroll must be filed for only those calendar
631-months during which construction on a High Impact Business
632-construction jobs project has occurred; the certified
633-payroll shall consist of a complete copy of the records
634-identified in paragraph (1) of this subsection (j), but
635-may exclude the starting and ending times of work each
636-day; the certified payroll shall be accompanied by a
637-statement signed by the contractor or subcontractor or an
638-officer, employee, or agent of the contractor or
639-subcontractor which avers that:
640-(A) he or she has examined the certified payroll
641-records required to be submitted by the Act and such
642-records are true and accurate; and
643-(B) the contractor or subcontractor is aware that
644-filing a certified payroll that he or she knows to be
645-
646-
647-false is a Class A misdemeanor.
648-A general contractor is not prohibited from relying on a
649-certified payroll of a lower-tier subcontractor, provided the
650-general contractor does not knowingly rely upon a
651-subcontractor's false certification.
652-Any contractor or subcontractor subject to this
653-subsection, and any officer, employee, or agent of such
654-contractor or subcontractor whose duty as an officer,
655-employee, or agent it is to file a certified payroll under this
656-subsection, who willfully fails to file such a certified
657-payroll on or before the date such certified payroll is
658-required by this paragraph to be filed and any person who
659-willfully files a false certified payroll that is false as to
660-any material fact is in violation of this Act and guilty of a
661-Class A misdemeanor.
662-The taxpayer in charge of the project shall keep the
663-records submitted in accordance with this subsection on or
664-after June 5, 2019 (the effective date of Public Act 101-9) for
665-a period of 5 years from the date of the last payment for work
666-on a contract or subcontract for the High Impact Business
667-construction jobs project.
668-The records submitted in accordance with this subsection
669-shall be considered public records, except an employee's
670-address, telephone number, and social security number, and
671-made available in accordance with the Freedom of Information
672-Act. The Department of Labor shall share the information with
673-
674-
675-the Department in order to comply with the awarding of a High
676-Impact Business construction jobs credit. A contractor,
677-subcontractor, or public body may retain records required
678-under this Section in paper or electronic format.
679-(j-5) Annually, until construction is completed, a company
680-seeking High Impact Business Construction Job credits shall
681-submit a report that, at a minimum, describes the projected
682-project scope, timeline, and anticipated budget. Once the
683-project has commenced, the annual report shall include actual
684-data for the prior year as well as projections for each
685-additional year through completion of the project. The
686-Department shall issue detailed reporting guidelines
687-prescribing the requirements of construction-related reports.
688-In order to receive credit for construction expenses, the
689-company must provide the Department with evidence that a
690-certified third-party executed an Agreed-Upon Procedure (AUP)
691-verifying the construction expenses or accept the standard
692-construction wage expense estimated by the Department.
693-Upon review of the final project scope, timeline, budget,
694-and AUP, the Department shall issue a tax credit certificate
695-reflecting a percentage of the total construction job wages
696-paid throughout the completion of the project.
697-(k) Upon 7 business days' notice, each taxpayer contractor
698-and subcontractor shall make available to each State agency
699-and to federal, State, or local law enforcement agencies and
700-prosecutors for inspection and copying at a location within
701-
702-
703-this State during reasonable hours, the report under
704-subsection (j-5) records identified in this subsection (j) to
705-the taxpayer in charge of the High Impact Business
706-construction jobs project, its officers and agents, the
707-Director of the Department of Labor and his or her deputies and
708-agents, and to federal, State, or local law enforcement
709-agencies and prosecutors.
710-(l) The changes made to this Section by Public Act
711-102-1125 this amendatory Act of the 102nd General Assembly,
712-other than the changes in subsection (a), apply to High Impact
713-Businesses high impact businesses that submit applications on
714-or after February 3, 2023 (the effective date of Public Act
715-102-1125) this amendatory Act of the 102nd General Assembly.
716-(Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
717-102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
718-11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
719-eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.)
720-(20 ILCS 655/13)
721-Sec. 13. Enterprise Zone construction jobs credit.
722-(a) Beginning on January 1, 2021, a business entity in a
723-certified Enterprise Zone that makes a capital investment of
724-at least $10,000,000 in an Enterprise Zone construction jobs
725-project may receive an Enterprise Zone construction jobs
726-credit against the tax imposed under subsections (a) and (b)
727-of Section 201 of the Illinois Income Tax Act in an amount
728-
729-
730-equal to 50% of the amount of the incremental income tax
731-attributable to Enterprise Zone construction jobs credit
732-employees employed in the course of completing an Enterprise
733-Zone construction jobs project. However, the Enterprise Zone
734-construction jobs credit may equal 75% of the amount of the
735-incremental income tax attributable to Enterprise Zone
736-construction jobs credit employees if the project is located
737-in an underserved area.
738-(b) A business entity seeking a credit under this Section
739-must submit an application to the Department and must receive
740-approval from the designating municipality or county and the
741-Department for the Enterprise Zone construction jobs credit
742-project. The application must describe the nature and benefit
743-of the project to the certified Enterprise Zone and its
744-potential contributors. The total aggregate amount of credits
745-awarded under the Blue Collar Jobs Act (Article 20 of Public
746-Act 101-9) shall not exceed $20,000,000 in any State fiscal
747-year.
748-Within 45 days after receipt of an application, the
749-Department shall give notice to the applicant as to whether
750-the application has been approved or disapproved. If the
751-Department disapproves the application, it shall specify the
752-reasons for this decision and allow 60 days for the applicant
753-to amend and resubmit its application. The Department shall
754-provide assistance upon request to applicants. Resubmitted
755-applications shall receive the Department's approval or
756-
757-
758-disapproval within 30 days after the application is
759-resubmitted. Those resubmitted applications satisfying initial
760-Department objectives shall be approved unless reasonable
761-circumstances warrant disapproval.
762-On an annual basis, the designated zone organization shall
763-furnish a statement to the Department on the programmatic and
764-financial status of any approved project and an audited
765-financial statement of the project.
766-The Department shall certify to the Department of Revenue
767-the identity of taxpayers who are eligible for the credits and
768-the amount of credits that are claimed pursuant to
769-subparagraph (8) of subsection (f) of Section 201 the Illinois
770-Income Tax Act.
771-The Enterprise Zone construction jobs credit project must
772-be undertaken by the business entity in the course of
773-completing a project that complies with the criteria contained
774-in Section 4 of this Act and is undertaken in a certified
775-Enterprise Zone. The Department shall adopt any necessary
776-rules for the implementation of this subsection (b).
777-(c) (Blank). Any business entity that receives an
778-Enterprise Zone construction jobs credit shall maintain a
779-certified payroll pursuant to subsection (d) of this Section.
780-(d) Annually, until construction is completed, a company
781-seeking Enterprise Zone construction job credits shall submit
782-a report that, at a minimum, describes the projected project
783-scope, timeline, and anticipated budget. Once the project has
784-
785-
786-commenced, the annual report shall include actual data for the
787-prior year as well as projections for each additional year
788-through completion of the project. The Department shall issue
789-detailed reporting guidelines prescribing the requirements of
790-construction-related reports.
791-In order to receive credit for construction expenses, the
792-company must provide the Department with evidence that a
793-certified third-party executed an Agreed-Upon Procedure (AUP)
794-verifying the construction expenses or accept the standard
795-construction wage expense estimated by the Department.
796-Upon review of the final project scope, timeline, budget,
797-and AUP, the Department shall issue a tax credit certificate
798-reflecting a percentage of the total construction job wages
799-paid throughout the completion of the project.
800-Each contractor and subcontractor who is engaged in and is
801-executing an Enterprise Zone construction jobs credit project
802-for a business that is entitled to a credit pursuant to this
803-Section shall:
804-(1) make and keep, for a period of 5 years from the
805-date of the last payment made on or after June 5, 2019 (the
806-effective date of Public Act 101-9) on a contract or
807-subcontract for an Enterprise Zone construction jobs
808-credit project, records for all laborers and other workers
809-employed by them on the project; the records shall
810-include:
811-(A) the worker's name;
812-
813-
814-(B) the worker's address;
815-(C) the worker's telephone number, if available;
816-(D) the worker's social security number;
817-(E) the worker's classification or
818-classifications;
819-(F) the worker's gross and net wages paid in each
820-pay period;
821-(G) the worker's number of hours worked each day;
822-(H) the worker's starting and ending times of work
823-each day;
824-(I) the worker's hourly wage rate; and
825-(J) the worker's hourly overtime wage rate;
826-(2) no later than the 15th day of each calendar month,
827-provide a certified payroll for the immediately preceding
828-month to the taxpayer in charge of the project; within 5
829-business days after receiving the certified payroll, the
830-taxpayer shall file the certified payroll with the
831-Department of Labor and the Department of Commerce and
832-Economic Opportunity; a certified payroll must be filed
833-for only those calendar months during which construction
834-on an Enterprise Zone construction jobs project has
835-occurred; the certified payroll shall consist of a
836-complete copy of the records identified in paragraph (1)
837-of this subsection (d), but may exclude the starting and
838-ending times of work each day; the certified payroll shall
839-be accompanied by a statement signed by the contractor or
840-
841-
842-subcontractor or an officer, employee, or agent of the
843-contractor or subcontractor which avers that:
844-(A) he or she has examined the certified payroll
845-records required to be submitted by the Act and such
846-records are true and accurate; and
847-(B) the contractor or subcontractor is aware that
848-filing a certified payroll that he or she knows to be
849-false is a Class A misdemeanor.
850-A general contractor is not prohibited from relying on a
851-certified payroll of a lower-tier subcontractor, provided the
852-general contractor does not knowingly rely upon a
853-subcontractor's false certification.
854-Any contractor or subcontractor subject to this
855-subsection, and any officer, employee, or agent of such
856-contractor or subcontractor whose duty as an officer,
857-employee, or agent it is to file a certified payroll under this
858-subsection, who willfully fails to file such a certified
859-payroll on or before the date such certified payroll is
860-required by this paragraph to be filed and any person who
861-willfully files a false certified payroll that is false as to
862-any material fact is in violation of this Act and guilty of a
863-Class A misdemeanor.
864-The taxpayer in charge of the project shall keep the
865-records submitted in accordance with this subsection on or
866-after June 5, 2019 (the effective date of Public Act 101-9) for
867-a period of 5 years from the date of the last payment for work
868-
869-
870-on a contract or subcontract for the project.
871-The records submitted in accordance with this subsection
872-shall be considered public records, except an employee's
873-address, telephone number, and social security number, and
874-made available in accordance with the Freedom of Information
875-Act. The Department of Labor shall accept any reasonable
876-submissions by the contractor that meet the requirements of
877-this subsection and shall share the information with the
878-Department in order to comply with the awarding of Enterprise
879-Zone construction jobs credits. A contractor, subcontractor,
880-or public body may retain records required under this Section
881-in paper or electronic format.
882-Upon 7 business days' notice, the taxpayer contractor and
883-each subcontractor shall make available to any State agency
884-and to federal, State, or local law enforcement agencies and
885-prosecutors for inspection and copying at a location within
886-this State during reasonable hours, the report under this
887-subsection (d) records identified in paragraph (1) of this
888-subsection to the taxpayer in charge of the project, its
889-officers and agents, the Director of Labor and his or her
890-deputies and agents, and to federal, State, or local law
891-enforcement agencies and prosecutors.
892-(e) As used in this Section:
893-"Enterprise Zone construction jobs credit" means an amount
894-equal to 50% (or 75% if the project is located in an
895-underserved area) of the incremental income tax attributable
896-
897-
898-to Enterprise Zone construction jobs credit employees.
899-"Enterprise Zone construction jobs credit employee" means
900-a laborer or worker who is employed by a an Illinois contractor
901-or subcontractor in the actual construction work on the site
902-of an Enterprise Zone construction jobs credit project.
903-"Enterprise Zone construction jobs credit project" means
904-building a structure or building or making improvements of any
905-kind to real property commissioned and paid for by a business
906-that has applied and been approved for an Enterprise Zone
907-construction jobs credit pursuant to this Section. "Enterprise
908-Zone construction jobs credit project" does not include the
909-routine operation, routine repair, or routine maintenance of
910-existing structures, buildings, or real property.
911-"Incremental income tax" means the total amount withheld
912-during the taxable year from the compensation of Enterprise
913-Zone construction jobs credit employees.
914-"Underserved area" means a geographic area that meets one
915-or more of the following conditions:
916-(1) the area has a poverty rate of at least 20%
917-according to the latest American Community Survey;
918-(2) 35% or more of the families with children in the
919-area are living below 130% of the poverty line, according
920-to the latest American Community Survey;
921-(3) at least 20% of the households in the area receive
922-assistance under the Supplemental Nutrition Assistance
923-Program (SNAP); or
924-
925-
926-(4) the area has an average unemployment rate, as
927-determined by the Illinois Department of Employment
928-Security, that is more than 120% of the national
929-unemployment average, as determined by the U.S. Department
930-of Labor, for a period of at least 2 consecutive calendar
931-years preceding the date of the application.
932-(Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
933-102-558, eff. 8-20-21.)
934-Section 15. The Reimagining Energy and Vehicles in
935-Illinois Act is amended by changing Sections 10, 20, 35, 45,
936-65, 95, and 105 as follows:
937-(20 ILCS 686/10)
938-Sec. 10. Definitions. As used in this Act:
939-"Advanced battery" means a battery that consists of a
940-battery cell that can be integrated into a module, pack, or
941-system to be used in energy storage applications, including a
942-battery used in an electric vehicle or the electric grid.
943-"Advanced battery component" means a component of an
944-advanced battery, including materials, enhancements,
945-enclosures, anodes, cathodes, electrolytes, cells, and other
946-associated technologies that comprise an advanced battery.
947-"Agreement" means the agreement between a taxpayer and the
948-Department under the provisions of Section 45 of this Act.
949-"Applicant" means a taxpayer that (i) operates a business
950-
951-
952-in Illinois or is planning to locate a business within the
953-State of Illinois and (ii) is engaged in interstate or
954-intrastate commerce as an electric vehicle manufacturer, an
955-electric vehicle component parts manufacturer, or an electric
956-vehicle power supply equipment manufacturer. For applications
957-for credits under this Act that are submitted on or after the
958-effective date of this amendatory Act of the 102nd General
959-Assembly, "applicant" also includes a taxpayer that (i)
960-operates a business in Illinois or is planning to locate a
961-business within the State of Illinois and (ii) is engaged in
962-interstate or intrastate commerce as a renewable energy
963-manufacturer. "Applicant" does not include a taxpayer who
964-closes or substantially reduces by more than 50% operations at
965-one location in the State and relocates substantially the same
966-operation to another location in the State. This does not
967-prohibit a Taxpayer from expanding its operations at another
968-location in the State. This also does not prohibit a Taxpayer
969-from moving its operations from one location in the State to
970-another location in the State for the purpose of expanding the
971-operation, provided that the Department determines that
972-expansion cannot reasonably be accommodated within the
973-municipality or county in which the business is located, or,
974-in the case of a business located in an incorporated area of
975-the county, within the county in which the business is
976-located, after conferring with the chief elected official of
977-the municipality or county and taking into consideration any
978-
979-
980-evidence offered by the municipality or county regarding the
981-ability to accommodate expansion within the municipality or
982-county.
983-"Battery raw materials" means the raw and processed form
984-of a mineral, metal, chemical, or other material used in an
985-advanced battery component.
986-"Battery raw materials refining service provider" means a
987-business that operates a facility that filters, sifts, and
988-treats battery raw materials for use in an advanced battery.
989-"Battery recycling and reuse manufacturer" means a
990-manufacturer that is primarily engaged in the recovery,
991-retrieval, processing, recycling, or recirculating of battery
992-raw materials for new use in electric vehicle batteries.
993-"Capital improvements" means the purchase, renovation,
994-rehabilitation, or construction of permanent tangible land,
995-buildings, structures, equipment, and furnishings in an
996-approved project sited in Illinois and expenditures for goods
997-or services that are normally capitalized, including
998-organizational costs and research and development costs
999-incurred in Illinois. For land, buildings, structures, and
1000-equipment that are leased, the lease must equal or exceed the
1001-term of the agreement, and the cost of the property shall be
1002-determined from the present value, using the corporate
1003-interest rate prevailing at the time of the application, of
1004-the lease payments.
1005-"Credit" means either a "REV Illinois Credit" or a "REV
1006-
1007-
1008-Construction Jobs Credit" agreed to between the Department and
1009-applicant under this Act.
1010-"Department" means the Department of Commerce and Economic
1011-Opportunity.
1012-"Director" means the Director of Commerce and Economic
1013-Opportunity.
1014-"Electric vehicle" means a vehicle that is exclusively
1015-powered by and refueled by electricity, including electricity
1016-generated through a hydrogen fuel cells or solar technology.
1017-"Electric vehicle", except when referencing aircraft with
1018-hybrid electric propulsion systems, does not include hybrid
1019-electric vehicles, electric bicycles, or extended-range
1020-electric vehicles that are also equipped with conventional
1021-fueled propulsion or auxiliary engines.
1022-"Electric vehicle manufacturer" means a new or existing
1023-manufacturer that is primarily focused on reequipping,
1024-expanding, or establishing a manufacturing facility in
1025-Illinois that produces electric vehicles as defined in this
1026-Section.
1027-"Electric vehicle component parts manufacturer" means a
1028-new or existing manufacturer that is focused on reequipping,
1029-expanding, or establishing a manufacturing facility in
1030-Illinois that produces parts or accessories used in electric
1031-vehicles, as defined by this Section, including advanced
1032-battery component parts. The changes to this definition of
1033-"electric vehicle component parts manufacturer" apply to
1034-
1035-
1036-agreements under this Act that are entered into on or after the
1037-effective date of this amendatory Act of the 102nd General
1038-Assembly.
1039-"Electric vehicle power supply equipment" means the
1040-equipment used specifically for the purpose of delivering
1041-electricity to an electric vehicle, including hydrogen fuel
1042-cells or solar refueling infrastructure.
1043-"Electric vehicle power supply manufacturer" means a new
1044-or existing manufacturer that is focused on reequipping,
1045-expanding, or establishing a manufacturing facility in
1046-Illinois that produces electric vehicle power supply equipment
1047-used for the purpose of delivering electricity to an electric
1048-vehicle, including hydrogen fuel cell or solar refueling
1049-infrastructure.
1050-"Electric vehicle powertrain technology" means equipment
1051-used to convert electricity for use in aerospace propulsion.
1052-"Electric vehicle powertrain technology manufacturer"
1053-means a new or existing manufacturer that is focused on
1054-reequipping, expanding, or establishing a manufacturing
1055-facility in Illinois that develops and validates electric
1056-vehicle powertrain technology for use in aerospace propulsion.
1057-"Electric vertical takeoff and landing aircraft" or "eVTOL
1058-aircraft" means a fully electric aircraft that lands and takes
1059-off vertically.
1060-"Energy Transition Area" means a county with less than
1061-100,000 people or a municipality that contains one or more of
1062-
1063-
1064-the following:
1065-(1) a fossil fuel plant that was retired from service
1066-or has significant reduced service within 6 years before
1067-the time of the application or will be retired or have
1068-service significantly reduced within 6 years following the
1069-time of the application; or
1070-(2) a coal mine that was closed or had operations
1071-significantly reduced within 6 years before the time of
1072-the application or is anticipated to be closed or have
1073-operations significantly reduced within 6 years following
1074-the time of the application.
1075-"Full-time employee" means an individual who is employed
1076-for consideration for at least 35 hours each week or who
1077-renders any other standard of service generally accepted by
1078-industry custom or practice as full-time employment. An
1079-individual for whom a W-2 is issued by a Professional Employer
1080-Organization (PEO) is a full-time employee if employed in the
1081-service of the applicant for consideration for at least 35
1082-hours each week.
1083-"Green steel manufacturer" means an entity that
1084-manufactures steel without the use of fossil fuels and with
1085-zero net carbon emissions.
1086-"Incremental income tax" means the total amount withheld
1087-during the taxable year from the compensation of new employees
1088-and, if applicable, retained employees under Article 7 of the
1089-Illinois Income Tax Act arising from employment at a project
1090-
1091-
1092-that is the subject of an agreement.
1093-"Institution of higher education" or "institution" means
1094-any accredited public or private university, college,
1095-community college, business, technical, or vocational school,
1096-or other accredited educational institution offering degrees
1097-and instruction beyond the secondary school level.
1098-"Minority person" means a minority person as defined in
1099-the Business Enterprise for Minorities, Women, and Persons
1100-with Disabilities Act.
1101-"New employee" means a newly-hired full-time employee
1102-employed to work at the project site and whose work is directly
1103-related to the project.
1104-"Noncompliance date" means, in the case of a taxpayer that
1105-is not complying with the requirements of the agreement or the
1106-provisions of this Act, the day following the last date upon
1107-which the taxpayer was in compliance with the requirements of
1108-the agreement and the provisions of this Act, as determined by
1109-the Director, pursuant to Section 70.
1110-"Pass-through entity" means an entity that is exempt from
1111-the tax under subsection (b) or (c) of Section 205 of the
1112-Illinois Income Tax Act.
1113-"Placed in service" means the state or condition of
1114-readiness, availability for a specifically assigned function,
1115-and the facility is constructed and ready to conduct its
1116-facility operations to manufacture goods.
1117-"Professional employer organization" (PEO) means an
1118-
1119-
1120-employee leasing company, as defined in Section 206.1 of the
1121-Illinois Unemployment Insurance Act.
1122-"Program" means the Reimagining Energy and Vehicles in
1123-Illinois Program (the REV Illinois Program) established in
1124-this Act.
1125-"Project" or "REV Illinois Project" means a for-profit
1126-economic development activity for the manufacture of electric
1127-vehicles, electric vehicle component parts, electric vehicle
1128-power supply equipment, or renewable energy products, which is
1129-designated by the Department as a REV Illinois Project and is
1130-the subject of an agreement.
1131-"Recycling facility" means a location at which the
1132-taxpayer disposes of batteries and other component parts in
1133-manufacturing of electric vehicles, electric vehicle component
1134-parts, or electric vehicle power supply equipment.
1135-"Related member" means a person that, with respect to the
1136-taxpayer during any portion of the taxable year, is any one of
1137-the following:
1138-(1) An individual stockholder, if the stockholder and
1139-the members of the stockholder's family (as defined in
1140-Section 318 of the Internal Revenue Code) own directly,
1141-indirectly, beneficially, or constructively, in the
1142-aggregate, at least 50% of the value of the taxpayer's
1143-outstanding stock.
1144-(2) A partnership, estate, trust and any partner or
1145-beneficiary, if the partnership, estate, or trust, and its
1146-
1147-
1148-partners or beneficiaries own directly, indirectly,
1149-beneficially, or constructively, in the aggregate, at
1150-least 50% of the profits, capital, stock, or value of the
1151-taxpayer.
1152-(3) A corporation, and any party related to the
1153-corporation in a manner that would require an attribution
1154-of stock from the corporation under the attribution rules
1155-of Section 318 of the Internal Revenue Code, if the
1156-Taxpayer owns directly, indirectly, beneficially, or
1157-constructively at least 50% of the value of the
1158-corporation's outstanding stock.
1159-(4) A corporation and any party related to that
1160-corporation in a manner that would require an attribution
1161-of stock from the corporation to the party or from the
1162-party to the corporation under the attribution rules of
1163-Section 318 of the Internal Revenue Code, if the
1164-corporation and all such related parties own in the
1165-aggregate at least 50% of the profits, capital, stock, or
1166-value of the taxpayer.
1167-(5) A person to or from whom there is an attribution of
1168-stock ownership in accordance with Section 1563(e) of the
1169-Internal Revenue Code, except, for purposes of determining
1170-whether a person is a related member under this paragraph,
1171-20% shall be substituted for 5% wherever 5% appears in
1172-Section 1563(e) of the Internal Revenue Code.
1173-"Renewable energy" means energy produced using the
1174-
1175-
1176-materials and sources of energy through which renewable energy
1177-resources are generated.
1178-"Renewable energy manufacturer" means a manufacturer whose
1179-primary function is to manufacture or assemble: (i) equipment,
1180-systems, or products used to produce renewable or nuclear
1181-energy; (ii) products used for energy conservation, storage,
1182-or grid efficiency purposes; or (iii) component parts for that
1183-equipment or those systems or products.
1184-"Renewable energy resources" has the meaning ascribed to
1185-that term in Section 1-10 of the Illinois Power Agency Act.
1186-"Research and development" means work directed toward the
1187-innovation, introduction, and improvement of products and
1188-processes. "Research and development" includes all levels of
1189-research and development that directly result in the potential
1190-manufacturing and marketability of renewable energy, electric
1191-vehicles, electric vehicle component parts, and electric or
1192-hybrid aircraft.
1193-"Retained employee" means a full-time employee employed by
1194-the taxpayer prior to the term of the Agreement who continues
1195-to be employed during the term of the agreement whose job
1196-duties are directly related to the project. The term "retained
1197-employee" does not include any individual who has a direct or
1198-an indirect ownership interest of at least 5% in the profits,
1199-equity, capital, or value of the taxpayer or a child,
1200-grandchild, parent, or spouse, other than a spouse who is
1201-legally separated from the individual, of any individual who
1202-
1203-
1204-has a direct or indirect ownership of at least 5% in the
1205-profits, equity, capital, or value of the taxpayer. The
1206-changes to this definition of "retained employee" apply to
1207-agreements for credits under this Act that are entered into on
1208-or after the effective date of this amendatory Act of the 102nd
1209-General Assembly.
1210-"REV Illinois credit" means a credit agreed to between the
1211-Department and the applicant under this Act that is based on
1212-the incremental income tax attributable to new employees and,
1213-if applicable, retained employees, and on training costs for
1214-such employees at the applicant's project.
1215-"REV construction jobs credit" means a credit agreed to
1216-between the Department and the applicant under this Act that
1217-is based on the incremental income tax attributable to
1218-construction wages paid in connection with construction of the
1219-project facilities.
1220-"Statewide baseline" means the total number of full-time
1221-employees of the applicant and any related member employed by
1222-such entities at the time of application for incentives under
1223-this Act.
1224-"Taxpayer" means an individual, corporation, partnership,
1225-or other entity that has a legal obligation to pay Illinois
1226-income taxes and file an Illinois income tax return.
1227-"Training costs" means costs incurred to upgrade the
1228-technological skills of full-time employees in Illinois and
1229-includes: curriculum development; training materials
1230-
1231-
1232-(including scrap product costs); trainee domestic travel
1233-expenses; instructor costs (including wages, fringe benefits,
1234-tuition and domestic travel expenses); rent, purchase or lease
1235-of training equipment; and other usual and customary training
1236-costs. "Training costs" do not include costs associated with
1237-travel outside the United States (unless the Taxpayer receives
1238-prior written approval for the travel by the Director based on
1239-a showing of substantial need or other proof the training is
1240-not reasonably available within the United States), wages and
1241-fringe benefits of employees during periods of training, or
1242-administrative cost related to full-time employees of the
1243-taxpayer.
1244-"Underserved area" means any geographic area areas as
1245-defined in Section 5-5 of the Economic Development for a
1246-Growing Economy Tax Credit Act.
1247-(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
1248-102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
1249-(20 ILCS 686/20)
1250-Sec. 20. REV Illinois Program; project applications.
1251-(a) The Reimagining Energy and Vehicles in Illinois (REV
1252-Illinois) Program is hereby established and shall be
1253-administered by the Department. The Program will provide
1254-financial incentives to any one or more of the following: (1)
1255-eligible manufacturers of electric vehicles, electric vehicle
1256-component parts, and electric vehicle power supply equipment;
1257-
1258-
1259-(2) battery recycling and reuse manufacturers; (3) battery raw
1260-materials refining service providers; or (4) renewable energy
1261-manufacturers.
1262-(b) Any taxpayer planning a project to be located in
1263-Illinois may request consideration for designation of its
1264-project as a REV Illinois Project, by formal written letter of
1265-request or by formal application to the Department, in which
1266-the applicant states its intent to make at least a specified
1267-level of investment and intends to hire a specified number of
1268-full-time employees at a designated location in Illinois. As
1269-circumstances require, the Department shall require a formal
1270-application from an applicant and a formal letter of request
1271-for assistance.
1272-(c) In order to qualify for credits under the REV Illinois
1273-Program, an applicant must:
1274-(1) if the applicant is an electric vehicle
1275-manufacturer:
1276-(A) make an investment of at least $1,500,000,000
1277-in capital improvements at the project site;
1278-(B) to be placed in service within the State
1279-within a 60-month period after approval of the
1280-application; and
1281-(C) create at least 500 new full-time employee
1282-jobs; or
1283-(2) if the applicant is an electric vehicle component
1284-parts manufacturer, or a renewable energy manufacturer, a
1285-
1286-
1287-green steel manufacturer, or an entity engaged in
1288-research, development, or manufacturing of eVTOL aircraft
1289-or hybrid-electric or fully electric propulsion systems
1290-for airliners:
1291-(A) make an investment of at least $300,000,000 in
1292-capital improvements at the project site;
1293-(B) manufacture one or more parts that are
1294-primarily used for electric vehicle, renewable energy,
1295-or green steel manufacturing;
1296-(C) to be placed in service within the State
1297-within a 60-month period after approval of the
1298-application; and
1299-(D) create at least 150 new full-time employee
1300-jobs; or
1301-(3) if the agreement is entered into before the
1302-effective date of this amendatory Act of the 102nd General
1303-Assembly and the applicant is an electric vehicle
1304-manufacturer, an electric vehicle power supply equipment
1305-manufacturer, an electric vehicle component part
1306-manufacturer, renewable energy manufacturer, or green
1307-steel manufacturer that does not qualify under paragraph
1308-(2) above, a battery recycling and reuse manufacturer, or
1309-a battery raw materials refining service provider:
1310-(A) make an investment of at least $20,000,000 in
1311-capital improvements at the project site;
1312-(B) for electric vehicle component part
1313-
1314-
1315-manufacturers, manufacture one or more parts that are
1316-primarily used for electric vehicle manufacturing;
1317-(C) to be placed in service within the State
1318-within a 48-month period after approval of the
1319-application; and
1320-(D) create at least 50 new full-time employee
1321-jobs; or
1322-(3.1) if the agreement is entered into on or after the
1323-effective date of this amendatory Act of the 102nd General
1324-Assembly and the applicant is an electric vehicle
1325-manufacturer, an electric vehicle power supply equipment
1326-manufacturer, an electric vehicle component part
1327-manufacturer, a renewable energy manufacturer, a green
1328-steel manufacturer, or an entity engaged in research,
1329-development, or manufacturing of eVTOL aircraft or
1330-hybrid-electric or fully electric propulsion systems for
1331-airliners that does not qualify under paragraph (2) above,
1332-a renewable energy manufacturer that does not qualify
1333-under paragraph (2) above, a battery recycling and reuse
1334-manufacturer, or a battery raw materials refining service
1335-provider:
1336-(A) make an investment of at least $2,500,000 in
1337-capital improvements at the project site;
1338-(B) in the case of electric vehicle component part
1339-manufacturers, manufacture one or more parts that are
1340-used for electric vehicle manufacturing;
1341-
1342-
1343-(C) to be placed in service within the State
1344-within a 48-month period after approval of the
1345-application; and
1346-(D) create the lesser of 50 new full-time employee
1347-jobs or new full-time employee jobs equivalent to 10%
1348-of the Statewide baseline applicable to the taxpayer
1349-and any related member at the time of application; or
1350-(4) if the agreement is entered into before the
1351-effective date of this amendatory Act of the 102nd General
1352-Assembly and the applicant is an electric vehicle
1353-manufacturer or electric vehicle component parts
1354-manufacturer with existing operations within Illinois that
1355-intends to convert or expand, in whole or in part, the
1356-existing facility from traditional manufacturing to
1357-primarily electric vehicle manufacturing, electric vehicle
1358-component parts manufacturing, an or electric vehicle
1359-power supply equipment manufacturing, or a green steel
1360-manufacturer:
1361-(A) make an investment of at least $100,000,000 in
1362-capital improvements at the project site;
1363-(B) to be placed in service within the State
1364-within a 60-month period after approval of the
1365-application; and
1366-(C) create the lesser of 75 new full-time employee
1367-jobs or new full-time employee jobs equivalent to 10%
1368-of the Statewide baseline applicable to the taxpayer
1369-
1370-
1371-and any related member at the time of application;
1372-(4.1) if the agreement is entered into on or after the
1373-effective date of this amendatory Act of the 102nd General
1374-Assembly and the applicant (i) is an electric vehicle
1375-manufacturer, an electric vehicle component parts
1376-manufacturer, or a renewable energy manufacturer, a green
1377-steel manufacturer, or an entity engaged in research,
1378-development, or manufacturing of eVTOL aircraft or hybrid
1379-electric or fully electric propulsion systems for
1380-airliners and (ii) has existing operations within Illinois
1381-that the applicant intends to convert or expand, in whole
1382-or in part, from traditional manufacturing to electric
1383-vehicle manufacturing, electric vehicle component parts
1384-manufacturing, renewable energy manufacturing, or electric
1385-vehicle power supply equipment manufacturing:
1386-(A) make an investment of at least $100,000,000 in
1387-capital improvements at the project site;
1388-(B) to be placed in service within the State
1389-within a 60-month period after approval of the
1390-application; and
1391-(C) create the lesser of 50 new full-time employee
1392-jobs or new full-time employee jobs equivalent to 10%
1393-of the Statewide baseline applicable to the taxpayer
1394-and any related member at the time of application; or
1395-(5) if the agreement is entered into on or after the
1396-effective date of the changes made to this Section by this
1397-
1398-
1399-amendatory Act of the 103rd General Assembly and before
1400-June 1, 2024 and the applicant (i) is an electric vehicle
1401-manufacturer, an electric vehicle component parts
1402-manufacturer, or a renewable energy manufacturer or (ii)
1403-has existing operations within Illinois that the applicant
1404-intends to convert or expand, in whole or in part, from
1405-traditional manufacturing to electric vehicle
1406-manufacturing, electric vehicle component parts
1407-manufacturing, renewable energy manufacturing, or electric
1408-vehicle power supply equipment manufacturing:
1409-(A) make an investment of at least $500,000,000 in
1410-capital improvements at the project site;
1411-(B) to be placed in service within the State
1412-within a 60-month period after approval of the
1413-application; and
1414-(C) retain at least 800 full-time employee jobs at
1415-the project.
1416-(d) For agreements entered into prior to April 19, 2022
1417-(the effective date of Public Act 102-700), for any applicant
1418-creating the full-time employee jobs noted in subsection (c),
1419-those jobs must have a total compensation equal to or greater
1420-than 120% of the average wage paid to full-time employees in
1421-the county where the project is located, as determined by the
1422-U.S. Bureau of Labor Statistics. For agreements entered into
1423-on or after April 19, 2022 (the effective date of Public Act
1424-102-700), for any applicant creating the full-time employee
1425-
1426-
1427-jobs noted in subsection (c), those jobs must have a
1428-compensation equal to or greater than 120% of the average wage
1429-paid to full-time employees in a similar position within an
1430-occupational group in the county where the project is located,
1431-as determined by the Department.
1432-(e) For any applicant, within 24 months after being placed
1433-in service, it must certify to the Department that it is carbon
1434-neutral or has attained certification under one of more of the
1435-following green building standards:
1436-(1) BREEAM for New Construction or BREEAM In-Use;
1437-(2) ENERGY STAR;
1438-(3) Envision;
1439-(4) ISO 50001 - energy management;
1440-(5) LEED for Building Design and Construction or LEED
1441-for Building Operations and Maintenance;
1442-(6) Green Globes for New Construction or Green Globes
1443-for Existing Buildings; or
1444-(7) UL 3223.
1445-(f) Each applicant must outline its hiring plan and
1446-commitment to recruit and hire full-time employee positions at
1447-the project site. The hiring plan may include a partnership
1448-with an institution of higher education to provide
1449-internships, including, but not limited to, internships
1450-supported by the Clean Jobs Workforce Network Program, or
1451-full-time permanent employment for students at the project
1452-site. Additionally, the applicant may create or utilize
1453-
1454-
1455-participants from apprenticeship programs that are approved by
1456-and registered with the United States Department of Labor's
1457-Bureau of Apprenticeship and Training. The applicant may apply
1458-for apprenticeship education expense credits in accordance
1459-with the provisions set forth in 14 Ill. Adm. Code 522. Each
1460-applicant is required to report annually, on or before April
1461-15, on the diversity of its workforce in accordance with
1462-Section 50 of this Act. For existing facilities of applicants
1463-under paragraph (3) of subsection (b) above, if the taxpayer
1464-expects a reduction in force due to its transition to
1465-manufacturing electric vehicle, electric vehicle component
1466-parts, or electric vehicle power supply equipment, the plan
1467-submitted under this Section must outline the taxpayer's plan
1468-to assist with retraining its workforce aligned with the
1469-taxpayer's adoption of new technologies and anticipated
1470-efforts to retrain employees through employment opportunities
1471-within the taxpayer's workforce.
1472-(g) Each applicant must demonstrate a contractual or other
1473-relationship with a recycling facility, or demonstrate its own
1474-recycling capabilities, at the time of application and report
1475-annually a continuing contractual or other relationship with a
1476-recycling facility and the percentage of batteries used in
1477-electric vehicles recycled throughout the term of the
1478-agreement.
1479-(h) A taxpayer may not enter into more than one agreement
1480-under this Act with respect to a single address or location for
1481-
1482-
1483-the same period of time. Also, a taxpayer may not enter into an
1484-agreement under this Act with respect to a single address or
1485-location for the same period of time for which the taxpayer
1486-currently holds an active agreement under the Economic
1487-Development for a Growing Economy Tax Credit Act. This
1488-provision does not preclude the applicant from entering into
1489-an additional agreement after the expiration or voluntary
1490-termination of an earlier agreement under this Act or under
1491-the Economic Development for a Growing Economy Tax Credit Act
1492-to the extent that the taxpayer's application otherwise
1493-satisfies the terms and conditions of this Act and is approved
1494-by the Department. An applicant with an existing agreement
1495-under the Economic Development for a Growing Economy Tax
1496-Credit Act may submit an application for an agreement under
1497-this Act after it terminates any existing agreement under the
1498-Economic Development for a Growing Economy Tax Credit Act with
1499-respect to the same address or location. If a project that is
1500-subject to an existing agreement under the Economic
1501-Development for a Growing Economy Tax Credit Act meets the
1502-requirements to be designated as a REV Illinois project under
1503-this Act, including for actions undertaken prior to the
1504-effective date of this Act, the taxpayer that is subject to
1505-that existing agreement under the Economic Development for a
1506-Growing Economy Tax Credit Act may apply to the Department to
1507-amend the agreement to allow the project to become a
1508-designated REV Illinois project. Following the amendment, time
1509-
1510-
1511-accrued during which the project was eligible for credits
1512-under the existing agreement under the Economic Development
1513-for a Growing Economy Tax Credit Act shall count toward the
1514-duration of the credit subject to limitations described in
1515-Section 40 of this Act.
1516-(i) If, at any time following the designation of a project
1517-as a REV Illinois Project by the Department and prior to the
1518-termination or expiration of an agreement under this Act, the
1519-project ceases to qualify as a REV Illinois project because
1520-the taxpayer is no longer an electric vehicle manufacturer, an
1521-electric vehicle component manufacturer, an electric vehicle
1522-power supply equipment manufacturer, a battery recycling and
1523-reuse manufacturer, or a battery raw materials refining
1524-service provider, or an entity engaged in eVTOL or hybrid
1525-electric or fully electric propulsion systems for airliners
1526-research, development, or manufacturing, that project may
1527-receive tax credit awards as described in Section 5-15 and
1528-Section 5-51 of the Economic Development for a Growing Economy
1529-Tax Credit Act, as long as the project continues to meet
1530-requirements to obtain those credits as described in the
1531-Economic Development for a Growing Economy Tax Credit Act and
1532-remains compliant with terms contained in the Agreement under
1533-this Act not related to their status as an electric vehicle
1534-manufacturer, an electric vehicle component manufacturer, an
1535-electric vehicle power supply equipment manufacturer, a
1536-battery recycling and reuse manufacturer, or a battery raw
1537-
1538-
1539-materials refining service provider, or an entity engaged in
1540-eVTOL or hybrid-electric or fully electric propulsion systems
1541-for airliners research, development, or manufacturing. Time
1542-accrued during which the project was eligible for credits
1543-under an agreement under this Act shall count toward the
1544-duration of the credit subject to limitations described in
1545-Section 5-45 of the Economic Development for a Growing Economy
1546-Tax Credit Act.
1547-(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
1548-102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff.
1549-6-7-23.)
1550-(20 ILCS 686/35)
1551-Sec. 35. Relocation of jobs in Illinois. A taxpayer is not
1552-entitled to claim a credit provided by this Act with respect to
1553-any jobs that the Taxpayer relocates from one site in Illinois
1554-to another site in Illinois unless the taxpayer has agreed to
1555-hire the minimum number of new employees and the Department
1556-has determined that the expansion cannot reasonably be
1557-accommodated within the municipality in which the business is
1558-located. Any full-time employee relocated to Illinois in
1559-connection with a qualifying project is deemed to be a new
1560-employee for purposes of this Act. Determinations under this
1561-Section shall be made by the Department.
1562-(Source: P.A. 102-669, eff. 11-16-21.)
1563-
1564-
1565-(20 ILCS 686/45)
1566-Sec. 45. Contents of agreements with applicants.
1567-(a) The Department shall enter into an agreement with an
1568-applicant that is awarded a credit under this Act. The
1569-agreement shall include all of the following:
1570-(1) A detailed description of the project that is the
1571-subject of the agreement, including the location and
1572-amount of the investment and jobs created or retained.
1573-(2) The duration of the credit, the first taxable year
1574-for which the credit may be awarded, and the first taxable
1575-year in which the credit may be used by the taxpayer.
1576-(3) The credit amount that will be allowed for each
1577-taxable year.
1578-(4) For a project qualified under paragraphs (1), (2),
1579-(4), or (5) of subsection (c) of Section 20, a requirement
1580-that the taxpayer shall maintain operations at the project
1581-location a minimum number of years not to exceed 15. For a
1582-project qualified under paragraph (3) of subsection (c) of
1583-Section 20, a requirement that the taxpayer shall maintain
1584-operations at the project location a minimum number of
1585-years not to exceed 10.
1586-(5) A specific method for determining the number of
1587-new employees and if applicable, retained employees,
1588-employed during a taxable year.
1589-(6) A requirement that the taxpayer shall annually
1590-report to the Department the number of new employees, the
1591-
1592-
1593-incremental income tax withheld in connection with the new
1594-employees, and any other information the Department deems
1595-necessary and appropriate to perform its duties under this
1596-Act.
1597-(7) A requirement that the Director is authorized to
1598-verify with the appropriate State agencies the amounts
1599-reported under paragraph (6), and after doing so shall
1600-issue a certificate to the taxpayer stating that the
1601-amounts have been verified.
1602-(8) A requirement that the taxpayer shall provide
1603-written notification to the Director not more than 30 days
1604-after the taxpayer makes or receives a proposal that would
1605-transfer the taxpayer's State tax liability obligations to
1606-a successor taxpayer.
1607-(9) A detailed description of the number of new
1608-employees to be hired, and the occupation and payroll of
1609-full-time jobs to be created or retained because of the
1610-project.
1611-(10) The minimum investment the taxpayer will make in
1612-capital improvements, the time period for placing the
1613-property in service, and the designated location in
1614-Illinois for the investment.
1615-(11) A requirement that the taxpayer shall provide
1616-written notification to the Director and the Director's
1617-designee not more than 30 days after the taxpayer
1618-determines that the minimum job creation or retention,
1619-
1620-
1621-employment payroll, or investment no longer is or will be
1622-achieved or maintained as set forth in the terms and
1623-conditions of the agreement. Additionally, the
1624-notification should outline to the Department the number
1625-of layoffs, date of the layoffs, and detail taxpayer's
1626-efforts to provide career and training counseling for the
1627-impacted workers with industry-related certifications and
1628-trainings.
1629-(12) If applicable, a provision that, if the total
1630-number of new employees falls below a specified level, the
1631-allowance of credit shall be suspended until the number of
1632-new employees equals or exceeds the agreement amount.
1633-(13) If applicable, a provision that specifies the
1634-statewide baseline at the time of application for retained
1635-employees. The agreement must have a provision addressing
1636-if the total number of retained employees falls below the
1637-lesser of the statewide baseline or the retention
1638-requirements specified in the agreement, the allowance of
1639-the credit shall be suspended until the number of retained
1640-employees equals or exceeds the agreement amount.
1641-(14) A detailed description of the items for which the
1642-costs incurred by the Taxpayer will be included in the
1643-limitation on the Credit provided in Section 40.
1644-(15) If the agreement is entered into before the
1645-effective date of the changes made to this Section by this
1646-amendatory Act of the 103rd General Assembly, a provision
1647-
1648-
1649-stating that if the taxpayer fails to meet either the
1650-investment or job creation and retention requirements
1651-specified in the agreement during the entire 5-year period
1652-beginning on the first day of the first taxable year in
1653-which the agreement is executed and ending on the last day
1654-of the fifth taxable year after the agreement is executed,
1655-then the agreement is automatically terminated on the last
1656-day of the fifth taxable year after the agreement is
1657-executed, and the taxpayer is not entitled to the award of
1658-any credits for any of that 5-year period. If the
1659-agreement is entered into on or after the effective date
1660-of the changes made to this Section by this amendatory Act
1661-of the 103rd General Assembly, a provision stating that if
1662-the taxpayer fails to meet either the investment or job
1663-creation and retention requirements specified in the
1664-agreement during the entire 10-year period beginning on
1665-the effective date of the agreement and ending 10 years
1666-after the effective date of the agreement, then the
1667-agreement is automatically terminated, and the taxpayer is
1668-not entitled to the award of any credits for any of that
1669-10-year period.
1670-(16) A provision stating that if the taxpayer ceases
1671-principal operations with the intent to permanently shut
1672-down the project in the State during the term of the
1673-Agreement, then the entire credit amount awarded to the
1674-taxpayer prior to the date the taxpayer ceases principal
1675-
1676-
1677-operations shall be returned to the Department and shall
1678-be reallocated to the local workforce investment area in
1679-which the project was located.
1680-(17) A provision stating that the Taxpayer must
1681-provide the reports outlined in Sections 50 and 55 on or
1682-before April 15 each year.
1683-(18) A provision requiring the taxpayer to report
1684-annually its contractual obligations or otherwise with a
1685-recycling facility for its operations.
1686-(19) Any other performance conditions or contract
1687-provisions the Department determines are necessary or
1688-appropriate.
1689-(20) Each taxpayer under paragraph (1) of subsection
1690-(c) of Section 20 above shall maintain labor neutrality
1691-toward any union organizing campaign for any employees of
1692-the taxpayer assigned to work on the premises of the REV
1693-Illinois Project Site. This paragraph shall not apply to
1694-an electric vehicle manufacturer, electric vehicle
1695-component part manufacturer, electric vehicle power supply
1696-manufacturer, or renewable energy manufacturer, or any
1697-joint venture including an electric vehicle manufacturer,
1698-electric vehicle component part manufacturer, electric
1699-vehicle power supply manufacturer, or renewable energy
1700-manufacturer, or an entity engaged in eVTOL or
1701-hybrid-electric or fully electric propulsion systems for
1702-airliners research, development, or manufacturing, who is
1703-
1704-
1705-subject to collective bargaining agreement entered into
1706-prior to the taxpayer filing an application pursuant to
1707-this Act.
1708-(b) The Department shall post on its website the terms of
1709-each agreement entered into under this Act. Such information
1710-shall be posted within 10 days after entering into the
1711-agreement and must include the following:
1712-(1) the name of the taxpayer;
1713-(2) the location of the project;
1714-(3) the estimated value of the credit;
1715-(4) the number of new employee jobs and, if
1716-applicable, number of retained employee jobs at the
1717-project; and
1718-(5) whether or not the project is in an underserved
1719-area or energy transition area.
1720-(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
1721-103-9, eff. 6-7-23.)
1722-(20 ILCS 686/65)
1723-Sec. 65. REV Construction Jobs Credits Certified payroll.
1724-(a) Each REV program participant contractor and
1725-subcontractor that is engaged in construction work on project
1726-facilities for a taxpayer who seeks to apply for a REV
1727-Construction Jobs credit shall annually, until construction is
1728-completed, submit a report that, at a minimum, describes the
1729-projected project scope, timeline, and anticipated budget.
1730-
1731-
1732-Once the project has commenced, the annual report shall
1733-include actual data for the prior year as well as projections
1734-for each additional year through completion of the project.
1735-The Department shall issue detailed reporting guidelines
1736-prescribing the requirements of construction related reports. :
1737-In order to receive credit for construction expenses, the
1738-company must provide the Department with evidence that a
1739-certified third-party executed an Agreed-Upon Procedure (AUP)
1740-verifying the construction expenses or accept the standard
1741-construction wage expense estimated by the Department.
1742-Upon review of the final project scope, timeline, budget,
1743-and AUP, the Department shall issue a tax credit certificate
1744-reflecting a percentage of the total construction job wages
1745-paid throughout the completion of the project.
1746-(1) make and keep, for a period of 5 years from the
1747-date of the last payment made on a contract or subcontract
1748-for construction of facilities for a REV Illinois Project
1749-pursuant to an agreement, records of all laborers and
1750-other workers employed by the contractor or subcontractor
1751-on the project; the records shall include:
1752-(A) the worker's name;
1753-(B) the worker's address;
1754-(C) the worker's telephone number, if available;
1755-(D) the worker's social security number;
1756-(E) the worker's classification or
1757-classifications;
1758-
1759-
1760-(F) the worker's gross and net wages paid in each
1761-pay period;
1762-(G) the worker's number of hours worked in each
1763-day;
1764-(H) the worker's starting and ending times of work
1765-each day;
1766-(I) the worker's hourly wage rate; and
1767-(J) the worker's hourly overtime wage rate; and
1768-(2) no later than the 15th day of each calendar month,
1769-provide a certified payroll for the immediately preceding
1770-month to the taxpayer in charge of the project; within 5
1771-business days after receiving the certified payroll, the
1772-Taxpayer shall file the certified payroll with the
1773-Department of Labor and the Department; a certified
1774-payroll must be filed for only those calendar months
1775-during which construction on the REV Illinois Project
1776-facilities has occurred; the certified payroll shall
1777-consist of a complete copy of the records identified in
1778-paragraph (1), but may exclude the starting and ending
1779-times of work each day; the certified payroll shall be
1780-accompanied by a statement signed by the contractor or
1781-subcontractor or an officer, employee, or agent of the
1782-contractor or subcontractor which avers that:
1783-(A) he or she has examined the certified payroll
1784-records required to be submitted by the Act and such
1785-records are true and accurate; and
1786-
1787-
1788-(B) the contractor or subcontractor is aware that
1789-filing a certified payroll that he or she knows to be
1790-false is a Class A misdemeanor.
1791-A general contractor is not prohibited from relying on a
1792-certified payroll of a lower-tier subcontractor, provided the
1793-general contractor does not knowingly rely upon a
1794-subcontractor's false certification.
1795-(b) (Blank). Any contractor or subcontractor subject to
1796-this Section, and any officer, employee, or agent of such
1797-contractor or subcontractor whose duty as an officer,
1798-employee, or agent it is to file a certified payroll under this
1799-Section, who willfully fails to file such a certified payroll,
1800-on or before the date such certified payroll is required to be
1801-filed and any person who willfully files a false certified
1802-payroll as to any material fact is in violation of this Act and
1803-guilty of a Class A misdemeanor and may be enforced by the
1804-Illinois Department of Labor or the Department. The Attorney
1805-General shall represented the Illinois Department of Labor or
1806-the Department in the proceeding.
1807-(c) (Blank). The taxpayer in charge of the project shall
1808-keep the records submitted in accordance with this Section for
1809-a period of 5 years from the date of the last payment for work
1810-on a contract or subcontract for the project.
1811-(d) (Blank). The records submitted in accordance with this
1812-Section shall be considered public records, except an
1813-employee's address, telephone number, and social security
1814-
1815-
1816-number, which shall be redacted. The records shall be made
1817-publicly available in accordance with the Freedom of
1818-Information Act. The contractor or subcontractor shall submit
1819-reports to the Department of Labor electronically that meet
1820-the requirements of this subsection and shall share the
1821-information with the Department to comply with the awarding of
1822-the REV Construction Jobs Credit. A contractor, subcontractor,
1823-or public body may retain records required under this Section
1824-in paper or electronic format.
1825-(e) Upon 7 business days' notice, the taxpayer contractor
1826-and each subcontractor shall make available to any State
1827-agency and to federal, State, or local law enforcement
1828-agencies and prosecutors for inspection and copying at a
1829-location within this State during reasonable hours, the report
1830-described in subsection (a) records identified in paragraph
1831-(1) of this subsection to the Taxpayer in charge of the
1832-Project, its officers and agents, the Director of the
1833-Department of Labor and his/her deputies and agents, and to
1834-federal, State, or local law enforcement agencies and
1835-prosecutors.
1836-(Source: P.A. 102-669, eff. 11-16-21.)
1837-(20 ILCS 686/95)
1838-Sec. 95. Utility tax exemptions for REV Illinois Project
1839-sites. The Department may certify a taxpayer with a REV
1840-Illinois credit for a Project that meets the qualifications
1841-
1842-
1843-under Section paragraphs (1), (2), and (4), (4.1), or (5) of
1844-subsection (c) of Section 20, subject to an agreement under
1845-this Act for an exemption from the tax imposed at the project
1846-site by Section 2-4 of the Electricity Excise Tax Law. To
1847-receive such certification, the taxpayer must be registered to
1848-self-assess that tax. The taxpayer is also exempt from any
1849-additional charges added to the taxpayer's utility bills at
1850-the project site as a pass-on of State utility taxes under
1851-Section 9-222 of the Public Utilities Act. The taxpayer must
1852-meet any other the criteria for certification set by the
1853-Department.
1854-The Department shall determine the period during which the
1855-exemption from the Electricity Excise Tax Law and the charges
1856-imposed under Section 9-222 of the Public Utilities Act are in
1857-effect, which shall not exceed 30 10 years from the date of the
1858-taxpayer's initial receipt of certification from the
1859-Department under this Section.
1860-The Department is authorized to adopt rules to carry out
1861-the provisions of this Section, including procedures to apply
1862-for the exemptions; to define the amounts and types of
1863-eligible investments that an applicant must make in order to
1864-receive electricity excise tax exemptions or exemptions from
1865-the additional charges imposed under Section 9-222 and the
1866-Public Utilities Act; to approve such electricity excise tax
1867-exemptions for applicants whose investments are not yet placed
1868-in service; and to require that an applicant granted an
1869-
1870-
1871-electricity excise tax exemption or an exemption from
1872-additional charges under Section 9-222 of the Public Utilities
1873-Act repay the exempted amount if the Applicant fails to comply
1874-with the terms and conditions of the agreement.
1875-Upon certification by the Department under this Section,
1876-the Department shall notify the Department of Revenue of the
1877-certification. The Department of Revenue shall notify the
1878-public utilities of the exempt status of any taxpayer
1879-certified for exemption under this Act from the electricity
1880-excise tax or pass-on charges. The exemption status shall take
1881-effect within 3 months after certification of the taxpayer and
1882-notice to the Department of Revenue by the Department.
1883-(Source: P.A. 102-669, eff. 11-16-21.)
1884-(20 ILCS 686/105)
1885-Sec. 105. Building materials exemptions for REV Illinois
1886-Project sites.
1887-(a) The Department may certify a Taxpayer with a REV
1888-Illinois Project that meets the qualifications under
1889-paragraphs (1), (2), or (4), (4.1), or (5) of subsection (c) of
1890-Section 20, subject to an agreement under this Act, for an
1891-exemption from any State or local use tax or retailers'
1892-occupation tax on building materials for the construction of
1893-its project facilities. The taxpayer must meet any criteria
1894-for certification set by the Department under this Act.
1895-The Department shall determine the period during which the
1896-
1897-
1898-exemption from State and local use tax and retailers'
1899-occupation tax are in effect, but in no event shall exceed 5
1900-years in accordance with Section 5m of the Retailers'
1901-Occupation Tax Act.
1902-The Department is authorized to promulgate rules and
1903-regulations to carry out the provisions of this Section,
1904-including procedures to apply for the exemption; to define the
1905-amounts and types of eligible investments that an applicant
1906-must make in order to receive tax exemption; to approve such
1907-tax exemption for an applicant whose investments are not yet
1908-placed in service; and to require that an applicant granted
1909-exemption repay the exempted amount if the applicant fails to
1910-comply with the terms and conditions of the agreement with the
1911-Department.
1912-Upon certification by the Department under this Section,
1913-the Department shall notify the Department of Revenue of the
1914-certification. The exemption status shall take effect within 3
1915-months after certification of the taxpayer and notice to the
1916-Department of Revenue by the Department.
1917-(Source: P.A. 102-669, eff. 11-16-21.)
1918-Section 17. The Energy Transition Act is amended by
1919-changing Sections 5-20 and 5-45 as follows:
1920-(20 ILCS 730/5-20)
1921-(Section scheduled to be repealed on September 15, 2045)
1922-
1923-
1924-Sec. 5-20. Clean Jobs Workforce Network Program.
1925-(a) As used in this Section, "Program" means the Clean
1926-Jobs Workforce Network Program.
1927-(b) Subject to appropriation, the Department shall develop
1928-and, through Regional Administrators, administer the Clean
1929-Jobs Workforce Network Program to create a network of 14 13
1930-Program delivery Hub Sites with program elements delivered by
1931-community-based organizations and their subcontractors
1932-geographically distributed across the State including at least
1933-one Hub Site located in or near each of the following areas:
1934-Chicago (South Side), Chicago (Southwest and West Sides),
1935-Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign,
1936-Danville, Decatur, Carbondale, East St. Louis, Kankakee, and
1937-Alton.
1938-(c) In admitting program participants, for each workforce
1939-Hub Site, the Regional Administrators shall:
1940-(1) in each Hub Site where the applicant pool allows:
1941-(A) dedicate at least one-third of program
1942-placements to applicants who reside in a geographic
1943-area that is impacted by economic and environmental
1944-challenges, defined as an area that is both (i) an R3
1945-Area, as defined pursuant to Section 10-40 of the
1946-Cannabis Regulation and Tax Act, and (ii) an
1947-environmental justice community, as defined by the
1948-Illinois Power Agency, excluding any racial or ethnic
1949-indicators used by the agency unless and until the
1950-
1951-
1952-constitutional basis for their inclusion in
1953-determining program admissions is established. Among
1954-applicants that satisfy these criteria, preference
1955-shall be given to applicants who face barriers to
1956-employment, such as low educational attainment, prior
1957-involvement with the criminal legal system, and
1958-language barriers; and applicants that are graduates
1959-of or currently enrolled in the foster care system;
1960-and
1961-(B) dedicate at least two-thirds of program
1962-placements to applicants that satisfy the criteria in
1963-paragraph (1) or who reside in a geographic area that
1964-is impacted by economic or environmental challenges,
1965-defined as an area that is either (i) an R3 Area, as
1966-defined pursuant to Section 10-40 of the Cannabis
1967-Regulation and Tax Act, or (ii) an environmental
1968-justice community, as defined by the Illinois Power
1969-Agency, excluding any racial or ethnic indicators used
1970-by the agency unless and until the constitutional
1971-basis for their inclusion in determining program
1972-admissions is established. Among applicants that
1973-satisfy these criteria, preference shall be given to
1974-applicants who face barriers to employment, such as
1975-low educational attainment, prior involvement with the
1976-criminal legal system, and language barriers; and
1977-applicants that are graduates of or currently enrolled
1978-
1979-
1980-in the foster care system; and
1981-(2) prioritize the remaining program placements for:
1982-applicants who are displaced energy workers as defined in
1983-the Energy Community Reinvestment Act; persons who face
1984-barriers to employment, including low educational
1985-attainment, prior involvement with the criminal legal
1986-system, and language barriers; and applicants who are
1987-graduates of or currently enrolled in the foster care
1988-system, regardless of the applicant's area of residence.
1989-The Department and Regional Administrators shall protect
1990-the confidentiality of any personal information provided by
1991-program applicants regarding the applicant's status as a
1992-formerly incarcerated person or foster care recipient;
1993-however, the Department or Regional Administrators may publish
1994-aggregated data on the number of participants that were
1995-formerly incarcerated or foster care recipients so long as
1996-that publication protects the identities of those persons.
1997-Any person who applies to the program may elect not to
1998-share with the Department or Regional Administrators whether
1999-he or she is a graduate or currently enrolled in the foster
2000-care system or was formerly convicted.
2001-(d) Program elements for each Hub Site shall be provided
2002-by a community-based organization. The Department shall
2003-initially select a community-based organization in each Hub
2004-Site and shall subsequently select a community-based
2005-organization in each Hub Site every 3 years. Community-based
2006-
2007-
2008-organizations delivering program elements outlined in
2009-subsection (e) may provide all elements required or may
2010-subcontract to other entities for provision of portions of
2011-program elements, including, but not limited to,
2012-administrative soft and hard skills for program participants,
2013-delivery of specific training in the core curriculum, or
2014-provision of other support functions for program delivery
2015-compliance.
2016-(e) The Clean Jobs Workforce Hubs Network shall:
2017-(1) coordinate with Energy Transition Navigators: (i)
2018-to increase participation in the Clean Jobs Workforce
2019-Network Program and clean energy and related sector
2020-workforce and training opportunities; (ii) coordinate
2021-recruitment, communications, and ongoing engagement with
2022-potential employers, including, but not limited to,
2023-activities such as job matchmaking initiatives, hosting
2024-events such as job fairs, and collaborating with other Hub
2025-Sites to identify and implement best practices for
2026-employer engagement; and (iii) leverage community-based
2027-organizations, educational institutions, and
2028-community-based and labor-based training providers to
2029-ensure program-eligible individuals across the State have
2030-dedicated and sustained support to enter and complete the
2031-career pipeline for clean energy and related sector jobs;
2032-(2) develop formal partnerships, including formal
2033-sector partnerships between community-based organizations
2034-
2035-
2036-and entities that provide clean energy jobs, including
2037-businesses, nonprofit organizations, and worker-owned
2038-cooperatives, to ensure that Program participants have
2039-priority access to employment training and hiring
2040-opportunities; and
2041-(3) implement the Clean Jobs Curriculum to provide,
2042-including, but not limited to, training, certification
2043-preparation, job readiness, and skill development,
2044-including soft skills, math skills, technical skills,
2045-certification test preparation, and other development
2046-needed, to Program participants.
2047-(f) Funding for the Program is subject to appropriation
2048-from the Energy Transition Assistance Fund.
2049-(g) The Department shall require submission of quarterly
2050-reports, including program performance metrics by each Hub
2051-Site to the Regional Administrator of their Program Delivery
2052-Area. Program performance metrics include, but are not limited
2053-to:
2054-(1) demographic data, including racial, gender,
2055-residency in eligible communities, and geographic
2056-distribution data, on Program trainees entering and
2057-graduating the Program;
2058-(2) demographic data, including racial, gender,
2059-residency in eligible communities, and geographic
2060-distribution data, on Program trainees who are placed in
2061-employment, including the percentages of trainees by race,
2062-
2063-
2064-gender, and geographic categories in each individual job
2065-type or category and whether employment is union,
2066-nonunion, or nonunion via temporary agency;
2067-(3) trainee job acquisition and retention statistics,
2068-including the duration of employment (start and end dates
2069-of hires) by race, gender, and geography;
2070-(4) hourly wages, including hourly overtime pay rate,
2071-and benefits of trainees placed into employment by race,
2072-gender, and geography;
2073-(5) percentage of jobs by race, gender, and geography
2074-held by Program trainees or graduates that are full-time
2075-equivalent positions, meaning that the position held is
2076-full-time, direct, and permanent based on 2,080 hours
2077-worked per year (paid directly by the employer, whose
2078-activities, schedule, and manner of work the employer
2079-controls, and receives pay and benefits in the same manner
2080-as permanent employees); and
2081-(6) qualitative data consisting of open-ended
2082-reporting on pertinent issues, including, but not limited
2083-to, qualitative descriptions accompanying metrics or
2084-identifying key successes and challenges.
2085-(h) Within 3 years after the effective date of this Act,
2086-the Department shall select an independent evaluator to review
2087-and prepare a report on the performance of the Program and
2088-Regional Administrators.
2089-(Source: P.A. 102-662, eff. 9-15-21.)
2090-
2091-
2092-(20 ILCS 730/5-45)
2093-(Section scheduled to be repealed on September 15, 2045)
2094-Sec. 5-45. Clean Energy Contractor Incubator Program.
2095-(a) As used in this Section, "community-based
2096-organization" means a nonprofit organization, including an
2097-accredited public college or university that:
2098-(1) has a history of providing business-related
2099-assistance and knowledge to help entrepreneurs start, run,
2100-and grow their businesses;
2101-(2) has knowledge of construction and clean energy
2102-trades;
2103-(3) demonstrates relationships with local residents
2104-and other organizations serving the community; and
2105-(4) demonstrates the ability to effectively serve
2106-diverse and underrepresented populations.
2107-(b) Subject to appropriation, the Department shall
2108-develop, and through the Regional Administrators, administer
2109-the Clean Energy Contractor Incubator Program ("Program") to
2110-create a network of 14 13 Program delivery Hub Sites with
2111-program elements delivered by community-based organizations
2112-and their subcontractors geographically distributed across the
2113-State, including at least one Hub Site located in or near each
2114-of the following areas: Chicago (South Side), Chicago
2115-(Southwest and West Sides), Waukegan, Rockford, Aurora,
2116-Joliet, Peoria, Champaign, Danville, Decatur, Carbondale, East
2117-
2118-
2119-St. Louis, Kankakee, and Alton.
2120-(c) In admitting program participants, for each Contractor
2121-Incubator Hub Site the Regional Administrators shall:
2122-(1) in each Hub Site where the applicant pool allows:
2123-(A) dedicate at least one-third of program
2124-placements to the owners of clean energy contractor
2125-businesses and nonprofits who reside in a geographic
2126-area that is impacted by economic and environmental
2127-challenges, defined as an area that is both (i) an R3
2128-Area, as defined pursuant to Section 10-40 of the
2129-Cannabis Regulation and Tax Act, and (ii) an
2130-environmental justice community, as defined by the
2131-Illinois Power Agency, excluding any racial or ethnic
2132-indicators used by the agency unless and until the
2133-constitutional basis for their inclusion in
2134-determining program admissions is established. Among
2135-applicants that satisfy these criteria, preference
2136-shall be given to applicants who face barriers to
2137-employment, such as low educational attainment, prior
2138-involvement with the criminal legal system, and
2139-language barriers; and applicants that are graduates
2140-of or currently enrolled in the foster care system;
2141-and
2142-(B) dedicate at least two-thirds of program
2143-placements to the owners of clean energy contractor
2144-businesses and nonprofits that satisfy the criteria in
2145-
2146-
2147-paragraph (1) or who reside in eligible communities.
2148-Among applicants who live in eligible communities,
2149-preference shall be given to applicants who face
2150-barriers to employment, such as low educational
2151-attainment, prior involvement with the criminal legal
2152-system, and language barriers; and applicants that are
2153-graduates of or currently enrolled in the foster care
2154-system; and
2155-(2) prioritize the remaining program placements for:
2156-applicants who are displaced energy workers as defined in
2157-the Energy Community Reinvestment Act; persons who face
2158-barriers to employment, including low educational
2159-attainment, prior involvement with the criminal legal
2160-system, and language barriers; and applicants who are
2161-graduates of or currently enrolled in the foster care
2162-system, regardless of the applicants' area of residence.
2163-Consideration shall also be given to any current or past
2164-participant in the Clean Jobs Workforce Network Program,
2165-Illinois Climate Works Preapprenticeship Program, or Returning
2166-Residents Clean Energy Jobs Training Program.
2167-The Department and Regional Administrators shall protect
2168-the confidentiality of any personal information provided by
2169-program applicants regarding the applicant's status as a
2170-formerly incarcerated person or foster care recipient;
2171-however, the Department or Regional Administrators may publish
2172-aggregated data on the number of participants that were
2173-
2174-
2175-formerly incarcerated or foster care recipients so long as
2176-that publication protects the identities of those persons.
2177-Any person who applies to the program may elect not to
2178-share with the Department or Regional Administrators whether
2179-he or she is a graduate or currently enrolled in the foster
2180-care system or was formerly convicted.
2181-(d) Program elements at each Hub Site shall be provided by
2182-a local community-based organization. The Department shall
2183-initially select a community-based organization in each Hub
2184-Site and shall subsequently select a community-based
2185-organization in each Hub Site every 3 years. Community-based
2186-organizations delivering program elements outlined in
2187-subsection (e) may provide all elements required or may
2188-subcontract to other entities for provision of portions of
2189-program elements, including, but not limited to,
2190-administrative soft and hard skills for program participants,
2191-delivery of specific training in the core curriculum, or
2192-provision of other support functions for program delivery
2193-compliance.
2194-(e) The Clean Energy Contractor Incubator Program shall:
2195-(1) provide access to low-cost capital for small clean
2196-energy businesses and contractors;
2197-(2) provide support for obtaining financial assurance,
2198-including, but not limited to: bonding; back office
2199-services; insurance, permits, training and certifications;
2200-business planning; and low-interest loans;
2201-
2202-
2203-(3) train, mentor, and provide other support needed to
2204-allow participant contractors to: (i) build their
2205-businesses and connect to specific projects, (ii) register
2206-as approved vendors, (iii) engage in approved vendor
2207-subcontracting and qualified installer opportunities, (iv)
2208-develop partnering and networking skills, (v) compete for
2209-capital and other resources, and (vi) execute clean
2210-energy-related project installations and subcontracts;
2211-(4) ensure that participant contractors, community
2212-partners, and potential contractor clients are aware of
2213-and engaged in the Program;
2214-(5) connect participant contractors with the
2215-Department of Labor for resources, training, and technical
2216-support on prevailing wage compliance;
2217-(6) provide recruitment and ongoing engagement with
2218-entities that hire contractors and subcontractors,
2219-programs providing renewable energy resource-related
2220-projects, incentive programs, and approved vendor and
2221-qualified installer opportunities, including, but not
2222-limited to, activities such as matchmaking, events, and
2223-collaborating with other Hub Sites.
2224-(f) Funding for the Program and independent evaluations as
2225-described in subsection (h) are subject to appropriation from
2226-the Energy Transition Assistance Fund.
2227-(g) The Department shall require submission of quarterly
2228-reports including program performance metrics by each Hub Site
2229-
2230-
2231-to the Regional Administrator of their Program Delivery Area.
2232-Program performance metrics include, but are not limited to:
2233-(1) demographic data including: race, gender,
2234-geographic location, R3 residency, Environmental Justice
2235-Community residency, foster care system participation, and
2236-justice-involvement for the owners of contractors
2237-applying, accepted into, and graduating from the Program;
2238-(2) the number of projects completed by participant
2239-contractors, alone or in partnership, by race, gender,
2240-geographic location, R3 residency, Environmental Justice
2241-Community residency, foster care system participation, and
2242-justice-involvement for the owners of contractors;
2243-(3) the number of partnerships with participant
2244-contractors that are expected to result in contracts for
2245-work by the participant contractor, by race, gender,
2246-geographic location, R3 residency, Environmental Justice
2247-Community residency, foster care system participation, and
2248-justice-involvement for the owners of contractors;
2249-(4) changes in participant contractors' business
2250-revenue, by race, gender, geographic location, R3
2251-residency, Environmental Justice Community residency,
2252-foster care system participation, and justice-involvement
2253-for the owners of contractors;
2254-(5) the number of new hires by participant
2255-contractors, by race, gender, geographic location, R3
2256-residency, Environmental Justice Community residency,
2257-
2258-
2259-foster care system participation, and justice-involvement;
2260-(6) demographic data, including race, gender,
2261-geographic location, R3 residency, Environmental Justice
2262-Community residency, foster care system participation, and
2263-justice-involvement, and average wage data, for new hires
2264-by participant contractors;
2265-(7) certifications held by participant contractors,
2266-and number of participants holding each certification,
2267-including, but not limited to, registration under the
2268-Business Enterprise for Minorities, Women, and Persons
2269-with Disabilities Act program and other programs intended
2270-to certify BIPOC entities;
2271-(8) the number of Program sessions attended by
2272-participant contractors, aggregated by race; and
2273-(9) indicators relevant for assessing the general
2274-financial health of participant contractors.
2275-(h) Within 3 years after the effective date of this Act,
2276-the Department shall select an independent evaluator to review
2277-and prepare a report on the performance of the Program and
2278-Regional Administrators. The report shall be posted publicly.
2279-(Source: P.A. 102-662, eff. 9-15-21.)
2280-Section 20. The Illinois Income Tax Act is amended by
2281-changing Section 201 and by adding Section 241 as follows:
2282-(35 ILCS 5/201)
2283-
2284-
2285-Sec. 201. Tax imposed.
2286-(a) In general. A tax measured by net income is hereby
2287-imposed on every individual, corporation, trust and estate for
2288-each taxable year ending after July 31, 1969 on the privilege
2289-of earning or receiving income in or as a resident of this
2290-State. Such tax shall be in addition to all other occupation or
2291-privilege taxes imposed by this State or by any municipal
2292-corporation or political subdivision thereof.
2293-(b) Rates. The tax imposed by subsection (a) of this
2294-Section shall be determined as follows, except as adjusted by
2295-subsection (d-1):
2296-(1) In the case of an individual, trust or estate, for
2297-taxable years ending prior to July 1, 1989, an amount
2298-equal to 2 1/2% of the taxpayer's net income for the
2299-taxable year.
2300-(2) In the case of an individual, trust or estate, for
2301-taxable years beginning prior to July 1, 1989 and ending
2302-after June 30, 1989, an amount equal to the sum of (i) 2
2303-1/2% of the taxpayer's net income for the period prior to
2304-July 1, 1989, as calculated under Section 202.3, and (ii)
2305-3% of the taxpayer's net income for the period after June
2306-30, 1989, as calculated under Section 202.3.
2307-(3) In the case of an individual, trust or estate, for
2308-taxable years beginning after June 30, 1989, and ending
2309-prior to January 1, 2011, an amount equal to 3% of the
2310-taxpayer's net income for the taxable year.
2311-
2312-
2313-(4) In the case of an individual, trust, or estate,
2314-for taxable years beginning prior to January 1, 2011, and
2315-ending after December 31, 2010, an amount equal to the sum
2316-of (i) 3% of the taxpayer's net income for the period prior
2317-to January 1, 2011, as calculated under Section 202.5, and
2318-(ii) 5% of the taxpayer's net income for the period after
2319-December 31, 2010, as calculated under Section 202.5.
2320-(5) In the case of an individual, trust, or estate,
2321-for taxable years beginning on or after January 1, 2011,
2322-and ending prior to January 1, 2015, an amount equal to 5%
2323-of the taxpayer's net income for the taxable year.
2324-(5.1) In the case of an individual, trust, or estate,
2325-for taxable years beginning prior to January 1, 2015, and
2326-ending after December 31, 2014, an amount equal to the sum
2327-of (i) 5% of the taxpayer's net income for the period prior
2328-to January 1, 2015, as calculated under Section 202.5, and
2329-(ii) 3.75% of the taxpayer's net income for the period
2330-after December 31, 2014, as calculated under Section
2331-202.5.
2332-(5.2) In the case of an individual, trust, or estate,
2333-for taxable years beginning on or after January 1, 2015,
2334-and ending prior to July 1, 2017, an amount equal to 3.75%
2335-of the taxpayer's net income for the taxable year.
2336-(5.3) In the case of an individual, trust, or estate,
2337-for taxable years beginning prior to July 1, 2017, and
2338-ending after June 30, 2017, an amount equal to the sum of
2339-
2340-
2341-(i) 3.75% of the taxpayer's net income for the period
2342-prior to July 1, 2017, as calculated under Section 202.5,
2343-and (ii) 4.95% of the taxpayer's net income for the period
2344-after June 30, 2017, as calculated under Section 202.5.
2345-(5.4) In the case of an individual, trust, or estate,
2346-for taxable years beginning on or after July 1, 2017, an
2347-amount equal to 4.95% of the taxpayer's net income for the
2348-taxable year.
2349-(6) In the case of a corporation, for taxable years
2350-ending prior to July 1, 1989, an amount equal to 4% of the
2351-taxpayer's net income for the taxable year.
2352-(7) In the case of a corporation, for taxable years
2353-beginning prior to July 1, 1989 and ending after June 30,
2354-1989, an amount equal to the sum of (i) 4% of the
2355-taxpayer's net income for the period prior to July 1,
2356-1989, as calculated under Section 202.3, and (ii) 4.8% of
2357-the taxpayer's net income for the period after June 30,
2358-1989, as calculated under Section 202.3.
2359-(8) In the case of a corporation, for taxable years
2360-beginning after June 30, 1989, and ending prior to January
2361-1, 2011, an amount equal to 4.8% of the taxpayer's net
2362-income for the taxable year.
2363-(9) In the case of a corporation, for taxable years
2364-beginning prior to January 1, 2011, and ending after
2365-December 31, 2010, an amount equal to the sum of (i) 4.8%
2366-of the taxpayer's net income for the period prior to
2367-
2368-
2369-January 1, 2011, as calculated under Section 202.5, and
2370-(ii) 7% of the taxpayer's net income for the period after
2371-December 31, 2010, as calculated under Section 202.5.
2372-(10) In the case of a corporation, for taxable years
2373-beginning on or after January 1, 2011, and ending prior to
2374-January 1, 2015, an amount equal to 7% of the taxpayer's
2375-net income for the taxable year.
2376-(11) In the case of a corporation, for taxable years
2377-beginning prior to January 1, 2015, and ending after
2378-December 31, 2014, an amount equal to the sum of (i) 7% of
2379-the taxpayer's net income for the period prior to January
2380-1, 2015, as calculated under Section 202.5, and (ii) 5.25%
2381-of the taxpayer's net income for the period after December
2382-31, 2014, as calculated under Section 202.5.
2383-(12) In the case of a corporation, for taxable years
2384-beginning on or after January 1, 2015, and ending prior to
2385-July 1, 2017, an amount equal to 5.25% of the taxpayer's
2386-net income for the taxable year.
2387-(13) In the case of a corporation, for taxable years
2388-beginning prior to July 1, 2017, and ending after June 30,
2389-2017, an amount equal to the sum of (i) 5.25% of the
2390-taxpayer's net income for the period prior to July 1,
2391-2017, as calculated under Section 202.5, and (ii) 7% of
2392-the taxpayer's net income for the period after June 30,
2393-2017, as calculated under Section 202.5.
2394-(14) In the case of a corporation, for taxable years
2395-
2396-
2397-beginning on or after July 1, 2017, an amount equal to 7%
2398-of the taxpayer's net income for the taxable year.
2399-The rates under this subsection (b) are subject to the
2400-provisions of Section 201.5.
2401-(b-5) Surcharge; sale or exchange of assets, properties,
2402-and intangibles of organization gaming licensees. For each of
2403-taxable years 2019 through 2027, a surcharge is imposed on all
2404-taxpayers on income arising from the sale or exchange of
2405-capital assets, depreciable business property, real property
2406-used in the trade or business, and Section 197 intangibles (i)
2407-of an organization licensee under the Illinois Horse Racing
2408-Act of 1975 and (ii) of an organization gaming licensee under
2409-the Illinois Gambling Act. The amount of the surcharge is
2410-equal to the amount of federal income tax liability for the
2411-taxable year attributable to those sales and exchanges. The
2412-surcharge imposed shall not apply if:
2413-(1) the organization gaming license, organization
2414-license, or racetrack property is transferred as a result
2415-of any of the following:
2416-(A) bankruptcy, a receivership, or a debt
2417-adjustment initiated by or against the initial
2418-licensee or the substantial owners of the initial
2419-licensee;
2420-(B) cancellation, revocation, or termination of
2421-any such license by the Illinois Gaming Board or the
2422-Illinois Racing Board;
2423-
2424-
2425-(C) a determination by the Illinois Gaming Board
2426-that transfer of the license is in the best interests
2427-of Illinois gaming;
2428-(D) the death of an owner of the equity interest in
2429-a licensee;
2430-(E) the acquisition of a controlling interest in
2431-the stock or substantially all of the assets of a
2432-publicly traded company;
2433-(F) a transfer by a parent company to a wholly
2434-owned subsidiary; or
2435-(G) the transfer or sale to or by one person to
2436-another person where both persons were initial owners
2437-of the license when the license was issued; or
2438-(2) the controlling interest in the organization
2439-gaming license, organization license, or racetrack
2440-property is transferred in a transaction to lineal
2441-descendants in which no gain or loss is recognized or as a
2442-result of a transaction in accordance with Section 351 of
2443-the Internal Revenue Code in which no gain or loss is
2444-recognized; or
2445-(3) live horse racing was not conducted in 2010 at a
2446-racetrack located within 3 miles of the Mississippi River
2447-under a license issued pursuant to the Illinois Horse
2448-Racing Act of 1975.
2449-The transfer of an organization gaming license,
2450-organization license, or racetrack property by a person other
2451-
2452-
2453-than the initial licensee to receive the organization gaming
2454-license is not subject to a surcharge. The Department shall
2455-adopt rules necessary to implement and administer this
2456-subsection.
2457-(c) Personal Property Tax Replacement Income Tax.
2458-Beginning on July 1, 1979 and thereafter, in addition to such
2459-income tax, there is also hereby imposed the Personal Property
2460-Tax Replacement Income Tax measured by net income on every
2461-corporation (including Subchapter S corporations), partnership
2462-and trust, for each taxable year ending after June 30, 1979.
2463-Such taxes are imposed on the privilege of earning or
2464-receiving income in or as a resident of this State. The
2465-Personal Property Tax Replacement Income Tax shall be in
2466-addition to the income tax imposed by subsections (a) and (b)
2467-of this Section and in addition to all other occupation or
2468-privilege taxes imposed by this State or by any municipal
2469-corporation or political subdivision thereof.
2470-(d) Additional Personal Property Tax Replacement Income
2471-Tax Rates. The personal property tax replacement income tax
2472-imposed by this subsection and subsection (c) of this Section
2473-in the case of a corporation, other than a Subchapter S
2474-corporation and except as adjusted by subsection (d-1), shall
2475-be an additional amount equal to 2.85% of such taxpayer's net
2476-income for the taxable year, except that beginning on January
2477-1, 1981, and thereafter, the rate of 2.85% specified in this
2478-subsection shall be reduced to 2.5%, and in the case of a
2479-
2480-
2481-partnership, trust or a Subchapter S corporation shall be an
2482-additional amount equal to 1.5% of such taxpayer's net income
2483-for the taxable year.
2484-(d-1) Rate reduction for certain foreign insurers. In the
2485-case of a foreign insurer, as defined by Section 35A-5 of the
2486-Illinois Insurance Code, whose state or country of domicile
2487-imposes on insurers domiciled in Illinois a retaliatory tax
2488-(excluding any insurer whose premiums from reinsurance assumed
2489-are 50% or more of its total insurance premiums as determined
2490-under paragraph (2) of subsection (b) of Section 304, except
2491-that for purposes of this determination premiums from
2492-reinsurance do not include premiums from inter-affiliate
2493-reinsurance arrangements), beginning with taxable years ending
2494-on or after December 31, 1999, the sum of the rates of tax
2495-imposed by subsections (b) and (d) shall be reduced (but not
2496-increased) to the rate at which the total amount of tax imposed
2497-under this Act, net of all credits allowed under this Act,
2498-shall equal (i) the total amount of tax that would be imposed
2499-on the foreign insurer's net income allocable to Illinois for
2500-the taxable year by such foreign insurer's state or country of
2501-domicile if that net income were subject to all income taxes
2502-and taxes measured by net income imposed by such foreign
2503-insurer's state or country of domicile, net of all credits
2504-allowed or (ii) a rate of zero if no such tax is imposed on
2505-such income by the foreign insurer's state of domicile. For
2506-the purposes of this subsection (d-1), an inter-affiliate
2507-
2508-
2509-includes a mutual insurer under common management.
2510-(1) For the purposes of subsection (d-1), in no event
2511-shall the sum of the rates of tax imposed by subsections
2512-(b) and (d) be reduced below the rate at which the sum of:
2513-(A) the total amount of tax imposed on such
2514-foreign insurer under this Act for a taxable year, net
2515-of all credits allowed under this Act, plus
2516-(B) the privilege tax imposed by Section 409 of
2517-the Illinois Insurance Code, the fire insurance
2518-company tax imposed by Section 12 of the Fire
2519-Investigation Act, and the fire department taxes
2520-imposed under Section 11-10-1 of the Illinois
2521-Municipal Code,
2522-equals 1.25% for taxable years ending prior to December
2523-31, 2003, or 1.75% for taxable years ending on or after
2524-December 31, 2003, of the net taxable premiums written for
2525-the taxable year, as described by subsection (1) of
2526-Section 409 of the Illinois Insurance Code. This paragraph
2527-will in no event increase the rates imposed under
2528-subsections (b) and (d).
2529-(2) Any reduction in the rates of tax imposed by this
2530-subsection shall be applied first against the rates
2531-imposed by subsection (b) and only after the tax imposed
2532-by subsection (a) net of all credits allowed under this
2533-Section other than the credit allowed under subsection (i)
2534-has been reduced to zero, against the rates imposed by
2535-
2536-
2537-subsection (d).
2538-This subsection (d-1) is exempt from the provisions of
2539-Section 250.
2540-(e) Investment credit. A taxpayer shall be allowed a
2541-credit against the Personal Property Tax Replacement Income
2542-Tax for investment in qualified property.
2543-(1) A taxpayer shall be allowed a credit equal to .5%
2544-of the basis of qualified property placed in service
2545-during the taxable year, provided such property is placed
2546-in service on or after July 1, 1984. There shall be allowed
2547-an additional credit equal to .5% of the basis of
2548-qualified property placed in service during the taxable
2549-year, provided such property is placed in service on or
2550-after July 1, 1986, and the taxpayer's base employment
2551-within Illinois has increased by 1% or more over the
2552-preceding year as determined by the taxpayer's employment
2553-records filed with the Illinois Department of Employment
2554-Security. Taxpayers who are new to Illinois shall be
2555-deemed to have met the 1% growth in base employment for the
2556-first year in which they file employment records with the
2557-Illinois Department of Employment Security. The provisions
2558-added to this Section by Public Act 85-1200 (and restored
2559-by Public Act 87-895) shall be construed as declaratory of
2560-existing law and not as a new enactment. If, in any year,
2561-the increase in base employment within Illinois over the
2562-preceding year is less than 1%, the additional credit
2563-
2564-
2565-shall be limited to that percentage times a fraction, the
2566-numerator of which is .5% and the denominator of which is
2567-1%, but shall not exceed .5%. The investment credit shall
2568-not be allowed to the extent that it would reduce a
2569-taxpayer's liability in any tax year below zero, nor may
2570-any credit for qualified property be allowed for any year
2571-other than the year in which the property was placed in
2572-service in Illinois. For tax years ending on or after
2573-December 31, 1987, and on or before December 31, 1988, the
2574-credit shall be allowed for the tax year in which the
2575-property is placed in service, or, if the amount of the
2576-credit exceeds the tax liability for that year, whether it
2577-exceeds the original liability or the liability as later
2578-amended, such excess may be carried forward and applied to
2579-the tax liability of the 5 taxable years following the
2580-excess credit years if the taxpayer (i) makes investments
2581-which cause the creation of a minimum of 2,000 full-time
2582-equivalent jobs in Illinois, (ii) is located in an
2583-enterprise zone established pursuant to the Illinois
2584-Enterprise Zone Act and (iii) is certified by the
2585-Department of Commerce and Community Affairs (now
2586-Department of Commerce and Economic Opportunity) as
2587-complying with the requirements specified in clause (i)
2588-and (ii) by July 1, 1986. The Department of Commerce and
2589-Community Affairs (now Department of Commerce and Economic
2590-Opportunity) shall notify the Department of Revenue of all
2591-
2592-
2593-such certifications immediately. For tax years ending
2594-after December 31, 1988, the credit shall be allowed for
2595-the tax year in which the property is placed in service,
2596-or, if the amount of the credit exceeds the tax liability
2597-for that year, whether it exceeds the original liability
2598-or the liability as later amended, such excess may be
2599-carried forward and applied to the tax liability of the 5
2600-taxable years following the excess credit years. The
2601-credit shall be applied to the earliest year for which
2602-there is a liability. If there is credit from more than one
2603-tax year that is available to offset a liability, earlier
2604-credit shall be applied first.
2605-(2) The term "qualified property" means property
2606-which:
2607-(A) is tangible, whether new or used, including
2608-buildings and structural components of buildings and
2609-signs that are real property, but not including land
2610-or improvements to real property that are not a
2611-structural component of a building such as
2612-landscaping, sewer lines, local access roads, fencing,
2613-parking lots, and other appurtenances;
2614-(B) is depreciable pursuant to Section 167 of the
2615-Internal Revenue Code, except that "3-year property"
2616-as defined in Section 168(c)(2)(A) of that Code is not
2617-eligible for the credit provided by this subsection
2618-(e);
2619-
2620-
2621-(C) is acquired by purchase as defined in Section
2622-179(d) of the Internal Revenue Code;
2623-(D) is used in Illinois by a taxpayer who is
2624-primarily engaged in manufacturing, or in mining coal
2625-or fluorite, or in retailing, or was placed in service
2626-on or after July 1, 2006 in a River Edge Redevelopment
2627-Zone established pursuant to the River Edge
2628-Redevelopment Zone Act; and
2629-(E) has not previously been used in Illinois in
2630-such a manner and by such a person as would qualify for
2631-the credit provided by this subsection (e) or
2632-subsection (f).
2633-(3) For purposes of this subsection (e),
2634-"manufacturing" means the material staging and production
2635-of tangible personal property by procedures commonly
2636-regarded as manufacturing, processing, fabrication, or
2637-assembling which changes some existing material into new
2638-shapes, new qualities, or new combinations. For purposes
2639-of this subsection (e) the term "mining" shall have the
2640-same meaning as the term "mining" in Section 613(c) of the
2641-Internal Revenue Code. For purposes of this subsection
2642-(e), the term "retailing" means the sale of tangible
2643-personal property for use or consumption and not for
2644-resale, or services rendered in conjunction with the sale
2645-of tangible personal property for use or consumption and
2646-not for resale. For purposes of this subsection (e),
2647-
2648-
2649-"tangible personal property" has the same meaning as when
2650-that term is used in the Retailers' Occupation Tax Act,
2651-and, for taxable years ending after December 31, 2008,
2652-does not include the generation, transmission, or
2653-distribution of electricity.
2654-(4) The basis of qualified property shall be the basis
2655-used to compute the depreciation deduction for federal
2656-income tax purposes.
2657-(5) If the basis of the property for federal income
2658-tax depreciation purposes is increased after it has been
2659-placed in service in Illinois by the taxpayer, the amount
2660-of such increase shall be deemed property placed in
2661-service on the date of such increase in basis.
2662-(6) The term "placed in service" shall have the same
2663-meaning as under Section 46 of the Internal Revenue Code.
2664-(7) If during any taxable year, any property ceases to
2665-be qualified property in the hands of the taxpayer within
2666-48 months after being placed in service, or the situs of
2667-any qualified property is moved outside Illinois within 48
2668-months after being placed in service, the Personal
2669-Property Tax Replacement Income Tax for such taxable year
2670-shall be increased. Such increase shall be determined by
2671-(i) recomputing the investment credit which would have
2672-been allowed for the year in which credit for such
2673-property was originally allowed by eliminating such
2674-property from such computation and, (ii) subtracting such
2675-
2676-
2677-recomputed credit from the amount of credit previously
2678-allowed. For the purposes of this paragraph (7), a
2679-reduction of the basis of qualified property resulting
2680-from a redetermination of the purchase price shall be
2681-deemed a disposition of qualified property to the extent
2682-of such reduction.
2683-(8) Unless the investment credit is extended by law,
2684-the basis of qualified property shall not include costs
2685-incurred after December 31, 2018, except for costs
2686-incurred pursuant to a binding contract entered into on or
2687-before December 31, 2018.
2688-(9) Each taxable year ending before December 31, 2000,
2689-a partnership may elect to pass through to its partners
2690-the credits to which the partnership is entitled under
2691-this subsection (e) for the taxable year. A partner may
2692-use the credit allocated to him or her under this
2693-paragraph only against the tax imposed in subsections (c)
2694-and (d) of this Section. If the partnership makes that
2695-election, those credits shall be allocated among the
2696-partners in the partnership in accordance with the rules
2697-set forth in Section 704(b) of the Internal Revenue Code,
2698-and the rules promulgated under that Section, and the
2699-allocated amount of the credits shall be allowed to the
2700-partners for that taxable year. The partnership shall make
2701-this election on its Personal Property Tax Replacement
2702-Income Tax return for that taxable year. The election to
2703-
2704-
2705-pass through the credits shall be irrevocable.
2706-For taxable years ending on or after December 31,
2707-2000, a partner that qualifies its partnership for a
2708-subtraction under subparagraph (I) of paragraph (2) of
2709-subsection (d) of Section 203 or a shareholder that
2710-qualifies a Subchapter S corporation for a subtraction
2711-under subparagraph (S) of paragraph (2) of subsection (b)
2712-of Section 203 shall be allowed a credit under this
2713-subsection (e) equal to its share of the credit earned
2714-under this subsection (e) during the taxable year by the
2715-partnership or Subchapter S corporation, determined in
2716-accordance with the determination of income and
2717-distributive share of income under Sections 702 and 704
2718-and Subchapter S of the Internal Revenue Code. This
2719-paragraph is exempt from the provisions of Section 250.
2720-(f) Investment credit; Enterprise Zone; River Edge
2721-Redevelopment Zone.
2722-(1) A taxpayer shall be allowed a credit against the
2723-tax imposed by subsections (a) and (b) of this Section for
2724-investment in qualified property which is placed in
2725-service in an Enterprise Zone created pursuant to the
2726-Illinois Enterprise Zone Act or, for property placed in
2727-service on or after July 1, 2006, a River Edge
2728-Redevelopment Zone established pursuant to the River Edge
2729-Redevelopment Zone Act. For partners, shareholders of
2730-Subchapter S corporations, and owners of limited liability
2731-
2732-
2733-companies, if the liability company is treated as a
2734-partnership for purposes of federal and State income
2735-taxation, for taxable years ending before December 31,
2736-2023, there shall be allowed a credit under this
2737-subsection (f) to be determined in accordance with the
2738-determination of income and distributive share of income
2739-under Sections 702 and 704 and Subchapter S of the
2740-Internal Revenue Code. For taxable years ending on or
2741-after December 31, 2023, for partners and shareholders of
2742-Subchapter S corporations, the provisions of Section 251
2743-shall apply with respect to the credit under this
2744-subsection. The credit shall be .5% of the basis for such
2745-property. The credit shall be available only in the
2746-taxable year in which the property is placed in service in
2747-the Enterprise Zone or River Edge Redevelopment Zone and
2748-shall not be allowed to the extent that it would reduce a
2749-taxpayer's liability for the tax imposed by subsections
2750-(a) and (b) of this Section to below zero. For tax years
2751-ending on or after December 31, 1985, the credit shall be
2752-allowed for the tax year in which the property is placed in
2753-service, or, if the amount of the credit exceeds the tax
2754-liability for that year, whether it exceeds the original
2755-liability or the liability as later amended, such excess
2756-may be carried forward and applied to the tax liability of
2757-the 5 taxable years following the excess credit year. The
2758-credit shall be applied to the earliest year for which
2759-
2760-
2761-there is a liability. If there is credit from more than one
2762-tax year that is available to offset a liability, the
2763-credit accruing first in time shall be applied first.
2764-(2) The term qualified property means property which:
2765-(A) is tangible, whether new or used, including
2766-buildings and structural components of buildings;
2767-(B) is depreciable pursuant to Section 167 of the
2768-Internal Revenue Code, except that "3-year property"
2769-as defined in Section 168(c)(2)(A) of that Code is not
2770-eligible for the credit provided by this subsection
2771-(f);
2772-(C) is acquired by purchase as defined in Section
2773-179(d) of the Internal Revenue Code;
2774-(D) is used in the Enterprise Zone or River Edge
2775-Redevelopment Zone by the taxpayer; and
2776-(E) has not been previously used in Illinois in
2777-such a manner and by such a person as would qualify for
2778-the credit provided by this subsection (f) or
2779-subsection (e).
2780-(3) The basis of qualified property shall be the basis
2781-used to compute the depreciation deduction for federal
2782-income tax purposes.
2783-(4) If the basis of the property for federal income
2784-tax depreciation purposes is increased after it has been
2785-placed in service in the Enterprise Zone or River Edge
2786-Redevelopment Zone by the taxpayer, the amount of such
2787-
2788-
2789-increase shall be deemed property placed in service on the
2790-date of such increase in basis.
2791-(5) The term "placed in service" shall have the same
2792-meaning as under Section 46 of the Internal Revenue Code.
2793-(6) If during any taxable year, any property ceases to
2794-be qualified property in the hands of the taxpayer within
2795-48 months after being placed in service, or the situs of
2796-any qualified property is moved outside the Enterprise
2797-Zone or River Edge Redevelopment Zone within 48 months
2798-after being placed in service, the tax imposed under
2799-subsections (a) and (b) of this Section for such taxable
2800-year shall be increased. Such increase shall be determined
2801-by (i) recomputing the investment credit which would have
2802-been allowed for the year in which credit for such
2803-property was originally allowed by eliminating such
2804-property from such computation, and (ii) subtracting such
2805-recomputed credit from the amount of credit previously
2806-allowed. For the purposes of this paragraph (6), a
2807-reduction of the basis of qualified property resulting
2808-from a redetermination of the purchase price shall be
2809-deemed a disposition of qualified property to the extent
2810-of such reduction.
2811-(7) There shall be allowed an additional credit equal
2812-to 0.5% of the basis of qualified property placed in
2813-service during the taxable year in a River Edge
2814-Redevelopment Zone, provided such property is placed in
2815-
2816-
2817-service on or after July 1, 2006, and the taxpayer's base
2818-employment within Illinois has increased by 1% or more
2819-over the preceding year as determined by the taxpayer's
2820-employment records filed with the Illinois Department of
2821-Employment Security. Taxpayers who are new to Illinois
2822-shall be deemed to have met the 1% growth in base
2823-employment for the first year in which they file
2824-employment records with the Illinois Department of
2825-Employment Security. If, in any year, the increase in base
2826-employment within Illinois over the preceding year is less
2827-than 1%, the additional credit shall be limited to that
2828-percentage times a fraction, the numerator of which is
2829-0.5% and the denominator of which is 1%, but shall not
2830-exceed 0.5%.
2831-(8) For taxable years beginning on or after January 1,
2832-2021, there shall be allowed an Enterprise Zone
2833-construction jobs credit against the taxes imposed under
2834-subsections (a) and (b) of this Section as provided in
2835-Section 13 of the Illinois Enterprise Zone Act.
2836-The credit or credits may not reduce the taxpayer's
2837-liability to less than zero. If the amount of the credit or
2838-credits exceeds the taxpayer's liability, the excess may
2839-be carried forward and applied against the taxpayer's
2840-liability in succeeding calendar years in the same manner
2841-provided under paragraph (4) of Section 211 of this Act.
2842-The credit or credits shall be applied to the earliest
2843-
2844-
2845-year for which there is a tax liability. If there are
2846-credits from more than one taxable year that are available
2847-to offset a liability, the earlier credit shall be applied
2848-first.
2849-For partners, shareholders of Subchapter S
2850-corporations, and owners of limited liability companies,
2851-if the liability company is treated as a partnership for
2852-the purposes of federal and State income taxation, for
2853-taxable years ending before December 31, 2023, there shall
2854-be allowed a credit under this Section to be determined in
2855-accordance with the determination of income and
2856-distributive share of income under Sections 702 and 704
2857-and Subchapter S of the Internal Revenue Code. For taxable
2858-years ending on or after December 31, 2023, for partners
2859-and shareholders of Subchapter S corporations, the
2860-provisions of Section 251 shall apply with respect to the
2861-credit under this subsection.
2862-The total aggregate amount of credits awarded under
2863-the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
2864-shall not exceed $20,000,000 in any State fiscal year.
2865-This paragraph (8) is exempt from the provisions of
2866-Section 250.
2867-(g) (Blank).
2868-(h) Investment credit; High Impact Business.
2869-(1) Subject to subsections (b) and (b-5) of Section
2870-5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
2871-
2872-
2873-be allowed a credit against the tax imposed by subsections
2874-(a) and (b) of this Section for investment in qualified
2875-property which is placed in service by a Department of
2876-Commerce and Economic Opportunity designated High Impact
2877-Business. The credit shall be .5% of the basis for such
2878-property. The credit shall not be available (i) until the
2879-minimum investments in qualified property set forth in
2880-subdivision (a)(3)(A) of Section 5.5 of the Illinois
2881-Enterprise Zone Act have been satisfied or (ii) until the
2882-time authorized in subsection (b-5) of the Illinois
2883-Enterprise Zone Act for entities designated as High Impact
2884-Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
2885-(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
2886-Act, and shall not be allowed to the extent that it would
2887-reduce a taxpayer's liability for the tax imposed by
2888-subsections (a) and (b) of this Section to below zero. The
2889-credit applicable to such investments shall be taken in
2890-the taxable year in which such investments have been
2891-completed. The credit for additional investments beyond
2892-the minimum investment by a designated high impact
2893-business authorized under subdivision (a)(3)(A) of Section
2894-5.5 of the Illinois Enterprise Zone Act shall be available
2895-only in the taxable year in which the property is placed in
2896-service and shall not be allowed to the extent that it
2897-would reduce a taxpayer's liability for the tax imposed by
2898-subsections (a) and (b) of this Section to below zero. For
2899-
2900-
2901-tax years ending on or after December 31, 1987, the credit
2902-shall be allowed for the tax year in which the property is
2903-placed in service, or, if the amount of the credit exceeds
2904-the tax liability for that year, whether it exceeds the
2905-original liability or the liability as later amended, such
2906-excess may be carried forward and applied to the tax
2907-liability of the 5 taxable years following the excess
2908-credit year. The credit shall be applied to the earliest
2909-year for which there is a liability. If there is credit
2910-from more than one tax year that is available to offset a
2911-liability, the credit accruing first in time shall be
2912-applied first.
2913-Changes made in this subdivision (h)(1) by Public Act
2914-88-670 restore changes made by Public Act 85-1182 and
2915-reflect existing law.
2916-(2) The term qualified property means property which:
2917-(A) is tangible, whether new or used, including
2918-buildings and structural components of buildings;
2919-(B) is depreciable pursuant to Section 167 of the
2920-Internal Revenue Code, except that "3-year property"
2921-as defined in Section 168(c)(2)(A) of that Code is not
2922-eligible for the credit provided by this subsection
2923-(h);
2924-(C) is acquired by purchase as defined in Section
2925-179(d) of the Internal Revenue Code; and
2926-(D) is not eligible for the Enterprise Zone
2927-
2928-
2929-Investment Credit provided by subsection (f) of this
2930-Section.
2931-(3) The basis of qualified property shall be the basis
2932-used to compute the depreciation deduction for federal
2933-income tax purposes.
2934-(4) If the basis of the property for federal income
2935-tax depreciation purposes is increased after it has been
2936-placed in service in a federally designated Foreign Trade
2937-Zone or Sub-Zone located in Illinois by the taxpayer, the
2938-amount of such increase shall be deemed property placed in
2939-service on the date of such increase in basis.
2940-(5) The term "placed in service" shall have the same
2941-meaning as under Section 46 of the Internal Revenue Code.
2942-(6) If during any taxable year ending on or before
2943-December 31, 1996, any property ceases to be qualified
2944-property in the hands of the taxpayer within 48 months
2945-after being placed in service, or the situs of any
2946-qualified property is moved outside Illinois within 48
2947-months after being placed in service, the tax imposed
2948-under subsections (a) and (b) of this Section for such
2949-taxable year shall be increased. Such increase shall be
2950-determined by (i) recomputing the investment credit which
2951-would have been allowed for the year in which credit for
2952-such property was originally allowed by eliminating such
2953-property from such computation, and (ii) subtracting such
2954-recomputed credit from the amount of credit previously
2955-
2956-
2957-allowed. For the purposes of this paragraph (6), a
2958-reduction of the basis of qualified property resulting
2959-from a redetermination of the purchase price shall be
2960-deemed a disposition of qualified property to the extent
2961-of such reduction.
2962-(7) Beginning with tax years ending after December 31,
2963-1996, if a taxpayer qualifies for the credit under this
2964-subsection (h) and thereby is granted a tax abatement and
2965-the taxpayer relocates its entire facility in violation of
2966-the explicit terms and length of the contract under
2967-Section 18-183 of the Property Tax Code, the tax imposed
2968-under subsections (a) and (b) of this Section shall be
2969-increased for the taxable year in which the taxpayer
2970-relocated its facility by an amount equal to the amount of
2971-credit received by the taxpayer under this subsection (h).
2972-(h-5) High Impact Business construction jobs credit. For
2973-taxable years beginning on or after January 1, 2021, there
2974-shall also be allowed a High Impact Business construction jobs
2975-credit against the tax imposed under subsections (a) and (b)
2976-of this Section as provided in subsections (i) and (j) of
2977-Section 5.5 of the Illinois Enterprise Zone Act.
2978-The credit or credits may not reduce the taxpayer's
2979-liability to less than zero. If the amount of the credit or
2980-credits exceeds the taxpayer's liability, the excess may be
2981-carried forward and applied against the taxpayer's liability
2982-in succeeding calendar years in the manner provided under
2983-
2984-
2985-paragraph (4) of Section 211 of this Act. The credit or credits
2986-shall be applied to the earliest year for which there is a tax
2987-liability. If there are credits from more than one taxable
2988-year that are available to offset a liability, the earlier
2989-credit shall be applied first.
2990-For partners, shareholders of Subchapter S corporations,
2991-and owners of limited liability companies, for taxable years
2992-ending before December 31, 2023, if the liability company is
2993-treated as a partnership for the purposes of federal and State
2994-income taxation, there shall be allowed a credit under this
2995-Section to be determined in accordance with the determination
2996-of income and distributive share of income under Sections 702
2997-and 704 and Subchapter S of the Internal Revenue Code. For
2998-taxable years ending on or after December 31, 2023, for
2999-partners and shareholders of Subchapter S corporations, the
3000-provisions of Section 251 shall apply with respect to the
3001-credit under this subsection.
3002-The total aggregate amount of credits awarded under the
3003-Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
3004-exceed $20,000,000 in any State fiscal year.
3005-This subsection (h-5) is exempt from the provisions of
3006-Section 250.
3007-(i) Credit for Personal Property Tax Replacement Income
3008-Tax. For tax years ending prior to December 31, 2003, a credit
3009-shall be allowed against the tax imposed by subsections (a)
3010-and (b) of this Section for the tax imposed by subsections (c)
3011-
3012-
3013-and (d) of this Section. This credit shall be computed by
3014-multiplying the tax imposed by subsections (c) and (d) of this
3015-Section by a fraction, the numerator of which is base income
3016-allocable to Illinois and the denominator of which is Illinois
3017-base income, and further multiplying the product by the tax
3018-rate imposed by subsections (a) and (b) of this Section.
3019-Any credit earned on or after December 31, 1986 under this
3020-subsection which is unused in the year the credit is computed
3021-because it exceeds the tax liability imposed by subsections
3022-(a) and (b) for that year (whether it exceeds the original
3023-liability or the liability as later amended) may be carried
3024-forward and applied to the tax liability imposed by
3025-subsections (a) and (b) of the 5 taxable years following the
3026-excess credit year, provided that no credit may be carried
3027-forward to any year ending on or after December 31, 2003. This
3028-credit shall be applied first to the earliest year for which
3029-there is a liability. If there is a credit under this
3030-subsection from more than one tax year that is available to
3031-offset a liability the earliest credit arising under this
3032-subsection shall be applied first.
3033-If, during any taxable year ending on or after December
3034-31, 1986, the tax imposed by subsections (c) and (d) of this
3035-Section for which a taxpayer has claimed a credit under this
3036-subsection (i) is reduced, the amount of credit for such tax
3037-shall also be reduced. Such reduction shall be determined by
3038-recomputing the credit to take into account the reduced tax
3039-
3040-
3041-imposed by subsections (c) and (d). If any portion of the
3042-reduced amount of credit has been carried to a different
3043-taxable year, an amended return shall be filed for such
3044-taxable year to reduce the amount of credit claimed.
3045-(j) Training expense credit. Beginning with tax years
3046-ending on or after December 31, 1986 and prior to December 31,
3047-2003, a taxpayer shall be allowed a credit against the tax
3048-imposed by subsections (a) and (b) under this Section for all
3049-amounts paid or accrued, on behalf of all persons employed by
3050-the taxpayer in Illinois or Illinois residents employed
3051-outside of Illinois by a taxpayer, for educational or
3052-vocational training in semi-technical or technical fields or
3053-semi-skilled or skilled fields, which were deducted from gross
3054-income in the computation of taxable income. The credit
3055-against the tax imposed by subsections (a) and (b) shall be
3056-1.6% of such training expenses. For partners, shareholders of
3057-subchapter S corporations, and owners of limited liability
3058-companies, if the liability company is treated as a
3059-partnership for purposes of federal and State income taxation,
3060-for taxable years ending before December 31, 2023, there shall
3061-be allowed a credit under this subsection (j) to be determined
3062-in accordance with the determination of income and
3063-distributive share of income under Sections 702 and 704 and
3064-subchapter S of the Internal Revenue Code. For taxable years
3065-ending on or after December 31, 2023, for partners and
3066-shareholders of Subchapter S corporations, the provisions of
3067-
3068-
3069-Section 251 shall apply with respect to the credit under this
3070-subsection.
3071-Any credit allowed under this subsection which is unused
3072-in the year the credit is earned may be carried forward to each
3073-of the 5 taxable years following the year for which the credit
3074-is first computed until it is used. This credit shall be
3075-applied first to the earliest year for which there is a
3076-liability. If there is a credit under this subsection from
3077-more than one tax year that is available to offset a liability,
3078-the earliest credit arising under this subsection shall be
3079-applied first. No carryforward credit may be claimed in any
3080-tax year ending on or after December 31, 2003.
3081-(k) Research and development credit. For tax years ending
3082-after July 1, 1990 and prior to December 31, 2003, and
3083-beginning again for tax years ending on or after December 31,
3084-2004, and ending prior to January 1, 2032 January 1, 2027, a
3085-taxpayer shall be allowed a credit against the tax imposed by
3086-subsections (a) and (b) of this Section for increasing
3087-research activities in this State. The credit allowed against
3088-the tax imposed by subsections (a) and (b) shall be equal to 6
3089-1/2% of the qualifying expenditures for increasing research
3090-activities in this State. For partners, shareholders of
3091-subchapter S corporations, and owners of limited liability
3092-companies, if the liability company is treated as a
3093-partnership for purposes of federal and State income taxation,
3094-for taxable years ending before December 31, 2023, there shall
3095-
3096-
3097-be allowed a credit under this subsection to be determined in
3098-accordance with the determination of income and distributive
3099-share of income under Sections 702 and 704 and subchapter S of
3100-the Internal Revenue Code. For taxable years ending on or
3101-after December 31, 2023, for partners and shareholders of
3102-Subchapter S corporations, the provisions of Section 251 shall
3103-apply with respect to the credit under this subsection.
3104-For purposes of this subsection, "qualifying expenditures"
3105-means the qualifying expenditures as defined for the federal
3106-credit for increasing research activities which would be
3107-allowable under Section 41 of the Internal Revenue Code and
3108-which are conducted in this State, "qualifying expenditures
3109-for increasing research activities in this State" means the
3110-excess of qualifying expenditures for the taxable year in
3111-which incurred over qualifying expenditures for the base
3112-period, "qualifying expenditures for the base period" means
3113-the average of the qualifying expenditures for each year in
3114-the base period, and "base period" means the 3 taxable years
3115-immediately preceding the taxable year for which the
3116-determination is being made.
3117-Any credit in excess of the tax liability for the taxable
3118-year may be carried forward. A taxpayer may elect to have the
3119-unused credit shown on its final completed return carried over
3120-as a credit against the tax liability for the following 5
3121-taxable years or until it has been fully used, whichever
3122-occurs first; provided that no credit earned in a tax year
3123-
3124-
3125-ending prior to December 31, 2003 may be carried forward to any
3126-year ending on or after December 31, 2003.
3127-If an unused credit is carried forward to a given year from
3128-2 or more earlier years, that credit arising in the earliest
3129-year will be applied first against the tax liability for the
3130-given year. If a tax liability for the given year still
3131-remains, the credit from the next earliest year will then be
3132-applied, and so on, until all credits have been used or no tax
3133-liability for the given year remains. Any remaining unused
3134-credit or credits then will be carried forward to the next
3135-following year in which a tax liability is incurred, except
3136-that no credit can be carried forward to a year which is more
3137-than 5 years after the year in which the expense for which the
3138-credit is given was incurred.
3139-No inference shall be drawn from Public Act 91-644 in
3140-construing this Section for taxable years beginning before
3141-January 1, 1999.
3142-It is the intent of the General Assembly that the research
3143-and development credit under this subsection (k) shall apply
3144-continuously for all tax years ending on or after December 31,
3145-2004 and ending prior to January 1, 2032 January 1, 2027,
3146-including, but not limited to, the period beginning on January
3147-1, 2016 and ending on July 6, 2017 (the effective date of
3148-Public Act 100-22). All actions taken in reliance on the
3149-continuation of the credit under this subsection (k) by any
3150-taxpayer are hereby validated.
3151-
3152-
3153-(l) Environmental Remediation Tax Credit.
3154-(i) For tax years ending after December 31, 1997 and
3155-on or before December 31, 2001, a taxpayer shall be
3156-allowed a credit against the tax imposed by subsections
3157-(a) and (b) of this Section for certain amounts paid for
3158-unreimbursed eligible remediation costs, as specified in
3159-this subsection. For purposes of this Section,
3160-"unreimbursed eligible remediation costs" means costs
3161-approved by the Illinois Environmental Protection Agency
3162-("Agency") under Section 58.14 of the Environmental
3163-Protection Act that were paid in performing environmental
3164-remediation at a site for which a No Further Remediation
3165-Letter was issued by the Agency and recorded under Section
3166-58.10 of the Environmental Protection Act. The credit must
3167-be claimed for the taxable year in which Agency approval
3168-of the eligible remediation costs is granted. The credit
3169-is not available to any taxpayer if the taxpayer or any
3170-related party caused or contributed to, in any material
3171-respect, a release of regulated substances on, in, or
3172-under the site that was identified and addressed by the
3173-remedial action pursuant to the Site Remediation Program
3174-of the Environmental Protection Act. After the Pollution
3175-Control Board rules are adopted pursuant to the Illinois
3176-Administrative Procedure Act for the administration and
3177-enforcement of Section 58.9 of the Environmental
3178-Protection Act, determinations as to credit availability
3179-
3180-
3181-for purposes of this Section shall be made consistent with
3182-those rules. For purposes of this Section, "taxpayer"
3183-includes a person whose tax attributes the taxpayer has
3184-succeeded to under Section 381 of the Internal Revenue
3185-Code and "related party" includes the persons disallowed a
3186-deduction for losses by paragraphs (b), (c), and (f)(1) of
3187-Section 267 of the Internal Revenue Code by virtue of
3188-being a related taxpayer, as well as any of its partners.
3189-The credit allowed against the tax imposed by subsections
3190-(a) and (b) shall be equal to 25% of the unreimbursed
3191-eligible remediation costs in excess of $100,000 per site,
3192-except that the $100,000 threshold shall not apply to any
3193-site contained in an enterprise zone as determined by the
3194-Department of Commerce and Community Affairs (now
3195-Department of Commerce and Economic Opportunity). The
3196-total credit allowed shall not exceed $40,000 per year
3197-with a maximum total of $150,000 per site. For partners
3198-and shareholders of subchapter S corporations, there shall
3199-be allowed a credit under this subsection to be determined
3200-in accordance with the determination of income and
3201-distributive share of income under Sections 702 and 704
3202-and subchapter S of the Internal Revenue Code.
3203-(ii) A credit allowed under this subsection that is
3204-unused in the year the credit is earned may be carried
3205-forward to each of the 5 taxable years following the year
3206-for which the credit is first earned until it is used. The
3207-
3208-
3209-term "unused credit" does not include any amounts of
3210-unreimbursed eligible remediation costs in excess of the
3211-maximum credit per site authorized under paragraph (i).
3212-This credit shall be applied first to the earliest year
3213-for which there is a liability. If there is a credit under
3214-this subsection from more than one tax year that is
3215-available to offset a liability, the earliest credit
3216-arising under this subsection shall be applied first. A
3217-credit allowed under this subsection may be sold to a
3218-buyer as part of a sale of all or part of the remediation
3219-site for which the credit was granted. The purchaser of a
3220-remediation site and the tax credit shall succeed to the
3221-unused credit and remaining carry-forward period of the
3222-seller. To perfect the transfer, the assignor shall record
3223-the transfer in the chain of title for the site and provide
3224-written notice to the Director of the Illinois Department
3225-of Revenue of the assignor's intent to sell the
3226-remediation site and the amount of the tax credit to be
3227-transferred as a portion of the sale. In no event may a
3228-credit be transferred to any taxpayer if the taxpayer or a
3229-related party would not be eligible under the provisions
3230-of subsection (i).
3231-(iii) For purposes of this Section, the term "site"
3232-shall have the same meaning as under Section 58.2 of the
3233-Environmental Protection Act.
3234-(m) Education expense credit. Beginning with tax years
3235-
3236-
3237-ending after December 31, 1999, a taxpayer who is the
3238-custodian of one or more qualifying pupils shall be allowed a
3239-credit against the tax imposed by subsections (a) and (b) of
3240-this Section for qualified education expenses incurred on
3241-behalf of the qualifying pupils. The credit shall be equal to
3242-25% of qualified education expenses, but in no event may the
3243-total credit under this subsection claimed by a family that is
3244-the custodian of qualifying pupils exceed (i) $500 for tax
3245-years ending prior to December 31, 2017, and (ii) $750 for tax
3246-years ending on or after December 31, 2017. In no event shall a
3247-credit under this subsection reduce the taxpayer's liability
3248-under this Act to less than zero. Notwithstanding any other
3249-provision of law, for taxable years beginning on or after
3250-January 1, 2017, no taxpayer may claim a credit under this
3251-subsection (m) if the taxpayer's adjusted gross income for the
3252-taxable year exceeds (i) $500,000, in the case of spouses
3253-filing a joint federal tax return or (ii) $250,000, in the case
3254-of all other taxpayers. This subsection is exempt from the
3255-provisions of Section 250 of this Act.
3256-For purposes of this subsection:
3257-"Qualifying pupils" means individuals who (i) are
3258-residents of the State of Illinois, (ii) are under the age of
3259-21 at the close of the school year for which a credit is
3260-sought, and (iii) during the school year for which a credit is
3261-sought were full-time pupils enrolled in a kindergarten
3262-through twelfth grade education program at any school, as
3263-
3264-
3265-defined in this subsection.
3266-"Qualified education expense" means the amount incurred on
3267-behalf of a qualifying pupil in excess of $250 for tuition,
3268-book fees, and lab fees at the school in which the pupil is
3269-enrolled during the regular school year.
3270-"School" means any public or nonpublic elementary or
3271-secondary school in Illinois that is in compliance with Title
3272-VI of the Civil Rights Act of 1964 and attendance at which
3273-satisfies the requirements of Section 26-1 of the School Code,
3274-except that nothing shall be construed to require a child to
3275-attend any particular public or nonpublic school to qualify
3276-for the credit under this Section.
3277-"Custodian" means, with respect to qualifying pupils, an
3278-Illinois resident who is a parent, the parents, a legal
3279-guardian, or the legal guardians of the qualifying pupils.
3280-(n) River Edge Redevelopment Zone site remediation tax
3281-credit.
3282-(i) For tax years ending on or after December 31,
3283-2006, a taxpayer shall be allowed a credit against the tax
3284-imposed by subsections (a) and (b) of this Section for
3285-certain amounts paid for unreimbursed eligible remediation
3286-costs, as specified in this subsection. For purposes of
3287-this Section, "unreimbursed eligible remediation costs"
3288-means costs approved by the Illinois Environmental
3289-Protection Agency ("Agency") under Section 58.14a of the
3290-Environmental Protection Act that were paid in performing
3291-
3292-
3293-environmental remediation at a site within a River Edge
3294-Redevelopment Zone for which a No Further Remediation
3295-Letter was issued by the Agency and recorded under Section
3296-58.10 of the Environmental Protection Act. The credit must
3297-be claimed for the taxable year in which Agency approval
3298-of the eligible remediation costs is granted. The credit
3299-is not available to any taxpayer if the taxpayer or any
3300-related party caused or contributed to, in any material
3301-respect, a release of regulated substances on, in, or
3302-under the site that was identified and addressed by the
3303-remedial action pursuant to the Site Remediation Program
3304-of the Environmental Protection Act. Determinations as to
3305-credit availability for purposes of this Section shall be
3306-made consistent with rules adopted by the Pollution
3307-Control Board pursuant to the Illinois Administrative
3308-Procedure Act for the administration and enforcement of
3309-Section 58.9 of the Environmental Protection Act. For
3310-purposes of this Section, "taxpayer" includes a person
3311-whose tax attributes the taxpayer has succeeded to under
3312-Section 381 of the Internal Revenue Code and "related
3313-party" includes the persons disallowed a deduction for
3314-losses by paragraphs (b), (c), and (f)(1) of Section 267
3315-of the Internal Revenue Code by virtue of being a related
3316-taxpayer, as well as any of its partners. The credit
3317-allowed against the tax imposed by subsections (a) and (b)
3318-shall be equal to 25% of the unreimbursed eligible
3319-
3320-
3321-remediation costs in excess of $100,000 per site.
3322-(ii) A credit allowed under this subsection that is
3323-unused in the year the credit is earned may be carried
3324-forward to each of the 5 taxable years following the year
3325-for which the credit is first earned until it is used. This
3326-credit shall be applied first to the earliest year for
3327-which there is a liability. If there is a credit under this
3328-subsection from more than one tax year that is available
3329-to offset a liability, the earliest credit arising under
3330-this subsection shall be applied first. A credit allowed
3331-under this subsection may be sold to a buyer as part of a
3332-sale of all or part of the remediation site for which the
3333-credit was granted. The purchaser of a remediation site
3334-and the tax credit shall succeed to the unused credit and
3335-remaining carry-forward period of the seller. To perfect
3336-the transfer, the assignor shall record the transfer in
3337-the chain of title for the site and provide written notice
3338-to the Director of the Illinois Department of Revenue of
3339-the assignor's intent to sell the remediation site and the
3340-amount of the tax credit to be transferred as a portion of
3341-the sale. In no event may a credit be transferred to any
3342-taxpayer if the taxpayer or a related party would not be
3343-eligible under the provisions of subsection (i).
3344-(iii) For purposes of this Section, the term "site"
3345-shall have the same meaning as under Section 58.2 of the
3346-Environmental Protection Act.
3347-
3348-
3349-(o) For each of taxable years during the Compassionate Use
3350-of Medical Cannabis Program, a surcharge is imposed on all
3351-taxpayers on income arising from the sale or exchange of
3352-capital assets, depreciable business property, real property
3353-used in the trade or business, and Section 197 intangibles of
3354-an organization registrant under the Compassionate Use of
3355-Medical Cannabis Program Act. The amount of the surcharge is
3356-equal to the amount of federal income tax liability for the
3357-taxable year attributable to those sales and exchanges. The
3358-surcharge imposed does not apply if:
3359-(1) the medical cannabis cultivation center
3360-registration, medical cannabis dispensary registration, or
3361-the property of a registration is transferred as a result
3362-of any of the following:
3363-(A) bankruptcy, a receivership, or a debt
3364-adjustment initiated by or against the initial
3365-registration or the substantial owners of the initial
3366-registration;
3367-(B) cancellation, revocation, or termination of
3368-any registration by the Illinois Department of Public
3369-Health;
3370-(C) a determination by the Illinois Department of
3371-Public Health that transfer of the registration is in
3372-the best interests of Illinois qualifying patients as
3373-defined by the Compassionate Use of Medical Cannabis
3374-Program Act;
3375-
3376-
3377-(D) the death of an owner of the equity interest in
3378-a registrant;
3379-(E) the acquisition of a controlling interest in
3380-the stock or substantially all of the assets of a
3381-publicly traded company;
3382-(F) a transfer by a parent company to a wholly
3383-owned subsidiary; or
3384-(G) the transfer or sale to or by one person to
3385-another person where both persons were initial owners
3386-of the registration when the registration was issued;
3387-or
3388-(2) the cannabis cultivation center registration,
3389-medical cannabis dispensary registration, or the
3390-controlling interest in a registrant's property is
3391-transferred in a transaction to lineal descendants in
3392-which no gain or loss is recognized or as a result of a
3393-transaction in accordance with Section 351 of the Internal
3394-Revenue Code in which no gain or loss is recognized.
3395-(p) Pass-through entity tax.
3396-(1) For taxable years ending on or after December 31,
3397-2021 and beginning prior to January 1, 2026, a partnership
3398-(other than a publicly traded partnership under Section
3399-7704 of the Internal Revenue Code) or Subchapter S
3400-corporation may elect to apply the provisions of this
3401-subsection. A separate election shall be made for each
3402-taxable year. Such election shall be made at such time,
3403-
3404-
3405-and in such form and manner as prescribed by the
3406-Department, and, once made, is irrevocable.
3407-(2) Entity-level tax. A partnership or Subchapter S
3408-corporation electing to apply the provisions of this
3409-subsection shall be subject to a tax for the privilege of
3410-earning or receiving income in this State in an amount
3411-equal to 4.95% of the taxpayer's net income for the
3412-taxable year.
3413-(3) Net income defined.
3414-(A) In general. For purposes of paragraph (2), the
3415-term net income has the same meaning as defined in
3416-Section 202 of this Act, except that, for tax years
3417-ending on or after December 31, 2023, a deduction
3418-shall be allowed in computing base income for
3419-distributions to a retired partner to the extent that
3420-the partner's distributions are exempt from tax under
3421-Section 203(a)(2)(F) of this Act. In addition, the
3422-following modifications shall not apply:
3423-(i) the standard exemption allowed under
3424-Section 204;
3425-(ii) the deduction for net losses allowed
3426-under Section 207;
3427-(iii) in the case of an S corporation, the
3428-modification under Section 203(b)(2)(S); and
3429-(iv) in the case of a partnership, the
3430-modifications under Section 203(d)(2)(H) and
3431-
3432-
3433-Section 203(d)(2)(I).
3434-(B) Special rule for tiered partnerships. If a
3435-taxpayer making the election under paragraph (1) is a
3436-partner of another taxpayer making the election under
3437-paragraph (1), net income shall be computed as
3438-provided in subparagraph (A), except that the taxpayer
3439-shall subtract its distributive share of the net
3440-income of the electing partnership (including its
3441-distributive share of the net income of the electing
3442-partnership derived as a distributive share from
3443-electing partnerships in which it is a partner).
3444-(4) Credit for entity level tax. Each partner or
3445-shareholder of a taxpayer making the election under this
3446-Section shall be allowed a credit against the tax imposed
3447-under subsections (a) and (b) of Section 201 of this Act
3448-for the taxable year of the partnership or Subchapter S
3449-corporation for which an election is in effect ending
3450-within or with the taxable year of the partner or
3451-shareholder in an amount equal to 4.95% times the partner
3452-or shareholder's distributive share of the net income of
3453-the electing partnership or Subchapter S corporation, but
3454-not to exceed the partner's or shareholder's share of the
3455-tax imposed under paragraph (1) which is actually paid by
3456-the partnership or Subchapter S corporation. If the
3457-taxpayer is a partnership or Subchapter S corporation that
3458-is itself a partner of a partnership making the election
3459-
3460-
3461-under paragraph (1), the credit under this paragraph shall
3462-be allowed to the taxpayer's partners or shareholders (or
3463-if the partner is a partnership or Subchapter S
3464-corporation then its partners or shareholders) in
3465-accordance with the determination of income and
3466-distributive share of income under Sections 702 and 704
3467-and Subchapter S of the Internal Revenue Code. If the
3468-amount of the credit allowed under this paragraph exceeds
3469-the partner's or shareholder's liability for tax imposed
3470-under subsections (a) and (b) of Section 201 of this Act
3471-for the taxable year, such excess shall be treated as an
3472-overpayment for purposes of Section 909 of this Act.
3473-(5) Nonresidents. A nonresident individual who is a
3474-partner or shareholder of a partnership or Subchapter S
3475-corporation for a taxable year for which an election is in
3476-effect under paragraph (1) shall not be required to file
3477-an income tax return under this Act for such taxable year
3478-if the only source of net income of the individual (or the
3479-individual and the individual's spouse in the case of a
3480-joint return) is from an entity making the election under
3481-paragraph (1) and the credit allowed to the partner or
3482-shareholder under paragraph (4) equals or exceeds the
3483-individual's liability for the tax imposed under
3484-subsections (a) and (b) of Section 201 of this Act for the
3485-taxable year.
3486-(6) Liability for tax. Except as provided in this
3487-
3488-
3489-paragraph, a partnership or Subchapter S making the
3490-election under paragraph (1) is liable for the
3491-entity-level tax imposed under paragraph (2). If the
3492-electing partnership or corporation fails to pay the full
3493-amount of tax deemed assessed under paragraph (2), the
3494-partners or shareholders shall be liable to pay the tax
3495-assessed (including penalties and interest). Each partner
3496-or shareholder shall be liable for the unpaid assessment
3497-based on the ratio of the partner's or shareholder's share
3498-of the net income of the partnership over the total net
3499-income of the partnership. If the partnership or
3500-Subchapter S corporation fails to pay the tax assessed
3501-(including penalties and interest) and thereafter an
3502-amount of such tax is paid by the partners or
3503-shareholders, such amount shall not be collected from the
3504-partnership or corporation.
3505-(7) Foreign tax. For purposes of the credit allowed
3506-under Section 601(b)(3) of this Act, tax paid by a
3507-partnership or Subchapter S corporation to another state
3508-which, as determined by the Department, is substantially
3509-similar to the tax imposed under this subsection, shall be
3510-considered tax paid by the partner or shareholder to the
3511-extent that the partner's or shareholder's share of the
3512-income of the partnership or Subchapter S corporation
3513-allocated and apportioned to such other state bears to the
3514-total income of the partnership or Subchapter S
3515-
3516-
3517-corporation allocated or apportioned to such other state.
3518-(8) Suspension of withholding. The provisions of
3519-Section 709.5 of this Act shall not apply to a partnership
3520-or Subchapter S corporation for the taxable year for which
3521-an election under paragraph (1) is in effect.
3522-(9) Requirement to pay estimated tax. For each taxable
3523-year for which an election under paragraph (1) is in
3524-effect, a partnership or Subchapter S corporation is
3525-required to pay estimated tax for such taxable year under
3526-Sections 803 and 804 of this Act if the amount payable as
3527-estimated tax can reasonably be expected to exceed $500.
3528-(10) The provisions of this subsection shall apply
3529-only with respect to taxable years for which the
3530-limitation on individual deductions applies under Section
3531-164(b)(6) of the Internal Revenue Code.
3532-(Source: P.A. 102-558, eff. 8-20-21; 102-658, eff. 8-27-21;
3533-103-9, eff. 6-7-23; 103-396, eff. 1-1-24; revised 12-12-23.)
3534-(35 ILCS 5/241 new)
3535-Sec. 241. Credit for quantum computing campuses.
3536-(a) A taxpayer who has been awarded a credit by the
3537-Department of Commerce and Economic Opportunity under Section
3538-605-115 of the Department of Commerce and Economic Opportunity
3539-Law of the Civil Administrative Code of Illinois is entitled
3540-to a credit against the taxes imposed under subsections (a)
3541-and (b) of Section 201 of this Act. The amount of the credit
3542-
3543-
3544-shall be 20% of the wages paid by the taxpayer during the
3545-taxable year to a full-time or part-time employee of a
3546-construction contractor employed in the construction of an
3547-eligible facility located on a quantum computing campus
3548-designated under Section 605-115 of the Department of Commerce
3549-and Economic Opportunity Law of the Civil Administrative Code
3550-of Illinois.
3551-(b) In no event shall a credit under this Section reduce
3552-the taxpayer's liability to less than zero. If the amount of
3553-the credit exceeds the tax liability for the year, the excess
3554-may be carried forward and applied to the tax liability of the
3555-5 taxable years following the excess credit year. The tax
3556-credit shall be applied to the earliest year for which there is
3557-a tax liability. If there are credits for more than one year
3558-that are available to offset a liability, the earlier credit
3559-shall be applied first.
3560-(c) A person claiming the credit allowed under this
3561-Section shall attach to its Illinois income tax return for the
3562-taxable year for which the credit is allowed a copy of the tax
3563-credit certificate issued by the Department of Commerce and
3564-Economic Opportunity.
3565-(d) Partners and shareholders of Subchapter S corporations
3566-are entitled to a credit under this Section as provided in
3567-Section 251.
3568-(e) As used in this Section, "eligible facility" means a
3569-building used primarily to house one or more of the following:
3570-
3571-
3572-a quantum computer operator; a research facility; a data
3573-center; a manufacturer and assembler of quantum computers and
3574-component parts; a cryogenic or refrigeration facility; or any
3575-other facility determined, by industry and academic leaders,
3576-to be fundamental to the research and development of quantum
3577-computing for practical solutions.
3578-(f) This Section is exempt from the provisions of Section
3579-250.
3580-Section 23. The Illinois Income Tax Act is amended by
3581-changing Section 213 as follows:
3582-(35 ILCS 5/213)
3583-Sec. 213. Film production services credit.
3584-(a) For tax years beginning on or after January 1, 2004, a
3585-taxpayer who has been awarded a tax credit under the Film
3586-Production Services Tax Credit Act or under the Film
3587-Production Services Tax Credit Act of 2008 is entitled to a
3588-credit against the taxes imposed under subsections (a) and (b)
3589-of Section 201 of this Act in an amount determined by the
3590-Department of Commerce and Economic Opportunity under those
3591-Acts. If the taxpayer is a partnership or Subchapter S
3592-corporation, the credit is allowed to the partners or
3593-shareholders in accordance with the determination of income
3594-and distributive share of income under Sections 702 and 704
3595-and Subchapter S of the Internal Revenue Code.
3596-
3597-
3598-(b) Beginning July 1, 2024, taxpayers who have been
3599-awarded a tax credit under the Film Production Services Tax
3600-Credit Act of 2008 shall pay to the Department of Commerce and
3601-Economic Opportunity, after determination of the tax credit
3602-amount but prior to the issuance of a tax credit certificate
3603-pursuant to Section 35 of the Film Production Services Tax
3604-Credit Act of 2008, a fee equal to 2.5% of the credit amount
3605-awarded to the taxpayer under the Film Production Services Tax
3606-Credit Act of 2008 that is attributable to wages paid to
3607-nonresidents, as described in Section 10 of the Film
3608-Production Services Tax Credit Act of 2008, and an additional
3609-fee equal to 0.25% of the amount generated by subtracting the
3610-credit amount awarded to the taxpayer under the Film
3611-Production Services Tax Credit Act of 2008 that is
3612-attributable to wages paid to nonresidents from the total
3613-credit amount awarded to the taxpayer under that Act. All fees
3614-collected under this subsection shall be deposited into the
3615-Illinois Production Workforce Development Fund. No tax credit
3616-certificate shall be issued by the Department of Commerce and
3617-Economic Opportunity until the total fees owed according to
3618-this subsection have been received by the Department of
3619-Commerce and Economic Opportunity.
3620-(c) A transfer of this credit may be made by the taxpayer
3621-earning the credit within one year after the credit is awarded
3622-in accordance with rules adopted by the Department of Commerce
3623-and Economic Opportunity. Beginning July 1, 2023 and through
3624-
3625-
3626-June 30, 2024, if a credit is transferred under this Section by
3627-the taxpayer, then the transferor taxpayer shall pay to the
3628-Department of Commerce and Economic Opportunity, upon
3629-notification of a transfer, a fee equal to 2.5% of the
3630-transferred credit amount eligible for nonresident wages, as
3631-described in Section 10 of the Film Production Services Tax
3632-Credit Act of 2008, and an additional fee of 0.25% of the total
3633-amount of the transferred credit that is not calculated on
3634-nonresident wages, which shall be deposited into the Illinois
3635-Production Workforce Development Fund.
3636-(d) The Department, in cooperation with the Department of
3637-Commerce and Economic Opportunity, must prescribe rules to
3638-enforce and administer the provisions of this Section. This
3639-Section is exempt from the provisions of Section 250 of this
3640-Act.
3641-(e) The credit may not be carried back. If the amount of
3642-the credit exceeds the tax liability for the year, the excess
3643-may be carried forward and applied to the tax liability of the
3644-5 taxable years following the excess credit year. The credit
3645-shall be applied to the earliest year for which there is a tax
3646-liability. If there are credits from more than one tax year
3647-that are available to offset a liability, the earlier credit
3648-shall be applied first. In no event shall a credit under this
3649-Section reduce the taxpayer's liability to less than zero.
3650-(Source: P.A. 102-700, eff. 4-19-22.)
3651-
3652-
3653-Section 25. The Economic Development for a Growing Economy
3654-Tax Credit Act is amended by changing Sections 5-5, 5-15,
3655-5-20, 5-35, 5-45, and 5-56 as follows:
3656-(35 ILCS 10/5-5)
3657-Sec. 5-5. Definitions. As used in this Act:
3658-"Agreement" means the Agreement between a Taxpayer and the
3659-Department under the provisions of Section 5-50 of this Act.
3660-"Applicant" means a Taxpayer that is operating a business
3661-located or that the Taxpayer plans to locate within the State
3662-of Illinois and that is engaged in interstate or intrastate
3663-commerce for the purpose of manufacturing, processing,
3664-assembling, warehousing, or distributing products, conducting
3665-research and development, providing tourism services, or
3666-providing services in interstate commerce, office industries,
3667-or agricultural processing, but excluding retail, retail food,
3668-health, or professional services, and services delivered to
3669-business customer sites. "Applicant" does not include a
3670-Taxpayer who closes or substantially reduces an operation at
3671-one location in the State and relocates substantially the same
3672-operation to another location in the State. This does not
3673-prohibit a Taxpayer from expanding its operations at another
3674-location in the State, provided that existing operations of a
3675-similar nature located within the State are not closed or
3676-substantially reduced. This also does not prohibit a Taxpayer
3677-from moving its operations from one location in the State to
3678-
3679-
3680-another location in the State for the purpose of expanding the
3681-operation provided that the Department determines that
3682-expansion cannot reasonably be accommodated within the
3683-municipality in which the business is located, or in the case
3684-of a business located in an incorporated area of the county,
3685-within the county in which the business is located, after
3686-conferring with the chief elected official of the municipality
3687-or county and taking into consideration any evidence offered
3688-by the municipality or county regarding the ability to
3689-accommodate expansion within the municipality or county.
3690-"Credit" means the amount agreed to between the Department
3691-and Applicant under this Act, but not to exceed the lesser of:
3692-(1) the sum of (i) 50% of the Incremental Income Tax
3693-attributable to New Employees at the Applicant's project and
3694-(ii) 10% of the training costs of New Employees; or (2) 100% of
3695-the Incremental Income Tax attributable to New Employees at
3696-the Applicant's project. However, if the project is located in
3697-an underserved area, then the amount of the Credit may not
3698-exceed the lesser of: (1) the sum of (i) 75% of the Incremental
3699-Income Tax attributable to New Employees at the Applicant's
3700-project and (ii) 10% of the training costs of New Employees; or
3701-(2) 100% of the Incremental Income Tax attributable to New
3702-Employees at the Applicant's project. If the project is not
3703-located in an underserved area and the Applicant agrees to
3704-hire the required number of New Employees, then the maximum
3705-amount of the Credit for that Applicant may be increased by an
3706-
3707-
3708-amount not to exceed 25% of the Incremental Income Tax
3709-attributable to retained employees at the Applicant's project.
3710-If the project is located in an underserved area and the
3711-Applicant agrees to hire the required number of New Employees,
3712-then the maximum amount of the credit for that Applicant may be
3713-increased by an amount not to exceed 50% of the Incremental
3714-Income Tax attributable to retained employees at the
3715-Applicant's project.
3716-"Department" means the Department of Commerce and Economic
3717-Opportunity.
3718-"Director" means the Director of Commerce and Economic
3719-Opportunity.
3720-"Full-time Employee" means an individual who is employed
3721-for consideration for at least 35 hours each week or who
3722-renders any other standard of service generally accepted by
3723-industry custom or practice as full-time employment. An
3724-individual for whom a W-2 is issued by a Professional Employer
3725-Organization (PEO) is a full-time employee if employed in the
3726-service of the Applicant for consideration for at least 35
3727-hours each week or who renders any other standard of service
3728-generally accepted by industry custom or practice as full-time
3729-employment to Applicant. The employee need not be physically
3730-present at the EDGE project location during the entire
3731-full-time workweek; however, the agreement shall set forth a
3732-minimum number of hours during which the employee is scheduled
3733-to be present at the EDGE project location.
3734-
3735-
3736-"Incremental Income Tax" means the total amount withheld
3737-during the taxable year from the compensation of New Employees
3738-and, if applicable, retained employees under Article 7 of the
3739-Illinois Income Tax Act arising from employment at a project
3740-that is the subject of an Agreement.
3741-"New Construction EDGE Agreement" means the Agreement
3742-between a Taxpayer and the Department under the provisions of
3743-Section 5-51 of this Act.
3744-"New Construction EDGE Credit" means an amount agreed to
3745-between the Department and the Applicant under this Act as
3746-part of a New Construction EDGE Agreement that does not exceed
3747-50% of the Incremental Income Tax attributable to New
3748-Construction EDGE Employees at the Applicant's project;
3749-however, if the New Construction EDGE Project is located in an
3750-underserved area, then the amount of the New Construction EDGE
3751-Credit may not exceed 75% of the Incremental Income Tax
3752-attributable to New Construction EDGE Employees at the
3753-Applicant's New Construction EDGE Project.
3754-"New Construction EDGE Employee" means a laborer or worker
3755-who is employed by a an Illinois contractor or subcontractor
3756-in the actual construction work on the site of a New
3757-Construction EDGE Project, pursuant to a New Construction EDGE
3758-Agreement.
3759-"New Construction EDGE Incremental Income Tax" means the
3760-total amount withheld during the taxable year from the
3761-compensation of New Construction EDGE Employees.
3762-
3763-
3764-"New Construction EDGE Project" means the building of a
3765-Taxpayer's structure or building, or making improvements of
3766-any kind to real property. "New Construction EDGE Project"
3767-does not include the routine operation, routine repair, or
3768-routine maintenance of existing structures, buildings, or real
3769-property.
3770-"New Employee" means:
3771-(a) A Full-time Employee first employed by a Taxpayer
3772-at in the project, or assigned to the project as their
3773-primary work location, that is the subject of an Agreement
3774-and who is hired after the Taxpayer enters into the tax
3775-credit Agreement.
3776-(b) The term "New Employee" does not include:
3777-(1) an employee of the Taxpayer who performs a job
3778-that was previously performed by another employee, if
3779-that job existed for at least 6 months before hiring
3780-the employee;
3781-(2) an employee of the Taxpayer who was previously
3782-employed in Illinois by a Related Member of the
3783-Taxpayer and whose employment was shifted to the
3784-Taxpayer after the Taxpayer entered into the tax
3785-credit Agreement; or
3786-(3) a child, grandchild, parent, or spouse, other
3787-than a spouse who is legally separated from the
3788-individual, of any individual who has a direct or an
3789-indirect ownership interest of at least 5% in the
3790-
3791-
3792-profits, capital, or value of the Taxpayer.
3793-(c) Notwithstanding paragraph (1) of subsection (b),
3794-an employee may be considered a New Employee under the
3795-Agreement if the employee performs a job that was
3796-previously performed by an employee who was:
3797-(1) treated under the Agreement as a New Employee;
3798-and
3799-(2) promoted by the Taxpayer to another job.
3800-(d) Notwithstanding subsection (a), the Department may
3801-award Credit to an Applicant with respect to an employee
3802-hired prior to the date of the Agreement if:
3803-(1) the Applicant is in receipt of a letter from
3804-the Department stating an intent to enter into a
3805-credit Agreement;
3806-(2) the letter described in paragraph (1) is
3807-issued by the Department not later than 15 days after
3808-the effective date of this Act; and
3809-(3) the employee was hired after the date the
3810-letter described in paragraph (1) was issued.
3811-"Noncompliance Date" means, in the case of a Taxpayer that
3812-is not complying with the requirements of the Agreement or the
3813-provisions of this Act, the day following the last date upon
3814-which the Taxpayer was in compliance with the requirements of
3815-the Agreement and the provisions of this Act, as determined by
3816-the Director, pursuant to Section 5-65.
3817-"Pass Through Entity" means an entity that is exempt from
3818-
3819-
3820-the tax under subsection (b) or (c) of Section 205 of the
3821-Illinois Income Tax Act.
3822-"Professional Employer Organization" (PEO) means an
3823-employee leasing company, as defined in Section 206.1(A)(2) of
3824-the Illinois Unemployment Insurance Act.
3825-"Related Member" means a person that, with respect to the
3826-Taxpayer during any portion of the taxable year, is any one of
3827-the following:
3828-(1) An individual stockholder, if the stockholder and
3829-the members of the stockholder's family (as defined in
3830-Section 318 of the Internal Revenue Code) own directly,
3831-indirectly, beneficially, or constructively, in the
3832-aggregate, at least 50% of the value of the Taxpayer's
3833-outstanding stock.
3834-(2) A partnership, estate, or trust and any partner or
3835-beneficiary, if the partnership, estate, or trust, and its
3836-partners or beneficiaries own directly, indirectly,
3837-beneficially, or constructively, in the aggregate, at
3838-least 50% of the profits, capital, stock, or value of the
3839-Taxpayer.
3840-(3) A corporation, and any party related to the
3841-corporation in a manner that would require an attribution
3842-of stock from the corporation to the party or from the
3843-party to the corporation under the attribution rules of
3844-Section 318 of the Internal Revenue Code, if the Taxpayer
3845-owns directly, indirectly, beneficially, or constructively
3846-
3847-
3848-at least 50% of the value of the corporation's outstanding
3849-stock.
3850-(4) A corporation and any party related to that
3851-corporation in a manner that would require an attribution
3852-of stock from the corporation to the party or from the
3853-party to the corporation under the attribution rules of
3854-Section 318 of the Internal Revenue Code, if the
3855-corporation and all such related parties own in the
3856-aggregate at least 50% of the profits, capital, stock, or
3857-value of the Taxpayer.
3858-(5) A person to or from whom there is attribution of
3859-stock ownership in accordance with Section 1563(e) of the
3860-Internal Revenue Code, except, for purposes of determining
3861-whether a person is a Related Member under this paragraph,
3862-20% shall be substituted for 5% wherever 5% appears in
3863-Section 1563(e) of the Internal Revenue Code.
3864-"Startup taxpayer" means, for Agreements that are executed
3865-before the effective date of the changes made to this Section
3866-by this amendatory Act of the 103rd General Assembly, a
3867-corporation, partnership, or other entity incorporated or
3868-organized no more than 5 years before the filing of an
3869-application for an Agreement that has never had any Illinois
3870-income tax liability, excluding any Illinois income tax
3871-liability of a Related Member which shall not be attributed to
3872-the startup taxpayer. "Startup taxpayer" means, for Agreements
3873-that are executed on or after the effective date of this
3874-
3875-
3876-amendatory Act of the 103rd General Assembly, a corporation,
3877-partnership, or other entity that is incorporated or organized
3878-no more than 10 years before the filing of an application for
3879-an Agreement and that has never had any Illinois income tax
3880-liability. For the purpose of determining whether the taxpayer
3881-has had any Illinois income tax liability, the Illinois income
3882-tax liability of a Related Member shall not be attributed to
3883-the startup taxpayer.
3884-"Taxpayer" means an individual, corporation, partnership,
3885-or other entity that has any Illinois Income Tax liability.
3886-Until July 1, 2022, "underserved area" means a geographic
3887-area that meets one or more of the following conditions:
3888-(1) the area has a poverty rate of at least 20%
3889-according to the latest federal decennial census;
3890-(2) 75% or more of the children in the area
3891-participate in the federal free lunch program according to
3892-reported statistics from the State Board of Education;
3893-(3) at least 20% of the households in the area receive
3894-assistance under the Supplemental Nutrition Assistance
3895-Program (SNAP); or
3896-(4) the area has an average unemployment rate, as
3897-determined by the Illinois Department of Employment
3898-Security, that is more than 120% of the national
3899-unemployment average, as determined by the U.S. Department
3900-of Labor, for a period of at least 2 consecutive calendar
3901-years preceding the date of the application.
3902-
3903-
3904-On and after July 1, 2022, "underserved area" means a
3905-geographic area that meets one or more of the following
3906-conditions:
3907-(1) the area has a poverty rate of at least 20%
3908-according to the latest American Community Survey;
3909-(2) 35% or more of the families with children in the
3910-area are living below 130% of the poverty line, according
3911-to the latest American Community Survey;
3912-(3) at least 20% of the households in the area receive
3913-assistance under the Supplemental Nutrition Assistance
3914-Program (SNAP); or
3915-(4) the area has an average unemployment rate, as
3916-determined by the Illinois Department of Employment
3917-Security, that is more than 120% of the national
3918-unemployment average, as determined by the U.S. Department
3919-of Labor, for a period of at least 2 consecutive calendar
3920-years preceding the date of the application.
3921-(Source: P.A. 102-330, eff. 1-1-22; 102-700, eff. 4-19-22;
3922-102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
3923-(35 ILCS 10/5-15)
3924-Sec. 5-15. Tax Credit Awards. Subject to the conditions
3925-set forth in this Act, a Taxpayer is entitled to a Credit
3926-against or, as described in subsection (g) of this Section, a
3927-payment towards taxes imposed pursuant to subsections (a) and
3928-(b) of Section 201 of the Illinois Income Tax Act that may be
3929-
3930-
3931-imposed on the Taxpayer for a taxable year beginning on or
3932-after January 1, 1999, if the Taxpayer is awarded a Credit by
3933-the Department under this Act for that taxable year.
3934-(a) The Department shall make Credit awards under this Act
3935-to foster job creation and retention in Illinois.
3936-(b) A person that proposes a project to create new jobs in
3937-Illinois must enter into an Agreement with the Department for
3938-the Credit under this Act.
3939-(c) The Credit shall be claimed for the taxable years
3940-specified in the Agreement.
3941-(d) The Credit shall not exceed the Incremental Income Tax
3942-attributable to the project that is the subject of the
3943-Agreement.
3944-(e) Nothing herein shall prohibit a Tax Credit Award to an
3945-Applicant that uses a PEO if all other award criteria are
3946-satisfied.
3947-(f) In lieu of the Credit allowed under this Act against
3948-the taxes imposed pursuant to subsections (a) and (b) of
3949-Section 201 of the Illinois Income Tax Act for any taxable year
3950-ending on or after December 31, 2009, for Taxpayers that
3951-entered into Agreements prior to January 1, 2015 and otherwise
3952-meet the criteria set forth in this subsection (f), the
3953-Taxpayer may elect to claim the Credit against its obligation
3954-to pay over withholding under Section 704A of the Illinois
3955-Income Tax Act.
3956-(1) The election under this subsection (f) may be made
3957-
3958-
3959-only by a Taxpayer that (i) is primarily engaged in one of
3960-the following business activities: water purification and
3961-treatment, motor vehicle metal stamping, automobile
3962-manufacturing, automobile and light duty motor vehicle
3963-manufacturing, motor vehicle manufacturing, light truck
3964-and utility vehicle manufacturing, heavy duty truck
3965-manufacturing, motor vehicle body manufacturing, cable
3966-television infrastructure design or manufacturing, or
3967-wireless telecommunication or computing terminal device
3968-design or manufacturing for use on public networks and
3969-(ii) meets the following criteria:
3970-(A) the Taxpayer (i) had an Illinois net loss or an
3971-Illinois net loss deduction under Section 207 of the
3972-Illinois Income Tax Act for the taxable year in which
3973-the Credit is awarded, (ii) employed a minimum of
3974-1,000 full-time employees in this State during the
3975-taxable year in which the Credit is awarded, (iii) has
3976-an Agreement under this Act on December 14, 2009 (the
3977-effective date of Public Act 96-834), and (iv) is in
3978-compliance with all provisions of that Agreement;
3979-(B) the Taxpayer (i) had an Illinois net loss or an
3980-Illinois net loss deduction under Section 207 of the
3981-Illinois Income Tax Act for the taxable year in which
3982-the Credit is awarded, (ii) employed a minimum of
3983-1,000 full-time employees in this State during the
3984-taxable year in which the Credit is awarded, and (iii)
3985-
3986-
3987-has applied for an Agreement within 365 days after
3988-December 14, 2009 (the effective date of Public Act
3989-96-834);
3990-(C) the Taxpayer (i) had an Illinois net operating
3991-loss carryforward under Section 207 of the Illinois
3992-Income Tax Act in a taxable year ending during
3993-calendar year 2008, (ii) has applied for an Agreement
3994-within 150 days after the effective date of this
3995-amendatory Act of the 96th General Assembly, (iii)
3996-creates at least 400 new jobs in Illinois, (iv)
3997-retains at least 2,000 jobs in Illinois that would
3998-have been at risk of relocation out of Illinois over a
3999-10-year period, and (v) makes a capital investment of
4000-at least $75,000,000;
4001-(D) the Taxpayer (i) had an Illinois net operating
4002-loss carryforward under Section 207 of the Illinois
4003-Income Tax Act in a taxable year ending during
4004-calendar year 2009, (ii) has applied for an Agreement
4005-within 150 days after the effective date of this
4006-amendatory Act of the 96th General Assembly, (iii)
4007-creates at least 150 new jobs, (iv) retains at least
4008-1,000 jobs in Illinois that would have been at risk of
4009-relocation out of Illinois over a 10-year period, and
4010-(v) makes a capital investment of at least
4011-$57,000,000; or
4012-(E) the Taxpayer (i) employed at least 2,500
4013-
4014-
4015-full-time employees in the State during the year in
4016-which the Credit is awarded, (ii) commits to make at
4017-least $500,000,000 in combined capital improvements
4018-and project costs under the Agreement, (iii) applies
4019-for an Agreement between January 1, 2011 and June 30,
4020-2011, (iv) executes an Agreement for the Credit during
4021-calendar year 2011, and (v) was incorporated no more
4022-than 5 years before the filing of an application for an
4023-Agreement.
4024-(1.5) The election under this subsection (f) may also
4025-be made by a Taxpayer for any Credit awarded pursuant to an
4026-agreement that was executed between January 1, 2011 and
4027-June 30, 2011, if the Taxpayer (i) is primarily engaged in
4028-the manufacture of inner tubes or tires, or both, from
4029-natural and synthetic rubber, (ii) employs a minimum of
4030-2,400 full-time employees in Illinois at the time of
4031-application, (iii) creates at least 350 full-time jobs and
4032-retains at least 250 full-time jobs in Illinois that would
4033-have been at risk of being created or retained outside of
4034-Illinois, and (iv) makes a capital investment of at least
4035-$200,000,000 at the project location.
4036-(1.6) The election under this subsection (f) may also
4037-be made by a Taxpayer for any Credit awarded pursuant to an
4038-agreement that was executed within 150 days after the
4039-effective date of this amendatory Act of the 97th General
4040-Assembly, if the Taxpayer (i) is primarily engaged in the
4041-
4042-
4043-operation of a discount department store, (ii) maintains
4044-its corporate headquarters in Illinois, (iii) employs a
4045-minimum of 4,250 full-time employees at its corporate
4046-headquarters in Illinois at the time of application, (iv)
4047-retains at least 4,250 full-time jobs in Illinois that
4048-would have been at risk of being relocated outside of
4049-Illinois, (v) had a minimum of $40,000,000,000 in total
4050-revenue in 2010, and (vi) makes a capital investment of at
4051-least $300,000,000 at the project location.
4052-(1.7) Notwithstanding any other provision of law, the
4053-election under this subsection (f) may also be made by a
4054-Taxpayer for any Credit awarded pursuant to an agreement
4055-that was executed or applied for on or after July 1, 2011
4056-and on or before March 31, 2012, if the Taxpayer is
4057-primarily engaged in the manufacture of original and
4058-aftermarket filtration parts and products for automobiles,
4059-motor vehicles, light duty motor vehicles, light trucks
4060-and utility vehicles, and heavy duty trucks, (ii) employs
4061-a minimum of 1,000 full-time employees in Illinois at the
4062-time of application, (iii) creates at least 250 full-time
4063-jobs in Illinois, (iv) relocates its corporate
4064-headquarters to Illinois from another state, and (v) makes
4065-a capital investment of at least $4,000,000 at the project
4066-location.
4067-(1.8) Notwithstanding any other provision of law, the
4068-election under this subsection (f) may also be made by a
4069-
4070-
4071-startup taxpayer for any Credit awarded pursuant to an
4072-Agreement that was executed on or after the effective date
4073-of this amendatory Act of the 102nd General Assembly. Any
4074-such election under this paragraph (1.8) shall be
4075-effective unless and until such startup taxpayer has any
4076-Illinois income tax liability. This election under this
4077-paragraph (1.8) shall automatically terminate when the
4078-startup taxpayer has any Illinois income tax liability at
4079-the end of any taxable year during the term of the
4080-Agreement. Thereafter, the startup taxpayer may receive a
4081-Credit, taking into account any benefits previously
4082-enjoyed or received by way of the election under this
4083-paragraph (1.8), so long as the startup taxpayer remains
4084-in compliance with the terms and conditions of the
4085-Agreement.
4086-(1.9) Notwithstanding any other provision of law, the
4087-election under this subsection (f) may also be made by an
4088-applicant qualified under paragraph (1.7) of subsection
4089-(b) of Section 5-20 for any Credit awarded pursuant to an
4090-Agreement that was executed on or after the effective date
4091-of this amendatory Act of the 103rd General Assembly. Any
4092-such election under this paragraph (1.9) shall be
4093-effective unless and until such taxpayer has any Illinois
4094-income tax liability. This election under this paragraph
4095-(1.9) shall automatically terminate when the taxpayer has
4096-any Illinois income tax liability at the end of any
4097-
4098-
4099-taxable year during the term of the Agreement. Thereafter,
4100-the startup taxpayer may receive a Credit, taking into
4101-account any benefits previously enjoyed or received by way
4102-of the election under this paragraph (1.9), so long as the
4103-startup taxpayer remains in compliance with the terms and
4104-conditions of the Agreement.
4105-(2) An election under this subsection shall allow the
4106-credit to be taken against payments otherwise due under
4107-Section 704A of the Illinois Income Tax Act during the
4108-first calendar quarter beginning after the end of the
4109-taxable quarter in which the credit is awarded under this
4110-Act.
4111-(3) The election shall be made in the form and manner
4112-required by the Illinois Department of Revenue and, once
4113-made, shall be irrevocable.
4114-(4) If a Taxpayer who meets the requirements of
4115-subparagraph (A) of paragraph (1) of this subsection (f)
4116-elects to claim the Credit against its withholdings as
4117-provided in this subsection (f), then, on and after the
4118-date of the election, the terms of the Agreement between
4119-the Taxpayer and the Department may not be further amended
4120-during the term of the Agreement.
4121-(g) A pass-through entity that has been awarded a credit
4122-under this Act, its shareholders, or its partners may treat
4123-some or all of the credit awarded pursuant to this Act as a tax
4124-payment for purposes of the Illinois Income Tax Act. The term
4125-
4126-
4127-"tax payment" means a payment as described in Article 6 or
4128-Article 8 of the Illinois Income Tax Act or a composite payment
4129-made by a pass-through entity on behalf of any of its
4130-shareholders or partners to satisfy such shareholders' or
4131-partners' taxes imposed pursuant to subsections (a) and (b) of
4132-Section 201 of the Illinois Income Tax Act. In no event shall
4133-the amount of the award credited pursuant to this Act exceed
4134-the Illinois income tax liability of the pass-through entity
4135-or its shareholders or partners for the taxable year.
4136-(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
4137-(35 ILCS 10/5-20)
4138-Sec. 5-20. Application for a project to create and retain
4139-new jobs.
4140-(a) Any Taxpayer proposing a project located or planned to
4141-be located in Illinois may request consideration for
4142-designation of its project, by formal written letter of
4143-request or by formal application to the Department, in which
4144-the Applicant states its intent to make at least a specified
4145-level of investment and intends to hire or retain a specified
4146-number of full-time employees at a designated location in
4147-Illinois. As circumstances require, the Department may require
4148-a formal application from an Applicant and a formal letter of
4149-request for assistance.
4150-(b) In order to qualify for Credits under this Act, an
4151-Applicant's project must:
4152-
4153-
4154-(1) if the Applicant has more than 100 employees,
4155-involve an investment of at least $2,500,000 in capital
4156-improvements to be placed in service within the State as a
4157-direct result of the project; if the Applicant has 100 or
4158-fewer employees, then there is no capital investment
4159-requirement;
4160-(1.5) if the Applicant has more than 100 employees,
4161-employ a number of new employees in the State equal to the
4162-lesser of (A) 10% of the number of full-time employees
4163-employed by the applicant world-wide on the date the
4164-application is filed with the Department or (B) 50 New
4165-Employees; and, if the Applicant has 100 or fewer
4166-employees, employ a number of new employees in the State
4167-equal to the lesser of (A) 5% of the number of full-time
4168-employees employed by the applicant world-wide on the date
4169-the application is filed with the Department or (B) 50 New
4170-Employees;
4171-(1.6) if the Applicant is a startup taxpayer, the
4172-employees employed by Related Members shall not be
4173-attributed to the Applicant for purposes of determining
4174-the capital investment or job creation requirements under
4175-this subsection (b);
4176-(1.7) if the agreement is entered into on or after the
4177-effective date of this amendatory Act of the 103rd General
4178-Assembly and the Applicant's project:
4179-(A) makes an investment of at least $50,000,000 in
4180-
4181-
4182-capital improvements at the project site;
4183-(B) is placed in service after approval of the
4184-application; and
4185-(C) creates jobs for at least 100 new full-time
4186-employees.
4187-(2) (blank);
4188-(3) (blank); and
4189-(4) include an annual sexual harassment policy report
4190-as provided under Section 5-58.
4191-(c) After receipt of an application, the Department may
4192-enter into an Agreement with the Applicant if the application
4193-is accepted in accordance with Section 5-25.
4194-(Source: P.A. 101-81, eff. 7-12-19; 102-700, eff. 4-19-22.)
4195-(35 ILCS 10/5-35)
4196-Sec. 5-35. Relocation of jobs in Illinois. A taxpayer is
4197-not entitled to claim the credit provided by this Act with
4198-respect to any jobs that the taxpayer relocates from one site
4199-in Illinois unless the taxpayer has agreed to hire the minimum
4200-number of new employees and the Department has determined that
4201-the expansion cannot reasonably be accommodated within the
4202-municipality in which the business is located to another site
4203-in Illinois. A taxpayer with respect to a qualifying project
4204-certified under the Corporate Headquarters Relocation Act,
4205-however, is not subject to the requirements of this Section
4206-but is nevertheless considered an applicant for purposes of
4207-
4208-
4209-this Act. Moreover, any full-time employee of an eligible
4210-business relocated to Illinois in connection with that
4211-qualifying project is deemed to be a new employee for purposes
4212-of this Act. Determinations under this Section shall be made
4213-by the Department.
4214-(Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.)
4215-(35 ILCS 10/5-45)
4216-Sec. 5-45. Amount and duration of the credit.
4217-(a) The Department shall determine the amount and duration
4218-of the credit awarded under this Act. The duration of the
4219-credit may not exceed 10 taxable years for projects qualified
4220-under paragraph (1), (1.5), or (1.6) of subsection (b) of
4221-Section 5-20 or 15 taxable years for projects qualified under
4222-paragraph (1.7) of subsection (b) of Section 5-20. The credit
4223-may be stated as a percentage of the Incremental Income Tax
4224-attributable to the applicant's project and may include a
4225-fixed dollar limitation.
4226-(b) Notwithstanding subsection (a), and except as the
4227-credit may be applied in a carryover year pursuant to Section
4228-211(4) of the Illinois Income Tax Act, the credit may be
4229-applied against the State income tax liability in more than 10
4230-taxable years but not in more than 15 taxable years for an
4231-eligible business that (i) qualifies under this Act and the
4232-Corporate Headquarters Relocation Act and has in fact
4233-undertaken a qualifying project within the time frame
4234-
4235-
4236-specified by the Department of Commerce and Economic
4237-Opportunity under that Act, and (ii) applies against its State
4238-income tax liability, during the entire 15-year period, no
4239-more than 60% of the maximum credit per year that would
4240-otherwise be available under this Act.
4241-(c) Nothing in this Section shall prevent the Department,
4242-in consultation with the Department of Revenue, from adopting
4243-rules to extend the sunset of any earned, existing, and unused
4244-tax credit or credits a taxpayer may be in possession of, as
4245-provided for in Section 605-1070 of the Department of Commerce
4246-and Economic Opportunity Law of the Civil Administrative Code
4247-of Illinois, notwithstanding the carry-forward provisions
4248-pursuant to paragraph (4) of Section 211 of the Illinois
4249-Income Tax Act.
4250-(Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)
4251-(35 ILCS 10/5-56)
4252-Sec. 5-56. Annual report. Certified payroll. Annually,
4253-until construction is completed, a company seeking New
4254-Construction EDGE Credits shall submit a report that, at a
4255-minimum, describes the projected project scope, timeline, and
4256-anticipated budget. Once the project has commenced, the annual
4257-report shall include actual data for the prior year as well as
4258-projections for each additional year through completion of the
4259-project. The Department shall issue detailed reporting
4260-guidelines prescribing the requirements of construction
4261-
4262-
4263-related reports. In order to receive credit for construction
4264-expenses, the company must provide the Department with
4265-evidence that a certified third-party executed an Agreed-Upon
4266-Procedure (AUP) verifying the construction expenses or accept
4267-the standard construction wage expense estimated by the
4268-Department.
4269-Upon review of the final project scope, timeline, budget,
4270-and AUP, the Department shall issue a tax credit certificate
4271-reflecting a percentage of the total construction job wages
4272-paid throughout the completion of the project.
4273-Each contractor and subcontractor that is engaged in and is
4274-executing a New Construction EDGE Project for a Taxpayer,
4275-pursuant to a New Construction EDGE Agreement shall:
4276-(1) make and keep, for a period of 5 years from the
4277-date of the last payment made on or after June 5, 2019 (the
4278-effective date of Public Act 101-9) on a contract or
4279-subcontract for a New Construction EDGE Project pursuant
4280-to a New Construction EDGE Agreement, records of all
4281-laborers and other workers employed by the contractor or
4282-subcontractor on the project; the records shall include:
4283-(A) the worker's name;
4284-(B) the worker's address;
4285-(C) the worker's telephone number, if available;
4286-(D) the worker's social security number;
4287-(E) the worker's classification or
4288-classifications;
4289-
4290-
4291-(F) the worker's gross and net wages paid in each
4292-pay period;
4293-(G) the worker's number of hours worked each day;
4294-(H) the worker's starting and ending times of work
4295-each day;
4296-(I) the worker's hourly wage rate; and
4297-(J) the worker's hourly overtime wage rate; and
4298-(2) no later than the 15th day of each calendar month,
4299-provide a certified payroll for the immediately preceding
4300-month to the taxpayer in charge of the project; within 5
4301-business days after receiving the certified payroll, the
4302-taxpayer shall file the certified payroll with the
4303-Department of Labor and the Department of Commerce and
4304-Economic Opportunity; a certified payroll must be filed
4305-for only those calendar months during which construction
4306-on a New Construction EDGE Project has occurred; the
4307-certified payroll shall consist of a complete copy of the
4308-records identified in paragraph (1), but may exclude the
4309-starting and ending times of work each day; the certified
4310-payroll shall be accompanied by a statement signed by the
4311-contractor or subcontractor or an officer, employee, or
4312-agent of the contractor or subcontractor which avers that:
4313-(A) he or she has examined the certified payroll
4314-records required to be submitted by the Act and such
4315-records are true and accurate; and
4316-(B) the contractor or subcontractor is aware that
4317-
4318-
4319-filing a certified payroll that he or she knows to be
4320-false is a Class A misdemeanor.
4321-A general contractor is not prohibited from relying on a
4322-certified payroll of a lower-tier subcontractor, provided the
4323-general contractor does not knowingly rely upon a
4324-subcontractor's false certification.
4325-Any contractor or subcontractor subject to this Section,
4326-and any officer, employee, or agent of such contractor or
4327-subcontractor whose duty as an officer, employee, or agent it
4328-is to file a certified payroll under this Section, who
4329-willfully fails to file such a certified payroll on or before
4330-the date such certified payroll is required to be filed and any
4331-person who willfully files a false certified payroll that is
4332-false as to any material fact is in violation of this Act and
4333-guilty of a Class A misdemeanor.
4334-The taxpayer in charge of the project shall keep the
4335-records submitted in accordance with this Section on or after
4336-June 5, 2019 (the effective date of Public Act 101-9) for a
4337-period of 5 years from the date of the last payment for work on
4338-a contract or subcontract for the project.
4339-The records submitted in accordance with this Section
4340-shall be considered public records, except an employee's
4341-address, telephone number, and social security number, and
4342-made available in accordance with the Freedom of Information
4343-Act. The Department of Labor shall accept any reasonable
4344-submissions by the contractor that meet the requirements of
4345-
4346-
4347-this Section and shall share the information with the
4348-Department in order to comply with the awarding of New
4349-Construction EDGE Credits. A contractor, subcontractor, or
4350-public body may retain records required under this Section in
4351-paper or electronic format.
4352-Upon 7 business days' notice, the taxpayer contractor and
4353-each subcontractor shall make available for inspection and
4354-copying at a location within this State during reasonable
4355-hours, the records identified in paragraph (1) of this Section
4356-to the taxpayer in charge of the project, its officers and
4357-agents, the Director of Labor and his or her deputies and
4358-agents, and to federal, State, or local law enforcement
4359-agencies and prosecutors.
4360-(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
4361-Section 27. The Film Production Services Tax Credit Act of
4362-2008 is amended by changing Sections 10 and 46 as follows:
4363-(35 ILCS 16/10)
4364-Sec. 10. Definitions. As used in this Act:
4365-"Accredited production" means: (i) for productions
4366-commencing before May 1, 2006, a film, video, or television
4367-production that has been certified by the Department in which
4368-the aggregate Illinois labor expenditures included in the cost
4369-of the production, in the period that ends 12 months after the
4370-time principal filming or taping of the production began,
4371-
4372-
4373-exceed $100,000 for productions of 30 minutes or longer, or
4374-$50,000 for productions of less than 30 minutes; and (ii) for
4375-productions commencing on or after May 1, 2006, a film, video,
4376-or television production that has been certified by the
4377-Department in which the Illinois production spending included
4378-in the cost of production in the period that ends 12 months
4379-after the time principal filming or taping of the production
4380-began exceeds $100,000 for productions of 30 minutes or longer
4381-or exceeds $50,000 for productions of less than 30 minutes.
4382-"Accredited production" does not include a production that:
4383-(1) is news, current events, or public programming, or
4384-a program that includes weather or market reports;
4385-(2) is a talk show produced for local or regional
4386-markets;
4387-(3) (blank); is a production in respect of a game,
4388-questionnaire, or contest;
4389-(4) is a sports event or activity;
4390-(5) is a gala presentation or awards show;
4391-(6) is a finished production that solicits funds;
4392-(7) is a production produced by a film production
4393-company if records, as required by 18 U.S.C. 2257, are to
4394-be maintained by that film production company with respect
4395-to any performer portrayed in that single media or
4396-multimedia program; or
4397-(8) is a production produced primarily for industrial,
4398-corporate, or institutional purposes.
4399-
4400-
4401-"Accredited animated production" means an accredited
4402-production in which movement and characters' performances are
4403-created using a frame-by-frame technique and a significant
4404-number of major characters are animated. Motion capture by
4405-itself is not an animation technique.
4406-"Accredited production certificate" means a certificate
4407-issued by the Department certifying that the production is an
4408-accredited production that meets the guidelines of this Act.
4409-"Applicant" means a taxpayer that is a film production
4410-company that is operating or has operated an accredited
4411-production located within the State of Illinois and that (i)
4412-owns the copyright in the accredited production throughout the
4413-Illinois production period or (ii) has contracted directly
4414-with the owner of the copyright in the accredited production
4415-or a person acting on behalf of the owner to provide services
4416-for the production, where the owner of the copyright is not an
4417-eligible production corporation.
4418-"Credit" means:
4419-(1) for an accredited production approved by the
4420-Department on or before January 1, 2005 and commencing
4421-before May 1, 2006, the amount equal to 25% of the Illinois
4422-labor expenditure approved by the Department. The
4423-applicant is deemed to have paid, on its balance due day
4424-for the year, an amount equal to 25% of its qualified
4425-Illinois labor expenditure for the tax year. For Illinois
4426-labor expenditures generated by the employment of
4427-
4428-
4429-residents of geographic areas of high poverty or high
4430-unemployment, as determined by the Department, in an
4431-accredited production commencing before May 1, 2006 and
4432-approved by the Department after January 1, 2005, the
4433-applicant shall receive an enhanced credit of 10% in
4434-addition to the 25% credit; and
4435-(2) for an accredited production commencing on or
4436-after May 1, 2006 and before January 1, 2009, the amount
4437-equal to:
4438-(i) 20% of the Illinois production spending for
4439-the taxable year; plus
4440-(ii) 15% of the Illinois labor expenditures
4441-generated by the employment of residents of geographic
4442-areas of high poverty or high unemployment, as
4443-determined by the Department; and
4444-(3) for an accredited production commencing on or
4445-after January 1, 2009, the amount equal to:
4446-(i) 30% of the Illinois production spending for
4447-the taxable year; plus
4448-(ii) 15% of the Illinois labor expenditures
4449-generated by the employment of residents of geographic
4450-areas of high poverty or high unemployment, as
4451-determined by the Department.
4452-"Department" means the Department of Commerce and Economic
4453-Opportunity.
4454-"Director" means the Director of Commerce and Economic
4455-
4456-
4457-Opportunity.
4458-"Illinois labor expenditure" means salary or wages paid to
4459-employees of the applicant for services on the accredited
4460-production.
4461-To qualify as an Illinois labor expenditure, the
4462-expenditure must be:
4463-(1) Reasonable in the circumstances.
4464-(2) Included in the federal income tax basis of the
4465-property.
4466-(3) Incurred by the applicant for services on or after
4467-January 1, 2004.
4468-(4) Incurred for the production stages of the
4469-accredited production, from the final script stage to the
4470-end of the post-production stage.
4471-(5) Limited to the first $25,000 of wages paid or
4472-incurred to each employee of a production commencing
4473-before May 1, 2006 and the first $100,000 of wages paid or
4474-incurred to each employee of a production commencing on or
4475-after May 1, 2006 and prior to July 1, 2022. For
4476-productions commencing on or after July 1, 2022, limited
4477-to the first $500,000 of wages paid or incurred to each
4478-eligible nonresident or resident employee of a production
4479-company or loan out company that provides in-State
4480-services to a production, whether those wages are paid or
4481-incurred by the production company, loan out company, or
4482-both, subject to withholding payments provided for in
4483-
4484-
4485-Article 7 of the Illinois Income Tax Act. For purposes of
4486-calculating Illinois labor expenditures for a television
4487-series, the eligible nonresident wage limitations provided
4488-under this subparagraph are applied to the entire season.
4489-For the purpose of this paragraph (5), an eligible
4490-nonresident is a nonresident whose wages qualify as an
4491-Illinois labor expenditure under the provisions of
4492-paragraph (9) that apply to that production.
4493-(6) For a production commencing before May 1, 2006,
4494-exclusive of the salary or wages paid to or incurred for
4495-the 2 highest paid employees of the production.
4496-(7) Directly attributable to the accredited
4497-production.
4498-(8) (Blank).
4499-(9) Prior to July 1, 2022, paid to persons resident in
4500-Illinois at the time the payments were made. For a
4501-production commencing on or after July 1, 2022, paid to
4502-persons resident in Illinois and nonresidents at the time
4503-the payments were made.
4504-For purposes of this subparagraph, if the production
4505-is accredited by the Department before the effective date
4506-of this amendatory Act of the 102nd General Assembly, only
4507-wages paid to nonresidents working in the following
4508-positions shall be considered Illinois labor expenditures:
4509-Writer, Director, Director of Photography, Production
4510-Designer, Costume Designer, Production Accountant, VFX
4511-
4512-
4513-Supervisor, Editor, Composer, and Actor, subject to the
4514-limitations set forth under this subparagraph. For an
4515-accredited Illinois production spending of $25,000,000 or
4516-less, no more than 2 nonresident actors' wages shall
4517-qualify as an Illinois labor expenditure. For an
4518-accredited production with Illinois production spending of
4519-more than $25,000,000, no more than 4 nonresident actor's
4520-wages shall qualify as Illinois labor expenditures.
4521-For purposes of this subparagraph, if the production
4522-is accredited by the Department on or after the effective
4523-date of this amendatory Act of the 102nd General Assembly,
4524-wages paid to nonresidents shall qualify as Illinois labor
4525-expenditures only under the following conditions:
4526-(A) the nonresident must be employed in a
4527-qualified position;
4528-(B) for each of those accredited productions, the
4529-wages of not more than 9 nonresidents who are employed
4530-in a qualified position other than Actor shall qualify
4531-as Illinois labor expenditures;
4532-(C) for an accredited production with Illinois
4533-production spending of $25,000,000 or less, no more
4534-than 2 nonresident actors' wages shall qualify as
4535-Illinois labor expenditures; and
4536-(D) for an accredited production with Illinois
4537-production spending of more than $25,000,000, no more
4538-than 4 nonresident actors' wages shall qualify as
4539-
4540-
4541-Illinois labor expenditures.
4542-As used in this paragraph (9), "qualified position"
4543-means: Writer, Director, Director of Photography,
4544-Production Designer, Costume Designer, Production
4545-Accountant, VFX Supervisor, Editor, Composer, or Actor.
4546-(10) Paid for services rendered in Illinois.
4547-"Illinois production spending" means the expenses incurred
4548-by the applicant for an accredited production, but does not
4549-include any monetary prize or the cost of any non-monetary
4550-prize awarded pursuant to a production in respect of a game,
4551-questionnaire, or contest. "Illinois production spending"
4552-includes, including, without limitation, all of the following:
4553-(1) expenses to purchase, from vendors within
4554-Illinois, tangible personal property that is used in the
4555-accredited production;
4556-(2) expenses to acquire services, from vendors in
4557-Illinois, for film production, editing, or processing; and
4558-(3) for a production commencing before July 1, 2022,
4559-the compensation, not to exceed $100,000 for any one
4560-employee, for contractual or salaried employees who are
4561-Illinois residents performing services with respect to the
4562-accredited production. For a production commencing on or
4563-after July 1, 2022, the compensation, not to exceed
4564-$500,000 for any one employee, for contractual or salaried
4565-employees who are Illinois residents or nonresident
4566-employees, subject to the limitations set forth under
4567-
4568-
4569-Section 10 of this Act.
4570-"Loan out company" means a personal service corporation or
4571-other entity that is under contract with the taxpayer to
4572-provide specified individual personnel, such as artists, crew,
4573-actors, producers, or directors for the performance of
4574-services used directly in a production. "Loan out company"
4575-does not include entities contracted with by the taxpayer to
4576-provide goods or ancillary contractor services such as
4577-catering, construction, trailers, equipment, or
4578-transportation.
4579-"Qualified production facility" means stage facilities in
4580-the State in which television shows and films are or are
4581-intended to be regularly produced and that contain at least
4582-one sound stage of at least 15,000 square feet.
4583-Rulemaking authority to implement Public Act 95-1006, if
4584-any, is conditioned on the rules being adopted in accordance
4585-with all provisions of the Illinois Administrative Procedure
4586-Act and all rules and procedures of the Joint Committee on
4587-Administrative Rules; any purported rule not so adopted, for
4588-whatever reason, is unauthorized.
4589-(Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22;
4590-102-1125, eff. 2-3-23.)
4591-(35 ILCS 16/46)
4592-Sec. 46. Illinois Production Workforce Development Fund.
4593-(a) The Illinois Production Workforce Development Fund is
4594-
4595-
4596-created as a special fund in the State Treasury. Beginning
4597-July 1, 2023 July 1, 2022, amounts paid to the Department of
4598-Commerce and Economic Opportunity pursuant to Section 213 of
4599-the Illinois Income Tax Act shall be deposited into the Fund.
4600-The Fund shall be used exclusively to provide grants to
4601-community-based organizations, labor organizations, private
4602-and public universities, community colleges, and other
4603-organizations and institutions that may be deemed appropriate
4604-by the Department to administer workforce training programs
4605-that support efforts to recruit, hire, promote, retain,
4606-develop, and train a diverse and inclusive workforce in the
4607-film industry.
4608-(b) Pursuant to Section 213 of the Illinois Income Tax
4609-Act, taxpayers who have been awarded a tax credit under this
4610-Act shall pay to the Department of Commerce and Economic
4611-Opportunity, after determination of the tax credit amount but
4612-prior to the issuance of a tax credit certificate, a fee equal
4613-to 2.5% of the credit amount awarded to the taxpayer under the
4614-Film Production Services Tax Credit Act of 2008 that is
4615-attributable to wages paid to nonresidents, as described in
4616-Section 10 of the Film Production Services Tax Credit Act of
4617-2008, and an additional fee equal to 0.25% of the amount
4618-generated by subtracting the credit amount awarded to the
4619-taxpayer under the Film Production Services Tax Credit Act of
4620-2008 that is attributable to wages paid to nonresidents from
4621-the total credit amount awarded to the taxpayer under that
4622-
4623-
4624-Act. All fees collected under this subsection shall be
4625-deposited into the Illinois Production Workforce Development
4626-Fund. No tax credit certificate shall be issued by the
4627-Department of Commerce and Economic Opportunity until the
4628-total fees owed according to this subsection have been
4629-received by the Department of Commerce and Economic
4630-Opportunity. the Fund shall receive deposits in amounts not to
4631-exceed 0.25% of the amount of each credit certificate issued
4632-that is not calculated on out-of-state wages and transferred
4633-or claimed on an Illinois tax return in the quarter such credit
4634-was transferred or claimed. In addition, such amount shall
4635-also include 2.5% of the credit amount calculated on wages
4636-paid to nonresidents that is transferred or claimed on an
4637-Illinois tax return in the quarter such credit was transferred
4638-or claimed.
4639-(c) At the request of the Department, the State
4640-Comptroller and the State Treasurer may advance amounts to the
4641-Fund on an annual basis not to exceed $1,000,000 in any fiscal
4642-year. The fund from which the moneys are advanced shall be
4643-reimbursed in the same fiscal year for any such advance
4644-payments as described in this Section. The method of
4645-reimbursement shall be set forth in rules.
4646-(d) Of the appropriated funds in a given fiscal year, 50%
4647-of the appropriated funds shall be reserved for organizations
4648-that meet one of the following criteria. The organization is:
4649-(1) a minority-owned business, as defined by the Business
4650-
4651-
4652-Enterprise for Minorities, Women, and Persons with
4653-Disabilities Act; (2) located in an underserved area, as
4654-defined by the Economic Development for a Growing Economy Tax
4655-Credit Act; or (3) on an annual basis, training a cohort of
4656-program participants where at least 50% of the program
4657-participants are either a minority person, as defined by the
4658-Business Enterprise for Minorities, Women, and Persons with
4659-Disabilities Act, or reside in an underserved area, as defined
4660-by the Economic Development for a Growing Economy Tax Credit
4661-Act.
4662-(e) The Illinois Production Workforce Development Fund
4663-shall be administered by the Department. The Department may
4664-adopt rules necessary to administer the provisions of this
4665-Section.
4666-(f) Notwithstanding any other law to the contrary, the
4667-Illinois Production Workforce Development Fund is not subject
4668-to sweeps, administrative charge-backs, or any other fiscal or
4669-budgetary maneuver that would in any way transfer any amounts
4670-from the Illinois Production Workforce Development Fund.
4671-(g) By June 30 of each fiscal year, the Department must
4672-submit to the General Assembly a report that includes the
4673-following information: (1) an identification of the
4674-organizations and institutions that received funding to
4675-administer workforce training programs during the fiscal year;
4676-(2) the number of total persons trained and the number of
4677-persons trained per workforce training program in the fiscal
4678-
4679-
4680-year; and (3) in the aggregate, per organization, the number
4681-of persons identified as a minority person or that reside in an
4682-underserved area that received training in the fiscal year.
4683-(Source: P.A. 102-700, eff. 4-19-22.)
4684-Section 30. The Manufacturing Illinois Chips for Real
4685-Opportunity (MICRO) Act is amended by changing Sections 110-5,
4686-110-10, 110-20, 110-35, 110-65, and 110-95 as follows:
4687-(35 ILCS 45/110-5)
4688-Sec. 110-5. Purpose. It is the intent of the General
4689-Assembly that Illinois should lead the nation in the
4690-production of quantum computers and the production of
4691-semiconductors and microchips as they become even more
4692-prevalent in everyday life. The General Assembly finds that,
4693-through investments in quantum computing and semiconductors
4694-and microchips, Illinois will be on the forefront of the
4695-quantum computing industry and the forefront of reshoring
4696-semiconductor and microchip production that fuels modern
4697-technologies that are essential to the operation of computers,
4698-phones, vehicles and the any electric products product that
4699-have become essential to modern life. This Act will create
4700-good paying jobs, and generate long-term economic investment
4701-in the Illinois business economy, in addition to ensuring a
4702-vital product is made in the United States. Illinois must
4703-aggressively adopt new business development investment tools
4704-
4705-
4706-so that Illinois can compete with domestic and foreign
4707-competitors for quantum computer manufacturing and
4708-semiconductor and chip manufacturing.
4709-(Source: P.A. 102-700, eff. 4-19-22.)
4710-(35 ILCS 45/110-10)
4711-Sec. 110-10. Definitions. As used in this Act:
4712-"Agreement" means the agreement between a taxpayer and the
4713-Department under the provisions of this Act.
4714-"Applicant" means a taxpayer that: (i) operates a business
4715-in Illinois as a quantum computer manufacturer, a
4716-semiconductor manufacturer, a microchip manufacturer, or a
4717-manufacturer of quantum computer, semiconductor, or microchip
4718-component parts or a business in Illinois that primarily
4719-engages in research and development in the manufacturing of
4720-quantum computers, semiconductors, or microchips; or (ii) is
4721-planning to locate a business within the State of Illinois as a
4722-quantum computer manufacturer, a semiconductor manufacturer, a
4723-microchip manufacturer, or a manufacturer of quantum computer,
4724-semiconductor, or microchip component parts or a business
4725-within the State of Illinois that primarily engages in
4726-research and development in the manufacturing of quantum
4727-computers, semiconductors, or microchips. For the purposes of
4728-this definition, a business primarily engages in research and
4729-development in the manufacturing of quantum computers,
4730-semiconductors, or microchips if at least 50% of its business
4731-
4732-
4733-activities involve research and development in the
4734-manufacturing of quantum computers, semiconductors, or
4735-microchips. "Applicant" does not include a taxpayer who closes
4736-or substantially reduces by more than 50% operations at one
4737-location in the State and relocates substantially the same
4738-operation to another location in the State. This does not
4739-prohibit a taxpayer from expanding its operations at another
4740-location in the State. This also does not prohibit a taxpayer
4741-from moving its operations from one location in the State to
4742-another location in the State for the purpose of expanding the
4743-operation, provided that the Department determines that
4744-expansion cannot reasonably be accommodated within the
4745-municipality or county in which the business is located, or,
4746-in the case of a business located in an incorporated area of
4747-the county, within the county in which the business is
4748-located, after conferring with the chief elected official of
4749-the municipality or county and taking into consideration any
4750-evidence offered by the municipality or county regarding the
4751-ability to accommodate expansion within the municipality or
4752-county.
4753-"Capital improvements" means the purchase, renovation,
4754-rehabilitation, or construction of permanent tangible land,
4755-buildings, structures, equipment, and furnishings in an
4756-approved project sited in Illinois and expenditures for goods
4757-or services that are normally capitalized, including
4758-organizational costs and research and development costs
4759-
4760-
4761-incurred in Illinois. For land, buildings, structures, and
4762-equipment that are leased, the lease must equal or exceed the
4763-term of the agreement, and the cost of the property shall be
4764-determined from the present value, using the corporate
4765-interest rate prevailing at the time of the application, of
4766-the lease payments.
4767-"Credit" or "MICRO credit" means a credit agreed to
4768-between the Department and applicant under this Act.
4769-"Department" means the Department of Commerce and Economic
4770-Opportunity.
4771-"Director" means the Director of Commerce and Economic
4772-Opportunity.
4773-"Energy Transition Area" means a county with less than
4774-100,000 people or a municipality that contains one or more of
4775-the following:
4776-(1) a fossil fuel plant that was retired from service
4777-or has significant reduced service within 6 years before
4778-the time of the application or will be retired or have
4779-service significantly reduced within 6 years following the
4780-time of the application; or
4781-(2) a coal mine that was closed or had operations
4782-significantly reduced within 6 years before the time of
4783-the application or is anticipated to be closed or have
4784-operations significantly reduced within 6 years following
4785-the time of the application.
4786-"Full-time employee" means an individual who is employed
4787-
4788-
4789-for consideration for at least 35 hours each week or who
4790-renders any other standard of service generally accepted by
4791-industry custom or practice as full-time employment. An
4792-individual for whom a W-2 is issued by a Professional Employer
4793-Organization (PEO) is a full-time employee if employed in the
4794-service of the applicant for consideration for at least 35
4795-hours each week.
4796-"Incremental income tax" means the total amount withheld
4797-during the taxable year from the compensation of new employees
4798-and, if applicable, retained employees under Article 7 of the
4799-Illinois Income Tax Act arising from employment at a project
4800-that is the subject of an agreement.
4801-"Institution of higher education" or "institution" means
4802-any accredited public or private university, college,
4803-community college, business, technical, or vocational school,
4804-or other accredited educational institution offering degrees
4805-and instruction beyond the secondary school level.
4806-"MICRO construction jobs credit" means a credit agreed to
4807-between the Department and the applicant under this Act that
4808-is based on the incremental income tax attributable to
4809-construction wages paid in connection with construction of the
4810-project facilities.
4811-"MICRO credit" means a credit agreed to between the
4812-Department and the applicant under this Act that is based on
4813-the incremental income tax attributable to new employees and,
4814-if applicable, retained employees, and on training costs for
4815-
4816-
4817-such employees at the applicant's project.
4818-"Microchip" means a wafer of semiconducting material that
4819-is less than 15 millimeters long and less than 5 millimeters
4820-wide and is used to make an integrated circuit.
4821-"Microchip manufacturer" means a new or existing
4822-manufacturer that is focused on reequipping, expanding, or
4823-establishing a manufacturing facility in Illinois that
4824-produces microchips or key components that directly support
4825-the functions of microchips.
4826-"Minority person" means a minority person as defined in
4827-the Business Enterprise for Minorities, Women, and Persons
4828-with Disabilities Act.
4829-"New employee" means a newly-hired full-time employee
4830-employed to work at the project site and whose work is directly
4831-related to the project.
4832-"Noncompliance date" means, in the case of a taxpayer that
4833-is not complying with the requirements of the agreement or the
4834-provisions of this Act, the day following the last date upon
4835-which the taxpayer was in compliance with the requirements of
4836-the agreement and the provisions of this Act, as determined by
4837-the Director.
4838-"Pass-through entity" means an entity that is exempt from
4839-the tax under subsection (b) or (c) of Section 205 of the
4840-Illinois Income Tax Act.
4841-"Placed in service" means the state or condition of
4842-readiness, availability for a specifically assigned function,
4843-
4844-
4845-and the facility is constructed and ready to conduct its
4846-facility operations to manufacture goods.
4847-"Professional employer organization" (PEO) means an
4848-employee leasing company, as defined in Section 206.1 of the
4849-Illinois Unemployment Insurance Act.
4850-"Program" means the Manufacturing Illinois Chips for Real
4851-Opportunity (MICRO) program established in this Act.
4852-"Project" means a for-profit economic development activity
4853-for the manufacture of quantum computers, semiconductors, or
4854-and microchips.
4855-"Quantum computer" means a machine that uses the
4856-properties of quantum physics to perform computations and
4857-store data, as distinct from classical computing machines.
4858-"Quantum computer manufacturer" or "manufacturer of
4859-quantum computers or quantum computer component parts" means a
4860-new or existing manufacturer that is focused on reequipping,
4861-expanding, or establishing a facility in Illinois that
4862-manufactures a quantum computer, quantum computer prototype
4863-devices, or components that support the functions of a quantum
4864-computer.
4865-"Related member" means a person that, with respect to the
4866-taxpayer during any portion of the taxable year, is any one of
4867-the following:
4868-(1) An individual stockholder, if the stockholder and
4869-the members of the stockholder's family (as defined in
4870-Section 318 of the Internal Revenue Code) own directly,
4871-
4872-
4873-indirectly, beneficially, or constructively, in the
4874-aggregate, at least 50% of the value of the taxpayer's
4875-outstanding stock.
4876-(2) A partnership, estate, trust and any partner or
4877-beneficiary, if the partnership, estate, or trust, and its
4878-partners or beneficiaries own directly, indirectly,
4879-beneficially, or constructively, in the aggregate, at
4880-least 50% of the profits, capital, stock, or value of the
4881-taxpayer.
4882-(3) A corporation, and any party related to the
4883-corporation in a manner that would require an attribution
4884-of stock from the corporation under the attribution rules
4885-of Section 318 of the Internal Revenue Code, if the
4886-taxpayer owns directly, indirectly, beneficially, or
4887-constructively at least 50% of the value of the
4888-corporation's outstanding stock.
4889-(4) A corporation and any party related to that
4890-corporation in a manner that would require an attribution
4891-of stock from the corporation to the party or from the
4892-party to the corporation under the attribution rules of
4893-Section 318 of the Internal Revenue Code, if the
4894-corporation and all such related parties own in the
4895-aggregate at least 50% of the profits, capital, stock, or
4896-value of the taxpayer.
4897-(5) A person to or from whom there is an attribution of
4898-stock ownership in accordance with Section 1563(e) of the
4899-
4900-
4901-Internal Revenue Code, except, for purposes of determining
4902-whether a person is a related member under this paragraph,
4903-20% shall be substituted for 5% wherever 5% appears in
4904-Section 1563(e) of the Internal Revenue Code.
4905-"Research and development in the manufacturing of quantum
4906-computers, semiconductors, or microchips" means work directed
4907-toward the innovation, introduction, and improvement of
4908-products and processes in the space of quantum computing
4909-manufacturing, semiconductor manufacturing, microchip
4910-manufacturing, or the manufacturing of semiconductor, quantum
4911-computer, or microchip component parts.
4912-"Retained employee" means a full-time employee employed by
4913-the taxpayer prior to the term of the agreement who continues
4914-to be employed during the term of the agreement whose job
4915-duties are directly and substantially related to the project.
4916-For purposes of this definition, "directly and substantially
4917-related to the project" means at least two-thirds of the
4918-employee's job duties must be directly related to the project
4919-and the employee must devote at least two-thirds of his or her
4920-time to the project. The term "retained employee" does not
4921-include any individual who has a direct or an indirect
4922-ownership interest of at least 5% in the profits, equity,
4923-capital, or value of the taxpayer or a child, grandchild,
4924-parent, or spouse, other than a spouse who is legally
4925-separated from the individual, of any individual who has a
4926-direct or indirect ownership of at least 5% in the profits,
4927-
4928-
4929-equity, capital, or value of the taxpayer.
4930-"Semiconductor" means any class of crystalline solids
4931-intermediate in electrical conductivity between a conductor
4932-and an insulator.
4933-"Semiconductor manufacturer" means a new or existing
4934-manufacturer that is focused on reequipping, expanding, or
4935-establishing a manufacturing facility in Illinois that
4936-produces semiconductors or key components that directly
4937-support the functions of semiconductors. Semiconductor
4938-manufacturing also includes the manufacturing of component
4939-parts that are required for the development and operation of
4940-quantum computers and quantum computing facilities.
4941-"Statewide baseline" means the total number of full-time
4942-employees of the applicant and any related member employed by
4943-such entities at the time of application for incentives under
4944-this Act.
4945-"Taxpayer" means an individual, corporation, partnership,
4946-or other entity that has a legal obligation to pay Illinois
4947-income taxes and file an Illinois income tax return.
4948-"Training costs" means costs incurred to upgrade the
4949-technological skills of full-time employees in Illinois and
4950-includes: curriculum development; training materials
4951-(including scrap product costs); trainee domestic travel
4952-expenses; instructor costs (including wages, fringe benefits,
4953-tuition and domestic travel expenses); rent, purchase or lease
4954-of training equipment; and other usual and customary training
4955-
4956-
4957-costs. "Training costs" do not include costs associated with
4958-travel outside the United States (unless the taxpayer receives
4959-prior written approval for the travel by the Director based on
4960-a showing of substantial need or other proof the training is
4961-not reasonably available within the United States), wages and
4962-fringe benefits of employees during periods of training, or
4963-administrative cost related to full-time employees of the
4964-taxpayer.
4965-"Underserved area" means any geographic area areas as
4966-defined in Section 5-5 of the Economic Development for a
4967-Growing Economy Tax Credit Act.
4968-(Source: P.A. 102-700, eff. 4-19-22.)
4969-(35 ILCS 45/110-20)
4970-Sec. 110-20. Manufacturing Illinois Chips for Real
4971-Opportunity (MICRO) Program; project applications.
4972-(a) The Manufacturing Illinois Chips for Real Opportunity
4973-(MICRO) Program is hereby established and shall be
4974-administered by the Department. The Program will provide
4975-financial incentives to eligible semiconductor manufacturers,
4976-and microchip manufacturers, quantum computer manufacturers,
4977-and companies that primarily engage in research and
4978-development in the manufacturing of quantum computers,
4979-semiconductors, or microchips. For the purposes of this
4980-Section, a company is primarily engaged in research and
4981-development in the manufacturing of quantum computers,
4982-
4983-
4984-semiconductors, or microchips if at least 50% of its business
4985-activities involve research and development in the
4986-manufacturing of quantum computers, semiconductors, or
4987-microchips..
4988-(b) Any taxpayer planning a project to be located in
4989-Illinois may request consideration for designation of its
4990-project as a MICRO project, by formal written letter of
4991-request or by formal application to the Department, in which
4992-the applicant states its intent to make at least a specified
4993-level of investment and intends to hire a specified number of
4994-full-time employees at a designated location in Illinois. As
4995-circumstances require, the Department shall require a formal
4996-application from an applicant and a formal letter of request
4997-for assistance.
4998-(c) In order to qualify for credits under the program, an
4999-applicant must:
5000-(1) for a semiconductor manufacturer, a or microchip
5001-manufacturer, a quantum computer manufacturer, or a
5002-company focusing on research and development in the
5003-manufacturing of quantum computers, semiconductors, or
5004-microchips:
5005-(A) make an investment of at least $1,500,000,000
5006-in capital improvements at the project site;
5007-(B) to be placed in service within the State
5008-within a 60-month period after approval of the
5009-application; and
5010-
5011-
5012-(C) create at least 500 new full-time employee
5013-jobs; or
5014-(2) for a semiconductor component parts manufacturer,
5015-a or microchip component parts manufacturer, a quantum
5016-computer component parts manufacturer, or a company
5017-focusing on research and development in the manufacture of
5018-component parts for quantum computers, semiconductors, or
5019-microchips:
5020-(A) make an investment of at least $300,000,000 in
5021-capital improvements at the project site;
5022-(B) manufacture one or more parts that are
5023-primarily used for the manufacture of semiconductors
5024-or microchips;
5025-(C) to be placed in service within the State
5026-within a 60-month period after approval of the
5027-application; and
5028-(D) create at least 150 new full-time employee
5029-jobs; or
5030-(3) for a semiconductor manufacturer, a or microchip
5031-manufacturer, a quantum computer manufacturer, a company
5032-focusing on research and development in the manufacturing
5033-of quantum computers, semiconductors, or microchips, or or
5034-a semiconductor or microchip component parts manufacturer
5035-that does not quality under paragraph (2) above:
5036-(A) make an investment of at least $2,500,000
5037-$20,000,000 in capital improvements at the project
5038-
5039-
5040-site;
5041-(B) to be placed in service within the State
5042-within a 48-month period after approval of the
5043-application; and
5044-(C) create at least 50 new full-time employee jobs
5045-or new full-time employees equivalent to 10% of the
5046-number of full-time employees employed by the
5047-applicant world-wide on the date the application is
5048-filed with the Department; or
5049-(4) for a semiconductor manufacturer, quantum computer
5050-manufacturer, or microchip manufacturer, or a
5051-semiconductor or microchip component parts manufacturer
5052-with existing operations in Illinois that intends to
5053-convert or expand, in whole or in part, the existing
5054-facility from traditional manufacturing to semiconductor
5055-manufacturing, quantum computer manufacturing, or
5056-microchip manufacturing or semiconductor, quantum
5057-computer, or microchip component parts manufacturing, or a
5058-company focusing on research and development in the
5059-manufacturing of quantum computers, semiconductors, or
5060-microchips:
5061-(A) make an investment of at least $100,000,000 in
5062-capital improvements at the project site;
5063-(B) to be placed in service within the State
5064-within a 60-month period after approval of the
5065-application; and
5066-
5067-
5068-(C) create the lesser of 75 new full-time employee
5069-jobs or new full-time employee jobs equivalent to 10%
5070-of the Statewide baseline applicable to the taxpayer
5071-and any related member at the time of application.
5072-(d) For any applicant creating the full-time employee jobs
5073-noted in subsection (c), those jobs must have a total
5074-compensation equal to or greater than 120% of the average wage
5075-paid to full-time employees in the county where the project is
5076-located, as determined by the Department.
5077-(e) Each applicant must outline its hiring plan and
5078-commitment to recruit and hire full-time employee positions at
5079-the project site. The hiring plan may include a partnership
5080-with an institution of higher education to provide
5081-internships, including, but not limited to, internships
5082-supported by the Clean Jobs Workforce Network Program, or
5083-full-time permanent employment for students at the project
5084-site. Additionally, the applicant may create or utilize
5085-participants from apprenticeship programs that are approved by
5086-and registered with the United States Department of Labor's
5087-Bureau of Apprenticeship and Training. The Applicant may apply
5088-for apprenticeship education expense credits in accordance
5089-with the provisions set forth in 14 Ill. Admin. Code 522. Each
5090-applicant is required to report annually, on or before April
5091-15, on the diversity of its workforce in accordance with
5092-Section 110-50 of this Act. For existing facilities of
5093-applicants under paragraph (3) of subsection (b) above, if the
5094-
5095-
5096-taxpayer expects a reduction in force due to its transition to
5097-manufacturing semiconductors, microchips, or semiconductor or
5098-microchip component parts, the plan submitted under this
5099-Section must outline the taxpayer's plan to assist with
5100-retraining its workforce aligned with the taxpayer's adoption
5101-of new technologies and anticipated efforts to retrain
5102-employees through employment opportunities within the
5103-taxpayer's workforce.
5104-(f) A taxpayer may not enter into more than one agreement
5105-under this Act with respect to a single address or location for
5106-the same period of time. Also, a taxpayer may not enter into an
5107-agreement under this Act with respect to a single address or
5108-location for the same period of time for which the taxpayer
5109-currently holds an active agreement under the Economic
5110-Development for a Growing Economy Tax Credit Act. This
5111-provision does not preclude the applicant from entering into
5112-an additional agreement after the expiration or voluntary
5113-termination of an earlier agreement under this Act or under
5114-the Economic Development for a Growing Economy Tax Credit Act
5115-to the extent that the taxpayer's application otherwise
5116-satisfies the terms and conditions of this Act and is approved
5117-by the Department. An applicant with an existing agreement
5118-under the Economic Development for a Growing Economy Tax
5119-Credit Act may submit an application for an agreement under
5120-this Act after it terminates any existing agreement under the
5121-Economic Development for a Growing Economy Tax Credit Act with
5122-
5123-
5124-respect to the same address or location.
5125-(Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
5126-(35 ILCS 45/110-35)
5127-Sec. 110-35. Relocation of jobs in Illinois. A taxpayer is
5128-not entitled to claim a credit provided by this Act with
5129-respect to any jobs that the taxpayer relocates from one site
5130-in Illinois to another site in Illinois unless the taxpayer
5131-has agreed to hire the minimum number of new employees and the
5132-Department has determined that the expansion cannot reasonably
5133-be accommodated within the municipality in which the business
5134-is located. Any full-time employee relocated to Illinois in
5135-connection with a qualifying project is deemed to be a new
5136-employee for purposes of this Act. Determinations under this
5137-Section shall be made by the Department.
5138-(Source: P.A. 102-700, eff. 4-19-22.)
5139-(35 ILCS 45/110-65)
5140-Sec. 110-65. Certified payroll.
5141-(a) Annually, until construction is completed, a company
5142-seeking MICRO Construction Job Credits shall submit a report
5143-that, at a minimum, describes the projected project scope,
5144-timeline, and anticipated budget. Once the project has
5145-commenced, the annual report shall include actual data for the
5146-prior year as well as projections for each additional year
5147-through completion of the project. The Department shall issue
5148-
5149-
5150-detailed reporting guidelines prescribing the requirements of
5151-construction-related reports. Each contractor and
5152-subcontractor that is engaged in construction work on project
5153-facilities for a taxpayer who seeks to apply for a MICRO
5154-Construction Jobs Credit shall:
5155-(1) make and keep, for a period of 5 years from the
5156-date of the last payment made on a contract or subcontract
5157-for construction of facilities for a project pursuant to
5158-an agreement, records of all laborers and other workers
5159-employed by the contractor or subcontractor on the
5160-project; the records shall include:
5161-(A) the worker's name;
5162-(B) the worker's address;
5163-(C) the worker's telephone number, if available;
5164-(D) the worker's social security number;
5165-(E) the worker's classification or
5166-classifications;
5167-(F) the worker's gross and net wages paid in each
5168-pay period;
5169-(G) the worker's number of hours worked in each
5170-day;
5171-(H) the worker's starting and ending times of work
5172-each day;
5173-(I) the worker's hourly wage rate; and
5174-(J) the worker's hourly overtime wage rate; and
5175-(2) no later than the 15th day of each calendar month,
5176-
5177-
5178-provide a certified payroll for the immediately preceding
5179-month to the taxpayer in charge of the project; within 5
5180-business days after receiving the certified payroll, the
5181-taxpayer shall file the certified payroll with the
5182-Department of Labor and the Department; a certified
5183-payroll must be filed for only those calendar months
5184-during which construction on the project facilities has
5185-occurred; the certified payroll shall consist of a
5186-complete copy of the records identified in paragraph (1),
5187-but may exclude the starting and ending times of work each
5188-day; the certified payroll shall be accompanied by a
5189-statement signed by the contractor or subcontractor or an
5190-officer, employee, or agent of the contractor or
5191-subcontractor which avers that:
5192-(A) he or she has examined the certified payroll
5193-records required to be submitted by the Act and such
5194-records are true and accurate; and
5195-(B) the contractor or subcontractor is aware that
5196-filing a certified payroll that he or she knows to be
5197-false is a Class A misdemeanor.
5198-A general contractor is not prohibited from relying on a
5199-certified payroll of a lower-tier subcontractor, provided the
5200-general contractor does not knowingly rely upon a
5201-subcontractor's false certification.
5202-(b) In order to receive credit for construction expenses,
5203-the company must provide the Department with evidence that a
5204-
5205-
5206-certified third party executed an Agreed-Upon Procedure (AUP)
5207-verifying the construction expenses or accept the standard
5208-construction wage expense estimated by the Department. Any
5209-contractor or subcontractor subject to this Section, and any
5210-officer, employee, or agent of such contractor or
5211-subcontractor whose duty as an officer, employee, or agent it
5212-is to file a certified payroll under this Section, who
5213-willfully fails to file such a certified payroll, on or before
5214-the date such certified payroll is required to be filed and any
5215-person who willfully files a false certified payroll as to any
5216-material fact is in violation of this Act and guilty of a Class
5217-A misdemeanor and may be enforced by the Illinois Department
5218-of Labor or the Department. The Attorney General shall
5219-represented the Illinois Department of Labor or the Department
5220-in the proceeding.
5221-(c) Upon review of the final project scope, timeline,
5222-budget, and AUP, the Department shall issue a tax credit
5223-certificate reflecting a percentage of the total construction
5224-job wages paid throughout the completion of the project. The
5225-taxpayer in charge of the project shall keep the records
5226-submitted in accordance with this Section for a period of 5
5227-years from the date of the last payment for work on a contract
5228-or subcontract for the project.
5229-(d) (Blank). The records submitted in accordance with this
5230-Section shall be considered public records, except an
5231-employee's address, telephone number, and social security
5232-
5233-
5234-number, which shall be redacted. The records shall be made
5235-publicly available in accordance with the Freedom of
5236-Information Act. The contractor or subcontractor shall submit
5237-reports to the Department of Labor electronically that meet
5238-the requirements of this subsection and shall share the
5239-information with the Department to comply with the awarding of
5240-the MICRO Construction Jobs Credit. A contractor,
5241-subcontractor, or public body may retain records required
5242-under this Section in paper or electronic format.
5243-(e) Upon 7 business days' notice, the taxpayer contractor
5244-and each subcontractor shall make available to each State
5245-agency and to federal, State, or local law enforcement
5246-agencies and prosecutors for inspection and copying at a
5247-location within this State during reasonable hours, the report
5248-described in subsection (a) records identified in paragraph
5249-(1) of this subsection to the taxpayer in charge of the
5250-Project, its officers and agents, the Director of the
5251-Department of Labor and his/her deputies and agents, and to
5252-federal, State, or local law enforcement agencies and
5253-prosecutors.
5254-(Source: P.A. 102-700, eff. 4-19-22.)
5255-(35 ILCS 45/110-95)
5256-Sec. 110-95. Utility tax exemptions for MICRO projects.
5257-The Department may certify a taxpayer with a credit for a
5258-project that meets the qualifications under paragraphs (1),
5259-
5260-
5261-(2), and (4) of subsection (c) of Section 110-20, subject to an
5262-agreement under this Act, for an exemption from the tax
5263-imposed at the project site by Section 2-4 of the Electricity
5264-Excise Tax Law. To receive such certification, the taxpayer
5265-must be registered to self-assess that tax. The taxpayer is
5266-also exempt from any additional charges added to the
5267-taxpayer's utility bills at the project site as a pass-on of
5268-State utility taxes under Section 9-222 of the Public
5269-Utilities Act. The taxpayer must meet any other the criteria
5270-for certification set by the Department.
5271-The Department shall determine the period during which the
5272-exemption from the Electricity Excise Tax Law and the charges
5273-imposed under Section 9-222 of the Public Utilities Act are in
5274-effect, which shall not exceed 30 10 years from the date of the
5275-taxpayer's initial receipt of certification from the
5276-Department under this Section.
5277-The Department is authorized to adopt rules to carry out
5278-the provisions of this Section, including procedures to apply
5279-for the exemptions; to define the amounts and types of
5280-eligible investments that an applicant must make in order to
5281-receive electricity excise tax exemptions or exemptions from
5282-the additional charges imposed under Section 9-222 and the
5283-Public Utilities Act; to approve such electricity excise tax
5284-exemptions for applicants whose investments are not yet placed
5285-in service; and to require that an applicant granted an
5286-electricity excise tax exemption or an exemption from
5287-
5288-
5289-additional charges under Section 9-222 of the Public Utilities
5290-Act repay the exempted amount if the applicant fails to comply
5291-with the terms and conditions of the agreement.
5292-Upon certification by the Department under this Section,
5293-the Department shall notify the Department of Revenue of the
5294-certification. The Department of Revenue shall notify the
5295-public utilities of the exempt status of any taxpayer
5296-certified for exemption under this Act from the electricity
5297-excise tax or pass-on charges. The exemption status shall take
5298-effect within 3 months after certification of the taxpayer and
5299-notice to the Department of Revenue by the Department.
5300-(Source: P.A. 102-700, eff. 4-19-22.)
5301-Section 35. The Use Tax Act is amended by changing Section
5302-12 as follows:
5303-(35 ILCS 105/12) (from Ch. 120, par. 439.12)
5304-Sec. 12. Applicability of Retailers' Occupation Tax Act
5305-and Uniform Penalty and Interest Act. All of the provisions of
5306-Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
5307-2-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
5308-provisions shall run from the date when the tax is due rather
5309-than from the date when gross receipts are received), 5
5310-(except that the time limitation provisions on the issuance of
5311-notices of tax liability shall run from the date when the tax
5312-is due rather than from the date when gross receipts are
5313-
5314-
5315-received and except that in the case of a failure to file a
5316-return required by this Act, no notice of tax liability shall
5317-be issued on and after each July 1 and January 1 covering tax
5318-due with that return during any month or period more than 6
5319-years before that July 1 or January 1, respectively), 5a, 5b,
5320-5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and
5321-12 of the Retailers' Occupation Tax Act and Section 3-7 of the
5322-Uniform Penalty and Interest Act, which are not inconsistent
5323-with this Act, shall apply, as far as practicable, to the
5324-subject matter of this Act to the same extent as if such
5325-provisions were included herein.
5326-(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
5327-Section 40. The Service Use Tax Act is amended by changing
5328-Section 12 as follows:
5329-(35 ILCS 110/12) (from Ch. 120, par. 439.42)
5330-Sec. 12. Applicability of Retailers' Occupation Tax Act
5331-and Uniform Penalty and Interest Act. All of the provisions of
5332-Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
5333-2-29, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
5334-Department of the money collected under this Act), 4 (except
5335-that the time limitation provisions shall run from the date
5336-when gross receipts are received), 5 (except that the time
5337-limitation provisions on the issuance of notices of tax
5338-liability shall run from the date when the tax is due rather
5339-
5340-
5341-than from the date when gross receipts are received and except
5342-that in the case of a failure to file a return required by this
5343-Act, no notice of tax liability shall be issued on and after
5344-July 1 and January 1 covering tax due with that return during
5345-any month or period more than 6 years before that July 1 or
5346-January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
5347-5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
5348-Occupation Tax Act which are not inconsistent with this Act,
5349-and Section 3-7 of the Uniform Penalty and Interest Act, shall
5350-apply, as far as practicable, to the subject matter of this Act
5351-to the same extent as if such provisions were included herein.
5352-(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
5353-Section 45. The Service Occupation Tax Act is amended by
5354-changing Section 12 as follows:
5355-(35 ILCS 115/12) (from Ch. 120, par. 439.112)
5356-Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
5357-1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-29, 2-54, 2a, 2b, 2c, 3
5358-(except as to the disposition by the Department of the tax
5359-collected under this Act), 4 (except that the time limitation
5360-provisions shall run from the date when the tax is due rather
5361-than from the date when gross receipts are received), 5
5362-(except that the time limitation provisions on the issuance of
5363-notices of tax liability shall run from the date when the tax
5364-is due rather than from the date when gross receipts are
5365-
5366-
5367-received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d,
5368-7, 8, 9, 10, 11, and 12 of the "Retailers' Occupation Tax Act"
5369-which are not inconsistent with this Act, and Section 3-7 of
5370-the Uniform Penalty and Interest Act shall apply, as far as
5371-practicable, to the subject matter of this Act to the same
5372-extent as if such provisions were included herein.
5373-(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
5374-revised 9-26-23.)
5375-Section 50. The Retailers' Occupation Tax Act is amended
5376-by adding Section 2-29 as follows:
5377-(35 ILCS 120/2-29 new)
5378-Sec. 2-29. Quantum computing campus building materials
5379-exemption.
5380-(a) Each retailer who makes a qualified sale of building
5381-materials to be incorporated into real estate at a quantum
5382-computing campus certified by the Department of Commerce and
5383-Economic Opportunity under Section 605-1115 of the Department
5384-of Commerce and Economic Opportunity Law of the Civil
5385-Administrative Code of Illinois may deduct receipts from those
5386-sales when calculating the tax imposed by this Act. Quantum
5387-Computing Campus Building Materials Exemption Certificates
5388-shall be issued for an initial period not to exceed 20 years
5389-and can be renewed once for a period not to exceed 20 years.
5390-(b) No retailer who is eligible for the deduction or
5391-
5392-
5393-credit for a given sale under Section 5k of this Act related to
5394-enterprise zones, Section 5l of this Act related to High
5395-Impact Businesses, Section 5m of this Act related to REV
5396-Illinois projects, or Section 5n of this Act related to MICRO
5397-facilities shall be eligible for the deduction or credit
5398-authorized under this Section for that same sale.
5399-(c) A construction contractor or other entity shall not
5400-make tax-free purchases unless it has an active Exemption
5401-Certificate issued by the Department at the time of the
5402-purchase.
5403-(d) A taxpayer that is certified by the Department of
5404-Commerce and Economic Opportunity under Section 605-1115 of
5405-the Department of Commerce and Economic Opportunity Law of the
5406-Civil Administrative Code of Illinois shall submit a request
5407-to the Department for an initial or renewal Quantum Computing
5408-Campus Materials Exemption Certificate. Upon request from the
5409-certified taxpayer, the Department shall issue a Quantum
5410-Computing Campus Building Materials Exemption Certificate for
5411-each construction contractor or other entity identified by the
5412-certified taxpayer. The Department shall make the Quantum
5413-Computing Campus Building Materials Exemption Certificates
5414-available to each construction contractor or other entity
5415-identified by the certified taxpayer and to the certified
5416-taxpayer. The request for Quantum Computing Campus Building
5417-Materials Exemption Certificates under this Section must
5418-include the following information:
5419-
5420-
5421-(1) the name and address of the construction
5422-contractor or other entity;
5423-(2) the name and location or address of the building
5424-project site;
5425-(3) the estimated amount of the exemption for each
5426-construction contractor or other entity for which a
5427-request for a Quantum Computing Campus Building Materials
5428-Exemption Certificate is made, based on a stated estimated
5429-average tax rate and the percentage of the contract that
5430-consists of materials;
5431-(4) the period of time over which supplies for the
5432-project are expected to be purchased; and
5433-(5) other reasonable information as the Department may
5434-require, including, but not limited to, FEIN numbers, to
5435-determine if the contractor or other entity, or any
5436-partner, or a corporate officer, and in the case of a
5437-limited liability company, any manager or member, of the
5438-construction contractor or other entity, is or has been
5439-the owner, a partner, a corporate officer, and, in the
5440-case of a limited liability company, a manager or member,
5441-of a person that is in default for moneys due to the
5442-Department under this Act or any other tax or fee Act
5443-administered by the Department.
5444-The Department, in its discretion, may require that the
5445-request for Quantum Computing Campus Building Materials
5446-Exemption Certificates be submitted electronically. The
5447-
5448-
5449-Department may, in its discretion, issue the Exemption
5450-Certificates electronically.
5451-(e) To document the exemption allowed under this Section,
5452-the retailer must obtain from the purchaser the certification
5453-required under this Section, which must contain the Quantum
5454-Computing Campus Building Materials Exemption Certificate
5455-number issued to the purchaser by the Department. In addition,
5456-the retailer must obtain certification from the purchaser that
5457-contains:
5458-(1) a statement that the building materials are being
5459-purchased for incorporation into real estate located in a
5460-quantum computing campus;
5461-(2) the location or address of the real estate into
5462-which the building materials will be incorporated;
5463-(3) the name of the quantum computing campus in which
5464-that real estate is located;
5465-(4) a description of the building materials being
5466-purchased;
5467-(5) the purchaser's Quantum Computing Campus Building
5468-Materials Exemption Certificate number issued by the
5469-Department; and
5470-(6) the purchaser's signature and date of purchase.
5471-(f) The Department shall issue the Quantum Computing
5472-Campus Building Materials Exemption Certificates within 3
5473-business days after receipt of the request from the certified
5474-taxpayer. This requirement does not apply in circumstances
5475-
5476-
5477-where the Department, for reasonable cause, is unable to issue
5478-the Exemption Certificate within 3 business days. The
5479-Department may refuse to issue a Quantum Computing Campus
5480-Building Materials Exemption Certificate if the owner, any
5481-partner, or a corporate officer, and in the case of a limited
5482-liability company, any manager or member, of the construction
5483-contractor or other entity is or has been the owner, a partner,
5484-a corporate officer, and, in the case of a limited liability
5485-company, a manager or member, of a person that is in default
5486-for moneys due to the Department under this Act or any other
5487-tax or fee Act administered by the Department.
5488-(g) The Quantum Computing Campus Building Materials
5489-Exemption Certificate shall contain:
5490-(1) a unique identifying number that shall be designed
5491-in such a way that the Department can identify from the
5492-unique number on the Exemption Certificate issued to a
5493-given construction contractor or other entity, the name of
5494-the quantum computing campus and the construction
5495-contractor or other entity to whom the Exemption
5496-Certificate is issued;
5497-(2) the name of the construction contractor or entity
5498-to whom the Exemption Certificate is issued;
5499-(3) issuance, effective, and expiration dates; and
5500-(4) language stating that if the construction
5501-contractor or other entity who is issued the Exemption
5502-Certificate makes a tax-exempt purchase, as described in
5503-
5504-
5505-this Section, that is not eligible for exemption under
5506-this Section or allows another person to make a tax-exempt
5507-purchase, as described in this Section, that is not
5508-eligible for exemption under this Section, then, in
5509-addition to any tax or other penalty imposed, the
5510-construction contractor or other entity is subject to a
5511-penalty equal to the tax that would have been paid by the
5512-retailer under this Act as well as any applicable local
5513-retailers' occupation tax on the purchase that is not
5514-eligible for the exemption.
5515-(h) After the Department issues Exemption Certificates for
5516-a given quantum computing campus, the certified taxpayer may
5517-notify the Department of additional construction contractors
5518-or other entities that are eligible for a Quantum Computing
5519-Campus Building Materials Exemption Certificate. Upon
5520-receiving such a notification and subject to the other
5521-provisions of this Section, the Department shall issue a
5522-Quantum Computing Campus Building Materials Exemption
5523-Certificate to each additional construction contractor or
5524-other entity so identified.
5525-(i) A certified taxpayer may ask the Department to rescind
5526-a Quantum Computing Campus Building Materials Exemption
5527-Certificate previously issued by the Department to a
5528-construction contractor or other entity working at that
5529-certified quantum computing campus if that Quantum Computing
5530-Campus Building Materials Exemption Certificate has not yet
5531-
5532-
5533-expired. Upon receiving such a request and subject to the
5534-other provisions of this Section, the Department shall issue
5535-the rescission of the Quantum Computing Campus Building
5536-Materials Exemption Certificate to the construction contractor
5537-or other entity identified by the certified taxpayer and
5538-provide a copy of the rescission to the construction
5539-contractor or other entity and to the certified taxpayer.
5540-(j) If the Department of Revenue determines that a
5541-construction contractor or other entity that was issued an
5542-Exemption Certificate under this Section made a tax-exempt
5543-purchase, as described in this Section, that was not eligible
5544-for exemption under this Section or allowed another person to
5545-make a tax-exempt purchase, as described in this Section, that
5546-was not eligible for exemption under this Section, then, in
5547-addition to any tax or other penalty imposed, the construction
5548-contractor or other entity is subject to a penalty equal to the
5549-tax that would have been paid by the retailer under this Act as
5550-well as any applicable local retailers' occupation tax on the
5551-purchase that was not eligible for the exemption.
5552-(k) Each contractor or other entity that has been issued a
5553-Quantum Computing Campus Building Materials Exemption
5554-Certificate under this Section shall annually report to the
5555-Department the total value of the quantum computing campus
5556-building materials exemption from State taxes. Reports shall
5557-contain information reasonably required by the Department to
5558-enable it to verify and calculate the total tax benefits for
5559-
5560-
5561-taxes imposed by the State and shall be broken down by quantum
5562-computing campus site. Reports are due no later than May 31 of
5563-each year and shall cover the previous calendar year. Failure
5564-to report data may result in revocation of the Quantum
5565-Computing Campus Building Materials Exemption Certificate
5566-issued to the contractor or other entity. The Department is
5567-authorized to adopt rules governing revocation determinations,
5568-including the length of revocation. Factors to be considered
5569-in revocations shall include, but are not limited to, prior
5570-compliance with the reporting requirements, cooperation in
5571-discontinuing and correcting violations, and whether the
5572-certificate was used unlawfully during the preceding year. The
5573-Department, in its discretion, may require that the reports
5574-filed under this Section be submitted electronically.
5575-(l) As used in this Section:
5576-"Certified taxpayer" means a person certified by the
5577-Department of Commerce and Economic Opportunity under Section
5578-605-1115 of the Department of Commerce and Economic
5579-Opportunity Law of the Civil Administrative Code of Illinois.
5580-"Qualified sale" means a sale of building materials that
5581-will be incorporated into real estate as part of a building
5582-project for which a Quantum Computing Campus Building
5583-Materials Exemption Certificate has been issued to the
5584-purchaser by the Department.
5585-(m) The Department shall have the authority to adopt rules
5586-as are reasonable and necessary to implement the provisions of
5587-
5588-
5589-this Section.
5590-(n) This Section is exempt from the provisions of Section
5591-2-70.
5592-(o) This exemption also applies to the Use Tax Act, the
5593-Service Use Tax Act, and the Service Occupation Tax Act and is
5594-incorporated by reference in Section 12 of each of those
5595-respective Acts.
5596-Section 53. The Gas Use Tax Law is amended by changing
5597-Section 5-10 as follows:
5598-(35 ILCS 173/5-10)
5599-Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a
5600-tax is imposed upon the privilege of using in this State gas
5601-obtained in a purchase of out-of-state gas at the rate of 2.4
5602-cents per therm or 5% of the purchase price for the billing
5603-period, whichever is the lower rate. Such tax rate shall be
5604-referred to as the "self-assessing purchaser tax rate".
5605-Beginning with bills issued by delivering suppliers on and
5606-after October 1, 2003, purchasers may elect an alternative tax
5607-rate of 2.4 cents per therm to be paid under the provisions of
5608-Section 5-15 of this Law to a delivering supplier maintaining
5609-a place of business in this State. Such tax rate shall be
5610-referred to as the "alternate tax rate". The tax imposed under
5611-this Section shall not apply to gas used by business
5612-enterprises certified under Section 9-222.1 of the Public
5613-
5614-
5615-Utilities Act or Section 605-1115 of the Department of
5616-Commerce and Economic Opportunity Law of the Civil
5617-Administrative Code of Illinois, as amended, to the extent of
5618-such exemption and during the period of time specified by the
5619-Department of Commerce and Economic Opportunity.
5620-(Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
5621-Section 55. The Property Tax Code is amended by changing
5622-Sections 18-184.15 and 18-184.20 as follows:
5623-(35 ILCS 200/18-184.15)
5624-Sec. 18-184.15. REV Illinois project facilities for
5625-electric vehicles, electric vehicle component parts, or
5626-electric vehicle power supply equipment; abatement.
5627-(a) Any taxing district, upon a majority vote of its
5628-governing body, may, after determination of the assessed value
5629-as set forth in this Code, order the clerk of the appropriate
5630-municipality or county to abate, for a period not to exceed 30
5631-consecutive years, any portion of real property taxes
5632-otherwise levied or extended by the taxing district on a REV
5633-Illinois Project facility owned by an electric vehicle
5634-manufacturer, electric vehicle component parts manufacturer,
5635-or an electric vehicle power supply manufacturer that is
5636-subject to an agreement with the Department of Commerce and
5637-Economic Opportunity under Section 45 of the Reimagining
5638-Energy and Vehicles in Illinois Act, during the period of time
5639-
5640-
5641-such agreement is in effect as specified by the Department of
5642-Commerce and Economic Opportunity.
5643-(b) Two or more taxing districts, upon a majority vote of
5644-each of their respective governing bodies, may agree to abate,
5645-for a period not to exceed 30 consecutive tax years, a portion
5646-of the real property taxes otherwise levied or extended by
5647-those taxing districts on a REV Illinois Project facility that
5648-is subject to an agreement with the Department of Commerce and
5649-Economic Opportunity under Section 45 of the Reimagining
5650-Energy and Vehicles in Illinois Act. The agreement entered
5651-into by the taxing districts under this subsection (b) shall
5652-be filed with the county clerk who shall, for the period the
5653-agreement remains in effect, abate the portion of the real
5654-estate taxes levied or extended by those taxing districts as
5655-directed in the agreement. Any such agreement entered into by
5656-2 or more taxing districts before the effective date of this
5657-amendatory Act of the 103rd General Assembly that is not
5658-inconsistent with the provisions of this subsection (b) is
5659-hereby declared valid and enforceable for the effective period
5660-of that agreement.
5661-(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
5662-(35 ILCS 200/18-184.20)
5663-Sec. 18-184.20. MICRO Illinois project facilities. Any
5664-taxing district, upon a majority vote of its governing body,
5665-may, after determination of the assessed value as set forth in
5666-
5667-
5668-this Code, order the clerk of the appropriate municipality or
5669-county to abate, for a period not to exceed 30 consecutive
5670-years, any portion of real property taxes otherwise levied or
5671-extended by the taxing district on a MICRO Illinois Project
5672-facility owned by a semiconductor manufacturer or microchip
5673-manufacturer or a semiconductor or microchip component parts
5674-manufacturer that is subject to an agreement with the
5675-Department of Commerce and Economic Opportunity under the
5676-Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
5677-during the period of time such agreement is in effect as
5678-specified by the Department of Commerce and Economic
5679-Opportunity.
5680-(Source: P.A. 102-700, eff. 4-19-22.)
5681-Section 60. The Telecommunications Excise Tax Act is
5682-amended by changing Section 2 as follows:
5683-(35 ILCS 630/2) (from Ch. 120, par. 2002)
5684-Sec. 2. As used in this Article, unless the context
5685-clearly requires otherwise:
5686-(a) "Gross charge" means the amount paid for the act or
5687-privilege of originating or receiving telecommunications in
5688-this State and for all services and equipment provided in
5689-connection therewith by a retailer, valued in money whether
5690-paid in money or otherwise, including cash, credits, services
5691-and property of every kind or nature, and shall be determined
5692-
5693-
5694-without any deduction on account of the cost of such
5695-telecommunications, the cost of materials used, labor or
5696-service costs or any other expense whatsoever. In case credit
5697-is extended, the amount thereof shall be included only as and
5698-when paid. "Gross charges" for private line service shall
5699-include charges imposed at each channel termination point
5700-within this State, charges for the channel mileage between
5701-each channel termination point within this State, and charges
5702-for that portion of the interstate inter-office channel
5703-provided within Illinois. Charges for that portion of the
5704-interstate inter-office channel provided in Illinois shall be
5705-determined by the retailer as follows: (i) for interstate
5706-inter-office channels having 2 channel termination points,
5707-only one of which is in Illinois, 50% of the total charge
5708-imposed; or (ii) for interstate inter-office channels having
5709-more than 2 channel termination points, one or more of which
5710-are in Illinois, an amount equal to the total charge
5711-multiplied by a fraction, the numerator of which is the number
5712-of channel termination points within Illinois and the
5713-denominator of which is the total number of channel
5714-termination points. Prior to January 1, 2004, any method
5715-consistent with this paragraph or other method that reasonably
5716-apportions the total charges for interstate inter-office
5717-channels among the states in which channel terminations points
5718-are located shall be accepted as a reasonable method to
5719-determine the charges for that portion of the interstate
5720-
5721-
5722-inter-office channel provided within Illinois for that period.
5723-However, "gross charges" shall not include any of the
5724-following:
5725-(1) Any amounts added to a purchaser's bill because of
5726-a charge made pursuant to (i) the tax imposed by this
5727-Article; (ii) charges added to customers' bills pursuant
5728-to the provisions of Sections 9-221 or 9-222 of the Public
5729-Utilities Act, as amended, or any similar charges added to
5730-customers' bills by retailers who are not subject to rate
5731-regulation by the Illinois Commerce Commission for the
5732-purpose of recovering any of the tax liabilities or other
5733-amounts specified in such provisions of such Act; (iii)
5734-the tax imposed by Section 4251 of the Internal Revenue
5735-Code; (iv) 911 surcharges; or (v) the tax imposed by the
5736-Simplified Municipal Telecommunications Tax Act.
5737-(2) Charges for a sent collect telecommunication
5738-received outside of the State.
5739-(3) Charges for leased time on equipment or charges
5740-for the storage of data or information for subsequent
5741-retrieval or the processing of data or information
5742-intended to change its form or content. Such equipment
5743-includes, but is not limited to, the use of calculators,
5744-computers, data processing equipment, tabulating equipment
5745-or accounting equipment and also includes the usage of
5746-computers under a time-sharing agreement.
5747-(4) Charges for customer equipment, including such
5748-
5749-
5750-equipment that is leased or rented by the customer from
5751-any source, wherein such charges are disaggregated and
5752-separately identified from other charges.
5753-(5) Charges to business enterprises certified under
5754-Section 9-222.1 of the Public Utilities Act, as amended,
5755-or under Section 95 of the Reimagining Energy and Vehicles
5756-in Illinois Act, to the extent of such exemption and
5757-during the period of time specified by the Department of
5758-Commerce and Economic Opportunity.
5759-(5.1) Charges to business enterprises certified under
5760-the Manufacturing Illinois Chips for Real Opportunity
5761-(MICRO) Act, to the extent of the exemption and during the
5762-period of time specified by the Department of Commerce and
5763-Economic Opportunity.
5764-(5.2) Charges to entities certified under Section
5765-605-1115 of the Department of Commerce and Economic
5766-Opportunity Law of the Civil Administrative Code of
5767-Illinois to the extent of the exemption and during the
5768-period of time specified by the Department of Commerce and
5769-Economic Opportunity.
5770-(6) Charges for telecommunications and all services
5771-and equipment provided in connection therewith between a
5772-parent corporation and its wholly owned subsidiaries or
5773-between wholly owned subsidiaries when the tax imposed
5774-under this Article has already been paid to a retailer and
5775-only to the extent that the charges between the parent
5776-
5777-
5778-corporation and wholly owned subsidiaries or between
5779-wholly owned subsidiaries represent expense allocation
5780-between the corporations and not the generation of profit
5781-for the corporation rendering such service.
5782-(7) Bad debts. Bad debt means any portion of a debt
5783-that is related to a sale at retail for which gross charges
5784-are not otherwise deductible or excludable that has become
5785-worthless or uncollectable, as determined under applicable
5786-federal income tax standards. If the portion of the debt
5787-deemed to be bad is subsequently paid, the retailer shall
5788-report and pay the tax on that portion during the
5789-reporting period in which the payment is made.
5790-(8) Charges paid by inserting coins in coin-operated
5791-telecommunication devices.
5792-(9) Amounts paid by telecommunications retailers under
5793-the Telecommunications Municipal Infrastructure
5794-Maintenance Fee Act.
5795-(10) Charges for nontaxable services or
5796-telecommunications if (i) those charges are aggregated
5797-with other charges for telecommunications that are
5798-taxable, (ii) those charges are not separately stated on
5799-the customer bill or invoice, and (iii) the retailer can
5800-reasonably identify the nontaxable charges on the
5801-retailer's books and records kept in the regular course of
5802-business. If the nontaxable charges cannot reasonably be
5803-identified, the gross charge from the sale of both taxable
5804-
5805-
5806-and nontaxable services or telecommunications billed on a
5807-combined basis shall be attributed to the taxable services
5808-or telecommunications. The burden of proving nontaxable
5809-charges shall be on the retailer of the
5810-telecommunications.
5811-(b) "Amount paid" means the amount charged to the
5812-taxpayer's service address in this State regardless of where
5813-such amount is billed or paid.
5814-(c) "Telecommunications", in addition to the meaning
5815-ordinarily and popularly ascribed to it, includes, without
5816-limitation, messages or information transmitted through use of
5817-local, toll and wide area telephone service; private line
5818-services; channel services; telegraph services;
5819-teletypewriter; computer exchange services; cellular mobile
5820-telecommunications service; specialized mobile radio;
5821-stationary two way radio; paging service; or any other form of
5822-mobile and portable one-way or two-way communications; or any
5823-other transmission of messages or information by electronic or
5824-similar means, between or among points by wire, cable,
5825-fiber-optics, laser, microwave, radio, satellite or similar
5826-facilities. As used in this Act, "private line" means a
5827-dedicated non-traffic sensitive service for a single customer,
5828-that entitles the customer to exclusive or priority use of a
5829-communications channel or group of channels, from one or more
5830-specified locations to one or more other specified locations.
5831-The definition of "telecommunications" shall not include value
5832-
5833-
5834-added services in which computer processing applications are
5835-used to act on the form, content, code and protocol of the
5836-information for purposes other than transmission.
5837-"Telecommunications" shall not include purchases of
5838-telecommunications by a telecommunications service provider
5839-for use as a component part of the service provided by him to
5840-the ultimate retail consumer who originates or terminates the
5841-taxable end-to-end communications. Carrier access charges,
5842-right of access charges, charges for use of inter-company
5843-facilities, and all telecommunications resold in the
5844-subsequent provision of, used as a component of, or integrated
5845-into end-to-end telecommunications service shall be
5846-non-taxable as sales for resale.
5847-(d) "Interstate telecommunications" means all
5848-telecommunications that either originate or terminate outside
5849-this State.
5850-(e) "Intrastate telecommunications" means all
5851-telecommunications that originate and terminate within this
5852-State.
5853-(f) "Department" means the Department of Revenue of the
5854-State of Illinois.
5855-(g) "Director" means the Director of Revenue for the
5856-Department of Revenue of the State of Illinois.
5857-(h) "Taxpayer" means a person who individually or through
5858-his agents, employees or permittees engages in the act or
5859-privilege of originating or receiving telecommunications in
5860-
5861-
5862-this State and who incurs a tax liability under this Article.
5863-(i) "Person" means any natural individual, firm, trust,
5864-estate, partnership, association, joint stock company, joint
5865-venture, corporation, limited liability company, or a
5866-receiver, trustee, guardian or other representative appointed
5867-by order of any court, the Federal and State governments,
5868-including State universities created by statute or any city,
5869-town, county or other political subdivision of this State.
5870-(j) "Purchase at retail" means the acquisition,
5871-consumption or use of telecommunication through a sale at
5872-retail.
5873-(k) "Sale at retail" means the transmitting, supplying or
5874-furnishing of telecommunications and all services and
5875-equipment provided in connection therewith for a consideration
5876-to persons other than the Federal and State governments, and
5877-State universities created by statute and other than between a
5878-parent corporation and its wholly owned subsidiaries or
5879-between wholly owned subsidiaries for their use or consumption
5880-and not for resale.
5881-(l) "Retailer" means and includes every person engaged in
5882-the business of making sales at retail as defined in this
5883-Article. The Department may, in its discretion, upon
5884-application, authorize the collection of the tax hereby
5885-imposed by any retailer not maintaining a place of business
5886-within this State, who, to the satisfaction of the Department,
5887-furnishes adequate security to insure collection and payment
5888-
5889-
5890-of the tax. Such retailer shall be issued, without charge, a
5891-permit to collect such tax. When so authorized, it shall be the
5892-duty of such retailer to collect the tax upon all of the gross
5893-charges for telecommunications in this State in the same
5894-manner and subject to the same requirements as a retailer
5895-maintaining a place of business within this State. The permit
5896-may be revoked by the Department at its discretion.
5897-(m) "Retailer maintaining a place of business in this
5898-State", or any like term, means and includes any retailer
5899-having or maintaining within this State, directly or by a
5900-subsidiary, an office, distribution facilities, transmission
5901-facilities, sales office, warehouse or other place of
5902-business, or any agent or other representative operating
5903-within this State under the authority of the retailer or its
5904-subsidiary, irrespective of whether such place of business or
5905-agent or other representative is located here permanently or
5906-temporarily, or whether such retailer or subsidiary is
5907-licensed to do business in this State.
5908-(n) "Service address" means the location of
5909-telecommunications equipment from which the telecommunications
5910-services are originated or at which telecommunications
5911-services are received by a taxpayer. In the event this may not
5912-be a defined location, as in the case of mobile phones, paging
5913-systems, maritime systems, service address means the
5914-customer's place of primary use as defined in the Mobile
5915-Telecommunications Sourcing Conformity Act. For air-to-ground
5916-
5917-
5918-systems and the like, service address shall mean the location
5919-of a taxpayer's primary use of the telecommunications
5920-equipment as defined by telephone number, authorization code,
5921-or location in Illinois where bills are sent.
5922-(o) "Prepaid telephone calling arrangements" mean the
5923-right to exclusively purchase telephone or telecommunications
5924-services that must be paid for in advance and enable the
5925-origination of one or more intrastate, interstate, or
5926-international telephone calls or other telecommunications
5927-using an access number, an authorization code, or both,
5928-whether manually or electronically dialed, for which payment
5929-to a retailer must be made in advance, provided that, unless
5930-recharged, no further service is provided once that prepaid
5931-amount of service has been consumed. Prepaid telephone calling
5932-arrangements include the recharge of a prepaid calling
5933-arrangement. For purposes of this subsection, "recharge" means
5934-the purchase of additional prepaid telephone or
5935-telecommunications services whether or not the purchaser
5936-acquires a different access number or authorization code.
5937-"Prepaid telephone calling arrangement" does not include an
5938-arrangement whereby a customer purchases a payment card and
5939-pursuant to which the service provider reflects the amount of
5940-such purchase as a credit on an invoice issued to that customer
5941-under an existing subscription plan.
5942-(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
5943-102-1125, eff. 2-3-23.)
5944-
5945-
5946-Section 65. The Telecommunications Infrastructure
5947-Maintenance Fee Act is amended by changing Section 10 as
5948-follows:
5949-(35 ILCS 635/10)
5950-Sec. 10. Definitions.
5951-(a) "Gross charges" means the amount paid to a
5952-telecommunications retailer for the act or privilege of
5953-originating or receiving telecommunications in this State and
5954-for all services rendered in connection therewith, valued in
5955-money whether paid in money or otherwise, including cash,
5956-credits, services, and property of every kind or nature, and
5957-shall be determined without any deduction on account of the
5958-cost of such telecommunications, the cost of the materials
5959-used, labor or service costs, or any other expense whatsoever.
5960-In case credit is extended, the amount thereof shall be
5961-included only as and when paid. "Gross charges" for private
5962-line service shall include charges imposed at each channel
5963-termination point within this State, charges for the channel
5964-mileage between each channel termination point within this
5965-State, and charges for that portion of the interstate
5966-inter-office channel provided within Illinois. Charges for
5967-that portion of the interstate inter-office channel provided
5968-in Illinois shall be determined by the retailer as follows:
5969-(i) for interstate inter-office channels having 2 channel
5970-
5971-
5972-termination points, only one of which is in Illinois, 50% of
5973-the total charge imposed; or (ii) for interstate inter-office
5974-channels having more than 2 channel termination points, one or
5975-more of which are in Illinois, an amount equal to the total
5976-charge multiplied by a fraction, the numerator of which is the
5977-number of channel termination points within Illinois and the
5978-denominator of which is the total number of channel
5979-termination points. Prior to January 1, 2004, any method
5980-consistent with this paragraph or other method that reasonably
5981-apportions the total charges for interstate inter-office
5982-channels among the states in which channel terminations points
5983-are located shall be accepted as a reasonable method to
5984-determine the charges for that portion of the interstate
5985-inter-office channel provided within Illinois for that period.
5986-However, "gross charges" shall not include any of the
5987-following:
5988-(1) Any amounts added to a purchaser's bill because of
5989-a charge made under: (i) the fee imposed by this Section,
5990-(ii) additional charges added to a purchaser's bill under
5991-Section 9-221 or 9-222 of the Public Utilities Act, (iii)
5992-the tax imposed by the Telecommunications Excise Tax Act,
5993-(iv) 911 surcharges, (v) the tax imposed by Section 4251
5994-of the Internal Revenue Code, or (vi) the tax imposed by
5995-the Simplified Municipal Telecommunications Tax Act.
5996-(2) Charges for a sent collect telecommunication
5997-received outside of this State.
5998-
5999-
6000-(3) Charges for leased time on equipment or charges
6001-for the storage of data or information or subsequent
6002-retrieval or the processing of data or information
6003-intended to change its form or content. Such equipment
6004-includes, but is not limited to, the use of calculators,
6005-computers, data processing equipment, tabulating
6006-equipment, or accounting equipment and also includes the
6007-usage of computers under a time-sharing agreement.
6008-(4) Charges for customer equipment, including such
6009-equipment that is leased or rented by the customer from
6010-any source, wherein such charges are disaggregated and
6011-separately identified from other charges.
6012-(5) Charges to business enterprises certified under
6013-Section 9-222.1 of the Public Utilities Act to the extent
6014-of such exemption and during the period of time specified
6015-by the Department of Commerce and Economic Opportunity.
6016-(5.1) Charges to business enterprises certified under
6017-Section 95 of the Reimagining Energy and Vehicles in
6018-Illinois Act, to the extent of the exemption and during
6019-the period of time specified by the Department of Commerce
6020-and Economic Opportunity.
6021-(5.2) Charges to business enterprises certified under
6022-Section 110-95 of the Manufacturing Illinois Chips for
6023-Real Opportunity (MICRO) Act, to the extent of the
6024-exemption and during the period of time specified by the
6025-Department of Commerce and Economic Opportunity.
6026-
6027-
6028-(5.3) Charges to entities certified under Section
6029-605-1115 of the Department of Commerce and Economic
6030-Opportunity Law of the Civil Administrative Code of
6031-Illinois to the extent of the exemption and during the
6032-period of time specified by the Department of Commerce and
6033-Economic Opportunity.
6034-(6) Charges for telecommunications and all services
6035-and equipment provided in connection therewith between a
6036-parent corporation and its wholly owned subsidiaries or
6037-between wholly owned subsidiaries, and only to the extent
6038-that the charges between the parent corporation and wholly
6039-owned subsidiaries or between wholly owned subsidiaries
6040-represent expense allocation between the corporations and
6041-not the generation of profit other than a regulatory
6042-required profit for the corporation rendering such
6043-services.
6044-(7) Bad debts ("bad debt" means any portion of a debt
6045-that is related to a sale at retail for which gross charges
6046-are not otherwise deductible or excludable that has become
6047-worthless or uncollectible, as determined under applicable
6048-federal income tax standards; if the portion of the debt
6049-deemed to be bad is subsequently paid, the retailer shall
6050-report and pay the tax on that portion during the
6051-reporting period in which the payment is made).
6052-(8) Charges paid by inserting coins in coin-operated
6053-telecommunication devices.
6054-
6055-
6056-(9) Charges for nontaxable services or
6057-telecommunications if (i) those charges are aggregated
6058-with other charges for telecommunications that are
6059-taxable, (ii) those charges are not separately stated on
6060-the customer bill or invoice, and (iii) the retailer can
6061-reasonably identify the nontaxable charges on the
6062-retailer's books and records kept in the regular course of
6063-business. If the nontaxable charges cannot reasonably be
6064-identified, the gross charge from the sale of both taxable
6065-and nontaxable services or telecommunications billed on a
6066-combined basis shall be attributed to the taxable services
6067-or telecommunications. The burden of proving nontaxable
6068-charges shall be on the retailer of the
6069-telecommunications.
6070-(a-5) "Department" means the Illinois Department of
6071-Revenue.
6072-(b) "Telecommunications" includes, but is not limited to,
6073-messages or information transmitted through use of local,
6074-toll, and wide area telephone service, channel services,
6075-telegraph services, teletypewriter service, computer exchange
6076-services, private line services, specialized mobile radio
6077-services, or any other transmission of messages or information
6078-by electronic or similar means, between or among points by
6079-wire, cable, fiber optics, laser, microwave, radio, satellite,
6080-or similar facilities. Unless the context clearly requires
6081-otherwise, "telecommunications" shall also include wireless
6082-
6083-
6084-telecommunications as hereinafter defined.
6085-"Telecommunications" shall not include value added services in
6086-which computer processing applications are used to act on the
6087-form, content, code, and protocol of the information for
6088-purposes other than transmission. "Telecommunications" shall
6089-not include purchase of telecommunications by a
6090-telecommunications service provider for use as a component
6091-part of the service provided by him or her to the ultimate
6092-retail consumer who originates or terminates the end-to-end
6093-communications. Retailer access charges, right of access
6094-charges, charges for use of intercompany facilities, and all
6095-telecommunications resold in the subsequent provision and used
6096-as a component of, or integrated into, end-to-end
6097-telecommunications service shall not be included in gross
6098-charges as sales for resale. "Telecommunications" shall not
6099-include the provision of cable services through a cable system
6100-as defined in the Cable Communications Act of 1984 (47 U.S.C.
6101-Sections 521 and following) as now or hereafter amended or
6102-through an open video system as defined in the Rules of the
6103-Federal Communications Commission (47 C.D.F. 76.1550 and
6104-following) as now or hereafter amended. Beginning January 1,
6105-2001, prepaid telephone calling arrangements shall not be
6106-considered "telecommunications" subject to the tax imposed
6107-under this Act. For purposes of this Section, "prepaid
6108-telephone calling arrangements" means that term as defined in
6109-Section 2-27 of the Retailers' Occupation Tax Act.
6110-
6111-
6112-(c) "Wireless telecommunications" includes cellular mobile
6113-telephone services, personal wireless services as defined in
6114-Section 704(C) of the Telecommunications Act of 1996 (Public
6115-Law No. 104-104) as now or hereafter amended, including all
6116-commercial mobile radio services, and paging services.
6117-(d) "Telecommunications retailer" or "retailer" or
6118-"carrier" means and includes every person engaged in the
6119-business of making sales of telecommunications at retail as
6120-defined in this Section. The Department may, in its
6121-discretion, upon applications, authorize the collection of the
6122-fee hereby imposed by any retailer not maintaining a place of
6123-business within this State, who, to the satisfaction of the
6124-Department, furnishes adequate security to insure collection
6125-and payment of the fee. When so authorized, it shall be the
6126-duty of such retailer to pay the fee upon all of the gross
6127-charges for telecommunications in the same manner and subject
6128-to the same requirements as a retailer maintaining a place of
6129-business within this State.
6130-(e) "Retailer maintaining a place of business in this
6131-State", or any like term, means and includes any retailer
6132-having or maintaining within this State, directly or by a
6133-subsidiary, an office, distribution facilities, transmission
6134-facilities, sales office, warehouse, or other place of
6135-business, or any agent or other representative operating
6136-within this State under the authority of the retailer or its
6137-subsidiary, irrespective of whether such place of business or
6138-
6139-
6140-agent or other representative is located here permanently or
6141-temporarily, or whether such retailer or subsidiary is
6142-licensed to do business in this State.
6143-(f) "Sale of telecommunications at retail" means the
6144-transmitting, supplying, or furnishing of telecommunications
6145-and all services rendered in connection therewith for a
6146-consideration, other than between a parent corporation and its
6147-wholly owned subsidiaries or between wholly owned
6148-subsidiaries, when the gross charge made by one such
6149-corporation to another such corporation is not greater than
6150-the gross charge paid to the retailer for their use or
6151-consumption and not for sale.
6152-(g) "Service address" means the location of
6153-telecommunications equipment from which telecommunications
6154-services are originated or at which telecommunications
6155-services are received. If this is not a defined location, as in
6156-the case of wireless telecommunications, paging systems,
6157-maritime systems, service address means the customer's place
6158-of primary use as defined in the Mobile Telecommunications
6159-Sourcing Conformity Act. For air-to-ground systems, and the
6160-like, "service address" shall mean the location of the
6161-customer's primary use of the telecommunications equipment as
6162-defined by the location in Illinois where bills are sent.
6163-(Source: P.A. 102-1125, eff. 2-3-23.)
6164-Section 70. The Simplified Municipal Telecommunications
6165-
6166-
6167-Tax Act is amended by changing Section 5-7 as follows:
6168-(35 ILCS 636/5-7)
6169-Sec. 5-7. Definitions. For purposes of the taxes
6170-authorized by this Act:
6171-"Amount paid" means the amount charged to the taxpayer's
6172-service address in such municipality regardless of where such
6173-amount is billed or paid.
6174-"Department" means the Illinois Department of Revenue.
6175-"Gross charge" means the amount paid for the act or
6176-privilege of originating or receiving telecommunications in
6177-such municipality and for all services and equipment provided
6178-in connection therewith by a retailer, valued in money whether
6179-paid in money or otherwise, including cash, credits, services
6180-and property of every kind or nature, and shall be determined
6181-without any deduction on account of the cost of such
6182-telecommunications, the cost of the materials used, labor or
6183-service costs or any other expense whatsoever. In case credit
6184-is extended, the amount thereof shall be included only as and
6185-when paid. "Gross charges" for private line service shall
6186-include charges imposed at each channel termination point
6187-within a municipality that has imposed a tax under this
6188-Section and charges for the portion of the inter-office
6189-channels provided within that municipality. Charges for that
6190-portion of the inter-office channel connecting 2 or more
6191-channel termination points, one or more of which is located
6192-
6193-
6194-within the jurisdictional boundary of such municipality, shall
6195-be determined by the retailer by multiplying an amount equal
6196-to the total charge for the inter-office channel by a
6197-fraction, the numerator of which is the number of channel
6198-termination points that are located within the jurisdictional
6199-boundary of the municipality and the denominator of which is
6200-the total number of channel termination points connected by
6201-the inter-office channel. Prior to January 1, 2004, any method
6202-consistent with this paragraph or other method that reasonably
6203-apportions the total charges for inter-office channels among
6204-the municipalities in which channel termination points are
6205-located shall be accepted as a reasonable method to determine
6206-the taxable portion of an inter-office channel provided within
6207-a municipality for that period. However, "gross charge" shall
6208-not include any of the following:
6209-(1) Any amounts added to a purchaser's bill because of
6210-a charge made pursuant to: (i) the tax imposed by this Act,
6211-(ii) the tax imposed by the Telecommunications Excise Tax
6212-Act, (iii) the tax imposed by Section 4251 of the Internal
6213-Revenue Code, (iv) 911 surcharges, or (v) charges added to
6214-customers' bills pursuant to the provisions of Section
6215-9-221 or 9-222 of the Public Utilities Act, as amended, or
6216-any similar charges added to customers' bills by retailers
6217-who are not subject to rate regulation by the Illinois
6218-Commerce Commission for the purpose of recovering any of
6219-the tax liabilities or other amounts specified in those
6220-
6221-
6222-provisions of the Public Utilities Act.
6223-(2) Charges for a sent collect telecommunication
6224-received outside of such municipality.
6225-(3) Charges for leased time on equipment or charges
6226-for the storage of data or information for subsequent
6227-retrieval or the processing of data or information
6228-intended to change its form or content. Such equipment
6229-includes, but is not limited to, the use of calculators,
6230-computers, data processing equipment, tabulating equipment
6231-or accounting equipment and also includes the usage of
6232-computers under a time-sharing agreement.
6233-(4) Charges for customer equipment, including such
6234-equipment that is leased or rented by the customer from
6235-any source, wherein such charges are disaggregated and
6236-separately identified from other charges.
6237-(5) Charges to business enterprises certified as
6238-exempt under Section 9-222.1 of the Public Utilities Act
6239-to the extent of such exemption and during the period of
6240-time specified by the Department of Commerce and Economic
6241-Opportunity.
6242-(5.1) Charges to business enterprises certified under
6243-Section 95 of the Reimagining Energy and Vehicles in
6244-Illinois Act, to the extent of the exemption and during
6245-the period of time specified by the Department of Commerce
6246-and Economic Opportunity.
6247-(5.2) Charges to business enterprises certified under
6248-
6249-
6250-Section 110-95 of the Manufacturing Illinois Chips for
6251-Real Opportunity (MICRO) Act, to the extent of the
6252-exemption and during the period of time specified by the
6253-Department of Commerce and Economic Opportunity.
6254-(5.3) Charges to entities certified under Section
6255-605-1115 of the Department of Commerce and Economic
6256-Opportunity Law of the Civil Administrative Code of
6257-Illinois to the extent of the exemption and during the
6258-period of time specified by the Department of Commerce and
6259-Economic Opportunity.
6260-(6) Charges for telecommunications and all services
6261-and equipment provided in connection therewith between a
6262-parent corporation and its wholly owned subsidiaries or
6263-between wholly owned subsidiaries when the tax imposed
6264-under this Act has already been paid to a retailer and only
6265-to the extent that the charges between the parent
6266-corporation and wholly owned subsidiaries or between
6267-wholly owned subsidiaries represent expense allocation
6268-between the corporations and not the generation of profit
6269-for the corporation rendering such service.
6270-(7) Bad debts ("bad debt" means any portion of a debt
6271-that is related to a sale at retail for which gross charges
6272-are not otherwise deductible or excludable that has become
6273-worthless or uncollectible, as determined under applicable
6274-federal income tax standards; if the portion of the debt
6275-deemed to be bad is subsequently paid, the retailer shall
6276-
6277-
6278-report and pay the tax on that portion during the
6279-reporting period in which the payment is made).
6280-(8) Charges paid by inserting coins in coin-operated
6281-telecommunication devices.
6282-(9) Amounts paid by telecommunications retailers under
6283-the Telecommunications Infrastructure Maintenance Fee Act.
6284-(10) Charges for nontaxable services or
6285-telecommunications if (i) those charges are aggregated
6286-with other charges for telecommunications that are
6287-taxable, (ii) those charges are not separately stated on
6288-the customer bill or invoice, and (iii) the retailer can
6289-reasonably identify the nontaxable charges on the
6290-retailer's books and records kept in the regular course of
6291-business. If the nontaxable charges cannot reasonably be
6292-identified, the gross charge from the sale of both taxable
6293-and nontaxable services or telecommunications billed on a
6294-combined basis shall be attributed to the taxable services
6295-or telecommunications. The burden of proving nontaxable
6296-charges shall be on the retailer of the
6297-telecommunications.
6298-"Interstate telecommunications" means all
6299-telecommunications that either originate or terminate outside
6300-this State.
6301-"Intrastate telecommunications" means all
6302-telecommunications that originate and terminate within this
6303-State.
6304-
6305-
6306-"Person" means any natural individual, firm, trust,
6307-estate, partnership, association, joint stock company, joint
6308-venture, corporation, limited liability company, or a
6309-receiver, trustee, guardian, or other representative appointed
6310-by order of any court, the Federal and State governments,
6311-including State universities created by statute, or any city,
6312-town, county, or other political subdivision of this State.
6313-"Purchase at retail" means the acquisition, consumption or
6314-use of telecommunications through a sale at retail.
6315-"Retailer" means and includes every person engaged in the
6316-business of making sales at retail as defined in this Section.
6317-The Department may, in its discretion, upon application,
6318-authorize the collection of the tax hereby imposed by any
6319-retailer not maintaining a place of business within this
6320-State, who, to the satisfaction of the Department, furnishes
6321-adequate security to insure collection and payment of the tax.
6322-Such retailer shall be issued, without charge, a permit to
6323-collect such tax. When so authorized, it shall be the duty of
6324-such retailer to collect the tax upon all of the gross charges
6325-for telecommunications in this State in the same manner and
6326-subject to the same requirements as a retailer maintaining a
6327-place of business within this State. The permit may be revoked
6328-by the Department at its discretion.
6329-"Retailer maintaining a place of business in this State",
6330-or any like term, means and includes any retailer having or
6331-maintaining within this State, directly or by a subsidiary, an
6332-
6333-
6334-office, distribution facilities, transmission facilities,
6335-sales office, warehouse or other place of business, or any
6336-agent or other representative operating within this State
6337-under the authority of the retailer or its subsidiary,
6338-irrespective of whether such place of business or agent or
6339-other representative is located here permanently or
6340-temporarily, or whether such retailer or subsidiary is
6341-licensed to do business in this State.
6342-"Sale at retail" means the transmitting, supplying or
6343-furnishing of telecommunications and all services and
6344-equipment provided in connection therewith for a
6345-consideration, to persons other than the Federal and State
6346-governments, and State universities created by statute and
6347-other than between a parent corporation and its wholly owned
6348-subsidiaries or between wholly owned subsidiaries for their
6349-use or consumption and not for resale.
6350-"Service address" means the location of telecommunications
6351-equipment from which telecommunications services are
6352-originated or at which telecommunications services are
6353-received by a taxpayer. In the event this may not be a defined
6354-location, as in the case of mobile phones, paging systems, and
6355-maritime systems, service address means the customer's place
6356-of primary use as defined in the Mobile Telecommunications
6357-Sourcing Conformity Act. For air-to-ground systems and the
6358-like, "service address" shall mean the location of a
6359-taxpayer's primary use of the telecommunications equipment as
6360-
6361-
6362-defined by telephone number, authorization code, or location
6363-in Illinois where bills are sent.
6364-"Taxpayer" means a person who individually or through his
6365-or her agents, employees, or permittees engages in the act or
6366-privilege of originating or receiving telecommunications in a
6367-municipality and who incurs a tax liability as authorized by
6368-this Act.
6369-"Telecommunications", in addition to the meaning
6370-ordinarily and popularly ascribed to it, includes, without
6371-limitation, messages or information transmitted through use of
6372-local, toll, and wide area telephone service, private line
6373-services, channel services, telegraph services,
6374-teletypewriter, computer exchange services, cellular mobile
6375-telecommunications service, specialized mobile radio,
6376-stationary two-way radio, paging service, or any other form of
6377-mobile and portable one-way or two-way communications, or any
6378-other transmission of messages or information by electronic or
6379-similar means, between or among points by wire, cable, fiber
6380-optics, laser, microwave, radio, satellite, or similar
6381-facilities. As used in this Act, "private line" means a
6382-dedicated non-traffic sensitive service for a single customer,
6383-that entitles the customer to exclusive or priority use of a
6384-communications channel or group of channels, from one or more
6385-specified locations to one or more other specified locations.
6386-The definition of "telecommunications" shall not include value
6387-added services in which computer processing applications are
6388-
6389-
6390-used to act on the form, content, code, and protocol of the
6391-information for purposes other than transmission.
6392-"Telecommunications" shall not include purchases of
6393-telecommunications by a telecommunications service provider
6394-for use as a component part of the service provided by such
6395-provider to the ultimate retail consumer who originates or
6396-terminates the taxable end-to-end communications. Carrier
6397-access charges, right of access charges, charges for use of
6398-inter-company facilities, and all telecommunications resold in
6399-the subsequent provision of, used as a component of, or
6400-integrated into, end-to-end telecommunications service shall
6401-be non-taxable as sales for resale. Prepaid telephone calling
6402-arrangements shall not be considered "telecommunications"
6403-subject to the tax imposed under this Act. For purposes of this
6404-Section, "prepaid telephone calling arrangements" means that
6405-term as defined in Section 2-27 of the Retailers' Occupation
6406-Tax Act.
6407-(Source: P.A. 102-1125, eff. 2-3-23.)
6408-Section 75. The Electricity Excise Tax Law is amended by
6409-changing Section 2-4 as follows:
6410-(35 ILCS 640/2-4)
6411-Sec. 2-4. Tax imposed.
6412-(a) Except as provided in subsection (b), a tax is imposed
6413-on the privilege of using in this State electricity purchased
6414-
6415-
6416-for use or consumption and not for resale, other than by
6417-municipal corporations owning and operating a local
6418-transportation system for public service, at the following
6419-rates per kilowatt-hour delivered to the purchaser:
6420-(i) For the first 2000 kilowatt-hours used or consumed
6421-in a month: 0.330 cents per kilowatt-hour;
6422-(ii) For the next 48,000 kilowatt-hours used or
6423-consumed in a month: 0.319 cents per kilowatt-hour;
6424-(iii) For the next 50,000 kilowatt-hours used or
6425-consumed in a month: 0.303 cents per kilowatt-hour;
6426-(iv) For the next 400,000 kilowatt-hours used or
6427-consumed in a month: 0.297 cents per kilowatt-hour;
6428-(v) For the next 500,000 kilowatt-hours used or
6429-consumed in a month: 0.286 cents per kilowatt-hour;
6430-(vi) For the next 2,000,000 kilowatt-hours used or
6431-consumed in a month: 0.270 cents per kilowatt-hour;
6432-(vii) For the next 2,000,000 kilowatt-hours used or
6433-consumed in a month: 0.254 cents per kilowatt-hour;
6434-(viii) For the next 5,000,000 kilowatt-hours used or
6435-consumed in a month: 0.233 cents per kilowatt-hour;
6436-(ix) For the next 10,000,000 kilowatt-hours used or
6437-consumed in a month: 0.207 cents per kilowatt-hour;
6438-(x) For all electricity in excess of 20,000,000
6439-kilowatt-hours used or consumed in a month: 0.202 cents
6440-per kilowatt-hour.
6441-Provided, that in lieu of the foregoing rates, the tax is
6442-
6443-
6444-imposed on a self-assessing purchaser at the rate of 5.1% of
6445-the self-assessing purchaser's purchase price for all
6446-electricity distributed, supplied, furnished, sold,
6447-transmitted and delivered to the self-assessing purchaser in a
6448-month.
6449-(b) A tax is imposed on the privilege of using in this
6450-State electricity purchased from a municipal system or
6451-electric cooperative, as defined in Article XVII of the Public
6452-Utilities Act, which has not made an election as permitted by
6453-either Section 17-200 or Section 17-300 of such Act, at the
6454-lesser of 0.32 cents per kilowatt hour of all electricity
6455-distributed, supplied, furnished, sold, transmitted, and
6456-delivered by such municipal system or electric cooperative to
6457-the purchaser or 5% of each such purchaser's purchase price
6458-for all electricity distributed, supplied, furnished, sold,
6459-transmitted, and delivered by such municipal system or
6460-electric cooperative to the purchaser, whichever is the lower
6461-rate as applied to each purchaser in each billing period.
6462-(c) The tax imposed by this Section 2-4 is not imposed with
6463-respect to any use of electricity by business enterprises
6464-certified under Section 9-222.1 or 9-222.1A of the Public
6465-Utilities Act, as amended, to the extent of such exemption and
6466-during the time specified by the Department of Commerce and
6467-Economic Opportunity; or with respect to any transaction in
6468-interstate commerce, or otherwise, to the extent to which such
6469-transaction may not, under the Constitution and statutes of
6470-
6471-
6472-the United States, be made the subject of taxation by this
6473-State.
6474-(d) The tax imposed by this Section 2-4 is not imposed with
6475-respect to any use of electricity at a REV Illinois Project
6476-site that has received a certification for tax exemption from
6477-the Department of Commerce and Economic Opportunity pursuant
6478-to Section 95 of the Reimagining Energy and Vehicles in
6479-Illinois Act, to the extent of such exemption, which shall be
6480-no more than 10 years.
6481-(e) The tax imposed by this Section 2-4 is not imposed with
6482-respect to any use of electricity at a project site that has
6483-received a certification for tax exemption from the Department
6484-of Commerce and Economic Opportunity pursuant to the
6485-Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
6486-to the extent of such exemption, which shall be no more than 10
6487-years.
6488-(f) The tax imposed by this Section 2-4 is not imposed with
6489-respect to any use of electricity at a quantum computing
6490-campus that has received a certification for tax exemption
6491-from the Department of Commerce and Economic Opportunity
6492-pursuant to Section 605-1115 of the Department of Commerce and
6493-Economic Opportunity Law of the Civil Administrative Code of
6494-Illinois to the extent of the exemption and during the period
6495-of time specified by the Department of Commerce and Economic
6496-Opportunity.
6497-(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
6498-
6499-
6500-102-1125, eff. 2-3-23.)
6501-Section 80. The River Edge Redevelopment Zone Act is
6502-amended by changing Sections 10-4, 10-5.3, 10-10.3, and
6503-10-10.4 as follows:
6504-(65 ILCS 115/10-4)
6505-Sec. 10-4. Qualifications for River Edge Redevelopment
6506-Zones. An area is qualified to become a zone if it:
6507-(1) is a contiguous area adjacent to or surrounding a
6508-river;
6509-(2) comprises a minimum of one half square mile and
6510-not more than 12 square miles, exclusive of lakes and
6511-waterways;
6512-(3) satisfies any additional criteria established by
6513-the Department consistent with the purposes of this Act;
6514-(4) is entirely within a single municipality; and
6515-(5) has at least 100 acres of environmentally
6516-challenged land within 1500 yards of the riverfront.
6517-Any River Edge Redevelopment Zone may have an overlapping
6518-geographic area with an Enterprise Zone. If a taxpayer is
6519-located in an area with an overlapping Enterprise Zone and
6520-River Edge Redevelopment Zone, the taxpayer must elect, in the
6521-form and manner required by the Department, from which program
6522-it would like to request benefits.
6523-(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
6524-
6525-
6526-(65 ILCS 115/10-5.3)
6527-Sec. 10-5.3. Certification of River Edge Redevelopment
6528-Zones.
6529-(a) Approval of designated River Edge Redevelopment Zones
6530-shall be made by the Department by certification of the
6531-designating ordinance. The Department shall promptly issue a
6532-certificate for each zone upon its approval. The certificate
6533-shall be signed by the Director of the Department, shall make
6534-specific reference to the designating ordinance, which shall
6535-be attached thereto, and shall be filed in the office of the
6536-Secretary of State. A certified copy of the River Edge
6537-Redevelopment Zone Certificate, or a duplicate original
6538-thereof, shall be recorded in the office of the recorder of
6539-deeds of the county in which the River Edge Redevelopment Zone
6540-lies.
6541-(b) A River Edge Redevelopment Zone shall be effective
6542-upon its certification. The Department shall transmit a copy
6543-of the certification to the Department of Revenue, and to the
6544-designating municipality. Upon certification of a River Edge
6545-Redevelopment Zone, the terms and provisions of the
6546-designating ordinance shall be in effect, and may not be
6547-amended or repealed except in accordance with Section 10-5.4.
6548-(c) A River Edge Redevelopment Zone shall be in effect for
6549-the period stated in the certificate, which shall in no event
6550-exceed 30 calendar years. Zones shall terminate at midnight of
6551-
6552-
6553-December 31 of the final calendar year of the certified term,
6554-except as provided in Section 10-5.4.
6555-(d) In calendar years 2006 and 2007, the Department may
6556-certify one pilot River Edge Redevelopment Zone in the City of
6557-East St. Louis, one pilot River Edge Redevelopment Zone in the
6558-City of Rockford, and one pilot River Edge Redevelopment Zone
6559-in the City of Aurora.
6560-In calendar year 2009, the Department may certify one
6561-pilot River Edge Redevelopment Zone in the City of Elgin.
6562-On or after the effective date of this amendatory Act of
6563-the 97th General Assembly, the Department may certify one
6564-additional pilot River Edge Redevelopment Zone in the City of
6565-Peoria.
6566-On or after the effective date of this amendatory Act of
6567-the 103rd General Assembly, the Department may certify 2
6568-additional pilot River Edge Redevelopment Zones, including one
6569-in the City of Joliet and one in the City of Kankakee.
6570-On or after the effective date of this amendatory Act of
6571-the 103rd General Assembly, the Department may certify 7
6572-additional pilot River Edge Redevelopment Zones, including one
6573-in the City of East Moline, one in the City of Moline, one in
6574-the City of Ottawa, one in the City of LaSalle, one in the City
6575-of Peru, one in the City of Rock Island, and one in the City of
6576-Quincy.
6577-After certifying the additional pilot River Edge
6578-Redevelopment Zones authorized by the above paragraphs, the
6579-
6580-
6581-Department may not certify any additional River Edge
6582-Redevelopment Zones, but it may amend and rescind
6583-certifications of existing River Edge Redevelopment Zones in
6584-accordance with Section 10-5.4, except that no River Edge
6585-Redevelopment Zone may be extended on or after the effective
6586-date of this amendatory Act of the 97th General Assembly. Each
6587-River Edge Redevelopment Zone in existence on the effective
6588-date of this amendatory Act of the 97th General Assembly shall
6589-continue until its scheduled termination under this Act,
6590-unless the Zone is decertified sooner. At the time of its term
6591-expiration each River Edge Redevelopment Zone will become an
6592-open enterprise zone, available for the previously designated
6593-area or a different area to compete for designation as an
6594-enterprise zone. No preference for designation as a Zone will
6595-be given to the previously designated area.
6596-(e) A municipality in which a River Edge Redevelopment
6597-Zone has been certified must submit to the Department, within
6598-60 days after the certification, a plan for encouraging the
6599-participation by minority persons, women, persons with
6600-disabilities, and veterans in the zone. The Department may
6601-assist the municipality in developing and implementing the
6602-plan. The terms "minority person", "woman", and "person with a
6603-disability" have the meanings set forth under Section 2 of the
6604-Business Enterprise for Minorities, Women, and Persons with
6605-Disabilities Act. "Veteran" means an Illinois resident who is
6606-a veteran as defined in subsection (h) of Section 1491 of Title
6607-
6608-
6609-10 of the United States Code.
6610-(Source: P.A. 103-9, eff. 6-7-23.)
6611-(65 ILCS 115/10-10.3)
6612-Sec. 10-10.3. River Edge Construction Jobs Credit.
6613-(a) Beginning on January 1, 2021, a business entity may
6614-receive a tax credit against the tax imposed under subsections
6615-(a) and (b) of Section 201 in an amount equal to 50% (or 75% if
6616-the project is located in an underserved area) of the amount of
6617-the incremental income tax attributable to River Edge
6618-construction jobs employees employed in the course of
6619-completing a River Edge construction jobs project. The credit
6620-allowed under this Section shall apply only to taxpayers that
6621-make a capital investment of at least $1,000,000 in a
6622-qualified rehabilitation plan.
6623-(b) A business entity seeking a credit under this Section
6624-must submit an application to the Department describing the
6625-nature and benefit of the River Edge construction jobs project
6626-to the qualified rehabilitation project and the River Edge
6627-Redevelopment Zone. The Department may adopt any necessary
6628-rules in order to administer the provisions of this Section.
6629-(c) Within 45 days after the receipt of an application,
6630-the Department shall give notice to the applicant as to
6631-whether the application has been approved or disapproved. If
6632-the Department disapproves the application, it shall specify
6633-the reasons for this decision and allow 60 days for the
6634-
6635-
6636-applicant to amend and resubmit its application. The
6637-Department shall provide assistance upon request to
6638-applicants. Resubmitted applications shall receive the
6639-Department's approval or disapproval within 30 days of
6640-resubmission. Those resubmitted applications satisfying
6641-initial Department objectives shall be approved unless
6642-reasonable circumstances warrant disapproval.
6643-(d) On an annual basis, the designated zone organization
6644-shall furnish a statement to the Department on the
6645-programmatic and financial status of any approved project and
6646-an audited financial statement of the project.
6647-(e) The Department shall certify to the Department of
6648-Revenue the identity of the taxpayers who are eligible for
6649-River Edge construction jobs credits and the amounts of River
6650-Edge construction jobs credits awarded in each taxable year.
6651-(f) (Blank). The Department, in collaboration with the
6652-Department of Labor, shall require certified payroll
6653-reporting, pursuant to Section 10-10.4 of this Act, be
6654-completed in order to verify the wages and any other necessary
6655-information which the Department may deem necessary to
6656-ascertain and certify the total number of River Edge
6657-construction jobs employees and determine the amount of a
6658-River Edge construction jobs credit.
6659-(g) The total aggregate amount of credits awarded under
6660-the Blue Collar Jobs Act (Article 20 of this amendatory Act of
6661-the 101st General Assembly) shall not exceed $20,000,000 in
6662-
6663-
6664-any State fiscal year.
6665-(Source: P.A. 101-9, eff. 6-5-19.)
6666-(65 ILCS 115/10-10.4)
6667-Sec. 10-10.4. Certified payroll. Any taxpayer seeking Any
6668-contractor and each subcontractor who is engaged in and is
6669-executing a River Edge construction job tax credits must jobs
6670-project for a taxpayer that is entitled to a credit pursuant to
6671-Section 10-10.3 of this Act shall:
6672-(1) annually, until construction is completed, submit
6673-a report that, at a minimum, describes the projected
6674-project scope, timeline, and anticipated budget; once the
6675-project has commenced, the annual report shall include
6676-actual data for the prior year as well as projections for
6677-each additional year through completion of the project;
6678-the Department shall issue detailed reporting guidelines
6679-prescribing the requirements of construction-related
6680-reports; and
6681-(2) provide the Department with evidence that a
6682-certified third-party executed an Agreed-Upon Procedure
6683-(AUP) verifying the construction expenses or accept the
6684-standard construction wage expense estimated by the
6685-Department; upon review of the final project scope,
6686-timeline, budget, and AUP, the Department shall issue a
6687-tax credit certificate reflecting a percentage of the
6688-total construction job wages paid throughout the
6689-
6690-
6691-completion of the project.
6692-(1) make and keep, for a period of 5 years from the
6693-date of the last payment made on or after June 5, 2019 (the
6694-effective date of Public Act 101-9) on a contract or
6695-subcontract for a River Edge Construction Jobs Project in
6696-a River Edge Redevelopment Zone records of all laborers
6697-and other workers employed by them on the project; the
6698-records shall include:
6699-(A) the worker's name;
6700-(B) the worker's address;
6701-(C) the worker's telephone number, if available;
6702-(D) the worker's social security number;
6703-(E) the worker's classification or
6704-classifications;
6705-(F) the worker's gross and net wages paid in each
6706-pay period;
6707-(G) the worker's number of hours worked each day;
6708-(H) the worker's starting and ending times of work
6709-each day;
6710-(I) the worker's hourly wage rate; and
6711-(J) the worker's hourly overtime wage rate; and
6712-(2) no later than the 15th day of each calendar month,
6713-provide a certified payroll for the immediately preceding
6714-month to the taxpayer in charge of the project; within 5
6715-business days after receiving the certified payroll, the
6716-taxpayer shall file the certified payroll with the
6717-
6718-
6719-Department of Labor and the Department of Commerce and
6720-Economic Opportunity; a certified payroll must be filed
6721-for only those calendar months during which construction
6722-on a River Edge Construction Jobs Project has occurred;
6723-the certified payroll shall consist of a complete copy of
6724-the records identified in paragraph (1), but may exclude
6725-the starting and ending times of work each day; the
6726-certified payroll shall be accompanied by a statement
6727-signed by the contractor or subcontractor or an officer,
6728-employee, or agent of the contractor or subcontractor
6729-which avers that:
6730-(A) he or she has examined the certified payroll
6731-records required to be submitted and such records are
6732-true and accurate; and
6733-(B) the contractor or subcontractor is aware that
6734-filing a certified payroll that he or she knows to be
6735-false is a Class A misdemeanor.
6736-A general contractor is not prohibited from relying on a
6737-certified payroll of a lower-tier subcontractor, provided the
6738-general contractor does not knowingly rely upon a
6739-subcontractor's false certification.
6740-Any contractor or subcontractor subject to this Section,
6741-and any officer, employee, or agent of such contractor or
6742-subcontractor whose duty as an officer, employee, or agent it
6743-is to file a certified payroll under this Section, who
6744-willfully fails to file such a certified payroll on or before
6745-
6746-
6747-the date such certified payroll is required to be filed and any
6748-person who willfully files a false certified payroll that is
6749-false as to any material fact is in violation of this Act and
6750-guilty of a Class A misdemeanor.
6751-The taxpayer in charge of the project shall keep the
6752-records submitted in accordance with this Section on or after
6753-June 5, 2019 (the effective date of Public Act 101-9) for a
6754-period of 5 years from the date of the last payment for work on
6755-a contract or subcontract for the project.
6756-The records submitted in accordance with this Section
6757-shall be considered public records, except an employee's
6758-address, telephone number, and social security number, and
6759-made available in accordance with the Freedom of Information
6760-Act. The Department of Labor shall accept any reasonable
6761-submissions by the contractor that meet the requirements of
6762-this Section and shall share the information with the
6763-Department in order to comply with the awarding of River Edge
6764-construction jobs credits. A contractor, subcontractor, or
6765-public body may retain records required under this Section in
6766-paper or electronic format.
6767-Upon 7 business days' notice, the taxpayer contractor and
6768-each subcontractor shall make available for inspection and
6769-copying at a location within this State during reasonable
6770-hours, the records identified in paragraph (1) of this Section
6771-to the taxpayer in charge of the project, its officers and
6772-agents, the Director of Labor and his or her deputies and
6773-
6774-
6775-agents, and to federal, State, or local law enforcement
6776-agencies and prosecutors.
6777-(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
6778-Section 82. The Private Business and Vocational Schools
6779-Act of 2012 is amended by changing Section 30 as follows:
6780-(105 ILCS 426/30)
6781-Sec. 30. Exemptions. For purposes of this Act, the
6782-following shall not be considered to be a private business and
6783-vocational school:
6784-(1) Any institution devoted entirely to the teaching
6785-of religion or theology.
6786-(2) Any in-service program of study and subject
6787-offered by an employer, provided that no tuition is
6788-charged and the instruction is offered only to employees
6789-of the employer.
6790-(3) Any educational institution that (A) enrolls a
6791-majority of its students in degree programs and has
6792-maintained an accredited status with a regional
6793-accrediting agency that is recognized by the U.S.
6794-Department of Education or (B) enrolls students in one or
6795-more bachelor-level programs, enrolls a majority of its
6796-students in degree programs, and is accredited by a
6797-national or regional accrediting agency that is recognized
6798-by the U.S. Department of Education or that (i) is
6799-
6800-
6801-regulated by the Board under the Private College Act or
6802-the Academic Degree Act or is exempt from such regulation
6803-under either the Private College Act or the Academic
6804-Degree Act solely for the reason that the educational
6805-institution was in operation on the effective date of
6806-either the Private College Act or the Academic Degree Act
6807-or (ii) is regulated by the State Board of Education.
6808-(4) Any institution and the franchisees of that
6809-institution that exclusively offer a program of study in
6810-income tax theory or return preparation at a total
6811-contract price of no more than $400, provided that the
6812-total annual enrollment of the institution for all such
6813-courses of instruction exceeds 500 students and further
6814-provided that the total contract price for all instruction
6815-offered to a student in any one calendar year does not
6816-exceed $3,000.
6817-(5) Any person or organization selling mediated
6818-instruction products through a media, such as tapes,
6819-compact discs, digital video discs, or similar media, so
6820-long as the instruction is not intended to result in the
6821-acquisition of training for a specific employment field,
6822-is not intended to meet a qualification for licensure or
6823-certification in an employment field, or is not intended
6824-to provide credit that can be applied toward a certificate
6825-or degree program.
6826-(6) Schools with no physical presence in this State.
6827-
6828-
6829-Schools offering instruction or programs of study, but
6830-that have no physical presence in this State, are not
6831-required to receive Board approval. Such an institution
6832-must not be considered not to have a physical presence in
6833-this State unless it has received a written finding from
6834-the Board that it has no physical presence. In determining
6835-whether an institution has no physical presence, the Board
6836-shall require all of the following:
6837-(A) Evidence of authorization to operate in at
6838-least one other state and that the school is in good
6839-standing with that state's authorizing agency.
6840-(B) Evidence that the school has a means of
6841-receiving and addressing student complaints in
6842-compliance with any federal or state requirements.
6843-(C) Evidence that the institution is providing no
6844-instruction in this State.
6845-(D) Evidence that the institution is not providing
6846-core academic support services, including, but not
6847-limited to, admissions, evaluation, assessment,
6848-registration, financial aid, academic scheduling, and
6849-faculty hiring and support in this State.
6850-(7) A school or program within a school that
6851-exclusively provides yoga instruction, yoga teacher
6852-training, or both.
6853-(8) Organizations that receive funding from the
6854-Department of Commerce and Economic Opportunity for
6855-
6856-
6857-workforce development preparation programs as provided for
6858-in the Energy Transition Act and the Illinois Works Jobs
6859-Program Act in which participants are not charged tuition.
6860-This paragraph does not include public institutions of
6861-higher education or private institutions of higher
6862-education, as defined in the Board of Higher Education
6863-Act, or community colleges, as defined in the Public
6864-Community College Act. For purposes of this paragraph, the
6865-Department of Commerce and Economic Opportunity shall
6866-provide the Board of Higher Education a complete list of
6867-all qualifying organizations under this paragraph on July
6868-1 of each year.
6869-(9) Labor organizations, as defined in Section 10 of
6870-the Collective Bargaining Freedom Act, that sponsor a
6871-United States Department of Labor registered
6872-apprenticeship program.
6873-(Source: P.A. 102-1046, eff. 6-7-22.)
6874-Section 85. The Public Utilities Act is amended by
6875-changing Section 9-222 as follows:
6876-(220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
6877-Sec. 9-222. Whenever a tax is imposed upon a public
6878-utility engaged in the business of distributing, supplying,
6879-furnishing, or selling gas for use or consumption pursuant to
6880-Section 2 of the Gas Revenue Tax Act, or whenever a tax is
6881-
6882-
6883-required to be collected by a delivering supplier pursuant to
6884-Section 2-7 of the Electricity Excise Tax Act, or whenever a
6885-tax is imposed upon a public utility pursuant to Section 2-202
6886-of this Act, such utility may charge its customers, other than
6887-customers who are high impact businesses under Section 5.5 of
6888-the Illinois Enterprise Zone Act, customers who are certified
6889-under Section 95 of the Reimagining Energy and Vehicles in
6890-Illinois Act, manufacturers under the Manufacturing Illinois
6891-Chips for Real Opportunity (MICRO) Act, customers who are
6892-tenants in a quantum computing campus under Section 605-1115
6893-of the Department of Commerce and Economic Opportunity Law of
6894-the Civil Administrative Code of Illinois, or certified
6895-business enterprises under Section 9-222.1 of this Act, to the
6896-extent of such exemption and during the period in which such
6897-exemption is in effect, in addition to any rate authorized by
6898-this Act, an additional charge equal to the total amount of
6899-such taxes. The exemption of this Section relating to high
6900-impact businesses shall be subject to the provisions of
6901-subsections (a), (b), and (b-5) of Section 5.5 of the Illinois
6902-Enterprise Zone Act. This requirement shall not apply to taxes
6903-on invested capital imposed pursuant to the Messages Tax Act,
6904-the Gas Revenue Tax Act and the Public Utilities Revenue Act.
6905-Such utility shall file with the Commission a supplemental
6906-schedule which shall specify such additional charge and which
6907-shall become effective upon filing without further notice.
6908-Such additional charge shall be shown separately on the
6909-
6910-
6911-utility bill to each customer. The Commission shall have the
6912-power to investigate whether or not such supplemental schedule
6913-correctly specifies such additional charge, but shall have no
6914-power to suspend such supplemental schedule. If the Commission
6915-finds, after a hearing, that such supplemental schedule does
6916-not correctly specify such additional charge, it shall by
6917-order require a refund to the appropriate customers of the
6918-excess, if any, with interest, in such manner as it shall deem
6919-just and reasonable, and in and by such order shall require the
6920-utility to file an amended supplemental schedule corresponding
6921-to the finding and order of the Commission. Except with
6922-respect to taxes imposed on invested capital, such tax
6923-liabilities shall be recovered from customers solely by means
6924-of the additional charges authorized by this Section.
6925-(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
6926-102-1125, eff. 2-3-23.)
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34+1 considered a part of regular hours.
35+2 "Quantum computing campus" or "campus" is a contiguous
36+3 area located in the State of Illinois that is designated by the
37+4 Department as a quantum computing campus in order to support
38+5 the demand for quantum computing research, development, and
39+6 implementation for practical use. A quantum computing campus
40+7 may include educational intuitions, nonprofit research and
41+8 development organizations, and for-profit organizations
42+9 serving as anchor tenants and joining tenants that, with
43+10 approval from the Department, may change. Tenants located at
44+11 the campus shall have direct and supporting roles in quantum
45+12 computing activities. Eligible tenants include quantum
46+13 computer operators and research facilities, data centers,
47+14 manufacturers and assemblers of quantum computers and
48+15 component parts, cryogenic or refrigeration facilities, and
49+16 other facilities determined, by industry and academic leaders,
50+17 to be fundamental to the research and development of quantum
51+18 computing for practical solutions. Quantum computing shall
52+19 include the research, development, and use of computing
53+20 methods that generate and manipulate quantum bits in a
54+21 controlled quantum state. This includes the use of photons,
55+22 semiconductors, superconductors, trapped ions, and other
56+23 industry and academically regarded methods for simulating
57+24 quantum bits. Additionally, a quantum campus shall meet the
58+25 following criteria:
59+26 (1) the campus must comprise a minimum of one-half
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70+1 square mile and not more than 4 square miles;
71+2 (2) the campus must contain tenants that demonstrate a
72+3 substantial plan for using the designation to encourage
73+4 participation by organizations owned by minorities, women,
74+5 and persons with disabilities, as those terms are defined
75+6 in the Business Enterprise for Minorities, Women, and
76+7 Persons with Disabilities Act, and the hiring of
77+8 minorities, women, and persons with disabilities;
78+9 (3) upon being placed in service, within 60 months
79+10 after designation or incorporation into a campus, the
80+11 owners of property located in a campus shall certify to
81+12 the Department that the property is carbon neutral or has
82+13 attained certification under one or more of the following
83+14 green building standards:
84+15 (A) BREEAM for New Construction or BREEAM, In-Use;
85+16 (B) ENERGY STAR;
86+17 (C) Envision;
87+18 (D) ISO 50001-energy management;
88+19 (E) LEED for Building Design and Construction, or
89+20 LEED for Operations and Maintenance;
90+21 (F) Green Globes for New Construction, or Green
91+22 Globes for Existing Buildings;
92+23 (G) UL 3223; or
93+24 (H) an equivalent program approved by the
94+25 Department.
95+26 (b) Tenants located in a designated quantum computing
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106+1 campus shall qualify for the following exemptions and credits:
107+2 (1) the Department may certify a taxpayer for an
108+3 exemption from any State or local use tax or retailers'
109+4 occupation tax on building materials that will be
110+5 incorporated into real estate at a quantum computing
111+6 campus;
112+7 (2) an exemption from the charges imposed under
113+8 Section 9-222 of the Public Utilities Act, Section 5-10 of
114+9 the Gas Use Tax Law, Section 2-4 of the Electricity Excise
115+10 Tax Law, Section 2 of the Telecommunications Excise Tax
116+11 Act, Section 10 of the Telecommunications Infrastructure
117+12 Maintenance Fee Act, and Section 5-7 of the Simplified
118+13 Municipal Telecommunications Tax Act; and
119+14 (3) a credit against the taxes imposed under
120+15 subsections (a) and (b) of Section 201 of the Illinois
121+16 Income Tax Act as provided in Section 241 of the Illinois
122+17 Income Tax Act.
123+18 (c) Certificates of exemption and credit certificates
124+19 under this Section shall be issued by the Department. Upon
125+20 certification by the Department under this Section, the
126+21 Department shall notify the Department of Revenue of the
127+22 certification. The exemption status shall take effect within 3
128+23 months after certification of the taxpayer and notice to the
129+24 Department of Revenue by the Department.
130+25 (d) Entities seeking to form a quantum computing campus
131+26 must apply to the Department in the manner specified by the
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142+1 Department. Entities seeking to join an established campus
143+2 must apply for an amendment to the existing campus. This
144+3 application for amendment must be submitted to the Department
145+4 with support from other campus members.
146+5 The Department shall determine the duration of
147+6 certificates of exemption awarded under this Act. The duration
148+7 of the certificates of exemption may not exceed 20 calendar
149+8 years and one renewal for an additional 20 years.
150+9 The Department and any tenant located in a quantum
151+10 computing campus seeking the benefits under this Section must
152+11 enter into a memorandum of understanding that, at a minimum,
153+12 provides:
154+13 (1) the details for determining the amount of capital
155+14 investment to be made;
156+15 (2) the number of new jobs created;
157+16 (3) the timeline for achieving the capital investment
158+17 and new job goals;
159+18 (4) the repayment obligation should those goals not be
160+19 achieved and any conditions under which repayment by the
161+20 tenant or tenants claiming the exemption shall be
162+21 required;
163+22 (5) the duration of the exemptions; and
164+23 (6) other provisions as deemed necessary by the
165+24 Department.
166+25 The Department shall, within 10 days after the
167+26 designation, send a letter of notification to each member of
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178+1 the General Assembly whose legislative district or
179+2 representative district contains all or part of the designated
180+3 area.
181+4 (e) Beginning on July 1, 2025, and each year thereafter,
182+5 the Department shall annually report to the Governor and the
183+6 General Assembly on the outcomes and effectiveness of this
184+7 amendatory Act of the 103rd General Assembly. The report shall
185+8 include the following:
186+9 (1) the names of each tenant located within the
187+10 quantum computing campus;
188+11 (2) the location of each quantum computing campus;
189+12 (3) the estimated value of the credits to be issued to
190+13 quantum computing campus tenants;
191+14 (4) the number of new jobs and, if applicable,
192+15 retained jobs pledged at each quantum computing campus;
193+16 and
194+17 (5) whether or not the quantum computing campus is
195+18 located in an underserved area, an energy transition zone,
196+19 or an opportunity zone.
197+20 (f) Tenants at the quantum computing campus seeking a
198+21 certificate of exemption related to the construction of
199+22 required facilities shall require the contractor and all
200+23 subcontractors to:
201+24 (1) comply with the requirements of Section 30-22 of
202+25 the Illinois Procurement Code as those requirements apply
203+26 to responsible bidders and to present satisfactory
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214+1 evidence of that compliance to the Department; and
215+2 (2) enter into a project labor agreement submitted to
216+3 the Department.
217+4 (g) The Department shall not issue any new certificates of
218+5 exemption under the provisions of this Section after July 1,
219+6 2030. This sunset shall not affect any existing certificates
220+7 of exemption in effect on July 1, 2030.
221+8 (h) The Department shall adopt rules to implement and
222+9 administer this Section.
223+10 Section 10. The Illinois Enterprise Zone Act is amended by
224+11 changing Sections 5.5 and 13 as follows:
225+12 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
226+13 Sec. 5.5. High Impact Business.
227+14 (a) In order to respond to unique opportunities to assist
228+15 in the encouragement, development, growth, and expansion of
229+16 the private sector through large scale investment and
230+17 development projects, the Department is authorized to receive
231+18 and approve applications for the designation of "High Impact
232+19 Businesses" in Illinois, for an initial term of 20 years with
233+20 an option for renewal for a term not to exceed 20 years,
234+21 subject to the following conditions:
235+22 (1) such applications may be submitted at any time
236+23 during the year;
237+24 (2) such business is not located, at the time of
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248+1 designation, in an enterprise zone designated pursuant to
249+2 this Act, except for grocery stores, as defined in the
250+3 Grocery Initiative Act;
251+4 (3) the business intends to do, commits to do, or is
252+5 one or more of the following:
253+6 (A) the business intends to make a minimum
254+7 investment of $12,000,000 which will be placed in
255+8 service in qualified property and intends to create
256+9 500 full-time equivalent jobs at a designated location
257+10 in Illinois or intends to make a minimum investment of
258+11 $30,000,000 which will be placed in service in
259+12 qualified property and intends to retain 1,500
260+13 full-time retained jobs at a designated location in
261+14 Illinois. The terms "placed in service" and "qualified
262+15 property" have the same meanings as described in
263+16 subsection (h) of Section 201 of the Illinois Income
264+17 Tax Act; or
265+18 (B) the business intends to establish a new
266+19 electric generating facility at a designated location
267+20 in Illinois. "New electric generating facility", for
268+21 purposes of this Section, means a newly constructed
269+22 electric generation plant or a newly constructed
270+23 generation capacity expansion at an existing electric
271+24 generation plant, including the transmission lines and
272+25 associated equipment that transfers electricity from
273+26 points of supply to points of delivery, and for which
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282+HB5005 Enrolled- 9 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 9 - LRB103 37016 SPS 67131 b
283+ HB5005 Enrolled - 9 - LRB103 37016 SPS 67131 b
284+1 such new foundation construction commenced not sooner
285+2 than July 1, 2001. Such facility shall be designed to
286+3 provide baseload electric generation and shall operate
287+4 on a continuous basis throughout the year; and (i)
288+5 shall have an aggregate rated generating capacity of
289+6 at least 1,000 megawatts for all new units at one site
290+7 if it uses natural gas as its primary fuel and
291+8 foundation construction of the facility is commenced
292+9 on or before December 31, 2004, or shall have an
293+10 aggregate rated generating capacity of at least 400
294+11 megawatts for all new units at one site if it uses coal
295+12 or gases derived from coal as its primary fuel and
296+13 shall support the creation of at least 150 new
297+14 Illinois coal mining jobs, or (ii) shall be funded
298+15 through a federal Department of Energy grant before
299+16 December 31, 2010 and shall support the creation of
300+17 Illinois coal mining coal-mining jobs, or (iii) shall
301+18 use coal gasification or integrated
302+19 gasification-combined cycle units that generate
303+20 electricity or chemicals, or both, and shall support
304+21 the creation of Illinois coal mining coal-mining jobs.
305+22 The term "placed in service" has the same meaning as
306+23 described in subsection (h) of Section 201 of the
307+24 Illinois Income Tax Act; or
308+25 (B-5) the business intends to establish a new
309+26 gasification facility at a designated location in
310+
311+
312+
313+
314+
315+ HB5005 Enrolled - 9 - LRB103 37016 SPS 67131 b
316+
317+
318+HB5005 Enrolled- 10 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 10 - LRB103 37016 SPS 67131 b
319+ HB5005 Enrolled - 10 - LRB103 37016 SPS 67131 b
320+1 Illinois. As used in this Section, "new gasification
321+2 facility" means a newly constructed coal gasification
322+3 facility that generates chemical feedstocks or
323+4 transportation fuels derived from coal (which may
324+5 include, but are not limited to, methane, methanol,
325+6 and nitrogen fertilizer), that supports the creation
326+7 or retention of Illinois coal mining coal-mining jobs,
327+8 and that qualifies for financial assistance from the
328+9 Department before December 31, 2010. A new
329+10 gasification facility does not include a pilot project
330+11 located within Jefferson County or within a county
331+12 adjacent to Jefferson County for synthetic natural gas
332+13 from coal; or
333+14 (C) the business intends to establish production
334+15 operations at a new coal mine, re-establish production
335+16 operations at a closed coal mine, or expand production
336+17 at an existing coal mine at a designated location in
337+18 Illinois not sooner than July 1, 2001; provided that
338+19 the production operations result in the creation of
339+20 150 new Illinois coal mining jobs as described in
340+21 subdivision (a)(3)(B) of this Section, and further
341+22 provided that the coal extracted from such mine is
342+23 utilized as the predominant source for a new electric
343+24 generating facility. The term "placed in service" has
344+25 the same meaning as described in subsection (h) of
345+26 Section 201 of the Illinois Income Tax Act; or
346+
347+
348+
349+
350+
351+ HB5005 Enrolled - 10 - LRB103 37016 SPS 67131 b
352+
353+
354+HB5005 Enrolled- 11 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 11 - LRB103 37016 SPS 67131 b
355+ HB5005 Enrolled - 11 - LRB103 37016 SPS 67131 b
356+1 (D) the business intends to construct new
357+2 transmission facilities or upgrade existing
358+3 transmission facilities at designated locations in
359+4 Illinois, for which construction commenced not sooner
360+5 than July 1, 2001. For the purposes of this Section,
361+6 "transmission facilities" means transmission lines
362+7 with a voltage rating of 115 kilovolts or above,
363+8 including associated equipment, that transfer
364+9 electricity from points of supply to points of
365+10 delivery and that transmit a majority of the
366+11 electricity generated by a new electric generating
367+12 facility designated as a High Impact Business in
368+13 accordance with this Section. The term "placed in
369+14 service" has the same meaning as described in
370+15 subsection (h) of Section 201 of the Illinois Income
371+16 Tax Act; or
372+17 (E) the business intends to establish a new wind
373+18 power facility at a designated location in Illinois.
374+19 For purposes of this Section, "new wind power
375+20 facility" means a newly constructed electric
376+21 generation facility, a newly constructed expansion of
377+22 an existing electric generation facility, or the
378+23 replacement of an existing electric generation
379+24 facility, including the demolition and removal of an
380+25 electric generation facility irrespective of whether
381+26 it will be replaced, placed in service or replaced on
382+
383+
384+
385+
386+
387+ HB5005 Enrolled - 11 - LRB103 37016 SPS 67131 b
388+
389+
390+HB5005 Enrolled- 12 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 12 - LRB103 37016 SPS 67131 b
391+ HB5005 Enrolled - 12 - LRB103 37016 SPS 67131 b
392+1 or after July 1, 2009, that generates electricity
393+2 using wind energy devices, and such facility shall be
394+3 deemed to include any permanent structures associated
395+4 with the electric generation facility and all
396+5 associated transmission lines, substations, and other
397+6 equipment related to the generation of electricity
398+7 from wind energy devices. For purposes of this
399+8 Section, "wind energy device" means any device, with a
400+9 nameplate capacity of at least 0.5 megawatts, that is
401+10 used in the process of converting kinetic energy from
402+11 the wind to generate electricity; or
403+12 (E-5) the business intends to establish a new
404+13 utility-scale solar facility at a designated location
405+14 in Illinois. For purposes of this Section, "new
406+15 utility-scale solar power facility" means a newly
407+16 constructed electric generation facility, or a newly
408+17 constructed expansion of an existing electric
409+18 generation facility, placed in service on or after
410+19 July 1, 2021, that (i) generates electricity using
411+20 photovoltaic cells and (ii) has a nameplate capacity
412+21 that is greater than 5,000 kilowatts, and such
413+22 facility shall be deemed to include all associated
414+23 transmission lines, substations, energy storage
415+24 facilities, and other equipment related to the
416+25 generation and storage of electricity from
417+26 photovoltaic cells; or
418+
419+
420+
421+
422+
423+ HB5005 Enrolled - 12 - LRB103 37016 SPS 67131 b
424+
425+
426+HB5005 Enrolled- 13 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 13 - LRB103 37016 SPS 67131 b
427+ HB5005 Enrolled - 13 - LRB103 37016 SPS 67131 b
428+1 (F) the business commits to (i) make a minimum
429+2 investment of $500,000,000, which will be placed in
430+3 service in a qualified property, (ii) create 125
431+4 full-time equivalent jobs at a designated location in
432+5 Illinois, (iii) establish a fertilizer plant at a
433+6 designated location in Illinois that complies with the
434+7 set-back standards as described in Table 1: Initial
435+8 Isolation and Protective Action Distances in the 2012
436+9 Emergency Response Guidebook published by the United
437+10 States Department of Transportation, (iv) pay a
438+11 prevailing wage for employees at that location who are
439+12 engaged in construction activities, and (v) secure an
440+13 appropriate level of general liability insurance to
441+14 protect against catastrophic failure of the fertilizer
442+15 plant or any of its constituent systems; in addition,
443+16 the business must agree to enter into a construction
444+17 project labor agreement including provisions
445+18 establishing wages, benefits, and other compensation
446+19 for employees performing work under the project labor
447+20 agreement at that location; for the purposes of this
448+21 Section, "fertilizer plant" means a newly constructed
449+22 or upgraded plant utilizing gas used in the production
450+23 of anhydrous ammonia and downstream nitrogen
451+24 fertilizer products for resale; for the purposes of
452+25 this Section, "prevailing wage" means the hourly cash
453+26 wages plus fringe benefits for training and
454+
455+
456+
457+
458+
459+ HB5005 Enrolled - 13 - LRB103 37016 SPS 67131 b
460+
461+
462+HB5005 Enrolled- 14 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 14 - LRB103 37016 SPS 67131 b
463+ HB5005 Enrolled - 14 - LRB103 37016 SPS 67131 b
464+1 apprenticeship programs approved by the U.S.
465+2 Department of Labor, Bureau of Apprenticeship and
466+3 Training, health and welfare, insurance, vacations and
467+4 pensions paid generally, in the locality in which the
468+5 work is being performed, to employees engaged in work
469+6 of a similar character on public works; this paragraph
470+7 (F) applies only to businesses that submit an
471+8 application to the Department within 60 days after
472+9 July 25, 2013 (the effective date of Public Act
473+10 98-109); or
474+11 (G) the business intends to establish a new
475+12 cultured cell material food production facility at a
476+13 designated location in Illinois. As used in this
477+14 paragraph (G):
478+15 "Cultured cell material food production facility"
479+16 means a facility (i) at which cultured animal cell
480+17 food is developed using animal cell culture
481+18 technology, (ii) at which production processes occur
482+19 that include the establishment of cell lines and cell
483+20 banks, manufacturing controls, and all components and
484+21 inputs, and (iii) that complies with all existing
485+22 registrations, inspections, licensing, and approvals
486+23 from all applicable and participating State and
487+24 federal food agencies, including the Department of
488+25 Agriculture, the Department of Public Health, and the
489+26 United States Food and Drug Administration, to ensure
490+
491+
492+
493+
494+
495+ HB5005 Enrolled - 14 - LRB103 37016 SPS 67131 b
496+
497+
498+HB5005 Enrolled- 15 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 15 - LRB103 37016 SPS 67131 b
499+ HB5005 Enrolled - 15 - LRB103 37016 SPS 67131 b
500+1 that all food production is safe and lawful under
501+2 provisions of the Federal Food, Drug and Cosmetic Act
502+3 related to the development, production, and storage of
503+4 cultured animal cell food.
504+5 "New cultured cell material food production
505+6 facility" means a newly constructed cultured cell
506+7 material food production facility that is placed in
507+8 service on or after June 7, 2023 (the effective date of
508+9 Public Act 103-9) this amendatory Act of the 103rd
509+10 General Assembly or a newly constructed expansion of
510+11 an existing cultured cell material food production
511+12 facility, in a controlled environment, when the
512+13 improvements are placed in service on or after June 7,
513+14 2023 (the effective date of Public Act 103-9) this
514+15 amendatory Act of the 103rd General Assembly; or and
515+16 (H) (G) the business is an existing or planned
516+17 grocery store, as that term is defined in Section 5 of
517+18 the Grocery Initiative Act, and receives financial
518+19 support under that Act within the 10 years before
519+20 submitting its application under this Act; and
520+21 (4) no later than 90 days after an application is
521+22 submitted, the Department shall notify the applicant of
522+23 the Department's determination of the qualification of the
523+24 proposed High Impact Business under this Section.
524+25 (b) Businesses designated as High Impact Businesses
525+26 pursuant to subdivision (a)(3)(A) of this Section shall
526+
527+
528+
529+
530+
531+ HB5005 Enrolled - 15 - LRB103 37016 SPS 67131 b
532+
533+
534+HB5005 Enrolled- 16 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 16 - LRB103 37016 SPS 67131 b
535+ HB5005 Enrolled - 16 - LRB103 37016 SPS 67131 b
536+1 qualify for the credits and exemptions described in the
537+2 following Acts: Section 9-222 and Section 9-222.1A of the
538+3 Public Utilities Act, subsection (h) of Section 201 of the
539+4 Illinois Income Tax Act, and Section 1d of the Retailers'
540+5 Occupation Tax Act; provided that these credits and exemptions
541+6 described in these Acts shall not be authorized until the
542+7 minimum investments set forth in subdivision (a)(3)(A) of this
543+8 Section have been placed in service in qualified properties
544+9 and, in the case of the exemptions described in the Public
545+10 Utilities Act and Section 1d of the Retailers' Occupation Tax
546+11 Act, the minimum full-time equivalent jobs or full-time
547+12 retained jobs set forth in subdivision (a)(3)(A) of this
548+13 Section have been created or retained. Businesses designated
549+14 as High Impact Businesses under this Section shall also
550+15 qualify for the exemption described in Section 5l of the
551+16 Retailers' Occupation Tax Act. The credit provided in
552+17 subsection (h) of Section 201 of the Illinois Income Tax Act
553+18 shall be applicable to investments in qualified property as
554+19 set forth in subdivision (a)(3)(A) of this Section.
555+20 (b-5) Businesses designated as High Impact Businesses
556+21 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
557+22 (a)(3)(D), and (a)(3)(G), and (a)(3)(H) of this Section shall
558+23 qualify for the credits and exemptions described in the
559+24 following Acts: Section 51 of the Retailers' Occupation Tax
560+25 Act, Section 9-222 and Section 9-222.1A of the Public
561+26 Utilities Act, and subsection (h) of Section 201 of the
562+
563+
564+
565+
566+
567+ HB5005 Enrolled - 16 - LRB103 37016 SPS 67131 b
568+
569+
570+HB5005 Enrolled- 17 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 17 - LRB103 37016 SPS 67131 b
571+ HB5005 Enrolled - 17 - LRB103 37016 SPS 67131 b
572+1 Illinois Income Tax Act; however, the credits and exemptions
573+2 authorized under Section 9-222 and Section 9-222.1A of the
574+3 Public Utilities Act, and subsection (h) of Section 201 of the
575+4 Illinois Income Tax Act shall not be authorized until the new
576+5 electric generating facility, the new gasification facility,
577+6 the new transmission facility, the new, expanded, or reopened
578+7 coal mine, or the new cultured cell material food production
579+8 facility, or the existing or planned grocery store is
580+9 operational, except that a new electric generating facility
581+10 whose primary fuel source is natural gas is eligible only for
582+11 the exemption under Section 5l of the Retailers' Occupation
583+12 Tax Act.
584+13 (b-6) Businesses designated as High Impact Businesses
585+14 pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
586+15 Section shall qualify for the exemptions described in Section
587+16 5l of the Retailers' Occupation Tax Act; any business so
588+17 designated as a High Impact Business being, for purposes of
589+18 this Section, a "Wind Energy Business".
590+19 (b-7) Beginning on January 1, 2021, businesses designated
591+20 as High Impact Businesses by the Department shall qualify for
592+21 the High Impact Business construction jobs credit under
593+22 subsection (h-5) of Section 201 of the Illinois Income Tax Act
594+23 if the business meets the criteria set forth in subsection (i)
595+24 of this Section. The total aggregate amount of credits awarded
596+25 under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
597+26 shall not exceed $20,000,000 in any State fiscal year.
598+
599+
600+
601+
602+
603+ HB5005 Enrolled - 17 - LRB103 37016 SPS 67131 b
604+
605+
606+HB5005 Enrolled- 18 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 18 - LRB103 37016 SPS 67131 b
607+ HB5005 Enrolled - 18 - LRB103 37016 SPS 67131 b
608+1 (c) High Impact Businesses located in federally designated
609+2 foreign trade zones or sub-zones are also eligible for
610+3 additional credits, exemptions and deductions as described in
611+4 the following Acts: Section 9-221 and Section 9-222.1 of the
612+5 Public Utilities Act; and subsection (g) of Section 201, and
613+6 Section 203 of the Illinois Income Tax Act.
614+7 (d) Except for businesses contemplated under subdivision
615+8 (a)(3)(E), (a)(3)(E-5), or (a)(3)(G), or (a)(3)(H) of this
616+9 Section, existing Illinois businesses which apply for
617+10 designation as a High Impact Business must provide the
618+11 Department with the prospective plan for which 1,500 full-time
619+12 retained jobs would be eliminated in the event that the
620+13 business is not designated.
621+14 (e) Except for new businesses contemplated under
622+15 subdivision (a)(3)(E), or subdivision (a)(3)(G), or
623+16 subdivision (a)(3)(H) of this Section, new proposed facilities
624+17 which apply for designation as High Impact Business must
625+18 provide the Department with proof of alternative non-Illinois
626+19 sites which would receive the proposed investment and job
627+20 creation in the event that the business is not designated as a
628+21 High Impact Business.
629+22 (f) Except for businesses contemplated under subdivision
630+23 (a)(3)(E), or subdivision (a)(3)(G), or subdivision (a)(3)(H)
631+24 of this Section, in the event that a business is designated a
632+25 High Impact Business and it is later determined after
633+26 reasonable notice and an opportunity for a hearing as provided
634+
635+
636+
637+
638+
639+ HB5005 Enrolled - 18 - LRB103 37016 SPS 67131 b
640+
641+
642+HB5005 Enrolled- 19 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 19 - LRB103 37016 SPS 67131 b
643+ HB5005 Enrolled - 19 - LRB103 37016 SPS 67131 b
644+1 under the Illinois Administrative Procedure Act, that the
645+2 business would have placed in service in qualified property
646+3 the investments and created or retained the requisite number
647+4 of jobs without the benefits of the High Impact Business
648+5 designation, the Department shall be required to immediately
649+6 revoke the designation and notify the Director of the
650+7 Department of Revenue who shall begin proceedings to recover
651+8 all wrongfully exempted State taxes with interest. The
652+9 business shall also be ineligible for all State funded
653+10 Department programs for a period of 10 years.
654+11 (g) The Department shall revoke a High Impact Business
655+12 designation if the participating business fails to comply with
656+13 the terms and conditions of the designation.
657+14 (h) Prior to designating a business, the Department shall
658+15 provide the members of the General Assembly and Commission on
659+16 Government Forecasting and Accountability with a report
660+17 setting forth the terms and conditions of the designation and
661+18 guarantees that have been received by the Department in
662+19 relation to the proposed business being designated.
663+20 (i) High Impact Business construction jobs credit.
664+21 Beginning on January 1, 2021, a High Impact Business may
665+22 receive a tax credit against the tax imposed under subsections
666+23 (a) and (b) of Section 201 of the Illinois Income Tax Act in an
667+24 amount equal to 50% of the amount of the incremental income tax
668+25 attributable to High Impact Business construction jobs credit
669+26 employees employed in the course of completing a High Impact
670+
671+
672+
673+
674+
675+ HB5005 Enrolled - 19 - LRB103 37016 SPS 67131 b
676+
677+
678+HB5005 Enrolled- 20 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 20 - LRB103 37016 SPS 67131 b
679+ HB5005 Enrolled - 20 - LRB103 37016 SPS 67131 b
680+1 Business construction jobs project. However, the High Impact
681+2 Business construction jobs credit may equal 75% of the amount
682+3 of the incremental income tax attributable to High Impact
683+4 Business construction jobs credit employees if the High Impact
684+5 Business construction jobs credit project is located in an
685+6 underserved area.
686+7 The Department shall certify to the Department of Revenue:
687+8 (1) the identity of taxpayers that are eligible for the High
688+9 Impact Business construction jobs credit; and (2) the amount
689+10 of High Impact Business construction jobs credits that are
690+11 claimed pursuant to subsection (h-5) of Section 201 of the
691+12 Illinois Income Tax Act in each taxable year. Any business
692+13 entity that receives a High Impact Business construction jobs
693+14 credit shall maintain a certified payroll pursuant to
694+15 subsection (j) of this Section.
695+16 As used in this subsection (i):
696+17 "High Impact Business construction jobs credit" means an
697+18 amount equal to 50% (or 75% if the High Impact Business
698+19 construction project is located in an underserved area) of the
699+20 incremental income tax attributable to High Impact Business
700+21 construction job employees. The total aggregate amount of
701+22 credits awarded under the Blue Collar Jobs Act (Article 20 of
702+23 Public Act 101-9) shall not exceed $20,000,000 in any State
703+24 fiscal year
704+25 "High Impact Business construction job employee" means a
705+26 laborer or worker who is employed by a an Illinois contractor
706+
707+
708+
709+
710+
711+ HB5005 Enrolled - 20 - LRB103 37016 SPS 67131 b
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714+HB5005 Enrolled- 21 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 21 - LRB103 37016 SPS 67131 b
715+ HB5005 Enrolled - 21 - LRB103 37016 SPS 67131 b
716+1 or subcontractor in the actual construction work on the site
717+2 of a High Impact Business construction job project.
718+3 "High Impact Business construction jobs project" means
719+4 building a structure or building or making improvements of any
720+5 kind to real property, undertaken and commissioned by a
721+6 business that was designated as a High Impact Business by the
722+7 Department. The term "High Impact Business construction jobs
723+8 project" does not include the routine operation, routine
724+9 repair, or routine maintenance of existing structures,
725+10 buildings, or real property.
726+11 "Incremental income tax" means the total amount withheld
727+12 during the taxable year from the compensation of High Impact
728+13 Business construction job employees.
729+14 "Underserved area" means a geographic area that meets one
730+15 or more of the following conditions:
731+16 (1) the area has a poverty rate of at least 20%
732+17 according to the latest American Community Survey;
733+18 (2) 35% or more of the families with children in the
734+19 area are living below 130% of the poverty line, according
735+20 to the latest American Community Survey;
736+21 (3) at least 20% of the households in the area receive
737+22 assistance under the Supplemental Nutrition Assistance
738+23 Program (SNAP); or
739+24 (4) the area has an average unemployment rate, as
740+25 determined by the Illinois Department of Employment
741+26 Security, that is more than 120% of the national
742+
743+
744+
745+
746+
747+ HB5005 Enrolled - 21 - LRB103 37016 SPS 67131 b
748+
749+
750+HB5005 Enrolled- 22 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 22 - LRB103 37016 SPS 67131 b
751+ HB5005 Enrolled - 22 - LRB103 37016 SPS 67131 b
752+1 unemployment average, as determined by the U.S. Department
753+2 of Labor, for a period of at least 2 consecutive calendar
754+3 years preceding the date of the application.
755+4 (j) (Blank). Each contractor and subcontractor who is
756+5 engaged in and executing a High Impact Business Construction
757+6 jobs project, as defined under subsection (i) of this Section,
758+7 for a business that is entitled to a credit pursuant to
759+8 subsection (i) of this Section shall:
760+9 (1) make and keep, for a period of 5 years from the
761+10 date of the last payment made on or after June 5, 2019 (the
762+11 effective date of Public Act 101-9) on a contract or
763+12 subcontract for a High Impact Business Construction Jobs
764+13 Project, records for all laborers and other workers
765+14 employed by the contractor or subcontractor on the
766+15 project; the records shall include:
767+16 (A) the worker's name;
768+17 (B) the worker's address;
769+18 (C) the worker's telephone number, if available;
770+19 (D) the worker's social security number;
771+20 (E) the worker's classification or
772+21 classifications;
773+22 (F) the worker's gross and net wages paid in each
774+23 pay period;
775+24 (G) the worker's number of hours worked each day;
776+25 (H) the worker's starting and ending times of work
777+26 each day;
778+
779+
780+
781+
782+
783+ HB5005 Enrolled - 22 - LRB103 37016 SPS 67131 b
784+
785+
786+HB5005 Enrolled- 23 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 23 - LRB103 37016 SPS 67131 b
787+ HB5005 Enrolled - 23 - LRB103 37016 SPS 67131 b
788+1 (I) the worker's hourly wage rate;
789+2 (J) the worker's hourly overtime wage rate;
790+3 (K) the worker's race and ethnicity; and
791+4 (L) the worker's gender;
792+5 (2) no later than the 15th day of each calendar month,
793+6 provide a certified payroll for the immediately preceding
794+7 month to the taxpayer in charge of the High Impact
795+8 Business construction jobs project; within 5 business days
796+9 after receiving the certified payroll, the taxpayer shall
797+10 file the certified payroll with the Department of Labor
798+11 and the Department of Commerce and Economic Opportunity; a
799+12 certified payroll must be filed for only those calendar
800+13 months during which construction on a High Impact Business
801+14 construction jobs project has occurred; the certified
802+15 payroll shall consist of a complete copy of the records
803+16 identified in paragraph (1) of this subsection (j), but
804+17 may exclude the starting and ending times of work each
805+18 day; the certified payroll shall be accompanied by a
806+19 statement signed by the contractor or subcontractor or an
807+20 officer, employee, or agent of the contractor or
808+21 subcontractor which avers that:
809+22 (A) he or she has examined the certified payroll
810+23 records required to be submitted by the Act and such
811+24 records are true and accurate; and
812+25 (B) the contractor or subcontractor is aware that
813+26 filing a certified payroll that he or she knows to be
814+
815+
816+
817+
818+
819+ HB5005 Enrolled - 23 - LRB103 37016 SPS 67131 b
820+
821+
822+HB5005 Enrolled- 24 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 24 - LRB103 37016 SPS 67131 b
823+ HB5005 Enrolled - 24 - LRB103 37016 SPS 67131 b
824+1 false is a Class A misdemeanor.
825+2 A general contractor is not prohibited from relying on a
826+3 certified payroll of a lower-tier subcontractor, provided the
827+4 general contractor does not knowingly rely upon a
828+5 subcontractor's false certification.
829+6 Any contractor or subcontractor subject to this
830+7 subsection, and any officer, employee, or agent of such
831+8 contractor or subcontractor whose duty as an officer,
832+9 employee, or agent it is to file a certified payroll under this
833+10 subsection, who willfully fails to file such a certified
834+11 payroll on or before the date such certified payroll is
835+12 required by this paragraph to be filed and any person who
836+13 willfully files a false certified payroll that is false as to
837+14 any material fact is in violation of this Act and guilty of a
838+15 Class A misdemeanor.
839+16 The taxpayer in charge of the project shall keep the
840+17 records submitted in accordance with this subsection on or
841+18 after June 5, 2019 (the effective date of Public Act 101-9) for
842+19 a period of 5 years from the date of the last payment for work
843+20 on a contract or subcontract for the High Impact Business
844+21 construction jobs project.
845+22 The records submitted in accordance with this subsection
846+23 shall be considered public records, except an employee's
847+24 address, telephone number, and social security number, and
848+25 made available in accordance with the Freedom of Information
849+26 Act. The Department of Labor shall share the information with
850+
851+
852+
853+
854+
855+ HB5005 Enrolled - 24 - LRB103 37016 SPS 67131 b
856+
857+
858+HB5005 Enrolled- 25 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 25 - LRB103 37016 SPS 67131 b
859+ HB5005 Enrolled - 25 - LRB103 37016 SPS 67131 b
860+1 the Department in order to comply with the awarding of a High
861+2 Impact Business construction jobs credit. A contractor,
862+3 subcontractor, or public body may retain records required
863+4 under this Section in paper or electronic format.
864+5 (j-5) Annually, until construction is completed, a company
865+6 seeking High Impact Business Construction Job credits shall
866+7 submit a report that, at a minimum, describes the projected
867+8 project scope, timeline, and anticipated budget. Once the
868+9 project has commenced, the annual report shall include actual
869+10 data for the prior year as well as projections for each
870+11 additional year through completion of the project. The
871+12 Department shall issue detailed reporting guidelines
872+13 prescribing the requirements of construction-related reports.
873+14 In order to receive credit for construction expenses, the
874+15 company must provide the Department with evidence that a
875+16 certified third-party executed an Agreed-Upon Procedure (AUP)
876+17 verifying the construction expenses or accept the standard
877+18 construction wage expense estimated by the Department.
878+19 Upon review of the final project scope, timeline, budget,
879+20 and AUP, the Department shall issue a tax credit certificate
880+21 reflecting a percentage of the total construction job wages
881+22 paid throughout the completion of the project.
882+23 (k) Upon 7 business days' notice, each taxpayer contractor
883+24 and subcontractor shall make available to each State agency
884+25 and to federal, State, or local law enforcement agencies and
885+26 prosecutors for inspection and copying at a location within
886+
887+
888+
889+
890+
891+ HB5005 Enrolled - 25 - LRB103 37016 SPS 67131 b
892+
893+
894+HB5005 Enrolled- 26 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 26 - LRB103 37016 SPS 67131 b
895+ HB5005 Enrolled - 26 - LRB103 37016 SPS 67131 b
896+1 this State during reasonable hours, the report under
897+2 subsection (j-5) records identified in this subsection (j) to
898+3 the taxpayer in charge of the High Impact Business
899+4 construction jobs project, its officers and agents, the
900+5 Director of the Department of Labor and his or her deputies and
901+6 agents, and to federal, State, or local law enforcement
902+7 agencies and prosecutors.
903+8 (l) The changes made to this Section by Public Act
904+9 102-1125 this amendatory Act of the 102nd General Assembly,
905+10 other than the changes in subsection (a), apply to High Impact
906+11 Businesses high impact businesses that submit applications on
907+12 or after February 3, 2023 (the effective date of Public Act
908+13 102-1125) this amendatory Act of the 102nd General Assembly.
909+14 (Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
910+15 102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
911+16 11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
912+17 eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.)
913+18 (20 ILCS 655/13)
914+19 Sec. 13. Enterprise Zone construction jobs credit.
915+20 (a) Beginning on January 1, 2021, a business entity in a
916+21 certified Enterprise Zone that makes a capital investment of
917+22 at least $10,000,000 in an Enterprise Zone construction jobs
918+23 project may receive an Enterprise Zone construction jobs
919+24 credit against the tax imposed under subsections (a) and (b)
920+25 of Section 201 of the Illinois Income Tax Act in an amount
921+
922+
923+
924+
925+
926+ HB5005 Enrolled - 26 - LRB103 37016 SPS 67131 b
927+
928+
929+HB5005 Enrolled- 27 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 27 - LRB103 37016 SPS 67131 b
930+ HB5005 Enrolled - 27 - LRB103 37016 SPS 67131 b
931+1 equal to 50% of the amount of the incremental income tax
932+2 attributable to Enterprise Zone construction jobs credit
933+3 employees employed in the course of completing an Enterprise
934+4 Zone construction jobs project. However, the Enterprise Zone
935+5 construction jobs credit may equal 75% of the amount of the
936+6 incremental income tax attributable to Enterprise Zone
937+7 construction jobs credit employees if the project is located
938+8 in an underserved area.
939+9 (b) A business entity seeking a credit under this Section
940+10 must submit an application to the Department and must receive
941+11 approval from the designating municipality or county and the
942+12 Department for the Enterprise Zone construction jobs credit
943+13 project. The application must describe the nature and benefit
944+14 of the project to the certified Enterprise Zone and its
945+15 potential contributors. The total aggregate amount of credits
946+16 awarded under the Blue Collar Jobs Act (Article 20 of Public
947+17 Act 101-9) shall not exceed $20,000,000 in any State fiscal
948+18 year.
949+19 Within 45 days after receipt of an application, the
950+20 Department shall give notice to the applicant as to whether
951+21 the application has been approved or disapproved. If the
952+22 Department disapproves the application, it shall specify the
953+23 reasons for this decision and allow 60 days for the applicant
954+24 to amend and resubmit its application. The Department shall
955+25 provide assistance upon request to applicants. Resubmitted
956+26 applications shall receive the Department's approval or
957+
958+
959+
960+
961+
962+ HB5005 Enrolled - 27 - LRB103 37016 SPS 67131 b
963+
964+
965+HB5005 Enrolled- 28 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 28 - LRB103 37016 SPS 67131 b
966+ HB5005 Enrolled - 28 - LRB103 37016 SPS 67131 b
967+1 disapproval within 30 days after the application is
968+2 resubmitted. Those resubmitted applications satisfying initial
969+3 Department objectives shall be approved unless reasonable
970+4 circumstances warrant disapproval.
971+5 On an annual basis, the designated zone organization shall
972+6 furnish a statement to the Department on the programmatic and
973+7 financial status of any approved project and an audited
974+8 financial statement of the project.
975+9 The Department shall certify to the Department of Revenue
976+10 the identity of taxpayers who are eligible for the credits and
977+11 the amount of credits that are claimed pursuant to
978+12 subparagraph (8) of subsection (f) of Section 201 the Illinois
979+13 Income Tax Act.
980+14 The Enterprise Zone construction jobs credit project must
981+15 be undertaken by the business entity in the course of
982+16 completing a project that complies with the criteria contained
983+17 in Section 4 of this Act and is undertaken in a certified
984+18 Enterprise Zone. The Department shall adopt any necessary
985+19 rules for the implementation of this subsection (b).
986+20 (c) (Blank). Any business entity that receives an
987+21 Enterprise Zone construction jobs credit shall maintain a
988+22 certified payroll pursuant to subsection (d) of this Section.
989+23 (d) Annually, until construction is completed, a company
990+24 seeking Enterprise Zone construction job credits shall submit
991+25 a report that, at a minimum, describes the projected project
992+26 scope, timeline, and anticipated budget. Once the project has
993+
994+
995+
996+
997+
998+ HB5005 Enrolled - 28 - LRB103 37016 SPS 67131 b
999+
1000+
1001+HB5005 Enrolled- 29 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 29 - LRB103 37016 SPS 67131 b
1002+ HB5005 Enrolled - 29 - LRB103 37016 SPS 67131 b
1003+1 commenced, the annual report shall include actual data for the
1004+2 prior year as well as projections for each additional year
1005+3 through completion of the project. The Department shall issue
1006+4 detailed reporting guidelines prescribing the requirements of
1007+5 construction-related reports.
1008+6 In order to receive credit for construction expenses, the
1009+7 company must provide the Department with evidence that a
1010+8 certified third-party executed an Agreed-Upon Procedure (AUP)
1011+9 verifying the construction expenses or accept the standard
1012+10 construction wage expense estimated by the Department.
1013+11 Upon review of the final project scope, timeline, budget,
1014+12 and AUP, the Department shall issue a tax credit certificate
1015+13 reflecting a percentage of the total construction job wages
1016+14 paid throughout the completion of the project.
1017+15 Each contractor and subcontractor who is engaged in and is
1018+16 executing an Enterprise Zone construction jobs credit project
1019+17 for a business that is entitled to a credit pursuant to this
1020+18 Section shall:
1021+19 (1) make and keep, for a period of 5 years from the
1022+20 date of the last payment made on or after June 5, 2019 (the
1023+21 effective date of Public Act 101-9) on a contract or
1024+22 subcontract for an Enterprise Zone construction jobs
1025+23 credit project, records for all laborers and other workers
1026+24 employed by them on the project; the records shall
1027+25 include:
1028+26 (A) the worker's name;
1029+
1030+
1031+
1032+
1033+
1034+ HB5005 Enrolled - 29 - LRB103 37016 SPS 67131 b
1035+
1036+
1037+HB5005 Enrolled- 30 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 30 - LRB103 37016 SPS 67131 b
1038+ HB5005 Enrolled - 30 - LRB103 37016 SPS 67131 b
1039+1 (B) the worker's address;
1040+2 (C) the worker's telephone number, if available;
1041+3 (D) the worker's social security number;
1042+4 (E) the worker's classification or
1043+5 classifications;
1044+6 (F) the worker's gross and net wages paid in each
1045+7 pay period;
1046+8 (G) the worker's number of hours worked each day;
1047+9 (H) the worker's starting and ending times of work
1048+10 each day;
1049+11 (I) the worker's hourly wage rate; and
1050+12 (J) the worker's hourly overtime wage rate;
1051+13 (2) no later than the 15th day of each calendar month,
1052+14 provide a certified payroll for the immediately preceding
1053+15 month to the taxpayer in charge of the project; within 5
1054+16 business days after receiving the certified payroll, the
1055+17 taxpayer shall file the certified payroll with the
1056+18 Department of Labor and the Department of Commerce and
1057+19 Economic Opportunity; a certified payroll must be filed
1058+20 for only those calendar months during which construction
1059+21 on an Enterprise Zone construction jobs project has
1060+22 occurred; the certified payroll shall consist of a
1061+23 complete copy of the records identified in paragraph (1)
1062+24 of this subsection (d), but may exclude the starting and
1063+25 ending times of work each day; the certified payroll shall
1064+26 be accompanied by a statement signed by the contractor or
1065+
1066+
1067+
1068+
1069+
1070+ HB5005 Enrolled - 30 - LRB103 37016 SPS 67131 b
1071+
1072+
1073+HB5005 Enrolled- 31 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 31 - LRB103 37016 SPS 67131 b
1074+ HB5005 Enrolled - 31 - LRB103 37016 SPS 67131 b
1075+1 subcontractor or an officer, employee, or agent of the
1076+2 contractor or subcontractor which avers that:
1077+3 (A) he or she has examined the certified payroll
1078+4 records required to be submitted by the Act and such
1079+5 records are true and accurate; and
1080+6 (B) the contractor or subcontractor is aware that
1081+7 filing a certified payroll that he or she knows to be
1082+8 false is a Class A misdemeanor.
1083+9 A general contractor is not prohibited from relying on a
1084+10 certified payroll of a lower-tier subcontractor, provided the
1085+11 general contractor does not knowingly rely upon a
1086+12 subcontractor's false certification.
1087+13 Any contractor or subcontractor subject to this
1088+14 subsection, and any officer, employee, or agent of such
1089+15 contractor or subcontractor whose duty as an officer,
1090+16 employee, or agent it is to file a certified payroll under this
1091+17 subsection, who willfully fails to file such a certified
1092+18 payroll on or before the date such certified payroll is
1093+19 required by this paragraph to be filed and any person who
1094+20 willfully files a false certified payroll that is false as to
1095+21 any material fact is in violation of this Act and guilty of a
1096+22 Class A misdemeanor.
1097+23 The taxpayer in charge of the project shall keep the
1098+24 records submitted in accordance with this subsection on or
1099+25 after June 5, 2019 (the effective date of Public Act 101-9) for
1100+26 a period of 5 years from the date of the last payment for work
1101+
1102+
1103+
1104+
1105+
1106+ HB5005 Enrolled - 31 - LRB103 37016 SPS 67131 b
1107+
1108+
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1110+ HB5005 Enrolled - 32 - LRB103 37016 SPS 67131 b
1111+1 on a contract or subcontract for the project.
1112+2 The records submitted in accordance with this subsection
1113+3 shall be considered public records, except an employee's
1114+4 address, telephone number, and social security number, and
1115+5 made available in accordance with the Freedom of Information
1116+6 Act. The Department of Labor shall accept any reasonable
1117+7 submissions by the contractor that meet the requirements of
1118+8 this subsection and shall share the information with the
1119+9 Department in order to comply with the awarding of Enterprise
1120+10 Zone construction jobs credits. A contractor, subcontractor,
1121+11 or public body may retain records required under this Section
1122+12 in paper or electronic format.
1123+13 Upon 7 business days' notice, the taxpayer contractor and
1124+14 each subcontractor shall make available to any State agency
1125+15 and to federal, State, or local law enforcement agencies and
1126+16 prosecutors for inspection and copying at a location within
1127+17 this State during reasonable hours, the report under this
1128+18 subsection (d) records identified in paragraph (1) of this
1129+19 subsection to the taxpayer in charge of the project, its
1130+20 officers and agents, the Director of Labor and his or her
1131+21 deputies and agents, and to federal, State, or local law
1132+22 enforcement agencies and prosecutors.
1133+23 (e) As used in this Section:
1134+24 "Enterprise Zone construction jobs credit" means an amount
1135+25 equal to 50% (or 75% if the project is located in an
1136+26 underserved area) of the incremental income tax attributable
1137+
1138+
1139+
1140+
1141+
1142+ HB5005 Enrolled - 32 - LRB103 37016 SPS 67131 b
1143+
1144+
1145+HB5005 Enrolled- 33 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 33 - LRB103 37016 SPS 67131 b
1146+ HB5005 Enrolled - 33 - LRB103 37016 SPS 67131 b
1147+1 to Enterprise Zone construction jobs credit employees.
1148+2 "Enterprise Zone construction jobs credit employee" means
1149+3 a laborer or worker who is employed by a an Illinois contractor
1150+4 or subcontractor in the actual construction work on the site
1151+5 of an Enterprise Zone construction jobs credit project.
1152+6 "Enterprise Zone construction jobs credit project" means
1153+7 building a structure or building or making improvements of any
1154+8 kind to real property commissioned and paid for by a business
1155+9 that has applied and been approved for an Enterprise Zone
1156+10 construction jobs credit pursuant to this Section. "Enterprise
1157+11 Zone construction jobs credit project" does not include the
1158+12 routine operation, routine repair, or routine maintenance of
1159+13 existing structures, buildings, or real property.
1160+14 "Incremental income tax" means the total amount withheld
1161+15 during the taxable year from the compensation of Enterprise
1162+16 Zone construction jobs credit employees.
1163+17 "Underserved area" means a geographic area that meets one
1164+18 or more of the following conditions:
1165+19 (1) the area has a poverty rate of at least 20%
1166+20 according to the latest American Community Survey;
1167+21 (2) 35% or more of the families with children in the
1168+22 area are living below 130% of the poverty line, according
1169+23 to the latest American Community Survey;
1170+24 (3) at least 20% of the households in the area receive
1171+25 assistance under the Supplemental Nutrition Assistance
1172+26 Program (SNAP); or
1173+
1174+
1175+
1176+
1177+
1178+ HB5005 Enrolled - 33 - LRB103 37016 SPS 67131 b
1179+
1180+
1181+HB5005 Enrolled- 34 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 34 - LRB103 37016 SPS 67131 b
1182+ HB5005 Enrolled - 34 - LRB103 37016 SPS 67131 b
1183+1 (4) the area has an average unemployment rate, as
1184+2 determined by the Illinois Department of Employment
1185+3 Security, that is more than 120% of the national
1186+4 unemployment average, as determined by the U.S. Department
1187+5 of Labor, for a period of at least 2 consecutive calendar
1188+6 years preceding the date of the application.
1189+7 (Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
1190+8 102-558, eff. 8-20-21.)
1191+9 Section 15. The Reimagining Energy and Vehicles in
1192+10 Illinois Act is amended by changing Sections 10, 20, 35, 45,
1193+11 65, 95, and 105 as follows:
1194+12 (20 ILCS 686/10)
1195+13 Sec. 10. Definitions. As used in this Act:
1196+14 "Advanced battery" means a battery that consists of a
1197+15 battery cell that can be integrated into a module, pack, or
1198+16 system to be used in energy storage applications, including a
1199+17 battery used in an electric vehicle or the electric grid.
1200+18 "Advanced battery component" means a component of an
1201+19 advanced battery, including materials, enhancements,
1202+20 enclosures, anodes, cathodes, electrolytes, cells, and other
1203+21 associated technologies that comprise an advanced battery.
1204+22 "Agreement" means the agreement between a taxpayer and the
1205+23 Department under the provisions of Section 45 of this Act.
1206+24 "Applicant" means a taxpayer that (i) operates a business
1207+
1208+
1209+
1210+
1211+
1212+ HB5005 Enrolled - 34 - LRB103 37016 SPS 67131 b
1213+
1214+
1215+HB5005 Enrolled- 35 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 35 - LRB103 37016 SPS 67131 b
1216+ HB5005 Enrolled - 35 - LRB103 37016 SPS 67131 b
1217+1 in Illinois or is planning to locate a business within the
1218+2 State of Illinois and (ii) is engaged in interstate or
1219+3 intrastate commerce as an electric vehicle manufacturer, an
1220+4 electric vehicle component parts manufacturer, or an electric
1221+5 vehicle power supply equipment manufacturer. For applications
1222+6 for credits under this Act that are submitted on or after the
1223+7 effective date of this amendatory Act of the 102nd General
1224+8 Assembly, "applicant" also includes a taxpayer that (i)
1225+9 operates a business in Illinois or is planning to locate a
1226+10 business within the State of Illinois and (ii) is engaged in
1227+11 interstate or intrastate commerce as a renewable energy
1228+12 manufacturer. "Applicant" does not include a taxpayer who
1229+13 closes or substantially reduces by more than 50% operations at
1230+14 one location in the State and relocates substantially the same
1231+15 operation to another location in the State. This does not
1232+16 prohibit a Taxpayer from expanding its operations at another
1233+17 location in the State. This also does not prohibit a Taxpayer
1234+18 from moving its operations from one location in the State to
1235+19 another location in the State for the purpose of expanding the
1236+20 operation, provided that the Department determines that
1237+21 expansion cannot reasonably be accommodated within the
1238+22 municipality or county in which the business is located, or,
1239+23 in the case of a business located in an incorporated area of
1240+24 the county, within the county in which the business is
1241+25 located, after conferring with the chief elected official of
1242+26 the municipality or county and taking into consideration any
1243+
1244+
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1252+ HB5005 Enrolled - 36 - LRB103 37016 SPS 67131 b
1253+1 evidence offered by the municipality or county regarding the
1254+2 ability to accommodate expansion within the municipality or
1255+3 county.
1256+4 "Battery raw materials" means the raw and processed form
1257+5 of a mineral, metal, chemical, or other material used in an
1258+6 advanced battery component.
1259+7 "Battery raw materials refining service provider" means a
1260+8 business that operates a facility that filters, sifts, and
1261+9 treats battery raw materials for use in an advanced battery.
1262+10 "Battery recycling and reuse manufacturer" means a
1263+11 manufacturer that is primarily engaged in the recovery,
1264+12 retrieval, processing, recycling, or recirculating of battery
1265+13 raw materials for new use in electric vehicle batteries.
1266+14 "Capital improvements" means the purchase, renovation,
1267+15 rehabilitation, or construction of permanent tangible land,
1268+16 buildings, structures, equipment, and furnishings in an
1269+17 approved project sited in Illinois and expenditures for goods
1270+18 or services that are normally capitalized, including
1271+19 organizational costs and research and development costs
1272+20 incurred in Illinois. For land, buildings, structures, and
1273+21 equipment that are leased, the lease must equal or exceed the
1274+22 term of the agreement, and the cost of the property shall be
1275+23 determined from the present value, using the corporate
1276+24 interest rate prevailing at the time of the application, of
1277+25 the lease payments.
1278+26 "Credit" means either a "REV Illinois Credit" or a "REV
1279+
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1288+ HB5005 Enrolled - 37 - LRB103 37016 SPS 67131 b
1289+1 Construction Jobs Credit" agreed to between the Department and
1290+2 applicant under this Act.
1291+3 "Department" means the Department of Commerce and Economic
1292+4 Opportunity.
1293+5 "Director" means the Director of Commerce and Economic
1294+6 Opportunity.
1295+7 "Electric vehicle" means a vehicle that is exclusively
1296+8 powered by and refueled by electricity, including electricity
1297+9 generated through a hydrogen fuel cells or solar technology.
1298+10 "Electric vehicle", except when referencing aircraft with
1299+11 hybrid electric propulsion systems, does not include hybrid
1300+12 electric vehicles, electric bicycles, or extended-range
1301+13 electric vehicles that are also equipped with conventional
1302+14 fueled propulsion or auxiliary engines.
1303+15 "Electric vehicle manufacturer" means a new or existing
1304+16 manufacturer that is primarily focused on reequipping,
1305+17 expanding, or establishing a manufacturing facility in
1306+18 Illinois that produces electric vehicles as defined in this
1307+19 Section.
1308+20 "Electric vehicle component parts manufacturer" means a
1309+21 new or existing manufacturer that is focused on reequipping,
1310+22 expanding, or establishing a manufacturing facility in
1311+23 Illinois that produces parts or accessories used in electric
1312+24 vehicles, as defined by this Section, including advanced
1313+25 battery component parts. The changes to this definition of
1314+26 "electric vehicle component parts manufacturer" apply to
1315+
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1325+1 agreements under this Act that are entered into on or after the
1326+2 effective date of this amendatory Act of the 102nd General
1327+3 Assembly.
1328+4 "Electric vehicle power supply equipment" means the
1329+5 equipment used specifically for the purpose of delivering
1330+6 electricity to an electric vehicle, including hydrogen fuel
1331+7 cells or solar refueling infrastructure.
1332+8 "Electric vehicle power supply manufacturer" means a new
1333+9 or existing manufacturer that is focused on reequipping,
1334+10 expanding, or establishing a manufacturing facility in
1335+11 Illinois that produces electric vehicle power supply equipment
1336+12 used for the purpose of delivering electricity to an electric
1337+13 vehicle, including hydrogen fuel cell or solar refueling
1338+14 infrastructure.
1339+15 "Electric vehicle powertrain technology" means equipment
1340+16 used to convert electricity for use in aerospace propulsion.
1341+17 "Electric vehicle powertrain technology manufacturer"
1342+18 means a new or existing manufacturer that is focused on
1343+19 reequipping, expanding, or establishing a manufacturing
1344+20 facility in Illinois that develops and validates electric
1345+21 vehicle powertrain technology for use in aerospace propulsion.
1346+22 "Electric vertical takeoff and landing aircraft" or "eVTOL
1347+23 aircraft" means a fully electric aircraft that lands and takes
1348+24 off vertically.
1349+25 "Energy Transition Area" means a county with less than
1350+26 100,000 people or a municipality that contains one or more of
1351+
1352+
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1361+1 the following:
1362+2 (1) a fossil fuel plant that was retired from service
1363+3 or has significant reduced service within 6 years before
1364+4 the time of the application or will be retired or have
1365+5 service significantly reduced within 6 years following the
1366+6 time of the application; or
1367+7 (2) a coal mine that was closed or had operations
1368+8 significantly reduced within 6 years before the time of
1369+9 the application or is anticipated to be closed or have
1370+10 operations significantly reduced within 6 years following
1371+11 the time of the application.
1372+12 "Full-time employee" means an individual who is employed
1373+13 for consideration for at least 35 hours each week or who
1374+14 renders any other standard of service generally accepted by
1375+15 industry custom or practice as full-time employment. An
1376+16 individual for whom a W-2 is issued by a Professional Employer
1377+17 Organization (PEO) is a full-time employee if employed in the
1378+18 service of the applicant for consideration for at least 35
1379+19 hours each week.
1380+20 "Green steel manufacturer" means an entity that
1381+21 manufactures steel without the use of fossil fuels and with
1382+22 zero net carbon emissions.
1383+23 "Incremental income tax" means the total amount withheld
1384+24 during the taxable year from the compensation of new employees
1385+25 and, if applicable, retained employees under Article 7 of the
1386+26 Illinois Income Tax Act arising from employment at a project
1387+
1388+
1389+
1390+
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1397+1 that is the subject of an agreement.
1398+2 "Institution of higher education" or "institution" means
1399+3 any accredited public or private university, college,
1400+4 community college, business, technical, or vocational school,
1401+5 or other accredited educational institution offering degrees
1402+6 and instruction beyond the secondary school level.
1403+7 "Minority person" means a minority person as defined in
1404+8 the Business Enterprise for Minorities, Women, and Persons
1405+9 with Disabilities Act.
1406+10 "New employee" means a newly-hired full-time employee
1407+11 employed to work at the project site and whose work is directly
1408+12 related to the project.
1409+13 "Noncompliance date" means, in the case of a taxpayer that
1410+14 is not complying with the requirements of the agreement or the
1411+15 provisions of this Act, the day following the last date upon
1412+16 which the taxpayer was in compliance with the requirements of
1413+17 the agreement and the provisions of this Act, as determined by
1414+18 the Director, pursuant to Section 70.
1415+19 "Pass-through entity" means an entity that is exempt from
1416+20 the tax under subsection (b) or (c) of Section 205 of the
1417+21 Illinois Income Tax Act.
1418+22 "Placed in service" means the state or condition of
1419+23 readiness, availability for a specifically assigned function,
1420+24 and the facility is constructed and ready to conduct its
1421+25 facility operations to manufacture goods.
1422+26 "Professional employer organization" (PEO) means an
1423+
1424+
1425+
1426+
1427+
1428+ HB5005 Enrolled - 40 - LRB103 37016 SPS 67131 b
1429+
1430+
1431+HB5005 Enrolled- 41 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 41 - LRB103 37016 SPS 67131 b
1432+ HB5005 Enrolled - 41 - LRB103 37016 SPS 67131 b
1433+1 employee leasing company, as defined in Section 206.1 of the
1434+2 Illinois Unemployment Insurance Act.
1435+3 "Program" means the Reimagining Energy and Vehicles in
1436+4 Illinois Program (the REV Illinois Program) established in
1437+5 this Act.
1438+6 "Project" or "REV Illinois Project" means a for-profit
1439+7 economic development activity for the manufacture of electric
1440+8 vehicles, electric vehicle component parts, electric vehicle
1441+9 power supply equipment, or renewable energy products, which is
1442+10 designated by the Department as a REV Illinois Project and is
1443+11 the subject of an agreement.
1444+12 "Recycling facility" means a location at which the
1445+13 taxpayer disposes of batteries and other component parts in
1446+14 manufacturing of electric vehicles, electric vehicle component
1447+15 parts, or electric vehicle power supply equipment.
1448+16 "Related member" means a person that, with respect to the
1449+17 taxpayer during any portion of the taxable year, is any one of
1450+18 the following:
1451+19 (1) An individual stockholder, if the stockholder and
1452+20 the members of the stockholder's family (as defined in
1453+21 Section 318 of the Internal Revenue Code) own directly,
1454+22 indirectly, beneficially, or constructively, in the
1455+23 aggregate, at least 50% of the value of the taxpayer's
1456+24 outstanding stock.
1457+25 (2) A partnership, estate, trust and any partner or
1458+26 beneficiary, if the partnership, estate, or trust, and its
1459+
1460+
1461+
1462+
1463+
1464+ HB5005 Enrolled - 41 - LRB103 37016 SPS 67131 b
1465+
1466+
1467+HB5005 Enrolled- 42 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 42 - LRB103 37016 SPS 67131 b
1468+ HB5005 Enrolled - 42 - LRB103 37016 SPS 67131 b
1469+1 partners or beneficiaries own directly, indirectly,
1470+2 beneficially, or constructively, in the aggregate, at
1471+3 least 50% of the profits, capital, stock, or value of the
1472+4 taxpayer.
1473+5 (3) A corporation, and any party related to the
1474+6 corporation in a manner that would require an attribution
1475+7 of stock from the corporation under the attribution rules
1476+8 of Section 318 of the Internal Revenue Code, if the
1477+9 Taxpayer owns directly, indirectly, beneficially, or
1478+10 constructively at least 50% of the value of the
1479+11 corporation's outstanding stock.
1480+12 (4) A corporation and any party related to that
1481+13 corporation in a manner that would require an attribution
1482+14 of stock from the corporation to the party or from the
1483+15 party to the corporation under the attribution rules of
1484+16 Section 318 of the Internal Revenue Code, if the
1485+17 corporation and all such related parties own in the
1486+18 aggregate at least 50% of the profits, capital, stock, or
1487+19 value of the taxpayer.
1488+20 (5) A person to or from whom there is an attribution of
1489+21 stock ownership in accordance with Section 1563(e) of the
1490+22 Internal Revenue Code, except, for purposes of determining
1491+23 whether a person is a related member under this paragraph,
1492+24 20% shall be substituted for 5% wherever 5% appears in
1493+25 Section 1563(e) of the Internal Revenue Code.
1494+26 "Renewable energy" means energy produced using the
1495+
1496+
1497+
1498+
1499+
1500+ HB5005 Enrolled - 42 - LRB103 37016 SPS 67131 b
1501+
1502+
1503+HB5005 Enrolled- 43 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 43 - LRB103 37016 SPS 67131 b
1504+ HB5005 Enrolled - 43 - LRB103 37016 SPS 67131 b
1505+1 materials and sources of energy through which renewable energy
1506+2 resources are generated.
1507+3 "Renewable energy manufacturer" means a manufacturer whose
1508+4 primary function is to manufacture or assemble: (i) equipment,
1509+5 systems, or products used to produce renewable or nuclear
1510+6 energy; (ii) products used for energy conservation, storage,
1511+7 or grid efficiency purposes; or (iii) component parts for that
1512+8 equipment or those systems or products.
1513+9 "Renewable energy resources" has the meaning ascribed to
1514+10 that term in Section 1-10 of the Illinois Power Agency Act.
1515+11 "Research and development" means work directed toward the
1516+12 innovation, introduction, and improvement of products and
1517+13 processes. "Research and development" includes all levels of
1518+14 research and development that directly result in the potential
1519+15 manufacturing and marketability of renewable energy, electric
1520+16 vehicles, electric vehicle component parts, and electric or
1521+17 hybrid aircraft.
1522+18 "Retained employee" means a full-time employee employed by
1523+19 the taxpayer prior to the term of the Agreement who continues
1524+20 to be employed during the term of the agreement whose job
1525+21 duties are directly related to the project. The term "retained
1526+22 employee" does not include any individual who has a direct or
1527+23 an indirect ownership interest of at least 5% in the profits,
1528+24 equity, capital, or value of the taxpayer or a child,
1529+25 grandchild, parent, or spouse, other than a spouse who is
1530+26 legally separated from the individual, of any individual who
1531+
1532+
1533+
1534+
1535+
1536+ HB5005 Enrolled - 43 - LRB103 37016 SPS 67131 b
1537+
1538+
1539+HB5005 Enrolled- 44 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 44 - LRB103 37016 SPS 67131 b
1540+ HB5005 Enrolled - 44 - LRB103 37016 SPS 67131 b
1541+1 has a direct or indirect ownership of at least 5% in the
1542+2 profits, equity, capital, or value of the taxpayer. The
1543+3 changes to this definition of "retained employee" apply to
1544+4 agreements for credits under this Act that are entered into on
1545+5 or after the effective date of this amendatory Act of the 102nd
1546+6 General Assembly.
1547+7 "REV Illinois credit" means a credit agreed to between the
1548+8 Department and the applicant under this Act that is based on
1549+9 the incremental income tax attributable to new employees and,
1550+10 if applicable, retained employees, and on training costs for
1551+11 such employees at the applicant's project.
1552+12 "REV construction jobs credit" means a credit agreed to
1553+13 between the Department and the applicant under this Act that
1554+14 is based on the incremental income tax attributable to
1555+15 construction wages paid in connection with construction of the
1556+16 project facilities.
1557+17 "Statewide baseline" means the total number of full-time
1558+18 employees of the applicant and any related member employed by
1559+19 such entities at the time of application for incentives under
1560+20 this Act.
1561+21 "Taxpayer" means an individual, corporation, partnership,
1562+22 or other entity that has a legal obligation to pay Illinois
1563+23 income taxes and file an Illinois income tax return.
1564+24 "Training costs" means costs incurred to upgrade the
1565+25 technological skills of full-time employees in Illinois and
1566+26 includes: curriculum development; training materials
1567+
1568+
1569+
1570+
1571+
1572+ HB5005 Enrolled - 44 - LRB103 37016 SPS 67131 b
1573+
1574+
1575+HB5005 Enrolled- 45 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 45 - LRB103 37016 SPS 67131 b
1576+ HB5005 Enrolled - 45 - LRB103 37016 SPS 67131 b
1577+1 (including scrap product costs); trainee domestic travel
1578+2 expenses; instructor costs (including wages, fringe benefits,
1579+3 tuition and domestic travel expenses); rent, purchase or lease
1580+4 of training equipment; and other usual and customary training
1581+5 costs. "Training costs" do not include costs associated with
1582+6 travel outside the United States (unless the Taxpayer receives
1583+7 prior written approval for the travel by the Director based on
1584+8 a showing of substantial need or other proof the training is
1585+9 not reasonably available within the United States), wages and
1586+10 fringe benefits of employees during periods of training, or
1587+11 administrative cost related to full-time employees of the
1588+12 taxpayer.
1589+13 "Underserved area" means any geographic area areas as
1590+14 defined in Section 5-5 of the Economic Development for a
1591+15 Growing Economy Tax Credit Act.
1592+16 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
1593+17 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
1594+18 (20 ILCS 686/20)
1595+19 Sec. 20. REV Illinois Program; project applications.
1596+20 (a) The Reimagining Energy and Vehicles in Illinois (REV
1597+21 Illinois) Program is hereby established and shall be
1598+22 administered by the Department. The Program will provide
1599+23 financial incentives to any one or more of the following: (1)
1600+24 eligible manufacturers of electric vehicles, electric vehicle
1601+25 component parts, and electric vehicle power supply equipment;
1602+
1603+
1604+
1605+
1606+
1607+ HB5005 Enrolled - 45 - LRB103 37016 SPS 67131 b
1608+
1609+
1610+HB5005 Enrolled- 46 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 46 - LRB103 37016 SPS 67131 b
1611+ HB5005 Enrolled - 46 - LRB103 37016 SPS 67131 b
1612+1 (2) battery recycling and reuse manufacturers; (3) battery raw
1613+2 materials refining service providers; or (4) renewable energy
1614+3 manufacturers.
1615+4 (b) Any taxpayer planning a project to be located in
1616+5 Illinois may request consideration for designation of its
1617+6 project as a REV Illinois Project, by formal written letter of
1618+7 request or by formal application to the Department, in which
1619+8 the applicant states its intent to make at least a specified
1620+9 level of investment and intends to hire a specified number of
1621+10 full-time employees at a designated location in Illinois. As
1622+11 circumstances require, the Department shall require a formal
1623+12 application from an applicant and a formal letter of request
1624+13 for assistance.
1625+14 (c) In order to qualify for credits under the REV Illinois
1626+15 Program, an applicant must:
1627+16 (1) if the applicant is an electric vehicle
1628+17 manufacturer:
1629+18 (A) make an investment of at least $1,500,000,000
1630+19 in capital improvements at the project site;
1631+20 (B) to be placed in service within the State
1632+21 within a 60-month period after approval of the
1633+22 application; and
1634+23 (C) create at least 500 new full-time employee
1635+24 jobs; or
1636+25 (2) if the applicant is an electric vehicle component
1637+26 parts manufacturer, or a renewable energy manufacturer, a
1638+
1639+
1640+
1641+
1642+
1643+ HB5005 Enrolled - 46 - LRB103 37016 SPS 67131 b
1644+
1645+
1646+HB5005 Enrolled- 47 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 47 - LRB103 37016 SPS 67131 b
1647+ HB5005 Enrolled - 47 - LRB103 37016 SPS 67131 b
1648+1 green steel manufacturer, or an entity engaged in
1649+2 research, development, or manufacturing of eVTOL aircraft
1650+3 or hybrid-electric or fully electric propulsion systems
1651+4 for airliners:
1652+5 (A) make an investment of at least $300,000,000 in
1653+6 capital improvements at the project site;
1654+7 (B) manufacture one or more parts that are
1655+8 primarily used for electric vehicle, renewable energy,
1656+9 or green steel manufacturing;
1657+10 (C) to be placed in service within the State
1658+11 within a 60-month period after approval of the
1659+12 application; and
1660+13 (D) create at least 150 new full-time employee
1661+14 jobs; or
1662+15 (3) if the agreement is entered into before the
1663+16 effective date of this amendatory Act of the 102nd General
1664+17 Assembly and the applicant is an electric vehicle
1665+18 manufacturer, an electric vehicle power supply equipment
1666+19 manufacturer, an electric vehicle component part
1667+20 manufacturer, renewable energy manufacturer, or green
1668+21 steel manufacturer that does not qualify under paragraph
1669+22 (2) above, a battery recycling and reuse manufacturer, or
1670+23 a battery raw materials refining service provider:
1671+24 (A) make an investment of at least $20,000,000 in
1672+25 capital improvements at the project site;
1673+26 (B) for electric vehicle component part
1674+
1675+
1676+
1677+
1678+
1679+ HB5005 Enrolled - 47 - LRB103 37016 SPS 67131 b
1680+
1681+
1682+HB5005 Enrolled- 48 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 48 - LRB103 37016 SPS 67131 b
1683+ HB5005 Enrolled - 48 - LRB103 37016 SPS 67131 b
1684+1 manufacturers, manufacture one or more parts that are
1685+2 primarily used for electric vehicle manufacturing;
1686+3 (C) to be placed in service within the State
1687+4 within a 48-month period after approval of the
1688+5 application; and
1689+6 (D) create at least 50 new full-time employee
1690+7 jobs; or
1691+8 (3.1) if the agreement is entered into on or after the
1692+9 effective date of this amendatory Act of the 102nd General
1693+10 Assembly and the applicant is an electric vehicle
1694+11 manufacturer, an electric vehicle power supply equipment
1695+12 manufacturer, an electric vehicle component part
1696+13 manufacturer, a renewable energy manufacturer, a green
1697+14 steel manufacturer, or an entity engaged in research,
1698+15 development, or manufacturing of eVTOL aircraft or
1699+16 hybrid-electric or fully electric propulsion systems for
1700+17 airliners that does not qualify under paragraph (2) above,
1701+18 a renewable energy manufacturer that does not qualify
1702+19 under paragraph (2) above, a battery recycling and reuse
1703+20 manufacturer, or a battery raw materials refining service
1704+21 provider:
1705+22 (A) make an investment of at least $2,500,000 in
1706+23 capital improvements at the project site;
1707+24 (B) in the case of electric vehicle component part
1708+25 manufacturers, manufacture one or more parts that are
1709+26 used for electric vehicle manufacturing;
1710+
1711+
1712+
1713+
1714+
1715+ HB5005 Enrolled - 48 - LRB103 37016 SPS 67131 b
1716+
1717+
1718+HB5005 Enrolled- 49 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 49 - LRB103 37016 SPS 67131 b
1719+ HB5005 Enrolled - 49 - LRB103 37016 SPS 67131 b
1720+1 (C) to be placed in service within the State
1721+2 within a 48-month period after approval of the
1722+3 application; and
1723+4 (D) create the lesser of 50 new full-time employee
1724+5 jobs or new full-time employee jobs equivalent to 10%
1725+6 of the Statewide baseline applicable to the taxpayer
1726+7 and any related member at the time of application; or
1727+8 (4) if the agreement is entered into before the
1728+9 effective date of this amendatory Act of the 102nd General
1729+10 Assembly and the applicant is an electric vehicle
1730+11 manufacturer or electric vehicle component parts
1731+12 manufacturer with existing operations within Illinois that
1732+13 intends to convert or expand, in whole or in part, the
1733+14 existing facility from traditional manufacturing to
1734+15 primarily electric vehicle manufacturing, electric vehicle
1735+16 component parts manufacturing, an or electric vehicle
1736+17 power supply equipment manufacturing, or a green steel
1737+18 manufacturer:
1738+19 (A) make an investment of at least $100,000,000 in
1739+20 capital improvements at the project site;
1740+21 (B) to be placed in service within the State
1741+22 within a 60-month period after approval of the
1742+23 application; and
1743+24 (C) create the lesser of 75 new full-time employee
1744+25 jobs or new full-time employee jobs equivalent to 10%
1745+26 of the Statewide baseline applicable to the taxpayer
1746+
1747+
1748+
1749+
1750+
1751+ HB5005 Enrolled - 49 - LRB103 37016 SPS 67131 b
1752+
1753+
1754+HB5005 Enrolled- 50 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 50 - LRB103 37016 SPS 67131 b
1755+ HB5005 Enrolled - 50 - LRB103 37016 SPS 67131 b
1756+1 and any related member at the time of application;
1757+2 (4.1) if the agreement is entered into on or after the
1758+3 effective date of this amendatory Act of the 102nd General
1759+4 Assembly and the applicant (i) is an electric vehicle
1760+5 manufacturer, an electric vehicle component parts
1761+6 manufacturer, or a renewable energy manufacturer, a green
1762+7 steel manufacturer, or an entity engaged in research,
1763+8 development, or manufacturing of eVTOL aircraft or hybrid
1764+9 electric or fully electric propulsion systems for
1765+10 airliners and (ii) has existing operations within Illinois
1766+11 that the applicant intends to convert or expand, in whole
1767+12 or in part, from traditional manufacturing to electric
1768+13 vehicle manufacturing, electric vehicle component parts
1769+14 manufacturing, renewable energy manufacturing, or electric
1770+15 vehicle power supply equipment manufacturing:
1771+16 (A) make an investment of at least $100,000,000 in
1772+17 capital improvements at the project site;
1773+18 (B) to be placed in service within the State
1774+19 within a 60-month period after approval of the
1775+20 application; and
1776+21 (C) create the lesser of 50 new full-time employee
1777+22 jobs or new full-time employee jobs equivalent to 10%
1778+23 of the Statewide baseline applicable to the taxpayer
1779+24 and any related member at the time of application; or
1780+25 (5) if the agreement is entered into on or after the
1781+26 effective date of the changes made to this Section by this
1782+
1783+
1784+
1785+
1786+
1787+ HB5005 Enrolled - 50 - LRB103 37016 SPS 67131 b
1788+
1789+
1790+HB5005 Enrolled- 51 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 51 - LRB103 37016 SPS 67131 b
1791+ HB5005 Enrolled - 51 - LRB103 37016 SPS 67131 b
1792+1 amendatory Act of the 103rd General Assembly and before
1793+2 June 1, 2024 and the applicant (i) is an electric vehicle
1794+3 manufacturer, an electric vehicle component parts
1795+4 manufacturer, or a renewable energy manufacturer or (ii)
1796+5 has existing operations within Illinois that the applicant
1797+6 intends to convert or expand, in whole or in part, from
1798+7 traditional manufacturing to electric vehicle
1799+8 manufacturing, electric vehicle component parts
1800+9 manufacturing, renewable energy manufacturing, or electric
1801+10 vehicle power supply equipment manufacturing:
1802+11 (A) make an investment of at least $500,000,000 in
1803+12 capital improvements at the project site;
1804+13 (B) to be placed in service within the State
1805+14 within a 60-month period after approval of the
1806+15 application; and
1807+16 (C) retain at least 800 full-time employee jobs at
1808+17 the project.
1809+18 (d) For agreements entered into prior to April 19, 2022
1810+19 (the effective date of Public Act 102-700), for any applicant
1811+20 creating the full-time employee jobs noted in subsection (c),
1812+21 those jobs must have a total compensation equal to or greater
1813+22 than 120% of the average wage paid to full-time employees in
1814+23 the county where the project is located, as determined by the
1815+24 U.S. Bureau of Labor Statistics. For agreements entered into
1816+25 on or after April 19, 2022 (the effective date of Public Act
1817+26 102-700), for any applicant creating the full-time employee
1818+
1819+
1820+
1821+
1822+
1823+ HB5005 Enrolled - 51 - LRB103 37016 SPS 67131 b
1824+
1825+
1826+HB5005 Enrolled- 52 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 52 - LRB103 37016 SPS 67131 b
1827+ HB5005 Enrolled - 52 - LRB103 37016 SPS 67131 b
1828+1 jobs noted in subsection (c), those jobs must have a
1829+2 compensation equal to or greater than 120% of the average wage
1830+3 paid to full-time employees in a similar position within an
1831+4 occupational group in the county where the project is located,
1832+5 as determined by the Department.
1833+6 (e) For any applicant, within 24 months after being placed
1834+7 in service, it must certify to the Department that it is carbon
1835+8 neutral or has attained certification under one of more of the
1836+9 following green building standards:
1837+10 (1) BREEAM for New Construction or BREEAM In-Use;
1838+11 (2) ENERGY STAR;
1839+12 (3) Envision;
1840+13 (4) ISO 50001 - energy management;
1841+14 (5) LEED for Building Design and Construction or LEED
1842+15 for Building Operations and Maintenance;
1843+16 (6) Green Globes for New Construction or Green Globes
1844+17 for Existing Buildings; or
1845+18 (7) UL 3223.
1846+19 (f) Each applicant must outline its hiring plan and
1847+20 commitment to recruit and hire full-time employee positions at
1848+21 the project site. The hiring plan may include a partnership
1849+22 with an institution of higher education to provide
1850+23 internships, including, but not limited to, internships
1851+24 supported by the Clean Jobs Workforce Network Program, or
1852+25 full-time permanent employment for students at the project
1853+26 site. Additionally, the applicant may create or utilize
1854+
1855+
1856+
1857+
1858+
1859+ HB5005 Enrolled - 52 - LRB103 37016 SPS 67131 b
1860+
1861+
1862+HB5005 Enrolled- 53 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 53 - LRB103 37016 SPS 67131 b
1863+ HB5005 Enrolled - 53 - LRB103 37016 SPS 67131 b
1864+1 participants from apprenticeship programs that are approved by
1865+2 and registered with the United States Department of Labor's
1866+3 Bureau of Apprenticeship and Training. The applicant may apply
1867+4 for apprenticeship education expense credits in accordance
1868+5 with the provisions set forth in 14 Ill. Adm. Code 522. Each
1869+6 applicant is required to report annually, on or before April
1870+7 15, on the diversity of its workforce in accordance with
1871+8 Section 50 of this Act. For existing facilities of applicants
1872+9 under paragraph (3) of subsection (b) above, if the taxpayer
1873+10 expects a reduction in force due to its transition to
1874+11 manufacturing electric vehicle, electric vehicle component
1875+12 parts, or electric vehicle power supply equipment, the plan
1876+13 submitted under this Section must outline the taxpayer's plan
1877+14 to assist with retraining its workforce aligned with the
1878+15 taxpayer's adoption of new technologies and anticipated
1879+16 efforts to retrain employees through employment opportunities
1880+17 within the taxpayer's workforce.
1881+18 (g) Each applicant must demonstrate a contractual or other
1882+19 relationship with a recycling facility, or demonstrate its own
1883+20 recycling capabilities, at the time of application and report
1884+21 annually a continuing contractual or other relationship with a
1885+22 recycling facility and the percentage of batteries used in
1886+23 electric vehicles recycled throughout the term of the
1887+24 agreement.
1888+25 (h) A taxpayer may not enter into more than one agreement
1889+26 under this Act with respect to a single address or location for
1890+
1891+
1892+
1893+
1894+
1895+ HB5005 Enrolled - 53 - LRB103 37016 SPS 67131 b
1896+
1897+
1898+HB5005 Enrolled- 54 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 54 - LRB103 37016 SPS 67131 b
1899+ HB5005 Enrolled - 54 - LRB103 37016 SPS 67131 b
1900+1 the same period of time. Also, a taxpayer may not enter into an
1901+2 agreement under this Act with respect to a single address or
1902+3 location for the same period of time for which the taxpayer
1903+4 currently holds an active agreement under the Economic
1904+5 Development for a Growing Economy Tax Credit Act. This
1905+6 provision does not preclude the applicant from entering into
1906+7 an additional agreement after the expiration or voluntary
1907+8 termination of an earlier agreement under this Act or under
1908+9 the Economic Development for a Growing Economy Tax Credit Act
1909+10 to the extent that the taxpayer's application otherwise
1910+11 satisfies the terms and conditions of this Act and is approved
1911+12 by the Department. An applicant with an existing agreement
1912+13 under the Economic Development for a Growing Economy Tax
1913+14 Credit Act may submit an application for an agreement under
1914+15 this Act after it terminates any existing agreement under the
1915+16 Economic Development for a Growing Economy Tax Credit Act with
1916+17 respect to the same address or location. If a project that is
1917+18 subject to an existing agreement under the Economic
1918+19 Development for a Growing Economy Tax Credit Act meets the
1919+20 requirements to be designated as a REV Illinois project under
1920+21 this Act, including for actions undertaken prior to the
1921+22 effective date of this Act, the taxpayer that is subject to
1922+23 that existing agreement under the Economic Development for a
1923+24 Growing Economy Tax Credit Act may apply to the Department to
1924+25 amend the agreement to allow the project to become a
1925+26 designated REV Illinois project. Following the amendment, time
1926+
1927+
1928+
1929+
1930+
1931+ HB5005 Enrolled - 54 - LRB103 37016 SPS 67131 b
1932+
1933+
1934+HB5005 Enrolled- 55 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 55 - LRB103 37016 SPS 67131 b
1935+ HB5005 Enrolled - 55 - LRB103 37016 SPS 67131 b
1936+1 accrued during which the project was eligible for credits
1937+2 under the existing agreement under the Economic Development
1938+3 for a Growing Economy Tax Credit Act shall count toward the
1939+4 duration of the credit subject to limitations described in
1940+5 Section 40 of this Act.
1941+6 (i) If, at any time following the designation of a project
1942+7 as a REV Illinois Project by the Department and prior to the
1943+8 termination or expiration of an agreement under this Act, the
1944+9 project ceases to qualify as a REV Illinois project because
1945+10 the taxpayer is no longer an electric vehicle manufacturer, an
1946+11 electric vehicle component manufacturer, an electric vehicle
1947+12 power supply equipment manufacturer, a battery recycling and
1948+13 reuse manufacturer, or a battery raw materials refining
1949+14 service provider, or an entity engaged in eVTOL or hybrid
1950+15 electric or fully electric propulsion systems for airliners
1951+16 research, development, or manufacturing, that project may
1952+17 receive tax credit awards as described in Section 5-15 and
1953+18 Section 5-51 of the Economic Development for a Growing Economy
1954+19 Tax Credit Act, as long as the project continues to meet
1955+20 requirements to obtain those credits as described in the
1956+21 Economic Development for a Growing Economy Tax Credit Act and
1957+22 remains compliant with terms contained in the Agreement under
1958+23 this Act not related to their status as an electric vehicle
1959+24 manufacturer, an electric vehicle component manufacturer, an
1960+25 electric vehicle power supply equipment manufacturer, a
1961+26 battery recycling and reuse manufacturer, or a battery raw
1962+
1963+
1964+
1965+
1966+
1967+ HB5005 Enrolled - 55 - LRB103 37016 SPS 67131 b
1968+
1969+
1970+HB5005 Enrolled- 56 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 56 - LRB103 37016 SPS 67131 b
1971+ HB5005 Enrolled - 56 - LRB103 37016 SPS 67131 b
1972+1 materials refining service provider, or an entity engaged in
1973+2 eVTOL or hybrid-electric or fully electric propulsion systems
1974+3 for airliners research, development, or manufacturing. Time
1975+4 accrued during which the project was eligible for credits
1976+5 under an agreement under this Act shall count toward the
1977+6 duration of the credit subject to limitations described in
1978+7 Section 5-45 of the Economic Development for a Growing Economy
1979+8 Tax Credit Act.
1980+9 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
1981+10 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff.
1982+11 6-7-23.)
1983+12 (20 ILCS 686/35)
1984+13 Sec. 35. Relocation of jobs in Illinois. A taxpayer is not
1985+14 entitled to claim a credit provided by this Act with respect to
1986+15 any jobs that the Taxpayer relocates from one site in Illinois
1987+16 to another site in Illinois unless the taxpayer has agreed to
1988+17 hire the minimum number of new employees and the Department
1989+18 has determined that the expansion cannot reasonably be
1990+19 accommodated within the municipality in which the business is
1991+20 located. Any full-time employee relocated to Illinois in
1992+21 connection with a qualifying project is deemed to be a new
1993+22 employee for purposes of this Act. Determinations under this
1994+23 Section shall be made by the Department.
1995+24 (Source: P.A. 102-669, eff. 11-16-21.)
1996+
1997+
1998+
1999+
2000+
2001+ HB5005 Enrolled - 56 - LRB103 37016 SPS 67131 b
2002+
2003+
2004+HB5005 Enrolled- 57 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 57 - LRB103 37016 SPS 67131 b
2005+ HB5005 Enrolled - 57 - LRB103 37016 SPS 67131 b
2006+1 (20 ILCS 686/45)
2007+2 Sec. 45. Contents of agreements with applicants.
2008+3 (a) The Department shall enter into an agreement with an
2009+4 applicant that is awarded a credit under this Act. The
2010+5 agreement shall include all of the following:
2011+6 (1) A detailed description of the project that is the
2012+7 subject of the agreement, including the location and
2013+8 amount of the investment and jobs created or retained.
2014+9 (2) The duration of the credit, the first taxable year
2015+10 for which the credit may be awarded, and the first taxable
2016+11 year in which the credit may be used by the taxpayer.
2017+12 (3) The credit amount that will be allowed for each
2018+13 taxable year.
2019+14 (4) For a project qualified under paragraphs (1), (2),
2020+15 (4), or (5) of subsection (c) of Section 20, a requirement
2021+16 that the taxpayer shall maintain operations at the project
2022+17 location a minimum number of years not to exceed 15. For a
2023+18 project qualified under paragraph (3) of subsection (c) of
2024+19 Section 20, a requirement that the taxpayer shall maintain
2025+20 operations at the project location a minimum number of
2026+21 years not to exceed 10.
2027+22 (5) A specific method for determining the number of
2028+23 new employees and if applicable, retained employees,
2029+24 employed during a taxable year.
2030+25 (6) A requirement that the taxpayer shall annually
2031+26 report to the Department the number of new employees, the
2032+
2033+
2034+
2035+
2036+
2037+ HB5005 Enrolled - 57 - LRB103 37016 SPS 67131 b
2038+
2039+
2040+HB5005 Enrolled- 58 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 58 - LRB103 37016 SPS 67131 b
2041+ HB5005 Enrolled - 58 - LRB103 37016 SPS 67131 b
2042+1 incremental income tax withheld in connection with the new
2043+2 employees, and any other information the Department deems
2044+3 necessary and appropriate to perform its duties under this
2045+4 Act.
2046+5 (7) A requirement that the Director is authorized to
2047+6 verify with the appropriate State agencies the amounts
2048+7 reported under paragraph (6), and after doing so shall
2049+8 issue a certificate to the taxpayer stating that the
2050+9 amounts have been verified.
2051+10 (8) A requirement that the taxpayer shall provide
2052+11 written notification to the Director not more than 30 days
2053+12 after the taxpayer makes or receives a proposal that would
2054+13 transfer the taxpayer's State tax liability obligations to
2055+14 a successor taxpayer.
2056+15 (9) A detailed description of the number of new
2057+16 employees to be hired, and the occupation and payroll of
2058+17 full-time jobs to be created or retained because of the
2059+18 project.
2060+19 (10) The minimum investment the taxpayer will make in
2061+20 capital improvements, the time period for placing the
2062+21 property in service, and the designated location in
2063+22 Illinois for the investment.
2064+23 (11) A requirement that the taxpayer shall provide
2065+24 written notification to the Director and the Director's
2066+25 designee not more than 30 days after the taxpayer
2067+26 determines that the minimum job creation or retention,
2068+
2069+
2070+
2071+
2072+
2073+ HB5005 Enrolled - 58 - LRB103 37016 SPS 67131 b
2074+
2075+
2076+HB5005 Enrolled- 59 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 59 - LRB103 37016 SPS 67131 b
2077+ HB5005 Enrolled - 59 - LRB103 37016 SPS 67131 b
2078+1 employment payroll, or investment no longer is or will be
2079+2 achieved or maintained as set forth in the terms and
2080+3 conditions of the agreement. Additionally, the
2081+4 notification should outline to the Department the number
2082+5 of layoffs, date of the layoffs, and detail taxpayer's
2083+6 efforts to provide career and training counseling for the
2084+7 impacted workers with industry-related certifications and
2085+8 trainings.
2086+9 (12) If applicable, a provision that, if the total
2087+10 number of new employees falls below a specified level, the
2088+11 allowance of credit shall be suspended until the number of
2089+12 new employees equals or exceeds the agreement amount.
2090+13 (13) If applicable, a provision that specifies the
2091+14 statewide baseline at the time of application for retained
2092+15 employees. The agreement must have a provision addressing
2093+16 if the total number of retained employees falls below the
2094+17 lesser of the statewide baseline or the retention
2095+18 requirements specified in the agreement, the allowance of
2096+19 the credit shall be suspended until the number of retained
2097+20 employees equals or exceeds the agreement amount.
2098+21 (14) A detailed description of the items for which the
2099+22 costs incurred by the Taxpayer will be included in the
2100+23 limitation on the Credit provided in Section 40.
2101+24 (15) If the agreement is entered into before the
2102+25 effective date of the changes made to this Section by this
2103+26 amendatory Act of the 103rd General Assembly, a provision
2104+
2105+
2106+
2107+
2108+
2109+ HB5005 Enrolled - 59 - LRB103 37016 SPS 67131 b
2110+
2111+
2112+HB5005 Enrolled- 60 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 60 - LRB103 37016 SPS 67131 b
2113+ HB5005 Enrolled - 60 - LRB103 37016 SPS 67131 b
2114+1 stating that if the taxpayer fails to meet either the
2115+2 investment or job creation and retention requirements
2116+3 specified in the agreement during the entire 5-year period
2117+4 beginning on the first day of the first taxable year in
2118+5 which the agreement is executed and ending on the last day
2119+6 of the fifth taxable year after the agreement is executed,
2120+7 then the agreement is automatically terminated on the last
2121+8 day of the fifth taxable year after the agreement is
2122+9 executed, and the taxpayer is not entitled to the award of
2123+10 any credits for any of that 5-year period. If the
2124+11 agreement is entered into on or after the effective date
2125+12 of the changes made to this Section by this amendatory Act
2126+13 of the 103rd General Assembly, a provision stating that if
2127+14 the taxpayer fails to meet either the investment or job
2128+15 creation and retention requirements specified in the
2129+16 agreement during the entire 10-year period beginning on
2130+17 the effective date of the agreement and ending 10 years
2131+18 after the effective date of the agreement, then the
2132+19 agreement is automatically terminated, and the taxpayer is
2133+20 not entitled to the award of any credits for any of that
2134+21 10-year period.
2135+22 (16) A provision stating that if the taxpayer ceases
2136+23 principal operations with the intent to permanently shut
2137+24 down the project in the State during the term of the
2138+25 Agreement, then the entire credit amount awarded to the
2139+26 taxpayer prior to the date the taxpayer ceases principal
2140+
2141+
2142+
2143+
2144+
2145+ HB5005 Enrolled - 60 - LRB103 37016 SPS 67131 b
2146+
2147+
2148+HB5005 Enrolled- 61 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 61 - LRB103 37016 SPS 67131 b
2149+ HB5005 Enrolled - 61 - LRB103 37016 SPS 67131 b
2150+1 operations shall be returned to the Department and shall
2151+2 be reallocated to the local workforce investment area in
2152+3 which the project was located.
2153+4 (17) A provision stating that the Taxpayer must
2154+5 provide the reports outlined in Sections 50 and 55 on or
2155+6 before April 15 each year.
2156+7 (18) A provision requiring the taxpayer to report
2157+8 annually its contractual obligations or otherwise with a
2158+9 recycling facility for its operations.
2159+10 (19) Any other performance conditions or contract
2160+11 provisions the Department determines are necessary or
2161+12 appropriate.
2162+13 (20) Each taxpayer under paragraph (1) of subsection
2163+14 (c) of Section 20 above shall maintain labor neutrality
2164+15 toward any union organizing campaign for any employees of
2165+16 the taxpayer assigned to work on the premises of the REV
2166+17 Illinois Project Site. This paragraph shall not apply to
2167+18 an electric vehicle manufacturer, electric vehicle
2168+19 component part manufacturer, electric vehicle power supply
2169+20 manufacturer, or renewable energy manufacturer, or any
2170+21 joint venture including an electric vehicle manufacturer,
2171+22 electric vehicle component part manufacturer, electric
2172+23 vehicle power supply manufacturer, or renewable energy
2173+24 manufacturer, or an entity engaged in eVTOL or
2174+25 hybrid-electric or fully electric propulsion systems for
2175+26 airliners research, development, or manufacturing, who is
2176+
2177+
2178+
2179+
2180+
2181+ HB5005 Enrolled - 61 - LRB103 37016 SPS 67131 b
2182+
2183+
2184+HB5005 Enrolled- 62 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 62 - LRB103 37016 SPS 67131 b
2185+ HB5005 Enrolled - 62 - LRB103 37016 SPS 67131 b
2186+1 subject to collective bargaining agreement entered into
2187+2 prior to the taxpayer filing an application pursuant to
2188+3 this Act.
2189+4 (b) The Department shall post on its website the terms of
2190+5 each agreement entered into under this Act. Such information
2191+6 shall be posted within 10 days after entering into the
2192+7 agreement and must include the following:
2193+8 (1) the name of the taxpayer;
2194+9 (2) the location of the project;
2195+10 (3) the estimated value of the credit;
2196+11 (4) the number of new employee jobs and, if
2197+12 applicable, number of retained employee jobs at the
2198+13 project; and
2199+14 (5) whether or not the project is in an underserved
2200+15 area or energy transition area.
2201+16 (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
2202+17 103-9, eff. 6-7-23.)
2203+18 (20 ILCS 686/65)
2204+19 Sec. 65. REV Construction Jobs Credits Certified payroll.
2205+20 (a) Each REV program participant contractor and
2206+21 subcontractor that is engaged in construction work on project
2207+22 facilities for a taxpayer who seeks to apply for a REV
2208+23 Construction Jobs credit shall annually, until construction is
2209+24 completed, submit a report that, at a minimum, describes the
2210+25 projected project scope, timeline, and anticipated budget.
2211+
2212+
2213+
2214+
2215+
2216+ HB5005 Enrolled - 62 - LRB103 37016 SPS 67131 b
2217+
2218+
2219+HB5005 Enrolled- 63 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 63 - LRB103 37016 SPS 67131 b
2220+ HB5005 Enrolled - 63 - LRB103 37016 SPS 67131 b
2221+1 Once the project has commenced, the annual report shall
2222+2 include actual data for the prior year as well as projections
2223+3 for each additional year through completion of the project.
2224+4 The Department shall issue detailed reporting guidelines
2225+5 prescribing the requirements of construction related reports. :
2226+6 In order to receive credit for construction expenses, the
2227+7 company must provide the Department with evidence that a
2228+8 certified third-party executed an Agreed-Upon Procedure (AUP)
2229+9 verifying the construction expenses or accept the standard
2230+10 construction wage expense estimated by the Department.
2231+11 Upon review of the final project scope, timeline, budget,
2232+12 and AUP, the Department shall issue a tax credit certificate
2233+13 reflecting a percentage of the total construction job wages
2234+14 paid throughout the completion of the project.
2235+15 (1) make and keep, for a period of 5 years from the
2236+16 date of the last payment made on a contract or subcontract
2237+17 for construction of facilities for a REV Illinois Project
2238+18 pursuant to an agreement, records of all laborers and
2239+19 other workers employed by the contractor or subcontractor
2240+20 on the project; the records shall include:
2241+21 (A) the worker's name;
2242+22 (B) the worker's address;
2243+23 (C) the worker's telephone number, if available;
2244+24 (D) the worker's social security number;
2245+25 (E) the worker's classification or
2246+26 classifications;
2247+
2248+
2249+
2250+
2251+
2252+ HB5005 Enrolled - 63 - LRB103 37016 SPS 67131 b
2253+
2254+
2255+HB5005 Enrolled- 64 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 64 - LRB103 37016 SPS 67131 b
2256+ HB5005 Enrolled - 64 - LRB103 37016 SPS 67131 b
2257+1 (F) the worker's gross and net wages paid in each
2258+2 pay period;
2259+3 (G) the worker's number of hours worked in each
2260+4 day;
2261+5 (H) the worker's starting and ending times of work
2262+6 each day;
2263+7 (I) the worker's hourly wage rate; and
2264+8 (J) the worker's hourly overtime wage rate; and
2265+9 (2) no later than the 15th day of each calendar month,
2266+10 provide a certified payroll for the immediately preceding
2267+11 month to the taxpayer in charge of the project; within 5
2268+12 business days after receiving the certified payroll, the
2269+13 Taxpayer shall file the certified payroll with the
2270+14 Department of Labor and the Department; a certified
2271+15 payroll must be filed for only those calendar months
2272+16 during which construction on the REV Illinois Project
2273+17 facilities has occurred; the certified payroll shall
2274+18 consist of a complete copy of the records identified in
2275+19 paragraph (1), but may exclude the starting and ending
2276+20 times of work each day; the certified payroll shall be
2277+21 accompanied by a statement signed by the contractor or
2278+22 subcontractor or an officer, employee, or agent of the
2279+23 contractor or subcontractor which avers that:
2280+24 (A) he or she has examined the certified payroll
2281+25 records required to be submitted by the Act and such
2282+26 records are true and accurate; and
2283+
2284+
2285+
2286+
2287+
2288+ HB5005 Enrolled - 64 - LRB103 37016 SPS 67131 b
2289+
2290+
2291+HB5005 Enrolled- 65 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 65 - LRB103 37016 SPS 67131 b
2292+ HB5005 Enrolled - 65 - LRB103 37016 SPS 67131 b
2293+1 (B) the contractor or subcontractor is aware that
2294+2 filing a certified payroll that he or she knows to be
2295+3 false is a Class A misdemeanor.
2296+4 A general contractor is not prohibited from relying on a
2297+5 certified payroll of a lower-tier subcontractor, provided the
2298+6 general contractor does not knowingly rely upon a
2299+7 subcontractor's false certification.
2300+8 (b) (Blank). Any contractor or subcontractor subject to
2301+9 this Section, and any officer, employee, or agent of such
2302+10 contractor or subcontractor whose duty as an officer,
2303+11 employee, or agent it is to file a certified payroll under this
2304+12 Section, who willfully fails to file such a certified payroll,
2305+13 on or before the date such certified payroll is required to be
2306+14 filed and any person who willfully files a false certified
2307+15 payroll as to any material fact is in violation of this Act and
2308+16 guilty of a Class A misdemeanor and may be enforced by the
2309+17 Illinois Department of Labor or the Department. The Attorney
2310+18 General shall represented the Illinois Department of Labor or
2311+19 the Department in the proceeding.
2312+20 (c) (Blank). The taxpayer in charge of the project shall
2313+21 keep the records submitted in accordance with this Section for
2314+22 a period of 5 years from the date of the last payment for work
2315+23 on a contract or subcontract for the project.
2316+24 (d) (Blank). The records submitted in accordance with this
2317+25 Section shall be considered public records, except an
2318+26 employee's address, telephone number, and social security
2319+
2320+
2321+
2322+
2323+
2324+ HB5005 Enrolled - 65 - LRB103 37016 SPS 67131 b
2325+
2326+
2327+HB5005 Enrolled- 66 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 66 - LRB103 37016 SPS 67131 b
2328+ HB5005 Enrolled - 66 - LRB103 37016 SPS 67131 b
2329+1 number, which shall be redacted. The records shall be made
2330+2 publicly available in accordance with the Freedom of
2331+3 Information Act. The contractor or subcontractor shall submit
2332+4 reports to the Department of Labor electronically that meet
2333+5 the requirements of this subsection and shall share the
2334+6 information with the Department to comply with the awarding of
2335+7 the REV Construction Jobs Credit. A contractor, subcontractor,
2336+8 or public body may retain records required under this Section
2337+9 in paper or electronic format.
2338+10 (e) Upon 7 business days' notice, the taxpayer contractor
2339+11 and each subcontractor shall make available to any State
2340+12 agency and to federal, State, or local law enforcement
2341+13 agencies and prosecutors for inspection and copying at a
2342+14 location within this State during reasonable hours, the report
2343+15 described in subsection (a) records identified in paragraph
2344+16 (1) of this subsection to the Taxpayer in charge of the
2345+17 Project, its officers and agents, the Director of the
2346+18 Department of Labor and his/her deputies and agents, and to
2347+19 federal, State, or local law enforcement agencies and
2348+20 prosecutors.
2349+21 (Source: P.A. 102-669, eff. 11-16-21.)
2350+22 (20 ILCS 686/95)
2351+23 Sec. 95. Utility tax exemptions for REV Illinois Project
2352+24 sites. The Department may certify a taxpayer with a REV
2353+25 Illinois credit for a Project that meets the qualifications
2354+
2355+
2356+
2357+
2358+
2359+ HB5005 Enrolled - 66 - LRB103 37016 SPS 67131 b
2360+
2361+
2362+HB5005 Enrolled- 67 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 67 - LRB103 37016 SPS 67131 b
2363+ HB5005 Enrolled - 67 - LRB103 37016 SPS 67131 b
2364+1 under Section paragraphs (1), (2), and (4), (4.1), or (5) of
2365+2 subsection (c) of Section 20, subject to an agreement under
2366+3 this Act for an exemption from the tax imposed at the project
2367+4 site by Section 2-4 of the Electricity Excise Tax Law. To
2368+5 receive such certification, the taxpayer must be registered to
2369+6 self-assess that tax. The taxpayer is also exempt from any
2370+7 additional charges added to the taxpayer's utility bills at
2371+8 the project site as a pass-on of State utility taxes under
2372+9 Section 9-222 of the Public Utilities Act. The taxpayer must
2373+10 meet any other the criteria for certification set by the
2374+11 Department.
2375+12 The Department shall determine the period during which the
2376+13 exemption from the Electricity Excise Tax Law and the charges
2377+14 imposed under Section 9-222 of the Public Utilities Act are in
2378+15 effect, which shall not exceed 30 10 years from the date of the
2379+16 taxpayer's initial receipt of certification from the
2380+17 Department under this Section.
2381+18 The Department is authorized to adopt rules to carry out
2382+19 the provisions of this Section, including procedures to apply
2383+20 for the exemptions; to define the amounts and types of
2384+21 eligible investments that an applicant must make in order to
2385+22 receive electricity excise tax exemptions or exemptions from
2386+23 the additional charges imposed under Section 9-222 and the
2387+24 Public Utilities Act; to approve such electricity excise tax
2388+25 exemptions for applicants whose investments are not yet placed
2389+26 in service; and to require that an applicant granted an
2390+
2391+
2392+
2393+
2394+
2395+ HB5005 Enrolled - 67 - LRB103 37016 SPS 67131 b
2396+
2397+
2398+HB5005 Enrolled- 68 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 68 - LRB103 37016 SPS 67131 b
2399+ HB5005 Enrolled - 68 - LRB103 37016 SPS 67131 b
2400+1 electricity excise tax exemption or an exemption from
2401+2 additional charges under Section 9-222 of the Public Utilities
2402+3 Act repay the exempted amount if the Applicant fails to comply
2403+4 with the terms and conditions of the agreement.
2404+5 Upon certification by the Department under this Section,
2405+6 the Department shall notify the Department of Revenue of the
2406+7 certification. The Department of Revenue shall notify the
2407+8 public utilities of the exempt status of any taxpayer
2408+9 certified for exemption under this Act from the electricity
2409+10 excise tax or pass-on charges. The exemption status shall take
2410+11 effect within 3 months after certification of the taxpayer and
2411+12 notice to the Department of Revenue by the Department.
2412+13 (Source: P.A. 102-669, eff. 11-16-21.)
2413+14 (20 ILCS 686/105)
2414+15 Sec. 105. Building materials exemptions for REV Illinois
2415+16 Project sites.
2416+17 (a) The Department may certify a Taxpayer with a REV
2417+18 Illinois Project that meets the qualifications under
2418+19 paragraphs (1), (2), or (4), (4.1), or (5) of subsection (c) of
2419+20 Section 20, subject to an agreement under this Act, for an
2420+21 exemption from any State or local use tax or retailers'
2421+22 occupation tax on building materials for the construction of
2422+23 its project facilities. The taxpayer must meet any criteria
2423+24 for certification set by the Department under this Act.
2424+25 The Department shall determine the period during which the
2425+
2426+
2427+
2428+
2429+
2430+ HB5005 Enrolled - 68 - LRB103 37016 SPS 67131 b
2431+
2432+
2433+HB5005 Enrolled- 69 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 69 - LRB103 37016 SPS 67131 b
2434+ HB5005 Enrolled - 69 - LRB103 37016 SPS 67131 b
2435+1 exemption from State and local use tax and retailers'
2436+2 occupation tax are in effect, but in no event shall exceed 5
2437+3 years in accordance with Section 5m of the Retailers'
2438+4 Occupation Tax Act.
2439+5 The Department is authorized to promulgate rules and
2440+6 regulations to carry out the provisions of this Section,
2441+7 including procedures to apply for the exemption; to define the
2442+8 amounts and types of eligible investments that an applicant
2443+9 must make in order to receive tax exemption; to approve such
2444+10 tax exemption for an applicant whose investments are not yet
2445+11 placed in service; and to require that an applicant granted
2446+12 exemption repay the exempted amount if the applicant fails to
2447+13 comply with the terms and conditions of the agreement with the
2448+14 Department.
2449+15 Upon certification by the Department under this Section,
2450+16 the Department shall notify the Department of Revenue of the
2451+17 certification. The exemption status shall take effect within 3
2452+18 months after certification of the taxpayer and notice to the
2453+19 Department of Revenue by the Department.
2454+20 (Source: P.A. 102-669, eff. 11-16-21.)
2455+21 Section 17. The Energy Transition Act is amended by
2456+22 changing Sections 5-20 and 5-45 as follows:
2457+23 (20 ILCS 730/5-20)
2458+24 (Section scheduled to be repealed on September 15, 2045)
2459+
2460+
2461+
2462+
2463+
2464+ HB5005 Enrolled - 69 - LRB103 37016 SPS 67131 b
2465+
2466+
2467+HB5005 Enrolled- 70 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 70 - LRB103 37016 SPS 67131 b
2468+ HB5005 Enrolled - 70 - LRB103 37016 SPS 67131 b
2469+1 Sec. 5-20. Clean Jobs Workforce Network Program.
2470+2 (a) As used in this Section, "Program" means the Clean
2471+3 Jobs Workforce Network Program.
2472+4 (b) Subject to appropriation, the Department shall develop
2473+5 and, through Regional Administrators, administer the Clean
2474+6 Jobs Workforce Network Program to create a network of 14 13
2475+7 Program delivery Hub Sites with program elements delivered by
2476+8 community-based organizations and their subcontractors
2477+9 geographically distributed across the State including at least
2478+10 one Hub Site located in or near each of the following areas:
2479+11 Chicago (South Side), Chicago (Southwest and West Sides),
2480+12 Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign,
2481+13 Danville, Decatur, Carbondale, East St. Louis, Kankakee, and
2482+14 Alton.
2483+15 (c) In admitting program participants, for each workforce
2484+16 Hub Site, the Regional Administrators shall:
2485+17 (1) in each Hub Site where the applicant pool allows:
2486+18 (A) dedicate at least one-third of program
2487+19 placements to applicants who reside in a geographic
2488+20 area that is impacted by economic and environmental
2489+21 challenges, defined as an area that is both (i) an R3
2490+22 Area, as defined pursuant to Section 10-40 of the
2491+23 Cannabis Regulation and Tax Act, and (ii) an
2492+24 environmental justice community, as defined by the
2493+25 Illinois Power Agency, excluding any racial or ethnic
2494+26 indicators used by the agency unless and until the
2495+
2496+
2497+
2498+
2499+
2500+ HB5005 Enrolled - 70 - LRB103 37016 SPS 67131 b
2501+
2502+
2503+HB5005 Enrolled- 71 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 71 - LRB103 37016 SPS 67131 b
2504+ HB5005 Enrolled - 71 - LRB103 37016 SPS 67131 b
2505+1 constitutional basis for their inclusion in
2506+2 determining program admissions is established. Among
2507+3 applicants that satisfy these criteria, preference
2508+4 shall be given to applicants who face barriers to
2509+5 employment, such as low educational attainment, prior
2510+6 involvement with the criminal legal system, and
2511+7 language barriers; and applicants that are graduates
2512+8 of or currently enrolled in the foster care system;
2513+9 and
2514+10 (B) dedicate at least two-thirds of program
2515+11 placements to applicants that satisfy the criteria in
2516+12 paragraph (1) or who reside in a geographic area that
2517+13 is impacted by economic or environmental challenges,
2518+14 defined as an area that is either (i) an R3 Area, as
2519+15 defined pursuant to Section 10-40 of the Cannabis
2520+16 Regulation and Tax Act, or (ii) an environmental
2521+17 justice community, as defined by the Illinois Power
2522+18 Agency, excluding any racial or ethnic indicators used
2523+19 by the agency unless and until the constitutional
2524+20 basis for their inclusion in determining program
2525+21 admissions is established. Among applicants that
2526+22 satisfy these criteria, preference shall be given to
2527+23 applicants who face barriers to employment, such as
2528+24 low educational attainment, prior involvement with the
2529+25 criminal legal system, and language barriers; and
2530+26 applicants that are graduates of or currently enrolled
2531+
2532+
2533+
2534+
2535+
2536+ HB5005 Enrolled - 71 - LRB103 37016 SPS 67131 b
2537+
2538+
2539+HB5005 Enrolled- 72 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 72 - LRB103 37016 SPS 67131 b
2540+ HB5005 Enrolled - 72 - LRB103 37016 SPS 67131 b
2541+1 in the foster care system; and
2542+2 (2) prioritize the remaining program placements for:
2543+3 applicants who are displaced energy workers as defined in
2544+4 the Energy Community Reinvestment Act; persons who face
2545+5 barriers to employment, including low educational
2546+6 attainment, prior involvement with the criminal legal
2547+7 system, and language barriers; and applicants who are
2548+8 graduates of or currently enrolled in the foster care
2549+9 system, regardless of the applicant's area of residence.
2550+10 The Department and Regional Administrators shall protect
2551+11 the confidentiality of any personal information provided by
2552+12 program applicants regarding the applicant's status as a
2553+13 formerly incarcerated person or foster care recipient;
2554+14 however, the Department or Regional Administrators may publish
2555+15 aggregated data on the number of participants that were
2556+16 formerly incarcerated or foster care recipients so long as
2557+17 that publication protects the identities of those persons.
2558+18 Any person who applies to the program may elect not to
2559+19 share with the Department or Regional Administrators whether
2560+20 he or she is a graduate or currently enrolled in the foster
2561+21 care system or was formerly convicted.
2562+22 (d) Program elements for each Hub Site shall be provided
2563+23 by a community-based organization. The Department shall
2564+24 initially select a community-based organization in each Hub
2565+25 Site and shall subsequently select a community-based
2566+26 organization in each Hub Site every 3 years. Community-based
2567+
2568+
2569+
2570+
2571+
2572+ HB5005 Enrolled - 72 - LRB103 37016 SPS 67131 b
2573+
2574+
2575+HB5005 Enrolled- 73 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 73 - LRB103 37016 SPS 67131 b
2576+ HB5005 Enrolled - 73 - LRB103 37016 SPS 67131 b
2577+1 organizations delivering program elements outlined in
2578+2 subsection (e) may provide all elements required or may
2579+3 subcontract to other entities for provision of portions of
2580+4 program elements, including, but not limited to,
2581+5 administrative soft and hard skills for program participants,
2582+6 delivery of specific training in the core curriculum, or
2583+7 provision of other support functions for program delivery
2584+8 compliance.
2585+9 (e) The Clean Jobs Workforce Hubs Network shall:
2586+10 (1) coordinate with Energy Transition Navigators: (i)
2587+11 to increase participation in the Clean Jobs Workforce
2588+12 Network Program and clean energy and related sector
2589+13 workforce and training opportunities; (ii) coordinate
2590+14 recruitment, communications, and ongoing engagement with
2591+15 potential employers, including, but not limited to,
2592+16 activities such as job matchmaking initiatives, hosting
2593+17 events such as job fairs, and collaborating with other Hub
2594+18 Sites to identify and implement best practices for
2595+19 employer engagement; and (iii) leverage community-based
2596+20 organizations, educational institutions, and
2597+21 community-based and labor-based training providers to
2598+22 ensure program-eligible individuals across the State have
2599+23 dedicated and sustained support to enter and complete the
2600+24 career pipeline for clean energy and related sector jobs;
2601+25 (2) develop formal partnerships, including formal
2602+26 sector partnerships between community-based organizations
2603+
2604+
2605+
2606+
2607+
2608+ HB5005 Enrolled - 73 - LRB103 37016 SPS 67131 b
2609+
2610+
2611+HB5005 Enrolled- 74 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 74 - LRB103 37016 SPS 67131 b
2612+ HB5005 Enrolled - 74 - LRB103 37016 SPS 67131 b
2613+1 and entities that provide clean energy jobs, including
2614+2 businesses, nonprofit organizations, and worker-owned
2615+3 cooperatives, to ensure that Program participants have
2616+4 priority access to employment training and hiring
2617+5 opportunities; and
2618+6 (3) implement the Clean Jobs Curriculum to provide,
2619+7 including, but not limited to, training, certification
2620+8 preparation, job readiness, and skill development,
2621+9 including soft skills, math skills, technical skills,
2622+10 certification test preparation, and other development
2623+11 needed, to Program participants.
2624+12 (f) Funding for the Program is subject to appropriation
2625+13 from the Energy Transition Assistance Fund.
2626+14 (g) The Department shall require submission of quarterly
2627+15 reports, including program performance metrics by each Hub
2628+16 Site to the Regional Administrator of their Program Delivery
2629+17 Area. Program performance metrics include, but are not limited
2630+18 to:
2631+19 (1) demographic data, including racial, gender,
2632+20 residency in eligible communities, and geographic
2633+21 distribution data, on Program trainees entering and
2634+22 graduating the Program;
2635+23 (2) demographic data, including racial, gender,
2636+24 residency in eligible communities, and geographic
2637+25 distribution data, on Program trainees who are placed in
2638+26 employment, including the percentages of trainees by race,
2639+
2640+
2641+
2642+
2643+
2644+ HB5005 Enrolled - 74 - LRB103 37016 SPS 67131 b
2645+
2646+
2647+HB5005 Enrolled- 75 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 75 - LRB103 37016 SPS 67131 b
2648+ HB5005 Enrolled - 75 - LRB103 37016 SPS 67131 b
2649+1 gender, and geographic categories in each individual job
2650+2 type or category and whether employment is union,
2651+3 nonunion, or nonunion via temporary agency;
2652+4 (3) trainee job acquisition and retention statistics,
2653+5 including the duration of employment (start and end dates
2654+6 of hires) by race, gender, and geography;
2655+7 (4) hourly wages, including hourly overtime pay rate,
2656+8 and benefits of trainees placed into employment by race,
2657+9 gender, and geography;
2658+10 (5) percentage of jobs by race, gender, and geography
2659+11 held by Program trainees or graduates that are full-time
2660+12 equivalent positions, meaning that the position held is
2661+13 full-time, direct, and permanent based on 2,080 hours
2662+14 worked per year (paid directly by the employer, whose
2663+15 activities, schedule, and manner of work the employer
2664+16 controls, and receives pay and benefits in the same manner
2665+17 as permanent employees); and
2666+18 (6) qualitative data consisting of open-ended
2667+19 reporting on pertinent issues, including, but not limited
2668+20 to, qualitative descriptions accompanying metrics or
2669+21 identifying key successes and challenges.
2670+22 (h) Within 3 years after the effective date of this Act,
2671+23 the Department shall select an independent evaluator to review
2672+24 and prepare a report on the performance of the Program and
2673+25 Regional Administrators.
2674+26 (Source: P.A. 102-662, eff. 9-15-21.)
2675+
2676+
2677+
2678+
2679+
2680+ HB5005 Enrolled - 75 - LRB103 37016 SPS 67131 b
2681+
2682+
2683+HB5005 Enrolled- 76 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 76 - LRB103 37016 SPS 67131 b
2684+ HB5005 Enrolled - 76 - LRB103 37016 SPS 67131 b
2685+1 (20 ILCS 730/5-45)
2686+2 (Section scheduled to be repealed on September 15, 2045)
2687+3 Sec. 5-45. Clean Energy Contractor Incubator Program.
2688+4 (a) As used in this Section, "community-based
2689+5 organization" means a nonprofit organization, including an
2690+6 accredited public college or university that:
2691+7 (1) has a history of providing business-related
2692+8 assistance and knowledge to help entrepreneurs start, run,
2693+9 and grow their businesses;
2694+10 (2) has knowledge of construction and clean energy
2695+11 trades;
2696+12 (3) demonstrates relationships with local residents
2697+13 and other organizations serving the community; and
2698+14 (4) demonstrates the ability to effectively serve
2699+15 diverse and underrepresented populations.
2700+16 (b) Subject to appropriation, the Department shall
2701+17 develop, and through the Regional Administrators, administer
2702+18 the Clean Energy Contractor Incubator Program ("Program") to
2703+19 create a network of 14 13 Program delivery Hub Sites with
2704+20 program elements delivered by community-based organizations
2705+21 and their subcontractors geographically distributed across the
2706+22 State, including at least one Hub Site located in or near each
2707+23 of the following areas: Chicago (South Side), Chicago
2708+24 (Southwest and West Sides), Waukegan, Rockford, Aurora,
2709+25 Joliet, Peoria, Champaign, Danville, Decatur, Carbondale, East
2710+
2711+
2712+
2713+
2714+
2715+ HB5005 Enrolled - 76 - LRB103 37016 SPS 67131 b
2716+
2717+
2718+HB5005 Enrolled- 77 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 77 - LRB103 37016 SPS 67131 b
2719+ HB5005 Enrolled - 77 - LRB103 37016 SPS 67131 b
2720+1 St. Louis, Kankakee, and Alton.
2721+2 (c) In admitting program participants, for each Contractor
2722+3 Incubator Hub Site the Regional Administrators shall:
2723+4 (1) in each Hub Site where the applicant pool allows:
2724+5 (A) dedicate at least one-third of program
2725+6 placements to the owners of clean energy contractor
2726+7 businesses and nonprofits who reside in a geographic
2727+8 area that is impacted by economic and environmental
2728+9 challenges, defined as an area that is both (i) an R3
2729+10 Area, as defined pursuant to Section 10-40 of the
2730+11 Cannabis Regulation and Tax Act, and (ii) an
2731+12 environmental justice community, as defined by the
2732+13 Illinois Power Agency, excluding any racial or ethnic
2733+14 indicators used by the agency unless and until the
2734+15 constitutional basis for their inclusion in
2735+16 determining program admissions is established. Among
2736+17 applicants that satisfy these criteria, preference
2737+18 shall be given to applicants who face barriers to
2738+19 employment, such as low educational attainment, prior
2739+20 involvement with the criminal legal system, and
2740+21 language barriers; and applicants that are graduates
2741+22 of or currently enrolled in the foster care system;
2742+23 and
2743+24 (B) dedicate at least two-thirds of program
2744+25 placements to the owners of clean energy contractor
2745+26 businesses and nonprofits that satisfy the criteria in
2746+
2747+
2748+
2749+
2750+
2751+ HB5005 Enrolled - 77 - LRB103 37016 SPS 67131 b
2752+
2753+
2754+HB5005 Enrolled- 78 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 78 - LRB103 37016 SPS 67131 b
2755+ HB5005 Enrolled - 78 - LRB103 37016 SPS 67131 b
2756+1 paragraph (1) or who reside in eligible communities.
2757+2 Among applicants who live in eligible communities,
2758+3 preference shall be given to applicants who face
2759+4 barriers to employment, such as low educational
2760+5 attainment, prior involvement with the criminal legal
2761+6 system, and language barriers; and applicants that are
2762+7 graduates of or currently enrolled in the foster care
2763+8 system; and
2764+9 (2) prioritize the remaining program placements for:
2765+10 applicants who are displaced energy workers as defined in
2766+11 the Energy Community Reinvestment Act; persons who face
2767+12 barriers to employment, including low educational
2768+13 attainment, prior involvement with the criminal legal
2769+14 system, and language barriers; and applicants who are
2770+15 graduates of or currently enrolled in the foster care
2771+16 system, regardless of the applicants' area of residence.
2772+17 Consideration shall also be given to any current or past
2773+18 participant in the Clean Jobs Workforce Network Program,
2774+19 Illinois Climate Works Preapprenticeship Program, or Returning
2775+20 Residents Clean Energy Jobs Training Program.
2776+21 The Department and Regional Administrators shall protect
2777+22 the confidentiality of any personal information provided by
2778+23 program applicants regarding the applicant's status as a
2779+24 formerly incarcerated person or foster care recipient;
2780+25 however, the Department or Regional Administrators may publish
2781+26 aggregated data on the number of participants that were
2782+
2783+
2784+
2785+
2786+
2787+ HB5005 Enrolled - 78 - LRB103 37016 SPS 67131 b
2788+
2789+
2790+HB5005 Enrolled- 79 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 79 - LRB103 37016 SPS 67131 b
2791+ HB5005 Enrolled - 79 - LRB103 37016 SPS 67131 b
2792+1 formerly incarcerated or foster care recipients so long as
2793+2 that publication protects the identities of those persons.
2794+3 Any person who applies to the program may elect not to
2795+4 share with the Department or Regional Administrators whether
2796+5 he or she is a graduate or currently enrolled in the foster
2797+6 care system or was formerly convicted.
2798+7 (d) Program elements at each Hub Site shall be provided by
2799+8 a local community-based organization. The Department shall
2800+9 initially select a community-based organization in each Hub
2801+10 Site and shall subsequently select a community-based
2802+11 organization in each Hub Site every 3 years. Community-based
2803+12 organizations delivering program elements outlined in
2804+13 subsection (e) may provide all elements required or may
2805+14 subcontract to other entities for provision of portions of
2806+15 program elements, including, but not limited to,
2807+16 administrative soft and hard skills for program participants,
2808+17 delivery of specific training in the core curriculum, or
2809+18 provision of other support functions for program delivery
2810+19 compliance.
2811+20 (e) The Clean Energy Contractor Incubator Program shall:
2812+21 (1) provide access to low-cost capital for small clean
2813+22 energy businesses and contractors;
2814+23 (2) provide support for obtaining financial assurance,
2815+24 including, but not limited to: bonding; back office
2816+25 services; insurance, permits, training and certifications;
2817+26 business planning; and low-interest loans;
2818+
2819+
2820+
2821+
2822+
2823+ HB5005 Enrolled - 79 - LRB103 37016 SPS 67131 b
2824+
2825+
2826+HB5005 Enrolled- 80 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 80 - LRB103 37016 SPS 67131 b
2827+ HB5005 Enrolled - 80 - LRB103 37016 SPS 67131 b
2828+1 (3) train, mentor, and provide other support needed to
2829+2 allow participant contractors to: (i) build their
2830+3 businesses and connect to specific projects, (ii) register
2831+4 as approved vendors, (iii) engage in approved vendor
2832+5 subcontracting and qualified installer opportunities, (iv)
2833+6 develop partnering and networking skills, (v) compete for
2834+7 capital and other resources, and (vi) execute clean
2835+8 energy-related project installations and subcontracts;
2836+9 (4) ensure that participant contractors, community
2837+10 partners, and potential contractor clients are aware of
2838+11 and engaged in the Program;
2839+12 (5) connect participant contractors with the
2840+13 Department of Labor for resources, training, and technical
2841+14 support on prevailing wage compliance;
2842+15 (6) provide recruitment and ongoing engagement with
2843+16 entities that hire contractors and subcontractors,
2844+17 programs providing renewable energy resource-related
2845+18 projects, incentive programs, and approved vendor and
2846+19 qualified installer opportunities, including, but not
2847+20 limited to, activities such as matchmaking, events, and
2848+21 collaborating with other Hub Sites.
2849+22 (f) Funding for the Program and independent evaluations as
2850+23 described in subsection (h) are subject to appropriation from
2851+24 the Energy Transition Assistance Fund.
2852+25 (g) The Department shall require submission of quarterly
2853+26 reports including program performance metrics by each Hub Site
2854+
2855+
2856+
2857+
2858+
2859+ HB5005 Enrolled - 80 - LRB103 37016 SPS 67131 b
2860+
2861+
2862+HB5005 Enrolled- 81 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 81 - LRB103 37016 SPS 67131 b
2863+ HB5005 Enrolled - 81 - LRB103 37016 SPS 67131 b
2864+1 to the Regional Administrator of their Program Delivery Area.
2865+2 Program performance metrics include, but are not limited to:
2866+3 (1) demographic data including: race, gender,
2867+4 geographic location, R3 residency, Environmental Justice
2868+5 Community residency, foster care system participation, and
2869+6 justice-involvement for the owners of contractors
2870+7 applying, accepted into, and graduating from the Program;
2871+8 (2) the number of projects completed by participant
2872+9 contractors, alone or in partnership, by race, gender,
2873+10 geographic location, R3 residency, Environmental Justice
2874+11 Community residency, foster care system participation, and
2875+12 justice-involvement for the owners of contractors;
2876+13 (3) the number of partnerships with participant
2877+14 contractors that are expected to result in contracts for
2878+15 work by the participant contractor, by race, gender,
2879+16 geographic location, R3 residency, Environmental Justice
2880+17 Community residency, foster care system participation, and
2881+18 justice-involvement for the owners of contractors;
2882+19 (4) changes in participant contractors' business
2883+20 revenue, by race, gender, geographic location, R3
2884+21 residency, Environmental Justice Community residency,
2885+22 foster care system participation, and justice-involvement
2886+23 for the owners of contractors;
2887+24 (5) the number of new hires by participant
2888+25 contractors, by race, gender, geographic location, R3
2889+26 residency, Environmental Justice Community residency,
2890+
2891+
2892+
2893+
2894+
2895+ HB5005 Enrolled - 81 - LRB103 37016 SPS 67131 b
2896+
2897+
2898+HB5005 Enrolled- 82 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 82 - LRB103 37016 SPS 67131 b
2899+ HB5005 Enrolled - 82 - LRB103 37016 SPS 67131 b
2900+1 foster care system participation, and justice-involvement;
2901+2 (6) demographic data, including race, gender,
2902+3 geographic location, R3 residency, Environmental Justice
2903+4 Community residency, foster care system participation, and
2904+5 justice-involvement, and average wage data, for new hires
2905+6 by participant contractors;
2906+7 (7) certifications held by participant contractors,
2907+8 and number of participants holding each certification,
2908+9 including, but not limited to, registration under the
2909+10 Business Enterprise for Minorities, Women, and Persons
2910+11 with Disabilities Act program and other programs intended
2911+12 to certify BIPOC entities;
2912+13 (8) the number of Program sessions attended by
2913+14 participant contractors, aggregated by race; and
2914+15 (9) indicators relevant for assessing the general
2915+16 financial health of participant contractors.
2916+17 (h) Within 3 years after the effective date of this Act,
2917+18 the Department shall select an independent evaluator to review
2918+19 and prepare a report on the performance of the Program and
2919+20 Regional Administrators. The report shall be posted publicly.
2920+21 (Source: P.A. 102-662, eff. 9-15-21.)
2921+22 Section 20. The Illinois Income Tax Act is amended by
2922+23 changing Section 201 and by adding Section 241 as follows:
2923+24 (35 ILCS 5/201)
2924+
2925+
2926+
2927+
2928+
2929+ HB5005 Enrolled - 82 - LRB103 37016 SPS 67131 b
2930+
2931+
2932+HB5005 Enrolled- 83 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 83 - LRB103 37016 SPS 67131 b
2933+ HB5005 Enrolled - 83 - LRB103 37016 SPS 67131 b
2934+1 Sec. 201. Tax imposed.
2935+2 (a) In general. A tax measured by net income is hereby
2936+3 imposed on every individual, corporation, trust and estate for
2937+4 each taxable year ending after July 31, 1969 on the privilege
2938+5 of earning or receiving income in or as a resident of this
2939+6 State. Such tax shall be in addition to all other occupation or
2940+7 privilege taxes imposed by this State or by any municipal
2941+8 corporation or political subdivision thereof.
2942+9 (b) Rates. The tax imposed by subsection (a) of this
2943+10 Section shall be determined as follows, except as adjusted by
2944+11 subsection (d-1):
2945+12 (1) In the case of an individual, trust or estate, for
2946+13 taxable years ending prior to July 1, 1989, an amount
2947+14 equal to 2 1/2% of the taxpayer's net income for the
2948+15 taxable year.
2949+16 (2) In the case of an individual, trust or estate, for
2950+17 taxable years beginning prior to July 1, 1989 and ending
2951+18 after June 30, 1989, an amount equal to the sum of (i) 2
2952+19 1/2% of the taxpayer's net income for the period prior to
2953+20 July 1, 1989, as calculated under Section 202.3, and (ii)
2954+21 3% of the taxpayer's net income for the period after June
2955+22 30, 1989, as calculated under Section 202.3.
2956+23 (3) In the case of an individual, trust or estate, for
2957+24 taxable years beginning after June 30, 1989, and ending
2958+25 prior to January 1, 2011, an amount equal to 3% of the
2959+26 taxpayer's net income for the taxable year.
2960+
2961+
2962+
2963+
2964+
2965+ HB5005 Enrolled - 83 - LRB103 37016 SPS 67131 b
2966+
2967+
2968+HB5005 Enrolled- 84 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 84 - LRB103 37016 SPS 67131 b
2969+ HB5005 Enrolled - 84 - LRB103 37016 SPS 67131 b
2970+1 (4) In the case of an individual, trust, or estate,
2971+2 for taxable years beginning prior to January 1, 2011, and
2972+3 ending after December 31, 2010, an amount equal to the sum
2973+4 of (i) 3% of the taxpayer's net income for the period prior
2974+5 to January 1, 2011, as calculated under Section 202.5, and
2975+6 (ii) 5% of the taxpayer's net income for the period after
2976+7 December 31, 2010, as calculated under Section 202.5.
2977+8 (5) In the case of an individual, trust, or estate,
2978+9 for taxable years beginning on or after January 1, 2011,
2979+10 and ending prior to January 1, 2015, an amount equal to 5%
2980+11 of the taxpayer's net income for the taxable year.
2981+12 (5.1) In the case of an individual, trust, or estate,
2982+13 for taxable years beginning prior to January 1, 2015, and
2983+14 ending after December 31, 2014, an amount equal to the sum
2984+15 of (i) 5% of the taxpayer's net income for the period prior
2985+16 to January 1, 2015, as calculated under Section 202.5, and
2986+17 (ii) 3.75% of the taxpayer's net income for the period
2987+18 after December 31, 2014, as calculated under Section
2988+19 202.5.
2989+20 (5.2) In the case of an individual, trust, or estate,
2990+21 for taxable years beginning on or after January 1, 2015,
2991+22 and ending prior to July 1, 2017, an amount equal to 3.75%
2992+23 of the taxpayer's net income for the taxable year.
2993+24 (5.3) In the case of an individual, trust, or estate,
2994+25 for taxable years beginning prior to July 1, 2017, and
2995+26 ending after June 30, 2017, an amount equal to the sum of
2996+
2997+
2998+
2999+
3000+
3001+ HB5005 Enrolled - 84 - LRB103 37016 SPS 67131 b
3002+
3003+
3004+HB5005 Enrolled- 85 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 85 - LRB103 37016 SPS 67131 b
3005+ HB5005 Enrolled - 85 - LRB103 37016 SPS 67131 b
3006+1 (i) 3.75% of the taxpayer's net income for the period
3007+2 prior to July 1, 2017, as calculated under Section 202.5,
3008+3 and (ii) 4.95% of the taxpayer's net income for the period
3009+4 after June 30, 2017, as calculated under Section 202.5.
3010+5 (5.4) In the case of an individual, trust, or estate,
3011+6 for taxable years beginning on or after July 1, 2017, an
3012+7 amount equal to 4.95% of the taxpayer's net income for the
3013+8 taxable year.
3014+9 (6) In the case of a corporation, for taxable years
3015+10 ending prior to July 1, 1989, an amount equal to 4% of the
3016+11 taxpayer's net income for the taxable year.
3017+12 (7) In the case of a corporation, for taxable years
3018+13 beginning prior to July 1, 1989 and ending after June 30,
3019+14 1989, an amount equal to the sum of (i) 4% of the
3020+15 taxpayer's net income for the period prior to July 1,
3021+16 1989, as calculated under Section 202.3, and (ii) 4.8% of
3022+17 the taxpayer's net income for the period after June 30,
3023+18 1989, as calculated under Section 202.3.
3024+19 (8) In the case of a corporation, for taxable years
3025+20 beginning after June 30, 1989, and ending prior to January
3026+21 1, 2011, an amount equal to 4.8% of the taxpayer's net
3027+22 income for the taxable year.
3028+23 (9) In the case of a corporation, for taxable years
3029+24 beginning prior to January 1, 2011, and ending after
3030+25 December 31, 2010, an amount equal to the sum of (i) 4.8%
3031+26 of the taxpayer's net income for the period prior to
3032+
3033+
3034+
3035+
3036+
3037+ HB5005 Enrolled - 85 - LRB103 37016 SPS 67131 b
3038+
3039+
3040+HB5005 Enrolled- 86 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 86 - LRB103 37016 SPS 67131 b
3041+ HB5005 Enrolled - 86 - LRB103 37016 SPS 67131 b
3042+1 January 1, 2011, as calculated under Section 202.5, and
3043+2 (ii) 7% of the taxpayer's net income for the period after
3044+3 December 31, 2010, as calculated under Section 202.5.
3045+4 (10) In the case of a corporation, for taxable years
3046+5 beginning on or after January 1, 2011, and ending prior to
3047+6 January 1, 2015, an amount equal to 7% of the taxpayer's
3048+7 net income for the taxable year.
3049+8 (11) In the case of a corporation, for taxable years
3050+9 beginning prior to January 1, 2015, and ending after
3051+10 December 31, 2014, an amount equal to the sum of (i) 7% of
3052+11 the taxpayer's net income for the period prior to January
3053+12 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
3054+13 of the taxpayer's net income for the period after December
3055+14 31, 2014, as calculated under Section 202.5.
3056+15 (12) In the case of a corporation, for taxable years
3057+16 beginning on or after January 1, 2015, and ending prior to
3058+17 July 1, 2017, an amount equal to 5.25% of the taxpayer's
3059+18 net income for the taxable year.
3060+19 (13) In the case of a corporation, for taxable years
3061+20 beginning prior to July 1, 2017, and ending after June 30,
3062+21 2017, an amount equal to the sum of (i) 5.25% of the
3063+22 taxpayer's net income for the period prior to July 1,
3064+23 2017, as calculated under Section 202.5, and (ii) 7% of
3065+24 the taxpayer's net income for the period after June 30,
3066+25 2017, as calculated under Section 202.5.
3067+26 (14) In the case of a corporation, for taxable years
3068+
3069+
3070+
3071+
3072+
3073+ HB5005 Enrolled - 86 - LRB103 37016 SPS 67131 b
3074+
3075+
3076+HB5005 Enrolled- 87 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 87 - LRB103 37016 SPS 67131 b
3077+ HB5005 Enrolled - 87 - LRB103 37016 SPS 67131 b
3078+1 beginning on or after July 1, 2017, an amount equal to 7%
3079+2 of the taxpayer's net income for the taxable year.
3080+3 The rates under this subsection (b) are subject to the
3081+4 provisions of Section 201.5.
3082+5 (b-5) Surcharge; sale or exchange of assets, properties,
3083+6 and intangibles of organization gaming licensees. For each of
3084+7 taxable years 2019 through 2027, a surcharge is imposed on all
3085+8 taxpayers on income arising from the sale or exchange of
3086+9 capital assets, depreciable business property, real property
3087+10 used in the trade or business, and Section 197 intangibles (i)
3088+11 of an organization licensee under the Illinois Horse Racing
3089+12 Act of 1975 and (ii) of an organization gaming licensee under
3090+13 the Illinois Gambling Act. The amount of the surcharge is
3091+14 equal to the amount of federal income tax liability for the
3092+15 taxable year attributable to those sales and exchanges. The
3093+16 surcharge imposed shall not apply if:
3094+17 (1) the organization gaming license, organization
3095+18 license, or racetrack property is transferred as a result
3096+19 of any of the following:
3097+20 (A) bankruptcy, a receivership, or a debt
3098+21 adjustment initiated by or against the initial
3099+22 licensee or the substantial owners of the initial
3100+23 licensee;
3101+24 (B) cancellation, revocation, or termination of
3102+25 any such license by the Illinois Gaming Board or the
3103+26 Illinois Racing Board;
3104+
3105+
3106+
3107+
3108+
3109+ HB5005 Enrolled - 87 - LRB103 37016 SPS 67131 b
3110+
3111+
3112+HB5005 Enrolled- 88 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 88 - LRB103 37016 SPS 67131 b
3113+ HB5005 Enrolled - 88 - LRB103 37016 SPS 67131 b
3114+1 (C) a determination by the Illinois Gaming Board
3115+2 that transfer of the license is in the best interests
3116+3 of Illinois gaming;
3117+4 (D) the death of an owner of the equity interest in
3118+5 a licensee;
3119+6 (E) the acquisition of a controlling interest in
3120+7 the stock or substantially all of the assets of a
3121+8 publicly traded company;
3122+9 (F) a transfer by a parent company to a wholly
3123+10 owned subsidiary; or
3124+11 (G) the transfer or sale to or by one person to
3125+12 another person where both persons were initial owners
3126+13 of the license when the license was issued; or
3127+14 (2) the controlling interest in the organization
3128+15 gaming license, organization license, or racetrack
3129+16 property is transferred in a transaction to lineal
3130+17 descendants in which no gain or loss is recognized or as a
3131+18 result of a transaction in accordance with Section 351 of
3132+19 the Internal Revenue Code in which no gain or loss is
3133+20 recognized; or
3134+21 (3) live horse racing was not conducted in 2010 at a
3135+22 racetrack located within 3 miles of the Mississippi River
3136+23 under a license issued pursuant to the Illinois Horse
3137+24 Racing Act of 1975.
3138+25 The transfer of an organization gaming license,
3139+26 organization license, or racetrack property by a person other
3140+
3141+
3142+
3143+
3144+
3145+ HB5005 Enrolled - 88 - LRB103 37016 SPS 67131 b
3146+
3147+
3148+HB5005 Enrolled- 89 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 89 - LRB103 37016 SPS 67131 b
3149+ HB5005 Enrolled - 89 - LRB103 37016 SPS 67131 b
3150+1 than the initial licensee to receive the organization gaming
3151+2 license is not subject to a surcharge. The Department shall
3152+3 adopt rules necessary to implement and administer this
3153+4 subsection.
3154+5 (c) Personal Property Tax Replacement Income Tax.
3155+6 Beginning on July 1, 1979 and thereafter, in addition to such
3156+7 income tax, there is also hereby imposed the Personal Property
3157+8 Tax Replacement Income Tax measured by net income on every
3158+9 corporation (including Subchapter S corporations), partnership
3159+10 and trust, for each taxable year ending after June 30, 1979.
3160+11 Such taxes are imposed on the privilege of earning or
3161+12 receiving income in or as a resident of this State. The
3162+13 Personal Property Tax Replacement Income Tax shall be in
3163+14 addition to the income tax imposed by subsections (a) and (b)
3164+15 of this Section and in addition to all other occupation or
3165+16 privilege taxes imposed by this State or by any municipal
3166+17 corporation or political subdivision thereof.
3167+18 (d) Additional Personal Property Tax Replacement Income
3168+19 Tax Rates. The personal property tax replacement income tax
3169+20 imposed by this subsection and subsection (c) of this Section
3170+21 in the case of a corporation, other than a Subchapter S
3171+22 corporation and except as adjusted by subsection (d-1), shall
3172+23 be an additional amount equal to 2.85% of such taxpayer's net
3173+24 income for the taxable year, except that beginning on January
3174+25 1, 1981, and thereafter, the rate of 2.85% specified in this
3175+26 subsection shall be reduced to 2.5%, and in the case of a
3176+
3177+
3178+
3179+
3180+
3181+ HB5005 Enrolled - 89 - LRB103 37016 SPS 67131 b
3182+
3183+
3184+HB5005 Enrolled- 90 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 90 - LRB103 37016 SPS 67131 b
3185+ HB5005 Enrolled - 90 - LRB103 37016 SPS 67131 b
3186+1 partnership, trust or a Subchapter S corporation shall be an
3187+2 additional amount equal to 1.5% of such taxpayer's net income
3188+3 for the taxable year.
3189+4 (d-1) Rate reduction for certain foreign insurers. In the
3190+5 case of a foreign insurer, as defined by Section 35A-5 of the
3191+6 Illinois Insurance Code, whose state or country of domicile
3192+7 imposes on insurers domiciled in Illinois a retaliatory tax
3193+8 (excluding any insurer whose premiums from reinsurance assumed
3194+9 are 50% or more of its total insurance premiums as determined
3195+10 under paragraph (2) of subsection (b) of Section 304, except
3196+11 that for purposes of this determination premiums from
3197+12 reinsurance do not include premiums from inter-affiliate
3198+13 reinsurance arrangements), beginning with taxable years ending
3199+14 on or after December 31, 1999, the sum of the rates of tax
3200+15 imposed by subsections (b) and (d) shall be reduced (but not
3201+16 increased) to the rate at which the total amount of tax imposed
3202+17 under this Act, net of all credits allowed under this Act,
3203+18 shall equal (i) the total amount of tax that would be imposed
3204+19 on the foreign insurer's net income allocable to Illinois for
3205+20 the taxable year by such foreign insurer's state or country of
3206+21 domicile if that net income were subject to all income taxes
3207+22 and taxes measured by net income imposed by such foreign
3208+23 insurer's state or country of domicile, net of all credits
3209+24 allowed or (ii) a rate of zero if no such tax is imposed on
3210+25 such income by the foreign insurer's state of domicile. For
3211+26 the purposes of this subsection (d-1), an inter-affiliate
3212+
3213+
3214+
3215+
3216+
3217+ HB5005 Enrolled - 90 - LRB103 37016 SPS 67131 b
3218+
3219+
3220+HB5005 Enrolled- 91 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 91 - LRB103 37016 SPS 67131 b
3221+ HB5005 Enrolled - 91 - LRB103 37016 SPS 67131 b
3222+1 includes a mutual insurer under common management.
3223+2 (1) For the purposes of subsection (d-1), in no event
3224+3 shall the sum of the rates of tax imposed by subsections
3225+4 (b) and (d) be reduced below the rate at which the sum of:
3226+5 (A) the total amount of tax imposed on such
3227+6 foreign insurer under this Act for a taxable year, net
3228+7 of all credits allowed under this Act, plus
3229+8 (B) the privilege tax imposed by Section 409 of
3230+9 the Illinois Insurance Code, the fire insurance
3231+10 company tax imposed by Section 12 of the Fire
3232+11 Investigation Act, and the fire department taxes
3233+12 imposed under Section 11-10-1 of the Illinois
3234+13 Municipal Code,
3235+14 equals 1.25% for taxable years ending prior to December
3236+15 31, 2003, or 1.75% for taxable years ending on or after
3237+16 December 31, 2003, of the net taxable premiums written for
3238+17 the taxable year, as described by subsection (1) of
3239+18 Section 409 of the Illinois Insurance Code. This paragraph
3240+19 will in no event increase the rates imposed under
3241+20 subsections (b) and (d).
3242+21 (2) Any reduction in the rates of tax imposed by this
3243+22 subsection shall be applied first against the rates
3244+23 imposed by subsection (b) and only after the tax imposed
3245+24 by subsection (a) net of all credits allowed under this
3246+25 Section other than the credit allowed under subsection (i)
3247+26 has been reduced to zero, against the rates imposed by
3248+
3249+
3250+
3251+
3252+
3253+ HB5005 Enrolled - 91 - LRB103 37016 SPS 67131 b
3254+
3255+
3256+HB5005 Enrolled- 92 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 92 - LRB103 37016 SPS 67131 b
3257+ HB5005 Enrolled - 92 - LRB103 37016 SPS 67131 b
3258+1 subsection (d).
3259+2 This subsection (d-1) is exempt from the provisions of
3260+3 Section 250.
3261+4 (e) Investment credit. A taxpayer shall be allowed a
3262+5 credit against the Personal Property Tax Replacement Income
3263+6 Tax for investment in qualified property.
3264+7 (1) A taxpayer shall be allowed a credit equal to .5%
3265+8 of the basis of qualified property placed in service
3266+9 during the taxable year, provided such property is placed
3267+10 in service on or after July 1, 1984. There shall be allowed
3268+11 an additional credit equal to .5% of the basis of
3269+12 qualified property placed in service during the taxable
3270+13 year, provided such property is placed in service on or
3271+14 after July 1, 1986, and the taxpayer's base employment
3272+15 within Illinois has increased by 1% or more over the
3273+16 preceding year as determined by the taxpayer's employment
3274+17 records filed with the Illinois Department of Employment
3275+18 Security. Taxpayers who are new to Illinois shall be
3276+19 deemed to have met the 1% growth in base employment for the
3277+20 first year in which they file employment records with the
3278+21 Illinois Department of Employment Security. The provisions
3279+22 added to this Section by Public Act 85-1200 (and restored
3280+23 by Public Act 87-895) shall be construed as declaratory of
3281+24 existing law and not as a new enactment. If, in any year,
3282+25 the increase in base employment within Illinois over the
3283+26 preceding year is less than 1%, the additional credit
3284+
3285+
3286+
3287+
3288+
3289+ HB5005 Enrolled - 92 - LRB103 37016 SPS 67131 b
3290+
3291+
3292+HB5005 Enrolled- 93 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 93 - LRB103 37016 SPS 67131 b
3293+ HB5005 Enrolled - 93 - LRB103 37016 SPS 67131 b
3294+1 shall be limited to that percentage times a fraction, the
3295+2 numerator of which is .5% and the denominator of which is
3296+3 1%, but shall not exceed .5%. The investment credit shall
3297+4 not be allowed to the extent that it would reduce a
3298+5 taxpayer's liability in any tax year below zero, nor may
3299+6 any credit for qualified property be allowed for any year
3300+7 other than the year in which the property was placed in
3301+8 service in Illinois. For tax years ending on or after
3302+9 December 31, 1987, and on or before December 31, 1988, the
3303+10 credit shall be allowed for the tax year in which the
3304+11 property is placed in service, or, if the amount of the
3305+12 credit exceeds the tax liability for that year, whether it
3306+13 exceeds the original liability or the liability as later
3307+14 amended, such excess may be carried forward and applied to
3308+15 the tax liability of the 5 taxable years following the
3309+16 excess credit years if the taxpayer (i) makes investments
3310+17 which cause the creation of a minimum of 2,000 full-time
3311+18 equivalent jobs in Illinois, (ii) is located in an
3312+19 enterprise zone established pursuant to the Illinois
3313+20 Enterprise Zone Act and (iii) is certified by the
3314+21 Department of Commerce and Community Affairs (now
3315+22 Department of Commerce and Economic Opportunity) as
3316+23 complying with the requirements specified in clause (i)
3317+24 and (ii) by July 1, 1986. The Department of Commerce and
3318+25 Community Affairs (now Department of Commerce and Economic
3319+26 Opportunity) shall notify the Department of Revenue of all
3320+
3321+
3322+
3323+
3324+
3325+ HB5005 Enrolled - 93 - LRB103 37016 SPS 67131 b
3326+
3327+
3328+HB5005 Enrolled- 94 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 94 - LRB103 37016 SPS 67131 b
3329+ HB5005 Enrolled - 94 - LRB103 37016 SPS 67131 b
3330+1 such certifications immediately. For tax years ending
3331+2 after December 31, 1988, the credit shall be allowed for
3332+3 the tax year in which the property is placed in service,
3333+4 or, if the amount of the credit exceeds the tax liability
3334+5 for that year, whether it exceeds the original liability
3335+6 or the liability as later amended, such excess may be
3336+7 carried forward and applied to the tax liability of the 5
3337+8 taxable years following the excess credit years. The
3338+9 credit shall be applied to the earliest year for which
3339+10 there is a liability. If there is credit from more than one
3340+11 tax year that is available to offset a liability, earlier
3341+12 credit shall be applied first.
3342+13 (2) The term "qualified property" means property
3343+14 which:
3344+15 (A) is tangible, whether new or used, including
3345+16 buildings and structural components of buildings and
3346+17 signs that are real property, but not including land
3347+18 or improvements to real property that are not a
3348+19 structural component of a building such as
3349+20 landscaping, sewer lines, local access roads, fencing,
3350+21 parking lots, and other appurtenances;
3351+22 (B) is depreciable pursuant to Section 167 of the
3352+23 Internal Revenue Code, except that "3-year property"
3353+24 as defined in Section 168(c)(2)(A) of that Code is not
3354+25 eligible for the credit provided by this subsection
3355+26 (e);
3356+
3357+
3358+
3359+
3360+
3361+ HB5005 Enrolled - 94 - LRB103 37016 SPS 67131 b
3362+
3363+
3364+HB5005 Enrolled- 95 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 95 - LRB103 37016 SPS 67131 b
3365+ HB5005 Enrolled - 95 - LRB103 37016 SPS 67131 b
3366+1 (C) is acquired by purchase as defined in Section
3367+2 179(d) of the Internal Revenue Code;
3368+3 (D) is used in Illinois by a taxpayer who is
3369+4 primarily engaged in manufacturing, or in mining coal
3370+5 or fluorite, or in retailing, or was placed in service
3371+6 on or after July 1, 2006 in a River Edge Redevelopment
3372+7 Zone established pursuant to the River Edge
3373+8 Redevelopment Zone Act; and
3374+9 (E) has not previously been used in Illinois in
3375+10 such a manner and by such a person as would qualify for
3376+11 the credit provided by this subsection (e) or
3377+12 subsection (f).
3378+13 (3) For purposes of this subsection (e),
3379+14 "manufacturing" means the material staging and production
3380+15 of tangible personal property by procedures commonly
3381+16 regarded as manufacturing, processing, fabrication, or
3382+17 assembling which changes some existing material into new
3383+18 shapes, new qualities, or new combinations. For purposes
3384+19 of this subsection (e) the term "mining" shall have the
3385+20 same meaning as the term "mining" in Section 613(c) of the
3386+21 Internal Revenue Code. For purposes of this subsection
3387+22 (e), the term "retailing" means the sale of tangible
3388+23 personal property for use or consumption and not for
3389+24 resale, or services rendered in conjunction with the sale
3390+25 of tangible personal property for use or consumption and
3391+26 not for resale. For purposes of this subsection (e),
3392+
3393+
3394+
3395+
3396+
3397+ HB5005 Enrolled - 95 - LRB103 37016 SPS 67131 b
3398+
3399+
3400+HB5005 Enrolled- 96 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 96 - LRB103 37016 SPS 67131 b
3401+ HB5005 Enrolled - 96 - LRB103 37016 SPS 67131 b
3402+1 "tangible personal property" has the same meaning as when
3403+2 that term is used in the Retailers' Occupation Tax Act,
3404+3 and, for taxable years ending after December 31, 2008,
3405+4 does not include the generation, transmission, or
3406+5 distribution of electricity.
3407+6 (4) The basis of qualified property shall be the basis
3408+7 used to compute the depreciation deduction for federal
3409+8 income tax purposes.
3410+9 (5) If the basis of the property for federal income
3411+10 tax depreciation purposes is increased after it has been
3412+11 placed in service in Illinois by the taxpayer, the amount
3413+12 of such increase shall be deemed property placed in
3414+13 service on the date of such increase in basis.
3415+14 (6) The term "placed in service" shall have the same
3416+15 meaning as under Section 46 of the Internal Revenue Code.
3417+16 (7) If during any taxable year, any property ceases to
3418+17 be qualified property in the hands of the taxpayer within
3419+18 48 months after being placed in service, or the situs of
3420+19 any qualified property is moved outside Illinois within 48
3421+20 months after being placed in service, the Personal
3422+21 Property Tax Replacement Income Tax for such taxable year
3423+22 shall be increased. Such increase shall be determined by
3424+23 (i) recomputing the investment credit which would have
3425+24 been allowed for the year in which credit for such
3426+25 property was originally allowed by eliminating such
3427+26 property from such computation and, (ii) subtracting such
3428+
3429+
3430+
3431+
3432+
3433+ HB5005 Enrolled - 96 - LRB103 37016 SPS 67131 b
3434+
3435+
3436+HB5005 Enrolled- 97 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 97 - LRB103 37016 SPS 67131 b
3437+ HB5005 Enrolled - 97 - LRB103 37016 SPS 67131 b
3438+1 recomputed credit from the amount of credit previously
3439+2 allowed. For the purposes of this paragraph (7), a
3440+3 reduction of the basis of qualified property resulting
3441+4 from a redetermination of the purchase price shall be
3442+5 deemed a disposition of qualified property to the extent
3443+6 of such reduction.
3444+7 (8) Unless the investment credit is extended by law,
3445+8 the basis of qualified property shall not include costs
3446+9 incurred after December 31, 2018, except for costs
3447+10 incurred pursuant to a binding contract entered into on or
3448+11 before December 31, 2018.
3449+12 (9) Each taxable year ending before December 31, 2000,
3450+13 a partnership may elect to pass through to its partners
3451+14 the credits to which the partnership is entitled under
3452+15 this subsection (e) for the taxable year. A partner may
3453+16 use the credit allocated to him or her under this
3454+17 paragraph only against the tax imposed in subsections (c)
3455+18 and (d) of this Section. If the partnership makes that
3456+19 election, those credits shall be allocated among the
3457+20 partners in the partnership in accordance with the rules
3458+21 set forth in Section 704(b) of the Internal Revenue Code,
3459+22 and the rules promulgated under that Section, and the
3460+23 allocated amount of the credits shall be allowed to the
3461+24 partners for that taxable year. The partnership shall make
3462+25 this election on its Personal Property Tax Replacement
3463+26 Income Tax return for that taxable year. The election to
3464+
3465+
3466+
3467+
3468+
3469+ HB5005 Enrolled - 97 - LRB103 37016 SPS 67131 b
3470+
3471+
3472+HB5005 Enrolled- 98 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 98 - LRB103 37016 SPS 67131 b
3473+ HB5005 Enrolled - 98 - LRB103 37016 SPS 67131 b
3474+1 pass through the credits shall be irrevocable.
3475+2 For taxable years ending on or after December 31,
3476+3 2000, a partner that qualifies its partnership for a
3477+4 subtraction under subparagraph (I) of paragraph (2) of
3478+5 subsection (d) of Section 203 or a shareholder that
3479+6 qualifies a Subchapter S corporation for a subtraction
3480+7 under subparagraph (S) of paragraph (2) of subsection (b)
3481+8 of Section 203 shall be allowed a credit under this
3482+9 subsection (e) equal to its share of the credit earned
3483+10 under this subsection (e) during the taxable year by the
3484+11 partnership or Subchapter S corporation, determined in
3485+12 accordance with the determination of income and
3486+13 distributive share of income under Sections 702 and 704
3487+14 and Subchapter S of the Internal Revenue Code. This
3488+15 paragraph is exempt from the provisions of Section 250.
3489+16 (f) Investment credit; Enterprise Zone; River Edge
3490+17 Redevelopment Zone.
3491+18 (1) A taxpayer shall be allowed a credit against the
3492+19 tax imposed by subsections (a) and (b) of this Section for
3493+20 investment in qualified property which is placed in
3494+21 service in an Enterprise Zone created pursuant to the
3495+22 Illinois Enterprise Zone Act or, for property placed in
3496+23 service on or after July 1, 2006, a River Edge
3497+24 Redevelopment Zone established pursuant to the River Edge
3498+25 Redevelopment Zone Act. For partners, shareholders of
3499+26 Subchapter S corporations, and owners of limited liability
3500+
3501+
3502+
3503+
3504+
3505+ HB5005 Enrolled - 98 - LRB103 37016 SPS 67131 b
3506+
3507+
3508+HB5005 Enrolled- 99 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 99 - LRB103 37016 SPS 67131 b
3509+ HB5005 Enrolled - 99 - LRB103 37016 SPS 67131 b
3510+1 companies, if the liability company is treated as a
3511+2 partnership for purposes of federal and State income
3512+3 taxation, for taxable years ending before December 31,
3513+4 2023, there shall be allowed a credit under this
3514+5 subsection (f) to be determined in accordance with the
3515+6 determination of income and distributive share of income
3516+7 under Sections 702 and 704 and Subchapter S of the
3517+8 Internal Revenue Code. For taxable years ending on or
3518+9 after December 31, 2023, for partners and shareholders of
3519+10 Subchapter S corporations, the provisions of Section 251
3520+11 shall apply with respect to the credit under this
3521+12 subsection. The credit shall be .5% of the basis for such
3522+13 property. The credit shall be available only in the
3523+14 taxable year in which the property is placed in service in
3524+15 the Enterprise Zone or River Edge Redevelopment Zone and
3525+16 shall not be allowed to the extent that it would reduce a
3526+17 taxpayer's liability for the tax imposed by subsections
3527+18 (a) and (b) of this Section to below zero. For tax years
3528+19 ending on or after December 31, 1985, the credit shall be
3529+20 allowed for the tax year in which the property is placed in
3530+21 service, or, if the amount of the credit exceeds the tax
3531+22 liability for that year, whether it exceeds the original
3532+23 liability or the liability as later amended, such excess
3533+24 may be carried forward and applied to the tax liability of
3534+25 the 5 taxable years following the excess credit year. The
3535+26 credit shall be applied to the earliest year for which
3536+
3537+
3538+
3539+
3540+
3541+ HB5005 Enrolled - 99 - LRB103 37016 SPS 67131 b
3542+
3543+
3544+HB5005 Enrolled- 100 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 100 - LRB103 37016 SPS 67131 b
3545+ HB5005 Enrolled - 100 - LRB103 37016 SPS 67131 b
3546+1 there is a liability. If there is credit from more than one
3547+2 tax year that is available to offset a liability, the
3548+3 credit accruing first in time shall be applied first.
3549+4 (2) The term qualified property means property which:
3550+5 (A) is tangible, whether new or used, including
3551+6 buildings and structural components of buildings;
3552+7 (B) is depreciable pursuant to Section 167 of the
3553+8 Internal Revenue Code, except that "3-year property"
3554+9 as defined in Section 168(c)(2)(A) of that Code is not
3555+10 eligible for the credit provided by this subsection
3556+11 (f);
3557+12 (C) is acquired by purchase as defined in Section
3558+13 179(d) of the Internal Revenue Code;
3559+14 (D) is used in the Enterprise Zone or River Edge
3560+15 Redevelopment Zone by the taxpayer; and
3561+16 (E) has not been previously used in Illinois in
3562+17 such a manner and by such a person as would qualify for
3563+18 the credit provided by this subsection (f) or
3564+19 subsection (e).
3565+20 (3) The basis of qualified property shall be the basis
3566+21 used to compute the depreciation deduction for federal
3567+22 income tax purposes.
3568+23 (4) If the basis of the property for federal income
3569+24 tax depreciation purposes is increased after it has been
3570+25 placed in service in the Enterprise Zone or River Edge
3571+26 Redevelopment Zone by the taxpayer, the amount of such
3572+
3573+
3574+
3575+
3576+
3577+ HB5005 Enrolled - 100 - LRB103 37016 SPS 67131 b
3578+
3579+
3580+HB5005 Enrolled- 101 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 101 - LRB103 37016 SPS 67131 b
3581+ HB5005 Enrolled - 101 - LRB103 37016 SPS 67131 b
3582+1 increase shall be deemed property placed in service on the
3583+2 date of such increase in basis.
3584+3 (5) The term "placed in service" shall have the same
3585+4 meaning as under Section 46 of the Internal Revenue Code.
3586+5 (6) If during any taxable year, any property ceases to
3587+6 be qualified property in the hands of the taxpayer within
3588+7 48 months after being placed in service, or the situs of
3589+8 any qualified property is moved outside the Enterprise
3590+9 Zone or River Edge Redevelopment Zone within 48 months
3591+10 after being placed in service, the tax imposed under
3592+11 subsections (a) and (b) of this Section for such taxable
3593+12 year shall be increased. Such increase shall be determined
3594+13 by (i) recomputing the investment credit which would have
3595+14 been allowed for the year in which credit for such
3596+15 property was originally allowed by eliminating such
3597+16 property from such computation, and (ii) subtracting such
3598+17 recomputed credit from the amount of credit previously
3599+18 allowed. For the purposes of this paragraph (6), a
3600+19 reduction of the basis of qualified property resulting
3601+20 from a redetermination of the purchase price shall be
3602+21 deemed a disposition of qualified property to the extent
3603+22 of such reduction.
3604+23 (7) There shall be allowed an additional credit equal
3605+24 to 0.5% of the basis of qualified property placed in
3606+25 service during the taxable year in a River Edge
3607+26 Redevelopment Zone, provided such property is placed in
3608+
3609+
3610+
3611+
3612+
3613+ HB5005 Enrolled - 101 - LRB103 37016 SPS 67131 b
3614+
3615+
3616+HB5005 Enrolled- 102 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 102 - LRB103 37016 SPS 67131 b
3617+ HB5005 Enrolled - 102 - LRB103 37016 SPS 67131 b
3618+1 service on or after July 1, 2006, and the taxpayer's base
3619+2 employment within Illinois has increased by 1% or more
3620+3 over the preceding year as determined by the taxpayer's
3621+4 employment records filed with the Illinois Department of
3622+5 Employment Security. Taxpayers who are new to Illinois
3623+6 shall be deemed to have met the 1% growth in base
3624+7 employment for the first year in which they file
3625+8 employment records with the Illinois Department of
3626+9 Employment Security. If, in any year, the increase in base
3627+10 employment within Illinois over the preceding year is less
3628+11 than 1%, the additional credit shall be limited to that
3629+12 percentage times a fraction, the numerator of which is
3630+13 0.5% and the denominator of which is 1%, but shall not
3631+14 exceed 0.5%.
3632+15 (8) For taxable years beginning on or after January 1,
3633+16 2021, there shall be allowed an Enterprise Zone
3634+17 construction jobs credit against the taxes imposed under
3635+18 subsections (a) and (b) of this Section as provided in
3636+19 Section 13 of the Illinois Enterprise Zone Act.
3637+20 The credit or credits may not reduce the taxpayer's
3638+21 liability to less than zero. If the amount of the credit or
3639+22 credits exceeds the taxpayer's liability, the excess may
3640+23 be carried forward and applied against the taxpayer's
3641+24 liability in succeeding calendar years in the same manner
3642+25 provided under paragraph (4) of Section 211 of this Act.
3643+26 The credit or credits shall be applied to the earliest
3644+
3645+
3646+
3647+
3648+
3649+ HB5005 Enrolled - 102 - LRB103 37016 SPS 67131 b
3650+
3651+
3652+HB5005 Enrolled- 103 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 103 - LRB103 37016 SPS 67131 b
3653+ HB5005 Enrolled - 103 - LRB103 37016 SPS 67131 b
3654+1 year for which there is a tax liability. If there are
3655+2 credits from more than one taxable year that are available
3656+3 to offset a liability, the earlier credit shall be applied
3657+4 first.
3658+5 For partners, shareholders of Subchapter S
3659+6 corporations, and owners of limited liability companies,
3660+7 if the liability company is treated as a partnership for
3661+8 the purposes of federal and State income taxation, for
3662+9 taxable years ending before December 31, 2023, there shall
3663+10 be allowed a credit under this Section to be determined in
3664+11 accordance with the determination of income and
3665+12 distributive share of income under Sections 702 and 704
3666+13 and Subchapter S of the Internal Revenue Code. For taxable
3667+14 years ending on or after December 31, 2023, for partners
3668+15 and shareholders of Subchapter S corporations, the
3669+16 provisions of Section 251 shall apply with respect to the
3670+17 credit under this subsection.
3671+18 The total aggregate amount of credits awarded under
3672+19 the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
3673+20 shall not exceed $20,000,000 in any State fiscal year.
3674+21 This paragraph (8) is exempt from the provisions of
3675+22 Section 250.
3676+23 (g) (Blank).
3677+24 (h) Investment credit; High Impact Business.
3678+25 (1) Subject to subsections (b) and (b-5) of Section
3679+26 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
3680+
3681+
3682+
3683+
3684+
3685+ HB5005 Enrolled - 103 - LRB103 37016 SPS 67131 b
3686+
3687+
3688+HB5005 Enrolled- 104 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 104 - LRB103 37016 SPS 67131 b
3689+ HB5005 Enrolled - 104 - LRB103 37016 SPS 67131 b
3690+1 be allowed a credit against the tax imposed by subsections
3691+2 (a) and (b) of this Section for investment in qualified
3692+3 property which is placed in service by a Department of
3693+4 Commerce and Economic Opportunity designated High Impact
3694+5 Business. The credit shall be .5% of the basis for such
3695+6 property. The credit shall not be available (i) until the
3696+7 minimum investments in qualified property set forth in
3697+8 subdivision (a)(3)(A) of Section 5.5 of the Illinois
3698+9 Enterprise Zone Act have been satisfied or (ii) until the
3699+10 time authorized in subsection (b-5) of the Illinois
3700+11 Enterprise Zone Act for entities designated as High Impact
3701+12 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
3702+13 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
3703+14 Act, and shall not be allowed to the extent that it would
3704+15 reduce a taxpayer's liability for the tax imposed by
3705+16 subsections (a) and (b) of this Section to below zero. The
3706+17 credit applicable to such investments shall be taken in
3707+18 the taxable year in which such investments have been
3708+19 completed. The credit for additional investments beyond
3709+20 the minimum investment by a designated high impact
3710+21 business authorized under subdivision (a)(3)(A) of Section
3711+22 5.5 of the Illinois Enterprise Zone Act shall be available
3712+23 only in the taxable year in which the property is placed in
3713+24 service and shall not be allowed to the extent that it
3714+25 would reduce a taxpayer's liability for the tax imposed by
3715+26 subsections (a) and (b) of this Section to below zero. For
3716+
3717+
3718+
3719+
3720+
3721+ HB5005 Enrolled - 104 - LRB103 37016 SPS 67131 b
3722+
3723+
3724+HB5005 Enrolled- 105 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 105 - LRB103 37016 SPS 67131 b
3725+ HB5005 Enrolled - 105 - LRB103 37016 SPS 67131 b
3726+1 tax years ending on or after December 31, 1987, the credit
3727+2 shall be allowed for the tax year in which the property is
3728+3 placed in service, or, if the amount of the credit exceeds
3729+4 the tax liability for that year, whether it exceeds the
3730+5 original liability or the liability as later amended, such
3731+6 excess may be carried forward and applied to the tax
3732+7 liability of the 5 taxable years following the excess
3733+8 credit year. The credit shall be applied to the earliest
3734+9 year for which there is a liability. If there is credit
3735+10 from more than one tax year that is available to offset a
3736+11 liability, the credit accruing first in time shall be
3737+12 applied first.
3738+13 Changes made in this subdivision (h)(1) by Public Act
3739+14 88-670 restore changes made by Public Act 85-1182 and
3740+15 reflect existing law.
3741+16 (2) The term qualified property means property which:
3742+17 (A) is tangible, whether new or used, including
3743+18 buildings and structural components of buildings;
3744+19 (B) is depreciable pursuant to Section 167 of the
3745+20 Internal Revenue Code, except that "3-year property"
3746+21 as defined in Section 168(c)(2)(A) of that Code is not
3747+22 eligible for the credit provided by this subsection
3748+23 (h);
3749+24 (C) is acquired by purchase as defined in Section
3750+25 179(d) of the Internal Revenue Code; and
3751+26 (D) is not eligible for the Enterprise Zone
3752+
3753+
3754+
3755+
3756+
3757+ HB5005 Enrolled - 105 - LRB103 37016 SPS 67131 b
3758+
3759+
3760+HB5005 Enrolled- 106 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 106 - LRB103 37016 SPS 67131 b
3761+ HB5005 Enrolled - 106 - LRB103 37016 SPS 67131 b
3762+1 Investment Credit provided by subsection (f) of this
3763+2 Section.
3764+3 (3) The basis of qualified property shall be the basis
3765+4 used to compute the depreciation deduction for federal
3766+5 income tax purposes.
3767+6 (4) If the basis of the property for federal income
3768+7 tax depreciation purposes is increased after it has been
3769+8 placed in service in a federally designated Foreign Trade
3770+9 Zone or Sub-Zone located in Illinois by the taxpayer, the
3771+10 amount of such increase shall be deemed property placed in
3772+11 service on the date of such increase in basis.
3773+12 (5) The term "placed in service" shall have the same
3774+13 meaning as under Section 46 of the Internal Revenue Code.
3775+14 (6) If during any taxable year ending on or before
3776+15 December 31, 1996, any property ceases to be qualified
3777+16 property in the hands of the taxpayer within 48 months
3778+17 after being placed in service, or the situs of any
3779+18 qualified property is moved outside Illinois within 48
3780+19 months after being placed in service, the tax imposed
3781+20 under subsections (a) and (b) of this Section for such
3782+21 taxable year shall be increased. Such increase shall be
3783+22 determined by (i) recomputing the investment credit which
3784+23 would have been allowed for the year in which credit for
3785+24 such property was originally allowed by eliminating such
3786+25 property from such computation, and (ii) subtracting such
3787+26 recomputed credit from the amount of credit previously
3788+
3789+
3790+
3791+
3792+
3793+ HB5005 Enrolled - 106 - LRB103 37016 SPS 67131 b
3794+
3795+
3796+HB5005 Enrolled- 107 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 107 - LRB103 37016 SPS 67131 b
3797+ HB5005 Enrolled - 107 - LRB103 37016 SPS 67131 b
3798+1 allowed. For the purposes of this paragraph (6), a
3799+2 reduction of the basis of qualified property resulting
3800+3 from a redetermination of the purchase price shall be
3801+4 deemed a disposition of qualified property to the extent
3802+5 of such reduction.
3803+6 (7) Beginning with tax years ending after December 31,
3804+7 1996, if a taxpayer qualifies for the credit under this
3805+8 subsection (h) and thereby is granted a tax abatement and
3806+9 the taxpayer relocates its entire facility in violation of
3807+10 the explicit terms and length of the contract under
3808+11 Section 18-183 of the Property Tax Code, the tax imposed
3809+12 under subsections (a) and (b) of this Section shall be
3810+13 increased for the taxable year in which the taxpayer
3811+14 relocated its facility by an amount equal to the amount of
3812+15 credit received by the taxpayer under this subsection (h).
3813+16 (h-5) High Impact Business construction jobs credit. For
3814+17 taxable years beginning on or after January 1, 2021, there
3815+18 shall also be allowed a High Impact Business construction jobs
3816+19 credit against the tax imposed under subsections (a) and (b)
3817+20 of this Section as provided in subsections (i) and (j) of
3818+21 Section 5.5 of the Illinois Enterprise Zone Act.
3819+22 The credit or credits may not reduce the taxpayer's
3820+23 liability to less than zero. If the amount of the credit or
3821+24 credits exceeds the taxpayer's liability, the excess may be
3822+25 carried forward and applied against the taxpayer's liability
3823+26 in succeeding calendar years in the manner provided under
3824+
3825+
3826+
3827+
3828+
3829+ HB5005 Enrolled - 107 - LRB103 37016 SPS 67131 b
3830+
3831+
3832+HB5005 Enrolled- 108 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 108 - LRB103 37016 SPS 67131 b
3833+ HB5005 Enrolled - 108 - LRB103 37016 SPS 67131 b
3834+1 paragraph (4) of Section 211 of this Act. The credit or credits
3835+2 shall be applied to the earliest year for which there is a tax
3836+3 liability. If there are credits from more than one taxable
3837+4 year that are available to offset a liability, the earlier
3838+5 credit shall be applied first.
3839+6 For partners, shareholders of Subchapter S corporations,
3840+7 and owners of limited liability companies, for taxable years
3841+8 ending before December 31, 2023, if the liability company is
3842+9 treated as a partnership for the purposes of federal and State
3843+10 income taxation, there shall be allowed a credit under this
3844+11 Section to be determined in accordance with the determination
3845+12 of income and distributive share of income under Sections 702
3846+13 and 704 and Subchapter S of the Internal Revenue Code. For
3847+14 taxable years ending on or after December 31, 2023, for
3848+15 partners and shareholders of Subchapter S corporations, the
3849+16 provisions of Section 251 shall apply with respect to the
3850+17 credit under this subsection.
3851+18 The total aggregate amount of credits awarded under the
3852+19 Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
3853+20 exceed $20,000,000 in any State fiscal year.
3854+21 This subsection (h-5) is exempt from the provisions of
3855+22 Section 250.
3856+23 (i) Credit for Personal Property Tax Replacement Income
3857+24 Tax. For tax years ending prior to December 31, 2003, a credit
3858+25 shall be allowed against the tax imposed by subsections (a)
3859+26 and (b) of this Section for the tax imposed by subsections (c)
3860+
3861+
3862+
3863+
3864+
3865+ HB5005 Enrolled - 108 - LRB103 37016 SPS 67131 b
3866+
3867+
3868+HB5005 Enrolled- 109 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 109 - LRB103 37016 SPS 67131 b
3869+ HB5005 Enrolled - 109 - LRB103 37016 SPS 67131 b
3870+1 and (d) of this Section. This credit shall be computed by
3871+2 multiplying the tax imposed by subsections (c) and (d) of this
3872+3 Section by a fraction, the numerator of which is base income
3873+4 allocable to Illinois and the denominator of which is Illinois
3874+5 base income, and further multiplying the product by the tax
3875+6 rate imposed by subsections (a) and (b) of this Section.
3876+7 Any credit earned on or after December 31, 1986 under this
3877+8 subsection which is unused in the year the credit is computed
3878+9 because it exceeds the tax liability imposed by subsections
3879+10 (a) and (b) for that year (whether it exceeds the original
3880+11 liability or the liability as later amended) may be carried
3881+12 forward and applied to the tax liability imposed by
3882+13 subsections (a) and (b) of the 5 taxable years following the
3883+14 excess credit year, provided that no credit may be carried
3884+15 forward to any year ending on or after December 31, 2003. This
3885+16 credit shall be applied first to the earliest year for which
3886+17 there is a liability. If there is a credit under this
3887+18 subsection from more than one tax year that is available to
3888+19 offset a liability the earliest credit arising under this
3889+20 subsection shall be applied first.
3890+21 If, during any taxable year ending on or after December
3891+22 31, 1986, the tax imposed by subsections (c) and (d) of this
3892+23 Section for which a taxpayer has claimed a credit under this
3893+24 subsection (i) is reduced, the amount of credit for such tax
3894+25 shall also be reduced. Such reduction shall be determined by
3895+26 recomputing the credit to take into account the reduced tax
3896+
3897+
3898+
3899+
3900+
3901+ HB5005 Enrolled - 109 - LRB103 37016 SPS 67131 b
3902+
3903+
3904+HB5005 Enrolled- 110 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 110 - LRB103 37016 SPS 67131 b
3905+ HB5005 Enrolled - 110 - LRB103 37016 SPS 67131 b
3906+1 imposed by subsections (c) and (d). If any portion of the
3907+2 reduced amount of credit has been carried to a different
3908+3 taxable year, an amended return shall be filed for such
3909+4 taxable year to reduce the amount of credit claimed.
3910+5 (j) Training expense credit. Beginning with tax years
3911+6 ending on or after December 31, 1986 and prior to December 31,
3912+7 2003, a taxpayer shall be allowed a credit against the tax
3913+8 imposed by subsections (a) and (b) under this Section for all
3914+9 amounts paid or accrued, on behalf of all persons employed by
3915+10 the taxpayer in Illinois or Illinois residents employed
3916+11 outside of Illinois by a taxpayer, for educational or
3917+12 vocational training in semi-technical or technical fields or
3918+13 semi-skilled or skilled fields, which were deducted from gross
3919+14 income in the computation of taxable income. The credit
3920+15 against the tax imposed by subsections (a) and (b) shall be
3921+16 1.6% of such training expenses. For partners, shareholders of
3922+17 subchapter S corporations, and owners of limited liability
3923+18 companies, if the liability company is treated as a
3924+19 partnership for purposes of federal and State income taxation,
3925+20 for taxable years ending before December 31, 2023, there shall
3926+21 be allowed a credit under this subsection (j) to be determined
3927+22 in accordance with the determination of income and
3928+23 distributive share of income under Sections 702 and 704 and
3929+24 subchapter S of the Internal Revenue Code. For taxable years
3930+25 ending on or after December 31, 2023, for partners and
3931+26 shareholders of Subchapter S corporations, the provisions of
3932+
3933+
3934+
3935+
3936+
3937+ HB5005 Enrolled - 110 - LRB103 37016 SPS 67131 b
3938+
3939+
3940+HB5005 Enrolled- 111 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 111 - LRB103 37016 SPS 67131 b
3941+ HB5005 Enrolled - 111 - LRB103 37016 SPS 67131 b
3942+1 Section 251 shall apply with respect to the credit under this
3943+2 subsection.
3944+3 Any credit allowed under this subsection which is unused
3945+4 in the year the credit is earned may be carried forward to each
3946+5 of the 5 taxable years following the year for which the credit
3947+6 is first computed until it is used. This credit shall be
3948+7 applied first to the earliest year for which there is a
3949+8 liability. If there is a credit under this subsection from
3950+9 more than one tax year that is available to offset a liability,
3951+10 the earliest credit arising under this subsection shall be
3952+11 applied first. No carryforward credit may be claimed in any
3953+12 tax year ending on or after December 31, 2003.
3954+13 (k) Research and development credit. For tax years ending
3955+14 after July 1, 1990 and prior to December 31, 2003, and
3956+15 beginning again for tax years ending on or after December 31,
3957+16 2004, and ending prior to January 1, 2032 January 1, 2027, a
3958+17 taxpayer shall be allowed a credit against the tax imposed by
3959+18 subsections (a) and (b) of this Section for increasing
3960+19 research activities in this State. The credit allowed against
3961+20 the tax imposed by subsections (a) and (b) shall be equal to 6
3962+21 1/2% of the qualifying expenditures for increasing research
3963+22 activities in this State. For partners, shareholders of
3964+23 subchapter S corporations, and owners of limited liability
3965+24 companies, if the liability company is treated as a
3966+25 partnership for purposes of federal and State income taxation,
3967+26 for taxable years ending before December 31, 2023, there shall
3968+
3969+
3970+
3971+
3972+
3973+ HB5005 Enrolled - 111 - LRB103 37016 SPS 67131 b
3974+
3975+
3976+HB5005 Enrolled- 112 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 112 - LRB103 37016 SPS 67131 b
3977+ HB5005 Enrolled - 112 - LRB103 37016 SPS 67131 b
3978+1 be allowed a credit under this subsection to be determined in
3979+2 accordance with the determination of income and distributive
3980+3 share of income under Sections 702 and 704 and subchapter S of
3981+4 the Internal Revenue Code. For taxable years ending on or
3982+5 after December 31, 2023, for partners and shareholders of
3983+6 Subchapter S corporations, the provisions of Section 251 shall
3984+7 apply with respect to the credit under this subsection.
3985+8 For purposes of this subsection, "qualifying expenditures"
3986+9 means the qualifying expenditures as defined for the federal
3987+10 credit for increasing research activities which would be
3988+11 allowable under Section 41 of the Internal Revenue Code and
3989+12 which are conducted in this State, "qualifying expenditures
3990+13 for increasing research activities in this State" means the
3991+14 excess of qualifying expenditures for the taxable year in
3992+15 which incurred over qualifying expenditures for the base
3993+16 period, "qualifying expenditures for the base period" means
3994+17 the average of the qualifying expenditures for each year in
3995+18 the base period, and "base period" means the 3 taxable years
3996+19 immediately preceding the taxable year for which the
3997+20 determination is being made.
3998+21 Any credit in excess of the tax liability for the taxable
3999+22 year may be carried forward. A taxpayer may elect to have the
4000+23 unused credit shown on its final completed return carried over
4001+24 as a credit against the tax liability for the following 5
4002+25 taxable years or until it has been fully used, whichever
4003+26 occurs first; provided that no credit earned in a tax year
4004+
4005+
4006+
4007+
4008+
4009+ HB5005 Enrolled - 112 - LRB103 37016 SPS 67131 b
4010+
4011+
4012+HB5005 Enrolled- 113 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 113 - LRB103 37016 SPS 67131 b
4013+ HB5005 Enrolled - 113 - LRB103 37016 SPS 67131 b
4014+1 ending prior to December 31, 2003 may be carried forward to any
4015+2 year ending on or after December 31, 2003.
4016+3 If an unused credit is carried forward to a given year from
4017+4 2 or more earlier years, that credit arising in the earliest
4018+5 year will be applied first against the tax liability for the
4019+6 given year. If a tax liability for the given year still
4020+7 remains, the credit from the next earliest year will then be
4021+8 applied, and so on, until all credits have been used or no tax
4022+9 liability for the given year remains. Any remaining unused
4023+10 credit or credits then will be carried forward to the next
4024+11 following year in which a tax liability is incurred, except
4025+12 that no credit can be carried forward to a year which is more
4026+13 than 5 years after the year in which the expense for which the
4027+14 credit is given was incurred.
4028+15 No inference shall be drawn from Public Act 91-644 in
4029+16 construing this Section for taxable years beginning before
4030+17 January 1, 1999.
4031+18 It is the intent of the General Assembly that the research
4032+19 and development credit under this subsection (k) shall apply
4033+20 continuously for all tax years ending on or after December 31,
4034+21 2004 and ending prior to January 1, 2032 January 1, 2027,
4035+22 including, but not limited to, the period beginning on January
4036+23 1, 2016 and ending on July 6, 2017 (the effective date of
4037+24 Public Act 100-22). All actions taken in reliance on the
4038+25 continuation of the credit under this subsection (k) by any
4039+26 taxpayer are hereby validated.
4040+
4041+
4042+
4043+
4044+
4045+ HB5005 Enrolled - 113 - LRB103 37016 SPS 67131 b
4046+
4047+
4048+HB5005 Enrolled- 114 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 114 - LRB103 37016 SPS 67131 b
4049+ HB5005 Enrolled - 114 - LRB103 37016 SPS 67131 b
4050+1 (l) Environmental Remediation Tax Credit.
4051+2 (i) For tax years ending after December 31, 1997 and
4052+3 on or before December 31, 2001, a taxpayer shall be
4053+4 allowed a credit against the tax imposed by subsections
4054+5 (a) and (b) of this Section for certain amounts paid for
4055+6 unreimbursed eligible remediation costs, as specified in
4056+7 this subsection. For purposes of this Section,
4057+8 "unreimbursed eligible remediation costs" means costs
4058+9 approved by the Illinois Environmental Protection Agency
4059+10 ("Agency") under Section 58.14 of the Environmental
4060+11 Protection Act that were paid in performing environmental
4061+12 remediation at a site for which a No Further Remediation
4062+13 Letter was issued by the Agency and recorded under Section
4063+14 58.10 of the Environmental Protection Act. The credit must
4064+15 be claimed for the taxable year in which Agency approval
4065+16 of the eligible remediation costs is granted. The credit
4066+17 is not available to any taxpayer if the taxpayer or any
4067+18 related party caused or contributed to, in any material
4068+19 respect, a release of regulated substances on, in, or
4069+20 under the site that was identified and addressed by the
4070+21 remedial action pursuant to the Site Remediation Program
4071+22 of the Environmental Protection Act. After the Pollution
4072+23 Control Board rules are adopted pursuant to the Illinois
4073+24 Administrative Procedure Act for the administration and
4074+25 enforcement of Section 58.9 of the Environmental
4075+26 Protection Act, determinations as to credit availability
4076+
4077+
4078+
4079+
4080+
4081+ HB5005 Enrolled - 114 - LRB103 37016 SPS 67131 b
4082+
4083+
4084+HB5005 Enrolled- 115 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 115 - LRB103 37016 SPS 67131 b
4085+ HB5005 Enrolled - 115 - LRB103 37016 SPS 67131 b
4086+1 for purposes of this Section shall be made consistent with
4087+2 those rules. For purposes of this Section, "taxpayer"
4088+3 includes a person whose tax attributes the taxpayer has
4089+4 succeeded to under Section 381 of the Internal Revenue
4090+5 Code and "related party" includes the persons disallowed a
4091+6 deduction for losses by paragraphs (b), (c), and (f)(1) of
4092+7 Section 267 of the Internal Revenue Code by virtue of
4093+8 being a related taxpayer, as well as any of its partners.
4094+9 The credit allowed against the tax imposed by subsections
4095+10 (a) and (b) shall be equal to 25% of the unreimbursed
4096+11 eligible remediation costs in excess of $100,000 per site,
4097+12 except that the $100,000 threshold shall not apply to any
4098+13 site contained in an enterprise zone as determined by the
4099+14 Department of Commerce and Community Affairs (now
4100+15 Department of Commerce and Economic Opportunity). The
4101+16 total credit allowed shall not exceed $40,000 per year
4102+17 with a maximum total of $150,000 per site. For partners
4103+18 and shareholders of subchapter S corporations, there shall
4104+19 be allowed a credit under this subsection to be determined
4105+20 in accordance with the determination of income and
4106+21 distributive share of income under Sections 702 and 704
4107+22 and subchapter S of the Internal Revenue Code.
4108+23 (ii) A credit allowed under this subsection that is
4109+24 unused in the year the credit is earned may be carried
4110+25 forward to each of the 5 taxable years following the year
4111+26 for which the credit is first earned until it is used. The
4112+
4113+
4114+
4115+
4116+
4117+ HB5005 Enrolled - 115 - LRB103 37016 SPS 67131 b
4118+
4119+
4120+HB5005 Enrolled- 116 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 116 - LRB103 37016 SPS 67131 b
4121+ HB5005 Enrolled - 116 - LRB103 37016 SPS 67131 b
4122+1 term "unused credit" does not include any amounts of
4123+2 unreimbursed eligible remediation costs in excess of the
4124+3 maximum credit per site authorized under paragraph (i).
4125+4 This credit shall be applied first to the earliest year
4126+5 for which there is a liability. If there is a credit under
4127+6 this subsection from more than one tax year that is
4128+7 available to offset a liability, the earliest credit
4129+8 arising under this subsection shall be applied first. A
4130+9 credit allowed under this subsection may be sold to a
4131+10 buyer as part of a sale of all or part of the remediation
4132+11 site for which the credit was granted. The purchaser of a
4133+12 remediation site and the tax credit shall succeed to the
4134+13 unused credit and remaining carry-forward period of the
4135+14 seller. To perfect the transfer, the assignor shall record
4136+15 the transfer in the chain of title for the site and provide
4137+16 written notice to the Director of the Illinois Department
4138+17 of Revenue of the assignor's intent to sell the
4139+18 remediation site and the amount of the tax credit to be
4140+19 transferred as a portion of the sale. In no event may a
4141+20 credit be transferred to any taxpayer if the taxpayer or a
4142+21 related party would not be eligible under the provisions
4143+22 of subsection (i).
4144+23 (iii) For purposes of this Section, the term "site"
4145+24 shall have the same meaning as under Section 58.2 of the
4146+25 Environmental Protection Act.
4147+26 (m) Education expense credit. Beginning with tax years
4148+
4149+
4150+
4151+
4152+
4153+ HB5005 Enrolled - 116 - LRB103 37016 SPS 67131 b
4154+
4155+
4156+HB5005 Enrolled- 117 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 117 - LRB103 37016 SPS 67131 b
4157+ HB5005 Enrolled - 117 - LRB103 37016 SPS 67131 b
4158+1 ending after December 31, 1999, a taxpayer who is the
4159+2 custodian of one or more qualifying pupils shall be allowed a
4160+3 credit against the tax imposed by subsections (a) and (b) of
4161+4 this Section for qualified education expenses incurred on
4162+5 behalf of the qualifying pupils. The credit shall be equal to
4163+6 25% of qualified education expenses, but in no event may the
4164+7 total credit under this subsection claimed by a family that is
4165+8 the custodian of qualifying pupils exceed (i) $500 for tax
4166+9 years ending prior to December 31, 2017, and (ii) $750 for tax
4167+10 years ending on or after December 31, 2017. In no event shall a
4168+11 credit under this subsection reduce the taxpayer's liability
4169+12 under this Act to less than zero. Notwithstanding any other
4170+13 provision of law, for taxable years beginning on or after
4171+14 January 1, 2017, no taxpayer may claim a credit under this
4172+15 subsection (m) if the taxpayer's adjusted gross income for the
4173+16 taxable year exceeds (i) $500,000, in the case of spouses
4174+17 filing a joint federal tax return or (ii) $250,000, in the case
4175+18 of all other taxpayers. This subsection is exempt from the
4176+19 provisions of Section 250 of this Act.
4177+20 For purposes of this subsection:
4178+21 "Qualifying pupils" means individuals who (i) are
4179+22 residents of the State of Illinois, (ii) are under the age of
4180+23 21 at the close of the school year for which a credit is
4181+24 sought, and (iii) during the school year for which a credit is
4182+25 sought were full-time pupils enrolled in a kindergarten
4183+26 through twelfth grade education program at any school, as
4184+
4185+
4186+
4187+
4188+
4189+ HB5005 Enrolled - 117 - LRB103 37016 SPS 67131 b
4190+
4191+
4192+HB5005 Enrolled- 118 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 118 - LRB103 37016 SPS 67131 b
4193+ HB5005 Enrolled - 118 - LRB103 37016 SPS 67131 b
4194+1 defined in this subsection.
4195+2 "Qualified education expense" means the amount incurred on
4196+3 behalf of a qualifying pupil in excess of $250 for tuition,
4197+4 book fees, and lab fees at the school in which the pupil is
4198+5 enrolled during the regular school year.
4199+6 "School" means any public or nonpublic elementary or
4200+7 secondary school in Illinois that is in compliance with Title
4201+8 VI of the Civil Rights Act of 1964 and attendance at which
4202+9 satisfies the requirements of Section 26-1 of the School Code,
4203+10 except that nothing shall be construed to require a child to
4204+11 attend any particular public or nonpublic school to qualify
4205+12 for the credit under this Section.
4206+13 "Custodian" means, with respect to qualifying pupils, an
4207+14 Illinois resident who is a parent, the parents, a legal
4208+15 guardian, or the legal guardians of the qualifying pupils.
4209+16 (n) River Edge Redevelopment Zone site remediation tax
4210+17 credit.
4211+18 (i) For tax years ending on or after December 31,
4212+19 2006, a taxpayer shall be allowed a credit against the tax
4213+20 imposed by subsections (a) and (b) of this Section for
4214+21 certain amounts paid for unreimbursed eligible remediation
4215+22 costs, as specified in this subsection. For purposes of
4216+23 this Section, "unreimbursed eligible remediation costs"
4217+24 means costs approved by the Illinois Environmental
4218+25 Protection Agency ("Agency") under Section 58.14a of the
4219+26 Environmental Protection Act that were paid in performing
4220+
4221+
4222+
4223+
4224+
4225+ HB5005 Enrolled - 118 - LRB103 37016 SPS 67131 b
4226+
4227+
4228+HB5005 Enrolled- 119 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 119 - LRB103 37016 SPS 67131 b
4229+ HB5005 Enrolled - 119 - LRB103 37016 SPS 67131 b
4230+1 environmental remediation at a site within a River Edge
4231+2 Redevelopment Zone for which a No Further Remediation
4232+3 Letter was issued by the Agency and recorded under Section
4233+4 58.10 of the Environmental Protection Act. The credit must
4234+5 be claimed for the taxable year in which Agency approval
4235+6 of the eligible remediation costs is granted. The credit
4236+7 is not available to any taxpayer if the taxpayer or any
4237+8 related party caused or contributed to, in any material
4238+9 respect, a release of regulated substances on, in, or
4239+10 under the site that was identified and addressed by the
4240+11 remedial action pursuant to the Site Remediation Program
4241+12 of the Environmental Protection Act. Determinations as to
4242+13 credit availability for purposes of this Section shall be
4243+14 made consistent with rules adopted by the Pollution
4244+15 Control Board pursuant to the Illinois Administrative
4245+16 Procedure Act for the administration and enforcement of
4246+17 Section 58.9 of the Environmental Protection Act. For
4247+18 purposes of this Section, "taxpayer" includes a person
4248+19 whose tax attributes the taxpayer has succeeded to under
4249+20 Section 381 of the Internal Revenue Code and "related
4250+21 party" includes the persons disallowed a deduction for
4251+22 losses by paragraphs (b), (c), and (f)(1) of Section 267
4252+23 of the Internal Revenue Code by virtue of being a related
4253+24 taxpayer, as well as any of its partners. The credit
4254+25 allowed against the tax imposed by subsections (a) and (b)
4255+26 shall be equal to 25% of the unreimbursed eligible
4256+
4257+
4258+
4259+
4260+
4261+ HB5005 Enrolled - 119 - LRB103 37016 SPS 67131 b
4262+
4263+
4264+HB5005 Enrolled- 120 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 120 - LRB103 37016 SPS 67131 b
4265+ HB5005 Enrolled - 120 - LRB103 37016 SPS 67131 b
4266+1 remediation costs in excess of $100,000 per site.
4267+2 (ii) A credit allowed under this subsection that is
4268+3 unused in the year the credit is earned may be carried
4269+4 forward to each of the 5 taxable years following the year
4270+5 for which the credit is first earned until it is used. This
4271+6 credit shall be applied first to the earliest year for
4272+7 which there is a liability. If there is a credit under this
4273+8 subsection from more than one tax year that is available
4274+9 to offset a liability, the earliest credit arising under
4275+10 this subsection shall be applied first. A credit allowed
4276+11 under this subsection may be sold to a buyer as part of a
4277+12 sale of all or part of the remediation site for which the
4278+13 credit was granted. The purchaser of a remediation site
4279+14 and the tax credit shall succeed to the unused credit and
4280+15 remaining carry-forward period of the seller. To perfect
4281+16 the transfer, the assignor shall record the transfer in
4282+17 the chain of title for the site and provide written notice
4283+18 to the Director of the Illinois Department of Revenue of
4284+19 the assignor's intent to sell the remediation site and the
4285+20 amount of the tax credit to be transferred as a portion of
4286+21 the sale. In no event may a credit be transferred to any
4287+22 taxpayer if the taxpayer or a related party would not be
4288+23 eligible under the provisions of subsection (i).
4289+24 (iii) For purposes of this Section, the term "site"
4290+25 shall have the same meaning as under Section 58.2 of the
4291+26 Environmental Protection Act.
4292+
4293+
4294+
4295+
4296+
4297+ HB5005 Enrolled - 120 - LRB103 37016 SPS 67131 b
4298+
4299+
4300+HB5005 Enrolled- 121 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 121 - LRB103 37016 SPS 67131 b
4301+ HB5005 Enrolled - 121 - LRB103 37016 SPS 67131 b
4302+1 (o) For each of taxable years during the Compassionate Use
4303+2 of Medical Cannabis Program, a surcharge is imposed on all
4304+3 taxpayers on income arising from the sale or exchange of
4305+4 capital assets, depreciable business property, real property
4306+5 used in the trade or business, and Section 197 intangibles of
4307+6 an organization registrant under the Compassionate Use of
4308+7 Medical Cannabis Program Act. The amount of the surcharge is
4309+8 equal to the amount of federal income tax liability for the
4310+9 taxable year attributable to those sales and exchanges. The
4311+10 surcharge imposed does not apply if:
4312+11 (1) the medical cannabis cultivation center
4313+12 registration, medical cannabis dispensary registration, or
4314+13 the property of a registration is transferred as a result
4315+14 of any of the following:
4316+15 (A) bankruptcy, a receivership, or a debt
4317+16 adjustment initiated by or against the initial
4318+17 registration or the substantial owners of the initial
4319+18 registration;
4320+19 (B) cancellation, revocation, or termination of
4321+20 any registration by the Illinois Department of Public
4322+21 Health;
4323+22 (C) a determination by the Illinois Department of
4324+23 Public Health that transfer of the registration is in
4325+24 the best interests of Illinois qualifying patients as
4326+25 defined by the Compassionate Use of Medical Cannabis
4327+26 Program Act;
4328+
4329+
4330+
4331+
4332+
4333+ HB5005 Enrolled - 121 - LRB103 37016 SPS 67131 b
4334+
4335+
4336+HB5005 Enrolled- 122 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 122 - LRB103 37016 SPS 67131 b
4337+ HB5005 Enrolled - 122 - LRB103 37016 SPS 67131 b
4338+1 (D) the death of an owner of the equity interest in
4339+2 a registrant;
4340+3 (E) the acquisition of a controlling interest in
4341+4 the stock or substantially all of the assets of a
4342+5 publicly traded company;
4343+6 (F) a transfer by a parent company to a wholly
4344+7 owned subsidiary; or
4345+8 (G) the transfer or sale to or by one person to
4346+9 another person where both persons were initial owners
4347+10 of the registration when the registration was issued;
4348+11 or
4349+12 (2) the cannabis cultivation center registration,
4350+13 medical cannabis dispensary registration, or the
4351+14 controlling interest in a registrant's property is
4352+15 transferred in a transaction to lineal descendants in
4353+16 which no gain or loss is recognized or as a result of a
4354+17 transaction in accordance with Section 351 of the Internal
4355+18 Revenue Code in which no gain or loss is recognized.
4356+19 (p) Pass-through entity tax.
4357+20 (1) For taxable years ending on or after December 31,
4358+21 2021 and beginning prior to January 1, 2026, a partnership
4359+22 (other than a publicly traded partnership under Section
4360+23 7704 of the Internal Revenue Code) or Subchapter S
4361+24 corporation may elect to apply the provisions of this
4362+25 subsection. A separate election shall be made for each
4363+26 taxable year. Such election shall be made at such time,
4364+
4365+
4366+
4367+
4368+
4369+ HB5005 Enrolled - 122 - LRB103 37016 SPS 67131 b
4370+
4371+
4372+HB5005 Enrolled- 123 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 123 - LRB103 37016 SPS 67131 b
4373+ HB5005 Enrolled - 123 - LRB103 37016 SPS 67131 b
4374+1 and in such form and manner as prescribed by the
4375+2 Department, and, once made, is irrevocable.
4376+3 (2) Entity-level tax. A partnership or Subchapter S
4377+4 corporation electing to apply the provisions of this
4378+5 subsection shall be subject to a tax for the privilege of
4379+6 earning or receiving income in this State in an amount
4380+7 equal to 4.95% of the taxpayer's net income for the
4381+8 taxable year.
4382+9 (3) Net income defined.
4383+10 (A) In general. For purposes of paragraph (2), the
4384+11 term net income has the same meaning as defined in
4385+12 Section 202 of this Act, except that, for tax years
4386+13 ending on or after December 31, 2023, a deduction
4387+14 shall be allowed in computing base income for
4388+15 distributions to a retired partner to the extent that
4389+16 the partner's distributions are exempt from tax under
4390+17 Section 203(a)(2)(F) of this Act. In addition, the
4391+18 following modifications shall not apply:
4392+19 (i) the standard exemption allowed under
4393+20 Section 204;
4394+21 (ii) the deduction for net losses allowed
4395+22 under Section 207;
4396+23 (iii) in the case of an S corporation, the
4397+24 modification under Section 203(b)(2)(S); and
4398+25 (iv) in the case of a partnership, the
4399+26 modifications under Section 203(d)(2)(H) and
4400+
4401+
4402+
4403+
4404+
4405+ HB5005 Enrolled - 123 - LRB103 37016 SPS 67131 b
4406+
4407+
4408+HB5005 Enrolled- 124 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 124 - LRB103 37016 SPS 67131 b
4409+ HB5005 Enrolled - 124 - LRB103 37016 SPS 67131 b
4410+1 Section 203(d)(2)(I).
4411+2 (B) Special rule for tiered partnerships. If a
4412+3 taxpayer making the election under paragraph (1) is a
4413+4 partner of another taxpayer making the election under
4414+5 paragraph (1), net income shall be computed as
4415+6 provided in subparagraph (A), except that the taxpayer
4416+7 shall subtract its distributive share of the net
4417+8 income of the electing partnership (including its
4418+9 distributive share of the net income of the electing
4419+10 partnership derived as a distributive share from
4420+11 electing partnerships in which it is a partner).
4421+12 (4) Credit for entity level tax. Each partner or
4422+13 shareholder of a taxpayer making the election under this
4423+14 Section shall be allowed a credit against the tax imposed
4424+15 under subsections (a) and (b) of Section 201 of this Act
4425+16 for the taxable year of the partnership or Subchapter S
4426+17 corporation for which an election is in effect ending
4427+18 within or with the taxable year of the partner or
4428+19 shareholder in an amount equal to 4.95% times the partner
4429+20 or shareholder's distributive share of the net income of
4430+21 the electing partnership or Subchapter S corporation, but
4431+22 not to exceed the partner's or shareholder's share of the
4432+23 tax imposed under paragraph (1) which is actually paid by
4433+24 the partnership or Subchapter S corporation. If the
4434+25 taxpayer is a partnership or Subchapter S corporation that
4435+26 is itself a partner of a partnership making the election
4436+
4437+
4438+
4439+
4440+
4441+ HB5005 Enrolled - 124 - LRB103 37016 SPS 67131 b
4442+
4443+
4444+HB5005 Enrolled- 125 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 125 - LRB103 37016 SPS 67131 b
4445+ HB5005 Enrolled - 125 - LRB103 37016 SPS 67131 b
4446+1 under paragraph (1), the credit under this paragraph shall
4447+2 be allowed to the taxpayer's partners or shareholders (or
4448+3 if the partner is a partnership or Subchapter S
4449+4 corporation then its partners or shareholders) in
4450+5 accordance with the determination of income and
4451+6 distributive share of income under Sections 702 and 704
4452+7 and Subchapter S of the Internal Revenue Code. If the
4453+8 amount of the credit allowed under this paragraph exceeds
4454+9 the partner's or shareholder's liability for tax imposed
4455+10 under subsections (a) and (b) of Section 201 of this Act
4456+11 for the taxable year, such excess shall be treated as an
4457+12 overpayment for purposes of Section 909 of this Act.
4458+13 (5) Nonresidents. A nonresident individual who is a
4459+14 partner or shareholder of a partnership or Subchapter S
4460+15 corporation for a taxable year for which an election is in
4461+16 effect under paragraph (1) shall not be required to file
4462+17 an income tax return under this Act for such taxable year
4463+18 if the only source of net income of the individual (or the
4464+19 individual and the individual's spouse in the case of a
4465+20 joint return) is from an entity making the election under
4466+21 paragraph (1) and the credit allowed to the partner or
4467+22 shareholder under paragraph (4) equals or exceeds the
4468+23 individual's liability for the tax imposed under
4469+24 subsections (a) and (b) of Section 201 of this Act for the
4470+25 taxable year.
4471+26 (6) Liability for tax. Except as provided in this
4472+
4473+
4474+
4475+
4476+
4477+ HB5005 Enrolled - 125 - LRB103 37016 SPS 67131 b
4478+
4479+
4480+HB5005 Enrolled- 126 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 126 - LRB103 37016 SPS 67131 b
4481+ HB5005 Enrolled - 126 - LRB103 37016 SPS 67131 b
4482+1 paragraph, a partnership or Subchapter S making the
4483+2 election under paragraph (1) is liable for the
4484+3 entity-level tax imposed under paragraph (2). If the
4485+4 electing partnership or corporation fails to pay the full
4486+5 amount of tax deemed assessed under paragraph (2), the
4487+6 partners or shareholders shall be liable to pay the tax
4488+7 assessed (including penalties and interest). Each partner
4489+8 or shareholder shall be liable for the unpaid assessment
4490+9 based on the ratio of the partner's or shareholder's share
4491+10 of the net income of the partnership over the total net
4492+11 income of the partnership. If the partnership or
4493+12 Subchapter S corporation fails to pay the tax assessed
4494+13 (including penalties and interest) and thereafter an
4495+14 amount of such tax is paid by the partners or
4496+15 shareholders, such amount shall not be collected from the
4497+16 partnership or corporation.
4498+17 (7) Foreign tax. For purposes of the credit allowed
4499+18 under Section 601(b)(3) of this Act, tax paid by a
4500+19 partnership or Subchapter S corporation to another state
4501+20 which, as determined by the Department, is substantially
4502+21 similar to the tax imposed under this subsection, shall be
4503+22 considered tax paid by the partner or shareholder to the
4504+23 extent that the partner's or shareholder's share of the
4505+24 income of the partnership or Subchapter S corporation
4506+25 allocated and apportioned to such other state bears to the
4507+26 total income of the partnership or Subchapter S
4508+
4509+
4510+
4511+
4512+
4513+ HB5005 Enrolled - 126 - LRB103 37016 SPS 67131 b
4514+
4515+
4516+HB5005 Enrolled- 127 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 127 - LRB103 37016 SPS 67131 b
4517+ HB5005 Enrolled - 127 - LRB103 37016 SPS 67131 b
4518+1 corporation allocated or apportioned to such other state.
4519+2 (8) Suspension of withholding. The provisions of
4520+3 Section 709.5 of this Act shall not apply to a partnership
4521+4 or Subchapter S corporation for the taxable year for which
4522+5 an election under paragraph (1) is in effect.
4523+6 (9) Requirement to pay estimated tax. For each taxable
4524+7 year for which an election under paragraph (1) is in
4525+8 effect, a partnership or Subchapter S corporation is
4526+9 required to pay estimated tax for such taxable year under
4527+10 Sections 803 and 804 of this Act if the amount payable as
4528+11 estimated tax can reasonably be expected to exceed $500.
4529+12 (10) The provisions of this subsection shall apply
4530+13 only with respect to taxable years for which the
4531+14 limitation on individual deductions applies under Section
4532+15 164(b)(6) of the Internal Revenue Code.
4533+16 (Source: P.A. 102-558, eff. 8-20-21; 102-658, eff. 8-27-21;
4534+17 103-9, eff. 6-7-23; 103-396, eff. 1-1-24; revised 12-12-23.)
4535+18 (35 ILCS 5/241 new)
4536+19 Sec. 241. Credit for quantum computing campuses.
4537+20 (a) A taxpayer who has been awarded a credit by the
4538+21 Department of Commerce and Economic Opportunity under Section
4539+22 605-115 of the Department of Commerce and Economic Opportunity
4540+23 Law of the Civil Administrative Code of Illinois is entitled
4541+24 to a credit against the taxes imposed under subsections (a)
4542+25 and (b) of Section 201 of this Act. The amount of the credit
4543+
4544+
4545+
4546+
4547+
4548+ HB5005 Enrolled - 127 - LRB103 37016 SPS 67131 b
4549+
4550+
4551+HB5005 Enrolled- 128 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 128 - LRB103 37016 SPS 67131 b
4552+ HB5005 Enrolled - 128 - LRB103 37016 SPS 67131 b
4553+1 shall be 20% of the wages paid by the taxpayer during the
4554+2 taxable year to a full-time or part-time employee of a
4555+3 construction contractor employed in the construction of an
4556+4 eligible facility located on a quantum computing campus
4557+5 designated under Section 605-115 of the Department of Commerce
4558+6 and Economic Opportunity Law of the Civil Administrative Code
4559+7 of Illinois.
4560+8 (b) In no event shall a credit under this Section reduce
4561+9 the taxpayer's liability to less than zero. If the amount of
4562+10 the credit exceeds the tax liability for the year, the excess
4563+11 may be carried forward and applied to the tax liability of the
4564+12 5 taxable years following the excess credit year. The tax
4565+13 credit shall be applied to the earliest year for which there is
4566+14 a tax liability. If there are credits for more than one year
4567+15 that are available to offset a liability, the earlier credit
4568+16 shall be applied first.
4569+17 (c) A person claiming the credit allowed under this
4570+18 Section shall attach to its Illinois income tax return for the
4571+19 taxable year for which the credit is allowed a copy of the tax
4572+20 credit certificate issued by the Department of Commerce and
4573+21 Economic Opportunity.
4574+22 (d) Partners and shareholders of Subchapter S corporations
4575+23 are entitled to a credit under this Section as provided in
4576+24 Section 251.
4577+25 (e) As used in this Section, "eligible facility" means a
4578+26 building used primarily to house one or more of the following:
4579+
4580+
4581+
4582+
4583+
4584+ HB5005 Enrolled - 128 - LRB103 37016 SPS 67131 b
4585+
4586+
4587+HB5005 Enrolled- 129 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 129 - LRB103 37016 SPS 67131 b
4588+ HB5005 Enrolled - 129 - LRB103 37016 SPS 67131 b
4589+1 a quantum computer operator; a research facility; a data
4590+2 center; a manufacturer and assembler of quantum computers and
4591+3 component parts; a cryogenic or refrigeration facility; or any
4592+4 other facility determined, by industry and academic leaders,
4593+5 to be fundamental to the research and development of quantum
4594+6 computing for practical solutions.
4595+7 (f) This Section is exempt from the provisions of Section
4596+8 250.
4597+9 Section 23. The Illinois Income Tax Act is amended by
4598+10 changing Section 213 as follows:
4599+11 (35 ILCS 5/213)
4600+12 Sec. 213. Film production services credit.
4601+13 (a) For tax years beginning on or after January 1, 2004, a
4602+14 taxpayer who has been awarded a tax credit under the Film
4603+15 Production Services Tax Credit Act or under the Film
4604+16 Production Services Tax Credit Act of 2008 is entitled to a
4605+17 credit against the taxes imposed under subsections (a) and (b)
4606+18 of Section 201 of this Act in an amount determined by the
4607+19 Department of Commerce and Economic Opportunity under those
4608+20 Acts. If the taxpayer is a partnership or Subchapter S
4609+21 corporation, the credit is allowed to the partners or
4610+22 shareholders in accordance with the determination of income
4611+23 and distributive share of income under Sections 702 and 704
4612+24 and Subchapter S of the Internal Revenue Code.
4613+
4614+
4615+
4616+
4617+
4618+ HB5005 Enrolled - 129 - LRB103 37016 SPS 67131 b
4619+
4620+
4621+HB5005 Enrolled- 130 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 130 - LRB103 37016 SPS 67131 b
4622+ HB5005 Enrolled - 130 - LRB103 37016 SPS 67131 b
4623+1 (b) Beginning July 1, 2024, taxpayers who have been
4624+2 awarded a tax credit under the Film Production Services Tax
4625+3 Credit Act of 2008 shall pay to the Department of Commerce and
4626+4 Economic Opportunity, after determination of the tax credit
4627+5 amount but prior to the issuance of a tax credit certificate
4628+6 pursuant to Section 35 of the Film Production Services Tax
4629+7 Credit Act of 2008, a fee equal to 2.5% of the credit amount
4630+8 awarded to the taxpayer under the Film Production Services Tax
4631+9 Credit Act of 2008 that is attributable to wages paid to
4632+10 nonresidents, as described in Section 10 of the Film
4633+11 Production Services Tax Credit Act of 2008, and an additional
4634+12 fee equal to 0.25% of the amount generated by subtracting the
4635+13 credit amount awarded to the taxpayer under the Film
4636+14 Production Services Tax Credit Act of 2008 that is
4637+15 attributable to wages paid to nonresidents from the total
4638+16 credit amount awarded to the taxpayer under that Act. All fees
4639+17 collected under this subsection shall be deposited into the
4640+18 Illinois Production Workforce Development Fund. No tax credit
4641+19 certificate shall be issued by the Department of Commerce and
4642+20 Economic Opportunity until the total fees owed according to
4643+21 this subsection have been received by the Department of
4644+22 Commerce and Economic Opportunity.
4645+23 (c) A transfer of this credit may be made by the taxpayer
4646+24 earning the credit within one year after the credit is awarded
4647+25 in accordance with rules adopted by the Department of Commerce
4648+26 and Economic Opportunity. Beginning July 1, 2023 and through
4649+
4650+
4651+
4652+
4653+
4654+ HB5005 Enrolled - 130 - LRB103 37016 SPS 67131 b
4655+
4656+
4657+HB5005 Enrolled- 131 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 131 - LRB103 37016 SPS 67131 b
4658+ HB5005 Enrolled - 131 - LRB103 37016 SPS 67131 b
4659+1 June 30, 2024, if a credit is transferred under this Section by
4660+2 the taxpayer, then the transferor taxpayer shall pay to the
4661+3 Department of Commerce and Economic Opportunity, upon
4662+4 notification of a transfer, a fee equal to 2.5% of the
4663+5 transferred credit amount eligible for nonresident wages, as
4664+6 described in Section 10 of the Film Production Services Tax
4665+7 Credit Act of 2008, and an additional fee of 0.25% of the total
4666+8 amount of the transferred credit that is not calculated on
4667+9 nonresident wages, which shall be deposited into the Illinois
4668+10 Production Workforce Development Fund.
4669+11 (d) The Department, in cooperation with the Department of
4670+12 Commerce and Economic Opportunity, must prescribe rules to
4671+13 enforce and administer the provisions of this Section. This
4672+14 Section is exempt from the provisions of Section 250 of this
4673+15 Act.
4674+16 (e) The credit may not be carried back. If the amount of
4675+17 the credit exceeds the tax liability for the year, the excess
4676+18 may be carried forward and applied to the tax liability of the
4677+19 5 taxable years following the excess credit year. The credit
4678+20 shall be applied to the earliest year for which there is a tax
4679+21 liability. If there are credits from more than one tax year
4680+22 that are available to offset a liability, the earlier credit
4681+23 shall be applied first. In no event shall a credit under this
4682+24 Section reduce the taxpayer's liability to less than zero.
4683+25 (Source: P.A. 102-700, eff. 4-19-22.)
4684+
4685+
4686+
4687+
4688+
4689+ HB5005 Enrolled - 131 - LRB103 37016 SPS 67131 b
4690+
4691+
4692+HB5005 Enrolled- 132 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 132 - LRB103 37016 SPS 67131 b
4693+ HB5005 Enrolled - 132 - LRB103 37016 SPS 67131 b
4694+1 Section 25. The Economic Development for a Growing Economy
4695+2 Tax Credit Act is amended by changing Sections 5-5, 5-15,
4696+3 5-20, 5-35, 5-45, and 5-56 as follows:
4697+4 (35 ILCS 10/5-5)
4698+5 Sec. 5-5. Definitions. As used in this Act:
4699+6 "Agreement" means the Agreement between a Taxpayer and the
4700+7 Department under the provisions of Section 5-50 of this Act.
4701+8 "Applicant" means a Taxpayer that is operating a business
4702+9 located or that the Taxpayer plans to locate within the State
4703+10 of Illinois and that is engaged in interstate or intrastate
4704+11 commerce for the purpose of manufacturing, processing,
4705+12 assembling, warehousing, or distributing products, conducting
4706+13 research and development, providing tourism services, or
4707+14 providing services in interstate commerce, office industries,
4708+15 or agricultural processing, but excluding retail, retail food,
4709+16 health, or professional services, and services delivered to
4710+17 business customer sites. "Applicant" does not include a
4711+18 Taxpayer who closes or substantially reduces an operation at
4712+19 one location in the State and relocates substantially the same
4713+20 operation to another location in the State. This does not
4714+21 prohibit a Taxpayer from expanding its operations at another
4715+22 location in the State, provided that existing operations of a
4716+23 similar nature located within the State are not closed or
4717+24 substantially reduced. This also does not prohibit a Taxpayer
4718+25 from moving its operations from one location in the State to
4719+
4720+
4721+
4722+
4723+
4724+ HB5005 Enrolled - 132 - LRB103 37016 SPS 67131 b
4725+
4726+
4727+HB5005 Enrolled- 133 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 133 - LRB103 37016 SPS 67131 b
4728+ HB5005 Enrolled - 133 - LRB103 37016 SPS 67131 b
4729+1 another location in the State for the purpose of expanding the
4730+2 operation provided that the Department determines that
4731+3 expansion cannot reasonably be accommodated within the
4732+4 municipality in which the business is located, or in the case
4733+5 of a business located in an incorporated area of the county,
4734+6 within the county in which the business is located, after
4735+7 conferring with the chief elected official of the municipality
4736+8 or county and taking into consideration any evidence offered
4737+9 by the municipality or county regarding the ability to
4738+10 accommodate expansion within the municipality or county.
4739+11 "Credit" means the amount agreed to between the Department
4740+12 and Applicant under this Act, but not to exceed the lesser of:
4741+13 (1) the sum of (i) 50% of the Incremental Income Tax
4742+14 attributable to New Employees at the Applicant's project and
4743+15 (ii) 10% of the training costs of New Employees; or (2) 100% of
4744+16 the Incremental Income Tax attributable to New Employees at
4745+17 the Applicant's project. However, if the project is located in
4746+18 an underserved area, then the amount of the Credit may not
4747+19 exceed the lesser of: (1) the sum of (i) 75% of the Incremental
4748+20 Income Tax attributable to New Employees at the Applicant's
4749+21 project and (ii) 10% of the training costs of New Employees; or
4750+22 (2) 100% of the Incremental Income Tax attributable to New
4751+23 Employees at the Applicant's project. If the project is not
4752+24 located in an underserved area and the Applicant agrees to
4753+25 hire the required number of New Employees, then the maximum
4754+26 amount of the Credit for that Applicant may be increased by an
4755+
4756+
4757+
4758+
4759+
4760+ HB5005 Enrolled - 133 - LRB103 37016 SPS 67131 b
4761+
4762+
4763+HB5005 Enrolled- 134 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 134 - LRB103 37016 SPS 67131 b
4764+ HB5005 Enrolled - 134 - LRB103 37016 SPS 67131 b
4765+1 amount not to exceed 25% of the Incremental Income Tax
4766+2 attributable to retained employees at the Applicant's project.
4767+3 If the project is located in an underserved area and the
4768+4 Applicant agrees to hire the required number of New Employees,
4769+5 then the maximum amount of the credit for that Applicant may be
4770+6 increased by an amount not to exceed 50% of the Incremental
4771+7 Income Tax attributable to retained employees at the
4772+8 Applicant's project.
4773+9 "Department" means the Department of Commerce and Economic
4774+10 Opportunity.
4775+11 "Director" means the Director of Commerce and Economic
4776+12 Opportunity.
4777+13 "Full-time Employee" means an individual who is employed
4778+14 for consideration for at least 35 hours each week or who
4779+15 renders any other standard of service generally accepted by
4780+16 industry custom or practice as full-time employment. An
4781+17 individual for whom a W-2 is issued by a Professional Employer
4782+18 Organization (PEO) is a full-time employee if employed in the
4783+19 service of the Applicant for consideration for at least 35
4784+20 hours each week or who renders any other standard of service
4785+21 generally accepted by industry custom or practice as full-time
4786+22 employment to Applicant. The employee need not be physically
4787+23 present at the EDGE project location during the entire
4788+24 full-time workweek; however, the agreement shall set forth a
4789+25 minimum number of hours during which the employee is scheduled
4790+26 to be present at the EDGE project location.
4791+
4792+
4793+
4794+
4795+
4796+ HB5005 Enrolled - 134 - LRB103 37016 SPS 67131 b
4797+
4798+
4799+HB5005 Enrolled- 135 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 135 - LRB103 37016 SPS 67131 b
4800+ HB5005 Enrolled - 135 - LRB103 37016 SPS 67131 b
4801+1 "Incremental Income Tax" means the total amount withheld
4802+2 during the taxable year from the compensation of New Employees
4803+3 and, if applicable, retained employees under Article 7 of the
4804+4 Illinois Income Tax Act arising from employment at a project
4805+5 that is the subject of an Agreement.
4806+6 "New Construction EDGE Agreement" means the Agreement
4807+7 between a Taxpayer and the Department under the provisions of
4808+8 Section 5-51 of this Act.
4809+9 "New Construction EDGE Credit" means an amount agreed to
4810+10 between the Department and the Applicant under this Act as
4811+11 part of a New Construction EDGE Agreement that does not exceed
4812+12 50% of the Incremental Income Tax attributable to New
4813+13 Construction EDGE Employees at the Applicant's project;
4814+14 however, if the New Construction EDGE Project is located in an
4815+15 underserved area, then the amount of the New Construction EDGE
4816+16 Credit may not exceed 75% of the Incremental Income Tax
4817+17 attributable to New Construction EDGE Employees at the
4818+18 Applicant's New Construction EDGE Project.
4819+19 "New Construction EDGE Employee" means a laborer or worker
4820+20 who is employed by a an Illinois contractor or subcontractor
4821+21 in the actual construction work on the site of a New
4822+22 Construction EDGE Project, pursuant to a New Construction EDGE
4823+23 Agreement.
4824+24 "New Construction EDGE Incremental Income Tax" means the
4825+25 total amount withheld during the taxable year from the
4826+26 compensation of New Construction EDGE Employees.
4827+
4828+
4829+
4830+
4831+
4832+ HB5005 Enrolled - 135 - LRB103 37016 SPS 67131 b
4833+
4834+
4835+HB5005 Enrolled- 136 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 136 - LRB103 37016 SPS 67131 b
4836+ HB5005 Enrolled - 136 - LRB103 37016 SPS 67131 b
4837+1 "New Construction EDGE Project" means the building of a
4838+2 Taxpayer's structure or building, or making improvements of
4839+3 any kind to real property. "New Construction EDGE Project"
4840+4 does not include the routine operation, routine repair, or
4841+5 routine maintenance of existing structures, buildings, or real
4842+6 property.
4843+7 "New Employee" means:
4844+8 (a) A Full-time Employee first employed by a Taxpayer
4845+9 at in the project, or assigned to the project as their
4846+10 primary work location, that is the subject of an Agreement
4847+11 and who is hired after the Taxpayer enters into the tax
4848+12 credit Agreement.
4849+13 (b) The term "New Employee" does not include:
4850+14 (1) an employee of the Taxpayer who performs a job
4851+15 that was previously performed by another employee, if
4852+16 that job existed for at least 6 months before hiring
4853+17 the employee;
4854+18 (2) an employee of the Taxpayer who was previously
4855+19 employed in Illinois by a Related Member of the
4856+20 Taxpayer and whose employment was shifted to the
4857+21 Taxpayer after the Taxpayer entered into the tax
4858+22 credit Agreement; or
4859+23 (3) a child, grandchild, parent, or spouse, other
4860+24 than a spouse who is legally separated from the
4861+25 individual, of any individual who has a direct or an
4862+26 indirect ownership interest of at least 5% in the
4863+
4864+
4865+
4866+
4867+
4868+ HB5005 Enrolled - 136 - LRB103 37016 SPS 67131 b
4869+
4870+
4871+HB5005 Enrolled- 137 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 137 - LRB103 37016 SPS 67131 b
4872+ HB5005 Enrolled - 137 - LRB103 37016 SPS 67131 b
4873+1 profits, capital, or value of the Taxpayer.
4874+2 (c) Notwithstanding paragraph (1) of subsection (b),
4875+3 an employee may be considered a New Employee under the
4876+4 Agreement if the employee performs a job that was
4877+5 previously performed by an employee who was:
4878+6 (1) treated under the Agreement as a New Employee;
4879+7 and
4880+8 (2) promoted by the Taxpayer to another job.
4881+9 (d) Notwithstanding subsection (a), the Department may
4882+10 award Credit to an Applicant with respect to an employee
4883+11 hired prior to the date of the Agreement if:
4884+12 (1) the Applicant is in receipt of a letter from
4885+13 the Department stating an intent to enter into a
4886+14 credit Agreement;
4887+15 (2) the letter described in paragraph (1) is
4888+16 issued by the Department not later than 15 days after
4889+17 the effective date of this Act; and
4890+18 (3) the employee was hired after the date the
4891+19 letter described in paragraph (1) was issued.
4892+20 "Noncompliance Date" means, in the case of a Taxpayer that
4893+21 is not complying with the requirements of the Agreement or the
4894+22 provisions of this Act, the day following the last date upon
4895+23 which the Taxpayer was in compliance with the requirements of
4896+24 the Agreement and the provisions of this Act, as determined by
4897+25 the Director, pursuant to Section 5-65.
4898+26 "Pass Through Entity" means an entity that is exempt from
4899+
4900+
4901+
4902+
4903+
4904+ HB5005 Enrolled - 137 - LRB103 37016 SPS 67131 b
4905+
4906+
4907+HB5005 Enrolled- 138 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 138 - LRB103 37016 SPS 67131 b
4908+ HB5005 Enrolled - 138 - LRB103 37016 SPS 67131 b
4909+1 the tax under subsection (b) or (c) of Section 205 of the
4910+2 Illinois Income Tax Act.
4911+3 "Professional Employer Organization" (PEO) means an
4912+4 employee leasing company, as defined in Section 206.1(A)(2) of
4913+5 the Illinois Unemployment Insurance Act.
4914+6 "Related Member" means a person that, with respect to the
4915+7 Taxpayer during any portion of the taxable year, is any one of
4916+8 the following:
4917+9 (1) An individual stockholder, if the stockholder and
4918+10 the members of the stockholder's family (as defined in
4919+11 Section 318 of the Internal Revenue Code) own directly,
4920+12 indirectly, beneficially, or constructively, in the
4921+13 aggregate, at least 50% of the value of the Taxpayer's
4922+14 outstanding stock.
4923+15 (2) A partnership, estate, or trust and any partner or
4924+16 beneficiary, if the partnership, estate, or trust, and its
4925+17 partners or beneficiaries own directly, indirectly,
4926+18 beneficially, or constructively, in the aggregate, at
4927+19 least 50% of the profits, capital, stock, or value of the
4928+20 Taxpayer.
4929+21 (3) A corporation, and any party related to the
4930+22 corporation in a manner that would require an attribution
4931+23 of stock from the corporation to the party or from the
4932+24 party to the corporation under the attribution rules of
4933+25 Section 318 of the Internal Revenue Code, if the Taxpayer
4934+26 owns directly, indirectly, beneficially, or constructively
4935+
4936+
4937+
4938+
4939+
4940+ HB5005 Enrolled - 138 - LRB103 37016 SPS 67131 b
4941+
4942+
4943+HB5005 Enrolled- 139 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 139 - LRB103 37016 SPS 67131 b
4944+ HB5005 Enrolled - 139 - LRB103 37016 SPS 67131 b
4945+1 at least 50% of the value of the corporation's outstanding
4946+2 stock.
4947+3 (4) A corporation and any party related to that
4948+4 corporation in a manner that would require an attribution
4949+5 of stock from the corporation to the party or from the
4950+6 party to the corporation under the attribution rules of
4951+7 Section 318 of the Internal Revenue Code, if the
4952+8 corporation and all such related parties own in the
4953+9 aggregate at least 50% of the profits, capital, stock, or
4954+10 value of the Taxpayer.
4955+11 (5) A person to or from whom there is attribution of
4956+12 stock ownership in accordance with Section 1563(e) of the
4957+13 Internal Revenue Code, except, for purposes of determining
4958+14 whether a person is a Related Member under this paragraph,
4959+15 20% shall be substituted for 5% wherever 5% appears in
4960+16 Section 1563(e) of the Internal Revenue Code.
4961+17 "Startup taxpayer" means, for Agreements that are executed
4962+18 before the effective date of the changes made to this Section
4963+19 by this amendatory Act of the 103rd General Assembly, a
4964+20 corporation, partnership, or other entity incorporated or
4965+21 organized no more than 5 years before the filing of an
4966+22 application for an Agreement that has never had any Illinois
4967+23 income tax liability, excluding any Illinois income tax
4968+24 liability of a Related Member which shall not be attributed to
4969+25 the startup taxpayer. "Startup taxpayer" means, for Agreements
4970+26 that are executed on or after the effective date of this
4971+
4972+
4973+
4974+
4975+
4976+ HB5005 Enrolled - 139 - LRB103 37016 SPS 67131 b
4977+
4978+
4979+HB5005 Enrolled- 140 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 140 - LRB103 37016 SPS 67131 b
4980+ HB5005 Enrolled - 140 - LRB103 37016 SPS 67131 b
4981+1 amendatory Act of the 103rd General Assembly, a corporation,
4982+2 partnership, or other entity that is incorporated or organized
4983+3 no more than 10 years before the filing of an application for
4984+4 an Agreement and that has never had any Illinois income tax
4985+5 liability. For the purpose of determining whether the taxpayer
4986+6 has had any Illinois income tax liability, the Illinois income
4987+7 tax liability of a Related Member shall not be attributed to
4988+8 the startup taxpayer.
4989+9 "Taxpayer" means an individual, corporation, partnership,
4990+10 or other entity that has any Illinois Income Tax liability.
4991+11 Until July 1, 2022, "underserved area" means a geographic
4992+12 area that meets one or more of the following conditions:
4993+13 (1) the area has a poverty rate of at least 20%
4994+14 according to the latest federal decennial census;
4995+15 (2) 75% or more of the children in the area
4996+16 participate in the federal free lunch program according to
4997+17 reported statistics from the State Board of Education;
4998+18 (3) at least 20% of the households in the area receive
4999+19 assistance under the Supplemental Nutrition Assistance
5000+20 Program (SNAP); or
5001+21 (4) the area has an average unemployment rate, as
5002+22 determined by the Illinois Department of Employment
5003+23 Security, that is more than 120% of the national
5004+24 unemployment average, as determined by the U.S. Department
5005+25 of Labor, for a period of at least 2 consecutive calendar
5006+26 years preceding the date of the application.
5007+
5008+
5009+
5010+
5011+
5012+ HB5005 Enrolled - 140 - LRB103 37016 SPS 67131 b
5013+
5014+
5015+HB5005 Enrolled- 141 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 141 - LRB103 37016 SPS 67131 b
5016+ HB5005 Enrolled - 141 - LRB103 37016 SPS 67131 b
5017+1 On and after July 1, 2022, "underserved area" means a
5018+2 geographic area that meets one or more of the following
5019+3 conditions:
5020+4 (1) the area has a poverty rate of at least 20%
5021+5 according to the latest American Community Survey;
5022+6 (2) 35% or more of the families with children in the
5023+7 area are living below 130% of the poverty line, according
5024+8 to the latest American Community Survey;
5025+9 (3) at least 20% of the households in the area receive
5026+10 assistance under the Supplemental Nutrition Assistance
5027+11 Program (SNAP); or
5028+12 (4) the area has an average unemployment rate, as
5029+13 determined by the Illinois Department of Employment
5030+14 Security, that is more than 120% of the national
5031+15 unemployment average, as determined by the U.S. Department
5032+16 of Labor, for a period of at least 2 consecutive calendar
5033+17 years preceding the date of the application.
5034+18 (Source: P.A. 102-330, eff. 1-1-22; 102-700, eff. 4-19-22;
5035+19 102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
5036+20 (35 ILCS 10/5-15)
5037+21 Sec. 5-15. Tax Credit Awards. Subject to the conditions
5038+22 set forth in this Act, a Taxpayer is entitled to a Credit
5039+23 against or, as described in subsection (g) of this Section, a
5040+24 payment towards taxes imposed pursuant to subsections (a) and
5041+25 (b) of Section 201 of the Illinois Income Tax Act that may be
5042+
5043+
5044+
5045+
5046+
5047+ HB5005 Enrolled - 141 - LRB103 37016 SPS 67131 b
5048+
5049+
5050+HB5005 Enrolled- 142 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 142 - LRB103 37016 SPS 67131 b
5051+ HB5005 Enrolled - 142 - LRB103 37016 SPS 67131 b
5052+1 imposed on the Taxpayer for a taxable year beginning on or
5053+2 after January 1, 1999, if the Taxpayer is awarded a Credit by
5054+3 the Department under this Act for that taxable year.
5055+4 (a) The Department shall make Credit awards under this Act
5056+5 to foster job creation and retention in Illinois.
5057+6 (b) A person that proposes a project to create new jobs in
5058+7 Illinois must enter into an Agreement with the Department for
5059+8 the Credit under this Act.
5060+9 (c) The Credit shall be claimed for the taxable years
5061+10 specified in the Agreement.
5062+11 (d) The Credit shall not exceed the Incremental Income Tax
5063+12 attributable to the project that is the subject of the
5064+13 Agreement.
5065+14 (e) Nothing herein shall prohibit a Tax Credit Award to an
5066+15 Applicant that uses a PEO if all other award criteria are
5067+16 satisfied.
5068+17 (f) In lieu of the Credit allowed under this Act against
5069+18 the taxes imposed pursuant to subsections (a) and (b) of
5070+19 Section 201 of the Illinois Income Tax Act for any taxable year
5071+20 ending on or after December 31, 2009, for Taxpayers that
5072+21 entered into Agreements prior to January 1, 2015 and otherwise
5073+22 meet the criteria set forth in this subsection (f), the
5074+23 Taxpayer may elect to claim the Credit against its obligation
5075+24 to pay over withholding under Section 704A of the Illinois
5076+25 Income Tax Act.
5077+26 (1) The election under this subsection (f) may be made
5078+
5079+
5080+
5081+
5082+
5083+ HB5005 Enrolled - 142 - LRB103 37016 SPS 67131 b
5084+
5085+
5086+HB5005 Enrolled- 143 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 143 - LRB103 37016 SPS 67131 b
5087+ HB5005 Enrolled - 143 - LRB103 37016 SPS 67131 b
5088+1 only by a Taxpayer that (i) is primarily engaged in one of
5089+2 the following business activities: water purification and
5090+3 treatment, motor vehicle metal stamping, automobile
5091+4 manufacturing, automobile and light duty motor vehicle
5092+5 manufacturing, motor vehicle manufacturing, light truck
5093+6 and utility vehicle manufacturing, heavy duty truck
5094+7 manufacturing, motor vehicle body manufacturing, cable
5095+8 television infrastructure design or manufacturing, or
5096+9 wireless telecommunication or computing terminal device
5097+10 design or manufacturing for use on public networks and
5098+11 (ii) meets the following criteria:
5099+12 (A) the Taxpayer (i) had an Illinois net loss or an
5100+13 Illinois net loss deduction under Section 207 of the
5101+14 Illinois Income Tax Act for the taxable year in which
5102+15 the Credit is awarded, (ii) employed a minimum of
5103+16 1,000 full-time employees in this State during the
5104+17 taxable year in which the Credit is awarded, (iii) has
5105+18 an Agreement under this Act on December 14, 2009 (the
5106+19 effective date of Public Act 96-834), and (iv) is in
5107+20 compliance with all provisions of that Agreement;
5108+21 (B) the Taxpayer (i) had an Illinois net loss or an
5109+22 Illinois net loss deduction under Section 207 of the
5110+23 Illinois Income Tax Act for the taxable year in which
5111+24 the Credit is awarded, (ii) employed a minimum of
5112+25 1,000 full-time employees in this State during the
5113+26 taxable year in which the Credit is awarded, and (iii)
5114+
5115+
5116+
5117+
5118+
5119+ HB5005 Enrolled - 143 - LRB103 37016 SPS 67131 b
5120+
5121+
5122+HB5005 Enrolled- 144 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 144 - LRB103 37016 SPS 67131 b
5123+ HB5005 Enrolled - 144 - LRB103 37016 SPS 67131 b
5124+1 has applied for an Agreement within 365 days after
5125+2 December 14, 2009 (the effective date of Public Act
5126+3 96-834);
5127+4 (C) the Taxpayer (i) had an Illinois net operating
5128+5 loss carryforward under Section 207 of the Illinois
5129+6 Income Tax Act in a taxable year ending during
5130+7 calendar year 2008, (ii) has applied for an Agreement
5131+8 within 150 days after the effective date of this
5132+9 amendatory Act of the 96th General Assembly, (iii)
5133+10 creates at least 400 new jobs in Illinois, (iv)
5134+11 retains at least 2,000 jobs in Illinois that would
5135+12 have been at risk of relocation out of Illinois over a
5136+13 10-year period, and (v) makes a capital investment of
5137+14 at least $75,000,000;
5138+15 (D) the Taxpayer (i) had an Illinois net operating
5139+16 loss carryforward under Section 207 of the Illinois
5140+17 Income Tax Act in a taxable year ending during
5141+18 calendar year 2009, (ii) has applied for an Agreement
5142+19 within 150 days after the effective date of this
5143+20 amendatory Act of the 96th General Assembly, (iii)
5144+21 creates at least 150 new jobs, (iv) retains at least
5145+22 1,000 jobs in Illinois that would have been at risk of
5146+23 relocation out of Illinois over a 10-year period, and
5147+24 (v) makes a capital investment of at least
5148+25 $57,000,000; or
5149+26 (E) the Taxpayer (i) employed at least 2,500
5150+
5151+
5152+
5153+
5154+
5155+ HB5005 Enrolled - 144 - LRB103 37016 SPS 67131 b
5156+
5157+
5158+HB5005 Enrolled- 145 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 145 - LRB103 37016 SPS 67131 b
5159+ HB5005 Enrolled - 145 - LRB103 37016 SPS 67131 b
5160+1 full-time employees in the State during the year in
5161+2 which the Credit is awarded, (ii) commits to make at
5162+3 least $500,000,000 in combined capital improvements
5163+4 and project costs under the Agreement, (iii) applies
5164+5 for an Agreement between January 1, 2011 and June 30,
5165+6 2011, (iv) executes an Agreement for the Credit during
5166+7 calendar year 2011, and (v) was incorporated no more
5167+8 than 5 years before the filing of an application for an
5168+9 Agreement.
5169+10 (1.5) The election under this subsection (f) may also
5170+11 be made by a Taxpayer for any Credit awarded pursuant to an
5171+12 agreement that was executed between January 1, 2011 and
5172+13 June 30, 2011, if the Taxpayer (i) is primarily engaged in
5173+14 the manufacture of inner tubes or tires, or both, from
5174+15 natural and synthetic rubber, (ii) employs a minimum of
5175+16 2,400 full-time employees in Illinois at the time of
5176+17 application, (iii) creates at least 350 full-time jobs and
5177+18 retains at least 250 full-time jobs in Illinois that would
5178+19 have been at risk of being created or retained outside of
5179+20 Illinois, and (iv) makes a capital investment of at least
5180+21 $200,000,000 at the project location.
5181+22 (1.6) The election under this subsection (f) may also
5182+23 be made by a Taxpayer for any Credit awarded pursuant to an
5183+24 agreement that was executed within 150 days after the
5184+25 effective date of this amendatory Act of the 97th General
5185+26 Assembly, if the Taxpayer (i) is primarily engaged in the
5186+
5187+
5188+
5189+
5190+
5191+ HB5005 Enrolled - 145 - LRB103 37016 SPS 67131 b
5192+
5193+
5194+HB5005 Enrolled- 146 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 146 - LRB103 37016 SPS 67131 b
5195+ HB5005 Enrolled - 146 - LRB103 37016 SPS 67131 b
5196+1 operation of a discount department store, (ii) maintains
5197+2 its corporate headquarters in Illinois, (iii) employs a
5198+3 minimum of 4,250 full-time employees at its corporate
5199+4 headquarters in Illinois at the time of application, (iv)
5200+5 retains at least 4,250 full-time jobs in Illinois that
5201+6 would have been at risk of being relocated outside of
5202+7 Illinois, (v) had a minimum of $40,000,000,000 in total
5203+8 revenue in 2010, and (vi) makes a capital investment of at
5204+9 least $300,000,000 at the project location.
5205+10 (1.7) Notwithstanding any other provision of law, the
5206+11 election under this subsection (f) may also be made by a
5207+12 Taxpayer for any Credit awarded pursuant to an agreement
5208+13 that was executed or applied for on or after July 1, 2011
5209+14 and on or before March 31, 2012, if the Taxpayer is
5210+15 primarily engaged in the manufacture of original and
5211+16 aftermarket filtration parts and products for automobiles,
5212+17 motor vehicles, light duty motor vehicles, light trucks
5213+18 and utility vehicles, and heavy duty trucks, (ii) employs
5214+19 a minimum of 1,000 full-time employees in Illinois at the
5215+20 time of application, (iii) creates at least 250 full-time
5216+21 jobs in Illinois, (iv) relocates its corporate
5217+22 headquarters to Illinois from another state, and (v) makes
5218+23 a capital investment of at least $4,000,000 at the project
5219+24 location.
5220+25 (1.8) Notwithstanding any other provision of law, the
5221+26 election under this subsection (f) may also be made by a
5222+
5223+
5224+
5225+
5226+
5227+ HB5005 Enrolled - 146 - LRB103 37016 SPS 67131 b
5228+
5229+
5230+HB5005 Enrolled- 147 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 147 - LRB103 37016 SPS 67131 b
5231+ HB5005 Enrolled - 147 - LRB103 37016 SPS 67131 b
5232+1 startup taxpayer for any Credit awarded pursuant to an
5233+2 Agreement that was executed on or after the effective date
5234+3 of this amendatory Act of the 102nd General Assembly. Any
5235+4 such election under this paragraph (1.8) shall be
5236+5 effective unless and until such startup taxpayer has any
5237+6 Illinois income tax liability. This election under this
5238+7 paragraph (1.8) shall automatically terminate when the
5239+8 startup taxpayer has any Illinois income tax liability at
5240+9 the end of any taxable year during the term of the
5241+10 Agreement. Thereafter, the startup taxpayer may receive a
5242+11 Credit, taking into account any benefits previously
5243+12 enjoyed or received by way of the election under this
5244+13 paragraph (1.8), so long as the startup taxpayer remains
5245+14 in compliance with the terms and conditions of the
5246+15 Agreement.
5247+16 (1.9) Notwithstanding any other provision of law, the
5248+17 election under this subsection (f) may also be made by an
5249+18 applicant qualified under paragraph (1.7) of subsection
5250+19 (b) of Section 5-20 for any Credit awarded pursuant to an
5251+20 Agreement that was executed on or after the effective date
5252+21 of this amendatory Act of the 103rd General Assembly. Any
5253+22 such election under this paragraph (1.9) shall be
5254+23 effective unless and until such taxpayer has any Illinois
5255+24 income tax liability. This election under this paragraph
5256+25 (1.9) shall automatically terminate when the taxpayer has
5257+26 any Illinois income tax liability at the end of any
5258+
5259+
5260+
5261+
5262+
5263+ HB5005 Enrolled - 147 - LRB103 37016 SPS 67131 b
5264+
5265+
5266+HB5005 Enrolled- 148 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 148 - LRB103 37016 SPS 67131 b
5267+ HB5005 Enrolled - 148 - LRB103 37016 SPS 67131 b
5268+1 taxable year during the term of the Agreement. Thereafter,
5269+2 the startup taxpayer may receive a Credit, taking into
5270+3 account any benefits previously enjoyed or received by way
5271+4 of the election under this paragraph (1.9), so long as the
5272+5 startup taxpayer remains in compliance with the terms and
5273+6 conditions of the Agreement.
5274+7 (2) An election under this subsection shall allow the
5275+8 credit to be taken against payments otherwise due under
5276+9 Section 704A of the Illinois Income Tax Act during the
5277+10 first calendar quarter beginning after the end of the
5278+11 taxable quarter in which the credit is awarded under this
5279+12 Act.
5280+13 (3) The election shall be made in the form and manner
5281+14 required by the Illinois Department of Revenue and, once
5282+15 made, shall be irrevocable.
5283+16 (4) If a Taxpayer who meets the requirements of
5284+17 subparagraph (A) of paragraph (1) of this subsection (f)
5285+18 elects to claim the Credit against its withholdings as
5286+19 provided in this subsection (f), then, on and after the
5287+20 date of the election, the terms of the Agreement between
5288+21 the Taxpayer and the Department may not be further amended
5289+22 during the term of the Agreement.
5290+23 (g) A pass-through entity that has been awarded a credit
5291+24 under this Act, its shareholders, or its partners may treat
5292+25 some or all of the credit awarded pursuant to this Act as a tax
5293+26 payment for purposes of the Illinois Income Tax Act. The term
5294+
5295+
5296+
5297+
5298+
5299+ HB5005 Enrolled - 148 - LRB103 37016 SPS 67131 b
5300+
5301+
5302+HB5005 Enrolled- 149 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 149 - LRB103 37016 SPS 67131 b
5303+ HB5005 Enrolled - 149 - LRB103 37016 SPS 67131 b
5304+1 "tax payment" means a payment as described in Article 6 or
5305+2 Article 8 of the Illinois Income Tax Act or a composite payment
5306+3 made by a pass-through entity on behalf of any of its
5307+4 shareholders or partners to satisfy such shareholders' or
5308+5 partners' taxes imposed pursuant to subsections (a) and (b) of
5309+6 Section 201 of the Illinois Income Tax Act. In no event shall
5310+7 the amount of the award credited pursuant to this Act exceed
5311+8 the Illinois income tax liability of the pass-through entity
5312+9 or its shareholders or partners for the taxable year.
5313+10 (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
5314+11 (35 ILCS 10/5-20)
5315+12 Sec. 5-20. Application for a project to create and retain
5316+13 new jobs.
5317+14 (a) Any Taxpayer proposing a project located or planned to
5318+15 be located in Illinois may request consideration for
5319+16 designation of its project, by formal written letter of
5320+17 request or by formal application to the Department, in which
5321+18 the Applicant states its intent to make at least a specified
5322+19 level of investment and intends to hire or retain a specified
5323+20 number of full-time employees at a designated location in
5324+21 Illinois. As circumstances require, the Department may require
5325+22 a formal application from an Applicant and a formal letter of
5326+23 request for assistance.
5327+24 (b) In order to qualify for Credits under this Act, an
5328+25 Applicant's project must:
5329+
5330+
5331+
5332+
5333+
5334+ HB5005 Enrolled - 149 - LRB103 37016 SPS 67131 b
5335+
5336+
5337+HB5005 Enrolled- 150 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 150 - LRB103 37016 SPS 67131 b
5338+ HB5005 Enrolled - 150 - LRB103 37016 SPS 67131 b
5339+1 (1) if the Applicant has more than 100 employees,
5340+2 involve an investment of at least $2,500,000 in capital
5341+3 improvements to be placed in service within the State as a
5342+4 direct result of the project; if the Applicant has 100 or
5343+5 fewer employees, then there is no capital investment
5344+6 requirement;
5345+7 (1.5) if the Applicant has more than 100 employees,
5346+8 employ a number of new employees in the State equal to the
5347+9 lesser of (A) 10% of the number of full-time employees
5348+10 employed by the applicant world-wide on the date the
5349+11 application is filed with the Department or (B) 50 New
5350+12 Employees; and, if the Applicant has 100 or fewer
5351+13 employees, employ a number of new employees in the State
5352+14 equal to the lesser of (A) 5% of the number of full-time
5353+15 employees employed by the applicant world-wide on the date
5354+16 the application is filed with the Department or (B) 50 New
5355+17 Employees;
5356+18 (1.6) if the Applicant is a startup taxpayer, the
5357+19 employees employed by Related Members shall not be
5358+20 attributed to the Applicant for purposes of determining
5359+21 the capital investment or job creation requirements under
5360+22 this subsection (b);
5361+23 (1.7) if the agreement is entered into on or after the
5362+24 effective date of this amendatory Act of the 103rd General
5363+25 Assembly and the Applicant's project:
5364+26 (A) makes an investment of at least $50,000,000 in
5365+
5366+
5367+
5368+
5369+
5370+ HB5005 Enrolled - 150 - LRB103 37016 SPS 67131 b
5371+
5372+
5373+HB5005 Enrolled- 151 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 151 - LRB103 37016 SPS 67131 b
5374+ HB5005 Enrolled - 151 - LRB103 37016 SPS 67131 b
5375+1 capital improvements at the project site;
5376+2 (B) is placed in service after approval of the
5377+3 application; and
5378+4 (C) creates jobs for at least 100 new full-time
5379+5 employees.
5380+6 (2) (blank);
5381+7 (3) (blank); and
5382+8 (4) include an annual sexual harassment policy report
5383+9 as provided under Section 5-58.
5384+10 (c) After receipt of an application, the Department may
5385+11 enter into an Agreement with the Applicant if the application
5386+12 is accepted in accordance with Section 5-25.
5387+13 (Source: P.A. 101-81, eff. 7-12-19; 102-700, eff. 4-19-22.)
5388+14 (35 ILCS 10/5-35)
5389+15 Sec. 5-35. Relocation of jobs in Illinois. A taxpayer is
5390+16 not entitled to claim the credit provided by this Act with
5391+17 respect to any jobs that the taxpayer relocates from one site
5392+18 in Illinois unless the taxpayer has agreed to hire the minimum
5393+19 number of new employees and the Department has determined that
5394+20 the expansion cannot reasonably be accommodated within the
5395+21 municipality in which the business is located to another site
5396+22 in Illinois. A taxpayer with respect to a qualifying project
5397+23 certified under the Corporate Headquarters Relocation Act,
5398+24 however, is not subject to the requirements of this Section
5399+25 but is nevertheless considered an applicant for purposes of
5400+
5401+
5402+
5403+
5404+
5405+ HB5005 Enrolled - 151 - LRB103 37016 SPS 67131 b
5406+
5407+
5408+HB5005 Enrolled- 152 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 152 - LRB103 37016 SPS 67131 b
5409+ HB5005 Enrolled - 152 - LRB103 37016 SPS 67131 b
5410+1 this Act. Moreover, any full-time employee of an eligible
5411+2 business relocated to Illinois in connection with that
5412+3 qualifying project is deemed to be a new employee for purposes
5413+4 of this Act. Determinations under this Section shall be made
5414+5 by the Department.
5415+6 (Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.)
5416+7 (35 ILCS 10/5-45)
5417+8 Sec. 5-45. Amount and duration of the credit.
5418+9 (a) The Department shall determine the amount and duration
5419+10 of the credit awarded under this Act. The duration of the
5420+11 credit may not exceed 10 taxable years for projects qualified
5421+12 under paragraph (1), (1.5), or (1.6) of subsection (b) of
5422+13 Section 5-20 or 15 taxable years for projects qualified under
5423+14 paragraph (1.7) of subsection (b) of Section 5-20. The credit
5424+15 may be stated as a percentage of the Incremental Income Tax
5425+16 attributable to the applicant's project and may include a
5426+17 fixed dollar limitation.
5427+18 (b) Notwithstanding subsection (a), and except as the
5428+19 credit may be applied in a carryover year pursuant to Section
5429+20 211(4) of the Illinois Income Tax Act, the credit may be
5430+21 applied against the State income tax liability in more than 10
5431+22 taxable years but not in more than 15 taxable years for an
5432+23 eligible business that (i) qualifies under this Act and the
5433+24 Corporate Headquarters Relocation Act and has in fact
5434+25 undertaken a qualifying project within the time frame
5435+
5436+
5437+
5438+
5439+
5440+ HB5005 Enrolled - 152 - LRB103 37016 SPS 67131 b
5441+
5442+
5443+HB5005 Enrolled- 153 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 153 - LRB103 37016 SPS 67131 b
5444+ HB5005 Enrolled - 153 - LRB103 37016 SPS 67131 b
5445+1 specified by the Department of Commerce and Economic
5446+2 Opportunity under that Act, and (ii) applies against its State
5447+3 income tax liability, during the entire 15-year period, no
5448+4 more than 60% of the maximum credit per year that would
5449+5 otherwise be available under this Act.
5450+6 (c) Nothing in this Section shall prevent the Department,
5451+7 in consultation with the Department of Revenue, from adopting
5452+8 rules to extend the sunset of any earned, existing, and unused
5453+9 tax credit or credits a taxpayer may be in possession of, as
5454+10 provided for in Section 605-1070 of the Department of Commerce
5455+11 and Economic Opportunity Law of the Civil Administrative Code
5456+12 of Illinois, notwithstanding the carry-forward provisions
5457+13 pursuant to paragraph (4) of Section 211 of the Illinois
5458+14 Income Tax Act.
5459+15 (Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)
5460+16 (35 ILCS 10/5-56)
5461+17 Sec. 5-56. Annual report. Certified payroll. Annually,
5462+18 until construction is completed, a company seeking New
5463+19 Construction EDGE Credits shall submit a report that, at a
5464+20 minimum, describes the projected project scope, timeline, and
5465+21 anticipated budget. Once the project has commenced, the annual
5466+22 report shall include actual data for the prior year as well as
5467+23 projections for each additional year through completion of the
5468+24 project. The Department shall issue detailed reporting
5469+25 guidelines prescribing the requirements of construction
5470+
5471+
5472+
5473+
5474+
5475+ HB5005 Enrolled - 153 - LRB103 37016 SPS 67131 b
5476+
5477+
5478+HB5005 Enrolled- 154 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 154 - LRB103 37016 SPS 67131 b
5479+ HB5005 Enrolled - 154 - LRB103 37016 SPS 67131 b
5480+1 related reports. In order to receive credit for construction
5481+2 expenses, the company must provide the Department with
5482+3 evidence that a certified third-party executed an Agreed-Upon
5483+4 Procedure (AUP) verifying the construction expenses or accept
5484+5 the standard construction wage expense estimated by the
5485+6 Department.
5486+7 Upon review of the final project scope, timeline, budget,
5487+8 and AUP, the Department shall issue a tax credit certificate
5488+9 reflecting a percentage of the total construction job wages
5489+10 paid throughout the completion of the project.
5490+11 Each contractor and subcontractor that is engaged in and is
5491+12 executing a New Construction EDGE Project for a Taxpayer,
5492+13 pursuant to a New Construction EDGE Agreement shall:
5493+14 (1) make and keep, for a period of 5 years from the
5494+15 date of the last payment made on or after June 5, 2019 (the
5495+16 effective date of Public Act 101-9) on a contract or
5496+17 subcontract for a New Construction EDGE Project pursuant
5497+18 to a New Construction EDGE Agreement, records of all
5498+19 laborers and other workers employed by the contractor or
5499+20 subcontractor on the project; the records shall include:
5500+21 (A) the worker's name;
5501+22 (B) the worker's address;
5502+23 (C) the worker's telephone number, if available;
5503+24 (D) the worker's social security number;
5504+25 (E) the worker's classification or
5505+26 classifications;
5506+
5507+
5508+
5509+
5510+
5511+ HB5005 Enrolled - 154 - LRB103 37016 SPS 67131 b
5512+
5513+
5514+HB5005 Enrolled- 155 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 155 - LRB103 37016 SPS 67131 b
5515+ HB5005 Enrolled - 155 - LRB103 37016 SPS 67131 b
5516+1 (F) the worker's gross and net wages paid in each
5517+2 pay period;
5518+3 (G) the worker's number of hours worked each day;
5519+4 (H) the worker's starting and ending times of work
5520+5 each day;
5521+6 (I) the worker's hourly wage rate; and
5522+7 (J) the worker's hourly overtime wage rate; and
5523+8 (2) no later than the 15th day of each calendar month,
5524+9 provide a certified payroll for the immediately preceding
5525+10 month to the taxpayer in charge of the project; within 5
5526+11 business days after receiving the certified payroll, the
5527+12 taxpayer shall file the certified payroll with the
5528+13 Department of Labor and the Department of Commerce and
5529+14 Economic Opportunity; a certified payroll must be filed
5530+15 for only those calendar months during which construction
5531+16 on a New Construction EDGE Project has occurred; the
5532+17 certified payroll shall consist of a complete copy of the
5533+18 records identified in paragraph (1), but may exclude the
5534+19 starting and ending times of work each day; the certified
5535+20 payroll shall be accompanied by a statement signed by the
5536+21 contractor or subcontractor or an officer, employee, or
5537+22 agent of the contractor or subcontractor which avers that:
5538+23 (A) he or she has examined the certified payroll
5539+24 records required to be submitted by the Act and such
5540+25 records are true and accurate; and
5541+26 (B) the contractor or subcontractor is aware that
5542+
5543+
5544+
5545+
5546+
5547+ HB5005 Enrolled - 155 - LRB103 37016 SPS 67131 b
5548+
5549+
5550+HB5005 Enrolled- 156 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 156 - LRB103 37016 SPS 67131 b
5551+ HB5005 Enrolled - 156 - LRB103 37016 SPS 67131 b
5552+1 filing a certified payroll that he or she knows to be
5553+2 false is a Class A misdemeanor.
5554+3 A general contractor is not prohibited from relying on a
5555+4 certified payroll of a lower-tier subcontractor, provided the
5556+5 general contractor does not knowingly rely upon a
5557+6 subcontractor's false certification.
5558+7 Any contractor or subcontractor subject to this Section,
5559+8 and any officer, employee, or agent of such contractor or
5560+9 subcontractor whose duty as an officer, employee, or agent it
5561+10 is to file a certified payroll under this Section, who
5562+11 willfully fails to file such a certified payroll on or before
5563+12 the date such certified payroll is required to be filed and any
5564+13 person who willfully files a false certified payroll that is
5565+14 false as to any material fact is in violation of this Act and
5566+15 guilty of a Class A misdemeanor.
5567+16 The taxpayer in charge of the project shall keep the
5568+17 records submitted in accordance with this Section on or after
5569+18 June 5, 2019 (the effective date of Public Act 101-9) for a
5570+19 period of 5 years from the date of the last payment for work on
5571+20 a contract or subcontract for the project.
5572+21 The records submitted in accordance with this Section
5573+22 shall be considered public records, except an employee's
5574+23 address, telephone number, and social security number, and
5575+24 made available in accordance with the Freedom of Information
5576+25 Act. The Department of Labor shall accept any reasonable
5577+26 submissions by the contractor that meet the requirements of
5578+
5579+
5580+
5581+
5582+
5583+ HB5005 Enrolled - 156 - LRB103 37016 SPS 67131 b
5584+
5585+
5586+HB5005 Enrolled- 157 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 157 - LRB103 37016 SPS 67131 b
5587+ HB5005 Enrolled - 157 - LRB103 37016 SPS 67131 b
5588+1 this Section and shall share the information with the
5589+2 Department in order to comply with the awarding of New
5590+3 Construction EDGE Credits. A contractor, subcontractor, or
5591+4 public body may retain records required under this Section in
5592+5 paper or electronic format.
5593+6 Upon 7 business days' notice, the taxpayer contractor and
5594+7 each subcontractor shall make available for inspection and
5595+8 copying at a location within this State during reasonable
5596+9 hours, the records identified in paragraph (1) of this Section
5597+10 to the taxpayer in charge of the project, its officers and
5598+11 agents, the Director of Labor and his or her deputies and
5599+12 agents, and to federal, State, or local law enforcement
5600+13 agencies and prosecutors.
5601+14 (Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
5602+15 Section 27. The Film Production Services Tax Credit Act of
5603+16 2008 is amended by changing Sections 10 and 46 as follows:
5604+17 (35 ILCS 16/10)
5605+18 Sec. 10. Definitions. As used in this Act:
5606+19 "Accredited production" means: (i) for productions
5607+20 commencing before May 1, 2006, a film, video, or television
5608+21 production that has been certified by the Department in which
5609+22 the aggregate Illinois labor expenditures included in the cost
5610+23 of the production, in the period that ends 12 months after the
5611+24 time principal filming or taping of the production began,
5612+
5613+
5614+
5615+
5616+
5617+ HB5005 Enrolled - 157 - LRB103 37016 SPS 67131 b
5618+
5619+
5620+HB5005 Enrolled- 158 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 158 - LRB103 37016 SPS 67131 b
5621+ HB5005 Enrolled - 158 - LRB103 37016 SPS 67131 b
5622+1 exceed $100,000 for productions of 30 minutes or longer, or
5623+2 $50,000 for productions of less than 30 minutes; and (ii) for
5624+3 productions commencing on or after May 1, 2006, a film, video,
5625+4 or television production that has been certified by the
5626+5 Department in which the Illinois production spending included
5627+6 in the cost of production in the period that ends 12 months
5628+7 after the time principal filming or taping of the production
5629+8 began exceeds $100,000 for productions of 30 minutes or longer
5630+9 or exceeds $50,000 for productions of less than 30 minutes.
5631+10 "Accredited production" does not include a production that:
5632+11 (1) is news, current events, or public programming, or
5633+12 a program that includes weather or market reports;
5634+13 (2) is a talk show produced for local or regional
5635+14 markets;
5636+15 (3) (blank); is a production in respect of a game,
5637+16 questionnaire, or contest;
5638+17 (4) is a sports event or activity;
5639+18 (5) is a gala presentation or awards show;
5640+19 (6) is a finished production that solicits funds;
5641+20 (7) is a production produced by a film production
5642+21 company if records, as required by 18 U.S.C. 2257, are to
5643+22 be maintained by that film production company with respect
5644+23 to any performer portrayed in that single media or
5645+24 multimedia program; or
5646+25 (8) is a production produced primarily for industrial,
5647+26 corporate, or institutional purposes.
5648+
5649+
5650+
5651+
5652+
5653+ HB5005 Enrolled - 158 - LRB103 37016 SPS 67131 b
5654+
5655+
5656+HB5005 Enrolled- 159 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 159 - LRB103 37016 SPS 67131 b
5657+ HB5005 Enrolled - 159 - LRB103 37016 SPS 67131 b
5658+1 "Accredited animated production" means an accredited
5659+2 production in which movement and characters' performances are
5660+3 created using a frame-by-frame technique and a significant
5661+4 number of major characters are animated. Motion capture by
5662+5 itself is not an animation technique.
5663+6 "Accredited production certificate" means a certificate
5664+7 issued by the Department certifying that the production is an
5665+8 accredited production that meets the guidelines of this Act.
5666+9 "Applicant" means a taxpayer that is a film production
5667+10 company that is operating or has operated an accredited
5668+11 production located within the State of Illinois and that (i)
5669+12 owns the copyright in the accredited production throughout the
5670+13 Illinois production period or (ii) has contracted directly
5671+14 with the owner of the copyright in the accredited production
5672+15 or a person acting on behalf of the owner to provide services
5673+16 for the production, where the owner of the copyright is not an
5674+17 eligible production corporation.
5675+18 "Credit" means:
5676+19 (1) for an accredited production approved by the
5677+20 Department on or before January 1, 2005 and commencing
5678+21 before May 1, 2006, the amount equal to 25% of the Illinois
5679+22 labor expenditure approved by the Department. The
5680+23 applicant is deemed to have paid, on its balance due day
5681+24 for the year, an amount equal to 25% of its qualified
5682+25 Illinois labor expenditure for the tax year. For Illinois
5683+26 labor expenditures generated by the employment of
5684+
5685+
5686+
5687+
5688+
5689+ HB5005 Enrolled - 159 - LRB103 37016 SPS 67131 b
5690+
5691+
5692+HB5005 Enrolled- 160 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 160 - LRB103 37016 SPS 67131 b
5693+ HB5005 Enrolled - 160 - LRB103 37016 SPS 67131 b
5694+1 residents of geographic areas of high poverty or high
5695+2 unemployment, as determined by the Department, in an
5696+3 accredited production commencing before May 1, 2006 and
5697+4 approved by the Department after January 1, 2005, the
5698+5 applicant shall receive an enhanced credit of 10% in
5699+6 addition to the 25% credit; and
5700+7 (2) for an accredited production commencing on or
5701+8 after May 1, 2006 and before January 1, 2009, the amount
5702+9 equal to:
5703+10 (i) 20% of the Illinois production spending for
5704+11 the taxable year; plus
5705+12 (ii) 15% of the Illinois labor expenditures
5706+13 generated by the employment of residents of geographic
5707+14 areas of high poverty or high unemployment, as
5708+15 determined by the Department; and
5709+16 (3) for an accredited production commencing on or
5710+17 after January 1, 2009, the amount equal to:
5711+18 (i) 30% of the Illinois production spending for
5712+19 the taxable year; plus
5713+20 (ii) 15% of the Illinois labor expenditures
5714+21 generated by the employment of residents of geographic
5715+22 areas of high poverty or high unemployment, as
5716+23 determined by the Department.
5717+24 "Department" means the Department of Commerce and Economic
5718+25 Opportunity.
5719+26 "Director" means the Director of Commerce and Economic
5720+
5721+
5722+
5723+
5724+
5725+ HB5005 Enrolled - 160 - LRB103 37016 SPS 67131 b
5726+
5727+
5728+HB5005 Enrolled- 161 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 161 - LRB103 37016 SPS 67131 b
5729+ HB5005 Enrolled - 161 - LRB103 37016 SPS 67131 b
5730+1 Opportunity.
5731+2 "Illinois labor expenditure" means salary or wages paid to
5732+3 employees of the applicant for services on the accredited
5733+4 production.
5734+5 To qualify as an Illinois labor expenditure, the
5735+6 expenditure must be:
5736+7 (1) Reasonable in the circumstances.
5737+8 (2) Included in the federal income tax basis of the
5738+9 property.
5739+10 (3) Incurred by the applicant for services on or after
5740+11 January 1, 2004.
5741+12 (4) Incurred for the production stages of the
5742+13 accredited production, from the final script stage to the
5743+14 end of the post-production stage.
5744+15 (5) Limited to the first $25,000 of wages paid or
5745+16 incurred to each employee of a production commencing
5746+17 before May 1, 2006 and the first $100,000 of wages paid or
5747+18 incurred to each employee of a production commencing on or
5748+19 after May 1, 2006 and prior to July 1, 2022. For
5749+20 productions commencing on or after July 1, 2022, limited
5750+21 to the first $500,000 of wages paid or incurred to each
5751+22 eligible nonresident or resident employee of a production
5752+23 company or loan out company that provides in-State
5753+24 services to a production, whether those wages are paid or
5754+25 incurred by the production company, loan out company, or
5755+26 both, subject to withholding payments provided for in
5756+
5757+
5758+
5759+
5760+
5761+ HB5005 Enrolled - 161 - LRB103 37016 SPS 67131 b
5762+
5763+
5764+HB5005 Enrolled- 162 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 162 - LRB103 37016 SPS 67131 b
5765+ HB5005 Enrolled - 162 - LRB103 37016 SPS 67131 b
5766+1 Article 7 of the Illinois Income Tax Act. For purposes of
5767+2 calculating Illinois labor expenditures for a television
5768+3 series, the eligible nonresident wage limitations provided
5769+4 under this subparagraph are applied to the entire season.
5770+5 For the purpose of this paragraph (5), an eligible
5771+6 nonresident is a nonresident whose wages qualify as an
5772+7 Illinois labor expenditure under the provisions of
5773+8 paragraph (9) that apply to that production.
5774+9 (6) For a production commencing before May 1, 2006,
5775+10 exclusive of the salary or wages paid to or incurred for
5776+11 the 2 highest paid employees of the production.
5777+12 (7) Directly attributable to the accredited
5778+13 production.
5779+14 (8) (Blank).
5780+15 (9) Prior to July 1, 2022, paid to persons resident in
5781+16 Illinois at the time the payments were made. For a
5782+17 production commencing on or after July 1, 2022, paid to
5783+18 persons resident in Illinois and nonresidents at the time
5784+19 the payments were made.
5785+20 For purposes of this subparagraph, if the production
5786+21 is accredited by the Department before the effective date
5787+22 of this amendatory Act of the 102nd General Assembly, only
5788+23 wages paid to nonresidents working in the following
5789+24 positions shall be considered Illinois labor expenditures:
5790+25 Writer, Director, Director of Photography, Production
5791+26 Designer, Costume Designer, Production Accountant, VFX
5792+
5793+
5794+
5795+
5796+
5797+ HB5005 Enrolled - 162 - LRB103 37016 SPS 67131 b
5798+
5799+
5800+HB5005 Enrolled- 163 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 163 - LRB103 37016 SPS 67131 b
5801+ HB5005 Enrolled - 163 - LRB103 37016 SPS 67131 b
5802+1 Supervisor, Editor, Composer, and Actor, subject to the
5803+2 limitations set forth under this subparagraph. For an
5804+3 accredited Illinois production spending of $25,000,000 or
5805+4 less, no more than 2 nonresident actors' wages shall
5806+5 qualify as an Illinois labor expenditure. For an
5807+6 accredited production with Illinois production spending of
5808+7 more than $25,000,000, no more than 4 nonresident actor's
5809+8 wages shall qualify as Illinois labor expenditures.
5810+9 For purposes of this subparagraph, if the production
5811+10 is accredited by the Department on or after the effective
5812+11 date of this amendatory Act of the 102nd General Assembly,
5813+12 wages paid to nonresidents shall qualify as Illinois labor
5814+13 expenditures only under the following conditions:
5815+14 (A) the nonresident must be employed in a
5816+15 qualified position;
5817+16 (B) for each of those accredited productions, the
5818+17 wages of not more than 9 nonresidents who are employed
5819+18 in a qualified position other than Actor shall qualify
5820+19 as Illinois labor expenditures;
5821+20 (C) for an accredited production with Illinois
5822+21 production spending of $25,000,000 or less, no more
5823+22 than 2 nonresident actors' wages shall qualify as
5824+23 Illinois labor expenditures; and
5825+24 (D) for an accredited production with Illinois
5826+25 production spending of more than $25,000,000, no more
5827+26 than 4 nonresident actors' wages shall qualify as
5828+
5829+
5830+
5831+
5832+
5833+ HB5005 Enrolled - 163 - LRB103 37016 SPS 67131 b
5834+
5835+
5836+HB5005 Enrolled- 164 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 164 - LRB103 37016 SPS 67131 b
5837+ HB5005 Enrolled - 164 - LRB103 37016 SPS 67131 b
5838+1 Illinois labor expenditures.
5839+2 As used in this paragraph (9), "qualified position"
5840+3 means: Writer, Director, Director of Photography,
5841+4 Production Designer, Costume Designer, Production
5842+5 Accountant, VFX Supervisor, Editor, Composer, or Actor.
5843+6 (10) Paid for services rendered in Illinois.
5844+7 "Illinois production spending" means the expenses incurred
5845+8 by the applicant for an accredited production, but does not
5846+9 include any monetary prize or the cost of any non-monetary
5847+10 prize awarded pursuant to a production in respect of a game,
5848+11 questionnaire, or contest. "Illinois production spending"
5849+12 includes, including, without limitation, all of the following:
5850+13 (1) expenses to purchase, from vendors within
5851+14 Illinois, tangible personal property that is used in the
5852+15 accredited production;
5853+16 (2) expenses to acquire services, from vendors in
5854+17 Illinois, for film production, editing, or processing; and
5855+18 (3) for a production commencing before July 1, 2022,
5856+19 the compensation, not to exceed $100,000 for any one
5857+20 employee, for contractual or salaried employees who are
5858+21 Illinois residents performing services with respect to the
5859+22 accredited production. For a production commencing on or
5860+23 after July 1, 2022, the compensation, not to exceed
5861+24 $500,000 for any one employee, for contractual or salaried
5862+25 employees who are Illinois residents or nonresident
5863+26 employees, subject to the limitations set forth under
5864+
5865+
5866+
5867+
5868+
5869+ HB5005 Enrolled - 164 - LRB103 37016 SPS 67131 b
5870+
5871+
5872+HB5005 Enrolled- 165 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 165 - LRB103 37016 SPS 67131 b
5873+ HB5005 Enrolled - 165 - LRB103 37016 SPS 67131 b
5874+1 Section 10 of this Act.
5875+2 "Loan out company" means a personal service corporation or
5876+3 other entity that is under contract with the taxpayer to
5877+4 provide specified individual personnel, such as artists, crew,
5878+5 actors, producers, or directors for the performance of
5879+6 services used directly in a production. "Loan out company"
5880+7 does not include entities contracted with by the taxpayer to
5881+8 provide goods or ancillary contractor services such as
5882+9 catering, construction, trailers, equipment, or
5883+10 transportation.
5884+11 "Qualified production facility" means stage facilities in
5885+12 the State in which television shows and films are or are
5886+13 intended to be regularly produced and that contain at least
5887+14 one sound stage of at least 15,000 square feet.
5888+15 Rulemaking authority to implement Public Act 95-1006, if
5889+16 any, is conditioned on the rules being adopted in accordance
5890+17 with all provisions of the Illinois Administrative Procedure
5891+18 Act and all rules and procedures of the Joint Committee on
5892+19 Administrative Rules; any purported rule not so adopted, for
5893+20 whatever reason, is unauthorized.
5894+21 (Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22;
5895+22 102-1125, eff. 2-3-23.)
5896+23 (35 ILCS 16/46)
5897+24 Sec. 46. Illinois Production Workforce Development Fund.
5898+25 (a) The Illinois Production Workforce Development Fund is
5899+
5900+
5901+
5902+
5903+
5904+ HB5005 Enrolled - 165 - LRB103 37016 SPS 67131 b
5905+
5906+
5907+HB5005 Enrolled- 166 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 166 - LRB103 37016 SPS 67131 b
5908+ HB5005 Enrolled - 166 - LRB103 37016 SPS 67131 b
5909+1 created as a special fund in the State Treasury. Beginning
5910+2 July 1, 2023 July 1, 2022, amounts paid to the Department of
5911+3 Commerce and Economic Opportunity pursuant to Section 213 of
5912+4 the Illinois Income Tax Act shall be deposited into the Fund.
5913+5 The Fund shall be used exclusively to provide grants to
5914+6 community-based organizations, labor organizations, private
5915+7 and public universities, community colleges, and other
5916+8 organizations and institutions that may be deemed appropriate
5917+9 by the Department to administer workforce training programs
5918+10 that support efforts to recruit, hire, promote, retain,
5919+11 develop, and train a diverse and inclusive workforce in the
5920+12 film industry.
5921+13 (b) Pursuant to Section 213 of the Illinois Income Tax
5922+14 Act, taxpayers who have been awarded a tax credit under this
5923+15 Act shall pay to the Department of Commerce and Economic
5924+16 Opportunity, after determination of the tax credit amount but
5925+17 prior to the issuance of a tax credit certificate, a fee equal
5926+18 to 2.5% of the credit amount awarded to the taxpayer under the
5927+19 Film Production Services Tax Credit Act of 2008 that is
5928+20 attributable to wages paid to nonresidents, as described in
5929+21 Section 10 of the Film Production Services Tax Credit Act of
5930+22 2008, and an additional fee equal to 0.25% of the amount
5931+23 generated by subtracting the credit amount awarded to the
5932+24 taxpayer under the Film Production Services Tax Credit Act of
5933+25 2008 that is attributable to wages paid to nonresidents from
5934+26 the total credit amount awarded to the taxpayer under that
5935+
5936+
5937+
5938+
5939+
5940+ HB5005 Enrolled - 166 - LRB103 37016 SPS 67131 b
5941+
5942+
5943+HB5005 Enrolled- 167 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 167 - LRB103 37016 SPS 67131 b
5944+ HB5005 Enrolled - 167 - LRB103 37016 SPS 67131 b
5945+1 Act. All fees collected under this subsection shall be
5946+2 deposited into the Illinois Production Workforce Development
5947+3 Fund. No tax credit certificate shall be issued by the
5948+4 Department of Commerce and Economic Opportunity until the
5949+5 total fees owed according to this subsection have been
5950+6 received by the Department of Commerce and Economic
5951+7 Opportunity. the Fund shall receive deposits in amounts not to
5952+8 exceed 0.25% of the amount of each credit certificate issued
5953+9 that is not calculated on out-of-state wages and transferred
5954+10 or claimed on an Illinois tax return in the quarter such credit
5955+11 was transferred or claimed. In addition, such amount shall
5956+12 also include 2.5% of the credit amount calculated on wages
5957+13 paid to nonresidents that is transferred or claimed on an
5958+14 Illinois tax return in the quarter such credit was transferred
5959+15 or claimed.
5960+16 (c) At the request of the Department, the State
5961+17 Comptroller and the State Treasurer may advance amounts to the
5962+18 Fund on an annual basis not to exceed $1,000,000 in any fiscal
5963+19 year. The fund from which the moneys are advanced shall be
5964+20 reimbursed in the same fiscal year for any such advance
5965+21 payments as described in this Section. The method of
5966+22 reimbursement shall be set forth in rules.
5967+23 (d) Of the appropriated funds in a given fiscal year, 50%
5968+24 of the appropriated funds shall be reserved for organizations
5969+25 that meet one of the following criteria. The organization is:
5970+26 (1) a minority-owned business, as defined by the Business
5971+
5972+
5973+
5974+
5975+
5976+ HB5005 Enrolled - 167 - LRB103 37016 SPS 67131 b
5977+
5978+
5979+HB5005 Enrolled- 168 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 168 - LRB103 37016 SPS 67131 b
5980+ HB5005 Enrolled - 168 - LRB103 37016 SPS 67131 b
5981+1 Enterprise for Minorities, Women, and Persons with
5982+2 Disabilities Act; (2) located in an underserved area, as
5983+3 defined by the Economic Development for a Growing Economy Tax
5984+4 Credit Act; or (3) on an annual basis, training a cohort of
5985+5 program participants where at least 50% of the program
5986+6 participants are either a minority person, as defined by the
5987+7 Business Enterprise for Minorities, Women, and Persons with
5988+8 Disabilities Act, or reside in an underserved area, as defined
5989+9 by the Economic Development for a Growing Economy Tax Credit
5990+10 Act.
5991+11 (e) The Illinois Production Workforce Development Fund
5992+12 shall be administered by the Department. The Department may
5993+13 adopt rules necessary to administer the provisions of this
5994+14 Section.
5995+15 (f) Notwithstanding any other law to the contrary, the
5996+16 Illinois Production Workforce Development Fund is not subject
5997+17 to sweeps, administrative charge-backs, or any other fiscal or
5998+18 budgetary maneuver that would in any way transfer any amounts
5999+19 from the Illinois Production Workforce Development Fund.
6000+20 (g) By June 30 of each fiscal year, the Department must
6001+21 submit to the General Assembly a report that includes the
6002+22 following information: (1) an identification of the
6003+23 organizations and institutions that received funding to
6004+24 administer workforce training programs during the fiscal year;
6005+25 (2) the number of total persons trained and the number of
6006+26 persons trained per workforce training program in the fiscal
6007+
6008+
6009+
6010+
6011+
6012+ HB5005 Enrolled - 168 - LRB103 37016 SPS 67131 b
6013+
6014+
6015+HB5005 Enrolled- 169 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 169 - LRB103 37016 SPS 67131 b
6016+ HB5005 Enrolled - 169 - LRB103 37016 SPS 67131 b
6017+1 year; and (3) in the aggregate, per organization, the number
6018+2 of persons identified as a minority person or that reside in an
6019+3 underserved area that received training in the fiscal year.
6020+4 (Source: P.A. 102-700, eff. 4-19-22.)
6021+5 Section 30. The Manufacturing Illinois Chips for Real
6022+6 Opportunity (MICRO) Act is amended by changing Sections 110-5,
6023+7 110-10, 110-20, 110-35, 110-65, and 110-95 as follows:
6024+8 (35 ILCS 45/110-5)
6025+9 Sec. 110-5. Purpose. It is the intent of the General
6026+10 Assembly that Illinois should lead the nation in the
6027+11 production of quantum computers and the production of
6028+12 semiconductors and microchips as they become even more
6029+13 prevalent in everyday life. The General Assembly finds that,
6030+14 through investments in quantum computing and semiconductors
6031+15 and microchips, Illinois will be on the forefront of the
6032+16 quantum computing industry and the forefront of reshoring
6033+17 semiconductor and microchip production that fuels modern
6034+18 technologies that are essential to the operation of computers,
6035+19 phones, vehicles and the any electric products product that
6036+20 have become essential to modern life. This Act will create
6037+21 good paying jobs, and generate long-term economic investment
6038+22 in the Illinois business economy, in addition to ensuring a
6039+23 vital product is made in the United States. Illinois must
6040+24 aggressively adopt new business development investment tools
6041+
6042+
6043+
6044+
6045+
6046+ HB5005 Enrolled - 169 - LRB103 37016 SPS 67131 b
6047+
6048+
6049+HB5005 Enrolled- 170 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 170 - LRB103 37016 SPS 67131 b
6050+ HB5005 Enrolled - 170 - LRB103 37016 SPS 67131 b
6051+1 so that Illinois can compete with domestic and foreign
6052+2 competitors for quantum computer manufacturing and
6053+3 semiconductor and chip manufacturing.
6054+4 (Source: P.A. 102-700, eff. 4-19-22.)
6055+5 (35 ILCS 45/110-10)
6056+6 Sec. 110-10. Definitions. As used in this Act:
6057+7 "Agreement" means the agreement between a taxpayer and the
6058+8 Department under the provisions of this Act.
6059+9 "Applicant" means a taxpayer that: (i) operates a business
6060+10 in Illinois as a quantum computer manufacturer, a
6061+11 semiconductor manufacturer, a microchip manufacturer, or a
6062+12 manufacturer of quantum computer, semiconductor, or microchip
6063+13 component parts or a business in Illinois that primarily
6064+14 engages in research and development in the manufacturing of
6065+15 quantum computers, semiconductors, or microchips; or (ii) is
6066+16 planning to locate a business within the State of Illinois as a
6067+17 quantum computer manufacturer, a semiconductor manufacturer, a
6068+18 microchip manufacturer, or a manufacturer of quantum computer,
6069+19 semiconductor, or microchip component parts or a business
6070+20 within the State of Illinois that primarily engages in
6071+21 research and development in the manufacturing of quantum
6072+22 computers, semiconductors, or microchips. For the purposes of
6073+23 this definition, a business primarily engages in research and
6074+24 development in the manufacturing of quantum computers,
6075+25 semiconductors, or microchips if at least 50% of its business
6076+
6077+
6078+
6079+
6080+
6081+ HB5005 Enrolled - 170 - LRB103 37016 SPS 67131 b
6082+
6083+
6084+HB5005 Enrolled- 171 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 171 - LRB103 37016 SPS 67131 b
6085+ HB5005 Enrolled - 171 - LRB103 37016 SPS 67131 b
6086+1 activities involve research and development in the
6087+2 manufacturing of quantum computers, semiconductors, or
6088+3 microchips. "Applicant" does not include a taxpayer who closes
6089+4 or substantially reduces by more than 50% operations at one
6090+5 location in the State and relocates substantially the same
6091+6 operation to another location in the State. This does not
6092+7 prohibit a taxpayer from expanding its operations at another
6093+8 location in the State. This also does not prohibit a taxpayer
6094+9 from moving its operations from one location in the State to
6095+10 another location in the State for the purpose of expanding the
6096+11 operation, provided that the Department determines that
6097+12 expansion cannot reasonably be accommodated within the
6098+13 municipality or county in which the business is located, or,
6099+14 in the case of a business located in an incorporated area of
6100+15 the county, within the county in which the business is
6101+16 located, after conferring with the chief elected official of
6102+17 the municipality or county and taking into consideration any
6103+18 evidence offered by the municipality or county regarding the
6104+19 ability to accommodate expansion within the municipality or
6105+20 county.
6106+21 "Capital improvements" means the purchase, renovation,
6107+22 rehabilitation, or construction of permanent tangible land,
6108+23 buildings, structures, equipment, and furnishings in an
6109+24 approved project sited in Illinois and expenditures for goods
6110+25 or services that are normally capitalized, including
6111+26 organizational costs and research and development costs
6112+
6113+
6114+
6115+
6116+
6117+ HB5005 Enrolled - 171 - LRB103 37016 SPS 67131 b
6118+
6119+
6120+HB5005 Enrolled- 172 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 172 - LRB103 37016 SPS 67131 b
6121+ HB5005 Enrolled - 172 - LRB103 37016 SPS 67131 b
6122+1 incurred in Illinois. For land, buildings, structures, and
6123+2 equipment that are leased, the lease must equal or exceed the
6124+3 term of the agreement, and the cost of the property shall be
6125+4 determined from the present value, using the corporate
6126+5 interest rate prevailing at the time of the application, of
6127+6 the lease payments.
6128+7 "Credit" or "MICRO credit" means a credit agreed to
6129+8 between the Department and applicant under this Act.
6130+9 "Department" means the Department of Commerce and Economic
6131+10 Opportunity.
6132+11 "Director" means the Director of Commerce and Economic
6133+12 Opportunity.
6134+13 "Energy Transition Area" means a county with less than
6135+14 100,000 people or a municipality that contains one or more of
6136+15 the following:
6137+16 (1) a fossil fuel plant that was retired from service
6138+17 or has significant reduced service within 6 years before
6139+18 the time of the application or will be retired or have
6140+19 service significantly reduced within 6 years following the
6141+20 time of the application; or
6142+21 (2) a coal mine that was closed or had operations
6143+22 significantly reduced within 6 years before the time of
6144+23 the application or is anticipated to be closed or have
6145+24 operations significantly reduced within 6 years following
6146+25 the time of the application.
6147+26 "Full-time employee" means an individual who is employed
6148+
6149+
6150+
6151+
6152+
6153+ HB5005 Enrolled - 172 - LRB103 37016 SPS 67131 b
6154+
6155+
6156+HB5005 Enrolled- 173 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 173 - LRB103 37016 SPS 67131 b
6157+ HB5005 Enrolled - 173 - LRB103 37016 SPS 67131 b
6158+1 for consideration for at least 35 hours each week or who
6159+2 renders any other standard of service generally accepted by
6160+3 industry custom or practice as full-time employment. An
6161+4 individual for whom a W-2 is issued by a Professional Employer
6162+5 Organization (PEO) is a full-time employee if employed in the
6163+6 service of the applicant for consideration for at least 35
6164+7 hours each week.
6165+8 "Incremental income tax" means the total amount withheld
6166+9 during the taxable year from the compensation of new employees
6167+10 and, if applicable, retained employees under Article 7 of the
6168+11 Illinois Income Tax Act arising from employment at a project
6169+12 that is the subject of an agreement.
6170+13 "Institution of higher education" or "institution" means
6171+14 any accredited public or private university, college,
6172+15 community college, business, technical, or vocational school,
6173+16 or other accredited educational institution offering degrees
6174+17 and instruction beyond the secondary school level.
6175+18 "MICRO construction jobs credit" means a credit agreed to
6176+19 between the Department and the applicant under this Act that
6177+20 is based on the incremental income tax attributable to
6178+21 construction wages paid in connection with construction of the
6179+22 project facilities.
6180+23 "MICRO credit" means a credit agreed to between the
6181+24 Department and the applicant under this Act that is based on
6182+25 the incremental income tax attributable to new employees and,
6183+26 if applicable, retained employees, and on training costs for
6184+
6185+
6186+
6187+
6188+
6189+ HB5005 Enrolled - 173 - LRB103 37016 SPS 67131 b
6190+
6191+
6192+HB5005 Enrolled- 174 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 174 - LRB103 37016 SPS 67131 b
6193+ HB5005 Enrolled - 174 - LRB103 37016 SPS 67131 b
6194+1 such employees at the applicant's project.
6195+2 "Microchip" means a wafer of semiconducting material that
6196+3 is less than 15 millimeters long and less than 5 millimeters
6197+4 wide and is used to make an integrated circuit.
6198+5 "Microchip manufacturer" means a new or existing
6199+6 manufacturer that is focused on reequipping, expanding, or
6200+7 establishing a manufacturing facility in Illinois that
6201+8 produces microchips or key components that directly support
6202+9 the functions of microchips.
6203+10 "Minority person" means a minority person as defined in
6204+11 the Business Enterprise for Minorities, Women, and Persons
6205+12 with Disabilities Act.
6206+13 "New employee" means a newly-hired full-time employee
6207+14 employed to work at the project site and whose work is directly
6208+15 related to the project.
6209+16 "Noncompliance date" means, in the case of a taxpayer that
6210+17 is not complying with the requirements of the agreement or the
6211+18 provisions of this Act, the day following the last date upon
6212+19 which the taxpayer was in compliance with the requirements of
6213+20 the agreement and the provisions of this Act, as determined by
6214+21 the Director.
6215+22 "Pass-through entity" means an entity that is exempt from
6216+23 the tax under subsection (b) or (c) of Section 205 of the
6217+24 Illinois Income Tax Act.
6218+25 "Placed in service" means the state or condition of
6219+26 readiness, availability for a specifically assigned function,
6220+
6221+
6222+
6223+
6224+
6225+ HB5005 Enrolled - 174 - LRB103 37016 SPS 67131 b
6226+
6227+
6228+HB5005 Enrolled- 175 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 175 - LRB103 37016 SPS 67131 b
6229+ HB5005 Enrolled - 175 - LRB103 37016 SPS 67131 b
6230+1 and the facility is constructed and ready to conduct its
6231+2 facility operations to manufacture goods.
6232+3 "Professional employer organization" (PEO) means an
6233+4 employee leasing company, as defined in Section 206.1 of the
6234+5 Illinois Unemployment Insurance Act.
6235+6 "Program" means the Manufacturing Illinois Chips for Real
6236+7 Opportunity (MICRO) program established in this Act.
6237+8 "Project" means a for-profit economic development activity
6238+9 for the manufacture of quantum computers, semiconductors, or
6239+10 and microchips.
6240+11 "Quantum computer" means a machine that uses the
6241+12 properties of quantum physics to perform computations and
6242+13 store data, as distinct from classical computing machines.
6243+14 "Quantum computer manufacturer" or "manufacturer of
6244+15 quantum computers or quantum computer component parts" means a
6245+16 new or existing manufacturer that is focused on reequipping,
6246+17 expanding, or establishing a facility in Illinois that
6247+18 manufactures a quantum computer, quantum computer prototype
6248+19 devices, or components that support the functions of a quantum
6249+20 computer.
6250+21 "Related member" means a person that, with respect to the
6251+22 taxpayer during any portion of the taxable year, is any one of
6252+23 the following:
6253+24 (1) An individual stockholder, if the stockholder and
6254+25 the members of the stockholder's family (as defined in
6255+26 Section 318 of the Internal Revenue Code) own directly,
6256+
6257+
6258+
6259+
6260+
6261+ HB5005 Enrolled - 175 - LRB103 37016 SPS 67131 b
6262+
6263+
6264+HB5005 Enrolled- 176 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 176 - LRB103 37016 SPS 67131 b
6265+ HB5005 Enrolled - 176 - LRB103 37016 SPS 67131 b
6266+1 indirectly, beneficially, or constructively, in the
6267+2 aggregate, at least 50% of the value of the taxpayer's
6268+3 outstanding stock.
6269+4 (2) A partnership, estate, trust and any partner or
6270+5 beneficiary, if the partnership, estate, or trust, and its
6271+6 partners or beneficiaries own directly, indirectly,
6272+7 beneficially, or constructively, in the aggregate, at
6273+8 least 50% of the profits, capital, stock, or value of the
6274+9 taxpayer.
6275+10 (3) A corporation, and any party related to the
6276+11 corporation in a manner that would require an attribution
6277+12 of stock from the corporation under the attribution rules
6278+13 of Section 318 of the Internal Revenue Code, if the
6279+14 taxpayer owns directly, indirectly, beneficially, or
6280+15 constructively at least 50% of the value of the
6281+16 corporation's outstanding stock.
6282+17 (4) A corporation and any party related to that
6283+18 corporation in a manner that would require an attribution
6284+19 of stock from the corporation to the party or from the
6285+20 party to the corporation under the attribution rules of
6286+21 Section 318 of the Internal Revenue Code, if the
6287+22 corporation and all such related parties own in the
6288+23 aggregate at least 50% of the profits, capital, stock, or
6289+24 value of the taxpayer.
6290+25 (5) A person to or from whom there is an attribution of
6291+26 stock ownership in accordance with Section 1563(e) of the
6292+
6293+
6294+
6295+
6296+
6297+ HB5005 Enrolled - 176 - LRB103 37016 SPS 67131 b
6298+
6299+
6300+HB5005 Enrolled- 177 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 177 - LRB103 37016 SPS 67131 b
6301+ HB5005 Enrolled - 177 - LRB103 37016 SPS 67131 b
6302+1 Internal Revenue Code, except, for purposes of determining
6303+2 whether a person is a related member under this paragraph,
6304+3 20% shall be substituted for 5% wherever 5% appears in
6305+4 Section 1563(e) of the Internal Revenue Code.
6306+5 "Research and development in the manufacturing of quantum
6307+6 computers, semiconductors, or microchips" means work directed
6308+7 toward the innovation, introduction, and improvement of
6309+8 products and processes in the space of quantum computing
6310+9 manufacturing, semiconductor manufacturing, microchip
6311+10 manufacturing, or the manufacturing of semiconductor, quantum
6312+11 computer, or microchip component parts.
6313+12 "Retained employee" means a full-time employee employed by
6314+13 the taxpayer prior to the term of the agreement who continues
6315+14 to be employed during the term of the agreement whose job
6316+15 duties are directly and substantially related to the project.
6317+16 For purposes of this definition, "directly and substantially
6318+17 related to the project" means at least two-thirds of the
6319+18 employee's job duties must be directly related to the project
6320+19 and the employee must devote at least two-thirds of his or her
6321+20 time to the project. The term "retained employee" does not
6322+21 include any individual who has a direct or an indirect
6323+22 ownership interest of at least 5% in the profits, equity,
6324+23 capital, or value of the taxpayer or a child, grandchild,
6325+24 parent, or spouse, other than a spouse who is legally
6326+25 separated from the individual, of any individual who has a
6327+26 direct or indirect ownership of at least 5% in the profits,
6328+
6329+
6330+
6331+
6332+
6333+ HB5005 Enrolled - 177 - LRB103 37016 SPS 67131 b
6334+
6335+
6336+HB5005 Enrolled- 178 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 178 - LRB103 37016 SPS 67131 b
6337+ HB5005 Enrolled - 178 - LRB103 37016 SPS 67131 b
6338+1 equity, capital, or value of the taxpayer.
6339+2 "Semiconductor" means any class of crystalline solids
6340+3 intermediate in electrical conductivity between a conductor
6341+4 and an insulator.
6342+5 "Semiconductor manufacturer" means a new or existing
6343+6 manufacturer that is focused on reequipping, expanding, or
6344+7 establishing a manufacturing facility in Illinois that
6345+8 produces semiconductors or key components that directly
6346+9 support the functions of semiconductors. Semiconductor
6347+10 manufacturing also includes the manufacturing of component
6348+11 parts that are required for the development and operation of
6349+12 quantum computers and quantum computing facilities.
6350+13 "Statewide baseline" means the total number of full-time
6351+14 employees of the applicant and any related member employed by
6352+15 such entities at the time of application for incentives under
6353+16 this Act.
6354+17 "Taxpayer" means an individual, corporation, partnership,
6355+18 or other entity that has a legal obligation to pay Illinois
6356+19 income taxes and file an Illinois income tax return.
6357+20 "Training costs" means costs incurred to upgrade the
6358+21 technological skills of full-time employees in Illinois and
6359+22 includes: curriculum development; training materials
6360+23 (including scrap product costs); trainee domestic travel
6361+24 expenses; instructor costs (including wages, fringe benefits,
6362+25 tuition and domestic travel expenses); rent, purchase or lease
6363+26 of training equipment; and other usual and customary training
6364+
6365+
6366+
6367+
6368+
6369+ HB5005 Enrolled - 178 - LRB103 37016 SPS 67131 b
6370+
6371+
6372+HB5005 Enrolled- 179 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 179 - LRB103 37016 SPS 67131 b
6373+ HB5005 Enrolled - 179 - LRB103 37016 SPS 67131 b
6374+1 costs. "Training costs" do not include costs associated with
6375+2 travel outside the United States (unless the taxpayer receives
6376+3 prior written approval for the travel by the Director based on
6377+4 a showing of substantial need or other proof the training is
6378+5 not reasonably available within the United States), wages and
6379+6 fringe benefits of employees during periods of training, or
6380+7 administrative cost related to full-time employees of the
6381+8 taxpayer.
6382+9 "Underserved area" means any geographic area areas as
6383+10 defined in Section 5-5 of the Economic Development for a
6384+11 Growing Economy Tax Credit Act.
6385+12 (Source: P.A. 102-700, eff. 4-19-22.)
6386+13 (35 ILCS 45/110-20)
6387+14 Sec. 110-20. Manufacturing Illinois Chips for Real
6388+15 Opportunity (MICRO) Program; project applications.
6389+16 (a) The Manufacturing Illinois Chips for Real Opportunity
6390+17 (MICRO) Program is hereby established and shall be
6391+18 administered by the Department. The Program will provide
6392+19 financial incentives to eligible semiconductor manufacturers,
6393+20 and microchip manufacturers, quantum computer manufacturers,
6394+21 and companies that primarily engage in research and
6395+22 development in the manufacturing of quantum computers,
6396+23 semiconductors, or microchips. For the purposes of this
6397+24 Section, a company is primarily engaged in research and
6398+25 development in the manufacturing of quantum computers,
6399+
6400+
6401+
6402+
6403+
6404+ HB5005 Enrolled - 179 - LRB103 37016 SPS 67131 b
6405+
6406+
6407+HB5005 Enrolled- 180 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 180 - LRB103 37016 SPS 67131 b
6408+ HB5005 Enrolled - 180 - LRB103 37016 SPS 67131 b
6409+1 semiconductors, or microchips if at least 50% of its business
6410+2 activities involve research and development in the
6411+3 manufacturing of quantum computers, semiconductors, or
6412+4 microchips..
6413+5 (b) Any taxpayer planning a project to be located in
6414+6 Illinois may request consideration for designation of its
6415+7 project as a MICRO project, by formal written letter of
6416+8 request or by formal application to the Department, in which
6417+9 the applicant states its intent to make at least a specified
6418+10 level of investment and intends to hire a specified number of
6419+11 full-time employees at a designated location in Illinois. As
6420+12 circumstances require, the Department shall require a formal
6421+13 application from an applicant and a formal letter of request
6422+14 for assistance.
6423+15 (c) In order to qualify for credits under the program, an
6424+16 applicant must:
6425+17 (1) for a semiconductor manufacturer, a or microchip
6426+18 manufacturer, a quantum computer manufacturer, or a
6427+19 company focusing on research and development in the
6428+20 manufacturing of quantum computers, semiconductors, or
6429+21 microchips:
6430+22 (A) make an investment of at least $1,500,000,000
6431+23 in capital improvements at the project site;
6432+24 (B) to be placed in service within the State
6433+25 within a 60-month period after approval of the
6434+26 application; and
6435+
6436+
6437+
6438+
6439+
6440+ HB5005 Enrolled - 180 - LRB103 37016 SPS 67131 b
6441+
6442+
6443+HB5005 Enrolled- 181 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 181 - LRB103 37016 SPS 67131 b
6444+ HB5005 Enrolled - 181 - LRB103 37016 SPS 67131 b
6445+1 (C) create at least 500 new full-time employee
6446+2 jobs; or
6447+3 (2) for a semiconductor component parts manufacturer,
6448+4 a or microchip component parts manufacturer, a quantum
6449+5 computer component parts manufacturer, or a company
6450+6 focusing on research and development in the manufacture of
6451+7 component parts for quantum computers, semiconductors, or
6452+8 microchips:
6453+9 (A) make an investment of at least $300,000,000 in
6454+10 capital improvements at the project site;
6455+11 (B) manufacture one or more parts that are
6456+12 primarily used for the manufacture of semiconductors
6457+13 or microchips;
6458+14 (C) to be placed in service within the State
6459+15 within a 60-month period after approval of the
6460+16 application; and
6461+17 (D) create at least 150 new full-time employee
6462+18 jobs; or
6463+19 (3) for a semiconductor manufacturer, a or microchip
6464+20 manufacturer, a quantum computer manufacturer, a company
6465+21 focusing on research and development in the manufacturing
6466+22 of quantum computers, semiconductors, or microchips, or or
6467+23 a semiconductor or microchip component parts manufacturer
6468+24 that does not quality under paragraph (2) above:
6469+25 (A) make an investment of at least $2,500,000
6470+26 $20,000,000 in capital improvements at the project
6471+
6472+
6473+
6474+
6475+
6476+ HB5005 Enrolled - 181 - LRB103 37016 SPS 67131 b
6477+
6478+
6479+HB5005 Enrolled- 182 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 182 - LRB103 37016 SPS 67131 b
6480+ HB5005 Enrolled - 182 - LRB103 37016 SPS 67131 b
6481+1 site;
6482+2 (B) to be placed in service within the State
6483+3 within a 48-month period after approval of the
6484+4 application; and
6485+5 (C) create at least 50 new full-time employee jobs
6486+6 or new full-time employees equivalent to 10% of the
6487+7 number of full-time employees employed by the
6488+8 applicant world-wide on the date the application is
6489+9 filed with the Department; or
6490+10 (4) for a semiconductor manufacturer, quantum computer
6491+11 manufacturer, or microchip manufacturer, or a
6492+12 semiconductor or microchip component parts manufacturer
6493+13 with existing operations in Illinois that intends to
6494+14 convert or expand, in whole or in part, the existing
6495+15 facility from traditional manufacturing to semiconductor
6496+16 manufacturing, quantum computer manufacturing, or
6497+17 microchip manufacturing or semiconductor, quantum
6498+18 computer, or microchip component parts manufacturing, or a
6499+19 company focusing on research and development in the
6500+20 manufacturing of quantum computers, semiconductors, or
6501+21 microchips:
6502+22 (A) make an investment of at least $100,000,000 in
6503+23 capital improvements at the project site;
6504+24 (B) to be placed in service within the State
6505+25 within a 60-month period after approval of the
6506+26 application; and
6507+
6508+
6509+
6510+
6511+
6512+ HB5005 Enrolled - 182 - LRB103 37016 SPS 67131 b
6513+
6514+
6515+HB5005 Enrolled- 183 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 183 - LRB103 37016 SPS 67131 b
6516+ HB5005 Enrolled - 183 - LRB103 37016 SPS 67131 b
6517+1 (C) create the lesser of 75 new full-time employee
6518+2 jobs or new full-time employee jobs equivalent to 10%
6519+3 of the Statewide baseline applicable to the taxpayer
6520+4 and any related member at the time of application.
6521+5 (d) For any applicant creating the full-time employee jobs
6522+6 noted in subsection (c), those jobs must have a total
6523+7 compensation equal to or greater than 120% of the average wage
6524+8 paid to full-time employees in the county where the project is
6525+9 located, as determined by the Department.
6526+10 (e) Each applicant must outline its hiring plan and
6527+11 commitment to recruit and hire full-time employee positions at
6528+12 the project site. The hiring plan may include a partnership
6529+13 with an institution of higher education to provide
6530+14 internships, including, but not limited to, internships
6531+15 supported by the Clean Jobs Workforce Network Program, or
6532+16 full-time permanent employment for students at the project
6533+17 site. Additionally, the applicant may create or utilize
6534+18 participants from apprenticeship programs that are approved by
6535+19 and registered with the United States Department of Labor's
6536+20 Bureau of Apprenticeship and Training. The Applicant may apply
6537+21 for apprenticeship education expense credits in accordance
6538+22 with the provisions set forth in 14 Ill. Admin. Code 522. Each
6539+23 applicant is required to report annually, on or before April
6540+24 15, on the diversity of its workforce in accordance with
6541+25 Section 110-50 of this Act. For existing facilities of
6542+26 applicants under paragraph (3) of subsection (b) above, if the
6543+
6544+
6545+
6546+
6547+
6548+ HB5005 Enrolled - 183 - LRB103 37016 SPS 67131 b
6549+
6550+
6551+HB5005 Enrolled- 184 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 184 - LRB103 37016 SPS 67131 b
6552+ HB5005 Enrolled - 184 - LRB103 37016 SPS 67131 b
6553+1 taxpayer expects a reduction in force due to its transition to
6554+2 manufacturing semiconductors, microchips, or semiconductor or
6555+3 microchip component parts, the plan submitted under this
6556+4 Section must outline the taxpayer's plan to assist with
6557+5 retraining its workforce aligned with the taxpayer's adoption
6558+6 of new technologies and anticipated efforts to retrain
6559+7 employees through employment opportunities within the
6560+8 taxpayer's workforce.
6561+9 (f) A taxpayer may not enter into more than one agreement
6562+10 under this Act with respect to a single address or location for
6563+11 the same period of time. Also, a taxpayer may not enter into an
6564+12 agreement under this Act with respect to a single address or
6565+13 location for the same period of time for which the taxpayer
6566+14 currently holds an active agreement under the Economic
6567+15 Development for a Growing Economy Tax Credit Act. This
6568+16 provision does not preclude the applicant from entering into
6569+17 an additional agreement after the expiration or voluntary
6570+18 termination of an earlier agreement under this Act or under
6571+19 the Economic Development for a Growing Economy Tax Credit Act
6572+20 to the extent that the taxpayer's application otherwise
6573+21 satisfies the terms and conditions of this Act and is approved
6574+22 by the Department. An applicant with an existing agreement
6575+23 under the Economic Development for a Growing Economy Tax
6576+24 Credit Act may submit an application for an agreement under
6577+25 this Act after it terminates any existing agreement under the
6578+26 Economic Development for a Growing Economy Tax Credit Act with
6579+
6580+
6581+
6582+
6583+
6584+ HB5005 Enrolled - 184 - LRB103 37016 SPS 67131 b
6585+
6586+
6587+HB5005 Enrolled- 185 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 185 - LRB103 37016 SPS 67131 b
6588+ HB5005 Enrolled - 185 - LRB103 37016 SPS 67131 b
6589+1 respect to the same address or location.
6590+2 (Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
6591+3 (35 ILCS 45/110-35)
6592+4 Sec. 110-35. Relocation of jobs in Illinois. A taxpayer is
6593+5 not entitled to claim a credit provided by this Act with
6594+6 respect to any jobs that the taxpayer relocates from one site
6595+7 in Illinois to another site in Illinois unless the taxpayer
6596+8 has agreed to hire the minimum number of new employees and the
6597+9 Department has determined that the expansion cannot reasonably
6598+10 be accommodated within the municipality in which the business
6599+11 is located. Any full-time employee relocated to Illinois in
6600+12 connection with a qualifying project is deemed to be a new
6601+13 employee for purposes of this Act. Determinations under this
6602+14 Section shall be made by the Department.
6603+15 (Source: P.A. 102-700, eff. 4-19-22.)
6604+16 (35 ILCS 45/110-65)
6605+17 Sec. 110-65. Certified payroll.
6606+18 (a) Annually, until construction is completed, a company
6607+19 seeking MICRO Construction Job Credits shall submit a report
6608+20 that, at a minimum, describes the projected project scope,
6609+21 timeline, and anticipated budget. Once the project has
6610+22 commenced, the annual report shall include actual data for the
6611+23 prior year as well as projections for each additional year
6612+24 through completion of the project. The Department shall issue
6613+
6614+
6615+
6616+
6617+
6618+ HB5005 Enrolled - 185 - LRB103 37016 SPS 67131 b
6619+
6620+
6621+HB5005 Enrolled- 186 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 186 - LRB103 37016 SPS 67131 b
6622+ HB5005 Enrolled - 186 - LRB103 37016 SPS 67131 b
6623+1 detailed reporting guidelines prescribing the requirements of
6624+2 construction-related reports. Each contractor and
6625+3 subcontractor that is engaged in construction work on project
6626+4 facilities for a taxpayer who seeks to apply for a MICRO
6627+5 Construction Jobs Credit shall:
6628+6 (1) make and keep, for a period of 5 years from the
6629+7 date of the last payment made on a contract or subcontract
6630+8 for construction of facilities for a project pursuant to
6631+9 an agreement, records of all laborers and other workers
6632+10 employed by the contractor or subcontractor on the
6633+11 project; the records shall include:
6634+12 (A) the worker's name;
6635+13 (B) the worker's address;
6636+14 (C) the worker's telephone number, if available;
6637+15 (D) the worker's social security number;
6638+16 (E) the worker's classification or
6639+17 classifications;
6640+18 (F) the worker's gross and net wages paid in each
6641+19 pay period;
6642+20 (G) the worker's number of hours worked in each
6643+21 day;
6644+22 (H) the worker's starting and ending times of work
6645+23 each day;
6646+24 (I) the worker's hourly wage rate; and
6647+25 (J) the worker's hourly overtime wage rate; and
6648+26 (2) no later than the 15th day of each calendar month,
6649+
6650+
6651+
6652+
6653+
6654+ HB5005 Enrolled - 186 - LRB103 37016 SPS 67131 b
6655+
6656+
6657+HB5005 Enrolled- 187 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 187 - LRB103 37016 SPS 67131 b
6658+ HB5005 Enrolled - 187 - LRB103 37016 SPS 67131 b
6659+1 provide a certified payroll for the immediately preceding
6660+2 month to the taxpayer in charge of the project; within 5
6661+3 business days after receiving the certified payroll, the
6662+4 taxpayer shall file the certified payroll with the
6663+5 Department of Labor and the Department; a certified
6664+6 payroll must be filed for only those calendar months
6665+7 during which construction on the project facilities has
6666+8 occurred; the certified payroll shall consist of a
6667+9 complete copy of the records identified in paragraph (1),
6668+10 but may exclude the starting and ending times of work each
6669+11 day; the certified payroll shall be accompanied by a
6670+12 statement signed by the contractor or subcontractor or an
6671+13 officer, employee, or agent of the contractor or
6672+14 subcontractor which avers that:
6673+15 (A) he or she has examined the certified payroll
6674+16 records required to be submitted by the Act and such
6675+17 records are true and accurate; and
6676+18 (B) the contractor or subcontractor is aware that
6677+19 filing a certified payroll that he or she knows to be
6678+20 false is a Class A misdemeanor.
6679+21 A general contractor is not prohibited from relying on a
6680+22 certified payroll of a lower-tier subcontractor, provided the
6681+23 general contractor does not knowingly rely upon a
6682+24 subcontractor's false certification.
6683+25 (b) In order to receive credit for construction expenses,
6684+26 the company must provide the Department with evidence that a
6685+
6686+
6687+
6688+
6689+
6690+ HB5005 Enrolled - 187 - LRB103 37016 SPS 67131 b
6691+
6692+
6693+HB5005 Enrolled- 188 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 188 - LRB103 37016 SPS 67131 b
6694+ HB5005 Enrolled - 188 - LRB103 37016 SPS 67131 b
6695+1 certified third party executed an Agreed-Upon Procedure (AUP)
6696+2 verifying the construction expenses or accept the standard
6697+3 construction wage expense estimated by the Department. Any
6698+4 contractor or subcontractor subject to this Section, and any
6699+5 officer, employee, or agent of such contractor or
6700+6 subcontractor whose duty as an officer, employee, or agent it
6701+7 is to file a certified payroll under this Section, who
6702+8 willfully fails to file such a certified payroll, on or before
6703+9 the date such certified payroll is required to be filed and any
6704+10 person who willfully files a false certified payroll as to any
6705+11 material fact is in violation of this Act and guilty of a Class
6706+12 A misdemeanor and may be enforced by the Illinois Department
6707+13 of Labor or the Department. The Attorney General shall
6708+14 represented the Illinois Department of Labor or the Department
6709+15 in the proceeding.
6710+16 (c) Upon review of the final project scope, timeline,
6711+17 budget, and AUP, the Department shall issue a tax credit
6712+18 certificate reflecting a percentage of the total construction
6713+19 job wages paid throughout the completion of the project. The
6714+20 taxpayer in charge of the project shall keep the records
6715+21 submitted in accordance with this Section for a period of 5
6716+22 years from the date of the last payment for work on a contract
6717+23 or subcontract for the project.
6718+24 (d) (Blank). The records submitted in accordance with this
6719+25 Section shall be considered public records, except an
6720+26 employee's address, telephone number, and social security
6721+
6722+
6723+
6724+
6725+
6726+ HB5005 Enrolled - 188 - LRB103 37016 SPS 67131 b
6727+
6728+
6729+HB5005 Enrolled- 189 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 189 - LRB103 37016 SPS 67131 b
6730+ HB5005 Enrolled - 189 - LRB103 37016 SPS 67131 b
6731+1 number, which shall be redacted. The records shall be made
6732+2 publicly available in accordance with the Freedom of
6733+3 Information Act. The contractor or subcontractor shall submit
6734+4 reports to the Department of Labor electronically that meet
6735+5 the requirements of this subsection and shall share the
6736+6 information with the Department to comply with the awarding of
6737+7 the MICRO Construction Jobs Credit. A contractor,
6738+8 subcontractor, or public body may retain records required
6739+9 under this Section in paper or electronic format.
6740+10 (e) Upon 7 business days' notice, the taxpayer contractor
6741+11 and each subcontractor shall make available to each State
6742+12 agency and to federal, State, or local law enforcement
6743+13 agencies and prosecutors for inspection and copying at a
6744+14 location within this State during reasonable hours, the report
6745+15 described in subsection (a) records identified in paragraph
6746+16 (1) of this subsection to the taxpayer in charge of the
6747+17 Project, its officers and agents, the Director of the
6748+18 Department of Labor and his/her deputies and agents, and to
6749+19 federal, State, or local law enforcement agencies and
6750+20 prosecutors.
6751+21 (Source: P.A. 102-700, eff. 4-19-22.)
6752+22 (35 ILCS 45/110-95)
6753+23 Sec. 110-95. Utility tax exemptions for MICRO projects.
6754+24 The Department may certify a taxpayer with a credit for a
6755+25 project that meets the qualifications under paragraphs (1),
6756+
6757+
6758+
6759+
6760+
6761+ HB5005 Enrolled - 189 - LRB103 37016 SPS 67131 b
6762+
6763+
6764+HB5005 Enrolled- 190 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 190 - LRB103 37016 SPS 67131 b
6765+ HB5005 Enrolled - 190 - LRB103 37016 SPS 67131 b
6766+1 (2), and (4) of subsection (c) of Section 110-20, subject to an
6767+2 agreement under this Act, for an exemption from the tax
6768+3 imposed at the project site by Section 2-4 of the Electricity
6769+4 Excise Tax Law. To receive such certification, the taxpayer
6770+5 must be registered to self-assess that tax. The taxpayer is
6771+6 also exempt from any additional charges added to the
6772+7 taxpayer's utility bills at the project site as a pass-on of
6773+8 State utility taxes under Section 9-222 of the Public
6774+9 Utilities Act. The taxpayer must meet any other the criteria
6775+10 for certification set by the Department.
6776+11 The Department shall determine the period during which the
6777+12 exemption from the Electricity Excise Tax Law and the charges
6778+13 imposed under Section 9-222 of the Public Utilities Act are in
6779+14 effect, which shall not exceed 30 10 years from the date of the
6780+15 taxpayer's initial receipt of certification from the
6781+16 Department under this Section.
6782+17 The Department is authorized to adopt rules to carry out
6783+18 the provisions of this Section, including procedures to apply
6784+19 for the exemptions; to define the amounts and types of
6785+20 eligible investments that an applicant must make in order to
6786+21 receive electricity excise tax exemptions or exemptions from
6787+22 the additional charges imposed under Section 9-222 and the
6788+23 Public Utilities Act; to approve such electricity excise tax
6789+24 exemptions for applicants whose investments are not yet placed
6790+25 in service; and to require that an applicant granted an
6791+26 electricity excise tax exemption or an exemption from
6792+
6793+
6794+
6795+
6796+
6797+ HB5005 Enrolled - 190 - LRB103 37016 SPS 67131 b
6798+
6799+
6800+HB5005 Enrolled- 191 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 191 - LRB103 37016 SPS 67131 b
6801+ HB5005 Enrolled - 191 - LRB103 37016 SPS 67131 b
6802+1 additional charges under Section 9-222 of the Public Utilities
6803+2 Act repay the exempted amount if the applicant fails to comply
6804+3 with the terms and conditions of the agreement.
6805+4 Upon certification by the Department under this Section,
6806+5 the Department shall notify the Department of Revenue of the
6807+6 certification. The Department of Revenue shall notify the
6808+7 public utilities of the exempt status of any taxpayer
6809+8 certified for exemption under this Act from the electricity
6810+9 excise tax or pass-on charges. The exemption status shall take
6811+10 effect within 3 months after certification of the taxpayer and
6812+11 notice to the Department of Revenue by the Department.
6813+12 (Source: P.A. 102-700, eff. 4-19-22.)
6814+13 Section 35. The Use Tax Act is amended by changing Section
6815+14 12 as follows:
6816+15 (35 ILCS 105/12) (from Ch. 120, par. 439.12)
6817+16 Sec. 12. Applicability of Retailers' Occupation Tax Act
6818+17 and Uniform Penalty and Interest Act. All of the provisions of
6819+18 Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
6820+19 2-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
6821+20 provisions shall run from the date when the tax is due rather
6822+21 than from the date when gross receipts are received), 5
6823+22 (except that the time limitation provisions on the issuance of
6824+23 notices of tax liability shall run from the date when the tax
6825+24 is due rather than from the date when gross receipts are
6826+
6827+
6828+
6829+
6830+
6831+ HB5005 Enrolled - 191 - LRB103 37016 SPS 67131 b
6832+
6833+
6834+HB5005 Enrolled- 192 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 192 - LRB103 37016 SPS 67131 b
6835+ HB5005 Enrolled - 192 - LRB103 37016 SPS 67131 b
6836+1 received and except that in the case of a failure to file a
6837+2 return required by this Act, no notice of tax liability shall
6838+3 be issued on and after each July 1 and January 1 covering tax
6839+4 due with that return during any month or period more than 6
6840+5 years before that July 1 or January 1, respectively), 5a, 5b,
6841+6 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and
6842+7 12 of the Retailers' Occupation Tax Act and Section 3-7 of the
6843+8 Uniform Penalty and Interest Act, which are not inconsistent
6844+9 with this Act, shall apply, as far as practicable, to the
6845+10 subject matter of this Act to the same extent as if such
6846+11 provisions were included herein.
6847+12 (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
6848+13 Section 40. The Service Use Tax Act is amended by changing
6849+14 Section 12 as follows:
6850+15 (35 ILCS 110/12) (from Ch. 120, par. 439.42)
6851+16 Sec. 12. Applicability of Retailers' Occupation Tax Act
6852+17 and Uniform Penalty and Interest Act. All of the provisions of
6853+18 Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
6854+19 2-29, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
6855+20 Department of the money collected under this Act), 4 (except
6856+21 that the time limitation provisions shall run from the date
6857+22 when gross receipts are received), 5 (except that the time
6858+23 limitation provisions on the issuance of notices of tax
6859+24 liability shall run from the date when the tax is due rather
6860+
6861+
6862+
6863+
6864+
6865+ HB5005 Enrolled - 192 - LRB103 37016 SPS 67131 b
6866+
6867+
6868+HB5005 Enrolled- 193 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 193 - LRB103 37016 SPS 67131 b
6869+ HB5005 Enrolled - 193 - LRB103 37016 SPS 67131 b
6870+1 than from the date when gross receipts are received and except
6871+2 that in the case of a failure to file a return required by this
6872+3 Act, no notice of tax liability shall be issued on and after
6873+4 July 1 and January 1 covering tax due with that return during
6874+5 any month or period more than 6 years before that July 1 or
6875+6 January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
6876+7 5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
6877+8 Occupation Tax Act which are not inconsistent with this Act,
6878+9 and Section 3-7 of the Uniform Penalty and Interest Act, shall
6879+10 apply, as far as practicable, to the subject matter of this Act
6880+11 to the same extent as if such provisions were included herein.
6881+12 (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
6882+13 Section 45. The Service Occupation Tax Act is amended by
6883+14 changing Section 12 as follows:
6884+15 (35 ILCS 115/12) (from Ch. 120, par. 439.112)
6885+16 Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
6886+17 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-29, 2-54, 2a, 2b, 2c, 3
6887+18 (except as to the disposition by the Department of the tax
6888+19 collected under this Act), 4 (except that the time limitation
6889+20 provisions shall run from the date when the tax is due rather
6890+21 than from the date when gross receipts are received), 5
6891+22 (except that the time limitation provisions on the issuance of
6892+23 notices of tax liability shall run from the date when the tax
6893+24 is due rather than from the date when gross receipts are
6894+
6895+
6896+
6897+
6898+
6899+ HB5005 Enrolled - 193 - LRB103 37016 SPS 67131 b
6900+
6901+
6902+HB5005 Enrolled- 194 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 194 - LRB103 37016 SPS 67131 b
6903+ HB5005 Enrolled - 194 - LRB103 37016 SPS 67131 b
6904+1 received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d,
6905+2 7, 8, 9, 10, 11, and 12 of the "Retailers' Occupation Tax Act"
6906+3 which are not inconsistent with this Act, and Section 3-7 of
6907+4 the Uniform Penalty and Interest Act shall apply, as far as
6908+5 practicable, to the subject matter of this Act to the same
6909+6 extent as if such provisions were included herein.
6910+7 (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
6911+8 revised 9-26-23.)
6912+9 Section 50. The Retailers' Occupation Tax Act is amended
6913+10 by adding Section 2-29 as follows:
6914+11 (35 ILCS 120/2-29 new)
6915+12 Sec. 2-29. Quantum computing campus building materials
6916+13 exemption.
6917+14 (a) Each retailer who makes a qualified sale of building
6918+15 materials to be incorporated into real estate at a quantum
6919+16 computing campus certified by the Department of Commerce and
6920+17 Economic Opportunity under Section 605-1115 of the Department
6921+18 of Commerce and Economic Opportunity Law of the Civil
6922+19 Administrative Code of Illinois may deduct receipts from those
6923+20 sales when calculating the tax imposed by this Act. Quantum
6924+21 Computing Campus Building Materials Exemption Certificates
6925+22 shall be issued for an initial period not to exceed 20 years
6926+23 and can be renewed once for a period not to exceed 20 years.
6927+24 (b) No retailer who is eligible for the deduction or
6928+
6929+
6930+
6931+
6932+
6933+ HB5005 Enrolled - 194 - LRB103 37016 SPS 67131 b
6934+
6935+
6936+HB5005 Enrolled- 195 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 195 - LRB103 37016 SPS 67131 b
6937+ HB5005 Enrolled - 195 - LRB103 37016 SPS 67131 b
6938+1 credit for a given sale under Section 5k of this Act related to
6939+2 enterprise zones, Section 5l of this Act related to High
6940+3 Impact Businesses, Section 5m of this Act related to REV
6941+4 Illinois projects, or Section 5n of this Act related to MICRO
6942+5 facilities shall be eligible for the deduction or credit
6943+6 authorized under this Section for that same sale.
6944+7 (c) A construction contractor or other entity shall not
6945+8 make tax-free purchases unless it has an active Exemption
6946+9 Certificate issued by the Department at the time of the
6947+10 purchase.
6948+11 (d) A taxpayer that is certified by the Department of
6949+12 Commerce and Economic Opportunity under Section 605-1115 of
6950+13 the Department of Commerce and Economic Opportunity Law of the
6951+14 Civil Administrative Code of Illinois shall submit a request
6952+15 to the Department for an initial or renewal Quantum Computing
6953+16 Campus Materials Exemption Certificate. Upon request from the
6954+17 certified taxpayer, the Department shall issue a Quantum
6955+18 Computing Campus Building Materials Exemption Certificate for
6956+19 each construction contractor or other entity identified by the
6957+20 certified taxpayer. The Department shall make the Quantum
6958+21 Computing Campus Building Materials Exemption Certificates
6959+22 available to each construction contractor or other entity
6960+23 identified by the certified taxpayer and to the certified
6961+24 taxpayer. The request for Quantum Computing Campus Building
6962+25 Materials Exemption Certificates under this Section must
6963+26 include the following information:
6964+
6965+
6966+
6967+
6968+
6969+ HB5005 Enrolled - 195 - LRB103 37016 SPS 67131 b
6970+
6971+
6972+HB5005 Enrolled- 196 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 196 - LRB103 37016 SPS 67131 b
6973+ HB5005 Enrolled - 196 - LRB103 37016 SPS 67131 b
6974+1 (1) the name and address of the construction
6975+2 contractor or other entity;
6976+3 (2) the name and location or address of the building
6977+4 project site;
6978+5 (3) the estimated amount of the exemption for each
6979+6 construction contractor or other entity for which a
6980+7 request for a Quantum Computing Campus Building Materials
6981+8 Exemption Certificate is made, based on a stated estimated
6982+9 average tax rate and the percentage of the contract that
6983+10 consists of materials;
6984+11 (4) the period of time over which supplies for the
6985+12 project are expected to be purchased; and
6986+13 (5) other reasonable information as the Department may
6987+14 require, including, but not limited to, FEIN numbers, to
6988+15 determine if the contractor or other entity, or any
6989+16 partner, or a corporate officer, and in the case of a
6990+17 limited liability company, any manager or member, of the
6991+18 construction contractor or other entity, is or has been
6992+19 the owner, a partner, a corporate officer, and, in the
6993+20 case of a limited liability company, a manager or member,
6994+21 of a person that is in default for moneys due to the
6995+22 Department under this Act or any other tax or fee Act
6996+23 administered by the Department.
6997+24 The Department, in its discretion, may require that the
6998+25 request for Quantum Computing Campus Building Materials
6999+26 Exemption Certificates be submitted electronically. The
7000+
7001+
7002+
7003+
7004+
7005+ HB5005 Enrolled - 196 - LRB103 37016 SPS 67131 b
7006+
7007+
7008+HB5005 Enrolled- 197 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 197 - LRB103 37016 SPS 67131 b
7009+ HB5005 Enrolled - 197 - LRB103 37016 SPS 67131 b
7010+1 Department may, in its discretion, issue the Exemption
7011+2 Certificates electronically.
7012+3 (e) To document the exemption allowed under this Section,
7013+4 the retailer must obtain from the purchaser the certification
7014+5 required under this Section, which must contain the Quantum
7015+6 Computing Campus Building Materials Exemption Certificate
7016+7 number issued to the purchaser by the Department. In addition,
7017+8 the retailer must obtain certification from the purchaser that
7018+9 contains:
7019+10 (1) a statement that the building materials are being
7020+11 purchased for incorporation into real estate located in a
7021+12 quantum computing campus;
7022+13 (2) the location or address of the real estate into
7023+14 which the building materials will be incorporated;
7024+15 (3) the name of the quantum computing campus in which
7025+16 that real estate is located;
7026+17 (4) a description of the building materials being
7027+18 purchased;
7028+19 (5) the purchaser's Quantum Computing Campus Building
7029+20 Materials Exemption Certificate number issued by the
7030+21 Department; and
7031+22 (6) the purchaser's signature and date of purchase.
7032+23 (f) The Department shall issue the Quantum Computing
7033+24 Campus Building Materials Exemption Certificates within 3
7034+25 business days after receipt of the request from the certified
7035+26 taxpayer. This requirement does not apply in circumstances
7036+
7037+
7038+
7039+
7040+
7041+ HB5005 Enrolled - 197 - LRB103 37016 SPS 67131 b
7042+
7043+
7044+HB5005 Enrolled- 198 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 198 - LRB103 37016 SPS 67131 b
7045+ HB5005 Enrolled - 198 - LRB103 37016 SPS 67131 b
7046+1 where the Department, for reasonable cause, is unable to issue
7047+2 the Exemption Certificate within 3 business days. The
7048+3 Department may refuse to issue a Quantum Computing Campus
7049+4 Building Materials Exemption Certificate if the owner, any
7050+5 partner, or a corporate officer, and in the case of a limited
7051+6 liability company, any manager or member, of the construction
7052+7 contractor or other entity is or has been the owner, a partner,
7053+8 a corporate officer, and, in the case of a limited liability
7054+9 company, a manager or member, of a person that is in default
7055+10 for moneys due to the Department under this Act or any other
7056+11 tax or fee Act administered by the Department.
7057+12 (g) The Quantum Computing Campus Building Materials
7058+13 Exemption Certificate shall contain:
7059+14 (1) a unique identifying number that shall be designed
7060+15 in such a way that the Department can identify from the
7061+16 unique number on the Exemption Certificate issued to a
7062+17 given construction contractor or other entity, the name of
7063+18 the quantum computing campus and the construction
7064+19 contractor or other entity to whom the Exemption
7065+20 Certificate is issued;
7066+21 (2) the name of the construction contractor or entity
7067+22 to whom the Exemption Certificate is issued;
7068+23 (3) issuance, effective, and expiration dates; and
7069+24 (4) language stating that if the construction
7070+25 contractor or other entity who is issued the Exemption
7071+26 Certificate makes a tax-exempt purchase, as described in
7072+
7073+
7074+
7075+
7076+
7077+ HB5005 Enrolled - 198 - LRB103 37016 SPS 67131 b
7078+
7079+
7080+HB5005 Enrolled- 199 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 199 - LRB103 37016 SPS 67131 b
7081+ HB5005 Enrolled - 199 - LRB103 37016 SPS 67131 b
7082+1 this Section, that is not eligible for exemption under
7083+2 this Section or allows another person to make a tax-exempt
7084+3 purchase, as described in this Section, that is not
7085+4 eligible for exemption under this Section, then, in
7086+5 addition to any tax or other penalty imposed, the
7087+6 construction contractor or other entity is subject to a
7088+7 penalty equal to the tax that would have been paid by the
7089+8 retailer under this Act as well as any applicable local
7090+9 retailers' occupation tax on the purchase that is not
7091+10 eligible for the exemption.
7092+11 (h) After the Department issues Exemption Certificates for
7093+12 a given quantum computing campus, the certified taxpayer may
7094+13 notify the Department of additional construction contractors
7095+14 or other entities that are eligible for a Quantum Computing
7096+15 Campus Building Materials Exemption Certificate. Upon
7097+16 receiving such a notification and subject to the other
7098+17 provisions of this Section, the Department shall issue a
7099+18 Quantum Computing Campus Building Materials Exemption
7100+19 Certificate to each additional construction contractor or
7101+20 other entity so identified.
7102+21 (i) A certified taxpayer may ask the Department to rescind
7103+22 a Quantum Computing Campus Building Materials Exemption
7104+23 Certificate previously issued by the Department to a
7105+24 construction contractor or other entity working at that
7106+25 certified quantum computing campus if that Quantum Computing
7107+26 Campus Building Materials Exemption Certificate has not yet
7108+
7109+
7110+
7111+
7112+
7113+ HB5005 Enrolled - 199 - LRB103 37016 SPS 67131 b
7114+
7115+
7116+HB5005 Enrolled- 200 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 200 - LRB103 37016 SPS 67131 b
7117+ HB5005 Enrolled - 200 - LRB103 37016 SPS 67131 b
7118+1 expired. Upon receiving such a request and subject to the
7119+2 other provisions of this Section, the Department shall issue
7120+3 the rescission of the Quantum Computing Campus Building
7121+4 Materials Exemption Certificate to the construction contractor
7122+5 or other entity identified by the certified taxpayer and
7123+6 provide a copy of the rescission to the construction
7124+7 contractor or other entity and to the certified taxpayer.
7125+8 (j) If the Department of Revenue determines that a
7126+9 construction contractor or other entity that was issued an
7127+10 Exemption Certificate under this Section made a tax-exempt
7128+11 purchase, as described in this Section, that was not eligible
7129+12 for exemption under this Section or allowed another person to
7130+13 make a tax-exempt purchase, as described in this Section, that
7131+14 was not eligible for exemption under this Section, then, in
7132+15 addition to any tax or other penalty imposed, the construction
7133+16 contractor or other entity is subject to a penalty equal to the
7134+17 tax that would have been paid by the retailer under this Act as
7135+18 well as any applicable local retailers' occupation tax on the
7136+19 purchase that was not eligible for the exemption.
7137+20 (k) Each contractor or other entity that has been issued a
7138+21 Quantum Computing Campus Building Materials Exemption
7139+22 Certificate under this Section shall annually report to the
7140+23 Department the total value of the quantum computing campus
7141+24 building materials exemption from State taxes. Reports shall
7142+25 contain information reasonably required by the Department to
7143+26 enable it to verify and calculate the total tax benefits for
7144+
7145+
7146+
7147+
7148+
7149+ HB5005 Enrolled - 200 - LRB103 37016 SPS 67131 b
7150+
7151+
7152+HB5005 Enrolled- 201 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 201 - LRB103 37016 SPS 67131 b
7153+ HB5005 Enrolled - 201 - LRB103 37016 SPS 67131 b
7154+1 taxes imposed by the State and shall be broken down by quantum
7155+2 computing campus site. Reports are due no later than May 31 of
7156+3 each year and shall cover the previous calendar year. Failure
7157+4 to report data may result in revocation of the Quantum
7158+5 Computing Campus Building Materials Exemption Certificate
7159+6 issued to the contractor or other entity. The Department is
7160+7 authorized to adopt rules governing revocation determinations,
7161+8 including the length of revocation. Factors to be considered
7162+9 in revocations shall include, but are not limited to, prior
7163+10 compliance with the reporting requirements, cooperation in
7164+11 discontinuing and correcting violations, and whether the
7165+12 certificate was used unlawfully during the preceding year. The
7166+13 Department, in its discretion, may require that the reports
7167+14 filed under this Section be submitted electronically.
7168+15 (l) As used in this Section:
7169+16 "Certified taxpayer" means a person certified by the
7170+17 Department of Commerce and Economic Opportunity under Section
7171+18 605-1115 of the Department of Commerce and Economic
7172+19 Opportunity Law of the Civil Administrative Code of Illinois.
7173+20 "Qualified sale" means a sale of building materials that
7174+21 will be incorporated into real estate as part of a building
7175+22 project for which a Quantum Computing Campus Building
7176+23 Materials Exemption Certificate has been issued to the
7177+24 purchaser by the Department.
7178+25 (m) The Department shall have the authority to adopt rules
7179+26 as are reasonable and necessary to implement the provisions of
7180+
7181+
7182+
7183+
7184+
7185+ HB5005 Enrolled - 201 - LRB103 37016 SPS 67131 b
7186+
7187+
7188+HB5005 Enrolled- 202 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 202 - LRB103 37016 SPS 67131 b
7189+ HB5005 Enrolled - 202 - LRB103 37016 SPS 67131 b
7190+1 this Section.
7191+2 (n) This Section is exempt from the provisions of Section
7192+3 2-70.
7193+4 (o) This exemption also applies to the Use Tax Act, the
7194+5 Service Use Tax Act, and the Service Occupation Tax Act and is
7195+6 incorporated by reference in Section 12 of each of those
7196+7 respective Acts.
7197+8 Section 53. The Gas Use Tax Law is amended by changing
7198+9 Section 5-10 as follows:
7199+10 (35 ILCS 173/5-10)
7200+11 Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a
7201+12 tax is imposed upon the privilege of using in this State gas
7202+13 obtained in a purchase of out-of-state gas at the rate of 2.4
7203+14 cents per therm or 5% of the purchase price for the billing
7204+15 period, whichever is the lower rate. Such tax rate shall be
7205+16 referred to as the "self-assessing purchaser tax rate".
7206+17 Beginning with bills issued by delivering suppliers on and
7207+18 after October 1, 2003, purchasers may elect an alternative tax
7208+19 rate of 2.4 cents per therm to be paid under the provisions of
7209+20 Section 5-15 of this Law to a delivering supplier maintaining
7210+21 a place of business in this State. Such tax rate shall be
7211+22 referred to as the "alternate tax rate". The tax imposed under
7212+23 this Section shall not apply to gas used by business
7213+24 enterprises certified under Section 9-222.1 of the Public
7214+
7215+
7216+
7217+
7218+
7219+ HB5005 Enrolled - 202 - LRB103 37016 SPS 67131 b
7220+
7221+
7222+HB5005 Enrolled- 203 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 203 - LRB103 37016 SPS 67131 b
7223+ HB5005 Enrolled - 203 - LRB103 37016 SPS 67131 b
7224+1 Utilities Act or Section 605-1115 of the Department of
7225+2 Commerce and Economic Opportunity Law of the Civil
7226+3 Administrative Code of Illinois, as amended, to the extent of
7227+4 such exemption and during the period of time specified by the
7228+5 Department of Commerce and Economic Opportunity.
7229+6 (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
7230+7 Section 55. The Property Tax Code is amended by changing
7231+8 Sections 18-184.15 and 18-184.20 as follows:
7232+9 (35 ILCS 200/18-184.15)
7233+10 Sec. 18-184.15. REV Illinois project facilities for
7234+11 electric vehicles, electric vehicle component parts, or
7235+12 electric vehicle power supply equipment; abatement.
7236+13 (a) Any taxing district, upon a majority vote of its
7237+14 governing body, may, after determination of the assessed value
7238+15 as set forth in this Code, order the clerk of the appropriate
7239+16 municipality or county to abate, for a period not to exceed 30
7240+17 consecutive years, any portion of real property taxes
7241+18 otherwise levied or extended by the taxing district on a REV
7242+19 Illinois Project facility owned by an electric vehicle
7243+20 manufacturer, electric vehicle component parts manufacturer,
7244+21 or an electric vehicle power supply manufacturer that is
7245+22 subject to an agreement with the Department of Commerce and
7246+23 Economic Opportunity under Section 45 of the Reimagining
7247+24 Energy and Vehicles in Illinois Act, during the period of time
7248+
7249+
7250+
7251+
7252+
7253+ HB5005 Enrolled - 203 - LRB103 37016 SPS 67131 b
7254+
7255+
7256+HB5005 Enrolled- 204 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 204 - LRB103 37016 SPS 67131 b
7257+ HB5005 Enrolled - 204 - LRB103 37016 SPS 67131 b
7258+1 such agreement is in effect as specified by the Department of
7259+2 Commerce and Economic Opportunity.
7260+3 (b) Two or more taxing districts, upon a majority vote of
7261+4 each of their respective governing bodies, may agree to abate,
7262+5 for a period not to exceed 30 consecutive tax years, a portion
7263+6 of the real property taxes otherwise levied or extended by
7264+7 those taxing districts on a REV Illinois Project facility that
7265+8 is subject to an agreement with the Department of Commerce and
7266+9 Economic Opportunity under Section 45 of the Reimagining
7267+10 Energy and Vehicles in Illinois Act. The agreement entered
7268+11 into by the taxing districts under this subsection (b) shall
7269+12 be filed with the county clerk who shall, for the period the
7270+13 agreement remains in effect, abate the portion of the real
7271+14 estate taxes levied or extended by those taxing districts as
7272+15 directed in the agreement. Any such agreement entered into by
7273+16 2 or more taxing districts before the effective date of this
7274+17 amendatory Act of the 103rd General Assembly that is not
7275+18 inconsistent with the provisions of this subsection (b) is
7276+19 hereby declared valid and enforceable for the effective period
7277+20 of that agreement.
7278+21 (Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
7279+22 (35 ILCS 200/18-184.20)
7280+23 Sec. 18-184.20. MICRO Illinois project facilities. Any
7281+24 taxing district, upon a majority vote of its governing body,
7282+25 may, after determination of the assessed value as set forth in
7283+
7284+
7285+
7286+
7287+
7288+ HB5005 Enrolled - 204 - LRB103 37016 SPS 67131 b
7289+
7290+
7291+HB5005 Enrolled- 205 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 205 - LRB103 37016 SPS 67131 b
7292+ HB5005 Enrolled - 205 - LRB103 37016 SPS 67131 b
7293+1 this Code, order the clerk of the appropriate municipality or
7294+2 county to abate, for a period not to exceed 30 consecutive
7295+3 years, any portion of real property taxes otherwise levied or
7296+4 extended by the taxing district on a MICRO Illinois Project
7297+5 facility owned by a semiconductor manufacturer or microchip
7298+6 manufacturer or a semiconductor or microchip component parts
7299+7 manufacturer that is subject to an agreement with the
7300+8 Department of Commerce and Economic Opportunity under the
7301+9 Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
7302+10 during the period of time such agreement is in effect as
7303+11 specified by the Department of Commerce and Economic
7304+12 Opportunity.
7305+13 (Source: P.A. 102-700, eff. 4-19-22.)
7306+14 Section 60. The Telecommunications Excise Tax Act is
7307+15 amended by changing Section 2 as follows:
7308+16 (35 ILCS 630/2) (from Ch. 120, par. 2002)
7309+17 Sec. 2. As used in this Article, unless the context
7310+18 clearly requires otherwise:
7311+19 (a) "Gross charge" means the amount paid for the act or
7312+20 privilege of originating or receiving telecommunications in
7313+21 this State and for all services and equipment provided in
7314+22 connection therewith by a retailer, valued in money whether
7315+23 paid in money or otherwise, including cash, credits, services
7316+24 and property of every kind or nature, and shall be determined
7317+
7318+
7319+
7320+
7321+
7322+ HB5005 Enrolled - 205 - LRB103 37016 SPS 67131 b
7323+
7324+
7325+HB5005 Enrolled- 206 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 206 - LRB103 37016 SPS 67131 b
7326+ HB5005 Enrolled - 206 - LRB103 37016 SPS 67131 b
7327+1 without any deduction on account of the cost of such
7328+2 telecommunications, the cost of materials used, labor or
7329+3 service costs or any other expense whatsoever. In case credit
7330+4 is extended, the amount thereof shall be included only as and
7331+5 when paid. "Gross charges" for private line service shall
7332+6 include charges imposed at each channel termination point
7333+7 within this State, charges for the channel mileage between
7334+8 each channel termination point within this State, and charges
7335+9 for that portion of the interstate inter-office channel
7336+10 provided within Illinois. Charges for that portion of the
7337+11 interstate inter-office channel provided in Illinois shall be
7338+12 determined by the retailer as follows: (i) for interstate
7339+13 inter-office channels having 2 channel termination points,
7340+14 only one of which is in Illinois, 50% of the total charge
7341+15 imposed; or (ii) for interstate inter-office channels having
7342+16 more than 2 channel termination points, one or more of which
7343+17 are in Illinois, an amount equal to the total charge
7344+18 multiplied by a fraction, the numerator of which is the number
7345+19 of channel termination points within Illinois and the
7346+20 denominator of which is the total number of channel
7347+21 termination points. Prior to January 1, 2004, any method
7348+22 consistent with this paragraph or other method that reasonably
7349+23 apportions the total charges for interstate inter-office
7350+24 channels among the states in which channel terminations points
7351+25 are located shall be accepted as a reasonable method to
7352+26 determine the charges for that portion of the interstate
7353+
7354+
7355+
7356+
7357+
7358+ HB5005 Enrolled - 206 - LRB103 37016 SPS 67131 b
7359+
7360+
7361+HB5005 Enrolled- 207 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 207 - LRB103 37016 SPS 67131 b
7362+ HB5005 Enrolled - 207 - LRB103 37016 SPS 67131 b
7363+1 inter-office channel provided within Illinois for that period.
7364+2 However, "gross charges" shall not include any of the
7365+3 following:
7366+4 (1) Any amounts added to a purchaser's bill because of
7367+5 a charge made pursuant to (i) the tax imposed by this
7368+6 Article; (ii) charges added to customers' bills pursuant
7369+7 to the provisions of Sections 9-221 or 9-222 of the Public
7370+8 Utilities Act, as amended, or any similar charges added to
7371+9 customers' bills by retailers who are not subject to rate
7372+10 regulation by the Illinois Commerce Commission for the
7373+11 purpose of recovering any of the tax liabilities or other
7374+12 amounts specified in such provisions of such Act; (iii)
7375+13 the tax imposed by Section 4251 of the Internal Revenue
7376+14 Code; (iv) 911 surcharges; or (v) the tax imposed by the
7377+15 Simplified Municipal Telecommunications Tax Act.
7378+16 (2) Charges for a sent collect telecommunication
7379+17 received outside of the State.
7380+18 (3) Charges for leased time on equipment or charges
7381+19 for the storage of data or information for subsequent
7382+20 retrieval or the processing of data or information
7383+21 intended to change its form or content. Such equipment
7384+22 includes, but is not limited to, the use of calculators,
7385+23 computers, data processing equipment, tabulating equipment
7386+24 or accounting equipment and also includes the usage of
7387+25 computers under a time-sharing agreement.
7388+26 (4) Charges for customer equipment, including such
7389+
7390+
7391+
7392+
7393+
7394+ HB5005 Enrolled - 207 - LRB103 37016 SPS 67131 b
7395+
7396+
7397+HB5005 Enrolled- 208 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 208 - LRB103 37016 SPS 67131 b
7398+ HB5005 Enrolled - 208 - LRB103 37016 SPS 67131 b
7399+1 equipment that is leased or rented by the customer from
7400+2 any source, wherein such charges are disaggregated and
7401+3 separately identified from other charges.
7402+4 (5) Charges to business enterprises certified under
7403+5 Section 9-222.1 of the Public Utilities Act, as amended,
7404+6 or under Section 95 of the Reimagining Energy and Vehicles
7405+7 in Illinois Act, to the extent of such exemption and
7406+8 during the period of time specified by the Department of
7407+9 Commerce and Economic Opportunity.
7408+10 (5.1) Charges to business enterprises certified under
7409+11 the Manufacturing Illinois Chips for Real Opportunity
7410+12 (MICRO) Act, to the extent of the exemption and during the
7411+13 period of time specified by the Department of Commerce and
7412+14 Economic Opportunity.
7413+15 (5.2) Charges to entities certified under Section
7414+16 605-1115 of the Department of Commerce and Economic
7415+17 Opportunity Law of the Civil Administrative Code of
7416+18 Illinois to the extent of the exemption and during the
7417+19 period of time specified by the Department of Commerce and
7418+20 Economic Opportunity.
7419+21 (6) Charges for telecommunications and all services
7420+22 and equipment provided in connection therewith between a
7421+23 parent corporation and its wholly owned subsidiaries or
7422+24 between wholly owned subsidiaries when the tax imposed
7423+25 under this Article has already been paid to a retailer and
7424+26 only to the extent that the charges between the parent
7425+
7426+
7427+
7428+
7429+
7430+ HB5005 Enrolled - 208 - LRB103 37016 SPS 67131 b
7431+
7432+
7433+HB5005 Enrolled- 209 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 209 - LRB103 37016 SPS 67131 b
7434+ HB5005 Enrolled - 209 - LRB103 37016 SPS 67131 b
7435+1 corporation and wholly owned subsidiaries or between
7436+2 wholly owned subsidiaries represent expense allocation
7437+3 between the corporations and not the generation of profit
7438+4 for the corporation rendering such service.
7439+5 (7) Bad debts. Bad debt means any portion of a debt
7440+6 that is related to a sale at retail for which gross charges
7441+7 are not otherwise deductible or excludable that has become
7442+8 worthless or uncollectable, as determined under applicable
7443+9 federal income tax standards. If the portion of the debt
7444+10 deemed to be bad is subsequently paid, the retailer shall
7445+11 report and pay the tax on that portion during the
7446+12 reporting period in which the payment is made.
7447+13 (8) Charges paid by inserting coins in coin-operated
7448+14 telecommunication devices.
7449+15 (9) Amounts paid by telecommunications retailers under
7450+16 the Telecommunications Municipal Infrastructure
7451+17 Maintenance Fee Act.
7452+18 (10) Charges for nontaxable services or
7453+19 telecommunications if (i) those charges are aggregated
7454+20 with other charges for telecommunications that are
7455+21 taxable, (ii) those charges are not separately stated on
7456+22 the customer bill or invoice, and (iii) the retailer can
7457+23 reasonably identify the nontaxable charges on the
7458+24 retailer's books and records kept in the regular course of
7459+25 business. If the nontaxable charges cannot reasonably be
7460+26 identified, the gross charge from the sale of both taxable
7461+
7462+
7463+
7464+
7465+
7466+ HB5005 Enrolled - 209 - LRB103 37016 SPS 67131 b
7467+
7468+
7469+HB5005 Enrolled- 210 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 210 - LRB103 37016 SPS 67131 b
7470+ HB5005 Enrolled - 210 - LRB103 37016 SPS 67131 b
7471+1 and nontaxable services or telecommunications billed on a
7472+2 combined basis shall be attributed to the taxable services
7473+3 or telecommunications. The burden of proving nontaxable
7474+4 charges shall be on the retailer of the
7475+5 telecommunications.
7476+6 (b) "Amount paid" means the amount charged to the
7477+7 taxpayer's service address in this State regardless of where
7478+8 such amount is billed or paid.
7479+9 (c) "Telecommunications", in addition to the meaning
7480+10 ordinarily and popularly ascribed to it, includes, without
7481+11 limitation, messages or information transmitted through use of
7482+12 local, toll and wide area telephone service; private line
7483+13 services; channel services; telegraph services;
7484+14 teletypewriter; computer exchange services; cellular mobile
7485+15 telecommunications service; specialized mobile radio;
7486+16 stationary two way radio; paging service; or any other form of
7487+17 mobile and portable one-way or two-way communications; or any
7488+18 other transmission of messages or information by electronic or
7489+19 similar means, between or among points by wire, cable,
7490+20 fiber-optics, laser, microwave, radio, satellite or similar
7491+21 facilities. As used in this Act, "private line" means a
7492+22 dedicated non-traffic sensitive service for a single customer,
7493+23 that entitles the customer to exclusive or priority use of a
7494+24 communications channel or group of channels, from one or more
7495+25 specified locations to one or more other specified locations.
7496+26 The definition of "telecommunications" shall not include value
7497+
7498+
7499+
7500+
7501+
7502+ HB5005 Enrolled - 210 - LRB103 37016 SPS 67131 b
7503+
7504+
7505+HB5005 Enrolled- 211 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 211 - LRB103 37016 SPS 67131 b
7506+ HB5005 Enrolled - 211 - LRB103 37016 SPS 67131 b
7507+1 added services in which computer processing applications are
7508+2 used to act on the form, content, code and protocol of the
7509+3 information for purposes other than transmission.
7510+4 "Telecommunications" shall not include purchases of
7511+5 telecommunications by a telecommunications service provider
7512+6 for use as a component part of the service provided by him to
7513+7 the ultimate retail consumer who originates or terminates the
7514+8 taxable end-to-end communications. Carrier access charges,
7515+9 right of access charges, charges for use of inter-company
7516+10 facilities, and all telecommunications resold in the
7517+11 subsequent provision of, used as a component of, or integrated
7518+12 into end-to-end telecommunications service shall be
7519+13 non-taxable as sales for resale.
7520+14 (d) "Interstate telecommunications" means all
7521+15 telecommunications that either originate or terminate outside
7522+16 this State.
7523+17 (e) "Intrastate telecommunications" means all
7524+18 telecommunications that originate and terminate within this
7525+19 State.
7526+20 (f) "Department" means the Department of Revenue of the
7527+21 State of Illinois.
7528+22 (g) "Director" means the Director of Revenue for the
7529+23 Department of Revenue of the State of Illinois.
7530+24 (h) "Taxpayer" means a person who individually or through
7531+25 his agents, employees or permittees engages in the act or
7532+26 privilege of originating or receiving telecommunications in
7533+
7534+
7535+
7536+
7537+
7538+ HB5005 Enrolled - 211 - LRB103 37016 SPS 67131 b
7539+
7540+
7541+HB5005 Enrolled- 212 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 212 - LRB103 37016 SPS 67131 b
7542+ HB5005 Enrolled - 212 - LRB103 37016 SPS 67131 b
7543+1 this State and who incurs a tax liability under this Article.
7544+2 (i) "Person" means any natural individual, firm, trust,
7545+3 estate, partnership, association, joint stock company, joint
7546+4 venture, corporation, limited liability company, or a
7547+5 receiver, trustee, guardian or other representative appointed
7548+6 by order of any court, the Federal and State governments,
7549+7 including State universities created by statute or any city,
7550+8 town, county or other political subdivision of this State.
7551+9 (j) "Purchase at retail" means the acquisition,
7552+10 consumption or use of telecommunication through a sale at
7553+11 retail.
7554+12 (k) "Sale at retail" means the transmitting, supplying or
7555+13 furnishing of telecommunications and all services and
7556+14 equipment provided in connection therewith for a consideration
7557+15 to persons other than the Federal and State governments, and
7558+16 State universities created by statute and other than between a
7559+17 parent corporation and its wholly owned subsidiaries or
7560+18 between wholly owned subsidiaries for their use or consumption
7561+19 and not for resale.
7562+20 (l) "Retailer" means and includes every person engaged in
7563+21 the business of making sales at retail as defined in this
7564+22 Article. The Department may, in its discretion, upon
7565+23 application, authorize the collection of the tax hereby
7566+24 imposed by any retailer not maintaining a place of business
7567+25 within this State, who, to the satisfaction of the Department,
7568+26 furnishes adequate security to insure collection and payment
7569+
7570+
7571+
7572+
7573+
7574+ HB5005 Enrolled - 212 - LRB103 37016 SPS 67131 b
7575+
7576+
7577+HB5005 Enrolled- 213 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 213 - LRB103 37016 SPS 67131 b
7578+ HB5005 Enrolled - 213 - LRB103 37016 SPS 67131 b
7579+1 of the tax. Such retailer shall be issued, without charge, a
7580+2 permit to collect such tax. When so authorized, it shall be the
7581+3 duty of such retailer to collect the tax upon all of the gross
7582+4 charges for telecommunications in this State in the same
7583+5 manner and subject to the same requirements as a retailer
7584+6 maintaining a place of business within this State. The permit
7585+7 may be revoked by the Department at its discretion.
7586+8 (m) "Retailer maintaining a place of business in this
7587+9 State", or any like term, means and includes any retailer
7588+10 having or maintaining within this State, directly or by a
7589+11 subsidiary, an office, distribution facilities, transmission
7590+12 facilities, sales office, warehouse or other place of
7591+13 business, or any agent or other representative operating
7592+14 within this State under the authority of the retailer or its
7593+15 subsidiary, irrespective of whether such place of business or
7594+16 agent or other representative is located here permanently or
7595+17 temporarily, or whether such retailer or subsidiary is
7596+18 licensed to do business in this State.
7597+19 (n) "Service address" means the location of
7598+20 telecommunications equipment from which the telecommunications
7599+21 services are originated or at which telecommunications
7600+22 services are received by a taxpayer. In the event this may not
7601+23 be a defined location, as in the case of mobile phones, paging
7602+24 systems, maritime systems, service address means the
7603+25 customer's place of primary use as defined in the Mobile
7604+26 Telecommunications Sourcing Conformity Act. For air-to-ground
7605+
7606+
7607+
7608+
7609+
7610+ HB5005 Enrolled - 213 - LRB103 37016 SPS 67131 b
7611+
7612+
7613+HB5005 Enrolled- 214 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 214 - LRB103 37016 SPS 67131 b
7614+ HB5005 Enrolled - 214 - LRB103 37016 SPS 67131 b
7615+1 systems and the like, service address shall mean the location
7616+2 of a taxpayer's primary use of the telecommunications
7617+3 equipment as defined by telephone number, authorization code,
7618+4 or location in Illinois where bills are sent.
7619+5 (o) "Prepaid telephone calling arrangements" mean the
7620+6 right to exclusively purchase telephone or telecommunications
7621+7 services that must be paid for in advance and enable the
7622+8 origination of one or more intrastate, interstate, or
7623+9 international telephone calls or other telecommunications
7624+10 using an access number, an authorization code, or both,
7625+11 whether manually or electronically dialed, for which payment
7626+12 to a retailer must be made in advance, provided that, unless
7627+13 recharged, no further service is provided once that prepaid
7628+14 amount of service has been consumed. Prepaid telephone calling
7629+15 arrangements include the recharge of a prepaid calling
7630+16 arrangement. For purposes of this subsection, "recharge" means
7631+17 the purchase of additional prepaid telephone or
7632+18 telecommunications services whether or not the purchaser
7633+19 acquires a different access number or authorization code.
7634+20 "Prepaid telephone calling arrangement" does not include an
7635+21 arrangement whereby a customer purchases a payment card and
7636+22 pursuant to which the service provider reflects the amount of
7637+23 such purchase as a credit on an invoice issued to that customer
7638+24 under an existing subscription plan.
7639+25 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
7640+26 102-1125, eff. 2-3-23.)
7641+
7642+
7643+
7644+
7645+
7646+ HB5005 Enrolled - 214 - LRB103 37016 SPS 67131 b
7647+
7648+
7649+HB5005 Enrolled- 215 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 215 - LRB103 37016 SPS 67131 b
7650+ HB5005 Enrolled - 215 - LRB103 37016 SPS 67131 b
7651+1 Section 65. The Telecommunications Infrastructure
7652+2 Maintenance Fee Act is amended by changing Section 10 as
7653+3 follows:
7654+4 (35 ILCS 635/10)
7655+5 Sec. 10. Definitions.
7656+6 (a) "Gross charges" means the amount paid to a
7657+7 telecommunications retailer for the act or privilege of
7658+8 originating or receiving telecommunications in this State and
7659+9 for all services rendered in connection therewith, valued in
7660+10 money whether paid in money or otherwise, including cash,
7661+11 credits, services, and property of every kind or nature, and
7662+12 shall be determined without any deduction on account of the
7663+13 cost of such telecommunications, the cost of the materials
7664+14 used, labor or service costs, or any other expense whatsoever.
7665+15 In case credit is extended, the amount thereof shall be
7666+16 included only as and when paid. "Gross charges" for private
7667+17 line service shall include charges imposed at each channel
7668+18 termination point within this State, charges for the channel
7669+19 mileage between each channel termination point within this
7670+20 State, and charges for that portion of the interstate
7671+21 inter-office channel provided within Illinois. Charges for
7672+22 that portion of the interstate inter-office channel provided
7673+23 in Illinois shall be determined by the retailer as follows:
7674+24 (i) for interstate inter-office channels having 2 channel
7675+
7676+
7677+
7678+
7679+
7680+ HB5005 Enrolled - 215 - LRB103 37016 SPS 67131 b
7681+
7682+
7683+HB5005 Enrolled- 216 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 216 - LRB103 37016 SPS 67131 b
7684+ HB5005 Enrolled - 216 - LRB103 37016 SPS 67131 b
7685+1 termination points, only one of which is in Illinois, 50% of
7686+2 the total charge imposed; or (ii) for interstate inter-office
7687+3 channels having more than 2 channel termination points, one or
7688+4 more of which are in Illinois, an amount equal to the total
7689+5 charge multiplied by a fraction, the numerator of which is the
7690+6 number of channel termination points within Illinois and the
7691+7 denominator of which is the total number of channel
7692+8 termination points. Prior to January 1, 2004, any method
7693+9 consistent with this paragraph or other method that reasonably
7694+10 apportions the total charges for interstate inter-office
7695+11 channels among the states in which channel terminations points
7696+12 are located shall be accepted as a reasonable method to
7697+13 determine the charges for that portion of the interstate
7698+14 inter-office channel provided within Illinois for that period.
7699+15 However, "gross charges" shall not include any of the
7700+16 following:
7701+17 (1) Any amounts added to a purchaser's bill because of
7702+18 a charge made under: (i) the fee imposed by this Section,
7703+19 (ii) additional charges added to a purchaser's bill under
7704+20 Section 9-221 or 9-222 of the Public Utilities Act, (iii)
7705+21 the tax imposed by the Telecommunications Excise Tax Act,
7706+22 (iv) 911 surcharges, (v) the tax imposed by Section 4251
7707+23 of the Internal Revenue Code, or (vi) the tax imposed by
7708+24 the Simplified Municipal Telecommunications Tax Act.
7709+25 (2) Charges for a sent collect telecommunication
7710+26 received outside of this State.
7711+
7712+
7713+
7714+
7715+
7716+ HB5005 Enrolled - 216 - LRB103 37016 SPS 67131 b
7717+
7718+
7719+HB5005 Enrolled- 217 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 217 - LRB103 37016 SPS 67131 b
7720+ HB5005 Enrolled - 217 - LRB103 37016 SPS 67131 b
7721+1 (3) Charges for leased time on equipment or charges
7722+2 for the storage of data or information or subsequent
7723+3 retrieval or the processing of data or information
7724+4 intended to change its form or content. Such equipment
7725+5 includes, but is not limited to, the use of calculators,
7726+6 computers, data processing equipment, tabulating
7727+7 equipment, or accounting equipment and also includes the
7728+8 usage of computers under a time-sharing agreement.
7729+9 (4) Charges for customer equipment, including such
7730+10 equipment that is leased or rented by the customer from
7731+11 any source, wherein such charges are disaggregated and
7732+12 separately identified from other charges.
7733+13 (5) Charges to business enterprises certified under
7734+14 Section 9-222.1 of the Public Utilities Act to the extent
7735+15 of such exemption and during the period of time specified
7736+16 by the Department of Commerce and Economic Opportunity.
7737+17 (5.1) Charges to business enterprises certified under
7738+18 Section 95 of the Reimagining Energy and Vehicles in
7739+19 Illinois Act, to the extent of the exemption and during
7740+20 the period of time specified by the Department of Commerce
7741+21 and Economic Opportunity.
7742+22 (5.2) Charges to business enterprises certified under
7743+23 Section 110-95 of the Manufacturing Illinois Chips for
7744+24 Real Opportunity (MICRO) Act, to the extent of the
7745+25 exemption and during the period of time specified by the
7746+26 Department of Commerce and Economic Opportunity.
7747+
7748+
7749+
7750+
7751+
7752+ HB5005 Enrolled - 217 - LRB103 37016 SPS 67131 b
7753+
7754+
7755+HB5005 Enrolled- 218 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 218 - LRB103 37016 SPS 67131 b
7756+ HB5005 Enrolled - 218 - LRB103 37016 SPS 67131 b
7757+1 (5.3) Charges to entities certified under Section
7758+2 605-1115 of the Department of Commerce and Economic
7759+3 Opportunity Law of the Civil Administrative Code of
7760+4 Illinois to the extent of the exemption and during the
7761+5 period of time specified by the Department of Commerce and
7762+6 Economic Opportunity.
7763+7 (6) Charges for telecommunications and all services
7764+8 and equipment provided in connection therewith between a
7765+9 parent corporation and its wholly owned subsidiaries or
7766+10 between wholly owned subsidiaries, and only to the extent
7767+11 that the charges between the parent corporation and wholly
7768+12 owned subsidiaries or between wholly owned subsidiaries
7769+13 represent expense allocation between the corporations and
7770+14 not the generation of profit other than a regulatory
7771+15 required profit for the corporation rendering such
7772+16 services.
7773+17 (7) Bad debts ("bad debt" means any portion of a debt
7774+18 that is related to a sale at retail for which gross charges
7775+19 are not otherwise deductible or excludable that has become
7776+20 worthless or uncollectible, as determined under applicable
7777+21 federal income tax standards; if the portion of the debt
7778+22 deemed to be bad is subsequently paid, the retailer shall
7779+23 report and pay the tax on that portion during the
7780+24 reporting period in which the payment is made).
7781+25 (8) Charges paid by inserting coins in coin-operated
7782+26 telecommunication devices.
7783+
7784+
7785+
7786+
7787+
7788+ HB5005 Enrolled - 218 - LRB103 37016 SPS 67131 b
7789+
7790+
7791+HB5005 Enrolled- 219 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 219 - LRB103 37016 SPS 67131 b
7792+ HB5005 Enrolled - 219 - LRB103 37016 SPS 67131 b
7793+1 (9) Charges for nontaxable services or
7794+2 telecommunications if (i) those charges are aggregated
7795+3 with other charges for telecommunications that are
7796+4 taxable, (ii) those charges are not separately stated on
7797+5 the customer bill or invoice, and (iii) the retailer can
7798+6 reasonably identify the nontaxable charges on the
7799+7 retailer's books and records kept in the regular course of
7800+8 business. If the nontaxable charges cannot reasonably be
7801+9 identified, the gross charge from the sale of both taxable
7802+10 and nontaxable services or telecommunications billed on a
7803+11 combined basis shall be attributed to the taxable services
7804+12 or telecommunications. The burden of proving nontaxable
7805+13 charges shall be on the retailer of the
7806+14 telecommunications.
7807+15 (a-5) "Department" means the Illinois Department of
7808+16 Revenue.
7809+17 (b) "Telecommunications" includes, but is not limited to,
7810+18 messages or information transmitted through use of local,
7811+19 toll, and wide area telephone service, channel services,
7812+20 telegraph services, teletypewriter service, computer exchange
7813+21 services, private line services, specialized mobile radio
7814+22 services, or any other transmission of messages or information
7815+23 by electronic or similar means, between or among points by
7816+24 wire, cable, fiber optics, laser, microwave, radio, satellite,
7817+25 or similar facilities. Unless the context clearly requires
7818+26 otherwise, "telecommunications" shall also include wireless
7819+
7820+
7821+
7822+
7823+
7824+ HB5005 Enrolled - 219 - LRB103 37016 SPS 67131 b
7825+
7826+
7827+HB5005 Enrolled- 220 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 220 - LRB103 37016 SPS 67131 b
7828+ HB5005 Enrolled - 220 - LRB103 37016 SPS 67131 b
7829+1 telecommunications as hereinafter defined.
7830+2 "Telecommunications" shall not include value added services in
7831+3 which computer processing applications are used to act on the
7832+4 form, content, code, and protocol of the information for
7833+5 purposes other than transmission. "Telecommunications" shall
7834+6 not include purchase of telecommunications by a
7835+7 telecommunications service provider for use as a component
7836+8 part of the service provided by him or her to the ultimate
7837+9 retail consumer who originates or terminates the end-to-end
7838+10 communications. Retailer access charges, right of access
7839+11 charges, charges for use of intercompany facilities, and all
7840+12 telecommunications resold in the subsequent provision and used
7841+13 as a component of, or integrated into, end-to-end
7842+14 telecommunications service shall not be included in gross
7843+15 charges as sales for resale. "Telecommunications" shall not
7844+16 include the provision of cable services through a cable system
7845+17 as defined in the Cable Communications Act of 1984 (47 U.S.C.
7846+18 Sections 521 and following) as now or hereafter amended or
7847+19 through an open video system as defined in the Rules of the
7848+20 Federal Communications Commission (47 C.D.F. 76.1550 and
7849+21 following) as now or hereafter amended. Beginning January 1,
7850+22 2001, prepaid telephone calling arrangements shall not be
7851+23 considered "telecommunications" subject to the tax imposed
7852+24 under this Act. For purposes of this Section, "prepaid
7853+25 telephone calling arrangements" means that term as defined in
7854+26 Section 2-27 of the Retailers' Occupation Tax Act.
7855+
7856+
7857+
7858+
7859+
7860+ HB5005 Enrolled - 220 - LRB103 37016 SPS 67131 b
7861+
7862+
7863+HB5005 Enrolled- 221 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 221 - LRB103 37016 SPS 67131 b
7864+ HB5005 Enrolled - 221 - LRB103 37016 SPS 67131 b
7865+1 (c) "Wireless telecommunications" includes cellular mobile
7866+2 telephone services, personal wireless services as defined in
7867+3 Section 704(C) of the Telecommunications Act of 1996 (Public
7868+4 Law No. 104-104) as now or hereafter amended, including all
7869+5 commercial mobile radio services, and paging services.
7870+6 (d) "Telecommunications retailer" or "retailer" or
7871+7 "carrier" means and includes every person engaged in the
7872+8 business of making sales of telecommunications at retail as
7873+9 defined in this Section. The Department may, in its
7874+10 discretion, upon applications, authorize the collection of the
7875+11 fee hereby imposed by any retailer not maintaining a place of
7876+12 business within this State, who, to the satisfaction of the
7877+13 Department, furnishes adequate security to insure collection
7878+14 and payment of the fee. When so authorized, it shall be the
7879+15 duty of such retailer to pay the fee upon all of the gross
7880+16 charges for telecommunications in the same manner and subject
7881+17 to the same requirements as a retailer maintaining a place of
7882+18 business within this State.
7883+19 (e) "Retailer maintaining a place of business in this
7884+20 State", or any like term, means and includes any retailer
7885+21 having or maintaining within this State, directly or by a
7886+22 subsidiary, an office, distribution facilities, transmission
7887+23 facilities, sales office, warehouse, or other place of
7888+24 business, or any agent or other representative operating
7889+25 within this State under the authority of the retailer or its
7890+26 subsidiary, irrespective of whether such place of business or
7891+
7892+
7893+
7894+
7895+
7896+ HB5005 Enrolled - 221 - LRB103 37016 SPS 67131 b
7897+
7898+
7899+HB5005 Enrolled- 222 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 222 - LRB103 37016 SPS 67131 b
7900+ HB5005 Enrolled - 222 - LRB103 37016 SPS 67131 b
7901+1 agent or other representative is located here permanently or
7902+2 temporarily, or whether such retailer or subsidiary is
7903+3 licensed to do business in this State.
7904+4 (f) "Sale of telecommunications at retail" means the
7905+5 transmitting, supplying, or furnishing of telecommunications
7906+6 and all services rendered in connection therewith for a
7907+7 consideration, other than between a parent corporation and its
7908+8 wholly owned subsidiaries or between wholly owned
7909+9 subsidiaries, when the gross charge made by one such
7910+10 corporation to another such corporation is not greater than
7911+11 the gross charge paid to the retailer for their use or
7912+12 consumption and not for sale.
7913+13 (g) "Service address" means the location of
7914+14 telecommunications equipment from which telecommunications
7915+15 services are originated or at which telecommunications
7916+16 services are received. If this is not a defined location, as in
7917+17 the case of wireless telecommunications, paging systems,
7918+18 maritime systems, service address means the customer's place
7919+19 of primary use as defined in the Mobile Telecommunications
7920+20 Sourcing Conformity Act. For air-to-ground systems, and the
7921+21 like, "service address" shall mean the location of the
7922+22 customer's primary use of the telecommunications equipment as
7923+23 defined by the location in Illinois where bills are sent.
7924+24 (Source: P.A. 102-1125, eff. 2-3-23.)
7925+25 Section 70. The Simplified Municipal Telecommunications
7926+
7927+
7928+
7929+
7930+
7931+ HB5005 Enrolled - 222 - LRB103 37016 SPS 67131 b
7932+
7933+
7934+HB5005 Enrolled- 223 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 223 - LRB103 37016 SPS 67131 b
7935+ HB5005 Enrolled - 223 - LRB103 37016 SPS 67131 b
7936+1 Tax Act is amended by changing Section 5-7 as follows:
7937+2 (35 ILCS 636/5-7)
7938+3 Sec. 5-7. Definitions. For purposes of the taxes
7939+4 authorized by this Act:
7940+5 "Amount paid" means the amount charged to the taxpayer's
7941+6 service address in such municipality regardless of where such
7942+7 amount is billed or paid.
7943+8 "Department" means the Illinois Department of Revenue.
7944+9 "Gross charge" means the amount paid for the act or
7945+10 privilege of originating or receiving telecommunications in
7946+11 such municipality and for all services and equipment provided
7947+12 in connection therewith by a retailer, valued in money whether
7948+13 paid in money or otherwise, including cash, credits, services
7949+14 and property of every kind or nature, and shall be determined
7950+15 without any deduction on account of the cost of such
7951+16 telecommunications, the cost of the materials used, labor or
7952+17 service costs or any other expense whatsoever. In case credit
7953+18 is extended, the amount thereof shall be included only as and
7954+19 when paid. "Gross charges" for private line service shall
7955+20 include charges imposed at each channel termination point
7956+21 within a municipality that has imposed a tax under this
7957+22 Section and charges for the portion of the inter-office
7958+23 channels provided within that municipality. Charges for that
7959+24 portion of the inter-office channel connecting 2 or more
7960+25 channel termination points, one or more of which is located
7961+
7962+
7963+
7964+
7965+
7966+ HB5005 Enrolled - 223 - LRB103 37016 SPS 67131 b
7967+
7968+
7969+HB5005 Enrolled- 224 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 224 - LRB103 37016 SPS 67131 b
7970+ HB5005 Enrolled - 224 - LRB103 37016 SPS 67131 b
7971+1 within the jurisdictional boundary of such municipality, shall
7972+2 be determined by the retailer by multiplying an amount equal
7973+3 to the total charge for the inter-office channel by a
7974+4 fraction, the numerator of which is the number of channel
7975+5 termination points that are located within the jurisdictional
7976+6 boundary of the municipality and the denominator of which is
7977+7 the total number of channel termination points connected by
7978+8 the inter-office channel. Prior to January 1, 2004, any method
7979+9 consistent with this paragraph or other method that reasonably
7980+10 apportions the total charges for inter-office channels among
7981+11 the municipalities in which channel termination points are
7982+12 located shall be accepted as a reasonable method to determine
7983+13 the taxable portion of an inter-office channel provided within
7984+14 a municipality for that period. However, "gross charge" shall
7985+15 not include any of the following:
7986+16 (1) Any amounts added to a purchaser's bill because of
7987+17 a charge made pursuant to: (i) the tax imposed by this Act,
7988+18 (ii) the tax imposed by the Telecommunications Excise Tax
7989+19 Act, (iii) the tax imposed by Section 4251 of the Internal
7990+20 Revenue Code, (iv) 911 surcharges, or (v) charges added to
7991+21 customers' bills pursuant to the provisions of Section
7992+22 9-221 or 9-222 of the Public Utilities Act, as amended, or
7993+23 any similar charges added to customers' bills by retailers
7994+24 who are not subject to rate regulation by the Illinois
7995+25 Commerce Commission for the purpose of recovering any of
7996+26 the tax liabilities or other amounts specified in those
7997+
7998+
7999+
8000+
8001+
8002+ HB5005 Enrolled - 224 - LRB103 37016 SPS 67131 b
8003+
8004+
8005+HB5005 Enrolled- 225 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 225 - LRB103 37016 SPS 67131 b
8006+ HB5005 Enrolled - 225 - LRB103 37016 SPS 67131 b
8007+1 provisions of the Public Utilities Act.
8008+2 (2) Charges for a sent collect telecommunication
8009+3 received outside of such municipality.
8010+4 (3) Charges for leased time on equipment or charges
8011+5 for the storage of data or information for subsequent
8012+6 retrieval or the processing of data or information
8013+7 intended to change its form or content. Such equipment
8014+8 includes, but is not limited to, the use of calculators,
8015+9 computers, data processing equipment, tabulating equipment
8016+10 or accounting equipment and also includes the usage of
8017+11 computers under a time-sharing agreement.
8018+12 (4) Charges for customer equipment, including such
8019+13 equipment that is leased or rented by the customer from
8020+14 any source, wherein such charges are disaggregated and
8021+15 separately identified from other charges.
8022+16 (5) Charges to business enterprises certified as
8023+17 exempt under Section 9-222.1 of the Public Utilities Act
8024+18 to the extent of such exemption and during the period of
8025+19 time specified by the Department of Commerce and Economic
8026+20 Opportunity.
8027+21 (5.1) Charges to business enterprises certified under
8028+22 Section 95 of the Reimagining Energy and Vehicles in
8029+23 Illinois Act, to the extent of the exemption and during
8030+24 the period of time specified by the Department of Commerce
8031+25 and Economic Opportunity.
8032+26 (5.2) Charges to business enterprises certified under
8033+
8034+
8035+
8036+
8037+
8038+ HB5005 Enrolled - 225 - LRB103 37016 SPS 67131 b
8039+
8040+
8041+HB5005 Enrolled- 226 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 226 - LRB103 37016 SPS 67131 b
8042+ HB5005 Enrolled - 226 - LRB103 37016 SPS 67131 b
8043+1 Section 110-95 of the Manufacturing Illinois Chips for
8044+2 Real Opportunity (MICRO) Act, to the extent of the
8045+3 exemption and during the period of time specified by the
8046+4 Department of Commerce and Economic Opportunity.
8047+5 (5.3) Charges to entities certified under Section
8048+6 605-1115 of the Department of Commerce and Economic
8049+7 Opportunity Law of the Civil Administrative Code of
8050+8 Illinois to the extent of the exemption and during the
8051+9 period of time specified by the Department of Commerce and
8052+10 Economic Opportunity.
8053+11 (6) Charges for telecommunications and all services
8054+12 and equipment provided in connection therewith between a
8055+13 parent corporation and its wholly owned subsidiaries or
8056+14 between wholly owned subsidiaries when the tax imposed
8057+15 under this Act has already been paid to a retailer and only
8058+16 to the extent that the charges between the parent
8059+17 corporation and wholly owned subsidiaries or between
8060+18 wholly owned subsidiaries represent expense allocation
8061+19 between the corporations and not the generation of profit
8062+20 for the corporation rendering such service.
8063+21 (7) Bad debts ("bad debt" means any portion of a debt
8064+22 that is related to a sale at retail for which gross charges
8065+23 are not otherwise deductible or excludable that has become
8066+24 worthless or uncollectible, as determined under applicable
8067+25 federal income tax standards; if the portion of the debt
8068+26 deemed to be bad is subsequently paid, the retailer shall
8069+
8070+
8071+
8072+
8073+
8074+ HB5005 Enrolled - 226 - LRB103 37016 SPS 67131 b
8075+
8076+
8077+HB5005 Enrolled- 227 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 227 - LRB103 37016 SPS 67131 b
8078+ HB5005 Enrolled - 227 - LRB103 37016 SPS 67131 b
8079+1 report and pay the tax on that portion during the
8080+2 reporting period in which the payment is made).
8081+3 (8) Charges paid by inserting coins in coin-operated
8082+4 telecommunication devices.
8083+5 (9) Amounts paid by telecommunications retailers under
8084+6 the Telecommunications Infrastructure Maintenance Fee Act.
8085+7 (10) Charges for nontaxable services or
8086+8 telecommunications if (i) those charges are aggregated
8087+9 with other charges for telecommunications that are
8088+10 taxable, (ii) those charges are not separately stated on
8089+11 the customer bill or invoice, and (iii) the retailer can
8090+12 reasonably identify the nontaxable charges on the
8091+13 retailer's books and records kept in the regular course of
8092+14 business. If the nontaxable charges cannot reasonably be
8093+15 identified, the gross charge from the sale of both taxable
8094+16 and nontaxable services or telecommunications billed on a
8095+17 combined basis shall be attributed to the taxable services
8096+18 or telecommunications. The burden of proving nontaxable
8097+19 charges shall be on the retailer of the
8098+20 telecommunications.
8099+21 "Interstate telecommunications" means all
8100+22 telecommunications that either originate or terminate outside
8101+23 this State.
8102+24 "Intrastate telecommunications" means all
8103+25 telecommunications that originate and terminate within this
8104+26 State.
8105+
8106+
8107+
8108+
8109+
8110+ HB5005 Enrolled - 227 - LRB103 37016 SPS 67131 b
8111+
8112+
8113+HB5005 Enrolled- 228 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 228 - LRB103 37016 SPS 67131 b
8114+ HB5005 Enrolled - 228 - LRB103 37016 SPS 67131 b
8115+1 "Person" means any natural individual, firm, trust,
8116+2 estate, partnership, association, joint stock company, joint
8117+3 venture, corporation, limited liability company, or a
8118+4 receiver, trustee, guardian, or other representative appointed
8119+5 by order of any court, the Federal and State governments,
8120+6 including State universities created by statute, or any city,
8121+7 town, county, or other political subdivision of this State.
8122+8 "Purchase at retail" means the acquisition, consumption or
8123+9 use of telecommunications through a sale at retail.
8124+10 "Retailer" means and includes every person engaged in the
8125+11 business of making sales at retail as defined in this Section.
8126+12 The Department may, in its discretion, upon application,
8127+13 authorize the collection of the tax hereby imposed by any
8128+14 retailer not maintaining a place of business within this
8129+15 State, who, to the satisfaction of the Department, furnishes
8130+16 adequate security to insure collection and payment of the tax.
8131+17 Such retailer shall be issued, without charge, a permit to
8132+18 collect such tax. When so authorized, it shall be the duty of
8133+19 such retailer to collect the tax upon all of the gross charges
8134+20 for telecommunications in this State in the same manner and
8135+21 subject to the same requirements as a retailer maintaining a
8136+22 place of business within this State. The permit may be revoked
8137+23 by the Department at its discretion.
8138+24 "Retailer maintaining a place of business in this State",
8139+25 or any like term, means and includes any retailer having or
8140+26 maintaining within this State, directly or by a subsidiary, an
8141+
8142+
8143+
8144+
8145+
8146+ HB5005 Enrolled - 228 - LRB103 37016 SPS 67131 b
8147+
8148+
8149+HB5005 Enrolled- 229 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 229 - LRB103 37016 SPS 67131 b
8150+ HB5005 Enrolled - 229 - LRB103 37016 SPS 67131 b
8151+1 office, distribution facilities, transmission facilities,
8152+2 sales office, warehouse or other place of business, or any
8153+3 agent or other representative operating within this State
8154+4 under the authority of the retailer or its subsidiary,
8155+5 irrespective of whether such place of business or agent or
8156+6 other representative is located here permanently or
8157+7 temporarily, or whether such retailer or subsidiary is
8158+8 licensed to do business in this State.
8159+9 "Sale at retail" means the transmitting, supplying or
8160+10 furnishing of telecommunications and all services and
8161+11 equipment provided in connection therewith for a
8162+12 consideration, to persons other than the Federal and State
8163+13 governments, and State universities created by statute and
8164+14 other than between a parent corporation and its wholly owned
8165+15 subsidiaries or between wholly owned subsidiaries for their
8166+16 use or consumption and not for resale.
8167+17 "Service address" means the location of telecommunications
8168+18 equipment from which telecommunications services are
8169+19 originated or at which telecommunications services are
8170+20 received by a taxpayer. In the event this may not be a defined
8171+21 location, as in the case of mobile phones, paging systems, and
8172+22 maritime systems, service address means the customer's place
8173+23 of primary use as defined in the Mobile Telecommunications
8174+24 Sourcing Conformity Act. For air-to-ground systems and the
8175+25 like, "service address" shall mean the location of a
8176+26 taxpayer's primary use of the telecommunications equipment as
8177+
8178+
8179+
8180+
8181+
8182+ HB5005 Enrolled - 229 - LRB103 37016 SPS 67131 b
8183+
8184+
8185+HB5005 Enrolled- 230 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 230 - LRB103 37016 SPS 67131 b
8186+ HB5005 Enrolled - 230 - LRB103 37016 SPS 67131 b
8187+1 defined by telephone number, authorization code, or location
8188+2 in Illinois where bills are sent.
8189+3 "Taxpayer" means a person who individually or through his
8190+4 or her agents, employees, or permittees engages in the act or
8191+5 privilege of originating or receiving telecommunications in a
8192+6 municipality and who incurs a tax liability as authorized by
8193+7 this Act.
8194+8 "Telecommunications", in addition to the meaning
8195+9 ordinarily and popularly ascribed to it, includes, without
8196+10 limitation, messages or information transmitted through use of
8197+11 local, toll, and wide area telephone service, private line
8198+12 services, channel services, telegraph services,
8199+13 teletypewriter, computer exchange services, cellular mobile
8200+14 telecommunications service, specialized mobile radio,
8201+15 stationary two-way radio, paging service, or any other form of
8202+16 mobile and portable one-way or two-way communications, or any
8203+17 other transmission of messages or information by electronic or
8204+18 similar means, between or among points by wire, cable, fiber
8205+19 optics, laser, microwave, radio, satellite, or similar
8206+20 facilities. As used in this Act, "private line" means a
8207+21 dedicated non-traffic sensitive service for a single customer,
8208+22 that entitles the customer to exclusive or priority use of a
8209+23 communications channel or group of channels, from one or more
8210+24 specified locations to one or more other specified locations.
8211+25 The definition of "telecommunications" shall not include value
8212+26 added services in which computer processing applications are
8213+
8214+
8215+
8216+
8217+
8218+ HB5005 Enrolled - 230 - LRB103 37016 SPS 67131 b
8219+
8220+
8221+HB5005 Enrolled- 231 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 231 - LRB103 37016 SPS 67131 b
8222+ HB5005 Enrolled - 231 - LRB103 37016 SPS 67131 b
8223+1 used to act on the form, content, code, and protocol of the
8224+2 information for purposes other than transmission.
8225+3 "Telecommunications" shall not include purchases of
8226+4 telecommunications by a telecommunications service provider
8227+5 for use as a component part of the service provided by such
8228+6 provider to the ultimate retail consumer who originates or
8229+7 terminates the taxable end-to-end communications. Carrier
8230+8 access charges, right of access charges, charges for use of
8231+9 inter-company facilities, and all telecommunications resold in
8232+10 the subsequent provision of, used as a component of, or
8233+11 integrated into, end-to-end telecommunications service shall
8234+12 be non-taxable as sales for resale. Prepaid telephone calling
8235+13 arrangements shall not be considered "telecommunications"
8236+14 subject to the tax imposed under this Act. For purposes of this
8237+15 Section, "prepaid telephone calling arrangements" means that
8238+16 term as defined in Section 2-27 of the Retailers' Occupation
8239+17 Tax Act.
8240+18 (Source: P.A. 102-1125, eff. 2-3-23.)
8241+19 Section 75. The Electricity Excise Tax Law is amended by
8242+20 changing Section 2-4 as follows:
8243+21 (35 ILCS 640/2-4)
8244+22 Sec. 2-4. Tax imposed.
8245+23 (a) Except as provided in subsection (b), a tax is imposed
8246+24 on the privilege of using in this State electricity purchased
8247+
8248+
8249+
8250+
8251+
8252+ HB5005 Enrolled - 231 - LRB103 37016 SPS 67131 b
8253+
8254+
8255+HB5005 Enrolled- 232 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 232 - LRB103 37016 SPS 67131 b
8256+ HB5005 Enrolled - 232 - LRB103 37016 SPS 67131 b
8257+1 for use or consumption and not for resale, other than by
8258+2 municipal corporations owning and operating a local
8259+3 transportation system for public service, at the following
8260+4 rates per kilowatt-hour delivered to the purchaser:
8261+5 (i) For the first 2000 kilowatt-hours used or consumed
8262+6 in a month: 0.330 cents per kilowatt-hour;
8263+7 (ii) For the next 48,000 kilowatt-hours used or
8264+8 consumed in a month: 0.319 cents per kilowatt-hour;
8265+9 (iii) For the next 50,000 kilowatt-hours used or
8266+10 consumed in a month: 0.303 cents per kilowatt-hour;
8267+11 (iv) For the next 400,000 kilowatt-hours used or
8268+12 consumed in a month: 0.297 cents per kilowatt-hour;
8269+13 (v) For the next 500,000 kilowatt-hours used or
8270+14 consumed in a month: 0.286 cents per kilowatt-hour;
8271+15 (vi) For the next 2,000,000 kilowatt-hours used or
8272+16 consumed in a month: 0.270 cents per kilowatt-hour;
8273+17 (vii) For the next 2,000,000 kilowatt-hours used or
8274+18 consumed in a month: 0.254 cents per kilowatt-hour;
8275+19 (viii) For the next 5,000,000 kilowatt-hours used or
8276+20 consumed in a month: 0.233 cents per kilowatt-hour;
8277+21 (ix) For the next 10,000,000 kilowatt-hours used or
8278+22 consumed in a month: 0.207 cents per kilowatt-hour;
8279+23 (x) For all electricity in excess of 20,000,000
8280+24 kilowatt-hours used or consumed in a month: 0.202 cents
8281+25 per kilowatt-hour.
8282+26 Provided, that in lieu of the foregoing rates, the tax is
8283+
8284+
8285+
8286+
8287+
8288+ HB5005 Enrolled - 232 - LRB103 37016 SPS 67131 b
8289+
8290+
8291+HB5005 Enrolled- 233 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 233 - LRB103 37016 SPS 67131 b
8292+ HB5005 Enrolled - 233 - LRB103 37016 SPS 67131 b
8293+1 imposed on a self-assessing purchaser at the rate of 5.1% of
8294+2 the self-assessing purchaser's purchase price for all
8295+3 electricity distributed, supplied, furnished, sold,
8296+4 transmitted and delivered to the self-assessing purchaser in a
8297+5 month.
8298+6 (b) A tax is imposed on the privilege of using in this
8299+7 State electricity purchased from a municipal system or
8300+8 electric cooperative, as defined in Article XVII of the Public
8301+9 Utilities Act, which has not made an election as permitted by
8302+10 either Section 17-200 or Section 17-300 of such Act, at the
8303+11 lesser of 0.32 cents per kilowatt hour of all electricity
8304+12 distributed, supplied, furnished, sold, transmitted, and
8305+13 delivered by such municipal system or electric cooperative to
8306+14 the purchaser or 5% of each such purchaser's purchase price
8307+15 for all electricity distributed, supplied, furnished, sold,
8308+16 transmitted, and delivered by such municipal system or
8309+17 electric cooperative to the purchaser, whichever is the lower
8310+18 rate as applied to each purchaser in each billing period.
8311+19 (c) The tax imposed by this Section 2-4 is not imposed with
8312+20 respect to any use of electricity by business enterprises
8313+21 certified under Section 9-222.1 or 9-222.1A of the Public
8314+22 Utilities Act, as amended, to the extent of such exemption and
8315+23 during the time specified by the Department of Commerce and
8316+24 Economic Opportunity; or with respect to any transaction in
8317+25 interstate commerce, or otherwise, to the extent to which such
8318+26 transaction may not, under the Constitution and statutes of
8319+
8320+
8321+
8322+
8323+
8324+ HB5005 Enrolled - 233 - LRB103 37016 SPS 67131 b
8325+
8326+
8327+HB5005 Enrolled- 234 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 234 - LRB103 37016 SPS 67131 b
8328+ HB5005 Enrolled - 234 - LRB103 37016 SPS 67131 b
8329+1 the United States, be made the subject of taxation by this
8330+2 State.
8331+3 (d) The tax imposed by this Section 2-4 is not imposed with
8332+4 respect to any use of electricity at a REV Illinois Project
8333+5 site that has received a certification for tax exemption from
8334+6 the Department of Commerce and Economic Opportunity pursuant
8335+7 to Section 95 of the Reimagining Energy and Vehicles in
8336+8 Illinois Act, to the extent of such exemption, which shall be
8337+9 no more than 10 years.
8338+10 (e) The tax imposed by this Section 2-4 is not imposed with
8339+11 respect to any use of electricity at a project site that has
8340+12 received a certification for tax exemption from the Department
8341+13 of Commerce and Economic Opportunity pursuant to the
8342+14 Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
8343+15 to the extent of such exemption, which shall be no more than 10
8344+16 years.
8345+17 (f) The tax imposed by this Section 2-4 is not imposed with
8346+18 respect to any use of electricity at a quantum computing
8347+19 campus that has received a certification for tax exemption
8348+20 from the Department of Commerce and Economic Opportunity
8349+21 pursuant to Section 605-1115 of the Department of Commerce and
8350+22 Economic Opportunity Law of the Civil Administrative Code of
8351+23 Illinois to the extent of the exemption and during the period
8352+24 of time specified by the Department of Commerce and Economic
8353+25 Opportunity.
8354+26 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
8355+
8356+
8357+
8358+
8359+
8360+ HB5005 Enrolled - 234 - LRB103 37016 SPS 67131 b
8361+
8362+
8363+HB5005 Enrolled- 235 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 235 - LRB103 37016 SPS 67131 b
8364+ HB5005 Enrolled - 235 - LRB103 37016 SPS 67131 b
8365+1 102-1125, eff. 2-3-23.)
8366+2 Section 80. The River Edge Redevelopment Zone Act is
8367+3 amended by changing Sections 10-4, 10-5.3, 10-10.3, and
8368+4 10-10.4 as follows:
8369+5 (65 ILCS 115/10-4)
8370+6 Sec. 10-4. Qualifications for River Edge Redevelopment
8371+7 Zones. An area is qualified to become a zone if it:
8372+8 (1) is a contiguous area adjacent to or surrounding a
8373+9 river;
8374+10 (2) comprises a minimum of one half square mile and
8375+11 not more than 12 square miles, exclusive of lakes and
8376+12 waterways;
8377+13 (3) satisfies any additional criteria established by
8378+14 the Department consistent with the purposes of this Act;
8379+15 (4) is entirely within a single municipality; and
8380+16 (5) has at least 100 acres of environmentally
8381+17 challenged land within 1500 yards of the riverfront.
8382+18 Any River Edge Redevelopment Zone may have an overlapping
8383+19 geographic area with an Enterprise Zone. If a taxpayer is
8384+20 located in an area with an overlapping Enterprise Zone and
8385+21 River Edge Redevelopment Zone, the taxpayer must elect, in the
8386+22 form and manner required by the Department, from which program
8387+23 it would like to request benefits.
8388+24 (Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
8389+
8390+
8391+
8392+
8393+
8394+ HB5005 Enrolled - 235 - LRB103 37016 SPS 67131 b
8395+
8396+
8397+HB5005 Enrolled- 236 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 236 - LRB103 37016 SPS 67131 b
8398+ HB5005 Enrolled - 236 - LRB103 37016 SPS 67131 b
8399+1 (65 ILCS 115/10-5.3)
8400+2 Sec. 10-5.3. Certification of River Edge Redevelopment
8401+3 Zones.
8402+4 (a) Approval of designated River Edge Redevelopment Zones
8403+5 shall be made by the Department by certification of the
8404+6 designating ordinance. The Department shall promptly issue a
8405+7 certificate for each zone upon its approval. The certificate
8406+8 shall be signed by the Director of the Department, shall make
8407+9 specific reference to the designating ordinance, which shall
8408+10 be attached thereto, and shall be filed in the office of the
8409+11 Secretary of State. A certified copy of the River Edge
8410+12 Redevelopment Zone Certificate, or a duplicate original
8411+13 thereof, shall be recorded in the office of the recorder of
8412+14 deeds of the county in which the River Edge Redevelopment Zone
8413+15 lies.
8414+16 (b) A River Edge Redevelopment Zone shall be effective
8415+17 upon its certification. The Department shall transmit a copy
8416+18 of the certification to the Department of Revenue, and to the
8417+19 designating municipality. Upon certification of a River Edge
8418+20 Redevelopment Zone, the terms and provisions of the
8419+21 designating ordinance shall be in effect, and may not be
8420+22 amended or repealed except in accordance with Section 10-5.4.
8421+23 (c) A River Edge Redevelopment Zone shall be in effect for
8422+24 the period stated in the certificate, which shall in no event
8423+25 exceed 30 calendar years. Zones shall terminate at midnight of
8424+
8425+
8426+
8427+
8428+
8429+ HB5005 Enrolled - 236 - LRB103 37016 SPS 67131 b
8430+
8431+
8432+HB5005 Enrolled- 237 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 237 - LRB103 37016 SPS 67131 b
8433+ HB5005 Enrolled - 237 - LRB103 37016 SPS 67131 b
8434+1 December 31 of the final calendar year of the certified term,
8435+2 except as provided in Section 10-5.4.
8436+3 (d) In calendar years 2006 and 2007, the Department may
8437+4 certify one pilot River Edge Redevelopment Zone in the City of
8438+5 East St. Louis, one pilot River Edge Redevelopment Zone in the
8439+6 City of Rockford, and one pilot River Edge Redevelopment Zone
8440+7 in the City of Aurora.
8441+8 In calendar year 2009, the Department may certify one
8442+9 pilot River Edge Redevelopment Zone in the City of Elgin.
8443+10 On or after the effective date of this amendatory Act of
8444+11 the 97th General Assembly, the Department may certify one
8445+12 additional pilot River Edge Redevelopment Zone in the City of
8446+13 Peoria.
8447+14 On or after the effective date of this amendatory Act of
8448+15 the 103rd General Assembly, the Department may certify 2
8449+16 additional pilot River Edge Redevelopment Zones, including one
8450+17 in the City of Joliet and one in the City of Kankakee.
8451+18 On or after the effective date of this amendatory Act of
8452+19 the 103rd General Assembly, the Department may certify 7
8453+20 additional pilot River Edge Redevelopment Zones, including one
8454+21 in the City of East Moline, one in the City of Moline, one in
8455+22 the City of Ottawa, one in the City of LaSalle, one in the City
8456+23 of Peru, one in the City of Rock Island, and one in the City of
8457+24 Quincy.
8458+25 After certifying the additional pilot River Edge
8459+26 Redevelopment Zones authorized by the above paragraphs, the
8460+
8461+
8462+
8463+
8464+
8465+ HB5005 Enrolled - 237 - LRB103 37016 SPS 67131 b
8466+
8467+
8468+HB5005 Enrolled- 238 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 238 - LRB103 37016 SPS 67131 b
8469+ HB5005 Enrolled - 238 - LRB103 37016 SPS 67131 b
8470+1 Department may not certify any additional River Edge
8471+2 Redevelopment Zones, but it may amend and rescind
8472+3 certifications of existing River Edge Redevelopment Zones in
8473+4 accordance with Section 10-5.4, except that no River Edge
8474+5 Redevelopment Zone may be extended on or after the effective
8475+6 date of this amendatory Act of the 97th General Assembly. Each
8476+7 River Edge Redevelopment Zone in existence on the effective
8477+8 date of this amendatory Act of the 97th General Assembly shall
8478+9 continue until its scheduled termination under this Act,
8479+10 unless the Zone is decertified sooner. At the time of its term
8480+11 expiration each River Edge Redevelopment Zone will become an
8481+12 open enterprise zone, available for the previously designated
8482+13 area or a different area to compete for designation as an
8483+14 enterprise zone. No preference for designation as a Zone will
8484+15 be given to the previously designated area.
8485+16 (e) A municipality in which a River Edge Redevelopment
8486+17 Zone has been certified must submit to the Department, within
8487+18 60 days after the certification, a plan for encouraging the
8488+19 participation by minority persons, women, persons with
8489+20 disabilities, and veterans in the zone. The Department may
8490+21 assist the municipality in developing and implementing the
8491+22 plan. The terms "minority person", "woman", and "person with a
8492+23 disability" have the meanings set forth under Section 2 of the
8493+24 Business Enterprise for Minorities, Women, and Persons with
8494+25 Disabilities Act. "Veteran" means an Illinois resident who is
8495+26 a veteran as defined in subsection (h) of Section 1491 of Title
8496+
8497+
8498+
8499+
8500+
8501+ HB5005 Enrolled - 238 - LRB103 37016 SPS 67131 b
8502+
8503+
8504+HB5005 Enrolled- 239 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 239 - LRB103 37016 SPS 67131 b
8505+ HB5005 Enrolled - 239 - LRB103 37016 SPS 67131 b
8506+1 10 of the United States Code.
8507+2 (Source: P.A. 103-9, eff. 6-7-23.)
8508+3 (65 ILCS 115/10-10.3)
8509+4 Sec. 10-10.3. River Edge Construction Jobs Credit.
8510+5 (a) Beginning on January 1, 2021, a business entity may
8511+6 receive a tax credit against the tax imposed under subsections
8512+7 (a) and (b) of Section 201 in an amount equal to 50% (or 75% if
8513+8 the project is located in an underserved area) of the amount of
8514+9 the incremental income tax attributable to River Edge
8515+10 construction jobs employees employed in the course of
8516+11 completing a River Edge construction jobs project. The credit
8517+12 allowed under this Section shall apply only to taxpayers that
8518+13 make a capital investment of at least $1,000,000 in a
8519+14 qualified rehabilitation plan.
8520+15 (b) A business entity seeking a credit under this Section
8521+16 must submit an application to the Department describing the
8522+17 nature and benefit of the River Edge construction jobs project
8523+18 to the qualified rehabilitation project and the River Edge
8524+19 Redevelopment Zone. The Department may adopt any necessary
8525+20 rules in order to administer the provisions of this Section.
8526+21 (c) Within 45 days after the receipt of an application,
8527+22 the Department shall give notice to the applicant as to
8528+23 whether the application has been approved or disapproved. If
8529+24 the Department disapproves the application, it shall specify
8530+25 the reasons for this decision and allow 60 days for the
8531+
8532+
8533+
8534+
8535+
8536+ HB5005 Enrolled - 239 - LRB103 37016 SPS 67131 b
8537+
8538+
8539+HB5005 Enrolled- 240 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 240 - LRB103 37016 SPS 67131 b
8540+ HB5005 Enrolled - 240 - LRB103 37016 SPS 67131 b
8541+1 applicant to amend and resubmit its application. The
8542+2 Department shall provide assistance upon request to
8543+3 applicants. Resubmitted applications shall receive the
8544+4 Department's approval or disapproval within 30 days of
8545+5 resubmission. Those resubmitted applications satisfying
8546+6 initial Department objectives shall be approved unless
8547+7 reasonable circumstances warrant disapproval.
8548+8 (d) On an annual basis, the designated zone organization
8549+9 shall furnish a statement to the Department on the
8550+10 programmatic and financial status of any approved project and
8551+11 an audited financial statement of the project.
8552+12 (e) The Department shall certify to the Department of
8553+13 Revenue the identity of the taxpayers who are eligible for
8554+14 River Edge construction jobs credits and the amounts of River
8555+15 Edge construction jobs credits awarded in each taxable year.
8556+16 (f) (Blank). The Department, in collaboration with the
8557+17 Department of Labor, shall require certified payroll
8558+18 reporting, pursuant to Section 10-10.4 of this Act, be
8559+19 completed in order to verify the wages and any other necessary
8560+20 information which the Department may deem necessary to
8561+21 ascertain and certify the total number of River Edge
8562+22 construction jobs employees and determine the amount of a
8563+23 River Edge construction jobs credit.
8564+24 (g) The total aggregate amount of credits awarded under
8565+25 the Blue Collar Jobs Act (Article 20 of this amendatory Act of
8566+26 the 101st General Assembly) shall not exceed $20,000,000 in
8567+
8568+
8569+
8570+
8571+
8572+ HB5005 Enrolled - 240 - LRB103 37016 SPS 67131 b
8573+
8574+
8575+HB5005 Enrolled- 241 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 241 - LRB103 37016 SPS 67131 b
8576+ HB5005 Enrolled - 241 - LRB103 37016 SPS 67131 b
8577+1 any State fiscal year.
8578+2 (Source: P.A. 101-9, eff. 6-5-19.)
8579+3 (65 ILCS 115/10-10.4)
8580+4 Sec. 10-10.4. Certified payroll. Any taxpayer seeking Any
8581+5 contractor and each subcontractor who is engaged in and is
8582+6 executing a River Edge construction job tax credits must jobs
8583+7 project for a taxpayer that is entitled to a credit pursuant to
8584+8 Section 10-10.3 of this Act shall:
8585+9 (1) annually, until construction is completed, submit
8586+10 a report that, at a minimum, describes the projected
8587+11 project scope, timeline, and anticipated budget; once the
8588+12 project has commenced, the annual report shall include
8589+13 actual data for the prior year as well as projections for
8590+14 each additional year through completion of the project;
8591+15 the Department shall issue detailed reporting guidelines
8592+16 prescribing the requirements of construction-related
8593+17 reports; and
8594+18 (2) provide the Department with evidence that a
8595+19 certified third-party executed an Agreed-Upon Procedure
8596+20 (AUP) verifying the construction expenses or accept the
8597+21 standard construction wage expense estimated by the
8598+22 Department; upon review of the final project scope,
8599+23 timeline, budget, and AUP, the Department shall issue a
8600+24 tax credit certificate reflecting a percentage of the
8601+25 total construction job wages paid throughout the
8602+
8603+
8604+
8605+
8606+
8607+ HB5005 Enrolled - 241 - LRB103 37016 SPS 67131 b
8608+
8609+
8610+HB5005 Enrolled- 242 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 242 - LRB103 37016 SPS 67131 b
8611+ HB5005 Enrolled - 242 - LRB103 37016 SPS 67131 b
8612+1 completion of the project.
8613+2 (1) make and keep, for a period of 5 years from the
8614+3 date of the last payment made on or after June 5, 2019 (the
8615+4 effective date of Public Act 101-9) on a contract or
8616+5 subcontract for a River Edge Construction Jobs Project in
8617+6 a River Edge Redevelopment Zone records of all laborers
8618+7 and other workers employed by them on the project; the
8619+8 records shall include:
8620+9 (A) the worker's name;
8621+10 (B) the worker's address;
8622+11 (C) the worker's telephone number, if available;
8623+12 (D) the worker's social security number;
8624+13 (E) the worker's classification or
8625+14 classifications;
8626+15 (F) the worker's gross and net wages paid in each
8627+16 pay period;
8628+17 (G) the worker's number of hours worked each day;
8629+18 (H) the worker's starting and ending times of work
8630+19 each day;
8631+20 (I) the worker's hourly wage rate; and
8632+21 (J) the worker's hourly overtime wage rate; and
8633+22 (2) no later than the 15th day of each calendar month,
8634+23 provide a certified payroll for the immediately preceding
8635+24 month to the taxpayer in charge of the project; within 5
8636+25 business days after receiving the certified payroll, the
8637+26 taxpayer shall file the certified payroll with the
8638+
8639+
8640+
8641+
8642+
8643+ HB5005 Enrolled - 242 - LRB103 37016 SPS 67131 b
8644+
8645+
8646+HB5005 Enrolled- 243 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 243 - LRB103 37016 SPS 67131 b
8647+ HB5005 Enrolled - 243 - LRB103 37016 SPS 67131 b
8648+1 Department of Labor and the Department of Commerce and
8649+2 Economic Opportunity; a certified payroll must be filed
8650+3 for only those calendar months during which construction
8651+4 on a River Edge Construction Jobs Project has occurred;
8652+5 the certified payroll shall consist of a complete copy of
8653+6 the records identified in paragraph (1), but may exclude
8654+7 the starting and ending times of work each day; the
8655+8 certified payroll shall be accompanied by a statement
8656+9 signed by the contractor or subcontractor or an officer,
8657+10 employee, or agent of the contractor or subcontractor
8658+11 which avers that:
8659+12 (A) he or she has examined the certified payroll
8660+13 records required to be submitted and such records are
8661+14 true and accurate; and
8662+15 (B) the contractor or subcontractor is aware that
8663+16 filing a certified payroll that he or she knows to be
8664+17 false is a Class A misdemeanor.
8665+18 A general contractor is not prohibited from relying on a
8666+19 certified payroll of a lower-tier subcontractor, provided the
8667+20 general contractor does not knowingly rely upon a
8668+21 subcontractor's false certification.
8669+22 Any contractor or subcontractor subject to this Section,
8670+23 and any officer, employee, or agent of such contractor or
8671+24 subcontractor whose duty as an officer, employee, or agent it
8672+25 is to file a certified payroll under this Section, who
8673+26 willfully fails to file such a certified payroll on or before
8674+
8675+
8676+
8677+
8678+
8679+ HB5005 Enrolled - 243 - LRB103 37016 SPS 67131 b
8680+
8681+
8682+HB5005 Enrolled- 244 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 244 - LRB103 37016 SPS 67131 b
8683+ HB5005 Enrolled - 244 - LRB103 37016 SPS 67131 b
8684+1 the date such certified payroll is required to be filed and any
8685+2 person who willfully files a false certified payroll that is
8686+3 false as to any material fact is in violation of this Act and
8687+4 guilty of a Class A misdemeanor.
8688+5 The taxpayer in charge of the project shall keep the
8689+6 records submitted in accordance with this Section on or after
8690+7 June 5, 2019 (the effective date of Public Act 101-9) for a
8691+8 period of 5 years from the date of the last payment for work on
8692+9 a contract or subcontract for the project.
8693+10 The records submitted in accordance with this Section
8694+11 shall be considered public records, except an employee's
8695+12 address, telephone number, and social security number, and
8696+13 made available in accordance with the Freedom of Information
8697+14 Act. The Department of Labor shall accept any reasonable
8698+15 submissions by the contractor that meet the requirements of
8699+16 this Section and shall share the information with the
8700+17 Department in order to comply with the awarding of River Edge
8701+18 construction jobs credits. A contractor, subcontractor, or
8702+19 public body may retain records required under this Section in
8703+20 paper or electronic format.
8704+21 Upon 7 business days' notice, the taxpayer contractor and
8705+22 each subcontractor shall make available for inspection and
8706+23 copying at a location within this State during reasonable
8707+24 hours, the records identified in paragraph (1) of this Section
8708+25 to the taxpayer in charge of the project, its officers and
8709+26 agents, the Director of Labor and his or her deputies and
8710+
8711+
8712+
8713+
8714+
8715+ HB5005 Enrolled - 244 - LRB103 37016 SPS 67131 b
8716+
8717+
8718+HB5005 Enrolled- 245 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 245 - LRB103 37016 SPS 67131 b
8719+ HB5005 Enrolled - 245 - LRB103 37016 SPS 67131 b
8720+1 agents, and to federal, State, or local law enforcement
8721+2 agencies and prosecutors.
8722+3 (Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
8723+4 Section 82. The Private Business and Vocational Schools
8724+5 Act of 2012 is amended by changing Section 30 as follows:
8725+6 (105 ILCS 426/30)
8726+7 Sec. 30. Exemptions. For purposes of this Act, the
8727+8 following shall not be considered to be a private business and
8728+9 vocational school:
8729+10 (1) Any institution devoted entirely to the teaching
8730+11 of religion or theology.
8731+12 (2) Any in-service program of study and subject
8732+13 offered by an employer, provided that no tuition is
8733+14 charged and the instruction is offered only to employees
8734+15 of the employer.
8735+16 (3) Any educational institution that (A) enrolls a
8736+17 majority of its students in degree programs and has
8737+18 maintained an accredited status with a regional
8738+19 accrediting agency that is recognized by the U.S.
8739+20 Department of Education or (B) enrolls students in one or
8740+21 more bachelor-level programs, enrolls a majority of its
8741+22 students in degree programs, and is accredited by a
8742+23 national or regional accrediting agency that is recognized
8743+24 by the U.S. Department of Education or that (i) is
8744+
8745+
8746+
8747+
8748+
8749+ HB5005 Enrolled - 245 - LRB103 37016 SPS 67131 b
8750+
8751+
8752+HB5005 Enrolled- 246 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 246 - LRB103 37016 SPS 67131 b
8753+ HB5005 Enrolled - 246 - LRB103 37016 SPS 67131 b
8754+1 regulated by the Board under the Private College Act or
8755+2 the Academic Degree Act or is exempt from such regulation
8756+3 under either the Private College Act or the Academic
8757+4 Degree Act solely for the reason that the educational
8758+5 institution was in operation on the effective date of
8759+6 either the Private College Act or the Academic Degree Act
8760+7 or (ii) is regulated by the State Board of Education.
8761+8 (4) Any institution and the franchisees of that
8762+9 institution that exclusively offer a program of study in
8763+10 income tax theory or return preparation at a total
8764+11 contract price of no more than $400, provided that the
8765+12 total annual enrollment of the institution for all such
8766+13 courses of instruction exceeds 500 students and further
8767+14 provided that the total contract price for all instruction
8768+15 offered to a student in any one calendar year does not
8769+16 exceed $3,000.
8770+17 (5) Any person or organization selling mediated
8771+18 instruction products through a media, such as tapes,
8772+19 compact discs, digital video discs, or similar media, so
8773+20 long as the instruction is not intended to result in the
8774+21 acquisition of training for a specific employment field,
8775+22 is not intended to meet a qualification for licensure or
8776+23 certification in an employment field, or is not intended
8777+24 to provide credit that can be applied toward a certificate
8778+25 or degree program.
8779+26 (6) Schools with no physical presence in this State.
8780+
8781+
8782+
8783+
8784+
8785+ HB5005 Enrolled - 246 - LRB103 37016 SPS 67131 b
8786+
8787+
8788+HB5005 Enrolled- 247 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 247 - LRB103 37016 SPS 67131 b
8789+ HB5005 Enrolled - 247 - LRB103 37016 SPS 67131 b
8790+1 Schools offering instruction or programs of study, but
8791+2 that have no physical presence in this State, are not
8792+3 required to receive Board approval. Such an institution
8793+4 must not be considered not to have a physical presence in
8794+5 this State unless it has received a written finding from
8795+6 the Board that it has no physical presence. In determining
8796+7 whether an institution has no physical presence, the Board
8797+8 shall require all of the following:
8798+9 (A) Evidence of authorization to operate in at
8799+10 least one other state and that the school is in good
8800+11 standing with that state's authorizing agency.
8801+12 (B) Evidence that the school has a means of
8802+13 receiving and addressing student complaints in
8803+14 compliance with any federal or state requirements.
8804+15 (C) Evidence that the institution is providing no
8805+16 instruction in this State.
8806+17 (D) Evidence that the institution is not providing
8807+18 core academic support services, including, but not
8808+19 limited to, admissions, evaluation, assessment,
8809+20 registration, financial aid, academic scheduling, and
8810+21 faculty hiring and support in this State.
8811+22 (7) A school or program within a school that
8812+23 exclusively provides yoga instruction, yoga teacher
8813+24 training, or both.
8814+25 (8) Organizations that receive funding from the
8815+26 Department of Commerce and Economic Opportunity for
8816+
8817+
8818+
8819+
8820+
8821+ HB5005 Enrolled - 247 - LRB103 37016 SPS 67131 b
8822+
8823+
8824+HB5005 Enrolled- 248 -LRB103 37016 SPS 67131 b HB5005 Enrolled - 248 - LRB103 37016 SPS 67131 b
8825+ HB5005 Enrolled - 248 - LRB103 37016 SPS 67131 b
8826+1 workforce development preparation programs as provided for
8827+2 in the Energy Transition Act and the Illinois Works Jobs
8828+3 Program Act in which participants are not charged tuition.
8829+4 This paragraph does not include public institutions of
8830+5 higher education or private institutions of higher
8831+6 education, as defined in the Board of Higher Education
8832+7 Act, or community colleges, as defined in the Public
8833+8 Community College Act. For purposes of this paragraph, the
8834+9 Department of Commerce and Economic Opportunity shall
8835+10 provide the Board of Higher Education a complete list of
8836+11 all qualifying organizations under this paragraph on July
8837+12 1 of each year.
8838+13 (9) Labor organizations, as defined in Section 10 of
8839+14 the Collective Bargaining Freedom Act, that sponsor a
8840+15 United States Department of Labor registered
8841+16 apprenticeship program.
8842+17 (Source: P.A. 102-1046, eff. 6-7-22.)
8843+18 Section 85. The Public Utilities Act is amended by
8844+19 changing Section 9-222 as follows:
8845+20 (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
8846+21 Sec. 9-222. Whenever a tax is imposed upon a public
8847+22 utility engaged in the business of distributing, supplying,
8848+23 furnishing, or selling gas for use or consumption pursuant to
8849+24 Section 2 of the Gas Revenue Tax Act, or whenever a tax is
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8860+1 required to be collected by a delivering supplier pursuant to
8861+2 Section 2-7 of the Electricity Excise Tax Act, or whenever a
8862+3 tax is imposed upon a public utility pursuant to Section 2-202
8863+4 of this Act, such utility may charge its customers, other than
8864+5 customers who are high impact businesses under Section 5.5 of
8865+6 the Illinois Enterprise Zone Act, customers who are certified
8866+7 under Section 95 of the Reimagining Energy and Vehicles in
8867+8 Illinois Act, manufacturers under the Manufacturing Illinois
8868+9 Chips for Real Opportunity (MICRO) Act, customers who are
8869+10 tenants in a quantum computing campus under Section 605-1115
8870+11 of the Department of Commerce and Economic Opportunity Law of
8871+12 the Civil Administrative Code of Illinois, or certified
8872+13 business enterprises under Section 9-222.1 of this Act, to the
8873+14 extent of such exemption and during the period in which such
8874+15 exemption is in effect, in addition to any rate authorized by
8875+16 this Act, an additional charge equal to the total amount of
8876+17 such taxes. The exemption of this Section relating to high
8877+18 impact businesses shall be subject to the provisions of
8878+19 subsections (a), (b), and (b-5) of Section 5.5 of the Illinois
8879+20 Enterprise Zone Act. This requirement shall not apply to taxes
8880+21 on invested capital imposed pursuant to the Messages Tax Act,
8881+22 the Gas Revenue Tax Act and the Public Utilities Revenue Act.
8882+23 Such utility shall file with the Commission a supplemental
8883+24 schedule which shall specify such additional charge and which
8884+25 shall become effective upon filing without further notice.
8885+26 Such additional charge shall be shown separately on the
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8896+1 utility bill to each customer. The Commission shall have the
8897+2 power to investigate whether or not such supplemental schedule
8898+3 correctly specifies such additional charge, but shall have no
8899+4 power to suspend such supplemental schedule. If the Commission
8900+5 finds, after a hearing, that such supplemental schedule does
8901+6 not correctly specify such additional charge, it shall by
8902+7 order require a refund to the appropriate customers of the
8903+8 excess, if any, with interest, in such manner as it shall deem
8904+9 just and reasonable, and in and by such order shall require the
8905+10 utility to file an amended supplemental schedule corresponding
8906+11 to the finding and order of the Commission. Except with
8907+12 respect to taxes imposed on invested capital, such tax
8908+13 liabilities shall be recovered from customers solely by means
8909+14 of the additional charges authorized by this Section.
8910+15 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
8911+16 102-1125, eff. 2-3-23.)
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